TWO goals in the first half from the hosts proved too much for Watford to come back from and a second half strike could only prove a consolation for the visitors.
The Hornets had chances either side of half time, but The Blues showed off their skills and talent, maintaining control for the majority of the game.
Piero Mingoia converted a well-placed cross, which skimmed the face of the goal, planting itself at the feet of the midfielder who tapped it in to finish the job off.
Chelsea immediately retaliated and Watford were left to lick their wounds as the home side celebrated their win.
Academy U17-U19 manager Mark Warburton gave www.watfordfc.com the lowdown on Saturday's clash with The Blues.
He said: "It was a disappointing result, but we can take some positives out of the performance.
"It was typical really of our performances this season, in that we created several clear-cut chances, and failed to capitalise on the good work that we've done.
"The positives are that we dominated possession, moved the ball very well and created chances. We need to learn how to capitalise on the good work being done."
Young defender Rob Kiernan was carried off after 35 minutes with an ankle injury and the Academy coach gave us the latest on his injury this week at the training ground, after having assessed the damage.
"Thankfully there's no break, it looks like ankle ligament damage, and it'll be maybe four to five weeks before he'll be back.
"He was playing very well with Eddie Oshodi who was excellent throughout the game.
"Rob looked composed and was playing the ball very comfortably. It was a loss for us, there's no doubt about that."
Academy players such as Kurtney Brooks, Matty Whichelow and Mingoia are not only turning out for the Academy, but also getting places in the Hornets' second string team.
"Kurtney Brooks played half the Chelsea game then went to Wales, and he's played two games against Malta in the week.
"The more we can provide and develop the boys, the better it'll be for the first team, they're only here for the first team.
"At the reserves this week against Norwich, Cole Penny had a good game, Matty Wichelow and Piero Mingoia were also involved and Eddie Oshodi was outstanding.
"That's why we're here, to keep pushing forward."
WATFORD: Bond (gk); Thompson (Yiadom 60), Kiernan (Fenwick 35),Oshodi, Angus; Gibson, Penny, Brooks (Isaac 60), Mingoia; Whichelow; Massey. Subs not used: Irving, Otshudi.
SCORER: Mingoia.
