Watson was capped 12 times at senior level for England. His first cap came on 10 June 1984 in a 2–0 friendly win over Brazil. By the time of his transfer from Norwich to Everton two years later, he had been capped six times for England. He won a further six England caps, bringing his tally to 12 by the time he made his final England appearance on 18 June 1988 in England's 3–1 European Championship defeat by the Soviet Union in 1988.