In a small saucepan add sugar and water and stir to dissolve sugar. Add the cilantro and jalapeno to mixture and bring to a boil. Let the mixture cool and remove jalapeno slices.
Add about 1/4 of the spicy cilantro syrup to the pureed watermelon and stir. Squeeze all the juice of the lime.
Pour mixture into popsicle molds and freeze. Once frozen, run hot water over molds to release ice pops.