Manchester City's 'Invincibles' bid ended in game 23
Pep Guardiola's side had been touted by some as capable of going the entire season without suffering a defeat after dominating the first half of the campaign.
Manchester United, Chelsea, Tottenham and Arsenal were all brushed aside as City marched 15 points clear at the top of the table.
Jurgen Klopp's side were also thrashed 5-0 at the Etihad Stadium in September, but the reverse fixture proved a step too far for Guardiola's men as Liverpool held on in a 4-3 thriller.
Goals from Alex Oxlade-Chamberlain, Roberto Firmino, Sadio Mane and Mohamed Salah helped Liverpool move 4-1 in front.
The visitors threatened a comeback with late goals from Bernardo Silva and Ilkay Gundogan, but it was not meant to be and Liverpool celebrated halting City's impressive run.
Despite the defeat, City – who have not won at Anfield in the Premier League since 2003 – remain strong favourites for the title with their advantage at the summit remaining at 15 points, although United could cut that to 12 with victory over Stoke City at Old Trafford on Monday.
5 – Jurgen Klopp has beaten Pep Guardiola on five different occasions in all competitions; more than any other manager. Flattened. pic.twitter.com/IA5UVmza7Z— OptaJoe (@OptaJoe) January 14, 2018
Manchester City's Premier League unbeaten run
Brighton (A) 2-0: Aguero 70, Dunk (own goal) 75
Everton (A) 1-1: Sterling 82
Bournemouth (A) 2-1: Jesus 21, Sterling 90+7
Liverpool (H) 5-0: Aguero 24, Jesus 45+6, 53, Sane 77, 90+1Watford (A) 6-0: Aguero 27, 31, 81, Jesus 37, Otamendi 63, Sterling pen 89Crystal Palace (H) 5-0: Sane 44, Sterling 51, 59, Aguero 79, Delph 89Chelsea (A) 1-0: De Bruyne 67
Stoke City (H) 7-2: Jesus 17, 55, Sterling 19, David Silva 27, Fernandinho 60, Sane 62, Bernardo Silva 79Burnley (H) 3-0: Aguero pen 30, Otamendi 73, Sane 75West Brom (A) 3-2: Sane 10, Fernandinho 15, Sterling 64Arsenal (H) 3-1: De Bruyne 19, Aguero pen 50, Jesus 74Leicester (A) 2-0: Jesus 45, De Bruyne 49
Huddersfield (A) 2-1: Aguero pen 47, Sterling 84
Southampton (H) 2-1: De Bruyne 47, Sterling 90+6
West Ham (H) 2-1: Otamendi 57, David Silva 83
Manchester United (A) 2-1: David Silva 43, Otamendi 54Swansea City (A) 4-0: David Silva 27, 52, De Bruyne 34, Aguero 85Tottenham (H) 4-1: Gundogan 14, De Bruyne 70, Sterling 80, 90Bournemouth (H) 4-0: Aguero 27, 79, Sterling 53, Danilo 85Newcastle (A) 1-0: Sterling 31
Crystal Palace (A) 0-0:
Watford (H) 3-1: Sterling 1, Kabasele (own goal) 13, Aguero 63