Dalglish's last game for the club was a 4-4 draw against Merseyside rivals Everton in the FA Cup in 1991 and fittingly he will mark his comeback in the competition against arch rivals at Manchester United at Old Trafford on Sunday.
With the Kop legend back to try and turn around the club's ailing fortunes, Sportsmail looks back on Dalglish's highs and lows in 14 years at Anfield.
Final straw: Peter Beardsley scores for Liverpool in the 4-4 draw with Everton, Kenny Dalglish's last match in charge at Anfield
1977: August 10 - Joins Liverpool from Celtic in a British record £440,000 deal.August 13 - Makes Liverpool debut in Charity Shield encounter with Manchester United.
August 20 - Scores first Liverpool goal after just seven minutes of league debut against Middlesbrough at Ayresome Park.
August 23 - Nets on Anfield debut as the Reds beat Newcastle 2-0.
Just champion: Kenny Dalglish scored the winning goal in the 1978 European Cup Final against Bruges
1978: Tops the club's goalscoring chart at the end of first full season with Liverpool, his one-in-two ratio bringing 31 goals in 62 appearances.
May 10 - Scores the winning goal in the European Cup final against FC Brugge at Wembley.
1979: Dalglish is awarded the football writers' player of the year award as Liverpool wrap up the First Division championship.
1980: Wins second English league title with Liverpool.
1981: Liverpool win the League Cup, but the big prize comes as the Reds clinch the third European Cup of the Bob Paisley era.
1982: Liverpool claim another First Division Championship and a second successive League Cup win.
1983: A third League Cup triumph is capped by securing back-to-back league titles. Dalglish's contribution is recognised as he is voted both Player of the Year and Players' Player of the Year.
1984: Now playing under Joe Fagan, Dalglish is again inspirational as Liverpool clinch a famous treble, lifting the European Cup, league title and League Cup.
1985: May 29 - Liverpool reach the final of the European Cup but the match against Juventus at the Heysel Stadium in Brussels was overshadowed by events off the pitch as 39 people - mostly fans of the Italian club - die amid supporter unrest.
Hours before the ill-fated match, Fagan announced he would retire at the end of the season, leaving Dalglish to step up to a player/manager role.
1986: With English clubs banned from Europe in the wake of Heysel, Dalglish was left to concentrate solely on the Reds' domestic ambitions, and duly delivered the Anfield faithful a league and FA Cup double, with Dalglish hitting the goal that clinched the First Division Championship.
Double delight: Kenny Dalglish with the 1986 League and FA Cup trophies
1987: The 1986/87 season was a huge disappointment for Dalglish's side, with Merseyside rivals Everton winning the league, Arsenal defeating them in the League Cup final and a humbling FA Cup exit at the hands of Luton.
1988: The signings of Peter Beardsley, John Barnes and John Aldridge the previous year meant Dalglish increasingly became consigned to the Liverpool dug-out. His new-look side nevertheless delivered him a second league title as player/manager.
1989: April 15 - Dalglish endures his darkest hour as Liverpool manager when 96 fans of the club die in a crush at Hillsborough Stadium ahead of the FA Cup semi-final against Nottingham Forest.
May 20 - Just five weeks after the events of Hillsborough, Dalglish leads Liverpool to an emotional 3-2 win over Everton in the FA Cup final at Wembley.
1990: May 1 - Makes his final appearance for the club at the age of 38, coming on as a second-half substitute in Liverpool's last home game of the season against Derby, by which time the Reds were league champions for the third time under Dalglish. He retired with a record of 172 goals in 515 first-team games for the club.
1991: February 22 - Dalglish ends his long association with Liverpool as he stands down as manager on health grounds.
2009: April 19 - Dalglish is widely linked with making a sensational return to Anfield as a member of manager Rafael Benitez's backroom staff.
April 24: Benitez admits he has talked to Dalglish but has not decided what role he could play.
July 3: Dalglish is appointed to a senior role at the Liverpool academy and is also to act as a club ambassador.
2010: June - Asked to help find Rafael Benitez's successor and is linked with the job himself. Roy Hogdson is eventually appointed.
2011: January 8 - Following Hodgson's departure, Dalglish takes charge of Liverpool until the end of the season.
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