diff --git a/packages/core/src/virtual-content.ts b/packages/core/src/virtual-content.ts
index cfa8b7745a..0bab62f802 100644
--- a/packages/core/src/virtual-content.ts
+++ b/packages/core/src/virtual-content.ts
@@ -19,7 +19,7 @@ export function virtualContent(filename: string, resolver: Resolver): { src: str
       src: `export default [
       ${files.map(f => `"${f}"`).join(',')}
     ]`,
-      watches: [join(resolver.options.appRoot, 'app', 'app.js')],
+      watches: [join(resolver.options.appRoot, 'app')],
     };
   }
 
diff --git a/packages/vite/src/resolver.ts b/packages/vite/src/resolver.ts
index ddcd47557a..e95da4e509 100644
--- a/packages/vite/src/resolver.ts
+++ b/packages/vite/src/resolver.ts
@@ -1,5 +1,5 @@
 import type { PluginContext, ResolveIdResult } from 'rollup';
-import type { Plugin } from 'vite';
+import type { Plugin, ViteDevServer } from 'vite';
 import type { Resolution, ResolverFunction } from '@embroider/core';
 import { virtualContent, ResolverLoader } from '@embroider/core';
 import { RollupModuleRequest, virtualPrefix } from './request';
@@ -7,10 +7,31 @@ import assertNever from 'assert-never';
 
 export function resolver(): Plugin {
   let resolverLoader = new ResolverLoader(process.cwd());
+  let server: ViteDevServer;
+  let virtualDeps: Map<string, string[]> = new Map();
 
   return {
     name: 'embroider-resolver',
     enforce: 'pre',
+
+    configureServer(s) {
+      server = s;
+      server.watcher.on('all', (_eventName, path) => {
+        for (let [id, watches] of virtualDeps) {
+          for (let watch of watches) {
+            if (path.startsWith(watch)) {
+              console.log(`Invalidate ${id} because ${path}`);
+              server.moduleGraph.onFileChange(id);
+              let m = server.moduleGraph.getModuleById(id);
+              if (m) {
+                server.reloadModule(m);
+              }
+            }
+          }
+        }
+      });
+    },
+
     async resolveId(source, importer, options) {
       let request = RollupModuleRequest.from(source, importer, options.custom);
       if (!request) {
@@ -30,9 +51,8 @@ export function resolver(): Plugin {
     load(id) {
       if (id.startsWith(virtualPrefix)) {
         let { src, watches } = virtualContent(id.slice(virtualPrefix.length), resolverLoader.resolver);
-        for (let watch of watches) {
-          this.addWatchFile(watch);
-        }
+        virtualDeps.set(id, watches);
+        server.watcher.add(watches);
         return src;
       }
     },
diff --git a/tests/vite-app/app/components/example.hbs b/tests/vite-app/app/components/example.hbs
index 6224387eed..b6b23fd110 100644
--- a/tests/vite-app/app/components/example.hbs
+++ b/tests/vite-app/app/components/example.hbs
@@ -1 +1 @@
-<div>hey {{@message}} <Fancy /></div>
\ No newline at end of file
+<pre>{{@message}}</pre>
\ No newline at end of file
diff --git a/tests/vite-app/app/routes/application.ts b/tests/vite-app/app/routes/application.ts
index 8081a29552..5e0b96be59 100644
--- a/tests/vite-app/app/routes/application.ts
+++ b/tests/vite-app/app/routes/application.ts
@@ -1,7 +1,8 @@
 import Route from '@ember/routing/route';
+import files from '#the-file-list';
 
 export default class extends Route {
   async model() {
-    return { message: 'Hello world' };
+    return { message: files.join('\n') };
   }
 }