Tipperary are out of the All-Ireland senior hurling championship.
Liam Sheedy’s side were beaten by The Déise on a full-time score of 4-28 to 2-27 in Pairc Ui Chaoimh.
Tipp captain Seamus Callanan two goals early in the first half meant The Premier were just a point behind at half-time.
Waterford were awarded a second half penalty which Stephen Bennett converted, putting his side up by seven points before the second half water break.
However, Tipperary battled back and had the chance to level the scores in injury time but John McGrath’s effort on goal was pushed over the bar by Waterford goalkeeper Shaun O’Brien.
Waterford went down the other end of the field and substitute Neil Montgomery struck the ball low past Barry Hogan to end Tipperary’s fightback.
Waterford now progress to the All-Ireland semi-final.