Dele Alli opened the scoring after just 16-minutes and Harry Kane doubled their lead three minutes into the second half.
The result puts Spurs in touching distance of third-placed Liverpool and still with a game in hand on the Reds.
With only three games remaining the victory puts the Lilywhites in a great position to clinch a top-four spot.
Alli continues fine form
Dele Alli has continued his rich vein of goalscoring form after his goal brought his tally up to double figures in the Premier League.
After receiving a lot of criticism over the course of the 2017/18 campaign Alli finally seems to be letting his football do the talking.
After his most challenging season to date, Alli seems to have matured a great deal having weathered the storm of criticism.
The opening goal came through a mistake form Watford goalkeeper Orestis Karnezis who fumbled Kieran Trippier's cross allowing Alli to tap the ball home.
It was a case of Alli finding himself in the right place at the right time but he kept his cool to calmly slot the ball beyond the defenders on the line.
Lloris saves Spurs
Hugo Lloris has made two errors leading to goals in his previous three Premier League games before the Hornets visit.
However, the French captain certainly redeemed himself in keeping Spurs' first-half lead alive.
Quickly after taking the lead, Spurs came under a wave of Watford pressure but their captain came to their rescue.
Lloris made a superb save as Andre Gray bared down on goal. The 31-year-old got down quickly to deny Gray his first goal since January.
Moments later, Richarlison's driven shot was palmed away but the best of the saves came against Abdoulaye Doucouré.
Doucouré was played through with only Lloris to beat but the sweeper keeper raced out of his area to get to the ball first despite being 30-yards away from his goal.
Another established Spurs player who has received a lot of criticism in recent weeks who has bounced back to play a huge part in an important victory.
Kane getting back to his best
Harry Kane is another Spurs player who has found himself on the end of a lot of criticism in the past month.
The English talisman returned from an ankle ligament injury in April but has never looked sharp since making his comeback.
However, in the 2-0 victory over Watford Kane netted his 27th league goal of the campaign and should have added at least one more.
Kane had one goal ruled out for offside and later wasted a golden chance after Jan Vertonghen's header rebounded off the post and fell straight at the feet of Kane.
But the 24-year-old was unable to sort his feet out in time and the ball bounced through his legs to the dismay of the goal-hungry striker.
Despite only coming away with one goal, it was certainly a step in the right direction for Kane who needs to find his form in time for the World Cup.