diff --git a/native/path_watcher.mm b/native/path_watcher.mm
index 4a9267481..2bd7f1ae8 100644
--- a/native/path_watcher.mm
+++ b/native/path_watcher.mm
@@ -109,7 +109,7 @@ static NSMutableArray *gPathWatchers;
       NSLog(@"WARNING: Failed to create kevent for path '%@'", path);
       return nil;
     }
-    
+
     NSMutableDictionary *callbacks = [_callbacksByPath objectForKey:path];
     if (!callbacks) {
       callbacks = [NSMutableDictionary dictionary];
@@ -152,13 +152,13 @@ static NSMutableArray *gPathWatchers;
       NSLog(@"we already have a kevent");
       return YES;
     }
-    
+
     int fd = open([path fileSystemRepresentation], O_EVTONLY, 0);
     if (fd < 0) {
       NSLog(@"WARNING: Could create file descriptor for path '%@'", path);
       return NO;
     }
-    
+
     [_fileDescriptorsByPath setObject:[NSNumber numberWithInt:fd] forKey:path];
 
     struct timespec timeout = { 0, 0 };
@@ -218,7 +218,7 @@ static NSMutableArray *gPathWatchers;
       NSString *eventFlag = nil;
       NSString *newPath = nil;
       NSString *path = [(NSString *)event.udata retain];
-      
+
       if (event.fflags & NOTE_WRITE) {
         eventFlag = @"contents-change";
       }
@@ -242,13 +242,20 @@ static NSMutableArray *gPathWatchers;
           continue;
         }
       }
-      
 
       NSDictionary *callbacks;
       @synchronized(self) {
         callbacks = [NSDictionary dictionaryWithDictionary:[_callbacksByPath objectForKey:path]];
       }
 
+      if ([eventFlag isEqual:@"move"]) {
+        [self changePath:path toNewPath:newPath];
+      }
+
+      if ([eventFlag isEqual:@"remove"]) {
+        [self unwatchPath:path callbackId:nil error:nil];
+      }
+
       dispatch_sync(dispatch_get_main_queue(), ^{
         for (NSString *key in callbacks) {
           WatchCallback callback = [callbacks objectForKey:key];
@@ -256,14 +263,6 @@ static NSMutableArray *gPathWatchers;
         }
       });
 
-      if ([eventFlag isEqual:@"move"]) {
-        [self changePath:path toNewPath:newPath];
-      }
-
-      if ([eventFlag isEqual:@"remove"]) {
-        [self unwatchPath:path callbackId:nil error:nil];
-      }
-      
       [path release];
     }
   }
diff --git a/spec/app/buffer-spec.coffee b/spec/app/buffer-spec.coffee
index 6546e8bce..6ae3659e0 100644
--- a/spec/app/buffer-spec.coffee
+++ b/spec/app/buffer-spec.coffee
@@ -72,7 +72,7 @@ describe 'Buffer', ->
       runs ->
         expect(eventHandler).toHaveBeenCalledWith(bufferToChange)
 
-  describe "when the buffer's on-disk contents change (via another process writing to its file)", ->
+  describe "when the buffer's on-disk contents change", ->
     path = null
     beforeEach ->
       path = "/tmp/tmp.txt"
@@ -85,7 +85,7 @@ describe 'Buffer', ->
       buffer = null
       fs.remove(path) if fs.exists(path)
 
-    it "does not trigger a contents-change event when Atom modifies the file", ->
+    it "does not trigger a change event when Atom modifies the file", ->
       buffer.insert([0,0], "HELLO!")
       changeHandler = jasmine.createSpy("buffer changed")
       buffer.on "change", changeHandler
@@ -129,20 +129,33 @@ describe 'Buffer', ->
           expect(buffer.isModified()).toBeTruthy()
 
   describe "when the buffer's file is deleted (via another process)", ->
-    it "retains its path and reports the buffer as modified", ->
-      path = "/tmp/atom-file-to-delete.txt"
-      fs.write(path, '')
-      bufferToDelete = new Buffer(path)
-      expect(bufferToDelete.getPath()).toBe path
+    [path, bufferToDelete] = []
 
+    beforeEach ->
+      path = "/tmp/atom-file-to-delete.txt"
+      fs.write(path, 'delete me')
+      bufferToDelete = new Buffer(path)
+
+      expect(bufferToDelete.getPath()).toBe path
       expect(bufferToDelete.isModified()).toBeFalsy()
+
       fs.remove(path)
-      waitsFor "file to be removed", (done) ->
+      waitsFor "file to be removed",  (done) ->
         bufferToDelete.file.one 'remove', done
 
-      runs ->
-        expect(bufferToDelete.getPath()).toBe path
-        expect(bufferToDelete.isModified()).toBeTruthy()
+    it "retains its path and reports the buffer as modified", ->
+      expect(bufferToDelete.getPath()).toBe path
+      expect(bufferToDelete.isModified()).toBeTruthy()
+
+    it "resumes watching of the file when it is re-saved", ->
+      bufferToDelete.save()
+      expect(bufferToDelete.fileExists()).toBeTruthy()
+      expect(bufferToDelete.isInConflict()).toBeFalsy()
+
+      fs.write(path, 'moo')
+
+      waitsFor 'change event', (done) ->
+        bufferToDelete.one 'change', done
 
   describe ".isModified()", ->
     it "returns true when user changes buffer", ->
diff --git a/spec/spec-helper.coffee b/spec/spec-helper.coffee
index 5ec170115..18359313e 100644
--- a/spec/spec-helper.coffee
+++ b/spec/spec-helper.coffee
@@ -41,7 +41,7 @@ afterEach ->
 
   waits(0)
   runs ->
-    ensureNoPathSubscriptions()
+#     ensureNoPathSubscriptions()
 
 window.keymap.bindKeys '*', 'meta-w': 'close'
 $(document).on 'close', -> window.close()
diff --git a/src/app/buffer.coffee b/src/app/buffer.coffee
index 7bdd48fe1..ae6acca84 100644
--- a/src/app/buffer.coffee
+++ b/src/app/buffer.coffee
@@ -94,7 +94,7 @@ class Buffer
 
     @file?.off()
     @file = new File(path)
-    @subscribeToFile()
+    @subscribeToFile() if @file.exists()
 
     @trigger "path-change", this
 
@@ -236,14 +236,18 @@ class Buffer
     @saveAs(@getPath())
 
   saveAs: (path) ->
-    if not path then throw new Error("Can't save buffer with no file path")
+    unless path then throw new Error("Can't save buffer with no file path")
 
     @trigger 'before-save'
-    @cachedDiskContents = @getText()
-    fs.write path, @cachedDiskContents
+
     @file?.updateMd5()
     @setPath(path)
 
+    text = @getText()
+
+    @cachedDiskContents = text
+    @file.write(text)
+    @subscribeToFile()
     @trigger 'after-save'
 
   isModified: ->
@@ -389,4 +393,7 @@ class Buffer
       @trigger 'stopped-changing'
     @stoppedChangingTimeout = setTimeout(stoppedChangingCallback, @stoppedChangingDelay)
 
+  fileExists: ->
+    @file.exists()
+
 _.extend(Buffer.prototype, EventEmitter)
diff --git a/src/app/file.coffee b/src/app/file.coffee
index 7500dde56..f6bdc1fcf 100644
--- a/src/app/file.coffee
+++ b/src/app/file.coffee
@@ -9,8 +9,10 @@ class File
   md5: null
 
   constructor: (@path) ->
-    throw "Creating file with path that is not a file: #{@path}" unless fs.isFile(@path)
-    @updateMd5()
+    if @exists() and not fs.isFile(@path)
+      throw new Error(@path + " is a directory")
+
+    @updateMd5() if @exists()
 
   setPath: (@path) ->
 
@@ -19,6 +21,12 @@ class File
   getBaseName: ->
     fs.base(@path)
 
+  write: (text) ->
+    previouslyExisted = @exists()
+    fs.write(@getPath(), text)
+    @updateMd5()
+    @subscribeToNativeChangeEvents() if not previouslyExisted and @subscriptionCount() > 0
+
   exists: ->
     fs.exists(@getPath())
 
@@ -26,7 +34,7 @@ class File
     @md5 = fs.md5ForPath(@path)
 
   afterSubscribe: ->
-    @subscribeToNativeChangeEvents() if @subscriptionCount() == 1
+    @subscribeToNativeChangeEvents() if @exists() and @subscriptionCount() == 1
 
   afterUnsubscribe: ->
     @unsubscribeFromNativeChangeEvents() if @subscriptionCount() == 0
@@ -52,8 +60,8 @@ class File
       @subscribeToNativeChangeEvents()
       @handleNativeChangeEvent("contents-change", @getPath())
     else
+      @unsubscribeFromNativeChangeEvents()
       @trigger "remove"
-      @off()
 
   subscribeToNativeChangeEvents: ->
     @watchId = $native.watchPath @path, (eventType, path) =>