diff --git a/src/harness/unittests/tsserverProjectSystem.ts b/src/harness/unittests/tsserverProjectSystem.ts
index d1041e55d0e..8916c2d4189 100644
--- a/src/harness/unittests/tsserverProjectSystem.ts
+++ b/src/harness/unittests/tsserverProjectSystem.ts
@@ -46,7 +46,6 @@ namespace ts {
         }
 
         onProjectClosed(p: server.Project) {
-
         }
 
         attach(projectService: server.ProjectService) {
@@ -114,6 +113,32 @@ namespace ts {
             fileOrFolderList);
     }
 
+    interface CreateProjectServiceParameters {
+        cancellationToken?: HostCancellationToken;
+        logger?: server.Logger;
+        useSingleInferredProject?: boolean;
+        typingsInstaller?: server.ITypingsInstaller;
+        eventHandler?: server.ProjectServiceEventHandler;
+    }
+
+
+    class TestProjectService extends server.ProjectService {
+        constructor(host: server.ServerHost, logger: server.Logger, cancellationToken: HostCancellationToken, useSingleInferredProject: boolean,
+            typingsInstaller: server.ITypingsInstaller, eventHandler: server.ProjectServiceEventHandler) {
+            super(host, logger, cancellationToken, useSingleInferredProject, typingsInstaller, eventHandler);
+        }
+
+        checkNumberOfProjects(count: { inferredProjects?: number, configuredProjects?: number, externalProjects?: number }) {
+            checkNumberOfProjects(this, count);
+        }
+    }
+    function createProjectService(host: server.ServerHost, parameters: CreateProjectServiceParameters = {}) {
+        const cancellationToken = parameters.cancellationToken || nullCancellationToken;
+        const logger = parameters.logger || nullLogger;
+        const useSingleInferredProject = parameters.useSingleInferredProject !== undefined ? parameters.useSingleInferredProject : false;
+        return new TestProjectService(host, logger, cancellationToken, useSingleInferredProject, parameters.typingsInstaller, parameters.eventHandler);
+    }
+
     interface FileOrFolder {
         path: string;
         content?: string;
@@ -495,7 +520,7 @@ namespace ts {
                 content: `export let x: number`
             };
             const host = createServerHost([appFile, moduleFile, libFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
             const { configFileName } = projectService.openClientFile(appFile.path);
 
             assert(!configFileName, `should not find config, got: '${configFileName}`);
@@ -533,7 +558,7 @@ namespace ts {
             };
 
             const host = createServerHost([configFile, libFile, file1, file2, file3]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
             const { configFileName, configFileErrors } = projectService.openClientFile(file1.path);
 
             assert(configFileName, "should find config file");
@@ -560,7 +585,7 @@ namespace ts {
             const host = createServerHost(filesWithoutConfig);
 
             const filesWithConfig = [libFile, commonFile1, commonFile2, configFile];
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
             projectService.openClientFile(commonFile1.path);
             projectService.openClientFile(commonFile2.path);
 
@@ -591,7 +616,7 @@ namespace ts {
                 content: `{}`
             };
             const host = createServerHost([commonFile1, libFile, configFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
             projectService.openClientFile(commonFile1.path);
             checkWatchedDirectories(host, ["/a/b"]);
             checkNumberOfConfiguredProjects(projectService, 1);
@@ -619,7 +644,7 @@ namespace ts {
                 }`
             };
             const host = createServerHost([commonFile1, commonFile2, configFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
             projectService.openClientFile(commonFile1.path);
             projectService.openClientFile(commonFile2.path);
 
@@ -635,7 +660,7 @@ namespace ts {
                 content: `{}`
             };
             const host = createServerHost([commonFile1, commonFile2, configFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
             projectService.openClientFile(commonFile1.path);
 
             checkNumberOfConfiguredProjects(projectService, 1);
@@ -665,7 +690,7 @@ namespace ts {
             };
             const files = [commonFile1, commonFile2, configFile];
             const host = createServerHost(files);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
             projectService.openClientFile(commonFile1.path);
 
             const project = projectService.configuredProjects[0];
@@ -698,7 +723,7 @@ namespace ts {
             };
 
             const host = createServerHost([commonFile1, commonFile2, excludedFile1, configFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openClientFile(commonFile1.path);
             checkNumberOfConfiguredProjects(projectService, 1);
@@ -732,7 +757,7 @@ namespace ts {
             };
             const files = [file1, nodeModuleFile, classicModuleFile, configFile];
             const host = createServerHost(files);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
             projectService.openClientFile(file1.path);
             projectService.openClientFile(nodeModuleFile.path);
             projectService.openClientFile(classicModuleFile.path);
@@ -773,7 +798,7 @@ namespace ts {
                 }`
             };
             const host = createServerHost([file1, file2, configFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
             projectService.openClientFile(file1.path);
             projectService.closeClientFile(file1.path);
             projectService.openClientFile(file2.path);
@@ -800,7 +825,7 @@ namespace ts {
                 }`
             };
             const host = createServerHost([file1, file2, configFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
             projectService.openClientFile(file1.path);
             projectService.closeClientFile(file1.path);
             projectService.openClientFile(file2.path);
@@ -833,7 +858,7 @@ namespace ts {
             };
 
             const host = createServerHost([file1, file2, file3, libFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ true, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host, { useSingleInferredProject: true });
             projectService.openClientFile(file1.path);
             projectService.openClientFile(file2.path);
             projectService.openClientFile(file3.path);
@@ -866,7 +891,7 @@ namespace ts {
                 }`
             };
             const host = createServerHost([file1, configFile, libFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ true, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host, { useSingleInferredProject: true });
             projectService.openClientFile(file1.path);
             checkNumberOfConfiguredProjects(projectService, 1);
 
@@ -885,7 +910,7 @@ namespace ts {
             };
             const externalProjectName = "externalproject";
             const host = createServerHost([file1, file2]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
             projectService.openExternalProject({
                 rootFiles: toExternalFiles([file1.path, file2.path]),
                 options: {},
@@ -943,7 +968,7 @@ namespace ts {
             };
             const externalProjectName = "externalproject";
             const host = createServerHost([file1, file2, file3, config1, config2]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
             projectService.openExternalProject({
                 rootFiles: toExternalFiles([config1.path, config2.path, file3.path]),
                 options: {},
@@ -981,7 +1006,7 @@ namespace ts {
             };
             const externalProjectName = "externalproject";
             const host = createServerHost([file1, configFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openClientFile(file1.path);
             checkNumberOfProjects(projectService, { configuredProjects: 1 });
@@ -1012,7 +1037,7 @@ namespace ts {
             };
             const externalProjectName = "externalproject";
             const host = createServerHost([file1, configFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useOneInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openClientFile(file1.path);
             checkNumberOfProjects(projectService, { configuredProjects: 1 });
@@ -1047,7 +1072,7 @@ namespace ts {
                 content: `export let y = 1;`
             };
             const host = createServerHost([file1, file2, file3]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openClientFile(file1.path);
 
@@ -1084,7 +1109,7 @@ namespace ts {
                 content: `export let y = 1;`
             };
             const host = createServerHost([file1, file2, file3]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openClientFile(file1.path);
 
@@ -1123,7 +1148,7 @@ namespace ts {
             };
 
             const host = createServerHost([file1, file2, file3]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openClientFile(file1.path);
             checkNumberOfProjects(projectService, { inferredProjects: 1 });
@@ -1156,7 +1181,7 @@ namespace ts {
                 content: "export let y = 1;"
             };
             const host = createServerHost([file1, file2, file3]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openClientFile(file2.path);
             checkNumberOfProjects(projectService, { inferredProjects: 1 });
@@ -1191,7 +1216,7 @@ namespace ts {
             };
 
             const host = createServerHost([file1, configFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openClientFile(file1.path);
             checkNumberOfProjects(projectService, { configuredProjects: 1 });
@@ -1222,7 +1247,7 @@ namespace ts {
             };
 
             const host = createServerHost([file1, file2, configFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openClientFile(file1.path);
             checkNumberOfProjects(projectService, { configuredProjects: 1 });
@@ -1255,7 +1280,7 @@ namespace ts {
             };
 
             const host = createServerHost([file1, file2, configFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openClientFile(file1.path);
             checkNumberOfProjects(projectService, { configuredProjects: 1 });
@@ -1283,7 +1308,7 @@ namespace ts {
                 content: "let y = 1"
             };
             const host = createServerHost([file1, file2]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openExternalProject({ projectFileName: "project", options: {}, rootFiles: toExternalFiles([file1.path]) });
             checkNumberOfProjects(projectService, { externalProjects: 1 });
@@ -1309,7 +1334,7 @@ namespace ts {
             };
 
             const host = createServerHost([file1, file2, file3]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openExternalProject({ projectFileName: "project", options: { moduleResolution: ModuleResolutionKind.NodeJs }, rootFiles: toExternalFiles([file1.path, file2.path]) });
             checkNumberOfProjects(projectService, { externalProjects: 1 });
@@ -1336,7 +1361,7 @@ namespace ts {
                 content: JSON.stringify({ compilerOptions: {} })
             };
             const host = createServerHost([file1, file2, config]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openClientFile(file1.path);
             checkNumberOfProjects(projectService, { configuredProjects: 1 });
@@ -1364,7 +1389,7 @@ namespace ts {
                 content: "export let x = 1"
             };
             const host = createServerHost([file1, file2]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openClientFile(file1.path);
             projectService.openClientFile(file2.path);
@@ -1389,7 +1414,7 @@ namespace ts {
                 content: `<html><script language="javascript">var x = 1;</></html>`
             };
             const host = createServerHost([file1]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
             const projectFileName = "projectFileName";
             projectService.openExternalProject({ projectFileName, options: {}, rootFiles: [{ fileName: file1.path, scriptKind: ScriptKind.JS, hasMixedContent: true }] });
 
@@ -1427,7 +1452,7 @@ namespace ts {
                 content: "export let x: number"
             };
             const host = createServerHost([file1, modFile]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openClientFile(file1.path);
             projectService.openClientFile(modFile.path);
@@ -1444,7 +1469,7 @@ namespace ts {
                 content: "{x: 1}"
             };
             const host = createServerHost([file1]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ true, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host, { useSingleInferredProject: true });
             projectService.setCompilerOptionsForInferredProjects({ target: ScriptTarget.ES5, allowJs: false });
             projectService.openClientFile(file1.path);
             projectService.inferredProjects[0].getLanguageService(/*ensureSynchronized*/ false).getOutliningSpans(file1.path);
@@ -1472,7 +1497,7 @@ namespace ts {
                 content: "{}"
             };
             const host = createServerHost([file1, file2, tsconfig1, tsconfig2]);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ false, /*typingsInstaller*/ undefined);
+            const projectService = createProjectService(host);
 
             projectService.openClientFile(file2.path);
             checkNumberOfProjects(projectService, { configuredProjects: 1 });
@@ -1909,7 +1934,7 @@ namespace ts {
 
             const host = createServerHost([file1, tsconfig, packageJson]);
             const installer = new TestTypingsInstaller("/a/data/", host);
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ true, installer);
+            const projectService = createProjectService(host, { useSingleInferredProject: true, typingsInstaller: installer });
             projectService.openClientFile(file1.path);
 
             checkNumberOfProjects(projectService, { configuredProjects: 1 });
@@ -1949,7 +1974,7 @@ namespace ts {
             const host = createServerHost([file1, packageJson]);
             const installer = new TestTypingsInstaller("/a/data/", host);
 
-            const projectService = new server.ProjectService(host, nullLogger, nullCancellationToken, /*useSingleInferredProject*/ true, installer);
+            const projectService = createProjectService(host, { useSingleInferredProject: true, typingsInstaller: installer });
             projectService.openClientFile(file1.path);
 
             checkNumberOfProjects(projectService, { inferredProjects: 1 });
@@ -1966,5 +1991,97 @@ namespace ts {
             checkNumberOfProjects(projectService, { inferredProjects: 1 });
             checkProjectActualFiles(p, [ file1.path, jquery.path ]);
         });
+
+        it ("external project - no typing options, no .d.ts/js files", () => {
+            const file1 = {
+                path: "/a/b/app.ts",
+                content: ""
+            };
+            const host = createServerHost([file1]);
+            const installer = new (class extends TestTypingsInstaller {
+                constructor() {
+                    super("", host);
+                }
+                enqueueInstallTypingsRequest() {
+                    assert(false, "auto discovery should not be enabled");
+                }
+            })();
+
+            const projectFileName = "/a/app/test.csproj";
+            const projectService = createProjectService(host, { typingsInstaller: installer });
+            projectService.openExternalProject({
+                projectFileName,
+                options: {},
+                rootFiles: [toExternalFile(file1.path)]
+            });
+            // by default auto discovery will kick in if project contain only .js/.d.ts files
+            // in this case project contain only ts files - no auto discovery
+            projectService.checkNumberOfProjects({ externalProjects: 1 });
+        });
+
+        it ("external project - no autoDiscovery in typing options, no .d.ts/js files", () => {
+            const file1 = {
+                path: "/a/b/app.ts",
+                content: ""
+            };
+            const host = createServerHost([file1]);
+            const installer = new (class extends TestTypingsInstaller {
+                constructor() {
+                    super("", host);
+                }
+                enqueueInstallTypingsRequest() {
+                    assert(false, "auto discovery should not be enabled");
+                }
+            })();
+
+            const projectFileName = "/a/app/test.csproj";
+            const projectService = createProjectService(host, { typingsInstaller: installer });
+            projectService.openExternalProject({
+                projectFileName,
+                options: {},
+                rootFiles: [toExternalFile(file1.path)],
+                typingOptions: { include: ["jquery"] }
+            });
+            // by default auto discovery will kick in if project contain only .js/.d.ts files
+            // in this case project contain only ts files - no auto discovery even if typing options is set
+            projectService.checkNumberOfProjects({ externalProjects: 1 });
+        });
+
+        it ("external project - autoDiscovery = true, no .d.ts/js files", () => {
+            const file1 = {
+                path: "/a/b/app.ts",
+                content: ""
+            };
+            const host = createServerHost([file1]);
+            let enqueueIsCalled = false;
+            let runTsdIsCalled = false;
+            const installer = new (class extends TestTypingsInstaller {
+                constructor() {
+                    super("", host);
+                }
+                enqueueInstallTypingsRequest(project: server.Project, typingOptions: TypingOptions) {
+                    enqueueIsCalled = true;
+                    super.enqueueInstallTypingsRequest(project, typingOptions);
+                }
+                runTsd(cachePath: string, typingsToInstall: string[], postInstallAction: (installedTypings: string[]) => void): void {
+                    assert.deepEqual(typingsToInstall, ["node"]);
+                    runTsdIsCalled = true;
+                    super.runTsd(cachePath, typingsToInstall, postInstallAction);
+                }
+            })();
+
+            const projectFileName = "/a/app/test.csproj";
+            const projectService = createProjectService(host, { typingsInstaller: installer });
+            projectService.openExternalProject({
+                projectFileName,
+                options: {},
+                rootFiles: [toExternalFile(file1.path)],
+                typingOptions: { enableAutoDiscovery: true, include: ["node"] }
+            });
+            // autoDiscovery is set in typing options - use it even if project contains only .ts files
+            projectService.checkNumberOfProjects({ externalProjects: 1 });
+            assert.isTrue(enqueueIsCalled, "expected 'enqueueIsCalled' to be true");
+            assert.isTrue(runTsdIsCalled, "expected 'runTsdIsCalled' to be true");
+        });
     });
 }
\ No newline at end of file
diff --git a/src/server/editorServices.ts b/src/server/editorServices.ts
index 1557fcd0879..68390ce3c36 100644
--- a/src/server/editorServices.ts
+++ b/src/server/editorServices.ts
@@ -711,11 +711,11 @@ namespace ts.server {
                 this,
                 this.documentRegistry,
                 options,
-                typingOptions,
                 /*languageServiceEnabled*/ !this.exceededTotalSizeLimitForNonTsFiles(options, files, externalFilePropertyReader),
                 !!options.compileOnSave);
 
-            const errors = this.addFilesToProjectAndUpdateGraph(project, files, externalFilePropertyReader, /*clientFileName*/ undefined);
+            const errors = this.addFilesToProjectAndUpdateGraph(project, files, externalFilePropertyReader, /*clientFileName*/ undefined, typingOptions);
+
             this.externalProjects.push(project);
             return { project, errors };
         }
@@ -728,12 +728,11 @@ namespace ts.server {
                 this.documentRegistry,
                 projectOptions.configHasFilesProperty,
                 projectOptions.compilerOptions,
-                projectOptions.typingOptions,
                 projectOptions.wildcardDirectories,
                 /*languageServiceEnabled*/ !sizeLimitExceeded,
                 /*compileOnSaveEnabled*/ !!projectOptions.compileOnSave);
 
-            const errors = this.addFilesToProjectAndUpdateGraph(project, projectOptions.files, fileNamePropertyReader, clientFileName);
+            const errors = this.addFilesToProjectAndUpdateGraph(project, projectOptions.files, fileNamePropertyReader, clientFileName, projectOptions.typingOptions);
 
             project.watchConfigFile(project => this.onConfigChangedForConfiguredProject(project));
             if (!sizeLimitExceeded) {
@@ -751,7 +750,7 @@ namespace ts.server {
             }
         }
 
-        private addFilesToProjectAndUpdateGraph<T>(project: ConfiguredProject | ExternalProject, files: T[], propertyReader: FilePropertyReader<T>, clientFileName: string): Diagnostic[] {
+        private addFilesToProjectAndUpdateGraph<T>(project: ConfiguredProject | ExternalProject, files: T[], propertyReader: FilePropertyReader<T>, clientFileName: string, typingOptions: TypingOptions): Diagnostic[] {
             let errors: Diagnostic[];
             for (const f of files) {
                 const rootFilename = propertyReader.getFileName(f);
@@ -765,6 +764,7 @@ namespace ts.server {
                     (errors || (errors = [])).push(createCompilerDiagnostic(Diagnostics.File_0_not_found, rootFilename));
                 }
             }
+            project.setTypingOptions(typingOptions);
             project.updateGraph();
             return errors;
         }
diff --git a/src/server/project.ts b/src/server/project.ts
index d36f1d955a6..21694e0ea32 100644
--- a/src/server/project.ts
+++ b/src/server/project.ts
@@ -22,8 +22,8 @@ namespace ts.server {
 
     const jsOrDts = [".js", ".d.ts"];
 
-    export function allFilesAreJsOrDts(project: Project): boolean {
-        return project.getFileNames().every(f => fileExtensionIsAny(f, jsOrDts));
+    export function allRootFilesAreJsOrDts(project: Project): boolean {
+        return project.getRootScriptInfos().every(f => fileExtensionIsAny(f.fileName, jsOrDts));
     }
 
     export abstract class Project {
@@ -518,7 +518,7 @@ namespace ts.server {
 
         getTypingOptions(): TypingOptions {
             return {
-                enableAutoDiscovery: allFilesAreJsOrDts(this),
+                enableAutoDiscovery: allRootFilesAreJsOrDts(this),
                 include: [],
                 exclude: []
             };
@@ -526,6 +526,7 @@ namespace ts.server {
     }
 
     export class ConfiguredProject extends Project {
+        private typingOptions: TypingOptions;
         private projectFileWatcher: FileWatcher;
         private directoryWatcher: FileWatcher;
         private directoriesWatchedForWildcards: Map<FileWatcher>;
@@ -537,7 +538,6 @@ namespace ts.server {
             documentRegistry: ts.DocumentRegistry,
             hasExplicitListOfFiles: boolean,
             compilerOptions: CompilerOptions,
-            private typingOptions: TypingOptions,
             private wildcardDirectories: Map<WatchDirectoryFlags>,
             languageServiceEnabled: boolean,
             public compileOnSaveEnabled = false) {
@@ -627,11 +627,9 @@ namespace ts.server {
             projectService: ProjectService,
             documentRegistry: ts.DocumentRegistry,
             compilerOptions: CompilerOptions,
-            typingOptions: TypingOptions,
             languageServiceEnabled: boolean,
             public compileOnSaveEnabled = true) {
             super(ProjectKind.External, projectService, documentRegistry, /*hasExplicitListOfFiles*/ true, languageServiceEnabled, compilerOptions, compileOnSaveEnabled);
-            this.setTypingOptions(typingOptions);
         }
 
         getTypingOptions() {
@@ -642,7 +640,7 @@ namespace ts.server {
             if (!newTypingOptions) {
                 // set default typings options
                 newTypingOptions = {
-                    enableAutoDiscovery: allFilesAreJsOrDts(this),
+                    enableAutoDiscovery: allRootFilesAreJsOrDts(this),
                     include: [],
                     exclude: []
                 };
@@ -650,7 +648,7 @@ namespace ts.server {
             else {
                 if (newTypingOptions.enableAutoDiscovery === undefined) {
                     // if autoDiscovery was not specified by the caller - set it based on the content of the project
-                    newTypingOptions.enableAutoDiscovery = allFilesAreJsOrDts(this);
+                    newTypingOptions.enableAutoDiscovery = allRootFilesAreJsOrDts(this);
                 }
                 if (!newTypingOptions.include) {
                     newTypingOptions.include = [];
diff --git a/src/server/typingsCache.ts b/src/server/typingsCache.ts
index efbeb3d8fbe..91c5aaef7cd 100644
--- a/src/server/typingsCache.ts
+++ b/src/server/typingsCache.ts
@@ -77,7 +77,7 @@ namespace ts.server {
         getTypingsForProject(project: Project): TypingsArray {
             const typingOptions = project.getTypingOptions();
 
-            if (!typingOptions.enableAutoDiscovery) {
+            if (!typingOptions || !typingOptions.enableAutoDiscovery) {
                 return <any>emptyArray;
             }
 
diff --git a/src/services/jsTyping.ts b/src/services/jsTyping.ts
index ff96bb7dd07..32670c738fa 100644
--- a/src/services/jsTyping.ts
+++ b/src/services/jsTyping.ts
@@ -29,6 +29,8 @@ namespace ts.JsTyping {
     // that we are confident require typings
     let safeList: Map<string>;
 
+    const EmptySafeList: Map<string> = createMap<string>();
+
     /**
      * @param host is the object providing I/O related operations.
      * @param fileNames are the file names that belong to the same project
@@ -63,7 +65,7 @@ namespace ts.JsTyping {
 
         if (!safeList) {
             const result = readConfigFile(safeListPath, (path: string) => host.readFile(path));
-            safeList = createMap<string>(result.config);
+            safeList = result.config ? createMap<string>(result.config) : EmptySafeList;
         }
 
         const filesToWatch: string[] = [];
@@ -163,10 +165,8 @@ namespace ts.JsTyping {
             const jsFileNames = filter(fileNames, hasJavaScriptFileExtension);
             const inferredTypingNames = map(jsFileNames, f => removeFileExtension(getBaseFileName(f.toLowerCase())));
             const cleanedTypingNames = map(inferredTypingNames, f => f.replace(/((?:\.|-)min(?=\.|$))|((?:-|\.)\d+)/g, ""));
-            if (safeList === undefined) {
-                mergeTypings(cleanedTypingNames);
-            }
-            else {
+
+            if (safeList !== EmptySafeList) {
                 mergeTypings(filter(cleanedTypingNames, f => f in safeList));
             }