The 33-year old played with the Socceroos star at Anfield between 2003 and 2008 when Kewell joined from Leeds United.
The Australian winger had massive expectations placed on him when he arrived on Merseyside but various reasons did not allow him to rise to those lofty heights.
But Carragher feels that Kewell, who recently finished a contract with Turkish club Galatasaray, has been unlucky throughout his career.
"I'm not sure about that," Carrgaher said when asked by au.fourfourtwo.com if Kewell is a wasted talent.
"He was unlucky with injuries and that the manager who signed him (Gerard Houllier) left a year later.
"He had bad injuries but the record books show that he started in a Champions League Final and an FA Cup Final and has the winners' medals to prove it.
"He had all the talent but I guess it didn't quite go for him here. It's a shame."