diff --git a/tools/xenstored/core.c b/tools/xenstored/core.c
index 807a8e6710..f92fca6e9e 100644
--- a/tools/xenstored/core.c
+++ b/tools/xenstored/core.c
@@ -1613,7 +1613,7 @@ static int do_write(const void *ctx, struct connection *conn,
 			return errno;
 	}
 
-	fire_watches(conn, ctx, name, node, false, NULL);
+	fire_watches(conn, ctx, name, node, MATCH_SUBTREE, NULL);
 	send_ack(conn, XS_WRITE);
 
 	return 0;
@@ -1637,7 +1637,7 @@ static int do_mkdir(const void *ctx, struct connection *conn,
 		node = create_node(conn, ctx, name, NULL, 0);
 		if (!node)
 			return errno;
-		fire_watches(conn, ctx, name, node, false, NULL);
+		fire_watches(conn, ctx, name, node, MATCH_SUBTREE, NULL);
 	}
 	send_ack(conn, XS_MKDIR);
 
@@ -1683,7 +1683,7 @@ static int delnode_sub(const void *ctx, struct connection *conn,
 		       struct node *node, void *arg)
 {
 	const char *root = arg;
-	bool watch_exact;
+	enum watch_match watch_match;
 	int ret;
 	const char *db_name;
 
@@ -1703,8 +1703,8 @@ static int delnode_sub(const void *ctx, struct connection *conn,
 	 * This fine as we are single threaded and the next possible read will
 	 * be handled only after the node has been really removed.
 	*/
-	watch_exact = strcmp(root, node->name);
-	fire_watches(conn, ctx, node->name, node, watch_exact, NULL);
+	watch_match = strcmp(root, node->name) ? MATCH_EXACT : MATCH_SUBTREE;
+	fire_watches(conn, ctx, node->name, node, watch_match, NULL);
 
 	return WALK_TREE_RM_CHILDENTRY;
 }
@@ -1858,7 +1858,7 @@ static int do_set_perms(const void *ctx, struct connection *conn,
 	if (write_node(conn, node, NODE_MODIFY, false))
 		return errno;
 
-	fire_watches(conn, ctx, name, node, false, &old_perms);
+	fire_watches(conn, ctx, name, node, MATCH_SUBTREE, &old_perms);
 	send_ack(conn, XS_SET_PERMS);
 
 	return 0;
diff --git a/tools/xenstored/transaction.c b/tools/xenstored/transaction.c
index 47cd6ecd3c..ec5b122a3f 100644
--- a/tools/xenstored/transaction.c
+++ b/tools/xenstored/transaction.c
@@ -134,7 +134,7 @@ struct accessed_node
 
 	/* Watch event flags. */
 	bool fire_watch;
-	bool watch_exact;
+	enum watch_match watch_match;
 };
 
 struct transaction
@@ -327,8 +327,10 @@ err:
  * A watch event should be fired for a node modified inside a transaction.
  * Set the corresponding information. A non-exact event is replacing an exact
  * one, but not the other way round.
+ * No special watch handling needed here, so MATCH_DEPTH is no issue.
  */
-void queue_watches(struct connection *conn, const char *name, bool watch_exact)
+void queue_watches(struct connection *conn, const char *name,
+		   enum watch_match watch_match)
 {
 	struct accessed_node *i;
 
@@ -340,9 +342,9 @@ void queue_watches(struct connection *conn, const char *name, bool watch_exact)
 
 	if (!i->fire_watch) {
 		i->fire_watch = true;
-		i->watch_exact = watch_exact;
-	} else if (!watch_exact) {
-		i->watch_exact = false;
+		i->watch_match = watch_match;
+	} else if (watch_match == MATCH_SUBTREE) {
+		i->watch_match = MATCH_SUBTREE;
 	}
 }
 
@@ -419,7 +421,7 @@ static int finalize_transaction(struct connection *conn,
 				db_delete(conn, i->node, NULL);
 		}
 		if (i->fire_watch)
-			fire_watches(conn, trans, i->node, NULL, i->watch_exact,
+			fire_watches(conn, trans, i->node, NULL, i->watch_match,
 				     i->perms.p ? &i->perms : NULL);
 
 		list_del(&i->list);
diff --git a/tools/xenstored/transaction.h b/tools/xenstored/transaction.h
index 90435b4fc9..b4f5f757e2 100644
--- a/tools/xenstored/transaction.h
+++ b/tools/xenstored/transaction.h
@@ -18,6 +18,7 @@
 #ifndef _XENSTORED_TRANSACTION_H
 #define _XENSTORED_TRANSACTION_H
 #include "core.h"
+#include "watch.h"
 
 enum node_access_type {
     NODE_ACCESS_READ,
@@ -44,7 +45,8 @@ int __must_check access_node(struct connection *conn, struct node *node,
                              enum node_access_type type, const char **db_name);
 
 /* Queue watches for a modified node. */
-void queue_watches(struct connection *conn, const char *name, bool watch_exact);
+void queue_watches(struct connection *conn, const char *name,
+		   enum watch_match watch_match);
 
 /* Prepend the transaction to name if appropriate. */
 const char *transaction_prepend(struct connection *conn, const char *name);
diff --git a/tools/xenstored/watch.c b/tools/xenstored/watch.c
index 860c219f29..a9a06e9e48 100644
--- a/tools/xenstored/watch.c
+++ b/tools/xenstored/watch.c
@@ -128,7 +128,8 @@ static bool watch_permitted(struct connection *conn, const void *ctx,
  * watch event, too.
  */
 void fire_watches(struct connection *conn, const void *ctx, const char *name,
-		  const struct node *node, bool exact, struct node_perms *perms)
+		  const struct node *node, enum watch_match match,
+		  struct node_perms *perms)
 {
 	struct connection *i;
 	struct buffered_data *req;
@@ -136,7 +137,7 @@ void fire_watches(struct connection *conn, const void *ctx, const char *name,
 
 	/* During transactions, don't fire watches, but queue them. */
 	if (conn && conn->transaction) {
-		queue_watches(conn, name, exact);
+		queue_watches(conn, name, match);
 		return;
 	}
 
@@ -148,17 +149,34 @@ void fire_watches(struct connection *conn, const void *ctx, const char *name,
 			continue;
 
 		list_for_each_entry(watch, &i->watches, list) {
-			if (exact) {
-				if (streq(name, watch->node))
-					send_event(req, i,
-						   get_watch_path(watch, name),
-						   watch->token);
-			} else {
-				if (is_child(name, watch->node, watch->depth))
-					send_event(req, i,
-						   get_watch_path(watch, name),
-						   watch->token);
+			bool send = false;
+
+			switch (match) {
+			case MATCH_EXACT:
+				send = streq(name, watch->node);
+				break;
+
+			case MATCH_SUBTREE:
+				send = is_child(name, watch->node,
+						watch->depth);
+				break;
+
+			case MATCH_DEPTH:
+				send = streq(name, watch->node) ||
+				       (watch->depth > 0 &&
+					is_child(name, watch->node,
+						 watch->depth));
+				break;
+
+			case MATCH_NODEPTH:
+				send = streq(name, watch->node) &&
+				       watch->depth < 0;
+				break;
 			}
+
+			if (send)
+				send_event(req, i, get_watch_path(watch, name),
+					   watch->token);
 		}
 	}
 }
diff --git a/tools/xenstored/watch.h b/tools/xenstored/watch.h
index afdfdc6b2f..692343389f 100644
--- a/tools/xenstored/watch.h
+++ b/tools/xenstored/watch.h
@@ -27,8 +27,15 @@ int do_unwatch(const void *ctx, struct connection *conn,
 	       struct buffered_data *in);
 
 /* Fire all watches: !exact means all the children are affected (ie. rm). */
+enum watch_match {
+	MATCH_EXACT,
+	MATCH_SUBTREE,
+	MATCH_DEPTH,	/* watches with depth > 0, MATCH_SUBTREE semantics */
+	MATCH_NODEPTH	/* watches with no depth, MATCH_EXACT semantics */
+};
+
 void fire_watches(struct connection *conn, const void *tmp, const char *name,
-		  const struct node *node, bool exact,
+		  const struct node *node, enum watch_match match,
 		  struct node_perms *perms);
 
 void conn_delete_all_watches(struct connection *conn);