diff --git a/README.md b/README.md
index 912b582..2dd4190 100644
--- a/README.md
+++ b/README.md
@@ -641,11 +641,27 @@ A common local-development setup is to build a shared library in its own repo (w
 
 Since Native Federation shares such a library as an _external_ (it is excluded from Angular's own build), a plain `ng serve` used to ignore edits to it — the change lived under `node_modules`, which the build watcher skips, so you had to clear the cache or restart the dev server to see it. Since version `22.0.6` (requires `@softarc/native-federation` ≥ `4.3.2`), the adapter detects linked shared packages and re-bundles them automatically on change.
 
+Two things about that detection have since changed (requires `@softarc/native-federation` ≥ `4.5.0`):
+
+- **A symlink alone no longer counts as linked.** Package managers that symlink by default — pnpm's default `isolated` linker, or Yarn's `nodeLinker: pnpm` — make _every_ dependency a symlink, which used to put the whole dependency graph on the watch list. A package is now treated as a live checkout only when its real path resolves **outside** every `node_modules` tree, which is exactly what `npm link` produces and what a package manager's internal symlink does not.
+- **Watching linked packages is opt-in**, via the `watchLinkedDeps` builder option below. It is off by default because watching means polling the linked checkout for as long as the dev server runs.
+
+Turning the option off does **not** mean edits to a linked library are ignored. A library's type declarations are a TypeScript input, and the adapter resolves them to their real path outside `node_modules` — so an ng-packagr rebuild, which rewrites `dist/*.d.ts` alongside the JavaScript, is already noticed and re-bundled with the option off. What the option adds is coverage of changes that touch no such input: a JavaScript-only edit, or a rebuild whose emitted types come out byte-identical.
+
+A cold `ng build` re-bundles a changed linked library either way, since the adapter checksums each linked package's content on every build. A running `ng serve` is weaker: with the option off, a change touching no watched input can stay stale until you restart the server or run a build.
+
+So that the default is never a silent surprise, a watching build that finds a linked shared package while the option is off says so once at startup:
+
+```
+INFO  Detected npm-linked shared packages: @my-scope/my-lib. Set 'watchLinkedDeps' to true to rebuild when they change.
+```
+
 #### Requirements
 
 - The library is listed in your `federation.config.*` `shared` section (via `shareAll`, an explicit `shared` entry, or `sharedMappings`).
-- Its package directory under `node_modules` is a **symlink** — i.e. it was linked with `npm link` (or your package manager's equivalent), not installed from a registry.
+- Its package directory under `node_modules` is a **symlink pointing outside `node_modules`** — i.e. it was linked with `npm link` (or your package manager's equivalent), not installed from a registry and not symlinked by your package manager's own linker.
 - The library is rebuilt on change so the symlink target actually updates. With an Angular library this means running `ng build --watch` (ng-packagr) in the library's repo.
+- For the changes an ng-packagr rebuild does not cover on its own — see above — `watchLinkedDeps` is set to `true` on the builder target you are running.
 
 #### Workflow
 
@@ -663,13 +679,33 @@ npm link @my-scope/my-lib
 ng serve
 ```
 
+Watching is opt-in, so enable it on the target you serve with:
+
+```json
+"serve": {
+  "builder": "@angular-architects/native-federation:build",
+  "options": {
+    "target": "host:serve-original:development",
+    "watchLinkedDeps": true
+  }
+}
+```
+
+The option is available on both the `:build` and `:remote` builders and defaults to `false`.
+
 Now edit a source file in the library. ng-packagr rebuilds its `dist/`, and the adapter picks up the change, re-bundles the affected shared external, and logs `Done!` — no manual cache clear or dev-server restart needed.
 
 To also refresh the browser automatically when the rebuild finishes, enable SSE-based reloading as described in [Shell reloading when MFE finishes building for local development](#shell-reloading-when-mfe-finishes-building-for-local-development) (`initFederation(manifest, { sse: true })`). Otherwise, a manual browser refresh will show the update.
 
 #### How it works
 
-The adapter resolves the real path of each symlinked shared package and adds it to the federation file watcher. Because linked packages live under `node_modules`, they are watched via polling, and a short debounce coalesces ng-packagr's atomic multi-file writes into a single rebuild. Only the shared externals affected by the change are re-bundled; regular (registry-installed) dependencies keep the version-only cache fast path, so there is no rebuild churn or performance regression for non-linked packages.
+The adapter resolves the real path of each shared package and treats it as a live checkout when that path lies outside every `node_modules` tree. With `watchLinkedDeps` enabled, those directories are added to the federation file watcher; a short debounce coalesces ng-packagr's atomic multi-file writes into a single rebuild. Only the shared externals affected by the change are re-bundled; regular (registry-installed) dependencies keep the version-only cache fast path, so there is no rebuild churn or performance regression for non-linked packages.
+
+Watching a linked checkout polls it, which is why it is off by default: a registry dependency is bundled once and cached by checksum, so its bytes cannot change without its version changing, and watching it could never change an outcome. Only a linked checkout changes content under a fixed version.
+
+Angular draws the same line but wires it to `preserveSymlinks`: when it watches the project root it ignores `**/node_modules/**`, and skips that ignore when `preserveSymlinks` is on, precisely so `npm link` keeps working. It has to overload one flag because its resolver decides which path esbuild sees. The adapter does not, because it resolves each shared package's real path itself — so `watchLinkedDeps` governs watching and nothing else.
+
+That separation is worth keeping, so do **not** reach for `preserveSymlinks` here. It changes module resolution: it is the classic route to loading two copies of a singleton like `@angular/core`, and under pnpm it makes every dependency resolve through `.pnpm`. It would also shrink the watch set rather than grow it, since the adapter skips any path with a `node_modules` segment and `preserveSymlinks` is exactly what makes a linked library's files report as `node_modules/@my-scope/my-lib/…` instead of their real location.
 
 ## FAQ
 
diff --git a/package.json b/package.json
index dcfb635..cb00e2f 100644
--- a/package.json
+++ b/package.json
@@ -17,11 +17,12 @@
     "@angular-devkit/core": "~22.1.0",
     "@angular-devkit/schematics": "~22.1.0",
     "@chialab/esbuild-plugin-commonjs": "^0.19.0",
-    "@softarc/native-federation": "^4.4.0",
+    "@softarc/native-federation": "~4.5.0-next.1",
     "@softarc/native-federation-orchestrator": "^4.5.2",
     "es-module-shims": "^2.8.0",
     "esbuild": "^0.28.0",
-    "mrmime": "^2.0.1"
+    "mrmime": "^2.0.1",
+    "watchpack": "^2.5.2"
   },
   "repository": {
     "type": "git",
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 9353527..4f55cc3 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -24,8 +24,8 @@ importers:
         specifier: ^0.19.0
         version: 0.19.1
       '@softarc/native-federation':
-        specifier: ^4.4.0
-        version: 4.4.1(typescript@6.0.3)
+        specifier: ~4.5.0-next.1
+        version: 4.5.0-next.1(typescript@6.0.3)
       '@softarc/native-federation-orchestrator':
         specifier: ^4.5.2
         version: 4.6.0
@@ -38,13 +38,16 @@ importers:
       mrmime:
         specifier: ^2.0.1
         version: 2.0.1
+      watchpack:
+        specifier: ^2.5.2
+        version: 2.5.2
     devDependencies:
       '@angular/build':
         specifier: ~22.1.0
-        version: 22.1.5(@angular/compiler-cli@22.1.3(@angular/compiler@22.1.3)(typescript@6.0.3))(@angular/compiler@22.1.3)(@types/node@24.10.15)(chokidar@5.0.0)(jiti@2.7.0)(postcss@8.5.26)(rollup@4.62.5)(tslib@2.8.1)(typescript@6.0.3)(vitest@4.1.11)(yaml@2.9.0)
+        version: 22.1.5(@angular/compiler-cli@22.1.3(@angular/compiler@22.1.3)(typescript@6.0.3))(@angular/compiler@22.1.3)(@types/node@24.10.15)(chokidar@5.0.0)(jiti@2.7.0)(postcss@8.5.26)(rollup@4.62.5)(supports-color@7.2.0)(tslib@2.8.1)(typescript@6.0.3)(vitest@4.1.11)(yaml@2.9.0)
       '@eslint/js':
         specifier: ^10.0.1
-        version: 10.0.1(eslint@10.9.0(jiti@2.7.0))
+        version: 10.0.1(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))
       '@nx/devkit':
         specifier: ^23.1.0
         version: 23.1.1(nx@23.1.1)
@@ -56,7 +59,7 @@ importers:
         version: 4.1.11(vitest@4.1.11)
       eslint:
         specifier: ^10.8.0
-        version: 10.9.0(jiti@2.7.0)
+        version: 10.9.0(jiti@2.7.0)(supports-color@7.2.0)
       globals:
         specifier: ^17.0.0
         version: 17.11.0
@@ -77,7 +80,7 @@ importers:
         version: 6.0.3
       typescript-eslint:
         specifier: ^8.65.0
-        version: 8.67.0(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3)
+        version: 8.67.0(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(supports-color@7.2.0)(typescript@6.0.3)
       vite:
         specifier: ^7.0.0
         version: 7.3.6(@types/node@24.10.15)(jiti@2.7.0)(lightningcss@1.33.0)(sass@1.101.0)(yaml@2.9.0)
@@ -1834,8 +1837,8 @@ packages:
     resolution: {integrity: sha512-8529SINGc3zBdKZcyUsP9vGj4EFjUOljy+43qfwzYSgC3FwkHcAjddf/p86t8kI9CmCp0JGeLkM1IjJ7xahVXQ==, tarball: https://registry.npmjs.org/@softarc/native-federation-orchestrator/-/native-federation-orchestrator-4.6.0.tgz}
     engines: {node: '>=24.16.0'}
 
-  '@softarc/native-federation@4.4.1':
-    resolution: {integrity: sha512-YPaWGbOHfl/Xs5HWQr9Ns3hUf056dA3qojsV2qEOYvNZ1JLYy9QC7Dgdvt6/CienxsLZnnymA3hHOMZs7jJvbA==, tarball: https://registry.npmjs.org/@softarc/native-federation/-/native-federation-4.4.1.tgz}
+  '@softarc/native-federation@4.5.0-next.1':
+    resolution: {integrity: sha512-HD8BO7b2d/9UIT4nSkq6D99mqB7DKQ35ONAkBpyx41/ojM98bvwzfJxL2UNtFvKqzlYaAeJZ/h0a5EagZ1IuZQ==, tarball: https://registry.npmjs.org/@softarc/native-federation/-/native-federation-4.5.0-next.1.tgz}
 
   '@softarc/sheriff-core@0.19.6':
     resolution: {integrity: sha512-KACxHG9sS7kNWgnnBODzdr14kMLMrJVlQKc+tViUP03p2fRwNhESOA49bz51Yn7dro1mbtMmmFjICLmZSJDZZA==, tarball: https://registry.npmjs.org/@softarc/sheriff-core/-/sheriff-core-0.19.6.tgz}
@@ -3534,7 +3537,7 @@ snapshots:
     transitivePeerDependencies:
       - chokidar
 
-  '@angular/build@22.1.5(@angular/compiler-cli@22.1.3(@angular/compiler@22.1.3)(typescript@6.0.3))(@angular/compiler@22.1.3)(@types/node@24.10.15)(chokidar@5.0.0)(jiti@2.7.0)(postcss@8.5.26)(rollup@4.62.5)(tslib@2.8.1)(typescript@6.0.3)(vitest@4.1.11)(yaml@2.9.0)':
+  '@angular/build@22.1.5(@angular/compiler-cli@22.1.3(@angular/compiler@22.1.3)(typescript@6.0.3))(@angular/compiler@22.1.3)(@types/node@24.10.15)(chokidar@5.0.0)(jiti@2.7.0)(postcss@8.5.26)(rollup@4.62.5)(supports-color@7.2.0)(tslib@2.8.1)(typescript@6.0.3)(vitest@4.1.11)(yaml@2.9.0)':
     dependencies:
       '@ampproject/remapping': 2.3.0
       '@angular-devkit/architect': 0.2201.5(chokidar@5.0.0)
@@ -3548,7 +3551,7 @@ snapshots:
       beasties: 0.4.3
       browserslist: 4.28.8
       esbuild: 0.28.2
-      https-proxy-agent: 9.1.0
+      https-proxy-agent: 9.1.0(supports-color@7.2.0)
       jsonc-parser: 3.3.1
       listr2: 11.0.0
       magic-string: 1.0.0
@@ -3741,7 +3744,6 @@ snapshots:
     dependencies:
       '@emnapi/wasi-threads': 1.2.2
       tslib: 2.8.1
-    optional: true
 
   '@emnapi/core@1.4.5':
     dependencies:
@@ -3756,7 +3758,6 @@ snapshots:
   '@emnapi/runtime@1.11.2':
     dependencies:
       tslib: 2.8.1
-    optional: true
 
   '@emnapi/runtime@1.4.5':
     dependencies:
@@ -3769,7 +3770,6 @@ snapshots:
   '@emnapi/wasi-threads@1.2.2':
     dependencies:
       tslib: 2.8.1
-    optional: true
 
   '@esbuild/aix-ppc64@0.28.2':
     optional: true
@@ -3849,14 +3849,14 @@ snapshots:
   '@esbuild/win32-x64@0.28.2':
     optional: true
 
-  '@eslint-community/eslint-utils@4.10.1(eslint@10.9.0(jiti@2.7.0))':
+  '@eslint-community/eslint-utils@4.10.1(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))':
     dependencies:
-      eslint: 10.9.0(jiti@2.7.0)
+      eslint: 10.9.0(jiti@2.7.0)(supports-color@7.2.0)
       eslint-visitor-keys: 3.4.3
 
   '@eslint-community/regexpp@4.12.2': {}
 
-  '@eslint/config-array@0.23.5':
+  '@eslint/config-array@0.23.5(supports-color@7.2.0)':
     dependencies:
       '@eslint/object-schema': 3.0.5
       debug: 4.4.3(supports-color@7.2.0)
@@ -3872,9 +3872,9 @@ snapshots:
     dependencies:
       '@types/json-schema': 7.0.15
 
-  '@eslint/js@10.0.1(eslint@10.9.0(jiti@2.7.0))':
+  '@eslint/js@10.0.1(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))':
     optionalDependencies:
-      eslint: 10.9.0(jiti@2.7.0)
+      eslint: 10.9.0(jiti@2.7.0)(supports-color@7.2.0)
 
   '@eslint/object-schema@3.0.5': {}
 
@@ -4116,8 +4116,8 @@ snapshots:
 
   '@napi-rs/wasm-runtime@0.2.4':
     dependencies:
-      '@emnapi/core': 1.4.5
-      '@emnapi/runtime': 1.4.5
+      '@emnapi/core': 1.11.2
+      '@emnapi/runtime': 1.11.2
       '@tybys/wasm-util': 0.9.0
 
   '@napi-rs/wasm-runtime@1.2.3(@emnapi/core@1.11.1)(@emnapi/runtime@1.11.1)':
@@ -4675,7 +4675,7 @@ snapshots:
     dependencies:
       semver: 7.8.5
 
-  '@softarc/native-federation@4.4.1(typescript@6.0.3)':
+  '@softarc/native-federation@4.5.0-next.1(typescript@6.0.3)':
     dependencies:
       '@softarc/sheriff-core': 0.19.6(typescript@6.0.3)
       chalk: 6.0.0
@@ -4721,15 +4721,15 @@ snapshots:
     dependencies:
       undici-types: 7.16.0
 
-  '@typescript-eslint/eslint-plugin@8.67.0(@typescript-eslint/parser@8.67.0(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3))(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3)':
+  '@typescript-eslint/eslint-plugin@8.67.0(@typescript-eslint/parser@8.67.0(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(supports-color@7.2.0)(typescript@6.0.3))(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(supports-color@7.2.0)(typescript@6.0.3)':
     dependencies:
       '@eslint-community/regexpp': 4.12.2
-      '@typescript-eslint/parser': 8.67.0(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3)
+      '@typescript-eslint/parser': 8.67.0(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(supports-color@7.2.0)(typescript@6.0.3)
       '@typescript-eslint/scope-manager': 8.67.0
-      '@typescript-eslint/type-utils': 8.67.0(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3)
-      '@typescript-eslint/utils': 8.67.0(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3)
+      '@typescript-eslint/type-utils': 8.67.0(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(supports-color@7.2.0)(typescript@6.0.3)
+      '@typescript-eslint/utils': 8.67.0(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(typescript@6.0.3)
       '@typescript-eslint/visitor-keys': 8.67.0
-      eslint: 10.9.0(jiti@2.7.0)
+      eslint: 10.9.0(jiti@2.7.0)(supports-color@7.2.0)
       ignore: 7.0.6
       natural-compare: 1.4.0
       ts-api-utils: 2.5.0(typescript@6.0.3)
@@ -4737,14 +4737,14 @@ snapshots:
     transitivePeerDependencies:
       - supports-color
 
-  '@typescript-eslint/parser@8.67.0(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3)':
+  '@typescript-eslint/parser@8.67.0(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(supports-color@7.2.0)(typescript@6.0.3)':
     dependencies:
       '@typescript-eslint/scope-manager': 8.67.0
       '@typescript-eslint/types': 8.67.0
       '@typescript-eslint/typescript-estree': 8.67.0(typescript@6.0.3)
       '@typescript-eslint/visitor-keys': 8.67.0
       debug: 4.4.3(supports-color@7.2.0)
-      eslint: 10.9.0(jiti@2.7.0)
+      eslint: 10.9.0(jiti@2.7.0)(supports-color@7.2.0)
       typescript: 6.0.3
     transitivePeerDependencies:
       - supports-color
@@ -4767,13 +4767,13 @@ snapshots:
     dependencies:
       typescript: 6.0.3
 
-  '@typescript-eslint/type-utils@8.67.0(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3)':
+  '@typescript-eslint/type-utils@8.67.0(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(supports-color@7.2.0)(typescript@6.0.3)':
     dependencies:
       '@typescript-eslint/types': 8.67.0
       '@typescript-eslint/typescript-estree': 8.67.0(typescript@6.0.3)
-      '@typescript-eslint/utils': 8.67.0(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3)
+      '@typescript-eslint/utils': 8.67.0(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(typescript@6.0.3)
       debug: 4.4.3(supports-color@7.2.0)
-      eslint: 10.9.0(jiti@2.7.0)
+      eslint: 10.9.0(jiti@2.7.0)(supports-color@7.2.0)
       ts-api-utils: 2.5.0(typescript@6.0.3)
       typescript: 6.0.3
     transitivePeerDependencies:
@@ -4796,13 +4796,13 @@ snapshots:
     transitivePeerDependencies:
       - supports-color
 
-  '@typescript-eslint/utils@8.67.0(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3)':
+  '@typescript-eslint/utils@8.67.0(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(typescript@6.0.3)':
     dependencies:
-      '@eslint-community/eslint-utils': 4.10.1(eslint@10.9.0(jiti@2.7.0))
+      '@eslint-community/eslint-utils': 4.10.1(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))
       '@typescript-eslint/scope-manager': 8.67.0
       '@typescript-eslint/types': 8.67.0
       '@typescript-eslint/typescript-estree': 8.67.0(typescript@6.0.3)
-      eslint: 10.9.0(jiti@2.7.0)
+      eslint: 10.9.0(jiti@2.7.0)(supports-color@7.2.0)
       typescript: 6.0.3
     transitivePeerDependencies:
       - supports-color
@@ -5237,11 +5237,11 @@ snapshots:
 
   eslint-visitor-keys@5.0.1: {}
 
-  eslint@10.9.0(jiti@2.7.0):
+  eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0):
     dependencies:
-      '@eslint-community/eslint-utils': 4.10.1(eslint@10.9.0(jiti@2.7.0))
+      '@eslint-community/eslint-utils': 4.10.1(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))
       '@eslint-community/regexpp': 4.12.2
-      '@eslint/config-array': 0.23.5
+      '@eslint/config-array': 0.23.5(supports-color@7.2.0)
       '@eslint/config-helpers': 0.7.0
       '@eslint/core': 1.2.1
       '@eslint/plugin-kit': 0.7.2
@@ -5455,7 +5455,7 @@ snapshots:
     transitivePeerDependencies:
       - supports-color
 
-  https-proxy-agent@9.1.0:
+  https-proxy-agent@9.1.0(supports-color@7.2.0):
     dependencies:
       agent-base: 9.0.0
       debug: 4.4.3(supports-color@7.2.0)
@@ -6354,13 +6354,13 @@ snapshots:
     dependencies:
       prelude-ls: 1.2.1
 
-  typescript-eslint@8.67.0(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3):
+  typescript-eslint@8.67.0(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(supports-color@7.2.0)(typescript@6.0.3):
     dependencies:
-      '@typescript-eslint/eslint-plugin': 8.67.0(@typescript-eslint/parser@8.67.0(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3))(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3)
-      '@typescript-eslint/parser': 8.67.0(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3)
+      '@typescript-eslint/eslint-plugin': 8.67.0(@typescript-eslint/parser@8.67.0(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(supports-color@7.2.0)(typescript@6.0.3))(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(supports-color@7.2.0)(typescript@6.0.3)
+      '@typescript-eslint/parser': 8.67.0(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(supports-color@7.2.0)(typescript@6.0.3)
       '@typescript-eslint/typescript-estree': 8.67.0(typescript@6.0.3)
-      '@typescript-eslint/utils': 8.67.0(eslint@10.9.0(jiti@2.7.0))(typescript@6.0.3)
-      eslint: 10.9.0(jiti@2.7.0)
+      '@typescript-eslint/utils': 8.67.0(eslint@10.9.0(jiti@2.7.0)(supports-color@7.2.0))(typescript@6.0.3)
+      eslint: 10.9.0(jiti@2.7.0)(supports-color@7.2.0)
       typescript: 6.0.3
     transitivePeerDependencies:
       - supports-color
diff --git a/src/builders/build/builder.ts b/src/builders/build/builder.ts
index 4180e54..eab0c8a 100644
--- a/src/builders/build/builder.ts
+++ b/src/builders/build/builder.ts
@@ -50,6 +50,7 @@ import { type Plugin, type PluginBuild } from "esbuild";
 import { devHostInstancesPlugin } from "../../plugin/dev-host-instances-plugin.js";
 import { checkForInvalidImports } from "./../../utils/check-for-invalid-imports.js";
 import { federationSourceFiles } from "./../../utils/federation-source-files.js";
+import { watchpackWatch } from "./../../utils/watchpack-watch.js";
 import { federationBuildNotifier } from "./federation-build-notifier.js";
 import {
   createFederationFreshness,
@@ -289,6 +290,7 @@ export async function* runBuilder(
       tsConfig: federationTsConfig,
       verbose: ngBuilderOptions.verbose,
       watch: ngBuilderOptions.watch,
+      watchLinkedDeps: nfBuilderOptions.watchLinkedDeps === true,
       dev: !!nfBuilderOptions.dev,
       entryPoints,
       buildNotifications: nfBuilderOptions.buildNotifications,
@@ -467,6 +469,7 @@ export async function* runBuilder(
 
   const nfWatcher: NfFileWatcher | undefined = watch
     ? createNfWatcher({
+        watch: watchpackWatch,
         // Coalesce ng-packagr's atomic multi-write bursts into one rebuild.
         debounceMs: 100,
         onChange: (p) => {
diff --git a/src/builders/build/schema.d.ts b/src/builders/build/schema.d.ts
index c8c8be7..b26f291 100644
--- a/src/builders/build/schema.d.ts
+++ b/src/builders/build/schema.d.ts
@@ -11,6 +11,7 @@ export interface NfBuilderSchema extends JsonObject {
   buildNotifications?: BuildNotificationOptions;
   federationConfigPath?: string;
   watch?: boolean;
+  watchLinkedDeps?: boolean;
   skipHtmlTransform: boolean;
   esmsInitOptions: ESMSInitOptions;
   baseHref?: string;
diff --git a/src/builders/build/schema.json b/src/builders/build/schema.json
index f55cb85..c78af2e 100644
--- a/src/builders/build/schema.json
+++ b/src/builders/build/schema.json
@@ -18,6 +18,11 @@
     "watch": {
       "type": "boolean"
     },
+    "watchLinkedDeps": {
+      "type": "boolean",
+      "default": false,
+      "description": "Watch npm-linked shared libraries so rebuilding one reloads the host. Off by default: it polls the linked checkout for as long as the dev server runs. A cold build re-bundles a changed linked library either way; this option covers the changes a running dev server would otherwise miss."
+    },
     "port": {
       "type": "number",
       "default": 0
diff --git a/src/builders/remote/builder.ts b/src/builders/remote/builder.ts
index 1a7e8e8..2caf23f 100644
--- a/src/builders/remote/builder.ts
+++ b/src/builders/remote/builder.ts
@@ -95,6 +95,7 @@ export async function* runRemoteBuilder(
       tsConfig: federationTsConfig,
       verbose: nfBuilderOptions.verbose,
       watch: nfBuilderOptions.watch,
+      watchLinkedDeps: nfBuilderOptions.watchLinkedDeps === true,
       dev: !!nfBuilderOptions.dev,
       entryPoints,
       cacheExternalArtifacts: nfBuilderOptions.cacheExternalArtifacts !== false,
diff --git a/src/builders/remote/change-watcher.ts b/src/builders/remote/change-watcher.ts
index c3f8871..a5b9fea 100644
--- a/src/builders/remote/change-watcher.ts
+++ b/src/builders/remote/change-watcher.ts
@@ -1,4 +1,5 @@
 import { createNfWatcher, type NfFileWatcher } from '@softarc/native-federation/internal';
+import { watchpackWatch } from '../../utils/watchpack-watch.js';
 
 export interface DebouncedChangeWatcher {
   watcher: NfFileWatcher;
@@ -31,6 +32,7 @@ export function createDebouncedChangeWatcher(
   };
 
   const watcher = createNfWatcher({
+    watch: watchpackWatch,
     onChange: p => {
       pendingPaths.add(p);
       scheduleNotify();
diff --git a/src/builders/remote/schema.d.ts b/src/builders/remote/schema.d.ts
index 517010e..394685d 100644
--- a/src/builders/remote/schema.d.ts
+++ b/src/builders/remote/schema.d.ts
@@ -7,6 +7,7 @@ export interface NfRemoteBuilderSchema extends JsonObject {
   dev: boolean;
   rebuildDelay: number;
   watch: boolean;
+  watchLinkedDeps?: boolean;
   outputPath?: string;
   projectName?: string;
   verbose?: boolean;
diff --git a/src/builders/remote/schema.json b/src/builders/remote/schema.json
index 4ea8a8f..3f6787c 100644
--- a/src/builders/remote/schema.json
+++ b/src/builders/remote/schema.json
@@ -19,6 +19,11 @@
       "type": "boolean",
       "default": false
     },
+    "watchLinkedDeps": {
+      "type": "boolean",
+      "default": false,
+      "description": "Watch npm-linked shared libraries so rebuilding one reloads the host. Off by default: it polls the linked checkout for as long as the dev server runs. A cold build re-bundles a changed linked library either way; this option covers the changes a running dev server would otherwise miss."
+    },
     "entryPoints": {
       "type": "array",
       "items": { "type": "string" },
diff --git a/src/utils/watchpack-watch.spec.ts b/src/utils/watchpack-watch.spec.ts
new file mode 100644
index 0000000..64f4ecd
--- /dev/null
+++ b/src/utils/watchpack-watch.spec.ts
@@ -0,0 +1,126 @@
+import * as fs from 'node:fs';
+import * as os from 'node:os';
+import * as path from 'node:path';
+import { afterEach, beforeEach, describe, expect, it } from 'vitest';
+import { watchpackWatch } from './watchpack-watch';
+
+// Watchpack is event-driven, but the events still cross a real fs boundary, so every
+// assertion waits for a condition rather than a fixed delay.
+const waitFor = async (
+  predicate: () => boolean,
+  timeoutMs = 8000
+): Promise<void> => {
+  const deadline = Date.now() + timeoutMs;
+  while (Date.now() < deadline) {
+    if (predicate()) return;
+    await new Promise(r => setTimeout(r, 25));
+  }
+  throw new Error('timed out waiting for a watch event');
+};
+
+// Watchpack only reports changes newer than the watch's start time, and mtime
+// granularity on some filesystems is a full second.
+const settle = () => new Promise(r => setTimeout(r, 300));
+
+describe('watchpackWatch', () => {
+  let root: string;
+  const handles: { close(): void }[] = [];
+
+  const watch = (
+    target: string,
+    opts: { recursive: boolean; poll?: { intervalMs: number } }
+  ): string[] => {
+    const seen: string[] = [];
+    handles.push(watchpackWatch(target, opts, f => f && seen.push(f)));
+    return seen;
+  };
+
+  beforeEach(() => {
+    root = fs.mkdtempSync(path.join(os.tmpdir(), 'nf-watchpack-'));
+  });
+
+  afterEach(() => {
+    for (const h of handles.splice(0)) h.close();
+    fs.rmSync(root, { recursive: true, force: true });
+  });
+
+  it('reports a changed file relative to the watched directory', async () => {
+    fs.writeFileSync(path.join(root, 'a.ts'), 'one');
+    const seen = watch(root, { recursive: false });
+    await settle();
+
+    fs.writeFileSync(path.join(root, 'a.ts'), 'two');
+    await waitFor(() => seen.includes('a.ts'));
+  });
+
+  it('reports a file added after the watch started', async () => {
+    const seen = watch(root, { recursive: false });
+    await settle();
+
+    fs.writeFileSync(path.join(root, 'new.ts'), 'hello');
+    await waitFor(() => seen.includes('new.ts'));
+  });
+
+  // Watchpack descends whatever it is handed, so `recursive: false` cannot stop it the
+  // way fs.watch does — it only caps the reported path at depth 1. Two levels down, and
+  // modifying an existing file so no parent directory's mtime moves: the only way 'sub'
+  // can be reported is watchpack having descended to it.
+  it('collapses a change below depth 1 onto its depth-1 ancestor when not recursive', async () => {
+    const nested = path.join(root, 'sub', 'deeper');
+    fs.mkdirSync(nested, { recursive: true });
+    fs.writeFileSync(path.join(nested, 'deep.ts'), 'one');
+    const seen = watch(root, { recursive: false });
+    await settle();
+
+    fs.writeFileSync(path.join(nested, 'deep.ts'), 'two');
+    await waitFor(() => seen.includes('sub'));
+    expect(seen.filter(f => f.includes('deep.ts'))).toEqual([]);
+  });
+
+  it('reports nested changes when recursive', async () => {
+    const nested = path.join(root, 'sub');
+    fs.mkdirSync(nested);
+    fs.writeFileSync(path.join(nested, 'deep.ts'), 'one');
+    const seen = watch(root, { recursive: true });
+    await settle();
+
+    fs.writeFileSync(path.join(nested, 'deep.ts'), 'two');
+    await waitFor(() => seen.some(f => f.endsWith('deep.ts')));
+  });
+
+  it('ignores node_modules under the watched root', async () => {
+    const modules = path.join(root, 'node_modules', 'pkg');
+    fs.mkdirSync(modules, { recursive: true });
+    fs.writeFileSync(path.join(modules, 'index.js'), 'one');
+    const seen = watch(root, { recursive: true });
+    await settle();
+
+    fs.writeFileSync(path.join(modules, 'index.js'), 'two');
+    await settle();
+    expect(seen.filter(f => f.includes('node_modules'))).toEqual([]);
+  });
+
+  // What `ng build my-lib` does to dist: the whole directory is replaced, not
+  // rewritten in place. A raw recursive fs.watch misses this and then dies.
+  it('survives the watched directory being swapped out', async () => {
+    const dist = path.join(root, 'dist');
+    fs.mkdirSync(dist);
+    fs.writeFileSync(path.join(dist, 'main.js'), 'one');
+
+    const seen = watch(dist, { recursive: true, poll: { intervalMs: 100 } });
+    await settle();
+
+    const replacement = path.join(root, 'dist-next');
+    fs.mkdirSync(replacement);
+    fs.writeFileSync(path.join(replacement, 'main.js'), 'two');
+    fs.rmSync(dist, { recursive: true, force: true });
+    fs.renameSync(replacement, dist);
+
+    await waitFor(() => seen.some(f => f.endsWith('main.js')));
+
+    // And the watch is still live afterwards, which is the half fs.watch loses.
+    seen.length = 0;
+    fs.writeFileSync(path.join(dist, 'main.js'), 'three');
+    await waitFor(() => seen.some(f => f.endsWith('main.js')));
+  });
+});
diff --git a/src/utils/watchpack-watch.ts b/src/utils/watchpack-watch.ts
new file mode 100644
index 0000000..06d33d2
--- /dev/null
+++ b/src/utils/watchpack-watch.ts
@@ -0,0 +1,40 @@
+import * as path from 'node:path';
+import Watchpack from 'watchpack';
+import type { WatchPort } from '@softarc/native-federation/internal';
+
+/**
+ * Watchpack-backed replacement for core's built-in watch. Event-driven like `fs.watch`
+ * for a source directory, but it survives the `dist` swap `ng build <lib>` does, which
+ * `fs.watch` reports once before dying on the deleted inode.
+ */
+export const watchpackWatch: WatchPort['watch'] = (watchPath, opts, onEvent) => {
+  const root = path.resolve(watchPath);
+
+  const watchpack = new Watchpack({
+    // Core hands us realpaths; following would only descend into .pnpm.
+    followSymlinks: false,
+    // Don't drop: watchpack only re-covers a swapped directory while polling.
+    poll: opts.poll ? opts.poll.intervalMs : false,
+    ignored: entry => {
+      const rel = path.relative(root, entry);
+      if (!rel || rel.startsWith('..')) return false;
+      const segments = rel.split(path.sep);
+      if (segments.includes('node_modules')) return true;
+      // Watchpack descends either way; this only collapses a deeper change onto its
+      // depth-1 ancestor. fs.watch would report nothing at all, but core's only
+      // non-recursive watch drops the collapsed path as an untracked file anyway.
+      return !opts.recursive && segments.length > 1;
+    },
+  });
+
+  const emit = (entry: string): void => {
+    const rel = path.relative(root, entry);
+    if (rel) onEvent(rel);
+  };
+
+  watchpack.on('change', emit);
+  watchpack.on('remove', emit);
+  watchpack.watch({ directories: [root], startTime: Date.now() });
+
+  return { close: () => watchpack.close() };
+};