diff --git a/.changeset/petite-islands-follow.md b/.changeset/petite-islands-follow.md
new file mode 100644
index 000000000000..f39a1a66ce3e
--- /dev/null
+++ b/.changeset/petite-islands-follow.md
@@ -0,0 +1,5 @@
+---
+"gradio": patch
+---
+
+fix:Reduce CPU usage of dev mode
diff --git a/gradio/cli/commands/reload.py b/gradio/cli/commands/reload.py
index 5edf6f557734..cc75bbbba090 100644
--- a/gradio/cli/commands/reload.py
+++ b/gradio/cli/commands/reload.py
@@ -10,6 +10,7 @@
 import inspect
 import os
 import re
+import site
 import subprocess
 import sys
 import threading
@@ -63,9 +64,14 @@ def _setup_config(
 
     watching_dirs = []
     if str(gradio_folder).strip():
-        watching_dirs.append(gradio_folder)
-        message += f" '{gradio_folder}'"
-        message_change_count += 1
+        package_install = any(
+            utils.is_in_or_equal(gradio_folder, d) for d in site.getsitepackages()
+        )
+        if not package_install:
+            # This is a source install
+            watching_dirs.append(gradio_folder)
+            message += f" '{gradio_folder}'"
+            message_change_count += 1
 
     abs_parent = abs_original_path.parent
     if str(abs_parent).strip():
diff --git a/gradio/utils.py b/gradio/utils.py
index 3c1d3bcd0fd4..a9b2ab52fe0a 100644
--- a/gradio/utils.py
+++ b/gradio/utils.py
@@ -14,6 +14,7 @@
 import pkgutil
 import re
 import threading
+import time
 import traceback
 import typing
 import urllib.parse
@@ -223,6 +224,7 @@ def iter_py_files() -> Iterator[Path]:
             else:
                 reloader.swap_blocks(demo)
             mtimes = {}
+        time.sleep(0.05)
 
 
 def colab_check() -> bool: