diff --git a/substrate/Cargo.lock b/substrate/Cargo.lock
index f3c9672e37..ac74b57a52 100644
--- a/substrate/Cargo.lock
+++ b/substrate/Cargo.lock
@@ -520,9 +520,9 @@ checksum = "4964518bd3b4a8190e832886cdc0da9794f12e8e6c1613a9e90ff331c4c8724b"
 
 [[package]]
 name = "cargo_metadata"
-version = "0.9.1"
+version = "0.10.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "46e3374c604fb39d1a2f35ed5e4a4e30e60d01fab49446e08f1b3e9a90aef202"
+checksum = "b8de60b887edf6d74370fc8eb177040da4847d971d6234c7b13a6da324ef0caf"
 dependencies = [
  "semver 0.9.0",
  "serde",
@@ -7021,18 +7021,18 @@ checksum = "f638d531eccd6e23b980caf34876660d38e265409d8e99b397ab71eb3612fad0"
 
 [[package]]
 name = "serde"
-version = "1.0.106"
+version = "1.0.110"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "36df6ac6412072f67cf767ebbde4133a5b2e88e76dc6187fa7104cd16f783399"
+checksum = "99e7b308464d16b56eba9964e4972a3eee817760ab60d88c3f86e1fecb08204c"
 dependencies = [
  "serde_derive",
 ]
 
 [[package]]
 name = "serde_derive"
-version = "1.0.106"
+version = "1.0.110"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "9e549e3abf4fb8621bd1609f11dfc9f5e50320802273b12f3811a67e6716ea6c"
+checksum = "818fbf6bfa9a42d3bfcaca148547aa00c7b915bec71d1757aa2d44ca68771984"
 dependencies = [
  "proc-macro2",
  "quote 1.0.3",
diff --git a/substrate/utils/wasm-builder/Cargo.toml b/substrate/utils/wasm-builder/Cargo.toml
index 2b7a632b55..74e5f20524 100644
--- a/substrate/utils/wasm-builder/Cargo.toml
+++ b/substrate/utils/wasm-builder/Cargo.toml
@@ -14,10 +14,10 @@ targets = ["x86_64-unknown-linux-gnu"]
 
 [dependencies]
 build-helper = "0.1.1"
-cargo_metadata = "0.9.0"
+cargo_metadata = "0.10.0"
 tempfile = "3.1.0"
 toml = "0.5.4"
-walkdir = "2.2.9"
+walkdir = "2.3.1"
 fs2 = "0.4.3"
 wasm-gc-api = "0.1.11"
 atty = "0.2.13"
diff --git a/substrate/utils/wasm-builder/src/wasm_project.rs b/substrate/utils/wasm-builder/src/wasm_project.rs
index d1c926c904..69dbc7882b 100644
--- a/substrate/utils/wasm-builder/src/wasm_project.rs
+++ b/substrate/utils/wasm-builder/src/wasm_project.rs
@@ -26,7 +26,7 @@ use toml::value::Table;
 
 use build_helper::rerun_if_changed;
 
-use cargo_metadata::MetadataCommand;
+use cargo_metadata::{MetadataCommand, Metadata};
 
 use walkdir::WalkDir;
 
@@ -342,11 +342,7 @@ fn project_enabled_features(
 ///
 /// # Returns
 /// The path to the created project.
-fn create_project(
-	cargo_manifest: &Path,
-	wasm_workspace: &Path,
-	crate_metadata: &cargo_metadata::Metadata,
-) -> PathBuf {
+fn create_project(cargo_manifest: &Path, wasm_workspace: &Path, crate_metadata: &Metadata) -> PathBuf {
 	let crate_name = get_crate_name(cargo_manifest);
 	let crate_path = cargo_manifest.parent().expect("Parent path exists; qed");
 	let wasm_binary = get_wasm_binary_name(cargo_manifest);
@@ -519,22 +515,33 @@ fn generate_rerun_if_changed_instructions(
 		.exec()
 		.expect("`cargo metadata` can not fail!");
 
-	// Start with the dependencies of the crate we want to compile for wasm.
-	let mut dependencies = metadata.packages
+	let package = metadata.packages
 		.iter()
 		.find(|p| p.manifest_path == cargo_manifest)
-		.expect("The crate package is contained in its own metadata; qed")
-		.dependencies
-		.iter()
-		.collect::<Vec<_>>();
+		.expect("The crate package is contained in its own metadata; qed");
+
+	// Start with the dependencies of the crate we want to compile for wasm.
+	let mut dependencies = package.dependencies.iter().collect::<Vec<_>>();
 
 	// Collect all packages by follow the dependencies of all packages we find.
 	let mut packages = HashSet::new();
+	packages.insert(DeduplicatePackage::from(package));
+
 	while let Some(dependency) = dependencies.pop() {
+		let path_or_git_dep = dependency.source
+			.as_ref()
+			.map(|s| s.starts_with("git+"))
+			.unwrap_or(true);
+
 		let package = metadata.packages
 			.iter()
 			.filter(|p| !p.manifest_path.starts_with(wasm_workspace))
-			.find(|p| dependency.req.matches(&p.version) && dependency.name == p.name);
+			.find(|p| {
+				// Check that the name matches and that the version matches or this is
+				// a git or path dep. A git or path dependency can only occur once, so we don't
+				// need to check the version.
+				(path_or_git_dep || dependency.req.matches(&p.version)) && dependency.name == p.name
+			});
 
 		if let Some(package) = package {
 			if packages.insert(DeduplicatePackage::from(package)) {
@@ -544,21 +551,7 @@ fn generate_rerun_if_changed_instructions(
 	}
 
 	// Make sure that if any file/folder of a dependency change, we need to rerun the `build.rs`
-	packages.into_iter()
-		.filter(|p| !p.manifest_path.starts_with(wasm_workspace))
-		.for_each(|package| {
-			let mut manifest_path = package.manifest_path.clone();
-			if manifest_path.ends_with("Cargo.toml") {
-				manifest_path.pop();
-			}
-
-			rerun_if_changed(&manifest_path);
-
-			WalkDir::new(manifest_path)
-				.into_iter()
-				.filter_map(|p| p.ok())
-				.for_each(|p| rerun_if_changed(p.path()));
-		});
+	packages.iter().for_each(package_rerun_if_changed);
 
 	// Register our env variables
 	println!("cargo:rerun-if-env-changed={}", crate::SKIP_BUILD_ENV);
@@ -568,8 +561,32 @@ fn generate_rerun_if_changed_instructions(
 	println!("cargo:rerun-if-env-changed={}", crate::WASM_BUILD_TOOLCHAIN);
 }
 
-/// Copy the WASM binary to the target directory set in `WASM_TARGET_DIRECTORY` environment variable.
-/// If the variable is not set, this is a no-op.
+/// Track files and paths related to the given package to rerun `build.rs` on any relevant change.
+fn package_rerun_if_changed(package: &DeduplicatePackage) {
+	let mut manifest_path = package.manifest_path.clone();
+	if manifest_path.ends_with("Cargo.toml") {
+		manifest_path.pop();
+	}
+
+	WalkDir::new(&manifest_path)
+		.into_iter()
+		.filter_entry(|p| {
+			// Ignore this entry if it is a directory that contains a `Cargo.toml` that is not the
+			// `Cargo.toml` related to the current package. This is done to ignore sub-crates of a crate.
+			// If such a sub-crate is a dependency, it will be processed independently anyway.
+			p.path() == manifest_path
+				|| !p.path().is_dir()
+				|| !p.path().join("Cargo.toml").exists()
+		})
+		.filter_map(|p| p.ok().map(|p| p.into_path()))
+		.filter(|p| {
+			p.is_dir() || p.extension().map(|e| e == "rs" || e == "toml").unwrap_or_default()
+		})
+		.for_each(|p| rerun_if_changed(p));
+}
+
+/// Copy the WASM binary to the target directory set in `WASM_TARGET_DIRECTORY` environment
+/// variable. If the variable is not set, this is a no-op.
 fn copy_wasm_to_target_directory(cargo_manifest: &Path, wasm_binary: &WasmBinary) {
 	let target_dir = match env::var(crate::WASM_TARGET_DIRECTORY) {
 		Ok(path) => PathBuf::from(path),