diff --git a/Cargo.lock b/Cargo.lock
index b134e342c6fd..19c245d40d0e 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -168,9 +168,9 @@ checksum = "70033777eb8b5124a81a1889416543dddef2de240019b674c81285a2635a7e1e"
 
 [[package]]
 name = "anyhow"
-version = "1.0.100"
+version = "1.0.103"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "a23eb6b1614318a8071c9b2521f36b424b2c83db5eb3a0fead4a6c0809af6e61"
+checksum = "2a4385e2e34eb35d6b3efe798b9eb88096925d87726c0798709bf56d9ed84af3"
 
 [[package]]
 name = "approx"
@@ -1574,9 +1574,9 @@ dependencies = [
 
 [[package]]
 name = "crossbeam-epoch"
-version = "0.9.18"
+version = "0.9.20"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "5b82ac4a3c2ca9c3460964f020e1402edd5753411d7737aa39c3714ad1b5420e"
+checksum = "2d6914041f254d6e9176c01941b21115dcfb7089e55135a35411081bd106ef3f"
 dependencies = [
  "crossbeam-utils",
 ]
diff --git a/crates/swc_cli_impl/tests/issues.rs b/crates/swc_cli_impl/tests/issues.rs
index 650592e9c118..27d127b85e2b 100644
--- a/crates/swc_cli_impl/tests/issues.rs
+++ b/crates/swc_cli_impl/tests/issues.rs
@@ -763,6 +763,55 @@ fn issue_4017_watch_out_file_rebuilds_single_output() -> Result<()> {
     Ok(())
 }
 
+#[test]
+fn issue_10524_watch_out_file_overwrites_rebuilt_output() -> Result<()> {
+    let sandbox = TempDir::new()?;
+    let source_path = sandbox.path().join("simple.js");
+    let output_path = sandbox.path().join("output.js");
+
+    fs::write(&source_path, "console.log(\"Hello, world!!\");\n")?;
+
+    let mut cmd = cli()?;
+    cmd.current_dir(&sandbox)
+        .arg("compile")
+        .arg("--watch")
+        .arg("--out-file")
+        .arg("output.js")
+        .arg("simple.js");
+
+    let mut child = spawn_watch_command(&mut cmd)?;
+
+    wait_for("initial out-file watch output", || {
+        Ok(fs::read_to_string(&output_path)
+            .map(|content| content.contains("Hello, world!!"))
+            .unwrap_or(false))
+    })?;
+    wait_for("watch process to stay alive", || {
+        Ok(child.try_wait()?.is_none())
+    })?;
+
+    fs::write(&source_path, "console.log(\"Hello, world 2!!\");\n")?;
+
+    wait_for("rebuilt out-file output", || {
+        Ok(fs::read_to_string(&output_path)
+            .map(|content| content.contains("Hello, world 2!!"))
+            .unwrap_or(false))
+    })?;
+
+    let output = fs::read_to_string(&output_path)?;
+    assert!(
+        !output.contains("Hello, world!!"),
+        "Expected rebuilt out-file output to drop stale content. Got: {output}"
+    );
+    assert_eq!(
+        output.matches("console.log").count(),
+        1,
+        "Expected rebuilt out-file output to be overwritten, not appended. Got: {output}"
+    );
+
+    Ok(())
+}
+
 #[test]
 fn issue_4017_watch_out_file_drops_deleted_explicit_inputs() -> Result<()> {
     let sandbox = TempDir::new()?;