diff --git a/src/vs/workbench/electron-browser/workbench.ts b/src/vs/workbench/electron-browser/workbench.ts
index b8bf77dc373..3d99ed4063b 100644
--- a/src/vs/workbench/electron-browser/workbench.ts
+++ b/src/vs/workbench/electron-browser/workbench.ts
@@ -53,6 +53,8 @@ import {IActivityService} from 'vs/workbench/services/activity/common/activitySe
 import {IViewletService} from 'vs/workbench/services/viewlet/common/viewletService';
 import {FileService} from 'vs/workbench/services/files/electron-browser/fileService';
 import {IFileService} from 'vs/platform/files/common/files';
+import {IConfigurationResolverService} from 'vs/workbench/services/configurationResolver/common/configurationResolver';
+import {ConfigurationResolverService} from 'vs/workbench/services/configurationResolver/node/configurationResolverService';
 import {IPanelService} from 'vs/workbench/services/panel/common/panelService';
 import {WorkbenchMessageService} from 'vs/workbench/services/message/browser/messageService';
 import {IWorkbenchEditorService} from 'vs/workbench/services/editor/common/editorService';
@@ -388,6 +390,10 @@ export class Workbench implements IPartService {
 		// Configuration Editing
 		serviceCollection.set(IConfigurationEditingService, this.instantiationService.createInstance(ConfigurationEditingService));
 
+		// Configuration Resolver
+		const configurationResolverService = this.instantiationService.createInstance(ConfigurationResolverService);
+		serviceCollection.set(IConfigurationResolverService, configurationResolverService);
+
 		// Quick open service (quick open controller)
 		this.quickOpen = this.instantiationService.createInstance(QuickOpenController);
 		this.toDispose.push(this.quickOpen);
diff --git a/src/vs/workbench/services/configurationResolver/common/configurationResolver.ts b/src/vs/workbench/services/configurationResolver/common/configurationResolver.ts
new file mode 100644
index 00000000000..9aed75fd631
--- /dev/null
+++ b/src/vs/workbench/services/configurationResolver/common/configurationResolver.ts
@@ -0,0 +1,20 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import {IStringDictionary} from 'vs/base/common/collections';
+import {createDecorator} from 'vs/platform/instantiation/common/instantiation';
+
+export const IConfigurationResolverService = createDecorator<IConfigurationResolverService>('configurationResolverService');
+
+export interface IConfigurationResolverService {
+	_serviceBrand: any;
+
+	resolve(value: string): string;
+	resolve(value: string[]): string[];
+	resolve(value: IStringDictionary<string>): IStringDictionary<string>;
+	resolve(value: IStringDictionary<string[]>): IStringDictionary<string[]>;
+	resolve(value: IStringDictionary<IStringDictionary<string>>): IStringDictionary<IStringDictionary<string>>;
+	resolveAny<T>(value: T): T;
+}
diff --git a/src/vs/workbench/services/configurationResolver/node/configurationResolverService.ts b/src/vs/workbench/services/configurationResolver/node/configurationResolverService.ts
new file mode 100644
index 00000000000..ebd7109a841
--- /dev/null
+++ b/src/vs/workbench/services/configurationResolver/node/configurationResolverService.ts
@@ -0,0 +1,148 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import * as paths from 'vs/base/common/paths';
+import * as types from 'vs/base/common/types';
+import {IStringDictionary} from 'vs/base/common/collections';
+import {IConfigurationResolverService} from 'vs/workbench/services/configurationResolver/common/configurationResolver';
+import {IWorkspaceContextService} from 'vs/platform/workspace/common/workspace';
+import {IEnvironmentService} from 'vs/platform/environment/common/environment';
+import {IWorkbenchEditorService} from 'vs/workbench/services/editor/common/editorService';
+import {asFileEditorInput} from 'vs/workbench/common/editor';
+
+export class ConfigurationResolverService implements IConfigurationResolverService {
+	_serviceBrand: any;
+	private _workspaceRoot: string;
+	private _execPath: string;
+
+	constructor(
+		@IWorkbenchEditorService private editorService: IWorkbenchEditorService,
+		@IWorkspaceContextService private contextService: IWorkspaceContextService,
+		@IEnvironmentService private environmentService: IEnvironmentService
+	) {
+		const workspace = contextService.getWorkspace();
+		const fsPath = workspace ? workspace.resource.fsPath : '';
+		this._workspaceRoot = paths.normalize(fsPath, true);
+		this._execPath = environmentService.execPath;
+		Object.keys(process.env).forEach(key => {
+			this[`env.${key}`] = process.env[key];
+		});
+	}
+
+	private get execPath(): string {
+		return this._execPath;
+	}
+
+	private get cwd(): string {
+		return this.workspaceRoot;
+	}
+
+	private get workspaceRoot(): string {
+		return this._workspaceRoot;
+	}
+
+	private get file(): string {
+		return this.getFilePath();
+	}
+
+	private get relativeFile(): string {
+		return (this.workspaceRoot) ? paths.relative(this.workspaceRoot, this.file) : this.file;
+	}
+
+	private get fileBasename(): string {
+		return paths.basename(this.getFilePath());
+	}
+
+	private get fileDirname(): string {
+		return paths.dirname(this.getFilePath());
+	}
+
+	private get fileExtname(): string {
+		return paths.extname(this.getFilePath());
+	}
+
+	private getFilePath(): string {
+		let input = this.editorService.getActiveEditorInput();
+		if (!input) {
+			return '';
+		}
+		let fileEditorInput = asFileEditorInput(input);
+		if (!fileEditorInput) {
+			return '';
+		}
+		let resource = fileEditorInput.getResource();
+		return paths.normalize(resource.fsPath, true);
+	}
+
+	public resolve(value: string): string;
+	public resolve(value: string[]): string[];
+	public resolve(value: IStringDictionary<string>): IStringDictionary<string>;
+	public resolve(value: IStringDictionary<string[]>): IStringDictionary<string[]>;
+	public resolve(value: IStringDictionary<IStringDictionary<string>>): IStringDictionary<IStringDictionary<string>>;
+	public resolve(value: any): any {
+		if (types.isString(value)) {
+			return this.resolveString(value);
+		} else if (types.isArray(value)) {
+			return this.__resolveArray(value);
+		} else if (types.isObject(value)) {
+			return this.__resolveLiteral(value);
+		}
+
+		return value;
+	}
+
+	public resolveAny<T>(value: T): T;
+	public resolveAny<T>(value: any): any {
+		if (types.isString(value)) {
+			return this.resolveString(value);
+		} else if (types.isArray(value)) {
+			return this.__resolveAnyArray(value);
+		} else if (types.isObject(value)) {
+			return this.__resolveAnyLiteral(value);
+		}
+
+		return value;
+	}
+
+	protected resolveString(value: string): string {
+		let regexp = /\$\{(.*?)\}/g;
+		return value.replace(regexp, (match: string, name: string) => {
+			let newValue = (<any>this)[name];
+			if (types.isString(newValue)) {
+				return newValue;
+			} else {
+				return match && match.indexOf('env.') > 0 ? '' : match;
+			}
+		});
+	}
+
+	private __resolveLiteral(values: IStringDictionary<string | IStringDictionary<string> | string[]>): IStringDictionary<string | IStringDictionary<string> | string[]> {
+		let result: IStringDictionary<string | IStringDictionary<string> | string[]> = Object.create(null);
+		Object.keys(values).forEach(key => {
+			let value = values[key];
+			result[key] = <any>this.resolve(<any>value);
+		});
+		return result;
+	}
+
+	private __resolveAnyLiteral<T>(values: T): T;
+	private __resolveAnyLiteral<T>(values: any): any {
+		let result: IStringDictionary<string | IStringDictionary<string> | string[]> = Object.create(null);
+		Object.keys(values).forEach(key => {
+			let value = values[key];
+			result[key] = <any>this.resolveAny(<any>value);
+		});
+		return result;
+	}
+
+	private __resolveArray(value: string[]): string[] {
+		return value.map(s => this.resolveString(s));
+	}
+
+	private __resolveAnyArray<T>(value: T[]): T[];
+	private __resolveAnyArray(value: any[]): any[] {
+		return value.map(s => this.resolveAny(s));
+	}
+}
diff --git a/src/vs/workbench/services/configurationResolver/test/node/configurationResolverService.test.ts b/src/vs/workbench/services/configurationResolver/test/node/configurationResolverService.test.ts
new file mode 100644
index 00000000000..cdd8f723993
--- /dev/null
+++ b/src/vs/workbench/services/configurationResolver/test/node/configurationResolverService.test.ts
@@ -0,0 +1,12 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import assert = require('assert');
+
+suite('Configuration Resolver Service', () => {
+	test('fake', () => {
+		assert.equal(true, true);
+	});
+});