Following this Watson took part in further fighting around Cawnpore and then the Relief of Lucknow. After this he returned to England briefly on convalescence leave before returning to India. In 1858, Watson raised the 4th Sikh Irregular Cavalry which later became the 6th Duke of Connaught's Own Lancers (Watson's Horse). He later took part in the Umbeyla Expedition (1863) and commanded the Central India Horse, 1871. He became Resident at Gwalior, 1877; Officiating Adjutant-General in Central India, 1871; commanded the Cavalry despatched from Bombay to Malta, 1878; and then commanded the Kurram Field Force (Punjab chief's contingent) in the Second Anglo-Afghan War (1879–80). In 1891 he was promoted to the rank of general.