Town's reserves thrashed Watford's second string 8-1 at Portman Road on Monday night. A hat-trick from Jaime Peters, a brace from Billy Clarke and goals from Aidan Collins, Liam Craig and an own goal from Adam Griffiths secured the win.
Shane Supple saved a Les Ferdinand penalty in the first half but was beaten by Toumani Diagouraga's second half freekick.
Watford had the first real attack on four minutes when a low cross from Alex Campana was turned goalwards by Francino Francis but Chris Casement did well to block his effort.
Six minutes later Town almost took the lead when a Liam Craig corner should've been headed in by Aidan Collins but the big defender didn't get enough contact on the ball.
On 13, a cross from Watford's left should have been headed in by veteran striker Les Ferdinand but he didn't make any contact with the ball.
Town opened the scoring on 21 minutes with a lovely flowing move. Craig passed the ball out wide to Liam Trotter who put in a good cross and Billy Clarke took a touch before turning his man and firing into the bottom corner of the net.
A minute later and Sammy Moore received a booking from Mr Cann after a late tackle on Watford's Michael Bardle.
On 24 Town doubled their lead with an extremely fast counter-attack. The lively Clarke played a sublime through-ball into the path of Jaime Peters who was too quick for his man and he finished well with his left foot from 18 yards out.
Another good move five minutes later didn't quite produce a goal but again it was lovely football to watch. The ball was threaded into Danny Haynes who turned the ball across goal for the oncoming Trotter but his shot flew just wide from 12 yards.
It was 3-0 to Town on 31 after a good cross from Peters was only half-cleared and Clarke hit a right-footed drive which Sanna tipped round his post. A superb corner routine came off when the ball was rolled in to the edge of the 18-yard box, dummied and Craig hit a wonderful left-foot shot into the bottom corner of the net.
Three minutes later Watford missed the opportunity to get a goal back. A penalty was given against Town's James Krause after he was adjudged to have handled the ball inside the area. Up stepped Ferdinand who hit a good enough penalty but Shane Supple produced a magnificent save to keep it out.
Another good counter-attack by Town produced yet another goal. A cross from Peters was going into Sanna's diving arms but defender Adam Griffiths stuck out a foot and the ball went flying into the empty net.
Billy Clarke made it 5-0 at half-time with a goal in the second minute of added on time. Yet another fine cross from Peters was headed into the corner of the net by Clarke.
Watford made one change at half-time when they replaced left-back Sietes with Jordan Parkes.
Five minutes after the restart Clarke played the ball to Scott Barron who curled a left-foot shot just wide from the edge of the box.
On 52 the visitors scored a consolation goal. The referee brought the play back after trying to play the advantage after a foul by Aidan Collins. Toumani Diagouraga stepped up and curled the ball over the wall and into the net.
Watford's Junior Osborne got booked a minute later for a late challenge on James Krause.
But Town responded two minutes after the Watford goal when a Liam Craig freekick was met by Jaime Peters who headed in to make it 6-1. Gerard Nash then replaced Chris Casement at the heart of the Town defence as he continues his return after undergoing a cartilage operation in the summer.
On 58 Supple again did well to deny Francis after the big striker broke through but the young stopper was out quickly to deny him. James Krause was then booked himself after a clumsy challenge out wide.
In the 61st minute substitute Bardle played a nice one-two before firing his volley wide of Supple's post.
Town made a double substitution two minutes later with Darryl Knights replacing the hard-working Danny Haynes and Cathal Lordan coming on for Liam Trotter in midfield.
On 69 Watford replaced Alex Campana with Elliot Frost but Town broke straight away and Knights played in Clarke who had the chance to grab his hat-trick but Sanna was out quickly to block the young striker's effort.
Three minutes later it was 7-1 to the home side. A freekick from Craig was dropped by Sanna and the ball went through to Collins at the back post who had a tap-in. He then had to go off to change his shorts after the left side of his leg was covered in blood.
Canadian international Peters completed the scoring in the final minute to secure an 8-1 victory for a very impressive Town side. Billy Clarke and Jaime Peters both had extremely impressive games, while Shane Supple was confident and did well in the Town goal.
Ipswich Town: 1 Shane Supple, 2 Sammy Moore, 3 James Krause, 4 Liam Trotter (16 Cathal Lordan, 63), 5 Aidan Collins (c), 6 Chris Casement (12 Gerard Nash, 54), 7 Jaime Peters, 8 Scott Barron, 9 Billy Clarke, 10 Danny Haynes (14 Darryl Knights, 63) and 11 Liam Craig. Unused: 15 Stuart Ainsley.
Watford: 1 Chris Sanna, 2 Junior Osborne, 3 Sietes (12 Jordan Parkes, 45), 4 Adrian Mariappa, 5 Adam Griffiths, 6 Joseph O'Cearuill, 7 Alex Campana (14 Elliot Frost, 69), 8 Toumani Diagouraga, 9 Les Ferdinand (c), 10 Francino Francis and 11 Michael Bardle. Unused: 13 James Beasant (GK), 15 Marvin Homand and 16 Theo Robinson. Referee: Mr Darren Cann. Attendance: 389.
Thanks to James Ager for the report.