diff --git a/nats/js/object_store.py b/nats/js/object_store.py
index 441e72d3..caa47710 100644
--- a/nats/js/object_store.py
+++ b/nats/js/object_store.py
@@ -495,8 +495,12 @@ async def watch_updates(msg):
             await watcher._updates.put(None)
 
         deliver_policy = None
-        if not include_history:
+        if include_history:
             deliver_policy = api.DeliverPolicy.LAST_PER_SUBJECT
+        else:
+            # Aligning with nats.js on this one, nats.go uses ALL if history is not included
+            # But if history is not desired the watch should only be giving notifications on new entries
+            deliver_policy = api.DeliverPolicy.NEW
 
         watcher._sub = await self._js.subscribe(
             all_meta,
@@ -554,18 +558,37 @@ async def list(
         """
         list will list all the objects in this store.
         """
-        watcher = await self.watch(ignore_deletes=ignore_deletes)
+        all_meta = OBJ_ALL_META_PRE_TEMPLATE.format(bucket=self._name)
         entries = []
 
-        async for entry in watcher:
-            # None entry is used to signal that there is no more info.
-            if not entry:
-                break
-            entries.append(entry)
+        try:
+            # Use a consumer to get all messages
+            sub = await self._js.subscribe(
+                all_meta,
+                ordered_consumer=True,
+                deliver_policy=api.DeliverPolicy.LAST_PER_SUBJECT,
+            )
 
-        await watcher.stop()
+            while True:
+                try:
+                    msg = await asyncio.wait_for(sub.next_msg(), timeout=1.0)
+                    try:
+                        info = api.ObjectInfo.from_response(
+                            json.loads(msg.data)
+                        )
+                        if (not ignore_deletes) or (not info.deleted):
+                            entries.append(info)
+                    except Exception:
+                        # Skip invalid messages
+                        continue
+                except asyncio.TimeoutError:
+                    # No more messages available
+                    break
+                except Exception as e:
+                    raise e
 
-        if not entries:
-            raise NotFoundError
+            await sub.unsubscribe()
+        except Exception as e:
+            raise e
 
         return entries
diff --git a/tests/test_js.py b/tests/test_js.py
index 85f8f556..b0b5b99d 100644
--- a/tests/test_js.py
+++ b/tests/test_js.py
@@ -3912,6 +3912,75 @@ async def error_handler(e):
 
         await nc.close()
 
+    @async_test
+    async def test_object_watch_include_history(self):
+        errors = []
+
+        async def error_handler(e):
+            print("Error:", e, type(e))
+            errors.append(e)
+
+        nc = await nats.connect(error_cb=error_handler)
+        js = nc.jetstream()
+
+        obs = await js.create_object_store(
+            "TEST_FILES",
+            config=nats.js.api.ObjectStoreConfig(description="multi_files"),
+        )
+
+        # Put objects before starting watcher
+        await obs.put("A", b"A")
+        await obs.put("B", b"B")
+        await obs.put("C", b"C")
+
+        # ------------------------------------
+        # Case 1: Watcher with include_history=True
+        # ------------------------------------
+        watcher = await obs.watch(include_history=True)
+
+        # Should receive historical updates immediately
+        e = await watcher.updates()
+        assert e.name == "A"
+        assert e.bucket == "TEST_FILES"
+
+        e = await watcher.updates()
+        assert e.name == "B"
+
+        e = await watcher.updates()
+        assert e.name == "C"
+
+        e = await watcher.updates()
+        assert e is None
+
+        # No new updates yet, expect timeout
+        with pytest.raises(asyncio.TimeoutError):
+            await watcher.updates(timeout=1)
+
+        # ------------------------------------
+        # Case 2: Watcher with include_history=False
+        # ------------------------------------
+        watcher_no_history = await obs.watch(include_history=False)
+
+        # Should receive no updates immediately
+        with pytest.raises(asyncio.TimeoutError):
+            await watcher_no_history.updates(timeout=1)
+
+        # Add a new object after starting the watcher
+        await obs.put("D", b"D")
+
+        # Now the watcher should see this update
+        e = await watcher_no_history.updates()
+        assert e.name == "D"
+
+        e = await watcher_no_history.updates()
+        assert e is None
+
+        # No further updates expected
+        with pytest.raises(asyncio.TimeoutError):
+            await watcher_no_history.updates(timeout=1)
+
+        await nc.close()
+
     @async_test
     async def test_object_list(self):
         errors = []