Luis Diaz ultimately scored the winning goal of the tie as he opened the scoring in the second leg at Craven Cottage to set up the clash against Chelsea, who beat Middlesbrough on Tuesday, next month at Wembley.
Issa Diop scored an equaliser on the night with close to 15 minutes left but Fulham needed another goal to send the match to extra-time and two to win the match, with Liverpool winning 3-2 on aggregate after emerging 2-1 victors in the first leg at Anfield.
Some fine work from Harry Wilson, who came up through the academy at Anfield, set up the Frenchman.
But ultimately, Liverpool triumphed and will have the chance to reclaim the trophy they won two years ago, and the tenth in their history.
It is a repeat of the 2022 Carabao Cup final which featured the same teams with Jurgen Klopp the victor on that occasion as the Reds won on penalties.
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With Liverpool leading the race in the Premier League, it could be the start of an illustrious season for the Reds.
But it nearly went against them early in their second-leg encounter against Fulham, who might feel aggrieved after missing several opportunities.
Joao Palhinha had an excellent chance to put the home side ahead after being found completely unmarked from a corner.
Andreas Pereira hit the post in the second half after Caoimhin Kelleher missed the ball when he came out to meet a Willian cross.
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Diaz's opener is one Fulham goalkeeper Bernd Leno will not want to see it back.
The German got a hand to the 27-year-old, whose deflected effort squirmed past him into the corner of the net.
Speaking on talkSPORT, former goalkeeper Scott Minto said: "Bernd Leno, my goodness me, he saves that 99 times out of 100... he'll be thinking, 'how on earth have I not saved that?'"
With Diaz scoring after 11 minutes, it killed a lot of confidence around Craven Cottage with Fulham then needing two goals to take the contest to extra-time and potentially penalties.
Liverpool, meanwhile, were keen to score again as Darwin Nunez and Harvey Elliott were both close to wrapping up the tie early.
As well as Kelleher starring from the Liverpool academy, Conor Bradley continued his fine form deputising for the injured Trent Alexander-Arnold.
Jarrell Quansah also slotted in seamlessly next to Virgil van Dijk, giving Klopp plenty to think about when he has a fully fit squad.