diff --git a/packages/language-server/.gitignore b/packages/language-server/.gitignore
index 5dbbc7fbb..02c400bc6 100644
--- a/packages/language-server/.gitignore
+++ b/packages/language-server/.gitignore
@@ -1,3 +1,4 @@
 dist/
 .vscode/
 node_modules/
+!test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/
\ No newline at end of file
diff --git a/packages/language-server/package.json b/packages/language-server/package.json
index 8ee68b6ed..f3702c47b 100644
--- a/packages/language-server/package.json
+++ b/packages/language-server/package.json
@@ -10,7 +10,7 @@
         "./bin/server.js": "./bin/server.js"
     },
     "scripts": {
-        "test": "cross-env TS_NODE_TRANSPILE_ONLY=true mocha --require ts-node/register \"test/**/*.ts\" --exclude \"test/**/*.d.ts\"",
+        "test": "cross-env TS_NODE_TRANSPILE_ONLY=true mocha --require ts-node/register \"test/**/*.test.ts\"",
         "build": "tsc",
         "prepublishOnly": "npm run build",
         "watch": "tsc -w"
diff --git a/packages/language-server/src/plugins/typescript/module-loader.ts b/packages/language-server/src/plugins/typescript/module-loader.ts
index 915e50b26..4cbde00b8 100644
--- a/packages/language-server/src/plugins/typescript/module-loader.ts
+++ b/packages/language-server/src/plugins/typescript/module-loader.ts
@@ -104,7 +104,7 @@ class ImpliedNodeFormatResolver {
             return undefined;
         }
 
-        let mode = undefined;
+        let mode: ReturnType<typeof ts.getModeForResolutionAtIndex> = undefined;
         if (sourceFile) {
             this.cacheImpliedNodeFormat(sourceFile, compilerOptions);
             mode = ts.getModeForResolutionAtIndex(sourceFile, importIdxInFile, compilerOptions);
diff --git a/packages/language-server/src/plugins/typescript/svelte-sys.ts b/packages/language-server/src/plugins/typescript/svelte-sys.ts
index a639b2a58..553bd17a3 100644
--- a/packages/language-server/src/plugins/typescript/svelte-sys.ts
+++ b/packages/language-server/src/plugins/typescript/svelte-sys.ts
@@ -11,6 +11,17 @@ export function createSvelteSys(tsSystem: ts.System) {
     function svelteFileExists(path: string) {
         if (isVirtualSvelteFilePath(path)) {
             const sveltePath = toRealSvelteFilePath(path);
+
+            // First check if there's a `.svelte.d.ts` or `.d.svelte.ts` file, which should take precedence
+            const dtsPath = sveltePath.slice(0, -7) + '.svelte.d.ts';
+            const dtsPathExists = fileExistsCache.get(dtsPath) ?? tsSystem.fileExists(dtsPath);
+            fileExistsCache.set(dtsPath, dtsPathExists);
+            if (dtsPathExists) return false;
+
+            const svelteDtsPathExists = fileExistsCache.get(path) ?? tsSystem.fileExists(path);
+            fileExistsCache.set(path, svelteDtsPathExists);
+            if (svelteDtsPathExists) return false;
+
             const sveltePathExists =
                 fileExistsCache.get(sveltePath) ?? tsSystem.fileExists(sveltePath);
             fileExistsCache.set(sveltePath, sveltePathExists);
@@ -33,10 +44,11 @@ export function createSvelteSys(tsSystem: ts.System) {
         svelteFileExists,
         getRealSveltePathIfExists,
         fileExists(path: string) {
-            // We need to check both .svelte and .svelte.ts/js because that's how Svelte 5 will likely mark files with runes in them
+            // We need to check if this is a virtual svelte file
             const sveltePathExists = svelteFileExists(path);
-            const exists =
-                sveltePathExists || (fileExistsCache.get(path) ?? tsSystem.fileExists(path));
+            if (sveltePathExists) return true;
+
+            const exists = fileExistsCache.get(path) ?? tsSystem.fileExists(path);
             fileExistsCache.set(path, exists);
             return exists;
         },
@@ -66,7 +78,7 @@ export function createSvelteSys(tsSystem: ts.System) {
         const realpath = tsSystem.realpath;
         svelteSys.realpath = function (path) {
             if (svelteFileExists(path)) {
-                return realpath(toRealSvelteFilePath(path)) + '.ts';
+                return realpath(toRealSvelteFilePath(path));
             }
             return realpath(path);
         };
diff --git a/packages/language-server/src/plugins/typescript/utils.ts b/packages/language-server/src/plugins/typescript/utils.ts
index 62fa6359d..a8a6ce1f6 100644
--- a/packages/language-server/src/plugins/typescript/utils.ts
+++ b/packages/language-server/src/plugins/typescript/utils.ts
@@ -70,15 +70,17 @@ export function isSvelteFilePath(filePath: string) {
 }
 
 export function isVirtualSvelteFilePath(filePath: string) {
-    return filePath.endsWith('.svelte.ts');
+    return filePath.endsWith('.d.svelte.ts');
 }
 
 export function toRealSvelteFilePath(filePath: string) {
-    return filePath.slice(0, -'.ts'.length);
+    return filePath.slice(0, -11 /* 'd.svelte.ts'.length */) + 'svelte';
 }
 
-export function toVirtualSvelteFilePath(filePath: string) {
-    return filePath.endsWith('.ts') ? filePath : filePath + '.ts';
+export function toVirtualSvelteFilePath(svelteFilePath: string) {
+    return isVirtualSvelteFilePath(svelteFilePath)
+        ? svelteFilePath
+        : svelteFilePath.slice(0, -6 /* 'svelte'.length */) + 'd.svelte.ts';
 }
 
 export function ensureRealSvelteFilePath(filePath: string) {
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/bindings-two-way-check/expectedv2.json b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/bindings-two-way-check/expectedv2.json
new file mode 100644
index 000000000..f8c8cb449
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/bindings-two-way-check/expectedv2.json
@@ -0,0 +1,18 @@
+[
+    {
+        "code": -1,
+        "message": "Unexpected token",
+        "range": {
+            "end": {
+                "character": 47,
+                "line": 12
+            },
+            "start": {
+                "character": 47,
+                "line": 12
+            }
+        },
+        "severity": 1,
+        "source": "ts"
+    }
+]
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/expectedv2.json b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/expectedv2.json
new file mode 100644
index 000000000..58680d099
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/expectedv2.json
@@ -0,0 +1,36 @@
+[
+    {
+        "code": 2307,
+        "message": "Cannot find module 'package' or its corresponding type declarations.",
+        "range": {
+            "end": {
+                "character": 45,
+                "line": 1
+            },
+            "start": {
+                "character": 36,
+                "line": 1
+            }
+        },
+        "severity": 1,
+        "source": "ts",
+        "tags": []
+    },
+    {
+        "code": 2307,
+        "message": "Cannot find module 'package/y' or its corresponding type declarations.",
+        "range": {
+            "start": {
+                "character": 38,
+                "line": 3
+            },
+            "end": {
+                "character": 49,
+                "line": 3
+            }
+        },
+        "severity": 1,
+        "source": "ts",
+        "tags": []
+    }
+]
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/input.svelte b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/input.svelte
new file mode 100644
index 000000000..2775a7582
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/input.svelte
@@ -0,0 +1,9 @@
+<script lang="ts">
+    import DefaultSvelteWithTS from 'package'; // with https://github.com/sveltejs/language-tools/pull/2478 this would work; needs decision if we want that
+    import SubWithDTS from 'package/x';
+    import SubWithoutDTSAndNotTS from 'package/y';
+</script>
+
+<DefaultSvelteWithTS />
+<SubWithDTS />
+<SubWithoutDTSAndNotTS />
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/foo.svelte b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/foo.svelte
new file mode 100644
index 000000000..e29d29c54
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/foo.svelte
@@ -0,0 +1,3 @@
+<script lang="ts">
+    export let foo = true;
+</script>
\ No newline at end of file
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/package.json b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/package.json
new file mode 100644
index 000000000..422ee721e
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/package.json
@@ -0,0 +1,16 @@
+{
+    "name": "package",
+    "version": "1.0.0",
+    "exports": {
+        ".": {
+            "svelte": "./foo.svelte"
+        },
+        "./x": {
+            "types": "./x-types.d.ts",
+            "svelte": "./x.svelte"
+        },
+        "./y": {
+            "svelte": "./y.svelte"
+        }
+    }
+}
\ No newline at end of file
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/x-types.d.ts b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/x-types.d.ts
new file mode 100644
index 000000000..4d27ef5b0
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/x-types.d.ts
@@ -0,0 +1,2 @@
+declare const X: any;
+export default X;
\ No newline at end of file
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/x.svelte b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/x.svelte
new file mode 100644
index 000000000..fb5dbfefa
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/x.svelte
@@ -0,0 +1,3 @@
+<script>
+    export let x = true;
+</script>
\ No newline at end of file
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/y.svelte b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/y.svelte
new file mode 100644
index 000000000..78f01008c
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/node_modules/package/y.svelte
@@ -0,0 +1,3 @@
+<script>
+    export let y = true;
+</script>
\ No newline at end of file
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/tsconfig.json b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/tsconfig.json
new file mode 100644
index 000000000..d5e498207
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/exports-map-svelte/tsconfig.json
@@ -0,0 +1,7 @@
+{
+    "compilerOptions": {
+        "module": "esnext",
+        "target": "esnext",
+        "moduleResolution": "Bundler"
+    }
+}
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/a.svelte b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/a.svelte
new file mode 100644
index 000000000..1f6a1cbe4
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/a.svelte
@@ -0,0 +1,3 @@
+<script>
+    export let foo = true;
+</script>
\ No newline at end of file
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/a.svelte.d.ts b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/a.svelte.d.ts
new file mode 100644
index 000000000..227cc1bb1
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/a.svelte.d.ts
@@ -0,0 +1 @@
+export declare const a: boolean;
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/b.svelte b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/b.svelte
new file mode 100644
index 000000000..1f6a1cbe4
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/b.svelte
@@ -0,0 +1,3 @@
+<script>
+    export let foo = true;
+</script>
\ No newline at end of file
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/b.svelte.ts b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/b.svelte.ts
new file mode 100644
index 000000000..1d9db10ef
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/b.svelte.ts
@@ -0,0 +1 @@
+export const b = true;
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/c.d.svelte.ts b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/c.d.svelte.ts
new file mode 100644
index 000000000..a12f971dd
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/c.d.svelte.ts
@@ -0,0 +1 @@
+export declare const c: boolean;
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/c.svelte b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/c.svelte
new file mode 100644
index 000000000..1f6a1cbe4
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/c.svelte
@@ -0,0 +1,3 @@
+<script>
+    export let foo = true;
+</script>
\ No newline at end of file
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/d.svelte b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/d.svelte
new file mode 100644
index 000000000..1f6a1cbe4
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/d.svelte
@@ -0,0 +1,3 @@
+<script>
+    export let foo = true;
+</script>
\ No newline at end of file
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/d.svelte.js b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/d.svelte.js
new file mode 100644
index 000000000..ecee2a83c
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/d.svelte.js
@@ -0,0 +1 @@
+export const d = true;
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/expectedv2.json b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/expectedv2.json
new file mode 100644
index 000000000..fe51488c7
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/expectedv2.json
@@ -0,0 +1 @@
+[]
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/input.svelte b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/input.svelte
new file mode 100644
index 000000000..9966c707e
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/input.svelte
@@ -0,0 +1,15 @@
+<script lang="ts">
+    import { a } from './a.svelte';
+    import B from './b.svelte';
+    import { b } from './b.svelte.js';
+    import { c } from './c.svelte';
+    import D from './d.svelte';
+    import { d } from './d.svelte.js';
+    a;
+    b;
+    c;
+    d;
+</script>
+
+<B />
+<D />
diff --git a/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/tsconfig.json b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/tsconfig.json
new file mode 100644
index 000000000..eef515315
--- /dev/null
+++ b/packages/language-server/test/plugins/typescript/features/diagnostics/fixtures/import-precedence/tsconfig.json
@@ -0,0 +1,13 @@
+{
+    "compilerOptions": {
+        "strict": true,
+        "allowJs": true,
+        "target": "ESNext",
+        /**
+          This is actually not needed, but makes the tests faster
+          because TS does not look up other types.
+        */
+        "types": ["svelte"],
+        "allowArbitraryExtensions": true // else .d.svelte.ts will be an error
+    }
+}
diff --git a/packages/language-server/test/plugins/typescript/module-loader.test.ts b/packages/language-server/test/plugins/typescript/module-loader.test.ts
index 559eeb447..1c3561cc2 100644
--- a/packages/language-server/test/plugins/typescript/module-loader.test.ts
+++ b/packages/language-server/test/plugins/typescript/module-loader.test.ts
@@ -59,12 +59,12 @@ describe('createSvelteModuleLoader', () => {
     it('uses svelte script kind if resolved module is svelte file', async () => {
         const resolvedModule: ts.ResolvedModuleFull = {
             extension: ts.Extension.Ts,
-            resolvedFileName: 'filename.svelte.ts'
+            resolvedFileName: 'filename.d.svelte.ts'
         };
         const { getSvelteSnapshotStub, moduleResolver, svelteSys } = setup(resolvedModule);
 
         svelteSys.getRealSveltePathIfExists = (filename: string) =>
-            filename === 'filename.svelte.ts' ? 'filename.svelte' : filename;
+            filename === 'filename.d.svelte.ts' ? 'filename.svelte' : filename;
 
         const result = moduleResolver.resolveModuleNames(
             ['./normal.ts'],
diff --git a/packages/language-server/test/plugins/typescript/svelte-sys.test.ts b/packages/language-server/test/plugins/typescript/svelte-sys.test.ts
index 2da35db20..ba9a21d5a 100644
--- a/packages/language-server/test/plugins/typescript/svelte-sys.test.ts
+++ b/packages/language-server/test/plugins/typescript/svelte-sys.test.ts
@@ -29,18 +29,24 @@ describe('Svelte Sys', () => {
     }
 
     describe('#fileExists', () => {
-        it('should leave files with no .svelte.ts-ending as is', async () => {
+        it('should leave files with no .d.svelte.ts-ending as is', async () => {
             const { loader, fileExistsStub } = setupLoader();
             loader.fileExists('../file.ts');
 
             assert.strictEqual(fileExistsStub.getCall(0).args[0], '../file.ts');
         });
 
-        it('should convert .svelte.ts-endings', async () => {
+        it('should convert .d.svelte.ts-endings', async () => {
             const { loader, fileExistsStub } = setupLoader();
-            loader.fileExists('../file.svelte.ts');
+            fileExistsStub.onCall(0).returns(false);
+            fileExistsStub.onCall(1).returns(false);
+            fileExistsStub.onCall(2).returns(true);
 
-            assert.strictEqual(fileExistsStub.getCall(0).args[0], '../file.svelte');
+            loader.fileExists('../file.d.svelte.ts');
+
+            assert.strictEqual(fileExistsStub.getCall(0).args[0], '../file.svelte.d.ts');
+            assert.strictEqual(fileExistsStub.getCall(1).args[0], '../file.d.svelte.ts');
+            assert.strictEqual(fileExistsStub.getCall(2).args[0], '../file.svelte');
         });
     });
 });
diff --git a/packages/typescript-plugin/package.json b/packages/typescript-plugin/package.json
index 6928186a4..766ac42c5 100644
--- a/packages/typescript-plugin/package.json
+++ b/packages/typescript-plugin/package.json
@@ -1,6 +1,6 @@
 {
     "name": "typescript-svelte-plugin",
-    "version": "0.2.0",
+    "version": "0.3.0",
     "description": "A TypeScript Plugin providing Svelte intellisense",
     "main": "dist/src/index.js",
     "scripts": {
diff --git a/packages/typescript-plugin/src/module-loader.ts b/packages/typescript-plugin/src/module-loader.ts
index cc2003cba..569f073b3 100644
--- a/packages/typescript-plugin/src/module-loader.ts
+++ b/packages/typescript-plugin/src/module-loader.ts
@@ -3,30 +3,7 @@ import { ConfigManager } from './config-manager';
 import { Logger } from './logger';
 import { SvelteSnapshotManager } from './svelte-snapshots';
 import { createSvelteSys } from './svelte-sys';
-import { ensureRealSvelteFilePath, isVirtualSvelteFilePath } from './utils';
-
-// TODO remove when we update to typescript 5.0
-declare module 'typescript/lib/tsserverlibrary' {
-    interface LanguageServiceHost {
-        /** @deprecated supply resolveModuleNameLiterals instead for resolution that can handle newer resolution modes like nodenext */
-        resolveModuleNames?(
-            moduleNames: string[],
-            containingFile: string,
-            reusedNames: string[] | undefined,
-            redirectedReference: ts.ResolvedProjectReference | undefined,
-            options: ts.CompilerOptions,
-            containingSourceFile?: ts.SourceFile
-        ): (ts.ResolvedModule | undefined)[];
-        resolveModuleNameLiterals?(
-            moduleLiterals: readonly ts.StringLiteralLike[],
-            containingFile: string,
-            redirectedReference: ts.ResolvedProjectReference | undefined,
-            options: ts.CompilerOptions,
-            containingSourceFile: ts.SourceFile,
-            reusedNames: readonly ts.StringLiteralLike[] | undefined
-        ): readonly ts.ResolvedModuleWithFailedLookupLocations[];
-    }
-}
+import { ensureRealSvelteFilePath, isSvelteFilePath, isVirtualSvelteFilePath } from './utils';
 
 /**
  * Caches resolved modules.
@@ -110,6 +87,8 @@ export function patchModuleLoader(
     if (lsHost.resolveModuleNameLiterals) {
         lsHost.resolveModuleNameLiterals = resolveModuleNameLiterals;
     } else {
+        // TODO do we need to keep this around? We're requiring 5.0 now, so TS doesn't need it,
+        // but would this break when other TS plugins are used and we no longer provide it?
         lsHost.resolveModuleNames = resolveModuleNames;
     }
 
@@ -161,12 +140,22 @@ export function patchModuleLoader(
 
         return resolved.map((tsResolvedModule, idx) => {
             const moduleName = moduleNames[idx];
-            if (tsResolvedModule || !ensureRealSvelteFilePath(moduleName).endsWith('.svelte')) {
+            if (
+                !isSvelteFilePath(moduleName) ||
+                // corresponding .d.ts files take precedence over .svelte files
+                tsResolvedModule?.resolvedFileName.endsWith('.d.ts') ||
+                tsResolvedModule?.resolvedFileName.endsWith('.d.svelte.ts')
+            ) {
                 return tsResolvedModule;
             }
 
-            return resolveSvelteModuleNameFromCache(moduleName, containingFile, compilerOptions)
-                .resolvedModule;
+            const result = resolveSvelteModuleNameFromCache(
+                moduleName,
+                containingFile,
+                compilerOptions
+            ).resolvedModule;
+            // .svelte takes precedence over .svelte.ts etc
+            return result ?? tsResolvedModule;
         });
     }
 
@@ -238,14 +227,20 @@ export function patchModuleLoader(
 
         return resolved.map((tsResolvedModule, idx) => {
             const moduleName = moduleLiterals[idx].text;
+            const resolvedModule = tsResolvedModule.resolvedModule;
+
             if (
-                tsResolvedModule.resolvedModule ||
-                !ensureRealSvelteFilePath(moduleName).endsWith('.svelte')
+                !isSvelteFilePath(moduleName) ||
+                // corresponding .d.ts files take precedence over .svelte files
+                resolvedModule?.resolvedFileName.endsWith('.d.ts') ||
+                resolvedModule?.resolvedFileName.endsWith('.d.svelte.ts')
             ) {
                 return tsResolvedModule;
             }
 
-            return resolveSvelteModuleNameFromCache(moduleName, containingFile, options);
+            const result = resolveSvelteModuleNameFromCache(moduleName, containingFile, options);
+            // .svelte takes precedence over .svelte.ts etc
+            return result.resolvedModule ? result : tsResolvedModule;
         });
     }
 
@@ -262,6 +257,7 @@ export function patchModuleLoader(
         }
 
         const resolvedModule = resolveSvelteModuleName(moduleName, containingFile, options);
+
         moduleCache.set(moduleName, containingFile, resolvedModule);
         return {
             resolvedModule: resolvedModule
diff --git a/packages/typescript-plugin/src/svelte-sys.ts b/packages/typescript-plugin/src/svelte-sys.ts
index d530e0b47..75b0a6f80 100644
--- a/packages/typescript-plugin/src/svelte-sys.ts
+++ b/packages/typescript-plugin/src/svelte-sys.ts
@@ -30,7 +30,7 @@ export function createSvelteSys(ts: _ts, logger: Logger) {
         const realpath = ts.sys.realpath;
         svelteSys.realpath = function (path) {
             if (isVirtualSvelteFilePath(path)) {
-                return realpath(toRealSvelteFilePath(path)) + '.ts';
+                return realpath(toRealSvelteFilePath(path));
             }
             return realpath(path);
         };
diff --git a/packages/typescript-plugin/src/utils.ts b/packages/typescript-plugin/src/utils.ts
index d189f7ad1..1b14a6dbe 100644
--- a/packages/typescript-plugin/src/utils.ts
+++ b/packages/typescript-plugin/src/utils.ts
@@ -8,11 +8,17 @@ export function isSvelteFilePath(filePath: string) {
 }
 
 export function isVirtualSvelteFilePath(filePath: string) {
-    return filePath.endsWith('.svelte.ts');
+    return filePath.endsWith('.d.svelte.ts');
 }
 
 export function toRealSvelteFilePath(filePath: string) {
-    return filePath.slice(0, -'.ts'.length);
+    return filePath.slice(0, -11 /* 'd.svelte.ts'.length */) + 'svelte';
+}
+
+export function toVirtualSvelteFilePath(svelteFilePath: string) {
+    return isVirtualSvelteFilePath(svelteFilePath)
+        ? svelteFilePath
+        : svelteFilePath.slice(0, -6 /* 'svelte'.length */) + 'd.svelte.ts';
 }
 
 export function ensureRealSvelteFilePath(filePath: string) {