The Blues took the lead through Olivier Giroud in the first half but they were pegged back when Sadio Mane equalised to force extra-time.
The Reds then went ahead through Mane in extra-time, but Jorginho’s penalty forced the game to penalties after a 2-2 draw.
Adrian ended up saving Tammy Abraham’s spot-kick as Liverpool FC triumphed to win their second trophy under Jurgen Klopp in Istanbul.
Chelsea FC produced some good football during the game, with Christian Pulisic and Pedro in particularly good form.
And former Chelsea FC midfielder Cole says that there were plenty of positives for the Blues despite the disappointment of the defeat.
Speaking to BT Sport during the coverage of the game, Cole said: “Chelsea were excellent tonight.
“Against Manchester United, I felt there was a bit of anxiety with the team, they wanted to play on the front foot and there was a lot of pressing they didn’t need to do.
“Tonight, they got into a low-to-medium block and there’s no space between the lines.
“The biggest difference is that they were winning it and breaking with Pulisic and Pedro in some great positions. There was no real space for Liverpool to play.”
The result leaves Frank Lampard looking for his first win as Chelsea FC boss after the Blues were beaten 4-0 by Manchester United in their Premier League opener last weekend.
The Blues will return to Premier League action on Sunday afternoon when they host Leicester City at Stamford Bridge in the top flight.
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