diff --git a/server/src/commands/serve.rs b/server/src/commands/serve.rs
index d11d8b74..e8faae95 100644
--- a/server/src/commands/serve.rs
+++ b/server/src/commands/serve.rs
@@ -25,8 +25,13 @@ pub fn serve(fuzzy_project_location: &Path) {
 
     roblox_studio::install_bundled_plugin().unwrap();
 
-    let session = Arc::new(Session::new(project));
-    let server = Server::new(Arc::from(session));
+    let session = Arc::new({
+        let mut session = Session::new(project);
+        session.start().unwrap();
+        session
+    });
+
+    let server = Server::new(Arc::clone(&session));
 
     println!("Server listening on port 8000.");
 
diff --git a/server/src/lib.rs b/server/src/lib.rs
index eba116c5..315d266c 100644
--- a/server/src/lib.rs
+++ b/server/src/lib.rs
@@ -18,5 +18,6 @@ pub mod project;
 pub mod rbx;
 pub mod roblox_studio;
 pub mod session;
+pub mod vfs;
 pub mod web;
 pub mod web_util;
\ No newline at end of file
diff --git a/server/src/session.rs b/server/src/session.rs
index 37239bcb..483162be 100644
--- a/server/src/session.rs
+++ b/server/src/session.rs
@@ -1,20 +1,36 @@
 use std::{
-    sync::{Arc, RwLock},
+    sync::{Arc, RwLock, Mutex, mpsc},
+    thread,
+    io,
+    time::Duration,
 };
 
 use rand;
 
+use notify::{
+    self,
+    DebouncedEvent,
+    RecommendedWatcher,
+    RecursiveMode,
+    Watcher,
+};
+
 use ::{
     message_queue::MessageQueue,
     rbx::RbxTree,
-    project::Project,
+    project::{Project, ProjectNode},
+    vfs::Vfs,
 };
 
+const WATCH_TIMEOUT_MS: u64 = 100;
+
 pub struct Session {
     project: Project,
     pub session_id: String,
     pub message_queue: Arc<MessageQueue>,
     pub tree: Arc<RwLock<RbxTree>>,
+    vfs: Arc<Mutex<Vfs>>,
+    watchers: Vec<RecommendedWatcher>,
 }
 
 impl Session {
@@ -26,9 +42,81 @@ impl Session {
             project,
             message_queue: Arc::new(MessageQueue::new()),
             tree: Arc::new(RwLock::new(RbxTree::new())),
+            vfs: Arc::new(Mutex::new(Vfs::new())),
+            watchers: Vec::new(),
         }
     }
 
+    pub fn start(&mut self) -> io::Result<()> {
+        fn add_sync_points(vfs: &mut Vfs, project_node: &ProjectNode) -> io::Result<()> {
+            match project_node {
+                ProjectNode::Regular { children, .. } => {
+                    for child in children.values() {
+                        add_sync_points(vfs, child)?;
+                    }
+                },
+                ProjectNode::SyncPoint { path } => {
+                    vfs.add_root(path)?;
+                },
+            }
+
+            Ok(())
+        }
+
+        {
+            let mut vfs = self.vfs.lock().unwrap();
+
+            for child in self.project.tree.values() {
+                add_sync_points(&mut vfs, child)?;
+            }
+
+            for root in vfs.get_roots() {
+                println!("Watching {}", root.display());
+
+                let (watch_tx, watch_rx) = mpsc::channel();
+
+                let mut watcher = notify::watcher(watch_tx, Duration::from_millis(WATCH_TIMEOUT_MS)).unwrap();
+
+                watcher.watch(root, RecursiveMode::Recursive).unwrap();
+                self.watchers.push(watcher);
+
+                let vfs = Arc::clone(&self.vfs);
+
+                thread::spawn(move || {
+                    println!("Thread started");
+                    loop {
+                        match watch_rx.recv() {
+                            Ok(event) => {
+                                println!("Event: {:?}", event);
+
+                                match event {
+                                    DebouncedEvent::Create(path) | DebouncedEvent::Write(path) => {
+                                        let mut vfs = vfs.lock().unwrap();
+                                        vfs.add_or_update(&path).unwrap();
+                                    },
+                                    DebouncedEvent::Remove(path) => {
+                                        let mut vfs = vfs.lock().unwrap();
+                                        vfs.remove(&path);
+                                    },
+                                    DebouncedEvent::Rename(from_path, to_path) => {
+                                        let mut vfs = vfs.lock().unwrap();
+                                        vfs.remove(&from_path);
+                                        vfs.add_or_update(&to_path).unwrap();
+                                    },
+                                    _ => continue,
+                                };
+                            },
+                            Err(_) => break,
+                        };
+                    }
+                    println!("Thread stopped");
+                });
+            }
+        }
+
+        Ok(())
+    }
+
     pub fn get_project(&self) -> &Project {
         &self.project
     }
diff --git a/server/src/vfs.rs b/server/src/vfs.rs
new file mode 100644
index 00000000..70e02c04
--- /dev/null
+++ b/server/src/vfs.rs
@@ -0,0 +1,146 @@
+use std::{
+    collections::{HashMap, HashSet},
+    path::{Path, PathBuf},
+    fs,
+    io,
+};
+
+pub struct Vfs {
+    contents: HashMap<PathBuf, Vec<u8>>,
+    items: HashMap<PathBuf, VfsItem>,
+    roots: HashSet<PathBuf>,
+}
+
+impl Vfs {
+    pub fn new() -> Vfs {
+        Vfs {
+            contents: HashMap::new(),
+            items: HashMap::new(),
+            roots: HashSet::new(),
+        }
+    }
+
+    pub fn add_root<'a, 'b>(&'a mut self, root_path: &'b Path) -> io::Result<&'a VfsItem> {
+        debug_assert!(root_path.is_absolute());
+
+        self.roots.insert(root_path.to_path_buf());
+
+        VfsItem::get(self, root_path)
+    }
+
+    pub fn get_roots(&self) -> &HashSet<PathBuf> {
+        &self.roots
+    }
+
+    pub fn get(&mut self, path: &Path) -> Option<&VfsItem> {
+        debug_assert!(path.is_absolute());
+        debug_assert!(self.is_valid_path(path));
+
+        self.items.get(path)
+    }
+
+    pub fn remove(&mut self, path: &Path) {
+        debug_assert!(path.is_absolute());
+        debug_assert!(self.is_valid_path(path));
+
+        match self.items.remove(path) {
+            Some(item) => match item {
+                VfsItem::File(_) => {
+                    self.contents.remove(path);
+                },
+                VfsItem::Directory(VfsDirectory { children, .. }) => {
+                    for child_path in &children {
+                        self.remove(child_path);
+                    }
+                },
+            },
+            None => {},
+        }
+    }
+
+    pub fn add_or_update<'a, 'b>(&'a mut self, path: &'b Path) -> io::Result<&'a VfsItem> {
+        debug_assert!(path.is_absolute());
+        debug_assert!(self.is_valid_path(path));
+
+        VfsItem::get(self, path)
+    }
+
+    fn is_valid_path(&self, path: &Path) -> bool {
+        let mut is_valid_path = false;
+
+        for root_path in &self.roots {
+            if path.starts_with(root_path) {
+                is_valid_path = true;
+                break;
+            }
+        }
+
+        is_valid_path
+    }
+}
+
+pub struct VfsFile {
+    path: PathBuf,
+}
+
+impl VfsFile {
+    pub fn read_contents<'file, 'vfs>(&'file self, vfs: &'vfs mut Vfs) -> io::Result<&'vfs [u8]> {
+        if !vfs.contents.contains_key(&self.path) {
+            let contents = fs::read(&self.path)?;
+            vfs.contents.insert(self.path.clone(), contents);
+        }
+
+        Ok(vfs.contents.get(&self.path).unwrap())
+    }
+}
+
+pub struct VfsDirectory {
+    path: PathBuf,
+    children: HashSet<PathBuf>,
+}
+
+pub enum VfsItem {
+    File(VfsFile),
+    Directory(VfsDirectory),
+}
+
+impl VfsItem {
+    fn get<'a, 'b>(vfs: &'a mut Vfs, root_path: &'b Path) -> io::Result<&'a VfsItem> {
+        let metadata = fs::metadata(root_path)?;
+
+        if metadata.is_file() {
+            let item = VfsItem::File(VfsFile {
+                path: root_path.to_path_buf(),
+            });
+
+            vfs.items.insert(root_path.to_path_buf(), item);
+
+            let contents = fs::read(root_path)?;
+            vfs.contents.insert(root_path.to_path_buf(), contents);
+
+            Ok(vfs.items.get(root_path).unwrap())
+        } else if metadata.is_dir() {
+            let mut children = HashSet::new();
+
+            for entry in fs::read_dir(root_path)? {
+                let entry = entry?;
+                let path = entry.path();
+
+                VfsItem::get(vfs, &path)?;
+
+                children.insert(path);
+            }
+
+            let item = VfsItem::Directory(VfsDirectory {
+                path: root_path.to_path_buf(),
+                children,
+            });
+
+            vfs.items.insert(root_path.to_path_buf(), item);
+
+            Ok(vfs.items.get(root_path).unwrap())
+        } else {
+            unimplemented!();
+        }
+    }
+}
\ No newline at end of file
diff --git a/test-projects/single-sync-point/lib/main.lua b/test-projects/single-sync-point/lib/main.lua
new file mode 100644
index 00000000..e69de29b
diff --git a/test-projects/single-sync-point/roblox-project.json b/test-projects/single-sync-point/roblox-project.json
new file mode 100644
index 00000000..3681fb2b
--- /dev/null
+++ b/test-projects/single-sync-point/roblox-project.json
@@ -0,0 +1,11 @@
+{
+  "name": "empty",
+  "tree": {
+    "ReplicatedStorage": {
+      "$className": "ReplicatedStorage",
+      "Foo": {
+        "$path": "lib"
+      }
+    }
+  }
+}
\ No newline at end of file