@@ -37,6 +37,7 @@ use lsp_types::Url;
 use relay_compiler::config::Config;
 use relay_compiler::get_parser_features;
 use relay_compiler::FileCategorizer;
+use relay_compiler::FileGroup;
 use relay_compiler::ProjectName;
 use relay_docblock::parse_docblock_ast;
 use relay_docblock::ParseOptions;
@@ -56,7 +57,8 @@ use crate::lsp_runtime_error::LSPRuntimeResult;
 use crate::node_resolution_info::create_node_resolution_info;
 use crate::utils::extract_executable_definitions_from_text_document;
 use crate::utils::extract_feature_from_text;
-use crate::utils::extract_project_name_from_url;
+use crate::utils::get_file_group_from_uri;
+use crate::utils::get_project_name_from_file_group;
 use crate::ContentConsumerType;
 use crate::DocblockNode;
 use crate::Feature;
@@ -344,13 +346,6 @@ impl<TPerfLogger: PerfLogger + 'static, TSchemaDocumentation: SchemaDocumentatio
         uri: &Url,
         sources: Vec<JavaScriptSourceFeature>,
     ) -> LSPRuntimeResult<()> {
-        let project_name = self.extract_project_name_from_url(uri)?;
-
-        if let Entry::Vacant(e) = self.project_status.entry(project_name) {
-            e.insert(ProjectStatus::Activated);
-            self.notify_lsp_state_resources.notify_one();
-        }
-
         self.insert_synced_sources(uri, sources);
         self.schedule_task(Task::ValidateSyncedSource(uri.clone()));
 
@@ -362,6 +357,13 @@ impl<TPerfLogger: PerfLogger + 'static, TSchemaDocumentation: SchemaDocumentatio
         self.diagnostic_reporter
             .clear_quick_diagnostics_for_url(url);
     }
+
+    fn initialize_lsp_state_resources(&self, project_name: StringKey) {
+        if let Entry::Vacant(e) = self.project_status.entry(project_name) {
+            e.insert(ProjectStatus::Activated);
+            self.notify_lsp_state_resources.notify_one();
+        }
+    }
 }
 
 impl<TPerfLogger: PerfLogger + 'static, TSchemaDocumentation: SchemaDocumentation + 'static>
@@ -476,7 +478,10 @@ impl<TPerfLogger: PerfLogger + 'static, TSchemaDocumentation: SchemaDocumentatio
     }
 
     fn extract_project_name_from_url(&self, url: &Url) -> LSPRuntimeResult<StringKey> {
-        extract_project_name_from_url(&self.file_categorizer, url, &self.root_dir)
+        let (file_group, file_path) =
+            get_file_group_from_uri(&self.file_categorizer, url, &self.root_dir)?;
+
+        get_project_name_from_file_group(&file_group, &file_path)
     }
 
     fn get_extra_data_provider(&self) -> &dyn LSPExtraDataProvider {
@@ -521,12 +526,31 @@ impl<TPerfLogger: PerfLogger + 'static, TSchemaDocumentation: SchemaDocumentatio
             js_server.process_js_source(uri, text);
         }
 
-        // First we check to see if this document has any GraphQL documents.
-        let embedded_sources = extract_graphql::extract(text);
-        if embedded_sources.is_empty() {
-            Ok(())
-        } else {
-            self.process_synced_sources(uri, embedded_sources)
+        let (file_group, file_path) =
+            get_file_group_from_uri(&self.file_categorizer, uri, &self.root_dir)?;
+        let project_name = get_project_name_from_file_group(&file_group, &file_path)?;
+
+        match file_group {
+            FileGroup::Schema { project_set: _ } => {
+                self.initialize_lsp_state_resources(project_name);
+                Ok(())
+            }
+            FileGroup::Extension { project_set: _ } => {
+                self.initialize_lsp_state_resources(project_name);
+                Ok(())
+            }
+            FileGroup::Source { project_set: _ } => {
+                // First we check to see if this document has any GraphQL documents.
+                let embedded_sources = extract_graphql::extract(text);
+
+                if embedded_sources.is_empty() {
+                    Ok(())
+                } else {
+                    self.initialize_lsp_state_resources(project_name);
+                    self.process_synced_sources(uri, embedded_sources)
+                }
+            }
+            _ => Err(LSPRuntimeError::ExpectedError),
         }
     }
 
 
@@ -73,41 +73,51 @@ pub fn extract_executable_definitions_from_text_document(
     Ok(definitions)
 }
 
-pub fn extract_project_name_from_url(
+pub fn get_file_group_from_uri(
     file_categorizer: &FileCategorizer,
     url: &Url,
     root_dir: &PathBuf,
-) -> LSPRuntimeResult<StringKey> {
+) -> LSPRuntimeResult<(FileGroup, PathBuf)> {
     let absolute_file_path = url.to_file_path().map_err(|_| {
         LSPRuntimeError::UnexpectedError(format!("Unable to convert URL to file path: {:?}", url))
     })?;
-
     let file_path = absolute_file_path.strip_prefix(root_dir).map_err(|_e| {
         LSPRuntimeError::UnexpectedError(format!(
             "Failed to strip prefix {:?} from {:?}",
             root_dir, absolute_file_path
         ))
     })?;
 
-    let project_name = if let FileGroup::Source { project_set } =
-        file_categorizer.categorize(file_path).map_err(|_| {
-            LSPRuntimeError::UnexpectedError(format!(
-                "Unable to categorize the file correctly: {:?}",
-                file_path
-            ))
-        })? {
-        *project_set.first().ok_or_else(|| {
-            LSPRuntimeError::UnexpectedError(format!(
-                "Expected to find at least one project for {:?}",
-                file_path
-            ))
-        })?
-    } else {
-        return Err(LSPRuntimeError::UnexpectedError(format!(
+    let file_group = file_categorizer.categorize(file_path).map_err(|_| {
+        LSPRuntimeError::UnexpectedError(format!(
+            "Unable to categorize the file correctly: {:?}",
+            file_path
+        ))
+    })?;
+
+    Ok((file_group, file_path.to_path_buf()))
+}
+
+pub fn get_project_name_from_file_group(
+    file_group: &FileGroup,
+    file_path: &PathBuf,
+) -> LSPRuntimeResult<StringKey> {
+    let project_set = match file_group {
+        FileGroup::Source { project_set } => Ok(project_set),
+        FileGroup::Schema { project_set } => Ok(project_set),
+        FileGroup::Extension { project_set } => Ok(project_set),
+        _ => Err(LSPRuntimeError::UnexpectedError(format!(
             "File path {:?} is not a source set",
             file_path
-        )));
-    };
+        ))),
+    }?;
+    let project_name = *project_set.first().ok_or_else(|| {
+        LSPRuntimeError::UnexpectedError(format!(
+            "Expected to find at least one project for {:?}",
+            file_path
+        ))
+    })?;
+
     Ok(project_name.into())
 }