A goal from Ashley Young on 54 minutes gave Watford the points as Blues struggled to breakthrough a well organised Hornets defence.
The visitors struck after Marlon King's header had come back off the bar following a magnificent save by Shane Supple, Young heading the ball into the empty net.
Supple stepped in for his third League appearance after Lewis Price pulled out of the game in the warm-up, struggling with a virus.
The Welsh U21 international took his place on the bench and his deputy was soon in the action, handling the ball as he slid out of his area. Jay Demerit headed over from the free-kick.
Adam Proudlock fired over the bar at the near post, while Supple saved well from Clarke Carlisle's header following an Ashley Young free-kick.
Darius Henderson then headed over the bar from close range, failing to test Supple after exchanging passes with Marlon King.
Darren Currie came closest to breaking the deadlock in the first-half, twisting away from three defenders before firing across goal and a yard wide of the far post with Proudlock inches away from diverting the ball in.
Matt Richards failed to connect with Jim Magilton's delicate cross on 26 minutes, then Nicky Forster was beaten to the ball by Demerit as he challenged for a Sito cross.
Matthew Spring was booked by referee Andy D'Urso for a mistimed tackle on Jimmy Juan, the French midfielder making his first League start for Blues. Carlisle soon followed into D'Urso's book for a crude challenge on Magilton.
Proudlock diverted Magilton's cross wide at the near post under a challenge from Carlisle, while at the other end Supple saved well from Young.
Richard Naylor became the third player to pick up a caution for a foul on Young just before the break.
Richards rounded off a neat passing move early in the second-half with a powerful shot that cleared Watford 'keeper Ben Foster's bar.
Foster was tested seconds later though, coming of his line to save well from Proudlock before the visitors took the lead, Supple doing brilliantly to push King's header on to the bar from Paul Devlin's cross only to see Young head in the rebound.
Joe Royle responded by replacing Magilton and Proudlock with Dean Bowditch and Sam Parkin.
It needed a great save from Supple to keep Watford at bay on the hour, diving low to keep out a Henderson header.
McEveley blocked Devlin's shot before Demerit had the ball in the net from a Young free-kick only for referee D'Urso to award a free-kick against the American, Gavin Mahon then shooting over from 18 yards as Watford looked the more likely to add to the scoring.
James Chambers and Lloyd Doyley were added to the official's notebook as Town rallied, Bowditch going down in the box but no penalty awarded.
Foster had to save from Carlisle's backward header as Blues pressed forward in the closing stages but to no avail.
Town: Supple, Sito, De Vos, Naylor, McEveley, Magilton (Parkin 57), Juan, Richards, Currie, Forster, Proudlock (Bowditch 57). Subs not used: Price, Wilnis, McDonald. Booked: Naylor.

















