
Born in Whiston, Merseyside, Gerrard started out playing for hometown team Whiston Juniors, where he was noticed by Liverpool scouts. He joined the Reds' youth academy at the age of nine. Gerrard then had trials with various clubs at fourteen, but his success wasn't immediate - Gerrard never made it into the England Schoolboys team. Gerrard's trials included Manchester United, which he claimed in his 2006 autobiography was "to pressure Liverpool into giving me a YTS contract." He signed his first professional contract with Liverpool on 5 November 1997.
Gerrard made his Liverpool first-team debut on 29 November 1998 in a match against Blackburn Rovers as a last minute substitute for Vegard Heggem. He made thirteen appearances in his debut season, filling in the midfield position for injured captain Jamie Redknapp and playing on the right wing, but he scarcely contributed in the short on-pitch time he received, due to nervousness affecting his play. Gerrard recalled in a November 2008 interview with The Guardian, "I was out of position and out of my depth." The Liverpool hierarchy nonetheless remained convinced that he would improve. Gerrard saw himself as a defensive player primarily, looking to make key tackles rather than push the team forward.

In 2000–01, he made fifty starts in all competitions and scored ten goals as Liverpool won the League Cup, FA Cup, and the 2001 UEFA Cup. Gerrard replaced Sami Hyypiä as Liverpool captain in October 2003, as manager Gérard Houllier said that he recognised Gerrard had demonstrated leadership qualities early on, but needed to mature. He chose to extend his contract at the club, signing a new four-year deal.
Houllier quit after a trophyless 2003–04 campaign, and Gerrard was linked with a move to Chelsea during the offseason. He admitted he was not "happy with the progress Liverpool has made," and that "for the first time in my career I've thought about the possibility of moving on." In the end, Gerrard turned down a £20 million offer from Chelsea to stay with Liverpool and new coach Rafael Benítez.

During a six-minute stretch in the second half of the 2005 Champions League final against A.C. Milan, Liverpool rebounded from a three-goal deficit to tie the match at 3–3 after extra time, with Gerrard scoring one of the goals. Liverpool's third goal was gained as a penalty from a foul awarded to Liverpool when Gennaro Gattuso fouled Gerrard in Milan's penalty box. Gerrard did not participate in the penalty shootout, which Liverpool won 3–2 as they claimed their first CL trophy in twenty years, though he was named the Man of the Match, and later received the UEFA Club Footballer of the Year award.
In regards to his contract issues with Liverpool, Gerrard told the press after the final, "How can I leave after a night like this?" But negotiations soon stalled and on 5 July 2005, after Liverpool turned down another lucrative offer from Chelsea, Gerrard rejected a club-record £100,000-a-week offer. Liverpool chief executive Rick Parry conceded the club had lost Gerrard, saying, "Now we have to move on. We have done our best, but he has made it clear he wants to go and I think it looks pretty final." The next day, Gerrard signed a new four-year deal as Parry blamed the earlier breakdown of talks on miscommunication between the two sides.
Gerrard scored twenty-three goals in 53 appearances in 2005–06, and in April became the first Liverpool player since John Barnes in 1988 to be voted the PFA Player of the Year. He scored twice in the 2006 FA Cup final against West Ham United, including an equalizer that sent the match into extra time, and Liverpool won their second consecutive major trophy on penalties. The goals made him the only player to have scored in the FA Cup, League Cup, UEFA Cup and Champions League finals. Gerrard netted a penalty as Liverpool eliminated league rival Chelsea in the 2006–07 Champions League semi-finals to return to their second final in three seasons, which they lost 2–1 to Milan.

He made his 300th Premier League appearance on 13 April 2008 in a match against Blackburn Rovers, scoring the opening goal, and finished the season with twenty-two league goals, surpassing his total from the 2006–07 season. Gerrard was selected for the PFA Team of the Year and he was also one of the nominees or the PFA Player of the Year, alongside teammate Fernando Torres.
Gerrard needed to undergo groin surgery at the beginning of the season, but the problem was not serious and he quickly returned to training. He scored what appeared to be his hundredth career Liverpool goal against Stoke City on 20 September, but it was disallowed after Dirk Kuyt was ruled offside. He achieved the milestone eleven days later in a 3–1 Champions League group stage win over PSV.

During the 2009-10 season, he expressed his disappointment of the departure of fellow teammate, Xabi Alonso, after a run of poor results, saying "Devastated, yeah. Devastated. But there was nothing I could do about it [Alonso's decision to leave]," .

Gerrard made his international debut against Ukraine on 31 May 2000. That summer, he was called up for Euro 2000, making only one appearance as a substitute in a 1–0 win over Germany before England were eliminated in the group stage. Gerrard scored his first international goal in a 5–1 victory over Germany in a 2002 World Cup qualifier in September 2001, and while England qualified, Gerrard was forced to pull out of the squad due to his ongoing groin problems.
He was a regular starter in Euro 2004, scoring once - against Switzerland - before England were eliminated by Portugal in the quarter-finals on penalties. He participated in his first World Cup in 2006 and scored a team-leading two goals, both in the group stage, against Trinidad & Tobago and Sweden, though his spot kick was one of three saved by goalkeeper Ricardo as England again bowed out to Portugal in the quarter-finals on penalties.
Gerrard was made vice-captain of the England team by coach Steve McClaren, and while he filled in for John Terry as captain, England suffered back-to-back losses to Russia and Croatia that ended their Euro 2008 qualifying hopes. After new coach Fabio Capello took over the team in early 2008, Gerrard was given a trial run as captain but Capello settled on Terry for the role. Gerrard was subsequently replaced as England vice-captain by Rio Ferdinand.