diff --git a/Libraries/Utilities/HMRClient.js b/Libraries/Utilities/HMRClient.js
index d9d8b79bdd6..887bab88000 100644
--- a/Libraries/Utilities/HMRClient.js
+++ b/Libraries/Utilities/HMRClient.js
@@ -73,9 +73,12 @@ Error: ${e.message}`
           break;
         }
         case 'update': {
-          const modules = data.body.modules;
-          const sourceMappingURLs = data.body.sourceMappingURLs;
-          const sourceURLs = data.body.sourceURLs;
+          const {
+            modules,
+            sourceMappingURLs,
+            sourceURLs,
+            inverseDependencies,
+          } = data.body;
 
           if (Platform.OS === 'ios') {
             const RCTRedBox = require('NativeModules').RedBox;
@@ -85,7 +88,7 @@ Error: ${e.message}`
             RCTExceptionsManager && RCTExceptionsManager.dismissRedbox && RCTExceptionsManager.dismissRedbox();
           }
 
-          modules.forEach((code, i) => {
+          modules.forEach(({name, code}, i) => {
             code = code + '\n\n' + sourceMappingURLs[i];
 
             require('SourceMapsCache').fetch({
@@ -101,6 +104,16 @@ Error: ${e.message}`
               ? global.nativeInjectHMRUpdate
               : eval;
 
+            // TODO: (martinb) yellow box if cannot accept module
+            code = `
+              __accept(
+                ${name},
+                function(global, require, module, exports) {
+                  ${code}
+                },
+                ${JSON.stringify(inverseDependencies)}
+              );`;
+
             injectFunction(code, sourceURLs[i]);
           });
 
diff --git a/local-cli/server/util/attachHMRServer.js b/local-cli/server/util/attachHMRServer.js
index e0495e3d700..22323d071e2 100644
--- a/local-cli/server/util/attachHMRServer.js
+++ b/local-cli/server/util/attachHMRServer.js
@@ -8,6 +8,7 @@
  */
 'use strict';
 
+const getInverseDependencies = require('node-haste').getInverseDependencies;
 const querystring = require('querystring');
 const url = require('url');
 
@@ -23,9 +24,10 @@ function attachHMRServer({httpServer, path, packagerServer}) {
     packagerServer.setHMRFileChangeListener(null);
   }
 
-  // Returns a promise with the full list of dependencies and the shallow
-  // dependencies each file on the dependency list has for the give platform
-  // and entry file.
+  // For the give platform and entry file, returns a promise with:
+  //   - The full list of dependencies.
+  //   - The shallow dependencies each file on the dependency list has
+  //   - Inverse shallow dependencies map
   function getDependencies(platform, bundleEntry) {
     return packagerServer.getDependencies({
       platform: platform,
@@ -70,12 +72,16 @@ function attachHMRServer({httpServer, path, packagerServer}) {
             dependenciesModulesCache[depName] = dep;
           });
         })).then(() => {
-          return {
-            dependenciesCache,
-            dependenciesModulesCache,
-            shallowDependencies,
-            resolutionResponse: response,
-          };
+          return getInverseDependencies(response)
+            .then(inverseDependenciesCache => {
+              return {
+                dependenciesCache,
+                dependenciesModulesCache,
+                shallowDependencies,
+                inverseDependenciesCache,
+                resolutionResponse: response,
+              };
+            });
         });
       });
     });
@@ -97,6 +103,7 @@ function attachHMRServer({httpServer, path, packagerServer}) {
         dependenciesCache,
         dependenciesModulesCache,
         shallowDependencies,
+        inverseDependenciesCache,
       }) => {
         client = {
           ws,
@@ -105,6 +112,7 @@ function attachHMRServer({httpServer, path, packagerServer}) {
           dependenciesCache,
           dependenciesModulesCache,
           shallowDependencies,
+          inverseDependenciesCache,
         };
 
         packagerServer.setHMRFileChangeListener((filename, stat) => {
@@ -151,6 +159,7 @@ function attachHMRServer({httpServer, path, packagerServer}) {
                     dependenciesCache,
                     dependenciesModulesCache,
                     shallowDependencies,
+                    inverseDependenciesCache,
                     resolutionResponse,
                   }) => {
                     if (!client) {
@@ -211,7 +220,8 @@ function attachHMRServer({httpServer, path, packagerServer}) {
                 return JSON.stringify({
                   type: 'update',
                   body: {
-                    modules: bundle.getModulesCode(),
+                    modules: bundle.getModulesNamesAndCode(),
+                    inverseDependencies: inverseDependenciesCache,
                     sourceURLs: bundle.getSourceURLs(),
                     sourceMappingURLs: bundle.getSourceMappingURLs(),
                   },
diff --git a/packager/react-packager/src/Bundler/HMRBundle.js b/packager/react-packager/src/Bundler/HMRBundle.js
index 49a21dfd8bc..72850778846 100644
--- a/packager/react-packager/src/Bundler/HMRBundle.js
+++ b/packager/react-packager/src/Bundler/HMRBundle.js
@@ -26,9 +26,6 @@ class HMRBundle extends BundleBase {
       module,
       transformed.code,
     ).then(({name, code}) => {
-      // need to be in single line so that lines match on sourcemaps
-      code = `__accept(${JSON.stringify(name)}, function(global, require, module, exports) { ${code} });`;
-
       const moduleTransport = new ModuleTransport({
         code,
         name,
@@ -44,8 +41,13 @@ class HMRBundle extends BundleBase {
     });
   }
 
-  getModulesCode() {
-    return this._modules.map(module => module.code);
+  getModulesNamesAndCode() {
+    return this._modules.map(module => {
+      return {
+        name: JSON.stringify(module.name),
+        code: module.code,
+      };
+    });
   }
 
   getSourceURLs() {
diff --git a/packager/react-packager/src/Resolver/polyfills/require.js b/packager/react-packager/src/Resolver/polyfills/require.js
index 764e4dd1e2e..d5b0cd81a2f 100644
--- a/packager/react-packager/src/Resolver/polyfills/require.js
+++ b/packager/react-packager/src/Resolver/polyfills/require.js
@@ -94,12 +94,12 @@ global.__d = define;
 global.require = require;
 
 if (__DEV__) { // HMR
-  function accept(id, factory) {
+  function accept(id, factory, inverseDependencies) {
     var mod = modules[id];
 
     if (!mod) {
       define(id, factory);
-      return; // new modules don't need to be accepted
+      return true; // new modules don't need to be accepted
     }
 
     if (!mod.module.hot) {
@@ -107,22 +107,51 @@ if (__DEV__) { // HMR
         'Cannot accept module because Hot Module Replacement ' +
         'API was not installed.'
       );
-      return;
+      return false;
     }
 
+    // replace and initialize factory
+    if (factory) {
+      mod.factory = factory;
+    }
+    mod.isInitialized = false;
+    require(id);
+
     if (mod.module.hot.acceptCallback) {
-      mod.factory = factory;
-      mod.isInitialized = false;
-      require(id);
-
       mod.module.hot.acceptCallback();
+      return true;
     } else {
-      console.warn(
-        '[HMR] Module `' + id + '` can\'t be hot reloaded because it\'s not a ' +
-        'React component. To get the changes reload the JS bundle.'
-      );
+      // need to have inverseDependencies to bubble up accept
+      if (!inverseDependencies) {
+        throw new Error('Undefined `inverseDependencies`');
+      }
+
+      // accept parent modules recursively up until all siblings are accepted
+      return acceptAll(inverseDependencies[id], inverseDependencies);
     }
   }
 
+  function acceptAll(modules, inverseDependencies) {
+    if (modules.length === 0) {
+      return true;
+    }
+
+    var notAccepted = modules.filter(function(module) {
+      return !accept(module, /*factory*/ undefined, inverseDependencies);
+    });
+
+    var parents = [];
+    for (var i = 0; i < notAccepted.length; i++) {
+      // if this the module has no parents then the change cannot be hot loaded
+      if (inverseDependencies[notAccepted[i]].length === 0) {
+        return false;
+      }
+
+      parents.pushAll(inverseDependencies[notAccepted[i]]);
+    }
+
+    return acceptAll(parents, inverseDependencies);
+  }
+
   global.__accept = accept;
 }