Watson left the Pars in October where his ’employment ended by mutual consent’ after making 42 appearances during his 16-month stint with the East end Park side.
Prior to that he was part Dundee United’s Championship-winning side.
‘Player we’ve been looking at’
Announcing the signing, Falkirk head coach Martin Rennie said: “Paul is a player that we have been looking at for some time and I am delighted to get the deal over the line.
“He is a very experienced defender who has played at a really good level, and I am extremely pleased he has chosen Falkirk over several other excellent options.
“He is a player who will add a lot of ability to our squad and I am delighted to have him on board.”
Watson will go into the squad as they prepare for their weekend clash with Montrose at Links Park.
