diff --git a/crates/cli/src/subcommands/dev.rs b/crates/cli/src/subcommands/dev.rs
index 3b1ca604bd7..f03dd41165b 100644
--- a/crates/cli/src/subcommands/dev.rs
+++ b/crates/cli/src/subcommands/dev.rs
@@ -751,7 +751,7 @@ pub async fn exec(mut config: Config, args: &ArgMatches) -> Result<(), anyhow::E
         .and_then(|c| c.get_one::<String>("server").ok().flatten());
     let server_for_client = server_opt_client.as_deref().unwrap_or(resolved_server);
     let server_host_url = config.get_host_url(Some(server_for_client))?;
-    let _client_handle = if let Some(ref cmd) = client_command {
+    let mut client_handle = if let Some(ref cmd) = client_command {
         let mut child = start_client_process(cmd, &project_dir, db_name_for_client, &server_host_url)?;
 
         // Give the process a moment to fail fast (e.g., command not found, missing deps)
@@ -802,40 +802,74 @@ pub async fn exec(mut config: Config, args: &ArgMatches) -> Result<(), anyhow::E
 
     let mut debounce_timer;
     loop {
-        if rx.recv().is_ok() {
-            debounce_timer = std::time::Instant::now();
-            while debounce_timer.elapsed() < Duration::from_millis(300) {
-                if rx.recv_timeout(Duration::from_millis(100)).is_ok() {
-                    debounce_timer = std::time::Instant::now();
+        // Use recv_timeout so we can periodically check if the client process exited
+        match rx.recv_timeout(Duration::from_secs(1)) {
+            Err(std::sync::mpsc::RecvTimeoutError::Disconnected) => break Ok(()),
+            Ok(()) => {
+                debounce_timer = std::time::Instant::now();
+                while debounce_timer.elapsed() < Duration::from_millis(300) {
+                    if rx.recv_timeout(Duration::from_millis(100)).is_ok() {
+                        debounce_timer = std::time::Instant::now();
+                    }
                 }
-            }
 
-            println!("\n{}", "File change detected, rebuilding...".yellow());
-            match generate_build_and_publish(
-                &config,
-                &project_dir,
-                loaded_config_dir.as_deref(),
-                &spacetimedb_dir,
-                &module_bindings_dir,
-                client_language,
-                clear_database,
-                &publish_configs,
-                &generate_configs_from_file,
-                using_spacetime_config,
-                server_from_cli,
-                force,
-                skip_publish,
-                skip_generate,
-            )
-            .await
-            {
-                Ok(_) => {}
-                Err(e) => {
-                    eprintln!("{} {}", "Error:".red().bold(), e);
-                    println!("{}", "Waiting for next change...".dimmed());
+                println!("\n{}", "File change detected, rebuilding...".yellow());
+                match generate_build_and_publish(
+                    &config,
+                    &project_dir,
+                    loaded_config_dir.as_deref(),
+                    &spacetimedb_dir,
+                    &module_bindings_dir,
+                    client_language,
+                    clear_database,
+                    &publish_configs,
+                    &generate_configs_from_file,
+                    using_spacetime_config,
+                    server_from_cli,
+                    force,
+                    skip_publish,
+                    skip_generate,
+                )
+                .await
+                {
+                    Ok(_) => {}
+                    Err(e) => {
+                        eprintln!("{} {}", "Error:".red().bold(), e);
+                        println!("{}", "Waiting for next change...".dimmed());
+                    }
                 }
             }
-        }
+            Err(std::sync::mpsc::RecvTimeoutError::Timeout) => {
+                // No rebuild yet. Check if the client process has exited.
+                let Some(ref mut child) = client_handle else {
+                    continue;
+                };
+                match child.try_wait() {
+                    Ok(None) => {}
+                    Ok(Some(status)) => {
+                        client_handle = None;
+                        let code = status
+                            .code()
+                            .map(|c| c.to_string())
+                            .unwrap_or_else(|| "unknown".to_string());
+                        println!(
+                            "\n{} {}. {}",
+                            "Client process exited with code".yellow(),
+                            code,
+                            "File watcher is still active.".dimmed()
+                        );
+                    }
+                    Err(e) => {
+                        client_handle = None;
+                        eprintln!(
+                            "\n{} Failed to check client process status: {}",
+                            "Warning:".yellow().bold(),
+                            e
+                        );
+                    }
+                }
+            }
+        };
     }
 }