diff --git a/frappe/app.py b/frappe/app.py
index 794d0f18af..e7d619e92b 100644
--- a/frappe/app.py
+++ b/frappe/app.py
@@ -294,6 +294,7 @@ def serve(port=8000, profile=False, no_reload=False, no_threading=False, site=No
 	_sites_path = sites_path
 
 	from werkzeug.serving import run_simple
+	patch_werkzeug_reloader()
 
 	if profile:
 		application = ProfilerMiddleware(application, sort_by=('cumtime', 'calls'))
@@ -324,3 +325,16 @@ def serve(port=8000, profile=False, no_reload=False, no_threading=False, site=No
 		use_debugger=not in_test_env,
 		use_evalex=not in_test_env,
 		threaded=not no_threading)
+
+def patch_werkzeug_reloader():
+	from werkzeug._reloader import WatchdogReloaderLoop
+
+	trigger_reload = WatchdogReloaderLoop.trigger_reload
+
+	def custom_trigger_reload(self, filename):
+		if os.path.basename(os.path.dirname(filename)) == "__pycache__":
+			return
+
+		return trigger_reload(self, filename)
+
+	WatchdogReloaderLoop.trigger_reload = custom_trigger_reload