Four academy player started for Liverpool as they got the better of Xabi Alonso’s Chelsea at Anfield to progress in the EFL Cup.
Morgan Rogers put the visitors ahead from the penalty spot in the 40th minute, but Cody Gakpo levelled things up the same way shortly after.
Wesley Fofana missed the decider for Chelsea.
There will be another reunion in the quarter finals as Liverpool will face Iraola’s former club Bournemouth.
Speaking to Sky Sports after the game, Iraola was happy with his side’s performance and saved special praise for Liverpool’s youngsters.
"It was a level game. Not a lot of chances for both teams. We are really happy with the performances of the players," he said.
On youngsters playing: "They were very good against Spurs in the first round and they are very good players. We are confident and they have shown they are at a very good level. They helped us.
"You have to keep the concentration levels and the control. Giorgi (Mamardashvili) has improved at stopping a lot of the shots.
"Three at home in a row is very important. We were struggling at home in the league but now we go against Arsenal on Sunday."