diff --git a/src/uu/touch/src/touch.rs b/src/uu/touch/src/touch.rs
index 102a60d06de..3c85d996ec5 100644
--- a/src/uu/touch/src/touch.rs
+++ b/src/uu/touch/src/touch.rs
@@ -17,7 +17,7 @@ use jiff::tz::TimeZone;
 use jiff::{Timestamp, ToSpan, Zoned};
 use std::borrow::Cow;
 use std::ffi::{OsStr, OsString};
-use std::fs::{self, File};
+use std::fs;
 use std::io::{Error, ErrorKind};
 use std::path::{Path, PathBuf};
 use std::time::SystemTime;
@@ -476,7 +476,13 @@ fn touch_file(
             return Ok(());
         }
 
-        if let Err(e) = File::create(path) {
+        // Create empty file without truncation for inotify compatibility
+        // Use create_new to avoid O_TRUNC behavior that interferes with inotify
+        if let Err(e) = fs::OpenOptions::new()
+            .write(true)
+            .create_new(true)
+            .open(path)
+        {
             // we need to check if the path is the path to a directory (ends with a separator)
             // we can't use File::create to create a directory
             // we cannot use path.is_dir() because it calls fs::metadata which we already called
diff --git a/tests/by-util/test_touch.rs b/tests/by-util/test_touch.rs
index 29425d6aa6c..afbbf3493c0 100644
--- a/tests/by-util/test_touch.rs
+++ b/tests/by-util/test_touch.rs
@@ -1061,3 +1061,44 @@ fn test_touch_device_files() {
         .succeeds()
         .no_output();
 }
+
+#[test]
+#[cfg(unix)]
+fn test_touch_inotify_compatibility() {
+    // Regression test for inotify file change detection issue
+    // Ensures touch creates files with GNU-compatible flags (without O_TRUNC)
+    // that don't interfere with inotify event generation
+
+    let (at, mut ucmd) = at_and_ucmd!();
+    let test_file = "inotify_test.txt";
+
+    // Create new file
+    ucmd.arg(test_file).succeeds().no_output();
+    assert!(at.file_exists(test_file));
+
+    // Verify file creation uses correct flags by checking it doesn't truncate existing content
+    let initial_content = "test content";
+    at.write(test_file, initial_content);
+
+    // Touch existing file should not truncate content
+    new_ucmd!().arg(at.plus(test_file)).succeeds().no_output();
+    assert_eq!(at.read(test_file), initial_content);
+
+    // Verify timestamp changes are properly applied
+    let (atime_before, mtime_before) = get_file_times(&at, test_file);
+
+    std::thread::sleep(std::time::Duration::from_secs(1));
+    new_ucmd!().arg(at.plus(test_file)).succeeds().no_output();
+
+    let (atime_after, mtime_after) = get_file_times(&at, test_file);
+
+    // Timestamps should be updated (inotify compatibility ensures proper event generation)
+    assert!(
+        mtime_after > mtime_before,
+        "Modification time should be updated for inotify compatibility"
+    );
+    assert!(
+        atime_after >= atime_before,
+        "Access time should be updated or preserved"
+    );
+}