diff --git a/Source/Core/DolphinLib.props b/Source/Core/DolphinLib.props
index e236276ce9c2..c43c0027a965 100644
--- a/Source/Core/DolphinLib.props
+++ b/Source/Core/DolphinLib.props
@@ -663,6 +663,7 @@
     <ClInclude Include="VideoCommon\Assets\MeshAsset.h" />
     <ClInclude Include="VideoCommon\Assets\ShaderAsset.h" />
     <ClInclude Include="VideoCommon\Assets\TextureAsset.h" />
+    <ClInclude Include="VideoCommon\Assets\WatchableFilesystemAssetLibrary.h" />
     <ClInclude Include="VideoCommon\AsyncRequests.h" />
     <ClInclude Include="VideoCommon\AsyncShaderCompiler.h" />
     <ClInclude Include="VideoCommon\BoundingBox.h" />
@@ -1308,6 +1309,7 @@
     <ClCompile Include="VideoCommon\Assets\MeshAsset.cpp" />
     <ClCompile Include="VideoCommon\Assets\ShaderAsset.cpp" />
     <ClCompile Include="VideoCommon\Assets\TextureAsset.cpp" />
+    <ClCompile Include="VideoCommon\Assets\WatchableFilesystemAssetLibrary.cpp" />
     <ClCompile Include="VideoCommon\AsyncRequests.cpp" />
     <ClCompile Include="VideoCommon\AsyncShaderCompiler.cpp" />
     <ClCompile Include="VideoCommon\BoundingBox.cpp" />
diff --git a/Source/Core/VideoCommon/Assets/DirectFilesystemAssetLibrary.cpp b/Source/Core/VideoCommon/Assets/DirectFilesystemAssetLibrary.cpp
index 90d77d8ec96b..ff30a14c4c1b 100644
--- a/Source/Core/VideoCommon/Assets/DirectFilesystemAssetLibrary.cpp
+++ b/Source/Core/VideoCommon/Assets/DirectFilesystemAssetLibrary.cpp
@@ -13,6 +13,8 @@
 #include "Common/JsonUtil.h"
 #include "Common/Logging/Log.h"
 #include "Common/StringUtil.h"
+#include "Core/System.h"
+#include "VideoCommon/Assets/CustomAssetLoader.h"
 #include "VideoCommon/Assets/MaterialAsset.h"
 #include "VideoCommon/Assets/MeshAsset.h"
 #include "VideoCommon/Assets/ShaderAsset.h"
@@ -53,7 +55,7 @@ std::size_t GetAssetSize(const CustomTextureData& data)
 CustomAssetLibrary::TimeType
 DirectFilesystemAssetLibrary::GetLastAssetWriteTime(const AssetID& asset_id) const
 {
-  std::lock_guard lk(m_lock);
+  std::lock_guard lk(m_asset_map_lock);
   if (auto iter = m_assetid_to_asset_map_path.find(asset_id);
       iter != m_assetid_to_asset_map_path.end())
   {
@@ -436,8 +438,40 @@ CustomAssetLibrary::LoadInfo DirectFilesystemAssetLibrary::LoadTexture(const Ass
 void DirectFilesystemAssetLibrary::SetAssetIDMapData(const AssetID& asset_id,
                                                      AssetMap asset_path_map)
 {
-  std::lock_guard lk(m_lock);
-  m_assetid_to_asset_map_path[asset_id] = std::move(asset_path_map);
+  AssetMap previous_asset_map;
+  {
+    std::lock_guard lk(m_asset_map_lock);
+    previous_asset_map = m_assetid_to_asset_map_path[asset_id];
+  }
+
+  {
+    std::lock_guard lk(m_path_map_lock);
+    for (const auto& [name, path] : previous_asset_map)
+    {
+      m_path_to_asset_id.erase(PathToString(path));
+    }
+
+    for (const auto& [name, path] : asset_path_map)
+    {
+      m_path_to_asset_id[PathToString(path)] = asset_id;
+    }
+  }
+
+  {
+    std::lock_guard lk(m_asset_map_lock);
+    m_assetid_to_asset_map_path[asset_id] = std::move(asset_path_map);
+  }
+}
+
+void DirectFilesystemAssetLibrary::PathModified(std::string_view path)
+{
+  std::lock_guard lk(m_path_map_lock);
+  if (const auto iter = m_path_to_asset_id.find(path); iter != m_path_to_asset_id.end())
+  {
+    auto& system = Core::System::GetInstance();
+    auto& loader = system.GetCustomAssetLoader();
+    loader.ReloadAsset(iter->second);
+  }
 }
 
 bool DirectFilesystemAssetLibrary::LoadMips(const std::filesystem::path& asset_path,
@@ -495,7 +529,7 @@ bool DirectFilesystemAssetLibrary::LoadMips(const std::filesystem::path& asset_p
 DirectFilesystemAssetLibrary::AssetMap
 DirectFilesystemAssetLibrary::GetAssetMapForID(const AssetID& asset_id) const
 {
-  std::lock_guard lk(m_lock);
+  std::lock_guard lk(m_asset_map_lock);
   if (auto iter = m_assetid_to_asset_map_path.find(asset_id);
       iter != m_assetid_to_asset_map_path.end())
   {
diff --git a/Source/Core/VideoCommon/Assets/DirectFilesystemAssetLibrary.h b/Source/Core/VideoCommon/Assets/DirectFilesystemAssetLibrary.h
index c4d99baf82c1..c63ca77ad38e 100644
--- a/Source/Core/VideoCommon/Assets/DirectFilesystemAssetLibrary.h
+++ b/Source/Core/VideoCommon/Assets/DirectFilesystemAssetLibrary.h
@@ -8,14 +8,14 @@
 #include <mutex>
 #include <string>
 
-#include "VideoCommon/Assets/CustomAssetLibrary.h"
 #include "VideoCommon/Assets/CustomTextureData.h"
+#include "VideoCommon/Assets/WatchableFilesystemAssetLibrary.h"
 
 namespace VideoCommon
 {
 // This class implements 'CustomAssetLibrary' and loads any assets
 // directly from the filesystem
-class DirectFilesystemAssetLibrary final : public CustomAssetLibrary
+class DirectFilesystemAssetLibrary final : public WatchableFilesystemAssetLibrary
 {
 public:
   using AssetMap = std::map<std::string, std::filesystem::path>;
@@ -34,13 +34,18 @@ class DirectFilesystemAssetLibrary final : public CustomAssetLibrary
   void SetAssetIDMapData(const AssetID& asset_id, AssetMap asset_path_map);
 
 private:
+  void PathModified(std::string_view path) override;
+
   // Loads additional mip levels into the texture structure until _mip<N> texture is not found
   bool LoadMips(const std::filesystem::path& asset_path, CustomTextureData::ArraySlice* data);
 
   // Gets the asset map given an asset id
   AssetMap GetAssetMapForID(const AssetID& asset_id) const;
 
-  mutable std::mutex m_lock;
+  mutable std::mutex m_asset_map_lock;
   std::map<AssetID, std::map<std::string, std::filesystem::path>> m_assetid_to_asset_map_path;
+
+  mutable std::mutex m_path_map_lock;
+  std::map<std::string, AssetID, std::less<>> m_path_to_asset_id;
 };
 }  // namespace VideoCommon
diff --git a/Source/Core/VideoCommon/Assets/WatchableFilesystemAssetLibrary.cpp b/Source/Core/VideoCommon/Assets/WatchableFilesystemAssetLibrary.cpp
new file mode 100644
index 000000000000..4808463b4a0f
--- /dev/null
+++ b/Source/Core/VideoCommon/Assets/WatchableFilesystemAssetLibrary.cpp
@@ -0,0 +1,57 @@
+// Copyright 2024 Dolphin Emulator Project
+// SPDX-License-Identifier: GPL-2.0-or-later
+
+#include "VideoCommon/Assets/WatchableFilesystemAssetLibrary.h"
+
+#include "Common/Logging/Log.h"
+#include "Common/StringUtil.h"
+
+namespace VideoCommon
+{
+void WatchableFilesystemAssetLibrary::Watch(const std::string& path)
+{
+  const auto [iter, inserted] = m_watched_paths.try_emplace(path, nullptr);
+  if (inserted)
+  {
+    iter->second = std::make_unique<wtr::watch>(path, [this](wtr::event e) {
+      if (e.path_type == wtr::event::path_type::watcher)
+      {
+        return;
+      }
+
+      if (e.effect_type == wtr::event::effect_type::create)
+      {
+        const auto path = WithUnifiedPathSeparators(PathToString(e.path_name));
+        PathAdded(path);
+      }
+      else if (e.effect_type == wtr::event::effect_type::modify)
+      {
+        const auto path = WithUnifiedPathSeparators(PathToString(e.path_name));
+        PathModified(path);
+      }
+      else if (e.effect_type == wtr::event::effect_type::rename)
+      {
+        if (!e.associated)
+        {
+          WARN_LOG_FMT(VIDEO, "Rename on path seen without association!");
+          return;
+        }
+
+        const auto old_path = WithUnifiedPathSeparators(PathToString(e.path_name));
+        const auto new_path = WithUnifiedPathSeparators(PathToString(e.associated->path_name));
+        PathRenamed(old_path, new_path);
+      }
+      else if (e.effect_type == wtr::event::effect_type::destroy)
+      {
+        const auto path = WithUnifiedPathSeparators(PathToString(e.path_name));
+        PathDeleted(path);
+      }
+    });
+  }
+}
+
+void WatchableFilesystemAssetLibrary::Unwatch(const std::string& path)
+{
+  m_watched_paths.erase(path);
+}
+}  // namespace VideoCommon
diff --git a/Source/Core/VideoCommon/Assets/WatchableFilesystemAssetLibrary.h b/Source/Core/VideoCommon/Assets/WatchableFilesystemAssetLibrary.h
new file mode 100644
index 000000000000..947127a469fa
--- /dev/null
+++ b/Source/Core/VideoCommon/Assets/WatchableFilesystemAssetLibrary.h
@@ -0,0 +1,38 @@
+// Copyright 2024 Dolphin Emulator Project
+// SPDX-License-Identifier: GPL-2.0-or-later
+
+#pragma once
+
+#include <map>
+#include <memory>
+#include <string>
+#include <string_view>
+
+#include <wtr/watcher.hpp>
+
+#include "VideoCommon/Assets/CustomAssetLibrary.h"
+
+namespace VideoCommon
+{
+class WatchableFilesystemAssetLibrary : public CustomAssetLibrary
+{
+public:
+  void Watch(const std::string& path);
+  void Unwatch(const std::string& path);
+
+private:
+  // A new file or folder was added to one of the watched paths
+  virtual void PathAdded(std::string_view path) {}
+
+  // A file or folder was modified in one of the watched paths
+  virtual void PathModified(std::string_view path) {}
+
+  // A file or folder was renamed in one of the watched paths
+  virtual void PathRenamed(std::string_view old_path, std::string_view new_path) {}
+
+  // A file or folder was deleted in one of the watched paths
+  virtual void PathDeleted(std::string_view path) {}
+
+  std::map<std::string, std::unique_ptr<wtr::watch>> m_watched_paths;
+};
+}  // namespace VideoCommon
diff --git a/Source/Core/VideoCommon/CMakeLists.txt b/Source/Core/VideoCommon/CMakeLists.txt
index 039e1abad90b..e166b9e07192 100644
--- a/Source/Core/VideoCommon/CMakeLists.txt
+++ b/Source/Core/VideoCommon/CMakeLists.txt
@@ -26,6 +26,8 @@ add_library(videocommon
   Assets/ShaderAsset.h
   Assets/TextureAsset.cpp
   Assets/TextureAsset.h
+  Assets/WatchableFilesystemAssetLibrary.cpp
+  Assets/WatchableFilesystemAssetLibrary.h
   AsyncRequests.cpp
   AsyncRequests.h
   AsyncShaderCompiler.cpp
diff --git a/Source/Core/VideoCommon/HiresTextures.cpp b/Source/Core/VideoCommon/HiresTextures.cpp
index 2f5fd93709f5..aa8dc53a4b92 100644
--- a/Source/Core/VideoCommon/HiresTextures.cpp
+++ b/Source/Core/VideoCommon/HiresTextures.cpp
@@ -104,6 +104,9 @@ void HiresTexture::Update()
 
   for (const auto& texture_directory : texture_directories)
   {
+    // Watch this directory for any texture reloads
+    s_file_library->Watch(texture_directory);
+
     const auto texture_paths =
         Common::DoFileSearch({texture_directory}, extensions, /*recursive*/ true);