diff --git a/src/common/utilities.ts b/src/common/utilities.ts
index 11461538..56c9560e 100644
--- a/src/common/utilities.ts
+++ b/src/common/utilities.ts
@@ -3,10 +3,11 @@
 
 import * as fs from 'fs-extra';
 import * as path from 'path';
-import { ConfigurationScope, env, LogLevel, Uri, WorkspaceFolder } from 'vscode';
+import { ConfigurationScope, env, LogLevel, Uri, WorkspaceFolder, Disposable, RelativePattern,FileSystemWatcher, workspace } from 'vscode';
 import { Trace, TraceValues } from 'vscode-jsonrpc/node';
 import { getConfiguration, getWorkspaceFolders, isVirtualWorkspace } from './vscodeapi';
 import { DocumentSelector } from 'vscode-languageclient';
+import { traceLog, traceInfo } from './logging';
 
 function logLevelToTrace(logLevel: LogLevel): Trace {
     switch (logLevel) {
@@ -82,3 +83,34 @@ export function getInterpreterFromSetting(namespace: string, scope?: Configurati
     const config = getConfiguration(namespace, scope);
     return config.get<string[]>('interpreter');
 }
+
+export async function createConfigFileWatcher(onConfigChanged: () => Promise<void>): Promise<Disposable> {
+    const disposables: Disposable[] = [];  
+
+    const homeDir = process.env.HOME || process.env.USERPROFILE;
+    if (homeDir) {
+        watchConfigFile(path.join(homeDir, '.black'));
+    }
+
+    async function watchConfigFile(filePath: string): Promise<void> {
+        if (await fs.pathExists(filePath)) {
+            const pattern = new RelativePattern(
+                path.dirname(filePath),
+                path.basename(filePath)
+            );
+            
+            const watcher = workspace.createFileSystemWatcher(pattern);
+            disposables.push(watcher);
+
+            const changeListener = watcher.onDidChange(async () => {
+                traceInfo(`Config file changed: ${filePath}`);
+                await onConfigChanged();
+            });
+            disposables.push(changeListener); 
+        }
+    }
+
+    return {
+        dispose: () => {disposables.forEach((d) => d.dispose()); }
+    };
+}
diff --git a/src/extension.ts b/src/extension.ts
index e813c922..f1b4b2c1 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -15,13 +15,15 @@ import {
     logLegacySettings,
 } from './common/settings';
 import { loadServerDefaults } from './common/setup';
-import { getInterpreterFromSetting, getProjectRoot } from './common/utilities';
+import { getInterpreterFromSetting, getProjectRoot, createConfigFileWatcher } from './common/utilities';
 import { createOutputChannel, onDidChangeConfiguration, registerCommand } from './common/vscodeapi';
 import { registerEmptyFormatter } from './common/nullFormatter';
 import { registerLanguageStatusItem, updateStatus } from './common/status';
 import { LS_SERVER_RESTART_DELAY, PYTHON_VERSION } from './common/constants';
 
 let lsClient: LanguageClient | undefined;
+let configWatcherDisposable: vscode.Disposable | undefined;
+
 export async function activate(context: vscode.ExtensionContext): Promise<void> {
     // This is required to get server name and module. This should be
     // the first thing that we do in this extension.
@@ -70,6 +72,7 @@ export async function activate(context: vscode.ExtensionContext): Promise<void>
     };
 
     context.subscriptions.push(
+        await createConfigFileWatcher(runServer),
         onDidChangePythonInterpreter(async () => {
             await runServer();
         }),