Converted watch to a boolean and got it actually working correctly

bin/node-sass

@@ -53,7 +53,8 @@ var cli = meow({
     'recursive',
     'source-map-embed',
     'source-map-contents',
-    'source-comments'
+    'source-comments',
+    'watch'
   ],
   string: [
     'functions',
@@ -64,8 +65,7 @@ var cli = meow({
     'output',
     'output-style',
     'precision',
-    'source-map-root',
-    'watch'
+    'source-map-root'
   ],
   alias: {
     c: 'source-comments',
@@ -82,7 +82,8 @@ var cli = meow({
     'indent-width': 2,
     linefeed: 'lf',
     'output-style': 'nested',
-    precision: 5
+    precision: 5,
+    recursive: true
   }
 });
 
@@ -139,7 +140,7 @@ function getEmitter() {
  */
 
 function getOptions(args, options) {
-  options.src = options.watch ? options.watch : args[0];
+  options.src = args[0];
 
   if (args[1]) {
     options.dest = path.resolve(process.cwd(), args[1]);
@@ -161,26 +162,20 @@ function getOptions(args, options) {
  */
 
 function watch(options, emitter) {
-  var dir = options.watch;
-  var gaze = new Gaze();
-
-  if (dir === true) {
-    dir = [];
-  } else if (!Array.isArray(dir)) {
-    dir = [dir];
+  var glob = options.recursive ? '**/*.{sass,scss}' : '*.{sass,scss}';
+  var src = isSassFile(options.src) ? options.src : path.join(options.src, glob);
+  var graph = grapher.parseDir(path.resolve(path.dirname(src)), { loadPaths: options.includePath });
+  var watch = [];
+
+  // Add all files to watch list
+  for (var i in graph.index) {
+    watch.push(i);
   }
 
-  dir.push(options.src);
-  dir = dir.map(function(d) {
-    var glob = options.recursive ? '**/*.{sass,scss}' : '*.{sass,scss}';
-    return isSassFile(d) ? d : path.join(d, glob);
-  });
-
-  gaze.add(dir);
+  var gaze = new Gaze();
+  gaze.add(watch);
   gaze.on('error', emitter.emit.bind(emitter, 'error'));
 
-  var graph = grapher.parseDir(options.src, { loadPaths: options.includePath });
-
   gaze.on('changed', function(file) {
     var files = [file];
     graph.visitAncestors(file, function(parent) {

test/cli.js

@@ -207,6 +207,28 @@ describe('cli', function() {
         fs.appendFileSync(src, 'body{background:white}');
       }, 500);
     });
+
+    it('should watch the full sass dep tree for a single file', function(done) {
+      var src = fixture('watching/index.scss');
+      var foo = fixture('watching/foo.scss');
+
+      fs.writeFileSync(foo, '');
+
+      var bin = spawn(cli, [
+        '--output-style', 'compressed',
+        '--watch', src
+      ]);
+
+      bin.stdout.setEncoding('utf8');
+      bin.stdout.once('data', function(data) {
+        assert(data.trim() === 'body{background:white}');
+        done();
+      });
+
+      setTimeout(function() {
+        fs.appendFileSync(foo, 'body{background:white}');
+      }, 500);
+    });
   });
 
   describe('node-sass in.scss --output out.css', function() {

test/fixtures/watching/foo.scss

+body{background:white}
\ No newline at end of file

test/fixtures/watching/index.scss

+@import './foo';