diff --git a/packages/vue-language-server/src/projects.ts b/packages/vue-language-server/src/projects.ts
index fccb18a583..a216353500 100644
--- a/packages/vue-language-server/src/projects.ts
+++ b/packages/vue-language-server/src/projects.ts
@@ -31,6 +31,23 @@ export function createProjects(
 		uri: string,
 		time: number,
 	} | undefined;
+	const fileExistsCache = shared.createPathMap<boolean>();
+	const directoryExistsCache = shared.createPathMap<boolean>();
+	const sys: ts.System = {
+		...ts.sys,
+		fileExists(path: string) {
+			if (!fileExistsCache.fsPathHas(path)) {
+				fileExistsCache.fsPathSet(path, ts.sys.fileExists(path));
+			}
+			return fileExistsCache.fsPathGet(path)!;
+		},
+		directoryExists(path: string) {
+			if (!directoryExistsCache.fsPathHas(path)) {
+				directoryExistsCache.fsPathSet(path, ts.sys.directoryExists(path));
+			}
+			return directoryExistsCache.fsPathGet(path)!;
+		},
+	};
 
 	const workspaces = new Map<string, ReturnType<typeof createWorkspace>>();
 
@@ -40,6 +57,7 @@ export function createProjects(
 			languageConfigs,
 			rootPath,
 			ts,
+			sys,
 			tsLocalized,
 			options,
 			documents,
@@ -77,6 +95,15 @@ export function createProjects(
 	});
 	connection.onDidChangeWatchedFiles(async handler => {
 
+		for (const change of handler.changes) {
+			if (change.type === vscode.FileChangeType.Created) {
+				fileExistsCache.uriSet(change.uri, true);
+			}
+			else if (change.type === vscode.FileChangeType.Deleted) {
+				fileExistsCache.uriSet(change.uri, false);
+			}
+		}
+
 		const tsConfigChanges: vscode.FileEvent[] = [];
 		const scriptChanges: vscode.FileEvent[] = [];
 
@@ -233,6 +260,7 @@ function createWorkspace(
 	languageConfigs: LanguageConfigs,
 	rootPath: string,
 	ts: typeof import('typescript/lib/tsserverlibrary'),
+	sys: ts.System,
 	tsLocalized: ts.MapLike<string> | undefined,
 	options: shared.ServerInitializationOptions,
 	documents: vscode.TextDocuments<TextDocument>,
@@ -241,12 +269,12 @@ function createWorkspace(
 	getInferredCompilerOptions: () => Promise<ts.CompilerOptions>,
 ) {
 
-	const rootTsConfigs = ts.sys.readDirectory(rootPath, rootTsConfigNames, undefined, ['**/*']);
+	const rootTsConfigs = sys.readDirectory(rootPath, rootTsConfigNames, undefined, ['**/*']);
 	const projects = shared.createPathMap<Project>();
 	let inferredProject: Project | undefined;
 
 	const getRootPath = () => rootPath;
-	const workspaceSys = ts.sys.getCurrentDirectory() === rootPath ? ts.sys : new Proxy(ts.sys, {
+	const workspaceSys = sys.getCurrentDirectory() === rootPath ? sys : new Proxy(sys, {
 		get(target, prop) {
 			const fn = target[prop as keyof typeof target];
 			if (typeof fn === 'function') {
@@ -380,13 +408,13 @@ function createWorkspace(
 					let tsConfigPath = projectReference.path;
 
 					// fix https://github.com/johnsoncodehk/volar/issues/712
-					if (!ts.sys.fileExists(tsConfigPath) && ts.sys.directoryExists(tsConfigPath)) {
+					if (!sys.fileExists(tsConfigPath) && sys.directoryExists(tsConfigPath)) {
 						const newTsConfigPath = path.join(tsConfigPath, 'tsconfig.json');
 						const newJsConfigPath = path.join(tsConfigPath, 'jsconfig.json');
-						if (ts.sys.fileExists(newTsConfigPath)) {
+						if (sys.fileExists(newTsConfigPath)) {
 							tsConfigPath = newTsConfigPath;
 						}
-						else if (ts.sys.fileExists(newJsConfigPath)) {
+						else if (sys.fileExists(newJsConfigPath)) {
 							tsConfigPath = newJsConfigPath;
 						}
 					}
diff --git a/packages/vue-language-service/src/languageService.ts b/packages/vue-language-service/src/languageService.ts
index b43bb88f55..4d66736c76 100644
--- a/packages/vue-language-service/src/languageService.ts
+++ b/packages/vue-language-service/src/languageService.ts
@@ -270,9 +270,6 @@ export function createLanguageService(
 				const failedLookupLocations: string[] = (resolveResult as any).failedLookupLocations;
 				const dirs = new Set<string>();
 
-				const fileExists = vueLsHost.fileExists ?? ts.sys.fileExists;
-				const directoryExists = vueLsHost.directoryExists ?? ts.sys.directoryExists;
-
 				for (const failed of failedLookupLocations) {
 					let path = failed;
 					const fileName = upath.basename(path);
@@ -285,12 +282,12 @@ export function createLanguageService(
 					else {
 						continue;
 					}
-					if (fileExists(path)) {
+					if (vueLsHost.fileExists(path)) {
 						return isUri ? shared.fsPathToUri(path) : path;
 					}
 				}
 				for (const dir of dirs) {
-					if (directoryExists(dir)) {
+					if (vueLsHost.directoryExists?.(dir) ?? true) {
 						return isUri ? shared.fsPathToUri(dir) : dir;
 					}
 				}