Cricket Australia officials confirmed Watson will fly out from Sydney on Monday night, after being by his wife Lee's side for the birth of their baby boy late last week.
He is likely to be selected for the Fourth Test in Delhi, starting on Friday.
Watson's departure from the Australian team last Monday ahead of the start of the Third Test at Mohali was clouded in controversy, after he was dropped for failing to submit a presentation to coach Mickey Arthur on time.
The big Queenslander was one of four Aussies to be dumped over the now infamous "homework-gate" affair, which polarised fans and commentators, with pace bowlers Mitchell Johnson and James Pattinson and batsman Usman Khawaja also dramatically axed.
Watson will head back to a side which will likely play out a draw at Mohali against the Indians, after rain delayed the first day's play and the sides knocked big scores in each of their first innings.
India currently leads the four-match series 2-0.
Watson has yet to begin playing as an all-rounder, saving his body for just batting as he continues to recover from chronic calf and hamstring problems.