diff --git a/packages/language-service/ivy/BUILD.bazel b/packages/language-service/ivy/BUILD.bazel
index 849916eb81..1849b649f7 100644
--- a/packages/language-service/ivy/BUILD.bazel
+++ b/packages/language-service/ivy/BUILD.bazel
@@ -6,6 +6,7 @@ ts_library(
     name = "ivy",
     srcs = glob(["*.ts"]),
     deps = [
+        "//packages/compiler-cli",
         "@npm//typescript",
     ],
 )
diff --git a/packages/language-service/ivy/language_service.ts b/packages/language-service/ivy/language_service.ts
index 3c51444754..b9d258352a 100644
--- a/packages/language-service/ivy/language_service.ts
+++ b/packages/language-service/ivy/language_service.ts
@@ -6,12 +6,50 @@
  * found in the LICENSE file at https://angular.io/license
  */
 
+import {CompilerOptions, createNgCompilerOptions} from '@angular/compiler-cli';
 import * as ts from 'typescript/lib/tsserverlibrary';
 
 export class LanguageService {
-  constructor(private readonly tsLS: ts.LanguageService) {}
+  private options: CompilerOptions;
+
+  constructor(project: ts.server.Project, private readonly tsLS: ts.LanguageService) {
+    this.options = parseNgCompilerOptions(project);
+    this.watchConfigFile(project);
+  }
 
   getSemanticDiagnostics(fileName: string): ts.Diagnostic[] {
     return [];
   }
+
+  private watchConfigFile(project: ts.server.Project) {
+    // TODO: Check the case when the project is disposed. An InferredProject
+    // could be disposed when a tsconfig.json is added to the workspace,
+    // in which case it becomes a ConfiguredProject (or vice-versa).
+    // We need to make sure that the FileWatcher is closed.
+    if (!(project instanceof ts.server.ConfiguredProject)) {
+      return;
+    }
+    const {host} = project.projectService;
+    host.watchFile(
+        project.getConfigFilePath(), (fileName: string, eventKind: ts.FileWatcherEventKind) => {
+          project.log(`Config file changed: ${fileName}`);
+          if (eventKind === ts.FileWatcherEventKind.Changed) {
+            this.options = parseNgCompilerOptions(project);
+          }
+        });
+  }
+}
+
+export function parseNgCompilerOptions(project: ts.server.Project): CompilerOptions {
+  let config = {};
+  if (project instanceof ts.server.ConfiguredProject) {
+    const configPath = project.getConfigFilePath();
+    const result = ts.readConfigFile(configPath, path => project.readFile(path));
+    if (result.error) {
+      project.error(ts.flattenDiagnosticMessageText(result.error.messageText, '\n'));
+    }
+    config = result.config || config;
+  }
+  const basePath = project.getCurrentDirectory();
+  return createNgCompilerOptions(basePath, config, project.getCompilationSettings());
 }
diff --git a/packages/language-service/ivy/test/BUILD.bazel b/packages/language-service/ivy/test/BUILD.bazel
index 2c70a5e70c..938725080a 100644
--- a/packages/language-service/ivy/test/BUILD.bazel
+++ b/packages/language-service/ivy/test/BUILD.bazel
@@ -5,6 +5,7 @@ ts_library(
     testonly = True,
     srcs = glob(["*.ts"]),
     deps = [
+        "//packages/language-service/ivy",
         "@npm//typescript",
     ],
 )
diff --git a/packages/language-service/ivy/test/language_service_spec.ts b/packages/language-service/ivy/test/language_service_spec.ts
new file mode 100644
index 0000000000..0363f1a504
--- /dev/null
+++ b/packages/language-service/ivy/test/language_service_spec.ts
@@ -0,0 +1,24 @@
+/**
+ * @license
+ * Copyright Google Inc. All Rights Reserved.
+ *
+ * Use of this source code is governed by an MIT-style license that can be
+ * found in the LICENSE file at https://angular.io/license
+ */
+
+import {parseNgCompilerOptions} from '../language_service';
+
+import {setup} from './mock_host';
+
+const {project} = setup();
+
+describe('parseNgCompilerOptions', () => {
+  it('should read angularCompilerOptions in tsconfig.json', () => {
+    const options = parseNgCompilerOptions(project);
+    expect(options).toEqual(jasmine.objectContaining({
+      enableIvy: true,  // default for ivy is true
+      fullTemplateTypeCheck: true,
+      strictInjectionParameters: true,
+    }));
+  });
+});
diff --git a/packages/language-service/ivy/ts_plugin.ts b/packages/language-service/ivy/ts_plugin.ts
index 46ba8a49f9..053adbb2cf 100644
--- a/packages/language-service/ivy/ts_plugin.ts
+++ b/packages/language-service/ivy/ts_plugin.ts
@@ -10,10 +10,10 @@ import * as ts from 'typescript/lib/tsserverlibrary';
 import {LanguageService} from './language_service';
 
 export function create(info: ts.server.PluginCreateInfo): ts.LanguageService {
-  const {languageService: tsLS, config} = info;
+  const {project, languageService: tsLS, config} = info;
   const angularOnly = config?.angularOnly === true;
 
-  const ngLS = new LanguageService(tsLS);
+  const ngLS = new LanguageService(project, tsLS);
 
   function getSemanticDiagnostics(fileName: string): ts.Diagnostic[] {
     const diagnostics: ts.Diagnostic[] = [];