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:
9. Callum Lang (Portsmouth)
Lang scored all four of Portsmouth's goals as they came from behind to breeze past Frank Lampard's Coventry 4-1. Photo: Dan Istitene
10. Manor Solomon (Leeds United)
The winger bagged a goal and an assist during Leeds' resounding 4-0 win against Oxford United. Photo: George Wood
11. Kieffer Moore (Sheffield United)
The experienced striker scored an impressive goal as the Blades beat Cardiff City 2-0 to remain top of the Championship at Christmas. Photo: Dan Istitene