Former Watford strikers Darius Henderson and Danny Webber came back to haunt their former club as Sheffield United extended their unbeaten run to eight games with victory at Vicarage Road.
The Blades had been frustrated in the first half but took the lead soon after the break when Henderson headed into the path of Webber who finished well.
Henderson then heaped more woe on the Hornets when he produced a fine finish to double the visitors' lead.
Watford rarely threatened and their best chance fell to Jack Cork who headed over from close range.
Hornets manager Brendan Rogers made one change from the 4-0 defeat to Reading last time out with Grzegorz Rasiak replacing Tamas Priskin up front.
Kevin Blackwell made several changes from the FA Cup win over Leyton Orient with Paddy Kenny, Gary Naysmith, Brian Howard, Stephen Quinn and Webber all returning to the starting line-up.
The Blades started well and Webber had a shot blocked before Greg Halford's long-throw was met by Watford old-boy Henderson but his header was superbly tipped over by Roach.
Sheffield United were dominating in midfield but they almost went behind when a mix-up between Matthew Kilgallon and Chris Morgan allowed Rasiak to get in and he got to the byline before pulling the ball back for Cork who failed to connect with the shot.
That chance buoyed Watford and Gavin Hoyte crossed for Rasiak but his shot went wide.
With the break approaching both sides pressed for the lead and Smith's close-range effort was saved by Kenny, while at the other end, Halford's cross was met by Webber who fired over.
The visitors came flying out of the traps for the second half and deservedly went ahead seven minutes after the break when Watford failed to clear their lines and Henderson headed into the path of Webber who swivelled and fired in.
Watford reacted well and should have been level eight minutes later when Lee Williamson's corner found Cork who headed over when he should have done better.
With 67 minutes gone they were made to pay for that miss when Halford nodded the ball into Henderson who hooked his shot across Loach and into the left-hand corner to double the Blades' lead.
Rogers brought Will Hoskins on in a bid to get back into the game but they struggled to make the breakthrough and Smith fired wide from 20 yards.
With four minutes remaining Morgan almost heaped more misery on Watford but his close-range shot was saved by Loach.
Teams:
Watford Loach, Hoyte, DeMerit, Mariappa, Harley, Cork, Williamson (Hoskins 69), Jenkins, Rasiak, McAnuff, Smith.
Subs Not Used: Lee, Bridcutt, Priskin, Doyley.
Booked: Harley.
Sheff Utd Kenny, Halford (Bromby 88), Morgan, Kilgallon, Naysmith, Montgomery, Howard, Quinn, Naughton, Henderson,Webber (Stokes 86).
Subs Not Used: Hendrie, Jihai, Sharp.
Booked: Quinn.
Goals: Webber 52, Henderson 67.
Att: 14,555
Ref: Kevin Friend (Leicestershire).