diff --git a/org.eclipse.jdt.ls.core/src/org/eclipse/jdt/ls/core/internal/managers/StandardProjectsManager.java b/org.eclipse.jdt.ls.core/src/org/eclipse/jdt/ls/core/internal/managers/StandardProjectsManager.java
index 094c981f85..05669bef25 100644
--- a/org.eclipse.jdt.ls.core/src/org/eclipse/jdt/ls/core/internal/managers/StandardProjectsManager.java
+++ b/org.eclipse.jdt.ls.core/src/org/eclipse/jdt/ls/core/internal/managers/StandardProjectsManager.java
@@ -542,12 +542,16 @@ private List<URI> getURIs(String url) {
 
 	private void addWatcher(URI uri, Set<IPath> sources) {
 		if (uri != null && "file".equals(uri.getScheme())) {
-			File file = new File(uri);
-			if (file != null) {
-				IPath path = new Path(file.getAbsolutePath());
-				if (!isContainedIn(path, sources)) {
-					sources.add(path);
+			try {
+				File file = new File(uri);
+				if (file != null) {
+					IPath path = new Path(file.getAbsolutePath());
+					if (!isContainedIn(path, sources)) {
+						sources.add(path);
+					}
 				}
+			} catch (Exception e) {
+				JavaLanguageServerPlugin.logException(e.getMessage(), e);
 			}
 		}
 	}
diff --git a/org.eclipse.jdt.ls.tests/src/org/eclipse/jdt/ls/core/internal/handlers/InitHandlerTest.java b/org.eclipse.jdt.ls.tests/src/org/eclipse/jdt/ls/core/internal/handlers/InitHandlerTest.java
index 7812fa17ee..aca87fd074 100644
--- a/org.eclipse.jdt.ls.tests/src/org/eclipse/jdt/ls/core/internal/handlers/InitHandlerTest.java
+++ b/org.eclipse.jdt.ls.tests/src/org/eclipse/jdt/ls/core/internal/handlers/InitHandlerTest.java
@@ -17,6 +17,7 @@
 import static org.junit.Assert.assertNotNull;
 import static org.junit.Assert.assertNull;
 import static org.junit.Assert.assertTrue;
+import static org.junit.Assert.fail;
 import static org.mockito.Matchers.any;
 import static org.mockito.Mockito.mock;
 import static org.mockito.Mockito.times;
@@ -374,6 +375,26 @@ public int compare(FileSystemWatcher o1, FileSystemWatcher o2) {
 		assertEquals(newWatchers, watchers);
 	}
 
+	// https://github.com/redhat-developer/vscode-java/issues/2429
+	@Test
+	public void testSettingsWatchers() throws Exception {
+		ClientPreferences mockCapabilies = mock(ClientPreferences.class);
+		when(mockCapabilies.isWorkspaceChangeWatchedFilesDynamicRegistered()).thenReturn(Boolean.TRUE);
+		when(preferenceManager.getClientPreferences()).thenReturn(mockCapabilies);
+		try {
+			preferences.setFormatterUrl("file:c:invalid");
+			String settingsUrl = "../../formatter/settings.prefs";
+			preferences.setSettingsUrl(settingsUrl);
+			List<FileSystemWatcher> watchers = projectsManager.registerWatchers();
+			assertEquals("Unexpected watchers:\n" + toString(watchers), 10, watchers.size());
+		} catch (Exception e) {
+			fail(e.getMessage());
+		} finally {
+			preferences.setFormatterUrl(null);
+			preferences.setSettingsUrl(null);
+		}
+	}
+
 	private String toString(List<FileSystemWatcher> watchers) {
 		return watchers.stream().map(FileSystemWatcher::getGlobPattern).collect(Collectors.joining("\n"));
 	}