diff --git a/src/Razor/src/Microsoft.CodeAnalysis.Razor.Workspaces/ProjectSystem/DocumentState.cs b/src/Razor/src/Microsoft.CodeAnalysis.Razor.Workspaces/ProjectSystem/DocumentState.cs
index 21c98339ae..4055cd936f 100644
--- a/src/Razor/src/Microsoft.CodeAnalysis.Razor.Workspaces/ProjectSystem/DocumentState.cs
+++ b/src/Razor/src/Microsoft.CodeAnalysis.Razor.Workspaces/ProjectSystem/DocumentState.cs
@@ -245,6 +245,11 @@ internal partial class DocumentState
 
         foreach (var item in importItems)
         {
+            if (item is NotFoundProjectItem)
+            {
+                continue;
+            }
+
             if (item.PhysicalPath is null)
             {
                 // This is a default import.
diff --git a/src/Razor/test/Microsoft.AspNetCore.Razor.LanguageServer.Test/Formatting_NetFx/FormattingTestBase.cs b/src/Razor/test/Microsoft.AspNetCore.Razor.LanguageServer.Test/Formatting_NetFx/FormattingTestBase.cs
index cf73aad118..1ddc2e227f 100644
--- a/src/Razor/test/Microsoft.AspNetCore.Razor.LanguageServer.Test/Formatting_NetFx/FormattingTestBase.cs
+++ b/src/Razor/test/Microsoft.AspNetCore.Razor.LanguageServer.Test/Formatting_NetFx/FormattingTestBase.cs
@@ -2,6 +2,7 @@
 // Licensed under the MIT license. See License.txt in the project root for license information.
 
 using System;
+using System.Collections.Generic;
 using System.Collections.Immutable;
 using System.IO;
 using System.Linq;
@@ -48,6 +49,13 @@ public class FormattingTestBase : RazorToolingIntegrationTestBase
         bool allowDiagnostics = false,
         RazorLSPOptions? razorLSPOptions = null,
         bool inGlobalNamespace = false)
+    {
+        // Run with and without forceRuntimeCodeGeneration
+        await RunFormattingTestAsync(input, expected, tabSize, insertSpaces, fileKind, tagHelpers, allowDiagnostics, razorLSPOptions, inGlobalNamespace, true);
+        await RunFormattingTestAsync(input, expected, tabSize, insertSpaces, fileKind, tagHelpers, allowDiagnostics, razorLSPOptions, inGlobalNamespace, false);
+    }
+
+    private async Task RunFormattingTestAsync(string input, string expected, int tabSize, bool insertSpaces, string? fileKind, ImmutableArray<TagHelperDescriptor> tagHelpers, bool allowDiagnostics, RazorLSPOptions? razorLSPOptions, bool inGlobalNamespace, bool forceRuntimeCodeGeneration)
     {
         // Arrange
         fileKind ??= FileKinds.Component;
@@ -62,7 +70,7 @@ public class FormattingTestBase : RazorToolingIntegrationTestBase
 
         var path = "file:///path/to/Document." + fileKind;
         var uri = new Uri(path);
-        var (codeDocument, documentSnapshot) = CreateCodeDocumentAndSnapshot(source, uri.AbsolutePath, tagHelpers, fileKind, allowDiagnostics, inGlobalNamespace);
+        var (codeDocument, documentSnapshot) = CreateCodeDocumentAndSnapshot(source, uri.AbsolutePath, tagHelpers, fileKind, allowDiagnostics, inGlobalNamespace, forceRuntimeCodeGeneration);
         var options = new FormattingOptions()
         {
             TabSize = tabSize,
@@ -217,7 +225,7 @@ public class FormattingTestBase : RazorToolingIntegrationTestBase
         return source.WithChanges(changes);
     }
 
-    private static (RazorCodeDocument, IDocumentSnapshot) CreateCodeDocumentAndSnapshot(SourceText text, string path, ImmutableArray<TagHelperDescriptor> tagHelpers = default, string? fileKind = default, bool allowDiagnostics = false, bool inGlobalNamespace = false)
+    private static (RazorCodeDocument, IDocumentSnapshot) CreateCodeDocumentAndSnapshot(SourceText text, string path, ImmutableArray<TagHelperDescriptor> tagHelpers = default, string? fileKind = default, bool allowDiagnostics = false, bool inGlobalNamespace = false, bool forceRuntimeCodeGeneration = false)
     {
         fileKind ??= FileKinds.Component;
         tagHelpers = tagHelpers.NullToEmpty();
@@ -255,12 +263,21 @@ public class FormattingTestBase : RazorToolingIntegrationTestBase
             .Setup(d => d.TargetPath)
             .Returns(importsPath);
 
-        var projectEngine = RazorProjectEngine.Create(builder =>
-        {
-            builder.SetRootNamespace(inGlobalNamespace ? string.Empty : "Test");
-            builder.Features.Add(new DefaultTypeNameFeature());
-            RazorExtensions.Register(builder);
-        });
+        var projectFileSystem = new TestRazorProjectFileSystem([
+            new TestRazorProjectItem(path, fileKind: fileKind),
+            new TestRazorProjectItem(importsPath, fileKind: FileKinds.ComponentImport),
+            ]);
+
+        var projectEngine = RazorProjectEngine.Create(
+            new RazorConfiguration(RazorLanguageVersion.Latest, "TestConfiguration", ImmutableArray<RazorExtension>.Empty, new LanguageServerFlags(forceRuntimeCodeGeneration)),
+            projectFileSystem,
+            builder =>
+            {
+                builder.SetRootNamespace(inGlobalNamespace ? string.Empty : "Test");
+                builder.Features.Add(new DefaultTypeNameFeature());
+                RazorExtensions.Register(builder);
+            });
+
         var codeDocument = projectEngine.ProcessDesignTime(sourceDocument, fileKind, ImmutableArray.Create(importsDocument), tagHelpers);
 
         if (!allowDiagnostics)
@@ -290,9 +307,18 @@ public class FormattingTestBase : RazorToolingIntegrationTestBase
         documentSnapshot
             .Setup(d => d.TargetPath)
             .Returns(path);
+        documentSnapshot
+            .Setup(d => d.Project.Configuration)
+            .Returns(projectEngine.Configuration);
+        documentSnapshot
+            .Setup(d => d.GetTextAsync())
+            .ReturnsAsync(codeDocument.Source.Text);
         documentSnapshot
             .Setup(d => d.Project.GetTagHelpersAsync(It.IsAny<CancellationToken>()))
             .Returns(new ValueTask<ImmutableArray<TagHelperDescriptor>>(tagHelpers));
+        documentSnapshot
+            .Setup(d => d.Project.GetProjectEngine())
+            .Returns(projectEngine);
         documentSnapshot
             .Setup(d => d.FileKind)
             .Returns(fileKind);