diff --git a/src/clang_tu.cc b/src/clang_tu.cc
index c64a5ea6..6dccba2e 100644
--- a/src/clang_tu.cc
+++ b/src/clang_tu.cc
@@ -30,15 +30,8 @@ std::string PathFromFileEntry(const FileEntry &file) {
   if (Name.empty())
     Name = file.getName();
   std::string ret = NormalizePath(Name);
-  // Resolve /usr/include/c++/7.3.0 symlink.
-  if (!llvm::any_of(g_config->workspaceFolders, [&](const std::string &root) {
-        return StringRef(ret).startswith(root);
-      })) {
-    SmallString<256> dest;
-    llvm::sys::fs::real_path(ret, dest);
-    ret = llvm::sys::path::convert_to_slash(dest.str());
-  }
-  return ret;
+  // Resolve symlinks outside of workspace folders, e.g. /usr/include/c++/7.3.0
+  return NormalizeFolder(ret) ? ret : RealPath(ret);
 }
 
 static Pos Decomposed2LineAndCol(const SourceManager &SM,
diff --git a/src/config.hh b/src/config.hh
index ac3a5baa..e4360660 100644
--- a/src/config.hh
+++ b/src/config.hh
@@ -32,7 +32,7 @@ initialization options specified by the client. For example, in shell syntax:
 struct Config {
   // **Not available for configuration**
   std::string fallbackFolder;
-  std::vector<std::string> workspaceFolders;
+  std::vector<std::pair<std::string, std::string>> workspaceFolders;
   // If specified, this option overrides compile_commands.json and this
   // external command will be executed with an option |projectRoot|.
   // The initialization options will be provided as stdin.
diff --git a/src/lsp.cc b/src/lsp.cc
index f5e2f3e9..5c56f324 100644
--- a/src/lsp.cc
+++ b/src/lsp.cc
@@ -131,6 +131,8 @@ std::string DocumentUri::GetPath() const {
     ret[0] = toupper(ret[0]);
   }
 #endif
+  if (g_config)
+    NormalizeFolder(ret);
   return ret;
 }
 
diff --git a/src/messages/initialize.cc b/src/messages/initialize.cc
index 437895db..c0344a34 100644
--- a/src/messages/initialize.cc
+++ b/src/messages/initialize.cc
@@ -337,19 +337,30 @@ void Initialize(MessageHandler *m, InitializeParam &param, ReplyOnce &reply) {
   // Set project root.
   EnsureEndsInSlash(project_path);
   g_config->fallbackFolder = project_path;
+  auto &workspaceFolders = g_config->workspaceFolders;
   for (const WorkspaceFolder &wf : param.workspaceFolders) {
     std::string path = wf.uri.GetPath();
     EnsureEndsInSlash(path);
-    g_config->workspaceFolders.push_back(path);
-    LOG_S(INFO) << "add workspace folder " << wf.name << ": " << path;
+    std::string real = RealPath(path) + '/';
+    workspaceFolders.emplace_back(path, path == real ? "" : real);
   }
-  if (param.workspaceFolders.empty())
-    g_config->workspaceFolders.push_back(project_path);
+  if (workspaceFolders.empty()) {
+    std::string real = RealPath(project_path) + '/';
+    workspaceFolders.emplace_back(project_path,
+                                  project_path == real ? "" : real);
+  }
+  std::sort(workspaceFolders.begin(), workspaceFolders.end(),
+            [](auto &l, auto &r) { return l.first.size() > r.first.size(); });
+  for (auto &[folder, real] : workspaceFolders)
+    if (real.empty())
+      LOG_S(INFO) << "workspace folder: " << folder;
+    else
+      LOG_S(INFO) << "workspace folder: " << folder << " -> " << real;
 
   if (g_config->cache.directory.empty())
     g_config->cache.retainInMemory = 1;
   else if (!g_config->cache.hierarchicalPath)
-    for (const std::string &folder : g_config->workspaceFolders) {
+    for (auto &[folder, _] : workspaceFolders) {
       // Create two cache directories for files inside and outside of the
       // project.
       std::string escaped = EscapeFileName(folder.substr(0, folder.size() - 1));
@@ -358,7 +369,7 @@ void Initialize(MessageHandler *m, InitializeParam &param, ReplyOnce &reply) {
     }
 
   idx::Init();
-  for (const std::string &folder : g_config->workspaceFolders)
+  for (auto &[folder, _] : workspaceFolders)
     m->project->Load(folder);
 
   // Start indexer threads. Start this after loading the project, as that
diff --git a/src/messages/workspace.cc b/src/messages/workspace.cc
index 67e3e8a7..60ff01ae 100644
--- a/src/messages/workspace.cc
+++ b/src/messages/workspace.cc
@@ -35,7 +35,7 @@ namespace ccls {
 REFLECT_STRUCT(SymbolInformation, name, kind, location, containerName);
 
 void MessageHandler::workspace_didChangeConfiguration(EmptyParam &) {
-  for (const std::string &folder : g_config->workspaceFolders)
+  for (auto &[folder, _] : g_config->workspaceFolders)
     project->Load(folder);
   project->Index(wfiles, RequestId());
 
@@ -82,7 +82,8 @@ void MessageHandler::workspace_didChangeWorkspaceFolders(
     std::string root = wf.uri.GetPath();
     EnsureEndsInSlash(root);
     LOG_S(INFO) << "delete workspace folder " << wf.name << ": " << root;
-    auto it = llvm::find(g_config->workspaceFolders, root);
+    auto it = llvm::find_if(g_config->workspaceFolders,
+                            [&](auto &folder) { return folder.first == root; });
     if (it != g_config->workspaceFolders.end()) {
       g_config->workspaceFolders.erase(it);
       {
@@ -92,12 +93,21 @@ void MessageHandler::workspace_didChangeWorkspaceFolders(
       project->root2folder.erase(root);
     }
   }
+  auto &workspaceFolders = g_config->workspaceFolders;
   for (const WorkspaceFolder &wf : param.event.added) {
-    std::string root = wf.uri.GetPath();
-    EnsureEndsInSlash(root);
-    LOG_S(INFO) << "add workspace folder " << wf.name << ": " << root;
-    g_config->workspaceFolders.push_back(root);
-    project->Load(root);
+    std::string folder = wf.uri.GetPath();
+    EnsureEndsInSlash(folder);
+    std::string real = RealPath(folder) + '/';
+    if (folder == real)
+      real.clear();
+    LOG_S(INFO) << "add workspace folder " << wf.name << ": "
+                << (real.empty() ? folder : folder + " -> " + real);
+    workspaceFolders.emplace_back();
+    auto it = workspaceFolders.end() - 1;
+    for (; it != workspaceFolders.begin() && folder < it[-1].first; --it)
+      *it = it[-1];
+    *it = {folder, real};
+    project->Load(folder);
   }
 
   project->Index(wfiles, RequestId());
diff --git a/src/pipeline.cc b/src/pipeline.cc
index 4c1070e9..be01b9d8 100644
--- a/src/pipeline.cc
+++ b/src/pipeline.cc
@@ -145,7 +145,7 @@ std::string AppendSerializationFormat(const std::string &base) {
   }
 }
 
-std::string GetCachePath(const std::string &src) {
+std::string GetCachePath(std::string src) {
   if (g_config->cache.hierarchicalPath) {
     std::string ret = src[0] == '/' ? src.substr(1) : src;
 #ifdef _WIN32
@@ -153,7 +153,7 @@ std::string GetCachePath(const std::string &src) {
 #endif
     return g_config->cache.directory + ret;
   }
-  for (auto &root : g_config->workspaceFolders)
+  for (auto &[root, _] : g_config->workspaceFolders)
     if (StringRef(src).startswith(root)) {
       auto len = root.size();
       return g_config->cache.directory +
diff --git a/src/project.cc b/src/project.cc
index d62f71dd..25bfa34c 100644
--- a/src/project.cc
+++ b/src/project.cc
@@ -400,11 +400,17 @@ void Project::LoadDirectory(const std::string &root, Project::Folder &folder) {
       Project::Entry entry;
       entry.root = root;
       DoPathMapping(entry.root);
-      entry.directory = NormalizePath(Cmd.Directory);
+
+      // If workspace folder is real/ but entries use symlink/, convert to
+      // real/.
+      entry.directory = RealPath(Cmd.Directory);
+      NormalizeFolder(entry.directory);
       DoPathMapping(entry.directory);
       entry.filename =
-          NormalizePath(ResolveIfRelative(entry.directory, Cmd.Filename));
+          RealPath(ResolveIfRelative(entry.directory, Cmd.Filename));
+      NormalizeFolder(entry.filename);
       DoPathMapping(entry.filename);
+
       std::vector<std::string> args = std::move(Cmd.CommandLine);
       entry.args.reserve(args.size());
       for (std::string &arg : args) {
diff --git a/src/utils.cc b/src/utils.cc
index 46728522..642f4e24 100644
--- a/src/utils.cc
+++ b/src/utils.cc
@@ -25,7 +25,6 @@ limitations under the License.
 #include <llvm/ADT/StringRef.h>
 #include <llvm/Support/FileSystem.h>
 #include <llvm/Support/Path.h>
-using namespace llvm;
 
 #include <algorithm>
 #include <assert.h>
@@ -36,6 +35,8 @@ using namespace llvm;
 #include <string.h>
 #include <unordered_map>
 
+using namespace llvm;
+
 namespace ccls {
 struct Matcher::Impl {
   std::regex regex;
@@ -142,6 +143,21 @@ std::string ResolveIfRelative(const std::string &directory,
   return NormalizePath(Ret.str());
 }
 
+std::string RealPath(const std::string &path) {
+  SmallString<256> buf;
+  sys::fs::real_path(path, buf);
+  return buf.empty() ? path : llvm::sys::path::convert_to_slash(buf);
+}
+
+bool NormalizeFolder(std::string &path) {
+  for (auto &[root, real] : g_config->workspaceFolders)
+    if (real.size() && llvm::StringRef(path).startswith(real)) {
+      path = root + path.substr(real.size());
+      return true;
+    }
+  return false;
+}
+
 std::optional<int64_t> LastWriteTime(const std::string &path) {
   sys::fs::file_status Status;
   if (sys::fs::status(path, Status))
diff --git a/src/utils.hh b/src/utils.hh
index fcda9d8e..6485d44a 100644
--- a/src/utils.hh
+++ b/src/utils.hh
@@ -62,6 +62,8 @@ std::string EscapeFileName(std::string path);
 
 std::string ResolveIfRelative(const std::string &directory,
                               const std::string &path);
+std::string RealPath(const std::string &path);
+bool NormalizeFolder(std::string &path);
 
 std::optional<int64_t> LastWriteTime(const std::string &path);
 std::optional<std::string> ReadContent(const std::string &filename);