diff --git a/Makefile b/Makefile
index fcb3e3c78f..29e352d8ee 100644
--- a/Makefile
+++ b/Makefile
@@ -6,6 +6,7 @@ BASEROM = baserom.z64
 TARGET = papermario
 COMPARE = 1
 NON_MATCHING = 0
+WATCH_INCLUDES = 1
 
 -include settings.mk
 
@@ -57,7 +58,7 @@ CPP := cpp
 LD := $(CROSS)ld
 OBJCOPY := $(CROSS)objcopy
 
-CPPFLAGS   := -Iinclude -Isrc -D _LANGUAGE_C -ffreestanding -DF3DEX_GBI_2 -D_MIPS_SZLONG=0 -Wundef -Wcomment
+CPPFLAGS   := -Iinclude -Isrc -D _LANGUAGE_C -ffreestanding -DF3DEX_GBI_2 -D_MIPS_SZLONG=0 -Wundef -Wcomment -MM -MP
 ASFLAGS    := -EB -Iinclude -march=vr4300 -mtune=vr4300
 OLDASFLAGS := -EB -Iinclude -G 0
 CFLAGS     := -O2 -quiet -G 0 -mcpu=vr4300 -mfix4300 -mips3 -mgp32 -mfp32 -Wimplicit -Wuninitialized -Wshadow
@@ -72,6 +73,10 @@ endif
 
 include sources.mk
 
+ifeq ($(WATCH_INCLUDES),1)
+-include $(foreach $(obj), $(OBJECTS), $(BUILD_DIR)/$(obj).mk)
+endif
+
 
 ### Targets ###
 
@@ -126,12 +131,12 @@ $(BUILD_DIR)/%.Yay0.o: $(BUILD_DIR)/%.bin.Yay0
 # Compile C files
 $(BUILD_DIR)/%.c.o: %.c
 	@mkdir -p $(shell dirname $@)
-	$(CPP) $(CPPFLAGS) -o - $< | $(CC) $(CFLAGS) -o - - | $(OLD_AS) $(OLDASFLAGS) -o $@ -
+	$(CPP) $(CPPFLAGS) -MF $@.mk -MT $< -o - $< | $(CC) $(CFLAGS) -o - - | $(OLD_AS) $(OLDASFLAGS) -o $@ -
 
 # Compile C files (with DSL macros)
 $(foreach cfile, $(DSL_C_FILES), $(BUILD_DIR)/$(cfile).o): $(BUILD_DIR)/%.c.o: %.c
 	@mkdir -p $(shell dirname $@)
-	$(CPP) $(CPPFLAGS) -o - $< | tools/compile_dsl_macros.py | $(CC) $(CFLAGS) -o - - | $(OLD_AS) $(OLDASFLAGS) -o $@ -
+	$(CPP) $(CPPFLAGS) -MF $@.mk -MT $< -o - $< | tools/compile_dsl_macros.py | $(CC) $(CFLAGS) -o - - | $(OLD_AS) $(OLDASFLAGS) -o $@ -
 
 # Assemble handwritten ASM
 $(BUILD_DIR)/%.s.o: %.s
diff --git a/README.md b/README.md
index 5f375e3b78..2bdc2c9a1b 100644
--- a/README.md
+++ b/README.md
@@ -54,12 +54,6 @@ We provide [windows_terminal.bat](tools/windows_terminal.bat) to open a [Windows
 
 ### Rebuilding
 
-Setting the `PM_HEADER_REBUILD` environment variable will cause `make` to rebuild all `.c` files whenever a `.h` file is modified.
-
-```sh
-$ PM_HEADER_REBUILD=1 make
-```
-
 If you use Visual Studio Code, you can use _Run Build Task_ (Ctrl+Shift+B) to run `make`. Any errors or warnings generated by the compiler will show up in the _Problems_ tab.
 
 ### Matching a function
diff --git a/diff_settings.py b/diff_settings.py
index eb14aca999..52c1cfe713 100644
--- a/diff_settings.py
+++ b/diff_settings.py
@@ -5,4 +5,4 @@ def apply(config, args):
     config['myimg'] = 'papermario.z64'
     config['mapfile'] = 'build/papermario.map'
     config['source_directories'] = ['.']
-    config['makeflags'] = ['COMPARE=0']
+    config['makeflags'] = ['COMPARE=0', 'WATCH_INCLUDES=0']