diff --git a/ghcide/bench/lib/Experiments.hs b/ghcide/bench/lib/Experiments.hs
index 7b3ffbb642..562e870a61 100644
--- a/ghcide/bench/lib/Experiments.hs
+++ b/ghcide/bench/lib/Experiments.hs
@@ -156,10 +156,10 @@ experiments =
                 forM_ identifierP $ \p -> changeDoc doc [charEdit p]
         )
         ( \docs -> do
-            Just hieYaml <- uriToFilePath <$> getDocUri "hie.yaml"
-            liftIO $ appendFile hieYaml "##\n"
+            hieYamlUri <- getDocUri "hie.yaml"
+            liftIO $ appendFile (fromJust $ uriToFilePath hieYamlUri) "##\n"
             sendNotification SWorkspaceDidChangeWatchedFiles $ DidChangeWatchedFilesParams $
-                List [ FileEvent (filePathToUri "hie.yaml") FcChanged ]
+                List [ FileEvent hieYamlUri FcChanged ]
             forM_ docs $ \DocumentPositions{..} ->
               changeDoc doc [charEdit stringLiteralP]
             waitForProgressDone
@@ -171,10 +171,10 @@ experiments =
       bench
         "hover after cradle edit"
         (\docs -> do
-            Just hieYaml <- uriToFilePath <$> getDocUri "hie.yaml"
-            liftIO $ appendFile hieYaml "##\n"
+            hieYamlUri <- getDocUri "hie.yaml"
+            liftIO $ appendFile (fromJust $ uriToFilePath hieYamlUri) "##\n"
             sendNotification SWorkspaceDidChangeWatchedFiles $ DidChangeWatchedFilesParams $
-                List [ FileEvent (filePathToUri "hie.yaml") FcChanged ]
+                List [ FileEvent hieYamlUri FcChanged ]
             flip allWithIdentifierPos docs $ \DocumentPositions{..} -> isJust <$> getHover doc (fromJust identifierP)
         ),
       ---------------------------------------------------------------------------------------
diff --git a/ghcide/src/Development/IDE/Core/Rules.hs b/ghcide/src/Development/IDE/Core/Rules.hs
index c4cbab0d02..0d4c082931 100644
--- a/ghcide/src/Development/IDE/Core/Rules.hs
+++ b/ghcide/src/Development/IDE/Core/Rules.hs
@@ -138,7 +138,7 @@ import qualified Language.LSP.Server                          as LSP
 import           Language.LSP.Types                           (SMethod (SCustomMethod))
 import           Language.LSP.VFS
 import           Module
-import           System.Directory                             (canonicalizePath)
+import           System.Directory                             (canonicalizePath, makeAbsolute)
 import           TcRnMonad                                    (tcg_dependent_files)
 
 import           Control.Applicative
@@ -674,9 +674,12 @@ loadGhcSession = do
 
         -- add the deps to the Shake graph
         let addDependency fp = do
-                let nfp = toNormalizedFilePath' fp
+                -- VSCode uses absolute paths in its filewatch notifications
+                afp <- liftIO $ makeAbsolute fp
+                let nfp = toNormalizedFilePath' afp
                 itExists <- getFileExists nfp
-                when itExists $ void $ use_ GetModificationTime nfp
+                when itExists $ void $ do
+                  use_ GetModificationTime nfp
         mapM_ addDependency deps
 
         opts <- getIdeOptions