diff --git a/src/compiler.js b/src/compiler.js
new file mode 100644
index 0000000..3b2e252
--- /dev/null
+++ b/src/compiler.js
@@ -0,0 +1,142 @@
+import * as fs from 'fs';
+import compareVersions from 'compare-versions';
+
+const fileCache = new Map();
+const tsFiles = new Set();
+
+let typescript = undefined;
+let compilerOptions = undefined;
+let entryFile = undefined;
+let languageService = undefined;
+
+
+function getFile(fileName) {
+    let file = fileCache.get(fileName);
+
+    if(file === undefined) {
+        const version = Date.now().toString();
+
+        if (!fs.existsSync(fileName)) {
+            file = {
+                snapshot: undefined,
+                version: version
+            };
+        }
+        else {
+            file = {
+                snapshot: typescript.ScriptSnapshot.fromString(fs.readFileSync(fileName).toString()),
+                version: version
+            };
+        }
+
+        fileCache.set(fileName, file);
+    }
+
+    return file;
+}
+
+function setFileContent(fileName, content, override) {
+    if(!override && fileCache.get(fileName)) {
+        return;
+    }
+
+    tsFiles.add(fileName);
+
+    fileCache.set(fileName, {
+        snapshot: typescript.ScriptSnapshot.fromString(content),
+        version: Date.now().toString()
+    });
+}
+
+function initLanguageService() {
+    if(languageService) return;
+
+    fixTypeLookup();
+
+    const languageServiceHost = {
+        getScriptFileNames: () => Array.from(tsFiles),
+        getScriptVersion: (fileName) => getFile(fileName).version,
+        getScriptSnapshot: (fileName) => getFile(fileName).snapshot,
+        getCurrentDirectory: () => process.cwd(),
+        getCompilationSettings: () => compilerOptions,
+        getDefaultLibFileName: (options) => typescript.getDefaultLibFilePath(options)
+    };
+
+    languageService = typescript.createLanguageService(languageServiceHost, typescript.createDocumentRegistry());
+}
+
+/**
+ * Workaround for the LanguageService not finding typings in node_modules/@types:
+ * Manually set the "types" option to the folder names in node_modules/@types
+ */
+function fixTypeLookup() {
+    if(compilerOptions.types || compilerOptions.typeRoots) return;
+
+    if ( compareVersions( typescript.version, '2.0.0' ) < 0 ) {
+        return;
+    }
+
+    if(fs.existsSync('./node_modules/@types')) {
+        compilerOptions.types = fs.readdirSync('./node_modules/@types');
+    }
+}
+
+
+function compileUsingLanguageService(fileName, content, refreshFile) {
+    setFileContent(fileName, content, refreshFile);
+
+    const result = {
+        outputText: undefined,
+        diagnostics: undefined,
+        sourceMapText: undefined
+    };
+
+    const compiled = languageService.getEmitOutput(fileName);
+
+    result.diagnostics = languageService.getCompilerOptionsDiagnostics()
+        .concat(languageService.getSyntacticDiagnostics(fileName))
+        .concat(languageService.getSemanticDiagnostics(fileName));
+
+    compiled.outputFiles.forEach(outputFile => {
+        if(outputFile.name.slice(-3) === '.js') {
+            result.outputText = outputFile.text;
+        }
+        else if(outputFile.name.slice(-4) === '.map') {
+            result.sourceMapText = outputFile.text;
+        }
+    });
+
+    return result;
+}
+
+function compileUsingSimpleApi(fileName, content) {
+    return typescript.transpileModule(content, {
+        fileName,
+        reportDiagnostics: true,
+        compilerOptions
+    });
+}
+
+function init(ts, compilerOpts, entry, useLanguageService) {
+    typescript = ts;
+    compilerOptions = compilerOpts;
+    entryFile = entry;
+
+    tsFiles.add(entryFile);
+
+    if(useLanguageService) {
+        initLanguageService();
+    }
+}
+
+function compileFile(fileName, content, refreshFile) {
+    return languageService
+        ? compileUsingLanguageService(fileName, content, refreshFile)
+        : compileUsingSimpleApi(fileName, content);
+}
+
+
+export default {
+    init,
+    compileFile
+};
diff --git a/src/index.js b/src/index.js
index 425b3c2..c078a9b 100644
--- a/src/index.js
+++ b/src/index.js
@@ -9,6 +9,7 @@ import { endsWith } from './string';
 import { getDefaultOptions, compilerOptionsFromTsConfig, adjustCompilerOptions } from './options.js';
 import fixExportClass from './fixExportClass';
 import resolveHost from './resolveHost';
+import compiler from './compiler';
 
 /*
 interface Options {
@@ -45,6 +46,9 @@ export default function typescript ( options ) {
 
 	delete options.tsconfig;
 
+	const useLanguageService = options.useLanguageService;
+	delete options.useLanguageService;
+
 	// Since the CompilerOptions aren't designed for the Rollup
 	// use case, we'll adjust them for use with Rollup.
 	adjustCompilerOptions( typescript, tsconfig );
@@ -68,7 +72,14 @@ export default function typescript ( options ) {
 
 	const compilerOptions = parsed.options;
 
+	let isFirstRun = true;
+
 	return {
+		options (opts) {
+			const entryFile = path.resolve(process.cwd(), opts.entry);
+            compiler.init(typescript, compilerOptions, entryFile, useLanguageService);
+		},
+
 		resolveId ( importee, importer ) {
 			// Handle the special `typescript-helpers` import itself.
 			if ( importee === helpersId ) {
@@ -108,11 +119,7 @@ export default function typescript ( options ) {
 		transform ( code, id ) {
 			if ( !filter( id ) ) return null;
 
-			const transformed = typescript.transpileModule( fixExportClass( code, id ), {
-				fileName: id,
-				reportDiagnostics: true,
-				compilerOptions
-			});
+			const transformed = compiler.compileFile(id, fixExportClass( code, id ), !isFirstRun);
 
 			// All errors except `Cannot compile modules into 'es6' when targeting 'ES5' or lower.`
 			const diagnostics = transformed.diagnostics ?
@@ -136,7 +143,7 @@ export default function typescript ( options ) {
 				}
 			});
 
-			if ( fatalError ) {
+			if ( fatalError && isFirstRun ) {
 				throw new Error( `There were TypeScript errors transpiling` );
 			}
 
@@ -148,6 +155,10 @@ export default function typescript ( options ) {
 				// Rollup expects `map` to be an object so we must parse the string
 				map: transformed.sourceMapText ? JSON.parse(transformed.sourceMapText) : null
 			};
+		},
+
+		onwrite() {
+			isFirstRun = false;
 		}
 	};
 }