diff --git a/lsp-multi-server-sample/.gitignore b/lsp-multi-server-sample/.gitignore
new file mode 100644
index 00000000..4228f913
--- /dev/null
+++ b/lsp-multi-server-sample/.gitignore
@@ -0,0 +1,3 @@
+out
+node_modules
+client/server
\ No newline at end of file
diff --git a/lsp-multi-server-sample/.vscode/launch.json b/lsp-multi-server-sample/.vscode/launch.json
new file mode 100644
index 00000000..8658dad9
--- /dev/null
+++ b/lsp-multi-server-sample/.vscode/launch.json
@@ -0,0 +1,26 @@
+{
+	"version": "0.2.0",
+	// List of configurations. Add new configurations or edit existing ones.
+	"configurations": [
+		{
+			"name": "Launch Client",
+			"type": "extensionHost",
+			"request": "launch",
+			"runtimeExecutable": "${execPath}",
+			"args": ["--extensionDevelopmentPath=${workspaceRoot}/client" ],
+			"stopOnEntry": false,
+			"sourceMaps": true,
+			"outFiles": [ "${workspaceRoot}/client/out/src/**/*.js" ],
+			"preLaunchTask": "Client Watch"
+		},
+		{
+			"name": "Attach to Server",
+			"type": "node",
+			"request": "attach",
+			"port": 6010,
+			"sourceMaps": true,
+			"outFiles": [ "${workspaceRoot}/client/server/**/*.js" ],
+			"preLaunchTask": "Server Watch"
+		}
+	]
+}
diff --git a/lsp-multi-server-sample/.vscode/settings.json b/lsp-multi-server-sample/.vscode/settings.json
new file mode 100644
index 00000000..ed5b51ff
--- /dev/null
+++ b/lsp-multi-server-sample/.vscode/settings.json
@@ -0,0 +1,9 @@
+{
+	"files.exclude": {
+		"out": false // set this to true to hide the "out" folder with the compiled JS files
+	},
+	"search.exclude": {
+		"out": true // set this to false to include "out" folder in search results
+	},
+	"typescript.tsdk": "./node_modules/typescript/lib"
+}
\ No newline at end of file
diff --git a/lsp-multi-server-sample/.vscode/tasks.json b/lsp-multi-server-sample/.vscode/tasks.json
new file mode 100644
index 00000000..c3bccf46
--- /dev/null
+++ b/lsp-multi-server-sample/.vscode/tasks.json
@@ -0,0 +1,80 @@
+{
+	"version": "2.0.0",
+	"tasks": [
+		{
+			"taskName": "Compile",
+			"dependsOn": [
+				"Client Compile",
+				"Server Compile"
+			],
+			"problemMatcher": []
+		},
+		{
+			"taskName": "Client Compile",
+			"type": "shell",
+			"command": "npm run client-compile",
+			"group": "build",
+			"presentation": {
+				"panel": "dedicated",
+				"reveal": "never"
+
+			},
+			"problemMatcher": [
+				"$tsc"
+			]
+		},
+		{
+			"taskName": "Server Compile",
+			"type": "shell",
+			"command": "npm run server-compile",
+			"group": "build",
+			"presentation": {
+				"panel": "dedicated",
+				"reveal": "never"
+			},
+			"problemMatcher": [
+				"$tsc"
+			]
+		},
+		{
+			"taskName": "Watch",
+			"dependsOn": [
+				"Client Watch",
+				"Server Watch"
+			],
+			"group": {
+				"kind": "build",
+				"isDefault": true
+			},
+			"problemMatcher": []
+		},
+		{
+			"taskName": "Client Watch",
+			"type": "shell",
+			"command": "npm run client-watch",
+			"isBackground": true,
+			"group": "build",
+			"presentation": {
+				"panel": "dedicated",
+				"reveal": "never"
+			},
+			"problemMatcher": [
+				"$tsc-watch"
+			]
+		},
+		{
+			"taskName": "Server Watch",
+			"type": "shell",
+			"command": "npm run server-watch",
+			"isBackground": true,
+			"group": "build",
+			"presentation": {
+				"panel": "dedicated",
+				"reveal": "never"
+			},
+			"problemMatcher": [
+				"$tsc-watch"
+			]
+		}
+	]
+}
\ No newline at end of file
diff --git a/lsp-multi-server-sample/License.txt b/lsp-multi-server-sample/License.txt
new file mode 100644
index 00000000..dcdd1210
--- /dev/null
+++ b/lsp-multi-server-sample/License.txt
@@ -0,0 +1,17 @@
+Copyright (c) Microsoft Corporation
+
+All rights reserved.
+ 
+MIT License
+
+Permission is hereby granted, free of charge, to any person obtaining a copy of this software and associated documentation files 
+(the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, 
+publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do 
+so, subject to the following conditions:
+
+The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software.
+
+THE SOFTWARE IS PROVIDED *AS IS*, WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF 
+MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE 
+FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION 
+WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
diff --git a/lsp-multi-server-sample/README.md b/lsp-multi-server-sample/README.md
new file mode 100644
index 00000000..1ff16c23
--- /dev/null
+++ b/lsp-multi-server-sample/README.md
@@ -0,0 +1,16 @@
+# LSP Multi Server Example
+
+A language server example that demonstrates how to start a server per workspace folder. If the workspace has nested workspace folders only a server for the outer most workspace folder is started assuming that the language service handles nested code.
+
+The example uses proposed Language Server protocol. So the code demoed here might change when the final version of the configuration and workspace folder protocol is released.
+
+## Compile and Run
+
+- run `npm install` in this folder. This installs all necessary npm modules in both the client and server folder
+- open VS Code on this folder.
+- Press Ctrl+Shift+B to compile the client and server
+- Switch to the Debug viewlet
+- Select `Launch Client` from the drop down
+- Run the lauch config
+- If you want to debug the server as well use the launch configuration `Attach to Server`
+
diff --git a/lsp-multi-server-sample/client/.vscodeignore b/lsp-multi-server-sample/client/.vscodeignore
new file mode 100644
index 00000000..9ca85fe6
--- /dev/null
+++ b/lsp-multi-server-sample/client/.vscodeignore
@@ -0,0 +1,7 @@
+.vscode/**
+typings/**
+**/*.ts
+**/*.map
+.gitignore
+tsconfig.json
+vsc-extension-quickstart.md
diff --git a/multi-lsp-sample/client/extension.ts b/lsp-multi-server-sample/client/extension.ts
similarity index 76%
rename from multi-lsp-sample/client/extension.ts
rename to lsp-multi-server-sample/client/extension.ts
index 55806828..4a285d2d 100644
--- a/multi-lsp-sample/client/extension.ts
+++ b/lsp-multi-server-sample/client/extension.ts
@@ -1,6 +1,6 @@
 import * as path from 'path';
 import { 
-	workspace as Workspace, window as Window, ExtensionContext, TextDocument, OutputChannel
+	workspace as Workspace, window as Window, ExtensionContext, TextDocument, OutputChannel, WorkspaceFolder
 } from 'vscode'; 
 
 import { 
@@ -10,11 +10,19 @@ import {
 let defaultClient: LanguageClient;
 let clients: Map<string, LanguageClient> = new Map();
 
+function getOuterMostWorkspaceFolder(folder: WorkspaceFolder): WorkspaceFolder {
+	let result = folder;
+	let candidate: WorkspaceFolder;
+	while((candidate = Workspace.getWorkspaceFolder(folder.uri)) !== void 0) {
+		result = candidate;
+	}
+	return result;
+}
+
 export function activate(_context: ExtensionContext) {
 
-
 	let module = path.join(__dirname, '..', 'server', 'server.js');
-	let outputChannel: OutputChannel = Window.createOutputChannel('Multi-LSP-Example');
+	let outputChannel: OutputChannel = Window.createOutputChannel('lsp-multi-server-example');
 	
 	function didOpenTextDocument(document: TextDocument): void {
 		// We are only interested in language mode text
@@ -34,13 +42,10 @@ export function activate(_context: ExtensionContext) {
 				documentSelector: [
 					{ scheme: 'untitled', language: 'plaintext' }
 				],
-				synchronize: {
-					configurationSection: 'multi-lsp'
-				},
 				diagnosticCollectionName: 'multi-lsp',
 				outputChannel: outputChannel
 			}
-			defaultClient = new LanguageClient('multi-lsp', 'Multi-LSP', serverOptions, clientOptions);
+			defaultClient = new LanguageClient('lsp-multi-server-example', 'LSP Multi Server Example', serverOptions, clientOptions);
 			defaultClient.registerFeatures(ProposedProtocol(defaultClient));
 			defaultClient.start();
 			return;
@@ -51,6 +56,9 @@ export function activate(_context: ExtensionContext) {
 		if (!folder) {
 			return;
 		}
+		// If we have nested workspace folders we only start a server on the outer most workspace folder.
+		folder = getOuterMostWorkspaceFolder(folder);
+		
 		if (!clients.has(folder.uri.toString())) {
 			let debugOptions = { execArgv: ["--nolazy", `--inspect=${6011 + clients.size}`] };
 			let serverOptions = {
@@ -61,18 +69,14 @@ export function activate(_context: ExtensionContext) {
 				documentSelector: [
 					{ scheme: 'file', language: 'plaintext', pattern: `${folder.uri.fsPath}/**/*` }
 				],
-				synchronize: {
-					configurationSection: 'multi-lsp'
-				},
-				diagnosticCollectionName: 'multi-lsp',
+				diagnosticCollectionName: 'lsp-multi-server-example',
 				workspaceFolder: folder,
 				outputChannel: outputChannel
 			}
-			let client = new LanguageClient('multi-lsp', 'Multi-LSP', serverOptions, clientOptions);
+			let client = new LanguageClient('lsp-multi-server-example', 'LSP Multi Server Example', serverOptions, clientOptions);
 			client.registerFeatures(ProposedProtocol(client));
 			client.start();
 			clients.set(folder.uri.toString(), client);
-
 		}
 	}
 
diff --git a/multi-lsp-sample/client/package.json b/lsp-multi-server-sample/client/package.json
similarity index 60%
rename from multi-lsp-sample/client/package.json
rename to lsp-multi-server-sample/client/package.json
index e2f9d897..d09ebe3a 100644
--- a/multi-lsp-sample/client/package.json
+++ b/lsp-multi-server-sample/client/package.json
@@ -1,6 +1,6 @@
 {
-	"name": "multi-lsp",
-	"description": "Example showing multiple LSP servers running",
+	"name": "lsp-multi-server-example-client-part",
+	"description": "A language server example demoing servers per workspace folder",
 	"version": "0.0.1",
 	"publisher": "vscode",
 	"engines": {
@@ -14,13 +14,13 @@
 			"type": "object",
 			"title": "Multi LSP configuration",
 			"properties": {
-				"multi-lsp.enable": {
+				"lsp-multi-server-example.enable": {
 					"scope": "resource",
 					"type": "boolean",
 					"default": true,
 					"description": "Controls the enablement."
 				},
-				"multi-lsp.options": {
+				"lsp-multi-server-example.options": {
 					"scope": "resource",
 					"type": "object",
 					"default": {},
@@ -31,16 +31,14 @@
 	},
 	"main": "./out/extension",
 	"scripts": {
-		"vscode:prepublish": "node ./node_modules/vscode/bin/compile",
-		"watch": "tsc -watch -p ./",
-		"update-vscode": "node ./node_modules/vscode/bin/install"
-	},
-	"devDependencies": {
-		"vscode": "^1.1.5",
-		"typescript": "^2.4.2",
-		"@types/node": "^6.0.87"
+		"vscode:prepublish": "tsc -p ./",
+		"compile": "tsc -p ./",
+		"watch": "tsc -w -p ./",
+		"update-vscode": "node ./node_modules/vscode/bin/install",
+		"postinstall": "node ./node_modules/vscode/bin/install"
 	},
 	"dependencies": {
+		"vscode": "^1.1.5",
 		"vscode-languageclient": "next"
 	}
 }
\ No newline at end of file
diff --git a/lsp-multi-server-sample/client/tsconfig.json b/lsp-multi-server-sample/client/tsconfig.json
new file mode 100644
index 00000000..63d77358
--- /dev/null
+++ b/lsp-multi-server-sample/client/tsconfig.json
@@ -0,0 +1,17 @@
+{
+	"compilerOptions": {
+		"noUnusedLocals": true,
+		"noUnusedParameters": true,
+		"noImplicitAny": true,
+		"noImplicitReturns": true,		
+		"module": "commonjs",
+		"target": "es6",
+		"outDir": "out",
+		"lib": [ "es6"],
+		"sourceMap": true
+	},
+	"exclude": [
+		"node_modules",
+		"server"
+	]
+}
\ No newline at end of file
diff --git a/lsp-multi-server-sample/package.json b/lsp-multi-server-sample/package.json
new file mode 100644
index 00000000..11080a21
--- /dev/null
+++ b/lsp-multi-server-sample/package.json
@@ -0,0 +1,25 @@
+{
+	"name": "lsp-mulit-server-sample",
+	"description": "A language server example demoing servers per workspace folder",
+	"author": "Microsoft Corporation",
+	"license": "MIT",
+	"version": "0.0.1",
+	"publisher": "vscode",
+	"repository": {
+		"type": "git",
+		"url": "https://github.com/Microsoft/vscode-extension-samples"
+	},
+	"scripts": {
+		"postinstall": "cd server && npm install && cd ../client && npm install && cd ..",
+		"compile": "tsc -p client/tsconfig.json && cd server && npm run installServer && cd .. && tsc -p server/tsconfig.json",
+		"client-compile": "tsc -p client/tsconfig.json",
+		"client-watch": "tsc -w -p client/tsconfig.json",
+		"server-compile": "cd server && npm run installServer && cd .. && tsc -p server/tsconfig.json",
+		"server-watch": "cd server && npm run installServer && cd .. && tsc -w -p server/tsconfig.json"
+	},
+	"devDependencies": {
+		"@types/mocha": "^2.2.42",
+		"@types/node": "^6.0.88",
+		"typescript": "^2.5.2"
+	}
+}
\ No newline at end of file
diff --git a/lsp-multi-server-sample/server/package.json b/lsp-multi-server-sample/server/package.json
new file mode 100644
index 00000000..47b3c0dc
--- /dev/null
+++ b/lsp-multi-server-sample/server/package.json
@@ -0,0 +1,21 @@
+{
+	"name": "lsp-multi-server-example-server-part",
+	"description": "A language server example demoing servers per workspace folder",
+	"version": "0.0.1",
+	"license": "MIT",
+	"engines": {
+		"node": "*"
+	},
+	"repository": {
+		"type": "git",
+		"url": "https://github.com/Microsoft/vscode-extension-samples" 	  
+	},
+	"dependencies": {
+		"vscode-languageserver": "next"
+	},
+	"scripts": {
+		"installServer": "installServerIntoExtension ../client ./package.json ./tsconfig.json",
+		"compile": "installServerIntoExtension ../client ./package.json ./tsconfig.json && tsc -p .",
+		"watch": "installServerIntoExtension ../client ./package.json ./tsconfig.json && tsc -w -p ."
+	}
+}
\ No newline at end of file
diff --git a/multi-lsp-sample/server/src/server.ts b/lsp-multi-server-sample/server/src/server.ts
similarity index 100%
rename from multi-lsp-sample/server/src/server.ts
rename to lsp-multi-server-sample/server/src/server.ts
diff --git a/multi-lsp-sample/server/src/tsconfig.json b/lsp-multi-server-sample/server/src/tsconfig.json
similarity index 100%
rename from multi-lsp-sample/server/src/tsconfig.json
rename to lsp-multi-server-sample/server/src/tsconfig.json
diff --git a/lsp-multi-server-sample/server/tsconfig.json b/lsp-multi-server-sample/server/tsconfig.json
new file mode 100644
index 00000000..6032b82b
--- /dev/null
+++ b/lsp-multi-server-sample/server/tsconfig.json
@@ -0,0 +1,13 @@
+{
+	"compilerOptions": {
+		"target": "es6",
+		"module": "commonjs",
+		"moduleResolution": "node",
+		"sourceMap": true,
+		"lib" : [ "es2016" ],
+		"outDir": "../client/server"
+	},
+	"exclude": [
+		"node_modules"
+	]
+}
\ No newline at end of file
diff --git a/multi-lsp-sample/client/.vscode/launch.json b/multi-lsp-sample/client/.vscode/launch.json
deleted file mode 100644
index 82f0b92d..00000000
--- a/multi-lsp-sample/client/.vscode/launch.json
+++ /dev/null
@@ -1,17 +0,0 @@
-// A launch configuration that compiles the extension and then opens it inside a new window
-{
-	"version": "0.1.0",
-	"configurations": [
-		{
-			"name": "Launch Extension",
-			"type": "extensionHost",
-			"request": "launch",
-			"runtimeExecutable": "${execPath}",
-			"args": ["--extensionDevelopmentPath=${workspaceRoot}" ],
-			"stopOnEntry": false,
-			"sourceMaps": true,
-			"outFiles": ["${workspaceRoot}/out/**/*.js"],
-			"preLaunchTask": "npm: watch"
-		}
-	]
-}
\ No newline at end of file
diff --git a/multi-lsp-sample/client/.vscode/settings.json b/multi-lsp-sample/client/.vscode/settings.json
deleted file mode 100644
index 3734074a..00000000
--- a/multi-lsp-sample/client/.vscode/settings.json
+++ /dev/null
@@ -1,13 +0,0 @@
-// Place your settings in this file to overwrite default and user settings.
-{
-	"files.exclude": {
-		"out": false // set this to true to hide the "out" folder with the compiled JS files
-	},
-	"search.exclude": {
-		"out": true
-	},
-	"editor.insertSpaces": false,
-	"editor.tabSize": 4,
-	"typescript.tsdk": "./node_modules/typescript/lib", "testbed.trace.server": "verbose"
-	, "testbed.server.trace": "verbose"
-}
\ No newline at end of file
diff --git a/multi-lsp-sample/client/.vscode/tasks.json b/multi-lsp-sample/client/.vscode/tasks.json
deleted file mode 100644
index 8562f02a..00000000
--- a/multi-lsp-sample/client/.vscode/tasks.json
+++ /dev/null
@@ -1,17 +0,0 @@
-{
-	"version": "2.0.0",
-	"tasks": [
-		{
-			"type": "npm",
-			"script": "watch",
-			"isBackground": true,
-			"problemMatcher": [
-				"$tsc-watch"
-			],
-			"group": {
-				"kind": "build",
-				"isDefault": true
-			}
-		}
-	]
-}
\ No newline at end of file
diff --git a/multi-lsp-sample/server/.vscode/launch.json b/multi-lsp-sample/server/.vscode/launch.json
deleted file mode 100644
index 204d763d..00000000
--- a/multi-lsp-sample/server/.vscode/launch.json
+++ /dev/null
@@ -1,18 +0,0 @@
-{
-	"version": "0.1.0",
-	// List of configurations. Add new configurations or edit existing ones.
-	"configurations": [
-		{
-			"name": "Attach",
-			"type": "node",
-			"request": "attach",
-			// TCP/IP address. Default is "localhost".
-			"address": "localhost",
-			// Port to attach to.
-			"port": 6012,
-			"protocol": "inspector",
-			"sourceMaps": false,
-			"outDir": "${workspaceRoot}/../testbed/server"
-		}
-	]
-}
\ No newline at end of file
diff --git a/multi-lsp-sample/server/.vscode/settings.json b/multi-lsp-sample/server/.vscode/settings.json
deleted file mode 100644
index 76145fca..00000000
--- a/multi-lsp-sample/server/.vscode/settings.json
+++ /dev/null
@@ -1,8 +0,0 @@
-// Place your settings in this file to overwrite default and user settings.
-{
-	"javascript.validate.enable": false,
-	"files.trimTrailingWhitespace": true,
-	"editor.insertSpaces": false,
-	"editor.tabSize": 4,
-	"typescript.tsdk": "./node_modules/typescript/lib"
-}
\ No newline at end of file
diff --git a/multi-lsp-sample/server/.vscode/tasks.json b/multi-lsp-sample/server/.vscode/tasks.json
deleted file mode 100644
index 13f1bf14..00000000
--- a/multi-lsp-sample/server/.vscode/tasks.json
+++ /dev/null
@@ -1,17 +0,0 @@
-{
-	"version": "2.0.0",
-	"tasks": [
-		{
-			"type": "npm",
-			"script": "watch",
-			"isBackground": true,
-			"problemMatcher": [
-				"$tsc-watch"
-			],
-			"group": {
-				"kind": "build",
-				"isDefault": true
-			}
-		}
-	]
-}
\ No newline at end of file
diff --git a/multi-lsp-sample/server/package.json b/multi-lsp-sample/server/package.json
deleted file mode 100644
index 703ea029..00000000
--- a/multi-lsp-sample/server/package.json
+++ /dev/null
@@ -1,21 +0,0 @@
-{
-	"name": "multi-lsp-server",
-	"version": "0.1.0",
-	"description": "Multi server example",
-	"engines": {
-		"node": "*"
-	},
-	"private": true,
-	"main": "./lib/server.js",
-	"dependencies": {
-		"vscode-languageserver": "next"
-	},
-	"devDependencies": {
-		"typescript": "^2.4.2",
-		"@types/node": "^6.0.87"
-	},
-	"scripts": {
-		"compile": "installServerIntoExtension ../client ./package.json ./src/tsconfig.json && tsc -p ./src",
-		"watch": "installServerIntoExtension ../client ./package.json ./src/tsconfig.json && tsc --watch -p ./src"
-	}
-}
\ No newline at end of file