diff --git a/src/harness/unittests/typingsInstaller.ts b/src/harness/unittests/typingsInstaller.ts
index 12e62aaa7b9ab..d6f8a2d01fcee 100644
--- a/src/harness/unittests/typingsInstaller.ts
+++ b/src/harness/unittests/typingsInstaller.ts
@@ -692,7 +692,54 @@ namespace ts.projectSystem {
             checkProjectActualFiles(p, [app.path, jqueryDTS.path]);
         });
 
-        it("configured projects discover from bower.josn", () => {
+        it("configured projects discover from bower_components", () => {
+            const app = {
+                path: "/app.js",
+                content: ""
+            };
+            const jsconfig = {
+                path: "/jsconfig.json",
+                content: JSON.stringify({})
+            };
+            const jquery = {
+                path: "/bower_components/jquery/index.js",
+                content: ""
+            };
+            const jqueryPackage = {
+                path: "/bower_components/jquery/package.json",
+                content: JSON.stringify({ name: "jquery" })
+            };
+            const jqueryDTS = {
+                path: "/tmp/node_modules/@types/jquery/index.d.ts",
+                content: ""
+            };
+            const host = createServerHost([app, jsconfig, jquery, jqueryPackage]);
+            const installer = new (class extends Installer {
+                constructor() {
+                    super(host, { globalTypingsCacheLocation: "/tmp", typesRegistry: createTypesRegistry("jquery") });
+                }
+                installWorker(_requestId: number, _args: string[], _cwd: string, cb: server.typingsInstaller.RequestCompletedAction) {
+                    const installedTypings = ["@types/jquery"];
+                    const typingFiles = [jqueryDTS];
+                    executeCommand(this, host, installedTypings, typingFiles, cb);
+                }
+            })();
+
+            const projectService = createProjectService(host, { useSingleInferredProject: true, typingsInstaller: installer });
+            projectService.openClientFile(app.path);
+
+            checkNumberOfProjects(projectService, { configuredProjects: 1 });
+            const p = projectService.configuredProjects[0];
+            checkProjectActualFiles(p, [app.path]);
+            checkWatchedFiles(host, [jsconfig.path, "/bower_components", "/node_modules"]);
+
+            installer.installAll(/*expectedCount*/ 1);
+
+            checkNumberOfProjects(projectService, { configuredProjects: 1 });
+            checkProjectActualFiles(p, [app.path, jqueryDTS.path]);
+        });
+
+        it("configured projects discover from bower.json", () => {
             const app = {
                 path: "/app.js",
                 content: ""
@@ -975,7 +1022,7 @@ namespace ts.projectSystem {
             }
         });
 
-        it("should use cached locaitons", () => {
+        it("should use cached locations", () => {
             const f = {
                 path: "/a/b/app.js",
                 content: ""
diff --git a/src/services/jsTyping.ts b/src/services/jsTyping.ts
index e7196e8f491c5..c11f6e67a71a6 100644
--- a/src/services/jsTyping.ts
+++ b/src/services/jsTyping.ts
@@ -99,8 +99,11 @@ namespace ts.JsTyping {
             const bowerJsonPath = combinePaths(searchDir, "bower.json");
             getTypingNamesFromJson(bowerJsonPath, filesToWatch);
 
+            const bowerComponentsPath = combinePaths(searchDir, "bower_components");
+            getTypingNamesFromPackagesFolder(bowerComponentsPath);
+
             const nodeModulesPath = combinePaths(searchDir, "node_modules");
-            getTypingNamesFromNodeModuleFolder(nodeModulesPath);
+            getTypingNamesFromPackagesFolder(nodeModulesPath);
         }
         getTypingNamesFromSourceFileNames(fileNames);
 
@@ -199,20 +202,24 @@ namespace ts.JsTyping {
         }
 
         /**
-         * Infer typing names from node_module folder
-         * @param nodeModulesPath is the path to the "node_modules" folder
+         * Infer typing names from packages folder (ex: node_module, bower_components)
+         * @param packagesFolderPath is the path to the packages folder
+
          */
-        function getTypingNamesFromNodeModuleFolder(nodeModulesPath: string) {
+        function getTypingNamesFromPackagesFolder(packagesFolderPath: string) {
+            filesToWatch.push(packagesFolderPath);
+
             // Todo: add support for ModuleResolutionHost too
-            if (!host.directoryExists(nodeModulesPath)) {
+            if (!host.directoryExists(packagesFolderPath)) {
                 return;
             }
 
             const typingNames: string[] = [];
-            const fileNames = host.readDirectory(nodeModulesPath, [".json"], /*excludes*/ undefined, /*includes*/ undefined, /*depth*/ 2);
+            const fileNames = host.readDirectory(packagesFolderPath, [".json"], /*excludes*/ undefined, /*includes*/ undefined, /*depth*/ 2);
             for (const fileName of fileNames) {
                 const normalizedFileName = normalizePath(fileName);
-                if (getBaseFileName(normalizedFileName) !== "package.json") {
+                const baseFileName = getBaseFileName(normalizedFileName);
+                if (baseFileName !== "package.json" && baseFileName !== "bower.json") {
                     continue;
                 }
                 const result = readConfigFile(normalizedFileName, (path: string) => host.readFile(path));
@@ -224,7 +231,7 @@ namespace ts.JsTyping {
                 // npm 3's package.json contains a "_requiredBy" field
                 // we should include all the top level module names for npm 2, and only module names whose
                 // "_requiredBy" field starts with "#" or equals "/" for npm 3.
-                if (packageJson._requiredBy &&
+                if (baseFileName === "package.json" && packageJson._requiredBy &&
                     filter(packageJson._requiredBy, (r: string) => r[0] === "#" || r === "/").length === 0) {
                     continue;
                 }