Liverpool's unbeaten season came to an end at Vicarage Road as Watford recorded a famous 3-0 win against the leaders.
Watford were rewarded for a bright start damaged by an injury to Gerard Deulofeu with two early second-half goals through Ismaila Sarr.
The opener came on 54 minutes, when Abdoulaye Doucoure reacted quickest to tee up Sarr to tap in.
Sarr doubled the advantage six minutes later, running on to Troy Deeney's pass before lifting the ball over Alisson.
On 72 minutes, Sarr found Deeney to finish with Alisson stranded off his line.
A first win in six matches lifts Watford out of the bottom three on goal difference.
Liverpool's 44-match unbeaten run, and their 18-match winning sequence, ends as they stay on 79 points, 22 points above Manchester City.
See: Watford report | Liverpool report
Next fixtures
Watford: 7 Mar v Palace (A)
Liverpool: 7 Mar v AFC Bournemouth (H)
Match officials
Referee: Michael Oliver. Assistants: Stuart Burt, Simon Bennett. Fourth official: Jonathan Moss. VAR: Mike Dean. Assistant VAR: Darren Cann.
WHO'S GOING TO BE YOUR
MAN OF THE MATCH?
Vote at Full-time