diff --git a/src/mcpm/core/router/notifier.py b/src/mcpm/core/router/notifier.py
new file mode 100644
index 0000000..5db98f7
--- /dev/null
+++ b/src/mcpm/core/router/notifier.py
@@ -0,0 +1,45 @@
+import logging
+from typing import Any, Awaitable, Callable
+
+from mcpm.core.schema import ConfigType
+
+logger = logging.getLogger(__name__)
+
+CallableT = Callable[[ConfigType], Awaitable[Any]]
+
+class ConfigUpdateNotifier:
+
+    _instance = None
+
+    @classmethod
+    def get_instance(cls):
+        if cls._instance is None:
+            cls._instance = cls()
+        return cls._instance
+
+
+    def __init__(self) -> None:
+        """
+        Initialize the ConfigUpdateNotifier singleton.
+
+        This class implements the observer pattern to notify subscribers when configuration changes occur.
+        Subscribers can register callbacks that will be executed when configuration updates are detected.
+        """
+        self._subscribers: list[CallableT] = []
+
+    def subscribe(self, callback: CallableT):
+        if callback not in self._subscribers:
+            self._subscribers.append(callback)
+        return lambda: self.unsubscribe(callback)
+
+    def unsubscribe(self, callback: CallableT):
+        if callback in self._subscribers:
+            self._subscribers.remove(callback)
+
+    async def notify_update(self, config_type: ConfigType):
+        """ Notify all subscribers about the update """
+        for subscriber in self._subscribers:
+            try:
+                await subscriber(config_type)
+            except Exception as e:
+                logger.error(f"Failed to notify subscriber due to error: {e}")
diff --git a/src/mcpm/core/router/types.py b/src/mcpm/core/router/types.py
new file mode 100644
index 0000000..486a4cd
--- /dev/null
+++ b/src/mcpm/core/router/types.py
@@ -0,0 +1,6 @@
+from enum import Enum
+
+
+class ConfigType(str, Enum):
+    FILE = "file"
+    CLOUD = "cloud"
diff --git a/src/mcpm/core/router/watcher.py b/src/mcpm/core/router/watcher.py
new file mode 100644
index 0000000..016104e
--- /dev/null
+++ b/src/mcpm/core/router/watcher.py
@@ -0,0 +1,135 @@
+"""
+Configuration watchers for monitoring changes from different sources.
+"""
+import asyncio
+import json
+import logging
+from abc import ABC, abstractmethod
+from pathlib import Path
+from typing import Any, Optional
+
+from watchfiles import Change, awatch
+
+from mcpm.core.router.notifier import ConfigUpdateNotifier
+from mcpm.core.router.types import ConfigType
+
+logger = logging.getLogger(__name__)
+
+
+class BaseConfigWatcher(ABC):
+    """
+    A base class for configuration watcher
+    """
+
+    def __init__(self, source_id: Any) -> None:
+        self.source_id = source_id
+        self.running = False
+        self.watch_task: Optional[asyncio.Task] = None
+        self.notifier: ConfigUpdateNotifier = ConfigUpdateNotifier.get_instance()
+
+    async def start(self) -> Optional[asyncio.Task]:
+        if not self.running:
+            self.running = True
+            self.watch_task = asyncio.create_task(self._watch_config())
+            logger.info(f"Started watching config source: {self.source_id}")
+            return self.watch_task
+        return self.watch_task
+
+    async def stop(self):
+        if self.running:
+            self.running = False
+            if self.watch_task and not self.watch_task.done():
+                self.watch_task.cancel()
+                try:
+                    await self.watch_task
+                    logger.info("Watcher stopped")
+                except asyncio.CancelledError:
+                    pass
+
+
+    @abstractmethod
+    async def _watch_config(self):
+        pass
+
+
+    async def notify_update(self, config_type: ConfigType):
+        await self.notifier.notify_update(config_type)
+
+
+class FileConfigWatcher(BaseConfigWatcher):
+
+    def __init__(self, config_path: str) -> None:
+        """
+        FileConfigWatcher watches for changes in a local config file.
+
+        Args:
+            config_path: Path to the config file to watch
+        """
+        super().__init__(source_id=config_path)
+        self.config_path = Path(config_path)
+
+    async def _watch_config(self):
+        try:
+            async for changes in awatch(self.config_path):
+                if not self.running:
+                    break
+
+                for change_type, file_path in changes:
+                    if Path(file_path) == self.config_path:
+                        if change_type in (Change.modified, Change.added):
+                            await self._reload()
+
+        except asyncio.CancelledError:
+            pass
+        except Exception as e:
+            logger.error(f"Error watching config file: {e}")
+
+    async def _reload(self):
+        updated = self._validate_config()
+        if updated:
+            logger.info("Config file has been modified, notifying subscribers...")
+            await self.notify_update(ConfigType.FILE)
+
+    def _validate_config(self):
+        """Validate the config file format."""
+        try:
+            with open(self.config_path, "r", encoding="utf-8") as f:
+                _ = json.load(f)
+        except json.JSONDecodeError:
+            logger.error(f"Error parsing config file: {self.config_path}")
+            return False
+        else:
+            return True
+
+
+class CloudConfigWatcher(BaseConfigWatcher):
+
+    def __init__(self, api_endpoint: str, poll_interval_ms: int = 1000) -> None:
+        """
+        CloudConfigWatcher watches for changes in a remote config file.
+
+        Args:
+            api_endpoint: API endpoint for polling remote config
+            poll_interval_ms: Polling interval in milliseconds
+        """
+        super().__init__(source_id=api_endpoint)
+        self.api_endpoint = api_endpoint
+        self.poll_interval_ms = poll_interval_ms
+        self.last_config_hash = None
+
+    async def _watch_config(self):
+        try:
+            while self.running:
+                config_data = await self._poll_remote_config()
+                if config_data:
+                    current_hash = hash(str(config_data))
+                    if (self.last_config_hash is None) or (current_hash != self.last_config_hash):
+                        self.last_config_hash = current_hash
+                        await self.notify_update(ConfigType.CLOUD)
+
+                await asyncio.sleep(self.poll_interval_ms)
+        except asyncio.CancelledError:
+            pass
+
+    async def _poll_remote_config(self):
+        return json.dumps({})