diff --git a/controller/watcher.go b/controller/watcher.go
index 7e1e38958..ed092c31e 100644
--- a/controller/watcher.go
+++ b/controller/watcher.go
@@ -1,13 +1,17 @@
 package controller
 
 import (
+	"encoding/json"
+	"fmt"
 	"math/rand"
+	"reflect"
 	"time"
 
 	"github.com/hashicorp/consul-terraform-sync/config"
 	"github.com/hashicorp/consul-terraform-sync/logging"
 	"github.com/hashicorp/consul-terraform-sync/retry"
 	"github.com/hashicorp/hcat"
+	"github.com/hashicorp/hcat/events"
 )
 
 const (
@@ -63,6 +67,7 @@ func newWatcher(conf *config.Config, maxRetries int) (*hcat.Watcher, error) {
 		Clients:         clients,
 		Cache:           hcat.NewStore(),
 		ConsulRetryFunc: wr.retryConsul,
+		EventHandler:    newWatcherEventHandler(logging.Global().Named(hcatLogSystemName)),
 	}), nil
 }
 
@@ -124,3 +129,40 @@ func setVaultClient(clients *hcat.ClientSet, conf *config.Config) error {
 
 	return clients.AddVault(vault)
 }
+
+func newWatcherEventHandler(logger logging.Logger) events.EventHandler {
+	return func(e events.Event) {
+		// Log events at different log levels based on the type
+		var level logging.Level
+		switch e.(type) {
+		case events.Trace:
+			// Only show hcat Trace events when trace logging is enabled.
+			level = logging.Trace
+		default:
+			// Everything else is shown when debug is enabled.
+			level = logging.Debug
+		}
+
+		// Default to emitting the go format for the event.
+		event := fmt.Sprintf("%+v", e)
+
+		// If the output log level is Trace, then emit the json format for the event.
+		// This could be very large in certain circumstances, because it displays
+		// nested data structures.
+		if logger.IsTrace() {
+			b, err := json.Marshal(e)
+			if err != nil {
+				logger.Warn("Unexpected error marshalling event to json", "error", err, "event", e)
+				return
+			}
+			event = string(b)
+		}
+
+		// Emit the log and include the type name, if possible.
+		tName := "nil"
+		if t := reflect.TypeOf(e); t != nil {
+			tName = t.Name()
+		}
+		logger.Log(level, "event received", "type", tName, "event", event)
+	}
+}
diff --git a/controller/watcher_test.go b/controller/watcher_test.go
index aff034c5e..2f56009cd 100644
--- a/controller/watcher_test.go
+++ b/controller/watcher_test.go
@@ -1,11 +1,17 @@
 package controller
 
 import (
+	"bytes"
+	"encoding/json"
+	"fmt"
 	"math/rand"
 	"testing"
 	"time"
 
+	"github.com/hashicorp/consul-terraform-sync/logging"
+	"github.com/hashicorp/hcat/events"
 	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
 )
 
 func TestWatchRetry_retryConsul(t *testing.T) {
@@ -55,3 +61,42 @@ func TestWatchRetry_retryConsul(t *testing.T) {
 		})
 	}
 }
+
+func Test_newWatcherEventHandler(t *testing.T) {
+	toJson := func(v any) string {
+		b, err := json.Marshal(v)
+		require.NoError(t, err)
+		return string(b)
+	}
+	toGo := func(v any) string {
+		return fmt.Sprintf("%+v", v)
+	}
+
+	testCases := []struct {
+		logLevel   string
+		shouldLog  bool
+		findString func(v any) string
+		event      events.Event
+	}{
+		{"TRACE", true, toJson, events.Trace{ID: "logged"}},
+		{"DEBUG", false, toGo, events.Trace{ID: "not logged"}},
+		{"TRACE", true, toJson, events.NoNewData{ID: "logged"}},
+		{"DEBUG", true, toGo, events.NewData{ID: "logged"}},
+		{"INFO", false, toGo, events.RetryAttempt{ID: "not logged"}},
+		{"DEBUG", true, func(v any) string { return "type=nil" }, nil},
+	}
+
+	for _, tc := range testCases {
+		var buf bytes.Buffer
+		logger := logging.NewTestLogger(tc.logLevel, &buf)
+		handler := newWatcherEventHandler(logger)
+		handler(tc.event)
+		toFind := tc.findString(tc.event)
+		if tc.shouldLog {
+			assert.Contains(t, buf.String(), toFind)
+		} else {
+			assert.NotContains(t, buf.String(), toFind)
+			assert.Equal(t, "", buf.String())
+		}
+	}
+}
diff --git a/logging/logging.go b/logging/logging.go
index cc41e91d8..f28bf51dd 100644
--- a/logging/logging.go
+++ b/logging/logging.go
@@ -17,8 +17,19 @@ var Levels = []string{"TRACE", "DEBUG", "INFO", "WARN", "ERR"}
 // it is set by the Setup() function and is shared with all other setup variations (i.e. SetupLocal())
 var LogLevel = ""
 
+// Alias the hclog levels so that the hclog package doesn't need to be exposed for `logger.Log(...)` calls.
+type Level = hclog.Level
+
 const (
 	defaultLogLevel = "INFO"
+
+	NoLevel Level = hclog.NoLevel
+	Trace   Level = hclog.Trace
+	Debug   Level = hclog.Debug
+	Info    Level = hclog.Info
+	Warn    Level = hclog.Warn
+	Error   Level = hclog.Error
+	Off     Level = hclog.Off
 )
 
 // Logger is a type alias for hclog.Logger