diff --git a/gruntfile.js b/gruntfile.js
index c0e2773ed..f7af56631 100644
--- a/gruntfile.js
+++ b/gruntfile.js
@@ -309,6 +309,12 @@ module.exports = function(grunt) {
                 outDir: localCfg.outModulesDir,
                 options: {
                     fast: 'never',
+
+                    // Resolve non-relative modules like "ui/styling/style"
+                    // based on the project root (not on node_modules which
+                    // is the typescript 1.6+ default)
+                    additionalFlags: '--moduleResolution classic',
+
                     module: "commonjs",
                     target: "es5",
                     sourceMap: false,
diff --git a/package.json b/package.json
index 1b5ab85e1..5f197671c 100644
--- a/package.json
+++ b/package.json
@@ -19,12 +19,12 @@
     "grunt-exec": "0.4.6",
     "grunt-multi-dest": "1.0.0",
     "grunt-shell": "1.1.2",
-    "grunt-ts": "4.2.0",
+    "grunt-ts": "5.0.0-beta.5",
     "grunt-tslint": "2.4.0",
     "mocha": "2.2.5",
     "grunt-simple-mocha": "0.4.0",
     "grunt-env": "0.4.4",
     "chai": "3.2.0",
-    "typescript": "1.5.3"
+    "typescript": "1.6.2"
   }
 }