diff --git a/extensions/typescript-language-features/src/tsconfig.ts b/extensions/typescript-language-features/src/tsconfig.ts
index e85c715e875..01a88a43f34 100644
--- a/extensions/typescript-language-features/src/tsconfig.ts
+++ b/extensions/typescript-language-features/src/tsconfig.ts
@@ -29,7 +29,7 @@ export function inferredProjectCompilerOptions(
 		module: (version.gte(API.v540) ? 'Preserve' : 'ESNext') as Proto.ModuleKind,
 		moduleResolution: (version.gte(API.v540) ? 'Bundler' : 'Node') as Proto.ModuleResolutionKind,
 		target: 'ES2022' as Proto.ScriptTarget,
-		jsx: 'react' as Proto.JsxEmit,
+		jsx: 'react-jsx' as Proto.JsxEmit,
 	};
 
 	if (version.gte(API.v500)) {