diff --git a/pyls/providers/base.py b/pyls/providers/base.py
index 5596bc2f..3e46cd5b 100644
--- a/pyls/providers/base.py
+++ b/pyls/providers/base.py
@@ -1,7 +1,6 @@
 # Copyright 2017 Palantir Technologies, Inc.
 import os
 import jedi
-import sys
 
 
 class BaseProvider(object):
@@ -23,7 +22,7 @@ def jedi_script(self, doc_uri, position=None):
         document = self.workspace.get_document(doc_uri)
 
         path = None
-        sys_path = list(sys.path)  # TODO Load from config
+        sys_path = self.workspace.syspath_for_document(document)
 
         # If we're local, we can add ourselves to Python path and do clevererer things
         if self.workspace.is_local():
diff --git a/pyls/workspace.py b/pyls/workspace.py
index 5de22ce6..b5fd91f6 100644
--- a/pyls/workspace.py
+++ b/pyls/workspace.py
@@ -1,6 +1,7 @@
 # Copyright 2017 Palantir Technologies, Inc.
 import os
 import re
+import sys
 from urllib.parse import urlparse, urlunparse
 
 # TODO: this is not the best e.g. we capture numbers
@@ -51,6 +52,17 @@ def get_uri_like(self, doc_uri, path):
         parts[2] = path
         return urlunparse([str(p) for p in parts])
 
+    def syspath_for_document(self, document):
+        """ Construct a sensible sys path to use for the given document.
+
+        Since the workspace root may not be the root of the Python project we instead
+        append the closest parent directory containing a setup.py file.
+        """
+        files = self.find_config_files(document, ['setup.py']) or []
+        path = [os.path.dirname(setup_py) for setup_py in files]
+        path.extend(sys.path)
+        return path
+
     def _check_in_workspace(self, doc_uri):
         doc_path = urlparse(doc_uri).path
         if not os.path.commonprefix((self.root, doc_path)):
diff --git a/test/fixtures.py b/test/fixtures.py
index 199d0a7a..e386a601 100644
--- a/test/fixtures.py
+++ b/test/fixtures.py
@@ -7,7 +7,7 @@
 
 
 @pytest.fixture
-def pyls():
+def pyls(tmpdir):
     """ Return an initialized python LS """
     rfile = StringIO()
     wfile = StringIO()
@@ -15,7 +15,7 @@ def pyls():
 
     ls.m_initialize(
         processId=1,
-        rootPath=os.path.dirname(__file__),
+        rootPath=str(tmpdir),
         initializationOptions={}
     )
 
diff --git a/test/test_workspace.py b/test/test_workspace.py
index 777bb53a..f8f7e865 100644
--- a/test/test_workspace.py
+++ b/test/test_workspace.py
@@ -1,5 +1,7 @@
 # Copyright 2017 Palantir Technologies, Inc.
+import os
 import pytest
+from pyls.workspace import Workspace
 
 DOC_URI = 'file://' + __file__
 
@@ -34,3 +36,18 @@ def test_bad_get_document(pyls):
 
 def test_uri_like(pyls):
     assert pyls.workspace.get_uri_like('file:///some-path', '/my/path') == 'file:///my/path'
+
+
+def test_non_root_project(pyls):
+    repo_root = os.path.join(pyls.workspace.root, 'repo-root')
+    os.mkdir(repo_root)
+    project_root = os.path.join(repo_root, 'project-root')
+    os.mkdir(project_root)
+
+    with open(os.path.join(project_root, 'setup.py'), 'w+') as f:
+        f.write('# setup.py')
+
+    test_uri = 'file://' + os.path.join(project_root, 'hello/test.py')
+    pyls.workspace.put_document(test_uri, 'assert True')
+    test_doc = pyls.workspace.get_document(test_uri)
+    assert project_root in pyls.workspace.syspath_for_document(test_doc)