diff --git a/src/harness/unittests/tsserverProjectSystem.ts b/src/harness/unittests/tsserverProjectSystem.ts
index 188a663b650..fe7a2095b86 100644
--- a/src/harness/unittests/tsserverProjectSystem.ts
+++ b/src/harness/unittests/tsserverProjectSystem.ts
@@ -6503,7 +6503,7 @@ namespace ts.projectSystem {
                 path: `${currentDirectory}/package.json`,
                 content: JSON.stringify({
                     devDependencies: {
-                        "pkgcurrentdirectory": ""
+                        pkgcurrentdirectory: ""
                     },
                 })
             };
@@ -6555,6 +6555,9 @@ namespace ts.projectSystem {
 
             // Ensure that we use result from types cache when getting ls
             assert.isDefined(project.getLanguageService());
+
+            // Verify that the pkgcurrentdirectory from the current directory isnt picked up
+            checkProjectActualFiles(project, [file.path]);
         });
     });
 }
diff --git a/src/server/utilities.ts b/src/server/utilities.ts
index d76ff1bf6d0..c44419f8cf3 100644
--- a/src/server/utilities.ts
+++ b/src/server/utilities.ts
@@ -34,19 +34,6 @@ namespace ts.server {
         export type Types = Msg;
     }
 
-    function getProjectRootPath(project: Project): Path {
-        switch (project.projectKind) {
-            case ProjectKind.Configured:
-                return <Path>getDirectoryPath(project.getProjectName());
-            case ProjectKind.Inferred:
-                // TODO: fixme
-                return <Path>"";
-            case ProjectKind.External:
-                const projectName = normalizeSlashes(project.getProjectName());
-                return <Path>getDirectoryPath(projectName);
-        }
-    }
-
     export function createInstallTypingsRequest(project: Project, typeAcquisition: TypeAcquisition, unresolvedImports: SortedReadonlyArray<string>, cachePath?: string): DiscoverTypings {
         return {
             projectName: project.getProjectName(),
@@ -54,7 +41,7 @@ namespace ts.server {
             compilerOptions: project.getCompilationSettings(),
             typeAcquisition,
             unresolvedImports,
-            projectRootPath: getProjectRootPath(project),
+            projectRootPath: project.getCurrentDirectory() as Path,
             cachePath,
             kind: "discover"
         };