A native of Toronto, Watson began performing with a local theater group as a teenager. She received a Genie nomination for Best Supporting Actress for one of her first movie roles. Just a year later, she took home the Best Actress award at the Yorkton Film Festival for the short film "Exposure". Watson then headed to the United States, where she studied with Gene Lasko, made several films and a TV movie.
Watson died on March 21, 2015 due to complications from cancer at Kensington Hospice in Toronto; she was 60 years old.