The Tigers came from behind twice before striking deep into added time to claim a 3-2 win against Watford at the KC Stadium on Saturday.
Matty Fryatt and Aaron Mclean had twice dragged City level as Watford turned this one into a real battle, but Robert Koren won it with a 25-yard strike deep in added time.
City made just one change to the side that started at Brighton as Tom Cairney replaced the injured Martin Pusic. With Cairney moving up to the starting eleven, James Harper came into the squad on the bench.
Fryatt looked bright in the early stages and when he burst into the Watford box in the sixth minute, only a well-timed challenge from Adrian Mariappa prevented the striker from getting a shot away.
City also won several corners in the opening 15 minutes, but nothing came from them.
Chances were hard to come by, though, with Corry Evans coming as close as anybody when he found the net only for the effort to be ruled out following a foul by Mclean on goalkeeper Scott Loach.
Watford went close on 31 minutes when Mariappa met a cross from the right wing, his header going just over.
Robbie Brady and Carl Dickinson were involved in a flashpoint on the touchline three minutes later and both were eventually booked. From the free kick that Watford were awarded following that incident, Watford had the ball in the back of City's net, only for the referee's assistant to flag for offside.
The visitors went in front from their next free kick. Mark Yeates delivered and although Troy Deeney took the plaudits after the ball ended up in the back of the net, it looked suspiciously like an own goal from James Chester.
Deeney was shown a yellow card in added time for a late challenge on Liam Rosenior.
Half Time: Tigers 0-1 Watford
The Tigers levelled six minutes after half time. An error in the Watford box left the ball loose for Fryatt to fire home from close range.
Attention then turned to the referee as two decisions went against City. First Fryatt was blocked off in the box as he looked to latch onto a through ball, the result somehow being a free kick to Watford. Then, Loach took the ball suspiciously close to the edge of his area, but play was waved on.
Adriano Basso got down well at his near post to keep out a drive from Marvin Sordell, but the visitors were soon back in front. Great work from Yeates down the right set up a chance for Chris Iwelumo at the far post and he headed home via the underside of the bar.
A great challenge from Joe Dudgeon prevented Iwelumo from having a tap-in to make it three as the game suddenly became an open one.
The Tigers levelled for a second time on 66 minutes. Rosenior's first low ball in from the right was blocked, but he made sure he got a second chance to cross and Mclean was on hand to fire home and bag his first goal at the KC Stadium.
Mclean was soon in trouble with the referee, though, booked for a challenge in which he seemingly won the ball.
Play switched to the other end when Yeates skimmed the City bar after a good run and shot before Dele Adebola replaced Brady for City as they went 4-3-3.
Yeates was at the heart of most of Watford's best moments, and his well delivered free set up a free header for John Eustace but Basso kept it out.
The game looked to be heading for a draw......until deep into added time. Koren picked up possession midway inside the City half, drifted past three Watford players before driving home into the bottom corner of the net from 25 yards.
It was almost the last kick of the game - but few inside the stadium cared as City made it eight games unbeaten and four home wins on the bounce.
Tigers: Adriano Basso, Liam Rosenior, James Chester, Jack Hobbs, Joe Dudgeon, Robert Koren, Corry Evans (McKenna 86), Tom Cairney, Robbie Brady (Adebola 76), Aaron Mclean, Matty Fryatt.
Subs: Peter Gulacsi, Paul McShane, Paul McKenna, James Harper, Dele Adebola.
Watford: Scott Loach, Carl Dickinson, John Eustace, Adrian Mariappa, Mark Yeates, Troy Deeney (Forsyth 76), Chris Iwelumo, Lloyd Doyley, Marvin Sordell (Garner 88), David Mirfin, Jonathan Hogg.
Subs: Rene Gilmartin, Lee Hodson, Craig Forsyth, Prince Buaben, Joe Garner.
Referee: Mr G. Sutton.