diff --git a/src/Microsoft.CodeAnalysis.Razor.Workspaces/ProjectSystem/GeneratedCodeContainer.cs b/src/Microsoft.CodeAnalysis.Razor.Workspaces/ProjectSystem/GeneratedCodeContainer.cs
index 548a6733a6..1694071578 100644
--- a/src/Microsoft.CodeAnalysis.Razor.Workspaces/ProjectSystem/GeneratedCodeContainer.cs
+++ b/src/Microsoft.CodeAnalysis.Razor.Workspaces/ProjectSystem/GeneratedCodeContainer.cs
@@ -18,7 +18,7 @@ namespace Microsoft.CodeAnalysis.Razor.ProjectSystem
         public event EventHandler<TextChangeEventArgs> GeneratedCodeChanged;
 
         private SourceText _source;
-        private VersionStamp _sourceVersion;
+        private VersionStamp? _sourceVersion;
         private RazorCSharpDocument _output;
         private DocumentSnapshot _latestDocument;
 
@@ -48,7 +48,7 @@ namespace Microsoft.CodeAnalysis.Razor.ProjectSystem
             {
                 lock (_setOutputLock)
                 {
-                    return _sourceVersion;
+                    return _sourceVersion.Value;
                 }
             }
         }
@@ -106,8 +106,7 @@ namespace Microsoft.CodeAnalysis.Razor.ProjectSystem
                     return;
                 }
 
-                var newerVersion = SourceVersion.GetNewerVersion(version);
-                if (newerVersion == SourceVersion)
+                if (_sourceVersion.HasValue && _sourceVersion == SourceVersion.GetNewerVersion(version))
                 {
                     // Latest document is newer than the provided document.
                     return;
diff --git a/test/Microsoft.CodeAnalysis.Razor.Workspaces.Test/ProjectSystem/GeneratedCodeContainerTest.cs b/test/Microsoft.CodeAnalysis.Razor.Workspaces.Test/ProjectSystem/GeneratedCodeContainerTest.cs
index ede9b52d30..4056e6560d 100644
--- a/test/Microsoft.CodeAnalysis.Razor.Workspaces.Test/ProjectSystem/GeneratedCodeContainerTest.cs
+++ b/test/Microsoft.CodeAnalysis.Razor.Workspaces.Test/ProjectSystem/GeneratedCodeContainerTest.cs
@@ -1,6 +1,8 @@
 // Copyright (c) .NET Foundation. All rights reserved.
 // Licensed under the Apache License, Version 2.0. See License.txt in the project root for license information.
 
+using System.Linq;
+using System.Threading.Tasks;
 using Microsoft.AspNetCore.Razor.Language;
 using Microsoft.CodeAnalysis.Text;
 using Xunit;
@@ -9,6 +11,29 @@ namespace Microsoft.CodeAnalysis.Razor.ProjectSystem
 {
     public class GeneratedCodeContainerTest
     {
+        [Fact]
+        public void SetOutput_AcceptsInitialOutput()
+        {
+            // Arrange
+            var csharpDocument = RazorCSharpDocument.Create("...", RazorCodeGenerationOptions.CreateDefault(), Enumerable.Empty<RazorDiagnostic>());
+            var hostProject = new HostProject("C:/project.csproj", RazorConfiguration.Default);
+            var services = TestWorkspace.Create().Services;
+            var projectState = ProjectState.Create(services, hostProject);
+            var project = new DefaultProjectSnapshot(projectState);
+            var hostDocument = new HostDocument("C:/file.cshtml", "C:/file.cshtml");
+            var text = SourceText.From("...");
+            var textAndVersion = TextAndVersion.Create(text, VersionStamp.Default);
+            var documentState = new DocumentState(services, hostDocument, text, VersionStamp.Default, () => Task.FromResult(textAndVersion));
+            var document = new DefaultDocumentSnapshot(project, documentState);
+            var container = new GeneratedCodeContainer();
+
+            // Act
+            container.SetOutput(csharpDocument, document);
+
+            // Assert
+            Assert.NotNull(container.LatestDocument);
+        }
+
         [Fact]
         public void TryGetLinePositionSpan_SpanWithinSourceMapping_ReturnsTrue()
         {