diff --git a/onedrived/od_watcher.py b/onedrived/od_watcher.py
index 8f19c53..1195e82 100644
--- a/onedrived/od_watcher.py
+++ b/onedrived/od_watcher.py
@@ -16,8 +16,7 @@
 
 class LocalRepositoryWatcher:
 
-    FLAGS = _inotify_flags.CREATE | _inotify_flags.CLOSE_WRITE | _inotify_flags.DELETE | \
-            _inotify_flags.DELETE_SELF | _inotify_flags.MOVE_SELF | _inotify_masks.MOVE
+    FLAGS = _inotify_flags.CREATE | _inotify_flags.CLOSE_WRITE | _inotify_flags.DELETE | _inotify_masks.MOVE
 
     BUSY_RETRY_INTERVAL_SEC = 30
     FD_READ_DELAY_MSEC = 200
@@ -181,10 +180,16 @@ def _handle_move_pair(self, move_pair, to_repo, from_repo=None):
                 (from_item_record.type == ItemRecordType.FOLDER) == (_inotify_flags.ISDIR in to_flags):
             logging.info('Use Move API to move item "%s/%s" in Drive %s to "%s/%s".',
                          from_parent_relpath, from_ev.name, from_repo.drive.id, to_parent_relpath, to_ev.name)
-            self.task_pool.add_task(tasks.move_item.MoveItemTask(
-                repo=to_repo, task_pool=self.task_pool, parent_relpath=from_parent_relpath, item_name=from_ev.name,
-                new_parent_relpath=to_parent_relpath, new_name=to_ev.name, item_id=from_item_record.item_id,
-                is_folder=_inotify_flags.ISDIR in from_flags))
+            if tasks.move_item.MoveItemTask(
+                    repo=to_repo, task_pool=self.task_pool, parent_relpath=from_parent_relpath, item_name=from_ev.name,
+                    new_parent_relpath=to_parent_relpath, new_name=to_ev.name, item_id=from_item_record.item_id,
+                    is_folder=_inotify_flags.ISDIR in from_flags).handle():
+                if _inotify_flags.ISDIR in to_flags:
+                    self.add_watch(to_parent_dir + '/' + to_ev.name)
+            else:
+                logging.error('Failed to use Move API to move item "%s/%s". Fallback to dir merge.',
+                              from_parent_dir, from_ev.name)
+                self._add_merge_dir_task(to_repo, to_parent_relpath)
             return
 
         self._handle_unpaired_move_from(from_ev, from_flags, from_parent_dir, from_parent_relpath,
@@ -311,6 +316,7 @@ def _handle_unpaired_move_to(self, to_ev, to_flags, to_repo,
             self.task_pool.add_task(tasks.create_folder.CreateFolderTask(
                 repo=to_repo, task_pool=self.task_pool, item_name=to_ev.name, parent_relpath=to_parent_relpath,
                 upload_if_success=True, abort_if_local_gone=True))
+            # After the directory is created, it will be merged and thus the watcher updated.
         else:
             to_dir_request = self._get_item_request_by_relpath(to_repo, to_parent_relpath)
             self.task_pool.add_task(tasks.upload_file.UploadFileTask(
@@ -325,11 +331,6 @@ def handle_event(self, ev, flags, move_pairs):
         """
         parent_dir = self.watch_descriptors[ev.wd]
 
-        if _inotify_flags.DELETE_SELF in flags or _inotify_flags.MOVE_SELF in flags:
-            self.watch_descriptors.pop(ev.wd)
-            logging.info('Delete watcher on path "%s".', parent_dir)
-            return
-
         repo = self._path_to_repo(parent_dir)
         if repo is None:
             logging.warning('Repo not found for %s on path "%s". Flags={%s}.',
@@ -347,6 +348,9 @@ def handle_event(self, ev, flags, move_pairs):
                             str(ev), parent_dir + '/' + ev.name, ','.join([str(f) for f in flags]))
             return
 
+        if event_isdir and (_inotify_flags.MOVED_FROM in flags or _inotify_flags.DELETE in flags):
+            self.rm_watch(parent_dir + '/' + ev.name)
+
         if ev.cookie in move_pairs:
             # Event is part of a move-from + move-to sequence. Handle the two events at move-to time.
             if _inotify_flags.MOVED_TO in flags:
@@ -410,10 +414,8 @@ def _recognize_event_patterns(events):
         return move_pairs, all_events
 
     def process_events(self):
-        if not self._lock.acquire(blocking=False):
+        while not self._lock.acquire(blocking=False, timeout=self.BUSY_RETRY_INTERVAL_SEC):
             logging.warning('Failed to acquire the lock. Will retry in %d sec.', self.BUSY_RETRY_INTERVAL_SEC)
-            self.loop.call_later(self.BUSY_RETRY_INTERVAL_SEC, self.process_events)
-            return
         events = self.notifier.read(timeout=0, read_delay=self.FD_READ_DELAY_MSEC)
         if len(events):
             move_pairs, all_events = self._recognize_event_patterns(events)