diff --git a/lib/compiler/defaults/swc-defaults.ts b/lib/compiler/defaults/swc-defaults.ts
index 3d00633fb..ab9144fc1 100644
--- a/lib/compiler/defaults/swc-defaults.ts
+++ b/lib/compiler/defaults/swc-defaults.ts
@@ -34,7 +34,7 @@ export const swcDefaultsFactory = (
       swcrc: true,
     },
     cliOptions: {
-      outDir: tsOptions.outDir ?? 'dist',
+      outDir: tsOptions.outDir ? convertPath(tsOptions.outDir) : 'dist',
       filenames: [configuration?.sourceRoot ?? 'src'],
       sync: false,
       extensions: ['.js', '.ts'],
@@ -46,3 +46,14 @@ export const swcDefaultsFactory = (
     },
   };
 };
+
+/**
+ * Converts Windows specific file paths to posix
+ * @param windowsPath
+ */
+function convertPath(windowsPath: string) {
+  return windowsPath
+    .replace(/^\\\\\?\\/, '')
+    .replace(/\\/g, '/')
+    .replace(/\/\/+/g, '/');
+}
diff --git a/lib/compiler/swc/swc-compiler.ts b/lib/compiler/swc/swc-compiler.ts
index af0b6bc49..d76071dff 100644
--- a/lib/compiler/swc/swc-compiler.ts
+++ b/lib/compiler/swc/swc-compiler.ts
@@ -3,6 +3,7 @@ import { fork } from 'child_process';
 import * as chokidar from 'chokidar';
 import { readFileSync } from 'fs';
 import { join } from 'path';
+import { isAbsolute } from 'path/posix';
 import * as ts from 'typescript';
 import { Configuration } from '../../configuration';
 import { ERROR_PREFIX } from '../../ui';
@@ -236,8 +237,11 @@ export class SwcCompiler extends BaseCompiler {
     options: ReturnType<typeof swcDefaultsFactory>,
     onChange: () => void,
   ) {
-    const outDir = join(process.cwd(), options.cliOptions.outDir!, '**/*.js');
-    const watcher = chokidar.watch(outDir, {
+    const dir = isAbsolute(options.cliOptions.outDir!)
+      ? options.cliOptions.outDir!
+      : join(process.cwd(), options.cliOptions.outDir!);
+    const paths = join(dir, '**/*.js');
+    const watcher = chokidar.watch(paths, {
       ignoreInitial: true,
       awaitWriteFinish: {
         stabilityThreshold: 50,