diff --git a/src/after-compile.ts b/src/after-compile.ts
index d6547848d..8fa9da180 100644
--- a/src/after-compile.ts
+++ b/src/after-compile.ts
@@ -3,7 +3,11 @@ import * as ts from 'typescript';
 import * as webpack from 'webpack';
 
 import * as constants from './constants';
-import { getEmitFromWatchHost, getEmitOutput } from './instances';
+import {
+  getEmitFromWatchHost,
+  getEmitOutput,
+  isReferencedFile
+} from './instances';
 import {
   TSFile,
   TSFiles,
@@ -339,25 +343,24 @@ function provideDeclarationFilesToWebpack(
       continue;
     }
 
-    addDeclarationFilesAsAsset(
-      getEmitOutput(
-        instance,
-        filePath,
-        /*skipActualOutputReadOfReferencedFile*/ true
-      ),
-      compilation
-    );
+    if (!isReferencedFile(instance, filePath)) {
+      addDeclarationFilesAsAsset(
+        getEmitOutput(instance, filePath),
+        compilation
+      );
+    }
   }
 }
 
-function addDeclarationFilesAsAsset(
-  outputFiles: ts.OutputFile[] | IterableIterator<ts.OutputFile>,
-  compilation: webpack.compilation.Compilation
+function addDeclarationFilesAsAsset<T extends ts.OutputFile>(
+  outputFiles: T[] | IterableIterator<T>,
+  compilation: webpack.compilation.Compilation,
+  skipOutputFile?: (outputFile: T) => boolean
 ) {
-  outputFilesToAsset(
-    outputFiles,
-    compilation,
-    outputFile => !outputFile.name.match(constants.dtsDtsxOrDtsDtsxMapRegex)
+  outputFilesToAsset(outputFiles, compilation, outputFile =>
+    skipOutputFile && skipOutputFile(outputFile)
+      ? true
+      : !outputFile.name.match(constants.dtsDtsxOrDtsDtsxMapRegex)
   );
 }
 
@@ -375,10 +378,10 @@ function outputFileToAsset(
   };
 }
 
-function outputFilesToAsset(
-  outputFiles: ts.OutputFile[] | IterableIterator<ts.OutputFile>,
+function outputFilesToAsset<T extends ts.OutputFile>(
+  outputFiles: T[] | IterableIterator<T>,
   compilation: webpack.compilation.Compilation,
-  skipOutputFile?: (outputFile: ts.OutputFile) => boolean
+  skipOutputFile?: (outputFile: T) => boolean
 ) {
   for (const outputFile of outputFiles) {
     if (!skipOutputFile || !skipOutputFile(outputFile)) {
@@ -417,12 +420,21 @@ function provideAssetsFromSolutionBuilderHost(
     // written files
     addDeclarationFilesAsAsset(
       instance.solutionBuilderHost.outputFiles.values(),
-      compilation
+      compilation,
+      outputFile => !outputFile.isNew
     );
     // tsbuild infos
-    outputFilesToAsset(instance.solutionBuilderHost.tsbuildinfos, compilation);
-    instance.solutionBuilderHost.outputFiles.clear();
-    instance.solutionBuilderHost.tsbuildinfos.length = 0;
+    outputFilesToAsset(
+      instance.solutionBuilderHost.tsbuildinfos.values(),
+      compilation,
+      outputFile => !outputFile.isNew
+    );
+    instance.solutionBuilderHost.outputFiles.forEach(
+      outputFile => (outputFile.isNew = false)
+    );
+    instance.solutionBuilderHost.tsbuildinfos.forEach(
+      outputFile => (outputFile.isNew = false)
+    );
   }
 }
 
diff --git a/src/index.ts b/src/index.ts
index 34ed8c978..be22b18a0 100644
--- a/src/index.ts
+++ b/src/index.ts
@@ -5,9 +5,11 @@ import * as webpack from 'webpack';
 
 import * as constants from './constants';
 import {
+  buildSolutionReferences,
   getEmitOutput,
   getInputFileNameFromOutput,
   getTypeScriptInstance,
+  initializeInstance,
   isReferencedFile
 } from './instances';
 import {
@@ -44,36 +46,38 @@ function loader(this: webpack.loader.LoaderContext, contents: string) {
     return;
   }
 
-  return successLoader(
-    this,
-    contents,
-    callback,
-    options,
-    instanceOrError.instance!
-  );
+  const instance = instanceOrError.instance!;
+  buildSolutionReferences(instance, this, instance.log);
+  successLoader(this, contents, callback, instance);
 }
 
 function successLoader(
   loaderContext: webpack.loader.LoaderContext,
   contents: string,
   callback: webpack.loader.loaderCallback,
-  options: LoaderOptions,
   instance: TSInstance
 ) {
+  initializeInstance(loaderContext, instance);
   const rawFilePath = path.normalize(loaderContext.resourcePath);
 
   const filePath =
-    options.appendTsSuffixTo.length > 0 || options.appendTsxSuffixTo.length > 0
+    instance.loaderOptions.appendTsSuffixTo.length > 0 ||
+    instance.loaderOptions.appendTsxSuffixTo.length > 0
       ? appendSuffixesIfMatch(
           {
-            '.ts': options.appendTsSuffixTo,
-            '.tsx': options.appendTsxSuffixTo
+            '.ts': instance.loaderOptions.appendTsSuffixTo,
+            '.tsx': instance.loaderOptions.appendTsxSuffixTo
           },
           rawFilePath
         )
       : rawFilePath;
 
-  const fileVersion = updateFileInCache(options, filePath, contents, instance);
+  const fileVersion = updateFileInCache(
+    instance.loaderOptions,
+    filePath,
+    contents,
+    instance
+  );
   const referencedProject = getAndCacheProjectReference(filePath, instance);
   if (referencedProject !== undefined) {
     const [relativeProjectConfigPath, relativeFilePath] = [
@@ -133,13 +137,12 @@ function successLoader(
       filePath,
       contents,
       loaderContext,
-      options,
       fileVersion,
       callback,
       instance
     );
   } else {
-    const { outputText, sourceMapText } = options.transpileOnly
+    const { outputText, sourceMapText } = instance.loaderOptions.transpileOnly
       ? getTranspilationEmit(filePath, contents, instance, loaderContext)
       : getEmit(rawFilePath, filePath, instance, loaderContext);
 
@@ -149,7 +152,6 @@ function successLoader(
       filePath,
       contents,
       loaderContext,
-      options,
       fileVersion,
       callback,
       instance
@@ -163,23 +165,29 @@ function makeSourceMapAndFinish(
   filePath: string,
   contents: string,
   loaderContext: webpack.loader.LoaderContext,
-  options: LoaderOptions,
   fileVersion: number,
   callback: webpack.loader.loaderCallback,
   instance: TSInstance
 ) {
   if (outputText === null || outputText === undefined) {
+    setModuleMeta(loaderContext, instance, fileVersion);
     const additionalGuidance = isReferencedFile(instance, filePath)
       ? ' The most common cause for this is having errors when building referenced projects.'
-      : !options.allowTsInNodeModules && filePath.indexOf('node_modules') !== -1
+      : !instance.loaderOptions.allowTsInNodeModules &&
+        filePath.indexOf('node_modules') !== -1
       ? ' By default, ts-loader will not compile .ts files in node_modules.\n' +
         'You should not need to recompile .ts files there, but if you really want to, use the allowTsInNodeModules option.\n' +
         'See: https://github.com/Microsoft/TypeScript/issues/12358'
       : '';
 
-    throw new Error(
-      `TypeScript emitted no output for ${filePath}.${additionalGuidance}`
+    callback(
+      new Error(
+        `TypeScript emitted no output for ${filePath}.${additionalGuidance}`
+      ),
+      outputText,
+      undefined
     );
+    return;
   }
 
   const { sourceMap, output } = makeSourceMap(
@@ -190,15 +198,25 @@ function makeSourceMapAndFinish(
     loaderContext
   );
 
+  setModuleMeta(loaderContext, instance, fileVersion);
+  callback(null, output, sourceMap);
+}
+
+function setModuleMeta(
+  loaderContext: webpack.loader.LoaderContext,
+  instance: TSInstance,
+  fileVersion: number
+) {
   // _module.meta is not available inside happypack
-  if (!options.happyPackMode && loaderContext._module.buildMeta !== undefined) {
+  if (
+    !instance.loaderOptions.happyPackMode &&
+    loaderContext._module.buildMeta !== undefined
+  ) {
     // Make sure webpack is aware that even though the emitted JavaScript may be the same as
     // a previously cached version the TypeScript may be different and therefore should be
     // treated as new
     loaderContext._module.buildMeta.tsLoaderFileVersion = fileVersion;
   }
-
-  callback(null, output, sourceMap);
 }
 
 /**
@@ -395,14 +413,15 @@ function updateFileInCache(
     // it is allowed by the options.
     (options.allowTsInNodeModules || filePath.indexOf('node_modules') === -1)
   ) {
-    instance.version!++;
+    instance.version++;
     instance.rootFileNames.add(filePath);
   }
 
   if (file.text !== contents) {
     file.version++;
     file.text = contents;
-    instance.version!++;
+    file.modifiedTime = new Date();
+    instance.version++;
     if (
       (instance.watchHost !== undefined ||
         instance.solutionBuilderHost !== undefined) &&
@@ -447,73 +466,70 @@ function getEmit(
   instance: TSInstance,
   loaderContext: webpack.loader.LoaderContext
 ) {
-  const outputFiles = getEmitOutput(
-    instance,
-    filePath,
-    /*skipActualOutputReadOfReferencedFile*/ false
-  );
-
-  if (!isReferencedFile(instance, filePath)) {
-    loaderContext.clearDependencies();
-    loaderContext.addDependency(rawFilePath);
+  const outputFiles = getEmitOutput(instance, filePath);
+  loaderContext.clearDependencies();
+  loaderContext.addDependency(rawFilePath);
 
-    const allDefinitionFiles = [...instance.files.keys()].filter(
-      defFilePath =>
-        defFilePath.match(constants.dtsDtsxOrDtsDtsxMapRegex) &&
-        // Remove the project reference d.ts as we are adding dependency for .ts later
-        // This removed extra build pass (resulting in new stats object in initial build)
-        (!instance.solutionBuilderHost ||
-          !getInputFileNameFromOutput(instance, defFilePath))
-    );
+  const allDefinitionFiles = isReferencedFile(instance, filePath)
+    ? []
+    : [...instance.files.keys()].filter(
+        defFilePath =>
+          defFilePath.match(constants.dtsDtsxOrDtsDtsxMapRegex) &&
+          // Remove the project reference d.ts as we are adding dependency for .ts later
+          // This removed extra build pass (resulting in new stats object in initial build)
+          (!instance.solutionBuilderHost ||
+            instance.solutionBuilderHost.getOutputFileFromReferencedProject(
+              defFilePath
+            ) !== undefined)
+      );
 
-    // Make this file dependent on *all* definition files in the program
-    const addDependency = loaderContext.addDependency.bind(loaderContext);
-    allDefinitionFiles.forEach(addDependency);
-
-    // Additionally make this file dependent on all imported files
-    const fileDependencies = instance.dependencyGraph[filePath];
-    const additionalDependencies =
-      fileDependencies === undefined
-        ? []
-        : fileDependencies.map(({ resolvedFileName, originalFileName }) => {
-            const projectReference = getAndCacheProjectReference(
+  // Make this file dependent on *all* definition files in the program
+  const addDependency = loaderContext.addDependency.bind(loaderContext);
+  allDefinitionFiles.forEach(addDependency);
+
+  // Additionally make this file dependent on all imported files
+  const fileDependencies = instance.dependencyGraph[filePath];
+  const additionalDependencies =
+    fileDependencies === undefined
+      ? []
+      : fileDependencies.map(({ resolvedFileName, originalFileName }) => {
+          const projectReference = getAndCacheProjectReference(
+            resolvedFileName,
+            instance
+          );
+          // In the case of dependencies that are part of a project reference,
+          // the real dependency that webpack should watch is the JS output file.
+          if (projectReference !== undefined) {
+            return getAndCacheOutputJSFileName(
               resolvedFileName,
+              projectReference,
               instance
             );
-            // In the case of dependencies that are part of a project reference,
-            // the real dependency that webpack should watch is the JS output file.
-            if (projectReference !== undefined) {
-              return getAndCacheOutputJSFileName(
-                resolvedFileName,
-                projectReference,
-                instance
-              );
-            }
-            return (
-              getInputFileNameFromOutput(
-                instance,
-                path.resolve(resolvedFileName)
-              ) || originalFileName
-            );
-          });
-
-    if (additionalDependencies.length > 0) {
-      additionalDependencies.forEach(addDependency);
-    }
-
-    loaderContext._module.buildMeta.tsLoaderDefinitionFileVersions = allDefinitionFiles
-      .concat(additionalDependencies)
-      .map(
-        defFilePath =>
-          defFilePath +
-          '@' +
-          (
-            instance.files.get(defFilePath) ||
-            instance.otherFiles.get(defFilePath) || { version: '?' }
-          ).version
-      );
+          }
+          return (
+            getInputFileNameFromOutput(
+              instance,
+              path.resolve(resolvedFileName)
+            ) || originalFileName
+          );
+        });
+
+  if (additionalDependencies.length > 0) {
+    additionalDependencies.forEach(addDependency);
   }
 
+  loaderContext._module.buildMeta.tsLoaderDefinitionFileVersions = allDefinitionFiles
+    .concat(additionalDependencies)
+    .map(
+      defFilePath =>
+        defFilePath +
+        '@' +
+        (
+          instance.files.get(defFilePath) ||
+          instance.otherFiles.get(defFilePath) || { version: '?' }
+        ).version
+    );
+
   const outputFile = outputFiles
     .filter(file => file.name.match(constants.jsJsx))
     .pop();
diff --git a/src/instances.ts b/src/instances.ts
index 2e3ae9dbe..794ee37d3 100644
--- a/src/instances.ts
+++ b/src/instances.ts
@@ -48,7 +48,9 @@ export function getTypeScriptInstance(
 ): { instance?: TSInstance; error?: WebpackError } {
   if (instances.hasOwnProperty(loaderOptions.instance)) {
     const instance = instances[loaderOptions.instance];
-    ensureProgram(instance);
+    if (!instance.initialSetupPending) {
+      ensureProgram(instance);
+    }
     return { instance: instances[loaderOptions.instance] };
   }
 
@@ -148,39 +150,6 @@ function successfulTypeScriptInstance(
           )
       : (filePath: string) => filePath;
 
-  // same strategy as https://github.com/s-panferov/awesome-typescript-loader/pull/531/files
-  let { getCustomTransformers: customerTransformers } = loaderOptions;
-  let getCustomTransformers = Function.prototype;
-
-  if (typeof customerTransformers === 'function') {
-    getCustomTransformers = customerTransformers;
-  } else if (typeof customerTransformers === 'string') {
-    try {
-      customerTransformers = require(customerTransformers);
-    } catch (err) {
-      throw new Error(
-        `Failed to load customTransformers from "${
-          loaderOptions.getCustomTransformers
-        }": ${err.message}`
-      );
-    }
-
-    if (typeof customerTransformers !== 'function') {
-      throw new Error(
-        `Custom transformers in "${
-          loaderOptions.getCustomTransformers
-        }" should export a function, got ${typeof getCustomTransformers}`
-      );
-    }
-    getCustomTransformers = customerTransformers;
-  }
-
-  // if allowJs is set then we should accept js(x) files
-  const scriptRegex =
-    configParseResult.options.allowJs === true
-      ? /\.tsx?$|\.jsx?$/i
-      : /\.tsx?$/i;
-
   if (loaderOptions.transpileOnly) {
     // quick return for transpiling
     // we do need to check for any issues with TS options though
@@ -192,47 +161,18 @@ function successfulTypeScriptInstance(
       rootFileNames,
       files,
       otherFiles,
+      version: 0,
       program: undefined, // temporary, to be set later
       dependencyGraph: {},
       reverseDependencyGraph: {},
       transformers: {} as typescript.CustomTransformers, // this is only set temporarily, custom transformers are created further down
-      colors
+      colors,
+      initialSetupPending: true,
+      configFilePath,
+      configParseResult,
+      log
     });
 
-    tryAndBuildSolutionReferences(
-      transpileInstance,
-      loader,
-      log,
-      scriptRegex,
-      configFilePath
-    );
-    const program = (transpileInstance.program =
-      configParseResult.projectReferences !== undefined
-        ? compiler!.createProgram({
-            rootNames: configParseResult.fileNames,
-            options: configParseResult.options,
-            projectReferences: configParseResult.projectReferences
-          })
-        : compiler!.createProgram([], compilerOptions));
-
-    // happypack does not have _module.errors - see https://github.com/TypeStrong/ts-loader/issues/336
-    if (!loaderOptions.happyPackMode) {
-      const solutionErrors: WebpackError[] = getSolutionErrors(
-        transpileInstance,
-        loader.context
-      );
-      const diagnostics = program.getOptionsDiagnostics();
-      const errors = formatErrors(
-        diagnostics,
-        loaderOptions,
-        colors,
-        compiler!,
-        { file: configFilePath || 'tsconfig.json' },
-        loader.context
-      );
-      loader._module.errors.push(...solutionErrors, ...errors);
-    }
-    transpileInstance.transformers = getCustomTransformers(program);
     return { instance: transpileInstance };
   }
 
@@ -276,88 +216,166 @@ function successfulTypeScriptInstance(
     transformers: {} as typescript.CustomTransformers, // this is only set temporarily, custom transformers are created further down
     dependencyGraph: {},
     reverseDependencyGraph: {},
-    colors
+    colors,
+    initialSetupPending: true,
+    configFilePath,
+    configParseResult,
+    log
   });
 
-  if (!loader._compiler.hooks) {
-    throw new Error(
-      "You may be using an old version of webpack; please check you're using at least version 4"
-    );
+  return { instance };
+}
+
+export function initializeInstance(
+  loader: webpack.loader.LoaderContext,
+  instance: TSInstance
+) {
+  if (!instance.initialSetupPending) {
+    return;
   }
 
-  tryAndBuildSolutionReferences(
-    instance,
-    loader,
-    log,
-    scriptRegex,
-    configFilePath
-  );
+  instance.initialSetupPending = false;
 
-  if (loaderOptions.experimentalWatchApi && compiler.createWatchProgram) {
-    log.logInfo('Using watch api');
+  // same strategy as https://github.com/s-panferov/awesome-typescript-loader/pull/531/files
+  let { getCustomTransformers: customerTransformers } = instance.loaderOptions;
+  let getCustomTransformers = Function.prototype;
 
-    // If there is api available for watch, use it instead of language service
-    instance.watchHost = makeWatchHost(
-      scriptRegex,
-      log,
-      loader,
-      instance,
-      configParseResult.projectReferences
-    );
-    instance.watchOfFilesAndCompilerOptions = compiler.createWatchProgram(
-      instance.watchHost
-    );
-    instance.builderProgram = instance.watchOfFilesAndCompilerOptions.getProgram();
-    instance.program = instance.builderProgram.getProgram();
+  if (typeof customerTransformers === 'function') {
+    getCustomTransformers = customerTransformers;
+  } else if (typeof customerTransformers === 'string') {
+    try {
+      customerTransformers = require(customerTransformers);
+    } catch (err) {
+      throw new Error(
+        `Failed to load customTransformers from "${
+          instance.loaderOptions.getCustomTransformers
+        }": ${err.message}`
+      );
+    }
 
-    instance.transformers = getCustomTransformers(instance.program);
+    if (typeof customerTransformers !== 'function') {
+      throw new Error(
+        `Custom transformers in "${
+          instance.loaderOptions.getCustomTransformers
+        }" should export a function, got ${typeof getCustomTransformers}`
+      );
+    }
+    getCustomTransformers = customerTransformers;
+  }
+
+  if (instance.loaderOptions.transpileOnly) {
+    const program = (instance.program =
+      instance.configParseResult.projectReferences !== undefined
+        ? instance.compiler.createProgram({
+            rootNames: instance.configParseResult.fileNames,
+            options: instance.configParseResult.options,
+            projectReferences: instance.configParseResult.projectReferences
+          })
+        : instance.compiler.createProgram([], instance.compilerOptions));
+
+    // happypack does not have _module.errors - see https://github.com/TypeStrong/ts-loader/issues/336
+    if (!instance.loaderOptions.happyPackMode) {
+      const solutionErrors: WebpackError[] = getSolutionErrors(
+        instance,
+        loader.context
+      );
+      const diagnostics = program.getOptionsDiagnostics();
+      const errors = formatErrors(
+        diagnostics,
+        instance.loaderOptions,
+        instance.colors,
+        instance.compiler,
+        { file: instance.configFilePath || 'tsconfig.json' },
+        loader.context
+      );
+      loader._module.errors.push(...solutionErrors, ...errors);
+    }
+    instance.transformers = getCustomTransformers(program);
   } else {
-    const servicesHost = makeServicesHost(
-      scriptRegex,
-      log,
-      loader,
-      instance,
-      loaderOptions.experimentalFileCaching,
-      configParseResult.projectReferences
-    );
+    if (!loader._compiler.hooks) {
+      throw new Error(
+        "You may be using an old version of webpack; please check you're using at least version 4"
+      );
+    }
 
-    instance.languageService = compiler.createLanguageService(
-      servicesHost.servicesHost,
-      compiler.createDocumentRegistry()
-    );
+    if (
+      instance.loaderOptions.experimentalWatchApi &&
+      instance.compiler.createWatchProgram
+    ) {
+      instance.log.logInfo('Using watch api');
 
-    if (servicesHost.clearCache !== null) {
-      loader._compiler.hooks.watchRun.tap('ts-loader', servicesHost.clearCache);
+      // If there is api available for watch, use it instead of language service
+      instance.watchHost = makeWatchHost(
+        getScriptRegexp(instance),
+        instance.log,
+        loader,
+        instance,
+        instance.configParseResult.projectReferences
+      );
+      instance.watchOfFilesAndCompilerOptions = instance.compiler.createWatchProgram(
+        instance.watchHost
+      );
+      instance.builderProgram = instance.watchOfFilesAndCompilerOptions.getProgram();
+      instance.program = instance.builderProgram.getProgram();
+
+      instance.transformers = getCustomTransformers(instance.program);
+    } else {
+      instance.servicesHost = makeServicesHost(
+        getScriptRegexp(instance),
+        instance.log,
+        loader,
+        instance,
+        instance.loaderOptions.experimentalFileCaching,
+        instance.configParseResult.projectReferences
+      );
+
+      instance.languageService = instance.compiler.createLanguageService(
+        instance.servicesHost.servicesHost,
+        instance.compiler.createDocumentRegistry()
+      );
+
+      if (instance.servicesHost.clearCache !== null) {
+        loader._compiler.hooks.watchRun.tap(
+          'ts-loader',
+          instance.servicesHost.clearCache
+        );
+      }
+
+      instance.transformers = getCustomTransformers(
+        instance.languageService!.getProgram()
+      );
     }
 
-    instance.transformers = getCustomTransformers(
-      instance.languageService!.getProgram()
+    loader._compiler.hooks.afterCompile.tapAsync(
+      'ts-loader',
+      makeAfterCompile(instance, instance.configFilePath)
+    );
+    loader._compiler.hooks.watchRun.tapAsync(
+      'ts-loader',
+      makeWatchRun(instance)
     );
   }
+}
 
-  loader._compiler.hooks.afterCompile.tapAsync(
-    'ts-loader',
-    makeAfterCompile(instance, configFilePath)
-  );
-  loader._compiler.hooks.watchRun.tapAsync('ts-loader', makeWatchRun(instance));
-
-  return { instance };
+function getScriptRegexp(instance: TSInstance) {
+  // if allowJs is set then we should accept js(x) files
+  return instance.configParseResult.options.allowJs === true
+    ? /\.tsx?$|\.jsx?$/i
+    : /\.tsx?$/i;
 }
 
-function tryAndBuildSolutionReferences(
+export function buildSolutionReferences(
   instance: TSInstance,
   loader: webpack.loader.LoaderContext,
-  log: logger.Logger,
-  scriptRegex: RegExp,
-  configFilePath: string | undefined
+  log: logger.Logger
 ) {
-  if (
-    configFilePath &&
-    supportsSolutionBuild(instance.loaderOptions, instance.compiler)
-  ) {
+  if (!supportsSolutionBuild(instance)) {
+    return;
+  }
+  if (!instance.solutionBuilderHost) {
     // Use solution builder
     log.logInfo('Using SolutionBuilder api');
-    instance.configFilePath = configFilePath;
+    const scriptRegex = getScriptRegexp(instance);
     instance.solutionBuilderHost = makeSolutionBuilderHost(
       scriptRegex,
       log,
@@ -366,20 +384,11 @@ function tryAndBuildSolutionReferences(
     );
     instance.solutionBuilder = instance.compiler.createSolutionBuilderWithWatch(
       instance.solutionBuilderHost,
-      [configFilePath],
+      [instance.configFilePath!],
       { verbose: true }
     );
-    instance.solutionBuilder.buildReferences(instance.configFilePath);
-    for (const [fileName] of instance.solutionBuilderHost.watchedFiles) {
-      instance.otherFiles.set(path.resolve(fileName), {
-        version: 0,
-        text: instance.solutionBuilderHost.readFile(fileName)
-      });
-      if (instance.loaderOptions.transpileOnly) {
-        loader.addDependency(fileName);
-      }
-    }
   }
+  instance.solutionBuilder!.buildReferences(instance.configFilePath!);
 }
 
 export function forEachResolvedProjectReference<T>(
@@ -493,7 +502,7 @@ function getOutputJSFileName(
     : undefined;
 }
 
-function getOutputFileNames(
+export function getOutputFileNames(
   instance: TSInstance,
   configFile: typescript.ParsedCommandLine,
   inputFileName: string
@@ -539,49 +548,6 @@ function getOutputFileNames(
   return outputs;
 }
 
-function getOutputFilesFromReference(
-  program: typescript.Program,
-  instance: TSInstance,
-  filePath: string,
-  skipActualOutputRead: boolean
-): typescript.OutputFile[] | undefined {
-  // May be api to get file
-  return forEachResolvedProjectReference(
-    program.getResolvedProjectReferences(),
-    ({ commandLine }) => {
-      const { options, fileNames } = commandLine;
-      if (
-        !options.outFile &&
-        !options.out &&
-        fileNames.some(file => path.normalize(file) === filePath)
-      ) {
-        const outputFiles: typescript.OutputFile[] = [];
-        if (!skipActualOutputRead) {
-          getOutputFileNames(
-            instance,
-            commandLine,
-            (instance.compiler as any).resolvePath(filePath)
-          ).forEach(name => {
-            const output = instance.solutionBuilderHost!.outputFiles.get(
-              path.resolve(name)
-            );
-            if (output) {
-              outputFiles.push(output);
-            } else {
-              const text = instance.compiler.sys.readFile(name);
-              if (text) {
-                outputFiles.push({ name, text, writeByteOrderMark: false });
-              }
-            }
-          });
-        }
-        return outputFiles;
-      }
-      return undefined;
-    }
-  );
-}
-
 export function getInputFileNameFromOutput(
   instance: TSInstance,
   filePath: string
@@ -589,6 +555,9 @@ export function getInputFileNameFromOutput(
   if (filePath.match(tsTsxRegex) && !fileExtensionIs(filePath, '.d.ts')) {
     return undefined;
   }
+  if (instance.solutionBuilderHost) {
+    return instance.solutionBuilderHost.getInputFileNameFromOutput(filePath);
+  }
   const program = ensureProgram(instance);
   return (
     program &&
@@ -671,11 +640,7 @@ export function getEmitFromWatchHost(instance: TSInstance, filePath?: string) {
   return undefined;
 }
 
-export function getEmitOutput(
-  instance: TSInstance,
-  filePath: string,
-  skipActualOutputReadOfReferencedFile: boolean
-) {
+export function getEmitOutput(instance: TSInstance, filePath: string) {
   if (fileExtensionIs(filePath, instance.compiler.Extension.Dts)) {
     return [];
   }
@@ -683,15 +648,9 @@ export function getEmitOutput(
   if (program !== undefined) {
     const sourceFile = program.getSourceFile(filePath);
     if (isReferencedFile(instance, filePath)) {
-      const builtReferences = getOutputFilesFromReference(
-        program,
-        instance,
-        filePath,
-        skipActualOutputReadOfReferencedFile
+      return instance.solutionBuilderHost!.getOutputFilesFromReferencedProjectInput(
+        filePath
       );
-      if (builtReferences) {
-        return builtReferences;
-      }
     }
     const outputFiles: typescript.OutputFile[] = [];
     const writeFile = (
diff --git a/src/interfaces.ts b/src/interfaces.ts
index 0760c471a..31be0111f 100644
--- a/src/interfaces.ts
+++ b/src/interfaces.ts
@@ -2,6 +2,7 @@ export { ModuleResolutionHost, FormatDiagnosticsHost } from 'typescript';
 import * as typescript from 'typescript';
 
 import { Chalk } from 'chalk';
+import * as logger from './logger';
 
 export interface ErrorInfo {
   code: number;
@@ -37,6 +38,13 @@ export type ResolveSync = (
   moduleName: string
 ) => string;
 
+export type Action = () => void;
+
+export interface ServiceHostWhichMayBeCacheable {
+  servicesHost: typescript.LanguageServiceHost;
+  clearCache: Action | null;
+}
+
 export interface WatchHost
   extends typescript.WatchCompilerHostOfFilesAndCompilerOptions<
     typescript.EmitAndSemanticDiagnosticsBuilderProgram
@@ -64,19 +72,9 @@ export interface WatchFactory {
   ): void;
   invokeDirectoryWatcher(directory: string, fileAddedOrRemoved: string): void;
   /** Used to watch changes in source files, missing files needed to update the program or config file */
-  watchFile(
-    path: string,
-    callback: typescript.FileWatcherCallback,
-    pollingInterval?: number,
-    options?: typescript.CompilerOptions
-  ): typescript.FileWatcher;
+  watchFile: typescript.WatchHost['watchFile'];
   /** Used to watch resolved module's failed lookup locations, config file specs, type roots where auto type reference directives are added */
-  watchDirectory(
-    path: string,
-    callback: typescript.DirectoryWatcherCallback,
-    recursive?: boolean,
-    options?: typescript.CompilerOptions
-  ): typescript.FileWatcher;
+  watchDirectory: typescript.WatchHost['watchDirectory'];
 }
 
 export interface SolutionDiagnostics {
@@ -91,8 +89,20 @@ export interface SolutionBuilderWithWatchHost
     >,
     WatchFactory {
   diagnostics: SolutionDiagnostics;
-  outputFiles: Map<string, typescript.OutputFile>;
-  tsbuildinfos: typescript.OutputFile[];
+  outputFiles: Map<string, OutputFile>;
+  tsbuildinfos: Map<string, OutputFile>;
+  outputAffectingInstanceVersion: Map<string, true>;
+  getOutputFileFromReferencedProject(
+    outputFileName: string
+  ): OutputFile | false | undefined;
+  getInputFileNameFromOutput(outputFileName: string): string | undefined;
+  getOutputFilesFromReferencedProjectInput(inputFileName: string): OutputFile[];
+}
+
+export interface OutputFile extends typescript.OutputFile {
+  time: Date;
+  version: number;
+  isNew: boolean;
 }
 
 export interface TSInstance {
@@ -116,8 +126,9 @@ export interface TSInstance {
    * warnings about source maps during a single compilation.
    */
   projectsMissingSourceMaps?: Set<string>;
+  servicesHost?: ServiceHostWhichMayBeCacheable;
   languageService?: typescript.LanguageService | null;
-  version?: number;
+  version: number;
   dependencyGraph: DependencyGraph;
   reverseDependencyGraph: ReverseDependencyGraph;
   filesWithErrors?: TSFiles;
@@ -138,7 +149,15 @@ export interface TSInstance {
   solutionBuilder?: typescript.SolutionBuilder<
     typescript.EmitAndSemanticDiagnosticsBuilderProgram
   >;
-  configFilePath?: string;
+  configFilePath: string | undefined;
+
+  initialSetupPending: boolean;
+  configParseResult: {
+    options: typescript.CompilerOptions;
+    fileNames: string[];
+    projectReferences?: ReadonlyArray<typescript.ProjectReference>;
+  };
+  log: logger.Logger;
 }
 
 export interface LoaderOptionsCache {
@@ -220,6 +239,7 @@ export interface LoaderOptions {
 export interface TSFile {
   text?: string;
   version: number;
+  modifiedTime?: Date;
   projectReference?: {
     /**
      * Undefined here means we’ve already checked and confirmed there is no
diff --git a/src/servicesHost.ts b/src/servicesHost.ts
index 6be1f18a2..de245e7e6 100644
--- a/src/servicesHost.ts
+++ b/src/servicesHost.ts
@@ -4,13 +4,17 @@ import * as webpack from 'webpack';
 
 import { getParsedCommandLine } from './config';
 import * as constants from './constants';
+import { getOutputFileNames } from './instances';
 import {
+  Action,
   CustomResolveModuleName,
   CustomResolveTypeReferenceDirective,
   FormatDiagnosticsHost,
   ModuleResolutionHost,
+  OutputFile,
   ResolvedModule,
   ResolveSync,
+  ServiceHostWhichMayBeCacheable,
   SolutionBuilderWithWatchHost,
   SolutionDiagnostics,
   TSFile,
@@ -24,11 +28,23 @@ import * as logger from './logger';
 import { makeResolver } from './resolver';
 import { formatErrors, readFile, unorderedRemoveItem } from './utils';
 
-export type Action = () => void;
-
-export interface ServiceHostWhichMayBeCacheable {
-  servicesHost: typescript.LanguageServiceHost;
-  clearCache: Action | null;
+function readFileWithInstance(
+  instance: TSInstance,
+  filePath: string,
+  encoding?: string | undefined
+): string | undefined {
+  if (instance.solutionBuilderHost) {
+    const outputFile = instance.solutionBuilderHost.getOutputFileFromReferencedProject(
+      filePath
+    );
+    if (outputFile !== undefined) {
+      return outputFile ? outputFile.text : undefined;
+    }
+  }
+  return (
+    instance.compiler.sys.readFile(filePath, encoding) ||
+    readFile(filePath, encoding)
+  );
 }
 
 /**
@@ -66,12 +82,22 @@ export function makeServicesHost(
   const readFileWithFallback = (
     filePath: string,
     encoding?: string | undefined
-  ): string | undefined =>
-    compiler.sys.readFile(filePath, encoding) || readFile(filePath, encoding);
+  ): string | undefined => readFileWithInstance(instance, filePath, encoding);
 
-  const fileExists = (filePathToCheck: string) =>
-    compiler.sys.fileExists(filePathToCheck) ||
-    readFile(filePathToCheck) !== undefined;
+  const fileExists = (filePathToCheck: string) => {
+    if (instance.solutionBuilderHost) {
+      const outputFile = instance.solutionBuilderHost.getOutputFileFromReferencedProject(
+        filePathToCheck
+      );
+      if (outputFile !== undefined) {
+        return !!outputFile;
+      }
+    }
+    return (
+      compiler.sys.fileExists(filePathToCheck) ||
+      readFile(filePathToCheck) !== undefined
+    );
+  };
 
   let clearCache: Action | null = null;
   let moduleResolutionHost: ModuleResolutionHost = {
@@ -115,7 +141,21 @@ export function makeServicesHost(
     getScriptVersion: (fileName: string) => {
       fileName = path.normalize(fileName);
       const file = files.get(fileName);
-      return file === undefined ? '' : file.version.toString();
+      if (file) {
+        return file.version.toString();
+      }
+      const outputFile =
+        instance.solutionBuilderHost &&
+        instance.solutionBuilderHost.getOutputFileFromReferencedProject(
+          fileName
+        );
+      if (outputFile !== undefined) {
+        instance.solutionBuilderHost!.outputAffectingInstanceVersion.set(
+          path.resolve(fileName),
+          true
+        );
+      }
+      return outputFile ? outputFile.version.toString() : '';
     },
 
     getScriptSnapshot: (fileName: string) => {
@@ -125,6 +165,21 @@ export function makeServicesHost(
       let file = files.get(fileName);
 
       if (file === undefined) {
+        if (instance.solutionBuilderHost) {
+          const outputFile = instance.solutionBuilderHost.getOutputFileFromReferencedProject(
+            fileName
+          );
+          if (outputFile !== undefined) {
+            instance.solutionBuilderHost!.outputAffectingInstanceVersion.set(
+              path.resolve(fileName),
+              true
+            );
+            return outputFile
+              ? compiler.ScriptSnapshot.fromString(outputFile.text)
+              : undefined;
+          }
+        }
+
         const text = readFile(fileName);
         if (text === undefined) {
           return undefined;
@@ -385,7 +440,8 @@ export function updateFileWithText(
     if (newText !== file.text) {
       file.text = newText;
       file.version++;
-      instance.version!++;
+      file.modifiedTime = new Date();
+      instance.version++;
       if (!instance.modifiedFiles) {
         instance.modifiedFiles = new Map<string, TSFile>();
       }
@@ -441,8 +497,7 @@ export function makeWatchHost(
   const readFileWithFallback = (
     filePath: string,
     encoding?: string | undefined
-  ): string | undefined =>
-    compiler.sys.readFile(filePath, encoding) || readFile(filePath, encoding);
+  ): string | undefined => readFileWithInstance(instance, filePath, encoding);
 
   const moduleResolutionHost: ModuleResolutionHost = {
     fileExists,
@@ -575,6 +630,16 @@ export function makeWatchHost(
   }
 }
 
+function normalizeSlashes(file: string): string {
+  return file.replace(/\\/g, '/');
+}
+
+interface ConfigFileInfo {
+  config: typescript.ParsedCommandLine | undefined;
+  outputFileNames?: Map<string, string[]>;
+  tsbuildInfoFile?: string;
+}
+
 /**
  * Create the TypeScript Watch host
  */
@@ -647,8 +712,11 @@ export function makeSolutionBuilderHost(
         compiler.sys.newLine
       )}${newLine + newLine}`
     );
-  const tsbuildinfos = [] as typescript.OutputFile[];
-  const outputFiles = new Map<string, typescript.OutputFile>();
+  const tsbuildinfos = new Map<string, OutputFile>();
+  const outputFiles = new Map<string, OutputFile>();
+  const outputAffectingInstanceVersion = new Map<string, true>();
+
+  const configFileInfo = new Map<string, ConfigFileInfo>();
   const solutionBuilderHost: SolutionBuilderWithWatchHost = {
     ...compiler.createSolutionBuilderWithWatchHost(
       compiler.sys,
@@ -661,31 +729,117 @@ export function makeSolutionBuilderHost(
     ...createWatchFactory(beforeWatchCallbacks),
     // Overrides
     getCurrentDirectory,
+    // behave as if there is no tsbuild info on disk since we want to generate all outputs in memory and only use those
+    readFile: (fileName, encoding) => {
+      const outputFile = getOutputFileFromReferencedProject(fileName);
+      return outputFile !== undefined
+        ? outputFile
+          ? outputFile.text
+          : undefined
+        : readInputFile(fileName, encoding).text;
+    },
     writeFile: (name, text, writeByteOrderMark) => {
-      compiler.sys.writeFile(name, text, writeByteOrderMark);
       updateFileWithText(instance, name, () => text);
-      if (name.endsWith('.tsbuildinfo')) {
-        tsbuildinfos.push({
-          name,
-          text,
-          writeByteOrderMark: !!writeByteOrderMark
-        });
+      const map = name.endsWith('.tsbuildinfo') ? tsbuildinfos : outputFiles;
+      const resolvedFileName = path.resolve(name);
+      const existing = map.get(resolvedFileName);
+      map.set(resolvedFileName, {
+        name,
+        text,
+        writeByteOrderMark: !!writeByteOrderMark,
+        time: new Date(),
+        isNew: true,
+        version: existing
+          ? existing.text !== text
+            ? existing.version + 1
+            : existing.version
+          : 0
+      });
+      if (
+        outputAffectingInstanceVersion.has(resolvedFileName) &&
+        (!existing || existing.text !== text)
+      ) {
+        instance.version++;
+      }
+    },
+    getModifiedTime: fileName => {
+      const outputFile = getOutputFileFromReferencedProject(fileName);
+      if (outputFile !== undefined) {
+        return outputFile ? outputFile.time : undefined;
+      }
+      const existing =
+        instance.files.get(path.resolve(fileName)) ||
+        instance.otherFiles.get(path.resolve(fileName));
+      return existing
+        ? existing.modifiedTime
+        : compiler.sys.getModifiedTime!(fileName);
+    },
+    setModifiedTime: (fileName, time) => {
+      const outputFile = getOutputFileFromReferencedProject(fileName);
+      if (outputFile !== undefined) {
+        if (outputFile) {
+          outputFile.time = time;
+        }
       } else {
-        outputFiles.set(path.resolve(name), {
-          name,
-          text,
-          writeByteOrderMark: !!writeByteOrderMark
-        });
+        compiler.sys.setModifiedTime!(fileName, time);
+      }
+      const existing =
+        instance.files.get(path.resolve(fileName)) ||
+        instance.otherFiles.get(path.resolve(fileName));
+      if (existing) {
+        existing.modifiedTime = time;
+      }
+    },
+    fileExists: fileName => {
+      const outputFile = getOutputFileFromReferencedProject(fileName);
+      if (outputFile !== undefined) {
+        return true;
       }
+      if (isOutputFromReferencedProject(fileName)) {
+        return false;
+      }
+      const existing =
+        instance.files.get(path.resolve(fileName)) ||
+        instance.otherFiles.get(path.resolve(fileName));
+      return existing
+        ? existing.text !== undefined
+        : compiler.sys.fileExists(fileName);
+    },
+    directoryExists: directory => {
+      if (compiler.sys.directoryExists(directory)) {
+        return true;
+      }
+      const resolvedDirectory = normalizeSlashes(path.resolve(directory)) + '/';
+      for (const outputFile of outputFiles.keys()) {
+        if (normalizeSlashes(outputFile).startsWith(resolvedDirectory)) {
+          return true;
+        }
+      }
+      for (const tsbuildInfo of tsbuildinfos.keys()) {
+        if (normalizeSlashes(tsbuildInfo).startsWith(resolvedDirectory)) {
+          return true;
+        }
+      }
+      return false;
     },
     setTimeout: undefined,
     clearTimeout: undefined,
     outputFiles,
-    tsbuildinfos
+    tsbuildinfos,
+    outputAffectingInstanceVersion,
+    getOutputFileFromReferencedProject,
+    getInputFileNameFromOutput: fileName => {
+      const result = getInputFileNameFromOutput(fileName);
+      return typeof result === 'string' ? result : undefined;
+    },
+    getOutputFilesFromReferencedProjectInput
   };
   solutionBuilderHost.trace = logData => log.logInfo(logData);
-  solutionBuilderHost.getParsedCommandLine = file =>
-    getParsedCommandLine(compiler, instance.loaderOptions, file);
+  solutionBuilderHost.getParsedCommandLine = file => {
+    const config = getParsedCommandLine(compiler, instance.loaderOptions, file);
+    configFileInfo.set(path.resolve(file), { config });
+    return config;
+  };
 
   // make a (sync) resolver that follows webpack's rules
   const resolveSync = makeResolver(loader._compiler.options);
@@ -712,6 +866,115 @@ export function makeSolutionBuilderHost(
     diagnostics.perFile.clear();
     diagnostics.transpileErrors.length = 0;
   }
+
+  function findOutputFile(fileName: string) {
+    const resolvedFileName = path.resolve(fileName);
+    return fileName.endsWith('.tsbuildinfo')
+      ? tsbuildinfos.get(resolvedFileName)
+      : outputFiles.get(resolvedFileName);
+  }
+
+  function getInputFileNameFromOutput(
+    outputFileName: string
+  ): string | true | undefined {
+    const resolvedFileName = path.resolve(outputFileName);
+    for (const [configFile, configInfo] of configFileInfo.entries()) {
+      ensureInputOutputInfo(configFile, configInfo);
+      if (configInfo.outputFileNames) {
+        for (const [
+          inputFileName,
+          outputFilesOfInput
+        ] of configInfo.outputFileNames.entries()) {
+          if (outputFilesOfInput.indexOf(resolvedFileName) !== -1) {
+            return inputFileName;
+          }
+        }
+      }
+      if (
+        configInfo.tsbuildInfoFile &&
+        path.resolve(configInfo.tsbuildInfoFile) === resolvedFileName
+      ) {
+        return true;
+      }
+    }
+    return undefined;
+  }
+
+  function isOutputFromReferencedProject(fileName: string) {
+    return !!getInputFileNameFromOutput(fileName);
+  }
+
+  function ensureInputOutputInfo(
+    configFile: string,
+    configInfo: ConfigFileInfo
+  ) {
+    if (
+      configInfo.outputFileNames ||
+      !configInfo.config ||
+      path.resolve(configFile) === path.resolve(instance.configFilePath!)
+    ) {
+      return;
+    }
+    configInfo.outputFileNames = new Map();
+    configInfo.config.fileNames.forEach(inputFile =>
+      configInfo.outputFileNames!.set(
+        path.resolve(inputFile),
+        getOutputFileNames(instance, configInfo.config!, inputFile).map(
+          output => path.resolve(output)
+        )
+      )
+    );
+
+    configInfo.tsbuildInfoFile = instance.compiler
+      .getTsBuildInfoEmitOutputFilePath
+      ? instance.compiler.getTsBuildInfoEmitOutputFilePath(
+          configInfo.config.options
+        )
+      : // before api
+        (instance.compiler as any).getOutputPathForBuildInfo(
+          configInfo.config.options
+        );
+  }
+
+  function getOutputFileFromReferencedProject(
+    outputFileName: string
+  ): OutputFile | false | undefined {
+    return (
+      findOutputFile(outputFileName) ||
+      (isOutputFromReferencedProject(outputFileName) ? false : undefined)
+    );
+  }
+
+  function getOutputFilesFromReferencedProjectInput(inputFileName: string) {
+    const resolvedFileName = path.resolve(inputFileName);
+    for (const [configFile, configInfo] of configFileInfo.entries()) {
+      ensureInputOutputInfo(configFile, configInfo);
+      if (configInfo.outputFileNames) {
+        const result = configInfo.outputFileNames.get(resolvedFileName);
+        if (result) {
+          return result
+            .map(outputFile => outputFiles.get(outputFile)!)
+            .filter(output => !!output);
+        }
+      }
+    }
+    return [];
+  }
+
+  function readInputFile(inputFileName: string, encoding: string | undefined) {
+    const resolvedFileName = path.resolve(inputFileName);
+    const existing = instance.otherFiles.get(resolvedFileName);
+    if (existing) {
+      return existing;
+    }
+    const tsFile: TSFile = {
+      version: 1,
+      text: compiler.sys.readFile(inputFileName, encoding),
+      modifiedTime: compiler.sys.getModifiedTime!(inputFileName)
+    };
+    instance.otherFiles.set(resolvedFileName, tsFile);
+    return tsFile;
+  }
 }
 
 export function getSolutionErrors(instance: TSInstance, context: string) {
diff --git a/src/utils.ts b/src/utils.ts
index d64c119e8..46585ebe0 100644
--- a/src/utils.ts
+++ b/src/utils.ts
@@ -235,9 +235,6 @@ export function arrify<T>(val: T | T[]) {
 }
 
 export function ensureProgram(instance: TSInstance) {
-  if (instance.solutionBuilder) {
-    instance.solutionBuilder.buildReferences(instance.configFilePath!);
-  }
   if (instance && instance.watchHost) {
     if (instance.hasUnaccountedModifiedFiles) {
       if (instance.changedFilesList) {
@@ -358,11 +355,14 @@ export function validateSourceMapOncePerProject(
   }
 }
 
-export function supportsSolutionBuild(
-  loaderOptions: LoaderOptions,
-  compiler: typeof typescript
-) {
-  return !!loaderOptions.projectReferences && !!compiler.InvalidatedProjectKind;
+export function supportsSolutionBuild(instance: TSInstance) {
+  return (
+    !!instance.configFilePath &&
+    !!instance.loaderOptions.projectReferences &&
+    !!instance.compiler.InvalidatedProjectKind &&
+    !!instance.configParseResult.projectReferences &&
+    !!instance.configParseResult.projectReferences.length
+  );
 }
 
 /**
diff --git a/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference/expectedOutput-3.8/output.transpiled.txt b/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference/expectedOutput-3.8/output.transpiled.txt
index f00582869..c696028f0 100644
--- a/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference/expectedOutput-3.8/output.transpiled.txt
+++ b/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference/expectedOutput-3.8/output.transpiled.txt
@@ -1,12 +1,8 @@
     Asset      Size  Chunks             Chunk Names
 bundle.js  4.37 KiB    main  [emitted]  main
 Entrypoint main = bundle.js
-[./app.ts] 167 bytes {main} [built] [2 errors]
+[./app.ts] 167 bytes {main} [built] [1 error]
 [./lib/index.ts] 145 bytes {main} [built]
 
-ERROR in tsconfig.json
-[tsl] ERROR
-      TS6305: Output file '/.test/projectReferencesNotBuilt_SemanticErrorInReference/lib/index.d.ts' has not been built from source file '/.test/projectReferencesNotBuilt_SemanticErrorInReference/lib/index.ts'.
-
-ERROR in [tsl] ERROR in lib\index.ts(6,7)
+ERROR in [tsl] ERROR in lib\index.ts(6,7)
       TS2322: Type '10' is not assignable to type 'string'.
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference/expectedOutput-3.8/output.txt b/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference/expectedOutput-3.8/output.txt
index 2629a55d0..a167bb281 100644
--- a/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference/expectedOutput-3.8/output.txt
+++ b/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference/expectedOutput-3.8/output.txt
@@ -7,16 +7,12 @@ Entrypoint main = bundle.js
 ERROR in ./lib/index.ts
 Module build failed (from /index.js):
 Error: TypeScript emitted no output for lib\index.ts. The most common cause for this is having errors when building referenced projects.
-    at makeSourceMapAndFinish (dist\index.js:80:15)
-    at successLoader (dist\index.js:68:9)
-    at Object.loader (dist\index.js:22:12)
+    at makeSourceMapAndFinish (dist\index.js:106:18)
+    at successLoader (dist\index.js:92:9)
+    at Object.loader (dist\index.js:43:5)
  @ ./app.ts 3:12-28
 
-ERROR in tsconfig.json
-[tsl] ERROR
-      TS6305: Output file '/.test/projectReferencesNotBuilt_SemanticErrorInReference/lib/index.d.ts' has not been built from source file '/.test/projectReferencesNotBuilt_SemanticErrorInReference/lib/index.ts'.
-
 ERROR in lib\index.ts
 ./lib/index.ts
-[tsl] ERROR in lib\index.ts(6,7)
+[tsl] ERROR in lib\index.ts(6,7)
       TS2322: Type '10' is not assignable to type 'string'.
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference_WatchApi/expectedOutput-3.8/output.transpiled.txt b/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference_WatchApi/expectedOutput-3.8/output.transpiled.txt
index 1b2499099..c696028f0 100644
--- a/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference_WatchApi/expectedOutput-3.8/output.transpiled.txt
+++ b/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference_WatchApi/expectedOutput-3.8/output.transpiled.txt
@@ -1,12 +1,8 @@
     Asset      Size  Chunks             Chunk Names
 bundle.js  4.37 KiB    main  [emitted]  main
 Entrypoint main = bundle.js
-[./app.ts] 167 bytes {main} [built] [2 errors]
+[./app.ts] 167 bytes {main} [built] [1 error]
 [./lib/index.ts] 145 bytes {main} [built]
 
-ERROR in tsconfig.json
-[tsl] ERROR
-      TS6305: Output file '/.test/projectReferencesNotBuilt_SemanticErrorInReference_WatchApi/lib/index.d.ts' has not been built from source file '/.test/projectReferencesNotBuilt_SemanticErrorInReference_WatchApi/lib/index.ts'.
-
-ERROR in [tsl] ERROR in lib\index.ts(6,7)
+ERROR in [tsl] ERROR in lib\index.ts(6,7)
       TS2322: Type '10' is not assignable to type 'string'.
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference_WatchApi/expectedOutput-3.8/output.txt b/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference_WatchApi/expectedOutput-3.8/output.txt
index a9446a546..3fc6b9b77 100644
--- a/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference_WatchApi/expectedOutput-3.8/output.txt
+++ b/test/comparison-tests/projectReferencesNotBuilt_SemanticErrorInReference_WatchApi/expectedOutput-3.8/output.txt
@@ -7,16 +7,12 @@ Entrypoint main = bundle.js
 ERROR in ./lib/index.ts
 Module build failed (from /index.js):
 Error: TypeScript emitted no output for lib\index.ts. The most common cause for this is having errors when building referenced projects.
-    at makeSourceMapAndFinish (dist\index.js:80:15)
-    at successLoader (dist\index.js:68:9)
-    at Object.loader (dist\index.js:22:12)
+    at makeSourceMapAndFinish (dist\index.js:106:18)
+    at successLoader (dist\index.js:92:9)
+    at Object.loader (dist\index.js:43:5)
  @ ./app.ts 3:12-28
 
-ERROR in tsconfig.json
-[tsl] ERROR
-      TS6305: Output file '/.test/projectReferencesNotBuilt_SemanticErrorInReference_WatchApi/lib/index.d.ts' has not been built from source file '/.test/projectReferencesNotBuilt_SemanticErrorInReference_WatchApi/lib/index.ts'.
-
 ERROR in lib\index.ts
 ./lib/index.ts
-[tsl] ERROR in lib\index.ts(6,7)
+[tsl] ERROR in lib\index.ts(6,7)
       TS2322: Type '10' is not assignable to type 'string'.
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference/expectedOutput-3.8/output.transpiled.txt b/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference/expectedOutput-3.8/output.transpiled.txt
index 07bb3ce02..b247cbbdc 100644
--- a/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference/expectedOutput-3.8/output.transpiled.txt
+++ b/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference/expectedOutput-3.8/output.transpiled.txt
@@ -1,12 +1,8 @@
     Asset      Size  Chunks             Chunk Names
 bundle.js  4.36 KiB    main  [emitted]  main
 Entrypoint main = bundle.js
-[./app.ts] 167 bytes {main} [built] [2 errors]
+[./app.ts] 167 bytes {main} [built] [1 error]
 [./lib/index.ts] 134 bytes {main} [built]
 
-ERROR in tsconfig.json
-[tsl] ERROR
-      TS6305: Output file '/.test/projectReferencesNotBuilt_SyntaxErrorInReference/lib/index.d.ts' has not been built from source file '/.test/projectReferencesNotBuilt_SyntaxErrorInReference/lib/index.ts'.
-
-ERROR in [tsl] ERROR in lib\index.ts(4,12)
+ERROR in [tsl] ERROR in lib\index.ts(4,12)
       TS1136: Property assignment expected.
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference/expectedOutput-3.8/output.txt b/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference/expectedOutput-3.8/output.txt
index fdd0dfe4c..96387d70b 100644
--- a/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference/expectedOutput-3.8/output.txt
+++ b/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference/expectedOutput-3.8/output.txt
@@ -7,16 +7,12 @@ Entrypoint main = bundle.js
 ERROR in ./lib/index.ts
 Module build failed (from /index.js):
 Error: TypeScript emitted no output for lib\index.ts. The most common cause for this is having errors when building referenced projects.
-    at makeSourceMapAndFinish (dist\index.js:80:15)
-    at successLoader (dist\index.js:68:9)
-    at Object.loader (dist\index.js:22:12)
+    at makeSourceMapAndFinish (dist\index.js:106:18)
+    at successLoader (dist\index.js:92:9)
+    at Object.loader (dist\index.js:43:5)
  @ ./app.ts 3:12-28
 
-ERROR in tsconfig.json
-[tsl] ERROR
-      TS6305: Output file '/.test/projectReferencesNotBuilt_SyntaxErrorInReference/lib/index.d.ts' has not been built from source file '/.test/projectReferencesNotBuilt_SyntaxErrorInReference/lib/index.ts'.
-
 ERROR in lib\index.ts
 ./lib/index.ts
-[tsl] ERROR in lib\index.ts(4,12)
+[tsl] ERROR in lib\index.ts(4,12)
       TS1136: Property assignment expected.
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference_WatchApi/expectedOutput-3.8/output.transpiled.txt b/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference_WatchApi/expectedOutput-3.8/output.transpiled.txt
index 7de607cf2..b247cbbdc 100644
--- a/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference_WatchApi/expectedOutput-3.8/output.transpiled.txt
+++ b/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference_WatchApi/expectedOutput-3.8/output.transpiled.txt
@@ -1,12 +1,8 @@
     Asset      Size  Chunks             Chunk Names
 bundle.js  4.36 KiB    main  [emitted]  main
 Entrypoint main = bundle.js
-[./app.ts] 167 bytes {main} [built] [2 errors]
+[./app.ts] 167 bytes {main} [built] [1 error]
 [./lib/index.ts] 134 bytes {main} [built]
 
-ERROR in tsconfig.json
-[tsl] ERROR
-      TS6305: Output file '/.test/projectReferencesNotBuilt_SyntaxErrorInReference_WatchApi/lib/index.d.ts' has not been built from source file '/.test/projectReferencesNotBuilt_SyntaxErrorInReference_WatchApi/lib/index.ts'.
-
-ERROR in [tsl] ERROR in lib\index.ts(4,12)
+ERROR in [tsl] ERROR in lib\index.ts(4,12)
       TS1136: Property assignment expected.
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference_WatchApi/expectedOutput-3.8/output.txt b/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference_WatchApi/expectedOutput-3.8/output.txt
index 40fb18df5..bd7d096ab 100644
--- a/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference_WatchApi/expectedOutput-3.8/output.txt
+++ b/test/comparison-tests/projectReferencesNotBuilt_SyntaxErrorInReference_WatchApi/expectedOutput-3.8/output.txt
@@ -7,16 +7,12 @@ Entrypoint main = bundle.js
 ERROR in ./lib/index.ts
 Module build failed (from /index.js):
 Error: TypeScript emitted no output for lib\index.ts. The most common cause for this is having errors when building referenced projects.
-    at makeSourceMapAndFinish (dist\index.js:80:15)
-    at successLoader (dist\index.js:68:9)
-    at Object.loader (dist\index.js:22:12)
+    at makeSourceMapAndFinish (dist\index.js:106:18)
+    at successLoader (dist\index.js:92:9)
+    at Object.loader (dist\index.js:43:5)
  @ ./app.ts 3:12-28
 
-ERROR in tsconfig.json
-[tsl] ERROR
-      TS6305: Output file '/.test/projectReferencesNotBuilt_SyntaxErrorInReference_WatchApi/lib/index.d.ts' has not been built from source file '/.test/projectReferencesNotBuilt_SyntaxErrorInReference_WatchApi/lib/index.ts'.
-
 ERROR in lib\index.ts
 ./lib/index.ts
-[tsl] ERROR in lib\index.ts(4,12)
+[tsl] ERROR in lib\index.ts(4,12)
       TS1136: Property assignment expected.
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/bundle.js b/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/bundle.js
index 60f7f137c..7b491a754 100644
--- a/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/bundle.js
+++ b/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/bundle.js
@@ -94,19 +94,19 @@
 /***/ (function(module, exports, __webpack_require__) {
 
 "use strict";
-eval("\nexports.__esModule = true;\nvar lib_1 = __webpack_require__(/*! ./lib */ \"./lib/out/index.js\");\nconsole.log(lib_1.lib.one, lib_1.lib.two, lib_1.lib.three);\n\n\n//# sourceURL=webpack:///./app.ts?");
+eval("\nexports.__esModule = true;\nvar lib_1 = __webpack_require__(/*! ./lib */ \"./lib/index.ts\");\nconsole.log(lib_1.lib.one, lib_1.lib.two, lib_1.lib.three);\n\n\n//# sourceURL=webpack:///./app.ts?");
 
 /***/ }),
 
-/***/ "./lib/out/index.js":
-/*!**************************!*\
-  !*** ./lib/out/index.js ***!
-  \**************************/
+/***/ "./lib/index.ts":
+/*!**********************!*\
+  !*** ./lib/index.ts ***!
+  \**********************/
 /*! no static exports found */
 /***/ (function(module, exports, __webpack_require__) {
 
 "use strict";
-eval("\nexports.__esModule = true;\nexports.lib = {\n    one: 1,\n    two: 2,\n    three: 3\n};\n//# sourceMappingURL=index.js.map\n\n//# sourceURL=webpack:///./lib/out/index.js?");
+eval("\r\nexports.__esModule = true;\r\nexports.lib = {\r\n    one: 1,\r\n    two: 2,\r\n    three: 3\r\n};\r\n\n\n//# sourceURL=webpack:///./lib/index.ts?");
 
 /***/ })
 
diff --git a/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/bundle.transpiled.js b/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/bundle.transpiled.js
index a4bc091aa..a59c4688b 100644
--- a/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/bundle.transpiled.js
+++ b/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/bundle.transpiled.js
@@ -94,19 +94,19 @@
 /***/ (function(module, exports, __webpack_require__) {
 
 "use strict";
-eval("\nObject.defineProperty(exports, \"__esModule\", { value: true });\nvar lib_1 = __webpack_require__(/*! ./lib */ \"./lib/out/index.js\");\nconsole.log(lib_1.lib.one, lib_1.lib.two, lib_1.lib.three);\n\n\n//# sourceURL=webpack:///./app.ts?");
+eval("\nObject.defineProperty(exports, \"__esModule\", { value: true });\nvar lib_1 = __webpack_require__(/*! ./lib */ \"./lib/index.ts\");\nconsole.log(lib_1.lib.one, lib_1.lib.two, lib_1.lib.three);\n\n\n//# sourceURL=webpack:///./app.ts?");
 
 /***/ }),
 
-/***/ "./lib/out/index.js":
-/*!**************************!*\
-  !*** ./lib/out/index.js ***!
-  \**************************/
+/***/ "./lib/index.ts":
+/*!**********************!*\
+  !*** ./lib/index.ts ***!
+  \**********************/
 /*! no static exports found */
 /***/ (function(module, exports, __webpack_require__) {
 
 "use strict";
-eval("\nexports.__esModule = true;\nexports.lib = {\n    one: 1,\n    two: 2,\n    three: 3\n};\n//# sourceMappingURL=index.js.map\n\n//# sourceURL=webpack:///./lib/out/index.js?");
+eval("\nObject.defineProperty(exports, \"__esModule\", { value: true });\nexports.lib = {\n    one: 1,\n    two: 2,\n    three: 3\n};\n\n\n//# sourceURL=webpack:///./lib/index.ts?");
 
 /***/ })
 
diff --git a/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/output.transpiled.txt b/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/output.transpiled.txt
index cef6997fc..f31c64018 100644
--- a/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/output.transpiled.txt
+++ b/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/output.transpiled.txt
@@ -1,5 +1,5 @@
     Asset      Size  Chunks             Chunk Names
-bundle.js  4.37 KiB    main  [emitted]  main
+bundle.js  4.35 KiB    main  [emitted]  main
 Entrypoint main = bundle.js
 [./app.ts] 167 bytes {main} [built]
-[./lib/out/index.js] 130 bytes {main} [built]
\ No newline at end of file
+[./lib/index.ts] 133 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/output.txt b/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/output.txt
index 6a20f74f6..64fcf5538 100644
--- a/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/output.txt
+++ b/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/output.txt
@@ -1,7 +1,7 @@
                           Asset      Size  Chunks             Chunk Names
-                      bundle.js  4.34 KiB    main  [emitted]  main
+                      bundle.js  4.29 KiB    main  [emitted]  main
           ../lib/out/index.d.ts  89 bytes          [emitted]  
 ../lib/out/tsconfig.tsbuildinfo    70 KiB          [emitted]  
 Entrypoint main = bundle.js
 [./app.ts] 131 bytes {main} [built]
-[./lib/out/index.js] 130 bytes {main} [built]
\ No newline at end of file
+[./lib/index.ts] 104 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/patch0/output.txt b/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/patch0/output.txt
index 45d8f7737..87bcb1776 100644
--- a/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/patch0/output.txt
+++ b/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/patch0/output.txt
@@ -1,7 +1,7 @@
-                      Asset       Size  Chunks             Chunk Names
-                  bundle.js   4.33 KiB    main  [emitted]  main
-          ../lib/index.d.ts  108 bytes          [emitted]  
-../lib/tsconfig.tsbuildinfo   68.4 KiB          [emitted]  
+                          Asset       Size  Chunks             Chunk Names
+                      bundle.js   4.33 KiB    main  [emitted]  main
+          ../lib/out/index.d.ts  108 bytes          [emitted]  
+../lib/out/tsconfig.tsbuildinfo     70 KiB          [emitted]  
 Entrypoint main = bundle.js
 [./app.ts] 131 bytes {main} [built]
 [./lib/index.ts] 136 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/patch3/output.txt b/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/patch3/output.txt
index c4dd65cf6..0408330b4 100644
--- a/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/patch3/output.txt
+++ b/test/comparison-tests/projectReferencesOutDirWithPackageJson/expectedOutput-3.8/patch3/output.txt
@@ -1,7 +1,7 @@
-                      Asset       Size  Chunks             Chunk Names
-                  bundle.js   4.36 KiB    main  [emitted]  main
-          ../lib/index.d.ts  127 bytes          [emitted]  
-../lib/tsconfig.tsbuildinfo   68.4 KiB          [emitted]  
+                          Asset       Size  Chunks             Chunk Names
+                      bundle.js   4.36 KiB    main  [emitted]  main
+          ../lib/out/index.d.ts  127 bytes          [emitted]  
+../lib/out/tsconfig.tsbuildinfo     70 KiB          [emitted]  
 Entrypoint main = bundle.js
 [./app.ts] 169 bytes {main} [built]
 [./lib/index.ts] 132 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesWatchRefWithTwoFiles/expectedOutput-3.8/patch0/output.txt b/test/comparison-tests/projectReferencesWatchRefWithTwoFiles/expectedOutput-3.8/patch0/output.txt
index 1c3d5bb27..1b5e06e91 100644
--- a/test/comparison-tests/projectReferencesWatchRefWithTwoFiles/expectedOutput-3.8/patch0/output.txt
+++ b/test/comparison-tests/projectReferencesWatchRefWithTwoFiles/expectedOutput-3.8/patch0/output.txt
@@ -4,6 +4,6 @@
           ../lib/index.d.ts   89 bytes          [emitted]  
 ../lib/tsconfig.tsbuildinfo   67.8 KiB          [emitted]  
 Entrypoint main = bundle.js
-[./app.ts] 131 bytes {main} [built]
+[./app.ts] 131 bytes {main}
 [./lib/helper.ts] 121 bytes {main} [built]
-[./lib/index.ts] 197 bytes {main}
\ No newline at end of file
+[./lib/index.ts] 197 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt/expectedOutput-3.8/output.txt b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt/expectedOutput-3.8/output.txt
index 8486d9d82..ad0d1d354 100644
--- a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt/expectedOutput-3.8/output.txt
+++ b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt/expectedOutput-3.8/output.txt
@@ -1,6 +1,9 @@
-    Asset      Size  Chunks             Chunk Names
-bundle.js  4.77 KiB    main  [emitted]  main
+                      Asset      Size  Chunks             Chunk Names
+                  bundle.js   4.8 KiB    main  [emitted]  main
+         ../lib/helper.d.ts  92 bytes          [emitted]  
+          ../lib/index.d.ts  89 bytes          [emitted]  
+../lib/tsconfig.tsbuildinfo  67.8 KiB          [emitted]  
 Entrypoint main = bundle.js
 [./app.ts] 131 bytes {main} [built]
-[./lib/helper.ts] 100 bytes {main} [built]
-[./lib/index.ts] 189 bytes {main} [built]
\ No newline at end of file
+[./lib/helper.ts] 107 bytes {main} [built]
+[./lib/index.ts] 197 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt/expectedOutput-3.8/patch0/output.txt b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt/expectedOutput-3.8/patch0/output.txt
index ee2f58669..734cb3fac 100644
--- a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt/expectedOutput-3.8/patch0/output.txt
+++ b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt/expectedOutput-3.8/patch0/output.txt
@@ -1,9 +1,8 @@
                       Asset       Size  Chunks             Chunk Names
-                  bundle.js    4.8 KiB    main  [emitted]  main
-         ../lib/helper.d.ts   92 bytes          [emitted]  
+                  bundle.js   4.82 KiB    main  [emitted]  main
           ../lib/index.d.ts  108 bytes          [emitted]  
 ../lib/tsconfig.tsbuildinfo   67.8 KiB          [emitted]  
 Entrypoint main = bundle.js
 [./app.ts] 131 bytes {main} [built]
-[./lib/helper.ts] 100 bytes {main}
+[./lib/helper.ts] 107 bytes {main}
 [./lib/index.ts] 211 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt/expectedOutput-3.8/patch1/output.txt b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt/expectedOutput-3.8/patch1/output.txt
index 7e9c5b9b0..4137e4207 100644
--- a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt/expectedOutput-3.8/patch1/output.txt
+++ b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt/expectedOutput-3.8/patch1/output.txt
@@ -4,6 +4,6 @@
           ../lib/index.d.ts  108 bytes          [emitted]  
 ../lib/tsconfig.tsbuildinfo   67.8 KiB          [emitted]  
 Entrypoint main = bundle.js
-[./app.ts] 131 bytes {main} [built]
+[./app.ts] 131 bytes {main}
 [./lib/helper.ts] 121 bytes {main} [built]
-[./lib/index.ts] 211 bytes {main}
\ No newline at end of file
+[./lib/index.ts] 211 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_Composite_WatchApi/expectedOutput-3.8/output.txt b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_Composite_WatchApi/expectedOutput-3.8/output.txt
index 5645df8f1..e73b7c2b1 100644
--- a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_Composite_WatchApi/expectedOutput-3.8/output.txt
+++ b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_Composite_WatchApi/expectedOutput-3.8/output.txt
@@ -1,8 +1,11 @@
-                  Asset      Size  Chunks             Chunk Names
-              bundle.js  4.77 KiB    main  [emitted]  main
-            ../app.d.ts  11 bytes          [emitted]  
-../tsconfig.tsbuildinfo  51.8 KiB          [emitted]  
+                      Asset      Size  Chunks             Chunk Names
+                  bundle.js   4.8 KiB    main  [emitted]  main
+                ../app.d.ts  11 bytes          [emitted]  
+    ../tsconfig.tsbuildinfo  51.8 KiB          [emitted]  
+         ../lib/helper.d.ts  92 bytes          [emitted]  
+          ../lib/index.d.ts  89 bytes          [emitted]  
+../lib/tsconfig.tsbuildinfo  67.8 KiB          [emitted]  
 Entrypoint main = bundle.js
 [./app.ts] 131 bytes {main} [built]
-[./lib/helper.ts] 100 bytes {main} [built]
-[./lib/index.ts] 189 bytes {main} [built]
\ No newline at end of file
+[./lib/helper.ts] 107 bytes {main} [built]
+[./lib/index.ts] 197 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_Composite_WatchApi/expectedOutput-3.8/patch0/output.txt b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_Composite_WatchApi/expectedOutput-3.8/patch0/output.txt
index 7db149fe5..e17a418d1 100644
--- a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_Composite_WatchApi/expectedOutput-3.8/patch0/output.txt
+++ b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_Composite_WatchApi/expectedOutput-3.8/patch0/output.txt
@@ -1,10 +1,9 @@
                       Asset       Size  Chunks             Chunk Names
-                  bundle.js    4.8 KiB    main  [emitted]  main
+                  bundle.js   4.82 KiB    main  [emitted]  main
                 ../app.d.ts   11 bytes          [emitted]  
-         ../lib/helper.d.ts   92 bytes          [emitted]  
           ../lib/index.d.ts  108 bytes          [emitted]  
 ../lib/tsconfig.tsbuildinfo   67.8 KiB          [emitted]  
 Entrypoint main = bundle.js
 [./app.ts] 131 bytes {main} [built]
-[./lib/helper.ts] 100 bytes {main}
+[./lib/helper.ts] 107 bytes {main}
 [./lib/index.ts] 211 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_Composite_WatchApi/expectedOutput-3.8/patch1/output.txt b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_Composite_WatchApi/expectedOutput-3.8/patch1/output.txt
index 4df8353e2..4036a0cf2 100644
--- a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_Composite_WatchApi/expectedOutput-3.8/patch1/output.txt
+++ b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_Composite_WatchApi/expectedOutput-3.8/patch1/output.txt
@@ -7,4 +7,4 @@
 Entrypoint main = bundle.js
 [./app.ts] 131 bytes {main}
 [./lib/helper.ts] 121 bytes {main} [built]
-[./lib/index.ts] 211 bytes {main}
\ No newline at end of file
+[./lib/index.ts] 211 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_WatchApi/expectedOutput-3.8/output.txt b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_WatchApi/expectedOutput-3.8/output.txt
index 8486d9d82..ad0d1d354 100644
--- a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_WatchApi/expectedOutput-3.8/output.txt
+++ b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_WatchApi/expectedOutput-3.8/output.txt
@@ -1,6 +1,9 @@
-    Asset      Size  Chunks             Chunk Names
-bundle.js  4.77 KiB    main  [emitted]  main
+                      Asset      Size  Chunks             Chunk Names
+                  bundle.js   4.8 KiB    main  [emitted]  main
+         ../lib/helper.d.ts  92 bytes          [emitted]  
+          ../lib/index.d.ts  89 bytes          [emitted]  
+../lib/tsconfig.tsbuildinfo  67.8 KiB          [emitted]  
 Entrypoint main = bundle.js
 [./app.ts] 131 bytes {main} [built]
-[./lib/helper.ts] 100 bytes {main} [built]
-[./lib/index.ts] 189 bytes {main} [built]
\ No newline at end of file
+[./lib/helper.ts] 107 bytes {main} [built]
+[./lib/index.ts] 197 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_WatchApi/expectedOutput-3.8/patch0/output.txt b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_WatchApi/expectedOutput-3.8/patch0/output.txt
index ee2f58669..734cb3fac 100644
--- a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_WatchApi/expectedOutput-3.8/patch0/output.txt
+++ b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_WatchApi/expectedOutput-3.8/patch0/output.txt
@@ -1,9 +1,8 @@
                       Asset       Size  Chunks             Chunk Names
-                  bundle.js    4.8 KiB    main  [emitted]  main
-         ../lib/helper.d.ts   92 bytes          [emitted]  
+                  bundle.js   4.82 KiB    main  [emitted]  main
           ../lib/index.d.ts  108 bytes          [emitted]  
 ../lib/tsconfig.tsbuildinfo   67.8 KiB          [emitted]  
 Entrypoint main = bundle.js
 [./app.ts] 131 bytes {main} [built]
-[./lib/helper.ts] 100 bytes {main}
+[./lib/helper.ts] 107 bytes {main}
 [./lib/index.ts] 211 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_WatchApi/expectedOutput-3.8/patch1/output.txt b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_WatchApi/expectedOutput-3.8/patch1/output.txt
index 24bc679a7..4137e4207 100644
--- a/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_WatchApi/expectedOutput-3.8/patch1/output.txt
+++ b/test/comparison-tests/projectReferencesWatchRefWithTwoFilesAlreadyBuilt_WatchApi/expectedOutput-3.8/patch1/output.txt
@@ -6,4 +6,4 @@
 Entrypoint main = bundle.js
 [./app.ts] 131 bytes {main}
 [./lib/helper.ts] 121 bytes {main} [built]
-[./lib/index.ts] 211 bytes {main}
\ No newline at end of file
+[./lib/index.ts] 211 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesWatchRefWithTwoFiles_Composite_WatchApi/expectedOutput-3.8/patch0/output.txt b/test/comparison-tests/projectReferencesWatchRefWithTwoFiles_Composite_WatchApi/expectedOutput-3.8/patch0/output.txt
index 6a22a2be6..5bf34afaf 100644
--- a/test/comparison-tests/projectReferencesWatchRefWithTwoFiles_Composite_WatchApi/expectedOutput-3.8/patch0/output.txt
+++ b/test/comparison-tests/projectReferencesWatchRefWithTwoFiles_Composite_WatchApi/expectedOutput-3.8/patch0/output.txt
@@ -7,4 +7,4 @@
 Entrypoint main = bundle.js
 [./app.ts] 131 bytes {main}
 [./lib/helper.ts] 121 bytes {main} [built]
-[./lib/index.ts] 197 bytes {main}
\ No newline at end of file
+[./lib/index.ts] 197 bytes {main} [built]
\ No newline at end of file
diff --git a/test/comparison-tests/projectReferencesWatchRefWithTwoFiles_WatchApi/expectedOutput-3.8/patch0/output.txt b/test/comparison-tests/projectReferencesWatchRefWithTwoFiles_WatchApi/expectedOutput-3.8/patch0/output.txt
index f4f1ffdbd..1b5e06e91 100644
--- a/test/comparison-tests/projectReferencesWatchRefWithTwoFiles_WatchApi/expectedOutput-3.8/patch0/output.txt
+++ b/test/comparison-tests/projectReferencesWatchRefWithTwoFiles_WatchApi/expectedOutput-3.8/patch0/output.txt
@@ -6,4 +6,4 @@
 Entrypoint main = bundle.js
 [./app.ts] 131 bytes {main}
 [./lib/helper.ts] 121 bytes {main} [built]
-[./lib/index.ts] 197 bytes {main}
\ No newline at end of file
+[./lib/index.ts] 197 bytes {main} [built]
\ No newline at end of file