diff --git a/src/Microsoft.SqlTools.ServiceLayer/DacFx/Contracts/GenerateTSqlModelRequest.cs b/src/Microsoft.SqlTools.ServiceLayer/DacFx/Contracts/GenerateTSqlModelRequest.cs
new file mode 100644
index 00000000..f9d9e561
--- /dev/null
+++ b/src/Microsoft.SqlTools.ServiceLayer/DacFx/Contracts/GenerateTSqlModelRequest.cs
@@ -0,0 +1,39 @@
+//
+// Copyright (c) Microsoft. All rights reserved.
+// Licensed under the MIT license. See LICENSE file in the project root for full license information.
+//
+using Microsoft.SqlTools.Hosting.Protocol.Contracts;
+using Microsoft.SqlTools.ServiceLayer.Utility;
+
+namespace Microsoft.SqlTools.ServiceLayer.DacFx.Contracts
+{
+    /// <summary>
+    /// Parameters to generate a SQL model
+    /// </summary>
+    public class GenerateTSqlModelParams
+    {
+        /// <summary>
+        /// URI of the project file this model is for
+        /// </summary>
+        public string ProjectUri { get; set; }
+
+        /// <summary>
+        /// The version of Sql Server to target
+        /// </summary>
+        public string ModelTargetVersion { get; set; }
+
+        /// <summary>
+        /// Gets or sets the Sql script file paths.
+        /// </summary>
+        public string[] FilePaths { get; set; }
+    }
+
+    /// <summary>
+    /// Defines the generate sql model request
+    /// </summary>
+    class GenerateTSqlModelRequest
+    {
+        public static readonly RequestType<GenerateTSqlModelParams, ResultStatus> Type =
+            RequestType<GenerateTSqlModelParams, ResultStatus>.Create("dacFx/generateTSqlModel");
+    }
+}
diff --git a/src/Microsoft.SqlTools.ServiceLayer/DacFx/DacFxService.cs b/src/Microsoft.SqlTools.ServiceLayer/DacFx/DacFxService.cs
index 32784990..d3001555 100644
--- a/src/Microsoft.SqlTools.ServiceLayer/DacFx/DacFxService.cs
+++ b/src/Microsoft.SqlTools.ServiceLayer/DacFx/DacFxService.cs
@@ -11,6 +11,8 @@ using Microsoft.SqlTools.ServiceLayer.Connection;
 using Microsoft.SqlTools.ServiceLayer.DacFx.Contracts;
 using Microsoft.SqlTools.ServiceLayer.Hosting;
 using Microsoft.SqlTools.ServiceLayer.TaskServices;
+using Microsoft.SqlServer.Dac.Model;
+using Microsoft.SqlTools.ServiceLayer.Utility;
 using DacTableDesigner = Microsoft.Data.Tools.Sql.DesignServices.TableDesigner.TableDesigner;
 
 namespace Microsoft.SqlTools.ServiceLayer.DacFx
@@ -25,6 +27,11 @@ namespace Microsoft.SqlTools.ServiceLayer.DacFx
         private static readonly Lazy<DacFxService> instance = new Lazy<DacFxService>(() => new DacFxService());
         private readonly Lazy<ConcurrentDictionary<string, DacFxOperation>> operations =
             new Lazy<ConcurrentDictionary<string, DacFxOperation>>(() => new ConcurrentDictionary<string, DacFxOperation>());
+        /// <summary>
+        /// <see cref="ConcurrentDictionary{String, TSqlModel}"/> that maps project uri to model
+        /// </summary>
+        public Lazy<ConcurrentDictionary<string, TSqlModel>> projectModels =
+            new Lazy<ConcurrentDictionary<string, TSqlModel>>(() => new ConcurrentDictionary<string, TSqlModel>());
 
         /// <summary>
         /// Gets the singleton instance object
@@ -50,6 +57,7 @@ namespace Microsoft.SqlTools.ServiceLayer.DacFx
             serviceHost.SetRequestHandler(ValidateStreamingJobRequest.Type, this.HandleValidateStreamingJobRequest);
             serviceHost.SetRequestHandler(GetDefaultPublishOptionsRequest.Type, this.HandleGetDefaultPublishOptionsRequest);
             serviceHost.SetRequestHandler(ParseTSqlScriptRequest.Type, this.HandleParseTSqlScriptRequest);
+            serviceHost.SetRequestHandler(GenerateTSqlModelRequest.Type, this.HandleGenerateTSqlModelRequest);
         }
 
         /// <summary>
@@ -323,6 +331,26 @@ namespace Microsoft.SqlTools.ServiceLayer.DacFx
             }
         }
 
+        public async Task HandleGenerateTSqlModelRequest(GenerateTSqlModelParams requestParams, RequestContext<ResultStatus> requestContext)
+        {
+            try
+            {
+                GenerateTSqlModelOperation operation = new GenerateTSqlModelOperation(requestParams);
+                TSqlModel model = operation.GenerateTSqlModel();
+
+                projectModels.Value[operation.Parameters.ProjectUri] = model;
+                await requestContext.SendResult(new ResultStatus
+                {
+                    Success = true,
+                    ErrorMessage = null
+                });
+            }
+            catch (Exception e)
+            {
+                await requestContext.SendError(e);
+            }
+        }
+
         private void ExecuteOperation(DacFxOperation operation, DacFxParams parameters, string taskName, RequestContext<DacFxResult> requestContext)
         {
             Task.Run(async () =>
diff --git a/src/Microsoft.SqlTools.ServiceLayer/DacFx/GenerateTSqlModelOperation.cs b/src/Microsoft.SqlTools.ServiceLayer/DacFx/GenerateTSqlModelOperation.cs
new file mode 100644
index 00000000..fd1e34d1
--- /dev/null
+++ b/src/Microsoft.SqlTools.ServiceLayer/DacFx/GenerateTSqlModelOperation.cs
@@ -0,0 +1,53 @@
+//
+// Copyright (c) Microsoft. All rights reserved.
+// Licensed under the MIT license. See LICENSE file in the project root for full license information.
+//
+
+using System;
+using System.Diagnostics;
+using Microsoft.SqlTools.ServiceLayer.DacFx.Contracts;
+using Microsoft.SqlTools.Utility;
+using Microsoft.SqlServer.Dac.Model;
+
+namespace Microsoft.SqlTools.ServiceLayer.DacFx
+{
+    /// <summary>
+    /// Class to represent creating a dacfx model
+    /// </summary>
+    class GenerateTSqlModelOperation
+    {
+        public GenerateTSqlModelParams Parameters { get; }
+
+        public GenerateTSqlModelOperation(GenerateTSqlModelParams parameters)
+        {
+            Validate.IsNotNull("parameters", parameters);
+            this.Parameters = parameters;
+        }
+
+        /// <summary>
+        /// Generate model from sql files, if no sql files are passed in then it generates an empty model.
+        /// </summary>
+        public TSqlModel GenerateTSqlModel()
+        {
+            try
+            {
+                TSqlModelOptions options = new TSqlModelOptions();
+                SqlServerVersion version = (SqlServerVersion)Enum.Parse(typeof(SqlServerVersion), Parameters.ModelTargetVersion);
+
+                var model = new TSqlModel(version, options);
+                // read all sql files
+                foreach (string filePath in Parameters.FilePaths)
+                {
+                    string fileContent = System.IO.File.ReadAllText(filePath);
+                    model.AddOrUpdateObjects(fileContent, filePath, null);
+                }
+                return model;
+            }
+            catch (Exception ex)
+            {
+                Logger.Write(TraceEventType.Information, $"Failed to generate model. Error: {ex.Message}");
+                throw;
+            }
+        }
+    }
+}
\ No newline at end of file
diff --git a/test/Microsoft.SqlTools.ServiceLayer.IntegrationTests/DacFx/DacFxServiceTests.cs b/test/Microsoft.SqlTools.ServiceLayer.IntegrationTests/DacFx/DacFxServiceTests.cs
index 6f7c201e..ab5cd971 100644
--- a/test/Microsoft.SqlTools.ServiceLayer.IntegrationTests/DacFx/DacFxServiceTests.cs
+++ b/test/Microsoft.SqlTools.ServiceLayer.IntegrationTests/DacFx/DacFxServiceTests.cs
@@ -5,6 +5,7 @@
 using System;
 using System.Collections.Generic;
 using System.IO;
+using System.Linq;
 using System.Threading.Tasks;
 using Microsoft.Data.SqlClient;
 using Microsoft.SqlServer.Dac;
@@ -16,6 +17,8 @@ using Microsoft.SqlTools.ServiceLayer.DacFx.Contracts;
 using Microsoft.SqlTools.ServiceLayer.IntegrationTests.Utility;
 using Microsoft.SqlTools.ServiceLayer.TaskServices;
 using Microsoft.SqlTools.ServiceLayer.Test.Common;
+using Microsoft.SqlTools.ServiceLayer.Utility;
+using Microsoft.SqlServer.Dac.Model;
 using NUnit.Framework;
 using Moq;
 using System.Reflection;
@@ -25,6 +28,7 @@ namespace Microsoft.SqlTools.ServiceLayer.IntegrationTests.DacFx
     public class DacFxServiceTests
     {
         private string publishProfileFolder = Path.Combine("..", "..", "..", "DacFx", "PublishProfiles");
+        private string TSqlModelTestFolder = Path.Combine("..", "..", "..", "DacFx", "TSqlModels");
         private const string SourceScript = @"CREATE TABLE [dbo].[table1]
 (
     [ID] INT NOT NULL PRIMARY KEY,
@@ -687,7 +691,7 @@ FROM MissingEdgeHubInputStream'";
                     DatabaseName = targetDb.DatabaseName,
                     DeploymentOptions = new DeploymentOptions()
                     {
-                        ExcludeObjectTypes = new DeploymentOptionProperty<ObjectType[]>( new[] { ObjectType.Views })
+                        ExcludeObjectTypes = new DeploymentOptionProperty<ObjectType[]>(new[] { ObjectType.Views })
                     }
                 };
 
@@ -926,5 +930,102 @@ Streaming query statement contains a reference to missing output stream 'Missing
                 Assert.That(actualValue, Is.EqualTo(expectedValue), $"Actual Property from Service is not equal to default property for {optionRow.Key}");
             }
         }
+
+        /// <summary>
+        /// Verify the generate Tsql model operation
+        /// </summary>
+        [Test]
+        public void GenerateTSqlModelFromSqlFiles()
+        {
+            DacFxService service = new DacFxService();
+            Directory.CreateDirectory(TSqlModelTestFolder);
+            string sqlTable1DefinitionPath = Path.Join(TSqlModelTestFolder, "table1.sql");
+            string sqlTable2DefinitionPath = Path.Join(TSqlModelTestFolder, "table2.sql");
+            const string table1 = @"CREATE TABLE [dbo].[table1]
+            (
+                [ID] INT NOT NULL PRIMARY KEY,
+            )";
+            const string table2 = @"CREATE TABLE [dbo].[table2]
+            (
+                [ID] INT NOT NULL PRIMARY KEY,
+            )";
+            // create sql file
+            File.WriteAllText(sqlTable1DefinitionPath, table1);
+            File.WriteAllText(sqlTable2DefinitionPath, table2);
+
+            var generateTSqlScriptParams = new GenerateTSqlModelParams
+            {
+                ProjectUri = Path.Join(TSqlModelTestFolder, "test.sqlproj"),
+                ModelTargetVersion = "Sql160",
+                FilePaths = new[] { sqlTable1DefinitionPath, sqlTable2DefinitionPath }
+            };
+
+            GenerateTSqlModelOperation op = new GenerateTSqlModelOperation(generateTSqlScriptParams);
+            var model = op.GenerateTSqlModel();
+            var objects = model.GetObjects(DacQueryScopes.UserDefined, ModelSchema.Table).ToList();
+
+            VerifyAndCleanup(sqlTable1DefinitionPath);
+            VerifyAndCleanup(sqlTable2DefinitionPath);
+            Directory.Delete(TSqlModelTestFolder);
+
+            Assert.That(model.Version.ToString(), Is.EqualTo(generateTSqlScriptParams.ModelTargetVersion), $"Model version is not equal to {generateTSqlScriptParams.ModelTargetVersion}");
+            Assert.That(objects, Is.Not.Empty);
+
+            var tableNames = objects.Select(o => o.Name.ToString()).ToList();
+
+            Assert.That(tableNames.Count, Is.EqualTo(2), "Model was not populated correctly");
+            CollectionAssert.AreEquivalent(tableNames, new[] { "[dbo].[table1]", "[dbo].[table2]" }, "Table names do not match");
+        }
+
+        /// <summary>
+        /// Verify the generate Tsql model operation, creates an empty model when files are empty
+        /// </summary>
+        [Test]
+        public void GenerateEmptyTSqlModel()
+        {
+            DacFxService service = new DacFxService();
+            Directory.CreateDirectory(TSqlModelTestFolder);
+
+            var generateTSqlScriptParams = new GenerateTSqlModelParams
+            {
+                ProjectUri = Path.Join(TSqlModelTestFolder, "test.sqlproj"),
+                ModelTargetVersion = "Sql160",
+                FilePaths = new string[] { }
+            };
+
+            GenerateTSqlModelOperation op = new GenerateTSqlModelOperation(generateTSqlScriptParams);
+            var model = op.GenerateTSqlModel();
+
+            // clean up
+            Directory.Delete(TSqlModelTestFolder);
+
+            Assert.That(model.GetObjects(DacQueryScopes.UserDefined, ModelSchema.Table).ToList().Count, Is.EqualTo(0), "Model is not empty");
+            Assert.That(model.Version.ToString(), Is.EqualTo(generateTSqlScriptParams.ModelTargetVersion), $"Model version is not equal to {generateTSqlScriptParams.ModelTargetVersion}");
+        }
+
+        /// <summary>
+        /// Verify the generate TSql Model handle
+        /// </summary>
+        [Test]
+        public async Task VerifyGenerateTSqlModelHandle()
+        {
+            DacFxService service = new DacFxService();
+            Directory.CreateDirectory(TSqlModelTestFolder);
+
+            var generateTSqlScriptParams = new GenerateTSqlModelParams
+            {
+                ProjectUri = Path.Join(TSqlModelTestFolder, "test.sqlproj"),
+                ModelTargetVersion = "Sql160",
+                FilePaths = new string[] { }
+            };
+
+            var requestContext = new Mock<RequestContext<ResultStatus>>();
+            requestContext.Setup((RequestContext<ResultStatus> x) => x.SendResult(It.Is<ResultStatus>((result) => result.Success == true))).Returns(Task.FromResult(new object()));
+            await service.HandleGenerateTSqlModelRequest(generateTSqlScriptParams, requestContext.Object);
+
+            Directory.Delete(TSqlModelTestFolder);
+
+            Assert.True(service.projectModels.Value.Keys.Contains(generateTSqlScriptParams.ProjectUri), "Model was not stored under project uri");
+        }
     }
 }