The Manchester City man is a solid signing for Brendan Rodgers, but they must set their sights much higher in top-four pursuit and beyond.
With Steven Gerrard having left for LA Galaxy, it was crucial that manager Brendan Rodgers brought in someone experienced to help his otherwise youthful squad.
And while Milner may not have the gravitas, or indeed the talent, that Gerrard commanded, he is still a figure that the current crop of Liverpool talent can look to lead them. There have even been suggestions from Jamie Carragher, per Sky Sports, that he could replace Gerrard as captain.
The Manchester City man has not just been secured for his experience, though, his talent is undeniable and, at 29-years-old, he has several good years in front of him yet.
However, if Liverpool are to compete at the top once again, they must look for signings with more star quality than the England man. He’s good, but is he good enough to drag them into the top-four again? Probably not.
That was what Liverpool previously had with Luis Suarez, and was so plainly missing last year, a star player who dragged the rest of the team forward. It was what the Uruguayan did the year before as they came so close to the Premier League title.
Arsenal have Alexis Sanchez, Chelsea have Eden Hazard and Manchester City have Sergio Aguero. Three star players who not only make everyone else around them better, but also win games on their own when the situation calls for it.
And that is what Liverpool must look to get for themselves. Where they find that, however, is another matter. There are very few superstars available these days and most are already at bigger clubs than Liverpool.
The likes of Gonzalo Higuain, Edinson Cavani, or even a Karim Benzema would not only turn heads at Anfield, but in the Premier League as well. All would be ambitious and costly moves, but not entirely outside the realms of possibility.
The board have backed Brendan Rodgers and they must back him in the transfer market also. He may have spent the Suarez money poorly, but one superstar signing at Anfield would make that a distant memory.
As a free transfer, James Milner is as good a move as any, but if Liverpool are harbouring dreams of being an elite side in the Premier League and Europe once again, then they must set their sights much higher.