Terry Morgan, a recently retired publican from Cockwood in Devon, set his alarm to drinking up time, 22:55.
He said he scoured his home before realising the timepiece had been swallowed by Charlie the dog.
Charlie was taken to the vet but "coughed" the watch up before an operation became necessary.
"At first I thought he was lying on it," said Mr Morgan.
"Only when I rolled him over did I realise it was inside him.
"The watch was always set to go off at ten-fifty-five to remind me to call last orders.
"Luckily, I'd never bothered to change it."
Mr Morgan said a surgical operation to retrieve the timepiece would have cost £1,000.
The episode still cost Mr Morgan £200 because vets had to X-ray Charlie to make sure the animal had not swallowed anything else.
"I've also had to put up with the endless 'Time' jokes from the regulars," said Mr Morgan.
A spokesman for the St David's Veterinary Group in Exeter said: "It was the talk of the surgery. We had a real laugh about it."
A dog owner discovered his pet Newfoundland had swallowed a £500 watch when the alarm went off inside the animal.