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Dan McKellar says the Waratahs were physically outplayed in a loss that leaves their finals hopes in doubt.

NSW Waratahs coach Dan McKellar has criticised his side's physicality after a 20-17 Super Rugby Pacific loss to the Western Force, warning their finals hopes are now under pressure.

McKellar said his team were "bullied at the breakdown" and unable to gain control, with the Waratahs forced into a heavy defensive workload at Allianz Stadium. They made close to 300 tackles, limiting opportunities for attacking threats such as Max Jorgensen and Joseph-Aukuso Suaalii.

The coach described the performance as one where his side were "squeezed" out of the contest, struggling to exit their own end and losing key battles around the ruck in both attack and defence. He added that the Force's direct approach proved effective, while the Waratahs failed to respond until they trailed by 10 points.

Suaalii, returning from an eight-week hamstring injury lay-off, had limited impact. McKellar pointed to the broader issue of territory and possession, noting that with only 32 per cent of field position, the team spent most of the match defending rather than creating attacking chances.

The defeat leaves the Waratahs in eighth place and facing a difficult run home. They are likely to need at least three wins from their final four matches, three of which are away from Sydney, to remain in contention for the top-six finals.

Despite the setback, McKellar maintained belief in the squad's potential, citing earlier performances as evidence they can compete with leading teams. However, he acknowledged inconsistency remains a major concern, with the gap between their best and worst performances proving costly.