diff --git a/src/Tasks/Microsoft.NET.Build.Tasks/build/Microsoft.NET.Sdk.props b/src/Tasks/Microsoft.NET.Build.Tasks/build/Microsoft.NET.Sdk.props
index a8fd34dd3221..f00698d03d6c 100644
--- a/src/Tasks/Microsoft.NET.Build.Tasks/build/Microsoft.NET.Sdk.props
+++ b/src/Tasks/Microsoft.NET.Build.Tasks/build/Microsoft.NET.Sdk.props
@@ -127,6 +127,13 @@ Copyright (c) .NET Foundation. All rights reserved.
     <OverrideToolHost Condition=" '$(DotnetHostPath)' != '' and '$(OverrideToolHost)' == ''">$(DotnetHostPath)</OverrideToolHost>
   </PropertyGroup>
 
+  <!-- Configure how msbuild handles solution files -->
+  <PropertyGroup>
+    <!-- Do not transform solution project dependencies into ProjectReference dependencies
+         https://github.com/Microsoft/msbuild/issues/2274 -->
+    <AddSyntheticProjectReferencesForSolutionDependencies Condition=" '$(AddSyntheticProjectReferencesForSolutionDependencies)' == '' ">false</AddSyntheticProjectReferencesForSolutionDependencies>
+  </PropertyGroup>
+
   <!-- Workaround: https://github.com/dotnet/sdk/issues/1001 -->
   <PropertyGroup Condition=" '$(Configuration)|$(Platform)' == 'Debug|AnyCPU' "/>
   <PropertyGroup Condition=" '$(Configuration)|$(Platform)' == 'Release|AnyCPU' "/>
diff --git a/test/Microsoft.NET.Build.Tests/GivenThatWeWantToBuildASolutionWithSolutionTypeProjectDependencies.cs b/test/Microsoft.NET.Build.Tests/GivenThatWeWantToBuildASolutionWithSolutionTypeProjectDependencies.cs
new file mode 100644
index 000000000000..59bf2d47ca91
--- /dev/null
+++ b/test/Microsoft.NET.Build.Tests/GivenThatWeWantToBuildASolutionWithSolutionTypeProjectDependencies.cs
@@ -0,0 +1,55 @@
+// Copyright (c) .NET Foundation and contributors. All rights reserved.
+// Licensed under the MIT license. See LICENSE file in the project root for full license information.
+
+using System.IO;
+using Microsoft.NET.TestFramework;
+using Microsoft.NET.TestFramework.Assertions;
+using Microsoft.NET.TestFramework.Commands;
+using Xunit;
+using Xunit.Abstractions;
+
+namespace Microsoft.NET.Build.Tests
+{
+    public class GivenThatWeWantToBuildASolutionWithSolutionTypeProjectDependencies : SdkTest
+    {
+        public GivenThatWeWantToBuildASolutionWithSolutionTypeProjectDependencies(ITestOutputHelper log) : base(log)
+        {
+        }
+
+        [Fact]
+        public void It_builds_solution_successfully()
+        {
+            var testAsset = _testAssetsManager
+                .CopyTestAsset("SolutionBasedProjectDependencies")
+                .WithSource();
+
+            testAsset.Restore(Log, Path.Combine(testAsset.TestRoot, "SolutionWithProjectDependency.sln"));
+
+            var buildCommand = new BuildCommand(Log, testAsset.TestRoot, "SolutionWithProjectDependency.sln");
+            buildCommand
+                .Execute()
+                .Should()
+                .Pass();
+
+            var netCoreProjectOutput = new DirectoryInfo(Path.Combine(testAsset.Path, "Core", "bin", "Debug", "netcoreapp1.1"));
+            var fullFrameworkProjectOutput = new DirectoryInfo(Path.Combine(testAsset.Path, "FF", "bin", "Debug", "net451"));
+
+            netCoreProjectOutput
+                .Should()
+                .OnlyHaveFiles(new[] {
+                    "Core.runtimeconfig.dev.json",
+                    "Core.runtimeconfig.json",
+                    "Core.deps.json",
+                    "Core.dll",
+                    "Core.pdb"
+                });
+
+            fullFrameworkProjectOutput
+                .Should()
+                .OnlyHaveFiles(new[] {
+                    "FF.exe",
+                    "FF.pdb"
+                });
+        }
+    }
+}