diff --git a/src/server/editorServices.ts b/src/server/editorServices.ts
index 4699e1a1d4dd6..d8322f5e7c50c 100644
--- a/src/server/editorServices.ts
+++ b/src/server/editorServices.ts
@@ -283,6 +283,7 @@ namespace ts.server {
         throttleWaitMilliseconds?: number;
         globalPlugins?: string[];
         pluginProbeLocations?: string[];
+        allowLocalPluginLoads?: boolean;
     }
 
     export class ProjectService {
@@ -342,6 +343,7 @@ namespace ts.server {
 
         public readonly globalPlugins: ReadonlyArray<string>;
         public readonly pluginProbeLocations: ReadonlyArray<string>;
+        public readonly allowLocalPluginLoads: boolean;
 
         constructor(opts: ProjectServiceOptions) {
             this.host = opts.host;
@@ -353,6 +355,7 @@ namespace ts.server {
             this.eventHandler = opts.eventHandler;
             this.globalPlugins = opts.globalPlugins || emptyArray;
             this.pluginProbeLocations = opts.pluginProbeLocations || emptyArray;
+            this.allowLocalPluginLoads = !!opts.allowLocalPluginLoads;
 
             Debug.assert(!!this.host.createHash, "'ServerHost.createHash' is required for ProjectService");
 
diff --git a/src/server/project.ts b/src/server/project.ts
index 09c8d74c8c7f0..6aded117599c0 100644
--- a/src/server/project.ts
+++ b/src/server/project.ts
@@ -873,6 +873,12 @@ namespace ts.server {
             // ../../.. to walk from X/node_modules/typescript/lib/tsserver.js to X/node_modules/
             const searchPaths = [combinePaths(host.getExecutingFilePath(), "../../.."), ...this.projectService.pluginProbeLocations];
 
+            if (this.projectService.allowLocalPluginLoads) {
+                const local = getDirectoryPath(this.canonicalConfigFilePath);
+                this.projectService.logger.info(`Local plugin loading enabled; adding ${local} to search paths`);
+                searchPaths.unshift(local);
+            }
+
             // Enable tsconfig-specified plugins
             if (options.plugins) {
                 for (const pluginConfigEntry of options.plugins) {
diff --git a/src/server/server.ts b/src/server/server.ts
index 79cfc3882aef6..a0b994c34137f 100644
--- a/src/server/server.ts
+++ b/src/server/server.ts
@@ -16,6 +16,7 @@ namespace ts.server {
         telemetryEnabled: boolean;
         globalPlugins: string[];
         pluginProbeLocations: string[];
+        allowLocalPluginLoads: boolean;
     }
 
     const net: {
@@ -403,7 +404,8 @@ namespace ts.server {
                 logger,
                 canUseEvents,
                 globalPlugins: options.globalPlugins,
-                pluginProbeLocations: options.pluginProbeLocations});
+                pluginProbeLocations: options.pluginProbeLocations,
+                allowLocalPluginLoads: options.allowLocalPluginLoads });
 
             if (telemetryEnabled && typingsInstaller) {
                 typingsInstaller.setTelemetrySender(this);
@@ -744,6 +746,7 @@ namespace ts.server {
 
     const globalPlugins = (findArgument("--globalPlugins") || "").split(",");
     const pluginProbeLocations = (findArgument("--pluginProbeLocations") || "").split(",");
+    const allowLocalPluginLoads = hasArgument("--allowLocalPluginLoads");
 
     const useSingleInferredProject = hasArgument("--useSingleInferredProject");
     const disableAutomaticTypingAcquisition = hasArgument("--disableAutomaticTypingAcquisition");
@@ -761,7 +764,8 @@ namespace ts.server {
         telemetryEnabled,
         logger,
         globalPlugins,
-        pluginProbeLocations
+        pluginProbeLocations,
+        allowLocalPluginLoads
     };
 
     const ioSession = new IOSession(options);
diff --git a/src/server/session.ts b/src/server/session.ts
index a95d46ccaaf49..cee9698d6d9a0 100644
--- a/src/server/session.ts
+++ b/src/server/session.ts
@@ -348,6 +348,7 @@ namespace ts.server {
 
         globalPlugins?: string[];
         pluginProbeLocations?: string[];
+        allowLocalPluginLoads?: boolean;
     }
 
     export class Session implements EventSender {
@@ -435,7 +436,8 @@ namespace ts.server {
                 throttleWaitMilliseconds,
                 eventHandler: this.eventHandler,
                 globalPlugins: opts.globalPlugins,
-                pluginProbeLocations: opts.pluginProbeLocations
+                pluginProbeLocations: opts.pluginProbeLocations,
+                allowLocalPluginLoads: opts.allowLocalPluginLoads
             };
             this.projectService = new ProjectService(settings);
             this.gcTimer = new GcTimer(this.host, /*delay*/ 7000, this.logger);