diff --git a/packages/kernel/py/stlite-lib/stlite_lib/server/server.py b/packages/kernel/py/stlite-lib/stlite_lib/server/server.py
index a0e611a0d..c0673710b 100644
--- a/packages/kernel/py/stlite-lib/stlite_lib/server/server.py
+++ b/packages/kernel/py/stlite-lib/stlite_lib/server/server.py
@@ -60,7 +60,9 @@ def __init__(self, main_script_path: str, app_home_dir: str | None = None) -> No
 
         self._runtime.stats_mgr.register_provider(self._media_file_storage)
 
-    async def start(self) -> None:
+    async def start(
+        self, file_change_callback: Callable[[str], None] | None = None
+    ) -> None:
         """Start the server.
 
         When this returns, Streamlit is ready to accept new sessions.
@@ -71,7 +73,7 @@ async def start(self) -> None:
         home_dir_contextvar.set(self.app_home_dir)
 
         # In stlite, we deal with WebSocket separately.
-        self._websocket_handler = WebSocketHandler(self._runtime)
+        self._websocket_handler = WebSocketHandler(self._runtime, file_change_callback)
 
         # Based on the original impl at https://github.com/streamlit/streamlit/blob/1.18.1/lib/streamlit/web/server/server.py#L221  # noqa: E501
         base = ""  # The original impl reads the `server.baseUrlPath` config, but we use a fixed empty string.  # noqa: E501
@@ -252,10 +254,19 @@ class WebSocketHandler(SessionClient):
 
     _callback: Callable[[bytes | str, bool], None] | None
 
-    def __init__(self, runtime: Runtime) -> None:
+    def __init__(
+        self,
+        runtime: Runtime,
+        file_change_callback: Callable[[str], None] | None = None,
+    ) -> None:
         self._runtime = runtime
         self._session_id = None
 
+        # File change callback needs to be registered in this handler's `open()`
+        # because the callback is registered via the `AppSession` instance
+        # which is created after the connection is established in `open()`.
+        self._file_change_callback = file_change_callback
+
     def write_forward_msg(self, msg: ForwardMsg) -> None:
         """Send a ForwardMsg to the browser."""
         if self._callback is None:
@@ -276,6 +287,29 @@ def open(self, on_message: Callable[[bytes | str, bool], None]) -> None:
             existing_session_id=existing_session_id,
         )
 
+        if self._file_change_callback:
+            session_info = self._runtime._session_mgr.get_session_info(self._session_id)
+            if session_info is None:
+                _LOGGER.warning(
+                    "No session info found. Cannot register file change callback."
+                )
+                return
+            session = session_info.session
+            if session is None:
+                _LOGGER.warning(
+                    "No session found. Cannot register file change callback."
+                )
+                return
+            if session._local_sources_watcher is None:
+                _LOGGER.warning(
+                    "session._local_sources_watcher is None. Cannot register file change callback."
+                )
+                return
+            _LOGGER.debug("Registering file change callback for session %s", session.id)
+            session._local_sources_watcher.register_file_change_callback(
+                self._file_change_callback
+            )
+
     def on_close(self) -> None:
         if not self._session_id:
             return
diff --git a/packages/kernel/src/worker-runtime.ts b/packages/kernel/src/worker-runtime.ts
index cf68ebe27..5714fe398 100644
--- a/packages/kernel/src/worker-runtime.ts
+++ b/packages/kernel/src/worker-runtime.ts
@@ -373,13 +373,23 @@ __bootstrap__`); // This last line evaluates to the function so it is returned f
   );
   console.debug("Set up the Streamlit configuration");
 
+  const fileChangeCallback = moduleAutoLoad
+    ? (filePath: string) => {
+        console.debug("File changed", filePath);
+        if (filePath.endsWith(".py")) {
+          const fileData = pyodide.FS.readFile(filePath, { encoding: "utf8" });
+          dispatchModuleAutoLoading(pyodide, onModuleAutoLoad, [fileData]);
+        }
+      }
+    : undefined;
+
   console.debug("Booting up the Streamlit server");
   const Server = pyodide.pyimport("stlite_lib.server.Server");
   const httpServer = Server(
     canonicalEntrypoint,
     appId ? getAppHomeDir(appId) : null,
   );
-  await httpServer.start();
+  await httpServer.start(fileChangeCallback);
   console.debug("Booted up the Streamlit server");
 
   return {
@@ -622,18 +632,6 @@ export function startWorkerEnv(
           const { path: rawPath, data: fileData, opts } = msg.data;
           const path = resolveAppPath(appId, rawPath);
 
-          if (
-            moduleAutoLoad &&
-            typeof fileData === "string" &&
-            path.endsWith(".py")
-          ) {
-            // Auto-install must be dispatched before writing the file
-            // because its promise should be set before saving the file triggers rerunning.
-            console.debug(`Auto install the requirements in ${path}`);
-
-            dispatchModuleAutoLoading(pyodide, onModuleAutoLoad, [fileData]);
-          }
-
           console.debug(`Write a file "${path}"`);
           writeFileWithParents(pyodide, path, fileData, opts);
           reply({