THE Hornets lost their first league game of 2009 as the Royals came from behind to win the game 2-1.
Watford gave a start to schoolboy Gavin Massey in attack alongside Marvin Sordell. Lee Hodson started on the bench after his efforts for the youth team in overcoming Southampton in the FA Youth Cup.
The Golden Boys were positive in their start to the game and were ahead on seven minutes.
Billy Gibson's deflected shot looped over goalkeeper Simon Locke from 20 yards after cutting in from the left hand flank.
Sordell started the game in promising fashion and after holding off two strong challenges his shot fizzed just wide of the post.
The 'Orns had a goal ruled offside from Sordell after neat build-up play including Matthew Whichelow and Kurtney Brooks.
Jacob Walcott drove wide for the visitors as they came more into the game from the mid period of the first half.
On 33 minutes they equalised and Jake Taylor scored after an excellent move involving White and Baggie.
Just before the half time break, Reading got their noses in front as defender Kamdjo shot from a few yards out following a corner kick.
Despite some promising early pressure from the home side after the break, it wasn't to be for the 'Orns.
Sordell struck a shot just wide and late on Massey's effort was saved while Gibson's strong shot went over the bar.
WATFORD: Antal; Yiadom, Lavers, Kiernan (c), Angus (Hodson 72); Gibson, Brooks (Isaac 86), Penny, Whichelow; Sordell (Mingoia 60), Massey. Subs not used: Bond (gk), Warburton.
READING: Locke; Tyler, Browne, Kamdjo, Mitchell; O Kelly, Stockinger (Goddard 60), Baggie, J Taylor; Walcott (Vasilev 80), White (Raymond 60). Subs not used: Pritchard, Cox.
SCORERS: WATFORD; Gibson (7). READING; Taylor (33), Kamdjo (44).