Watson Lake is a town in Yukon, Canada, located at mile 635 on the Alaska Highway close to the British Columbia border. It has a population of 790 in 2016. The town is named for Frank Watson, an American-born trapper and prospector, who settled in the area at the end of the 19th century.

Yukon is the smallest and westernmost of Canada's three territories. It is the third-least populated province or territory in Canada, with a population of 45,148 as of 2023. However, Whitehorse, the territorial capital, is the largest settlement in any of the three territories.