diff --git a/tools/xenstore/xenstored_core.c b/tools/xenstore/xenstored_core.c
index 1cb729a2cd..d7c025616e 100644
--- a/tools/xenstore/xenstored_core.c
+++ b/tools/xenstore/xenstored_core.c
@@ -1118,8 +1118,8 @@ static void delete_child(struct connection *conn,
 	corrupt(conn, "Can't find child '%s' in %s", childname, node->name);
 }
 
-static int delete_node(struct connection *conn, struct node *parent,
-		       struct node *node)
+static int delete_node(struct connection *conn, const void *ctx,
+		       struct node *parent, struct node *node)
 {
 	char *name;
 
@@ -1131,7 +1131,7 @@ static int delete_node(struct connection *conn, struct node *parent,
 				       node->children);
 		child = name ? read_node(conn, node, name) : NULL;
 		if (child) {
-			if (delete_node(conn, node, child))
+			if (delete_node(conn, ctx, node, child))
 				return errno;
 		} else {
 			trace("delete_node: Error deleting child '%s/%s'!\n",
@@ -1143,6 +1143,7 @@ static int delete_node(struct connection *conn, struct node *parent,
 		talloc_free(name);
 	}
 
+	fire_watches(conn, ctx, node->name, true);
 	delete_node_single(conn, node);
 	delete_child(conn, parent, basename(node->name));
 	talloc_free(node);
@@ -1172,8 +1173,8 @@ static int _rm(struct connection *conn, const void *ctx, struct node *node,
 	 * This fine as we are single threaded and the next possible read will
 	 * be handled only after the node has been really removed.
 	 */
-	fire_watches(conn, ctx, name, true);
-	return delete_node(conn, parent, node);
+	fire_watches(conn, ctx, name, false);
+	return delete_node(conn, ctx, parent, node);
 }
 
 
diff --git a/tools/xenstore/xenstored_watch.c b/tools/xenstore/xenstored_watch.c
index f0bbfe7a6d..3836675459 100644
--- a/tools/xenstore/xenstored_watch.c
+++ b/tools/xenstore/xenstored_watch.c
@@ -122,7 +122,7 @@ static void add_event(struct connection *conn,
  * Temporary memory allocations are done with ctx.
  */
 void fire_watches(struct connection *conn, const void *ctx, const char *name,
-		  bool recurse)
+		  bool exact)
 {
 	struct connection *i;
 	struct watch *watch;
@@ -134,10 +134,13 @@ void fire_watches(struct connection *conn, const void *ctx, const char *name,
 	/* Create an event for each watch. */
 	list_for_each_entry(i, &connections, list) {
 		list_for_each_entry(watch, &i->watches, list) {
-			if (is_child(name, watch->node))
-				add_event(i, ctx, watch, name);
-			else if (recurse && is_child(watch->node, name))
-				add_event(i, ctx, watch, watch->node);
+			if (exact) {
+				if (streq(name, watch->node))
+					add_event(i, ctx, watch, name);
+			} else {
+				if (is_child(name, watch->node))
+					add_event(i, ctx, watch, name);
+			}
 		}
 	}
 }
diff --git a/tools/xenstore/xenstored_watch.h b/tools/xenstore/xenstored_watch.h
index 54d4ea7e0d..1b3c80d3dd 100644
--- a/tools/xenstore/xenstored_watch.h
+++ b/tools/xenstore/xenstored_watch.h
@@ -24,9 +24,9 @@
 int do_watch(struct connection *conn, struct buffered_data *in);
 int do_unwatch(struct connection *conn, struct buffered_data *in);
 
-/* Fire all watches: recurse means all the children are affected (ie. rm). */
+/* Fire all watches: !exact means all the children are affected (ie. rm). */
 void fire_watches(struct connection *conn, const void *tmp, const char *name,
-		  bool recurse);
+		  bool exact);
 
 void conn_delete_all_watches(struct connection *conn);