diff --git a/sbt/src/sbt-test/watch/symlinks/build.sbt b/sbt/src/sbt-test/watch/symlinks/build.sbt
new file mode 100644
index 000000000..09e1b7ad3
--- /dev/null
+++ b/sbt/src/sbt-test/watch/symlinks/build.sbt
@@ -0,0 +1,46 @@
+import java.nio.file.{ Files, Paths }
+import java.nio.file.StandardCopyOption.REPLACE_EXISTING
+
+val createSymlinks = taskKey[Unit]("create symlinks to source files and directories")
+createSymlinks := {
+  val base = baseDirectory.value.toPath
+  val srcDir = base / "src" / "main" / "scala"
+  val foo = Files.createDirectories(srcDir / "file-source") / "Foo.scala"
+  Files.createSymbolicLink(srcDir / "sources", Files.createDirectories(base / "sources"))
+  Files.deleteIfExists(foo)
+  Files.createSymbolicLink(foo, base / "file-source" / "Foo.scala")
+}
+
+ThisBuild / watchOnFileInputEvent := {
+  val srcDir = baseDirectory.value.toPath / "src" / "main" / "scala"
+  (_: Int, event: Watch.Event) =>
+    event.path match {
+      case p if p == (srcDir / "file-source" / "Foo.scala") => Watch.CancelWatch
+      case p if p == (srcDir / "sources" / "Bar.scala")     => Watch.CancelWatch
+      case _                                                => Watch.Ignore
+    }
+}
+
+val copySource = inputKey[Unit]("copy a source file from changes")
+copySource := {
+  val relative = Def.spaceDelimited("").parsed.head.split("/") match {
+    case Array(head)            => Paths.get(head)
+    case Array(head, tail @ _*) => tail.foldLeft(Paths.get(head))(_ / _)
+  }
+  val base = baseDirectory.value.toPath
+  Files.copy((base / "changes").resolve(relative), base.resolve(relative), REPLACE_EXISTING)
+}
+
+val removeLink = inputKey[Unit]("remove a symlink")
+removeLink := {
+  val relative = Def.spaceDelimited("").parsed.head.split("/") match {
+    case Array(head)            => Paths.get(head)
+    case Array(head, tail @ _*) => tail.foldLeft(Paths.get(head))(_ / _)
+  }
+  val srcDir = baseDirectory.value.toPath / "src" / "main" / "scala"
+  Files.deleteIfExists(srcDir.resolve(relative))
+}
+
+commands += Command.single("skipWindows") { (state, command) =>
+  if (scala.util.Properties.isWin) state else command :: state
+}
diff --git a/sbt/src/sbt-test/watch/symlinks/changes/file-source/Foo.scala b/sbt/src/sbt-test/watch/symlinks/changes/file-source/Foo.scala
new file mode 100644
index 000000000..f72abf33f
--- /dev/null
+++ b/sbt/src/sbt-test/watch/symlinks/changes/file-source/Foo.scala
@@ -0,0 +1 @@
+class Foo {}
\ No newline at end of file
diff --git a/sbt/src/sbt-test/watch/symlinks/changes/sources/Bar.scala b/sbt/src/sbt-test/watch/symlinks/changes/sources/Bar.scala
new file mode 100644
index 000000000..f124ae515
--- /dev/null
+++ b/sbt/src/sbt-test/watch/symlinks/changes/sources/Bar.scala
@@ -0,0 +1,3 @@
+package sources
+
+class Bar
\ No newline at end of file
diff --git a/sbt/src/sbt-test/watch/symlinks/file-source/Foo.scala b/sbt/src/sbt-test/watch/symlinks/file-source/Foo.scala
new file mode 100644
index 000000000..43c42f145
--- /dev/null
+++ b/sbt/src/sbt-test/watch/symlinks/file-source/Foo.scala
@@ -0,0 +1 @@
+class Foo
\ No newline at end of file
diff --git a/sbt/src/sbt-test/watch/symlinks/test b/sbt/src/sbt-test/watch/symlinks/test
new file mode 100644
index 000000000..70ab7d943
--- /dev/null
+++ b/sbt/src/sbt-test/watch/symlinks/test
@@ -0,0 +1,15 @@
+> createSymlinks
+
+> skipWindows ~compile; copySource file-source/Foo.scala
+
+> ~compile; copySource sources/Bar.scala
+
+> skipWindows ~compile; removeLink file-source/Foo.scala
+
+> ~compile; removeLink sources
+
+> ~compile; createSymlinks
+
+> copySource sources/Bar.scala
+
+> ~compile; removeLink sources/Bar.scala