diff --git a/extensions/typescript/src/typescriptServiceClient.ts b/extensions/typescript/src/typescriptServiceClient.ts
index 160d9714293dc3d2c9b6532f697d0cda806743ad..8f6db221502636e29ef649bb2e969b59d8ede16e 100644
--- a/extensions/typescript/src/typescriptServiceClient.ts
+++ b/extensions/typescript/src/typescriptServiceClient.ts
@@ -464,6 +464,7 @@ export default class TypeScriptServiceClient implements ITypescriptServiceClient
 				allowSyntheticDefaultImports: true,
 				allowNonTsExtensions: true,
 				allowJs: true,
+				jsx: 'Preserve'
 			};
 			let args: Proto.SetCompilerOptionsForInferredProjectsArgs = {
 				options: compilerOptions