diff --git a/README.md b/README.md
index 5b3b05a..210bf32 100644
--- a/README.md
+++ b/README.md
@@ -198,6 +198,12 @@ $ guard --guardfile ~/.your_global_guardfile
 $ guard -G ~/.your_global_guardfile # shortcut
 ```
 
+Guard can optionally watch moved or deleted files with:
+
+``` bash
+$ guard -D
+```
+
 An exhaustive list of options is available with:
 
 ``` bash
diff --git a/lib/guard/listener.rb b/lib/guard/listener.rb
index b099770..84c49b2 100644
--- a/lib/guard/listener.rb
+++ b/lib/guard/listener.rb
@@ -30,14 +30,13 @@ module Guard
       @sha1_checksums_hash = {}
       @file_timestamp_hash = {}
       @relativize_paths    = options.fetch(:relativize_paths, true)
-      @watch_deletions = options.fetch(:deletions, false)
+      @watch_deletions     = options.fetch(:deletions, false)
       update_last_event
     end
 
     def start
       watch(@directory)
-      # populate initial sha1 hash to watch for deleted or moved files
-      all_files.each {|path| set_file_timestamp_hash(path, file_timestamp(path)) } if @watch_deletions
+      timestamp_files
     end
 
     def stop
@@ -93,6 +92,11 @@ module Guard
       !!@relativize_paths
     end
 
+    def timestamp_files
+      # populate initial timestamp file hash to watch for deleted or moved files
+      all_files.each {|path| set_file_timestamp_hash(path, file_timestamp(path)) } if @watch_deletions
+    end
+
   private
 
     def potentially_modified_files(dirs, options={})
@@ -123,11 +127,11 @@ module Guard
         set_sha1_checksums_hash(path, sha1_checksum(path))
         true
       elsif @watch_deletions
-          ts = file_timestamp(path)
-          if ts != @file_timestamp_hash[path]
-            set_file_timestamp_hash(path, ts)
-            true
-          end
+        ts = file_timestamp(path)
+        if ts != @file_timestamp_hash[path]
+          set_file_timestamp_hash(path, ts)
+          true
+        end
       end
     rescue
       false
diff --git a/spec/guard/listener_spec.rb b/spec/guard/listener_spec.rb
index e9ae26b..55db0f6 100644
--- a/spec/guard/listener_spec.rb
+++ b/spec/guard/listener_spec.rb
@@ -81,6 +81,8 @@ describe Guard::Listener do
     let(:file1) { @fixture_path.join("folder1", "file1.txt") }
     let(:file2) { @fixture_path.join("folder1", "folder2", "file2.txt") }
     let(:file3) { @fixture_path.join("folder1", "deletedfile1.txt") }
+    let(:file4) { @fixture_path.join("folder1", "movedfile1.txt") }
+    let(:destfile) { @fixture_path.join("folder1", "folder2","movedfile1.txt") }
 
     before do
       subject.update_last_event
@@ -102,7 +104,7 @@ describe Guard::Listener do
     end
 
     context "without updating the content" do
-      it "ignores the files for the second time" do
+      it "ignores the}fil)s for the second time" do
         FileUtils.touch([file1, file2, file3])
         subject.modified_files([@fixture_path.join("folder1")], {}).should =~ ["spec/fixtures/folder1/deletedfile1.txt", "spec/fixtures/folder1/file1.txt"]
         subject.update_last_event
@@ -125,6 +127,87 @@ describe Guard::Listener do
         sleep 1
       end
     end
+
+    context "without watch_deletions" do
+        
+        after { FileUtils.touch(file3) }
+
+        it "defaults to false" do
+            subject.instance_variable_get(:@watch_deletions).should eql false
+        end
+
+        it "it should not track deleted files" do
+            FileUtils.touch([file1, file2, file3])
+            subject.modified_files([@fixture_path.join("folder1")], {}).should =~ ["spec/fixtures/folder1/deletedfile1.txt", "spec/fixtures/folder1/file1.txt"]
+            subject.update_last_event
+            FileUtils.rm(file3)
+            subject.modified_files([@fixture_path.join("folder1")], {}).should =~ []
+            sleep 1
+        end
+    end
+
+    context "with watch_deletions" do
+        subject { described_class.new(Dir.pwd, :deletions=>true) }
+        
+        before :each do
+            subject.timestamp_files
+            sleep 1
+            subject.update_last_event
+        end
+
+        after :each do
+            FileUtils.touch([file1, file2, file3, file4])
+            FileUtils.rm_f([destfile])
+        end
+
+        it "should be true when set" do
+            subject.instance_variable_get(:@watch_deletions).should eql true
+        end
+
+        it "should track deleted files" do
+            FileUtils.touch([file1, file3])
+            subject.modified_files([@fixture_path.join("folder1")], {}).should =~ 
+                ["spec/fixtures/folder1/deletedfile1.txt", "spec/fixtures/folder1/file1.txt"]
+
+            subject.update_last_event
+            FileUtils.remove_file(file3)
+            subject.modified_files([@fixture_path.join("folder1")], {}).should =~ 
+                ["!spec/fixtures/folder1/deletedfile1.txt"]
+        end
+
+        it "should track moved files" do
+            FileUtils.touch([file1, file3])
+            subject.modified_files([@fixture_path.join("folder1")], {}).should =~ 
+                ["spec/fixtures/folder1/deletedfile1.txt", "spec/fixtures/folder1/file1.txt"]
+
+            subject.update_last_event
+            FileUtils.move(file4, destfile)
+            subject.modified_files([@fixture_path.join("folder1")], {}).should =~ 
+                ["!spec/fixtures/folder1/movedfile1.txt"]
+        end
+
+        it "should track deleted files with all option" do
+            FileUtils.touch([file1, file2])
+            subject.modified_files([@fixture_path.join("folder1")], {:all=>true}).should =~ 
+                ["spec/fixtures/folder1/file1.txt", "spec/fixtures/folder1/folder2/file2.txt"]
+
+            subject.update_last_event
+            FileUtils.remove_file(file2)
+            subject.modified_files([@fixture_path.join("folder1")], {:all=>true}).should =~ 
+                ["!spec/fixtures/folder1/folder2/file2.txt"]
+        end
+
+        it "should track moved files with all option" do
+            FileUtils.touch([file1, file2])
+            subject.modified_files([@fixture_path.join("folder1")], {:all=>true}).should =~ 
+                ["spec/fixtures/folder1/file1.txt", "spec/fixtures/folder1/folder2/file2.txt"]
+
+            subject.update_last_event
+            FileUtils.move(file4, destfile)
+            subject.modified_files([@fixture_path.join("folder1")], {:all=>true}).should =~ 
+                ["!spec/fixtures/folder1/movedfile1.txt","spec/fixtures/folder1/folder2/movedfile1.txt"]
+        end
+    end
   end
 
   describe "working directory" do
@@ -160,5 +243,4 @@ describe Guard::Listener do
     end
 
   end
-
 end