diff --git a/src/compiler/resolutionCache.ts b/src/compiler/resolutionCache.ts
index 6e0384219a1..fb04d7b7a18 100644
--- a/src/compiler/resolutionCache.ts
+++ b/src/compiler/resolutionCache.ts
@@ -699,6 +699,11 @@ namespace ts {
                 // If something to do with folder/file starting with "." in node_modules folder, skip it
                 if (isPathIgnored(fileOrDirectoryPath)) return false;
 
+                // prevent saving an open file from over-eagerly triggering invalidation
+                if (resolutionHost.fileIsOpen(fileOrDirectoryPath)) {
+                    return false;
+                }
+
                 // Some file or directory in the watching directory is created
                 // Return early if it does not have any of the watching extension or not the custom failed lookup path
                 const dirOfFileOrDirectory = getDirectoryPath(fileOrDirectoryPath);
@@ -714,10 +719,6 @@ namespace ts {
                     if (!isPathWithDefaultFailedLookupExtension(fileOrDirectoryPath) && !customFailedLookupPaths.has(fileOrDirectoryPath)) {
                         return false;
                     }
-                    // prevent saving an open file from over-eagerly triggering invalidation
-                    if (resolutionHost.fileIsOpen(fileOrDirectoryPath)) {
-                        return false;
-                    }
                     // Ignore emits from the program
                     if (isEmittedFileOfProgram(resolutionHost.getCurrentProgram(), fileOrDirectoryPath)) {
                         return false;
diff --git a/src/server/editorServices.ts b/src/server/editorServices.ts
index 6bfce902a04..b0a64432633 100644
--- a/src/server/editorServices.ts
+++ b/src/server/editorServices.ts
@@ -1002,7 +1002,13 @@ namespace ts.server {
                 directory,
                 fileOrDirectory => {
                     const fileOrDirectoryPath = this.toPath(fileOrDirectory);
-                    project.getCachedDirectoryStructureHost().addOrDeleteFileOrDirectory(fileOrDirectory, fileOrDirectoryPath);
+                    const fileSystemResult = project.getCachedDirectoryStructureHost().addOrDeleteFileOrDirectory(fileOrDirectory, fileOrDirectoryPath);
+
+                    // don't trigger callback on open, existing files
+                    if (project.fileIsOpen(fileOrDirectoryPath) && fileSystemResult && fileSystemResult.fileExists) {
+                        return;
+                    }
+
                     if (isPathIgnored(fileOrDirectoryPath)) return;
                     const configFilename = project.getConfigFilePath();
 
diff --git a/src/testRunner/unittests/tsserver/projects.ts b/src/testRunner/unittests/tsserver/projects.ts
index ba1eae236a5..dcbff895f1d 100644
--- a/src/testRunner/unittests/tsserver/projects.ts
+++ b/src/testRunner/unittests/tsserver/projects.ts
@@ -1341,6 +1341,26 @@ var x = 10;`
             }
         });
 
+        it("no project structure update on directory watch invoke on open file save", () => {
+            const projectRootPath = "/users/username/projects/project";
+            const fileA: File = {
+                path: `${projectRootPath}/a.ts`,
+                content: "export const a = 10;"
+            };
+            const config: File = {
+                path: `${projectRootPath}/tsconfig.json`,
+                content: "{}"
+            };
+            const files = [fileA, config];
+            const host = createServerHost(files);
+            const service = createProjectService(host);
+            service.openClientFile(fileA.path);
+            checkNumberOfProjects(service, { configuredProjects: 1 });
+
+            host.invokeWatchedDirectoriesRecursiveCallback(projectRootPath, "a.ts");
+            host.checkTimeoutQueueLength(0);
+        });
+
         it("handles delayed directory watch invoke on file creation", () => {
             const projectRootPath = "/users/username/projects/project";
             const fileB: File = {
diff --git a/src/testRunner/unittests/tsserver/resolutionCache.ts b/src/testRunner/unittests/tsserver/resolutionCache.ts
index 11b604bb20c..05cbf8b9388 100644
--- a/src/testRunner/unittests/tsserver/resolutionCache.ts
+++ b/src/testRunner/unittests/tsserver/resolutionCache.ts
@@ -977,7 +977,7 @@ export const x = 10;`
         });
 
         describe("avoid unnecessary invalidation", () => {
-            it("failed lookup invalidation", () => {
+            it("unnecessary lookup invalidation on save", () => {
                 const expectedNonRelativeDirectories = [`${projectLocation}/node_modules`, `${projectLocation}/src`];
                 const module1Name = "module1";
                 const module2Name = "module2";
@@ -999,6 +999,7 @@ export const x = 10;`
                 verifyTrace(resolutionTrace, expectedTrace);
                 verifyWatchesWithConfigFile(host, files, file1, expectedNonRelativeDirectories);
 
+                // invoke callback to simulate saving
                 host.invokeWatchedDirectoriesRecursiveCallback(projectLocation + "/src", "file1.ts");
                 host.checkTimeoutQueueLengthAndRun(0);
             });