diff --git a/firebase-vscode/CHANGELOG.md b/firebase-vscode/CHANGELOG.md
index dd3ed825a44..74a4e82a9ed 100644
--- a/firebase-vscode/CHANGELOG.md
+++ b/firebase-vscode/CHANGELOG.md
@@ -1,5 +1,8 @@
 ## NEXT
 
+- [Fixed] Data Connect emulator issues properly streamed on startup
+- [Fixed] Data Connect schema reloads consistently
+
 ## 0.4.0
 
 - Updated internal firebase-tools dependency to 13.13.0
diff --git a/firebase-vscode/src/data-connect/emulator-stream.ts b/firebase-vscode/src/data-connect/emulator-stream.ts
index 840bf8ea106..aaba3180d37 100644
--- a/firebase-vscode/src/data-connect/emulator-stream.ts
+++ b/firebase-vscode/src/data-connect/emulator-stream.ts
@@ -10,6 +10,7 @@ enum Kind {
   SQL_CONNECTION = "SQL_CONNECTION",
   SQL_MIGRATION = "SQL_MIGRATION",
   VERTEX_AI = "VERTEX_AI",
+  FILE_RELOAD = "FILE_RELOAD",
 }
 enum Severity {
   SEVERITY_UNSPECIFIED = "SEVERITY_UNSPECIFIED",
@@ -36,13 +37,15 @@ export async function runEmulatorIssuesStream(
   configs: ResolvedDataConnectConfigs,
   fdcEndpoint: string,
   isPostgresEnabled: Signal<boolean>,
+  schemaReloadFunc: () => void,
 ) {
   const obsErrors = await getEmulatorIssuesStream(configs, fdcEndpoint);
   const obsConverter = {
     next(nextResponse: EmulatorIssueResponse) {
       if (nextResponse.result?.issues?.length) {
         for (const issue of nextResponse.result.issues) {
-          displayAndHandleIssue(issue, isPostgresEnabled);
+          console.log("HAROLD: ", issue)
+          displayAndHandleIssue(issue, isPostgresEnabled, schemaReloadFunc);
         }
       }
     },
@@ -59,12 +62,14 @@ export async function runEmulatorIssuesStream(
 /**
  * Based on the severity of the issue, either log, display notification, or display interactive popup to the user
  */
-export function displayAndHandleIssue(issue: EmulatorIssue, isPostgresEnabled: Signal<boolean>) {
+export function displayAndHandleIssue(
+  issue: EmulatorIssue,
+  isPostgresEnabled: Signal<boolean>,
+  schemaReloadFunc: () => void,
+) {
   const issueMessage = `Data Connect Emulator: ${issue.kind.toString()} - ${issue.message}`;
   if (issue.severity === Severity.ALERT) {
     vscode.window.showErrorMessage(issueMessage);
-  } else if (issue.severity === Severity.NOTICE) {
-    vscode.window.showWarningMessage(issueMessage);
   }
   emulatorOutputChannel.appendLine(issueMessage);
 
@@ -72,6 +77,9 @@ export function displayAndHandleIssue(issue: EmulatorIssue, isPostgresEnabled: S
   if (issue.kind === Kind.SQL_CONNECTION) {
     isPostgresEnabled.value = false;
   }
+  if (issue.kind === Kind.FILE_RELOAD) {
+    schemaReloadFunc();
+  }
 }
 
 /**
diff --git a/firebase-vscode/src/data-connect/emulator.ts b/firebase-vscode/src/data-connect/emulator.ts
index 69f30a30406..2e1dbad0b61 100644
--- a/firebase-vscode/src/data-connect/emulator.ts
+++ b/firebase-vscode/src/data-connect/emulator.ts
@@ -12,8 +12,6 @@ import { dataConnectConfigs } from "./config";
 import { runEmulatorIssuesStream } from "./emulator-stream";
 import { runDataConnectCompiler } from "./core-compiler";
 import { pluginLogger } from "../logger-wrapper";
-import { Emulators, getEmulatorDetails, listRunningEmulators } from "../cli";
-import { emulatorOutputChannel } from "./emulator-stream";
 
 /** FDC-specific emulator logic */
 export class DataConnectEmulatorController implements vscode.Disposable {
@@ -27,14 +25,19 @@ export class DataConnectEmulatorController implements vscode.Disposable {
 
     // on emulator restart, re-connect
     dataConnectEmulatorEvents.on("restart", () => {
-      pluginLogger.log("Emulator started");
+      pluginLogger.log("Emulator restarted");
       this.isPostgresEnabled.value = false;
       this.connectToEmulator();
     });
 
     this.subs.push(
       broker.on("connectToPostgres", () => this.connectToPostgres()),
-
+      // TODO: This is assuming only dataconnect emulator will run
+      effect(() => {
+        if (this.emulatorsController.emulators.value.status === "running") {
+          this.connectToEmulator();
+        }
+      }),
       // Notify webviews when the emulator status changes
       effect(() => {
         if (this.isPostgresEnabled.value) {
@@ -119,47 +122,18 @@ export class DataConnectEmulatorController implements vscode.Disposable {
 
   // Commands to run after the emulator is started successfully
   private async connectToEmulator() {
-    this.schemaReload();
     const configs = dataConnectConfigs.value?.tryReadValue;
 
     runEmulatorIssuesStream(
       configs,
       this.emulatorsController.getLocalEndpoint().value,
       this.isPostgresEnabled,
+      this.schemaReload,
     );
     runDataConnectCompiler(
       configs,
       this.emulatorsController.getLocalEndpoint().value,
     );
-
-    this.setupOutputChannel();
-  }
-
-  private setupOutputChannel() {
-    if (
-      listRunningEmulators().filter((emulatorInfos) => {
-        emulatorInfos.name === Emulators.DATACONNECT;
-      })
-    ) {
-      const dataConnectEmulatorDetails = getEmulatorDetails(
-        Emulators.DATACONNECT,
-      );
-
-      // Child process is only available when emulator is started through vscode
-      if (dataConnectEmulatorDetails.instance) {
-        dataConnectEmulatorDetails.instance.stdout?.on("data", (data) => {
-          emulatorOutputChannel.appendLine("DEBUG: " + data.toString());
-        });
-        // TODO: Utilize streaming api to iniate schema reloads
-        dataConnectEmulatorDetails.instance.stderr?.on("data", (data) => {
-          if (data.toString().includes("Finished reloading")) {
-            this.schemaReload();
-          } else {
-            emulatorOutputChannel.appendLine("ERROR: " + data.toString());
-          }
-        });
-      }
-    }
   }
 
   dispose() {