On January 30, 2011, Watson won his second PGA Tour event, the Farmers Insurance Open, finishing one stroke ahead of runner-up Phil Mickelson. Watson picked up his second win of the 2011 season and third career PGA Tour title on May 1 when he defeated Webb Simpson at the second playoff hole at the Zurich Classic of New Orleans. Both players birdied the first playoff hole, with Watson holing a 12-footer; he birdied the next hole to win the tournament.
In July 2011, Watson provoked controversy by criticizing the Alstom Open de France on the European Tour, in which he was playing under a sponsor's exemption. He indicated after his first round that he would not be playing any further events on the European Tour, and complained after his second round about security and organization at the tournament.
In 2011, he made a humorous appearance in the song "Michael Jackson" by Christian hip hop artist Andy Mineo on the album Formerly Known. He was featured in the song "Ima Just Do It" by KB, another Christian hip hop artist, on the album Tomorrow We Live. His prototype Golf Cart Hovercraft, the BW1, YouTube video has earned more than 8 million views.