`tsconfig.json` controls compiler behaviour project-wide. Key options include `strict` (enables all strict type-checking flags), `target` (which JS version to emit), `module` (module system), and `outDir`.
json
{
"compilerOptions": {
"strict": true,
"target": "ES2020",
"module": "ESNext",
"moduleResolution": "bundler",
"noUnusedLocals": true,
"skipLibCheck": true
},
"include": ["src"]
}`strict` bundles flags like `strictNullChecks`, `noImplicitAny`, and `strictFunctionTypes` — enabling it is the recommended default for new projects since it catches far more bugs. `skipLibCheck` speeds up compilation by skipping type-checking of `.d.ts` files from dependencies.