diff --git a/extensions/emmet/package.json b/extensions/emmet/package.json
index 48aa76ce747b0..69fc0e8873358 100644
--- a/extensions/emmet/package.json
+++ b/extensions/emmet/package.json
@@ -57,13 +57,7 @@
                             "default": "\n"
                         }
                     },
-                    "default":{
-                        "lang": "en",
-                        "locale": "en-US",
-                        "charset": "UTF-8",
-                        "indentation": "\t",
-                        "newline": "\n"
-                    },
+                    "default":{},
                     "description": "Variables to be used in emmet snippets"
                 }
             }
diff --git a/extensions/emmet/src/abbreviationActions.ts b/extensions/emmet/src/abbreviationActions.ts
index 9281a7c4281a1..f3ffe745f4652 100644
--- a/extensions/emmet/src/abbreviationActions.ts
+++ b/extensions/emmet/src/abbreviationActions.ts
@@ -10,7 +10,7 @@ import parseStylesheet from '@emmetio/css-parser';
 import parse from '@emmetio/html-matcher';
 import Node from '@emmetio/node';
 
-import { getSyntax, getProfile, isStyleSheet, getNode, getInnerRange } from './util';
+import { getSyntax, getProfile, getVariables, isStyleSheet, getNode, getInnerRange } from './util';
 import { DocumentStreamReader } from './bufferStream';
 
 const field = (index, placeholder) => `\${${index}${placeholder ? ':' + placeholder : ''}}`;
@@ -147,7 +147,7 @@ function getExpandOptions(syntax: string, textToReplace?: string) {
 		syntax: syntax,
 		profile: getProfile(syntax),
 		addons: syntax === 'jsx' ? { 'jsx': true } : null,
-		variables: vscode.workspace.getConfiguration('emmet')['variables'],
+		variables: getVariables(),
 		text: textToReplace ? textToReplace : ''
 	};
 }
\ No newline at end of file
diff --git a/extensions/emmet/src/extension.ts b/extensions/emmet/src/extension.ts
index 8222b0eef69a1..eaaf869a602d9 100644
--- a/extensions/emmet/src/extension.ts
+++ b/extensions/emmet/src/extension.ts
@@ -15,6 +15,7 @@ import { mergeLines } from './mergeLines';
 import { toggleComment } from './toggleComment';
 import { fetchEditPoint } from './editPoint';
 import { fetchSelectItem } from './selectItem';
+import { updateExtensionsPath } from './util';
 
 const LANGUAGE_MODES: Object = {
 	'html': ['!', '.', '}'],
@@ -109,6 +110,10 @@ export function activate(context: vscode.ExtensionContext) {
 		fetchSelectItem('prev');
 	}));
 
+	updateExtensionsPath();
+	context.subscriptions.push(vscode.workspace.onDidChangeConfiguration(() => {
+		updateExtensionsPath();
+	}));
 }
 
 export function deactivate() {
diff --git a/extensions/emmet/src/util.ts b/extensions/emmet/src/util.ts
index a99e71e49f5df..9dfc5e89d9141 100644
--- a/extensions/emmet/src/util.ts
+++ b/extensions/emmet/src/util.ts
@@ -7,7 +7,12 @@ import * as vscode from 'vscode';
 import parse from '@emmetio/html-matcher';
 import Node from '@emmetio/node';
 import { DocumentStreamReader } from './bufferStream';
+import * as path from 'path';
+import * as fs from 'fs';
 
+let variablesFromFile = {};
+let profilesFromFile = {};
+let emmetExtensionsPath = '';
 export function validate(allowStylesheet: boolean = true): boolean {
 	let editor = vscode.window.activeTextEditor;
 	if (!editor) {
@@ -36,8 +41,10 @@ export function isStyleSheet(syntax): boolean {
 }
 
 export function getProfile(syntax: string): any {
-	let config = vscode.workspace.getConfiguration('emmet')['syntaxProfiles'] || {};
-	let options = config[syntax];
+	let profilesFromSettings = vscode.workspace.getConfiguration('emmet')['syntaxProfiles'] || {};
+	let profilesConfig = Object.assign({}, profilesFromFile, profilesFromSettings);
+
+	let options = profilesConfig[syntax];
 	if (!options || typeof options === 'string') {
 		if (options === 'xhtml') {
 			return {
@@ -84,6 +91,46 @@ export function getProfile(syntax: string): any {
 	return newOptions;
 }
 
+export function getVariables(): any {
+	let variablesFromSettings = vscode.workspace.getConfiguration('emmet')['variables'];
+	return Object.assign({}, variablesFromFile, variablesFromSettings);
+}
+
+export function updateExtensionsPath() {
+	let currentEmmetExtensionsPath = vscode.workspace.getConfiguration('emmet')['extensionsPath'];
+	if (emmetExtensionsPath !== currentEmmetExtensionsPath) {
+		emmetExtensionsPath = currentEmmetExtensionsPath;
+
+		if (emmetExtensionsPath && emmetExtensionsPath.trim()) {
+			let dirPath = path.isAbsolute(emmetExtensionsPath) ? emmetExtensionsPath : path.join(vscode.workspace.rootPath, emmetExtensionsPath);
+			let snippetsPath = path.join(dirPath, 'snippets.json');
+			let profilesPath = path.join(dirPath, 'syntaxProfiles.json');
+			if (dirExists(dirPath)) {
+				fs.readFile(snippetsPath, (err, snippetsData) => {
+					if (err) {
+						return;
+					}
+					try {
+						let snippetsJson = JSON.parse(snippetsData.toString());
+						variablesFromFile = snippetsJson['variables'];
+					} catch (e) {
+
+					}
+				});
+				fs.readFile(profilesPath, (err, profilesData) => {
+					if (err) {
+						return;
+					}
+					try {
+						profilesFromFile = JSON.parse(profilesData.toString());
+					} catch (e) {
+
+					}
+				});
+			}
+		}
+	}
+}
 export function getOpenCloseRange(document: vscode.TextDocument, position: vscode.Position): [vscode.Range, vscode.Range] {
 	let rootNode: Node = parse(new DocumentStreamReader(document));
 	let nodeToUpdate = getNode(rootNode, position);
@@ -259,4 +306,13 @@ export function sameNodes(node1: Node, node2: Node): boolean {
 		return false;
 	}
 	return (<vscode.Position>node1.start).isEqual(node2.start) && (<vscode.Position>node1.end).isEqual(node2.end);
-}
\ No newline at end of file
+}
+
+function dirExists(dirPath: string): boolean {
+	try {
+
+		return fs.statSync(dirPath).isDirectory();
+	} catch (e) {
+		return false;
+	}
+}