diff --git a/extensions/sql-database-projects/src/controllers/projectController.ts b/extensions/sql-database-projects/src/controllers/projectController.ts
index 2359dbc772..d8d0108fb8 100644
--- a/extensions/sql-database-projects/src/controllers/projectController.ts
+++ b/extensions/sql-database-projects/src/controllers/projectController.ts
@@ -6,6 +6,7 @@
 import * as constants from '../common/constants';
 import * as dataSources from '../models/dataSources/dataSources';
 import * as mssql from '../../../mssql';
+import * as os from 'os';
 import * as path from 'path';
 import * as utils from '../common/utils';
 import * as UUID from 'vscode-languageclient/lib/utils/uuid';
@@ -222,13 +223,17 @@ export class ProjectsController {
 			return undefined; // buildProject() handles displaying the error
 		}
 
-		const dacFxService = await ProjectsController.getDaxFxService();
+		// copy dacpac to temp location before deployment
+		const tempPath = path.join(os.tmpdir(), `${path.parse(dacpacPath).name}_${new Date().getTime()}${constants.sqlprojExtension}`);
+		await fs.copyFile(dacpacPath, tempPath);
+
+		const dacFxService = await this.getDaxFxService();
 
 		if ((<IDeploymentProfile>profile).upgradeExisting) {
-			return await dacFxService.deployDacpac(dacpacPath, profile.databaseName, (<IDeploymentProfile>profile).upgradeExisting, profile.connectionUri, TaskExecutionMode.execute, profile.sqlCmdVariables);
+			return await dacFxService.deployDacpac(tempPath, profile.databaseName, (<IDeploymentProfile>profile).upgradeExisting, profile.connectionUri, TaskExecutionMode.execute, profile.sqlCmdVariables);
 		}
 		else {
-			return await dacFxService.generateDeployScript(dacpacPath, profile.databaseName, profile.connectionUri, TaskExecutionMode.script, profile.sqlCmdVariables);
+			return await dacFxService.generateDeployScript(tempPath, profile.databaseName, profile.connectionUri, TaskExecutionMode.script, profile.sqlCmdVariables);
 		}
 	}
 
@@ -511,7 +516,7 @@ export class ProjectsController {
 		}
 	}
 
-	private static async getDaxFxService(): Promise<mssql.IDacFxService> {
+	public async getDaxFxService(): Promise<mssql.IDacFxService> {
 		const ext: Extension<any> = extensions.getExtension(mssql.extension.name)!;
 
 		await ext.activate();
diff --git a/extensions/sql-database-projects/src/test/projectController.test.ts b/extensions/sql-database-projects/src/test/projectController.test.ts
index 3f0619fb74..9ead46cedf 100644
--- a/extensions/sql-database-projects/src/test/projectController.test.ts
+++ b/extensions/sql-database-projects/src/test/projectController.test.ts
@@ -17,7 +17,7 @@ import * as constants from '../common/constants';
 import { SqlDatabaseProjectTreeViewProvider } from '../controllers/databaseProjectTreeViewProvider';
 import { ProjectsController } from '../controllers/projectController';
 import { promises as fs } from 'fs';
-import { createContext, TestContext } from './testContext';
+import { createContext, TestContext, mockDacFxResult } from './testContext';
 import { Project, SystemDatabase } from '../models/project';
 import { DeployDatabaseDialog } from '../dialogs/deployDatabaseDialog';
 import { ApiWrapper } from '../common/apiWrapper';
@@ -185,6 +185,36 @@ describe.skip('ProjectsController: project controller operations', function ():
 			should(Object.keys(result.sqlCmdVariables).length).equal(1);
 			should(result.sqlCmdVariables['ProdDatabaseName']).equal('MyProdDatabase');
 		});
+
+		it('Should copy dacpac to temp folder before deploying', async function (): Promise<void> {
+			const fakeDacpacContents = 'SwiftFlewHiawathasArrow';
+			let postCopyContents = '';
+			let builtDacpacPath = '';
+			let deployedDacpacPath = '';
+
+			testContext.dacFxService.setup(x => x.generateDeployScript(TypeMoq.It.isAny(), TypeMoq.It.isAny(), TypeMoq.It.isAny(), TypeMoq.It.isAny(), TypeMoq.It.isAny())).returns(async (p) => {
+				deployedDacpacPath = p;
+				postCopyContents = (await fs.readFile(deployedDacpacPath)).toString();
+				return Promise.resolve(mockDacFxResult);
+			});
+
+			let projController = TypeMoq.Mock.ofType(ProjectsController);
+			projController.callBase = true;
+
+			projController.setup(x => x.buildProject(TypeMoq.It.isAny())).returns(async () => {
+				builtDacpacPath = await testUtils.createTestFile(fakeDacpacContents, 'output.dacpac');
+				return builtDacpacPath;
+			});
+
+			projController.setup(x => x.getDaxFxService()).returns(() => Promise.resolve(testContext.dacFxService.object));
+
+			await projController.object.executionCallback(new Project(''), { connectionUri: '', databaseName: '' });
+
+			should(builtDacpacPath).not.equal('', 'built dacpac path should be set');
+			should(deployedDacpacPath).not.equal('', 'deployed dacpac path should be set');
+			should(builtDacpacPath).not.equal(deployedDacpacPath, 'built and deployed dacpac paths should be different');
+			should(postCopyContents).equal(fakeDacpacContents, 'contents of built and deployed dacpacs should match');
+		});
 	});
 });
 
diff --git a/extensions/sql-database-projects/src/test/testContext.ts b/extensions/sql-database-projects/src/test/testContext.ts
index f1979446b2..e106f14fea 100644
--- a/extensions/sql-database-projects/src/test/testContext.ts
+++ b/extensions/sql-database-projects/src/test/testContext.ts
@@ -4,13 +4,33 @@
  *--------------------------------------------------------------------------------------------*/
 
 import * as vscode from 'vscode';
+import * as azdata from 'azdata';
 import * as path from 'path';
 import * as TypeMoq from 'typemoq';
+import * as mssql from '../../../mssql/src/mssql';
 import { ApiWrapper } from '../common/apiWrapper';
 
 export interface TestContext {
 	apiWrapper: TypeMoq.IMock<ApiWrapper>;
 	context: vscode.ExtensionContext;
+	dacFxService: TypeMoq.IMock<mssql.IDacFxService>;
+}
+
+export const mockDacFxResult = {
+	operationId: '',
+	success: true,
+	errorMessage: '',
+	report: ''
+};
+
+export class MockDacFxService implements mssql.IDacFxService {
+	public exportBacpac(_: string, __: string, ___: string, ____: azdata.TaskExecutionMode): Thenable<mssql.DacFxResult> { return Promise.resolve(mockDacFxResult); }
+	public importBacpac(_: string, __: string, ___: string, ____: azdata.TaskExecutionMode): Thenable<mssql.DacFxResult> { return Promise.resolve(mockDacFxResult); }
+	public extractDacpac(_: string, __: string, ___: string, ____: string, _____: string, ______: azdata.TaskExecutionMode): Thenable<mssql.DacFxResult> { return Promise.resolve(mockDacFxResult); }
+	public importDatabaseProject(_: string, __: string, ___: string, ____: string, _____: string, ______: mssql.ExtractTarget, _______: azdata.TaskExecutionMode): Thenable<mssql.DacFxResult> { return Promise.resolve(mockDacFxResult); }
+	public deployDacpac(_: string, __: string, ___: boolean, ____: string, _____: azdata.TaskExecutionMode, ______?: Record<string, string>): Thenable<mssql.DacFxResult> { return Promise.resolve(mockDacFxResult); }
+	public generateDeployScript(_: string, __: string, ___: string, ____: azdata.TaskExecutionMode, ______?: Record<string, string>): Thenable<mssql.DacFxResult> { return Promise.resolve(mockDacFxResult); }
+	public generateDeployPlan(_: string, __: string, ___: string, ____: azdata.TaskExecutionMode): Thenable<mssql.GenerateDeployPlanResult> { return Promise.resolve(mockDacFxResult); }
 }
 
 export function createContext(): TestContext {
@@ -37,5 +57,6 @@ export function createContext(): TestContext {
 			environmentVariableCollection: undefined as any,
 			extensionMode: undefined as any
 		},
+		dacFxService: TypeMoq.Mock.ofType(MockDacFxService)
 	};
 }