diff --git a/src/compiler/declarationEmitter.ts b/src/compiler/declarationEmitter.ts
index 3642ee7f10a..648df9a702d 100644
--- a/src/compiler/declarationEmitter.ts
+++ b/src/compiler/declarationEmitter.ts
@@ -36,12 +36,12 @@ namespace ts {
         return declarationDiagnostics.getDiagnostics(targetSourceFile ? targetSourceFile.fileName : undefined);
 
         function getDeclarationDiagnosticsFromFile({ declarationFilePath }: EmitFileNames, sources: SourceFile[], isBundledEmit: boolean) {
-            emitDeclarations(host, resolver, declarationDiagnostics, declarationFilePath, sources, isBundledEmit);
+            emitDeclarations(host, resolver, declarationDiagnostics, declarationFilePath, sources, isBundledEmit, /*emitOnlyDtsFiles*/ false);
         }
     }
 
     function emitDeclarations(host: EmitHost, resolver: EmitResolver, emitterDiagnostics: DiagnosticCollection, declarationFilePath: string,
-        sourceFiles: SourceFile[], isBundledEmit: boolean): DeclarationEmit {
+        sourceFiles: SourceFile[], isBundledEmit: boolean, emitOnlyDtsFiles: boolean): DeclarationEmit {
         const newLine = host.getNewLine();
         const compilerOptions = host.getCompilerOptions();
 
@@ -98,7 +98,7 @@ namespace ts {
                         // global file reference is added only
                         //  - if it is not bundled emit (because otherwise it would be self reference)
                         //  - and it is not already added
-                        if (writeReferencePath(referencedFile, !isBundledEmit && !addedGlobalFileReference)) {
+                        if (writeReferencePath(referencedFile, !isBundledEmit && !addedGlobalFileReference, emitOnlyDtsFiles)) {
                             addedGlobalFileReference = true;
                         }
                         emittedReferencedFiles.push(referencedFile);
@@ -1713,7 +1713,7 @@ namespace ts {
          * @param referencedFile
          * @param addBundledFileReference Determines if global file reference corresponding to bundled file should be emitted or not
          */
-        function writeReferencePath(referencedFile: SourceFile, addBundledFileReference: boolean): boolean {
+        function writeReferencePath(referencedFile: SourceFile, addBundledFileReference: boolean, emitOnlyDtsFiles: boolean): boolean {
             let declFileName: string;
             let addedBundledEmitReference = false;
             if (isDeclarationFile(referencedFile)) {
@@ -1722,7 +1722,7 @@ namespace ts {
             }
             else {
                 // Get the declaration file path
-                forEachExpectedEmitFile(host, getDeclFileName, referencedFile);
+                forEachExpectedEmitFile(host, getDeclFileName, referencedFile, emitOnlyDtsFiles);
             }
 
             if (declFileName) {
@@ -1751,8 +1751,8 @@ namespace ts {
     }
 
     /* @internal */
-    export function writeDeclarationFile(declarationFilePath: string, sourceFiles: SourceFile[], isBundledEmit: boolean, host: EmitHost, resolver: EmitResolver, emitterDiagnostics: DiagnosticCollection) {
-        const emitDeclarationResult = emitDeclarations(host, resolver, emitterDiagnostics, declarationFilePath, sourceFiles, isBundledEmit);
+    export function writeDeclarationFile(declarationFilePath: string, sourceFiles: SourceFile[], isBundledEmit: boolean, host: EmitHost, resolver: EmitResolver, emitterDiagnostics: DiagnosticCollection, emitOnlyDtsFiles: boolean) {
+        const emitDeclarationResult = emitDeclarations(host, resolver, emitterDiagnostics, declarationFilePath, sourceFiles, isBundledEmit, emitOnlyDtsFiles);
         const emitSkipped = emitDeclarationResult.reportedDeclarationError || host.isEmitBlocked(declarationFilePath) || host.getCompilerOptions().noEmit;
         if (!emitSkipped) {
             const declarationOutput = emitDeclarationResult.referencesOutput
diff --git a/src/compiler/emitter.ts b/src/compiler/emitter.ts
index ca015edc73e..c3fac679048 100644
--- a/src/compiler/emitter.ts
+++ b/src/compiler/emitter.ts
@@ -8365,7 +8365,7 @@ const _super = (function (geti, seti) {
         }
 
         function emitFile({ jsFilePath, sourceMapFilePath, declarationFilePath }: EmitFileNames,
-            sourceFiles: SourceFile[], isBundledEmit: boolean) {
+            sourceFiles: SourceFile[], isBundledEmit: boolean, emitOnlyDtsFiles: boolean) {
             if (!emitOnlyDtsFiles) {
                 // Make sure not to write js File and source map file if any of them cannot be written
                 if (!host.isEmitBlocked(jsFilePath) && !compilerOptions.noEmit) {
@@ -8377,7 +8377,7 @@ const _super = (function (geti, seti) {
             }
 
             if (declarationFilePath) {
-                emitSkipped = writeDeclarationFile(declarationFilePath, sourceFiles, isBundledEmit, host, resolver, emitterDiagnostics) || emitSkipped;
+                emitSkipped = writeDeclarationFile(declarationFilePath, sourceFiles, isBundledEmit, host, resolver, emitterDiagnostics, emitOnlyDtsFiles) || emitSkipped;
             }
 
             if (!emitSkipped && emittedFilesList) {
diff --git a/src/compiler/utilities.ts b/src/compiler/utilities.ts
index 9d60521d76b..b4e4418dac2 100644
--- a/src/compiler/utilities.ts
+++ b/src/compiler/utilities.ts
@@ -2231,7 +2231,7 @@ namespace ts {
     }
 
     export function forEachExpectedEmitFile(host: EmitHost,
-        action: (emitFileNames: EmitFileNames, sourceFiles: SourceFile[], isBundledEmit: boolean) => void,
+        action: (emitFileNames: EmitFileNames, sourceFiles: SourceFile[], isBundledEmit: boolean, emitOnlyDtsFiles: boolean) => void,
         targetSourceFile?: SourceFile,
         emitOnlyDtsFiles?: boolean) {
         const options = host.getCompilerOptions();
@@ -2272,7 +2272,7 @@ namespace ts {
                 sourceMapFilePath: getSourceMapFilePath(jsFilePath, options),
                 declarationFilePath
             };
-            action(emitFileNames, [sourceFile], /*isBundledEmit*/false);
+            action(emitFileNames, [sourceFile], /*isBundledEmit*/false, emitOnlyDtsFiles);
         }
 
         function onBundledEmit(host: EmitHost) {
@@ -2290,7 +2290,7 @@ namespace ts {
                     sourceMapFilePath: getSourceMapFilePath(jsFilePath, options),
                     declarationFilePath: options.declaration ? removeFileExtension(jsFilePath) + ".d.ts" : undefined
                 };
-                action(emitFileNames, bundledSources, /*isBundledEmit*/true);
+                action(emitFileNames, bundledSources, /*isBundledEmit*/true, emitOnlyDtsFiles);
             }
         }
 
diff --git a/src/harness/unittests/tsserverProjectSystem.ts b/src/harness/unittests/tsserverProjectSystem.ts
index 8916c2d4189..736c087ec6a 100644
--- a/src/harness/unittests/tsserverProjectSystem.ts
+++ b/src/harness/unittests/tsserverProjectSystem.ts
@@ -1869,6 +1869,28 @@ namespace ts {
                 session.executeCommand(changeFile1Consumer1ShapeRequest);
                 sendAffectedFileRequestAndCheckResult(session, moduleFile1FileListRequest, [moduleFile1, file1Consumer1, file1Consumer1Consumer1]);
             });
+
+            it("should work fine for files with circular references", () => {
+                const file1: FileOrFolder = {
+                    path: "/a/b/file1.ts",
+                    content: `
+                    /// <reference path="./file2.ts" />
+                    export var t1 = 10;`
+                };
+                const file2: FileOrFolder = {
+                    path: "/a/b/file2.ts",
+                    content: `
+                    /// <reference path="./file1.ts" />
+                    export var t2 = 10;`
+                };
+                host = createServerHost([file1, file2, configFile]);
+                typingsInstaller = new TestTypingsInstaller("/a/data/", host);
+                session = new server.Session(host, nullCancellationToken, /*useSingleInferredProject*/ false, typingsInstaller, Utils.byteLength, process.hrtime, nullLogger, /*canUseEvents*/ false);
+
+                openFilesForSession([file1, file2], session);
+                const file1AffectedListRequest = makeSessionRequest<server.protocol.FileRequestArgs>(server.CommandNames.CompileOnSaveAffectedFileList, { file: file1.path });
+                sendAffectedFileRequestAndCheckResult(session, file1AffectedListRequest, [file1, file2]);
+            });
         });
     });
 
diff --git a/src/server/builder.ts b/src/server/builder.ts
index 19e515c4459..9310976ddc0 100644
--- a/src/server/builder.ts
+++ b/src/server/builder.ts
@@ -243,7 +243,7 @@ namespace ts.server {
 
             const referencedFilePaths = this.project.getReferencedFiles(fileInfo.scriptInfo.path);
             if (referencedFilePaths.length > 0) {
-                return map(referencedFilePaths, f => this.getFileInfo(f)).sort(ModuleBuilderFileInfo.compareFileInfos);
+                return map(referencedFilePaths, f => this.getOrCreateFileInfo(f)).sort(ModuleBuilderFileInfo.compareFileInfos);
             }
             return [];
         }