diff --git a/src/lib/components/Widget/CodeEditor/MonacoEditor.svelte b/src/lib/components/Widget/CodeEditor/MonacoEditor.svelte
index 2ffdcb7..565afb9 100644
--- a/src/lib/components/Widget/CodeEditor/MonacoEditor.svelte
+++ b/src/lib/components/Widget/CodeEditor/MonacoEditor.svelte
@@ -2,6 +2,7 @@
   import { onMount, onDestroy } from 'svelte';
   import type { TabInstance } from '$lib/components/Tabs/types';
   import { useProject } from '$lib/client/project';
+  import { loadMonacoProject, pathToUri } from '$lib/components/Widget/CodeEditor/project-loader';
 
   interface Props {
     tab: TabInstance;
@@ -20,8 +21,39 @@
 
     const file = await fs.getFile(tab.metadata.path);
 
+    monaco.typescript.typescriptDefaults.setCompilerOptions({
+      module: monaco.typescript.ModuleKind.ESNext,
+      moduleResolution: monaco.typescript.ModuleResolutionKind.NodeJs,
+      baseUrl: 'file:///',
+      paths: {
+        '*': ['*'],
+      },
+      allowNonTsExtensions: true,
+      noEmit: true,
+      target: monaco.typescript.ScriptTarget.ESNext,
+      allowImportingTsExtensions: true,
+    });
+
+    monaco.typescript.typescriptDefaults.setEagerModelSync(true);
+    monaco.typescript.typescriptDefaults.setDiagnosticsOptions({
+      noSemanticValidation: false,
+      noSyntaxValidation: false,
+      diagnosticCodesToIgnore: [2307], // Todo: Delete when lib types import work
+    });
+
+    const rootDir = await fs.getDirectory();
+    await loadMonacoProject(monaco, rootDir);
+
+    const uri = pathToUri(monaco, tab.metadata.path);
+
+    let model = monaco.editor.getModel(uri);
+    if (!model) {
+      const content = (await file.read()) ?? '';
+      model = monaco.editor.createModel(content, 'typescript', uri);
+    }
+
     editor = monaco.editor.create(container, {
-      value: (await file.read()) || '',
+      model,
       language: 'typescript',
       theme: 'vs-dark',
       readOnly: false,
diff --git a/src/lib/components/Widget/CodeEditor/project-loader.ts b/src/lib/components/Widget/CodeEditor/project-loader.ts
new file mode 100644
index 0000000..9526475
--- /dev/null
+++ b/src/lib/components/Widget/CodeEditor/project-loader.ts
@@ -0,0 +1,50 @@
+import type Monaco from 'monaco-editor';
+
+import { type SfsDirectory } from '$lib/client/sync-file-system';
+import type { DirectoryContent } from '$lib/server/file-system/project-directory';
+
+export function pathToUri(monaco: typeof Monaco, path: string) {
+  const clean = normalizePath(path);
+  return monaco.Uri.parse(`file:///${clean}`);
+}
+
+export function normalizePath(path: string) {
+  return path.replace(/\\/g, '/').replace(/\/+/g, '/').replace(/^\/+/, '');
+}
+
+function joinPath(base: string, name: string) {
+  return normalizePath(base ? `${base}/${name}` : name);
+}
+
+export async function loadMonacoProject(monaco: typeof Monaco, fsRoot: SfsDirectory) {
+  const rootContent = await fsRoot.readdir(true);
+
+  async function loadDirectory(dir: SfsDirectory, content: DirectoryContent, basePath: string) {
+    for (const fileName of content.files) {
+      const fullPath = joinPath(basePath, fileName);
+      if (!/\.(ts|js)$/.test(fileName)) continue;
+
+      const file = await dir.getFile(fileName);
+      const text = (await file.read()) ?? '';
+
+      const uri = pathToUri(monaco, fullPath);
+
+      let model = monaco.editor.getModel(uri);
+
+      if (!model) {
+        model = monaco.editor.createModel(text, 'typescript', uri);
+      } else {
+        model.setValue(text);
+      }
+    }
+
+    for (const [dirName, subContent] of Object.entries(content.directories)) {
+      if (!subContent) continue;
+
+      const subDir = await dir.getDirectory(dirName);
+      await loadDirectory(subDir, subContent, joinPath(basePath, dirName));
+    }
+  }
+
+  await loadDirectory(fsRoot, rootContent, '');
+}