diff --git a/ThirdPartyNotices.txt b/ThirdPartyNotices.txt
index 8e51993f5b..81bb332e9f 100644
--- a/ThirdPartyNotices.txt
+++ b/ThirdPartyNotices.txt
@@ -72,6 +72,8 @@ expressly granted herein, whether by implication, estoppel or otherwise.
     vscode-ripgrep: https://github.com/roblourens/vscode-ripgrep
     vscode-textmate: https://github.com/Microsoft/vscode-textmate
     winreg: https://github.com/fresc81/node-winreg
+    xmldom: https://github.com/xmldom/xmldom
+    xml-formatter: https://github.com/chrisbottin/xml-formatter
     xterm: https://github.com/sourcelair/xterm.js
     yargs: https://github.com/yargs/yargs
     yauzl: https://github.com/thejoshwolfe/yauzl
@@ -2225,6 +2227,51 @@ EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE.
 =========================================
 END OF winreg NOTICES AND INFORMATION
 
+%% xmldom NOTICES AND INFORMATION BEGIN HERE
+=========================================
+The MIT License (MIT)
+
+Permission is hereby granted, free of charge, to any person obtaining a copy of
+this software and associated documentation files (the "Software"), to deal in the
+Software without restriction, including without limitation the rights to use, copy,
+modify, merge, publish, distribute, sublicense, and/or sell copies of the Software,
+and to permit persons to whom the Software is furnished to do so, subject to the
+following conditions:
+
+The above copyright notice and this permission notice shall be included in all copies
+or substantial portions of the Software.
+
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED,
+INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
+PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE
+FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE,
+ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN
+THE SOFTWARE.
+=========================================
+END OF xmldom NOTICES AND INFORMATION
+
+%% xml-formatter NOTICES AND INFORMATION BEGIN HERE
+=========================================
+The MIT License (MIT)
+
+Copyright 2019 Chris Bottin (https://github.com/chrisbottin)
+
+Permission is hereby granted, free of charge, to any person obtaining a copy of this software
+and associated documentation files (the "Software"), to deal in the Software without restriction,
+including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense,
+and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do
+so, subject to the following conditions:
+
+The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software.
+
+THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT
+LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT.
+IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY,
+WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE
+SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.
+=========================================
+END OF xml-formatter NOTICES AND INFORMATION
+
 %% xterm NOTICES AND INFORMATION BEGIN HERE
 =========================================
 Copyright (c) 2014-2016, SourceLair Private Company (https://www.sourcelair.com)
diff --git a/extensions/sql-database-projects/package.json b/extensions/sql-database-projects/package.json
index 468f46d20e..87f1aa7c57 100644
--- a/extensions/sql-database-projects/package.json
+++ b/extensions/sql-database-projects/package.json
@@ -258,9 +258,11 @@
     ]
   },
   "dependencies": {
+    "@types/xml-formatter": "^1.1.0",
     "promisify-child-process": "^3.1.1",
     "vscode-languageclient": "^5.3.0-next.1",
     "vscode-nls": "^3.2.1",
+    "xml-formatter": "^2.1.0",
     "xmldom": "^0.3.0"
   },
   "devDependencies": {
diff --git a/extensions/sql-database-projects/src/models/project.ts b/extensions/sql-database-projects/src/models/project.ts
index 21ce0175b6..fc898ca4df 100644
--- a/extensions/sql-database-projects/src/models/project.ts
+++ b/extensions/sql-database-projects/src/models/project.ts
@@ -7,6 +7,7 @@ import * as path from 'path';
 import * as xmldom from 'xmldom';
 import * as constants from '../common/constants';
 import * as utils from '../common/utils';
+import * as xmlFormat from 'xml-formatter';
 
 import { Uri } from 'vscode';
 import { promises as fs } from 'fs';
@@ -305,7 +306,8 @@ export class Project {
 	}
 
 	private async serializeToProjFile(projFileContents: any) {
-		const xml = new xmldom.XMLSerializer().serializeToString(projFileContents); // TODO: how to get this to serialize with "pretty" formatting
+		let xml = new xmldom.XMLSerializer().serializeToString(projFileContents);
+		xml = xmlFormat(xml, { collapseContent: true, indentation: '  ' });
 
 		await fs.writeFile(this.projectFilePath, xml);
 	}
diff --git a/extensions/sql-database-projects/src/test/baselines/SSDTProjectAfterUpdateBaseline.xml b/extensions/sql-database-projects/src/test/baselines/SSDTProjectAfterUpdateBaseline.xml
index 6cbe572516..9728cd79ab 100644
--- a/extensions/sql-database-projects/src/test/baselines/SSDTProjectAfterUpdateBaseline.xml
+++ b/extensions/sql-database-projects/src/test/baselines/SSDTProjectAfterUpdateBaseline.xml
@@ -69,4 +69,8 @@
     <Folder Include="Views\User"/>
     <Build Include="Views\User\Profile.sql"/>
   </ItemGroup>
-<Import Condition="'$(NetCoreBuild)' == 'true'" Project="$(NETCoreTargetsPath)\Microsoft.Data.Tools.Schema.SqlTasks.targets"/><ItemGroup><PackageReference Condition="'$(NetCoreBuild)' == 'true'" Include="Microsoft.NETFramework.ReferenceAssemblies" Version="1.0.0" PrivateAssets="All"/></ItemGroup></Project>
+  <Import Condition="'$(NetCoreBuild)' == 'true'" Project="$(NETCoreTargetsPath)\Microsoft.Data.Tools.Schema.SqlTasks.targets"/>
+  <ItemGroup>
+    <PackageReference Condition="'$(NetCoreBuild)' == 'true'" Include="Microsoft.NETFramework.ReferenceAssemblies" Version="1.0.0" PrivateAssets="All"/>
+  </ItemGroup>
+</Project>
diff --git a/extensions/sql-database-projects/yarn.lock b/extensions/sql-database-projects/yarn.lock
index aeda3ef270..949f2fa4df 100644
--- a/extensions/sql-database-projects/yarn.lock
+++ b/extensions/sql-database-projects/yarn.lock
@@ -205,6 +205,11 @@
   resolved "https://registry.yarnpkg.com/@istanbuljs/schema/-/schema-0.1.2.tgz#26520bf09abe4a5644cd5414e37125a8954241dd"
   integrity sha512-tsAQNx32a8CoFhjhijUIhI4kccIAgmGhy8LZMZgGfmXcpMbPRUqn5LWmgRttILi6yeGmBJd2xsPkFMs0PzgPCw==
 
+"@types/xml-formatter@^1.1.0":
+  version "1.1.0"
+  resolved "https://registry.yarnpkg.com/@types/xml-formatter/-/xml-formatter-1.1.0.tgz#f7cde70ec33d7b044029b6b6c2f6e69d270ced63"
+  integrity sha512-1Z8XdMUQ3mLsAwqBzKUea2IgDeLOwvgEWevUHhcu3aF6K0KqeGPRlwEYmVy3wGiaepZdcqsiCuUbNhrU4bIJog==
+
 "@types/xmldom@^0.1.29":
   version "0.1.29"
   resolved "https://registry.yarnpkg.com/@types/xmldom/-/xmldom-0.1.29.tgz#c4428b0ca86d3b881475726fd94980b38a27c381"
@@ -921,6 +926,18 @@ wrappy@1:
   resolved "https://registry.yarnpkg.com/wrappy/-/wrappy-1.0.2.tgz#b5243d8f3ec1aa35f1364605bc0d1036e30ab69f"
   integrity sha1-tSQ9jz7BqjXxNkYFvA0QNuMKtp8=
 
+xml-formatter@^2.1.0:
+  version "2.1.0"
+  resolved "https://registry.yarnpkg.com/xml-formatter/-/xml-formatter-2.1.0.tgz#ff438be6e2195e480b7525ecd3b06652ed76f390"
+  integrity sha512-t55v5mfpohwKvNbfd8A0FZSZI22//hqXqx3AwRx3mjZel0IEoRM2p1bvVnvNPxHqdqZ0sDjUrBqfHJNbIfE8fw==
+  dependencies:
+    xml-parser-xo "^3.0.0"
+
+xml-parser-xo@^3.0.0:
+  version "3.0.0"
+  resolved "https://registry.yarnpkg.com/xml-parser-xo/-/xml-parser-xo-3.0.0.tgz#4d46f1962e5100f228b5f73f34c61bb798430195"
+  integrity sha512-MPPexqXBx48m3OFMQXxo7+RYhG6o6kCGflk4q4oL3uQ0b7d5NDKjHFDwUoozOTPT3WFztT13z3R9Sn0QCTIJcQ==
+
 xml@^1.0.0:
   version "1.0.1"
   resolved "https://registry.yarnpkg.com/xml/-/xml-1.0.1.tgz#78ba72020029c5bc87b8a81a3cfcd74b4a2fc1e5"