diff --git a/demo/main.js b/demo/client.js
similarity index 100%
rename from demo/main.js
rename to demo/client.js
diff --git a/demo/index.html b/demo/index.html
index fff77d09..62ddfcee 100644
--- a/demo/index.html
+++ b/demo/index.html
@@ -33,6 +33,6 @@
     <hr/>
     <p><strong>Attention:</strong> The demo is a barebones implementation and is designed for the development and evaluation of xterm.js only. Exposing the demo to the public as is would introduce security risks for the host.</p>
     <button id="dispose" title="This is used to testing memory leaks">Dispose terminal</button>
-    <script src="dist/bundle.js" defer ></script>
+    <script src="dist/client-bundle.js" defer ></script>
   </body>
 </html>
diff --git a/demo/app.js b/demo/server.js
similarity index 91%
rename from demo/app.js
rename to demo/server.js
index 7604e9cd..0aa9deef 100644
--- a/demo/app.js
+++ b/demo/server.js
@@ -17,12 +17,8 @@ app.get('/style.css', function(req, res){
   res.sendFile(__dirname + '/style.css');
 });
 
-app.get('/dist/bundle.js', function(req, res){
-  res.sendFile(__dirname + '/dist/bundle.js');
-});
-
-app.get('/dist/bundle.js.map', function(req, res){
-  res.sendFile(__dirname + '/dist/bundle.js.map');
+app.get('/dist/client-bundle.js', function(req, res){
+  res.sendFile(__dirname + '/dist/client-bundle.js');
 });
 
 app.post('/terminals', function (req, res) {
diff --git a/demo/start.js b/demo/start.js
new file mode 100644
index 00000000..018eb985
--- /dev/null
+++ b/demo/start.js
@@ -0,0 +1,37 @@
+/**
+ * Copyright (c) 2018 The xterm.js authors. All rights reserved.
+ * @license MIT
+ *
+ * This file is the entry point for browserify.
+ */
+
+const cp = require('child_process');
+const path = require('path');
+const webpack = require('webpack');
+
+// Launch server
+cp.spawn('node', [path.resolve(__dirname, 'server.js')], { stdio: 'inherit' });
+
+// Build/watch client source
+const clientConfig = {
+  entry: path.resolve(__dirname, 'client.js'),
+  devtool: 'inline-source-map',
+  output: {
+    filename: 'client-bundle.js',
+    path: path.resolve(__dirname, 'dist')
+  },
+  mode: 'development',
+  watch: true
+};
+const compiler = webpack(clientConfig);
+
+compiler.watch({
+  // Example watchOptions
+  aggregateTimeout: 300,
+  poll: undefined
+}, (err, stats) => {
+  // Print watch/build result here...
+  console.log(stats.toString({
+    colors: true
+  }));
+});
diff --git a/demo/tsconfig.json b/demo/tsconfig.json
new file mode 100644
index 00000000..8e72b6dd
--- /dev/null
+++ b/demo/tsconfig.json
@@ -0,0 +1,8 @@
+{
+  "compilerOptions": {
+    "module": "commonjs",
+    "target": "es5",
+    "rootDir": ".",
+    "sourceMap": true
+  },
+}