Goals from Jaidon Anthony and Josh Brownhill were enough to extend the Clarets’ unbeaten run to nine games ahead of their huge Boxing Day encounter against league leaders Sheffield United.
Watford, who were distinctly second best throughout, ensured a nervy finished when they pulled a goal back late on, but Scott Parker’s men held on for the three points.
Elsewhere at the top end of the division, top two Sheffield United and Leeds United were both victorious, while Sunderland came from behind again to beat Norwich City.
Play-off chasing Blackburn Rovers and Middlesbrough, meanwhile, both dropped points.
Following the weekend’s action, The Football League Paper has collated its Team of the Week, featuring the best performers – here’s the team in full:
5. Dennis Cirkin (Sunderland)
The full-back created Sunderland's winning goal as the Black Cats came from behind to beat Norwich City 2-1. Photo: Stu Forster
6. Freddie Potts (Portsmouth)
The West Ham loanee produced an assist for one of Callum Lang's four goals as Portsmouth breezed past Coventry City 4-1. Photo: Richard Martin-Roberts
7. Josh Brownhill (Burnley)
The Clarets skipper continued his fine form with a goal and an assist during Burnley's 2-1 win over Watford. Photo: Molly Darlington
8. Brenden Aaronson (Leeds United)
The American bagged a goal and an assist as Leeds claimed a comfortable 4-0 win against Oxford United. Photo: George Wood