Watson remained the primary starting tight end for the Patriots in 2007, but saw a decrease in receptions and yards due to the departure of Daniel Graham which ultimately affected the Patriots' use of two-tight end sets. On October 7, 2007, Watson caught six passes for a season-high 107 receiving yards and two touchdowns during a 34–17 win against the Cleveland Browns in Week 5. This became Watson's first multi-touchdown performance and first game with over 100 receiving yards. Watson sustained an ankle injury and was inactive for two games (Weeks 7–8). During his absence he was replaced by Kyle Brady. Watson was active for another two games (Weeks 15–16) after aggravating his sprained ankle. Watson finished the 2007 season with 38 receptions for 389 receiving yards and a career-high six touchdown receptions. The Patriots finished atop the AFC with a 16–0 record. On January 12, 2008, Watson caught two passes for 12-yards and two touchdowns in the Patriots' 31–20 win against Jacksonville Jaguars in the AFC Divisional Round. They reached the Super Bowl after defeating the San Diego Chargers 21–12 in the AFC Championship Game. On February 2, 2008, Watson started in Super Bowl XLII, but was held without a reception as the Patriots lost 17–14 to the New York Giants.