diff --git a/packages/shared/src/index.ts b/packages/shared/src/index.ts
index fb0f17dc16..ee93c25aa5 100644
--- a/packages/shared/src/index.ts
+++ b/packages/shared/src/index.ts
@@ -73,6 +73,16 @@ export function getWordRange(wordPattern: RegExp, position: Position, document:
     }
     return undefined;
 }
+export function loadWorkspaceTypescript(root: string, tsdk: string): typeof import('typescript/lib/tsserverlibrary') {
+    const tsPath = path.join(root, tsdk, 'tsserverlibrary.js');
+    return require(path.toUnix(tsPath));
+}
+export function loadWorkspaceTypescriptLocalized(root: string, tsdk: string, lang: string): MapLike<string> | undefined {
+    const tsPath = path.join(root, tsdk, lang, 'diagnosticMessages.generated.json');
+    if (fs.existsSync(tsPath)) {
+        return require(path.toUnix(tsPath));
+    }
+}
 export function loadVscodeTypescript(appRoot: string): typeof import('typescript/lib/tsserverlibrary') {
     const tsPath = path.join(appRoot, 'extensions', 'node_modules', 'typescript');
     return require(path.toUnix(tsPath));
diff --git a/packages/shared/src/types.ts b/packages/shared/src/types.ts
index c9395b8cb2..3564a5d99c 100644
--- a/packages/shared/src/types.ts
+++ b/packages/shared/src/types.ts
@@ -3,4 +3,5 @@ export interface ServerInitializationOptions {
     appRoot: string,
     language: string,
     tsPlugin: boolean,
+    tsdk: string | undefined,
 }
diff --git a/packages/vscode-client/src/extension.ts b/packages/vscode-client/src/extension.ts
index 0c203538cb..69babc94ef 100644
--- a/packages/vscode-client/src/extension.ts
+++ b/packages/vscode-client/src/extension.ts
@@ -67,6 +67,7 @@ function createLanguageService(context: vscode.ExtensionContext, mode: 'api' | '
 		appRoot: vscode.env.appRoot,
 		language: vscode.env.language,
 		tsPlugin: tsPlugin.isTsPluginEnabled(),
+		tsdk: vscode.workspace.getConfiguration('typescript').get<string>('tsdk') ?? undefined,
 	};
 	const clientOptions: lsp.LanguageClientOptions = {
 		documentSelector: fileOnly ?
diff --git a/packages/vscode-server/src/server.ts b/packages/vscode-server/src/server.ts
index e46c43fc70..e86ecf7b4e 100644
--- a/packages/vscode-server/src/server.ts
+++ b/packages/vscode-server/src/server.ts
@@ -1,5 +1,7 @@
 import {
 	DocumentVersionRequest,
+	loadWorkspaceTypescript,
+	loadWorkspaceTypescriptLocalized,
 	loadVscodeTypescript,
 	loadVscodeTypescriptLocalized,
 	SemanticTokensChangedNotification,
@@ -27,10 +29,14 @@ const documents = new TextDocuments(TextDocument);
 
 let options: ServerInitializationOptions;
 let folders: string[] = [];
+let updateTsdk: Function | undefined;
 
 connection.onInitialize(onInitialize);
 connection.onInitialized(onInitialized);
-connection.onDidChangeConfiguration(() => updateConfigs(connection));
+connection.onDidChangeConfiguration(() => {
+	updateTsdk?.();
+	updateConfigs(connection);
+});
 connection.listen();
 documents.listen(connection);
 
@@ -74,14 +80,13 @@ async function onInitialized() {
 	let servicesManager: ServicesManager | undefined;
 
 	if (options.mode === 'html') {
-		const noStateLs = getDocumentLanguageService({ typescript: loadVscodeTypescript(options.appRoot) });
+		const noStateLs = getDocumentLanguageService({ typescript: getTs().module });
 		(await import('./features/htmlFeatures')).register(connection, documents, noStateLs);
 	}
 	else if (options.mode === 'api') {
 		servicesManager = createServicesManager(
 			'api',
-			loadVscodeTypescript(options.appRoot),
-			loadVscodeTypescriptLocalized(options.appRoot, options.language),
+			getTs,
 			connection,
 			documents,
 			folders,
@@ -90,8 +95,7 @@ async function onInitialized() {
 	else if (options.mode === 'doc') {
 		servicesManager = createServicesManager(
 			'doc',
-			loadVscodeTypescript(options.appRoot),
-			loadVscodeTypescriptLocalized(options.appRoot, options.language),
+			getTs,
 			connection,
 			documents,
 			folders,
@@ -112,4 +116,29 @@ async function onInitialized() {
 	}
 	connection.client.register(DidChangeConfigurationNotification.type, undefined);
 	updateConfigs(connection);
+	updateTsdk = async () => {
+		const newTsdk: string | undefined = await connection.workspace.getConfiguration('typescript.tsdk') ?? undefined;
+		if (newTsdk !== options.tsdk) {
+			options.tsdk = newTsdk;
+			servicesManager?.restartAll();
+		}
+	};
+}
+
+function getTs() {
+	if (options.tsdk) {
+		for (const folder of folders) {
+			const ts = loadWorkspaceTypescript(folder, options.tsdk);
+			if (ts) {
+				return {
+					module: ts,
+					localized: loadWorkspaceTypescriptLocalized(folder, options.tsdk, options.language),
+				};
+			}
+		}
+	}
+	return {
+		module: loadVscodeTypescript(options.appRoot),
+		localized: loadVscodeTypescriptLocalized(options.appRoot, options.language),
+	}
 }
diff --git a/packages/vscode-server/src/servicesManager.ts b/packages/vscode-server/src/servicesManager.ts
index 0fa47ce333..0b18112122 100644
--- a/packages/vscode-server/src/servicesManager.ts
+++ b/packages/vscode-server/src/servicesManager.ts
@@ -9,8 +9,10 @@ export type ServicesManager = ReturnType<typeof createServicesManager>;
 
 export function createServicesManager(
 	mode: 'api' | 'doc',
-	ts: typeof import('typescript/lib/tsserverlibrary'),
-	tsLocalized: ts.MapLike<string> | undefined,
+	getTs: () => {
+		module: typeof import('typescript/lib/tsserverlibrary'),
+		localized: ts.MapLike<string> | undefined,
+	},
 	connection: Connection,
 	documents: TextDocuments<TextDocument>,
 	rootPaths: string[],
@@ -19,10 +21,11 @@ export function createServicesManager(
 ) {
 
 	let filesUpdateTrigger = false;
+	const originalTs = getTs().module;
 	const tsConfigNames = ['tsconfig.json', 'jsconfig.json'];
 	const tsConfigWatchers = new Map<string, ts.FileWatcher>();
 	const services = new Map<string, ServiceHandler>();
-	const tsConfigSet = new Set(rootPaths.map(rootPath => ts.sys.readDirectory(rootPath, tsConfigNames, undefined, ['**/*'])).flat());
+	const tsConfigSet = new Set(rootPaths.map(rootPath => originalTs.sys.readDirectory(rootPath, tsConfigNames, undefined, ['**/*'])).flat());
 	const tsConfigs = [...tsConfigSet].filter(tsConfig => tsConfigNames.includes(upath.basename(tsConfig)));
 	const checkedProject = new Set<string>();
 
@@ -30,7 +33,7 @@ export function createServicesManager(
 		onTsConfigChanged(tsConfig);
 	}
 	for (const rootPath of rootPaths) {
-		ts.sys.watchDirectory!(rootPath, async fileName => {
+		originalTs.sys.watchDirectory!(rootPath, async fileName => {
 			if (tsConfigNames.includes(upath.basename(fileName))) {
 				// tsconfig.json changed
 				onTsConfigChanged(fileName);
@@ -147,6 +150,9 @@ export function createServicesManager(
 		}
 	}
 	async function onTsConfigChanged(tsConfig: string) {
+		const _ts = getTs();
+		const ts = _ts.module;
+		const tsLocalized = _ts.localized;
 		for (const doc of documents.all()) {
 			if (doc.languageId === 'vue') {
 				connection.sendDiagnostics({ uri: doc.uri, diagnostics: [] });