Watson was a stand-out performer against Burnely last weekend and helped sure up a defence which has been leaky in the last few weeks.
And after picking up the club's first point of the year at Turf Moor, Laws knows that the players are in confident mood going into a very winnable game at Luton on Tuesday.
He told the club's official site: "The players have been superb in training and have responded really well. I think the inclusion of Steve Watson has brought a bit of calmness to the defence and has allowed the players around him to express themselves.
"I felt we finished the better side at Burley and looked more likely to win. We need to take those positives to Luton."
Both David Graham and Jermaine Johnson are pushing for first-team starts tomorrow night.