diff --git a/compiler/src/gen_merged_abc.ts b/compiler/src/gen_merged_abc.ts
index ea1004c9a632e5aaa1e88c7f5c359106e7220494..f9b0b89f84b3a824197953ef90e20b611c2bbe0f 100644
--- a/compiler/src/gen_merged_abc.ts
+++ b/compiler/src/gen_merged_abc.ts
@@ -103,6 +103,8 @@ export function generateMergedAbc(moduleInfos: Array<ModuleInfo>, entryInfos: Ma
     }
   } catch (e) {
     logger.debug(red, `ETS:ERROR failed to generate abc with filesInfo ${filesInfoPath} `, reset);
-    process.exit(FAIL);
+    if (process.env.watchMode !== 'true') {
+      process.exit(FAIL);
+    }
   }
 }