Champions League hopes hang in the balance after a damaging defeat in Paris.
The Reds were second best to PSG in the Parc Des Princes – as the hosts tore Liverpool apart in the first half.
A mistake from Virgil Van Dijk allowed Juan Bernat to put the French side in front, after a period of early dominance for the hosts.
PSG then doubled their lead after a quick breakaway was eventually tucked away by Neymar on the rebound after Alisson’s save from Edinson Cavani.
Liverpool pulled a goal back on the stroke of half-time, when James Milner slotted away a penalty after a foul on Sadio Mane .
But PSG held out for all three points, leaving Liverpool third in the group with one game to spare.
Liverpool have work to do
Jurgen Klopp’s men only needed a point to keep qualification hopes in their own hands.
But they’ve left themselves with a lot to do if they are to progress to the next round following this defeat.
The Reds now need to beat leaders Napoli in the final match of the group stage to go through – on the assumption that PSG will win their clash with Red Star Belgrade.
It is not unforeseeable for Liverpool to do it, as they more than have the quality.
But they’ve been here before, Olympiakos in 2004-05 springs to mind.
Cue one of those tense and potentially special European nights at Anfield.
Van Dijk not invincible
He’s usually so dependable and has been the fulcrum of Liverpool’s season thus far – but Virgil Van Dijk had a night to forget in Paris.
The Dutchman has arguably been the Reds best player of this season, and has recently been lauded as the world’s best defender.
But Van Dijk showed an uncharacteristically sloppy moment to gift PSG the lead, and was all at sea in the first half.
He failed to clear his lines allowing Juan Bernat to score the opener – the type of error that Reds fans would have berated the likes of Dejan Lovren for.
And he was nowhere to be seen as PSG broke away for the second.
There’s no doubting his quality – but to be the best, he’ll need to cut mistakes like that out, for his own sake as well as his teams.
PSG banish Anfield horror show
The PSG we expected to turn up at Anfield back in September finally showed what they were made of at the Parc Des Princes.
Liverpool ran out 3-2 winners over the French side in their previous group game, but the scoreline flattered PSG.
This time round though, Thomas Tuchel’s men were straight out the blocks – and Liverpool couldn’t cope.
Neymar pulled the strings in the middle as the Reds struggled to detain the quick passing and movement of their opposition.
They found themselves two-up at the break – but in reality it could have been more.
With qualification for the next round now in their own hands, you’d fancy PSG to progress, and on this display, they could go a lot further.
Reds have lost their attacking spark
The Liverpool of last season were a full throttle, attacking beast.
If the opposition scored three, Liverpool would score four.
And whilst they have no doubt become a more solid unit at the back, they’ve lost their edge slightly going forward.
Jurgen Klopp has made no secret that his side now approach games in a different manner, and look to control matches from the off.
But they were all over the shop in the first 45 minutes here, and struggled to find a way past PSG when they needed another goal.
Harder to beat they may be, but they’re not quite firing at the other end.
Alisson shows his class
Liverpool may have lost, but it could have been by a far greater margin were it not for the man between the sticks Alisson.
The world’s second most expensive keeper was right in the thick of the action from the off, and made some important saves.
First he tipped Angel Di Maria’s effort round the post, before making two crucial interventions when PSG looked certain to score.
There was little he could do with Bernat’s goal, and his back four gave him little protection from Neymar and co. all night.
In the second half he was then equal to Marquinhos’ header from a corner to keep his side in touching distance.
He may have cost £67 million, but on this evidence he’s worth every penny.