diff --git a/packages/typescript/internal/ts_project.bzl b/packages/typescript/internal/ts_project.bzl
index 28d76c0317..a216aa6d95 100644
--- a/packages/typescript/internal/ts_project.bzl
+++ b/packages/typescript/internal/ts_project.bzl
@@ -161,16 +161,7 @@ def _ts_project_impl(ctx):
     inputs.extend(depset(transitive = deps_depsets).to_list())
 
     # Gather TsConfig info from both the direct (tsconfig) and indirect (extends) attribute
-    tsconfig_inputs = []
-    if TsConfigInfo in ctx.attr.tsconfig:
-        tsconfig_inputs.extend(ctx.attr.tsconfig[TsConfigInfo].deps)
-    else:
-        tsconfig_inputs.append(ctx.file.tsconfig)
-    if hasattr(ctx.attr, "extends") and ctx.attr.extends:
-        if TsConfigInfo in ctx.attr.extends:
-            tsconfig_inputs.extend(ctx.attr.extends[TsConfigInfo].deps)
-        else:
-            tsconfig_inputs.extend(ctx.attr.extends.files.to_list())
+    tsconfig_inputs = _tsconfig_inputs(ctx)
     inputs.extend(tsconfig_inputs)
 
     # We do not try to predeclare json_outs, because their output locations generally conflict with their path in the source tree.
@@ -249,6 +240,20 @@ def _ts_project_impl(ctx):
 
     return providers
 
+def _tsconfig_inputs(ctx):
+    """Returns all transitively referenced tsconfig files from "tsconfig" and "extends" attributes."""
+    inputs = []
+    if TsConfigInfo in ctx.attr.tsconfig:
+        inputs.extend(ctx.attr.tsconfig[TsConfigInfo].deps)
+    else:
+        inputs.append(ctx.file.tsconfig)
+    if hasattr(ctx.attr, "extends") and ctx.attr.extends:
+        if TsConfigInfo in ctx.attr.extends:
+            inputs.extend(ctx.attr.extends[TsConfigInfo].deps)
+        else:
+            inputs.extend(ctx.attr.extends.files.to_list())
+    return inputs
+
 ts_project = rule(
     implementation = _ts_project_impl,
     attrs = dict(_ATTRS, **_OUTPUTS),
@@ -271,11 +276,7 @@ def _validate_options_impl(ctx):
         ts_build_info_file = ctx.attr.ts_build_info_file,
     ).to_json()])
 
-    inputs = ctx.files.extends[:]
-    if TsConfigInfo in ctx.attr.tsconfig:
-        inputs.extend(ctx.attr.tsconfig[TsConfigInfo].deps)
-    else:
-        inputs.append(ctx.file.tsconfig)
+    inputs = _tsconfig_inputs(ctx)
 
     run_node(
         ctx,
diff --git a/packages/typescript/test/ts_project/extends_chain/BUILD.bazel b/packages/typescript/test/ts_project/extends_chain/BUILD.bazel
new file mode 100644
index 0000000000..ead12d3b7e
--- /dev/null
+++ b/packages/typescript/test/ts_project/extends_chain/BUILD.bazel
@@ -0,0 +1,8 @@
+load("//packages/typescript:index.bzl", "ts_config")
+
+ts_config(
+    name = "tsconfig_node",
+    src = "tsconfig.node.json",
+    visibility = [":__subpackages__"],
+    deps = ["tsconfig.base.json"],
+)
diff --git a/packages/typescript/test/ts_project/extends_chain/main/BUILD.bazel b/packages/typescript/test/ts_project/extends_chain/main/BUILD.bazel
new file mode 100644
index 0000000000..5a16b5d0a9
--- /dev/null
+++ b/packages/typescript/test/ts_project/extends_chain/main/BUILD.bazel
@@ -0,0 +1,8 @@
+load("//packages/typescript:index.bzl", "ts_project")
+
+ts_project(
+    name = "main",
+    srcs = ["main.ts"],
+    extends = "//packages/typescript/test/ts_project/extends_chain:tsconfig_node",
+    tsconfig = ":tsconfig.json",
+)
diff --git a/packages/typescript/test/ts_project/extends_chain/main/main.ts b/packages/typescript/test/ts_project/extends_chain/main/main.ts
new file mode 100644
index 0000000000..b9d3e23cbf
--- /dev/null
+++ b/packages/typescript/test/ts_project/extends_chain/main/main.ts
@@ -0,0 +1 @@
+console.log('Hello world!');
diff --git a/packages/typescript/test/ts_project/extends_chain/main/tsconfig.json b/packages/typescript/test/ts_project/extends_chain/main/tsconfig.json
new file mode 100644
index 0000000000..5aae8b926c
--- /dev/null
+++ b/packages/typescript/test/ts_project/extends_chain/main/tsconfig.json
@@ -0,0 +1,3 @@
+{
+  "extends": "../tsconfig.node.json"
+}
diff --git a/packages/typescript/test/ts_project/extends_chain/tsconfig.base.json b/packages/typescript/test/ts_project/extends_chain/tsconfig.base.json
new file mode 100644
index 0000000000..da332ac9d2
--- /dev/null
+++ b/packages/typescript/test/ts_project/extends_chain/tsconfig.base.json
@@ -0,0 +1,6 @@
+{
+  "compilerOptions": {
+    "noImplicitAny": true,
+    "types": []
+  }
+}
diff --git a/packages/typescript/test/ts_project/extends_chain/tsconfig.node.json b/packages/typescript/test/ts_project/extends_chain/tsconfig.node.json
new file mode 100644
index 0000000000..b27ad182ad
--- /dev/null
+++ b/packages/typescript/test/ts_project/extends_chain/tsconfig.node.json
@@ -0,0 +1,7 @@
+{
+  "extends": "./tsconfig.base.json",
+  "compilerOptions": {
+    "moduleResolution": "Node",
+    "module": "commonjs"
+  }
+}