diff --git a/.gitignore b/.gitignore
index ac609b32..4f47251d 100644
--- a/.gitignore
+++ b/.gitignore
@@ -3,6 +3,9 @@ __pycache__/
 *.py[cod]
 *$py.class
 
+# Mypy cache
+.mypy_cache/
+
 # IntelliJ
 *.iml
 *.ipr
diff --git a/README.md b/README.md
index aa427aba..d0d362e8 100644
--- a/README.md
+++ b/README.md
@@ -84,8 +84,8 @@ All configuration options are described in [`CONFIGURATION.md`](https://github.c
 
 To run the test suite:
 
-```
-pip install .[test] && pytest
+```sh
+pip install '.[test]' && pytest
 ```
 
 After adding configuration options to `schema.json`, refresh the `CONFIGURATION.md` file with
diff --git a/pylsp/python_lsp.py b/pylsp/python_lsp.py
index 81efc353..8e96a8d4 100644
--- a/pylsp/python_lsp.py
+++ b/pylsp/python_lsp.py
@@ -199,7 +199,8 @@ def capabilities(self):
         log.info('Server capabilities: %s', server_capabilities)
         return server_capabilities
 
-    def m_initialize(self, processId=None, rootUri=None, rootPath=None, initializationOptions=None, **_kwargs):
+    def m_initialize(self, processId=None, rootUri=None, rootPath=None,
+                     initializationOptions=None, workspaceFolders=None, **_kwargs):
         log.debug('Language server initialized with %s %s %s %s', processId, rootUri, rootPath, initializationOptions)
         if rootUri is None:
             rootUri = uris.from_fs_path(rootPath) if rootPath is not None else ''
@@ -210,6 +211,19 @@ def m_initialize(self, processId=None, rootUri=None, rootPath=None, initializati
                                     processId, _kwargs.get('capabilities', {}))
         self.workspace = Workspace(rootUri, self._endpoint, self.config)
         self.workspaces[rootUri] = self.workspace
+        if workspaceFolders:
+            for folder in workspaceFolders:
+                uri = folder['uri']
+                if uri == rootUri:
+                    # Already created
+                    continue
+                workspace_config = config.Config(
+                    uri, self.config._init_opts,
+                    self.config._process_id, self.config._capabilities)
+                workspace_config.update(self.config._settings)
+                self.workspaces[uri] = Workspace(
+                    uri, self._endpoint, workspace_config)
+
         self._dispatchers = self._hook('pylsp_dispatchers')
         self._hook('pylsp_initialize')
 
diff --git a/test/fixtures.py b/test/fixtures.py
index c50c1c10..cce5b328 100644
--- a/test/fixtures.py
+++ b/test/fixtures.py
@@ -34,6 +34,34 @@ def pylsp(tmpdir):
     return ls
 
 
+@pytest.fixture
+def pylsp_w_workspace_folders(tmpdir):
+    """ Return an initialized python LS """
+    ls = PythonLSPServer(StringIO, StringIO)
+
+    folder1 = tmpdir.mkdir('folder1')
+    folder2 = tmpdir.mkdir('folder2')
+
+    ls.m_initialize(
+        processId=1,
+        rootUri=uris.from_fs_path(str(folder1)),
+        initializationOptions={},
+        workspaceFolders=[
+            {
+                'uri': uris.from_fs_path(str(folder1)),
+                'name': 'folder1'
+            },
+            {
+                'uri': uris.from_fs_path(str(folder2)),
+                'name': 'folder2'
+            }
+        ]
+    )
+
+    workspace_folders = [folder1, folder2]
+    return (ls, workspace_folders)
+
+
 @pytest.fixture
 def workspace(tmpdir):
     """Return a workspace."""
diff --git a/test/test_workspace.py b/test/test_workspace.py
index e8851e05..a008e7eb 100644
--- a/test/test_workspace.py
+++ b/test/test_workspace.py
@@ -69,6 +69,45 @@ def test_root_project_with_no_setup_py(pylsp):
     assert workspace_root in test_doc.sys_path()
 
 
+def test_multiple_workspaces_from_initialize(pylsp_w_workspace_folders):
+    pylsp, workspace_folders = pylsp_w_workspace_folders
+
+    assert len(pylsp.workspaces) == 2
+
+    folders_uris = [uris.from_fs_path(str(folder)) for folder in workspace_folders]
+
+    for folder_uri in folders_uris:
+        assert folder_uri in pylsp.workspaces
+
+    assert folders_uris[0] == pylsp.root_uri
+
+    # Create file in the first workspace folder.
+    file1 = workspace_folders[0].join('file1.py')
+    file1.write('import os')
+    msg1 = {
+        'uri': path_as_uri(str(file1)),
+        'version': 1,
+        'text': 'import os'
+    }
+
+    pylsp.m_text_document__did_open(textDocument=msg1)
+    assert msg1['uri'] in pylsp.workspace._docs
+    assert msg1['uri'] in pylsp.workspaces[folders_uris[0]]._docs
+
+    # Create file in the second workspace folder.
+    file2 = workspace_folders[1].join('file2.py')
+    file2.write('import sys')
+    msg2 = {
+        'uri': path_as_uri(str(file2)),
+        'version': 1,
+        'text': 'import sys'
+    }
+
+    pylsp.m_text_document__did_open(textDocument=msg2)
+    assert msg2['uri'] not in pylsp.workspace._docs
+    assert msg2['uri'] in pylsp.workspaces[folders_uris[1]]._docs
+
+
 def test_multiple_workspaces(tmpdir, pylsp):
     workspace1_dir = tmpdir.mkdir('workspace1')
     workspace2_dir = tmpdir.mkdir('workspace2')