Arne Slot said Liverpool passed the hardest test of his time in charge as a 2-1 win over Chelsea at Anfield moved the Reds back top of the Premier League on Sunday.
Mohamed Salah's penalty and Curtis Jones' winner made it 10 wins in 11 games since Slot succeeded Jurgen Klopp.
Nicolas Jackson briefly levelled for Chelsea, who enjoyed nearly 60 percent possession, but they slipped to a first league defeat since losing to Manchester City on the opening weekend of the season.
Victory takes Liverpool one point ahead of City and four clear of Arsenal, who they face at the Emirates next weekend.
"Many other games were hard but this might have been the hardest because of the amount of quality players they have and the structure they have," said Slot. "We had to fight really hard to get this one over the line."
Chelsea are now seven points off the top down in sixth, but there was plenty cause for optimism for the Blues from a performance that stretched Liverpool to their limits.
"We lost, we are not happy, but the performance with and without the ball was very good," said Chelsea boss Enzo Maresca.
"I've been in this stadium many times and to see Liverpool in their (half) for a long time is not easy."
Liverpool's only defeat under Slot came to Nottingham Forest following September's international break.
The Dutchman responded by this time leaving all of his South American internationals -- Alexis Mac Allister, Luis Diaz and Darwin Nunez -- on the bench after their exertions in recent days across the Atlantic.
The decision to hand Jones just his second league start of the season proved an inspired one as the England international won Liverpool's penalty and scored the decisive goal.
Chelsea settled nicely into their rhythm and pushed the home side back by dominating the ball in the opening half hour.
However, Liverpool's pace on the break was a constant threat and Chelsea were caught out when Salah fed Jones, who was chopped down by Levi Colwill.
Salah slammed home his 10th goal against his former club from the resulting penalty.
Moments later, Cody Gakpo slotted in at the end of a lightning Liverpool counter-attack, but Salah had strayed offside before delivering the assist.
At the other end, Jackson smashed off the angle of post and bar in the first sign that Chelsea had some punch to their possession football.
Chelsea, though, had another escape just before half-time when referee John Brooks intially pointed to the spot once more when Jones went down under a challenge from Robert Sanchez.
VAR intervened, however, as the Spanish goalkeeper got a touch on the ball before making contact with Jones.
Within three minutes of the restart for the second half, the Blues were back level as VAR played another helping hand for the visitors.
Jackson latched onto Moises Caicedo's through ball and coolly slotted past Caoimhin Kelleher for his fifth goal in eight Premier League games.
The Senegalese striker was ruled offside on the field, but was shown to be played on by Ibrahima Konate on replay.
Liverpool took just three minutes to restore their lead as Jones timed his run perfectly to control and flick in Salah's cross.
Chelsea forced Slot's men to defend their lead for the final 40 minutes but struggled to create clear-cut chances for the equaliser until seven minutes of stoppage time.
Renato Vega headed over Cole Palmer's free-kick before Christopher Nkunku failed to get a telling touch to Pedro Neto's teasing cross.
