diff --git a/src/server/apps.ts b/src/server/apps.ts
index 3af2a33..c640fef 100644
--- a/src/server/apps.ts
+++ b/src/server/apps.ts
@@ -1,5 +1,8 @@
 import type { Subprocess } from 'bun'
-import { existsSync, readdirSync, readFileSync, writeFileSync, watch } from 'fs'
+import {
+  existsSync, readdirSync, readFileSync, writeFileSync,
+  statSync, watch
+} from 'fs'
 import { join } from 'path'
 import type { App as SharedApp, AppState, LogLine } from '../shared/types'
 
@@ -208,9 +211,8 @@ export const stopApp = (dir: string) => {
 }
 
 const watchAppsDir = () => {
-  watch(APPS_DIR, { recursive: true }, (_event, filename) => {
+  watch(APPS_DIR, { recursive: true }, (event, filename) => {
     if (!filename) return
-    if (!filename.includes('/')) return
 
     // Extract the app directory name from the path (e.g., "myapp/package.json" -> "myapp")
     const dir = filename.split('/')[0]!
@@ -230,6 +232,13 @@ const watchAppsDir = () => {
 
     const app = _apps.get(dir)!
 
+    // check if app was deleted
+    if (!isDir(join(APPS_DIR, dir))) {
+      _apps.delete(dir)
+      update()
+      return
+    }
+
     // Only care about package.json changes for existing apps
     if (!filename.endsWith('package.json')) return
 
@@ -256,6 +265,7 @@ const watchAppsDir = () => {
       app.state = 'invalid'
       update()
     }
+
     if (!error && app.state === 'invalid') {
       app.state = 'stopped'
       update()
@@ -263,6 +273,14 @@ const watchAppsDir = () => {
   })
 }
 
+function isDir(path: string): boolean {
+  try {
+    return statSync(path).isDirectory()
+  } catch {
+    return false
+  }
+}
+
 export const initApps = () => {
   discoverApps()
   runApps()