Match ends, Everton 3, Watford 2.
Everton held on to earn their first win under caretaker boss David Unsworth as Watford threw away a two-goal lead and Tom Cleverley missed an injury-time penalty for the visitors.
In a remarkable second half which lasted 58 minutes, Cleverley had the chance to snatch a point but put his weak spot-kick wide, handing Everton a first victory in five games.
The Hornets had taken a healthy lead thanks to goals from Richarlison and Christian Kabasele.
But they lost first-choice keeper Heurelho Gomes, who was taken off with a nasty head gash shortly before Kabasele's goal, and it proved to be the turning point.
Gomes' replacement Orestis Karnezis, on his Watford debut, was at fault for Everton's first when he came rushing out and Oumar Niasse darted past him and bundled the ball home.
From the Toffees' first corner of the game, Dominic Calvert-Lewin headed home to equalise, and Leighton Baines scored the winner from the spot after Jose Holebas brought down Aaron Lennon.
There was 12 minutes of injury time after the stoppage for Gomes plus treatment for a Kabasele back problem, and Watford thought they had rescued a draw when Everton keeper Jordan Pickford brought down Richarlison, but it was not to be for Cleverley.
Unsworth gets off the mark
Unsworth has endured a torrid fortnight in caretaker charge of the senior team at Everton, with three defeats and two cup exits since stepping up from his job as under-23 coach.
His chances of the full-time job seemed to have evaporated after Thursday's 3-0 defeat in the Europa League by Lyon, and although Sunday's result may not make a difference to his future, it has stopped the rot for the Toffees and helped them climb out of the bottom three.
"Whatever will be will be," said Unsworth after the match. "I have been the proudest man in the world to take charge for the last two weeks and no-one can take that away from me.
"I know nothing about it. I'm sure I'll speak to the chairman and owner and I'll keep giving my best for this wonderful club."
Who will take charge of Everton now?
If Unsworth has not done enough to earn the Everton job, then who else is a candidate?
Sam Allardyce had been strongly linked with a return to management with the Toffees, but speaking during his stint as a pundit on Match of the Day on Saturday, the former England, West Ham and Crystal Palace boss said: "You never know, but I don't think so really."
David Moyes has said he would be open to a return to Goodison Park, having spent 11 years in charge before leaving for Manchester United in 2013. However, the 54-year-old Scot has also been linked with West Ham, where Slaven Bilic's future is in doubt.
Sean Dyche had also been linked with the Toffees job, but the Burnley boss said two weeks ago that he had not been approached.
Everton may well make their mind up during the two-week international break that has now started.
Watford capitulate as their dip in form continues
Watford failed to register a shot on target in a drab first half but they came out invigorated after the break.
Only 30 seconds after the restart, Toffees defender Michael Keane was dispossessed and Andre Gray set up Richarlison, who slotted home at the near post.
Although Gomes' injury seemed serious, it looked as though Watford had not been affected by his loss as Kabasele netted their second with a powerful header from Holebas' corner.
But then they capitulated. Greece international Karnezis, who has only played four times this season, all for his country, was definitely at fault for the first goal, and should have done better for the second.
And there is no doubt Cleverley's last-gasp penalty was wasted, as he scuffed wide against his former club, meaning Watford fell to a third consecutive league defeat.
"We were comfortable at 2-0. I didn't remember a period of 10 minutes when they had big pressure," said manager Marco Silva.
"The details made the difference. We made one mistake and they began to believe. Our player slipped for the penalty, and that's very unlucky."
Man of the match - Leighton Baines
Everton's comeback - the stats
- Everton came from two goals down to win at home in the Premier League for only the second time ever and for the first time since May 1994 against Wimbledon.
- Watford have lost each of their last three Premier League games, after losing just one of their previous eight under Marco Silva this season.
- Richarlison has been directly involved in six goals in the Premier League this season (four goals, two assists), more than any other Watford player.
- Oumar Niasse has netted four goals in his four Premier League appearances at Goodison Park for Everton this season.
- Dominic Calvert-Lewin has had a hand in more goals in all competitions this term than any other Everton player (five goals, two assists).
- Leighton Baines has netted 19 Premier League penalties, the 10th biggest spot-kick haul of any player in the competition's history.
After the international break, Everton travel to Crystal Palace on Saturday, 18 November (15:00 GMT) while Watford host West Ham the following day (16:00 GMT).
- 54BaningimeSubstituted forLookmanat 55'minutes
- 18G SigurdssonSubstituted forLennonat 85'minutes
- 10RooneySubstituted forCalvert-Lewinat 67'minutes
- 1GomesSubstituted forKarnezisat 59'minutes
- 27KabaseleSubstituted forMariappaat 79'minutes
- 3BritosBooked at 69mins
- 25HolebasBooked at 90mins
- 19HughesSubstituted forOkakaat 90+4'minutes
- Graham Scott
- Shots on Target
Second Half ends, Everton 3, Watford 2.
Corner, Everton. Conceded by José Holebas.
Attempt blocked. Oumar Niasse (Everton) right footed shot from the right side of the box is blocked. Assisted by Jordan Pickford.
Adrian Mariappa (Watford) wins a free kick in the defensive half.
Foul by Dominic Calvert-Lewin (Everton).
Foul by Abdoulaye Doucouré (Watford).
Dominic Calvert-Lewin (Everton) wins a free kick in the attacking half.
Penalty missed! Bad penalty by Tom Cleverley (Watford) right footed shot misses to the left. Tom Cleverley should be disappointed.
Penalty Watford. Richarlison draws a foul in the penalty area.
Penalty conceded by Jordan Pickford (Everton) after a foul in the penalty area.
Miguel Britos (Watford) wins a free kick in the defensive half.
Foul by Aaron Lennon (Everton).
Substitution, Watford. Stefano Okaka replaces Will Hughes.
Goal! Everton 3, Watford 2. Leighton Baines (Everton) converts the penalty with a left footed shot to the bottom left corner.
Delay over. They are ready to continue.
José Holebas (Watford) is shown the yellow card for a bad foul.
Delay in match José Holebas (Watford) because of an injury.
Penalty conceded by José Holebas (Watford) after a foul in the penalty area.
Penalty Everton. Aaron Lennon draws a foul in the penalty area.