The league leaders were twice in front but on both occasions were pegged back by Michail Antonio as Stuart Pearce’s side responded well to their manager’s criticism after the weekend defeat by Cardiff.
It means Forest have failed to win in six league games but the manner of their performance, in the face of some strong pressure from the home side, gives hope that they can end that run when Blackburn Rovers visit the City Ground on Saturday afternoon.
Assistant manager Steve Wigley spoke to the media afterwards and said: "We had to come from behind twice so we showed a lot of character.
"I thought we more than deserved a point. I thought Watford played very well as well but I thought in the last ten minutes, I felt that we were the team that was going to win the game."