diff --git a/desktop/scripts/build-utils.tsx b/desktop/scripts/build-utils.tsx
index a90d462d9..e854b64d9 100644
--- a/desktop/scripts/build-utils.tsx
+++ b/desktop/scripts/build-utils.tsx
@@ -37,6 +37,7 @@ import {
 import pFilter from 'p-filter';
 import child from 'child_process';
 import pMap from 'p-map';
+import chalk from 'chalk';
 
 const dev = process.env.NODE_ENV !== 'production';
 
@@ -510,3 +511,17 @@ function defaultResolve(...rest: any[]) {
     ...rest,
   );
 }
+
+export async function rebuildPlugin(pluginPath: string) {
+  try {
+    await runBuild(pluginPath, true);
+    console.info(chalk.green('Rebuilt plugin'), pluginPath);
+  } catch (e) {
+    console.error(
+      chalk.red(
+        'Failed to compile a plugin, waiting for additional changes...',
+      ),
+      e,
+    );
+  }
+}
diff --git a/desktop/scripts/start-dev-server.tsx b/desktop/scripts/start-dev-server.tsx
index af7bffc06..26fc1aa86 100644
--- a/desktop/scripts/start-dev-server.tsx
+++ b/desktop/scripts/start-dev-server.tsx
@@ -362,9 +362,6 @@ async function startWatchChanges(io: socketIo.Server) {
         ),
       ),
     );
-    await startWatchPlugins(() => {
-      io.emit('refresh');
-    });
   } catch (err) {
     console.error(
       'Failed to start watching for changes using Watchman, continue without hot reloading',
@@ -448,6 +445,9 @@ function checkDevServer() {
   await startMetroServer(app, server);
   outputScreen(socket);
   await compileMain();
+  await startWatchPlugins(() => {
+    socket.emit('refresh');
+  });
   if (dotenv && dotenv.parsed) {
     console.log('✅  Loaded env vars from .env file: ', dotenv.parsed);
   }
diff --git a/desktop/scripts/start-flipper-server-dev.tsx b/desktop/scripts/start-flipper-server-dev.tsx
index 924b64c03..21024ae4f 100644
--- a/desktop/scripts/start-flipper-server-dev.tsx
+++ b/desktop/scripts/start-flipper-server-dev.tsx
@@ -19,6 +19,7 @@ import Watchman from './watchman';
 import isFB from './isFB';
 import yargs from 'yargs';
 import ensurePluginFoldersWatchable from './ensurePluginFoldersWatchable';
+import startWatchPlugins from './startWatchPlugins';
 
 const argv = yargs
   .usage('yarn flipper-server [args]')
@@ -149,12 +150,15 @@ async function startWatchChanges() {
     // For UI changes, Metro / hot module reloading / fast refresh take care of the changes
     await Promise.all(
       [
-        'pkg',
         'doctor',
+        'pkg-lib',
         'plugin-lib',
-        'flipper-server',
         'flipper-common',
+        'flipper-frontend-core',
+        'flipper-plugin-core',
+        'flipper-server-companion',
         'flipper-server-core',
+        'flipper-server',
       ].map((dir) =>
         watchman.startWatchFiles(
           dir,
@@ -191,4 +195,5 @@ async function startWatchChanges() {
   await restartServer();
   // watch
   await startWatchChanges();
+  await startWatchPlugins();
 })();
diff --git a/desktop/scripts/startWatchPlugins.tsx b/desktop/scripts/startWatchPlugins.tsx
index a0b2e49f2..1c3ecca9f 100644
--- a/desktop/scripts/startWatchPlugins.tsx
+++ b/desktop/scripts/startWatchPlugins.tsx
@@ -8,23 +8,49 @@
  */
 
 import Watchman from './watchman';
-import {getPluginSourceFolders} from 'flipper-plugin-lib';
+import {getPluginSourceFolders, isPluginDir} from 'flipper-plugin-lib';
+import path from 'path';
+import chalk from 'chalk';
+import {rebuildPlugin} from './build-utils';
 
 export default async function startWatchPlugins(
-  onChanged: () => void | Promise<void>,
+  onChanged?: () => void | Promise<void>,
 ) {
   // eslint-disable-next-line no-console
   console.log('🕵️‍  Watching for plugin changes');
 
   let delayedCompilation: NodeJS.Timeout | undefined;
   const kCompilationDelayMillis = 1000;
-  const onPluginChangeDetected = () => {
+  const onPluginChangeDetected = (root: string, files: string[]) => {
     if (!delayedCompilation) {
-      delayedCompilation = setTimeout(() => {
+      delayedCompilation = setTimeout(async () => {
         delayedCompilation = undefined;
         // eslint-disable-next-line no-console
         console.log(`🕵️‍  Detected plugin change`);
-        onChanged();
+        await Promise.all(
+          // https://facebook.github.io/watchman/docs/nodejs.html#subscribing-to-changes
+          files.map(async (file: string) => {
+            const filePathAbs = path.resolve(root, file);
+            let dirPath = path.dirname(filePathAbs);
+            while (
+              // Stop when we reach plugin root
+              !(await isPluginDir(dirPath))
+            ) {
+              const relative = path.relative(root, dirPath);
+              // Stop when we reach desktop/plugins folder
+              if (!relative || relative.startsWith('..')) {
+                console.warn(
+                  chalk.yellow('Failed to find a plugin root for path'),
+                  filePathAbs,
+                );
+                return;
+              }
+              dirPath = path.resolve(dirPath, '..');
+            }
+            await rebuildPlugin(dirPath);
+          }),
+        );
+        onChanged?.();
       }, kCompilationDelayMillis);
     }
   };
@@ -38,15 +64,26 @@ export default async function startWatchPlugins(
   }
 }
 
-async function startWatchingPluginsUsingWatchman(onChange: () => void) {
+async function startWatchingPluginsUsingWatchman(
+  onChange: (root: string, files: string[]) => void,
+) {
   const pluginFolders = await getPluginSourceFolders();
   await Promise.all(
     pluginFolders.map(async (pluginFolder) => {
       const watchman = new Watchman(pluginFolder);
       await watchman.initialize();
-      await watchman.startWatchFiles('.', () => onChange(), {
-        excludes: ['**/__tests__/**/*', '**/node_modules/**/*', '**/.*'],
-      });
+      await watchman.startWatchFiles(
+        '.',
+        ({files}) => onChange(pluginFolder, files),
+        {
+          excludes: [
+            '**/__tests__/**/*',
+            '**/node_modules/**/*',
+            '**/dist/*',
+            '**/.*',
+          ],
+        },
+      );
     }),
   );
 }