diff --git a/moonshark.go b/moonshark.go
index ad53b51..8ee6b6c 100644
--- a/moonshark.go
+++ b/moonshark.go
@@ -90,7 +90,26 @@ func runWithWatcher(scriptPath string) {
 
 	fmt.Printf("Starting %s in watch mode...\n", scriptPath)
 
+	var hadError bool
+	firstRun := true
+
 	for {
+		// If we had an error on the last run and this isn't the first run,
+		// wait for file changes before retrying
+		if hadError && !firstRun {
+			fmt.Println("Waiting for file changes before retrying...")
+			select {
+			case <-restartCh:
+				fmt.Println("Files changed, retrying...")
+			case <-sigChan:
+				fmt.Println("\nExiting...")
+				return
+			}
+		}
+
+		firstRun = false
+		hadError = false
+
 		// Clear cache before each run
 		state.ClearCache()
 
@@ -98,14 +117,14 @@ func runWithWatcher(scriptPath string) {
 		luaState, err := state.NewFromScript(scriptPath)
 		if err != nil {
 			log.Printf("Error creating state: %v", err)
-			time.Sleep(1 * time.Second)
+			hadError = true
 			continue
 		}
 
 		if err := luaState.ExecuteFile(scriptPath); err != nil {
 			log.Printf("Execution error: %v", err)
 			luaState.Close()
-			time.Sleep(1 * time.Second)
+			hadError = true
 			continue
 		}
 
diff --git a/watcher.go b/watcher.go
index 40f3234..28194a6 100644
--- a/watcher.go
+++ b/watcher.go
@@ -2,7 +2,6 @@ package main
 
 import (
 	"fmt"
-	"log"
 	"maps"
 	"os"
 	"path/filepath"
@@ -13,6 +12,7 @@ import (
 
 type FileWatcher struct {
 	files      map[string]time.Time
+	dirs       map[string]bool // Track watched directories
 	mu         sync.RWMutex
 	restartCh  chan bool
 	stopCh     chan bool
@@ -24,6 +24,7 @@ type FileWatcher struct {
 func NewFileWatcher(debounceMs int) (*FileWatcher, error) {
 	return &FileWatcher{
 		files:      make(map[string]time.Time),
+		dirs:       make(map[string]bool),
 		restartCh:  make(chan bool, 1),
 		stopCh:     make(chan bool, 1),
 		debounceMs: debounceMs,
@@ -51,7 +52,16 @@ func (fw *FileWatcher) AddFile(path string) error {
 }
 
 func (fw *FileWatcher) AddDirectory(dir string) error {
-	return filepath.Walk(dir, func(path string, info os.FileInfo, err error) error {
+	absDir, err := filepath.Abs(dir)
+	if err != nil {
+		return err
+	}
+
+	fw.mu.Lock()
+	fw.dirs[absDir] = true
+	fw.mu.Unlock()
+
+	return filepath.Walk(absDir, func(path string, info os.FileInfo, err error) error {
 		if err != nil {
 			return err
 		}
@@ -78,6 +88,7 @@ func (fw *FileWatcher) pollLoop() {
 			return
 		case <-ticker.C:
 			fw.checkFiles()
+			fw.scanForNewFiles()
 		}
 	}
 }
@@ -103,7 +114,7 @@ func (fw *FileWatcher) checkFiles() {
 			now := time.Now()
 			if now.Sub(fw.lastEvent) > time.Duration(fw.debounceMs)*time.Millisecond {
 				fw.lastEvent = now
-				log.Printf("File changed: %s", path)
+				// log.Printf("File changed: %s", path)
 				changed = true
 			}
 		}
@@ -117,6 +128,57 @@ func (fw *FileWatcher) checkFiles() {
 	}
 }
 
+func (fw *FileWatcher) scanForNewFiles() {
+	fw.mu.RLock()
+	dirs := make(map[string]bool, len(fw.dirs))
+	maps.Copy(dirs, fw.dirs)
+	existingFiles := make(map[string]bool, len(fw.files))
+	for path := range fw.files {
+		existingFiles[path] = true
+	}
+	fw.mu.RUnlock()
+
+	newFilesFound := false
+	for dir := range dirs {
+		err := filepath.Walk(dir, func(path string, info os.FileInfo, err error) error {
+			if err != nil {
+				return err
+			}
+
+			if !info.IsDir() && strings.HasSuffix(path, ".lua") {
+				absPath, err := filepath.Abs(path)
+				if err != nil {
+					return err
+				}
+
+				if !existingFiles[absPath] {
+					fw.mu.Lock()
+					fw.files[absPath] = info.ModTime()
+					fw.mu.Unlock()
+
+					fmt.Printf("New file detected: %s\n", absPath)
+					newFilesFound = true
+				}
+			}
+			return nil
+		})
+		if err != nil {
+			continue
+		}
+	}
+
+	if newFilesFound {
+		now := time.Now()
+		if now.Sub(fw.lastEvent) > time.Duration(fw.debounceMs)*time.Millisecond {
+			fw.lastEvent = now
+			select {
+			case fw.restartCh <- true:
+			default:
+			}
+		}
+	}
+}
+
 func (fw *FileWatcher) Close() error {
 	select {
 	case fw.stopCh <- true: