diff --git a/server/index.js b/server/index.js
index 750fdeaa..9fa6abf6 100755
--- a/server/index.js
+++ b/server/index.js
@@ -36,7 +36,6 @@ import {
     deleteProjectById,
     getProjectTaskMasterById,
     getProjectPathById,
-    clearProjectDirectoryCache,
     searchConversations,
 } from './projects.js';
 import { queryClaudeSDK, abortClaudeSDKSession, isClaudeSDKSessionActive, getActiveClaudeSDKSessions, resolveToolApproval, getPendingApprovalsForSession, reconnectSessionWriter } from './claude-sdk.js';
@@ -68,149 +67,7 @@ import { getConnectableHost } from '../shared/networkHosts.js';
 
 const VALID_PROVIDERS = ['claude', 'codex', 'cursor', 'gemini'];
 
-// File system watchers for provider project/session folders
-const PROVIDER_WATCH_PATHS = [
-    { provider: 'claude', rootPath: path.join(os.homedir(), '.claude', 'projects') },
-    { provider: 'cursor', rootPath: path.join(os.homedir(), '.cursor', 'chats') },
-    { provider: 'codex', rootPath: path.join(os.homedir(), '.codex', 'sessions') },
-    { provider: 'gemini', rootPath: path.join(os.homedir(), '.gemini', 'projects') },
-    { provider: 'gemini_sessions', rootPath: path.join(os.homedir(), '.gemini', 'sessions') }
-];
-const WATCHER_IGNORED_PATTERNS = [
-    '**/node_modules/**',
-    '**/.git/**',
-    '**/dist/**',
-    '**/build/**',
-    '**/*.tmp',
-    '**/*.swp',
-    '**/.DS_Store'
-];
-const WATCHER_DEBOUNCE_MS = 300;
-let projectsWatchers = [];
-let projectsWatcherDebounceTimer = null;
-const connectedClients = new Set();
-let isGetProjectsRunning = false; // Flag to prevent reentrant calls
-
-// Broadcast progress to all connected WebSocket clients
-function broadcastProgress(progress) {
-    const message = JSON.stringify({
-        type: 'loading_progress',
-        ...progress
-    });
-    connectedClients.forEach(client => {
-        if (client.readyState === WebSocket.OPEN) {
-            client.send(message);
-        }
-    });
-}
-
-// Setup file system watchers for Claude, Cursor, and Codex project/session folders
-async function setupProjectsWatcher() {
-    const chokidar = (await import('chokidar')).default;
-
-    if (projectsWatcherDebounceTimer) {
-        clearTimeout(projectsWatcherDebounceTimer);
-        projectsWatcherDebounceTimer = null;
-    }
-
-    await Promise.all(
-        projectsWatchers.map(async (watcher) => {
-            try {
-                await watcher.close();
-            } catch (error) {
-                console.error('[WARN] Failed to close watcher:', error);
-            }
-        })
-    );
-    projectsWatchers = [];
-
-    const debouncedUpdate = (eventType, filePath, provider, rootPath) => {
-        if (projectsWatcherDebounceTimer) {
-            clearTimeout(projectsWatcherDebounceTimer);
-        }
-
-        projectsWatcherDebounceTimer = setTimeout(async () => {
-            // Prevent reentrant calls
-            if (isGetProjectsRunning) {
-                return;
-            }
-
-            try {
-                isGetProjectsRunning = true;
-
-                // Clear project directory cache when files change
-                clearProjectDirectoryCache();
-
-                // Get updated projects list
-                const updatedProjects = await getProjectsWithSessions(broadcastProgress);
-
-                // Notify all connected clients about the project changes
-                const updateMessage = JSON.stringify({
-                    type: 'projects_updated',
-                    projects: updatedProjects,
-                    timestamp: new Date().toISOString(),
-                    changeType: eventType,
-                    changedFile: path.relative(rootPath, filePath),
-                    watchProvider: provider
-                });
-
-                connectedClients.forEach(client => {
-                    if (client.readyState === WebSocket.OPEN) {
-                        client.send(updateMessage);
-                    }
-                });
-
-            } catch (error) {
-                console.error('[ERROR] Error handling project changes:', error);
-            } finally {
-                isGetProjectsRunning = false;
-            }
-        }, WATCHER_DEBOUNCE_MS);
-    };
-
-    for (const { provider, rootPath } of PROVIDER_WATCH_PATHS) {
-        try {
-            // chokidar v4 emits ENOENT via the "error" event for missing roots and will not auto-recover.
-            // Ensure provider folders exist before creating the watcher so watching stays active.
-            await fsPromises.mkdir(rootPath, { recursive: true });
-
-            // Initialize chokidar watcher with optimized settings
-            const watcher = chokidar.watch(rootPath, {
-                ignored: WATCHER_IGNORED_PATTERNS,
-                persistent: true,
-                ignoreInitial: true, // Don't fire events for existing files on startup
-                followSymlinks: false,
-                depth: 10, // Reasonable depth limit
-                awaitWriteFinish: {
-                    stabilityThreshold: 100, // Wait 100ms for file to stabilize
-                    pollInterval: 50
-                }
-            });
-
-            // Set up event listeners
-            watcher
-                .on('add', (filePath) => debouncedUpdate('add', filePath, provider, rootPath))
-                .on('change', (filePath) => debouncedUpdate('change', filePath, provider, rootPath))
-                .on('unlink', (filePath) => debouncedUpdate('unlink', filePath, provider, rootPath))
-                .on('addDir', (dirPath) => debouncedUpdate('addDir', dirPath, provider, rootPath))
-                .on('unlinkDir', (dirPath) => debouncedUpdate('unlinkDir', dirPath, provider, rootPath))
-                .on('error', (error) => {
-                    console.error(`[ERROR] ${provider} watcher error:`, error);
-                })
-                .on('ready', () => {
-                });
-
-            projectsWatchers.push(watcher);
-        } catch (error) {
-            console.error(`[ERROR] Failed to setup ${provider} watcher for ${rootPath}:`, error);
-        }
-    }
-
-    if (projectsWatchers.length === 0) {
-        console.error('[ERROR] Failed to setup any provider watchers');
-    }
-}
-
+export const connectedClients = new Set();
 
 const app = express();
 const server = http.createServer(app);
@@ -219,6 +76,7 @@ const ptySessionsMap = new Map();
 const PTY_SESSION_TIMEOUT = 30 * 60 * 1000;
 const SHELL_URL_PARSE_BUFFER_LIMIT = 32768;
 import { stripAnsiSequences, normalizeDetectedUrl, extractUrlsFromText, shouldAutoOpenUrlFromOutput } from './utils/url-detection.js';
+import { closeSessionsWatcher, initializeSessionsWatcher } from '@/modules/providers/index.js';
 
 // Single WebSocket server that handles both paths
 const wss = new WebSocketServer({
@@ -431,7 +289,7 @@ app.post('/api/system/update', authenticateToken, async (req, res) => {
 
 app.get('/api/projects', authenticateToken, async (req, res) => {
     try {
-        const projects = await getProjectsWithSessions(broadcastProgress);
+        const projects = await getProjectsWithSessions();
         res.json(projects);
     } catch (error) {
         res.status(500).json({ error: error.message });
@@ -2373,7 +2231,7 @@ async function startServer() {
             console.log('');
 
             // Start watching the projects folder for changes
-            await setupProjectsWatcher();
+            await initializeSessionsWatcher();
 
             // await getProjectsWithSessions(); // TODO: REMOVE THIS
             // Start server-side plugin processes for enabled plugins
@@ -2382,6 +2240,7 @@ async function startServer() {
             });
         });
 
+        await closeSessionsWatcher();
         // Clean up plugin processes on shutdown
         const shutdownPlugins = async () => {
             await stopAllPlugins();
diff --git a/server/modules/database/repositories/sessions.db.ts b/server/modules/database/repositories/sessions.db.ts
index 8e3571db..2cf3a83c 100644
--- a/server/modules/database/repositories/sessions.db.ts
+++ b/server/modules/database/repositories/sessions.db.ts
@@ -76,7 +76,7 @@ export const sessionsDb = {
     createdAt?: string,
     updatedAt?: string,
     jsonlPath?: string | null
-  ): void {
+  ): string {
     const db = getConnection();
     const createdAtValue = normalizeTimestamp(createdAt);
     const updatedAtValue = normalizeTimestamp(updatedAt);
@@ -103,6 +103,8 @@ export const sessionsDb = {
       createdAtValue,
       updatedAtValue
     );
+
+    return sessionId;
   },
 
   updateSessionCustomName(sessionId: string, customName: string): void {
diff --git a/server/modules/projects/services/projects.service.ts b/server/modules/projects/services/projects.service.ts
index 5967d54d..62d6aee7 100644
--- a/server/modules/projects/services/projects.service.ts
+++ b/server/modules/projects/services/projects.service.ts
@@ -4,6 +4,7 @@ import path from 'node:path';
 import { projectsDb, sessionsDb } from '@/modules/database/index.js';
 import { sessionSynchronizerService } from '@/modules/providers/index.js';
 import { findAppRoot, getModuleDir } from '@/utils/runtime-paths.js';
+import { connectedClients } from '@/index.js';
 
 type SessionSummary = {
   id: string;
@@ -35,9 +36,12 @@ export type ProjectsSnapshot = {
   projects: ProjectListItem[];
 };
 
-type ProgressCallback =
-  | ((progress: { phase: 'loading' | 'complete'; current: number; total: number; currentProject?: string }) => void)
-  | null;
+type ProgressUpdate = {
+  phase: 'loading' | 'complete';
+  current: number;
+  total: number;
+  currentProject?: string;
+};
 
 const __dirname = getModuleDir(import.meta.url);
 const APP_ROOT = findAppRoot(__dirname);
@@ -172,10 +176,24 @@ export async function writeSnapshot(projects: ProjectListItem[]): Promise<void>
   }
 }
 
+// Broadcast progress to all connected WebSocket clients
+function broadcastProgress(progress: ProgressUpdate) {
+  const message = JSON.stringify({
+    type: 'loading_progress',
+    ...progress,
+  });
+
+  connectedClients.forEach((client: any) => {
+    if (client.readyState === WebSocket.OPEN) {
+      client.send(message);
+    }
+  });
+}
+
 /**
  * Reads all projects from DB and returns provider-bucketed session summaries.
  */
-export async function getProjectsWithSessions(progressCallback: ProgressCallback = null): Promise<ProjectListItem[]> {
+export async function getProjectsWithSessions(): Promise<ProjectListItem[]> {
   await sessionSynchronizerService.synchronizeSessions();
 
   const projectRows = projectsDb.getProjectPaths() as Array<{
@@ -193,14 +211,12 @@ export async function getProjectsWithSessions(progressCallback: ProgressCallback
     const projectId = row.project_id;
     const projectPath = row.project_path;
 
-    if (progressCallback) {
-      progressCallback({
-        phase: 'loading',
-        current: processedProjects,
-        total: totalProjects,
-        currentProject: projectPath,
-      });
-    }
+    broadcastProgress({
+      phase: 'loading',
+      current: processedProjects,
+      total: totalProjects,
+      currentProject: projectPath,
+    });
 
     const displayName =
       row.custom_project_name && row.custom_project_name.trim().length > 0
@@ -227,13 +243,11 @@ export async function getProjectsWithSessions(progressCallback: ProgressCallback
     });
   }
 
-  if (progressCallback) {
-    progressCallback({
-      phase: 'complete',
-      current: totalProjects,
-      total: totalProjects,
-    });
-  }
+  broadcastProgress({
+    phase: 'complete',
+    current: totalProjects,
+    total: totalProjects,
+  });
 
   await writeSnapshot(projects);
   return projects;
diff --git a/server/modules/providers/list/claude/claude-session-synchronizer.provider.ts b/server/modules/providers/list/claude/claude-session-synchronizer.provider.ts
index a21b1046..7d089a2d 100644
--- a/server/modules/providers/list/claude/claude-session-synchronizer.provider.ts
+++ b/server/modules/providers/list/claude/claude-session-synchronizer.provider.ts
@@ -61,19 +61,19 @@ export class ClaudeSessionSynchronizer implements IProviderSessionSynchronizer {
   /**
    * Parses and upserts one Claude session JSONL file.
    */
-  async synchronizeFile(filePath: string): Promise<boolean> {
+  async synchronizeFile(filePath: string): Promise<string | null> {
     if (!filePath.endsWith('.jsonl')) {
-      return false;
+      return null;
     }
 
     const nameMap = await buildLookupMap(path.join(this.claudeHome, 'history.jsonl'), 'sessionId', 'display');
     const parsed = await this.processSessionFile(filePath, nameMap);
     if (!parsed) {
-      return false;
+      return null;
     }
 
     const timestamps = await readFileTimestamps(filePath);
-    sessionsDb.createSession(
+    return sessionsDb.createSession(
       parsed.sessionId,
       this.provider,
       parsed.projectPath,
@@ -82,8 +82,6 @@ export class ClaudeSessionSynchronizer implements IProviderSessionSynchronizer {
       timestamps.updatedAt,
       filePath
     );
-
-    return true;
   }
 
   /**
diff --git a/server/modules/providers/list/codex/codex-session-synchronizer.provider.ts b/server/modules/providers/list/codex/codex-session-synchronizer.provider.ts
index 64d601af..5f3ee207 100644
--- a/server/modules/providers/list/codex/codex-session-synchronizer.provider.ts
+++ b/server/modules/providers/list/codex/codex-session-synchronizer.provider.ts
@@ -61,19 +61,19 @@ export class CodexSessionSynchronizer implements IProviderSessionSynchronizer {
   /**
    * Parses and upserts one Codex session JSONL file.
    */
-  async synchronizeFile(filePath: string): Promise<boolean> {
+  async synchronizeFile(filePath: string): Promise<string | null> {
     if (!filePath.endsWith('.jsonl')) {
-      return false;
+      return null;
     }
 
     const nameMap = await buildLookupMap(path.join(this.codexHome, 'session_index.jsonl'), 'id', 'thread_name');
     const parsed = await this.processSessionFile(filePath, nameMap);
     if (!parsed) {
-      return false;
+      return null;
     }
 
     const timestamps = await readFileTimestamps(filePath);
-    sessionsDb.createSession(
+    return sessionsDb.createSession(
       parsed.sessionId,
       this.provider,
       parsed.projectPath,
@@ -82,8 +82,6 @@ export class CodexSessionSynchronizer implements IProviderSessionSynchronizer {
       timestamps.updatedAt,
       filePath
     );
-
-    return true;
   }
 
   /**
diff --git a/server/modules/providers/list/cursor/cursor-session-synchronizer.provider.ts b/server/modules/providers/list/cursor/cursor-session-synchronizer.provider.ts
index b0e89b12..4be02dee 100644
--- a/server/modules/providers/list/cursor/cursor-session-synchronizer.provider.ts
+++ b/server/modules/providers/list/cursor/cursor-session-synchronizer.provider.ts
@@ -91,18 +91,18 @@ export class CursorSessionSynchronizer implements IProviderSessionSynchronizer {
   /**
    * Parses and upserts one Cursor session JSONL file.
    */
-  async synchronizeFile(filePath: string): Promise<boolean> {
+  async synchronizeFile(filePath: string): Promise<string | null> {
     if (!filePath.endsWith('.jsonl')) {
-      return false;
+      return null;
     }
 
     const parsed = await this.processSessionFile(filePath);
     if (!parsed) {
-      return false;
+      return null;
     }
 
     const timestamps = await readFileTimestamps(filePath);
-    sessionsDb.createSession(
+    return sessionsDb.createSession(
       parsed.sessionId,
       this.provider,
       parsed.projectPath,
@@ -111,8 +111,6 @@ export class CursorSessionSynchronizer implements IProviderSessionSynchronizer {
       timestamps.updatedAt,
       filePath
     );
-
-    return true;
   }
 
   /**
diff --git a/server/modules/providers/list/gemini/gemini-session-synchronizer.provider.ts b/server/modules/providers/list/gemini/gemini-session-synchronizer.provider.ts
index 2cf8ecc3..a2fd4085 100644
--- a/server/modules/providers/list/gemini/gemini-session-synchronizer.provider.ts
+++ b/server/modules/providers/list/gemini/gemini-session-synchronizer.provider.ts
@@ -72,25 +72,25 @@ export class GeminiSessionSynchronizer implements IProviderSessionSynchronizer {
   /**
    * Parses and upserts one Gemini session JSON artifact.
    */
-  async synchronizeFile(filePath: string): Promise<boolean> {
+  async synchronizeFile(filePath: string): Promise<string | null> {
     if (!filePath.endsWith('.json')) {
-      return false;
+      return null;
     }
 
     if (
       filePath.startsWith(path.join(this.geminiHome, 'tmp'))
       && !filePath.includes(`${path.sep}chats${path.sep}`)
     ) {
-      return false;
+      return null;
     }
 
     const parsed = await this.processSessionFile(filePath);
     if (!parsed) {
-      return false;
+      return null;
     }
 
     const timestamps = await readFileTimestamps(filePath);
-    sessionsDb.createSession(
+    return sessionsDb.createSession(
       parsed.sessionId,
       this.provider,
       parsed.projectPath,
@@ -99,8 +99,6 @@ export class GeminiSessionSynchronizer implements IProviderSessionSynchronizer {
       timestamps.updatedAt,
       filePath
     );
-
-    return true;
   }
 
   /**
diff --git a/server/modules/providers/services/session-synchronizer.service.ts b/server/modules/providers/services/session-synchronizer.service.ts
index c5afaec0..d0279a86 100644
--- a/server/modules/providers/services/session-synchronizer.service.ts
+++ b/server/modules/providers/services/session-synchronizer.service.ts
@@ -168,10 +168,14 @@ export const sessionSynchronizerService = {
   async synchronizeProviderFile(
     provider: LLMProvider,
     filePath: string
-  ): Promise<{ provider: LLMProvider; indexed: boolean }> {
+  ): Promise<{ provider: LLMProvider; indexed: boolean; sessionId: string | null }> {
     const resolvedProvider = providerRegistry.resolveProvider(provider);
-    const indexed = await resolvedProvider.sessionSynchronizer.synchronizeFile(filePath);
-    return { provider, indexed };
+    const sessionId = await resolvedProvider.sessionSynchronizer.synchronizeFile(filePath);
+    return {
+      provider,
+      indexed: Boolean(sessionId),
+      sessionId,
+    };
   },
 
   /**
diff --git a/server/modules/providers/services/sessions-watcher.service.ts b/server/modules/providers/services/sessions-watcher.service.ts
index b5eb5c84..911f6e64 100644
--- a/server/modules/providers/services/sessions-watcher.service.ts
+++ b/server/modules/providers/services/sessions-watcher.service.ts
@@ -6,6 +6,8 @@ import chokidar, { type FSWatcher } from 'chokidar';
 
 import { sessionSynchronizerService } from '@/modules/providers/services/session-synchronizer.service.js';
 import type { LLMProvider } from '@/shared/types.js';
+import { getProjectsWithSessions } from '@/modules/projects/index.js';
+import { connectedClients } from '@/index.js';
 
 type WatcherEventType = 'add' | 'change';
 
@@ -43,6 +45,7 @@ const WATCHER_IGNORED_PATTERNS = [
 ];
 
 const watchers: FSWatcher[] = [];
+const WS_OPEN_STATE = 1;
 
 /**
  * Filters watcher events to provider-specific session artifact file types.
@@ -69,9 +72,31 @@ async function onUpdate(
 
   try {
     const result = await sessionSynchronizerService.synchronizeProviderFile(provider, filePath);
+
+    // Get updated projects list
+    const updatedProjects = await getProjectsWithSessions();
+
+    // Notify all connected clients about the project changes
+    const updateMessage = JSON.stringify({
+      type: 'projects_updated',
+      projects: updatedProjects,
+      timestamp: new Date().toISOString(),
+      changeType: eventType,
+      updatedSessionId: result.sessionId ?? undefined,
+      watchProvider: provider
+    });
+
+    connectedClients.forEach(client => {
+      if (client.readyState === WS_OPEN_STATE) {
+        client.send(updateMessage);
+      }
+    });
+
+
     console.log(`Session watcher sync complete for provider "${provider}" after ${eventType}`, {
       filePath,
       indexed: result.indexed,
+      sessionId: result.sessionId,
     });
   } catch (error) {
     const message = error instanceof Error ? error.message : String(error);
diff --git a/server/shared/interfaces.ts b/server/shared/interfaces.ts
index b1f436a6..c5354dda 100644
--- a/server/shared/interfaces.ts
+++ b/server/shared/interfaces.ts
@@ -88,5 +88,5 @@ export interface IProviderSessionSynchronizer {
   /**
    * Parses and upserts one provider artifact file without running a full scan.
    */
-  synchronizeFile(filePath: string): Promise<boolean>;
+  synchronizeFile(filePath: string): Promise<string | null>;
 }
diff --git a/src/hooks/useProjectsState.ts b/src/hooks/useProjectsState.ts
index bb8bf6d5..26bdd853 100644
--- a/src/hooks/useProjectsState.ts
+++ b/src/hooks/useProjectsState.ts
@@ -311,20 +311,12 @@ export function useProjectsState({
 
     const projectsMessage = latestMessage as ProjectsUpdatedMessage;
 
-    if (projectsMessage.changedFile && selectedSession && selectedProject) {
-      const normalized = projectsMessage.changedFile.replace(/\\/g, '/');
-      const changedFileParts = normalized.split('/');
+    if (projectsMessage.updatedSessionId && selectedSession && selectedProject) {
+      if (projectsMessage.updatedSessionId === selectedSession.id) {
+        const isSessionActive = activeSessions.has(selectedSession.id);
 
-      if (changedFileParts.length >= 2) {
-        const filename = changedFileParts[changedFileParts.length - 1];
-        const changedSessionId = filename.replace('.jsonl', '');
-
-        if (changedSessionId === selectedSession.id) {
-          const isSessionActive = activeSessions.has(selectedSession.id);
-
-          if (!isSessionActive) {
-            setExternalMessageUpdate((prev) => prev + 1);
-          }
+        if (!isSessionActive) {
+          setExternalMessageUpdate((prev) => prev + 1);
         }
       }
     }
diff --git a/src/types/app.ts b/src/types/app.ts
index b586b68e..77da1613 100644
--- a/src/types/app.ts
+++ b/src/types/app.ts
@@ -62,7 +62,7 @@ export interface LoadingProgress {
 export interface ProjectsUpdatedMessage {
   type: 'projects_updated';
   projects: Project[];
-  changedFile?: string;
+  updatedSessionId?: string;
   [key: string]: unknown;
 }