diff --git a/package.json b/package.json
index 1a8c367c..1e2bc936 100644
--- a/package.json
+++ b/package.json
@@ -127,6 +127,12 @@
           "default": true,
           "markdownDescription": "Show a \"Run in Studio\" button to the right of Operation Signatures.",
           "scope": "window"
+        },
+        "apollographql.run.reloadServiceAfterLocalSchemaChanged": {
+          "type": "boolean",
+          "default": true,
+          "markdownDescription": "Reload service after local schema changed",
+          "scope": "window"
         }
       }
     },
diff --git a/src/extension.ts b/src/extension.ts
index 529c2ed5..4f58d191 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -159,6 +159,19 @@ export function activate(context: ExtensionContext) {
       client.sendNotification("apollographql/reloadService");
     });
 
+    client.onNotification("apollographql/localSchemaChanged", (params) => {
+      if (
+        workspace
+          .getConfiguration("apollographql")
+          .get("run.reloadServiceAfterLocalSchemaChanged")
+      ) {
+        client.outputChannel.appendLine("------------------------------");
+        client.outputChannel.appendLine(`🚀 Apollo GraphQL Reload Service`);
+        client.outputChannel.appendLine("------------------------------");
+        client.sendNotification("apollographql/reloadService");
+      }
+    });
+
     // For some reason, non-strings can only be sent in one direction. For now, messages
     // coming from the language server just need to be stringified and parsed.
     client.onNotification("apollographql/tagsLoaded", (params) => {
diff --git a/src/language-server/config/utils.ts b/src/language-server/config/utils.ts
index 6b49d31c..da1eddf5 100644
--- a/src/language-server/config/utils.ts
+++ b/src/language-server/config/utils.ts
@@ -54,3 +54,7 @@ export function parseServiceSpecifier(specifier: ServiceSpecifier) {
   const [id, tag] = specifier.split("@").map((x) => x.trim());
   return [id, tag] as ServiceIDAndTag;
 }
+
+export function getFileNameFromUri(uri: string) {
+  return uri.substring(uri.lastIndexOf("/") + 1);
+}
diff --git a/src/language-server/server.ts b/src/language-server/server.ts
index e522da4f..6e9e50ac 100644
--- a/src/language-server/server.ts
+++ b/src/language-server/server.ts
@@ -152,6 +152,13 @@ connection.onDidChangeWatchedFiles((params) => {
       workspace.reloadProjectForConfig(uri);
     }
 
+    if (workspace.localSchemaChanged(uri)) {
+      connection.sendNotification(
+        "apollographql/localSchemaChanged",
+        undefined
+      );
+    }
+
     // Don't respond to changes in files that are currently open,
     // because we'll get content change notifications instead
     if (type === FileChangeType.Changed) {
diff --git a/src/language-server/workspace.ts b/src/language-server/workspace.ts
index c0c3ee6b..218f1bdf 100644
--- a/src/language-server/workspace.ts
+++ b/src/language-server/workspace.ts
@@ -3,7 +3,7 @@ import {
   NotificationHandler,
   PublishDiagnosticsParams,
 } from "vscode-languageserver";
-import { QuickPickItem } from "vscode";
+import { QuickPickItem, workspace } from "vscode";
 import { GraphQLProject, DocumentUri } from "./project/base";
 import { dirname } from "path";
 import fg from "glob";
@@ -12,6 +12,7 @@ import {
   ApolloConfig,
   isClientConfig,
   ServiceConfig,
+  getFileNameFromUri,
 } from "./config";
 import { LanguageServerLoadingHandler } from "./loadingHandler";
 import { ServiceID, SchemaTag, ClientIdentity } from "./engine";
@@ -244,6 +245,25 @@ export class GraphQLWorkspace {
     return Array.from(this.projectsByFolderUri.values()).flat();
   }
 
+  private getLocalSchemaFileNames(): string[] {
+    const localSchemaUris: string[] = [];
+    this.projects.forEach((p) => {
+      if (p.config.service?.localSchemaFile) {
+        if (typeof p.config.service.localSchemaFile === "string") {
+          localSchemaUris.push(p.config.service.localSchemaFile);
+        } else {
+          localSchemaUris.push(...p.config.service.localSchemaFile);
+        }
+      }
+    });
+    return localSchemaUris.map((uri) => getFileNameFromUri(uri));
+  }
+
+  localSchemaChanged(uri: string): boolean {
+    const fileNames = this.getLocalSchemaFileNames();
+    return fileNames.some((fileName) => uri.endsWith(fileName)) ? true : false;
+  }
+
   projectForFile(uri: DocumentUri): GraphQLProject | undefined {
     const cachedResult = this._projectForFileCache.get(uri);
     if (cachedResult) {
diff --git a/src/languageServerClient.ts b/src/languageServerClient.ts
index b731ce3b..637d20af 100644
--- a/src/languageServerClient.ts
+++ b/src/languageServerClient.ts
@@ -54,12 +54,13 @@ export function getLanguageServerClient(
       "dart",
       "reason",
       "elixir",
+      "json",
     ],
     synchronize: {
       fileEvents: [
         workspace.createFileSystemWatcher("**/.env?(.local)"),
         workspace.createFileSystemWatcher(
-          "**/*.{graphql,js,ts,jsx,tsx,vue,svelte,py,rb,dart,re,ex,exs}"
+          "**/*.{graphql,js,ts,jsx,tsx,vue,svelte,py,rb,dart,re,ex,exs,json}"
         ),
       ],
     },
diff --git a/src/messages.ts b/src/messages.ts
index 0f57a499..fa15c6d1 100644
--- a/src/messages.ts
+++ b/src/messages.ts
@@ -47,6 +47,7 @@ type Messages = {
   "apollographql/loadingComplete": number;
   "apollographql/loading": { message: string; token: number };
   "apollographql/engineDecorations": { decorations: EngineDecoration[] };
+  "apollographql/localSchemaChanged": undefined;
   serverDebugMessage: {
     type: "info" | "warning" | "error" | "errorTelemetry";
     message: string;