diff --git a/packages/cli/src/lib/bundler/config.ts b/packages/cli/src/lib/bundler/config.ts
index a64bc0fcd8..a0a0c17fdc 100644
--- a/packages/cli/src/lib/bundler/config.ts
+++ b/packages/cli/src/lib/bundler/config.ts
@@ -347,6 +347,13 @@ export async function createConfig(
   return {
     mode,
     profile: false,
+    ...(isDev
+      ? {
+        watchOptions: {
+          ignored: /node_modules\/(?!\@backstage)/,
+        },
+      }
+      : {}),
     optimization,
     bail: false,
     performance: {