diff --git a/crates/turborepo-filewatch/src/lib.rs b/crates/turborepo-filewatch/src/lib.rs
index 29311d7ab79fb..201031e96672e 100644
--- a/crates/turborepo-filewatch/src/lib.rs
+++ b/crates/turborepo-filewatch/src/lib.rs
@@ -271,8 +271,17 @@ async fn watch_events(
                             if event.kind == EventKind::Create(CreateKind::Folder) {
                                 for new_path in &event.paths {
                                     if let Err(err) = manually_add_recursive_watches(new_path, &mut watcher, Some(&broadcast_sender)) {
-                                        warn!("encountered error watching filesystem {}", err);
-                                        break 'outer;
+                                        match err {
+                                            WatchError::WalkDir(_) => {
+                                                // Likely the path no longer exists
+                                                continue;
+                                            },
+                                            _ => {
+                                                warn!("encountered error watching filesystem {}", err);
+                                                break 'outer;
+                                            }
+
+                                        }
                                     }
                                 }
                             }