Liverpool's season hit a new low after being beaten in the Merseyside Derby.
The Reds welcomed Everton to Anfield having lost their last three games at their home stadium.
And they fell behind after just three minutes.
James Rodriguez played Richarlison through on goal and the Brazilian made no mistake as he finished past Alisson.
Everton would make the points safe with seven minutes remaining.
Carlo Ancelotti's side were given a controversial penalty when Dominic Calvert-Lewin went down in the box after a challenge from Trent Alexander-Arnold.
VAR called on referee Chris Kavanagh to look at the pitch-side monitor and, after looking at it for a matter of seconds, was certain his decision was the right one.
Gylfi Sigurdsson then converted the resulting penalty to secure Everton's first Premier League at Anfield since 1999.
Mohamed Salah had a frustrating evening.
The Egyptian winger spurned a golden opportunity to level the scores for his side in the second half.
He found himself one on one with Jordan Pickford but saw his effort saved.
Salah also produced another shocking dive to try and win his side a free-kick in a dangerous position.
The 28-year-old flung himself to the ground after minimal contact from Lucas Digne.
He wasn't the only Liverpool player that went down easy in the 90 minutes.
Sadio Mane did the same thing late on when he went down in the box under pressure from Michael Keane.
Both Salah and Mane were not given bookings for their actions.
Football fans have mocked both players for their actions and you can see some of the reaction below.
Liverpool's defeat now means they could drop down to ninth if those below them win their games in hand.
Jurgen Klopp's side are now in a real battle to finish in the top four and qualify for next season's Champions League.