Liverpool and Cardiff played to a 1-1 draw after 90 minutes, and in extra time, a goal from the Reds' Dirk Kuyt and Cardiff's Ben Turner leveled the scoring at two before a penalty shootout was needed.
The Reds capped off a thrilling final with a win after an exciting penalty shootout in which many players were unable to find the back of the net.
In the end, Cardiff's Anthony Gerrard shot past the left post in the sudden death portion of the shootout to give Liverpool the cup title.
Liverpool needed this win badly since they had not won a trophy in six years, but this moment will certainly give the team a great deal of confidence going forward.
Many of the Reds players had not played in a League Cup final before this match, and now they have gained some valuable experience that will help them later this season.
The Reds have not played in Europe's most prestigious club competition since the 2009-10 season, where they were knocked out in the group stage.
They have been playing very well since the start of the new year, and there's no doubt that Sunday's spectacular Carling Cup win will give the players the confidence and desire they need to finish in the top four this season.
Liverpool's main goal left this season is to qualify for the Champions League, but their Cup triumph will provide them with the motivation they need to face this challenge.