Serena took the first set 6-2, before Watson fought back to claim the 2nd set 4-6.
Watson began the 3rd set with a bang, taking a 3-0 lead before Serena came back and leveled it at 3-3.
Serena took a 4-3 lead, before losing control to Watson who took a 5-4 lead.
Serena was able to keep her calm though, and was able to secure a 7-5 win and take the game at Centre Court.
“[Heather] was playing so good, there was nothing I could do. She should’ve won the match. She gave her all,” said the 20-time Grand Slam winner.
Serena will meet elder sister Venus in the 4th round of the tournament.
“Venus is in better form than I am. She has a little bit of an advantage, but at least one of us will be in the quarter-final.”