diff --git a/Source/Core/DolphinLib.props b/Source/Core/DolphinLib.props
index b08aa2042b..02a4894609 100644
--- a/Source/Core/DolphinLib.props
+++ b/Source/Core/DolphinLib.props
@@ -679,6 +679,7 @@
     <ClInclude Include="VideoCommon\Assets\TextureAsset.h" />
     <ClInclude Include="VideoCommon\Assets\TextureAssetUtils.h" />
     <ClInclude Include="VideoCommon\Assets\Types.h" />
+    <ClInclude Include="VideoCommon\Assets\WatchableFilesystemAssetLibrary.h" />
     <ClInclude Include="VideoCommon\AsyncRequests.h" />
     <ClInclude Include="VideoCommon\AsyncShaderCompiler.h" />
     <ClInclude Include="VideoCommon\BoundingBox.h" />
diff --git a/Source/Core/VideoCommon/Assets/DirectFilesystemAssetLibrary.cpp b/Source/Core/VideoCommon/Assets/DirectFilesystemAssetLibrary.cpp
index 5734da4961..7933212d3a 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/CustomResourceManager.h"
 #include "VideoCommon/Assets/MaterialAsset.h"
 #include "VideoCommon/Assets/MeshAsset.h"
 #include "VideoCommon/Assets/ShaderAsset.h"
@@ -383,14 +385,46 @@ CustomAssetLibrary::LoadInfo DirectFilesystemAssetLibrary::LoadTexture(const Ass
 void DirectFilesystemAssetLibrary::SetAssetIDMapData(const AssetID& asset_id,
                                                      VideoCommon::Assets::AssetMap asset_path_map)
 {
-  std::lock_guard lk(m_lock);
-  m_asset_id_to_asset_map_path[asset_id] = std::move(asset_path_map);
+  VideoCommon::Assets::AssetMap previous_asset_map;
+  {
+    std::lock_guard lk(m_asset_map_lock);
+    previous_asset_map = m_asset_id_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_asset_id_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& resource_manager = system.GetCustomResourceManager();
+    resource_manager.MarkAssetDirty(iter->second);
+  }
 }
 
 VideoCommon::Assets::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_asset_id_to_asset_map_path.find(asset_id);
       iter != m_asset_id_to_asset_map_path.end())
   {
diff --git a/Source/Core/VideoCommon/Assets/DirectFilesystemAssetLibrary.h b/Source/Core/VideoCommon/Assets/DirectFilesystemAssetLibrary.h
index a3dede8722..e3a8e81334 100644
--- a/Source/Core/VideoCommon/Assets/DirectFilesystemAssetLibrary.h
+++ b/Source/Core/VideoCommon/Assets/DirectFilesystemAssetLibrary.h
@@ -8,16 +8,16 @@
 #include <mutex>
 #include <string>
 
-#include "VideoCommon/Assets/CustomAssetLibrary.h"
 #include "VideoCommon/Assets/CustomTextureData.h"
 #include "VideoCommon/Assets/TextureAsset.h"
 #include "VideoCommon/Assets/Types.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:
   LoadInfo LoadTexture(const AssetID& asset_id, TextureAndSamplerData* data) override;
@@ -32,10 +32,15 @@ public:
   void SetAssetIDMapData(const AssetID& asset_id, Assets::AssetMap asset_path_map);
 
 private:
+  void PathModified(std::string_view path) override;
+
   // Gets the asset map given an asset id
   Assets::AssetMap GetAssetMapForID(const AssetID& asset_id) const;
 
-  mutable std::mutex m_lock;
+  mutable std::mutex m_asset_map_lock;
   std::map<AssetID, Assets::AssetMap> m_asset_id_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.h b/Source/Core/VideoCommon/Assets/WatchableFilesystemAssetLibrary.h
new file mode 100644
index 0000000000..196d311397
--- /dev/null
+++ b/Source/Core/VideoCommon/Assets/WatchableFilesystemAssetLibrary.h
@@ -0,0 +1,14 @@
+// Copyright 2024 Dolphin Emulator Project
+// SPDX-License-Identifier: GPL-2.0-or-later
+
+#pragma once
+
+#include "Common/FilesystemWatcher.h"
+#include "VideoCommon/Assets/CustomAssetLibrary.h"
+
+namespace VideoCommon
+{
+class WatchableFilesystemAssetLibrary : public CustomAssetLibrary, public Common::FilesystemWatcher
+{
+};
+}  // namespace VideoCommon
diff --git a/Source/Core/VideoCommon/CMakeLists.txt b/Source/Core/VideoCommon/CMakeLists.txt
index 0ee9722c42..b4ba6ddf78 100644
--- a/Source/Core/VideoCommon/CMakeLists.txt
+++ b/Source/Core/VideoCommon/CMakeLists.txt
@@ -30,6 +30,7 @@ add_library(videocommon
   Assets/TextureAssetUtils.cpp
   Assets/TextureAssetUtils.h
   Assets/Types.h
+  Assets/WatchableFilesystemAssetLibrary.h
   AsyncRequests.cpp
   AsyncRequests.h
   AsyncShaderCompiler.cpp
diff --git a/Source/Core/VideoCommon/HiresTextures.cpp b/Source/Core/VideoCommon/HiresTextures.cpp
index 302670f0dc..8acc3aff03 100644
--- a/Source/Core/VideoCommon/HiresTextures.cpp
+++ b/Source/Core/VideoCommon/HiresTextures.cpp
@@ -96,6 +96,9 @@ 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);