diff --git a/src/Microsoft.SqlTools.ServiceLayer/Workspace/Workspace.cs b/src/Microsoft.SqlTools.ServiceLayer/Workspace/Workspace.cs
index e3954d39..c2beb65b 100644
--- a/src/Microsoft.SqlTools.ServiceLayer/Workspace/Workspace.cs
+++ b/src/Microsoft.SqlTools.ServiceLayer/Workspace/Workspace.cs
@@ -48,6 +48,23 @@ namespace Microsoft.SqlTools.ServiceLayer.Workspace
 
         #region Public Methods
 
+        /// <summary>
+        /// Checks if a given URI is contained in a workspace 
+        /// </summary>
+        /// <param name="filePath"></param>
+        /// <returns>Flag indicating if the file is tracked in workspace</returns>
+        public bool ContainsFile(string filePath)
+        {
+            Validate.IsNotNullOrWhitespaceString("filePath", filePath);
+
+            // Resolve the full file path 
+            string resolvedFilePath = this.ResolveFilePath(filePath);
+            string keyName = resolvedFilePath.ToLower();
+
+            ScriptFile scriptFile = null;
+            return this.workspaceFiles.TryGetValue(keyName, out scriptFile);
+        }
+
         /// <summary>
         /// Gets an open file in the workspace.  If the file isn't open but
         /// exists on the filesystem, load and return it. Virtual method to
@@ -124,9 +141,10 @@ namespace Microsoft.SqlTools.ServiceLayer.Workspace
             // with 'inmemory'.  Untitled files which have been marked of
             // type SqlTools have a path starting with 'untitled'.
             return
-                filePath.StartsWith("inmemory") ||
-                filePath.StartsWith("tsqloutput") ||
-                filePath.StartsWith("untitled");
+                filePath.StartsWith("inmemory:") ||
+                filePath.StartsWith("tsqloutput:") ||
+                filePath.StartsWith("git:") ||            
+                filePath.StartsWith("untitled:");
         }
 
         /// <summary>
diff --git a/src/Microsoft.SqlTools.ServiceLayer/Workspace/WorkspaceService.cs b/src/Microsoft.SqlTools.ServiceLayer/Workspace/WorkspaceService.cs
index 5b5102e9..c3b6b672 100644
--- a/src/Microsoft.SqlTools.ServiceLayer/Workspace/WorkspaceService.cs
+++ b/src/Microsoft.SqlTools.ServiceLayer/Workspace/WorkspaceService.cs
@@ -244,6 +244,11 @@ namespace Microsoft.SqlTools.ServiceLayer.Workspace
         {
             Logger.Write(LogLevel.Verbose, "HandleDidOpenTextDocumentNotification");
 
+            if (IsScmEvent(openParams.TextDocument.Uri)) 
+            {
+                return;
+            }
+
             // read the SQL file contents into the ScriptFile 
             ScriptFile openedFile = Workspace.GetFileBuffer(openParams.TextDocument.Uri, openParams.TextDocument.Text);
 
@@ -260,6 +265,11 @@ namespace Microsoft.SqlTools.ServiceLayer.Workspace
         {
             Logger.Write(LogLevel.Verbose, "HandleDidCloseTextDocumentNotification");
 
+            if (IsScmEvent(closeParams.TextDocument.Uri)) 
+            {
+                return;
+            }
+
             // Skip closing this file if the file doesn't exist
             var closedFile = Workspace.GetFile(closeParams.TextDocument.Uri);
             if (closedFile == null)
@@ -311,6 +321,12 @@ namespace Microsoft.SqlTools.ServiceLayer.Workspace
                 EndOffset = changeRange.End.Character + 1
             };
         }
+        
+        internal static bool IsScmEvent(string filePath)
+        {
+            // if the URI is prefixed with git: then we want to skip processing that file
+            return filePath.StartsWith("git:");
+        }
 
         #endregion
     }
diff --git a/test/Microsoft.SqlTools.ServiceLayer.Test/Workspace/WorkspaceTests.cs b/test/Microsoft.SqlTools.ServiceLayer.Test/Workspace/WorkspaceTests.cs
index df63e816..0f34802a 100644
--- a/test/Microsoft.SqlTools.ServiceLayer.Test/Workspace/WorkspaceTests.cs
+++ b/test/Microsoft.SqlTools.ServiceLayer.Test/Workspace/WorkspaceTests.cs
@@ -145,5 +145,56 @@ namespace Microsoft.SqlTools.ServiceLayer.Test.Workspace
                 Assert.NotNull(workspace.ResolveRelativeScriptPath(@"c:\path\", "file.sql"));
             });
         }
+
+        [Fact]
+        public async Task DontProcessGitFileEvents()
+        {
+            // setup test workspace
+            var workspace = new ServiceLayer.Workspace.Workspace();
+            var workspaceService = new WorkspaceService<SqlToolsSettings> {Workspace = workspace};
+
+            // send a document open event with git:/ prefix URI
+            string filePath = "git:/myfile.sql";
+            var openParams = new DidOpenTextDocumentNotification
+            {
+                TextDocument = new TextDocumentItem { Uri = filePath }
+            };
+
+            await workspaceService.HandleDidOpenTextDocumentNotification(openParams, eventContext: null);
+
+            // verify the file is not being tracked by workspace
+            Assert.False(workspaceService.Workspace.ContainsFile(filePath));
+
+            // send a close event with git:/ prefix URI
+            var closeParams = new DidCloseTextDocumentParams
+            {
+                TextDocument = new TextDocumentItem { Uri = filePath }
+            };
+
+            await workspaceService.HandleDidCloseTextDocumentNotification(closeParams, eventContext: null);
+
+            // this is not that interesting validation since the open is ignored
+            // the main validation is that close doesn't raise an exception
+            Assert.False(workspaceService.Workspace.ContainsFile(filePath));
+        }
+
+        [Fact]
+        public async Task WorkspaceContainsFile()
+        {
+            var workspace = new ServiceLayer.Workspace.Workspace();
+            var workspaceService = new WorkspaceService<SqlToolsSettings> {Workspace = workspace};
+            var openedFile = workspace.GetFileBuffer(TestObjects.ScriptUri, string.Empty);
+
+            // send a document open event            
+            var openParams = new DidOpenTextDocumentNotification
+            {
+                TextDocument = new TextDocumentItem { Uri = TestObjects.ScriptUri }
+            };
+
+            await workspaceService.HandleDidOpenTextDocumentNotification(openParams, eventContext: null);
+
+            // verify the file is being tracked by workspace
+            Assert.True(workspaceService.Workspace.ContainsFile(TestObjects.ScriptUri));
+        }
     }
 }