diff --git a/src/vs/workbench/services/themes/electron-browser/fileIconThemeData.ts b/src/vs/workbench/services/themes/electron-browser/fileIconThemeData.ts
index b1fdad385d51da2d4ad79265f1da5eebda636dfd..1269a1bfaed4f036aeb260ba0fddd8beccd11e84 100644
--- a/src/vs/workbench/services/themes/electron-browser/fileIconThemeData.ts
+++ b/src/vs/workbench/services/themes/electron-browser/fileIconThemeData.ts
@@ -23,6 +23,7 @@ export class FileIconThemeData implements IFileIconTheme {
 	isLoaded: boolean;
 	location?: URI;
 	extensionData?: ExtensionData;
+	watch: boolean;
 
 	styleSheetContent?: string;
 
@@ -59,6 +60,7 @@ export class FileIconThemeData implements IFileIconTheme {
 		themeData.description = iconTheme.description;
 		themeData.location = iconThemeLocation;
 		themeData.extensionData = extensionData;
+		themeData.watch = iconTheme._watch;
 		themeData.isLoaded = false;
 		return themeData;
 	}
@@ -77,6 +79,7 @@ export class FileIconThemeData implements IFileIconTheme {
 			themeData.hidesExplorerArrows = false;
 			themeData.isLoaded = true;
 			themeData.extensionData = undefined;
+			themeData.watch = false;
 		}
 		return themeData;
 	}
@@ -91,6 +94,7 @@ export class FileIconThemeData implements IFileIconTheme {
 		themeData.hasFolderIcons = false;
 		themeData.hidesExplorerArrows = false;
 		themeData.extensionData = undefined;
+		themeData.watch = false;
 		return themeData;
 	}
 
@@ -109,6 +113,7 @@ export class FileIconThemeData implements IFileIconTheme {
 					case 'hasFileIcons':
 					case 'hidesExplorerArrows':
 					case 'hasFolderIcons':
+					case 'watch':
 						theme[key] = data[key];
 						break;
 					case 'location':
@@ -132,7 +137,8 @@ export class FileIconThemeData implements IFileIconTheme {
 			styleSheetContent: this.styleSheetContent,
 			hasFileIcons: this.hasFileIcons,
 			hasFolderIcons: this.hasFolderIcons,
-			hidesExplorerArrows: this.hidesExplorerArrows
+			hidesExplorerArrows: this.hidesExplorerArrows,
+			watch: this.watch
 		});
 	}
 }
diff --git a/src/vs/workbench/services/themes/electron-browser/workbenchThemeService.ts b/src/vs/workbench/services/themes/electron-browser/workbenchThemeService.ts
index a4c951165a81fd99cf86f5b812e62647f311a06c..73235fecc2f3762a706c618c78b91ce24f5a5a99 100644
--- a/src/vs/workbench/services/themes/electron-browser/workbenchThemeService.ts
+++ b/src/vs/workbench/services/themes/electron-browser/workbenchThemeService.ts
@@ -355,6 +355,7 @@ export class WorkbenchThemeService implements IWorkbenchThemeService {
 		if (this.fileService && !resources.isEqual(newTheme.location, this.watchedColorThemeLocation)) {
 			if (this.watchedColorThemeLocation) {
 				this.fileService.unwatchFileChanges(this.watchedColorThemeLocation);
+				this.watchedColorThemeLocation = null;
 			}
 			if (newTheme.location && (newTheme.watch || !!this.environmentService.extensionDevelopmentLocationURI)) {
 				this.watchedColorThemeLocation = newTheme.location;
@@ -459,9 +460,10 @@ export class WorkbenchThemeService implements IWorkbenchThemeService {
 		if (this.fileService && !resources.isEqual(iconThemeData.location, this.watchedIconThemeLocation)) {
 			if (this.watchedIconThemeLocation) {
 				this.fileService.unwatchFileChanges(this.watchedIconThemeLocation);
+				this.watchedIconThemeLocation = null;
 			}
-			this.watchedIconThemeLocation = iconThemeData.location;
-			if (this.watchedIconThemeLocation) {
+			if (iconThemeData.location && (iconThemeData.watch || !!this.environmentService.extensionDevelopmentLocationURI)) {
+				this.watchedIconThemeLocation = iconThemeData.location;
 				this.fileService.watchFileChanges(this.watchedIconThemeLocation);
 			}
 		}