diff --git a/crates/project_panel/src/project_panel.rs b/crates/project_panel/src/project_panel.rs
index 429b4726f9f936..6e0aeb870cc08f 100644
--- a/crates/project_panel/src/project_panel.rs
+++ b/crates/project_panel/src/project_panel.rs
@@ -1,6 +1,6 @@
 mod project_panel_settings;
 use client::{ErrorCode, ErrorExt};
-use settings::Settings;
+use settings::{Settings, SettingsStore};
 
 use db::kvp::KEY_VALUE_STORE;
 use editor::{actions::Cancel, items::entry_git_aware_label_color, scroll::Autoscroll, Editor};
@@ -239,6 +239,16 @@ impl ProjectPanel {
             })
             .detach();
 
+            let mut project_panel_settings = *ProjectPanelSettings::get_global(cx);
+            cx.observe_global::<SettingsStore>(move |_, cx| {
+                let new_settings = *ProjectPanelSettings::get_global(cx);
+                if project_panel_settings != new_settings {
+                    project_panel_settings = new_settings;
+                    cx.notify();
+                }
+            })
+            .detach();
+
             let mut this = Self {
                 project: project.clone(),
                 fs: workspace.app_state().fs.clone(),
diff --git a/crates/project_panel/src/project_panel_settings.rs b/crates/project_panel/src/project_panel_settings.rs
index f7c79264b1e8a1..500f33be411c67 100644
--- a/crates/project_panel/src/project_panel_settings.rs
+++ b/crates/project_panel/src/project_panel_settings.rs
@@ -4,14 +4,14 @@ use schemars::JsonSchema;
 use serde_derive::{Deserialize, Serialize};
 use settings::{Settings, SettingsSources};
 
-#[derive(Clone, Debug, Serialize, Deserialize, JsonSchema, Copy)]
+#[derive(Clone, Debug, Serialize, Deserialize, JsonSchema, Copy, PartialEq)]
 #[serde(rename_all = "snake_case")]
 pub enum ProjectPanelDockPosition {
     Left,
     Right,
 }
 
-#[derive(Deserialize, Debug, Clone, Copy)]
+#[derive(Deserialize, Debug, Clone, Copy, PartialEq)]
 pub struct ProjectPanelSettings {
     pub default_width: Pixels,
     pub dock: ProjectPanelDockPosition,