Watson was nearly dealt along with Oscar Gamble and Mike Morgan from the Yankees to the Texas Rangers for Al Oliver prior to the 1982 regular season, but the transaction was squashed by Gamble whose contract had a list of eight teams to which he can be traded which did not include the Rangers. He was subsequently traded to the Atlanta Braves for Scott Patterson on April 23, 1982. Watson helped propel the Braves to the 1982 National League West title. In 1983, Watson hit .309 mostly as a pinch hitter. He retired after the 1984 season.