Watson (45) and Haddin (32) took the team closer to Lions’ 137 for nine while Steven Smith (25 not out) got the Australian unit over the line. Watson (2-25), Josh Hazlewood (2-18) and Mitchell Starc (3-19) did the job with the ball with Gulam Bodi (61) being the stand out batsman for Lions.
It was Sydney’s third win in as many matches while Lions suffered their first loss of the competition.
Left-arm spinner Aaron Phangiso (3-14) was the pick of the bowlers for Lions.
Earlier, Bodi took Lions to a fighting score with support from Neil McKenzie (17) and Jean Symes (23).
Pics: Sidharth Shukla-Rashami Desai's sizzling chemistry at TV show launch
Ooh La Lana! WWE Diva flaunts sexy curves in these 30 pictures
Photos: Salman Khan returns from Jodhpur to Mumbai
15 'peach' perfect photos of Priyanka Chopra at People's Choice Awards 2017
62 going on 16: These photos of Rekha prove she is 'forever young'