Watkins was injured during the second quarter of Monday night's victory over the Denver Broncos and has been a limited participant in practice every other day this week for the AFC West-leading Chiefs (4-0).
Against the Broncos, Watkins did not catch a pass after quarterback Patrick Mahomes found him on 14 catches for 176 yards and a touchdown in the first three games. He also has carried the ball three times for 51 yards.
Watkins, who has a history of injuries, is expected to be a game-time decision on Sunday.
The 25-year-old Watkins, selected by the Buffalo Bills with the fourth overall pick of the 2014 NFL Draft out of Clemson, signed a three-year, $48 million contract with the Chiefs after spending two seasons with the Bills and one with the Los Angeles Rams.
For his career, the 6-foot-1, 211-pounder has 206 receptions for 3,128 yards and 26 touchdowns.
The Chiefs also listed safety Eric Berry (heel) as doubtful to play against the Jaguars, while defensive end Dee Ford and defensive back Armani Watts are questionable because of groin injuries.