Liverpool were looking to break the record for most straight top-flight wins, but Ismaila Sarr’s second-half double and Troy Deeney’s late goal condemned the runaway league leaders to their first league defeat of the season.
Speaking to the media after the game, Klopp said Liverpool must accept that their unbeaten Premier League run is over and insists the Hornets deserved to win.
"They did exactly what they wanted to do, we did not. That's how football works," the former Dortmund boss said.
"The first half was a tough one, a lot of second balls, running here and there, we had the ball a lot but we didn't come in the right positions to cross, the right positions to finish, against a really good, organised side, with a top set-up for this game.”
"You have to accept it, it's not so easy, but it's the proof we were not good enough. It's always very difficult. We have to accept if after.”
“In the game you have to fight. We were 3-0 down but we still tried, there were no silly situations where somebody got frustrated and tried to kick someone.”
"If you win good, if you lose, try to do it in the right manner and do it like a man."
Despite the defeat against Watford, the Reds are still 22 points clear at the top of the Premier League table.