Preston substitute Neil Mellor fired home from close range just two minutes after coming on to grab a crucial three points for his struggling side. Mellor hit his first shot straight at Watford 'keeper Richard Lee, only for the ball to rebound straight back to him and allow him to make amends.
Preston's Andy Lonergan had kept his side in the match with a fingertip save from Darius Henderson's shot.
Watford sub John-Joe O'Toole shot narrowly wide right at the death.
Preston boss Alan Irvine:
"Neill Mellor was a substitution inspired by cramp so I can't take too much credit. "Thankfully Neil was in the right place but he is a predator and someone who has a good goalscoring record.
"Right throughout the team everyone performed really well against very difficult opposition."
Watford manager Adrian Boothroyd:
"We're chugging along chasing that big jackpot again of promotion. "And if we can maintain our away form and improve our home form then we will be in good shape.
"I am not bringing anybody in at the moment. I'm trying for a couple but so is everyone. There will not be wholesale changes."
Preston: Lonergan, St. Ledger, Mawene, Chilvers, Davidson, Whaley, Chaplow (Carter 75), McKenna, Lewis Neal, Brown (Mellor 73), Hawley.
Subs Not Used: Chris Neal, Sedgwick, Ormerod.
Booked: Whaley, Davidson.
Goals: Mellor 75.
Watford: Lee, Doyley, Jackson (Mariappa 79), DeMerit, Stewart, Smith, Williamson, Francis (O'Toole 76), McAnuff, King, Darius Henderson.
Subs Not Used: Poom, Priskin, Ellington.
Booked: Jackson.
Att: 12,347
Ref: Scott Mathieson (Cheshire).
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