diff --git a/src/conf.c b/src/conf.c
index f215f710..813ef68e 100644
--- a/src/conf.c
+++ b/src/conf.c
@@ -25,8 +25,10 @@
 
 #include <dirent.h>
 #include <string.h>
+#include <sys/inotify.h>
 #include <sys/resource.h>
 #include <lite/lite.h>
+#include <lite/queue.h>		/* BSD sys/queue.h API */
 #include <sys/time.h>
 
 #include "finit.h"
@@ -40,8 +42,17 @@
 	(!strncasecmp(l, c, strlen(c)) && (x = (l) + strlen(c)))
 
 struct rlimit global_rlimit[RLIMIT_NLIMITS];
-static int parse_conf(char *file);
 
+struct conf_change {
+	TAILQ_ENTRY(conf_change) link;
+	char *name;
+};
+
+static uev_t w1, w2, w3;
+static TAILQ_HEAD(head, conf_change) conf_change_list = TAILQ_HEAD_INITIALIZER(conf_change_list);
+
+static int parse_conf(char *file);
+static void drop_changes(void);
 
 void conf_parse_cmdline(void)
 {
@@ -308,7 +319,7 @@ static void parse_static(char *line)
 	}
 }
 
-static void parse_dynamic(char *line, struct rlimit rlimit[], struct timeval *mtime)
+static void parse_dynamic(char *line, struct rlimit rlimit[], char *file)
 {
 	char *x;
 	char cmd[CMD_SIZE];
@@ -334,26 +345,26 @@ static void parse_dynamic(char *line, struct rlimit rlimit[], struct timeval *mt
 
 	/* Monitored daemon, will be respawned on exit */
 	if (MATCH_CMD(line, "service ", x)) {
-		service_register(SVC_TYPE_SERVICE, x, rlimit, mtime);
+		service_register(SVC_TYPE_SERVICE, x, rlimit, file);
 		return;
 	}
 
 	/* One-shot task, will not be respawned */
 	if (MATCH_CMD(line, "task ", x)) {
-		service_register(SVC_TYPE_TASK, x, rlimit, mtime);
+		service_register(SVC_TYPE_TASK, x, rlimit, file);
 		return;
 	}
 
 	/* Like task but waits for completion, useful w/ [S] */
 	if (MATCH_CMD(line, "run ", x)) {
-		service_register(SVC_TYPE_RUN, x, rlimit, mtime);
+		service_register(SVC_TYPE_RUN, x, rlimit, file);
 		return;
 	}
 
 	/* Classic inetd service */
 	if (MATCH_CMD(line, "inetd ", x)) {
 #ifdef INETD_ENABLED
-		service_register(SVC_TYPE_INETD, x, rlimit, mtime);
+		service_register(SVC_TYPE_INETD, x, rlimit, file);
 #else
 		_e("Finit built with inetd support disabled, cannot register service inetd %s!", x);
 #endif
@@ -368,7 +379,7 @@ static void parse_dynamic(char *line, struct rlimit rlimit[], struct timeval *mt
 
 	/* Regular or serial TTYs to run getty */
 	if (MATCH_CMD(line, "tty ", x)) {
-		tty_register(strip_line(x), rlimit, mtime);
+		tty_register(strip_line(x), rlimit, file);
 		return;
 	}
 }
@@ -384,7 +395,7 @@ static void tabstospaces(char *line)
 	}
 }
 
-static int parse_conf_dynamic(char *file, struct timeval *mtime)
+static int parse_conf_dynamic(char *file)
 {
 	FILE *fp;
 	struct rlimit rlimit[RLIMIT_NLIMITS];
@@ -409,7 +420,7 @@ static int parse_conf_dynamic(char *file, struct timeval *mtime)
 		tabstospaces(line);
 		_d("%s", line);
 
-		parse_dynamic(line, rlimit, mtime);
+		parse_dynamic(line, rlimit, file);
 	}
 
 	fclose(fp);
@@ -458,21 +469,26 @@ static int parse_conf(char *file)
 	return 0;
 }
 
-/* Reload all *.conf in /etc/finit.d/ */
-int conf_reload_dynamic(void)
+/*
+ * Reload /etc/finit.conf and all *.conf in /etc/finit.d/
+ */
+int conf_reload(void)
 {
 	int i, num;
-	char *dir = rcsd;
 	struct dirent **e;
 
 	/* Mark and sweep */
 	svc_mark_dynamic();
 	tty_mark();
 
-	num = scandir(dir, &e, NULL, alphasort);
+	/* First, read /etc/finit.conf */
+	parse_conf(FINIT_CONF);
+
+	/* Next, read all *.conf in /etc/finit.d/ */
+	num = scandir(rcsd, &e, NULL, alphasort);
 	if (num < 0) {
-		_d("Skipping %s, no files found ...", dir);
-		return 1;
+		_d("Skipping %s, no files found ...", rcsd);
+		return 0;
 	}
 
 	/* Update global limits in case operator used prlimit(1) on us */
@@ -484,13 +500,11 @@ int conf_reload_dynamic(void)
 		char  path[LINE_SIZE];
 		size_t len;
 		struct stat st;
-		struct timeval mtime;
 
-		snprintf(path, sizeof(path), "%s/%s", dir, name);
+		snprintf(path, sizeof(path), "%s/%s", rcsd, name);
 
 		/* Check that it's an actual file ... beyond any symlinks */
 		if (lstat(path, &st)) {
-		lost:
 			_d("Skipping %s, cannot access: %s", path, strerror(errno));
 			continue;
 		}
@@ -521,27 +535,210 @@ int conf_reload_dynamic(void)
 			continue;
 		}
 
-		if (stat(path, &st))
-			goto lost; /* Weird, lost file between here and lstat() */
-
-		TIMESPEC_TO_TIMEVAL(&mtime, &st.st_mtim);
-		parse_conf_dynamic(path, &mtime);
+		parse_conf_dynamic(path);
 	}
 
 	while (num--)
 		free(e[num]);
 	free(e);
 
+	/* Drop record of all .conf changes */
+	drop_changes();
+
+	/*
+	 * Set host name, from %DEFHOST, *.conf or /etc/hostname.  The
+	 * latter wins, if neither exists we default to "noname"
+	 */
 	set_hostname(&hostname);
 
 	return 0;
 }
 
-int conf_parse_config(void)
+static struct conf_change *conf_find(char *file)
+{
+	struct conf_change *node, *tmp;
+
+	TAILQ_FOREACH_SAFE(node, &conf_change_list, link, tmp) {
+		if (string_compare(node->name, file))
+			return node;
+	}
+
+	return NULL;
+}
+
+static void drop_change(struct conf_change *node)
+{
+	if (!node)
+		return;
+
+	TAILQ_REMOVE(&conf_change_list, node, link);
+	free(node->name);
+	free(node);
+}
+
+
+static void drop_changes(void)
+{
+	struct conf_change *node, *tmp;
+
+	TAILQ_FOREACH_SAFE(node, &conf_change_list, link, tmp)
+		drop_change(node);
+}
+
+static int do_change(char *name, uint32_t mask)
+{
+	struct conf_change *node;
+
+	node = conf_find(name);
+	if (mask & (IN_DELETE | IN_MOVED_FROM)) {
+		drop_change(node);
+		return 0;
+	}
+
+	if (node) {
+		_d("Event already registered for %s ...", name);
+		return 0;
+	}
+
+	node = malloc(sizeof(*node));
+	if (!node)
+		return 1;
+
+	node->name = strdup(name);
+	if (!node->name) {
+		free(node);
+		return 1;
+	}
+
+	TAILQ_INSERT_HEAD(&conf_change_list, node,link);
+
+	return 0;
+}
+
+int conf_changed(char *file)
+{
+	char *ptr;
+
+	if (file && (ptr = strrchr(file, '/')))
+		file = ++ptr;
+
+	if (conf_find(file))
+		return 1;
+
+	return 0;
+}
+
+static void conf_cb(uev_t *w, void *arg, int events)
+{
+	static char ev_buf[8 *(sizeof(struct inotify_event) + NAME_MAX + 1) + 1];
+	struct inotify_event *ev;
+	ssize_t sz, len;
+
+	sz = read(w->fd, ev_buf, sizeof(ev_buf) - 1);
+	if (sz <= 0) {
+		_pe("invalid inotify event");
+		return;
+	}
+	ev_buf[sz] = 0;
+	ev = (struct inotify_event *)ev_buf;
+
+	if (arg) {
+		do_change(arg, ev->mask);
+		return;
+	}
+
+	for (ev = (void *)ev_buf; sz > (ssize_t)sizeof(*ev);
+	     len = sizeof(*ev) + ev->len, ev = (void *)ev + len, sz -= len) {
+		if (do_change(ev->name, ev->mask)) {
+			_pe("conf_monitor: Out of memory");
+			break;
+		}
+	}
+}
+
+static int add_watcher(uev_ctx_t *ctx, uev_t *w, char *path, uint32_t opt)
+{
+	struct stat st;
+	uint32_t mask = IN_CREATE | IN_DELETE | IN_MODIFY | IN_ATTRIB | IN_MOVE;
+	char *arg = NULL;
+	int fd, wd;
+
+	if (!ctx)
+		return 0;
+
+	if (stat(path, &st)) {
+		_d("No such file or directory, skipping %s", path);
+		w->fd = -1;
+		return 0;
+	}
+	if (!S_ISDIR(st.st_mode)) {
+		arg = strrchr(path, '/');
+		if (!arg)
+			arg = path;
+		else
+			arg++;
+	}
+
+	if (w->fd >= 0)
+		close(w->fd);
+
+	fd = inotify_init1(IN_NONBLOCK | IN_CLOEXEC);
+	if (fd < 0) {
+		_pe("Failed creating inotify descriptor");
+		w->fd = -1;
+		return 1;
+	}
+
+	/*
+	 * Only forward error, don't report error,
+	 * user may not have @path and that's OK
+	 */
+	wd = inotify_add_watch(fd, path, mask | opt);
+	if (wd < 0) {
+		w->fd = -1;
+		close(fd);
+		return 1;
+	}
+
+	if (uev_io_init(ctx, w, conf_cb, arg, fd, UEV_READ)) {
+		_pe("Failed setting up I/O callback for %s watcher", path);
+		w->fd = -1;
+		close(fd);
+		return 1;
+	}
+
+	return 0;
+}
+
+/*
+ * Set up inotify watcher and load all *.conf in /etc/finit.d/
+ */
+int conf_monitor(uev_ctx_t *ctx)
+{
+	int rc = 0;
+
+	/*
+	 * If only one watcher fails, that's OK.  A user may have only
+	 * one of /etc/finit.conf or /etc/finit.d in use, and may also
+	 * have or not have symlinks in place.  We need to monitor for
+	 * changes to either symlink or target.
+	 */
+	rc += add_watcher(ctx, &w1, FINIT_RCSD, 0);
+	rc += add_watcher(ctx, &w2, FINIT_RCSD "/available", IN_DONT_FOLLOW);
+	rc += add_watcher(ctx, &w3, FINIT_CONF, 0);
+
+	return rc + conf_reload();
+}
+
+/*
+ * Prepare .conf parser and load all .conf files
+ */
+int conf_init(void)
 {
 	hostname = strdup(DEFHOST);
+	w1.fd = w2.fd = w3.fd = -1;
 
-	return parse_conf(FINIT_CONF) || conf_reload_dynamic();
+	return conf_monitor(NULL);
 }
 
 /**
diff --git a/src/conf.h b/src/conf.h
index fd830d89..70144606 100644
--- a/src/conf.h
+++ b/src/conf.h
@@ -31,11 +31,14 @@ extern struct rlimit global_rlimit[];
 int   str2rlim(char *str);
 char *rlim2str(int rlim);
 
+int  conf_init            (void);
+void conf_reload          (void);
+int  conf_changed         (char *file);
+int  conf_monitor         (uev_ctx_t *ctx);
+
 void conf_parse_cmdline   (void);
 int  conf_parse_runlevels (char *runlevels);
 void conf_parse_cond      (svc_t *svc, char *cond);
-int  conf_parse_config    (void);
-void conf_reload_dynamic  (void);
 
 #endif	/* FINIT_CONF_H_ */
 
diff --git a/src/finit.c b/src/finit.c
index c89baf7d..ed0e3c18 100644
--- a/src/finit.c
+++ b/src/finit.c
@@ -447,19 +447,15 @@ int main(int argc, char* argv[])
 	}
 
 	/*
-	 * Parse /etc/finit.conf and all *.conf in /etc/finit.d/ to
-	 * figure out how to bootstrap the system.
+	 * Initialize .conf system and load static /etc/finit.conf 
 	 */
-	conf_parse_config();
+	conf_init();
 
 	/*
 	 * Start built-in watchdog as soon as possible, if enabled
 	 */
 	wdogpid = watchdog(argv[0]);
 
-	/* Set hostname as soon as possible, for syslog et al. */
-	set_hostname(&hostname);
-
 	/*
 	 * Mount filesystems
 	 */
@@ -488,12 +484,10 @@ int main(int argc, char* argv[])
 	sig_setup(&loop);
 
 	/*
-	 * Reload all *.conf in /etc/finit.d, the mount command (above)
-	 * may have brought in new files (overlayfs).
-	 *
-	 * XXX: Can we detect remounted /etc to trigger this instead?
+	 * Set up inotify watcher for /etc/finit.d and read all .conf
+	 * files to figure out how to bootstrap the system.
 	 */
-	conf_reload_dynamic();
+	conf_monitor(&loop);
 
 	_d("Base FS up, calling hooks ...");
 	plugin_run_hooks(HOOK_BASEFS_UP);
diff --git a/src/service.c b/src/service.c
index 6d33e364..16fe6b2e 100644
--- a/src/service.c
+++ b/src/service.c
@@ -474,7 +474,7 @@ void service_runlevel(int newlevel)
  * @type:   %SVC_TYPE_SERVICE(0), %SVC_TYPE_TASK(1), %SVC_TYPE_RUN(2)
  * @cfg:    Configuration, complete command, with -- for description text
  * @rlimit: Limits for this service/task/run/inetd, may be global limits
- * @mtime:  The modification time if service is loaded from /etc/finit.d
+ * @file:   The file name service was loaded from
  *
  * This function is used to register commands to be run on different
  * system runlevels with optional username.  The @type argument details
@@ -521,7 +521,7 @@ void service_runlevel(int newlevel)
  * Returns:
  * POSIX OK(0) on success, or non-zero errno exit status on failure.
  */
-int service_register(int type, char *cfg, struct rlimit rlimit[], struct timeval *mtime)
+int service_register(int type, char *cfg, struct rlimit rlimit[], char *file)
 {
 	int i = 0;
 	int id = -1;
@@ -727,9 +727,13 @@ recreate:
 	memcpy(svc->rlimit, rlimit, sizeof(svc->rlimit));
 
 	/* New, recently modified or unchanged ... used on reload. */
-	svc_check_dirty(svc, mtime);
-	free(line);
+	if (file && conf_changed(file))
+		svc_mark_dirty(svc);
+	else
+		svc_mark_clean(svc);
 
+	/* Free duped line, from above */
+	free(line);
 	return 0;
 }
 
diff --git a/src/service.h b/src/service.h
index 5e70751c..00be550d 100644
--- a/src/service.h
+++ b/src/service.h
@@ -28,7 +28,7 @@
 #include "svc.h"
 
 void	  service_runlevel	 (int newlevel);
-int	  service_register	 (int type, char *line, struct rlimit rlimit[], struct timeval *mtime);
+int	  service_register	 (int type, char *line, struct rlimit rlimit[], char *file);
 void      service_unregister     (svc_t *svc);
 
 void      service_runtask_clean  (void);
diff --git a/src/sm.c b/src/sm.c
index 47628d80..2d3e6fc8 100644
--- a/src/sm.c
+++ b/src/sm.c
@@ -144,7 +144,7 @@ restart:
 
 		/* Make sure to (re)load all *.conf in /etc/finit.d/ */
 		if (runlevel != 0 && runlevel != 6)
-			conf_reload_dynamic();
+			conf_reload();
 
 		/* Reset once flag of runtasks */
 		service_runtask_clean();
@@ -199,7 +199,7 @@ restart:
 
 	case SM_RELOAD_CHANGE_STATE:
 		/* First reload all *.conf in /etc/finit.d/ */
-		conf_reload_dynamic();
+		conf_reload();
 
 		/*
 		 * Then, mark all affected service conditions as in-flux and
diff --git a/src/svc.c b/src/svc.c
index b6f72252..b72f9754 100644
--- a/src/svc.c
+++ b/src/svc.c
@@ -360,17 +360,6 @@ void svc_mark_clean(svc_t *svc)
 	*((int *)&svc->dirty) = 0;
 }
 
-void svc_check_dirty(svc_t *svc, struct timeval *mtime)
-{
-	if (mtime && timercmp(&svc->mtime, mtime, !=))
-		svc_mark_dirty(svc);
-	else
-		svc_mark_clean(svc);
-
-	svc->mtime.tv_sec = mtime ? mtime->tv_sec : 0;
-	svc->mtime.tv_usec = mtime ? mtime->tv_usec : 0;
-}
-
 /**
  * svc_clean_dynamic - Stop and cleanup stale services removed from /etc/finit.d
  * @cb: Callback to run for each stale service
diff --git a/src/svc.h b/src/svc.h
index 81ef5437..d804e09b 100644
--- a/src/svc.h
+++ b/src/svc.h
@@ -92,9 +92,7 @@ typedef struct svc {
 	pid_t	       pid;
 	const svc_state_t state;       /* Paused, Reloading, Restart, Running, ... */
 	svc_type_t     type;	       /* Service, run, task, inetd, ... */
-	struct timeval mtime;          /* Modification time for .conf from /etc/finit.d/ */
-	const int      dirty;	       /* Set if old mtime != new mtime  => reloaded,
-					* or -1 when marked for removal */
+	const int      dirty;	       /* -1: removal, 0: unmodified, 1: modified */
 	int            starting;       /* ... waiting for pidfile to be re-asserted */
 	int	       runlevels;
 	int            sighup;	       /* This service supports SIGHUP :) */
@@ -148,7 +146,6 @@ void        svc_foreach_type       (int types, void (*cb)(svc_t *));
 svc_t	   *svc_stop_completed	   (void);
 
 void	    svc_mark_dynamic       (void);
-void	    svc_check_dirty        (svc_t *svc, struct timeval *mtime);
 void	    svc_mark_dirty         (svc_t *svc);
 void	    svc_mark_clean         (svc_t *svc);
 void	    svc_clean_dynamic      (void (*cb)(svc_t *));
@@ -168,7 +165,6 @@ static inline void svc_starting    (svc_t *svc) { svc->starting = 1;         }
 static inline void svc_started     (svc_t *svc) { svc->starting = 0;         }
 static inline int  svc_is_starting (svc_t *svc) { return 0 != svc->starting; }
 
-static inline int svc_is_dynamic   (svc_t *svc) { return svc &&  0 != svc->mtime.tv_sec; }
 static inline int svc_is_removed   (svc_t *svc) { return svc && -1 == svc->dirty; }
 static inline int svc_is_changed   (svc_t *svc) { return svc &&  0 != svc->dirty; }
 static inline int svc_is_updated   (svc_t *svc) { return svc &&  1 == svc->dirty; }
diff --git a/src/tty.c b/src/tty.c
index ff2545ea..47be0a46 100644
--- a/src/tty.c
+++ b/src/tty.c
@@ -90,22 +90,8 @@ void tty_mark(void)
 {
 	tty_node_t *tty;
 
-	LIST_FOREACH(tty, &tty_list, link) {
-		if (tty->mtime.tv_sec)
-			tty->dirty = -1;
-	}
-}
-
-void tty_check(tty_node_t *tty, struct timeval *mtime)
-{
-	if (mtime && timercmp(&tty->mtime, mtime, !=))
-		tty->dirty = 1;	/* Modified, restart */
-	else
-		tty->dirty = 0;	/* Not modified */
-
-	/* Update mtime, if given */
-	tty->mtime.tv_sec  = mtime ? mtime->tv_sec  : 0;
-	tty->mtime.tv_usec = mtime ? mtime->tv_usec : 0;
+	LIST_FOREACH(tty, &tty_list, link)
+		tty->dirty = -1;
 }
 
 void tty_sweep(void)
@@ -113,14 +99,15 @@ void tty_sweep(void)
 	tty_node_t *tty, *tmp;
 
 	LIST_FOREACH_SAFE(tty, &tty_list, link, tmp) {
-		if (tty->mtime.tv_sec && tty->dirty) {
-			_d("TTY %s dirty, stopping ...", tty->data.name);
-			tty_stop(&tty->data);
+		if (!tty->dirty)
+			continue;
 
-			if (tty->dirty == -1) {
-				_d("TTY %s removed, cleaning up.", tty->data.name);
-				tty_unregister(tty);
-			}
+		_d("TTY %s dirty, stopping ...", tty->data.name);
+		tty_stop(&tty->data);
+
+		if (tty->dirty == -1) {
+			_d("TTY %s removed, cleaning up.", tty->data.name);
+			tty_unregister(tty);
 		}
 	}
 }
@@ -129,7 +116,7 @@ void tty_sweep(void)
  * tty_register - Register a getty on a device
  * @line:   Configuration, text after initial "tty"
  * @rlimit: Limits for this service/task/run/inetd, may be global limits
- * @mtime:  Modification time, to propagate to lower layers
+ * @file:   The file name TTY was loaded from
  *
  * A Finit tty line can use the internal getty implementation or an
  * external one, like the BusyBox getty for instance.  This function
@@ -147,7 +134,7 @@ void tty_sweep(void)
  * Different getty implementations prefer the TTY device argument in
  * different order, so take care to investigate this first.
  */
-int tty_register(char *line, struct rlimit rlimit[], struct timeval *mtime)
+int tty_register(char *line, struct rlimit rlimit[], char *file)
 {
 	tty_node_t *entry;
 	int         insert = 0, noclear = 0, nowait = 0;
@@ -282,7 +269,10 @@ int tty_register(char *line, struct rlimit rlimit[], struct timeval *mtime)
 	/* Register configured limits */
 	memcpy(entry->data.rlimit, rlimit, sizeof(entry->data.rlimit));
 
-	tty_check(entry, mtime);
+	if (file && conf_changed(file))
+		entry->dirty = 1; /* Modified, restart */
+	else
+		entry->dirty = 0; /* Not modified */
 	_d("TTY %s is %sdirty", dev, entry->dirty ? "" : "NOT ");
 
 	return 0;
diff --git a/src/tty.h b/src/tty.h
index 50c6cd96..b739eaaa 100644
--- a/src/tty.h
+++ b/src/tty.h
@@ -54,7 +54,6 @@ typedef struct tty_node {
 	finit_tty_t data;
 
 	/* XXX: Yes, TTYs should be refactored into a separate SVC type. */
-	struct timeval mtime;          /* Modification time for .conf from /etc/finit.d/ */
 	int            dirty;	       /* Set if old mtime != new mtime  => reloaded,
 					* or -1 when marked for removal */
 } tty_node_t;
@@ -62,10 +61,9 @@ typedef struct tty_node {
 //extern LIST_HEAD(, tty_node) tty_list;
 
 void	    tty_mark	    (void);
-void	    tty_check	    (tty_node_t *tty, struct timeval *mtime);
 void	    tty_sweep	    (void);
 
-int	    tty_register    (char *line, struct rlimit rlimit[], struct timeval *mtime);
+int	    tty_register    (char *line, struct rlimit rlimit[], char *file);
 int	    tty_unregister  (tty_node_t *tty);
 
 tty_node_t *tty_find	    (char *dev);