diff --git a/kclvm/Cargo.lock b/kclvm/Cargo.lock
index fb918b5f1..9a567b372 100644
--- a/kclvm/Cargo.lock
+++ b/kclvm/Cargo.lock
@@ -1532,6 +1532,7 @@ dependencies = [
  "threadpool",
  "tokio",
  "tokio-test",
+ "walkdir",
 ]
 
 [[package]]
diff --git a/kclvm/tools/src/LSP/Cargo.toml b/kclvm/tools/src/LSP/Cargo.toml
index 55c115b4a..0364a46c4 100644
--- a/kclvm/tools/src/LSP/Cargo.toml
+++ b/kclvm/tools/src/LSP/Cargo.toml
@@ -20,6 +20,7 @@ im-rc = "15.0.0"
 rustc_lexer = "0.1.0"
 clap = "4.3.0"
 maplit = "1.0.2"
+walkdir = "2"
 
 kclvm-tools = { path = "../../../tools" }
 kclvm-error = { path = "../../../error" }
diff --git a/kclvm/tools/src/LSP/src/config_manager.rs b/kclvm/tools/src/LSP/src/config_manager.rs
new file mode 100644
index 000000000..2c4d2b645
--- /dev/null
+++ b/kclvm/tools/src/LSP/src/config_manager.rs
@@ -0,0 +1,56 @@
+use serde::{Deserialize, Serialize};
+use std::path::PathBuf;
+
+#[derive(Serialize, Deserialize, Clone)]
+struct JsonFile {
+    watch: PathBuf,
+    recursive: Option<bool>,
+    patterns: Option<Vec<String>>,
+}
+
+#[derive(Debug, Clone)]
+pub struct Config {
+    path: PathBuf,
+    recursive: bool,
+    patterns: Vec<String>,
+}
+
+impl Config {
+    // Load configuration from file
+    pub fn load_from_file(file_path: &PathBuf) -> Result<Self, Box<dyn std::error::Error>> {
+        let file_content = std::fs::read_to_string(file_path)?;
+        let config: JsonFile = serde_json::from_str(&file_content)?;
+        Ok(Config {
+            path: config.watch,
+            recursive: config.recursive.unwrap_or(false),
+            patterns: config.patterns.unwrap_or_default(),
+        })
+    }
+
+    // Get the path from configuration
+    pub fn path(&self) -> &PathBuf {
+        &self.path
+    }
+
+    // Check if the configuration is recursive
+    pub fn is_recursive(&self) -> bool {
+        self.recursive
+    }
+
+    // Get the file patterns from configuration
+    pub fn patterns(&self) -> &Vec<String> {
+        &self.patterns
+    }
+}
+
+// Get the configuration file path
+pub fn get_config_file() -> Option<PathBuf> {
+    let current_dir = std::env::current_dir().ok()?;
+    let config_path = current_dir.join("observer.json");
+
+    if config_path.exists() {
+        Some(config_path)
+    } else {
+        None
+    }
+}
diff --git a/kclvm/tools/src/LSP/src/file.rs b/kclvm/tools/src/LSP/src/file.rs
new file mode 100644
index 000000000..211b9f54d
--- /dev/null
+++ b/kclvm/tools/src/LSP/src/file.rs
@@ -0,0 +1,174 @@
+use crate::config_manager::Config;
+use std::collections::HashMap;
+use std::fs::Metadata;
+use std::path::PathBuf;
+use std::sync::Arc;
+use std::time::Duration;
+use std::time::SystemTime;
+use walkdir::DirEntry;
+use walkdir::WalkDir;
+
+// Define a trait for file handlers
+pub trait FileHandler: Send + Sync {
+    fn handle(&self, file: &File);
+}
+
+// File structure to hold file metadata and data
+#[derive(Debug, Clone, PartialEq)]
+pub struct File {
+    name: String,
+    path: PathBuf,
+    data: FileData,
+}
+
+// Data structure for file metadata
+#[derive(Debug, Clone, PartialEq)]
+struct FileData {
+    last_accesed: SystemTime,
+    last_modified: SystemTime,
+}
+
+impl File {
+    // Create a new File instance from a DirEntry
+    pub fn new(file: &DirEntry) -> Self {
+        let metadata = file.metadata().unwrap();
+        File {
+            name: file.file_name().to_str().unwrap().to_string(),
+            path: file.path().to_path_buf(),
+            data: FileData::new(metadata),
+        }
+    }
+
+    // Get the file name
+    pub fn name(&self) -> String {
+        Arc::new(&self.name).to_string()
+    }
+
+    // Get the file extension
+    pub fn extension(&self) -> Option<String> {
+        self.path
+            .extension()
+            .map(|ext| ext.to_string_lossy().to_string())
+    }
+
+    // Get the display path of the file
+    pub fn ds_path(&self) -> String {
+        Arc::new(&self.path)
+            .to_path_buf()
+            .to_str()
+            .unwrap()
+            .to_string()
+    }
+
+    // Check if the file was deleted
+    pub fn was_deleted(&self) -> bool {
+        !self.path.exists()
+    }
+
+    // Get the last modification time of the file
+    pub fn last_modification(&self) -> SystemTime {
+        self.data.last_modified
+    }
+
+    // Set the last modification time of the file
+    pub fn set_modification(&mut self, time: SystemTime) {
+        self.data.last_modified = time;
+    }
+
+    // Detect file type based on extension
+    pub fn detect_file_type(&self) -> Option<String> {
+        self.extension().map(|ext| {
+            match ext.as_str() {
+                "k" => "K File",
+                "mod" => "Mod File",
+                "JSON" | "json" => "JSON File",
+                "YAML" | "yaml" => "YAML File",
+                _ => "Unknown File Type",
+            }
+            .to_string()
+        })
+    }
+}
+
+impl FileData {
+    // Create a new FileData instance from Metadata
+    pub fn new(metadata: Metadata) -> Self {
+        FileData {
+            last_accesed: metadata.accessed().unwrap(),
+            last_modified: metadata.modified().unwrap(),
+        }
+    }
+}
+
+// Define file events
+#[derive(Debug)]
+pub enum FileEvent {
+    Modified(File),
+}
+
+// Observer structure to watch files
+#[derive(Debug)]
+pub struct Observer {
+    config: Config,
+    files: HashMap<String, File>,
+}
+
+impl Observer {
+    // Initialize a new Observer instance with a configuration
+    pub fn new(config: Config) -> Self {
+        Observer {
+            files: get_files(&config),
+            config,
+        }
+    }
+
+    // Iterator for file events
+    pub fn iter_events(&mut self) -> impl Iterator<Item = FileEvent> + '_ {
+        let interval = Duration::from_millis(500);
+        let last_files = self.files.clone();
+        std::iter::from_fn(move || {
+            let current_files = get_files(&self.config);
+
+            let mut events = Vec::new();
+            for (name, file) in current_files.iter() {
+                if let Some(last_file) = last_files.get(name) {
+                    if file.last_modification() > last_file.last_modification() {
+                        events.push(FileEvent::Modified(file.clone()));
+                    }
+                }
+            }
+            std::thread::sleep(interval);
+            if !events.is_empty() {
+                self.files = current_files;
+                Some(events.remove(0))
+            } else {
+                None
+            }
+        })
+    }
+}
+
+// Get files based on configuration
+fn get_files(config: &Config) -> HashMap<String, File> {
+    let files = match config.is_recursive() {
+        true => WalkDir::new(config.path()).min_depth(1),
+        false => WalkDir::new(config.path()).min_depth(1).max_depth(1),
+    }
+    .into_iter()
+    .filter(|x| x.as_ref().unwrap().metadata().unwrap().is_file())
+    .map(|x| File::new(&x.unwrap()))
+    .map(|f| (f.name(), f))
+    .collect::<HashMap<_, _>>();
+
+    if config.patterns().is_empty() {
+        return files;
+    }
+    let mut filtered_files = HashMap::new();
+    for (name, file) in files {
+        let ext = file.extension().unwrap_or_default();
+        if config.patterns().contains(&ext) {
+            filtered_files.insert(name, file);
+        }
+    }
+    filtered_files
+}
diff --git a/kclvm/tools/src/LSP/src/kcl_watch_system.rs b/kclvm/tools/src/LSP/src/kcl_watch_system.rs
new file mode 100644
index 000000000..56a28b1b6
--- /dev/null
+++ b/kclvm/tools/src/LSP/src/kcl_watch_system.rs
@@ -0,0 +1,77 @@
+use crate::config_manager::Config;
+use crate::file::{FileEvent, FileHandler, Observer};
+use std::collections::HashMap;
+use std::sync::{Arc, Mutex};
+use std::thread;
+
+// HandlerRegistry to register and manage file handlers
+pub struct HandlerRegistry {
+    handlers: HashMap<String, Box<dyn FileHandler>>,
+}
+
+impl HandlerRegistry {
+    // Create a new HandlerRegistry instance
+    pub fn new() -> Self {
+        HandlerRegistry {
+            handlers: HashMap::new(),
+        }
+    }
+
+    // Register a handler for a file type
+    pub fn register_handler(&mut self, file_type: &str, handler: Box<dyn FileHandler>) {
+        self.handlers.insert(file_type.to_string(), handler);
+    }
+
+    // Get a handler for a file type
+    pub fn get_handler(&self, file_type: &str) -> Option<&Box<dyn FileHandler>> {
+        self.handlers.get(file_type)
+    }
+
+    // Handle file event
+    pub fn handle_event(&self, event: &FileEvent) {
+        match event {
+            FileEvent::Modified(file) => {
+                if let Some(handler) =
+                    self.get_handler(&file.detect_file_type().unwrap_or_default())
+                {
+                    handler.handle(file);
+                }
+            }
+        }
+    }
+}
+
+// KCL Watch System structure to manage the observer and handler registry
+pub struct KCLWatchSystem {
+    observer: Arc<Mutex<Observer>>,
+    handler_registry: Arc<Mutex<HandlerRegistry>>,
+}
+
+impl KCLWatchSystem {
+    // Create a new KCL Watch System instance with a configuration
+    pub fn new(config: Config) -> Self {
+        let observer = Arc::new(Mutex::new(Observer::new(config.clone())));
+        let handler_registry = Arc::new(Mutex::new(HandlerRegistry::new()));
+        KCLWatchSystem {
+            observer,
+            handler_registry,
+        }
+    }
+
+    // Start the observer
+    pub fn start_observer(self) {
+        let observer = self.observer.clone();
+        let handler_registry = self.handler_registry.clone();
+
+        thread::spawn(move || loop {
+            let event_opt = {
+                let mut observer_lock = observer.lock().unwrap();
+                observer_lock.iter_events().next()
+            };
+
+            if let Some(event) = event_opt {
+                handler_registry.lock().unwrap().handle_event(&event);
+            }
+        });
+    }
+}
diff --git a/kclvm/tools/src/LSP/src/lib.rs b/kclvm/tools/src/LSP/src/lib.rs
index a67f1f53a..aea3afe3a 100644
--- a/kclvm/tools/src/LSP/src/lib.rs
+++ b/kclvm/tools/src/LSP/src/lib.rs
@@ -2,15 +2,18 @@ mod analysis;
 mod capabilities;
 mod completion;
 mod config;
+mod config_manager;
 mod db;
 mod dispatcher;
 mod document_symbol;
 mod error;
+mod file;
 mod find_refs;
 mod formatting;
 mod from_lsp;
 mod goto_def;
 mod hover;
+mod kcl_watch_system;
 mod main_loop;
 mod notification;
 mod quick_fix;
diff --git a/kclvm/tools/src/LSP/src/main.rs b/kclvm/tools/src/LSP/src/main.rs
index 9a8e8aeeb..445d9b969 100644
--- a/kclvm/tools/src/LSP/src/main.rs
+++ b/kclvm/tools/src/LSP/src/main.rs
@@ -1,11 +1,13 @@
 use crate::main_loop::main_loop;
 use config::Config;
+use kcl_watch_system::KCLWatchSystem;
 use main_loop::app;
 
 mod analysis;
 mod capabilities;
 mod completion;
 mod config;
+mod config_manager;
 mod db;
 mod dispatcher;
 mod document_symbol;
@@ -28,6 +30,9 @@ mod formatting;
 #[cfg(test)]
 mod tests;
 
+mod file;
+mod kcl_watch_system; // Import the new module
+
 /// Main entry point for the `kcl-language-server` executable.
 fn main() -> Result<(), anyhow::Error> {
     let args: Vec<String> = std::env::args().collect();
@@ -82,8 +87,21 @@ fn run_server() -> anyhow::Result<()> {
         .map_err(|_| anyhow::anyhow!("Initialize result error"))?;
 
     connection.initialize_finish(initialize_id, initialize_result)?;
-    let config = Config::default();
+
+    // Load configuration from file
+    let config_file =
+        config_manager::config::get_config_file().expect("Failed to find configuration file");
+    let config =
+        config_manager::Config::load_from_file(&config_file).expect("Failed to load configuration");
+
+    // Create a new KCL Watch System instance
+    let kcl_watch_system = KCLWatchSystem::new(config.clone());
+
+    // Start the observer
+    kcl_watch_system.start_observer();
+
     main_loop(connection, config, initialize_params)?;
+
     io_threads.join()?;
     Ok(())
 }
diff --git a/kclvm/tools/src/LSP/src/notification.rs b/kclvm/tools/src/LSP/src/notification.rs
index ac14cc72d..3734cfbea 100644
--- a/kclvm/tools/src/LSP/src/notification.rs
+++ b/kclvm/tools/src/LSP/src/notification.rs
@@ -1,10 +1,3 @@
-use kclvm_config::{modfile::KCL_MOD_FILE, settings::DEFAULT_SETTING_FILE};
-use lsp_types::notification::{
-    Cancel, DidChangeTextDocument, DidChangeWatchedFiles, DidCloseTextDocument,
-    DidOpenTextDocument, DidSaveTextDocument,
-};
-use std::path::Path;
-
 use crate::{
     dispatcher::NotificationDispatcher,
     from_lsp,
@@ -12,6 +5,12 @@ use crate::{
     util::apply_document_changes,
     word_index::{build_word_index_with_content, word_index_add, word_index_subtract},
 };
+use kclvm_config::{modfile::KCL_MOD_FILE, settings::DEFAULT_SETTING_FILE};
+use lsp_types::notification::{
+    Cancel, DidChangeTextDocument, DidChangeWatchedFiles, DidCloseTextDocument,
+    DidOpenTextDocument, DidSaveTextDocument,
+};
+use std::path::Path;
 
 impl LanguageServerState {
     pub fn on_notification(
@@ -59,7 +58,7 @@ impl LanguageServerState {
         Ok(())
     }
 
-    /// Called when a `DidChangeTextDocument` notification was received.
+    /// Called when a `DidSaveTextDocument` notification was received.
     fn on_did_save_text_document(
         &mut self,
         params: lsp_types::DidSaveTextDocumentParams,
diff --git a/kclvm/tools/src/LSP/src/observer.json b/kclvm/tools/src/LSP/src/observer.json
new file mode 100644
index 000000000..b20f26ab4
--- /dev/null
+++ b/kclvm/tools/src/LSP/src/observer.json
@@ -0,0 +1,5 @@
+{
+    "path": "./",
+    "recursive": true,
+    "patterns": ["k", "mod", "json", "yaml"]
+}