diff --git a/cli/codegen/commands.ts b/cli/codegen/commands.ts
index 33983d71..2bdba2a0 100644
--- a/cli/codegen/commands.ts
+++ b/cli/codegen/commands.ts
@@ -103,12 +103,6 @@ const NEW_OPTIONS: CommandSchema = {
       description: 'Whether to run the command in dry-run mode',
       default: false,
     },
-    {
-      name: 'esm',
-      type: 'boolean',
-      description: 'Whether enable ESM support',
-      default: false,
-    },
   ],
 }
 
diff --git a/cli/docs/new.md b/cli/docs/new.md
index c4341923..ad17bfdb 100644
--- a/cli/docs/new.md
+++ b/cli/docs/new.md
@@ -35,4 +35,3 @@ new NapiCli().new({
 | enableTypeDef        | --enable-type-def        | boolean  | false    | true    | Whether enable the `type-def` feature for typescript definitions auto-generation |
 | enableGithubActions  | --enable-github-actions  | boolean  | false    | true    | Whether generate preconfigured GitHub Actions workflow                           |
 | dryRun               | --dry-run                | boolean  | false    | false   | Whether to run the command in dry-run mode                                       |
-| esm                  | --esm                    | boolean  | false    | false   | Whether enable ESM support                                                       |
diff --git a/cli/src/api/build.ts b/cli/src/api/build.ts
index 11133ae6..06cecaf2 100644
--- a/cli/src/api/build.ts
+++ b/cli/src/api/build.ts
@@ -149,6 +149,7 @@ class Builder {
 
     const controller = new AbortController()
 
+    const watch = this.options.watch
     const buildTask = new Promise<void>((resolve, reject) => {
       const command =
         process.env.CARGO ?? (this.options.useCross ? 'cross' : 'cargo')
@@ -157,7 +158,7 @@ class Builder {
           ...process.env,
           ...this.envs,
         },
-        stdio: 'inherit',
+        stdio: watch ? ['inherit', 'inherit', 'pipe'] : 'inherit',
         cwd: this.cwd,
         signal: controller.signal,
       })
@@ -178,6 +179,15 @@ class Builder {
           }),
         )
       })
+
+      // watch mode only, they are piped through stderr
+      buildProcess.stderr?.on('data', (data) => {
+        const output = data.toString()
+        console.error(output)
+        if (/Finished\s(dev|release)/.test(output)) {
+          this.postBuild().catch(() => {})
+        }
+      })
     })
 
     return {
@@ -207,6 +217,7 @@ class Builder {
           this.crateDir,
           '--',
           'cargo',
+          'build',
         )
         set = true
       }
diff --git a/cli/src/api/new.ts b/cli/src/api/new.ts
index 185ffbd8..667226c1 100644
--- a/cli/src/api/new.ts
+++ b/cli/src/api/new.ts
@@ -146,7 +146,6 @@ function generatePackageJson(options: NewOptions): Output {
       license: options.license,
       engineRequirement: napiEngineRequirement(options.minNodeApiVersion),
       cliVersion: CLI_VERSION,
-      esm: options.esm,
     }),
   }
 }
diff --git a/cli/src/api/templates/package.json.ts b/cli/src/api/templates/package.json.ts
index ea29a607..0d3a9aa6 100644
--- a/cli/src/api/templates/package.json.ts
+++ b/cli/src/api/templates/package.json.ts
@@ -7,7 +7,6 @@ export const createPackageJson = ({
   license,
   engineRequirement,
   cliVersion,
-  esm,
 }: {
   name: string
   binaryName: string
@@ -15,7 +14,6 @@ export const createPackageJson = ({
   license: string
   engineRequirement: string
   cliVersion: string
-  esm: boolean
 }) => {
   const content: CommonPackageJsonFields = {
     name,
@@ -46,23 +44,5 @@ export const createPackageJson = ({
     },
   }
 
-  if (esm) {
-    content.type = 'module'
-    content.main = 'index.cjs'
-    content.module = 'index.js'
-    content.exports = {
-      '.': {
-        import: {
-          default: './index.js',
-          types: './index.d.ts',
-        },
-        require: {
-          default: './index.cjs',
-          types: './index.d.ts',
-        },
-      },
-    }
-  }
-
   return JSON.stringify(content, null, 2)
 }
diff --git a/cli/src/commands/new.ts b/cli/src/commands/new.ts
index 0bb2ec1e..d27beabd 100644
--- a/cli/src/commands/new.ts
+++ b/cli/src/commands/new.ts
@@ -40,7 +40,6 @@ export class NewCommand extends BaseNewCommand {
       return {
         ...cmdOptions,
         name: await this.fetchName(path.parse(cmdOptions.path).base),
-        esm: await this.fetchEnableEsm(),
         minNodeApiVersion: await this.fetchNapiVersion(),
         targets: await this.fetchTargets(),
         license: await this.fetchLicense(),
@@ -132,15 +131,4 @@ export class NewCommand extends BaseNewCommand {
 
     return enableGithubActions
   }
-
-  private async fetchEnableEsm(): Promise<boolean> {
-    const { esm } = await inquirer.prompt({
-      name: 'esm',
-      type: 'confirm',
-      message: 'Enable ESM support',
-      default: this.esm,
-    })
-
-    return esm
-  }
 }
diff --git a/cli/src/def/new.ts b/cli/src/def/new.ts
index d9ff01f2..387eb050 100644
--- a/cli/src/def/new.ts
+++ b/cli/src/def/new.ts
@@ -51,10 +51,6 @@ export abstract class BaseNewCommand extends Command {
     description: 'Whether to run the command in dry-run mode',
   })
 
-  esm = Option.Boolean('--esm', false, {
-    description: 'Whether enable ESM support',
-  })
-
   getOptions() {
     return {
       path: this.$$path,
@@ -67,7 +63,6 @@ export abstract class BaseNewCommand extends Command {
       enableTypeDef: this.enableTypeDef,
       enableGithubActions: this.enableGithubActions,
       dryRun: this.dryRun,
-      esm: this.esm,
     }
   }
 }
@@ -132,12 +127,6 @@ export interface NewOptions {
    * @default false
    */
   dryRun?: boolean
-  /**
-   * Whether enable ESM support
-   *
-   * @default false
-   */
-  esm?: boolean
 }
 
 export function applyDefaultNewOptions(options: NewOptions) {
@@ -150,7 +139,6 @@ export function applyDefaultNewOptions(options: NewOptions) {
     enableTypeDef: true,
     enableGithubActions: true,
     dryRun: false,
-    esm: false,
     ...options,
   }
 }