Inconsistent Wolves were unable to display their recent winning form to their fans as they failed dismally to break Watford's spirited resistance.
Wolves, who last won a league game at Molineux on December 1, dominated most of the game but lacked a cutting edge to destroy the Hornets.
Striker Kenny Miller was the most disappointed Wolves player as he failed to chalk up a new club record of scoring in eight successive games.
Wolves were foiled by goalkeeper Alec Chamberlain. He distinguished himself, particularly in the crucial opening 20 minutes.
Wolves subsequently became frustrated as they failed to create a breakthrough.
The hosts, on the back of two successive away wins at Ipswich and Preston, were involved in their first home game since January 18 and once again failed to please their fans at Molineux.
An indication of Wolves' failure to gain the upper hand occurred in the first minute when Chamberlain turned away an effort from Colin Cameron.
Wolves then laid siege on Watford's goal but the Vicarage Road side were able to survive due to the brilliance of Chamberlain.
The Watford keeper thwarted another Cameron effort with a diving save and later kept out another good attempt from George Ndah.
Not surprisingly Watford, who have the worst goalscoring away record in Nationwide Division One, failed to make much impact as an attacking unit.
Allan Nielsen had Watford's best opportunity when he rounded veteran Denis Irwin, while Heidar Helguson attempted a speculative 35-yard effort which troubled goalkeeper Matt Murray.
Miller went close to scoring in his eighth successive game when put clear by Ndah but the former Rangers striker hammered his shot over the bar.
It was, however, a scrappy second half with Watford well worth their away point when they reverted to a more successful 4-4-2 formation.