diff --git a/CHANGELOG.md b/CHANGELOG.md
index d7b81a564d..6164147cd1 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -14,6 +14,8 @@
 
 #### :boom: Breaking Change
 
+- `rescript format` no longer accepts `--all`. All (non-dev) files of the current rescript.json are now formatted by default. https://github.com/rescript-lang/rescript/pull/7752
+
 #### :eyeglasses: Spec Compliance
 
 #### :rocket: New Feature
@@ -21,12 +23,16 @@
 - Add new Stdlib helpers: `String.capitalize`, `String.isEmpty`, `Dict.size`, `Dict.isEmpty`, `Array.isEmpty`, `Map.isEmpty`, `Set.isEmpty`. https://github.com/rescript-lang/rescript/pull/7516
 
 #### :bug: Bug fix
+
 - Fix issue with ast conversion (for ppx use) on functions with attributes on first argument. https://github.com/rescript-lang/rescript/pull/7761
 
 #### :memo: Documentation
 
 #### :nail_care: Polish
 
+- `rescript format` now has a `--dev` flag that works similar to `rescript clean`. https://github.com/rescript-lang/rescript/pull/7752
+- `rescript clean` now will clean an individual project (see [#7707](https://github.com/rescript-lang/rescript/issues/7707)). https://github.com/rescript-lang/rescript/pull/7752
+
 #### :house: Internal
 
 - AST: Use jsx_tag_name instead of Longindent.t to store jsx tag name. https://github.com/rescript-lang/rescript/pull/7760
diff --git a/rescript.json b/rescript.json
index 1f566dcf3d..2aa506b7b6 100644
--- a/rescript.json
+++ b/rescript.json
@@ -1,4 +1,4 @@
 {
   "name": "rescript",
-  "dependencies": ["@tests/gentype-react-example"]
+  "dependencies": ["@tests/gentype-react-example", "playground"]
 }
diff --git a/rewatch/src/build.rs b/rewatch/src/build.rs
index 990333ca05..c7c4cead3f 100644
--- a/rewatch/src/build.rs
+++ b/rewatch/src/build.rs
@@ -8,11 +8,11 @@ pub mod packages;
 pub mod parse;
 pub mod read_compile_state;
 
-use self::compile::compiler_args;
 use self::parse::parser_args;
 use crate::build::compile::{mark_modules_with_deleted_deps_dirty, mark_modules_with_expired_deps_dirty};
 use crate::helpers::emojis::*;
-use crate::helpers::{self, get_workspace_root};
+use crate::helpers::{self};
+use crate::project_context::ProjectContext;
 use crate::{config, sourcedirs};
 use anyhow::{Result, anyhow};
 use build_types::*;
@@ -55,31 +55,30 @@ pub struct CompilerArgs {
     pub parser_args: Vec<String>,
 }
 
-pub fn get_compiler_args(path: &Path) -> Result<String> {
-    let filename = &helpers::get_abs_path(path);
-    let package_root =
-        helpers::get_abs_path(&helpers::get_nearest_config(path).expect("Couldn't find package root"));
-    let workspace_root = get_workspace_root(&package_root).map(|p| helpers::get_abs_path(&p));
-    let root_rescript_config =
-        packages::read_config(&workspace_root.to_owned().unwrap_or(package_root.to_owned()))?;
-    let rescript_config = packages::read_config(&package_root)?;
-    let is_type_dev = match filename.strip_prefix(&package_root) {
+pub fn get_compiler_args(rescript_file_path: &Path) -> Result<String> {
+    let filename = &helpers::get_abs_path(rescript_file_path);
+    let current_package = helpers::get_abs_path(
+        &helpers::get_nearest_config(rescript_file_path).expect("Couldn't find package root"),
+    );
+    let project_context = ProjectContext::new(&current_package)?;
+
+    let is_type_dev = match filename.strip_prefix(&current_package) {
         Err(_) => false,
-        Ok(relative_path) => root_rescript_config.find_is_type_dev_for_path(relative_path),
+        Ok(relative_path) => project_context
+            .current_config
+            .find_is_type_dev_for_path(relative_path),
     };
 
     // make PathBuf from package root and get the relative path for filename
-    let relative_filename = filename.strip_prefix(PathBuf::from(&package_root)).unwrap();
+    let relative_filename = filename.strip_prefix(PathBuf::from(&current_package)).unwrap();
 
-    let file_path = PathBuf::from(&package_root).join(filename);
+    let file_path = PathBuf::from(&current_package).join(filename);
     let contents = helpers::read_file(&file_path).expect("Error reading file");
 
     let (ast_path, parser_args) = parser_args(
-        &rescript_config,
-        &root_rescript_config,
+        &project_context,
+        &project_context.current_config,
         relative_filename,
-        &workspace_root,
-        workspace_root.as_ref().unwrap_or(&package_root),
         &contents,
     );
     let is_interface = filename.to_string_lossy().ends_with('i');
@@ -90,15 +89,13 @@ pub fn get_compiler_args(path: &Path) -> Result<String> {
         interface_filename.push('i');
         PathBuf::from(&interface_filename).exists()
     };
-    let compiler_args = compiler_args(
-        &rescript_config,
-        &root_rescript_config,
+    let compiler_args = compile::compiler_args(
+        &project_context.current_config,
         &ast_path,
         relative_filename,
         is_interface,
         has_interface,
-        &package_root,
-        &workspace_root,
+        &project_context,
         &None,
         is_type_dev,
         true,
@@ -120,10 +117,8 @@ pub fn initialize_build(
     build_dev_deps: bool,
     snapshot_output: bool,
 ) -> Result<BuildState> {
-    let project_root = helpers::get_abs_path(path);
-    let workspace_root = helpers::get_workspace_root(&project_root);
     let bsc_path = helpers::get_bsc();
-    let root_config_name = packages::read_package_name(&project_root)?;
+    let project_context = ProjectContext::new(path)?;
 
     if !snapshot_output && show_progress {
         print!("{} {}Building package tree...", style("[1/7]").bold().dim(), TREE);
@@ -131,13 +126,7 @@ pub fn initialize_build(
     }
 
     let timing_package_tree = Instant::now();
-    let packages = packages::make(
-        filter,
-        &project_root,
-        &workspace_root,
-        show_progress,
-        build_dev_deps,
-    )?;
+    let packages = packages::make(filter, &project_context, show_progress, build_dev_deps)?;
     let timing_package_tree_elapsed = timing_package_tree.elapsed();
 
     if !snapshot_output && show_progress {
@@ -167,7 +156,7 @@ pub fn initialize_build(
         let _ = stdout().flush();
     }
 
-    let mut build_state = BuildState::new(project_root, root_config_name, packages, workspace_root, bsc_path);
+    let mut build_state = BuildState::new(project_context, packages, bsc_path);
     packages::parse_packages(&mut build_state);
     let timing_source_files_elapsed = timing_source_files.elapsed();
 
@@ -190,7 +179,7 @@ pub fn initialize_build(
         let _ = stdout().flush();
     }
     let timing_compile_state = Instant::now();
-    let compile_assets_state = read_compile_state::read(&mut build_state);
+    let compile_assets_state = read_compile_state::read(&mut build_state)?;
     let timing_compile_state_elapsed = timing_compile_state.elapsed();
 
     if !snapshot_output && show_progress {
@@ -563,9 +552,8 @@ pub fn build(
 
 pub fn pass_through_legacy(mut args: Vec<OsString>) -> i32 {
     let project_root = helpers::get_abs_path(Path::new("."));
-    let workspace_root = helpers::get_workspace_root(&project_root);
-
-    let rescript_legacy_path = helpers::get_rescript_legacy(&project_root, workspace_root);
+    let project_context = ProjectContext::new(&project_root).unwrap();
+    let rescript_legacy_path = helpers::get_rescript_legacy(&project_context);
 
     args.insert(0, rescript_legacy_path.into());
     let status = std::process::Command::new("node")
diff --git a/rewatch/src/build/build_types.rs b/rewatch/src/build/build_types.rs
index e8c1a28ee4..76035ab27f 100644
--- a/rewatch/src/build/build_types.rs
+++ b/rewatch/src/build/build_types.rs
@@ -1,4 +1,6 @@
 use crate::build::packages::{Namespace, Package};
+use crate::config::Config;
+use crate::project_context::ProjectContext;
 use ahash::{AHashMap, AHashSet};
 use std::{fmt::Display, path::PathBuf, time::SystemTime};
 
@@ -89,14 +91,12 @@ impl Module {
 
 #[derive(Debug)]
 pub struct BuildState {
+    pub project_context: ProjectContext,
     pub modules: AHashMap<String, Module>,
     pub packages: AHashMap<String, Package>,
     pub module_names: AHashSet<String>,
-    pub project_root: PathBuf,
-    pub root_config_name: String,
     pub deleted_modules: AHashSet<String>,
     pub bsc_path: PathBuf,
-    pub workspace_root: Option<PathBuf>,
     pub deps_initialized: bool,
 }
 
@@ -109,20 +109,16 @@ impl BuildState {
         self.modules.get(module_name)
     }
     pub fn new(
-        project_root: PathBuf,
-        root_config_name: String,
+        project_context: ProjectContext,
         packages: AHashMap<String, Package>,
-        workspace_root: Option<PathBuf>,
         bsc_path: PathBuf,
     ) -> Self {
         Self {
+            project_context,
             module_names: AHashSet::new(),
             modules: AHashMap::new(),
             packages,
-            project_root,
-            root_config_name,
             deleted_modules: AHashSet::new(),
-            workspace_root,
             bsc_path,
             deps_initialized: false,
         }
@@ -132,6 +128,10 @@ impl BuildState {
         self.modules.insert(module_name.to_owned(), module);
         self.module_names.insert(module_name.to_owned());
     }
+
+    pub fn get_root_config(&self) -> &Config {
+        self.project_context.get_root_config()
+    }
 }
 
 #[derive(Debug)]
diff --git a/rewatch/src/build/clean.rs b/rewatch/src/build/clean.rs
index cb7a7db73f..e4a4786a8c 100644
--- a/rewatch/src/build/clean.rs
+++ b/rewatch/src/build/clean.rs
@@ -1,7 +1,10 @@
 use super::build_types::*;
 use super::packages;
+use crate::build::packages::Package;
+use crate::config::Config;
 use crate::helpers;
 use crate::helpers::emojis::*;
+use crate::project_context::ProjectContext;
 use ahash::AHashSet;
 use anyhow::Result;
 use console::style;
@@ -28,10 +31,10 @@ fn remove_iast(package: &packages::Package, source_file: &Path) {
     ));
 }
 
-fn remove_mjs_file(source_file: &Path, suffix: &String) {
+fn remove_mjs_file(source_file: &Path, suffix: &str) {
     let _ = std::fs::remove_file(source_file.with_extension(
         // suffix.to_string includes the ., so we need to remove it
-        &suffix.to_string()[1..],
+        &suffix[1..],
     ));
 }
 
@@ -58,31 +61,32 @@ pub fn remove_compile_assets(package: &packages::Package, source_file: &Path) {
     }
 }
 
-fn clean_source_files(build_state: &BuildState, root_package: &packages::Package) {
+fn clean_source_files(build_state: &BuildState, root_config: &Config, suffix: &str) {
     // get all rescript file locations
     let rescript_file_locations = build_state
         .modules
         .values()
         .filter_map(|module| match &module.source_type {
             SourceType::SourceFile(source_file) => {
-                let package = build_state.packages.get(&module.package_name).unwrap();
-                Some(
-                    root_package
-                        .config
+                build_state.packages.get(&module.package_name).map(|package| {
+                    root_config
                         .get_package_specs()
-                        .iter()
+                        .into_iter()
                         .filter_map(|spec| {
                             if spec.in_source {
                                 Some((
                                     package.path.join(&source_file.implementation.path),
-                                    root_package.config.get_suffix(spec),
+                                    match spec.suffix {
+                                        None => suffix.to_owned(),
+                                        Some(suffix) => suffix,
+                                    },
                                 ))
                             } else {
                                 None
                             }
                         })
-                        .collect::<Vec<(PathBuf, String)>>(),
-                )
+                        .collect::<Vec<(PathBuf, String)>>()
+                })
             }
             _ => None,
         })
@@ -326,17 +330,10 @@ pub fn cleanup_after_build(build_state: &BuildState) {
     });
 }
 
-pub fn clean(path: &Path, show_progress: bool, snapshot_output: bool, build_dev_deps: bool) -> Result<()> {
-    let project_root = helpers::get_abs_path(path);
-    let workspace_root = helpers::get_workspace_root(&project_root);
-    let packages = packages::make(
-        &None,
-        &project_root,
-        &workspace_root,
-        show_progress,
-        build_dev_deps,
-    )?;
-    let root_config_name = packages::read_package_name(&project_root)?;
+pub fn clean(path: &Path, show_progress: bool, snapshot_output: bool, clean_dev_deps: bool) -> Result<()> {
+    let project_context = ProjectContext::new(path)?;
+
+    let packages = packages::make(&None, &project_context, show_progress, clean_dev_deps)?;
     let bsc_path = helpers::get_bsc();
 
     let timing_clean_compiler_assets = Instant::now();
@@ -348,30 +345,11 @@ pub fn clean(path: &Path, show_progress: bool, snapshot_output: bool, build_dev_
         );
         let _ = std::io::stdout().flush();
     };
-    packages.iter().for_each(|(_, package)| {
-        if show_progress {
-            if snapshot_output {
-                println!("Cleaning {}", package.name)
-            } else {
-                print!(
-                    "{}{} {}Cleaning {}...",
-                    LINE_CLEAR,
-                    style("[1/2]").bold().dim(),
-                    SWEEP,
-                    package.name
-                );
-            }
-            let _ = std::io::stdout().flush();
-        }
 
-        let path_str = package.get_build_path();
-        let path = std::path::Path::new(&path_str);
-        let _ = std::fs::remove_dir_all(path);
+    for (_, package) in &packages {
+        clean_package(show_progress, snapshot_output, package)
+    }
 
-        let path_str = package.get_ocaml_build_path();
-        let path = std::path::Path::new(&path_str);
-        let _ = std::fs::remove_dir_all(path);
-    });
     let timing_clean_compiler_assets_elapsed = timing_clean_compiler_assets.elapsed();
 
     if !snapshot_output && show_progress {
@@ -386,20 +364,10 @@ pub fn clean(path: &Path, show_progress: bool, snapshot_output: bool, build_dev_
     }
 
     let timing_clean_mjs = Instant::now();
-    let mut build_state = BuildState::new(
-        project_root.to_owned(),
-        root_config_name,
-        packages,
-        workspace_root,
-        bsc_path,
-    );
+    let mut build_state = BuildState::new(project_context, packages, bsc_path);
     packages::parse_packages(&mut build_state);
-    let root_package = build_state
-        .packages
-        .get(&build_state.root_config_name)
-        .expect("Could not find root package");
-
-    let suffix = root_package.config.suffix.as_deref().unwrap_or(".res.mjs");
+    let root_config = build_state.get_root_config();
+    let suffix = build_state.project_context.get_suffix();
 
     if !snapshot_output && show_progress {
         println!(
@@ -411,7 +379,7 @@ pub fn clean(path: &Path, show_progress: bool, snapshot_output: bool, build_dev_
         let _ = std::io::stdout().flush();
     }
 
-    clean_source_files(&build_state, root_package);
+    clean_source_files(&build_state, root_config, &suffix);
     let timing_clean_mjs_elapsed = timing_clean_mjs.elapsed();
 
     if !snapshot_output && show_progress {
@@ -428,3 +396,28 @@ pub fn clean(path: &Path, show_progress: bool, snapshot_output: bool, build_dev_
 
     Ok(())
 }
+
+fn clean_package(show_progress: bool, snapshot_output: bool, package: &Package) {
+    if show_progress {
+        if snapshot_output {
+            println!("Cleaning {}", package.name)
+        } else {
+            print!(
+                "{}{} {}Cleaning {}...",
+                LINE_CLEAR,
+                style("[1/2]").bold().dim(),
+                SWEEP,
+                package.name
+            );
+        }
+        let _ = std::io::stdout().flush();
+    }
+
+    let path_str = package.get_build_path();
+    let path = std::path::Path::new(&path_str);
+    let _ = std::fs::remove_dir_all(path);
+
+    let path_str = package.get_ocaml_build_path();
+    let path = std::path::Path::new(&path_str);
+    let _ = std::fs::remove_dir_all(path);
+}
diff --git a/rewatch/src/build/compile.rs b/rewatch/src/build/compile.rs
index b8b4873c48..2e13b92563 100644
--- a/rewatch/src/build/compile.rs
+++ b/rewatch/src/build/compile.rs
@@ -8,12 +8,13 @@ use super::packages;
 use crate::config;
 use crate::helpers;
 use crate::helpers::StrippedVerbatimPath;
+use crate::project_context::ProjectContext;
 use ahash::{AHashMap, AHashSet};
-use anyhow::anyhow;
+use anyhow::{Result, anyhow};
 use console::style;
 use log::{debug, trace};
 use rayon::prelude::*;
-use std::path::{Path, PathBuf};
+use std::path::Path;
 use std::process::Command;
 use std::time::SystemTime;
 
@@ -154,21 +155,14 @@ pub fn compile(
                                 .get_package(&module.package_name)
                                 .expect("Package not found");
 
-                            let root_package =
-                                build_state.get_package(&build_state.root_config_name).unwrap();
-
                             let interface_result = match source_file.interface.to_owned() {
                                 Some(Interface { path, .. }) => {
                                     let result = compile_file(
                                         package,
-                                        root_package,
                                         &helpers::get_ast_path(&path),
                                         module,
                                         true,
-                                        &build_state.bsc_path,
-                                        &build_state.packages,
-                                        &build_state.project_root,
-                                        &build_state.workspace_root,
+                                        build_state,
                                     );
                                     Some(result)
                                 }
@@ -176,14 +170,10 @@ pub fn compile(
                             };
                             let result = compile_file(
                                 package,
-                                root_package,
                                 &helpers::get_ast_path(&source_file.implementation.path),
                                 module,
                                 false,
-                                &build_state.bsc_path,
-                                &build_state.packages,
-                                &build_state.project_root,
-                                &build_state.workspace_root,
+                                build_state,
                             );
                             let cmi_digest_after = helpers::compute_file_hash(Path::new(&cmi_path));
 
@@ -347,24 +337,21 @@ pub fn compile(
 
 pub fn compiler_args(
     config: &config::Config,
-    root_config: &config::Config,
     ast_path: &Path,
     file_path: &Path,
     is_interface: bool,
     has_interface: bool,
-    project_root: &Path,
-    workspace_root: &Option<PathBuf>,
+    project_context: &ProjectContext,
     // if packages are known, we pass a reference here
-    // this saves us a scan to find their paths
+    // this saves us a scan to find their paths.
+    // This is None when called by build::get_compiler_args
     packages: &Option<&AHashMap<String, packages::Package>>,
     // Is the file listed as "type":"dev"?
     is_type_dev: bool,
     is_local_dep: bool,
 ) -> Vec<String> {
     let bsc_flags = config::flatten_flags(&config.compiler_flags);
-
-    let dependency_paths = get_dependency_paths(config, project_root, workspace_root, packages, is_type_dev);
-
+    let dependency_paths = get_dependency_paths(config, project_context, packages, is_type_dev);
     let module_name = helpers::file_path_to_module_name(file_path, &config.get_namespace());
 
     let namespace_args = match &config.get_namespace() {
@@ -388,6 +375,7 @@ pub fn compiler_args(
         packages::Namespace::NoNamespace => vec![],
     };
 
+    let root_config = project_context.get_root_config();
     let jsx_args = root_config.get_jsx_args();
     let jsx_module_args = root_config.get_jsx_module_args();
     let jsx_mode_args = root_config.get_jsx_mode_args();
@@ -449,7 +437,7 @@ pub fn compiler_args(
             "-I".to_string(),
             Path::new("..").join("ocaml").to_string_lossy().to_string(),
         ],
-        dependency_paths.concat(),
+        dependency_paths,
         jsx_args,
         jsx_module_args,
         jsx_mode_args,
@@ -497,11 +485,10 @@ impl DependentPackage {
 
 fn get_dependency_paths(
     config: &config::Config,
-    project_root: &Path,
-    workspace_root: &Option<PathBuf>,
+    project_context: &ProjectContext,
     packages: &Option<&AHashMap<String, packages::Package>>,
     is_file_type_dev: bool,
-) -> Vec<Vec<String>> {
+) -> Vec<String> {
     let normal_deps = config
         .dependencies
         .clone()
@@ -534,7 +521,7 @@ fn get_dependency_paths(
                     .as_ref()
                     .map(|package| package.path.clone())
             } else {
-                packages::read_dependency(package_name, project_root, project_root, workspace_root).ok()
+                packages::read_dependency(package_name, project_context).ok()
             }
             .map(|canonicalized_path| {
                 vec![
@@ -555,19 +542,23 @@ fn get_dependency_paths(
             dependency_path
         })
         .collect::<Vec<Vec<String>>>()
+        .concat()
 }
 
 fn compile_file(
     package: &packages::Package,
-    root_package: &packages::Package,
     ast_path: &Path,
     module: &Module,
     is_interface: bool,
-    bsc_path: &Path,
-    packages: &AHashMap<String, packages::Package>,
-    project_root: &Path,
-    workspace_root: &Option<PathBuf>,
-) -> Result<Option<String>, String> {
+    build_state: &BuildState,
+) -> Result<Option<String>> {
+    let BuildState {
+        packages,
+        project_context,
+        bsc_path,
+        ..
+    } = build_state;
+    let root_config = build_state.get_root_config();
     let ocaml_build_path_abs = package.get_ocaml_build_path();
     let build_path_abs = package.get_build_path();
     let implementation_file_path = match &module.source_type {
@@ -577,20 +568,19 @@ fn compile_file(
             sourcetype,
             ast_path.to_string_lossy()
         )),
-    }?;
+    }
+    .map_err(|e| anyhow!(e))?;
     let basename =
         helpers::file_path_to_compiler_asset_basename(implementation_file_path, &package.namespace);
     let has_interface = module.get_interface().is_some();
     let is_type_dev = module.is_type_dev;
     let to_mjs_args = compiler_args(
         &package.config,
-        &root_package.config,
         ast_path,
         implementation_file_path,
         is_interface,
         has_interface,
-        project_root,
-        workspace_root,
+        project_context,
         &Some(packages),
         is_type_dev,
         package.is_local_dep,
@@ -611,9 +601,9 @@ fn compile_file(
         Ok(x) if !x.status.success() => {
             let stderr = String::from_utf8_lossy(&x.stderr);
             let stdout = String::from_utf8_lossy(&x.stdout);
-            Err(stderr.to_string() + &stdout)
+            Err(anyhow!(stderr.to_string() + &stdout))
         }
-        Err(e) => Err(format!(
+        Err(e) => Err(anyhow!(
             "Could not compile file. Error: {e}. Path to AST: {ast_path:?}"
         )),
         Ok(x) => {
@@ -621,7 +611,7 @@ fn compile_file(
                 .expect("stdout should be non-null")
                 .to_string();
 
-            let dir = std::path::Path::new(implementation_file_path).parent().unwrap();
+            let dir = Path::new(implementation_file_path).parent().unwrap();
 
             // perhaps we can do this copying somewhere else
             if !is_interface {
@@ -709,7 +699,7 @@ fn compile_file(
             }
 
             // copy js file
-            root_package.config.get_package_specs().iter().for_each(|spec| {
+            root_config.get_package_specs().iter().for_each(|spec| {
                 if spec.in_source {
                     if let SourceType::SourceFile(SourceFile {
                         implementation: Implementation { path, .. },
@@ -718,11 +708,11 @@ fn compile_file(
                     {
                         let source = helpers::get_source_file_from_rescript_file(
                             &Path::new(&package.path).join(path),
-                            &root_package.config.get_suffix(spec),
+                            &root_config.get_suffix(spec),
                         );
                         let destination = helpers::get_source_file_from_rescript_file(
                             &package.get_build_path().join(path),
-                            &root_package.config.get_suffix(spec),
+                            &root_config.get_suffix(spec),
                         );
 
                         if source.exists() {
diff --git a/rewatch/src/build/deps.rs b/rewatch/src/build/deps.rs
index 8159cdc5f3..c89f5898a0 100644
--- a/rewatch/src/build/deps.rs
+++ b/rewatch/src/build/deps.rs
@@ -18,11 +18,11 @@ fn get_dep_modules(
         Ok(lines) => {
             // we skip the first line with is some null characters
             // the following lines in the AST are the dependency modules
-            // we stop when we hit a line that starts with a "/", this is the path of the file.
+            // we stop when we hit a line that is an absolute path, this is the path of the file.
             // this is the point where the dependencies end and the actual AST starts
             for line in lines.skip(1).flatten() {
                 let line = line.trim().to_string();
-                if line.starts_with('/') {
+                if std::path::Path::new(&line).is_absolute() {
                     break;
                 } else if !line.is_empty() {
                     deps.insert(line);
diff --git a/rewatch/src/build/packages.rs b/rewatch/src/build/packages.rs
index 623e4b2757..c4d1b6e9b6 100644
--- a/rewatch/src/build/packages.rs
+++ b/rewatch/src/build/packages.rs
@@ -2,9 +2,11 @@ use super::build_types::*;
 use super::namespaces;
 use super::packages;
 use crate::config;
+use crate::config::Config;
 use crate::helpers;
 use crate::helpers::StrippedVerbatimPath;
 use crate::helpers::emojis::*;
+use crate::project_context::{MonoRepoContext, ProjectContext};
 use ahash::{AHashMap, AHashSet};
 use anyhow::{Result, anyhow};
 use console::style;
@@ -237,43 +239,27 @@ fn get_source_dirs(source: config::Source, sub_path: Option<PathBuf>) -> AHashSe
     source_folders
 }
 
-pub fn read_config(package_dir: &Path) -> Result<config::Config> {
+pub fn read_config(package_dir: &Path) -> Result<Config> {
     let rescript_json_path = package_dir.join("rescript.json");
     let bsconfig_json_path = package_dir.join("bsconfig.json");
 
     if Path::new(&rescript_json_path).exists() {
-        config::Config::new(&rescript_json_path)
+        Config::new(&rescript_json_path)
     } else {
-        config::Config::new(&bsconfig_json_path)
+        Config::new(&bsconfig_json_path)
     }
 }
 
-pub fn read_dependency(
-    package_name: &str,
-    parent_path: &Path,
-    project_root: &Path,
-    workspace_root: &Option<PathBuf>,
-) -> Result<PathBuf, String> {
-    let path_from_parent = helpers::package_path(parent_path, package_name);
-    let path_from_project_root = helpers::package_path(project_root, package_name);
-    let maybe_path_from_workspace_root = workspace_root
-        .as_ref()
-        .map(|workspace_root| helpers::package_path(workspace_root, package_name));
-
-    let path = match (
-        path_from_parent,
-        path_from_project_root,
-        maybe_path_from_workspace_root,
-    ) {
-        (path_from_parent, _, _) if path_from_parent.exists() => Ok(path_from_parent),
-        (_, path_from_project_root, _) if path_from_project_root.exists() => Ok(path_from_project_root),
-        (_, _, Some(path_from_workspace_root)) if path_from_workspace_root.exists() => {
-            Ok(path_from_workspace_root)
-        }
-        _ => Err(format!(
+pub fn read_dependency(package_name: &str, project_context: &ProjectContext) -> Result<PathBuf, String> {
+    // root folder + node_modules + package_name
+    let path_from_root = helpers::package_path(project_context.get_root_path(), package_name);
+    let path = (if path_from_root.exists() {
+        Ok(path_from_root)
+    } else {
+        Err(format!(
             "The package \"{package_name}\" is not found (are node_modules up-to-date?)..."
-        )),
-    }?;
+        ))
+    })?;
 
     let canonical_path = match path
         .canonicalize()
@@ -299,17 +285,15 @@ pub fn read_dependency(
 ///    recursively continues operation for their dependencies as well.
 fn read_dependencies(
     registered_dependencies_set: &mut AHashSet<String>,
-    parent_config: &config::Config,
-    parent_path: &Path,
-    project_root: &Path,
-    workspace_root: &Option<PathBuf>,
+    project_context: &ProjectContext,
+    package_config: &Config,
     show_progress: bool,
     build_dev_deps: bool,
 ) -> Vec<Dependency> {
-    let mut dependencies = parent_config.dependencies.to_owned().unwrap_or_default();
+    let mut dependencies = package_config.dependencies.to_owned().unwrap_or_default();
 
     // Concatenate dev dependencies if build_dev_deps is true
-    if build_dev_deps && let Some(dev_deps) = parent_config.dev_dependencies.to_owned() {
+    if build_dev_deps && let Some(dev_deps) = package_config.dev_dependencies.to_owned() {
         dependencies.extend(dev_deps);
     }
 
@@ -328,7 +312,7 @@ fn read_dependencies(
         .par_iter()
         .map(|package_name| {
             let (config, canonical_path) =
-                match read_dependency(package_name, parent_path, project_root, workspace_root) {
+                match read_dependency(package_name, project_context) {
                     Err(error) => {
                         if show_progress {
                             println!(
@@ -339,7 +323,7 @@ fn read_dependencies(
                             );
                         }
 
-                        let parent_path_str = parent_path.to_string_lossy();
+                        let parent_path_str = project_context.get_root_path().to_string_lossy();
                         log::error!(
                             "We could not build package tree reading dependency '{package_name}', at path '{parent_path_str}'. Error: {error}",
                         );
@@ -350,7 +334,7 @@ fn read_dependencies(
                         match read_config(&canonical_path) {
                             Ok(config) => (config, canonical_path),
                             Err(error) => {
-                                let parent_path_str = parent_path.to_string_lossy();
+                                let parent_path_str = project_context.get_root_path().to_string_lossy();
                                 log::error!(
                                     "We could not build package tree  '{package_name}', at path '{parent_path_str}'. Error: {error}",
                                 );
@@ -361,16 +345,27 @@ fn read_dependencies(
                 };
 
             let is_local_dep = {
-                canonical_path.starts_with(project_root)
-                    && !canonical_path.components().any(|c| c.as_os_str() == "node_modules")
+                match &project_context.monorepo_context {
+                    None => project_context.current_config.name.as_str() == package_name
+                    ,
+                    Some(MonoRepoContext::MonorepoRoot {
+                             local_dependencies,
+                             local_dev_dependencies,
+                         }) => {
+                        local_dependencies.contains(package_name) || local_dev_dependencies.contains(package_name)
+                    },
+                    Some(MonoRepoContext::MonorepoPackage {
+                             parent_config,
+                         }) => {
+                        helpers::is_local_package(&parent_config.path, &canonical_path)
+                    }
+                }
             };
 
             let dependencies = read_dependencies(
                 &mut registered_dependencies_set.to_owned(),
+                project_context,
                 &config,
-                &canonical_path,
-                project_root,
-                workspace_root,
                 show_progress,
                 is_local_dep && build_dev_deps,
             );
@@ -380,7 +375,7 @@ fn read_dependencies(
                 config,
                 path: canonical_path,
                 dependencies,
-                is_local_dep
+                is_local_dep,
             }
         })
         .collect()
@@ -483,25 +478,28 @@ This inconsistency will cause issues with package resolution.\n",
 }
 
 fn read_packages(
-    project_root: &Path,
-    workspace_root: &Option<PathBuf>,
+    project_context: &ProjectContext,
     show_progress: bool,
     build_dev_deps: bool,
 ) -> Result<AHashMap<String, Package>> {
-    let root_config = read_config(project_root)?;
-
     // Store all packages and completely deduplicate them
     let mut map: AHashMap<String, Package> = AHashMap::new();
-    let root_package = make_package(root_config.to_owned(), project_root, true, true);
-    map.insert(root_package.name.to_string(), root_package);
+    let current_package = {
+        let config = &project_context.current_config;
+        let folder = config
+            .path
+            .parent()
+            .ok_or_else(|| anyhow!("Could not the read parent folder or a rescript.json file"))?;
+        make_package(config.to_owned(), folder, true, true)
+    };
+
+    map.insert(current_package.name.to_string(), current_package);
 
     let mut registered_dependencies_set: AHashSet<String> = AHashSet::new();
     let dependencies = flatten_dependencies(read_dependencies(
         &mut registered_dependencies_set,
-        &root_config,
-        project_root,
-        project_root,
-        workspace_root,
+        project_context,
+        &project_context.current_config,
         show_progress,
         build_dev_deps,
     ));
@@ -617,15 +615,14 @@ fn extend_with_children(
 /// 2. Take the (by then deduplicated) packages, and find all the '.res' and
 ///    interface files.
 ///
-/// The two step process is there to reduce IO overhead
+/// The two step process is there to reduce IO overhead.
 pub fn make(
     filter: &Option<regex::Regex>,
-    root_folder: &Path,
-    workspace_root: &Option<PathBuf>,
+    project_context: &ProjectContext,
     show_progress: bool,
     build_dev_deps: bool,
 ) -> Result<AHashMap<String, Package>> {
-    let map = read_packages(root_folder, workspace_root, show_progress, build_dev_deps)?;
+    let map = read_packages(project_context, show_progress, build_dev_deps)?;
 
     /* Once we have the deduplicated packages, we can add the source files for each - to minimize
      * the IO */
@@ -648,11 +645,9 @@ pub fn parse_packages(build_state: &mut BuildState) {
             let bs_build_path = package.get_ocaml_build_path();
             helpers::create_path(&build_path_abs);
             helpers::create_path(&bs_build_path);
-            let root_config = build_state
-                .get_package(&build_state.root_config_name)
-                .expect("cannot find root config");
+            let root_config = build_state.get_root_config();
 
-            root_config.config.get_package_specs().iter().for_each(|spec| {
+            root_config.get_package_specs().iter().for_each(|spec| {
                 if !spec.in_source {
                     // we don't want to calculate this if we don't have out of source specs
                     // we do this twice, but we almost never have multiple package specs
@@ -996,6 +991,7 @@ mod test {
                 bs_deps: args.bs_deps,
                 build_dev_deps: args.build_dev_deps,
                 allowed_dependents: args.allowed_dependents,
+                path: PathBuf::from("./something/rescript.json"),
             }),
             source_folders: AHashSet::new(),
             source_files: None,
diff --git a/rewatch/src/build/parse.rs b/rewatch/src/build/parse.rs
index 67908e772e..375c5e9abe 100644
--- a/rewatch/src/build/parse.rs
+++ b/rewatch/src/build/parse.rs
@@ -1,10 +1,11 @@
 use super::build_types::*;
 use super::logs;
 use super::namespaces;
-use super::packages;
+use crate::build::packages::Package;
 use crate::config;
-use crate::config::OneOrMore;
+use crate::config::{Config, OneOrMore};
 use crate::helpers;
+use crate::project_context::ProjectContext;
 use ahash::AHashSet;
 use log::debug;
 use rayon::prelude::*;
@@ -38,8 +39,6 @@ pub fn generate_asts(
                 }
 
                 SourceType::SourceFile(source_file) => {
-                    let root_package = build_state.get_package(&build_state.root_config_name).unwrap();
-
                     let (ast_result, iast_result, dirty) = if source_file.implementation.parse_dirty
                         || source_file
                             .interface
@@ -50,21 +49,15 @@ pub fn generate_asts(
                         inc();
                         let ast_result = generate_ast(
                             package.to_owned(),
-                            root_package.to_owned(),
                             &source_file.implementation.path.to_owned(),
-                            &build_state.bsc_path,
-                            &build_state.workspace_root,
+                            build_state,
                         );
 
                         let iast_result = match source_file.interface.as_ref().map(|i| i.path.to_owned()) {
-                            Some(interface_file_path) => generate_ast(
-                                package.to_owned(),
-                                root_package.to_owned(),
-                                &interface_file_path.to_owned(),
-                                &build_state.bsc_path,
-                                &build_state.workspace_root,
-                            )
-                            .map(Some),
+                            Some(interface_file_path) => {
+                                generate_ast(package.to_owned(), &interface_file_path.to_owned(), build_state)
+                                    .map(Some)
+                            }
                             _ => Ok(None),
                         };
 
@@ -240,29 +233,25 @@ pub fn generate_asts(
 }
 
 pub fn parser_args(
-    config: &config::Config,
-    root_config: &config::Config,
+    project_context: &ProjectContext,
+    package_config: &Config,
     filename: &Path,
-    workspace_root: &Option<PathBuf>,
-    root_path: &Path,
     contents: &str,
 ) -> (PathBuf, Vec<String>) {
+    let root_config = project_context.get_root_config();
     let file = &filename;
     let ast_path = helpers::get_ast_path(file);
+    let node_modules_path = project_context.get_root_path().join("node_modules");
     let ppx_flags = config::flatten_ppx_flags(
-        &if let Some(workspace_root) = workspace_root {
-            workspace_root.join("node_modules")
-        } else {
-            root_path.join("node_modules")
-        },
-        &filter_ppx_flags(&config.ppx_flags, contents),
-        &config.name,
+        node_modules_path.as_path(),
+        &filter_ppx_flags(&package_config.ppx_flags, contents),
+        &package_config.name,
     );
     let jsx_args = root_config.get_jsx_args();
     let jsx_module_args = root_config.get_jsx_module_args();
     let jsx_mode_args = root_config.get_jsx_mode_args();
     let jsx_preserve_args = root_config.get_jsx_preserve_args();
-    let bsc_flags = config::flatten_flags(&config.compiler_flags);
+    let bsc_flags = config::flatten_flags(&package_config.compiler_flags);
 
     let file = PathBuf::from("..").join("..").join(file);
 
@@ -288,24 +277,16 @@ pub fn parser_args(
 }
 
 fn generate_ast(
-    package: packages::Package,
-    root_package: packages::Package,
+    package: Package,
     filename: &Path,
-    bsc_path: &PathBuf,
-    workspace_root: &Option<PathBuf>,
+    build_state: &BuildState,
 ) -> Result<(PathBuf, Option<helpers::StdErr>), String> {
     let file_path = PathBuf::from(&package.path).join(filename);
     let contents = helpers::read_file(&file_path).expect("Error reading file");
 
     let build_path_abs = package.get_build_path();
-    let (ast_path, parser_args) = parser_args(
-        &package.config,
-        &root_package.config,
-        filename,
-        workspace_root,
-        &root_package.path,
-        &contents,
-    );
+    let (ast_path, parser_args) =
+        parser_args(&build_state.project_context, &package.config, filename, &contents);
 
     // generate the dir of the ast_path (it mirrors the source file dir)
     let ast_parent_path = package.get_build_path().join(ast_path.parent().unwrap());
@@ -313,7 +294,7 @@ fn generate_ast(
 
     /* Create .ast */
     let result = match Some(
-        Command::new(bsc_path)
+        Command::new(&build_state.bsc_path)
             .current_dir(&build_path_abs)
             .args(parser_args)
             .output()
diff --git a/rewatch/src/build/read_compile_state.rs b/rewatch/src/build/read_compile_state.rs
index 0f516fc6d0..3a3b8adc59 100644
--- a/rewatch/src/build/read_compile_state.rs
+++ b/rewatch/src/build/read_compile_state.rs
@@ -7,7 +7,7 @@ use std::fs;
 use std::path::{Path, PathBuf};
 use std::time::SystemTime;
 
-pub fn read(build_state: &mut BuildState) -> CompileAssetsState {
+pub fn read(build_state: &mut BuildState) -> anyhow::Result<CompileAssetsState> {
     let mut ast_modules: AHashMap<PathBuf, AstModule> = AHashMap::new();
     let mut cmi_modules: AHashMap<String, SystemTime> = AHashMap::new();
     let mut cmt_modules: AHashMap<String, SystemTime> = AHashMap::new();
@@ -73,16 +73,14 @@ pub fn read(build_state: &mut BuildState) -> CompileAssetsState {
         .flatten()
         .collect::<Vec<(PathBuf, SystemTime, String, String, packages::Namespace, bool)>>();
 
+    let root_config = build_state.get_root_config();
+
     compile_assets.iter().for_each(
         |(path, last_modified, extension, package_name, package_namespace, package_is_root)| {
             match extension.as_str() {
                 "iast" | "ast" => {
                     let module_name = helpers::file_path_to_module_name(path, package_namespace);
 
-                    let root_package = build_state
-                        .packages
-                        .get(&build_state.root_config_name)
-                        .expect("Could not find root package");
                     if let Some(res_file_path_buf) = get_res_path_from_ast(path) {
                         let _ = ast_modules.insert(
                             res_file_path_buf.clone(),
@@ -93,9 +91,8 @@ pub fn read(build_state: &mut BuildState) -> CompileAssetsState {
                                 last_modified: last_modified.to_owned(),
                                 ast_file_path: path.to_path_buf(),
                                 is_root: *package_is_root,
-                                suffix: root_package
-                                    .config
-                                    .get_suffix(root_package.config.get_package_specs().first().unwrap()),
+                                suffix: root_config
+                                    .get_suffix(root_config.get_package_specs().first().unwrap()),
                             },
                         );
                         let _ = ast_rescript_file_locations.insert(res_file_path_buf);
@@ -126,13 +123,13 @@ pub fn read(build_state: &mut BuildState) -> CompileAssetsState {
         },
     );
 
-    CompileAssetsState {
+    Ok(CompileAssetsState {
         ast_modules,
         cmi_modules,
         cmt_modules,
         ast_rescript_file_locations,
         rescript_file_locations,
-    }
+    })
 }
 
 fn get_res_path_from_ast(ast_file: &Path) -> Option<PathBuf> {
diff --git a/rewatch/src/cli.rs b/rewatch/src/cli.rs
index 0870f603ea..5a66fe0df1 100644
--- a/rewatch/src/cli.rs
+++ b/rewatch/src/cli.rs
@@ -181,10 +181,6 @@ pub enum Command {
     },
     /// Formats ReScript files.
     Format {
-        /// Format the whole project.
-        #[arg(short, long, group = "format_input_mode")]
-        all: bool,
-
         /// Check formatting status without applying changes.
         #[arg(short, long)]
         check: bool,
@@ -199,9 +195,12 @@ pub enum Command {
         )]
         stdin: Option<FileExtension>,
 
-        /// Files to format.
-        #[arg(group = "format_input_mode", required_unless_present_any = ["format_input_mode"])]
+        /// Files to format. If no files are provided, all files are formatted.
+        #[arg(group = "format_input_mode")]
         files: Vec<String>,
+
+        #[command(flatten)]
+        dev: DevArg,
     },
     /// This prints the compiler arguments. It expects the path to a rescript file (.res or .resi).
     CompilerArgs {
diff --git a/rewatch/src/config.rs b/rewatch/src/config.rs
index 6d2878c790..3435859e4b 100644
--- a/rewatch/src/config.rs
+++ b/rewatch/src/config.rs
@@ -266,6 +266,13 @@ pub struct Config {
     // Holds all deprecation warnings for the config struct
     #[serde(skip)]
     deprecation_warnings: Vec<DeprecationWarning>,
+
+    #[serde(default = "default_path")]
+    pub path: PathBuf,
+}
+
+fn default_path() -> PathBuf {
+    PathBuf::from("./rescript.json")
 }
 
 /// This flattens string flags
@@ -375,7 +382,9 @@ impl Config {
     /// Try to convert a bsconfig from a certain path to a bsconfig struct
     pub fn new(path: &Path) -> Result<Self> {
         let read = fs::read_to_string(path)?;
-        Config::new_from_json_string(&read)
+        let mut config = Config::new_from_json_string(&read)?;
+        config.set_path(path.to_path_buf())?;
+        Ok(config)
     }
 
     /// Try to convert a bsconfig from a string to a bsconfig struct
@@ -387,6 +396,11 @@ impl Config {
         Ok(config)
     }
 
+    fn set_path(&mut self, path: PathBuf) -> Result<()> {
+        self.path = path;
+        Ok(())
+    }
+
     pub fn get_namespace(&self) -> packages::Namespace {
         let namespace_from_package = namespace_from_package_name(&self.name);
         match (self.namespace.as_ref(), self.namespace_entry.as_ref()) {
@@ -533,8 +547,6 @@ impl Config {
             .unwrap_or(".js".to_string())
     }
 
-    // TODO: needs improving!
-
     pub fn find_is_type_dev_for_path(&self, relative_path: &Path) -> bool {
         let relative_parent = match relative_path.parent() {
             None => return false,
@@ -620,6 +632,7 @@ pub mod tests {
         pub bs_deps: Vec<String>,
         pub build_dev_deps: Vec<String>,
         pub allowed_dependents: Option<Vec<String>>,
+        pub path: PathBuf,
     }
 
     pub fn create_config(args: CreateConfigArgs) -> Config {
@@ -644,6 +657,7 @@ pub mod tests {
             namespace_entry: None,
             deprecation_warnings: vec![],
             allowed_dependents: args.allowed_dependents,
+            path: args.path,
         }
     }
 
diff --git a/rewatch/src/format.rs b/rewatch/src/format.rs
index 742a7a1511..2fa918c930 100644
--- a/rewatch/src/format.rs
+++ b/rewatch/src/format.rs
@@ -1,4 +1,4 @@
-use crate::helpers;
+use crate::{helpers, project_context};
 use anyhow::{Result, bail};
 use num_cpus;
 use rayon::prelude::*;
@@ -14,9 +14,9 @@ use clap::ValueEnum;
 
 pub fn format(
     stdin_extension: Option<FileExtension>,
-    all: bool,
     check: bool,
     files: Vec<String>,
+    format_dev_deps: bool,
 ) -> Result<()> {
     let bsc_path = helpers::get_bsc();
 
@@ -25,7 +25,11 @@ pub fn format(
             format_stdin(&bsc_path, extension)?;
         }
         None => {
-            let files = if all { get_all_files()? } else { files };
+            let files = if files.is_empty() {
+                get_files_in_scope(format_dev_deps)?
+            } else {
+                files
+            };
             format_files(&bsc_path, files, check)?;
         }
     }
@@ -33,17 +37,17 @@ pub fn format(
     Ok(())
 }
 
-fn get_all_files() -> Result<Vec<String>> {
+fn get_files_in_scope(format_dev_deps: bool) -> Result<Vec<String>> {
     let current_dir = std::env::current_dir()?;
-    let project_root = helpers::get_abs_path(&current_dir);
-    let workspace_root_option = helpers::get_workspace_root(&project_root);
+    let project_context = project_context::ProjectContext::new(&current_dir)?;
 
-    let build_state = packages::make(&None, &project_root, &workspace_root_option, false, false)?;
+    let packages = packages::make(&None, &project_context, false, format_dev_deps)?;
     let mut files: Vec<String> = Vec::new();
+    let packages_to_format = project_context.get_scoped_local_packages(format_dev_deps);
 
-    for (_package_name, package) in build_state {
-        if package.is_local_dep
-            && let Some(source_files) = package.source_files
+    for (_package_name, package) in packages {
+        if packages_to_format.contains(&package.name)
+            && let Some(source_files) = &package.source_files
         {
             for (path, _metadata) in source_files {
                 if let Some(extension) = path.extension() {
diff --git a/rewatch/src/helpers.rs b/rewatch/src/helpers.rs
index 456a43cdae..b3115f528d 100644
--- a/rewatch/src/helpers.rs
+++ b/rewatch/src/helpers.rs
@@ -1,4 +1,5 @@
 use crate::build::packages;
+use crate::project_context::ProjectContext;
 use std::ffi::OsString;
 use std::fs;
 use std::fs::File;
@@ -191,27 +192,26 @@ pub fn get_bsc() -> PathBuf {
         .to_stripped_verbatim_path()
 }
 
-pub fn get_rescript_legacy(root_path: &Path, workspace_root: Option<PathBuf>) -> PathBuf {
-    let bin_dir = Path::new("node_modules").join("rescript").join("cli");
-
-    match (
+pub fn get_rescript_legacy(project_context: &ProjectContext) -> PathBuf {
+    let root_path = project_context.get_root_path();
+    let node_modules_rescript = root_path.join("node_modules").join("rescript");
+    let rescript_legacy_path = if node_modules_rescript.exists() {
+        node_modules_rescript
+            .join("cli")
+            .join("rescript-legacy.js")
+            .canonicalize()
+            .map(StrippedVerbatimPath::to_stripped_verbatim_path)
+    } else {
+        // If the root folder / node_modules doesn't exist, something is wrong.
+        // The only way this can happen is if we are inside the rescript repository.
         root_path
-            .join(&bin_dir)
+            .join("cli")
             .join("rescript-legacy.js")
             .canonicalize()
-            .map(StrippedVerbatimPath::to_stripped_verbatim_path),
-        workspace_root.map(|workspace_root| {
-            workspace_root
-                .join(&bin_dir)
-                .join("rescript-legacy.js")
-                .canonicalize()
-                .map(StrippedVerbatimPath::to_stripped_verbatim_path)
-        }),
-    ) {
-        (Ok(path), _) => path,
-        (_, Some(Ok(path))) => path,
-        _ => panic!("Could not find rescript-legacy.exe"),
-    }
+            .map(StrippedVerbatimPath::to_stripped_verbatim_path)
+    };
+
+    rescript_legacy_path.unwrap_or_else(|_| panic!("Could not find rescript-legacy.exe"))
 }
 
 pub fn string_ends_with_any(s: &Path, suffixes: &[&str]) -> bool {
@@ -357,12 +357,6 @@ fn has_rescript_config(path: &Path) -> bool {
     path.join("bsconfig.json").exists() || path.join("rescript.json").exists()
 }
 
-pub fn get_workspace_root(package_root: &Path) -> Option<PathBuf> {
-    std::path::PathBuf::from(&package_root)
-        .parent()
-        .and_then(get_nearest_config)
-}
-
 // traverse up the directory tree until we find a config.json, if not return None
 pub fn get_nearest_config(path_buf: &Path) -> Option<PathBuf> {
     let mut current_dir = path_buf.to_owned();
@@ -390,3 +384,10 @@ pub fn get_source_file_from_rescript_file(path: &Path, suffix: &str) -> PathBuf
         &suffix.to_string()[1..],
     )
 }
+
+pub fn is_local_package(workspace_path: &Path, canonical_package_path: &Path) -> bool {
+    canonical_package_path.starts_with(workspace_path)
+        && !canonical_package_path
+            .components()
+            .any(|c| c.as_os_str() == "node_modules")
+}
diff --git a/rewatch/src/lib.rs b/rewatch/src/lib.rs
index 5b24c38886..a389e8172e 100644
--- a/rewatch/src/lib.rs
+++ b/rewatch/src/lib.rs
@@ -5,6 +5,7 @@ pub mod config;
 pub mod format;
 pub mod helpers;
 pub mod lock;
+pub mod project_context;
 pub mod queue;
 pub mod sourcedirs;
 pub mod watcher;
diff --git a/rewatch/src/main.rs b/rewatch/src/main.rs
index 7ae9ae0884..5fc08d4250 100644
--- a/rewatch/src/main.rs
+++ b/rewatch/src/main.rs
@@ -93,10 +93,10 @@ fn main() -> Result<()> {
         }
         cli::Command::Format {
             stdin,
-            all,
             check,
             files,
-        } => format::format(stdin, all, check, files),
+            dev,
+        } => format::format(stdin, check, files, dev.dev),
     }
 }
 
diff --git a/rewatch/src/project_context.rs b/rewatch/src/project_context.rs
new file mode 100644
index 0000000000..0293b7c809
--- /dev/null
+++ b/rewatch/src/project_context.rs
@@ -0,0 +1,249 @@
+use crate::build::packages;
+use crate::config::Config;
+use crate::helpers;
+use ahash::AHashSet;
+use anyhow::Result;
+use anyhow::anyhow;
+use log::debug;
+use std::fmt;
+use std::path::Path;
+
+pub enum MonoRepoContext {
+    /// Monorepo root - contains local dependencies (symlinked in node_modules)
+    MonorepoRoot {
+        local_dependencies: AHashSet<String>, // names of local deps
+        local_dev_dependencies: AHashSet<String>,
+    },
+    /// Package within a monorepo - has a parent workspace
+    MonorepoPackage { parent_config: Box<Config> },
+}
+
+pub struct ProjectContext {
+    pub current_config: Config,
+    pub monorepo_context: Option<MonoRepoContext>,
+}
+
+fn format_dependencies(dependencies: &AHashSet<String>) -> String {
+    if dependencies.is_empty() {
+        "[]".to_string()
+    } else {
+        let mut out = String::from("[\n");
+        let mut first = true;
+
+        for dep in dependencies {
+            if !first {
+                out.push_str(",\n");
+            } else {
+                first = false;
+            }
+            out.push_str("  \"");
+            out.push_str(dep);
+            out.push('"');
+        }
+
+        out.push_str("\n]");
+        out
+    }
+}
+
+impl fmt::Debug for ProjectContext {
+    fn fmt(&self, f: &mut fmt::Formatter<'_>) -> fmt::Result {
+        match &self.monorepo_context {
+            None => {
+                write!(
+                    f,
+                    "Single project: \"{}\" at \"{}\"",
+                    &self.current_config.name,
+                    &self.current_config.path.to_string_lossy()
+                )
+            }
+            Some(MonoRepoContext::MonorepoRoot {
+                local_dependencies,
+                local_dev_dependencies,
+            }) => {
+                let deps = format_dependencies(local_dependencies);
+                let dev_deps = format_dependencies(local_dev_dependencies);
+
+                write!(
+                    f,
+                    "Monorepo root: \"{}\" at \"{}\" with dependencies:\n  {}\n  and devDependencies:\n {}",
+                    &self.current_config.name,
+                    &self.current_config.path.to_string_lossy(),
+                    deps,
+                    dev_deps
+                )
+            }
+            Some(MonoRepoContext::MonorepoPackage { parent_config }) => {
+                write!(
+                    f,
+                    "MonorepoPackage:\n  \"{}\" at \"{}\"\n  with parent \"{}\" at \"{}\"",
+                    &self.current_config.name,
+                    &self.current_config.path.to_string_lossy(),
+                    parent_config.name,
+                    parent_config.path.to_string_lossy()
+                )
+            }
+        }
+    }
+}
+fn read_local_packages(
+    folder_path: &Path,
+    dependencies_from_config: &Vec<String>,
+) -> Result<AHashSet<String>> {
+    let mut local_dependencies = AHashSet::<String>::new();
+
+    for dep in dependencies_from_config {
+        // Monorepo packages are expected to be symlinked in node_modules.
+        if let Ok(dep_path) = folder_path
+            .join("node_modules")
+            .join(dep)
+            .canonicalize()
+            .map(helpers::StrippedVerbatimPath::to_stripped_verbatim_path)
+        {
+            let is_local = helpers::is_local_package(folder_path, &dep_path);
+            if is_local {
+                local_dependencies.insert(dep.to_string());
+            }
+
+            debug!(
+                "Dependency \"{}\" is a {}local package at \"{}\"",
+                dep,
+                if is_local { "" } else { "non-" },
+                dep_path.display()
+            );
+        }
+    }
+
+    Ok(local_dependencies)
+}
+
+fn monorepo_or_single_project(path: &Path, current_config: Config) -> Result<ProjectContext> {
+    let local_dependencies = match &current_config.dependencies {
+        None => AHashSet::<String>::new(),
+        Some(deps) => read_local_packages(path, deps)?,
+    };
+    let local_dev_dependencies = match &current_config.dev_dependencies {
+        None => AHashSet::<String>::new(),
+        Some(deps) => read_local_packages(path, deps)?,
+    };
+    if local_dependencies.is_empty() && local_dev_dependencies.is_empty() {
+        Ok(ProjectContext {
+            current_config,
+            monorepo_context: None,
+        })
+    } else {
+        Ok(ProjectContext {
+            current_config,
+            monorepo_context: Some(MonoRepoContext::MonorepoRoot {
+                local_dependencies,
+                local_dev_dependencies,
+            }),
+        })
+    }
+}
+
+fn is_config_listed_in_workspace(current_config: &Config, workspace_config: &Config) -> bool {
+    workspace_config
+        .dependencies
+        .to_owned()
+        .unwrap_or_default()
+        .iter()
+        .any(|dep| dep == &current_config.name)
+        || workspace_config
+            .dev_dependencies
+            .to_owned()
+            .unwrap_or_default()
+            .iter()
+            .any(|dep| dep == &current_config.name)
+}
+
+impl ProjectContext {
+    pub fn new(path: &Path) -> Result<ProjectContext> {
+        let path = helpers::get_abs_path(path);
+        let current_config = packages::read_config(&path)
+            .map_err(|_| anyhow!("Could not read rescript.json at {}", path.to_string_lossy()))?;
+        let nearest_parent_config_path = match path.parent() {
+            None => Err(anyhow!(
+                "The current path \"{}\" does not have a parent folder",
+                path.to_string_lossy()
+            )),
+            Some(parent) => Ok(helpers::get_nearest_config(parent)),
+        }?;
+        let context = match nearest_parent_config_path {
+            None => monorepo_or_single_project(&path, current_config),
+            Some(parent_config_path) => {
+                match packages::read_config(parent_config_path.as_path()) {
+                    Err(e) => Err(anyhow!(
+                        "Could not read the parent config at {}: {}",
+                        parent_config_path.to_string_lossy(),
+                        e
+                    )),
+                    Ok(workspace_config)
+                        if is_config_listed_in_workspace(&current_config, &workspace_config) =>
+                    {
+                        // There is a parent rescript.json, and it has a reference to the current package.
+                        Ok(ProjectContext {
+                            current_config,
+                            monorepo_context: Some(MonoRepoContext::MonorepoPackage {
+                                parent_config: Box::new(workspace_config),
+                            }),
+                        })
+                    }
+                    Ok(_) => {
+                        // There is a parent rescript.json, but it has no reference to the current package.
+                        // However, the current package could still be a monorepo root!
+                        monorepo_or_single_project(&path, current_config)
+                    }
+                }
+            }
+        };
+        context.iter().for_each(|pc| {
+            debug!("Created project context {:#?} for \"{}\"", pc, path.display());
+        });
+        context
+    }
+
+    pub fn get_root_config(&self) -> &Config {
+        match &self.monorepo_context {
+            None => &self.current_config,
+            Some(MonoRepoContext::MonorepoRoot { .. }) => &self.current_config,
+            Some(MonoRepoContext::MonorepoPackage { parent_config }) => parent_config,
+        }
+    }
+
+    pub fn get_root_path(&self) -> &Path {
+        self.get_root_config().path.parent().unwrap()
+    }
+
+    pub fn get_suffix(&self) -> String {
+        self.get_root_config()
+            .suffix
+            .clone()
+            .unwrap_or(String::from(".res.mjs"))
+    }
+
+    /// Returns the local packages relevant for the current context.
+    /// Either a single project, all projects from a monorepo or a single package inside a monorepo.
+    pub fn get_scoped_local_packages(&self, include_dev_deps: bool) -> AHashSet<String> {
+        let mut local_packages = AHashSet::<String>::new();
+        match &self.monorepo_context {
+            None => {
+                local_packages.insert(self.current_config.name.clone());
+            }
+            Some(MonoRepoContext::MonorepoRoot {
+                local_dependencies,
+                local_dev_dependencies,
+            }) => {
+                local_packages.insert(self.current_config.name.clone());
+                local_packages.extend(local_dependencies.iter().cloned());
+                if include_dev_deps {
+                    local_packages.extend(local_dev_dependencies.iter().cloned());
+                }
+            }
+            Some(MonoRepoContext::MonorepoPackage { .. }) => {
+                local_packages.insert(self.current_config.name.clone());
+            }
+        };
+        local_packages
+    }
+}
diff --git a/rewatch/testrepo/package.json b/rewatch/testrepo/package.json
index f42be392d8..3bb995984a 100644
--- a/rewatch/testrepo/package.json
+++ b/rewatch/testrepo/package.json
@@ -13,7 +13,9 @@
       "packages/nonexisting-dev-files",
       "packages/deprecated-config",
       "packages/file-casing",
-      "packages/file-casing-no-namespace"
+      "packages/file-casing-no-namespace",
+      "packages/pure-dev",
+      "packages/with-ppx"
     ]
   },
   "dependencies": {
diff --git a/rewatch/testrepo/packages/pure-dev/dev/RealDev.res b/rewatch/testrepo/packages/pure-dev/dev/RealDev.res
new file mode 100644
index 0000000000..cd25d227f7
--- /dev/null
+++ b/rewatch/testrepo/packages/pure-dev/dev/RealDev.res
@@ -0,0 +1 @@
+let dev =    true
\ No newline at end of file
diff --git a/rewatch/testrepo/packages/pure-dev/package.json b/rewatch/testrepo/packages/pure-dev/package.json
new file mode 100644
index 0000000000..0276294558
--- /dev/null
+++ b/rewatch/testrepo/packages/pure-dev/package.json
@@ -0,0 +1,9 @@
+{
+  "name": "@testrepo/pure-dev",
+  "version": "0.0.1",
+  "keywords": [
+    "rescript"
+  ],
+  "author": "",
+  "license": "MIT"
+}
diff --git a/rewatch/testrepo/packages/pure-dev/rescript.json b/rewatch/testrepo/packages/pure-dev/rescript.json
new file mode 100644
index 0000000000..7eb6700ad8
--- /dev/null
+++ b/rewatch/testrepo/packages/pure-dev/rescript.json
@@ -0,0 +1,8 @@
+{
+  "name": "@testrepo/nonexisting-dev-files",
+  "sources": {
+    "dir": "dev",
+    "subdirs": true,
+    "type": "dev"
+  }
+}
diff --git a/rewatch/testrepo/packages/with-ppx/package.json b/rewatch/testrepo/packages/with-ppx/package.json
new file mode 100644
index 0000000000..8843d691cd
--- /dev/null
+++ b/rewatch/testrepo/packages/with-ppx/package.json
@@ -0,0 +1,14 @@
+{
+  "name": "@testrepo/with-ppx",
+  "version": "0.0.1",
+  "keywords": [
+    "rescript"
+  ],
+  "author": "",
+  "license": "MIT",
+  "dependencies": {
+    "rescript-nodejs": "16.1.0",
+    "sury": "^11.0.0-alpha.2",
+    "sury-ppx": "^11.0.0-alpha.2"
+  }
+}
diff --git a/rewatch/testrepo/packages/with-ppx/rescript.json b/rewatch/testrepo/packages/with-ppx/rescript.json
new file mode 100644
index 0000000000..e8b4facce3
--- /dev/null
+++ b/rewatch/testrepo/packages/with-ppx/rescript.json
@@ -0,0 +1,20 @@
+{
+  "name": "@testrepo/with-ppx",
+  "sources": [
+    {
+      "dir": "src"
+    }
+  ],
+  "dependencies": [
+    "rescript-nodejs",
+    "sury"
+  ],
+  "package-specs": {
+    "module": "es6",
+    "in-source": true
+  },
+  "suffix": ".res.js",
+  "ppx-flags": [
+    "sury-ppx/bin"
+  ]
+}
\ No newline at end of file
diff --git a/rewatch/testrepo/packages/with-ppx/src/FileWithPpx.mjs b/rewatch/testrepo/packages/with-ppx/src/FileWithPpx.mjs
new file mode 100644
index 0000000000..23929387dd
--- /dev/null
+++ b/rewatch/testrepo/packages/with-ppx/src/FileWithPpx.mjs
@@ -0,0 +1,17 @@
+// Generated by ReScript, PLEASE EDIT WITH CARE
+
+import * as S from "sury/src/S.mjs";
+
+let schema = S.schema(s => ({
+  foo: s.m(S.string)
+}));
+
+let foo = S.parseOrThrow("{ \"foo\": \"bar\" }", schema);
+
+console.log(foo);
+
+export {
+  schema,
+  foo,
+}
+/* schema Not a pure module */
diff --git a/rewatch/testrepo/packages/with-ppx/src/FileWithPpx.res b/rewatch/testrepo/packages/with-ppx/src/FileWithPpx.res
new file mode 100644
index 0000000000..1d80e5b98a
--- /dev/null
+++ b/rewatch/testrepo/packages/with-ppx/src/FileWithPpx.res
@@ -0,0 +1,6 @@
+@schema
+type t = {foo: string}
+
+let foo = S.parseOrThrow(`{ "foo": "bar" }`, schema)
+
+Console.log(foo)
\ No newline at end of file
diff --git a/rewatch/testrepo/rescript.json b/rewatch/testrepo/rescript.json
index ae437e38dd..6085fed3a3 100644
--- a/rewatch/testrepo/rescript.json
+++ b/rewatch/testrepo/rescript.json
@@ -25,6 +25,10 @@
     "@testrepo/nonexisting-dev-files",
     "@testrepo/deprecated-config",
     "@testrepo/file-casing",
-    "@testrepo/file-casing-no-namespace"
+    "@testrepo/file-casing-no-namespace",
+    "@testrepo/with-ppx"
+  ],
+  "dev-dependencies": [
+    "@testrepo/pure-dev"
   ]
 }
diff --git a/rewatch/testrepo/yarn.lock b/rewatch/testrepo/yarn.lock
index 808197041f..7712ac2c52 100644
--- a/rewatch/testrepo/yarn.lock
+++ b/rewatch/testrepo/yarn.lock
@@ -114,6 +114,12 @@ __metadata:
   languageName: unknown
   linkType: soft
 
+"@testrepo/pure-dev@workspace:packages/pure-dev":
+  version: 0.0.0-use.local
+  resolution: "@testrepo/pure-dev@workspace:packages/pure-dev"
+  languageName: unknown
+  linkType: soft
+
 "@testrepo/with-dev-deps@workspace:packages/with-dev-deps":
   version: 0.0.0-use.local
   resolution: "@testrepo/with-dev-deps@workspace:packages/with-dev-deps"
@@ -123,6 +129,16 @@ __metadata:
   languageName: unknown
   linkType: soft
 
+"@testrepo/with-ppx@workspace:packages/with-ppx":
+  version: 0.0.0-use.local
+  resolution: "@testrepo/with-ppx@workspace:packages/with-ppx"
+  dependencies:
+    rescript-nodejs: "npm:16.1.0"
+    sury: "npm:^11.0.0-alpha.2"
+    sury-ppx: "npm:^11.0.0-alpha.2"
+  languageName: unknown
+  linkType: soft
+
 "rescript-nodejs@npm:16.1.0":
   version: 16.1.0
   resolution: "rescript-nodejs@npm:16.1.0"
@@ -160,6 +176,27 @@ __metadata:
   languageName: node
   linkType: hard
 
+"sury-ppx@npm:^11.0.0-alpha.2":
+  version: 11.0.0-alpha.2
+  resolution: "sury-ppx@npm:11.0.0-alpha.2"
+  peerDependencies:
+    sury: ^11.0.0-alpha.2
+  checksum: 10c0/ae9190fa4e406de46e88b67db233e757db36f5377301227cf5b084b5b81d360725d6fc4781e24c56cb87476cd3a42af5acc0cfc49f0c7ea17435caf065ba22ab
+  languageName: node
+  linkType: hard
+
+"sury@npm:^11.0.0-alpha.2":
+  version: 11.0.0-alpha.2
+  resolution: "sury@npm:11.0.0-alpha.2"
+  peerDependencies:
+    rescript: 11.x
+  peerDependenciesMeta:
+    rescript:
+      optional: true
+  checksum: 10c0/254dd708608b125defc6b4be0f038df0f6704290df60504b70b7cd613f1e840d150ff65a3f23dbc7213f2b18b86fdc60400b4361ca46f5c86bbe7360eff9c84a
+  languageName: node
+  linkType: hard
+
 "testrepo@workspace:.":
   version: 0.0.0-use.local
   resolution: "testrepo@workspace:."
diff --git a/rewatch/tests/clean.sh b/rewatch/tests/clean.sh
new file mode 100755
index 0000000000..f04aa14387
--- /dev/null
+++ b/rewatch/tests/clean.sh
@@ -0,0 +1,119 @@
+#!/bin/bash
+cd $(dirname $0)
+source "./utils.sh"
+cd ../testrepo
+
+bold "Test: It should clean a single project"
+
+# First we build the entire monorepo
+error_output=$(rewatch build 2>&1)
+if [ $? -eq 0 ];
+then
+  success "Built monorepo"
+else
+  error "Error building monorepo"
+  printf "%s\n" "$error_output" >&2
+  exit 1
+fi
+
+# Then we clean a single project
+error_output=$(cd packages/file-casing && "../../$REWATCH_EXECUTABLE" clean 2>&1)
+clean_status=$?
+if [ $clean_status -ne 0 ];
+then
+  error "Error cleaning current project file-casing"
+  printf "%s\n" "$error_output" >&2
+  exit 1
+fi
+
+# Count compiled files in the cleaned project
+project_compiled_files=$(find packages/file-casing -type f -name '*.mjs' | wc -l | tr -d '[:space:]')
+if [ "$project_compiled_files" -eq 0 ];
+then
+  success "file-casing cleaned"
+else
+  error "Expected 0 .mjs files in file-casing after clean, got $project_compiled_files"
+  printf "%s\n" "$error_output"
+  exit 1
+fi
+
+# Ensure other project files were not cleaned
+other_project_compiled_files=$(find packages/new-namespace -type f -name '*.mjs' | wc -l | tr -d '[:space:]')
+if [ "$other_project_compiled_files" -gt 0 ];
+then
+  success "Didn't clean other project files"
+  git restore .
+else
+  error "Expected files from new-namespace not to be cleaned"
+  exit 1
+fi
+
+bold "--dev should clean dev-dependencies of monorepo"
+
+# First we build the entire monorepo (including --dev)
+error_output=$(rewatch build --dev 2>&1)
+if [ $? -eq 0 ];
+then
+  success "Built monorepo"
+else
+  error "Error building monorepo"
+  printf "%s\n" "$error_output" >&2
+  exit 1
+fi
+
+# Clean entire monorepo (including --dev)
+error_output=$(rewatch clean --dev 2>&1)
+clean_status=$?
+if [ $clean_status -ne 0 ];
+then
+  error "Error cleaning current project file-casing"
+  printf "%s\n" "$error_output" >&2
+  exit 1
+fi
+
+# Count compiled files in dev-dependency project "pure-dev"
+project_compiled_files=$(find packages/pure-dev -type f -name '*.mjs' | wc -l | tr -d '[:space:]')
+if [ "$project_compiled_files" -eq 0 ];
+then
+  success "pure-dev cleaned"
+  git restore .
+else
+  error "Expected 0 .mjs files in pure-dev after clean, got $project_compiled_files"
+  printf "%s\n" "$error_output"
+  exit 1
+fi
+
+bold "Test: It should clean dependencies from node_modules"
+
+# Build a package with external dependencies
+error_output=$(cd packages/with-dev-deps && "../../$REWATCH_EXECUTABLE" build 2>&1)
+if [ $? -eq 0 ];
+then
+  success "Built with-dev-deps"
+else
+  error "Error building with-dev-deps"
+  printf "%s\n" "$error_output" >&2
+  exit 1
+fi
+
+# Then we clean a single project
+error_output=$(cd packages/with-dev-deps && "../../$REWATCH_EXECUTABLE" clean 2>&1)
+clean_status=$?
+if [ $clean_status -ne 0 ];
+then
+  error "Error cleaning current project file-casing"
+  printf "%s\n" "$error_output" >&2
+  exit 1
+fi
+
+# Count compiled files in the cleaned project
+compiler_assets=$(find node_modules/rescript-nodejs/lib/ocaml -type f -name '*.*' | wc -l | tr -d '[:space:]')
+if [ $compiler_assets -eq 0 ];
+then
+  success "compiler assets from node_modules cleaned"
+  git restore .
+else
+  error "Expected 0 files in node_modules/rescript-nodejs/lib/ocaml after clean, got $compiler_assets"
+  printf "%s\n" "$error_output"
+  exit 1
+fi
\ No newline at end of file
diff --git a/rewatch/tests/compiler-args.sh b/rewatch/tests/compiler-args.sh
new file mode 100755
index 0000000000..bbe455bfc0
--- /dev/null
+++ b/rewatch/tests/compiler-args.sh
@@ -0,0 +1,36 @@
+#!/bin/bash
+cd $(dirname $0)
+source "./utils.sh"
+cd ../testrepo
+
+bold "Test: It should not matter where we grab the compiler-args for a file"
+# Capture stdout for both invocations
+stdout_root=$(rewatch compiler-args packages/file-casing/src/Consume.res 2>/dev/null)
+stdout_pkg=$(cd packages/file-casing && "../../$REWATCH_EXECUTABLE" compiler-args src/Consume.res 2>/dev/null)
+
+error_output=$(rewatch compiler-args packages/file-casing/src/Consume.res 2>&1)
+if [ $? -ne 0 ]; then
+  error "Error grabbing compiler args for packages/file-casing/src/Consume.res"
+  printf "%s\n" "$error_output" >&2
+  exit 1
+fi
+error_output=$(cd packages/file-casing && "../../$REWATCH_EXECUTABLE" compiler-args src/Consume.res 2>&1)
+if [ $? -ne 0 ]; then
+  error "Error grabbing compiler args for src/Consume.res in packages/file-casing"
+  printf "%s\n" "$error_output" >&2
+  exit 1
+fi
+
+# Compare the stdout of both runs; must be exactly identical
+tmp1=$(mktemp); tmp2=$(mktemp)
+trap 'rm -f "$tmp1" "$tmp2"' EXIT
+printf "%s" "$stdout_root" > "$tmp1"
+printf "%s" "$stdout_pkg" > "$tmp2"
+if git diff --no-index --exit-code "$tmp1" "$tmp2" > /dev/null; then
+  success "compiler-args stdout is identical regardless of cwd"
+else
+  error "compiler-args stdout differs depending on cwd"
+  echo "---- diff ----"
+  git diff --no-index "$tmp1" "$tmp2" || true
+  exit 1
+fi
diff --git a/rewatch/tests/format.sh b/rewatch/tests/format.sh
index ccfef0f4e4..2dd2df093a 100755
--- a/rewatch/tests/format.sh
+++ b/rewatch/tests/format.sh
@@ -4,15 +4,15 @@ cd ../testrepo
 bold "Test: It should format all files"
 
 git diff --name-only ./
-error_output=$("$REWATCH_EXECUTABLE" format --all)
+error_output=$("$REWATCH_EXECUTABLE" format)
 git_diff_file_count=$(git diff --name-only ./ | wc -l | xargs)
-if [ $? -eq 0 ] && [ $git_diff_file_count -eq 8 ];
+if [ $? -eq 0 ] && [ $git_diff_file_count -eq 9 ];
 then
     success "Test package formatted. Got $git_diff_file_count changed files."
     git restore .
 else
     error "Error formatting test package"
-    echo "Expected 8 files to be changed, got $git_diff_file_count"
+    echo "Expected 9 files to be changed, got $git_diff_file_count"
     echo $error_output
     exit 1
 fi
@@ -42,3 +42,33 @@ else
     echo $error_output
     exit 1
 fi
+
+bold "Test: It should format only the current project"
+
+error_output=$(cd packages/file-casing && "../../$REWATCH_EXECUTABLE" format)
+git_diff_file_count=$(git diff --name-only ./ | wc -l | xargs)
+if [ $? -eq 0 ] && [ $git_diff_file_count -eq 2 ];
+then
+    success "file-casing formatted"
+    git restore .
+else
+    error "Error formatting current project file-casing"
+     echo "Expected 2 files to be changed, got $git_diff_file_count"
+    echo $error_output
+    exit 1
+fi
+
+bold "Test: it should format dev package as well"
+
+error_output=$("$REWATCH_EXECUTABLE" format --dev)
+git_diff_file_count=$(git diff --name-only ./ | wc -l | xargs)
+if [ $? -eq 0 ] && [ $git_diff_file_count -eq 10 ];
+then
+    success "All packages (including dev) were formatted. Got $git_diff_file_count changed files."
+    git restore .
+else
+    error "Error formatting test package"
+    echo "Expected 9 files to be changed, got $git_diff_file_count"
+    echo $error_output
+    exit 1
+fi
\ No newline at end of file
diff --git a/rewatch/tests/snapshots/bs-dev-dependency-used-by-non-dev-source.txt b/rewatch/tests/snapshots/bs-dev-dependency-used-by-non-dev-source.txt
index 04222b84a0..dcb7d2a84c 100644
--- a/rewatch/tests/snapshots/bs-dev-dependency-used-by-non-dev-source.txt
+++ b/rewatch/tests/snapshots/bs-dev-dependency-used-by-non-dev-source.txt
@@ -1,4 +1,4 @@
-Cleaned 0/60
+Cleaned 0/67
 Parsed 2 source files
 Compiled 2 modules
 
diff --git a/rewatch/tests/snapshots/dependency-cycle.txt b/rewatch/tests/snapshots/dependency-cycle.txt
index cc25fb9c92..d188bae03b 100644
--- a/rewatch/tests/snapshots/dependency-cycle.txt
+++ b/rewatch/tests/snapshots/dependency-cycle.txt
@@ -1,4 +1,4 @@
-Cleaned 0/60
+Cleaned 0/67
 Parsed 1 source files
 Compiled 0 modules
 
diff --git a/rewatch/tests/snapshots/remove-file.txt b/rewatch/tests/snapshots/remove-file.txt
index a19c44e596..f29d684156 100644
--- a/rewatch/tests/snapshots/remove-file.txt
+++ b/rewatch/tests/snapshots/remove-file.txt
@@ -1,4 +1,4 @@
-Cleaned 1/60
+Cleaned 1/67
 Parsed 0 source files
 Compiled 1 modules
 
diff --git a/rewatch/tests/snapshots/rename-file-internal-dep-namespace.txt b/rewatch/tests/snapshots/rename-file-internal-dep-namespace.txt
index a0e20f68f0..dbfd47cfa9 100644
--- a/rewatch/tests/snapshots/rename-file-internal-dep-namespace.txt
+++ b/rewatch/tests/snapshots/rename-file-internal-dep-namespace.txt
@@ -1,4 +1,4 @@
-Cleaned 2/60
+Cleaned 2/67
 Parsed 2 source files
 Compiled 3 modules
 
diff --git a/rewatch/tests/snapshots/rename-file-internal-dep.txt b/rewatch/tests/snapshots/rename-file-internal-dep.txt
index 34d9fc9c90..e2e6058d9d 100644
--- a/rewatch/tests/snapshots/rename-file-internal-dep.txt
+++ b/rewatch/tests/snapshots/rename-file-internal-dep.txt
@@ -1,4 +1,4 @@
-Cleaned 2/60
+Cleaned 2/67
 Parsed 2 source files
 Compiled 2 modules
 
diff --git a/rewatch/tests/snapshots/rename-file-with-interface.txt b/rewatch/tests/snapshots/rename-file-with-interface.txt
index fa2b3dcd73..a5a1eba38b 100644
--- a/rewatch/tests/snapshots/rename-file-with-interface.txt
+++ b/rewatch/tests/snapshots/rename-file-with-interface.txt
@@ -1,5 +1,5 @@
 
 No implementation file found for interface file (skipping): src/ModuleWithInterface.resi
-Cleaned 2/60
+Cleaned 2/67
 Parsed 1 source files
 Compiled 2 modules
 
diff --git a/rewatch/tests/snapshots/rename-file.txt b/rewatch/tests/snapshots/rename-file.txt
index 388a7fa123..12816226ad 100644
--- a/rewatch/tests/snapshots/rename-file.txt
+++ b/rewatch/tests/snapshots/rename-file.txt
@@ -1,4 +1,4 @@
-Cleaned 1/60
+Cleaned 1/67
 Parsed 1 source files
 Compiled 1 modules
 
diff --git a/rewatch/tests/snapshots/rename-interface-file.txt b/rewatch/tests/snapshots/rename-interface-file.txt
index 7ab0b0c690..c422225d07 100644
--- a/rewatch/tests/snapshots/rename-interface-file.txt
+++ b/rewatch/tests/snapshots/rename-interface-file.txt
@@ -1,5 +1,5 @@
 
 No implementation file found for interface file (skipping): src/ModuleWithInterface2.resi
-Cleaned 1/60
+Cleaned 1/67
 Parsed 1 source files
 Compiled 2 modules
 
diff --git a/rewatch/tests/suffix.sh b/rewatch/tests/suffix.sh
index aa67fcfde9..32450befea 100755
--- a/rewatch/tests/suffix.sh
+++ b/rewatch/tests/suffix.sh
@@ -31,7 +31,7 @@ fi
 # Count files with new extension
 file_count=$(find ./packages -name *.res.js | wc -l)
 
-if [ "$file_count" -eq 36 ];
+if [ "$file_count" -eq 38 ];
 then
   success "Found files with correct suffix"
 else
diff --git a/rewatch/tests/suite-ci.sh b/rewatch/tests/suite-ci.sh
index 76cc50b21c..fc1d615643 100755
--- a/rewatch/tests/suite-ci.sh
+++ b/rewatch/tests/suite-ci.sh
@@ -18,8 +18,11 @@ export RESCRIPT_BSC_EXE
 
 source ./utils.sh
 
+bold "Yarn install"
+(cd ../testrepo && yarn)
+
 bold "Rescript version"
-(cd ../testrepo && ./node_modules/.bin/rescript -v)
+(cd ../testrepo && ./node_modules/.bin/rescript --version)
 
 # we need to reset the yarn.lock and package.json to the original state
 # so there is not diff in git. The CI will install new ReScript package
@@ -40,4 +43,4 @@ else
   exit 1
 fi
 
-./compile.sh && ./watch.sh && ./lock.sh && ./suffix.sh && ./legacy.sh && ./format.sh
+./compile.sh && ./watch.sh && ./lock.sh && ./suffix.sh && ./legacy.sh && ./format.sh && ./clean.sh && ./compiler-args.sh
\ No newline at end of file
diff --git a/rewatch/tests/watch.sh b/rewatch/tests/watch.sh
index 314d74dc83..229cd01f97 100755
--- a/rewatch/tests/watch.sh
+++ b/rewatch/tests/watch.sh
@@ -18,12 +18,33 @@ exit_watcher() {
   rm lib/rescript.lock
 }
 
-rewatch_bg watch > /dev/null 2>&1 &
+# Wait until a file exists (with timeout in seconds, default 30)
+wait_for_file() {
+  local file="$1"; local timeout="${2:-30}"
+  while [ "$timeout" -gt 0 ]; do
+    [ -f "$file" ] && return 0
+    sleep 1
+    timeout=$((timeout - 1))
+  done
+  return 1
+}
+
+# Start watcher and capture logs for debugging
+rewatch_bg watch > rewatch.log 2>&1 &
 success "Watcher Started"
 
+# Trigger a recompilation
 echo 'Js.log("added-by-test")' >> ./packages/main/src/Main.res
 
-sleep 2
+# Wait for the compiled JS to show up (Windows CI can be slower)
+target=./packages/main/src/Main.mjs
+if ! wait_for_file "$target" 10; then
+  error "Expected output not found: $target"
+  ls -la ./packages/main/src || true
+  tail -n 200 rewatch.log || true
+  exit_watcher
+  exit 1
+fi
 
 if node ./packages/main/src/Main.mjs | grep 'added-by-test' &> /dev/null;
 then