Docker Compose watch for development means running your app in containers that automatically restart when you change your code files. First, docker compose watch starts your containers and mounts your source code folder inside them. The containers run a command that keeps them alive, waiting for changes. When you edit a file, docker compose watch detects this change and restarts the affected containers so your app updates with the new code. If no changes happen, the containers keep running. When you want to stop, you press Ctrl+C, and docker compose watch stops and removes the containers. This process helps developers see their code changes live without manually restarting containers.