diff --git a/packages/language-service/src/reflector_host.ts b/packages/language-service/src/reflector_host.ts
index 2fa04b97db..5e60375e6e 100644
--- a/packages/language-service/src/reflector_host.ts
+++ b/packages/language-service/src/reflector_host.ts
@@ -12,30 +12,54 @@ import * as path from 'path';
 import * as ts from 'typescript';
 
 class ReflectorModuleModuleResolutionHost implements ts.ModuleResolutionHost, MetadataReaderHost {
-  // Note: verboseInvalidExpressions is important so that
-  // the collector will collect errors instead of throwing
-  private metadataCollector = new MetadataCollector({verboseInvalidExpression: true});
+  private readonly metadataCollector = new MetadataCollector({
+    // Note: verboseInvalidExpressions is important so that
+    // the collector will collect errors instead of throwing
+    verboseInvalidExpression: true,
+  });
 
-  constructor(private host: ts.LanguageServiceHost, private getProgram: () => ts.Program) {
-    if (host.directoryExists)
-      this.directoryExists = directoryName => this.host.directoryExists !(directoryName);
+  readonly directoryExists?: (directoryName: string) => boolean;
+
+  constructor(
+      private readonly tsLSHost: ts.LanguageServiceHost,
+      private readonly getProgram: () => ts.Program) {
+    if (tsLSHost.directoryExists) {
+      this.directoryExists = directoryName => tsLSHost.directoryExists !(directoryName);
+    }
   }
 
-  fileExists(fileName: string): boolean { return !!this.host.getScriptSnapshot(fileName); }
+  fileExists(fileName: string): boolean {
+    // TypeScript resolution logic walks through the following sequence in order:
+    // package.json (read "types" field) -> .ts -> .tsx -> .d.ts
+    // For more info, see
+    // https://www.typescriptlang.org/docs/handbook/module-resolution.html
+    // For Angular specifically, we can skip .tsx lookup
+    if (fileName.endsWith('.tsx')) {
+      return false;
+    }
+    if (this.tsLSHost.fileExists) {
+      return this.tsLSHost.fileExists(fileName);
+    }
+    return !!this.tsLSHost.getScriptSnapshot(fileName);
+  }
 
   readFile(fileName: string): string {
-    let snapshot = this.host.getScriptSnapshot(fileName);
-    if (snapshot) {
-      return snapshot.getText(0, snapshot.getLength());
+    // readFile() is used by TypeScript to read package.json during module
+    // resolution, and it's used by Angular to read metadata.json during
+    // metadata resolution.
+    if (this.tsLSHost.readFile) {
+      return this.tsLSHost.readFile(fileName) !;
     }
-
-    // Typescript readFile() declaration should be `readFile(fileName: string): string | undefined
-    return undefined !;
+    // As a fallback, read the JSON files from the editor snapshot.
+    const snapshot = this.tsLSHost.getScriptSnapshot(fileName);
+    if (!snapshot) {
+      // MetadataReaderHost readFile() declaration should be
+      // `readFile(fileName: string): string | undefined`
+      return undefined !;
+    }
+    return snapshot.getText(0, snapshot.getLength());
   }
 
-  // TODO(issue/24571): remove '!'.
-  directoryExists !: (directoryName: string) => boolean;
-
   getSourceFileMetadata(fileName: string) {
     const sf = this.getProgram().getSourceFile(fileName);
     return sf ? this.metadataCollector.getMetadata(sf) : undefined;
diff --git a/packages/language-service/test/reflector_host_spec.ts b/packages/language-service/test/reflector_host_spec.ts
index 5215719d0a..e395a010f2 100644
--- a/packages/language-service/test/reflector_host_spec.ts
+++ b/packages/language-service/test/reflector_host_spec.ts
@@ -44,10 +44,9 @@ describe('reflector_host_spec', () => {
   it('should use module resolution cache', () => {
     const mockHost = new MockTypescriptHost(['/app/main.ts'], toh);
     // TypeScript relies on `ModuleResolutionHost.fileExists()` to perform
-    // module resolution, and ReflectorHost uses
-    // `LanguageServiceHost.getScriptSnapshot()` to implement `fileExists()`,
-    // so spy on this method to determine how many times it's called.
-    const spy = spyOn(mockHost, 'getScriptSnapshot').and.callThrough();
+    // module resolution, so spy on this method to determine how many times
+    // it's called.
+    const spy = spyOn(mockHost, 'fileExists').and.callThrough();
 
     const tsLS = ts.createLanguageService(mockHost);
 
@@ -62,16 +61,16 @@ describe('reflector_host_spec', () => {
     // This resolves all Angular directives in the project.
     ngLSHost.getAnalyzedModules();
     const secondCount = spy.calls.count();
-    expect(secondCount).toBeGreaterThan(500);
-    expect(secondCount).toBeLessThan(600);
+    expect(secondCount).toBeGreaterThan(700);
+    expect(secondCount).toBeLessThan(800);
     spy.calls.reset();
 
     // Third count is due to recompution after the program changes.
     mockHost.addCode('');  // this will mark project as dirty
     ngLSHost.getAnalyzedModules();
     const thirdCount = spy.calls.count();
-    expect(thirdCount).toBeGreaterThan(50);
-    expect(thirdCount).toBeLessThan(100);
+    expect(thirdCount).toBeGreaterThan(0);
+    expect(thirdCount).toBeLessThan(10);
 
     // Summary
     // |               | First Count | Second Count | Third Count |