Billy Davies' men earned their third win in as many games in 2013-14 by taking a 3-0 victory against Bolton, who saw Darren Pratley dismissed for a second bookable offence.
Jamie Mackie opened the scoring at the City Ground after just two minutes, and second-half strikes from Andy Reid and Henri Lansbury sealed the points for Forest.
Adam Le Fondre's early strike and a brace from Jem Karacan had put the hosts in a comfortable position going into the final 15 minutes, despite Marco Faraoni's second-half goal for Watford.
But a Diego Fabbrini-won penalty, converted by Troy Deeney, and a 90th-minute goal from the man himself helped Gianfranco Zola's men steal a draw.
Watford are joined on seven points by Blackpool, Burnley and Queens Park Rangers after Saturday's action ensured they would lock out the top five places.
Local rivals Derby County and Leicester City were arguably involved in Saturday's headline clash, though an own-goal from goalkeeper Lee Grant proved the only difference between the sides as Derby slipped to a 1-0 defeat.
And in the day's earlier game, Leeds United came from behind to grab a 1-1 draw at home to Yorkshire rivals Sheffield Wednesday.
