The former Borussia Dortmund manager was seen along with wife Ulla and a mystery group of people.
Klopp himself has one child, Marc, who didn't appear to be on the trip.
His wife's son is seen on the yacht as is a mystery topless blonde – presumably the stepson's girlfriend.
The couple jumped off the top of the yacht and into the sea to much amusement of the rest of the part.
Other members of the party also had fun on speedboats and in the water on water skis.
They spent the day at the Formentera beach on Thursday, lounging in the sun.
Formentera, a half an hour ferry from Ibiza, is the smallest of the Balearic islands with a population of around 10,000.
The manager could be seen laughing and joking with his wife as she water-skied.
Ulla Klopp, nee Sandrock, has been married to Jurgen since December 2005 – the pair met when she was working in a bar at the Munich Oktoberfest.
She was previously a teacher but is now a children's novelist.
Liverpool reached two finals but lost both, including the Europa League to Sevilla which would have resulted in the Reds qualifying for the Champions League.
Klopp is linked to a number of targets this summer as he seeks to upgrade a squad weak at the back and missing pace on the wings.
Bayern Munich winger Mario Gotze, Borussia Dortmund defender Neven Subotic and Udinese midfielder Piotr Zielinski have all been linked in recent weeks.
