diff --git a/packages/core/src/filesystem/location-watcher.ts b/packages/core/src/filesystem/location-watcher.ts
index 6848933fee..a2f7fa6de2 100644
--- a/packages/core/src/filesystem/location-watcher.ts
+++ b/packages/core/src/filesystem/location-watcher.ts
@@ -4,7 +4,6 @@ import { makeLocationNode } from "@opencode-ai/util/effect/app-node"
 import { Context, Effect, Layer, Stream } from "effect"
 import { FileSystem } from "@opencode-ai/schema/filesystem"
 import { Document } from "@opencode-ai/schema/config"
-import path from "path"
 import { Config } from "../config"
 import { Bus } from "../bus"
 import { FSUtil } from "@opencode-ai/util/fs-util"
@@ -36,22 +35,29 @@ const layer = Layer.effect(
         .filter((entry): entry is Document => entry.type === "document")
         .flatMap((item) => item.info.watcher?.ignore ?? [])
 
+      const watch = (dir: string, keep: readonly string[]) =>
+        Effect.gen(function* () {
+          const ignore = (yield* fs.readDirectoryEntries(dir).pipe(Effect.catch(() => Effect.succeed([])))).flatMap(
+            (entry) => (keep.includes(entry.name) ? [] : [entry.name]),
+          )
+          const updates = yield* watcher.subscribe({ path: dir, type: "directory", ignore })
+          yield* updates.pipe(Stream.runForEach(publish), Effect.forkScoped)
+        })
+
       if (location.vcs?.type === "git") {
         const resolved = (yield* git.repo.discover(location.directory))?.gitDirectory
         const vcs = resolved
           ? yield* fs.realPath(resolved).pipe(Effect.catch(() => Effect.succeed(resolved)))
           : undefined
         if (vcs && !config.includes(".git") && !config.includes(vcs) && (!resolved || !config.includes(resolved))) {
-          const updates = yield* watcher.subscribe({ path: path.join(vcs, "HEAD"), type: "file" })
-          yield* updates.pipe(Stream.runForEach(publish), Effect.forkScoped)
+          yield* watch(vcs, ["HEAD", "HEAD.lock"])
         }
       }
       if (location.vcs?.type === "hg") {
         const store = location.vcs.store
         const vcs = yield* fs.realPath(store).pipe(Effect.catch(() => Effect.succeed(store)))
         if (!config.includes(".hg") && !config.includes(vcs)) {
-          const updates = yield* watcher.subscribe({ path: path.join(vcs, "branch"), type: "file" })
-          yield* updates.pipe(Stream.runForEach(publish), Effect.forkScoped)
+          yield* watch(vcs, ["branch"])
         }
       }
     }).pipe(
diff --git a/packages/core/src/vcs.ts b/packages/core/src/vcs.ts
index db1f95d661..47daa67927 100644
--- a/packages/core/src/vcs.ts
+++ b/packages/core/src/vcs.ts
@@ -52,7 +52,10 @@ const layer = Layer.effect(
       const store = yield* fs.realPath(vcs.store).pipe(Effect.catch(() => Effect.succeed(vcs.store)))
       const isBranchMetadata =
         vcs.type === "git"
-          ? (file: string) => path.basename(file) === "HEAD" && FSUtil.contains(store, file)
+          ? (file: string) => {
+              const name = path.basename(file)
+              return (name === "HEAD" || name === "HEAD.lock") && FSUtil.contains(store, file)
+            }
           : (file: string) => path.resolve(file) === path.join(store, "branch")
       yield* bus.subscribe(FileSystem.Event.Changed).pipe(
         Stream.filter((event) => isBranchMetadata(event.data.file)),
diff --git a/packages/core/test/filesystem/watcher.test.ts b/packages/core/test/filesystem/watcher.test.ts
index 7b60f7dce7..a450323cf3 100644
--- a/packages/core/test/filesystem/watcher.test.ts
+++ b/packages/core/test/filesystem/watcher.test.ts
@@ -195,7 +195,12 @@ describe("LocationWatcher subscriptions", () => {
             Effect.retry(Schedule.spaced("10 millis")),
           )
           yield* Effect.sleep("10 millis")
-          expect(subscriptions).toEqual([{ path: path.join(directory, ".git", "HEAD"), type: "file" }])
+          expect(subscriptions).toHaveLength(1)
+          const git = subscriptions[0]
+          if (git?.type !== "directory") throw new Error("expected a directory watch")
+          expect(git.path).toBe(path.join(directory, ".git"))
+          expect(git.ignore ?? []).not.toContain("HEAD")
+          expect(git.ignore ?? []).toContain("objects")
         }),
       { vcs: "git", watcher },
     )
@@ -218,7 +223,7 @@ describe("LocationWatcher subscriptions", () => {
             Effect.retry(Schedule.spaced("10 millis")),
           )
           yield* Effect.sleep("10 millis")
-          expect(subscriptions).toEqual([{ path: path.join(directory, ".hg", "branch"), type: "file" }])
+          expect(subscriptions).toMatchObject([{ path: path.join(directory, ".hg"), type: "directory" }])
         }),
       { vcs: "hg", watcher },
     )
@@ -351,6 +356,23 @@ describeNative("LocationWatcher", () => {
     ),
   )
 
+  it.live("publishes .git/HEAD events from git checkout", () =>
+    withTmp(
+      (directory) =>
+        Effect.gen(function* () {
+          const head = path.join(directory, ".git", "HEAD")
+          const branch = `watch-${Math.random().toString(36).slice(2)}`
+          yield* ready(head)
+          const event = yield* nextUpdate(
+            (item) => path.basename(item.file) === "HEAD" || path.basename(item.file) === "HEAD.lock",
+            Effect.promise(() => $`git checkout -q -b ${branch}`.cwd(directory).quiet()),
+          )
+          expect(["HEAD", "HEAD.lock"]).toContain(path.basename(event.file))
+        }),
+      { vcs: "git" },
+    ),
+  )
+
   const describeSymlink = process.platform !== "win32" ? describe : describe.skip
   describeSymlink("symlinked .git", () => {
     it.live("publishes .git/HEAD events through a symlinked .git directory", () =>
diff --git a/packages/core/test/vcs.test.ts b/packages/core/test/vcs.test.ts
index 677fb4f156..aa87a8ee8b 100644
--- a/packages/core/test/vcs.test.ts
+++ b/packages/core/test/vcs.test.ts
@@ -112,7 +112,10 @@ describe("Vcs", () => {
         yield* bus.publish(FileSystem.Event.Changed, { file: path.join(directory, "HEAD"), event: "change" })
         expect(yield* vcs.info()).toEqual({ branch: { current: "main", default: undefined } })
 
-        yield* bus.publish(FileSystem.Event.Changed, { file: path.join(directory, ".git", "HEAD"), event: "change" })
+        yield* bus.publish(FileSystem.Event.Changed, {
+          file: path.join(directory, ".git", "HEAD.lock"),
+          event: "change",
+        })
         expect(yield* Fiber.join(updated)).toMatchObject({
           _tag: "Some",
           value: { location: { directory }, data: { branch: "feature" } },