diff --git a/src/compiler/resolutionCache.ts b/src/compiler/resolutionCache.ts
index e21e81a2e88..1c96dc21f08 100644
--- a/src/compiler/resolutionCache.ts
+++ b/src/compiler/resolutionCache.ts
@@ -9,7 +9,7 @@ namespace ts {
         startRecordingFilesWithChangedResolutions(): void;
         finishRecordingFilesWithChangedResolutions(): Path[];
 
-        resolveModuleNames(moduleNames: string[], containingFile: string, reusedNames: string[] | undefined, logChanges: boolean): ResolvedModuleFull[];
+        resolveModuleNames(moduleNames: string[], containingFile: string, reusedNames: string[] | undefined): ResolvedModuleFull[];
         resolveTypeReferenceDirectives(typeDirectiveNames: string[], containingFile: string): ResolvedTypeReferenceDirective[];
 
         invalidateResolutionOfFile(filePath: Path): void;
@@ -72,7 +72,7 @@ namespace ts {
     type GetResolutionWithResolvedFileName<T extends ResolutionWithFailedLookupLocations = ResolutionWithFailedLookupLocations, R extends ResolutionWithResolvedFileName = ResolutionWithResolvedFileName> =
         (resolution: T) => R;
 
-    export function createResolutionCache(resolutionHost: ResolutionCacheHost, rootDirForResolution: string): ResolutionCache {
+    export function createResolutionCache(resolutionHost: ResolutionCacheHost, rootDirForResolution: string, logChangesWhenResolvingModule: boolean): ResolutionCache {
         let filesWithChangedSetOfUnresolvedImports: Path[] | undefined;
         let filesWithInvalidatedResolutions: Map<true> | undefined;
         let allFilesHaveInvalidatedResolution = false;
@@ -306,12 +306,12 @@ namespace ts {
             );
         }
 
-        function resolveModuleNames(moduleNames: string[], containingFile: string, reusedNames: string[] | undefined, logChanges: boolean): ResolvedModuleFull[] {
+        function resolveModuleNames(moduleNames: string[], containingFile: string, reusedNames: string[] | undefined): ResolvedModuleFull[] {
             return resolveNamesWithLocalCache(
                 moduleNames, containingFile,
                 resolvedModuleNames, perDirectoryResolvedModuleNames,
                 resolveModuleName, getResolvedModule,
-                reusedNames, logChanges
+                reusedNames, logChangesWhenResolvingModule
             );
         }
 
diff --git a/src/compiler/watch.ts b/src/compiler/watch.ts
index e00a6751a70..c9b520c3777 100644
--- a/src/compiler/watch.ts
+++ b/src/compiler/watch.ts
@@ -171,7 +171,7 @@ namespace ts {
         afterProgramCreate(host: DirectoryStructureHost, program: Program): void;
 
         /** Optional module name resolver */
-        moduleNameResolver?(moduleNames: string[], containingFile: string, reusedNames?: string[]): ResolvedModule[];
+        resolveModuleNames?(moduleNames: string[], containingFile: string, reusedNames?: string[]): ResolvedModule[];
     }
 
     /**
@@ -310,9 +310,6 @@ namespace ts {
         const getCachedDirectoryStructureHost = configFileName && (() => directoryStructureHost as CachedDirectoryStructureHost);
         const getCanonicalFileName = createGetCanonicalFileName(system.useCaseSensitiveFileNames);
         let newLine = getNewLineCharacter(compilerOptions, system);
-        const resolveModuleNames: (moduleNames: string[], containingFile: string, reusedNames?: string[]) => ResolvedModule[] = host.moduleNameResolver ?
-            (moduleNames, containingFile, reusedNames) => host.moduleNameResolver(moduleNames, containingFile, reusedNames) :
-            (moduleNames, containingFile, reusedNames?) => resolutionCache.resolveModuleNames(moduleNames, containingFile, reusedNames, /*logChanges*/ false);
 
         const compilerHost: CompilerHost & ResolutionCacheHost = {
             // Members for CompilerHost
@@ -332,8 +329,6 @@ namespace ts {
             getEnvironmentVariable: name => system.getEnvironmentVariable ? system.getEnvironmentVariable(name) : "",
             getDirectories: path => directoryStructureHost.getDirectories(path),
             realpath,
-            resolveTypeReferenceDirectives: (typeDirectiveNames, containingFile) => resolutionCache.resolveTypeReferenceDirectives(typeDirectiveNames, containingFile),
-            resolveModuleNames,
             onReleaseOldSourceFile,
             // Members for ResolutionCacheHost
             toPath,
@@ -351,8 +346,14 @@ namespace ts {
         // Cache for the module resolution
         const resolutionCache = createResolutionCache(compilerHost, configFileName ?
             getDirectoryPath(getNormalizedAbsolutePath(configFileName, getCurrentDirectory())) :
-            getCurrentDirectory()
+            getCurrentDirectory(),
+            /*logChangesWhenResolvingModule*/ false
         );
+        // Resolve module using host module resolution strategy if provided otherwise use resolution cache to resolve module names
+        compilerHost.resolveModuleNames = host.resolveModuleNames ?
+            host.resolveModuleNames.bind(host) :
+            resolutionCache.resolveModuleNames.bind(resolutionCache);
+        compilerHost.resolveTypeReferenceDirectives = resolutionCache.resolveTypeReferenceDirectives.bind(resolutionCache);
 
         synchronizeProgram();
 
diff --git a/src/server/project.ts b/src/server/project.ts
index 9b9dbb99436..800e93f1949 100644
--- a/src/server/project.ts
+++ b/src/server/project.ts
@@ -237,7 +237,7 @@ namespace ts.server {
             }
 
             // Use the current directory as resolution root only if the project created using current directory string
-            this.resolutionCache = createResolutionCache(this, currentDirectory && this.currentDirectory);
+            this.resolutionCache = createResolutionCache(this, currentDirectory && this.currentDirectory, /*logChangesWhenResolvingModule*/ true);
             this.languageService = createLanguageService(this, this.documentRegistry);
             if (!languageServiceEnabled) {
                 this.disableLanguageService();
@@ -353,7 +353,7 @@ namespace ts.server {
         }
 
         resolveModuleNames(moduleNames: string[], containingFile: string, reusedNames?: string[]): ResolvedModuleFull[] {
-            return this.resolutionCache.resolveModuleNames(moduleNames, containingFile, reusedNames, /*logChanges*/ true);
+            return this.resolutionCache.resolveModuleNames(moduleNames, containingFile, reusedNames);
         }
 
         resolveTypeReferenceDirectives(typeDirectiveNames: string[], containingFile: string): ResolvedTypeReferenceDirective[] {
diff --git a/tests/baselines/reference/api/typescript.d.ts b/tests/baselines/reference/api/typescript.d.ts
index df02d53209c..c82599c18f2 100644
--- a/tests/baselines/reference/api/typescript.d.ts
+++ b/tests/baselines/reference/api/typescript.d.ts
@@ -3828,7 +3828,7 @@ declare namespace ts {
         /** Custom action after new program creation is successful */
         afterProgramCreate(host: DirectoryStructureHost, program: Program): void;
         /** Optional module name resolver */
-        moduleNameResolver?(moduleNames: string[], containingFile: string, reusedNames?: string[]): ResolvedModule[];
+        resolveModuleNames?(moduleNames: string[], containingFile: string, reusedNames?: string[]): ResolvedModule[];
     }
     /**
      * Host to create watch with root files and options