diff --git a/app/lib/stores/previews.ts b/app/lib/stores/previews.ts
index 9fedb8e..1dd5487 100644
--- a/app/lib/stores/previews.ts
+++ b/app/lib/stores/previews.ts
@@ -154,7 +154,11 @@ export class PreviewsStore {
     try {
       // Watch for file changes
       webcontainer.internal.watchPaths(
-        { include: ['**/*'], exclude: ['**/node_modules', '.git'], includeContent: true },
+        {
+          // Only watch specific file types that affect the preview
+          include: ['**/*.html', '**/*.css', '**/*.js', '**/*.jsx', '**/*.ts', '**/*.tsx', '**/*.json'],
+          exclude: ['**/node_modules/**', '**/.git/**', '**/dist/**', '**/build/**', '**/coverage/**'],
+        },
         async (_events) => {
           const previews = this.previews.get();
 
diff --git a/package.json b/package.json
index 5c1a793..2c7e157 100644
--- a/package.json
+++ b/package.json
@@ -101,7 +101,7 @@
     "@types/react-beautiful-dnd": "^13.1.8",
     "@uiw/codemirror-theme-vscode": "^4.23.6",
     "@unocss/reset": "^0.61.9",
-    "@webcontainer/api": "1.3.0-internal.10",
+    "@webcontainer/api": "1.5.3-internal.2",
     "@xterm/addon-fit": "^0.10.0",
     "@xterm/addon-web-links": "^0.11.0",
     "@xterm/xterm": "^5.5.0",