diff --git a/src/vs/platform/configuration/common/configurationModels.ts b/src/vs/platform/configuration/common/configurationModels.ts
index c6928a8ac9b..5993f0fddde 100644
--- a/src/vs/platform/configuration/common/configurationModels.ts
+++ b/src/vs/platform/configuration/common/configurationModels.ts
@@ -354,6 +354,8 @@ export class UserSettings extends Disposable {
 		super();
 		this.parser = new ConfigurationModelParser(this.userSettingsResource.toString(), this.scopes);
 		this._register(this.fileService.watch(extUri.dirname(this.userSettingsResource)));
+		// Also listen to the resource incase the resource is a symlink - https://github.com/microsoft/vscode/issues/118134
+		this._register(this.fileService.watch(this.userSettingsResource));
 		this._register(Event.filter(this.fileService.onDidFilesChange, e => e.contains(this.userSettingsResource))(() => this._onDidChange.fire()));
 	}
 
diff --git a/src/vs/workbench/services/configuration/browser/configuration.ts b/src/vs/workbench/services/configuration/browser/configuration.ts
index 0c26ef45eb8..d4ce3c91f3f 100644
--- a/src/vs/workbench/services/configuration/browser/configuration.ts
+++ b/src/vs/workbench/services/configuration/browser/configuration.ts
@@ -96,7 +96,12 @@ class FileServiceBasedConfiguration extends Disposable {
 	) {
 		super();
 		this.allResources = [this.settingsResource, ...this.standAloneConfigurationResources.map(([, resource]) => resource)];
-		this._register(combinedDisposable(...this.allResources.map(resource => this.fileService.watch(uriIdentityService.extUri.dirname(resource)))));
+		this._register(combinedDisposable(...this.allResources.map(resource => combinedDisposable(
+			this.fileService.watch(uriIdentityService.extUri.dirname(resource)),
+			// Also listen to the resource incase the resource is a symlink - https://github.com/microsoft/vscode/issues/118134
+			this.fileService.watch(resource)
+		))));
+
 		this._folderSettingsModelParser = new ConfigurationModelParser(name, this.scopes);
 		this._standAloneConfigurations = [];
 		this._cache = new ConfigurationModel();
diff --git a/src/vs/workbench/services/keybinding/browser/keybindingService.ts b/src/vs/workbench/services/keybinding/browser/keybindingService.ts
index 4bb3a427e73..728be660d35 100644
--- a/src/vs/workbench/services/keybinding/browser/keybindingService.ts
+++ b/src/vs/workbench/services/keybinding/browser/keybindingService.ts
@@ -677,6 +677,8 @@ class UserKeybindings extends Disposable {
 		super();
 
 		this._register(fileService.watch(dirname(keybindingsResource)));
+		// Also listen to the resource incase the resource is a symlink - https://github.com/microsoft/vscode/issues/118134
+		this._register(this.fileService.watch(this.keybindingsResource));
 		this.reloadConfigurationScheduler = this._register(new RunOnceScheduler(() => this.reload().then(changed => {
 			if (changed) {
 				this._onDidChange.fire();