diff --git a/extensions/typescript-language-features/package.json b/extensions/typescript-language-features/package.json
index 595dbaea0c0..8c5e9a4165e 100644
--- a/extensions/typescript-language-features/package.json
+++ b/extensions/typescript-language-features/package.json
@@ -686,6 +686,22 @@
           "description": "%typescript.preferences.importModuleSpecifierEnding%",
           "scope": "resource"
         },
+        "typescript.preferences.includePackageJsonAutoImports": {
+          "type": "string",
+          "enum": [
+            "all",
+            "exclude-dev",
+            "none"
+          ],
+          "enumDescriptions": [
+            "%typescript.preferences.includePackageJsonAutoImports.all%",
+            "%typescript.preferences.includePackageJsonAutoImports.excludeDev%",
+            "%typescript.preferences.includePackageJsonAutoImports.none%"
+          ],
+          "default": "exclude-dev",
+          "markdownDescription": "%typescript.preferences.includePackageJsonAutoImports%",
+          "scope": "window"
+        },
         "javascript.preferences.renameShorthandProperties": {
           "type": "boolean",
           "default": true,
diff --git a/extensions/typescript-language-features/package.nls.json b/extensions/typescript-language-features/package.nls.json
index 6f4241434ef..c59d90a3267 100644
--- a/extensions/typescript-language-features/package.nls.json
+++ b/extensions/typescript-language-features/package.nls.json
@@ -74,8 +74,12 @@
 	"typescript.preferences.importModuleSpecifierEnding": "Preferred path ending for auto imports.",
 	"typescript.preferences.importModuleSpecifierEnding.auto": "Use project settings to select a default.",
 	"typescript.preferences.importModuleSpecifierEnding.minimal": "Shorten `./component/index.js` to `./component`.",
-	"typescript.preferences.importModuleSpecifierEnding.index": "Shorten `./component/index.js` to `./component/index`",
+	"typescript.preferences.importModuleSpecifierEnding.index": "Shorten `./component/index.js` to `./component/index`.",
 	"typescript.preferences.importModuleSpecifierEnding.js": "Do not shorten path endings; include the `.js` extension.",
+	"typescript.preferences.includePackageJsonAutoImports": "Enable/disable processing `package.json` dependencies for available auto imports.",
+	"typescript.preferences.includePackageJsonAutoImports.all": "Include all listed dependencies.",
+	"typescript.preferences.includePackageJsonAutoImports.excludeDev": "Exclude devDependencies.",
+	"typescript.preferences.includePackageJsonAutoImports.none": "Disable package.json dependency processing.",
 	"typescript.updateImportsOnFileMove.enabled": "Enable/disable automatic updating of import paths when you rename or move a file in VS Code. Requires using TypeScript 2.9 or newer in the workspace.",
 	"typescript.updateImportsOnFileMove.enabled.prompt": "Prompt on each rename.",
 	"typescript.updateImportsOnFileMove.enabled.always": "Always update paths automatically.",
diff --git a/extensions/typescript-language-features/src/typescriptServiceClient.ts b/extensions/typescript-language-features/src/typescriptServiceClient.ts
index a9df17de471..3f086292310 100644
--- a/extensions/typescript-language-features/src/typescriptServiceClient.ts
+++ b/extensions/typescript-language-features/src/typescriptServiceClient.ts
@@ -526,6 +526,8 @@ export default class TypeScriptServiceClient extends Disposable implements IType
 			preferences: {
 				providePrefixAndSuffixTextForRename: true,
 				allowRenameOfImportPath: true,
+				// @ts-expect-error, remove after 4.0 protocol update
+				includePackageJsonAutoImports: this._configuration.includePackageJsonAutoImports,
 			},
 			watchOptions
 		};
diff --git a/extensions/typescript-language-features/src/utils/configuration.ts b/extensions/typescript-language-features/src/utils/configuration.ts
index adeccbb8efc..cde1e14b9a0 100644
--- a/extensions/typescript-language-features/src/utils/configuration.ts
+++ b/extensions/typescript-language-features/src/utils/configuration.ts
@@ -66,6 +66,7 @@ export class TypeScriptServiceConfiguration {
 	public readonly maxTsServerMemory: number;
 	public readonly enablePromptUseWorkspaceTsdk: boolean;
 	public readonly watchOptions: protocol.WatchOptions | undefined;
+	public readonly includePackageJsonAutoImports: string | undefined;
 
 	public static loadFromWorkspace(): TypeScriptServiceConfiguration {
 		return new TypeScriptServiceConfiguration();
@@ -88,6 +89,7 @@ export class TypeScriptServiceConfiguration {
 		this.maxTsServerMemory = TypeScriptServiceConfiguration.readMaxTsServerMemory(configuration);
 		this.enablePromptUseWorkspaceTsdk = TypeScriptServiceConfiguration.readEnablePromptUseWorkspaceTsdk(configuration);
 		this.watchOptions = TypeScriptServiceConfiguration.readWatchOptions(configuration);
+		this.includePackageJsonAutoImports = TypeScriptServiceConfiguration.readIncludePackageJsonAutoImports(configuration);
 	}
 
 	public isEqualTo(other: TypeScriptServiceConfiguration): boolean {
@@ -104,7 +106,8 @@ export class TypeScriptServiceConfiguration {
 			&& this.enableProjectDiagnostics === other.enableProjectDiagnostics
 			&& this.maxTsServerMemory === other.maxTsServerMemory
 			&& objects.equals(this.watchOptions, other.watchOptions)
-			&& this.enablePromptUseWorkspaceTsdk === other.enablePromptUseWorkspaceTsdk;
+			&& this.enablePromptUseWorkspaceTsdk === other.enablePromptUseWorkspaceTsdk
+			&& this.includePackageJsonAutoImports === other.includePackageJsonAutoImports;
 	}
 
 	private static fixPathPrefixes(inspectValue: string): string {
@@ -178,6 +181,10 @@ export class TypeScriptServiceConfiguration {
 		return configuration.get<protocol.WatchOptions>('typescript.tsserver.watchOptions');
 	}
 
+	private static readIncludePackageJsonAutoImports(configuration: vscode.WorkspaceConfiguration): string | undefined {
+		return configuration.get<string>('typescript.preferences.includePackageJsonAutoImports');
+	}
+
 	private static readMaxTsServerMemory(configuration: vscode.WorkspaceConfiguration): number {
 		const defaultMaxMemory = 3072;
 		const minimumMaxMemory = 128;