After his loan spell at Walsall came to an end, Baird made his first Southampton appearance of the 2003–04 season, in a 3–1 win over local rivals Portsmouth on 21 December 2003. With his first team opportunities limited, Baird joined Watford on a month loan. Baird made his Watford debut on 20 March 2004, in a 4–1 loss against Ipswich Town. On 16 April 2004, Baird's loan spell at Watford extended until the end of the season. After making eight appearances for Watford, Baird returned to his parent club and played the last game of the season. Baird made only four league appearances for Southampton.