diff --git a/CHANGELOG.md b/CHANGELOG.md
index eed248652f..2d675fd6c8 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -325,7 +325,7 @@ Notes: web developers are advised to use [`~` (tilde range)](https://github.com/
 - Fixed published package types containing internal package references, in PR [#5610](https://github.com/microsoft/BotFramework-WebChat/pull/5610), by [@OEvgeny](https://github.com/OEvgeny)
 - Fixed citation links are not properly matched against markdown links, in PR [#5614](https://github.com/microsoft/BotFramework-WebChat/pull/5614), by [@OEvgeny](https://github.com/OEvgeny)
 - Fixed `botframework-webchat/decorator` import in legacy CommonJS environments, in [#5616](https://github.com/microsoft/BotFramework-WebChat/pull/5616), by [@OEvgeny](https://github.com/OEvgeny)
-- Fixed `npm start` for efficiency and reliability, in PR [#5621](https://github.com/microsoft/BotFramework-WebChat/pull/5621), by [@compulim](https://github.com/compulim)
+- Fixed `npm start` for efficiency and reliability, in PR [#5621](https://github.com/microsoft/BotFramework-WebChat/pull/5621) and [#5629](https://github.com/microsoft/BotFramework-WebChat/pull/5629), by [@compulim](https://github.com/compulim)
 
 ### Removed
 
diff --git a/scripts/buildWatch.mjs b/scripts/buildWatch.mjs
index a0c222612d..1020448088 100644
--- a/scripts/buildWatch.mjs
+++ b/scripts/buildWatch.mjs
@@ -12,18 +12,32 @@ const {
 
 const root = resolve(rootPackageJSONPath, '../');
 
-const watchPaths = new Set(['./src/']);
+const dependingLocalPackages = new Set(Object.keys(currentPackageJSON.localDependencies || {}));
+/** @type Map<string, string> */
+const localPackageJSONPath = new Map();
 
-for (const [packageName] of Object.entries(currentPackageJSON.localDependencies || {})) {
+for (const packageName of Array.from(dependingLocalPackages)) {
   for (const workspace of workspaces) {
     const packageJSON = await readPackage({ cwd: resolve(root, workspace) });
 
     if (packageJSON.name === packageName) {
-      watchPaths.add(resolve(root, workspace, 'package.json'));
+      for (const transientLocalPackageName of Object.keys(packageJSON.localDependencies)) {
+        dependingLocalPackages.delete(transientLocalPackageName);
+      }
+
+      localPackageJSONPath.set(packageName, resolve(root, workspace, 'package.json'));
     }
   }
 }
 
+const watchPaths = new Set(['./src/']);
+
+// Only includes packages that are absolutely needed to watch.
+// For example, "api -> api-graph -> core" and "api -> core". Then we only need to watch "api-graph" but not "core".
+for (const packageName of dependingLocalPackages) {
+  localPackageJSONPath.has(packageName) && watchPaths.add(localPackageJSONPath.get(packageName));
+}
+
 // "nodemon" will pick up every file change, trigger build too many times.
 // console.log(
 //   `node --watch ${watchPaths.map(path => `--watch-path "${path}"`).join(' ')} --watch-preserve-output $(which npm) run build:run`