diff --git a/src/harness/unittests/tsserverProjectSystem.ts b/src/harness/unittests/tsserverProjectSystem.ts
index 3d244fd30f8ba..04b848e7cdf71 100644
--- a/src/harness/unittests/tsserverProjectSystem.ts
+++ b/src/harness/unittests/tsserverProjectSystem.ts
@@ -3168,7 +3168,7 @@ namespace ts.projectSystem {
             serverEventManager.checkEventCountOfType("configFileDiag", 3);
         });
 
-        it("are generated when the config file doesnot include file opened but has errors", () => {
+        it("are not generated when the config file doesnot include file opened and config file has errors", () => {
             const serverEventManager = new TestServerEventManager();
             const file = {
                 path: "/a/b/app.ts",
@@ -3195,14 +3195,7 @@ namespace ts.projectSystem {
                 eventHandler: serverEventManager.handler
             });
             openFilesForSession([file2], session);
-            serverEventManager.checkEventCountOfType("configFileDiag", 1);
-            for (const event of serverEventManager.events) {
-                if (event.eventName === "configFileDiag") {
-                    assert.equal(event.data.configFileName, configFile.path);
-                    assert.equal(event.data.triggerFile, file2.path);
-                    return;
-                }
-            }
+            serverEventManager.checkEventCountOfType("configFileDiag", 0);
         });
 
         it("are not generated when the config file doesnot include file opened and doesnt contain any errors", () => {
diff --git a/src/server/editorServices.ts b/src/server/editorServices.ts
index fd2297473908a..765a31884437d 100644
--- a/src/server/editorServices.ts
+++ b/src/server/editorServices.ts
@@ -1933,12 +1933,10 @@ namespace ts.server {
             // At this point if file is part of any any configured or external project, then it would be present in the containing projects
             // So if it still doesnt have any containing projects, it needs to be part of inferred project
             if (info.isOrphan()) {
-                // Since the file isnt part of configured project,
-                // report config file and its error only if config file found had errors (and hence may be didnt include the file)
-                if (sendConfigFileDiagEvent && !project.getAllProjectErrors().length) {
-                    configFileName = undefined;
-                    sendConfigFileDiagEvent = false;
-                }
+                // Since the file isnt part of configured project, do not send config file event
+                configFileName = undefined;
+                sendConfigFileDiagEvent = false;
+
                 this.assignOrphanScriptInfoToInferredProject(info, projectRootPath);
             }
             this.addToListOfOpenFiles(info);