diff --git a/package-lock.json b/package-lock.json
index fd99e95..3486876 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -5,6 +5,7 @@
 	"requires": true,
 	"packages": {
 		"": {
+			"name": "psalm-vscode-plugin",
 			"version": "2.6.0",
 			"license": "MIT",
 			"dependencies": {
diff --git a/src/LanguageServer.ts b/src/LanguageServer.ts
index e48a488..db5fc41 100644
--- a/src/LanguageServer.ts
+++ b/src/LanguageServer.ts
@@ -95,6 +95,22 @@ export class LanguageServer {
         this.languageClient.onTelemetry(this.onTelemetry.bind(this));
     }
 
+    /**
+     * This will NOT restart the server.
+     * @param workspacePath
+     */
+    public setWorkspacePath(workspacePath: string): void {
+        this.workspacePath = workspacePath;
+    }
+
+    /**
+     * This will NOT restart the server.
+     * @param psalmConfigPath
+     */
+    public setPsalmConfigPath(psalmConfigPath: string): void {
+        this.psalmConfigPath = psalmConfigPath;
+    }
+
     public createDefaultErrorHandler(maxRestartCount?: number): ErrorHandler {
         if (maxRestartCount !== undefined && maxRestartCount < 0) {
             throw new Error(`Invalid maxRestartCount: ${maxRestartCount}`);
diff --git a/src/LanguageServerErrorHandler.ts b/src/LanguageServerErrorHandler.ts
index bac98ef..9ddf898 100644
--- a/src/LanguageServerErrorHandler.ts
+++ b/src/LanguageServerErrorHandler.ts
@@ -24,7 +24,7 @@ export default class LanguageServerErrorHandler implements ErrorHandler {
         if (this.restarts.length <= this.maxRestartCount) {
             return CloseAction.Restart;
         } else {
-            let diff =
+            const diff =
                 this.restarts[this.restarts.length - 1] - this.restarts[0];
             if (diff <= 3 * 60 * 1000) {
                 void showReportIssueErrorMessage(
diff --git a/src/commands.ts b/src/commands.ts
index 8b077f2..413ac6a 100755
--- a/src/commands.ts
+++ b/src/commands.ts
@@ -73,7 +73,9 @@ function reportIssue(
                 'report_issue_template.md'
             );
 
-            const userSettings = Object.entries(configurationService.getAll())
+            const userSettings = Object.entries(
+                configurationService.getAll()
+            )
                 .map(([key, value]) => `${key}: ${JSON.stringify(value)}`)
                 .join(EOL);
             const psalmLogs = loggingService.getContent().join(EOL);
@@ -88,7 +90,8 @@ function reportIssue(
             let psalmVersion: string | null = 'unknown';
             try {
                 psalmVersion =
-                    (await client.getPsalmLanguageServerVersion()) ?? 'unknown';
+                    (await client.getPsalmLanguageServerVersion()) ??
+                    'unknown';
             } catch (err) {
                 psalmVersion = err.message;
             }
diff --git a/src/extension.ts b/src/extension.ts
index efa93df..5488fe1 100755
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -20,7 +20,7 @@ export async function activate(
     const configurationService = new ConfigurationService();
     await configurationService.init();
 
-    //Set Logging Level
+    // Set Logging Level
     loggingService.setOutputLevel(
         configurationService.get<LogLevel>('logLevel')
     );
@@ -37,9 +37,60 @@ export async function activate(
         return;
     }
 
-    const workspacePath = workspaceFolders[0].uri.fsPath;
+    const getCurrentWorkspace = (
+        workspaceFolders: readonly vscode.WorkspaceFolder[]
+    ) => {
+        const activeWorkspace = vscode.window.activeTextEditor
+            ? vscode.workspace.getWorkspaceFolder(
+                  vscode.window.activeTextEditor.document.uri
+              )
+            : workspaceFolders[0];
 
-    const configPaths = configurationService.get<string[]>('configPaths') || [];
+        const workspacePath = activeWorkspace
+            ? activeWorkspace.uri.fsPath
+            : workspaceFolders[0].uri.fsPath;
+
+        return { workspacePath };
+    };
+
+    const getOptions = async () => {
+        const configPaths =
+            configurationService.get<string[]>('configPaths') || [];
+
+        const psalmXMLFiles = await vscode.workspace.findFiles(
+            `{${configPaths.join(',')}}`
+            // `**/vendor/**/{${configPaths.join(',')}}`
+        );
+
+        const psalmXMLPaths = psalmXMLFiles.map((uri) => {
+            if (process.platform === 'win32') {
+                return uri.path.replace(/\//g, '\\').replace(/^\\/g, '');
+            }
+            return uri.path;
+        });
+
+        const { workspacePath } = getCurrentWorkspace(workspaceFolders);
+
+        const configXml =
+            psalmXMLPaths.find((path) => path.startsWith(workspacePath)) ??
+            psalmXMLPaths[0];
+
+        return {
+            configPaths,
+            psalmXMLFiles,
+            psalmXMLPaths,
+            configXml,
+            workspacePath,
+        };
+    };
+
+    let {
+        configPaths,
+        // psalmXMLFiles,
+        psalmXMLPaths,
+        configXml,
+        workspacePath,
+    } = await getOptions();
 
     if (!configPaths.length) {
         loggingService.logError(
@@ -48,18 +99,6 @@ export async function activate(
         return;
     }
 
-    const psalmXMLFiles = await vscode.workspace.findFiles(
-        `{${configPaths.join(',')}}`
-        // `**/vendor/**/{${configPaths.join(',')}}`
-    );
-
-    const psalmXMLPaths = psalmXMLFiles.map((uri) => {
-        if (process.platform === 'win32') {
-            return uri.path.replace(/\//g, '\\').replace(/^\\/g, '');
-        }
-        return uri.path;
-    });
-
     if (!psalmXMLPaths.length) {
         // no psalm.xml found
         loggingService.logError(
@@ -73,11 +112,9 @@ export async function activate(
         psalmXMLPaths
     );
 
-    const configXml = psalmXMLPaths[0];
-
     loggingService.logDebug(`Selecting first found config file: ${configXml}`);
 
-    const configWatcher = vscode.workspace.createFileSystemWatcher(configXml);
+    let configWatcher = vscode.workspace.createFileSystemWatcher(configXml);
 
     const languageServer = new LanguageServer(
         context,
@@ -88,6 +125,17 @@ export async function activate(
         loggingService
     );
 
+    // restart the language server when changing workspaces
+    const onWorkspacePathChange = async () => {
+        //kill the previous watcher
+        configWatcher.dispose();
+        configWatcher = vscode.workspace.createFileSystemWatcher(configXml);
+        loggingService.logInfo(`Workspace changed: ${workspacePath}`);
+        languageServer.setWorkspacePath(workspacePath);
+        languageServer.setPsalmConfigPath(configXml);
+        languageServer.restart();
+    };
+
     const onConfigChange = () => {
         loggingService.logInfo(`Config file changed: ${configXml}`);
         languageServer.restart();
@@ -129,5 +177,24 @@ export async function activate(
         await configurationService.init();
     });
 
+    vscode.window.onDidChangeActiveTextEditor(async (e) => {
+        if (!e) {
+            return;
+        }
+
+        const options = await getOptions();
+
+        if (!options.workspacePath || workspacePath === options.workspacePath)
+            return;
+
+        configPaths = options.configPaths;
+        configXml = options.configXml;
+        // psalmXMLFiles = options.psalmXMLFiles;
+        psalmXMLPaths = options.psalmXMLPaths;
+        workspacePath = options.workspacePath;
+
+        onWorkspacePathChange();
+    });
+
     loggingService.logDebug('Finished Extension Activation');
 }