The striker has fallen down the pecking order in Jurgen Klopp's team in recent weeks.
The striker spent most of this season on the injury table once again as he battled back from a long-term injury.
He is now back fully fit though, and proving why the Reds have been so desperate to get him back with several impressive performances.
However recent weeks have seen him sitting on the bench, as manager Jurgen Klopp has opted for Divock Origi as his first choice striker.
And Carragher has urged the England striker to realise that he must work hard to earn his first team place.
“The record shows the quality that he has got. He is an unbelievable striker,” he told Sky Sports.
“But he has to think to himself why isn’t he in the first team? It isn’t an unbelievable Liverpool team. The fact that he isn’t playing has to sink in.”
Sturridge is likely to be given his chance in the first team now that Origi looks set to miss the rest of the season.
He picked up an ankle injury in the Merseyside derby and may need surgery, giving Sturridge his shot at staking a regular claim in future.
He certainly has a reason to play well too, with a place in England’s squad for Euro 2016 this summer very much up for grabs.