The game tipped from one side to the other in what was an exciting exchange played at a frantic pace but too little quality where it mattered.
Watford's Neal Ardley opened the scoring after eight minutes and provided most of the quality on view with an inspired performance.
But Watford, despite their good start, looked short on confidence once they had gifted Sunderland an equaliser after 21 minutes.
Seasoned defender Neil Cox hit a sloppy free-kick straight at Carl Robinson who accepted the gift and slipped the ball through to Stephen Elliott to score.
Watford promptly fell away, losing the rhythm of what had been a bright start and keeper Richard Lee had to pull of saves to deny Marcus Stewart and Julio Arca.
By the end of the half Sunderland, who had looked outplayed in the first 20 minutes, had made a stirring comeback and looked the side most likely to score.
Watford bounced back and Heidar Helguson dispossessed a hesitant defender to set up Danny Webber but the striker, who has not scored in five games, screwed his final shot wide.
Lee fielded a fierce effort form Dean Whitehead and another from Arca and at the other end Gavin Mahon and Jermaine Darlington failed to find the target.
Watford finished the stronger with Cox heading just wide and then Webber worked himself and opening to slot home only for Mart Poom to throw himself to his left and deflect the ball just round the post.