diff --git a/Readme.md b/Readme.md
index 8594133..8abf432 100644
--- a/Readme.md
+++ b/Readme.md
@@ -17,6 +17,20 @@ In your vim/neovim, run command:
 :CocInstall coc-tsserver
 ```
 
+For yarn2 user what to use local typescript module:
+
+- Add PnPify to your dependencies:
+
+  ```
+  yarn add @yarnpkg/pnpify
+  ```
+
+- Run the following command, which will generate a new directory called .vscode/pnpify
+
+  ```
+  yarn pnpify --sdk
+  ```
+
 ### intructions for nvm users
 
 Disable [nvm](https://github.com/creationix/nvm) with the following command:
diff --git a/src/server/utils/versionProvider.ts b/src/server/utils/versionProvider.ts
index c6b2a9f..0bff15a 100644
--- a/src/server/utils/versionProvider.ts
+++ b/src/server/utils/versionProvider.ts
@@ -80,6 +80,8 @@ export class TypeScriptVersion {
   }
 }
 
+const MODULE_FOLDERS = ['node_modules/typescript/lib', '.vscode/pnpify/typescript/lib']
+
 export class TypeScriptVersionProvider {
 
   public constructor(private configuration: TypeScriptServiceConfiguration) { }
@@ -106,10 +108,12 @@ export class TypeScriptVersionProvider {
   public getLocalVersion(): TypeScriptVersion | undefined {
     let folders = workspace.workspaceFolders.map(f => Uri.parse(f.uri).fsPath)
     for (let p of folders) {
-      if (fs.existsSync(path.join(p, 'node_modules/typescript/lib'))) {
-        let lib = path.join(p, 'node_modules/typescript/lib')
-        let version = new TypeScriptVersion(lib)
-        if (version.isValid) return version
+      for (let folder of MODULE_FOLDERS) {
+        let libFolder = path.join(p, folder)
+        if (fs.existsSync(libFolder)) {
+          let version = new TypeScriptVersion(libFolder)
+          if (version.isValid) return version
+        }
       }
     }
     return null