diff --git a/src/harness/harnessLanguageService.ts b/src/harness/harnessLanguageService.ts
index d73f1b6062..6e34c80a3c 100644
--- a/src/harness/harnessLanguageService.ts
+++ b/src/harness/harnessLanguageService.ts
@@ -218,6 +218,9 @@ namespace Harness.LanguageService {
             const snapshot = this.getScriptSnapshot(path);
             return snapshot.getText(0, snapshot.getLength());
         }
+        getTypeRootsVersion() {
+            return 0;
+        }
 
 
         log(s: string): void { }
diff --git a/src/server/editorServices.ts b/src/server/editorServices.ts
index 34e438d37f..3f0670edcc 100644
--- a/src/server/editorServices.ts
+++ b/src/server/editorServices.ts
@@ -363,6 +363,15 @@ namespace ts.server {
             this.printProjects();
         }
 
+        private onTypeRootFileChanged(project: ConfiguredProject, fileName: string) {
+            this.logger.info(`Type root file ${fileName} changed`);
+            this.throttledOperations.schedule(project.configFileName + " * type root", /*delay*/ 250, () => {
+                project.updateTypes();
+                this.updateConfiguredProject(project); // TODO: Figure out why this is needed (should be redundant?)
+                this.refreshInferredProjects();
+            });
+        }
+
         /**
          * This is the callback function when a watched directory has added or removed source code files.
          * @param project the project that associates with this directory watcher
@@ -395,6 +404,8 @@ namespace ts.server {
                 // For configured projects, the change is made outside the tsconfig file, and
                 // it is not likely to affect the project for other files opened by the client. We can
                 // just update the current project.
+
+                this.logger.info("Updating configured project");
                 this.updateConfiguredProject(project);
 
                 // Call refreshInferredProjects to clean up inferred projects we may have
@@ -771,6 +782,7 @@ namespace ts.server {
                 this.watchConfigDirectoryForProject(project, projectOptions);
             }
             project.watchWildcards((project, path) => this.onSourceFileInDirectoryChangedForConfiguredProject(project, path));
+            project.watchTypeRoots((project, path) => this.onTypeRootFileChanged(project, path));
 
             this.configuredProjects.push(project);
             return project;
diff --git a/src/server/lsHost.ts b/src/server/lsHost.ts
index f6530953a5..5b33770ce2 100644
--- a/src/server/lsHost.ts
+++ b/src/server/lsHost.ts
@@ -145,6 +145,10 @@ namespace ts.server {
             return this.project.getRootFilesLSHost();
         }
 
+        getTypeRootsVersion() {
+            return this.project.typesVersion;
+        }
+
         getScriptKind(fileName: string) {
             const info = this.project.getScriptInfoLSHost(fileName);
             return info && info.scriptKind;
diff --git a/src/server/project.ts b/src/server/project.ts
index 9b4c7619fb..01858b4cc6 100644
--- a/src/server/project.ts
+++ b/src/server/project.ts
@@ -69,6 +69,8 @@ namespace ts.server {
 
         protected projectErrors: Diagnostic[];
 
+        public typesVersion = 0;
+
         public isJsOnlyProject() {
             this.updateGraph();
             return allFilesAreJsOrDts(this);
@@ -153,6 +155,12 @@ namespace ts.server {
             return this.program.getSourceFileByPath(path);
         }
 
+        updateTypes() {
+            this.typesVersion++;
+            this.markAsDirty();
+            this.updateGraph();
+        }
+
         close() {
             if (this.program) {
                 // if we have a program - release all files that are enlisted in program
@@ -569,6 +577,7 @@ namespace ts.server {
         private projectFileWatcher: FileWatcher;
         private directoryWatcher: FileWatcher;
         private directoriesWatchedForWildcards: Map<FileWatcher>;
+        private typeRootsWatchers: FileWatcher[];
 
         /** Used for configured projects which may have multiple open roots */
         openRefCount = 0;
@@ -608,6 +617,16 @@ namespace ts.server {
             this.projectFileWatcher = this.projectService.host.watchFile(this.configFileName, _ => callback(this));
         }
 
+        watchTypeRoots(callback: (project: ConfiguredProject, path: string) => void) {
+            const roots = this.getEffectiveTypeRoots();
+            const watchers: FileWatcher[] = [];
+            for (const root of roots) {
+                this.projectService.logger.info(`Add type root watcher for: ${root}`);
+                watchers.push(this.projectService.host.watchDirectory(root, path => callback(this, path), /*recursive*/ false));
+            }
+            this.typeRootsWatchers = watchers;
+        }
+
         watchConfigDirectory(callback: (project: ConfiguredProject, path: string) => void) {
             if (this.directoryWatcher) {
                 return;
@@ -651,6 +670,13 @@ namespace ts.server {
                 this.projectFileWatcher.close();
             }
 
+            if (this.typeRootsWatchers) {
+                for (const watcher of this.typeRootsWatchers) {
+                    watcher.close();
+                }
+                this.typeRootsWatchers = undefined;
+            }
+
             for (const id in this.directoriesWatchedForWildcards) {
                 this.directoriesWatchedForWildcards[id].close();
             }
@@ -667,6 +693,10 @@ namespace ts.server {
             this.openRefCount--;
             return this.openRefCount;
         }
+
+        getEffectiveTypeRoots() {
+            return ts.getEffectiveTypeRoots(this.getCompilerOptions(), this.projectService.host) || [];
+        }
     }
 
     export class ExternalProject extends Project {
diff --git a/src/services/services.ts b/src/services/services.ts
index 8c233c5698..4b6e27e6c6 100644
--- a/src/services/services.ts
+++ b/src/services/services.ts
@@ -1185,6 +1185,11 @@ namespace ts {
         readFile?(path: string, encoding?: string): string;
         fileExists?(path: string): boolean;
 
+        /*
+         * LS host can optionally implement these methods to support automatic updating when new type libraries are installed
+         */
+        getTypeRootsVersion?(): number;
+
         /*
          * LS host can optionally implement this method if it wants to be completely in charge of module name resolution.
          * if implementation is omitted then language service will use built-in module resolution logic and get answers to
@@ -3099,6 +3104,7 @@ namespace ts {
         let ruleProvider: formatting.RulesProvider;
         let program: Program;
         let lastProjectVersion: string;
+        let lastTypesRootVersion = 0;
 
         const useCaseSensitivefileNames = host.useCaseSensitiveFileNames && host.useCaseSensitiveFileNames();
         const cancellationToken = new CancellationTokenObject(host.getCancellationToken && host.getCancellationToken());
@@ -3215,6 +3221,13 @@ namespace ts {
                 };
             }
 
+            const typeRootsVersion = host.getTypeRootsVersion ? host.getTypeRootsVersion() : 0;
+            if (lastTypesRootVersion !== typeRootsVersion) {
+                log("TypeRoots version has changed; provide new program");
+                program = undefined;
+                lastTypesRootVersion = typeRootsVersion;
+            }
+
             const documentRegistryBucketKey = documentRegistry.getKeyForCompilationSettings(newSettings);
             const newProgram = createProgram(hostCache.getRootFileNames(), newSettings, compilerHost, program);
 
diff --git a/src/services/shims.ts b/src/services/shims.ts
index f107809f3d..f2ee5b4409 100644
--- a/src/services/shims.ts
+++ b/src/services/shims.ts
@@ -67,6 +67,7 @@ namespace ts {
         getProjectVersion?(): string;
         useCaseSensitiveFileNames?(): boolean;
 
+        getTypeRootsVersion?(): number;
         readDirectory(rootDir: string, extension: string, basePaths?: string, excludeEx?: string, includeFileEx?: string, includeDirEx?: string, depth?: number): string;
         readFile(path: string, encoding?: string): string;
         fileExists(path: string): boolean;
@@ -358,6 +359,13 @@ namespace ts {
             return this.shimHost.getProjectVersion();
         }
 
+        public getTypeRootsVersion(): number {
+            if (!this.shimHost.getTypeRootsVersion) {
+                return 0;
+            }
+            return this.shimHost.getTypeRootsVersion();
+        }
+
         public useCaseSensitiveFileNames(): boolean {
             return this.shimHost.useCaseSensitiveFileNames ? this.shimHost.useCaseSensitiveFileNames() : false;
         }