diff --git a/.github/workflows/ci.yml b/.github/workflows/ci.yml
index 038c9caf..a8a62686 100644
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -15,7 +15,7 @@ jobs:
       fail-fast: false
       matrix:
         os: [ubuntu, macos, windows]
-        rust-version: [stable, '1.63.0']
+        rust-version: [stable, '1.72']
         python-version:
           - '3.8'
           - '3.9'
@@ -27,9 +27,9 @@ jobs:
           - 'pypy3.9'
           - 'pypy3.10'
         exclude:
-          - rust-version: '1.63.0'
+          - rust-version: '1.72'
             os: macos
-          - rust-version: '1.63.0'
+          - rust-version: '1.72'
             os: windows
 
     runs-on: ${{ matrix.os }}-latest
diff --git a/Cargo.lock b/Cargo.lock
index 93921cbc..f4ab6199 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -16,9 +16,9 @@ checksum = "bef38d45163c2f1dde094a7dfd33ccf595c92905c8f8f4fdc18d06fb1037718a"
 
 [[package]]
 name = "bitflags"
-version = "2.5.0"
+version = "2.6.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "cf4b9d6a944f767f8e5e0db018570623c85f3d925ac718db4e06d0187adb21c1"
+checksum = "b048fb63fd8b5923fc5aa7b340d8e156aec7ec02f0c78fa8a6ddc2613f6f71de"
 
 [[package]]
 name = "cc"
@@ -49,14 +49,14 @@ checksum = "248e3bacc7dc6baa3b21e405ee045c3047101a49145e7e9eca583ab4c2ca5345"
 
 [[package]]
 name = "filetime"
-version = "0.2.23"
+version = "0.2.24"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "1ee447700ac8aa0b2f2bd7bc4462ad686ba06baa6727ac149a2d6277f0d240fd"
+checksum = "bf401df4a4e3872c4fe8151134cf483738e74b67fc934d6532c882b3d24a4550"
 dependencies = [
  "cfg-if",
  "libc",
- "redox_syscall",
- "windows-sys 0.52.0",
+ "libredox",
+ "windows-sys 0.59.0",
 ]
 
 [[package]]
@@ -82,9 +82,9 @@ checksum = "b248f5224d1d606005e02c97f5aa4e88eeb230488bcc03bc9ca4d7991399f2b5"
 
 [[package]]
 name = "inotify"
-version = "0.9.6"
+version = "0.10.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "f8069d3ec154eb856955c1c0fbffefbf5f3c40a104ec912d4797314c1801abff"
+checksum = "fdd168d97690d0b8c412d6b6c10360277f4d7ee495c5d0d5d5fe0854923255cc"
 dependencies = [
  "bitflags 1.3.2",
  "inotify-sys",
@@ -100,6 +100,15 @@ dependencies = [
  "libc",
 ]
 
+[[package]]
+name = "instant"
+version = "0.1.13"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "e0242819d153cba4b4b05a5a8f2a7e9bbf97b6055b2a002b395c96b5ff3c0222"
+dependencies = [
+ "cfg-if",
+]
+
 [[package]]
 name = "kqueue"
 version = "1.0.8"
@@ -126,11 +135,22 @@ version = "0.2.154"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "ae743338b92ff9146ce83992f766a31066a91a8c84a45e0e9f21e7cf6de6d346"
 
+[[package]]
+name = "libredox"
+version = "0.1.3"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "c0ff37bd590ca25063e35af745c343cb7a0271906fb7b37e4813e8f79f00268d"
+dependencies = [
+ "bitflags 2.6.0",
+ "libc",
+ "redox_syscall",
+]
+
 [[package]]
 name = "log"
-version = "0.4.21"
+version = "0.4.22"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "90ed8c1e510134f979dbc4f070f87d4313098b704861a105fe34231c70a3901c"
+checksum = "a7a70ba024b9dc04c27ea2f0c0548feb474ec5c54bba33a7f72f873a39d07b24"
 
 [[package]]
 name = "memoffset"
@@ -156,11 +176,9 @@ dependencies = [
 [[package]]
 name = "notify"
 version = "6.1.1"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "6205bd8bb1e454ad2e27422015fb5e4f2bcc7e08fa8f27058670d208324a4d2d"
+source = "git+https://github.com/samuelcolvin/notify.git?branch=keep-io-error#0f87ab12707d231fa44180454d59478d3992eb59"
 dependencies = [
- "bitflags 2.5.0",
- "crossbeam-channel",
+ "bitflags 2.6.0",
  "filetime",
  "fsevent-sys",
  "inotify",
@@ -168,8 +186,17 @@ dependencies = [
  "libc",
  "log",
  "mio",
+ "notify-types",
  "walkdir",
- "windows-sys 0.48.0",
+ "windows-sys 0.52.0",
+]
+
+[[package]]
+name = "notify-types"
+version = "1.0.0"
+source = "git+https://github.com/samuelcolvin/notify.git?branch=keep-io-error#0f87ab12707d231fa44180454d59478d3992eb59"
+dependencies = [
+ "instant",
 ]
 
 [[package]]
@@ -277,11 +304,11 @@ dependencies = [
 
 [[package]]
 name = "redox_syscall"
-version = "0.4.1"
+version = "0.5.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "4722d768eff46b75989dd134e5c353f0d6296e5aaa3132e776cbdb56be7731aa"
+checksum = "2a908a6e00f1fdd0dfd9c0eb08ce85126f6d8bbda50017e74bc4a4b7d4a926a4"
 dependencies = [
- "bitflags 1.3.2",
+ "bitflags 2.6.0",
 ]
 
 [[package]]
@@ -349,11 +376,11 @@ dependencies = [
 
 [[package]]
 name = "winapi-util"
-version = "0.1.8"
+version = "0.1.9"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "4d4cc384e1e73b93bafa6fb4f1df8c41695c8a91cf9c4c64358067d15a7b6c6b"
+checksum = "cf221c93e13a30d793f7645a0e7762c55d169dbb0a49671918a2319d289b10bb"
 dependencies = [
- "windows-sys 0.52.0",
+ "windows-sys 0.59.0",
 ]
 
 [[package]]
@@ -371,7 +398,16 @@ version = "0.52.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "282be5f36a8ce781fad8c8ae18fa3f9beff57ec1b52cb3de0789201425d9a33d"
 dependencies = [
- "windows-targets 0.52.5",
+ "windows-targets 0.52.6",
+]
+
+[[package]]
+name = "windows-sys"
+version = "0.59.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "1e38bc4d79ed67fd075bcc251a1c39b32a1776bbe92e5bef1f0bf1f8c531853b"
+dependencies = [
+ "windows-targets 0.52.6",
 ]
 
 [[package]]
@@ -391,18 +427,18 @@ dependencies = [
 
 [[package]]
 name = "windows-targets"
-version = "0.52.5"
+version = "0.52.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "6f0713a46559409d202e70e28227288446bf7841d3211583a4b53e3f6d96e7eb"
+checksum = "9b724f72796e036ab90c1021d4780d4d3d648aca59e491e6b98e725b84e99973"
 dependencies = [
- "windows_aarch64_gnullvm 0.52.5",
- "windows_aarch64_msvc 0.52.5",
- "windows_i686_gnu 0.52.5",
+ "windows_aarch64_gnullvm 0.52.6",
+ "windows_aarch64_msvc 0.52.6",
+ "windows_i686_gnu 0.52.6",
  "windows_i686_gnullvm",
- "windows_i686_msvc 0.52.5",
- "windows_x86_64_gnu 0.52.5",
- "windows_x86_64_gnullvm 0.52.5",
- "windows_x86_64_msvc 0.52.5",
+ "windows_i686_msvc 0.52.6",
+ "windows_x86_64_gnu 0.52.6",
+ "windows_x86_64_gnullvm 0.52.6",
+ "windows_x86_64_msvc 0.52.6",
 ]
 
 [[package]]
@@ -413,9 +449,9 @@ checksum = "2b38e32f0abccf9987a4e3079dfb67dcd799fb61361e53e2882c3cbaf0d905d8"
 
 [[package]]
 name = "windows_aarch64_gnullvm"
-version = "0.52.5"
+version = "0.52.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "7088eed71e8b8dda258ecc8bac5fb1153c5cffaf2578fc8ff5d61e23578d3263"
+checksum = "32a4622180e7a0ec044bb555404c800bc9fd9ec262ec147edd5989ccd0c02cd3"
 
 [[package]]
 name = "windows_aarch64_msvc"
@@ -425,9 +461,9 @@ checksum = "dc35310971f3b2dbbf3f0690a219f40e2d9afcf64f9ab7cc1be722937c26b4bc"
 
 [[package]]
 name = "windows_aarch64_msvc"
-version = "0.52.5"
+version = "0.52.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "9985fd1504e250c615ca5f281c3f7a6da76213ebd5ccc9561496568a2752afb6"
+checksum = "09ec2a7bb152e2252b53fa7803150007879548bc709c039df7627cabbd05d469"
 
 [[package]]
 name = "windows_i686_gnu"
@@ -437,15 +473,15 @@ checksum = "a75915e7def60c94dcef72200b9a8e58e5091744960da64ec734a6c6e9b3743e"
 
 [[package]]
 name = "windows_i686_gnu"
-version = "0.52.5"
+version = "0.52.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "88ba073cf16d5372720ec942a8ccbf61626074c6d4dd2e745299726ce8b89670"
+checksum = "8e9b5ad5ab802e97eb8e295ac6720e509ee4c243f69d781394014ebfe8bbfa0b"
 
 [[package]]
 name = "windows_i686_gnullvm"
-version = "0.52.5"
+version = "0.52.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "87f4261229030a858f36b459e748ae97545d6f1ec60e5e0d6a3d32e0dc232ee9"
+checksum = "0eee52d38c090b3caa76c563b86c3a4bd71ef1a819287c19d586d7334ae8ed66"
 
 [[package]]
 name = "windows_i686_msvc"
@@ -455,9 +491,9 @@ checksum = "8f55c233f70c4b27f66c523580f78f1004e8b5a8b659e05a4eb49d4166cca406"
 
 [[package]]
 name = "windows_i686_msvc"
-version = "0.52.5"
+version = "0.52.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "db3c2bf3d13d5b658be73463284eaf12830ac9a26a90c717b7f771dfe97487bf"
+checksum = "240948bc05c5e7c6dabba28bf89d89ffce3e303022809e73deaefe4f6ec56c66"
 
 [[package]]
 name = "windows_x86_64_gnu"
@@ -467,9 +503,9 @@ checksum = "53d40abd2583d23e4718fddf1ebec84dbff8381c07cae67ff7768bbf19c6718e"
 
 [[package]]
 name = "windows_x86_64_gnu"
-version = "0.52.5"
+version = "0.52.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "4e4246f76bdeff09eb48875a0fd3e2af6aada79d409d33011886d3e1581517d9"
+checksum = "147a5c80aabfbf0c7d901cb5895d1de30ef2907eb21fbbab29ca94c5b08b1a78"
 
 [[package]]
 name = "windows_x86_64_gnullvm"
@@ -479,9 +515,9 @@ checksum = "0b7b52767868a23d5bab768e390dc5f5c55825b6d30b86c844ff2dc7414044cc"
 
 [[package]]
 name = "windows_x86_64_gnullvm"
-version = "0.52.5"
+version = "0.52.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "852298e482cd67c356ddd9570386e2862b5673c85bd5f88df9ab6802b334c596"
+checksum = "24d5b23dc417412679681396f2b49f3de8c1473deb516bd34410872eff51ed0d"
 
 [[package]]
 name = "windows_x86_64_msvc"
@@ -491,6 +527,6 @@ checksum = "ed94fce61571a4006852b7389a063ab983c02eb1bb37b47f8272ce92d06d9538"
 
 [[package]]
 name = "windows_x86_64_msvc"
-version = "0.52.5"
+version = "0.52.6"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "bec47e5bfd1bff0eeaf6d8b485cc1074891a197ab4225d504cb7a1ab88b02bf0"
+checksum = "589f6da84c646204747d1270a2a5661ea66ed1cced2631d546fdfb155959f9ec"
diff --git a/Cargo.toml b/Cargo.toml
index e4cf78a5..cfcbe1d0 100644
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -25,7 +25,7 @@ rust-version = "1.63"
 
 [dependencies]
 crossbeam-channel = "0.5.12"
-notify = "6.1.1"
+notify = {git = "https://github.com/samuelcolvin/notify.git", branch = "keep-io-error"}
 pyo3 = { version = "0.22.2", features = ["extension-module", "generate-import-lib"] }
 
 [lib]
diff --git a/src/lib.rs b/src/lib.rs
index c94517fc..20b33486 100644
--- a/src/lib.rs
+++ b/src/lib.rs
@@ -181,6 +181,21 @@ impl RustNotify {
                 }
             }
             Err(e) => {
+                if debug {
+                    eprintln!("raw-error={:?} error.kind={:?} error.paths={:?}", e, e.kind, e.paths);
+                }
+                // see https://github.com/samuelcolvin/watchfiles/issues/282
+                // if we have IO errors from files not found, we return "file deleted", rather than the error
+                if let NotifyErrorKind::Io(io_error) = &e.kind {
+                    if io_error.kind() == IOErrorKind::NotFound {
+                        changes_clone.lock().unwrap().extend(
+                            e.paths
+                                .iter()
+                                .map(|p| (CHANGE_DELETED, p.to_string_lossy().to_string())),
+                        );
+                        return;
+                    }
+                }
                 *error_clone.lock().unwrap() = Some(format!("error in underlying watcher: {}", e));
             }
         };
diff --git a/tests/test_rust_notify.py b/tests/test_rust_notify.py
index 1e4a6683..46861e2a 100644
--- a/tests/test_rust_notify.py
+++ b/tests/test_rust_notify.py
@@ -161,7 +161,7 @@ def test_does_not_exist(tmp_path: Path):
 @skip_unless_linux
 def test_does_not_exist_message(tmp_path: Path):
     p = tmp_path / 'missing'
-    with pytest.raises(FileNotFoundError, match='No such file or directory'):
+    with pytest.raises(FileNotFoundError, match='(No such file or directory|No path was found.)'):
         RustNotify([str(p)], False, False, 0, True, False)
 
 
diff --git a/watchfiles/main.py b/watchfiles/main.py
index 2fb9ef87..59e507b7 100644
--- a/watchfiles/main.py
+++ b/watchfiles/main.py
@@ -57,7 +57,7 @@ def watch(
     stop_event: Optional['AbstractEvent'] = None,
     rust_timeout: int = 5_000,
     yield_on_timeout: bool = False,
-    debug: bool = False,
+    debug: Optional[bool] = None,
     raise_interrupt: bool = True,
     force_polling: Optional[bool] = None,
     poll_delay_ms: int = 300,
@@ -93,7 +93,8 @@ def watch(
             this can be anything with an `is_set()` method which returns a bool, e.g. `threading.Event()`.
         rust_timeout: maximum time in milliseconds to wait in the rust code for changes, `0` means no timeout.
         yield_on_timeout: if `True`, the generator will yield upon timeout in rust even if no changes are detected.
-        debug: whether to print information about all filesystem changes in rust to stdout.
+        debug: whether to print information about all filesystem changes in rust to stdout, if `None` will use the
+            `WATCHFILES_DEBUG` environment variable.
         raise_interrupt: whether to re-raise `KeyboardInterrupt`s, or suppress the error and just stop iterating.
         force_polling: See [Force polling](#force-polling) above.
         poll_delay_ms: delay between polling for changes, only used if `force_polling=True`.
@@ -114,6 +115,7 @@ def watch(
     """
     force_polling = _default_force_polling(force_polling)
     ignore_permission_denied = _default_ignore_permission_denied(ignore_permission_denied)
+    debug = _default_debug(debug)
     with RustNotify(
         [str(p) for p in paths], debug, force_polling, poll_delay_ms, recursive, ignore_permission_denied
     ) as watcher:
@@ -149,7 +151,7 @@ async def awatch(  # C901
     stop_event: Optional['AnyEvent'] = None,
     rust_timeout: Optional[int] = None,
     yield_on_timeout: bool = False,
-    debug: bool = False,
+    debug: Optional[bool] = None,
     raise_interrupt: Optional[bool] = None,
     force_polling: Optional[bool] = None,
     poll_delay_ms: int = 300,
@@ -241,6 +243,7 @@ async def stop_soon():
 
     force_polling = _default_force_polling(force_polling)
     ignore_permission_denied = _default_ignore_permission_denied(ignore_permission_denied)
+    debug = _default_debug(debug)
     with RustNotify(
         [str(p) for p in paths], debug, force_polling, poll_delay_ms, recursive, ignore_permission_denied
     ) as watcher:
@@ -324,6 +327,13 @@ def _default_force_polling(force_polling: Optional[bool]) -> bool:
         return _auto_force_polling()
 
 
+def _default_debug(debug: Optional[bool]) -> bool:
+    if debug is not None:
+        return debug
+    env_var = os.getenv('WATCHFILES_DEBUG')
+    return bool(env_var)
+
+
 def _auto_force_polling() -> bool:
     """
     Whether to auto-enable force polling, it should be enabled automatically only on WSL.
diff --git a/watchfiles/run.py b/watchfiles/run.py
index 5a6c8009..cd403589 100644
--- a/watchfiles/run.py
+++ b/watchfiles/run.py
@@ -37,7 +37,7 @@ def run_process(
     grace_period: float = 0,
     debounce: int = 1_600,
     step: int = 50,
-    debug: bool = False,
+    debug: Optional[bool] = None,
     sigint_timeout: int = 5,
     sigkill_timeout: int = 1,
     recursive: bool = True,
@@ -165,7 +165,7 @@ async def arun_process(
     grace_period: float = 0,
     debounce: int = 1_600,
     step: int = 50,
-    debug: bool = False,
+    debug: Optional[bool] = None,
     recursive: bool = True,
     ignore_permission_denied: bool = False,
 ) -> int: