diff --git a/hyde/engine.py b/hyde/engine.py
index 98005d1..45ab14a 100644
--- a/hyde/engine.py
+++ b/hyde/engine.py
@@ -16,7 +16,7 @@ import yaml
 
 HYDE_LAYOUTS = "HYDE_LAYOUTS"
 
-logger = getLoggerWithConsoleHandler('hyde.engine')
+logger = getLoggerWithConsoleHandler('hyde')
 
 class Engine(Application):
     """
diff --git a/hyde/ext/templates/jinja.py b/hyde/ext/templates/jinja.py
index f33974c..a701b2f 100644
--- a/hyde/ext/templates/jinja.py
+++ b/hyde/ext/templates/jinja.py
@@ -104,6 +104,21 @@ class Jinja2Template(Template):
             jinja2_filters.register(self.env)
 
 
+    def get_dependencies(self, text):
+        """
+        Finds dependencies hierarchically based on the included
+        files.
+        """
+        from jinja2.meta import find_referenced_templates
+        ast = self.env.parse(text)
+        tpls = find_referenced_templates(ast)
+        deps = []
+        for dep in tpls:
+            deps.append(dep)
+            source = self.env.loader.get_source(self.env, dep)[0]
+            deps.extend(self.get_dependencies(source))
+        return list(set(deps))
+
     @property
     def exception_class(self):
         return TemplateError
diff --git a/hyde/generator.py b/hyde/generator.py
index b3bc144..31742da 100644
--- a/hyde/generator.py
+++ b/hyde/generator.py
@@ -2,7 +2,7 @@
 The generator class and related utility functions.
 """
 from hyde.exceptions import HydeException
-from hyde.fs import File
+from hyde.fs import File, Folder
 from hyde.plugin import Plugin
 from hyde.template import Template
 
@@ -110,6 +110,29 @@ class Generator(object):
         logger.info("Generation Complete")
         self.events.generation_complete()
 
+    def has_resource_changed(self, resource):
+        target = File(self.site.config.deploy_root_path.child(
+                                resource.relative_deploy_path))
+        if not target.exists or target.older_than(resource.source_file):
+            return True
+        if resource.source_file.is_binary:
+            return False
+        deps = self.template.get_dependencies(resource.source_file.read_all())
+        if not deps or None in deps:
+            return True
+        content = self.site.content.source_folder
+        layout = Folder(self.site.sitepath).child_folder('layout')
+        for dep in deps:
+            source = File(content.child(dep))
+            if not source.exists:
+                source = File(layout.child(dep))
+            if not source.exists:
+                return True
+            if target.older_than(source):
+                return True
+
+        return False
+
     def generate_all(self):
         """
         Generates the entire website
diff --git a/hyde/server.py b/hyde/server.py
index 0ecbde0..396905a 100644
--- a/hyde/server.py
+++ b/hyde/server.py
@@ -10,9 +10,9 @@ from BaseHTTPServer import HTTPServer
 from hyde.fs import File, Folder
 from hyde.site import Site
 from hyde.generator import Generator
-from hyde.util import getLoggerWithConsoleHandler
 
-logger = getLoggerWithConsoleHandler('hyde.engine')
+from hyde.util import getLoggerWithNullHandler
+logger = getLoggerWithNullHandler('hyde.server')
 
 class HydeRequestHandler(SimpleHTTPRequestHandler):
     """
@@ -131,7 +131,7 @@ class HydeWebServer(HTTPServer):
         """
         target = self.site.config.deploy_root_path.child(
                                 resource.relative_deploy_path)
-        if File(target).older_than(resource.source_file):
+        if self.generator.has_resource_changed(resource):
             try:
                 logger.info('Generating resource [%s]' % resource)
                 self.generator.generate_resource(resource)
diff --git a/hyde/template.py b/hyde/template.py
index 07eea67..3ca5321 100644
--- a/hyde/template.py
+++ b/hyde/template.py
@@ -25,6 +25,13 @@ class Template(object):
         """
 
         abstract
+        
+    def get_dependencies(self, text):
+        """
+        Finds the dependencies based on the included
+        files.
+        """
+        return None
 
     def render(self, text, context):
         """
diff --git a/hyde/tests/test_generate.py b/hyde/tests/test_generate.py
index 94c4ef2..fdd8fef 100644
--- a/hyde/tests/test_generate.py
+++ b/hyde/tests/test_generate.py
@@ -73,4 +73,24 @@ def test_generate_resource_from_path_with_deploy_override():
     assert about.exists
     text = about.read_all()
     q = PyQuery(text)
-    assert resource.name in q("div#main").text()
\ No newline at end of file
+    assert resource.name in q("div#main").text()
+
+@with_setup(create_test_site, delete_test_site)
+def test_has_resource_changed():
+    site = Site(TEST_SITE)
+    site.load()
+    resource = site.content.resource_from_path(TEST_SITE.child('content/about.html'))
+    gen = Generator(site)
+    gen.generate_all()
+    assert not gen.has_resource_changed(resource)
+    import time
+    time.sleep(1)
+    text = resource.source_file.read_all()
+    resource.source_file.write(text)
+    assert gen.has_resource_changed(resource)
+    gen.generate_all()
+    assert not gen.has_resource_changed(resource)
+    time.sleep(1)
+    l = File(TEST_SITE.child('layout/root.html'))
+    l.write(l.read_all())
+    assert gen.has_resource_changed(resource)
diff --git a/hyde/tests/test_jinja2template.py b/hyde/tests/test_jinja2template.py
index d342c84..cbc58cf 100644
--- a/hyde/tests/test_jinja2template.py
+++ b/hyde/tests/test_jinja2template.py
@@ -73,6 +73,31 @@ def test_render():
     assert actual("div.article p.meta").length == 20
     assert actual("div.article div.text").length == 20
 
+def test_depends():
+    t = Jinja2Template(JINJA2.path)
+    t.configure(None)
+    source = File(JINJA2.child('index.html')).read_all()
+    deps = list(t.get_dependencies(source))
+
+    assert len(deps) == 2
+
+    assert 'helpers.html' in deps
+    assert 'layout.html' in deps
+
+def test_depends_multi_level():
+    t = Jinja2Template(JINJA2.path)
+    t.configure(None)
+
+    source = "{% extends 'index.html' %}"
+    deps = list(t.get_dependencies(source))
+
+    assert len(deps) == 3
+
+    assert 'helpers.html' in deps
+    assert 'layout.html' in deps
+    assert 'index.html' in deps
+
+
 def test_typogrify():
     source = """
     {%filter typogrify%}
@@ -94,12 +119,12 @@ def test_markdown():
     t.configure(None)
     html = t.render(source, {}).strip()
     assert html == u'<h3>Heading 3</h3>'
-    
+
 def test_markdown_with_extensions():
     source = """
     {%markdown%}
     ### Heading 3
-    
+
     {%endmarkdown%}
     """
     t = Jinja2Template(JINJA2.path)
diff --git a/hyde/util.py b/hyde/util.py
index d9da797..d500768 100644
--- a/hyde/util.py
+++ b/hyde/util.py
@@ -18,7 +18,7 @@ except:
             pass
 
 def getLoggerWithConsoleHandler(logger_name):
-    logger = logging.getLogger('hyde.server')
+    logger = logging.getLogger(logger_name)
     logger.setLevel(logging.DEBUG)
     handler = logging.StreamHandler(sys.stdout)
     formatter = ColorFormatter(fmt="$COLOR%(levelname)s "