The top half of one of the famous gates to the former children's home in Woolton - made famous by Beatles song Strawberry Fields Forever - has been painted yellow and the phrase "There is always a field for imagination. John you know you should be glad" has been painted on the wall.
Resident Denis Murphy said he noticed the damage as he was driving past this afternoon.
He said: "It is awful. As I was driving past there was a bus full of tourists pulling up and they had to see that.
"The paint's been thrown all over the gate and there's yellow writing which has been painted on the wall.
"There have been lots of Beatles fans in Woolton village after the music festival at the weekend and it looks really bad.
"It's a busy main road, I don't know how someone could have done this and not been spotted."
By Eleanor Barlow