A robot working alongside people must reason about what they have done, in what order, and with what intent. Video carries the spatial layouts, object histories, and gestures that language leaves underspecified, yet today's manipulation benchmarks pair an instruction with a single current image, offering no way to evaluate reasoning over observed human behavior. We introduce WatchAct, a benchmark for robot manipulation grounded in observed human behavior. Each instance pairs a real-world human-action video and a language instruction with an aligned simulator scene and an executable LIBERO task, enabling scalable and reproducible evaluation. WatchAct comprises 3,000 long-horizon instances across 14 tasks in four capability domains drawn from the cognitive demands of watching another agent: parsing events (Event Grounding), recovering procedural structure (Procedural Reasoning), inferring unstated intent (Implicit Intent Inference), and tracking how the scene was changed (Episodic Reasoning). We further propose a disentangled evaluation protocol that separately measures (i)~video-to-plan reasoning by vision-language models, (ii)~policy execution under oracle plans, and (iii)~full task completion by integrated planner--policy pipelines. In both simulation and on a Franka Research 3 robot, current systems remain far from solving WatchAct. The best pipeline, Gemini-3.1-Pro with
π0.5, reaches only 16.3% Success Rate (SR) in simulation and 14.0% on the real robot. Gemini-3.1-Pro attains just 36.8% Plan SR (vs. 97.1% for humans), while
π0.5 reaches only 21.5% Task SR under oracle plans and drops to 10.6% on out-of-domain scenarios. Dataset and code are available at https://baiqi-li.github.io/watchact_page/.