Folklore Productions represents Watson and says he is improving after the surgery Thursday night at Baptist Hospital in Winston-Salem. A hospital spokeswoman said he remained in critical condition Friday morning.
Watson's daughter, Nancy, told The Associated Press that the 89-year-old Watson fell Monday.
The blind singer and guitarist has won several Grammys, including a lifetime achievement award. He also received the National Medal of the Arts.
He's known as a master of the flatpicking style of guitar playing, He also started Merlefest, an annual gathering of musicians in Wilkesboro named after his son, who died in a tractor accident in 1985.