Leading 2 - 1 at half time City committed hari kari when Lewy Nyatanga was sent off leaving his team mates to defend their single goal lead under mounting Watford pressure.
They lasted until the final seconds when Eustace struck.
Earlier City went a goal up through Danny Haynes before Tom Cleverley levelled 2 mins before the break. City regained the advantage on the stroke of half time through Paul Hartley's super free kick.
Nyatanga's second yellow for a rash challenge on Lansbury saw the Watford player stretchered off and Nyatanga sent off.
Watford have a break from League action now and face a trip to Chelsea on the weekend in the FA Cup. No problem!!