diff --git a/objdb/etcdLock.go b/objdb/etcdLock.go
index e756ca01e..5450db29a 100644
--- a/objdb/etcdLock.go
+++ b/objdb/etcdLock.go
@@ -1,7 +1,7 @@
 package objdb
 
 import (
-	"strings"
+	"reflect"
 	"sync"
 	"time"
 
@@ -353,12 +353,21 @@ func (lk *etcdLock) watchLock() {
 	}
 	for {
 		resp, err := watcher.Next(lk.watchCtx)
-		if err != nil && (err.Error() == client.ErrClusterUnavailable.Error() ||
-			strings.Contains(err.Error(), "context canceled")) {
-			log.Infof("Stopping watch on key %s", keyName)
-			return
-		} else if err != nil {
-			log.Errorf("Error watching the key %s, Err %v.", keyName, err)
+		if err != nil {
+			log.Infof("Watch %s next failed: %v %v", keyName, reflect.TypeOf(err), err)
+			switch err.(type) {
+			case *client.ClusterError:
+				// retry and wait for etcd cluster to recover!
+				time.Sleep(time.Second * 5)
+			case client.Error:
+				if err.(client.Error).Code == client.ErrorCodeEventIndexCleared {
+					watcher = lk.kapi.Watcher(keyName, nil)
+					log.Errorf("Watch next failed: reset watcher")
+				}
+			default:
+				// do nothing, just retry
+			}
+			continue
 		} else {
 			log.Debugf("Got Watch Resp: %+v", resp)
 
diff --git a/objdb/etcdService.go b/objdb/etcdService.go
index bdfa5998b..c6bd2232d 100644
--- a/objdb/etcdService.go
+++ b/objdb/etcdService.go
@@ -26,6 +26,7 @@ import (
 
 	log "github.com/Sirupsen/logrus"
 	"github.com/coreos/etcd/client"
+	"reflect"
 )
 
 // Service state
@@ -194,14 +195,22 @@ func (ep *EtcdClient) WatchService(name string, eventCh chan WatchServiceEvent,
 		for {
 			// Block till next watch event
 			etcdRsp, err := watcher.Next(watchCtx)
-			if err != nil && err.Error() == client.ErrClusterUnavailable.Error() {
-				log.Infof("Stopping watch on key %s", keyName)
-				return
-			} else if err != nil {
-				log.Errorf("Error %v during watch. Watch thread exiting", err)
-				return
+			if err != nil {
+				log.Infof("Watch %s next failed: %v %v", keyName, reflect.TypeOf(err), err)
+				switch err.(type) {
+				case *client.ClusterError:
+					// retry and wait for etcd cluster to recover!
+					time.Sleep(time.Second * 5)
+				case client.Error:
+					if err.(client.Error).Code == client.ErrorCodeEventIndexCleared {
+						watcher = ep.kapi.Watcher(keyName, &client.WatcherOptions{Recursive: true})
+						log.Errorf("Watch next failed: reset watcher")
+					}
+				default:
+					// do nothing, just retry
+				}
+				continue
 			}
-
 			// Send it to watch channel
 			watchCh <- etcdRsp
 		}
diff --git a/state/etcdstatedriver.go b/state/etcdstatedriver.go
index 8012d046f..f56eb5630 100644
--- a/state/etcdstatedriver.go
+++ b/state/etcdstatedriver.go
@@ -176,16 +176,26 @@ func (d *EtcdStateDriver) ReadAll(baseKey string) ([][]byte, error) {
 	return [][]byte{}, err
 }
 
-func (d *EtcdStateDriver) channelEtcdEvents(watcher client.Watcher, rsps chan [2][]byte) {
+func (d *EtcdStateDriver) channelEtcdEvents(watcher client.Watcher, rsps chan [2][]byte, baseKey string) {
 	for {
 		// block on change notifications
 		etcdRsp, err := watcher.Next(context.Background())
 		if err != nil {
-			log.Errorf("Error %v during watch", err)
-			time.Sleep(time.Second)
+			log.Infof("Watch %s next failed: %v %v", baseKey, reflect.TypeOf(err), err)
+			switch err.(type) {
+			case *client.ClusterError:
+				// retry and wait for etcd cluster to recover!
+				time.Sleep(time.Second * 5)
+			case client.Error:
+				if err.(client.Error).Code == client.ErrorCodeEventIndexCleared {
+					watcher = d.KeysAPI.Watcher(baseKey, &client.WatcherOptions{Recursive: true})
+					log.Errorf("Watch next failed: reset watcher")
+				}
+			default:
+				// do nothing, just retry
+			}
 			continue
 		}
-
 		// XXX: The logic below assumes that the node returned is always a node
 		// of interest. Eg: If we set a watch on /a/b/c, then we are mostly
 		// interested in changes in that directory i.e. changes to /a/b/c/d1..d2
@@ -220,7 +230,7 @@ func (d *EtcdStateDriver) WatchAll(baseKey string, rsps chan [2][]byte) error {
 		return errors.New("etcd watch failed")
 	}
 
-	go d.channelEtcdEvents(watcher, rsps)
+	go d.channelEtcdEvents(watcher, rsps, baseKey)
 
 	return nil
 }