diff --git a/src/server/editorServices.ts b/src/server/editorServices.ts
index 5cc3bf47f8..1f82f2cbe0 100644
--- a/src/server/editorServices.ts
+++ b/src/server/editorServices.ts
@@ -170,6 +170,7 @@ namespace ts.server {
         readonly openFiles: ScriptInfo[] = [];
 
         private compilerOptionsForInferredProjects: CompilerOptions;
+        private compileOnSaveForInferredProjects: boolean;
         private readonly directoryWatchers: DirectoryWatchers;
         private readonly throttledOperations: ThrottledOperations;
 
@@ -228,10 +229,12 @@ namespace ts.server {
             }
         }
 
-        setCompilerOptionsForInferredProjects(compilerOptions: CompilerOptions): void {
-            this.compilerOptionsForInferredProjects = compilerOptions;
+        setCompilerOptionsForInferredProjects(projectCompilerOptions: protocol.ExternalProjectCompilerOptions): void {
+            this.compilerOptionsForInferredProjects = projectCompilerOptions;
+            this.compileOnSaveForInferredProjects = projectCompilerOptions.compileOnSave;
             for (const proj of this.inferredProjects) {
-                proj.setCompilerOptions(compilerOptions);
+                proj.setCompilerOptions(projectCompilerOptions);
+                proj.compileOnSaveEnabled = projectCompilerOptions.compileOnSave;
             }
             this.updateProjectGraphs(this.inferredProjects);
         }
@@ -920,7 +923,7 @@ namespace ts.server {
             const useExistingProject = this.useSingleInferredProject && this.inferredProjects.length;
             const project = useExistingProject
                 ? this.inferredProjects[0]
-                : new InferredProject(this, this.documentRegistry, /*languageServiceEnabled*/ true, this.compilerOptionsForInferredProjects, /*compileOnSaveEnabled*/ false);
+                : new InferredProject(this, this.documentRegistry, /*languageServiceEnabled*/ true, this.compilerOptionsForInferredProjects, /*compileOnSaveEnabled*/ this.compileOnSaveForInferredProjects);
 
             project.addRoot(root);
 
diff --git a/src/server/protocol.d.ts b/src/server/protocol.d.ts
index 8d88c761ba..76e01fa1b2 100644
--- a/src/server/protocol.d.ts
+++ b/src/server/protocol.d.ts
@@ -709,7 +709,7 @@ declare namespace ts.server.protocol {
     }
 
     export interface SetCompilerOptionsForInferredProjectsArgs {
-        options: CompilerOptions;
+        options: ExternalProjectCompilerOptions;
     }
 
     export interface SetCompilerOptionsForInferredProjectsRequest extends Request {