Callaghan, the club's record appearance maker, having played 857 times in an 18-year career at Anfield, has been impressed by the progress made by the new Reds boss since arriving in the summer.
However, he said allowing Andy Carroll to leave on loan to West Ham in late August without a replacement being found was a mistake which may take some time to correct.
"Brendan Rodgers has come in and obviously he wants to play his style of football but it will take time," said Callaghan, who became a key component in the revolution the great Bill Shankly effected at the club.
"I was brought up on pass and move and that is the way Liverpool have always played.
"I think supporters want that style because they have been brought up on it over a number of years.
"The long ball wasn't Liverpool and that is why they competed so well in Europe for all those years."
Rodgers' insistence on a passing, possession-heavy style of play has yet to pa y full dividends, with the team taking just six points from seven matches - and yet to win at home - to leave them 14th in the table.
They have scored nine times - five of those coming in the victory at Norwich just over a week ago - with Luis Suarez left to shoulder the burden up front after Carroll was allowed to go to Upton Park, only for a deal for Fulham's Clint Dempsey to fall through.
"Managers have a list of players they would like to come in and play their way, and he has brought some players in and he will bring a few more players in," added Callaghan.
"But I feel as though we do need a regular goalscorer and that is probably one of the reasons why Liverpool's position now doesn't reflect how they've played.
"They've made the chances but not had a regular goalscorer to put them in.
"I don't suppose they should have got rid of Carroll really, even if he didn't fit into Brendan's plans.
"When things weren't going right there could have been Andy Carroll, who is terrific in the air, but the thing was no-one came in."
And Callaghan insisted just because a player's strength was in having an aerial presence, it did not mean he could not fit into the Liverpool way of playing.
"John Toshack played alongside Kevin Keegan when I was playing and he was great in the air," he added.
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