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Polymorphic gates are reconfigurable devices whose functionality may vary in response to the change of execution environment such as temperature, supply voltage or external control signals. This feature makes them a perfect candidate for circuit watermarking. However, polymorphic gates are hard to find because they do not exhibit the traditional structure. In this paper, we report four dual-function polymorphic gates that we have discovered using an evolutionary approach. With these gates, we propose a circuit watermarking scheme that selectively replace certain regular logic gates by the polymorphic gates. Experimental results on ISCAS and MCNC benchmark circuits demonstrate that this scheme introduce low overhead. More specifically, the average overhead in area, speed and power are 4.10%, 2.08% and 1.17% respectively when we embed 30-bit watermark sequences. These overhead increase to 6.36%, 4.75% and 2.08% respectively when 10% of the gates in the original circuits are replaced to embed watermark up to more than 300 bits.