Watsonia station was provisionally known as Collina during construction.[5] Like the suburb itself, the station is named after Frank Watson, a local landowner who subdivided his property, Grace Park, into the Grace Park Station Estate.[6][7]
The current station dates back to 1977, when that section of the railway line was lowered to remove a number of level crossings.[8] In 1979, the line between Macleod and Greensborough stations was duplicated.[5]
Watsonia is located in a deep cutting, between the Greensborough Highway and Watsonia Road. It has one island platform with two faces, with access to the platforms provided by a pedestrian overpass and a ramp. The station features a customer service window, a coffee shop, an enclosed waiting room, and toilets.