diff --git a/packages/app/cypress/e2e/studio/studio-cloud.cy.ts b/packages/app/cypress/e2e/studio/studio-cloud.cy.ts
index e0a104e391a7..5018976290cf 100644
--- a/packages/app/cypress/e2e/studio/studio-cloud.cy.ts
+++ b/packages/app/cypress/e2e/studio/studio-cloud.cy.ts
@@ -205,4 +205,26 @@ describe('Studio Cloud', () => {
     // Verify that the AI output is correct
     cy.get('[data-cy="recommendation-editor"]').should('contain', aiOutput)
   })
+
+  it('does not exit studio mode if the spec is changed on the file system', () => {
+    launchStudio({ enableCloudStudio: true })
+
+    cy.findByTestId('studio-panel').should('be.visible')
+
+    // update the spec on the file system to force a rerun through watched:file:changed
+    cy.withCtx(async (ctx) => {
+      await ctx.actions.file.writeFileInProject('cypress/e2e/spec.cy.js', `
+describe('studio functionality', () => {
+  it('visits a basic html page', () => {
+    // new comment
+    cy.visit('cypress/e2e/index.html')
+  })
+})`)
+    })
+
+    cy.waitForSpecToFinish()
+
+    // verify studio is still open
+    cy.findByTestId('studio-panel').should('be.visible')
+  })
 })
diff --git a/packages/app/src/runner/event-manager.ts b/packages/app/src/runner/event-manager.ts
index b5c3326924c6..109f9f4aae19 100644
--- a/packages/app/src/runner/event-manager.ts
+++ b/packages/app/src/runner/event-manager.ts
@@ -43,7 +43,6 @@ interface AddGlobalListenerOptions {
 const driverToLocalAndReporterEvents = 'run:start run:end'.split(' ')
 const driverToSocketEvents = 'backend:request automation:request mocha recorder:frame dev-server:on-spec-update'.split(' ')
 const driverToLocalEvents = 'viewport:changed config stop url:changed page:loading visit:failed visit:blank cypress:in:cypress:runner:event'.split(' ')
-const socketRerunEvents = 'runner:restart watched:file:changed'.split(' ')
 const socketToDriverEvents = 'net:stubbing:event request:event script:error cross:origin:cookies dev-server:on-spec-updated'.split(' ')
 const localToReporterEvents = 'reporter:log:add reporter:log:state:changed reporter:log:remove'.split(' ')
 
@@ -158,7 +157,11 @@ export class EventManager {
     })
 
     this.ws.on('watched:file:changed', () => {
-      this.studioStore.cancel()
+      // only cancel studio if cloud studio was not requested
+      if (!Cypress.env('LOCAL_STUDIO_PATH') && !Cypress.env('ENABLE_CLOUD_STUDIO')) {
+        this.studioStore.cancel()
+      }
+
       rerun()
     })
 
@@ -168,9 +171,7 @@ export class EventManager {
       }
     })
 
-    socketRerunEvents.forEach((event) => {
-      this.ws.on(event, rerun)
-    })
+    this.ws.on('runner:restart', rerun)
 
     socketToDriverEvents.forEach((event) => {
       this.ws.on(event, (...args) => {