The Scotsman's impact was instant and he transformed the club into one of the strongest teams in Europe.
Many believe Shankly is the greatest manager in the history of the Reds, and he is almost as well remembered for his quotes, such as "If Everton were playing at the bottom of the garden, I'd pull the curtains", as he is for his trophy successes!
In fact, it wasn't until 1964 when manager Bill Shankly decided to replace the white shorts and socks with red ones as he felt an all-red kit strip would make his players look more scary to the opposition!
So, in December 1964 Liverpool wore all-red for the first time in a European Cup match with Anderlecht, changing the image of football forever.
After a goalless 90 minutes, Roger Hunt gave the Reds an early extra-time lead but Billy Bremner equalised for Leeds soon after. However, in the 113th minute, Ian St John scored with a diving header and the cup was heading to Liverpool.
Amazingly, Reds defender Gerry Byrne played for most of the match with a broken collarbone!
The tie was played over two-legs, with the first match taking place at Anfield. Two goals from Kevin Keegan and one from Larry Lloyd gave Liverpool a 3-0 victory.
The Reds had to survive a scare in the return match in Germany as Monchengladbach scored two first-half goals. However, Liverpool were able to see out the rest of the game and win the trophy.
The Scotsman won three league titles, two FA Cups and one UEFA Cup during his 15-year spell as Anfield boss.
Shankly's replacement wasn't a bad one as Liverpool turned to Bob Paisley, who went on to become the most successful manager in the history of the club!