The Kookaburras are ruing missed opportunities after Germany stormed back from two goals down to claim a 3-2 win in Berlin.
It was the home nation's first FIH Pro League meeting of the European campaign.
The match on Tuesday (Wednesday AEST) fell on a special occasion for Queensland defender Tim Howard, who made his 150th international appearance in green and gold, as the Kookaburras sought to atone for their 1-2 loss to England.
Australia came out with the intensity that had seen them win five from six matches on their European tour.
But a second-half resurgence from Germany flipped the script, with the hosts delivering a blistering third quarter to snatch the lead and hold on in the final minutes.
"It was a tough game out there today,'' Howard said after the match.
"I've played with and against a lot of the guys over here in Germany in their domestic competition and they're a really tough team.
"They made the most of their opportunities and they really pushed after what was probably a poor start.''
Despite the loss, Howard said his milestone reflected how much he loved the sport and the team.
"The past 150 games have been amazing,'' he said.
"I'm loving it a lot, I'm loving it more than I probably ever have, and I'm very grateful to still be playing.
"I love this team, I love playing international hockey, so I'll try and do it for as long as I can."
Kookaburras coach Mark Hager made four changes to the side that went down to England on Sunday night, including the return of prolific striker Blake Govers.
Within three minutes, Govers rocketed home the opener off his right foot, his 161st international goal and his seventh in four games of the European tour.
Drag-flick specialist Joel Rintala then scored with a thunderous strike to double Australia's lead midway through the first quarter.
Germany responded in the second quarter, striking back through Gonzalo Peillat.
Australia's Ash Thomas was suddenly the busier of the two keepers, while Howard marked his milestone with a crucial tackle on the halftime buzzer to preserve the Kookaburras' 2-1 lead.
However, the third quarter belonged to Germany.
They levelled early with a well-worked field goal, then struck again moments later off a penalty corner to take the lead for the first time.
Both sides fought hard in the fourth quarter as Australia pushed desperately for an equaliser. Despite a late surge and mounting pressure, the Kookaburras couldn't find a way to send the match to a shootout.
The Netherlands lead the standings on 35 points, with the Kookaburras second on 27 points, with Belgium third and Germany fourth.
