diff --git a/src/filesystem/FileSystem.js b/src/filesystem/FileSystem.js
index 993cd50ece..3300b25ec9 100644
--- a/src/filesystem/FileSystem.js
+++ b/src/filesystem/FileSystem.js
@@ -253,18 +253,17 @@ define(function (require, exports, module) {
                     impl[commandName].call(impl, entry.fullPath, requestCb);
                 }.bind(this), callback);
             }
-        } else {
+        } else if (shouldWatch) {
             // The impl can't handle recursive watch requests, so it's up to the
-            // filesystem to recursively watch or unwatch all subdirectories.
+            // filesystem to recursively watch all subdirectories.
             this._enqueueWatchRequest(function (requestCb) {
                 // First construct a list of entries to watch or unwatch
-                var entriesToWatchOrUnwatch = [],
-                    watchOrUnwatch = impl[commandName].bind(impl);
+                var entriesToWatch = [];
                 
                 var visitor = function (child) {
                     if (watchedRoot.filter(child.name, child.parentPath)) {
                         if (child.isDirectory || child === watchedRoot.entry) {
-                            entriesToWatchOrUnwatch.push(child);
+                            entriesToWatch.push(child);
                         }
                         return true;
                     }
@@ -273,28 +272,33 @@ define(function (require, exports, module) {
                 
                 entry.visit(visitor, function (err) {
                     if (err) {
+                        // Unexpected error
                         requestCb(err);
                         return;
                     }
                     
                     // Then watch or unwatched all these entries
-                    var count = entriesToWatchOrUnwatch.length;
+                    var count = entriesToWatch.length;
                     if (count === 0) {
                         requestCb(null);
                         return;
                     }
                     
-                    var watchOrUnwatchCallback = function () {
+                    var watchCallback = function () {
                         if (--count === 0) {
                             requestCb(null);
                         }
                     };
                     
-                    entriesToWatchOrUnwatch.forEach(function (entry) {
-                        watchOrUnwatch(entry.fullPath, watchOrUnwatchCallback);
+                    entriesToWatch.forEach(function (entry) {
+                        impl.watchPath(entry.fullPath, watchCallback);
                     });
                 });
             }, callback);
+        } else {
+            this._enqueueWatchRequest(function (requestCb) {
+                impl.unwatchPath(entry.fullPath, requestCb);
+            }, callback);
         }
     };
     
@@ -714,6 +718,10 @@ define(function (require, exports, module) {
             }
             
             var watchOrUnwatchCallback = function (err) {
+                if (err) {
+                    console.error("FileSystem error in _handleDirectoryChange after watch/unwatch entries: " + err);
+                }
+                
                 if (--counter === 0) {
                     callback(addedEntries, removedEntries);
                 }
diff --git a/src/filesystem/impls/appshell/node/FileWatcherDomain.js b/src/filesystem/impls/appshell/node/FileWatcherDomain.js
index dbbc051063..82b6c8e297 100644
--- a/src/filesystem/impls/appshell/node/FileWatcherDomain.js
+++ b/src/filesystem/impls/appshell/node/FileWatcherDomain.js
@@ -63,10 +63,11 @@ var _domainManager,
     _watcherMap = {};
 
 /**
+ * @private
  * Un-watch a file or directory.
  * @param {string} path File or directory to unwatch.
  */
-function unwatchPath(path) {
+function _unwatchPath(path) {
     var watcher = _watcherMap[path];
         
     if (watcher) {
@@ -84,6 +85,18 @@ function unwatchPath(path) {
     }
 }
 
+/**
+ * Un-watch a file or directory. For directories, unwatch all descendants.
+ * @param {string} path File or directory to unwatch.
+ */
+function unwatchPath(path) {
+    Object.keys(_watcherMap).forEach(function (keyPath) {
+        if (keyPath.indexOf(path) === 0) {
+            _unwatchPath(keyPath);
+        }
+    });
+}
+
 /**
  * Watch a file or directory.
  * @param {string} path File or directory to watch.
@@ -171,7 +184,7 @@ function init(domainManager) {
         "unwatchPath",
         unwatchPath,
         false,
-        "Stop watching a file or directory",
+        "Stop watching a single file or a directory and it's descendants",
         [{
             name: "path",
             type: "string",