diff --git a/packages/repo-tools/src/commands/package/schema/openapi/generate/index.test.ts b/packages/repo-tools/src/commands/package/schema/openapi/generate/index.test.ts
new file mode 100644
index 0000000000..21a11c6165
--- /dev/null
+++ b/packages/repo-tools/src/commands/package/schema/openapi/generate/index.test.ts
@@ -0,0 +1,103 @@
+/*
+ * Copyright 2024 The Backstage Authors
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ *     http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ */
+
+import { createMockDirectory } from '@backstage/backend-test-utils';
+import path from 'path';
+
+jest.mock(
+  'lodash',
+  () =>
+    ({
+      ...jest.requireActual('lodash'),
+      debounce: (fn: any) => fn,
+    } as any as typeof import('lodash')),
+);
+
+describe('generateOpenApiSchema', () => {
+  const inputDir = createMockDirectory();
+  const outputDir = createMockDirectory();
+
+  beforeEach(() => {
+    inputDir.clear();
+    outputDir.clear();
+
+    inputDir.addContent({
+      'openapi.yaml': `
+          openapi: 3.0.0
+          info:
+            title: Test API
+            version: 1.0.0
+          paths:
+            /test:
+              get:
+                responses:
+                  '200':
+                    description: OK
+        `,
+    });
+    jest.mock('../../../../../lib/openapi/helpers', () => ({
+      getPathToCurrentOpenApiSpec: jest.fn(() =>
+        Promise.resolve(path.join(inputDir.path, 'openapi.yaml')),
+      ),
+    }));
+  });
+  it('should handle watch mode', async () => {
+    const generateClientMock = jest.fn();
+    const generateServerMock = jest.fn();
+    jest.doMock('./client', () => ({ command: generateClientMock }));
+    jest.doMock('./server', () => ({ command: generateServerMock }));
+
+    const mockWatch = jest.fn();
+    jest.mock('chokidar', () => ({
+      watch: mockWatch,
+    }));
+    let resolve: (val?: any) => void;
+    const block = () =>
+      new Promise(res => {
+        resolve = res;
+      });
+    jest.mock('../../../../../lib/runner', () => ({
+      block,
+    }));
+
+    const mockOn: Record<string, any> = {};
+    mockWatch.mockReturnValue({
+      on: jest.fn((event, cb) => {
+        console.log(event);
+        mockOn[event] = cb;
+      }),
+    } as any);
+
+    const { command } = await import('./index');
+
+    const actions = async () => {
+      while (!mockOn.ready) {
+        // Wait for the watcher to be registered
+        await new Promise(r => setTimeout(r, 100));
+      }
+
+      expect(generateClientMock).toHaveBeenCalledTimes(0);
+      mockOn.change();
+      expect(generateClientMock).toHaveBeenCalledTimes(1);
+      resolve();
+    };
+
+    await Promise.all([
+      actions(),
+      command({ watch: true, clientPackage: 'test123' }),
+    ]);
+  });
+});
diff --git a/packages/repo-tools/src/commands/package/schema/openapi/generate/index.ts b/packages/repo-tools/src/commands/package/schema/openapi/generate/index.ts
index a7e9d9a402..e8a7eb7249 100644
--- a/packages/repo-tools/src/commands/package/schema/openapi/generate/index.ts
+++ b/packages/repo-tools/src/commands/package/schema/openapi/generate/index.ts
@@ -20,6 +20,7 @@ import { command as generateServer } from './server';
 import chokidar from 'chokidar';
 import { getPathToCurrentOpenApiSpec } from '../../../../../lib/openapi/helpers';
 import { debounce } from 'lodash';
+import { block } from '../../../../../lib/runner';
 
 export async function command(opts: OptionValues) {
   if (!opts.clientPackage && !opts.server) {
@@ -74,7 +75,7 @@ export async function command(opts: OptionValues) {
           'Watching for changes in OpenAPI spec. Press Ctrl+C to stop.',
         );
       });
-      await new Promise(() => {});
+      await block();
     } catch (err) {
       console.error(chalk.red('Error: ', err));
       process.exit(1);
diff --git a/packages/repo-tools/src/lib/runner.ts b/packages/repo-tools/src/lib/runner.ts
index ea7b511938..8389caa63a 100644
--- a/packages/repo-tools/src/lib/runner.ts
+++ b/packages/repo-tools/src/lib/runner.ts
@@ -67,3 +67,7 @@ export async function runner(
 
   return resultsList;
 }
+
+export async function block() {
+  return new Promise(() => {});
+}