diff --git a/frontend/components/editor/index.tsx b/frontend/components/editor/index.tsx
index f5750ee..ba10bc8 100644
--- a/frontend/components/editor/index.tsx
+++ b/frontend/components/editor/index.tsx
@@ -35,6 +35,8 @@ import { PreviewProvider, usePreview } from "@/context/PreviewContext"
 import { useSocket } from "@/context/SocketContext"
 import { Button } from "../ui/button"
 import React from "react"
+import { parseTSConfigToMonacoOptions } from "@/lib/tsconfig"
+import { deepMerge } from "@/lib/utils"
 
 export default function CodeEditor({
   userData,
@@ -154,9 +156,78 @@ export default function CodeEditor({
   }
 
   // Post-mount editor keybindings and actions
-  const handleEditorMount: OnMount = (editor, monaco) => {
+  const handleEditorMount: OnMount = async (editor, monaco) => {
     setEditorRef(editor)
     monacoRef.current = monaco
+    /**
+     * Sync all the models to the worker eagerly.
+     * This enables intelliSense for all files without needing an `addExtraLib` call.
+     */
+    monaco.languages.typescript.typescriptDefaults.setEagerModelSync(true)
+    monaco.languages.typescript.javascriptDefaults.setEagerModelSync(true)
+
+    monaco.languages.typescript.typescriptDefaults.setCompilerOptions(
+      defaultCompilerOptions
+    )
+    monaco.languages.typescript.javascriptDefaults.setCompilerOptions(
+      defaultCompilerOptions
+    )
+    const fetchFileContent = (fileId: string): Promise<string> => {
+      return new Promise((resolve) => {
+        socket?.emit("getFile", fileId, (content: string) => {
+          resolve(content)
+        })
+      })
+    }
+    const loadTSConfig = async (files: (TFolder | TFile)[]) => {
+      const tsconfigFiles = files.filter((file) =>
+        file.name.endsWith("tsconfig.json")
+      )
+      let mergedConfig: any = { compilerOptions: {} }
+
+      for (const file of tsconfigFiles) {
+        const containerId = file.id.split("/").slice(0, 2).join("/")
+        const content = await fetchFileContent(file.id)
+
+        try {
+          let tsConfig = JSON.parse(content)
+
+          // Handle references
+          if (tsConfig.references) {
+            for (const ref of tsConfig.references) {
+              const path = ref.path.replace("./", "")
+              const fileId = `${containerId}/${path}`
+              const refContent = await fetchFileContent(fileId)
+              const referenceTsConfig = JSON.parse(refContent)
+
+              // Merge configurations
+              mergedConfig = deepMerge(mergedConfig, referenceTsConfig)
+            }
+          }
+
+          // Merge current file's config
+          mergedConfig = deepMerge(mergedConfig, tsConfig)
+        } catch (error) {
+          console.error("Error parsing TSConfig:", error)
+        }
+      }
+      // Apply merged compiler options
+      if (mergedConfig.compilerOptions) {
+        const updatedOptions = parseTSConfigToMonacoOptions({
+          ...defaultCompilerOptions,
+          ...mergedConfig.compilerOptions,
+        })
+        monaco.languages.typescript.typescriptDefaults.setCompilerOptions(
+          updatedOptions
+        )
+        monaco.languages.typescript.javascriptDefaults.setCompilerOptions(
+          updatedOptions
+        )
+      }
+    }
+
+    // Call the function with your file structure
+    await loadTSConfig(files)
 
     editor.onDidChangeCursorPosition((e) => {
       setIsSelected(false)
@@ -784,11 +855,11 @@ export default function CodeEditor({
                     const afterLineNumber = isAbove ? line - 1 : line
                     id = changeAccessor.addZone({
                       afterLineNumber,
-                      heightInLines: isAbove?11: 12,
+                      heightInLines: isAbove ? 11 : 12,
                       domNode: generateRef.current,
                     })
-                    const contentWidget= generate.widget
-                    if (contentWidget){
+                    const contentWidget = generate.widget
+                    if (contentWidget) {
                       editorRef?.layoutContentWidget(contentWidget)
                     }
                   } else {
@@ -984,3 +1055,18 @@ export default function CodeEditor({
     </>
   )
 }
+
+/**
+ * Configure the typescript compiler to detect JSX and load type definitions
+ */
+const defaultCompilerOptions: monaco.languages.typescript.CompilerOptions = {
+  allowJs: true,
+  allowSyntheticDefaultImports: true,
+  allowNonTsExtensions: true,
+  resolveJsonModule: true,
+
+  jsx: monaco.languages.typescript.JsxEmit.ReactJSX,
+  module: monaco.languages.typescript.ModuleKind.ESNext,
+  moduleResolution: monaco.languages.typescript.ModuleResolutionKind.NodeJs,
+  target: monaco.languages.typescript.ScriptTarget.ESNext,
+}
diff --git a/frontend/lib/tsconfig.ts b/frontend/lib/tsconfig.ts
new file mode 100644
index 0000000..12744d5
--- /dev/null
+++ b/frontend/lib/tsconfig.ts
@@ -0,0 +1,99 @@
+import * as monaco from "monaco-editor"
+
+export function parseTSConfigToMonacoOptions(
+  tsconfig: any
+): monaco.languages.typescript.CompilerOptions {
+  const compilerOptions: monaco.languages.typescript.CompilerOptions = {}
+
+  // Map tsconfig options to Monaco CompilerOptions
+  if (tsconfig.strict) compilerOptions.strict = tsconfig.strict
+  if (tsconfig.target) compilerOptions.target = mapScriptTarget(tsconfig.target)
+  if (tsconfig.module) compilerOptions.module = mapModule(tsconfig.module)
+  if (tsconfig.lib) compilerOptions.lib = tsconfig.lib
+  if (tsconfig.allowJs) compilerOptions.allowJs = tsconfig.allowJs
+  if (tsconfig.checkJs) compilerOptions.checkJs = tsconfig.checkJs
+  if (tsconfig.jsx) compilerOptions.jsx = mapJSX(tsconfig.jsx)
+  if (tsconfig.declaration) compilerOptions.declaration = tsconfig.declaration
+  if (tsconfig.declarationMap)
+    compilerOptions.declarationMap = tsconfig.declarationMap
+  if (tsconfig.sourceMap) compilerOptions.sourceMap = tsconfig.sourceMap
+  if (tsconfig.outFile) compilerOptions.outFile = tsconfig.outFile
+  if (tsconfig.outDir) compilerOptions.outDir = tsconfig.outDir
+  if (tsconfig.removeComments)
+    compilerOptions.removeComments = tsconfig.removeComments
+  if (tsconfig.noEmit) compilerOptions.noEmit = tsconfig.noEmit
+  if (tsconfig.noEmitOnError)
+    compilerOptions.noEmitOnError = tsconfig.noEmitOnError
+
+  return compilerOptions
+}
+
+function mapScriptTarget(
+  target: string
+): monaco.languages.typescript.ScriptTarget {
+  const targetMap: { [key: string]: monaco.languages.typescript.ScriptTarget } =
+    {
+      es3: monaco.languages.typescript.ScriptTarget.ES3,
+      es5: monaco.languages.typescript.ScriptTarget.ES5,
+      es6: monaco.languages.typescript.ScriptTarget.ES2015,
+      es2015: monaco.languages.typescript.ScriptTarget.ES2015,
+      es2016: monaco.languages.typescript.ScriptTarget.ES2016,
+      es2017: monaco.languages.typescript.ScriptTarget.ES2017,
+      es2018: monaco.languages.typescript.ScriptTarget.ES2018,
+      es2019: monaco.languages.typescript.ScriptTarget.ES2019,
+      es2020: monaco.languages.typescript.ScriptTarget.ES2020,
+      esnext: monaco.languages.typescript.ScriptTarget.ESNext,
+    }
+  if (typeof target !== "string") {
+    return monaco.languages.typescript.ScriptTarget.Latest
+  }
+  return (
+    targetMap[target?.toLowerCase()] ||
+    monaco.languages.typescript.ScriptTarget.Latest
+  )
+}
+
+function mapModule(module: string): monaco.languages.typescript.ModuleKind {
+  const moduleMap: { [key: string]: monaco.languages.typescript.ModuleKind } = {
+    none: monaco.languages.typescript.ModuleKind.None,
+    commonjs: monaco.languages.typescript.ModuleKind.CommonJS,
+    amd: monaco.languages.typescript.ModuleKind.AMD,
+    umd: monaco.languages.typescript.ModuleKind.UMD,
+    system: monaco.languages.typescript.ModuleKind.System,
+    es6: monaco.languages.typescript.ModuleKind.ES2015,
+    es2015: monaco.languages.typescript.ModuleKind.ES2015,
+    esnext: monaco.languages.typescript.ModuleKind.ESNext,
+  }
+  if (typeof module !== "string") {
+    return monaco.languages.typescript.ModuleKind.ESNext
+  }
+  return (
+    moduleMap[module.toLowerCase()] ||
+    monaco.languages.typescript.ModuleKind.ESNext
+  )
+}
+
+function mapJSX(jsx: string): monaco.languages.typescript.JsxEmit {
+  const jsxMap: { [key: string]: monaco.languages.typescript.JsxEmit } = {
+    preserve: monaco.languages.typescript.JsxEmit.Preserve,
+    react: monaco.languages.typescript.JsxEmit.React,
+    "react-native": monaco.languages.typescript.JsxEmit.ReactNative,
+  }
+  return jsxMap[jsx.toLowerCase()] || monaco.languages.typescript.JsxEmit.React
+}
+
+// Example usage:
+const tsconfigJSON = {
+  compilerOptions: {
+    strict: true,
+    target: "ES2020",
+    module: "ESNext",
+    lib: ["DOM", "ES2020"],
+    jsx: "react",
+    sourceMap: true,
+    outDir: "./dist",
+  },
+}
+
+const monacoOptions = parseTSConfigToMonacoOptions(tsconfigJSON.compilerOptions)
+console.log(monacoOptions)
diff --git a/frontend/lib/utils.ts b/frontend/lib/utils.ts
index 63b3764..8fd506f 100644
--- a/frontend/lib/utils.ts
+++ b/frontend/lib/utils.ts
@@ -75,3 +75,26 @@ export function debounce<T extends (...args: any[]) => void>(
     timeout = setTimeout(() => func(...args), wait)
   } as T
 }
+
+// Deep merge utility function
+export const deepMerge = (target: any, source: any) => {
+  const output = { ...target }
+  if (isObject(target) && isObject(source)) {
+    Object.keys(source).forEach((key) => {
+      if (isObject(source[key])) {
+        if (!(key in target)) {
+          Object.assign(output, { [key]: source[key] })
+        } else {
+          output[key] = deepMerge(target[key], source[key])
+        }
+      } else {
+        Object.assign(output, { [key]: source[key] })
+      }
+    })
+  }
+  return output
+}
+
+const isObject = (item: any) => {
+  return item && typeof item === "object" && !Array.isArray(item)
+}