diff --git a/package.json b/package.json
index 8fa804ee2..1368f2144 100644
--- a/package.json
+++ b/package.json
@@ -29,6 +29,7 @@
     "workspaceContains:**/compile_commands.json",
     "workspaceContains:**/compile_flags.txt",
     "workspaceContains:**/buildServer.json",
+    "workspaceContains:**/.bsp/*.json",
     "onDebugResolve:swift-lldb",
     "onDebugResolve:swift"
   ],
diff --git a/src/utilities/filesystem.ts b/src/utilities/filesystem.ts
index 9aeeeab7c..b5a80c335 100644
--- a/src/utilities/filesystem.ts
+++ b/src/utilities/filesystem.ts
@@ -48,6 +48,19 @@ export async function fileExists(...pathComponents: string[]): Promise<boolean>
     }
 }
 
+/**
+ * Checks if a folder exists at the supplied path.
+ * @param pathComponents The folder path to check for existence
+ * @returns Whether or not the folder exists at the path
+ */
+export async function folderExists(...pathComponents: string[]): Promise<boolean> {
+    try {
+        return (await fs.stat(path.join(...pathComponents))).isDirectory();
+    } catch (e) {
+        return false;
+    }
+}
+
 /**
  * Return whether a file/folder is inside a folder.
  * @param subpath child file/folder
diff --git a/src/utilities/workspace.ts b/src/utilities/workspace.ts
index 27ae76734..182dc923d 100644
--- a/src/utilities/workspace.ts
+++ b/src/utilities/workspace.ts
@@ -16,7 +16,7 @@ import * as path from "path";
 import { basename } from "path";
 import * as vscode from "vscode";
 
-import { globDirectory, pathExists } from "./filesystem";
+import { folderExists, globDirectory, pathExists } from "./filesystem";
 import { Version } from "./version";
 
 export async function searchForPackages(
@@ -28,7 +28,7 @@ export async function searchForPackages(
     const folders: Array<vscode.Uri> = [];
 
     async function search(folder: vscode.Uri) {
-        // add folder if Package.swift/compile_commands.json/compile_flags.txt/buildServer.json exists
+        // add folder if Package.swift/compile_commands.json/compile_flags.txt/buildServer.json/.bsp exists
         if (await isValidWorkspaceFolder(folder.fsPath, disableSwiftPMIntegration, swiftVersion)) {
             folders.push(folder);
         }
@@ -38,8 +38,18 @@ export async function searchForPackages(
         }
 
         await globDirectory(folder, { onlyDirectories: true }).then(async entries => {
+            const skipFolders = new Set<string>([
+                ".",
+                ".build",
+                "Packages",
+                "out",
+                "bazel-out",
+                "bazel-bin",
+            ]);
+
             for (const entry of entries) {
-                if (basename(entry) !== "." && basename(entry) !== "Packages") {
+                const base = basename(entry);
+                if (!skipFolders.has(base)) {
                     await search(vscode.Uri.file(entry));
                 }
             }
@@ -67,7 +77,7 @@ export async function hasBSPConfigurationFile(
         const bspStat = await fs.stat(bspDir).catch(() => undefined);
         if (bspStat && bspStat.isDirectory()) {
             const files = await fs.readdir(bspDir).catch(() => []);
-            if (files.some((f: string) => f.endsWith(".json"))) {
+            if (files.some(f => f.endsWith(".json"))) {
                 return true;
             }
         }
@@ -94,11 +104,11 @@ export async function isValidWorkspaceFolder(
         return true;
     }
 
-    if (await pathExists(folder, "build")) {
+    if (await folderExists(folder, "build")) {
         return true;
     }
 
-    if (await pathExists(folder, "out")) {
+    if (await folderExists(folder, "out")) {
         return true;
     }