Before making the switch, the 18-year-old spent a week training with the Reds and Jurgen Klopp made a decision to sanctioned a six-figure bid.
The Bairns starlet hooks up with the Anfield development side after making 26 first-team appearances at the Falkirk Stadium.
Gallacher, 18, has completed the move that is initially worth £200,000, sources have told ESPN FC, and is viewed as a player for the future at Liverpool.
Meanwhile, European giants Barcelona were also once linked with the Scottish youngster. For a player to come from Falkirk and go to Liverpool doesn't happen a lot.
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Liverpool have completed the signing on Tony Gallacher from Falkirk, it was confirmed on Saturday.
On Falkirk's official website, manager Paul Hartley admitted the club couldn't stand in the way of a tremendous chance for Gallacher.
"Hopefully he goes there and proves how good a talent he is".
Gallacher becomes Liverpool's second signing of the January transfer window after the club struck a £75m deal to sign centre-back Virgil van Dijk from Southampton - a world-record fee for a defender.
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