diff --git a/src/vs/workbench/services/configuration/node/configuration.ts b/src/vs/workbench/services/configuration/node/configuration.ts
index 79e24da0d55ae0dbd08c8f7b9e6a5d2708b70966..983bf2b902f16bffefc3f0e8404345fe15703715 100644
--- a/src/vs/workbench/services/configuration/node/configuration.ts
+++ b/src/vs/workbench/services/configuration/node/configuration.ts
@@ -24,6 +24,7 @@ import { JSONEditingService } from 'vs/workbench/services/configuration/node/jso
 import { WorkbenchState } from 'vs/platform/workspace/common/workspace';
 import { ConfigurationScope } from 'vs/platform/configuration/common/configurationRegistry';
 import { relative } from 'path';
+import { equals } from 'vs/base/common/objects';
 
 // node.hs helper functions
 
@@ -189,10 +190,9 @@ export class FolderConfiguration extends Disposable {
 	}
 
 	reprocess(): ConfigurationModel {
-		const oldKeys = this.getUnsupportedKeys();
+		const oldContents = this._folderSettingsModelParser.folderSettingsModel.contents;
 		this._folderSettingsModelParser.reprocess();
-		const newKeys = this.getUnsupportedKeys();
-		if (this.hasKeysChanged(oldKeys, newKeys)) {
+		if (!equals(oldContents, this._folderSettingsModelParser.folderSettingsModel.contents)) {
 			this.consolidate();
 		}
 		return this._cache;
@@ -202,18 +202,6 @@ export class FolderConfiguration extends Disposable {
 		return this._folderSettingsModelParser.folderSettingsModel.unsupportedKeys;
 	}
 
-	private hasKeysChanged(oldKeys: string[], newKeys: string[]): boolean {
-		if (oldKeys.length !== newKeys.length) {
-			return true;
-		}
-		for (const key of oldKeys) {
-			if (newKeys.indexOf(key) === -1) {
-				return true;
-			}
-		}
-		return false;
-	}
-
 	private consolidate(): void {
 		this._cache = this._folderSettingsModelParser.folderSettingsModel.merge(...this._standAloneConfigurations);
 	}
diff --git a/src/vs/workbench/services/configuration/test/node/configurationService.test.ts b/src/vs/workbench/services/configuration/test/node/configurationService.test.ts
index eaa5fa0c3371d165af5345eda5c01017ac32de4c..d41ac767a6901cc0da0f1c90cbd1b4b7503a7511 100644
--- a/src/vs/workbench/services/configuration/test/node/configurationService.test.ts
+++ b/src/vs/workbench/services/configuration/test/node/configurationService.test.ts
@@ -968,6 +968,26 @@ suite('WorkspaceConfigurationService - Multiroot', () => {
 			});
 	});
 
+	test('resource setting in folder is read after it is registered later', () => {
+		fs.writeFileSync(workspaceContextService.getWorkspace().folders[0].toResource('.vscode/settings.json').fsPath, '{ "configurationService.workspace.testNewResourceSetting2": "workspaceFolderValue" }');
+		return jsonEditingServce.write(workspaceContextService.getWorkspace().configuration, { key: 'settings', value: { 'configurationService.workspace.testNewResourceSetting2': 'workspaceValue' } }, true)
+			.then(() => testObject.reloadConfiguration())
+			.then(() => {
+				configurationRegistry.registerConfiguration({
+					'id': '_test',
+					'type': 'object',
+					'properties': {
+						'configurationService.workspace.testNewResourceSetting2': {
+							'type': 'string',
+							'default': 'isSet',
+							scope: ConfigurationScope.RESOURCE
+						}
+					}
+				});
+				assert.equal(testObject.getValue('configurationService.workspace.testNewResourceSetting2', { resource: workspaceContextService.getWorkspace().folders[0].uri }), 'workspaceFolderValue');
+			});
+	});
+
 	test('inspect', () => {
 		let actual = testObject.inspect('something.missing');
 		assert.equal(actual.default, void 0);