diff --git a/extensions/html-language-features/server/src/modes/javascriptMode.ts b/extensions/html-language-features/server/src/modes/javascriptMode.ts
index 4148761e42f..b43c125ddea 100644
--- a/extensions/html-language-features/server/src/modes/javascriptMode.ts
+++ b/extensions/html-language-features/server/src/modes/javascriptMode.ts
@@ -18,10 +18,13 @@ import * as ts from 'typescript';
 import { join } from 'path';
 
 const FILE_NAME = 'vscode://javascript/1';  // the same 'file' is used for all contents
-const JQUERY_D_TS = join(__dirname, '../../lib/jquery.d.ts');
-
 const JS_WORD_REGEX = /(-?\d*\.\d\w*)|([^\`\~\!\@\#\%\^\&\*\(\)\-\=\+\[\{\]\}\\\|\;\:\'\"\,\.\<\>\/\?\s]+)/g;
 
+let jquery_d_ts = join(__dirname, '../lib/jquery.d.ts'); // when packaged
+if (!ts.sys.fileExists(jquery_d_ts)) {
+	jquery_d_ts = join(__dirname, '../../lib/jquery.d.ts'); // from source
+}
+
 export function getJavaScriptMode(documentRegions: LanguageModelCache<HTMLDocumentRegions>, workspace: Workspace): LanguageMode {
 	let jsDocuments = getLanguageModelCache<TextDocument>(10, 60, document => documentRegions.get(document).getEmbeddedDocument('javascript'));
 
@@ -36,7 +39,7 @@ export function getJavaScriptMode(documentRegions: LanguageModelCache<HTMLDocume
 	}
 	const host: ts.LanguageServiceHost = {
 		getCompilationSettings: () => compilerOptions,
-		getScriptFileNames: () => [FILE_NAME, JQUERY_D_TS],
+		getScriptFileNames: () => [FILE_NAME, jquery_d_ts],
 		getScriptKind: () => ts.ScriptKind.JS,
 		getScriptVersion: (fileName: string) => {
 			if (fileName === FILE_NAME) {