diff --git a/src/Bundler.js b/src/Bundler.js
index bd2aebfa26d..1734932d4b9 100644
--- a/src/Bundler.js
+++ b/src/Bundler.js
@@ -35,6 +35,7 @@ class Bundler extends EventEmitter {
 
     this.pending = false;
     this.loadedAssets = new Map();
+    this.watchedAssets = new Map();
     this.farm = null;
     this.watcher = null;
     this.hmr = null;
@@ -267,11 +268,35 @@ class Bundler extends EventEmitter {
     let asset = this.parser.getAsset(path, pkg, this.options);
     this.loadedAssets.set(path, asset);
 
-    if (this.watcher) {
+    this.watch(path, asset);
+    return asset;
+  }
+
+  watch(path, asset) {
+    if (!this.watcher) {
+      return;
+    }
+
+    if (!this.watchedAssets.has(path)) {
       this.watcher.add(path);
+      this.watchedAssets.set(path, new Set());
     }
 
-    return asset;
+    this.watchedAssets.get(path).add(asset);
+  }
+
+  unwatch(path, asset) {
+    if (!this.watchedAssets.has(path)) {
+      return;
+    }
+
+    let watched = this.watchedAssets.get(path);
+    watched.delete(asset);
+
+    if (watched.size === 0) {
+      this.watchedAssets.delete(path);
+      this.watcher.unwatch(path);
+    }
   }
 
   async resolveDep(asset, dep) {
@@ -339,26 +364,25 @@ class Bundler extends EventEmitter {
     // Resolve and load asset dependencies
     let assetDeps = await Promise.all(
       dependencies.map(async dep => {
-        let assetDep = await this.resolveDep(asset, dep);
-        if (!dep.includedInParent) {
+        if (dep.includedInParent) {
+          // This dependency is already included in the parent's generated output,
+          // so no need to load it. We map the name back to the parent asset so
+          // that changing it triggers a recompile of the parent.
+          this.watch(dep.name, asset);
+        } else {
+          let assetDep = await this.resolveDep(asset, dep);
           await this.loadAsset(assetDep);
+          return assetDep;
         }
-
-        return assetDep;
       })
     );
 
     // Store resolved assets in their original order
     dependencies.forEach((dep, i) => {
+      asset.dependencies.set(dep.name, dep);
       let assetDep = assetDeps[i];
-      if (dep.includedInParent) {
-        // This dependency is already included in the parent's generated output,
-        // so no need to load it. We map the name back to the parent asset so
-        // that changing it triggers a recompile of the parent.
-        this.loadedAssets.set(dep.name, asset);
-      } else {
-        asset.dependencies.set(dep.name, dep);
-        asset.depAssets.set(dep.name, assetDep);
+      if (assetDep) {
+        asset.depAssets.set(dep, assetDep);
       }
     });
 
@@ -421,8 +445,7 @@ class Bundler extends EventEmitter {
 
     asset.parentBundle = bundle;
 
-    for (let dep of asset.dependencies.values()) {
-      let assetDep = asset.depAssets.get(dep.name);
+    for (let [dep, assetDep] of asset.depAssets) {
       this.createBundleTree(assetDep, dep, bundle);
     }
 
@@ -463,21 +486,31 @@ class Bundler extends EventEmitter {
   unloadAsset(asset) {
     this.loadedAssets.delete(asset.name);
     if (this.watcher) {
-      this.watcher.unwatch(asset.name);
+      this.unwatch(asset.name, asset);
+
+      // Unwatch all included dependencies that map to this asset
+      for (let dep of asset.dependencies.values()) {
+        if (dep.includedInParent) {
+          this.unwatch(dep.name, asset);
+        }
+      }
     }
   }
 
   async onChange(path) {
-    let asset = this.loadedAssets.get(path);
-    if (!asset) {
+    let assets = this.watchedAssets.get(path);
+    if (!assets || !assets.size) {
       return;
     }
 
     this.logger.clear();
-    this.logger.status(emoji.progress, `Building ${asset.basename}...`);
+    this.logger.status(emoji.progress, `Building ${Path.basename(path)}...`);
 
     // Add the asset to the rebuild queue, and reset the timeout.
-    this.buildQueue.add(asset);
+    for (let asset of assets) {
+      this.buildQueue.add(asset);
+    }
+
     clearTimeout(this.rebuildTimeout);
 
     this.rebuildTimeout = setTimeout(async () => {
diff --git a/src/HMRServer.js b/src/HMRServer.js
index 620d34eabd5..516374c1a72 100644
--- a/src/HMRServer.js
+++ b/src/HMRServer.js
@@ -57,9 +57,8 @@ class HMRServer {
         type: 'update',
         assets: assets.map(asset => {
           let deps = {};
-          for (let dep of asset.dependencies.values()) {
-            let mod = asset.depAssets.get(dep.name);
-            deps[dep.name] = mod.id;
+          for (let [dep, depAsset] of asset.depAssets) {
+            deps[dep.name] = depAsset.id;
           }
 
           return {
diff --git a/src/packagers/JSPackager.js b/src/packagers/JSPackager.js
index 1776807fe37..1fabad6103a 100644
--- a/src/packagers/JSPackager.js
+++ b/src/packagers/JSPackager.js
@@ -36,9 +36,7 @@ class JSPackager extends Packager {
     }
 
     let deps = {};
-    for (let dep of asset.dependencies.values()) {
-      let mod = asset.depAssets.get(dep.name);
-
+    for (let [dep, mod] of asset.depAssets) {
       // For dynamic dependencies, list the child bundles to load along with the module id
       if (dep.dynamic && this.bundle.childBundles.has(mod.parentBundle)) {
         let bundles = [path.basename(mod.parentBundle.name)];
diff --git a/src/utils/config.js b/src/utils/config.js
index 720c1e351db..eb8eed4618d 100644
--- a/src/utils/config.js
+++ b/src/utils/config.js
@@ -21,8 +21,6 @@ async function resolve(filepath, filenames, root = path.parse(filepath).root) {
       existsCache.set(file, true);
       return file;
     }
-
-    existsCache.set(file, false);
   }
 
   return resolve(filepath, filenames, root);
diff --git a/test/integration/babel/.babelrc b/test/integration/babel/.babelrc
new file mode 100644
index 00000000000..15edf6beb98
--- /dev/null
+++ b/test/integration/babel/.babelrc
@@ -0,0 +1,7 @@
+{
+  "presets": [["env", {
+    "targets": {
+      "browsers": ["last 2 Chrome versions"]
+    }
+  }]]
+}
diff --git a/test/integration/babel/.eslintrc.json b/test/integration/babel/.eslintrc.json
new file mode 100644
index 00000000000..f89e231fa93
--- /dev/null
+++ b/test/integration/babel/.eslintrc.json
@@ -0,0 +1,6 @@
+{
+  "extends": "../.eslintrc.json",
+  "parserOptions": {
+    "sourceType": "module"
+  }
+}
\ No newline at end of file
diff --git a/test/integration/babel/foo.js b/test/integration/babel/foo.js
new file mode 100644
index 00000000000..7804111002d
--- /dev/null
+++ b/test/integration/babel/foo.js
@@ -0,0 +1 @@
+export default class Foo {}
diff --git a/test/integration/babel/index.js b/test/integration/babel/index.js
new file mode 100644
index 00000000000..37a72cf028f
--- /dev/null
+++ b/test/integration/babel/index.js
@@ -0,0 +1,4 @@
+import Foo from './foo';
+
+export {Foo};
+export class Bar {}
diff --git a/test/watcher.js b/test/watcher.js
index 25f1724f631..8f7b1898af0 100644
--- a/test/watcher.js
+++ b/test/watcher.js
@@ -172,4 +172,26 @@ describe('watcher', function() {
 
     assert(!b.loadedAssets.has(path.join(__dirname, '/input/common-dep.js')));
   });
+
+  it('should recompile all assets when a config file changes', async function() {
+    await ncp(__dirname + '/integration/babel', __dirname + '/input');
+    b = bundler(__dirname + '/input/index.js', {watch: true});
+
+    await b.bundle();
+    let file = fs.readFileSync(__dirname + '/dist/index.js', 'utf8');
+    assert(file.includes('class Foo {}'));
+    assert(file.includes('class Bar {}'));
+
+    // Change babelrc, should recompile both files
+    let babelrc = JSON.parse(
+      fs.readFileSync(__dirname + '/input/.babelrc', 'utf8')
+    );
+    babelrc.presets[0][1].targets.browsers.push('IE >= 11');
+    fs.writeFileSync(__dirname + '/input/.babelrc', JSON.stringify(babelrc));
+
+    await nextBundle(b);
+    file = fs.readFileSync(__dirname + '/dist/index.js', 'utf8');
+    assert(!file.includes('class Foo {}'));
+    assert(!file.includes('class Bar {}'));
+  });
 });