diff --git a/src/languageservice/services/yamlCompletion.ts b/src/languageservice/services/yamlCompletion.ts
index 061c1b4d8..a5f5a6042 100644
--- a/src/languageservice/services/yamlCompletion.ts
+++ b/src/languageservice/services/yamlCompletion.ts
@@ -150,7 +150,7 @@ export class YAMLCompletion extends JSONCompletion {
         }
 
         currentDoc.currentDocIndex = currentDocIndex;
-        return this.schemaService.getSchemaForResource(document.uri, currentDoc).then(schema => {
+        return this.schemaService.getSchemaForResource(document, currentDoc).then(schema => {
 
             if (!schema) {
                 return Promise.resolve(result);
diff --git a/src/languageservice/services/yamlSchemaService.ts b/src/languageservice/services/yamlSchemaService.ts
index 1d1e0c682..550a08dba 100644
--- a/src/languageservice/services/yamlSchemaService.ts
+++ b/src/languageservice/services/yamlSchemaService.ts
@@ -14,6 +14,7 @@ import { URI } from 'vscode-uri';
 
 import * as nls from 'vscode-nls';
 import { convertSimple2RegExpPattern } from '../utils/strings';
+import { TextDocument } from 'vscode-languageserver';
 const localize = nls.loadMessageBundle();
 
 export declare type CustomSchemaProvider = (uri: string) => Thenable<string | string[]>;
@@ -214,11 +215,25 @@ export class YAMLSchemaService extends JSONSchemaService {
     }
     //tslint:enable
 
-    public getSchemaForResource (resource: string, doc = undefined): Thenable<ResolvedSchema> {
+    public getSchemaForResource (textDocument: TextDocument, doc = undefined): Thenable<ResolvedSchema> {
+        const resource: string = textDocument.uri;
         const resolveSchema = () => {
-
+            
             const seen: { [schemaId: string]: boolean } = Object.create(null);
             const schemas: string[] = [];
+            
+            const wholeText = textDocument.getText();
+            const yamlModelineIndex = wholeText.indexOf('# yaml-language-server:');
+            if (yamlModelineIndex != -1) {
+                const modelineContent = wholeText.substring(yamlModelineIndex, wholeText.indexOf('\n', yamlModelineIndex + '# yaml-language-server:'.length));
+                const indexOfJsonSchemaParameter = modelineContent.indexOf('$schema=');
+                if(modelineContent.indexOf('$schema=') != -1){
+                    const schema = modelineContent.substring(indexOfJsonSchemaParameter + '$schema='.length);
+                    schemas.push(schema);
+                    seen[schema] = true;
+                }
+            }
+            
             for (const entry of this.filePatternAssociations) {
                 if (entry.matchesPattern(resource)) {
                     for (const schemaId of entry.getURIs()) {
diff --git a/test/autoCompletion.withschemainfile.test.ts b/test/autoCompletion.withschemainfile.test.ts
new file mode 100644
index 000000000..f4860beec
--- /dev/null
+++ b/test/autoCompletion.withschemainfile.test.ts
@@ -0,0 +1,54 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Red Hat. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+import { TextDocument } from 'vscode-languageserver';
+import { getLanguageService } from '../src/languageservice/yamlLanguageService';
+import { toFsPath, schemaRequestService, workspaceContext }  from './utils/testHelper';
+import assert = require('assert');
+import path = require('path');
+
+const languageService = getLanguageService(schemaRequestService, workspaceContext, [], null);
+
+const languageSettings = {
+    schemas: [],
+    completion: true
+};
+
+const uri = toFsPath(path.join(__dirname, './fixtures/testArrayMaxProperties.json'));
+languageService.configure(languageSettings);
+
+suite('Auto Completion Tests with schema defined in file', () => {
+
+    describe('yamlCompletion with schema defined in file', function () {
+
+        describe('doComplete', function () {
+
+            function setup(content: string) {
+                return TextDocument.create('file://~/Desktop/vscode-k8s/test.yaml', 'yaml', 0, content);
+            }
+
+            function parseSetup(content: string, position) {
+                const testTextDocument = setup(content);
+                return languageService.doComplete(testTextDocument, testTextDocument.positionAt(position), false);
+            }
+
+            it('Provide completion from schema decalred in file', done => {
+                const content = `# yaml-language-server: $schema=${uri}\n- `;
+                const completion = parseSetup(content, content.length);
+                completion.then(function (result) {
+                    assert.equal(result.items.length, 3);
+                }).then(done, done);
+            });
+            
+            it('Provide completion from schema declared in file overriding schemastore ', done => {
+                
+            });
+            
+            it('Provide completion from schema declared in file overriding yaml.schemas ', done => {
+                
+            });
+
+        });
+    });
+});