diff --git a/packages/core/src/plugin/supervisor.ts b/packages/core/src/plugin/supervisor.ts
index 2b14c42db1..ff8253a457 100644
--- a/packages/core/src/plugin/supervisor.ts
+++ b/packages/core/src/plugin/supervisor.ts
@@ -202,6 +202,16 @@ function discoverDirectory(fs: FSUtil.Interface, directory: string) {
   })
 }
 
+const sourceDirectories = ["plugin", "plugins"] as const
+
+function isPluginSource(entries: readonly Config.Entry[], file: string) {
+  return entries.some(
+    (entry) =>
+      entry.type === "directory" &&
+      sourceDirectories.some((directory) => FSUtil.contains(path.join(entry.path, directory), file)),
+  )
+}
+
 export interface Interface {
   /** Wait for the initial plugin generation and startup updates to settle. */
   readonly flush: Effect.Effect<void>
@@ -239,12 +249,25 @@ const layer = Layer.effect(
         }),
       )
     })
-    const updates = yield* bus
+    const sourceChanges = config
+      .changes()
+      .pipe(
+        Stream.filterEffect((update) =>
+          Effect.map(config.entries(), (entries) => isPluginSource(entries, update.path)),
+        ),
+        // Make accepted filesystem work visible to flush before coalescing the burst.
+        Stream.mapEffect(() => Effect.sync(() => ++observed)),
+        Stream.debounce("100 millis"),
+      )
+    const busUpdates = bus
       .subscribe([Event.Updated, SdkPlugins.Updated])
-      .pipe(Stream.toQueue({ capacity: 1, strategy: "sliding" }))
+      .pipe(Stream.mapEffect(() => Effect.sync(() => ++observed)))
+    const updates = yield* Stream.merge(busUpdates, sourceChanges).pipe(
+      Stream.toQueue({ capacity: 1, strategy: "sliding" }),
+    )
     const signals = yield* Stream.concat(
       Stream.succeed(0),
-      Stream.fromQueue(updates).pipe(Stream.mapEffect(() => Effect.sync(() => ++observed))),
+      Stream.fromQueue(updates),
     ).pipe(Stream.broadcast({ capacity: 1, strategy: "sliding", replay: 1 }))
     const attempt = (target: number) =>
       activate(target).pipe(
diff --git a/packages/core/test/config/plugin.test.ts b/packages/core/test/config/plugin.test.ts
index 64fb43336c..151a715972 100644
--- a/packages/core/test/config/plugin.test.ts
+++ b/packages/core/test/config/plugin.test.ts
@@ -3,7 +3,6 @@ import path from "path"
 import { pathToFileURL } from "url"
 import { describe, expect } from "bun:test"
 import { Plugin as EffectPlugin } from "@opencode-ai/plugin/effect"
-import { Config as ConfigSchema } from "@opencode-ai/schema/config"
 import { Agent } from "@opencode-ai/core/agent"
 import { Catalog } from "@opencode-ai/core/catalog"
 import { AppNodeBuilder } from "@opencode-ai/core/effect/app-node-builder"
@@ -17,7 +16,7 @@ import { PluginSupervisor } from "@opencode-ai/core/plugin/supervisor"
 import { Model } from "@opencode-ai/core/model"
 import { Provider } from "@opencode-ai/core/provider"
 import { AbsolutePath } from "@opencode-ai/core/schema"
-import { Effect, Logger } from "effect"
+import { Effect, Fiber, Logger, Stream } from "effect"
 import { Database } from "../../src/database/database"
 import { tmpdir } from "../fixture/tmpdir"
 import { testEffect } from "../lib/effect"
@@ -173,18 +172,19 @@ describe("PluginSupervisor config", () => {
         expect(first).toBeDefined()
         expect((yield* agents.get(Agent.ID.make("mutable")))?.description).toBe("first")
 
+        const changed = yield* bus
+          .subscribe(Plugin.Event.Updated)
+          .pipe(Stream.take(1), Stream.runDrain, Effect.forkScoped({ startImmediately: true }))
         yield* Effect.promise(async () => {
           await fs.writeFile(file, mutablePlugin("second"))
           const modified = new Date(Date.now() + 5_000)
           await fs.utimes(file, modified, modified)
         })
-        yield* bus.publish(ConfigSchema.Event.Updated, {})
-        yield* waitUntil(
-          Effect.gen(function* () {
-            const current = (yield* plugins.list()).find((plugin) => plugin.id === "mutable-plugin")?.id
-            return current === first && (yield* agents.get(Agent.ID.make("mutable")))?.description === "second"
-          }),
-        )
+        yield* Fiber.join(changed).pipe(Effect.timeout("5 seconds"))
+
+        const current = (yield* plugins.list()).find((plugin) => plugin.id === "mutable-plugin")?.id
+        expect(current).toBe(first)
+        expect((yield* agents.get(Agent.ID.make("mutable")))?.description).toBe("second")
       }),
       false,
       async (directory) => {
@@ -320,11 +320,3 @@ export default Plugin.define({
 })
 `
 }
-
-const waitUntil = Effect.fnUntraced(function* (condition: Effect.Effect<boolean>) {
-  for (let attempt = 0; attempt < 200; attempt++) {
-    if (yield* condition) return
-    yield* Effect.sleep("10 millis")
-  }
-  return yield* Effect.die("Timed out waiting for plugin reload")
-})