diff --git a/singer/src/main/java/com/pinterest/singer/monitor/LogStreamManager.java b/singer/src/main/java/com/pinterest/singer/monitor/LogStreamManager.java
index a538969d..0ae7c961 100644
--- a/singer/src/main/java/com/pinterest/singer/monitor/LogStreamManager.java
+++ b/singer/src/main/java/com/pinterest/singer/monitor/LogStreamManager.java
@@ -292,8 +292,18 @@ private void initializeLogStreamsInternal(String podUid, SingerLog singerLog) th
         String regexStr = singerLogConfig.getLogStreamRegex();
         LOG.info("Attempting to match files under {} with filter {}", logDirPath.toFile().getAbsolutePath(), regexStr);
         // @variable files contains files for a list of log streams. Each file represents one stream
-        FileFilter fileFilter = new RegexFileFilter(regexStr);
-        File[] files = dir.listFiles(fileFilter);
+        FileFilter regexFileFilter = new RegexFileFilter(regexStr);;
+
+        // Add another filter on top of the regex filter to exclude watermark files
+        FileFilter excludeDotFilesFilter = file -> {
+          // Exclude files that start with a dot (mostly want to ignore watermark files)
+          if (file.getName().startsWith(".")) {
+            return false;
+          }
+          // Apply the regex filter
+          return regexFileFilter.accept(file);
+        };
+        File[] files = dir.listFiles(excludeDotFilesFilter);
 
         LOG.info(files.length + " files matches the regex " + regexStr);
         if (singerLogConfig.getFilenameMatchMode() == FileNameMatchMode.EXACT) {
diff --git a/singer/src/test/java/com/pinterest/singer/monitor/FileSystemMonitorTest.java b/singer/src/test/java/com/pinterest/singer/monitor/FileSystemMonitorTest.java
index e120f0f2..c860ebce 100644
--- a/singer/src/test/java/com/pinterest/singer/monitor/FileSystemMonitorTest.java
+++ b/singer/src/test/java/com/pinterest/singer/monitor/FileSystemMonitorTest.java
@@ -20,6 +20,7 @@
 import com.pinterest.singer.common.SingerSettings;
 import com.pinterest.singer.thrift.LogFile;
 import com.pinterest.singer.thrift.LogFileAndPath;
+import com.pinterest.singer.thrift.configuration.FileNameMatchMode;
 import com.pinterest.singer.thrift.configuration.SingerConfig;
 import com.pinterest.singer.thrift.configuration.SingerLogConfig;
 import com.pinterest.singer.utils.SingerUtils;
@@ -31,6 +32,7 @@
 
 import java.io.File;
 import java.util.Arrays;
+import java.util.Collections;
 import java.util.HashSet;
 import java.util.List;
 import java.util.Set;
@@ -361,5 +363,41 @@ public void testLogFileRotation() throws Exception {
     Thread.sleep(FILE_EVENT_WAIT_TIME_MS);
     toMonitor.logStatus();
     assertTrue(toMonitor.checkConsistency());
-  } 
+  }
+
+  @Test
+  public void testExcludeWatermarkFilesFromDiscovery() throws Exception {
+    final File testDir = this.tempDir.newFolder();
+    final String LOG_FILE_PREFIX = "test_001.tmp";
+    final String LOGSTREAM_REGEX = ".*test.*";
+
+    int NUM_FILES = 10;
+    File[] created = createTestLogStreamFiles(testDir, LOG_FILE_PREFIX, NUM_FILES);
+    List<File> createdHiddenFiles = new ArrayList<>();
+    String[] createdFiles = new String[NUM_FILES];
+    for (int i = 0; i < NUM_FILES; i++) {
+      createdFiles[i] = created[i].getName();
+      // Create a dot file to simulate a watermark file for each log file
+      File file = new File(testDir + "/." + createdFiles[i]);
+      file.createNewFile();
+      createdHiddenFiles.add(file);
+    }
+
+    SingerConfig singerConfig = new SingerConfig();
+    SingerLogConfig logStreamConfig = new SingerLogConfig();
+    logStreamConfig.setName("test_logstream");
+    logStreamConfig.setLogDir(testDir.getAbsolutePath());
+    logStreamConfig.setFilenameMatchMode(FileNameMatchMode.EXACT);
+    logStreamConfig.setLogStreamRegex(LOGSTREAM_REGEX);
+    singerConfig.setLogConfigs(Collections.singletonList(logStreamConfig));
+
+    SingerSettings.setSingerConfig(singerConfig);
+    SingerSettings.getOrCreateFileSystemMonitor("");
+    LogStreamManager.initializeLogStreams();
+
+    for (File hiddenFile : createdHiddenFiles) {
+      assertFalse("Hidden file should not be discovered",
+          LogStreamManager.getLogStreamsFor(testDir.toPath(), hiddenFile.toPath()).size() > 0);
+    }
+  }
 }
\ No newline at end of file
diff --git a/singer/src/test/java/com/pinterest/singer/writer/S3WriterTest.java b/singer/src/test/java/com/pinterest/singer/writer/S3WriterTest.java
index af86834f..ae3f5852 100644
--- a/singer/src/test/java/com/pinterest/singer/writer/S3WriterTest.java
+++ b/singer/src/test/java/com/pinterest/singer/writer/S3WriterTest.java
@@ -81,6 +81,8 @@ public void tearDown() throws IOException {
     if (testBaseDir.exists()) {
       FileUtils.deleteDirectory(testBaseDir);
     }
+    // reset hostname
+    SingerUtils.setHostname(SingerUtils.getHostname(), "-");
   }