diff --git a/.travis.yml b/.travis.yml
index d17c5e546..1db7df73b 100644
--- a/.travis.yml
+++ b/.travis.yml
@@ -41,7 +41,7 @@ env:
     - SBT_CMD="scripted source-dependencies/*1of3"
     - SBT_CMD="scripted source-dependencies/*2of3"
     - SBT_CMD="scripted source-dependencies/*3of3"
-    - SBT_CMD="scripted tests/*"
+    - SBT_CMD="scripted tests/* watch/*"
     - SBT_CMD="repoOverrideTest:scripted dependency-management/*"
 
 notifications:
diff --git a/main/src/main/scala/sbt/Defaults.scala b/main/src/main/scala/sbt/Defaults.scala
index 0b4b26b86..f4663c5ab 100755
--- a/main/src/main/scala/sbt/Defaults.scala
+++ b/main/src/main/scala/sbt/Defaults.scala
@@ -361,14 +361,19 @@ object Defaults extends BuildCommon {
       val include = (includeFilter in unmanagedSources).value
       val exclude = (excludeFilter in unmanagedSources).value match {
         case e =>
-          (managedSources in ThisScope).value match {
-            case l if l.nonEmpty =>
-              e || new FileFilter {
-                private val files = l.toSet
-                override def accept(pathname: File): Boolean = files.contains(pathname)
-                override def toString = s"ManagedSourcesFilter($files)"
-              }
-            case _ => e
+          val s = state.value
+          try {
+            Project.extract(s).runTask(managedSources in Compile in ThisScope, s) match {
+              case (_, l) if l.nonEmpty =>
+                e || new FileFilter {
+                  private val files = l.toSet
+                  override def accept(pathname: File): Boolean = files.contains(pathname)
+                  override def toString = s"ManagedSourcesFilter($files)"
+                }
+              case _ => e
+            }
+          } catch {
+            case NonFatal(_) => e
           }
       }
       val baseSources =
diff --git a/sbt/src/sbt-test/watch/watch-sources/build.sbt b/sbt/src/sbt-test/watch/watch-sources/build.sbt
new file mode 100644
index 000000000..16a193e6f
--- /dev/null
+++ b/sbt/src/sbt-test/watch/watch-sources/build.sbt
@@ -0,0 +1,3 @@
+lazy val root = (project in file(".")).aggregate(parent, child)
+lazy val parent = project
+lazy val child = project.enablePlugins(JmhPlugin).dependsOn(parent)
diff --git a/sbt/src/sbt-test/watch/watch-sources/changes/Foo.scala b/sbt/src/sbt-test/watch/watch-sources/changes/Foo.scala
new file mode 100644
index 000000000..c389887ee
--- /dev/null
+++ b/sbt/src/sbt-test/watch/watch-sources/changes/Foo.scala
@@ -0,0 +1 @@
+class Foo
diff --git a/sbt/src/sbt-test/watch/watch-sources/child/src/main/scala/Bar.scala b/sbt/src/sbt-test/watch/watch-sources/child/src/main/scala/Bar.scala
new file mode 100644
index 000000000..f6673f853
--- /dev/null
+++ b/sbt/src/sbt-test/watch/watch-sources/child/src/main/scala/Bar.scala
@@ -0,0 +1 @@
+class Bar
diff --git a/sbt/src/sbt-test/watch/watch-sources/parent/src/main/scala/Foo.scala b/sbt/src/sbt-test/watch/watch-sources/parent/src/main/scala/Foo.scala
new file mode 100644
index 000000000..970bfef8a
--- /dev/null
+++ b/sbt/src/sbt-test/watch/watch-sources/parent/src/main/scala/Foo.scala
@@ -0,0 +1 @@
+class Foo {
diff --git a/sbt/src/sbt-test/watch/watch-sources/project/plugin.sbt b/sbt/src/sbt-test/watch/watch-sources/project/plugin.sbt
new file mode 100644
index 000000000..a12e17f90
--- /dev/null
+++ b/sbt/src/sbt-test/watch/watch-sources/project/plugin.sbt
@@ -0,0 +1 @@
+addSbtPlugin("pl.project13.scala" % "sbt-jmh" % "0.3.4")
diff --git a/sbt/src/sbt-test/watch/watch-sources/test b/sbt/src/sbt-test/watch/watch-sources/test
new file mode 100644
index 000000000..50a9e2b19
--- /dev/null
+++ b/sbt/src/sbt-test/watch/watch-sources/test
@@ -0,0 +1,9 @@
+> watchTransitiveSources
+
+-> compile
+
+$ copy-file changes/Foo.scala parent/src/main/scala/Foo.scala
+
+> watchTransitiveSources
+
+> compile