diff --git a/packages/vitest/src/node/watcher.ts b/packages/vitest/src/node/watcher.ts
index 8e5219a7cf7d..d80c99a1b752 100644
--- a/packages/vitest/src/node/watcher.ts
+++ b/packages/vitest/src/node/watcher.ts
@@ -140,6 +140,27 @@ export class VitestWatcher {
     }
   }
 
+  private handleSetupFile(filepath: string) {
+    let isSetupFile: boolean = false
+
+    this.vitest.projects.forEach((project) => {
+      if (!project.config.setupFiles.includes(filepath)) {
+        return
+      }
+
+      this.vitest.state.filesMap.forEach((files) => {
+        files.forEach((file) => {
+          if (file.projectName === project.name) {
+            isSetupFile = true
+            this.changedTests.add(file.filepath)
+          }
+        })
+      })
+    })
+
+    return isSetupFile
+  }
+
   /**
    * @returns A value indicating whether rerun is needed (changedTests was mutated)
    */
@@ -153,6 +174,10 @@ export class VitestWatcher {
       return true
     }
 
+    if (this.handleSetupFile(filepath)) {
+      return true
+    }
+
     const projects = this.vitest.projects.filter((project) => {
       const moduleGraph = project.browser?.vite.moduleGraph || project.vite.moduleGraph
       return moduleGraph.getModulesByFile(filepath)?.size
diff --git a/test/watch/test/workspaces.test.ts b/test/watch/test/workspaces.test.ts
index 6e202e4c6eb8..52c416cb5c9d 100644
--- a/test/watch/test/workspaces.test.ts
+++ b/test/watch/test/workspaces.test.ts
@@ -3,7 +3,7 @@ import { fileURLToPath } from 'node:url'
 import { dirname, resolve } from 'pathe'
 import { afterAll, afterEach, expect, it } from 'vitest'
 
-import { runVitestCli } from '../../test-utils'
+import { runInlineTests, runVitestCli } from '../../test-utils'
 
 const file = fileURLToPath(import.meta.url)
 const dir = dirname(file)
@@ -125,3 +125,44 @@ it('adding a new test file matching project specific config triggers re-run', as
   expect(vitest.stdout).not.include('|node|')
   expect(vitest.stdout).not.include('|happy-dom|')
 })
+
+it('editing a setup file inside the project reruns tests', async () => {
+  const { fs, vitest } = await runInlineTests({
+    'setupFile.js': '',
+    'project-1/basic.test.js': `test("[p1] reruns")`,
+    'project-2/basic.test.js': `test("[p2] doesn\'t rerun")`,
+    'vitest.config.js': {
+      test: {
+        projects: [
+          {
+            test: {
+              name: 'p1',
+              include: ['./project-1/basic.test.js'],
+              setupFiles: ['./setupFile.js'],
+              globals: true,
+            },
+          },
+          {
+            test: {
+              name: 'p2',
+              include: ['./project-2/basic.test.js'],
+              globals: true,
+            },
+          },
+        ],
+      },
+    },
+  }, { watch: true })
+
+  await vitest.waitForStdout('Waiting for file changes')
+  expect(vitest.stdout).toContain('[p1] reruns')
+  expect(vitest.stdout).toContain('[p2] doesn\'t rerun')
+
+  fs.editFile('./setupFile.js', () => '// ---edit')
+
+  vitest.resetOutput()
+  await vitest.waitForStdout('Test Files  1 passed')
+
+  expect(vitest.stdout).toContain('[p1] reruns')
+  expect(vitest.stdout).not.toContain('[p2] doesn\'t rerun')
+})
diff --git a/test/workspaces/vitest.config.ts b/test/workspaces/vitest.config.ts
index 953ea057fa19..7a885957313e 100644
--- a/test/workspaces/vitest.config.ts
+++ b/test/workspaces/vitest.config.ts
@@ -23,7 +23,6 @@ export default defineConfig({
       globalConfigValue: true,
     },
     projects: [
-
       'space_2',
       './space_*/vitest.config.ts',
       './space_1/*.config.ts',