Watson entered training camp as the definitive starting tight end and was placed on the top of the Browns' depth chart by offensive coordinator Brad Childress, ahead of rookie Jordan Cameron and Alex Smith. In Week 11, Watson recorded four receptions for 47-yards and caught a season-high two touchdown passes in a 23–20 overtime loss at the Dallas Cowboys. Watson caught both touchdown passes from Browns' quarterback Brandon Weeden. On December 2, 2012, he caught six passes for a season-high 80 receiving yards during a 20–17 win at the Oakland Raiders in Week 13. In Week 17, he collected a season-high seven receptions for 64-yards as the Browns lost 24–10 at the Pittsburgh Steelers. He completed the 2012 season with 48 receptions for 501 receiving yards and three touchdowns in 16 games and 14 starts.