Liverpool's Champions League ambitions were ended after they lost on penalties to an outstanding Paris St-Germain side after a night of drama at Anfield.

PSG, needing to claw back a 1-0 deficit from the first leg at home, demonstrated how they have matured under coach Luis Enrique as they knocked out a Liverpool side touted as favourites to win the tournament.

Ousmane Dembele's early goal provided the platform for the turnaround, with Liverpool unable to break the French visitors down, while PSG were a constant threat.

PSG's victory over two legs was thoroughly deserved, with keeper Gianluigi Donnarumma emerging as their hero in the shootout, saving from Darwin Nunez and Curtis Jones before Desire Doue hammered home the winning spot-kick in front of joyous fans.

Liverpool made a lightning fast start in an attempt to extend that first-leg advantage, with Mohamed Salah twice coming close in front of the Kop, which was in expectant mood.

With Liverpool making the running, there was always the chance PSG's outstanding strikeforce could punish them on the counter and so it proved after only 12 minutes - with a large helping hand from the home defence.

Bradley Barcola's cross was routine, but a communication breakdown between Alisson and Ibrahima Konate proved costly, the defender knocking the ball out of the keeper's reach for Dembele to pounce from almost on the goal-line.

PSG had other opportunities but could not cash in, Alisson rushing out to save at the feet of Dembele and Khvicha Kvaratskhelia firing off target when well placed.

Liverpool mounted sustained pressure after the break but struggled to break down PSG's resilient rearguard, although it took a fine clawing save from Donnarumma to keep out Luis Diaz's header, while substitute Jarell Quansah struck the post and Dominik Szoboszlai had an effort ruled out for offside.

PSG were by far the better side in extra time, with Alisson making a magnificent save from Dembele before Liverpool's fate was sealed on penalties.

Liverpool players slumped to the turf in disappointment as the fates and fortunes of the Champions League were illustrated in this thrilling last-16 tie that provoked all the emotions on a classic European night at Anfield.

Arne Slot's side have barely broken stride as they topped the Champions League table and raced 15 points clear in the Premier League - but this is the biggest setback Liverpool and their Dutch coach have suffered this season.

Ironically, Liverpool played much better in defeat at Anfield then they did when winning in the Parc des Princes in the first leg, but that was no consolation as this time luck did not smile on them as they were denied by the woodwork and then on penalties, when Donnarumma's expertise came to the fore.

And most of all, they were frustrated by a top-class PSG side who are shaping up as potential Champions League winners.

Anfield provided its usual thunderous atmosphere but Liverpool could not quite deliver, looking leggy and second best in the added 30 minutes.

Liverpool will need to recover swiftly, with the Carabao Cup final against Newcastle United at Wembley on Sunday, but this was a defeat that will hurt deeply as they would have had Champions League expectations far beyond the last 16.

PSG's fearless approach in the usual cauldron of European night at Anfield demonstrates how the transition from the era of g superstars to a more considered approach is reaping its reward.

Luis Enrique's side could barely believe they lost the first leg in Paris after overpowering Liverpool until Harvey Elliott's late goal. There was no way they were going to dominate to such an extent here but they refused to take a backward step in search of the result that would take them through.

PSG eventually made their way through on penalties, but Liverpool followed Manchester City in feeling the growing power of side that is shaping up as a serious Champions League force.

The so-called "Bling Bling" era of Lionel Messi, Kylian Mbappe and Neymar is in the past, replaced by a younger, more cohesive team that will be a huge threat to anyone they face.

Dembele is finally fulfilling all his potential while the g of Georgia winger Kvaratskhelia gives PSG an added attacking dimension.

And in Donnarumma, they had a keeper who repeated his penalty shootout heroics of the Euro 2020 final for Italy against England at Wembley to send Liverpool out.

He had a mixed night, and was at fault for Elliott's goal in the first leg - but here he was the hero as PSG secured a landmark win.