diff --git a/.gitmodules b/.gitmodules
new file mode 100644
index 000000000000..a57bae098756
--- /dev/null
+++ b/.gitmodules
@@ -0,0 +1,4 @@
+[submodule "typeshed"]
+	path = typeshed
+	url = https://github.com/python/typeshed.git
+	branch = master
\ No newline at end of file
diff --git a/package.json b/package.json
index 854b86447122..4bd7fa61c640 100644
--- a/package.json
+++ b/package.json
@@ -1173,6 +1173,15 @@
                     "description": "Controls appearance of methods with double underscores in the completion list.",
                     "scope": "resource"
                 },
+                "python.autoComplete.typeshedPaths": {
+                    "type": "array",
+                    "items": {
+                        "type": "string"
+                    },
+                    "default": [],
+                    "description": "Specifies paths to local typeshed repository clone(s) for the Python language server.",
+                    "scope": "resource"
+                },
                 "python.disableInstallationCheck": {
                     "type": "boolean",
                     "default": false,
diff --git a/src/client/activation/analysis.ts b/src/client/activation/analysis.ts
index 536530d74050..01d2e911e902 100644
--- a/src/client/activation/analysis.ts
+++ b/src/client/activation/analysis.ts
@@ -190,7 +190,7 @@ export class AnalysisExtensionActivator implements IExtensionActivator {
             const interpreterDataService = new InterpreterDataService(this.context, this.services);
             interpreterData = await interpreterDataService.getInterpreterData();
         } catch (ex) {
-            this.appShell.showErrorMessage('Unable to determine path to the Python interpreter. IntelliSense will be limited.');
+            this.appShell.showWarningMessage('Unable to determine path to the Python interpreter. IntelliSense will be limited.');
         }
 
         this.interpreterHash = interpreterData ? interpreterData.hash : '';
@@ -204,13 +204,16 @@ export class AnalysisExtensionActivator implements IExtensionActivator {
             properties['PrefixPath'] = interpreterData.prefix;
         }
 
-        let searchPaths = interpreterData ? interpreterData.searchPaths : '';
+        let searchPathsString = interpreterData ? interpreterData.searchPaths : '';
+        let typeshedPaths: string[] = [];
+
         const settings = this.configuration.getSettings();
         if (settings.autoComplete) {
             const extraPaths = settings.autoComplete.extraPaths;
             if (extraPaths && extraPaths.length > 0) {
-                searchPaths = `${searchPaths};${extraPaths.join(';')}`;
+                searchPathsString = `${searchPathsString};${extraPaths.join(';')}`;
             }
+            typeshedPaths = settings.autoComplete.typeshedPaths;
         }
 
         // tslint:disable-next-line:no-string-literal
@@ -219,9 +222,13 @@ export class AnalysisExtensionActivator implements IExtensionActivator {
         // Make sure paths do not contain multiple slashes so file URIs
         // in VS Code (Node.js) and in the language server (.NET) match.
         // Note: for the language server paths separator is always ;
-        searchPaths = searchPaths.split(path.delimiter).map(p => path.normalize(p)).join(';');
+        const searchPaths = searchPathsString.split(path.delimiter).map(p => path.normalize(p));
         // tslint:disable-next-line:no-string-literal
-        properties['SearchPaths'] = `${searchPaths};${pythonPath}`;
+        properties['SearchPaths'] = `${searchPaths.join(';')};${pythonPath}`;
+
+        if (!typeshedPaths || typeshedPaths.length === 0) {
+            typeshedPaths = [path.join(this.context.extensionPath, 'typeshed')];
+        }
 
         const selector = [{ language: PYTHON, scheme: 'file' }];
         const excludeFiles = this.getExcludedFiles();
@@ -245,6 +252,8 @@ export class AnalysisExtensionActivator implements IExtensionActivator {
                     trimDocumentationText: false,
                     maxDocumentationTextLength: 0
                 },
+                searchPaths,
+                typeStubSearchPaths: typeshedPaths,
                 asyncStartup: true,
                 excludeFiles: excludeFiles,
                 testEnvironment: isTestExecution()
diff --git a/src/client/common/configSettings.ts b/src/client/common/configSettings.ts
index d15bfefee183..4c55c4a2b3a3 100644
--- a/src/client/common/configSettings.ts
+++ b/src/client/common/configSettings.ts
@@ -233,7 +233,8 @@ export class PythonSettings extends EventEmitter implements IPythonSettings {
             extraPaths: [],
             addBrackets: false,
             preloadModules: [],
-            showAdvancedMembers: false
+            showAdvancedMembers: false,
+            typeshedPaths: []
         };
 
         // tslint:disable-next-line:no-backbone-get-set-outside-model no-non-null-assertion
diff --git a/src/client/common/types.ts b/src/client/common/types.ts
index 733f0ffbee84..c671ae4e3bd5 100644
--- a/src/client/common/types.ts
+++ b/src/client/common/types.ts
@@ -221,6 +221,7 @@ export interface IAutoCompleteSettings {
     readonly extraPaths: string[];
     readonly preloadModules: string[];
     readonly showAdvancedMembers: boolean;
+    readonly typeshedPaths: string[];
 }
 export interface IWorkspaceSymbolSettings {
     readonly enabled: boolean;
@@ -237,6 +238,7 @@ export interface ITerminalSettings {
 }
 export interface IPythonAnalysisEngineSettings {
     readonly showAdvancedMembers: boolean;
+    readonly typeshedPaths: string[];
 }
 
 export const IConfigurationService = Symbol('IConfigurationService');
diff --git a/typeshed b/typeshed
new file mode 160000
index 000000000000..95eff73ab209
--- /dev/null
+++ b/typeshed
@@ -0,0 +1 @@
+Subproject commit 95eff73ab2092f2c3158198d404a921447172418