diff --git a/.gitignore b/.gitignore
index eb1b47f2..bf412f8c 100644
--- a/.gitignore
+++ b/.gitignore
@@ -39,6 +39,10 @@ jspm_packages/
 # TypeScript v1 declaration files
 typings/
 
+# TypeScript incremental build products
+dist/
+tsconfig.tsbuildinfo
+
 # Optional npm cache directory
 .npm
 
diff --git a/package-lock.json b/package-lock.json
index ce798550..48f95bfd 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1595,6 +1595,11 @@
       "resolved": "https://registry.npmjs.org/@types/normalize-package-data/-/normalize-package-data-2.4.0.tgz",
       "integrity": "sha512-f5j5b/Gf71L+dbqxIpQ4Z2WlmI/mPJ0fOkGGmFgtb6sAu97EPczzbS3/tJKxmcYDj55OX6ssqwDAWOHIYDRDGA=="
     },
+    "@types/parse-json": {
+      "version": "4.0.0",
+      "resolved": "https://registry.npmjs.org/@types/parse-json/-/parse-json-4.0.0.tgz",
+      "integrity": "sha512-//oorEZjL6sbPcKUaCdIGlIUeH26mgzimjBB77G6XRgnDl/L5wOnpyBGRe/Mmf5CVW3PwEBE1NjiMZ/ssFh4wA=="
+    },
     "@types/prettier": {
       "version": "2.1.5",
       "resolved": "https://registry.npmjs.org/@types/prettier/-/prettier-2.1.5.tgz",
@@ -2434,8 +2439,7 @@
     "binary-extensions": {
       "version": "2.1.0",
       "resolved": "https://registry.npmjs.org/binary-extensions/-/binary-extensions-2.1.0.tgz",
-      "integrity": "sha512-1Yj8h9Q+QDF5FzhMs/c9+6UntbD5MkRfRwac8DoEm9ZfUBZ7tZ55YcGVAzEe4bXsdQHEk+s9S5wsOKVdZrw0tQ==",
-      "optional": true
+      "integrity": "sha512-1Yj8h9Q+QDF5FzhMs/c9+6UntbD5MkRfRwac8DoEm9ZfUBZ7tZ55YcGVAzEe4bXsdQHEk+s9S5wsOKVdZrw0tQ=="
     },
     "bindings": {
       "version": "1.5.0",
@@ -2797,7 +2801,6 @@
       "version": "3.4.3",
       "resolved": "https://registry.npmjs.org/chokidar/-/chokidar-3.4.3.tgz",
       "integrity": "sha512-DtM3g7juCXQxFVSNPNByEC2+NImtBuxQQvWlHunpJIS5Ocr0lG306cC7FCi7cEA0fzmybPUIl4txBIobk1gGOQ==",
-      "optional": true,
       "requires": {
         "anymatch": "~3.1.1",
         "braces": "~3.0.2",
@@ -4529,113 +4532,136 @@
       "integrity": "sha1-+8cfDEGt6zf5bFd60e1C2P2sypE="
     },
     "fork-ts-checker-webpack-plugin": {
-      "version": "4.1.6",
-      "resolved": "https://registry.npmjs.org/fork-ts-checker-webpack-plugin/-/fork-ts-checker-webpack-plugin-4.1.6.tgz",
-      "integrity": "sha512-DUxuQaKoqfNne8iikd14SAkh5uw4+8vNifp6gmA73yYNS6ywLIWSLD/n/mBzHQRpW3J7rbATEakmiA8JvkTyZw==",
+      "version": "6.0.1",
+      "resolved": "https://registry.npmjs.org/fork-ts-checker-webpack-plugin/-/fork-ts-checker-webpack-plugin-6.0.1.tgz",
+      "integrity": "sha512-G2uKf40W+a8/TzoCrGK+22ccTIzSBDFz7RquT5WaQ8kKw6TpplY9+THKp71h/3ne6BnXc7CXc2lcwj/nuHd8Vw==",
       "requires": {
-        "@babel/code-frame": "^7.5.5",
-        "chalk": "^2.4.1",
-        "micromatch": "^3.1.10",
+        "@babel/code-frame": "^7.8.3",
+        "@types/json-schema": "^7.0.5",
+        "chalk": "^4.1.0",
+        "chokidar": "^3.4.2",
+        "cosmiconfig": "^6.0.0",
+        "deepmerge": "^4.2.2",
+        "fs-extra": "^9.0.0",
+        "memfs": "^3.1.2",
         "minimatch": "^3.0.4",
-        "semver": "^5.6.0",
-        "tapable": "^1.0.0",
-        "worker-rpc": "^0.1.0"
+        "schema-utils": "2.7.0",
+        "semver": "^7.3.2",
+        "tapable": "^1.0.0"
       },
       "dependencies": {
-        "braces": {
-          "version": "2.3.2",
-          "resolved": "https://registry.npmjs.org/braces/-/braces-2.3.2.tgz",
-          "integrity": "sha512-aNdbnj9P8PjdXU4ybaWLK2IF3jc/EoDYbC7AazW6to3TRsfXxscC9UXOB5iDiEQrkyIbWp2SLQda4+QAa7nc3w==",
+        "ansi-styles": {
+          "version": "4.3.0",
+          "resolved": "https://registry.npmjs.org/ansi-styles/-/ansi-styles-4.3.0.tgz",
+          "integrity": "sha512-zbB9rCJAT1rbjiVDb2hqKFHNYLxgtk8NURxZ3IZwD3F6NtxbXZQCnnSi1Lkx+IDohdPlFp222wVALIheZJQSEg==",
           "requires": {
-            "arr-flatten": "^1.1.0",
-            "array-unique": "^0.3.2",
-            "extend-shallow": "^2.0.1",
-            "fill-range": "^4.0.0",
-            "isobject": "^3.0.1",
-            "repeat-element": "^1.1.2",
-            "snapdragon": "^0.8.1",
-            "snapdragon-node": "^2.0.1",
-            "split-string": "^3.0.2",
-            "to-regex": "^3.0.1"
-          },
-          "dependencies": {
-            "extend-shallow": {
-              "version": "2.0.1",
-              "resolved": "https://registry.npmjs.org/extend-shallow/-/extend-shallow-2.0.1.tgz",
-              "integrity": "sha1-Ua99YUrZqfYQ6huvu5idaxxWiQ8=",
-              "requires": {
-                "is-extendable": "^0.1.0"
-              }
-            }
+            "color-convert": "^2.0.1"
           }
         },
-        "fill-range": {
+        "chalk": {
+          "version": "4.1.0",
+          "resolved": "https://registry.npmjs.org/chalk/-/chalk-4.1.0.tgz",
+          "integrity": "sha512-qwx12AxXe2Q5xQ43Ac//I6v5aXTipYrSESdOgzrN+9XjgEpyjpKuvSGaN4qE93f7TQTlerQQ8S+EQ0EyDoVL1A==",
+          "requires": {
+            "ansi-styles": "^4.1.0",
+            "supports-color": "^7.1.0"
+          }
+        },
+        "color-convert": {
+          "version": "2.0.1",
+          "resolved": "https://registry.npmjs.org/color-convert/-/color-convert-2.0.1.tgz",
+          "integrity": "sha512-RRECPsj7iu/xb5oKYcsFHSppFNnsj/52OVTRKb4zP5onXwVF3zVmmToNcOfGC+CRDpfK/U584fMg38ZHCaElKQ==",
+          "requires": {
+            "color-name": "~1.1.4"
+          }
+        },
+        "color-name": {
+          "version": "1.1.4",
+          "resolved": "https://registry.npmjs.org/color-name/-/color-name-1.1.4.tgz",
+          "integrity": "sha512-dOy+3AuW3a2wNbZHIuMZpTcgjGuLU/uBL/ubcZF9OXbDo8ff4O8yVp5Bf0efS8uEoYo5q4Fx7dY9OgQGXgAsQA=="
+        },
+        "cosmiconfig": {
+          "version": "6.0.0",
+          "resolved": "https://registry.npmjs.org/cosmiconfig/-/cosmiconfig-6.0.0.tgz",
+          "integrity": "sha512-xb3ZL6+L8b9JLLCx3ZdoZy4+2ECphCMo2PwqgP1tlfVq6M6YReyzBJtvWWtbDSpNr9hn96pkCiZqUcFEc+54Qg==",
+          "requires": {
+            "@types/parse-json": "^4.0.0",
+            "import-fresh": "^3.1.0",
+            "parse-json": "^5.0.0",
+            "path-type": "^4.0.0",
+            "yaml": "^1.7.2"
+          }
+        },
+        "fs-extra": {
+          "version": "9.0.1",
+          "resolved": "https://registry.npmjs.org/fs-extra/-/fs-extra-9.0.1.tgz",
+          "integrity": "sha512-h2iAoN838FqAFJY2/qVpzFXy+EBxfVE220PalAqQLDVsFOHLJrZvut5puAbCdNv6WJk+B8ihI+k0c7JK5erwqQ==",
+          "requires": {
+            "at-least-node": "^1.0.0",
+            "graceful-fs": "^4.2.0",
+            "jsonfile": "^6.0.1",
+            "universalify": "^1.0.0"
+          }
+        },
+        "has-flag": {
           "version": "4.0.0",
-          "resolved": "https://registry.npmjs.org/fill-range/-/fill-range-4.0.0.tgz",
-          "integrity": "sha1-1USBHUKPmOsGpj3EAtJAPDKMOPc=",
+          "resolved": "https://registry.npmjs.org/has-flag/-/has-flag-4.0.0.tgz",
+          "integrity": "sha512-EykJT/Q1KjTWctppgIAgfSO0tKVuZUjhgMr17kqTumMl6Afv3EISleU7qZUzoXDFTAHTDC4NOoG/ZxU3EvlMPQ=="
+        },
+        "jsonfile": {
+          "version": "6.1.0",
+          "resolved": "https://registry.npmjs.org/jsonfile/-/jsonfile-6.1.0.tgz",
+          "integrity": "sha512-5dgndWOriYSm5cnYaJNhalLNDKOqFwyDB/rr1E9ZsGciGvKPs8R2xYGCacuf3z6K1YKDz182fd+fY3cn3pMqXQ==",
           "requires": {
-            "extend-shallow": "^2.0.1",
-            "is-number": "^3.0.0",
-            "repeat-string": "^1.6.1",
-            "to-regex-range": "^2.1.0"
+            "graceful-fs": "^4.1.6",
+            "universalify": "^2.0.0"
           },
           "dependencies": {
-            "extend-shallow": {
-              "version": "2.0.1",
-              "resolved": "https://registry.npmjs.org/extend-shallow/-/extend-shallow-2.0.1.tgz",
-              "integrity": "sha1-Ua99YUrZqfYQ6huvu5idaxxWiQ8=",
-              "requires": {
-                "is-extendable": "^0.1.0"
-              }
+            "universalify": {
+              "version": "2.0.0",
+              "resolved": "https://registry.npmjs.org/universalify/-/universalify-2.0.0.tgz",
+              "integrity": "sha512-hAZsKq7Yy11Zu1DE0OzWjw7nnLZmJZYTDZZyEFHZdUhV8FkH5MCfoU1XMaxXovpyW5nq5scPqq0ZDP9Zyl04oQ=="
             }
           }
         },
-        "is-number": {
-          "version": "3.0.0",
-          "resolved": "https://registry.npmjs.org/is-number/-/is-number-3.0.0.tgz",
-          "integrity": "sha1-JP1iAaR4LPUFYcgQJ2r8fRLXEZU=",
+        "parse-json": {
+          "version": "5.1.0",
+          "resolved": "https://registry.npmjs.org/parse-json/-/parse-json-5.1.0.tgz",
+          "integrity": "sha512-+mi/lmVVNKFNVyLXV31ERiy2CY5E1/F6QtJFEzoChPRwwngMNXRDQ9GJ5WdE2Z2P4AujsOi0/+2qHID68KwfIQ==",
           "requires": {
-            "kind-of": "^3.0.2"
-          },
-          "dependencies": {
-            "kind-of": {
-              "version": "3.2.2",
-              "resolved": "https://registry.npmjs.org/kind-of/-/kind-of-3.2.2.tgz",
-              "integrity": "sha1-MeohpzS6ubuw8yRm2JOupR5KPGQ=",
-              "requires": {
-                "is-buffer": "^1.1.5"
-              }
-            }
+            "@babel/code-frame": "^7.0.0",
+            "error-ex": "^1.3.1",
+            "json-parse-even-better-errors": "^2.3.0",
+            "lines-and-columns": "^1.1.6"
           }
         },
-        "micromatch": {
-          "version": "3.1.10",
-          "resolved": "https://registry.npmjs.org/micromatch/-/micromatch-3.1.10.tgz",
-          "integrity": "sha512-MWikgl9n9M3w+bpsY3He8L+w9eF9338xRl8IAO5viDizwSzziFEyUzo2xrrloB64ADbTf8uA8vRqqttDTOmccg==",
+        "schema-utils": {
+          "version": "2.7.0",
+          "resolved": "https://registry.npmjs.org/schema-utils/-/schema-utils-2.7.0.tgz",
+          "integrity": "sha512-0ilKFI6QQF5nxDZLFn2dMjvc4hjg/Wkg7rHd3jK6/A4a1Hl9VFdQWvgB1UMGoU94pad1P/8N7fMcEnLnSiju8A==",
           "requires": {
-            "arr-diff": "^4.0.0",
-            "array-unique": "^0.3.2",
-            "braces": "^2.3.1",
-            "define-property": "^2.0.2",
-            "extend-shallow": "^3.0.2",
-            "extglob": "^2.0.4",
-            "fragment-cache": "^0.2.1",
-            "kind-of": "^6.0.2",
-            "nanomatch": "^1.2.9",
-            "object.pick": "^1.3.0",
-            "regex-not": "^1.0.0",
-            "snapdragon": "^0.8.1",
-            "to-regex": "^3.0.2"
+            "@types/json-schema": "^7.0.4",
+            "ajv": "^6.12.2",
+            "ajv-keywords": "^3.4.1"
           }
         },
-        "to-regex-range": {
-          "version": "2.1.1",
-          "resolved": "https://registry.npmjs.org/to-regex-range/-/to-regex-range-2.1.1.tgz",
-          "integrity": "sha1-fIDBe53+vlmeJzZ+DU3VWQFB2zg=",
+        "semver": {
+          "version": "7.3.2",
+          "resolved": "https://registry.npmjs.org/semver/-/semver-7.3.2.tgz",
+          "integrity": "sha512-OrOb32TeeambH6UrhtShmF7CRDqhL6/5XpPNp2DuRH6+9QLw/orhp72j87v8Qa1ScDkvrrBNpZcDejAirJmfXQ=="
+        },
+        "supports-color": {
+          "version": "7.2.0",
+          "resolved": "https://registry.npmjs.org/supports-color/-/supports-color-7.2.0.tgz",
+          "integrity": "sha512-qpCAvRl9stuOHveKsn7HncJRvv501qIacKzQlO/+Lwxc9+0q2wLyv4Dfvt80/DPn2pqOBsJdDiogXGR9+OvwRw==",
           "requires": {
-            "is-number": "^3.0.0",
-            "repeat-string": "^1.6.1"
+            "has-flag": "^4.0.0"
           }
+        },
+        "universalify": {
+          "version": "1.0.0",
+          "resolved": "https://registry.npmjs.org/universalify/-/universalify-1.0.0.tgz",
+          "integrity": "sha512-rb6X1W158d7pRQBg5gkR8uPaSfiids68LTJQYOtEUhoJUWBdaQHsuT/EUduxXYxcrt4r5PJ4fuHW1MHT6p0qug=="
         }
       }
     },
@@ -4689,6 +4715,11 @@
         "minipass": "^3.0.0"
       }
     },
+    "fs-monkey": {
+      "version": "1.0.1",
+      "resolved": "https://registry.npmjs.org/fs-monkey/-/fs-monkey-1.0.1.tgz",
+      "integrity": "sha512-fcSa+wyTqZa46iWweI7/ZiUfegOZl0SG8+dltIwFXo7+zYU9J9kpS3NB6pZcSlJdhvIwp81Adx2XhZorncxiaA=="
+    },
     "fs-write-stream-atomic": {
       "version": "1.0.10",
       "resolved": "https://registry.npmjs.org/fs-write-stream-atomic/-/fs-write-stream-atomic-1.0.10.tgz",
@@ -5343,7 +5374,6 @@
       "version": "2.1.0",
       "resolved": "https://registry.npmjs.org/is-binary-path/-/is-binary-path-2.1.0.tgz",
       "integrity": "sha512-ZMERYes6pDydyuGidse7OsHxtbI7WVeUEozgR/g7rd0xUimYNlvZRE/K2MgZTjWy725IfelLeVcEM97mmtRGXw==",
-      "optional": true,
       "requires": {
         "binary-extensions": "^2.0.0"
       }
@@ -7452,6 +7482,14 @@
         "safe-buffer": "^5.1.2"
       }
     },
+    "memfs": {
+      "version": "3.2.0",
+      "resolved": "https://registry.npmjs.org/memfs/-/memfs-3.2.0.tgz",
+      "integrity": "sha512-f/xxz2TpdKv6uDn6GtHee8ivFyxwxmPuXatBb1FBwxYNuVpbM3k/Y1Z+vC0mH/dIXXrukYfe3qe5J32Dfjg93A==",
+      "requires": {
+        "fs-monkey": "1.0.1"
+      }
+    },
     "memory-fs": {
       "version": "0.5.0",
       "resolved": "https://registry.npmjs.org/memory-fs/-/memory-fs-0.5.0.tgz",
@@ -7541,11 +7579,6 @@
       "resolved": "https://registry.npmjs.org/merge2/-/merge2-1.4.1.tgz",
       "integrity": "sha512-8q7VEgMJW4J8tcfVPy8g09NcQwZdbwFEqhe/WZkoIzjn/3TGDwtOCYtXGxA3O8tPzpczCCDgv+P2P5y00ZJOOg=="
     },
-    "microevent.ts": {
-      "version": "0.1.1",
-      "resolved": "https://registry.npmjs.org/microevent.ts/-/microevent.ts-0.1.1.tgz",
-      "integrity": "sha512-jo1OfR4TaEwd5HOrt5+tAZ9mqT4jmpNAusXtyfNzqVm9uiSYFZlKM1wYL4oU7azZW/PxQW53wM0S6OR1JHNa2g=="
-    },
     "micromatch": {
       "version": "4.0.2",
       "resolved": "https://registry.npmjs.org/micromatch/-/micromatch-4.0.2.tgz",
@@ -8848,7 +8881,6 @@
       "version": "3.5.0",
       "resolved": "https://registry.npmjs.org/readdirp/-/readdirp-3.5.0.tgz",
       "integrity": "sha512-cMhu7c/8rdhkHXWsY+osBhfSy0JikwpHK/5+imo+LpeasTF8ouErHrlYkwT0++njiyuDvc7OFY5T3ukvZ8qmFQ==",
-      "optional": true,
       "requires": {
         "picomatch": "^2.2.1"
       }
@@ -10422,9 +10454,9 @@
       }
     },
     "ts-loader": {
-      "version": "6.2.2",
-      "resolved": "https://registry.npmjs.org/ts-loader/-/ts-loader-6.2.2.tgz",
-      "integrity": "sha512-HDo5kXZCBml3EUPcc7RlZOV/JGlLHwppTLEHb3SHnr5V7NXD4klMEkrhJe5wgRbaWsSXi+Y1SIBN/K9B6zWGWQ==",
+      "version": "8.0.11",
+      "resolved": "https://registry.npmjs.org/ts-loader/-/ts-loader-8.0.11.tgz",
+      "integrity": "sha512-06X+mWA2JXoXJHYAesUUL4mHFYhnmyoCdQVMXofXF552Lzd4wNwSGg7unJpttqUP7ziaruM8d7u8LUB6I1sgzA==",
       "requires": {
         "chalk": "^2.3.0",
         "enhanced-resolve": "^4.0.0",
@@ -11305,14 +11337,6 @@
         "errno": "~0.1.7"
       }
     },
-    "worker-rpc": {
-      "version": "0.1.1",
-      "resolved": "https://registry.npmjs.org/worker-rpc/-/worker-rpc-0.1.1.tgz",
-      "integrity": "sha512-P1WjMrUB3qgJNI9jfmpZ/htmBEjFh//6l/5y8SD9hg1Ef5zTTVVoRjTrTEzPrNBQvmhMxkoTsjOXN10GWU7aCg==",
-      "requires": {
-        "microevent.ts": "~0.1.1"
-      }
-    },
     "wrap-ansi": {
       "version": "6.2.0",
       "resolved": "https://registry.npmjs.org/wrap-ansi/-/wrap-ansi-6.2.0.tgz",
@@ -11468,6 +11492,11 @@
       "resolved": "https://registry.npmjs.org/yallist/-/yallist-4.0.0.tgz",
       "integrity": "sha512-3wdGidZyq5PB084XLES5TpOSRA3wjXAlIWMhum2kRcv/41Sn2emQ0dycQW4uZXLejwKvg6EsvbdlVL+FYEct7A=="
     },
+    "yaml": {
+      "version": "1.10.0",
+      "resolved": "https://registry.npmjs.org/yaml/-/yaml-1.10.0.tgz",
+      "integrity": "sha512-yr2icI4glYaNG+KWONODapy2/jDdMSDnrONSjblABjD9B4Z5LgiircSt8m8sRZFNi08kG9Sm0uSHtEmP3zaEGg=="
+    },
     "yargs": {
       "version": "15.4.1",
       "resolved": "https://registry.npmjs.org/yargs/-/yargs-15.4.1.tgz",
diff --git a/package.json b/package.json
index bd698e16..64d7d349 100644
--- a/package.json
+++ b/package.json
@@ -50,7 +50,7 @@
     "eslint": "^7.12.0",
     "eslint-config-strongloop": "^2.1.0",
     "eslint-loader": "^4.0.2",
-    "fork-ts-checker-webpack-plugin": "^4.0.1",
+    "fork-ts-checker-webpack-plugin": "^6.0.1",
     "graphql": "^14.6.0",
     "graphql-tag": "^2.10.3",
     "hard-source-webpack-plugin": "^0.13.1",
@@ -67,7 +67,7 @@
     "serverless-webpack": "^5.3.1",
     "source-map-support": "^0.4.18",
     "ts-jest": "^26.4.1",
-    "ts-loader": "^6.2.1",
+    "ts-loader": "^8.0.11",
     "tsconfig-paths-webpack-plugin": "^3.2.0",
     "typescript": "^4.0.2",
     "webpack": "^4.44.1",
diff --git a/src/webpack.config.js b/src/webpack.config.js
index 80a2fcf2..86d959d5 100644
--- a/src/webpack.config.js
+++ b/src/webpack.config.js
@@ -148,6 +148,7 @@ function tsLoader() {
   return {
     loader: "ts-loader",
     options: {
+      projectReferences: true,
       transpileOnly: true,
       configFile: tsConfigPath,
       experimentalWatchApi: true
@@ -238,12 +239,17 @@ function plugins() {
   const plugins = [];
 
   if (ENABLE_TYPESCRIPT) {
-    const forkTsCheckerWebpackOptions = { tsconfig: tsConfigPath };
+    const forkTsCheckerWebpackOptions = {
+      typescript: {
+        configFile: tsConfigPath,
+        build: true
+      }
+    };
 
     if (ENABLE_LINTING) {
-      forkTsCheckerWebpackOptions.eslint = true;
-      forkTsCheckerWebpackOptions.eslintOptions = {
-        baseConfig: tsEslintConfig
+      forkTsCheckerWebpackOptions.eslint = {
+        files: path.join(servicePath, "**/*.ts"),
+        options: { baseConfig: tsEslintConfig }
       };
     }
 
diff --git a/tests/typescript-project-references/lib-bar/package-lock.json b/tests/typescript-project-references/lib-bar/package-lock.json
new file mode 100644
index 00000000..470e2dfa
--- /dev/null
+++ b/tests/typescript-project-references/lib-bar/package-lock.json
@@ -0,0 +1,5 @@
+{
+  "name": "lib-bar",
+  "version": "1.0.0",
+  "lockfileVersion": 1
+}
diff --git a/tests/typescript-project-references/lib-bar/package.json b/tests/typescript-project-references/lib-bar/package.json
new file mode 100644
index 00000000..8aaf2e03
--- /dev/null
+++ b/tests/typescript-project-references/lib-bar/package.json
@@ -0,0 +1,6 @@
+{
+  "name": "lib-bar",
+  "version": "1.0.0",
+  "main": "dist/index.js",
+  "license": "MIT"
+}
diff --git a/tests/typescript-project-references/lib-bar/src/index.ts b/tests/typescript-project-references/lib-bar/src/index.ts
new file mode 100644
index 00000000..3e4684c1
--- /dev/null
+++ b/tests/typescript-project-references/lib-bar/src/index.ts
@@ -0,0 +1 @@
+export const getMeaningOfLife = () => "42, so they tell me";
diff --git a/tests/typescript-project-references/lib-bar/tsconfig.json b/tests/typescript-project-references/lib-bar/tsconfig.json
new file mode 100644
index 00000000..e1e29caa
--- /dev/null
+++ b/tests/typescript-project-references/lib-bar/tsconfig.json
@@ -0,0 +1,8 @@
+{
+  "extends": "../tsconfig-base.json",
+  "compilerOptions": {
+    "outDir": "dist",
+    "rootDir": "src"
+  },
+  "include": ["src/"]
+}
diff --git a/tests/typescript-project-references/service-foo/package-lock.json b/tests/typescript-project-references/service-foo/package-lock.json
new file mode 100644
index 00000000..27107716
--- /dev/null
+++ b/tests/typescript-project-references/service-foo/package-lock.json
@@ -0,0 +1,11 @@
+{
+  "name": "service-foo",
+  "version": "1.0.0",
+  "lockfileVersion": 1,
+  "requires": true,
+  "dependencies": {
+    "lib-bar": {
+      "version": "file:../lib-bar"
+    }
+  }
+}
diff --git a/tests/typescript-project-references/service-foo/package.json b/tests/typescript-project-references/service-foo/package.json
new file mode 100644
index 00000000..ef21945e
--- /dev/null
+++ b/tests/typescript-project-references/service-foo/package.json
@@ -0,0 +1,9 @@
+{
+  "name": "service-foo",
+  "version": "1.0.0",
+  "main": "dist/index.js",
+  "license": "MIT",
+  "dependencies": {
+    "lib-bar": "file:../lib-bar"
+  }
+}
diff --git a/tests/typescript-project-references/service-foo/serverless.yml b/tests/typescript-project-references/service-foo/serverless.yml
new file mode 100644
index 00000000..8b6cf0e6
--- /dev/null
+++ b/tests/typescript-project-references/service-foo/serverless.yml
@@ -0,0 +1,12 @@
+service: service-foo
+
+plugins:
+  - '../../../index'
+
+provider:
+  name: aws
+  runtime: nodejs10.x
+
+functions:
+  hello:
+    handler: src/handler.hello
diff --git a/tests/typescript-project-references/service-foo/src/handler.ts b/tests/typescript-project-references/service-foo/src/handler.ts
new file mode 100644
index 00000000..85584958
--- /dev/null
+++ b/tests/typescript-project-references/service-foo/src/handler.ts
@@ -0,0 +1,11 @@
+import { getMeaningOfLife } from "lib-bar";
+
+export const hello = async (event: any) => {
+  return {
+    statusCode: 200,
+    body: JSON.stringify({
+      message: getMeaningOfLife(),
+      input: event
+    })
+  };
+};
diff --git a/tests/typescript-project-references/service-foo/tsconfig.json b/tests/typescript-project-references/service-foo/tsconfig.json
new file mode 100644
index 00000000..6ef786c3
--- /dev/null
+++ b/tests/typescript-project-references/service-foo/tsconfig.json
@@ -0,0 +1,9 @@
+{
+  "extends": "../tsconfig-base.json",
+  "compilerOptions": {
+    "outDir": "dist",
+    "rootDir": "src"
+  },
+  "include": ["src/"],
+  "references": [{ "path": "../lib-bar" }]
+}
diff --git a/tests/typescript-project-references/tsconfig-base.json b/tests/typescript-project-references/tsconfig-base.json
new file mode 100644
index 00000000..12eb9c25
--- /dev/null
+++ b/tests/typescript-project-references/tsconfig-base.json
@@ -0,0 +1,9 @@
+{
+  "compilerOptions": {
+    "baseUrl": ".",
+    "target": "es6",
+    "moduleResolution": "node",
+    "composite": true,
+    "incremental": true
+  }
+}
diff --git a/tests/typescript-project-references/typescript-project-references.test.js b/tests/typescript-project-references/typescript-project-references.test.js
new file mode 100644
index 00000000..22d444fc
--- /dev/null
+++ b/tests/typescript-project-references/typescript-project-references.test.js
@@ -0,0 +1,16 @@
+const { runSlsCommand, clearNpmCache } = require("../helpers");
+const { join } = require("path");
+
+beforeEach(async () => {
+  await clearNpmCache(__dirname);
+});
+
+afterAll(async () => {
+  await clearNpmCache(__dirname);
+});
+
+test("typescript-project-references", async () => {
+  const result = await runSlsCommand(join(__dirname, "service-foo"));
+
+  expect(result).toContain("42, so they tell me");
+});