diff --git a/v2/cmd/wails/internal/dev/watcher.go b/v2/cmd/wails/internal/dev/watcher.go
index 1406f0c1e..499b76dfd 100644
--- a/v2/cmd/wails/internal/dev/watcher.go
+++ b/v2/cmd/wails/internal/dev/watcher.go
@@ -44,14 +44,16 @@ func initialiseWatcher(cwd string) (*fsnotify.Watcher, error) {
 
 func getIgnoreDirs(cwd string) []string {
 	ignoreDirs := []string{filepath.Join(cwd, "build/*"), ".*", "node_modules"}
-
+	baseDir := filepath.Base(cwd)
 	// Read .gitignore into ignoreDirs
 	f, err := os.Open(filepath.Join(cwd, ".gitignore"))
 	if err == nil {
 		scanner := bufio.NewScanner(f)
 		for scanner.Scan() {
 			line := scanner.Text()
-			ignoreDirs = append(ignoreDirs, line)
+			if line != baseDir {
+				ignoreDirs = append(ignoreDirs, line)
+			}
 		}
 	}
 
diff --git a/website/src/pages/changelog.mdx b/website/src/pages/changelog.mdx
index cd7e0e69e..521899726 100644
--- a/website/src/pages/changelog.mdx
+++ b/website/src/pages/changelog.mdx
@@ -43,6 +43,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 - Fixed `SetBackgroundColour` so it sets the window's background color to reduce resize flickering on Linux. Added by @lyimmi in [PR](https://github.com/wailsapp/wails/pull/2853)
 - Fixed disable window resize option and wrong initial window size when its enabled. Added by @lyimmi in [PR](https://github.com/wailsapp/wails/pull/2863)
 - Fixed build hook command parsing. Added by @smac89 in [PR](https://github.com/wailsapp/wails/pull/2836)
+- Fixed filesystem watcher from filtering top level project directory if binary name is included in .gitignore. Added by [@haukened](https://github.com/haukened) in [PR #2869](https://github.com/wailsapp/wails/pull/2869)
 - Fixed `-reloaddir` flag to watch additional directories (non-recursively). [@haukened](https://github.com/haukened) in [PR #2871](https://github.com/wailsapp/wails/pull/2871)
 - Fixed support for Go 1.21 `go.mod` files. Fixed by @stffabi in [PR](https://github.com/wailsapp/wails/pull/2876)