diff --git a/src/PowerShellEditorServices/Analysis/AnalysisService.cs b/src/PowerShellEditorServices/Analysis/AnalysisService.cs
index a1ec5a0d4..dd46cbe4f 100644
--- a/src/PowerShellEditorServices/Analysis/AnalysisService.cs
+++ b/src/PowerShellEditorServices/Analysis/AnalysisService.cs
@@ -3,8 +3,10 @@
 // Licensed under the MIT license. See LICENSE file in the project root for full license information.
 //
 
+using Microsoft.PowerShell.EditorServices.Utility;
 using Microsoft.Windows.PowerShell.ScriptAnalyzer;
 using System;
+using System.IO;
 using System.Linq;
 using System.Management.Automation.Runspaces;
 using System.Threading;
@@ -47,17 +49,30 @@ public class AnalysisService : IDisposable
         /// </summary>
         public AnalysisService()
         {
-            this.analysisRunspace = RunspaceFactory.CreateRunspace(InitialSessionState.CreateDefault2());
-            this.analysisRunspace.ApartmentState = ApartmentState.STA;
-            this.analysisRunspace.ThreadOptions = PSThreadOptions.ReuseThread;
-            this.analysisRunspace.Open();
+            try
+            {
+                // Attempt to create a ScriptAnalyzer instance first
+                // just in case the assembly can't be found and we
+                // can skip creating an extra runspace.
+                this.scriptAnalyzer = new ScriptAnalyzer();
+
+                this.analysisRunspace = RunspaceFactory.CreateRunspace(InitialSessionState.CreateDefault2());
+                this.analysisRunspace.ApartmentState = ApartmentState.STA;
+                this.analysisRunspace.ThreadOptions = PSThreadOptions.ReuseThread;
+                this.analysisRunspace.Open();
 
-            this.scriptAnalyzer = new ScriptAnalyzer();
-            this.scriptAnalyzer.Initialize(
-                this.analysisRunspace,
-                new AnalysisOutputWriter(),
-                null,
-                IncludedRules);
+                this.scriptAnalyzer.Initialize(
+                    this.analysisRunspace,
+                    new AnalysisOutputWriter(),
+                    includeRuleNames: IncludedRules,
+                    includeDefaultRules: true);
+            }
+            catch (FileNotFoundException)
+            {
+                Logger.Write(
+                    LogLevel.Warning,
+                    "Script Analyzer binaries not found, AnalysisService will be disabled.");
+            }
         }
 
         #endregion
@@ -72,7 +87,7 @@ public AnalysisService()
         /// <returns>An array of ScriptFileMarkers containing semantic analysis results.</returns>
         public ScriptFileMarker[] GetSemanticMarkers(ScriptFile file)
         {
-            if (file.IsAnalysisEnabled)
+            if (this.scriptAnalyzer != null && file.IsAnalysisEnabled)
             {
                 // TODO: This is a temporary fix until we can change how
                 // ScriptAnalyzer invokes their async tasks.
diff --git a/test/PowerShellEditorServices.Test.Host/LanguageServerTests.cs b/test/PowerShellEditorServices.Test.Host/LanguageServerTests.cs
index a315df418..325f03677 100644
--- a/test/PowerShellEditorServices.Test.Host/LanguageServerTests.cs
+++ b/test/PowerShellEditorServices.Test.Host/LanguageServerTests.cs
@@ -65,6 +65,22 @@ await this.WaitForEvent(
                 string.IsNullOrEmpty(diagnostics.Diagnostics[0].Message));
         }
 
+        [Fact]
+        public async Task ServiceReturnsSemanticMarkers()
+        {
+            // Send the 'didOpen' event
+            await this.SendOpenFileEvent("TestFiles\\SimpleSemanticError.ps1", false);
+
+            // Wait for the diagnostic event
+            PublishDiagnosticsNotification diagnostics = 
+                await this.WaitForEvent(
+                    PublishDiagnosticsNotification.Type);
+
+            // Was there a semantic error?
+            Assert.NotEqual(0, diagnostics.Diagnostics.Length);
+            Assert.Contains("unapproved", diagnostics.Diagnostics[0].Message);
+        }
+
         [Fact]
         public async Task ServiceCompletesFunctionName()
         {
diff --git a/test/PowerShellEditorServices.Test.Host/PowerShellEditorServices.Test.Host.csproj b/test/PowerShellEditorServices.Test.Host/PowerShellEditorServices.Test.Host.csproj
index e847cc94a..6829c0aa3 100644
--- a/test/PowerShellEditorServices.Test.Host/PowerShellEditorServices.Test.Host.csproj
+++ b/test/PowerShellEditorServices.Test.Host/PowerShellEditorServices.Test.Host.csproj
@@ -83,6 +83,9 @@
     <None Include="TestFiles\MultiLineReplace.ps1">
       <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
     </None>
+    <None Include="TestFiles\SimpleSemanticError.ps1">
+      <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
+    </None>
     <None Include="TestFiles\SimpleSyntaxError.ps1">
       <CopyToOutputDirectory>PreserveNewest</CopyToOutputDirectory>
     </None>
diff --git a/test/PowerShellEditorServices.Test.Host/TestFiles/SimpleSemanticError.ps1 b/test/PowerShellEditorServices.Test.Host/TestFiles/SimpleSemanticError.ps1
new file mode 100644
index 000000000..a4956a97a
--- /dev/null
+++ b/test/PowerShellEditorServices.Test.Host/TestFiles/SimpleSemanticError.ps1
@@ -0,0 +1,3 @@
+function Do-Work {
+	# This should trigger the PSUseApprovedVerbs rule
+}
\ No newline at end of file