diff --git a/src/harness/unittests/reuseProgramStructure.ts b/src/harness/unittests/reuseProgramStructure.ts
index f2e269763ab..dee4d749487 100644
--- a/src/harness/unittests/reuseProgramStructure.ts
+++ b/src/harness/unittests/reuseProgramStructure.ts
@@ -869,4 +869,172 @@ namespace ts {
             createProgram([], {});
         });
     });
+
+    import TestSystem = ts.TestFSWithWatch.TestServerHost;
+    type FileOrFolder = ts.TestFSWithWatch.FileOrFolder;
+    import createTestSystem = ts.TestFSWithWatch.createWatchedSystem;
+    import libFile = ts.TestFSWithWatch.libFile;
+
+    describe("isProgramUptoDate should return true when there is no change in compiler options and", () => {
+        function verifyProgramIsUptoDate(
+            program: Program,
+            newRootFileNames: string[],
+            newOptions: CompilerOptions
+        ) {
+            const actual = isProgramUptoDate(
+                program, newRootFileNames, newOptions,
+                path => program.getSourceFileByPath(path).version, /*fileExists*/ returnFalse,
+                /*hasInvalidatedResolution*/ returnFalse,
+                /*hasChangedAutomaticTypeDirectiveNames*/ returnFalse
+            );
+            assert.isTrue(actual);
+        }
+
+        function duplicate(options: CompilerOptions): CompilerOptions;
+        function duplicate(fileNames: string[]): string[];
+        function duplicate(filesOrOptions: CompilerOptions | string[]) {
+            return JSON.parse(JSON.stringify(filesOrOptions));
+        }
+
+        function createWatchingSystemHost(host: TestSystem) {
+            return ts.createWatchingSystemHost(/*pretty*/ undefined, host);
+        }
+
+        function verifyProgramWithoutConfigFile(watchingSystemHost: WatchingSystemHost, rootFiles: string[], options: CompilerOptions) {
+            const program = createWatchModeWithoutConfigFile(rootFiles, options, watchingSystemHost)();
+            verifyProgramIsUptoDate(program, duplicate(rootFiles), duplicate(options));
+        }
+
+        function getConfigParseResult(watchingSystemHost: WatchingSystemHost, configFileName: string) {
+            return parseConfigFile(configFileName, {}, watchingSystemHost.system, watchingSystemHost.reportDiagnostic, watchingSystemHost.reportWatchDiagnostic);
+        }
+
+        function verifyProgramWithConfigFile(watchingSystemHost: WatchingSystemHost, configFile: string) {
+            const result = getConfigParseResult(watchingSystemHost, configFile);
+            const program = createWatchModeWithConfigFile(result, {}, watchingSystemHost)();
+            const { fileNames, options } = getConfigParseResult(watchingSystemHost, configFile);
+            verifyProgramIsUptoDate(program, fileNames, options);
+        }
+
+        function verifyProgram(files: FileOrFolder[], rootFiles: string[], options: CompilerOptions, configFile: string) {
+            const watchingSystemHost = createWatchingSystemHost(createTestSystem(files));
+            verifyProgramWithoutConfigFile(watchingSystemHost, rootFiles, options);
+            verifyProgramWithConfigFile(watchingSystemHost, configFile);
+        }
+
+        it("has empty options", () => {
+            const file1: FileOrFolder = {
+                path: "/a/b/file1.ts",
+                content: "let x = 1"
+            };
+            const file2: FileOrFolder = {
+                path: "/a/b/file2.ts",
+                content: "let y = 1"
+            };
+            const configFile: FileOrFolder = {
+                path: "/a/b/tsconfig.json",
+                content: "{}"
+            };
+            verifyProgram([file1, file2, libFile, configFile], [file1.path, file2.path], {}, configFile.path);
+        });
+
+        it("has lib specified in the options", () => {
+            const compilerOptions: CompilerOptions = { lib: ["es5", "es2015.promise"] };
+            const app: FileOrFolder = {
+                path: "/src/app.ts",
+                content: "var x: Promise<string>;"
+            };
+            const configFile: FileOrFolder = {
+                path: "/src/tsconfig.json",
+                content: JSON.stringify({ compilerOptions })
+            };
+            const es5Lib: FileOrFolder = {
+                path: "/compiler/lib.es5.d.ts",
+                content: "declare const eval: any"
+            };
+            const es2015Promise: FileOrFolder = {
+                path: "/compiler/lib.es2015.promise.d.ts",
+                content: "declare class Promise<T> {}"
+            };
+
+            verifyProgram([app, configFile, es5Lib, es2015Promise], [app.path], compilerOptions, configFile.path);
+        });
+
+        it("has paths specified in the options", () => {
+            const compilerOptions: CompilerOptions = {
+                baseUrl: ".",
+                paths: {
+                    "*": [
+                        "packages/mail/data/*",
+                        "packages/styles/*",
+                        "*"
+                    ]
+                }
+            };
+            const app: FileOrFolder = {
+                path: "/src/packages/framework/app.ts",
+                content: 'import classc from "module1/lib/file1";\
+                          import classD from "module3/file3";\
+                          let x = new classc();\
+                          let y = new classD();'
+            };
+            const module1: FileOrFolder = {
+                path: "/src/packages/mail/data/module1/lib/file1.ts",
+                content: 'import classc from "module2/file2";export default classc;',
+            };
+            const module2: FileOrFolder = {
+                path: "/src/packages/mail/data/module1/lib/module2/file2.ts",
+                content: 'class classc { method2() { return "hello"; } }\nexport default classc',
+            };
+            const module3: FileOrFolder = {
+                path: "/src/packages/styles/module3/file3.ts",
+                content: "class classD { method() { return 10; } }\nexport default classD;"
+            };
+            const configFile: FileOrFolder = {
+                path: "/src/tsconfig.json",
+                content: JSON.stringify({ compilerOptions })
+            };
+
+            verifyProgram([app, module1, module2, module3, libFile, configFile], [app.path], compilerOptions, configFile.path);
+        });
+
+        it("has include paths specified in tsconfig file", () => {
+            const compilerOptions: CompilerOptions = {
+                baseUrl: ".",
+                paths: {
+                    "*": [
+                        "packages/mail/data/*",
+                        "packages/styles/*",
+                        "*"
+                    ]
+                }
+            };
+            const app: FileOrFolder = {
+                path: "/src/packages/framework/app.ts",
+                content: 'import classc from "module1/lib/file1";\
+                          import classD from "module3/file3";\
+                          let x = new classc();\
+                          let y = new classD();'
+            };
+            const module1: FileOrFolder = {
+                path: "/src/packages/mail/data/module1/lib/file1.ts",
+                content: 'import classc from "module2/file2";export default classc;',
+            };
+            const module2: FileOrFolder = {
+                path: "/src/packages/mail/data/module1/lib/module2/file2.ts",
+                content: 'class classc { method2() { return "hello"; } }\nexport default classc',
+            };
+            const module3: FileOrFolder = {
+                path: "/src/packages/styles/module3/file3.ts",
+                content: "class classD { method() { return 10; } }\nexport default classD;"
+            };
+            const configFile: FileOrFolder = {
+                path: "/src/tsconfig.json",
+                content: JSON.stringify({ compilerOptions, include: ["packages/**/ *.ts"] })
+            };
+
+            const watchingSystemHost = createWatchingSystemHost(createTestSystem([app, module1, module2, module3, libFile, configFile]));
+            verifyProgramWithConfigFile(watchingSystemHost, configFile.path);
+        });
+    });
 }