Denny Medley-USA TODAY Sports

Jamaal Charles fumbled away the Kansas City Chiefs' chances of beating the Denver Broncos Thursday night, but one thing that stood out was the impressive play from the Kansas City defense.

While it's true Denver scored 31 points in a hostile environment at Arrowhead Stadium, very little of this was the fault of the defense. Seven points came from Charles' fumble in the final minute that was returned for a touchdown by Bradley Roby. Another touchdown from the first half came after an Alex Smith interception on his own 15-yard line. Even the field goal allowed only came after a 22-yard drive.

In the end, the Chiefs defense only allowed two extended drives, both of which traveled 80 yards on 10 plays. Although the game-tying touchdown with 36 seconds left was a disappointment, you would normally accept just two negative drives all game against Peyton Manning and the Broncos offense.

Denver was held in check for most of the night thanks to an excellent performance by all levels of the Chiefs defense.

After C.J. Anderson ran wild against this unit last season (168 rushing yards on 32 carries), the front seven stepped up and shut down the rushing attack on Thursday. Anderson and Ronnie Hillman struggled to find any running room, and the Broncos were held to an average of just 2.8 yards on 22 carries.

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"I'll tell you, their defense is so much better than last year," Manning said after the game, via Dave Skretta of the Associated Press. "They're so stout against the run. They just make it hard all night. We just kept plugging."

This strong play forced head coach Gary Kubiak to rely more on the pass than originally intended, but this wasn't too much easier. The big men once again set the tone with an excellent pass rush that continued throughout the game.

Kansas City finished with seven quarterback hits and three sacks, including two by Justin Houston. Last year's NFL sack leader was a force all game long and remains one of the most consistent defensive players in the league, via ESPN's Field Yates:

Whether he was able to bring down the quarterback or simply hurry a bad throw, Houston make a huge impact on seemingly every play.

Of course, the real star of the game was rookie cornerback Marcus Peters. The first-round draft pick came through with an interception returned 55 yards for a touchdown, but this was only the tip of the iceberg in this game. Peters was all over the field, covering both Demaryius Thomas and Emmanuel Sanders and consistently taking them out of plays. When he was targeted, he came through with an impressive four passes defended and the interception.

Brian Billick of NFL Network had high praise for the former Washington star:

When you have a defensive line that can stop the run, linebackers who can rush the passer and cornerbacks who can make these types of plays on the ball, you have a recipe for an elite defense.

As Bleacher Report's Ty Schalter noted, it should only get better from here on out:

Eric Berry made his first start since being diagnosed with Hodgkin's lymphoma and received a loud, well-deserved ovation upon his return. Sean Smith should return from his three-game suspension in Week 4. While these are two very different situations, the fact remains Kansas City can expect an even better secondary later in the year.

If this defense can play to its ability, there is no question the Chiefs should be headed to the playoffs. They just need the offense to stay out of the way.

Turnovers were the big story from the Week 2 loss, and that undermined the effort of the defense. Kansas City coughed it up a total of five times in the loss, effectively handing Denver the win.

On the plus side, this isn't something that should be a major concern going forward. The Chiefs gave the ball away just 17 times last season, with only the New England Patriots, Green Bay Packers and Seattle Seahawks faring better in this category. Based on last year's results, this is pretty good company.

Alex Smith has his faults, but he is usually good at taking care of the football, finishing top three in the league in interception percentage in each of the past two seasons. Meanwhile, Charles has averaged fewer than two lost fumbles a season throughout his seven-year career. It's tough to imagine this two-fumble game becoming a trend.

With this in mind, the Chiefs have to be hopeful despite what was clearly a disappointing loss. The defense did its job and has the talent to keep it up throughout the year.

The only question now is whether the squad can turn these close losses into wins going forward.

Follow Rob Goldberg on Twitter for more year-round sports analysis.