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A 70th minute strike from Georginio Wijnaldum from the edge of the box handed Liverpool their seventh successive victory of the Premier League season, as they went eight points clear of Manchester City at the top of the table for the time being.
It was perhaps the toughest 90 minutes the Reds have played, as a flurry of half-chances was all that came their way across the various phases of the game against an obdurate Blades outfit.
Thankfully, just when it looked like the hosts were in line to deny Liverpool, a horrifying error from gloveman Dean Henderson gave Jurgen Klopp and co. their opener and eventual winner.
Until the 70th minute mark or so, it was the home team doing the talking in terms of chances, as they tested Adrian with efforts on goal, while it took Wijnaldum's goal-scoring effort to be labeled as the first shot on target.
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Sadio Mane fluffed a couple of clear-cut opportunities, with one of those shots from close range striking the near post, much to his frustration. But besides that, Sheffield were on top of their game, in terms of both tactics and execution.
Wijnaldum's goal proved to be the main talking point, but a host of commendable displays from both sides framed the way things unfolded. Here are the best and worst performers from Liverpool's 1-0 victory over Sheffield United.
#5 Flop: Lys Mousset
Lys Mousset was brought on for the hard-working Callum Robinson at the hour mark, meaning he had plenty of time to influence proceedings.
He wasn't all that powerful with his hold-up play, neither did he collaborate well with Oli McBurnie upfront. The former Bournemouth forward struggled to break free or provide the cutting edge, which he should have on a few occasions.
In terms of work rate as well, the 23-year-old should have done better in picking up the pieces. Just about a few touches, misplaced passes and substandard running summed up his evening.
#4 Hit: Virgil van Dijk
Substantial amount of credit falls to the hosts for their game plan, crossing show and creative spells of play. They were simply fantastic for having moved the ball up the field quickly against one of the fiercest presses in the division.
The likes of Jack O'Connell, John Fleck and Enda Stevens flooded crosses into the box, but Virgil van Dijk was there to sniff danger and thwart it with conviction. He was always ahead of the ball and the opposition forward, sensing trouble before everybody else and thereby, clearing his lines.
As usual, van Dijk was effortlessly impressive with the ball at his feet, as he supplied passes up the pitch time and time again. The balls over the top to Andy Robertson and Mohamed Salah were commendable as well.
The way he dealt with long balls and crosses was superb. His positioning, decision-making and poise in the middle exemplified why he is widely regarded as one of the finest center-halves on the planet.
#3 Flop: Trent Alexander-Arnold
Trent Alexander-Arnold starred in the 2-1 victory over Chelsea last week, causing major trouble to the Blues' back line and launching an absolute rocket of a goal to power his side ahead.
Today however, he was besieged by a heroic tactic from Chris Wilder, who forced his players to play the long diagonal, along with the 60-odd yard pass down the left channel. He knew how desperate the Liverpool full backs are to get forward and combine with the front three, and the Sheffield United gaffer used the same to great effect.
Not once or twice but thrice, John Egan and Stevens combined to set an ever-willing McBurnie down Liverpool's right - in acres of space. And to say the least, Alexander-Arnold was caught out way too often.
Further, Sheffield United did brilliantly to press the left and right spaces down, condense the spaces and force Robertson and Alexander-Arnold to occupy deeper, wider spaces - from where they aren't as lethal as we know they can be.
The Liverpool right back thus, couldn't really provide much going forward either.
#2 Hit: John Egan
Boy, did the back three of Sheffield United rise to the occasion and supply the goods. The likes of Chris Basham and Jack O'Connell were ever-present on both sides of the pitch. But, one performance that stood out for the Blades was that of John Egan's.
The centre-back was up to his task and witched on for the entirety of the 90 minutes. He was always alive to the second ball during open play, and the first one while defending set pieces.
However, above all that we saw was the way he dealt with Mohamed Salah and later, Sadio Mane. The Liverpool trio exchanged positions constantly, but Egan was alive to every single move.
He chipped in with clearances and was always decisive with his running.
Roberto Firmino was made to drop extremely deep, and was clearly not allowed to run the game. The credit for the same, goes almost completely to John Egan, to congest key spaces and stiffen up the space just outside the 18-yard box.
#1 Flop: Dean Henderson
There was a lot displayed by the hosts in terms of grit and nerves from the outset. They tied Liverpool up in wraps, locked them down to flatter, safer passes and sucked their venom out for about 70 minutes.
While they had a couple of efforts on goal themselves, Sheffield United shot-stopper Dean Henderson faced zero shots on goal. The Reds had four shots on target, with each of them coming after the 70th minute mark.
Many would argue Sheffield deserved a point at least, if no all three. However, all their patience, concentration and sheer hard work went down the drain when Henderson spilled a Gini Wijnaldum effort.
Fair to the Liverpool midfielder for having struck it sweetly, on target; but the Manchester United loanee gifted his parent club's fiercest rivals all three points by fumbling a shot; a strike that should have been gobbled up all day.
These moments count for the titles that are won in the Premier League, but also do for the sides who are battling it out for survival.
An absolute howler it was, indeed.
