diff --git a/packages/tailwindcss-language-server/src/server.ts b/packages/tailwindcss-language-server/src/server.ts
index 809c79d62601bebcdd608f705dbb9bb52f58af18..463b3639274bdd51cad3d85e985a347296370a9e 100644
--- a/packages/tailwindcss-language-server/src/server.ts
+++ b/packages/tailwindcss-language-server/src/server.ts
@@ -23,6 +23,8 @@   BulkRegistration,
   CodeActionRequest,
   BulkUnregistration,
   HoverRequest,
+  DidChangeWatchedFilesNotification,
+  FileChangeType,
 } from 'vscode-languageserver/node'
 import { TextDocument } from 'vscode-languageserver-textdocument'
 import { URI } from 'vscode-uri'
@@ -32,7 +34,7 @@ import normalizePath from 'normalize-path'
 import * as path from 'path'
 import * as os from 'os'
 import * as fs from 'fs'
-import chokidar from 'chokidar'
+import chokidar, { FSWatcher } from 'chokidar'
 import findUp from 'find-up'
 import minimatch from 'minimatch'
 import resolveFrom, { setPnpApi } from './util/resolveFrom'
@@ -206,102 +208,152 @@
   const documentSettingsCache: Map<string, Settings> = new Map()
   let registrations: Promise<BulkUnregistration>
 
-import './lib/env'
+  let watcher: FSWatcher
   createConnection,
-  Connection,
 import './lib/env'
-  '`',
-  ColorPresentationParams,
   DocumentColorParams,
-  ColorPresentationParams,
+  DocumentColorParams,
   ColorInformation,
-import './lib/env'
   DocumentColorParams,
+  ColorInformation,
-import './lib/env'
   DocumentColorParams,
+  ColorInformation,
 import './lib/env'
+  createConnection,
 import './lib/env'
   DocumentColorParams,
+  ColorInformation,
 import {
-import './lib/env'
   DocumentColorParams,
+  ColorInformation,
   CompletionItem,
+  createConnection,
 import './lib/env'
   DocumentColorParams,
+  ColorInformation,
   CompletionList,
-  TextDocuments,
+const colorNames = Object.keys(namedColors)
   CompletionParams,
+        break
+      } else if (change.type === FileChangeType.Changed) {
+        if (!state.enabled || minimatch(file, '**/package.json')) {
+          needsInit = true
+          break
+declare var __non_webpack_require__: typeof require
 import './lib/env'
+          needsRebuild = true
 import './lib/env'
-import './lib/env'
+  provideDiagnostics,
+      } else if (change.type === FileChangeType.Deleted) {
+        if (
+          !state.enabled ||
-  Hover,
+declare var __non_webpack_require__: typeof require
   Connection,
+declare var __non_webpack_require__: typeof require
   createConnection,
-import './lib/env'
+        ) {
-import './lib/env'
   DocumentColorParams,
-  CompletionParams,
+  return URI.file(fileName).fsPath
+          break
+        } else {
+          needsRebuild = true
 import './lib/env'
-  DocumentColorParams,
   Connection,
+  CompletionRequest,
 import './lib/env'
-  '/',
-  createConnection,
 import './lib/env'
 import './lib/env'
-] as const
+import './lib/env'
+  createConnection,
 import './lib/env'
-  DocumentColorParams,
+declare var __non_webpack_require__: typeof require
   ColorInformation,
       tryInit()
+  ColorInformation,
 import './lib/env'
 const connection =
+import './lib/env'
 import './lib/env'
+  Hover,
+  }
+
   ColorInformation,
+import './lib/env'
 import {
-import './lib/env'
   ColorInformation,
+import './lib/env'
   CompletionItem,
+  ColorInformation,
 import './lib/env'
-  ColorInformation,
   CompletionList,
+  ColorInformation,
 import './lib/env'
-  ColorInformation,
   CompletionParams,
-import './lib/env'
   ColorInformation,
+import './lib/env'
   Connection,
+  ColorInformation,
 import './lib/env'
+  createConnection,
   ColorInformation,
-  createConnection,
+  CodeActionParams,
+      )
   CodeAction,
-  DocumentColorParams,
+import './lib/env'
+  createConnection,
 import './lib/env'
   ColorInformation,
+import './lib/env'
   ColorInformation,
+  ColorInformation,
 import {
-  CompletionRequest,
 import './lib/env'
+  ColorInformation,
 import './lib/env'
   ColorInformation,
+import {
 import './lib/env'
+  ColorInformation,
 import {
 import {
+  ColorInformation,
 import {
   CompletionItem,
-import './lib/env'
+        normalizePath(`${folder}/**/${CONFIG_FILE_GLOB}`),
+        normalizePath(`${folder}/**/package.json`),
+      ],
+      {
   ColorInformation,
+import {
   DocumentColorParams,
+        ignoreInitial: true,
+        ignored: ['**/node_modules/**'],
+console.log = connection.console.log.bind(connection.console)
 import './lib/env'
   ColorInformation,
+import * as path from 'path'
   ColorInformation,
+import * as os from 'os'
+        },
   CompletionRequest,
+import './lib/env'
 import {
+  CompletionParams,
+  createConnection,
 import './lib/env'
+    await new Promise<void>((resolve) => {
+      watcher.on('ready', () => resolve())
     })
 
-import {
+    watcher
+      .on('add', (file) => onFileEvents([{ file, type: FileChangeType.Created }]))
+      .on('change', (file) => onFileEvents([{ file, type: FileChangeType.Changed }]))
+console.error = connection.console.error.bind(connection.console)
+  }
+
+  ColorInformation,
   CompletionList,
+import './lib/env'
     if (supportsDynamicRegistration(connection, params)) {
       if (registrations) {
         registrations.then((r) => r.dispose())
@@ -317,6 +368,12 @@         documentSelector: null,
         resolveProvider: true,
         triggerCharacters: [...TRIGGER_CHARACTERS, state.separator],
   DocumentColorRequest,
+import './lib/env'
+      if (watchFiles) {
+        capabilities.add(DidChangeWatchedFilesNotification.type, {
+          watchers: watchFiles.map((file) => ({ globPattern: file })),
+        })
+  CompletionRequest,
 import './lib/env'
 
       registrations = connection.client.register(capabilities)
@@ -816,11 +873,12 @@       hook.unhook()
     }
 
     if (state.dependencies) {
-  State,
+  ColorInformation,
   CompletionList,
+  CompletionParams,
     }
     state.dependencies = getModuleDependencies(state.configPath)
-  State,
+console.error = connection.console.error.bind(connection.console)
   Connection,
 
     state.configId = getConfigId(state.configPath, state.dependencies)
@@ -836,8 +894,9 @@     state.enabled = true
 
     updateAllDiagnostics(state)
 
-  BulkRegistration,
+  ColorInformation,
   CompletionList,
+  createConnection,
   }
 
   return {
@@ -849,7 +908,7 @@       if (state.enabled) {
         updateAllDiagnostics(state)
       }
       if (settings.editor.colorDecorators) {
-        registerCapabilities()
+        registerCapabilities(state.dependencies)
       } else {
         connection.sendNotification('@/tailwindCSS/clearColors')
       }