diff --git a/AutoRest/Modelers/Swagger.Tests/AutoRest.Modeler.Swagger.Tests.csproj b/AutoRest/Modelers/Swagger.Tests/AutoRest.Modeler.Swagger.Tests.csproj
index 2db5e127e7..db9c2bf5ac 100644
--- a/AutoRest/Modelers/Swagger.Tests/AutoRest.Modeler.Swagger.Tests.csproj
+++ b/AutoRest/Modelers/Swagger.Tests/AutoRest.Modeler.Swagger.Tests.csproj
@@ -36,6 +36,7 @@
       <DesignTime>True</DesignTime>
       <DependentUpon>Resources.resx</DependentUpon>
     </Compile>
+    <Compile Include="VendorExtensionInPath.cs" />
     <Compile Include="SwaggerSpecHelper.cs" />
     <Compile Include="SwaggerModelerTests.cs" />
     <None Include="app.config" />
@@ -90,6 +91,9 @@
     <None Include="Swagger\swagger-simple-spec.yaml">
       <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
     </None>
+    <None Include="Swagger\vendor-extension-in-path.json">
+      <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+    </None>
     <None Include="Swagger\swagger-x-ms-parameterized-host.json">
       <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
     </None>
@@ -155,7 +159,7 @@
   <Import Project="$(MSBuildToolsPath)\Microsoft.CSharp.targets" />
   <ProjectExtensions>
     <VisualStudio>
-      <UserProperties Swagger_4swagger-x-ms-code-generation-settings_1json__JSONSchema="..\..\..\..\schema\swagger-extensions.json" Swagger_4swagger-validation_1json__JSONSchema="http://json.schemastore.org/swagger-2.0" />
+      <UserProperties Swagger_4swagger-validation_1json__JSONSchema="http://json.schemastore.org/swagger-2.0" Swagger_4swagger-x-ms-code-generation-settings_1json__JSONSchema="..\..\..\..\schema\swagger-extensions.json" />
     </VisualStudio>
   </ProjectExtensions>
   <Target Name="EnsureNuGetPackageBuildImports" BeforeTargets="PrepareForBuild">
diff --git a/AutoRest/Modelers/Swagger.Tests/Swagger/vendor-extension-in-path.json b/AutoRest/Modelers/Swagger.Tests/Swagger/vendor-extension-in-path.json
new file mode 100644
index 0000000000..94e8a57479
--- /dev/null
+++ b/AutoRest/Modelers/Swagger.Tests/Swagger/vendor-extension-in-path.json
@@ -0,0 +1,47 @@
+{
+  "swagger": "2.0",
+  "info": {
+    "version": "2.0",
+    "title": "My web service",
+    "description": "No description provided.",
+    "x-endpoint-name": "default"
+  },
+  "host": "dsw12.net:999",
+  "basePath": "/sandbox/8c88389038102937482abf83f8f/services/5b737fefc19b3047ab4f3234cd34642df2",
+  "schemes": [
+    "https"
+  ],
+  "consumes": [
+    "application/json"
+  ],
+  "produces": [
+    "application/json"
+  ],
+  "paths": {
+    "/swagger.json": {
+      "get": {
+        "summary": "Get swagger API document for the web service",
+        "operationId": "getSwaggerDocument",
+        "parameters": [
+          {
+            "name": "api-version",
+            "in": "query",
+            "description": "API version",
+            "required": false,
+            "type": "string",
+            "default": "2.0",
+            "enum": [
+              "2.0"
+            ]
+          }
+        ],
+        "responses": {
+          "200": {
+            "description": "Swagger API document for this service"
+          }
+        }
+      }
+    },
+    "x-vendor-testy": "asd"
+  }
+}
\ No newline at end of file
diff --git a/AutoRest/Modelers/Swagger.Tests/VendorExtensionInPath.cs b/AutoRest/Modelers/Swagger.Tests/VendorExtensionInPath.cs
new file mode 100644
index 0000000000..22f880708f
--- /dev/null
+++ b/AutoRest/Modelers/Swagger.Tests/VendorExtensionInPath.cs
@@ -0,0 +1,30 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License. See License.txt in the project root for license information.
+
+using System.IO;
+using Microsoft.Rest.Generator;
+using Xunit;
+
+namespace Microsoft.Rest.Modeler.Swagger.Tests
+{
+    [Collection("AutoRest Tests")]
+    public class VendorExtensionInPath
+    {
+        [Fact]
+        public void AllowVendorExtensionInPath()
+        {
+            SwaggerModeler modeler = new SwaggerModeler(new Settings
+            {
+                Namespace = "Test",
+                Input = Path.Combine("Swagger", "vendor-extension-in-path.json")
+            });
+            var clientModel = modeler.Build();
+
+            // should return a valid model.
+            Assert.NotNull(clientModel);
+
+            // there should be one method in this generated api.
+            Assert.Equal(1, modeler.ServiceClient.Methods.Count);
+        }
+    }
+}
\ No newline at end of file
diff --git a/AutoRest/Modelers/Swagger/JsonConverters/PathItemRefConverter.cs b/AutoRest/Modelers/Swagger/JsonConverters/PathItemRefConverter.cs
index 8c105f58e9..483c85d307 100644
--- a/AutoRest/Modelers/Swagger/JsonConverters/PathItemRefConverter.cs
+++ b/AutoRest/Modelers/Swagger/JsonConverters/PathItemRefConverter.cs
@@ -25,6 +25,13 @@ public override bool CanConvert(System.Type objectType)
         public override object ReadJson(JsonReader reader, System.Type objectType, object existingValue,
             JsonSerializer serializer)
         {
+            // is the leaf an vendor extension? "x-*..."
+            if (reader == null || reader.Path.Substring(reader.Path.LastIndexOf(".", StringComparison.Ordinal) + 1).StartsWith("x-",StringComparison.CurrentCulture))
+            {
+                // skip x-* vendor extensions when used where the path would be.
+                return new Dictionary < string, Operation >();
+            }
+
             JObject jobject = JObject.Load(reader);
             if (jobject == null)
             {