diff --git a/compiler/qsc/src/interpret.rs b/compiler/qsc/src/interpret.rs
index 8ce79fb793..bdad76328f 100644
--- a/compiler/qsc/src/interpret.rs
+++ b/compiler/qsc/src/interpret.rs
@@ -359,10 +359,13 @@ impl Interpreter {
     ) -> InterpretResult {
         let label = self.next_line_label();
 
-        let increment = self
+        let mut increment = self
             .compiler
             .compile_fragments_fail_fast(&label, fragments)
             .map_err(into_errors)?;
+        // Clear the entry expression, as we are evaluating fragments and a fragment with a `@EntryPoint` attribute
+        // should not change what gets executed.
+        increment.clear_entry();
 
         self.eval_increment(receiver, increment)
     }
diff --git a/compiler/qsc_frontend/src/incremental.rs b/compiler/qsc_frontend/src/incremental.rs
index ea680a30eb..ffef95ad4f 100644
--- a/compiler/qsc_frontend/src/incremental.rs
+++ b/compiler/qsc_frontend/src/incremental.rs
@@ -52,6 +52,12 @@ pub struct Increment {
     pub hir: hir::Package,
 }
 
+impl Increment {
+    pub fn clear_entry(&mut self) {
+        self.hir.entry = None;
+    }
+}
+
 impl Compiler {
     /// Creates a new compiler.
     pub fn new(
diff --git a/compiler/qsc_passes/src/entry_point.rs b/compiler/qsc_passes/src/entry_point.rs
index 28c0df81d7..c2b745711c 100644
--- a/compiler/qsc_passes/src/entry_point.rs
+++ b/compiler/qsc_passes/src/entry_point.rs
@@ -4,6 +4,8 @@
 #[cfg(test)]
 mod tests;
 
+use crate::PackageType;
+
 use super::Error as PassErr;
 use miette::Diagnostic;
 use qsc_data_structures::span::Span;
@@ -44,13 +46,14 @@ pub enum Error {
 pub(super) fn generate_entry_expr(
     package: &mut Package,
     assigner: &mut Assigner,
+    package_type: PackageType,
 ) -> Vec<super::Error> {
     if package.entry.is_some() {
         return vec![];
     }
     let callables = get_callables(package);
 
-    match create_entry_from_callables(assigner, callables) {
+    match create_entry_from_callables(assigner, callables, package_type) {
         Ok(expr) => {
             package.entry = Some(expr);
             vec![]
@@ -62,6 +65,7 @@ pub(super) fn generate_entry_expr(
 fn create_entry_from_callables(
     assigner: &mut Assigner,
     callables: Vec<(&CallableDecl, LocalItemId)>,
+    package_type: PackageType,
 ) -> Result<Expr, Vec<super::Error>> {
     if callables.len() == 1 {
         let ep = callables[0].0;
@@ -110,7 +114,12 @@ fn create_entry_from_callables(
             Err(vec![PassErr::EntryPoint(Error::Args(ep.input.span))])
         }
     } else if callables.is_empty() {
-        Err(vec![PassErr::EntryPoint(Error::NotFound)])
+        if package_type == PackageType::Exe {
+            Err(vec![PassErr::EntryPoint(Error::NotFound)])
+        } else {
+            // For libraries, no entry point is required. Leave the entry expression empty and return no errors.
+            Err(Vec::new())
+        }
     } else {
         Err(callables
             .into_iter()
diff --git a/compiler/qsc_passes/src/entry_point/tests.rs b/compiler/qsc_passes/src/entry_point/tests.rs
index c40c5e3878..41d8b9ec9b 100644
--- a/compiler/qsc_passes/src/entry_point/tests.rs
+++ b/compiler/qsc_passes/src/entry_point/tests.rs
@@ -3,7 +3,7 @@
 
 #![allow(clippy::needless_raw_string_hashes)]
 
-use crate::entry_point::generate_entry_expr;
+use crate::{entry_point::generate_entry_expr, PackageType};
 use expect_test::{expect, Expect};
 use indoc::indoc;
 use qsc_data_structures::{language_features::LanguageFeatures, target::TargetCapabilityFlags};
@@ -20,7 +20,7 @@ fn check(file: &str, expr: &str, expect: &Expect) {
     );
     assert!(unit.errors.is_empty(), "{:?}", unit.errors);
 
-    let errors = generate_entry_expr(&mut unit.package, &mut unit.assigner);
+    let errors = generate_entry_expr(&mut unit.package, &mut unit.assigner, PackageType::Exe);
     if errors.is_empty() {
         expect.assert_eq(
             &unit
diff --git a/compiler/qsc_passes/src/lib.rs b/compiler/qsc_passes/src/lib.rs
index f142605c9c..a9d58e9c5d 100644
--- a/compiler/qsc_passes/src/lib.rs
+++ b/compiler/qsc_passes/src/lib.rs
@@ -105,13 +105,8 @@ impl PassContext {
         let conjugate_errors = conjugate_invert::invert_conjugate_exprs(core, package, assigner);
         Validator::default().visit_package(package);
 
-        let entry_point_errors = if package_type == PackageType::Exe {
-            let entry_point_errors = generate_entry_expr(package, assigner);
-            Validator::default().visit_package(package);
-            entry_point_errors
-        } else {
-            Vec::new()
-        };
+        let entry_point_errors = generate_entry_expr(package, assigner, package_type);
+        Validator::default().visit_package(package);
 
         LoopUni { core, assigner }.visit_package(package);
         Validator::default().visit_package(package);
diff --git a/language_service/src/state.rs b/language_service/src/state.rs
index 6afd2737a2..4a3aaa49aa 100644
--- a/language_service/src/state.rs
+++ b/language_service/src/state.rs
@@ -69,7 +69,7 @@ impl Default for Configuration {
     fn default() -> Self {
         Self {
             target_profile: Profile::Unrestricted,
-            package_type: PackageType::Exe,
+            package_type: PackageType::Lib,
             language_features: LanguageFeatures::default(),
             lints_config: Vec::default(),
         }
diff --git a/language_service/src/tests.rs b/language_service/src/tests.rs
index 9b633c5971..fde96a5f39 100644
--- a/language_service/src/tests.rs
+++ b/language_service/src/tests.rs
@@ -29,22 +29,7 @@ async fn single_document() {
         &mut received_errors.borrow_mut(),
         "foo.qs",
         &(expect![[r#"
-            [
-                (
-                    "foo.qs",
-                    Some(
-                        1,
-                    ),
-                    [
-                        Pass(
-                            EntryPoint(
-                                NotFound,
-                            ),
-                        ),
-                    ],
-                    [],
-                ),
-            ]
+            []
         "#]]),
         &(expect![[r#"
             SourceMap {
@@ -78,22 +63,7 @@ async fn single_document_update() {
         &mut received_errors.borrow_mut(),
         "foo.qs",
         &(expect![[r#"
-            [
-                (
-                    "foo.qs",
-                    Some(
-                        1,
-                    ),
-                    [
-                        Pass(
-                            EntryPoint(
-                                NotFound,
-                            ),
-                        ),
-                    ],
-                    [],
-                ),
-            ]
+            []
         "#]]),
         &(expect![[r#"
             SourceMap {
@@ -124,16 +94,7 @@ async fn single_document_update() {
         &mut received_errors.borrow_mut(),
         "foo.qs",
         &(expect![[r#"
-            [
-                (
-                    "foo.qs",
-                    Some(
-                        1,
-                    ),
-                    [],
-                    [],
-                ),
-            ]
+            []
         "#]]),
         &(expect![[r#"
             SourceMap {
@@ -177,20 +138,7 @@ async fn document_in_project() {
         &mut received_errors.borrow_mut(),
         "project/src/this_file.qs",
         &expect![[r#"
-            [
-                (
-                    "project/qsharp.json",
-                    None,
-                    [
-                        Pass(
-                            EntryPoint(
-                                NotFound,
-                            ),
-                        ),
-                    ],
-                    [],
-                ),
-            ]
+            []
         "#]],
         &expect![[r#"
             SourceMap {
diff --git a/npm/qsharp/test/basics.js b/npm/qsharp/test/basics.js
index 9eee53277c..4e5178e7f0 100644
--- a/npm/qsharp/test/basics.js
+++ b/npm/qsharp/test/basics.js
@@ -597,6 +597,10 @@ test("language service diagnostics - web worker", async () => {
 
 test("language service configuration update", async () => {
   const languageService = getLanguageServiceWorker();
+
+  // Set the configuration to expect an entry point.
+  await languageService.updateConfiguration({ packageType: "exe" });
+
   let actualMessages = [];
   languageService.addEventListener("diagnostics", (event) => {
     actualMessages.push({
diff --git a/vscode/src/debugger/session.ts b/vscode/src/debugger/session.ts
index 95ab26253f..26a85a12cf 100644
--- a/vscode/src/debugger/session.ts
+++ b/vscode/src/debugger/session.ts
@@ -45,7 +45,9 @@ import { isPanelOpen } from "../webviewPanel";
 import { FullProgramConfig } from "../programConfig";
 
 const ErrorProgramHasErrors =
-  "program contains compile errors(s): cannot run. See debug console for more details.";
+  "The Q# program contains one or more compile errors and cannot run. See debug console for more details.";
+const ErrorProgramMissingEntry =
+  "The Q# program does not contain an entry point and cannot run. See debug console for more details.";
 const SimulationCompleted = "Q# simulation completed.";
 const ConfigurationDelayMS = 1000;
 
@@ -259,7 +261,9 @@ export class QscDebugSession extends LoggingDebugSession {
       this.writeToDebugConsole(this.failureMessage);
       this.sendErrorResponse(response, {
         id: -1,
-        format: ErrorProgramHasErrors,
+        format: this.failureMessage.includes("Qsc.EntryPoint.NotFound")
+          ? ErrorProgramMissingEntry
+          : ErrorProgramHasErrors,
         showUser: true,
       });
       return;