diff --git a/extensions/typescript-language-features/src/typescriptServiceClient.ts b/extensions/typescript-language-features/src/typescriptServiceClient.ts
index bb45b894dcc..5681ca19b4e 100644
--- a/extensions/typescript-language-features/src/typescriptServiceClient.ts
+++ b/extensions/typescript-language-features/src/typescriptServiceClient.ts
@@ -640,8 +640,8 @@ export default class TypeScriptServiceClient extends Disposable implements IType
 			case 'syntaxDiag':
 			case 'semanticDiag':
 			case 'suggestionDiag':
-				// This event also roughly signals that the global project has been loaded successfully
-				this.loadingIndicator.finishedLoadingProject(undefined /* projectName */);
+				// This event also roughly signals that projects have been loaded successfully (since the TS server is synchronous)
+				this.loadingIndicator.reset();
 
 				const diagnosticEvent = event as Proto.DiagnosticEvent;
 				if (diagnosticEvent.body && diagnosticEvent.body.diagnostics) {