Liverpool's impressive 44 game unbeaten league run was ended by the desire of Watford to try and get themselves out of the relegation zone.
The reds, who need just 4 wins to win this years league title, were out-worked by the hornets in matchday 28 of the Premier League campaign.
Ismaila Sarr scored two goals in the middle of the second half, before Troy Deeney capitalised on a defensive error to add a third to rub salt into the wounds.
The reds turn their attention to an FA Cup clash against Chelsea that could see many of the teams youth players given another run out.
The club are back at Anfield next weekend, when Bournemouth are the next Premier League opponents.