diff --git a/org.eclipse.lsp4e/META-INF/MANIFEST.MF b/org.eclipse.lsp4e/META-INF/MANIFEST.MF
index 2c083a7b5..722e35ebc 100644
--- a/org.eclipse.lsp4e/META-INF/MANIFEST.MF
+++ b/org.eclipse.lsp4e/META-INF/MANIFEST.MF
@@ -2,7 +2,7 @@ Manifest-Version: 1.0
 Bundle-ManifestVersion: 2
 Bundle-Name: Language Server Protocol client for Eclipse IDE (Incubation)
 Bundle-SymbolicName: org.eclipse.lsp4e;singleton:=true
-Bundle-Version: 0.19.11.qualifier
+Bundle-Version: 0.19.12.qualifier
 Bundle-RequiredExecutionEnvironment: JavaSE-21
 Require-Bundle: org.eclipse.core.runtime;bundle-version="3.12.0",
  org.eclipse.equinox.common;bundle-version="3.8.0",
diff --git a/org.eclipse.lsp4e/pom.xml b/org.eclipse.lsp4e/pom.xml
index 1fd3223cb..d369028eb 100644
--- a/org.eclipse.lsp4e/pom.xml
+++ b/org.eclipse.lsp4e/pom.xml
@@ -10,7 +10,7 @@
 	</parent>
 	<artifactId>org.eclipse.lsp4e</artifactId>
 	<packaging>eclipse-plugin</packaging>
-	<version>0.19.11-SNAPSHOT</version>
+	<version>0.19.12-SNAPSHOT</version>
 
 	<build>
 		<plugins>
diff --git a/org.eclipse.lsp4e/src/org/eclipse/lsp4e/internal/files/FileSystemWatcherManager.java b/org.eclipse.lsp4e/src/org/eclipse/lsp4e/internal/files/FileSystemWatcherManager.java
index 90317c11b..ff367c08c 100644
--- a/org.eclipse.lsp4e/src/org/eclipse/lsp4e/internal/files/FileSystemWatcherManager.java
+++ b/org.eclipse.lsp4e/src/org/eclipse/lsp4e/internal/files/FileSystemWatcherManager.java
@@ -13,6 +13,7 @@
 package org.eclipse.lsp4e.internal.files;
 
 import java.net.URI;
+import java.nio.file.FileSystemNotFoundException;
 import java.nio.file.Path;
 import java.nio.file.Paths;
 import java.util.ArrayList;
@@ -50,14 +51,16 @@ public final class FileSystemWatcherManager {
 
 	public FileSystemWatcherManager(final @Nullable IProject project) {
 		Path watchedFilesBasePath = null;
+		if (project != null) {
 		try {
-			if (project != null) {
-				final var loc = project.getLocationURI();
-				if (loc != null)
-					watchedFilesBasePath = Paths.get(loc);
+			final var loc = project.getLocationURI();
+			if (loc != null)
+				watchedFilesBasePath = Paths.get(loc);
+			} catch (IllegalArgumentException ex) {
+				LanguageServerPlugin.logError(ex);
+			} catch (FileSystemNotFoundException ex) {
+				LanguageServerPlugin.logWarning("Watched files notification disabled for project " + project.getName() + " because of: " + ex.getMessage()); //$NON-NLS-1$ //$NON-NLS-2$
 			}
-		} catch (IllegalArgumentException ex) {
-			LanguageServerPlugin.logError(ex);
 		}
 		this.basePath = watchedFilesBasePath;
 	}