A 66th-minute goal by German midfielder Marco Reich helped second division Crystal Palace record a surprise 2-1 win over European champions Liverpool in the third round of the League Cup on Tuesday.
Arsenal, League Cup winners in 1987 and 1993, eased to a 3-0 victory at Sunderland while West Bromwich Albion won 3-2 at Fulham after their all-Premier League clash went to extra-time.
Blackburn Rovers advanced to the last 16 with a 3-0 triumph over second division Leeds United at Ewood Park while Aston Villa edged second division Burnley 1-0.
Liverpool, beaten 3-2 by Chelsea in last year's League Cup final in Cardiff, withstood an early onslaught from Palace before falling behind in the 37th minute at Selhurst Park.
Harry Kewell gave the ball away in midfield and Dougie Freedman pounced on a left-wing cross to power a close-range header beyond goalkeeper Scott Carson.
Australia striker Kewell tried to make amends for his lapse when he forced Palace keeper Julian Speroni to make a reflex save a minute later.
Liverpool, seven-times winners of the League Cup, equalised in the 40th minute when captain Steven Gerrard steered a precise low shot into the corner of the net from 20 metres.
Darren Potter spurned a good chance to put the visitors in front in the 56th minute when he spooned a close-range volley over the bar with an open goal gaping.
Palace, relegated from the Premier League last season, grabbed the winner when Michael Hughes clipped a clever ball over a packed Liverpool defence for Reich to volley home from eight metres.
"Everyone, from full backs to wide men, got the ball down and passed it. We looked creative plus we were full of energy."
Liverpool manager Rafael Benitez said: "We created opportunities but we just couldn't score the second goal.
"You couldn't say the players didn't work hard. Their goalkeeper saved some good opportunities and we worked really hard."
Dutch striker Robin van Persie hit two goals in Arsenal's win at Sunderland while Japanese midfielder Junichi Inamoto sunk his former club Fulham by driving in an extra-time winner from 30 metres for West Brom.
Brett Emerton, Paul Dickov and Lucas Neill were on target for Blackburn against Leeds. Kevin Phillips claimed the only goal in Villa's victory over Burnley.
In Tuesday's other ties, high-flying Premier League side Wigan Athletic needed two extra-time goals from Andreas Johansson and one by Ryan Taylor (penalty) to defeat second division Watford 3-0.
Reading beat second division title rivals Sheffield United 2-0, Millwall won 3-2 at Mansfield Town and Doncaster Rovers overcame Gillingham 2-0.
Holders Chelsea begin their campaign on Wednesday with a London derby against Charlton Athletic at Stamford Bridge.
Manchester United also face Barnet on Wednesday while Everton meet Middlesbrough, Bolton Wanderers take on West Ham United and Grimsby Town entertain Newcastle United.Birmingham City play hosts to Norwich City and Cardiff City are at home to Leicester City.