diff --git a/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/angular-compilation.ts b/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/angular-compilation.ts
index de1e775dbdd8..1889cdfebe6a 100644
--- a/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/angular-compilation.ts
+++ b/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/angular-compilation.ts
@@ -53,7 +53,11 @@ export abstract class AngularCompilation {
     tsconfig: string,
     hostOptions: AngularHostOptions,
     compilerOptionsTransformer?: (compilerOptions: ng.CompilerOptions) => ng.CompilerOptions,
-  ): Promise<{ affectedFiles: ReadonlySet<ts.SourceFile>; compilerOptions: ng.CompilerOptions }>;
+  ): Promise<{
+    affectedFiles: ReadonlySet<ts.SourceFile>;
+    compilerOptions: ng.CompilerOptions;
+    referencedFiles: readonly string[];
+  }>;
 
   abstract collectDiagnostics(): Iterable<ts.Diagnostic>;
 
diff --git a/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/aot-compilation.ts b/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/aot-compilation.ts
index 81c60707b746..84a59e40a7b9 100644
--- a/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/aot-compilation.ts
+++ b/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/aot-compilation.ts
@@ -43,7 +43,11 @@ export class AotCompilation extends AngularCompilation {
     tsconfig: string,
     hostOptions: AngularHostOptions,
     compilerOptionsTransformer?: (compilerOptions: ng.CompilerOptions) => ng.CompilerOptions,
-  ): Promise<{ affectedFiles: ReadonlySet<ts.SourceFile>; compilerOptions: ng.CompilerOptions }> {
+  ): Promise<{
+    affectedFiles: ReadonlySet<ts.SourceFile>;
+    compilerOptions: ng.CompilerOptions;
+    referencedFiles: readonly string[];
+  }> {
     // Dynamically load the Angular compiler CLI package
     const { NgtscProgram, OptimizeFor } = await AngularCompilation.loadCompilerCli();
 
@@ -96,7 +100,12 @@ export class AotCompilation extends AngularCompilation {
       this.#state?.diagnosticCache,
     );
 
-    return { affectedFiles, compilerOptions };
+    const referencedFiles = typeScriptProgram
+      .getSourceFiles()
+      .filter((sourceFile) => !angularCompiler.ignoreForEmit.has(sourceFile))
+      .map((sourceFile) => sourceFile.fileName);
+
+    return { affectedFiles, compilerOptions, referencedFiles };
   }
 
   *collectDiagnostics(): Iterable<ts.Diagnostic> {
diff --git a/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/compiler-plugin.ts b/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/compiler-plugin.ts
index 0ee89d2c5cd8..4d1107398b81 100644
--- a/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/compiler-plugin.ts
+++ b/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/compiler-plugin.ts
@@ -45,6 +45,8 @@ export class SourceFileCache extends Map<string, ts.SourceFile> {
   readonly typeScriptFileCache = new Map<string, string | Uint8Array>();
   readonly loadResultCache = new MemoryLoadResultCache();
 
+  referencedFiles?: readonly string[];
+
   constructor(readonly persistentCachePath?: string) {
     super();
   }
@@ -185,6 +187,7 @@ export function createCompilerPlugin(
         // In watch mode, previous build state will be reused.
         const {
           compilerOptions: { allowJs },
+          referencedFiles,
         } = await compilation.initialize(tsconfigPath, hostOptions, (compilerOptions) => {
           if (
             compilerOptions.target === undefined ||
@@ -254,6 +257,11 @@ export function createCompilerPlugin(
           }
         });
 
+        // Store referenced files for updated file watching if enabled
+        if (pluginOptions.sourceFileCache) {
+          pluginOptions.sourceFileCache.referencedFiles = referencedFiles;
+        }
+
         // Reset the setup warnings so that they are only shown during the first build.
         setupWarnings = undefined;
 
diff --git a/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/jit-compilation.ts b/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/jit-compilation.ts
index 2df13e01955f..d7c455645c15 100644
--- a/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/jit-compilation.ts
+++ b/packages/angular_devkit/build_angular/src/builders/browser-esbuild/angular/jit-compilation.ts
@@ -30,7 +30,11 @@ export class JitCompilation extends AngularCompilation {
     tsconfig: string,
     hostOptions: AngularHostOptions,
     compilerOptionsTransformer?: (compilerOptions: ng.CompilerOptions) => ng.CompilerOptions,
-  ): Promise<{ affectedFiles: ReadonlySet<ts.SourceFile>; compilerOptions: ng.CompilerOptions }> {
+  ): Promise<{
+    affectedFiles: ReadonlySet<ts.SourceFile>;
+    compilerOptions: ng.CompilerOptions;
+    referencedFiles: readonly string[];
+  }> {
     // Dynamically load the Angular compiler CLI package
     const { constructorParametersDownlevelTransform } = await AngularCompilation.loadCompilerCli();
 
@@ -68,7 +72,11 @@ export class JitCompilation extends AngularCompilation {
       createJitResourceTransformer(() => typeScriptProgram.getProgram().getTypeChecker()),
     );
 
-    return { affectedFiles, compilerOptions };
+    const referencedFiles = typeScriptProgram
+      .getSourceFiles()
+      .map((sourceFile) => sourceFile.fileName);
+
+    return { affectedFiles, compilerOptions, referencedFiles };
   }
 
   *collectDiagnostics(): Iterable<ts.Diagnostic> {
diff --git a/packages/angular_devkit/build_angular/src/builders/browser-esbuild/index.ts b/packages/angular_devkit/build_angular/src/builders/browser-esbuild/index.ts
index be61739b076a..950883ab0330 100644
--- a/packages/angular_devkit/build_angular/src/builders/browser-esbuild/index.ts
+++ b/packages/angular_devkit/build_angular/src/builders/browser-esbuild/index.ts
@@ -73,6 +73,10 @@ class ExecutionResult {
     };
   }
 
+  get watchFiles() {
+    return this.codeBundleCache?.referencedFiles ?? [];
+  }
+
   createRebuildState(fileChanges: ChangedFiles): RebuildState {
     this.codeBundleCache?.invalidate([...fileChanges.modified, ...fileChanges.removed]);
 
@@ -676,6 +680,10 @@ export async function* buildEsbuildBrowserInternal(
   ];
   watcher.add(packageWatchFiles.map((file) => path.join(normalizedOptions.workspaceRoot, file)));
 
+  // Watch locations provided by the initial build result
+  let previousWatchFiles = new Set(result.watchFiles);
+  watcher.add(result.watchFiles);
+
   // Wait for changes and rebuild as needed
   try {
     for await (const changes of watcher) {
@@ -687,6 +695,14 @@ export async function* buildEsbuildBrowserInternal(
         execute(normalizedOptions, context, result.createRebuildState(changes)),
       );
 
+      // Update watched locations provided by the new build result.
+      // Add any new locations
+      watcher.add(result.watchFiles.filter((watchFile) => !previousWatchFiles.has(watchFile)));
+      const newWatchFiles = new Set(result.watchFiles);
+      // Remove any old locations
+      watcher.remove([...previousWatchFiles].filter((watchFile) => !newWatchFiles.has(watchFile)));
+      previousWatchFiles = newWatchFiles;
+
       if (shouldWriteResult) {
         // Write output files
         await writeResultFiles(result.outputFiles, result.assetFiles, normalizedOptions.outputPath);
diff --git a/packages/angular_devkit/build_angular/src/builders/browser-esbuild/watcher.ts b/packages/angular_devkit/build_angular/src/builders/browser-esbuild/watcher.ts
index 2fd26ee56f2e..053f585b48f7 100644
--- a/packages/angular_devkit/build_angular/src/builders/browser-esbuild/watcher.ts
+++ b/packages/angular_devkit/build_angular/src/builders/browser-esbuild/watcher.ts
@@ -25,8 +25,8 @@ export class ChangedFiles {
 }
 
 export interface BuildWatcher extends AsyncIterableIterator<ChangedFiles> {
-  add(paths: string | string[]): void;
-  remove(paths: string | string[]): void;
+  add(paths: string | readonly string[]): void;
+  remove(paths: string | readonly string[]): void;
   close(): Promise<void>;
 }