diff --git a/CHANGELOG.md b/CHANGELOG.md
index 4bc6a9ecb..4741a24a5 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,7 @@
 
 - Cleanup Swift diagnostics when the source file is moved or deleted ([#1653](https://github.com/swiftlang/vscode-swift/pull/1653))
 - Make sure newline starts with /// when splitting doc comment ([#1651](https://github.com/swiftlang/vscode-swift/pull/1651))
+- Prevent continuous "package resolve" cycles ([#1654](https://github.com/swiftlang/vscode-swift/pull/1654))
 - Fix error when running `Reset Package Dependencies` command from the Project view ([#1661](https://github.com/swiftlang/vscode-swift/pull/1661))
 
 ## 2.6.0 - 2025-06-26
diff --git a/src/PackageWatcher.ts b/src/PackageWatcher.ts
index ab900f1de..712f8c0a9 100644
--- a/src/PackageWatcher.ts
+++ b/src/PackageWatcher.ts
@@ -30,6 +30,7 @@ import { showReloadExtensionNotification } from "./ui/ReloadExtension";
  */
 export class PackageWatcher {
     private packageFileWatcher?: vscode.FileSystemWatcher;
+    private resolvedChangedDisposable?: vscode.Disposable;
     private resolvedFileWatcher?: vscode.FileSystemWatcher;
     private workspaceStateFileWatcher?: vscode.FileSystemWatcher;
     private snippetWatcher?: vscode.FileSystemWatcher;
@@ -59,6 +60,7 @@ export class PackageWatcher {
      */
     dispose() {
         this.packageFileWatcher?.dispose();
+        this.resolvedChangedDisposable?.dispose();
         this.resolvedFileWatcher?.dispose();
         this.workspaceStateFileWatcher?.dispose();
         this.snippetWatcher?.dispose();
@@ -77,11 +79,18 @@ export class PackageWatcher {
 
     private createResolvedFileWatcher(): vscode.FileSystemWatcher {
         const watcher = vscode.workspace.createFileSystemWatcher(
-            new vscode.RelativePattern(this.folderContext.folder, "Package.resolved")
+            new vscode.RelativePattern(this.folderContext.folder, "Package.resolved"),
+            // https://github.com/swiftlang/vscode-swift/issues/1571
+            // We can ignore create because that would be seemingly from a Package.resolved
+            // and will ignore delete as we don't know the reason behind. By still listening
+            // for change
+            true,
+            false,
+            true
+        );
+        this.resolvedChangedDisposable = watcher.onDidChange(
+            async () => await this.handlePackageResolvedChange()
         );
-        watcher.onDidCreate(async () => await this.handlePackageResolvedChange());
-        watcher.onDidChange(async () => await this.handlePackageResolvedChange());
-        watcher.onDidDelete(async () => await this.handlePackageResolvedChange());
         return watcher;
     }