diff --git a/plugins/settings-repository/src/ReadOnlySourceManager.kt b/plugins/settings-repository/src/ReadOnlySourceManager.kt
index 98ae2bc50427..39047b749f0c 100644
--- a/plugins/settings-repository/src/ReadOnlySourceManager.kt
+++ b/plugins/settings-repository/src/ReadOnlySourceManager.kt
@@ -20,11 +20,16 @@ import com.intellij.openapi.progress.ProgressIndicator
 import com.intellij.openapi.util.AtomicClearableLazyValue
 import com.intellij.util.containers.mapSmartNotNull
 import com.intellij.util.io.exists
+import gnu.trove.THashSet
+import org.eclipse.jgit.diff.DiffEntry
+import org.eclipse.jgit.diff.DiffFormatter
 import org.eclipse.jgit.lib.Repository
 import org.eclipse.jgit.storage.file.FileRepositoryBuilder
+import org.eclipse.jgit.util.io.DisabledOutputStream
 import org.jetbrains.settingsRepository.git.GitRepositoryClientImpl
 import org.jetbrains.settingsRepository.git.Pull
 import org.jetbrains.settingsRepository.git.upstream
+import org.jetbrains.settingsRepository.git.use
 import java.nio.file.Path
 
 class ReadOnlySourceManager(private val settings: IcsSettings, val rootDir: Path) {
@@ -62,16 +67,50 @@ class ReadOnlySourceManager(private val settings: IcsSettings, val rootDir: Path
     repositoryList.drop()
   }
 
-  fun update(indicator: ProgressIndicator? = null): Boolean {
-    var isChanged = false
+  fun update(indicator: ProgressIndicator? = null): Set<String>? {
+    var changedRootDirs: MutableSet<String>? = null
+
+    fun addChangedPath(path: String?) {
+      if (path == null || path == DiffEntry.DEV_NULL) {
+        return
+      }
+
+      var firstSlash = path.indexOf('/')
+      if (firstSlash < 0) {
+        // path must use only /, but who knows
+        firstSlash = path.indexOf('\\')
+      }
+
+      if (firstSlash > 0) {
+        if (changedRootDirs == null) {
+          changedRootDirs = THashSet()
+        }
+
+        changedRootDirs!!.add(path.substring(0, firstSlash))
+      }
+    }
+
     for (repo in repositories) {
       indicator?.checkCanceled()
       LOG.debug { "Pull changes from read-only repo ${repo.upstream}" }
 
-      if (Pull(GitRepositoryClientImpl(repo, icsManager.credentialsStore), indicator).fetch() != null) {
-        isChanged = true
-      }
+      Pull(GitRepositoryClientImpl(repo, icsManager.credentialsStore), indicator).fetch(refUpdateProcessor = { refUpdate ->
+        val diffFormatter = DiffFormatter(DisabledOutputStream.INSTANCE)
+        diffFormatter.setRepository(repo)
+        diffFormatter.use {
+          val result = diffFormatter.scan(refUpdate.oldObjectId, refUpdate.newObjectId)
+          for (e in result) {
+            if (e.changeType == DiffEntry.ChangeType.DELETE) {
+              addChangedPath(e.oldPath)
+            }
+            else {
+              addChangedPath(e.oldPath)
+              addChangedPath(e.newPath)
+            }
+          }
+        }
+      })
     }
-    return isChanged
+    return changedRootDirs
   }
 }
\ No newline at end of file
diff --git a/plugins/settings-repository/src/git/pull.kt b/plugins/settings-repository/src/git/pull.kt
index 20a3e35fcb1a..287e28d67c4a 100644
--- a/plugins/settings-repository/src/git/pull.kt
+++ b/plugins/settings-repository/src/git/pull.kt
@@ -40,6 +40,7 @@ import org.eclipse.jgit.revwalk.RevWalk
 import org.eclipse.jgit.revwalk.RevWalkUtils
 import org.eclipse.jgit.transport.CredentialsProvider
 import org.eclipse.jgit.transport.RemoteConfig
+import org.eclipse.jgit.transport.TrackingRefUpdate
 import org.eclipse.jgit.treewalk.FileTreeIterator
 import org.jetbrains.settingsRepository.*
 import java.io.IOException
@@ -87,7 +88,7 @@ open internal class Pull(val manager: GitRepositoryClient, val indicator: Progre
     }
   }
 
-  fun fetch(prevRefUpdateResult: RefUpdate.Result? = null): Ref? {
+  fun fetch(prevRefUpdateResult: RefUpdate.Result? = null, refUpdateProcessor: ((TrackingRefUpdate) -> Unit)? = null): Ref? {
     indicator?.checkCanceled()
 
     val fetchResult = repository.fetch(remoteConfig, manager.credentialsProvider, indicator.asProgressMonitor()) ?: return null
@@ -128,6 +129,8 @@ open internal class Pull(val manager: GitRepositoryClient, val indicator: Progre
       if (!hasChanges) {
         hasChanges = refUpdateResult != RefUpdate.Result.NO_CHANGE
       }
+
+      refUpdateProcessor?.invoke(refUpdate)
     }
 
     if (!hasChanges) {
diff --git a/plugins/settings-repository/src/sync.kt b/plugins/settings-repository/src/sync.kt
index 77419c6a1df2..e403160dc03d 100644
--- a/plugins/settings-repository/src/sync.kt
+++ b/plugins/settings-repository/src/sync.kt
@@ -22,6 +22,7 @@ import com.intellij.openapi.application.invokeAndWaitIfNeed
 import com.intellij.openapi.components.StateStorage
 import com.intellij.openapi.components.stateStore
 import com.intellij.openapi.progress.ProcessCanceledException
+import com.intellij.openapi.progress.ProgressIndicator
 import com.intellij.openapi.progress.runModalTask
 import com.intellij.openapi.project.Project
 import com.intellij.util.SmartList
@@ -105,14 +106,7 @@ internal class SyncManager(private val icsManager: IcsManager, private val autoS
               }
             }
 
-            if (icsManager.readOnlySourcesManager.update(indicator)) {
-              invokeAndWaitIfNeed {
-                icsManager.schemeManagerFactory.value.process {
-                  @Suppress("ConvertLambdaToReference")
-                  it.reload()
-                }
-              }
-            }
+            updateCloudSchemes(indicator)
           }
           catch (e: ProcessCanceledException) {
             LOG.debug("Canceled")
@@ -148,6 +142,25 @@ internal class SyncManager(private val icsManager: IcsManager, private val autoS
     }
     return updateResult
   }
+
+  private fun updateCloudSchemes(indicator: ProgressIndicator) {
+    val changedRootDirs = icsManager.readOnlySourcesManager.update(indicator) ?: return
+    val schemeManagersToReload = SmartList<SchemeManagerImpl<*, *>>()
+    icsManager.schemeManagerFactory.value.process {
+      val fileSpec = toRepositoryPath(it.fileSpec, it.roamingType)
+      if (changedRootDirs.contains(fileSpec)) {
+        schemeManagersToReload.add(it)
+      }
+    }
+
+    if (schemeManagersToReload.isNotEmpty()) {
+      invokeAndWaitIfNeed {
+        for (schemeManager in schemeManagersToReload) {
+          schemeManager.reload()
+        }
+      }
+    }
+  }
 }
 
 internal fun updateStoragesFromStreamProvider(store: ComponentStoreImpl, updateResult: UpdateResult, messageBus: MessageBus, reloadAllSchemes: Boolean = false): Boolean {