diff --git a/src/compiler/commandLineParser.ts b/src/compiler/commandLineParser.ts
index 629063de29808..b88f6325ba0af 100644
--- a/src/compiler/commandLineParser.ts
+++ b/src/compiler/commandLineParser.ts
@@ -1104,6 +1104,7 @@ const commandOptionsWithoutBuild: CommandLineOption[] = [
         category: Diagnostics.Modules,
         description: Diagnostics.Allow_imports_to_include_TypeScript_file_extensions_Requires_moduleResolution_bundler_and_either_noEmit_or_emitDeclarationOnly_to_be_set,
         defaultValueDescription: false,
+        transpileOptionValue: undefined,
     },
     {
         name: "resolvePackageJsonExports",
diff --git a/src/testRunner/unittests/services/transpile.ts b/src/testRunner/unittests/services/transpile.ts
index f20efec044f93..b9f8bc915eca2 100644
--- a/src/testRunner/unittests/services/transpile.ts
+++ b/src/testRunner/unittests/services/transpile.ts
@@ -606,4 +606,18 @@ export * as alias from './file';`, {
             testVerbatimModuleSyntax: "only"
         }
     );
+
+    transpilesCorrectly("Can transpile .ts extensions without error",
+        `import { foo } from "./foo.ts";`, {
+            options: { compilerOptions: { module: ts.ModuleKind.ESNext, target: ts.ScriptTarget.ESNext } },
+            testVerbatimModuleSyntax: true
+        }
+    );
+
+    transpilesCorrectly("Ignores `allowImportingTsExtensions` without `noEmit` error",
+        `import { foo } from "./foo.ts";`, {
+            options: { compilerOptions: { module: ts.ModuleKind.ESNext, allowImportingTsExtensions: true, target: ts.ScriptTarget.ESNext } },
+            testVerbatimModuleSyntax: true
+        }
+    );
 });
diff --git a/tests/baselines/reference/transpile/Can transpile .ts extensions without error (verbatimModuleSyntax=true).js b/tests/baselines/reference/transpile/Can transpile .ts extensions without error (verbatimModuleSyntax=true).js
new file mode 100644
index 0000000000000..9a1ba82b5b69f
--- /dev/null
+++ b/tests/baselines/reference/transpile/Can transpile .ts extensions without error (verbatimModuleSyntax=true).js	
@@ -0,0 +1,2 @@
+import { foo } from "./foo.ts";
+//# sourceMappingURL=file.js.map
\ No newline at end of file
diff --git a/tests/baselines/reference/transpile/Can transpile .ts extensions without error (verbatimModuleSyntax=true).oldTranspile.js b/tests/baselines/reference/transpile/Can transpile .ts extensions without error (verbatimModuleSyntax=true).oldTranspile.js
new file mode 100644
index 0000000000000..9a1ba82b5b69f
--- /dev/null
+++ b/tests/baselines/reference/transpile/Can transpile .ts extensions without error (verbatimModuleSyntax=true).oldTranspile.js	
@@ -0,0 +1,2 @@
+import { foo } from "./foo.ts";
+//# sourceMappingURL=file.js.map
\ No newline at end of file
diff --git a/tests/baselines/reference/transpile/Can transpile .ts extensions without error.js b/tests/baselines/reference/transpile/Can transpile .ts extensions without error.js
new file mode 100644
index 0000000000000..e113dbc728253
--- /dev/null
+++ b/tests/baselines/reference/transpile/Can transpile .ts extensions without error.js	
@@ -0,0 +1,2 @@
+export {};
+//# sourceMappingURL=file.js.map
\ No newline at end of file
diff --git a/tests/baselines/reference/transpile/Can transpile .ts extensions without error.oldTranspile.js b/tests/baselines/reference/transpile/Can transpile .ts extensions without error.oldTranspile.js
new file mode 100644
index 0000000000000..e113dbc728253
--- /dev/null
+++ b/tests/baselines/reference/transpile/Can transpile .ts extensions without error.oldTranspile.js	
@@ -0,0 +1,2 @@
+export {};
+//# sourceMappingURL=file.js.map
\ No newline at end of file
diff --git a/tests/baselines/reference/transpile/Ignores allowImportingTsExtensions without noEmit error (verbatimModuleSyntax=true).js b/tests/baselines/reference/transpile/Ignores allowImportingTsExtensions without noEmit error (verbatimModuleSyntax=true).js
new file mode 100644
index 0000000000000..9a1ba82b5b69f
--- /dev/null
+++ b/tests/baselines/reference/transpile/Ignores allowImportingTsExtensions without noEmit error (verbatimModuleSyntax=true).js	
@@ -0,0 +1,2 @@
+import { foo } from "./foo.ts";
+//# sourceMappingURL=file.js.map
\ No newline at end of file
diff --git a/tests/baselines/reference/transpile/Ignores allowImportingTsExtensions without noEmit error (verbatimModuleSyntax=true).oldTranspile.js b/tests/baselines/reference/transpile/Ignores allowImportingTsExtensions without noEmit error (verbatimModuleSyntax=true).oldTranspile.js
new file mode 100644
index 0000000000000..9a1ba82b5b69f
--- /dev/null
+++ b/tests/baselines/reference/transpile/Ignores allowImportingTsExtensions without noEmit error (verbatimModuleSyntax=true).oldTranspile.js	
@@ -0,0 +1,2 @@
+import { foo } from "./foo.ts";
+//# sourceMappingURL=file.js.map
\ No newline at end of file
diff --git a/tests/baselines/reference/transpile/Ignores allowImportingTsExtensions without noEmit error.js b/tests/baselines/reference/transpile/Ignores allowImportingTsExtensions without noEmit error.js
new file mode 100644
index 0000000000000..e113dbc728253
--- /dev/null
+++ b/tests/baselines/reference/transpile/Ignores allowImportingTsExtensions without noEmit error.js	
@@ -0,0 +1,2 @@
+export {};
+//# sourceMappingURL=file.js.map
\ No newline at end of file
diff --git a/tests/baselines/reference/transpile/Ignores allowImportingTsExtensions without noEmit error.oldTranspile.js b/tests/baselines/reference/transpile/Ignores allowImportingTsExtensions without noEmit error.oldTranspile.js
new file mode 100644
index 0000000000000..e113dbc728253
--- /dev/null
+++ b/tests/baselines/reference/transpile/Ignores allowImportingTsExtensions without noEmit error.oldTranspile.js	
@@ -0,0 +1,2 @@
+export {};
+//# sourceMappingURL=file.js.map
\ No newline at end of file