After the Reds sealed their spot in the final by beating Villarreal, the forward revealed he would rather face Madrid than Manchester City as he wanted redemption after being injured in the 2018 fixture by Sergio Ramos.
The Liverpool attacker suffered what he called the worst moment of his career in Kyiv as the shoulder injury forced him off the pitch in tears during the first half of the 3-1 defeat.
"I think it will be a big motivation for him," Carragher said on CBS Sports. "I think he was very aggrieved because that was his moment in some ways.
"He really burst onto the scene, he had been a revelation and the whole world had sat up and taken notice with him scoring I think 44 goals that season.
"The whole campaign for Liverpool was built around this guy winning the Champions League for them and he got Ramos'd, shall we say. Sergio Ramos used his experience, dark arts, whatever you want to call it, in that game and I think that was a huge blow for him really.
"Players and managers never like to talk about revenge. They don't like to use that word in the press to build up or maybe in some ways motivate the opposition but, really, we all think it!
"It's something that you just don't say, so I actually admired Mo Salah for actually just being honest to say 'Yeah, I'd rather play Real Madrid and not Man City because Man City are a better team and also because I've got unfinished business'.
"I liked the fact that he was honest about it and it also makes me realise that he is going to be so determined to win this game and that makes me feel good as a Liverpool supporter.
"Sometimes, you want to play well, do too much really, so I hope it doesn't manifest itself in terms of Mo taking stupid shots from silly angles when he should be playing people in. He does do that from time to time, but I think he's gonna have a huge role to play in the game.
"He hasn't been as best in the second half of the season. I think he's aware of that. I think you've seen signs of frustration from him at different times. But no, I think he'll feel like this is this is redemption."
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