The 19-year-old joins Scott Rogers’ side having come through the ranks at Crystal Palace Ladies before moving to Millwall Lionesses in 2015.
Following two years with Millwall, she then moved to Watford Ladies in 2017, finishing as the Hornets' joint-top scorer in the Spring Series with three goals in nine appearances.
On moving to Merseyside, Babajide said: “I am absolutely delighted to be joining a club as big as Liverpool Ladies and cannot wait to get started. This is a huge opportunity for me to make the step up to FA WSL1 and I am really excited to meet my new teammates.