diff --git a/packages/angular/build/src/builders/application/build-action.ts b/packages/angular/build/src/builders/application/build-action.ts
index 4d3120da10f4..8fdfa1a9d5bc 100644
--- a/packages/angular/build/src/builders/application/build-action.ts
+++ b/packages/angular/build/src/builders/application/build-action.ts
@@ -264,6 +264,8 @@ function* emitOutputResults(
     const incrementalResult: IncrementalResult = {
       kind: ResultKind.Incremental,
       warnings: warnings as ResultMessage[],
+      // These files need to be updated in the dev server but should not signal any updates
+      background: hasTemplateUpdates,
       added: [],
       removed: [],
       modified: [],
@@ -281,13 +283,6 @@ function* emitOutputResults(
     for (const file of outputFiles) {
       removedOutputFiles.delete(file.path);
 
-      // Temporarily ignore JS files until Angular compiler plugin refactor to allow
-      // bypassing application code bundling for template affecting only changes.
-      // TODO: Remove once refactor is complete.
-      if (hasTemplateUpdates && /\.js(?:\.map)?$/.test(file.path)) {
-        continue;
-      }
-
       const previousHash = previousOutputInfo.get(file.path)?.hash;
       let needFile = false;
       if (previousHash === undefined) {
@@ -299,6 +294,11 @@ function* emitOutputResults(
       }
 
       if (needFile) {
+        // Updates to non-JS files must signal an update with the dev server
+        if (!/(?:\.js|\.map)?$/.test(file.path)) {
+          incrementalResult.background = false;
+        }
+
         incrementalResult.files[file.path] = {
           type: file.type,
           contents: file.contents,
diff --git a/packages/angular/build/src/builders/application/results.ts b/packages/angular/build/src/builders/application/results.ts
index 077237967425..3e3f0dd99315 100644
--- a/packages/angular/build/src/builders/application/results.ts
+++ b/packages/angular/build/src/builders/application/results.ts
@@ -36,6 +36,7 @@ export interface FullResult extends BaseResult {
 
 export interface IncrementalResult extends BaseResult {
   kind: ResultKind.Incremental;
+  background?: boolean;
   added: string[];
   removed: { path: string; type: BuildOutputFileType }[];
   modified: string[];
diff --git a/packages/angular/build/src/builders/dev-server/vite-server.ts b/packages/angular/build/src/builders/dev-server/vite-server.ts
index 439cebda2b03..78bb603fd933 100644
--- a/packages/angular/build/src/builders/dev-server/vite-server.ts
+++ b/packages/angular/build/src/builders/dev-server/vite-server.ts
@@ -217,6 +217,7 @@ export async function* serveWithVite(
       });
     }
 
+    let needClientUpdate = true;
     switch (result.kind) {
       case ResultKind.Full:
         if (result.detail?.['htmlIndexPath']) {
@@ -261,6 +262,9 @@ export async function* serveWithVite(
       case ResultKind.Incremental:
         assert(server, 'Builder must provide an initial full build before incremental results.');
 
+        // Background updates should only update server files/options
+        needClientUpdate = !result.background;
+
         for (const removed of result.removed) {
           const filePath = '/' + normalizePath(removed.path);
           generatedFiles.delete(filePath);
@@ -363,15 +367,17 @@ export async function* serveWithVite(
         ]),
       ];
 
-      await handleUpdate(
-        normalizePath,
-        generatedFiles,
-        assetFiles,
-        server,
-        serverOptions,
-        context.logger,
-        componentStyles,
-      );
+      if (needClientUpdate) {
+        await handleUpdate(
+          normalizePath,
+          generatedFiles,
+          assetFiles,
+          server,
+          serverOptions,
+          context.logger,
+          componentStyles,
+        );
+      }
     } else {
       const projectName = context.target?.project;
       if (!projectName) {