diff --git a/rzk/src/Language/Rzk/VSCode/Env.hs b/rzk/src/Language/Rzk/VSCode/Env.hs
index 1305f78e7..f2328e33e 100644
--- a/rzk/src/Language/Rzk/VSCode/Env.hs
+++ b/rzk/src/Language/Rzk/VSCode/Env.hs
@@ -3,12 +3,18 @@ module Language.Rzk.VSCode.Env where
 import           Control.Concurrent.STM
 import           Control.Monad.Reader
 import           Language.LSP.Server
+import           Language.Rzk.Free.Syntax   (VarIdent)
 import           Language.Rzk.VSCode.Config (ServerConfig)
-import           Rzk.TypeCheck              (Decl')
+import           Rzk.TypeCheck              (Decl', TypeErrorInScopedContext)
 
-type RzkTypecheckCache = [(FilePath, [Decl'])]
+data RzkCachedModule = RzkCachedModule
+  { cachedModuleDecls  :: [Decl']
+  , cachedModuleErrors :: [TypeErrorInScopedContext VarIdent]
+  }
+
+type RzkTypecheckCache = [(FilePath, RzkCachedModule)]
 
-data RzkEnv = RzkEnv
+newtype RzkEnv = RzkEnv
   { rzkEnvTypecheckCache :: TVar RzkTypecheckCache
   }
 
@@ -18,7 +24,6 @@ defaultRzkEnv = do
   return RzkEnv
     { rzkEnvTypecheckCache = typecheckCache }
 
-
 type LSP = LspT ServerConfig (ReaderT RzkEnv IO)
 
 -- | Override the cache with given typechecked modules.
diff --git a/rzk/src/Language/Rzk/VSCode/Handlers.hs b/rzk/src/Language/Rzk/VSCode/Handlers.hs
index 09695553b..49ecdf329 100644
--- a/rzk/src/Language/Rzk/VSCode/Handlers.hs
+++ b/rzk/src/Language/Rzk/VSCode/Handlers.hs
@@ -4,6 +4,7 @@
 {-# LANGUAGE ScopedTypeVariables #-}
 {-# LANGUAGE TypeApplications    #-}
 {-# OPTIONS_GHC -Wno-orphans #-}
+{-# LANGUAGE RecordWildCards #-}
 
 module Language.Rzk.VSCode.Handlers (
   typecheckFromConfigFile,
@@ -102,7 +103,8 @@ typecheckFromConfigFile = do
           rawPaths <- liftIO $ globDir (map compile (include config)) rootPath
           let paths = concatMap sort rawPaths
 
-          cachedModules <- getCachedTypecheckedModules
+          typecheckedCachedModules <- getCachedTypecheckedModules
+          let cachedModules = map (\(path, RzkCachedModule{..}) -> (path, cachedModuleDecls)) typecheckedCachedModules
           let cachedPaths = map fst cachedModules
               modifiedFiles = paths \\ cachedPaths
 
@@ -126,13 +128,14 @@ typecheckFromConfigFile = do
                 -- cache well-typed modules
                 logInfo (show (length checkedModules) ++ " modules successfully typechecked")
                 logInfo (show (length errors) ++ " errors found")
-                cacheTypecheckedModules checkedModules
+                let checkedModules' = map (\(path, decls) -> (path, RzkCachedModule decls (filter ((== path) . filepathOfTypeError) errors))) checkedModules
+                cacheTypecheckedModules checkedModules'
                 return (errors, checkedModules)
 
           -- Reset all published diags
           -- TODO: remove this after properly grouping by path below, after which there can be an empty list of errors
           -- TODO: handle clearing diagnostics for files that got removed from the project (rzk.yaml)
-          forM_ paths $ \path -> do
+          forM_ modifiedFiles $ \path -> do
             publishDiagnostics 0 (filePathToNormalizedUri path) Nothing (partitionBySource [])
 
           -- Report parse errors to the client
@@ -202,8 +205,9 @@ provideCompletions req res = do
   logDebug ("Found " ++ show (length cachedModules) ++ " modules in the cache")
   let currentFile = fromMaybe "" $ uriToFilePath $ req ^. params . textDocument . uri
   -- Take all the modules up to and including the currently open one
-  let modules = takeWhileInc ((/= currentFile) . fst) cachedModules
+  let modules = map ignoreErrors $ takeWhileInc ((/= currentFile) . fst) cachedModules
         where
+          ignoreErrors (path, RzkCachedModule{..}) = (path, cachedModuleDecls)
           takeWhileInc _ [] = []
           takeWhileInc p (x:xs)
             | p x       = x : takeWhileInc p xs
@@ -287,13 +291,15 @@ data IsChanged
 -- | Detects if the given path has changes in its declaration compared to what's in the cache
 isChanged :: RzkTypecheckCache -> FilePath -> LSP IsChanged
 isChanged cache path = toIsChanged $ do
-  cachedDecls <- maybeToEitherLSP $ lookup path cache
+  let cacheWithoutErrors = map (fmap cachedModuleDecls) cache
+  errors <- maybeToEitherLSP $ cachedModuleErrors <$> lookup path cache
+  cachedDecls <- maybeToEitherLSP $ cachedModuleDecls <$> lookup path cache
   module' <- toExceptTLifted $ parseModuleFile path
   e <- toExceptTLifted $ try @SomeException $ evaluate $
-    defaultTypeCheck (typecheckModulesWithLocationIncremental (takeWhile ((/= path) . fst) cache) [(path, module')])
-  (checkedModules, _errors) <- toExceptT $ return e
+    defaultTypeCheck (typecheckModulesWithLocationIncremental (takeWhile ((/= path) . fst) cacheWithoutErrors) [(path, module')])
+  (checkedModules, errors') <- toExceptT $ return e
   decls' <- maybeToEitherLSP $ lookup path checkedModules
-  return $ if decls' == cachedDecls
+  return $ if null errors' && null errors && decls' == cachedDecls
     then NotChanged
     else HasChanged
   where
diff --git a/rzk/src/Rzk/TypeCheck.hs b/rzk/src/Rzk/TypeCheck.hs
index c5a307e12..027c1acd7 100644
--- a/rzk/src/Rzk/TypeCheck.hs
+++ b/rzk/src/Rzk/TypeCheck.hs
@@ -5,8 +5,6 @@
 {-# LANGUAGE LambdaCase           #-}
 {-# LANGUAGE OverloadedStrings    #-}
 {-# LANGUAGE RecordWildCards      #-}
-{-# LANGUAGE TupleSections        #-}
-{-# LANGUAGE TypeSynonymInstances #-}
 module Rzk.TypeCheck where
 
 import           Control.Applicative      ((<|>))