Scott Parker’s side dominated proceedings from start to finish and arguably ought to have made life more comfortable for themselves.
Goals from Jaidon Anthony and Josh Brownhill gave the Clarets a two-goal lead, before a Kwadwo Baah strike set up a nervy finish.
But the hosts held on for the three points to set up a tasty Boxing Day clash with league leaders Sheffield United.
Here’s how Burnley’s players rated:
1. James Trafford - 7/10
Didn’t have a great deal to do but pulled off a big save in a big moment in the second-half. Had no chance with the Watford goal, but was crucial to playing through the press. Photo: Kelvin Lister-Stuttard Photo: Kelvin Lister-Stuttard
2. Connor Roberts - 7/10
Back in the side after illness and got forward well, always looking to support Anthony. Looked to pick up a knock late on. Photo: Gareth Copley
3. CJ Egan-Riley - 8/10
Make a couple of important blocks at crucial moments in the games, while his crossfield balls caused Watford problems. Photo: Ben Roberts Photo
4. Maxime Esteve - 7/10
Ruled fit after being a fitness doubt and looked to suffer no ill effects. A solid and confident display. Photo: Ben Roberts Photo