diff --git a/bin/nuxt-dev b/bin/nuxt-dev
index b2502e1da5..b8817cb627 100755
--- a/bin/nuxt-dev
+++ b/bin/nuxt-dev
@@ -78,24 +78,24 @@ chokidar
     debug('[nuxt.config.js] changed')
     needToRestart = true
   
-    dev = dev.then((nuxt) => {
-      if (needToRestart === false) return nuxt
+    dev = dev.then((instance) => {
+      if (needToRestart === false) return instance
       needToRestart = false
 
       debug('Rebuilding the app...')
-      return startDev(nuxt)
+      return startDev(instance)
     })
   })
 
-function startDev(oldNuxt) {
+function startDev(oldInstance) {
   // Get latest environment variables
   const port = argv.port || process.env.PORT || process.env.npm_package_config_nuxt_port
   const host = argv.hostname || process.env.HOST || process.env.npm_package_config_nuxt_host
 
   // Error handler
-  const onError = (err, nuxt) => {
+  const onError = (err, instance) => {
     debug('Error while reloading [nuxt.config.js]', err)
-    return Promise.resolve(nuxt) // Wait for next reload
+    return Promise.resolve(instance) // Wait for next reload
   }
 
   // Load options
@@ -103,30 +103,33 @@ function startDev(oldNuxt) {
   try {
     options = loadNuxtConfig()
   } catch (err) {
-    return onError(err, oldNuxt)
+    return onError(err, oldInstance)
   }
 
   // Create nuxt and builder instance
   let nuxt
   let builder
+  let instance
   try {
     nuxt = new Nuxt(options)
     builder = new Builder(nuxt)
+    instance = { nuxt: nuxt, builder: builder }
   } catch (err) {
-    return onError(err, nuxt || oldNuxt)
+    return onError(err, instance || oldInstance)
   }
 
   return Promise.resolve()
+    .then(() => oldInstance && oldInstance.builder ? oldInstance.builder.unwatch() : Promise.resolve())
     // Start build
     .then(() => builder.build())
     // Close old nuxt after successful build
-    .then(() => oldNuxt ? oldNuxt.close() : Promise.resolve())
+    .then(() => oldInstance && oldInstance.nuxt ? oldInstance.nuxt.close() : Promise.resolve())
     // Start listening
     .then(() => nuxt.listen(port, host))
     // Pass new nuxt to watch chain
-    .then(() => nuxt)
+    .then(() => instance)
     // Handle errors
-    .catch((err) => onError(err, nuxt))
+    .catch((err) => onError(err, instance))
 }
 
 function loadNuxtConfig() {
diff --git a/lib/builder/builder.js b/lib/builder/builder.js
index bc01da580a..bc79f3d96b 100644
--- a/lib/builder/builder.js
+++ b/lib/builder/builder.js
@@ -31,8 +31,11 @@ export default class Builder {
 
     // Fields that set on build
     this.compilers = []
+    this.compilersWatching = []
     this.webpackDevMiddleware = null
     this.webpackHotMiddleware = null
+    this.filesWatcher = null
+    this.customFilesWatcher = null
 
     // Mute stats on dev
     this.webpackStats = this.options.dev ? false : {
@@ -55,6 +58,30 @@ export default class Builder {
     this.vueLoader = vueLoaderConfig.bind(this)
 
     this._buildStatus = STATUS.INITIAL
+
+    // Stop watching on nuxt.close()
+    this.nuxt.hook('close', () => this.unwatch())
+  }
+
+  unwatch() {
+    if (this.filesWatcher) {
+      this.filesWatcher.close()
+    }
+
+    if (this.customFilesWatcher) {
+      this.customFilesWatcher.close()
+    }
+
+    this.compilersWatching.forEach((watching) => watching.close())
+
+    // Stop webpack middleware
+    return new Promise(resolve => {
+      if (this.webpackDevMiddleware) {
+        this.webpackDevMiddleware.close(() => resolve())
+      } else {
+        resolve()
+      }
+    })
   }
 
   get plugins() {
@@ -449,16 +476,12 @@ export default class Builder {
           return
         }
         // Server, build and watch for changes
-        const watching = compiler.watch(this.options.watchers.webpack, (err) => {
-          /* istanbul ignore if */
-          if (err) return reject(err)
-        })
-
-        // Stop watching on nuxt.close()
-        this.nuxt.hook('close', () => {
-          watching.close()
-        })
-
+        this.compilersWatching.push(
+          compiler.watch(this.options.watchers.webpack, (err) => {
+            /* istanbul ignore if */
+            if (err) return reject(err)
+          })
+        )
         return
       }
       // --- Production Build ---
@@ -503,11 +526,6 @@ export default class Builder {
       this.nuxt.renderer.webpackHotMiddleware = this.webpackHotMiddleware
     }
 
-    // Stop webpack middleware on nuxt.close()
-    this.nuxt.hook('close', () => new Promise(resolve => {
-      this.webpackDevMiddleware.close(() => resolve())
-    }))
-
     // Start watching files
     this.watchFiles()
   }
@@ -532,19 +550,13 @@ export default class Builder {
     const refreshFiles = _.debounce(() => this.generateRoutesAndFiles(), 200)
 
     // Watch for src Files
-    let filesWatcher = chokidar.watch(patterns, options)
+    this.filesWatcher = chokidar.watch(patterns, options)
       .on('add', refreshFiles)
       .on('unlink', refreshFiles)
 
     // Watch for custom provided files
-    let customFilesWatcher = chokidar.watch(_.uniq(this.options.build.watch), options)
+    this.customFilesWatcher = chokidar.watch(_.uniq(this.options.build.watch), options)
       .on('change', refreshFiles)
-
-    // Stop watching on nuxt.close()
-    this.nuxt.hook('close', () => {
-      filesWatcher.close()
-      customFilesWatcher.close()
-    })
   }
 }