diff --git a/lib/core/config.js b/lib/core/config.js
index c3932c46a..cebc9282e 100644
--- a/lib/core/config.js
+++ b/lib/core/config.js
@@ -328,7 +328,7 @@ Config.prototype.loadWebServerConfigFile = function() {
     return;
   }
   if (this.webServerConfig) {
-    // cli falgs to `embark run` should override configFile and defaults (configObject)
+    // cli flags to `embark run` should override configFile and defaults (configObject)
     this.webServerConfig = utils.recursiveMerge(webServerConfig, this.webServerConfig);
   } else {
     this.webServerConfig = webServerConfig;
diff --git a/lib/modules/webserver/index.js b/lib/modules/webserver/index.js
index ac3465111..cb2bd5024 100644
--- a/lib/modules/webserver/index.js
+++ b/lib/modules/webserver/index.js
@@ -32,6 +32,26 @@ class WebServer {
       port: this.port
     });
 
+    this.events.on('webserver:config:change', () => {
+      this.embark.config.webServerConfig = null;
+      this.embark.config.loadWebServerConfigFile();
+      this.webServerConfig = this.embark.config.webServerConfig;
+      this.host = this.webServerConfig.host;
+      this.port = this.webServerConfig.port;
+      this.server.host = this.host;
+      this.server.port = this.port;
+
+      this.testPort(() => {
+        this.server.stop((_err) => {
+          this.server.start((_err, message, port) => {
+            this.logger.info(message);
+            this.port = port;
+            this.events.request('open-browser', () => {});
+          });
+        });
+      });
+    });
+
     this.testPort(() => {
       this.listenToCommands();
       this.registerConsoleCommands();
diff --git a/lib/pipeline/watch.js b/lib/pipeline/watch.js
index 585ed7785..703273142 100644
--- a/lib/pipeline/watch.js
+++ b/lib/pipeline/watch.js
@@ -26,8 +26,12 @@ class Watch {
       self.logger.trace('ready to watch contract changes');
     });
 
-    this.watchConfigs(embarkConfig, function () {
-      self.logger.trace('ready to watch config changes');
+    this.watchContractConfig(embarkConfig, function () {
+      self.logger.trace('ready to watch contract config changes');
+    });
+
+    this.watchWebserverConfig(embarkConfig, function () {
+      self.logger.trace('ready to watch webserver config changes');
     });
 
     this.logger.info(__("ready to watch file changes"));
@@ -96,19 +100,45 @@ class Watch {
     );
   }
 
-  watchConfigs(embarkConfig, callback) {
+  watchWebserverConfig(embarkConfig, callback) {
     let self = this;
-    let contractsConfig;
-    if (typeof embarkConfig.config === 'object' || embarkConfig.config.contracts) {
-      contractsConfig = embarkConfig.config.contracts;
+    let webserverConfig;
+    if (typeof embarkConfig.config === 'object') {
+      if (!embarkConfig.config.webserver) {
+        return;
+      }
+      webserverConfig = embarkConfig.config.webserver;
     } else {
       let contractsFolder = embarkConfig.config.replace(/\\/g, '/');
       if (contractsFolder.charAt(contractsFolder.length - 1) !== '/') {
         contractsFolder += '/';
       }
-      contractsConfig = [`${contractsFolder}**/contracts.json`, `${contractsFolder}**/contracts.js`];
+      webserverConfig = [`${contractsFolder}**/webserver.json`, `${contractsFolder}**/webserver.js`];
     }
-    this.watchFiles(contractsConfig,
+    this.watchFiles(webserverConfig,
+      function (eventName, path) {
+        self.logger.info(`${eventName}: ${path}`);
+        self.events.emit('webserver:config:change', 'config', path);
+      },
+      function () {
+        callback();
+      }
+    );
+  }
+
+  watchContractConfig(embarkConfig, callback) {
+    let self = this;
+    let contractConfig;
+    if (typeof embarkConfig.config === 'object' || embarkConfig.config.contracts) {
+      contractConfig = embarkConfig.config.contracts;
+    } else {
+      let contractsFolder = embarkConfig.config.replace(/\\/g, '/');
+      if (contractsFolder.charAt(contractsFolder.length - 1) !== '/') {
+        contractsFolder += '/';
+      }
+      contractConfig = [`${contractsFolder}**/contracts.json`, `${contractsFolder}**/contracts.js`];
+    }
+    this.watchFiles(contractConfig,
       function (eventName, path) {
         self.logger.info(`${eventName}: ${path}`);
         self.events.emit('file-' + eventName, 'config', path);