diff --git a/e2e/__projects__/typescript/package.json b/e2e/__projects__/typescript/package.json
new file mode 100644
index 00000000..d69db841
--- /dev/null
+++ b/e2e/__projects__/typescript/package.json
@@ -0,0 +1,39 @@
+{
+  "name": "typescript",
+  "version": "1.0.0",
+  "main": "index.js",
+  "license": "MIT",
+  "private": true,
+  "scripts": {
+    "test": "jest --no-cache ./sub-project/test.js"
+  },
+  "dependencies": {
+    "vue": "3.0.0-alpha.10"
+  },
+  "devDependencies": {
+    "@babel/core": "^7.2.2",
+    "@babel/preset-env": "^7.2.3",
+    "jest": "^24.0.0"
+  },
+  "jest": {
+    "globals": {
+      "vue-jest": {
+        "tsConfig": "./sub-project/tsconfig.json"
+      }
+    },
+    "moduleFileExtensions": [
+      "js",
+      "json",
+      "vue"
+    ],
+    "transform": {
+      "^.+\\.js$": "babel-jest",
+      "^.+\\.vue$": "../../../lib/index.js"
+    }
+  },
+  "babel": {
+    "presets": [
+      "@babel/env"
+    ]
+  }
+}
diff --git a/e2e/__projects__/typescript/sub-project/components/Basic.vue b/e2e/__projects__/typescript/sub-project/components/Basic.vue
new file mode 100644
index 00000000..7e5a8d1f
--- /dev/null
+++ b/e2e/__projects__/typescript/sub-project/components/Basic.vue
@@ -0,0 +1,48 @@
+<template>
+  <div class="hello">
+    <h1 :class="headingClasses">{{ msg }}</h1>
+  </div>
+</template>
+
+<style module="css">
+.testA {
+  background-color: red;
+}
+</style>
+<style module>
+.testB {
+  background-color: blue;
+}
+</style>
+<style>
+.testC {
+  background-color: blue;
+}
+</style>
+
+<script lang="ts">
+export default {
+  name: 'basic',
+  computed: {
+    headingClasses: function headingClasses() {
+      return {
+        red: this.isCrazy,
+        blue: !this.isCrazy,
+        shadow: this.isCrazy
+      }
+    }
+  },
+  data: function data() {
+    const msg: string = 'Welcome to Your Vue.js App'
+    return {
+      msg,
+      isCrazy: false
+    }
+  },
+  methods: {
+    toggleClass: function toggleClass() {
+      this.isCrazy = !this.isCrazy
+    }
+  }
+}
+</script>
diff --git a/e2e/__projects__/typescript/sub-project/test.js b/e2e/__projects__/typescript/sub-project/test.js
new file mode 100644
index 00000000..e2a326ae
--- /dev/null
+++ b/e2e/__projects__/typescript/sub-project/test.js
@@ -0,0 +1,23 @@
+import { createApp, h } from 'vue'
+
+import Basic from './components/Basic.vue'
+
+function mount(Component, props, slots) {
+  document.getElementsByTagName('html')[0].innerHTML = ''
+  const el = document.createElement('div')
+  el.id = 'app'
+  document.body.appendChild(el)
+  const Parent = {
+    render() {
+      return h(Component, props, slots)
+    }
+  }
+  createApp(Parent).mount(el)
+}
+
+test('processes .vue files', () => {
+  mount(Basic)
+  expect(document.querySelector('h1').textContent).toBe(
+    'Welcome to Your Vue.js App'
+  )
+})
diff --git a/e2e/__projects__/typescript/sub-project/tsconfig.json b/e2e/__projects__/typescript/sub-project/tsconfig.json
new file mode 100644
index 00000000..8073706e
--- /dev/null
+++ b/e2e/__projects__/typescript/sub-project/tsconfig.json
@@ -0,0 +1,20 @@
+{
+  "compilerOptions": {
+    "target": "es5",
+    "lib": ["dom", "es6"],
+    "module": "es2015",
+    "moduleResolution": "node",
+    "types": ["vue-typescript-import-dts", "node"],
+    "isolatedModules": false,
+    "experimentalDecorators": true,
+    "noImplicitAny": true,
+    "noImplicitThis": true,
+    "strictNullChecks": true,
+    "removeComments": true,
+    "emitDecoratorMetadata": true,
+    "suppressImplicitAnyIndexErrors": true,
+    "allowSyntheticDefaultImports": true,
+    "sourceMap": true,
+    "allowJs": true
+  }
+}
diff --git a/lib/utils.js b/lib/utils.js
index d7aa05ac..2949ed21 100644
--- a/lib/utils.js
+++ b/lib/utils.js
@@ -65,7 +65,11 @@ const getBabelOptions = function loadBabelOptions(filename, options = {}) {
 }
 
 const getTsJestConfig = function getTsJestConfig(config) {
-  const isUsingTs = resolveTsConfigSync(process.cwd())
+  const tsConfigPath = path.resolve(
+    process.cwd(),
+    getVueJestConfig(config).tsConfig || ''
+  )
+  const isUsingTs = resolveTsConfigSync(tsConfigPath)
   if (!isUsingTs) {
     return null
   }