Gather the ingredients. Preheat the oven to 350 degrees F (175 degrees C).
Mix ground beef, bread crumbs, onion, water, and egg together in a large bowl. Form into small meatballs and arrange on a nonstick baking sheet. Bake in the preheated oven for 20 to 25 minutes, turning once.
Stir cranberry sauce, chili sauce, brown sugar, and lemon juice together in a large saucepan over low heat until smooth. Add meatballs; simmer for 1 hour before serving.
