The Hornets handed Capoue a brand, spanking new contract last week that will keep him at Vicarage Road until 2022.
Capoue thought his Premier League career was over when he came close to signing with Fiorentina in the summer.
The 29-year-old suffered through a mediocre spell with Tottenham before joining Watford in 2015. And now he feels ready to repay the club for "giving him a second chance".
"First of all, this is the club that gave me a second chance in the Premier League. We've done very well since I've been here and I want to keep it going as I have a good relationship with the club," he told the Watford website.
"I was scared to sign here, because Watford were just promoted, but I felt straight away with Gino Pozzo that I can sign here very easily.
"[I felt] the structure of the club would be very strong and we were going to stay in the Premier League.
"We've done very well since then, our club is moving forward every season so it was an easy decision for me to stay."