diff --git a/README.md b/README.md
index 59f2a48b2..ab55a9d26 100644
--- a/README.md
+++ b/README.md
@@ -87,6 +87,8 @@ Create a new node.js configuration, add `-r ts-node/register` to node args and m
 }
 ```
 
+**Note:** If you are using the `--project <tsconfig.json>` command line argument as per the [Configuration Options](#configuration-options), and want to apply this same behavior when launching in VS Code, add an "env" key into the launch configuration: `"env": { "TS_NODE_PROJECT": "<tsconfig.json>" }`.
+
 ## How It Works
 
 **TypeScript Node** works by registering the TypeScript compiler for `.tsx?` and `.jsx?` (when `allowJs == true`) extensions. When node.js has an extension registered (via `require.extensions`), it will use the extension internally for module resolution. When an extension is unknown to node.js, it handles the file as `.js` (JavaScript). By default, **TypeScript Node** avoids compiling files in `/node_modules/` for three reasons: