The British actress, 20, split from long term partner Jay Barrymore in March and she sparked rumours of a new romance with Craig - one of the models who appeared in her latest ad campaign for British fashion house Burberry - after she was seen out in London with him earlier this month (Jun10).
Watson has further added to the speculation by spending time with Craig, who also fronts rock band One Night Only, at the iconic music event in England.
She says, "I've just arrived and I'm blown away by the size of the festival. We only finished filming last week so I'm still trying to get my head round it. I'm here to enjoy myself and plan to see lots of bands."