diff --git a/TestAssets/ProjectModelServer/DthUpdateSearchPathSample/ext/Newtonsoft.Json/project.json b/TestAssets/ProjectModelServer/DthUpdateSearchPathSample/ext/Newtonsoft.Json/project.json
index baf23136c..49f740598 100644
--- a/TestAssets/ProjectModelServer/DthUpdateSearchPathSample/ext/Newtonsoft.Json/project.json
+++ b/TestAssets/ProjectModelServer/DthUpdateSearchPathSample/ext/Newtonsoft.Json/project.json
@@ -1,8 +1,8 @@
 {
-  "version": "6.0.8",
+  "version": "9.0.1",
   "dependencies": {
   },
   "frameworks": {
-    "dnx451": { }
+    "netstandard1.5": { }
   }
 }
diff --git a/TestAssets/ProjectModelServer/DthUpdateSearchPathSample/home/src/MainProject/project.json b/TestAssets/ProjectModelServer/DthUpdateSearchPathSample/home/src/MainProject/project.json
index fb6c9c4e9..aa50018cd 100644
--- a/TestAssets/ProjectModelServer/DthUpdateSearchPathSample/home/src/MainProject/project.json
+++ b/TestAssets/ProjectModelServer/DthUpdateSearchPathSample/home/src/MainProject/project.json
@@ -1,8 +1,8 @@
 {
   "dependencies": {
-    "Newtonsoft.Json": "6.0.8"
+    "Newtonsoft.Json": "9.0.1"
   },
   "frameworks": {
-    "dnx451": { }
+    "netstandard1.5": {}
   }
-}
+}
\ No newline at end of file
diff --git a/src/dotnet/commands/dotnet-projectmodel-server/Helpers/DependencyTypeChangeFinder.cs b/src/dotnet/commands/dotnet-projectmodel-server/Helpers/DependencyTypeChangeFinder.cs
index ac13b6cc4..7865c3126 100644
--- a/src/dotnet/commands/dotnet-projectmodel-server/Helpers/DependencyTypeChangeFinder.cs
+++ b/src/dotnet/commands/dotnet-projectmodel-server/Helpers/DependencyTypeChangeFinder.cs
@@ -9,13 +9,13 @@ namespace Microsoft.DotNet.ProjectModel.Server.Helpers
     {
         public static IEnumerable<DiagnosticMessage> Diagnose(
             ProjectContext context,
-            IEnumerable<string> currentSearchPaths)
+            IEnumerable<string> previousSearchPaths)
         {
             var result = new List<DiagnosticMessage>();
             var project = context.ProjectFile;
             var libraries = context.LibraryManager.GetLibraries();
 
-            var updatedSearchPath = GetUpdatedSearchPaths(currentSearchPaths, project.ResolveSearchPaths());
+            var updatedSearchPath = GetUpdatedSearchPaths(previousSearchPaths, project.ResolveSearchPaths());
             var projectCandiates = GetProjectCandidates(updatedSearchPath);
             var rootDependencies = libraries.FirstOrDefault(library => string.Equals(library.Identity.Name, project.Name))
                                            ?.Dependencies
diff --git a/src/dotnet/commands/dotnet-projectmodel-server/InternalModels/ProjectContextSnapshot.cs b/src/dotnet/commands/dotnet-projectmodel-server/InternalModels/ProjectContextSnapshot.cs
index 73c8f91d4..1307714d0 100644
--- a/src/dotnet/commands/dotnet-projectmodel-server/InternalModels/ProjectContextSnapshot.cs
+++ b/src/dotnet/commands/dotnet-projectmodel-server/InternalModels/ProjectContextSnapshot.cs
@@ -24,13 +24,13 @@ namespace Microsoft.DotNet.ProjectModel.Server
         public IReadOnlyList<DiagnosticMessage> DependencyDiagnostics { get; set; }
         public IDictionary<string, DependencyDescription> Dependencies { get; set; }
 
-        public static ProjectContextSnapshot Create(ProjectContext context, string configuration, IEnumerable<string> currentSearchPaths)
+        public static ProjectContextSnapshot Create(ProjectContext context, string configuration, IEnumerable<string> previousSearchPaths)
         {
             var snapshot = new ProjectContextSnapshot();
 
             var allDependencyDiagnostics = new List<DiagnosticMessage>();
             allDependencyDiagnostics.AddRange(context.LibraryManager.GetAllDiagnostics());
-            allDependencyDiagnostics.AddRange(DependencyTypeChangeFinder.Diagnose(context, currentSearchPaths));
+            allDependencyDiagnostics.AddRange(DependencyTypeChangeFinder.Diagnose(context, previousSearchPaths));
 
             var diagnosticsLookup = allDependencyDiagnostics.ToLookup(d => d.Source);
 
diff --git a/src/dotnet/commands/dotnet-projectmodel-server/InternalModels/ProjectSnapshot.cs b/src/dotnet/commands/dotnet-projectmodel-server/InternalModels/ProjectSnapshot.cs
index 9b44f7652..0b28210bf 100644
--- a/src/dotnet/commands/dotnet-projectmodel-server/InternalModels/ProjectSnapshot.cs
+++ b/src/dotnet/commands/dotnet-projectmodel-server/InternalModels/ProjectSnapshot.cs
@@ -22,7 +22,7 @@ namespace Microsoft.DotNet.ProjectModel.Server
         public static ProjectSnapshot Create(string projectDirectory,
                                              string configuration,
                                              DesignTimeWorkspace workspaceContext,
-                                             IReadOnlyList<string> projectSearchPaths,
+                                             IReadOnlyList<string> previousSearchPaths,
                                              bool clearWorkspaceContextCache)
         {
             var projectContextsCollection = workspaceContext.GetProjectContextCollection(projectDirectory, clearWorkspaceContextCache);
@@ -42,7 +42,7 @@ namespace Microsoft.DotNet.ProjectModel.Server
             foreach (var projectContext in projectContextsCollection.FrameworkOnlyContexts)
             {
                 snapshot.ProjectContexts[projectContext.TargetFramework] =
-                    ProjectContextSnapshot.Create(projectContext, configuration, currentSearchPaths);
+                    ProjectContextSnapshot.Create(projectContext, configuration, previousSearchPaths);
             }
 
             return snapshot;
diff --git a/test/dotnet-projectmodel-server.Tests/DthTests.cs b/test/dotnet-projectmodel-server.Tests/DthTests.cs
index 8e87426e1..77db2d429 100644
--- a/test/dotnet-projectmodel-server.Tests/DthTests.cs
+++ b/test/dotnet-projectmodel-server.Tests/DthTests.cs
@@ -257,11 +257,11 @@ namespace Microsoft.DotNet.ProjectModel.Server.Tests
             }
         }
 
-        [Fact(Skip = "Require dotnet restore integration test")]
+        [Fact]
         public void DthDependencies_UpdateGlobalJson_RefreshDependencies()
         {
-            var assets = new TestAssetsManager(Path.Combine(AppContext.BaseDirectory, "TestAssets", "ProjectModelServer"));
-            var projectPath = assets.CreateTestInstance("DthUpdateSearchPathSample").WithLockFiles().TestRoot;
+            var assetsManager = new TestAssetsManager(Path.Combine(RepoRoot, "TestAssets", "ProjectModelServer"));
+            var projectPath = assetsManager.CreateTestInstance("DthUpdateSearchPathSample").WithLockFiles().TestRoot;
             Assert.True(Directory.Exists(projectPath));
 
             using (var server = new DthTestServer())
@@ -290,7 +290,7 @@ namespace Microsoft.DotNet.ProjectModel.Server.Tests
                 // Overwrite the global.json to remove search path to ext
                 File.WriteAllText(
                     Path.Combine(projectPath, "home", GlobalSettings.FileName),
-                    JsonConvert.SerializeObject(new { project = new string[] { "src" } }));
+                    JsonConvert.SerializeObject(new { projects = new string[] { "src" } }));
 
                 client.SendPayload(testProject, "RefreshDependencies");
 
@@ -302,17 +302,63 @@ namespace Microsoft.DotNet.ProjectModel.Server.Tests
 
                 client.DrainTillFirst("Dependencies")
                       .RetrieveDependency("Newtonsoft.Json")
-                      .AssertProperty("Type", "")
                       .AssertProperty("Resolved", false)
+                      .AssertProperty("Type", "Project")
                       .RetrievePropertyAs<JArray>("Errors")
                       .AssertJArrayCount(1)
                       .RetrieveArraryElementAs<JObject>(0)
-                      .AssertProperty("ErrorCode", "NU1010");
+                      .AssertProperty("ErrorCode", ErrorCodes.NU1010);
 
                 client.DrainTillFirst("DependencyDiagnostics")
                       .RetrieveDependencyDiagnosticsCollection()
                       .RetrieveDependencyDiagnosticsErrorAt<JObject>(0)
-                      .AssertProperty("ErrorCode", "NU1010");
+                      .AssertProperty("ErrorCode", ErrorCodes.NU1010);
+
+                var restoreCommand = new RestoreCommand();
+                restoreCommand.WorkingDirectory = projectPath;
+                restoreCommand.Execute().Should().Pass();
+
+                client.SendPayload(testProject, "RefreshDependencies");
+
+                client.DrainTillFirst("Dependencies")
+                      .RetrieveDependency("Newtonsoft.Json")
+                      .AssertProperty("Resolved", true)
+                      .AssertProperty("Type", "Package")
+                      .RetrievePropertyAs<JArray>("Errors")
+                      .AssertJArrayCount(0);
+
+                client.DrainTillFirst("DependencyDiagnostics")
+                      .RetrievePayloadAs<JObject>()
+                      .AssertProperty<JArray>("Errors", array => array.Count == 0)
+                      .AssertProperty<JArray>("Warnings", array => array.Count == 0);
+
+                // Overwrite the global.json to add search path to ext back
+                File.WriteAllText(
+                    Path.Combine(projectPath, "home", GlobalSettings.FileName),
+                    JsonConvert.SerializeObject(new { projects = new string[] { "src", "../ext" } }));
+
+                client.SendPayload(testProject, "RefreshDependencies");
+                
+                client.DrainTillFirst("ProjectInformation")
+                      .RetrievePayloadAs<JObject>()
+                      .RetrievePropertyAs<JArray>("ProjectSearchPaths")
+                      .AssertJArrayCount(2)
+                      .AssertJArrayElement(0, Path.Combine(projectPath, "home", "src"))
+                      .AssertJArrayElement(1, Path.Combine(projectPath, "ext"));
+
+                client.DrainTillFirst("Dependencies")
+                      .RetrieveDependency("Newtonsoft.Json")
+                      .AssertProperty("Resolved", false)
+                      .AssertProperty("Type", "Package")
+                      .RetrievePropertyAs<JArray>("Errors")
+                      .AssertJArrayCount(1)
+                      .RetrieveArraryElementAs<JObject>(0)
+                      .AssertProperty("ErrorCode", ErrorCodes.NU1010);
+
+                client.DrainTillFirst("DependencyDiagnostics")
+                      .RetrieveDependencyDiagnosticsCollection()
+                      .RetrieveDependencyDiagnosticsErrorAt<JObject>(0)
+                      .AssertProperty("ErrorCode", ErrorCodes.NU1010);
             }
         }