AcademyU18s match report: Liverpool beaten by Newcastle in seven-goal thriller
The first of the seven goals in the U18 Premier League North contest went the Reds' way through Afolami Onanuga's long-range strike in the 15th minute.
But they were pegged back and went behind early in the second half courtesy of a pair of Josh Donaldson finishes.
A Trent Kone-Doherty penalty levelled proceedings once more before Newcastle went down to 10 players when Logan Watts was given a red card.
Oliver O'Connor put the visitors 3-2 ahead but they would leave Whitley Park empty-handed after an own goal was followed by Matthew Taylor's late winner.
There was little to separate the two sides in the opening exchanges but Liverpool goalkeeper Kornel Misciur was needed to stop Joe Brayson from breaking the deadlock off a corner.
That close shave awakened the visitors and they duly took the lead two minutes later.
Onanuga picked up possession around 20 yards from goal, shifted the ball onto his left foot and unleashed a rocket that flew past Aidan Harris.
Kone-Doherty and Kieran Morrison were close to adding a second as the Reds' dominance should have seen them enter the break with more to show.
Their frustration would have increased not long into the second period when Donaldson turned the game on its head.
The Newcastle striker swept home to equalise when the ball fell kindly to him inside the box after an uncleared corner.
Twelve minutes later, the hosts countered off a Liverpool corner and the breakaway ended with Donaldson driving an effort from distance past Misciur to put the hosts 2-1 up.
The Reds responded four minutes later, however, with Joe Bradshaw earning a spot-kick within seconds of being introduced. Kone-Doherty's side-foot effort was too well-placed and powerful for Harris.
Josh Sonni-Lambie threatened all night and was denied by the woodwork just prior to Newcastle having Watts dismissed for a strong challenge on Kone-Doherty.
Boosted by possessing a numerical advantage, Liverpool went back in front when two substitutes combined, O'Connor heading in a brilliant cross into the area by Bradshaw.
But it was level again 120 seconds later as Emmanuel Airoboma inadvertently nodded into his own net after Misciur was unable to gather a cross from the right.
The game grew even more open as it raced towards the final whistle, and it was Matthews off the bench who provided the match-winning moment, firing beyond Misciur with 91 on the clock.
Harris ensured the three points remained in the hosts' possession with a stunning save to deny Kyle Kelly in the Reds' final attack.
TEAM
Liverpool U18s: Misciur, Pitt (O'Connor, 46), Airoboma, Furnell-Gill, Lonmeni, K. Kelly, Morrison, Laffey, Sonni-Lambie (Martin, 75), Onanuga (Bradshaw, 60), Kone-Doherty.
Unused substitute: Morana.
NEXT UP
Liverpool return to the north east on Saturday when they take on Sunderland in the league. Kick-off for the clash at Academy of Light is 11am BST.
VideoInside: The behind-the-scenes story of Liverpool's victory at Girona
ReactionMatt Beard on 'positive' Everton victory, Leanne Kiernan injury and more
Match reportLiverpool claim Merseyside derby victory over Everton in Women's League Cup
AcademyLiverpool qualify for UEFA Youth League knockout phase
Team newsConfirmed LFC Women line-up v Everton