diff --git a/src/compiler/program.ts b/src/compiler/program.ts
index 8acd63a08d724..6761cf58b9dfe 100644
--- a/src/compiler/program.ts
+++ b/src/compiler/program.ts
@@ -4257,9 +4257,6 @@ export function createProgram(rootNamesOrOptions: readonly string[] | CreateProg
             if (moduleKind === ModuleKind.AMD || moduleKind === ModuleKind.UMD || moduleKind === ModuleKind.System) {
                 createDiagnosticForOptionName(Diagnostics.Option_verbatimModuleSyntax_cannot_be_used_when_module_is_set_to_UMD_AMD_or_System, "verbatimModuleSyntax");
             }
-            if (options.isolatedModules) {
-                createRedundantOptionDiagnostic("isolatedModules", "verbatimModuleSyntax");
-            }
             if (options.preserveValueImports) {
                 createRedundantOptionDiagnostic("preserveValueImports", "verbatimModuleSyntax");
             }
diff --git a/tests/baselines/reference/transpile/Does not support setting isolatedModules (verbatimModuleSyntax=true).errors.txt b/tests/baselines/reference/transpile/Does not support setting isolatedModules (verbatimModuleSyntax=true).errors.txt
index e2c1781e29fad..3d6bff97de1a3 100644
--- a/tests/baselines/reference/transpile/Does not support setting isolatedModules (verbatimModuleSyntax=true).errors.txt	
+++ b/tests/baselines/reference/transpile/Does not support setting isolatedModules (verbatimModuleSyntax=true).errors.txt	
@@ -1,8 +1,6 @@
-error TS5104: Option 'isolatedModules' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
 error TS5107: Option 'target=ES3' is deprecated and will stop functioning in TypeScript 5.5. Specify compilerOption '"ignoreDeprecations": "5.0"' to silence this error.
 
 
-!!! error TS5104: Option 'isolatedModules' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
 !!! error TS5107: Option 'target=ES3' is deprecated and will stop functioning in TypeScript 5.5. Specify compilerOption '"ignoreDeprecations": "5.0"' to silence this error.
 ==== input.js (0 errors) ====
     x;
\ No newline at end of file
diff --git a/tests/baselines/reference/transpile/Does not support setting isolatedModules (verbatimModuleSyntax=true).oldTranspile.errors.txt b/tests/baselines/reference/transpile/Does not support setting isolatedModules (verbatimModuleSyntax=true).oldTranspile.errors.txt
index e2c1781e29fad..3d6bff97de1a3 100644
--- a/tests/baselines/reference/transpile/Does not support setting isolatedModules (verbatimModuleSyntax=true).oldTranspile.errors.txt	
+++ b/tests/baselines/reference/transpile/Does not support setting isolatedModules (verbatimModuleSyntax=true).oldTranspile.errors.txt	
@@ -1,8 +1,6 @@
-error TS5104: Option 'isolatedModules' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
 error TS5107: Option 'target=ES3' is deprecated and will stop functioning in TypeScript 5.5. Specify compilerOption '"ignoreDeprecations": "5.0"' to silence this error.
 
 
-!!! error TS5104: Option 'isolatedModules' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
 !!! error TS5107: Option 'target=ES3' is deprecated and will stop functioning in TypeScript 5.5. Specify compilerOption '"ignoreDeprecations": "5.0"' to silence this error.
 ==== input.js (0 errors) ====
     x;
\ No newline at end of file
diff --git a/tests/baselines/reference/verbatimModuleSyntaxCompat.errors.txt b/tests/baselines/reference/verbatimModuleSyntaxCompat.errors.txt
index e9851f75ee188..4be77662da807 100644
--- a/tests/baselines/reference/verbatimModuleSyntaxCompat.errors.txt
+++ b/tests/baselines/reference/verbatimModuleSyntaxCompat.errors.txt
@@ -4,7 +4,6 @@ error TS5101: Option 'importsNotUsedAsValues' is deprecated and will stop functi
 error TS5101: Option 'preserveValueImports' is deprecated and will stop functioning in TypeScript 5.5. Specify compilerOption '"ignoreDeprecations": "5.0"' to silence this error.
   Use 'verbatimModuleSyntax' instead.
 error TS5104: Option 'importsNotUsedAsValues' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
-error TS5104: Option 'isolatedModules' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
 error TS5104: Option 'preserveValueImports' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
 error TS5105: Option 'verbatimModuleSyntax' cannot be used when 'module' is set to 'UMD', 'AMD', or 'System'.
 
@@ -15,7 +14,6 @@ error TS5105: Option 'verbatimModuleSyntax' cannot be used when 'module' is set
 !!! error TS5101: Option 'preserveValueImports' is deprecated and will stop functioning in TypeScript 5.5. Specify compilerOption '"ignoreDeprecations": "5.0"' to silence this error.
 !!! error TS5101:   Use 'verbatimModuleSyntax' instead.
 !!! error TS5104: Option 'importsNotUsedAsValues' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
-!!! error TS5104: Option 'isolatedModules' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
 !!! error TS5104: Option 'preserveValueImports' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
 !!! error TS5105: Option 'verbatimModuleSyntax' cannot be used when 'module' is set to 'UMD', 'AMD', or 'System'.
 ==== tests/cases/conformance/externalModules/verbatimModuleSyntaxCompat.ts (0 errors) ====
diff --git a/tests/baselines/reference/verbatimModuleSyntaxCompat2.errors.txt b/tests/baselines/reference/verbatimModuleSyntaxCompat2.errors.txt
index 8efe570e1eac1..2c8fcfcbb1eee 100644
--- a/tests/baselines/reference/verbatimModuleSyntaxCompat2.errors.txt
+++ b/tests/baselines/reference/verbatimModuleSyntaxCompat2.errors.txt
@@ -1,4 +1,3 @@
-/tsconfig.json(4,9): error TS5104: Option 'isolatedModules' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
 /tsconfig.json(5,9): error TS5095: Option 'preserveValueImports' can only be used when 'module' is set to 'es2015' or later.
 /tsconfig.json(5,9): error TS5101: Option 'preserveValueImports' is deprecated and will stop functioning in TypeScript 5.5. Specify compilerOption '"ignoreDeprecations": "5.0"' to silence this error.
   Use 'verbatimModuleSyntax' instead.
@@ -8,13 +7,11 @@
 /tsconfig.json(6,9): error TS5104: Option 'importsNotUsedAsValues' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
 
 
-==== /tsconfig.json (6 errors) ====
+==== /tsconfig.json (5 errors) ====
     {
         "compilerOptions": {
             "verbatimModuleSyntax": true,
             "isolatedModules": true,
-            ~~~~~~~~~~~~~~~~~
-!!! error TS5104: Option 'isolatedModules' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
             "preserveValueImports": true,
             ~~~~~~~~~~~~~~~~~~~~~~
 !!! error TS5095: Option 'preserveValueImports' can only be used when 'module' is set to 'es2015' or later.
diff --git a/tests/baselines/reference/verbatimModuleSyntaxCompat4.errors.txt b/tests/baselines/reference/verbatimModuleSyntaxCompat4.errors.txt
index cca2512076220..df27893087b07 100644
--- a/tests/baselines/reference/verbatimModuleSyntaxCompat4.errors.txt
+++ b/tests/baselines/reference/verbatimModuleSyntaxCompat4.errors.txt
@@ -1,4 +1,3 @@
-/tsconfig.json(4,9): error TS5104: Option 'isolatedModules' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
 /tsconfig.json(5,9): error TS5095: Option 'preserveValueImports' can only be used when 'module' is set to 'es2015' or later.
 /tsconfig.json(5,9): error TS5101: Option 'preserveValueImports' is deprecated and will stop functioning in TypeScript 5.5. Specify compilerOption '"ignoreDeprecations": "5.0"' to silence this error.
   Use 'verbatimModuleSyntax' instead.
@@ -8,13 +7,11 @@
 /tsconfig.json(6,9): error TS5104: Option 'importsNotUsedAsValues' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
 
 
-==== /tsconfig.json (6 errors) ====
+==== /tsconfig.json (5 errors) ====
     {
         "extends": "./tsconfig.base.json",
         "compilerOptions": {
             "isolatedModules": true,
-            ~~~~~~~~~~~~~~~~~
-!!! error TS5104: Option 'isolatedModules' is redundant and cannot be specified with option 'verbatimModuleSyntax'.
             "preserveValueImports": true,
             ~~~~~~~~~~~~~~~~~~~~~~
 !!! error TS5095: Option 'preserveValueImports' can only be used when 'module' is set to 'es2015' or later.