Watson left her home in Newton County, Texas on August 27, 2006 to visit friends in Tenaha, Texas, but never arrived there. She was last seen playing on slot machines at a truck stop in Logansport, Louisiana on August 28. Watson's family stated she did not gamble and often spoke against gambling, but people at the truck stop stated she went there regularly. She won approximately $1,000 on the night of her disappearance. She has never been heard from again.

At 11:00 p.m. on August 28, hours after she was last seen, Watson's white Ford Explorer Sport Trac was found seventy-five yards off Highway 191 north, between Logansport and Newton County. It had been intentionally set on fire and was still burning when it was located. Watson's cellular phone was found under a bridge a few miles away, but there was no indication of her whereabouts. Everything inside her vehicle was destroyed by the blaze.

The month after Watson went missing, authorities announced they were seeking a male person of interest in her case. The man, who has not been publicly identified, was at the truck stop on the night Watson disappeared. Watson disappeared under unclear circumstances. Her disappearance is being investigated as a missing person rather than a crime.