According to an Australian site, the pair have been seen hanging out quite a bit recently in a group of mutual friends.
‘Harry didn’t want her to feel like she was put on the spot. A party also shows he’s fun and not stuffy’ a source told the site.
‘He’s smitten - and it’s more than Emma’s looks,’ the source added.
The alleged news prompted some pretty hilarious responses from the twittersphere.
Kate Gorman wrote: ‘Emma Watson gets to be a witch and potentially a princess. No way, pick one. You can’t have your horcruxes and a crown.’
Another said: ‘Prince harry and emma watson are dating?! THEY WILL HAVE THE COOLEST CHILDREN.’
But our absolute favourite response comes from Twitter user Alycat, who wrote: ‘If Emma Watson and Prince Harry are really dating, then their future child would be a Half-Blood Prince!’
Brilliant, just brilliant.