Watt's linkage is used in the rear axle of some car suspensions as an improvement over the Panhard rod, which was designed in the early twentieth century. Both methods intend to prevent relative sideways motion between the axle and body of the car. Watt’s linkage approximates a vertical straight line motion more closely, and does so while locating the centre of the axle rather than toward one side of the vehicle, as more commonly used when fitting a long Panhard rod.

It consists of two horizontal rods of equal length mounted at each side of the chassis. In between these two rods, a short vertical bar is connected. The center of this short vertical rod – the point which is constrained in a straight line motion - is mounted to the center of the axle. All pivoting points are free to rotate in a vertical plane.

In a way, Watt’s linkage can be seen as two Panhard rods mounted opposite each other. In Watt’s arrangement, however, the opposing curved movements introduced by the pivoting Panhard rods are compensated by the short vertical rotating bar.

The linkage can be inverted, in which case the centre P is attached to the body, and L1 and L3 mount to the axle. This reduces the unsprung mass and changes the kinematics slightly. This is used on Australian V8 Supercars.

Watt's linkage can also be used to prevent axle movement in the longitudinal direction of the car; however, this is more common in racing suspension systems. This application usually involves two Watt's linkages on each side of the axle, mounted parallel to the driving direction.