Lambert and Balotelli were brought in by then Reds manager Brendan Rodgers from Southampton and AC Milan respectively at the start of the 2014/2015 season to cushion the loss of Luis Suarez, who had joined Barcelona in a big-money move after the 2014 FIFA World Cup.
They both lasted just a season at Anfield, contributing three league goals between them before Lambert left for West Bromwich Albion while the maverick Italian striker returned to Milan on loan.
Discussing his time at Liverpool, where he also spent his youth career, Lambert struggled to come to terms as to how Balotelli was always ahead of him in the pecking order despite his lackadaisical attitude in training.
"It was great," the 38-year-old, who played for England at the 2014 FIFA World Cup told Bristol Live.
"I returned to my home city as a different person than when I left. I was a lot more professional of course. And it went okay at first, I scored a couple and was quite happy.
"But I could tell that the players were all shocked at losing Luis Suarez, and how much of their game revolved around him. I was never going to replace someone like that, was I? Going in after him was hard, very hard.
"And then Brendan Rodgers brought in Mario Balotelli and put him in ahead of me, and it done my head in to be honest. I couldn’t understand.
"The way he used to train was a disgrace. Off the training pitch he’s quite infectious, a lovely lad. But his persona on the training pitch is not good.
"When he played he did try, and I have come across players with that attitude before, but they are usually good enough to get away with it, but he wasn’t.
"I just didn’t understand how Rodgers was letting him get away with it, and picking him ahead of me. It affected me directly, but it had a negative impact on the team."