The Watchdog Timer is a timer connected to a completely separate RC oscillator within the microcontroller.
If the watchdog timer is enabled, every time it counts up to the program end, the microcontroller reset occurs and program execution starts from the first instruction. The point is to prevent this from happening by using a specific command. The whole idea is based on the fact that every program is executed in several longer or shorter loops.
If instructions which reset the watchdog timer are set at the appropriate program locations, besides commands being regularly executed, then the operation of the watchdog timer will not affect program execution. If for any reason (usually electrical noises in industry), the program counter “gets stuck” on some memory location from which there is no return, the watchdog will not be cleared and the register’s value being constantly incremented will reach the maximum et voila! Reset occurs!
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Source:mikroe
Watchdog Timer Concept