The Warriors were missing a host of players to international duty but almost stole the win after Rory Clegg's late drop goal.
Clegg was one of the standout performers in Townsend's side and kicked all 21 points on the night.
But tries from Dave O'Callaghan and BJ Botha and a late Ian Keatley penalty saw Munster over the line.
However, despite the defeat, Townsend admits he is proud of his team's efforts.
"There were a number of positives to take from tonight. It was a game we can learn so much from," he said. "We have so much character in this group and the players are disappointed not to win.
"We had a lot of good moments in attack, but we've got to keep working to improve our accuracy when we have the opposition on the back foot.
"I thought our defence was outstanding at times, both in our recognition of what Munster were doing in attack, as well as the effort in the tackle area.
"Rory Clegg kicked all our points and I thought he played really well and his drop-goal was fantastic too. It was the right set-up and really good execution from him.
"To have someone of his quality has really helped us during this Rugby World Cup period.
"It'll be great learning for them. No-one ever gets to play the perfect game and you learn by making mistakes, seeing what works and seeing what the opposition are doing."
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