diff --git a/package.json b/package.json
index 148dcb1..b2d176e 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "update-ts-references",
-  "version": "3.4.0",
+  "version": "3.5.0",
   "description": "Updates TypeScript references automatically while using workspaces",
   "bin": "src/index.js",
   "scripts": {
@@ -39,6 +39,7 @@
   "license": "MIT",
   "keywords": [
     "typescript",
+    "intellisense",
     "project references",
     "tool",
     "util",
@@ -49,7 +50,8 @@
     "monorepo",
     "packages",
     "npm",
-    "automatic"
+    "automatic",
+    "update"
   ],
   "repository": {
     "type": "git",
diff --git a/src/update-ts-references.js b/src/update-ts-references.js
index 53168c7..33286ff 100644
--- a/src/update-ts-references.js
+++ b/src/update-ts-references.js
@@ -225,11 +225,13 @@ const updateTsConfig = (
     }
 };
 
-function getPathsFromReferences(references) {
-    return references.reduce((paths, ref) => ({
+function getPathsFromReferences(references, tsconfigMap) {
+    return references.reduce((paths, ref) => {
+       const rootFolder= tsconfigMap[ref.name]?.compilerOptions?.rootDir  ?? 'src'
+        return {
         ...paths,
-        [`${ref.name}`]: [`${ref.folder}/src`]
-    }), {});
+        [`${ref.name}`]: [`${ref.folder}${rootFolder === '.' ? '' : `/${rootFolder}`}`],
+    }}, {});
 }
 
 const execute = async ({
@@ -305,9 +307,26 @@ const execute = async ({
 
     let rootReferences = [];
     let rootPaths = [];
+    let tsconfigMap = {}
     packagesMap.forEach((packageEntry, packageName) => {
         const detectedConfig = detectTSConfig(packageEntry.packageDir, configName, packageEntry.hasTsEntry && createTsConfig, cwd)
 
+        if (detectedConfig) {
+            const compilerOptions = parse(fs.readFileSync(path.join(packageEntry.packageDir, detectedConfig)).toString()).compilerOptions
+
+            tsconfigMap = {
+                ...tsconfigMap,
+                [packageName]: {
+                    detectedConfig,
+                    compilerOptions
+                }
+            }
+        }
+    });
+
+    packagesMap.forEach((packageEntry, packageName) => {
+        const detectedConfig = tsconfigMap[packageName]?.detectedConfig
+
         if (detectedConfig) {
             rootReferences.push({
                 name: packageName,
@@ -322,7 +341,7 @@ const execute = async ({
                 verbose
             ) || []).map(ensurePosixPathStyle);
 
-            const paths = getPathsFromReferences(references)
+            const paths = getPathsFromReferences(references, tsconfigMap)
 
             if (verbose) {
                 console.log(`references of ${packageName}`, references);
@@ -350,7 +369,7 @@ const execute = async ({
     });
 
     rootReferences = (rootReferences || []).map(ensurePosixPathStyle);
-    rootPaths = getPathsFromReferences((rootPaths || []).map(ensurePosixPathStyle))
+    rootPaths = getPathsFromReferences((rootReferences || []).map(ensurePosixPathStyle), tsconfigMap)
 
     if (verbose) {
         console.log('rootReferences', rootReferences);
diff --git a/test-scenarios/ts-paths/workspace-b/tsconfig.json b/test-scenarios/ts-paths/workspace-b/tsconfig.json
index 1dd8e13..57ff9da 100644
--- a/test-scenarios/ts-paths/workspace-b/tsconfig.json
+++ b/test-scenarios/ts-paths/workspace-b/tsconfig.json
@@ -1,6 +1,6 @@
 {
   "compilerOptions": {
     "outDir": "dist",
-    "rootDir": "src"
+    "rootDir": "."
   }
 }
diff --git a/tests/update-ts-references.test.js b/tests/update-ts-references.test.js
index 1746c9a..f7c76a8 100644
--- a/tests/update-ts-references.test.js
+++ b/tests/update-ts-references.test.js
@@ -228,7 +228,7 @@ test('create paths mappings ', async () => {
         {
             compilerOptions: {
                 composite: true,
-                paths: { "foo-c": ["utils/foos/foo-c/src"]   }
+                paths: { "foo-a": ["utils/foos/foo-a/src"] ,"foo-b": ["utils/foos/foo-b/src"] ,"workspace-a": ["workspace-a/src"],"workspace-b": ["workspace-b"]   }
             },
             files: [],
             references: [
@@ -253,7 +253,7 @@ test('create paths mappings ', async () => {
         {
             compilerOptions: {
                 ...compilerOptions,
-                paths: {"foo-a": ["../utils/foos/foo-a/src"], "workspace-b": ["../workspace-b/src"]}
+                paths: {"foo-a": ["../utils/foos/foo-a/src"], "workspace-b": ["../workspace-b"]}
             },
             references: [
                 {
@@ -269,7 +269,7 @@ test('create paths mappings ', async () => {
     const wsBTsConfig = [
         './workspace-b',
         {
-            compilerOptions: {...compilerOptions, paths: {"foo-b": ["../utils/foos/foo-b/src"]}},
+            compilerOptions: {...compilerOptions,rootDir: '.', paths: {"foo-b": ["../utils/foos/foo-b/src"]}},
             references: [
                 {
                     path: '../utils/foos/foo-b',
diff --git a/tests/update-ts-references.yaml.test.js b/tests/update-ts-references.yaml.test.js
index 731d737..c0870e1 100644
--- a/tests/update-ts-references.yaml.test.js
+++ b/tests/update-ts-references.yaml.test.js
@@ -184,7 +184,8 @@ test('receive options via the config', async () => {
         {
             compilerOptions: {
                 composite: true,
-            },
+                paths:{"workspace-a": ["workspace-a/src"],"workspace-b": ["workspace-b/src"]}
+},
             files: [],
             references: [
                 {
@@ -240,6 +241,7 @@ test('receive options for a different usecase', async () => {
         {
             compilerOptions: {
                 composite: true,
+                paths:{"workspace-a": ["workspace-a/src"],"workspace-b": ["workspace-b/src"]}
             },
             files: [],
             references: [