diff --git a/lsp/src/main/kotlin/org/gradle/declarative/lsp/DeclarativeTextDocumentService.kt b/lsp/src/main/kotlin/org/gradle/declarative/lsp/DeclarativeTextDocumentService.kt
index 70a029b..bd3d976 100644
--- a/lsp/src/main/kotlin/org/gradle/declarative/lsp/DeclarativeTextDocumentService.kt
+++ b/lsp/src/main/kotlin/org/gradle/declarative/lsp/DeclarativeTextDocumentService.kt
@@ -300,7 +300,8 @@ class DeclarativeTextDocumentService : TextDocumentService {
         val fileName = uri.path.substringAfterLast('/')
         val fileSchema = schemaAnalysisEvaluator.evaluate(fileName, text)
         val settingsSchema = schemaAnalysisEvaluator.evaluate(
-            declarativeResources.settingsFile.name, declarativeResources.settingsFile.readText()
+            declarativeResources.settingsFile.name, 
+            declarativeResources.settingsFile.takeIf { it.canRead() }?.readText().orEmpty()
         )
 
         val document = AnalysisDocumentUtils.documentWithModelDefaults(settingsSchema, fileSchema)
diff --git a/tapi-model/src/main/java/org/gradle/declarative/lsp/build/action/GetDeclarativeResourcesModel.java b/tapi-model/src/main/java/org/gradle/declarative/lsp/build/action/GetDeclarativeResourcesModel.java
index 9b6f965..f9dd0aa 100644
--- a/tapi-model/src/main/java/org/gradle/declarative/lsp/build/action/GetDeclarativeResourcesModel.java
+++ b/tapi-model/src/main/java/org/gradle/declarative/lsp/build/action/GetDeclarativeResourcesModel.java
@@ -26,7 +26,9 @@
 import org.gradle.tooling.model.gradle.GradleBuild;
 
 import java.io.File;
+import java.util.Arrays;
 import java.util.List;
+import java.util.function.Function;
 import java.util.stream.Collectors;
 import java.util.stream.StreamSupport;
 
@@ -103,7 +105,14 @@ public File getRootDir() {
         @Override
         public File getSettingsFile() {
             // TODO: this is an assumption about the location of the settings file – get it from Gradle instead.
-            return new File(getRootDir(), "settings.gradle.dcl");
+            List<String> candidateFileNames = Arrays.asList("settings.gradle.dcl", "settings.gradle.kts");
+            Function<String, File> asFileInRootDirectory = it -> new File(getRootDir(), it);
+
+            return candidateFileNames.stream()
+                    .map(asFileInRootDirectory)
+                    .filter(File::exists)
+                    .findFirst()
+                    .orElse(asFileInRootDirectory.apply(candidateFileNames.get(0)));
         }
 
         @Override