diff --git a/extensions/json-language-features/server/package.json b/extensions/json-language-features/server/package.json
index eed412e17d1f3..0b5e8c503adf2 100644
--- a/extensions/json-language-features/server/package.json
+++ b/extensions/json-language-features/server/package.json
@@ -14,7 +14,7 @@
   "dependencies": {
     "jsonc-parser": "^2.0.2",
     "request-light": "^0.2.4",
-    "vscode-json-languageservice": "^3.1.7",
+    "vscode-json-languageservice": "^3.2.0-next.2",
     "vscode-languageserver": "^5.1.0",
     "vscode-nls": "^4.0.0",
     "vscode-uri": "^1.0.6"
diff --git a/extensions/json-language-features/server/src/jsonServerMain.ts b/extensions/json-language-features/server/src/jsonServerMain.ts
index c152a7ac1370e..43e79596274ce 100644
--- a/extensions/json-language-features/server/src/jsonServerMain.ts
+++ b/extensions/json-language-features/server/src/jsonServerMain.ts
@@ -49,6 +49,55 @@ process.on('uncaughtException', (e: any) => {
 console.log = connection.console.log.bind(connection.console);
 console.error = connection.console.error.bind(connection.console);
 
+const workspaceContext = {
+	resolveRelativePath: (relativePath: string, resource: string) => {
+		return URL.resolve(resource, relativePath);
+	}
+};
+
+const schemaRequestService = (uri: string): Thenable<string> => {
+	if (startsWith(uri, 'file://')) {
+		const fsPath = URI.parse(uri).fsPath;
+		return new Promise<string>((c, e) => {
+			fs.readFile(fsPath, 'UTF-8', (err, result) => {
+				err ? e('') : c(result.toString());
+			});
+		});
+	} else if (startsWith(uri, 'vscode://')) {
+		return connection.sendRequest(VSCodeContentRequest.type, uri).then(responseText => {
+			return responseText;
+		}, error => {
+			return Promise.reject(error.message);
+		});
+	}
+	if (uri.indexOf('//schema.management.azure.com/') !== -1) {
+		/* __GDPR__
+			"json.schema" : {
+				"schemaURL" : { "classification": "SystemMetaData", "purpose": "FeatureInsight" }
+			}
+		 */
+		connection.telemetry.logEvent({
+			key: 'json.schema',
+			value: {
+				schemaURL: uri
+			}
+		});
+	}
+	const headers = { 'Accept-Encoding': 'gzip, deflate' };
+	return xhr({ url: uri, followRedirects: 5, headers }).then(response => {
+		return response.responseText;
+	}, (error: XHRResponse) => {
+		return Promise.reject(error.responseText || getErrorStatusDescription(error.status) || error.toString());
+	});
+};
+
+// create the JSON language service
+let languageService = getLanguageService({
+	schemaRequestService,
+	workspaceContext,
+	contributions: [],
+});
+
 // Create a simple text document manager. The text document manager
 // supports full document sync only
 const documents: TextDocuments = new TextDocuments();
@@ -65,6 +114,13 @@ let hierarchicalDocumentSymbolSupport = false;
 // in the passed params the rootPath of the workspace plus the client capabilities.
 connection.onInitialize((params: InitializeParams): InitializeResult => {
 
+	languageService = getLanguageService({
+		schemaRequestService,
+		workspaceContext,
+		contributions: [],
+		clientCapabilities: params.capabilities
+	});
+
 	function getClientCapability<T>(name: string, def: T) {
 		const keys = name.split('.');
 		let c: any = params.capabilities;
@@ -95,54 +151,7 @@ connection.onInitialize((params: InitializeParams): InitializeResult => {
 	return { capabilities };
 });
 
-const workspaceContext = {
-	resolveRelativePath: (relativePath: string, resource: string) => {
-		return URL.resolve(resource, relativePath);
-	}
-};
 
-const schemaRequestService = (uri: string): Thenable<string> => {
-	if (startsWith(uri, 'file://')) {
-		const fsPath = URI.parse(uri).fsPath;
-		return new Promise<string>((c, e) => {
-			fs.readFile(fsPath, 'UTF-8', (err, result) => {
-				err ? e('') : c(result.toString());
-			});
-		});
-	} else if (startsWith(uri, 'vscode://')) {
-		return connection.sendRequest(VSCodeContentRequest.type, uri).then(responseText => {
-			return responseText;
-		}, error => {
-			return Promise.reject(error.message);
-		});
-	}
-	if (uri.indexOf('//schema.management.azure.com/') !== -1) {
-		/* __GDPR__
-			"json.schema" : {
-				"schemaURL" : { "classification": "SystemMetaData", "purpose": "FeatureInsight" }
-			}
-		 */
-		connection.telemetry.logEvent({
-			key: 'json.schema',
-			value: {
-				schemaURL: uri
-			}
-		});
-	}
-	const headers = { 'Accept-Encoding': 'gzip, deflate' };
-	return xhr({ url: uri, followRedirects: 5, headers }).then(response => {
-		return response.responseText;
-	}, (error: XHRResponse) => {
-		return Promise.reject(error.responseText || getErrorStatusDescription(error.status) || error.toString());
-	});
-};
-
-// create the JSON language service
-const languageService = getLanguageService({
-	schemaRequestService,
-	workspaceContext,
-	contributions: []
-});
 
 // The settings interface describes the server relevant settings part
 interface Settings {
diff --git a/extensions/json-language-features/server/yarn.lock b/extensions/json-language-features/server/yarn.lock
index 5de4ddef09c88..003f8696207e0 100644
--- a/extensions/json-language-features/server/yarn.lock
+++ b/extensions/json-language-features/server/yarn.lock
@@ -62,9 +62,9 @@ request-light@^0.2.4:
     https-proxy-agent "^2.2.1"
     vscode-nls "^4.0.0"
 
-vscode-json-languageservice@^3.1.7:
-  version "3.1.7"
-  resolved "https://registry.yarnpkg.com/vscode-json-languageservice/-/vscode-json-languageservice-3.1.7.tgz#ace6ef40c340262b2a6fcd7f72be99c99751010c"
+vscode-json-languageservice@^3.2.0-next.2:
+  version "3.2.0-next.2"
+  resolved "https://registry.yarnpkg.com/vscode-json-languageservice/-/vscode-json-languageservice-3.2.0-next.2.tgz#4f70bc960855f3055af093b59859a4de4672381a"
   dependencies:
     jsonc-parser "^2.0.2"
     vscode-languageserver-types "^3.13.0"