Jurgen Klopp's side suffered a 5-2 loss to Los Blancos in the first leg at Anfield, meaning that they will have to produce a special performance to advance to the final eight.
The Reds will enter the contest off the back of a disappointing 1-0 loss to Bournemouth in the Premier League, with the result a huge setback after the recent 7-0 success over Manchester United.
Here, Sports Mole rounds up Liverpool's latest injury and suspension news ahead of their trip to Real Madrid, who beat Espanyol 3-1 in the league on Saturday.
Luis Diaz
Status: Out
Type of injury: Knee
Possible return date: Unknown
Luis Diaz has made excellent progress in his recovery from a serious knee injury, but the Colombia international is not yet ready to be considered for a return to the first team.
Thiago Alcantara
Status: Out
Type of injury: Hip
Possible return date: Unknown
Thiago Alcantara is currently battling to overcome a hip problem, and it is unclear when the Spaniard will be available for selection once again, but he is definitely out of this match.
Calvin Ramsay
Status: Out
Type of injury: Knee
Possible return date: Unknown
Calvin Ramsay will not play again this season as he recovers from knee surgery, with the 19-year-old instead working on a potential return for the next pre-season.
Joe Gomez
Status: Major doubt
Type of injury: Muscle
Possible return date: March 15 (vs. Real Madrid)
Joe Gomez was again missing against Bournemouth due to a muscular problem, but the defender has an outside chance of being involved in the clash with Real Madrid.
Naby Keita
Status: Major doubt
Type of injury: Knock
Possible return date: March 15 (vs. Real Madrid)
Naby Keita was again missing against Bournemouth due to a recent knock, but the midfielder has a slight chance of making a return to the squad against Real Madrid.
LIVERPOOL'S SUSPENSION LIST
Liverpool have no players suspended for this match.