diff --git a/controller/appcontroller.go b/controller/appcontroller.go
index 038d574e9240c..e5469027f5b7e 100644
--- a/controller/appcontroller.go
+++ b/controller/appcontroller.go
@@ -14,6 +14,7 @@ import (
 	"k8s.io/apimachinery/pkg/api/errors"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
+	"k8s.io/apimachinery/pkg/runtime/schema"
 	"k8s.io/apimachinery/pkg/types"
 	"k8s.io/apimachinery/pkg/util/runtime"
 	"k8s.io/apimachinery/pkg/util/strategicpatch"
@@ -148,12 +149,28 @@ func (ctrl *ApplicationController) watchClusterResources(ctx context.Context, it
 			}
 		}()
 		config := item.RESTConfig()
-		ch, err := kube.WatchResourcesWithLabel(ctx, config, "", common.LabelApplicationName)
+		watchStartTime := time.Now()
+		ch, err := ctrl.kubectl.WatchResources(ctx, config, "", func(gvk schema.GroupVersionKind) metav1.ListOptions {
+			ops := metav1.ListOptions{}
+			if !kube.IsCRDGroupVersionKind(gvk) {
+				ops.LabelSelector = common.LabelApplicationName
+			}
+			return ops
+		})
+
 		if err != nil {
 			return err
 		}
 		for event := range ch {
 			eventObj := event.Object.(*unstructured.Unstructured)
+			if kube.IsCRD(eventObj) {
+				// restart if new CRD has been created after watch started
+				if event.Type == watch.Added && watchStartTime.Before(eventObj.GetCreationTimestamp().Time) {
+					return fmt.Errorf("Restarting the watch because a new CRD was added.")
+				} else if event.Type == watch.Deleted {
+					return fmt.Errorf("Restarting the watch because a CRD was deleted.")
+				}
+			}
 			objLabels := eventObj.GetLabels()
 			if objLabels == nil {
 				objLabels = make(map[string]string)
diff --git a/controller/sync_test.go b/controller/sync_test.go
index 7e300031479ea..01dbdcffe5b5f 100644
--- a/controller/sync_test.go
+++ b/controller/sync_test.go
@@ -1,10 +1,14 @@
 package controller
 
 import (
+	"context"
 	"fmt"
 	"sort"
 	"testing"
 
+	"k8s.io/apimachinery/pkg/runtime/schema"
+	"k8s.io/apimachinery/pkg/watch"
+
 	"github.com/argoproj/argo-cd/pkg/apis/application/v1alpha1"
 	"github.com/argoproj/argo-cd/util/kube"
 	log "github.com/sirupsen/logrus"
@@ -25,6 +29,13 @@ type kubectlOutput struct {
 
 type mockKubectlCmd struct {
 	commands map[string]kubectlOutput
+	events   chan watch.Event
+}
+
+func (k mockKubectlCmd) WatchResources(
+	ctx context.Context, config *rest.Config, namespace string, selector func(kind schema.GroupVersionKind) v1.ListOptions) (chan watch.Event, error) {
+
+	return k.events, nil
 }
 
 func (k mockKubectlCmd) DeleteResource(config *rest.Config, obj *unstructured.Unstructured, namespace string) error {
diff --git a/util/kube/ctl.go b/util/kube/ctl.go
index 9b9d01340850b..9f942bc906086 100644
--- a/util/kube/ctl.go
+++ b/util/kube/ctl.go
@@ -2,16 +2,20 @@ package kube
 
 import (
 	"bytes"
+	"context"
 	"encoding/json"
 	"fmt"
 	"io/ioutil"
 	"os/exec"
 	"strings"
+	"sync"
 
 	"github.com/pkg/errors"
 	log "github.com/sirupsen/logrus"
 	metav1 "k8s.io/apimachinery/pkg/apis/meta/v1"
 	"k8s.io/apimachinery/pkg/apis/meta/v1/unstructured"
+	"k8s.io/apimachinery/pkg/runtime/schema"
+	"k8s.io/apimachinery/pkg/watch"
 	"k8s.io/client-go/discovery"
 	"k8s.io/client-go/dynamic"
 	"k8s.io/client-go/rest"
@@ -21,10 +25,74 @@ type Kubectl interface {
 	ApplyResource(config *rest.Config, obj *unstructured.Unstructured, namespace string, dryRun, force bool) (string, error)
 	ConvertToVersion(obj *unstructured.Unstructured, group, version string) (*unstructured.Unstructured, error)
 	DeleteResource(config *rest.Config, obj *unstructured.Unstructured, namespace string) error
+	WatchResources(ctx context.Context, config *rest.Config, namespace string, selector func(kind schema.GroupVersionKind) metav1.ListOptions) (chan watch.Event, error)
 }
 
 type KubectlCmd struct{}
 
+// WatchResources Watches all the existing resources with the provided label name in the provided namespace in the cluster provided by the config
+func (k KubectlCmd) WatchResources(
+	ctx context.Context, config *rest.Config, namespace string, selector func(kind schema.GroupVersionKind) metav1.ListOptions) (chan watch.Event, error) {
+
+	log.Infof("Start watching for resources changes with in cluster %s", config.Host)
+	dynClientPool := dynamic.NewDynamicClientPool(config)
+	disco, err := discovery.NewDiscoveryClientForConfig(config)
+	if err != nil {
+		return nil, err
+	}
+	serverResources, err := GetCachedServerResources(config.Host, disco)
+	if err != nil {
+		return nil, err
+	}
+
+	items := make([]struct {
+		resource dynamic.ResourceInterface
+		gvk      schema.GroupVersionKind
+	}, 0)
+	for _, apiResourcesList := range serverResources {
+		for i := range apiResourcesList.APIResources {
+			apiResource := apiResourcesList.APIResources[i]
+			watchSupported := false
+			for _, verb := range apiResource.Verbs {
+				if verb == watchVerb {
+					watchSupported = true
+					break
+				}
+			}
+			if watchSupported && !isExcludedResourceGroup(apiResource) {
+				dclient, err := dynClientPool.ClientForGroupVersionKind(schema.FromAPIVersionAndKind(apiResourcesList.GroupVersion, apiResource.Kind))
+				if err != nil {
+					return nil, err
+				}
+				items = append(items, struct {
+					resource dynamic.ResourceInterface
+					gvk      schema.GroupVersionKind
+				}{resource: dclient.Resource(&apiResource, namespace), gvk: schema.FromAPIVersionAndKind(apiResourcesList.GroupVersion, apiResource.Kind)})
+			}
+		}
+	}
+	ch := make(chan watch.Event)
+	go func() {
+		var wg sync.WaitGroup
+		wg.Add(len(items))
+		for i := 0; i < len(items); i++ {
+			item := items[i]
+			go func() {
+				defer wg.Done()
+				w, err := item.resource.Watch(selector(item.gvk))
+				if err == nil {
+					defer w.Stop()
+					copyEventsChannel(ctx, w.ResultChan(), ch)
+				}
+			}()
+		}
+		wg.Wait()
+		close(ch)
+		log.Infof("Stop watching for resources changes with in cluster %s", config.ServerName)
+	}()
+	return ch, nil
+}
+
 // DeleteResource deletes resource
 func (k KubectlCmd) DeleteResource(config *rest.Config, obj *unstructured.Unstructured, namespace string) error {
 	dynClientPool := dynamic.NewDynamicClientPool(config)