Benefiting from City's stumble, Darwin Nunez scored the first goal in the first half, leading Arne Slot's team towards victory in a thrilling atmosphere. Despite Villa's strong performance in an exciting match, Mohamed Salah's late breakaway goal secured the win for his team.
The victory, a 15th in 17 games for Liverpool in all competitions, extends their lead at the top and offers hope that Slot's first season could prove to be a spectacular one.
Villa are eighth after a fourth loss in a row in all competitions for the first time under Unai Emery.
Villa's confidence has taken a hit of late but they did make a promising start at Anfield, Jacob Ramsey having a shot blocked before Leon Bailey headed over. Ollie Watkins wanted a penalty when seemingly nudged over by Ibrahima Konate inside the box.
TrendingBut Liverpool punished Emery's side on the counter-attack, Virgil van Dijk of all people running free following a Villa corner before sending Salah clear. The Egyptian tussled with Bailey, but the ball reached Nunez all the same, finishing high into the net.
Villa's set-piece coach Austin MacPhee has received plenty of praise but Liverpool almost scored from another corner for the away side, only for Nunez to blaze over when one-on-one once more. Those fast breaks remain a fearsome feature of the Reds' play.
It was the difference because while Morgan Rogers spurned a good opening early in the second half and Villa were chasing an equaliser late into the game, Salah made no mistake when breaking clear to end any hope of a comeback - to Anfield's delight.
It was not the perfect performance from Slot's side, not the perfect night either with Trent Alexander-Arnold going off injured before the interval, but there is a momentum to Liverpool's season that Arsenal and Man City lack. The force is with them right now.
City might be expected to regroup during the international break, but that five-point lead brings belief. Maybe it will not need north of 90 points to claim this particular Premier League title. If so, 28 from 11 puts Liverpool ahead of the game. Anfield is abuzz again.
Speaking in the press conference after the game, Slot discussed the injury to Alexander-Arnold that saw the player withdrawn in the first half.
"It is difficult to say how serious it is, but it's always serious if a player goes out in the first half, not because I didn't like him, but because he asked for it himself. He didn't ask for it because he was tired, he asked for it because he got something," said Slot.
"That is first of all not a good sign, but it's always difficult so close after the game to tell you exactly what it is. But we have to wait and see. I would be surprised if we would see him playing for the England national team this week, but hopefully he can."
Speaking in the press conference, Emery felt Aston Villa should have had a penalty when Conor Bradley pulled the shirt of Pau Torres inside the 18-yard box. The incident was checked by VAR but the on-field decision of the referee was not overturned.
"With VAR, the action was clearly a penalty because he pulled shirt of Pau Torres. I know in Europe this is a penalty but here in England they want to use VAR… I don't know exactly. Because in this situation the decision was clear.
"I always accept the decisions of the referees but for me it was a clear penalty. And of course, it was a very important moment in the game. If we have the chance to shoot a penalty, maybe the result is different. I accept the decision but I do not agree."