diff --git a/crates/project/tests/integration/project_tests.rs b/crates/project/tests/integration/project_tests.rs
index 6092836c19ef280aa2d13abcb32932f3b47703b6..d597377910a2a837e456ac4384b06c333887dfb3 100644
--- a/crates/project/tests/integration/project_tests.rs
+++ b/crates/project/tests/integration/project_tests.rs
@@ -5359,6 +5359,52 @@ async fn test_rescan_and_remote_updates(cx: &mut gpui::TestAppContext) {
     });
 }
 
+#[cfg(target_os = "linux")]
+#[gpui::test(retries = 5)]
+async fn test_recreated_directory_receives_child_events(cx: &mut gpui::TestAppContext) {
+    init_test(cx);
+    cx.executor().allow_parking();
+
+    let dir = TempTree::new(json!({}));
+    let project = Project::test(Arc::new(RealFs::new(None, cx.executor())), [dir.path()], cx).await;
+    let tree = project.update(cx, |project, cx| project.worktrees(cx).next().unwrap());
+
+    tree.flush_fs_events(cx).await;
+
+    let repro_dir = dir.path().join("repro");
+    std::fs::create_dir(&repro_dir).unwrap();
+    tree.flush_fs_events(cx).await;
+
+    cx.update(|cx| {
+        assert!(tree.read(cx).entry_for_path(rel_path("repro")).is_some());
+    });
+
+    std::fs::remove_dir_all(&repro_dir).unwrap();
+    tree.flush_fs_events(cx).await;
+
+    cx.update(|cx| {
+        assert!(tree.read(cx).entry_for_path(rel_path("repro")).is_none());
+    });
+
+    std::fs::create_dir(&repro_dir).unwrap();
+    tree.flush_fs_events(cx).await;
+
+    cx.update(|cx| {
+        assert!(tree.read(cx).entry_for_path(rel_path("repro")).is_some());
+    });
+
+    std::fs::write(repro_dir.join("repro-marker"), "").unwrap();
+    tree.flush_fs_events(cx).await;
+
+    cx.update(|cx| {
+        assert!(
+            tree.read(cx)
+                .entry_for_path(rel_path("repro/repro-marker"))
+                .is_some()
+        );
+    });
+}
+
 #[gpui::test(iterations = 10)]
 async fn test_buffer_identity_across_renames(cx: &mut gpui::TestAppContext) {
     init_test(cx);
diff --git a/crates/worktree/src/worktree.rs b/crates/worktree/src/worktree.rs
index 69b0be24e7ffb09d3fe759ec0bd3d54b54db21d3..9e62beb3c375fb8d580be02382091cafe04d31e2 100644
--- a/crates/worktree/src/worktree.rs
+++ b/crates/worktree/src/worktree.rs
@@ -2945,7 +2945,7 @@ impl BackgroundScannerState {
         self.snapshot.check_invariants(false);
     }
 
-    fn remove_path(&mut self, path: &RelPath) {
+    fn remove_path(&mut self, path: &RelPath, watcher: &dyn Watcher) {
         log::trace!("background scanner removing path {path:?}");
         let mut new_entries;
         let removed_entries;
@@ -2961,7 +2961,12 @@ impl BackgroundScannerState {
         self.snapshot.entries_by_path = new_entries;
 
         let mut removed_ids = Vec::with_capacity(removed_entries.summary().count);
+        let mut removed_dir_abs_paths = Vec::new();
         for entry in removed_entries.cursor::<()>(()) {
+            if entry.is_dir() {
+                removed_dir_abs_paths.push(self.snapshot.absolutize(&entry.path));
+            }
+
             match self.removed_entries.entry(entry.inode) {
                 hash_map::Entry::Occupied(mut e) => {
                     let prev_removed_entry = e.get_mut();
@@ -2997,6 +3002,10 @@ impl BackgroundScannerState {
             .git_repositories
             .retain(|id, _| removed_ids.binary_search(id).is_err());
 
+        for removed_dir_abs_path in removed_dir_abs_paths {
+            watcher.remove(&removed_dir_abs_path).log_err();
+        }
+
         #[cfg(feature = "test-support")]
         self.snapshot.check_invariants(false);
     }
@@ -4461,7 +4470,10 @@ impl BackgroundScanner {
 
             if self.settings.is_path_excluded(&child_path) {
                 log::debug!("skipping excluded child entry {child_path:?}");
-                self.state.lock().await.remove_path(&child_path);
+                self.state
+                    .lock()
+                    .await
+                    .remove_path(&child_path, self.watcher.as_ref());
                 continue;
             }
 
@@ -4651,7 +4663,7 @@ impl BackgroundScanner {
         // detected regardless of the order of the paths.
         for (path, metadata) in relative_paths.iter().zip(metadata.iter()) {
             if matches!(metadata, Ok(None)) || doing_recursive_update {
-                state.remove_path(path);
+                state.remove_path(path, self.watcher.as_ref());
             }
         }