What is the neatest and most efficient way to implement property changed events with Entity Framework 4 with POCO support?

You actually answered your own question. The way to go is modifying T4 template and add level of support you need. If you need some inspiration check default classes generated by entity designer when not using T4 templates or classes generated by Self-tracking entities generator (another T4 template) - they should also use OnPropertyChanged .

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