Babbel began his career in his native Germany, playing for Bayern Munich for the first time in 1991. Whilst at the club, he won the Bundesliga three times (1997, 1999 and 2000), the UEFA Cup (1996) and was a runner up in the 1999 Champions League. Babbel then moved to Liverpool in 2000, and went on to win the FA Cup and League Cup in 2001, as well as the UEFA Cup and Super Cup.

Babel was part of the Germany squad that won Euro 1996. He made 51 appearances for his country.