diff --git a/spec/app/text-mate-grammar-spec.coffee b/spec/app/text-mate-grammar-spec.coffee
index 3dae2764a..51ca1c483 100644
--- a/spec/app/text-mate-grammar-spec.coffee
+++ b/spec/app/text-mate-grammar-spec.coffee
@@ -242,6 +242,23 @@ describe "TextMateGrammar", ->
             expect(tokens[21]).toEqual value: 'div', scopes: ["text.html.ruby","meta.tag.block.any.html","entity.name.tag.block.any.html"]
             expect(tokens[22]).toEqual value: '>', scopes: ["text.html.ruby","meta.tag.block.any.html","punctuation.definition.tag.end.html"]
 
+          it "updates the grammar if the included grammar is updated later", ->
+            atom.activatePackage('html.tmbundle', sync: true)
+            atom.activatePackage('ruby-on-rails-tmbundle', sync: true)
+
+            grammar = syntax.selectGrammar('foo.html.erb')
+            grammarUpdatedHandler = jasmine.createSpy("grammarUpdatedHandler")
+            grammar.on 'grammar-updated', grammarUpdatedHandler
+
+            {tokens} = grammar.tokenizeLine("<div class='name'><% <<-SQL select * from users;")
+            expect(tokens[12].value).toBe " select * from users;"
+
+            atom.activatePackage('sql.tmbundle', sync: true)
+            expect(grammarUpdatedHandler).toHaveBeenCalled()
+            {tokens} = grammar.tokenizeLine("<div class='name'><% <<-SQL select * from users;")
+            expect(tokens[12].value).toBe " "
+            expect(tokens[13].value).toBe "select"
+
         describe "when a grammar matching the desired scope is unavailable", ->
           it "updates the grammar if a matching grammar is added later", ->
             atom.deactivatePackage('html.tmbundle')
diff --git a/src/app/null-grammar.coffee b/src/app/null-grammar.coffee
index 6dadc599a..8d7079d55 100644
--- a/src/app/null-grammar.coffee
+++ b/src/app/null-grammar.coffee
@@ -15,6 +15,6 @@ class NullGrammar
   tokenizeLine: (line) ->
     { tokens: [new Token(value: line, scopes: ['null-grammar.text.plain'])] }
 
-  grammarAddedOrRemoved: -> # no op
+  grammarUpdated: -> # noop
 
 _.extend NullGrammar.prototype, EventEmitter
diff --git a/src/app/syntax.coffee b/src/app/syntax.coffee
index db48ad045..c5ffd1f58 100644
--- a/src/app/syntax.coffee
+++ b/src/app/syntax.coffee
@@ -34,16 +34,17 @@ class Syntax
     previousGrammars = new Array(@grammars...)
     @grammars.push(grammar)
     @grammarsByScopeName[grammar.scopeName] = grammar
-    @notifyOtherGrammars(previousGrammars, grammar.scopeName)
+    @grammarUpdated(grammar.scopeName)
     @trigger 'grammar-added', grammar
 
   removeGrammar: (grammar) ->
     _.remove(@grammars, grammar)
     delete @grammarsByScopeName[grammar.scopeName]
-    @notifyOtherGrammars(@grammars, grammar.scopeName)
+    @grammarUpdated(grammar.scopeName)
 
-  notifyOtherGrammars: (grammars, scopeName) ->
-    grammar.grammarAddedOrRemoved(scopeName) for grammar in grammars
+  grammarUpdated: (scopeName) ->
+    for grammar in @grammars when grammar.scopeName isnt scopeName
+      grammar.grammarUpdated(scopeName)
 
   setGrammarOverrideForPath: (path, scopeName) ->
     @grammarOverridesByPath[path] = scopeName
diff --git a/src/app/text-mate-grammar.coffee b/src/app/text-mate-grammar.coffee
index a38cb1074..56d168c2b 100644
--- a/src/app/text-mate-grammar.coffee
+++ b/src/app/text-mate-grammar.coffee
@@ -64,9 +64,10 @@ class TextMateGrammar
   addIncludedGrammarScope: (scope) ->
     @includedGrammarScopes.push(scope) unless _.include(@includedGrammarScopes, scope)
 
-  grammarAddedOrRemoved: (scopeName) =>
+  grammarUpdated: (scopeName) =>
     return unless _.include(@includedGrammarScopes, scopeName)
     @clearRules()
+    syntax.grammarUpdated(@scopeName)
     @trigger 'grammar-updated'
 
   getScore: (path, contents) ->