diff --git a/generators/app/index.js b/generators/app/index.js
index abc22a5..7b5d023 100644
--- a/generators/app/index.js
+++ b/generators/app/index.js
@@ -60,7 +60,7 @@ module.exports = yeoman.generators.Base.extend({
         when: () => folder !== this.packageName
       }, (props) => {
         console.log('quit', props.quit);
-        if (props.quit) {
+        if (props.quit === 'Y') {
           this.log('');
           this.log(`Please create your repo and run ${chalk.green('yo typings') } again.`);
           process.exit(1);
@@ -128,6 +128,10 @@ module.exports = yeoman.generators.Base.extend({
 
   writing: {
     copyFiles() {
+      this.fs.copy(
+        this.templatePath('.vscode/*'),
+        this.destinationPath('.vscode')
+        );
       this.fs.copy(
         this.templatePath('test/*'),
         this.destinationPath('test')
diff --git a/generators/app/templates/.vscode/settings.json b/generators/app/templates/.vscode/settings.json
new file mode 100644
index 0000000..25fa621
--- /dev/null
+++ b/generators/app/templates/.vscode/settings.json
@@ -0,0 +1,3 @@
+{
+  "typescript.tsdk": "node_modules/typescript/lib"
+}
diff --git a/test/app.js b/test/app.js
index 32197d2..5888e93 100644
--- a/test/app.js
+++ b/test/app.js
@@ -9,6 +9,7 @@ describe('generator-typings:app', function () {
     helpers.run(path.join(__dirname, '../generators/app'))
       .withPrompts({
         sourceUri: 'facebook/reactDOM',
+        quit: 'n',
         packageName: 'typed-reactDOM',
         username: 'unional'
       })
@@ -17,6 +18,7 @@ describe('generator-typings:app', function () {
 
   it('creates files', function () {
     assert.file([
+      '.vscode/settings.json',
       'test/test.ts',
       'test/tsconfig.json',
       '.editorconfig',