diff --git a/src/compiler/program.ts b/src/compiler/program.ts
index 3da3c354fb2..3043f6be708 100644
--- a/src/compiler/program.ts
+++ b/src/compiler/program.ts
@@ -862,8 +862,8 @@ namespace ts {
                         const importedFile = findModuleSourceFile(resolution.resolvedFileName, file.imports[i]);
                         if (importedFile && resolution.isExternalLibraryImport) {
                             if (!isExternalModule(importedFile)) {
-                                let start = getTokenPosOfNode(file.imports[i], file)
-                                fileProcessingDiagnostics.add(createFileDiagnostic(file, start, file.imports[i].end - start, Diagnostics.Exported_external_package_typings_file_0_is_not_a_module_Please_contact_the_package_author_to_update_the_package_definition, importedFile.fileName));
+                                let start = getTokenPosOfNode(file.imports[i], file)
+                                fileProcessingDiagnostics.add(createFileDiagnostic(file, start, file.imports[i].end - start, Diagnostics.Exported_external_package_typings_file_0_is_not_a_module_Please_contact_the_package_author_to_update_the_package_definition, importedFile.fileName));
                             }
                             else if (!fileExtensionIs(importedFile.fileName, ".d.ts")) {
                                 let start = getTokenPosOfNode(file.imports[i], file)
diff --git a/src/compiler/tsc.ts b/src/compiler/tsc.ts
index 96759b68250..25e149cf6ca 100644
--- a/src/compiler/tsc.ts
+++ b/src/compiler/tsc.ts
@@ -180,11 +180,18 @@ namespace ts {
                 reportDiagnostic(createCompilerDiagnostic(Diagnostics.The_current_host_does_not_support_the_0_option, "--project"));
                 return sys.exit(ExitStatus.DiagnosticsPresent_OutputsSkipped);
             }
-            configFileName = normalizePath(combinePaths(commandLine.options.project, "tsconfig.json"));
             if (commandLine.fileNames.length !== 0) {
                 reportDiagnostic(createCompilerDiagnostic(Diagnostics.Option_project_cannot_be_mixed_with_source_files_on_a_command_line));
                 return sys.exit(ExitStatus.DiagnosticsPresent_OutputsSkipped);
             }
+
+            let fileOrDirectory = normalizePath(commandLine.options.project);
+            if (!fileOrDirectory || sys.directoryExists(fileOrDirectory)) {
+                configFileName = combinePaths(fileOrDirectory, "tsconfig.json");
+            }
+            else {
+                configFileName = fileOrDirectory;
+            }
         }
         else if (commandLine.fileNames.length === 0 && isJSONSupported()) {
             let searchPath = normalizePath(sys.getCurrentDirectory());