diff --git a/src/cache_manager.cc b/src/cache_manager.cc
index 2e6109c9..d63cc101 100644
--- a/src/cache_manager.cc
+++ b/src/cache_manager.cc
@@ -50,7 +50,8 @@ struct RealCacheManager : ICacheManager {
       cache_file = EscapeFileName(config_->projectRoot) + '/' +
                    EscapeFileName(source_file.substr(len));
     } else {
-      cache_file = EscapeFileName(source_file);
+      cache_file = '@' + EscapeFileName(config_->projectRoot) + '/' +
+                   EscapeFileName(source_file);
     }
 
     return config_->cacheDirectory + cache_file;
diff --git a/src/messages/initialize.cc b/src/messages/initialize.cc
index 9b6aac7d..adedd608 100644
--- a/src/messages/initialize.cc
+++ b/src/messages/initialize.cc
@@ -572,8 +572,11 @@ struct InitializeHandler : BaseMessageHandler<Ipc_InitializeRequest> {
       // Set project root.
       config->projectRoot = NormalizePath(request->params.rootUri->GetPath());
       EnsureEndsInSlash(config->projectRoot);
+      // Create two cache directories for files inside and outside of the project.
       MakeDirectoryRecursive(config->cacheDirectory +
                              EscapeFileName(config->projectRoot));
+      MakeDirectoryRecursive(config->cacheDirectory +
+                             '@' + EscapeFileName(config->projectRoot));
 
       Timer time;