diff --git a/src/server/packageJsonCache.ts b/src/server/packageJsonCache.ts
index d47432341fbe3..290711a821721 100644
--- a/src/server/packageJsonCache.ts
+++ b/src/server/packageJsonCache.ts
@@ -9,7 +9,7 @@ namespace ts.server {
     }
 
     export function createPackageJsonCache(project: Project): PackageJsonCache {
-        const packageJsons = createMap<PackageJsonInfo>();
+        const packageJsons = createMap<PackageJsonInfo | false>();
         const directoriesWithoutPackageJson = createMap<true>();
         return {
             addOrUpdate,
@@ -18,7 +18,7 @@ namespace ts.server {
                 directoriesWithoutPackageJson.set(getDirectoryPath(fileName), true);
             },
             getInDirectory: directory => {
-                return packageJsons.get(combinePaths(directory, "package.json"));
+                return packageJsons.get(combinePaths(directory, "package.json")) || undefined;
             },
             directoryHasPackageJson,
             searchDirectoryAndAncestors: directory => {
@@ -39,7 +39,7 @@ namespace ts.server {
 
         function addOrUpdate(fileName: Path) {
             const packageJsonInfo = createPackageJsonInfo(fileName, project);
-            if (packageJsonInfo) {
+            if (packageJsonInfo !== undefined) {
                 packageJsons.set(fileName, packageJsonInfo);
                 directoriesWithoutPackageJson.delete(getDirectoryPath(fileName));
             }
diff --git a/src/server/project.ts b/src/server/project.ts
index 5121556f53b6d..20f4a070dc5fa 100644
--- a/src/server/project.ts
+++ b/src/server/project.ts
@@ -1474,7 +1474,8 @@ namespace ts.server {
                     case Ternary.True:
                         const packageJsonFileName = combinePaths(directory, "package.json");
                         watchPackageJsonFile(packageJsonFileName);
-                        result.push(Debug.assertDefined(packageJsonCache.getInDirectory(directory)));
+                        const info = packageJsonCache.getInDirectory(directory);
+                        if (info) result.push(info);
                 }
                 if (rootPath && rootPath === toPath(directory)) {
                     return true;
diff --git a/src/services/utilities.ts b/src/services/utilities.ts
index 6a4b85ba901cf..55dc95d3fc2a7 100644
--- a/src/services/utilities.ts
+++ b/src/services/utilities.ts
@@ -2210,7 +2210,7 @@ namespace ts {
         return packageJsons;
     }
 
-    export function createPackageJsonInfo(fileName: string, host: LanguageServiceHost): PackageJsonInfo | undefined {
+    export function createPackageJsonInfo(fileName: string, host: LanguageServiceHost): PackageJsonInfo | false | undefined {
         if (!host.readFile) {
             return undefined;
         }
@@ -2221,19 +2221,18 @@ namespace ts {
         if (!stringContent) return undefined;
 
         const content = tryParseJson(stringContent) as PackageJsonRaw;
+        if (!content) return false;
         const info: Pick<PackageJsonInfo, typeof dependencyKeys[number]> = {};
-        if (content) {
-            for (const key of dependencyKeys) {
-                const dependencies = content[key];
-                if (!dependencies) {
-                    continue;
-                }
-                const dependencyMap = createMap<string>();
-                for (const packageName in dependencies) {
-                    dependencyMap.set(packageName, dependencies[packageName]);
-                }
-                info[key] = dependencyMap;
+        for (const key of dependencyKeys) {
+            const dependencies = content[key];
+            if (!dependencies) {
+                continue;
+            }
+            const dependencyMap = createMap<string>();
+            for (const packageName in dependencies) {
+                dependencyMap.set(packageName, dependencies[packageName]);
             }
+            info[key] = dependencyMap;
         }
 
         const dependencyGroups = [
diff --git a/src/testRunner/unittests/tsserver/packageJsonInfo.ts b/src/testRunner/unittests/tsserver/packageJsonInfo.ts
index 4d2e3dd26dc28..20be7ce56e3ab 100644
--- a/src/testRunner/unittests/tsserver/packageJsonInfo.ts
+++ b/src/testRunner/unittests/tsserver/packageJsonInfo.ts
@@ -74,14 +74,19 @@ namespace ts.projectSystem {
 
         it("handles errors in json parsing of package.json", () => {
             const packageJsonContent = `{ "mod" }`;
-            const { project } = setup([tsConfig, { path: packageJson.path, content: packageJsonContent }]);
+            const { project, host } = setup([tsConfig, { path: packageJson.path, content: packageJsonContent }]);
             project.getPackageJsonsVisibleToFile("/src/whatever/blah.ts" as Path);
             const packageJsonInfo = project.packageJsonCache.getInDirectory("/" as Path)!;
-            assert.isObject(packageJsonInfo);
-            assert.isUndefined(packageJsonInfo.dependencies);
-            assert.isUndefined(packageJsonInfo.devDependencies);
-            assert.isUndefined(packageJsonInfo.peerDependencies);
-            assert.isUndefined(packageJsonInfo.optionalDependencies);
+            assert.isUndefined(packageJsonInfo);
+
+            host.writeFile(packageJson.path, packageJson.content);
+            project.getPackageJsonsVisibleToFile("/src/whatever/blah.ts" as Path);
+            const packageJsonInfo2 = project.packageJsonCache.getInDirectory("/" as Path)!;
+            assert.ok(packageJsonInfo2);
+            assert.ok(packageJsonInfo2.dependencies);
+            assert.ok(packageJsonInfo2.devDependencies);
+            assert.ok(packageJsonInfo2.peerDependencies);
+            assert.ok(packageJsonInfo2.optionalDependencies);
         });
     });
 
diff --git a/tests/cases/fourslash/completionsImport_filteredByInvalidPackageJson_direct.ts b/tests/cases/fourslash/completionsImport_filteredByInvalidPackageJson_direct.ts
new file mode 100644
index 0000000000000..5bd121ed37f7a
--- /dev/null
+++ b/tests/cases/fourslash/completionsImport_filteredByInvalidPackageJson_direct.ts
@@ -0,0 +1,53 @@
+/// <reference path="fourslash.ts" />
+
+//@noEmit: true
+
+//@Filename: /package.json
+////{
+////  "mod"
+////  "dependencies": {
+////    "react": "*"
+////  }
+////}
+
+//@Filename: /node_modules/react/index.d.ts
+////export declare var React: any;
+
+//@Filename: /node_modules/react/package.json
+////{
+////  "name": "react",
+////  "types": "./index.d.ts"
+////}
+
+//@Filename: /node_modules/fake-react/index.d.ts
+////export declare var ReactFake: any;
+
+//@Filename: /node_modules/fake-react/package.json
+////{
+////  "name": "fake-react",
+////  "types": "./index.d.ts"
+////}
+
+//@Filename: /src/index.ts
+////const x = Re/**/
+
+verify.completions({
+    marker: test.marker(""),
+    isNewIdentifierLocation: true,
+    includes: [{
+        name: "React",
+        hasAction: true,
+        source: "/node_modules/react/index",
+        sortText: completion.SortText.AutoImportSuggestions
+    },
+    {
+        name: "ReactFake",
+        hasAction: true,
+        source: "/node_modules/fake-react/index",
+        sortText: completion.SortText.AutoImportSuggestions
+    }
+    ],
+    preferences: {
+        includeCompletionsForModuleExports: true
+    }
+});
diff --git a/tests/cases/fourslash/server/importSuggestionsCache_invalidPackageJson.ts b/tests/cases/fourslash/server/importSuggestionsCache_invalidPackageJson.ts
index d18ab19f5d2a0..ad1de44aea3af 100644
--- a/tests/cases/fourslash/server/importSuggestionsCache_invalidPackageJson.ts
+++ b/tests/cases/fourslash/server/importSuggestionsCache_invalidPackageJson.ts
@@ -22,36 +22,16 @@
 ////
 ////readF/**/
 
-verifyExcludes("readFile");
-edit.replaceLine(0, "import { promisify } from 'util';");
-verifyIncludes("readFile");
-edit.deleteLine(0);
-verifyExcludes("readFile");
-
-function verifyIncludes(name: string) {
-  goTo.marker("");
-  verify.completions({
-      includes: {
-          name,
-          source: "fs",
-          hasAction: true,
-          sortText: completion.SortText.AutoImportSuggestions,
-      },
-      preferences: {
-          includeCompletionsForModuleExports: true,
-          includeInsertTextCompletions: true,
-      },
-  });
-}
-
-function verifyExcludes(name: string) {
-  goTo.marker("");
-  verify.completions({
-      excludes: name,
-      preferences: {
-          includeCompletionsForModuleExports: true,
-          includeInsertTextCompletions: true,
-      },
-  });
-}
-
+goTo.marker("");
+verify.completions({
+    includes: {
+        name: "readFile",
+        source: "fs",
+        hasAction: true,
+        sortText: completion.SortText.AutoImportSuggestions,
+    },
+    preferences: {
+        includeCompletionsForModuleExports: true,
+        includeInsertTextCompletions: true,
+    },
+});
\ No newline at end of file