diff --git a/jfrog-token/main.tf b/jfrog-token/main.tf
index d9aa55f..9ea0c20 100644
--- a/jfrog-token/main.tf
+++ b/jfrog-token/main.tf
@@ -4,7 +4,7 @@ terraform {
   required_providers {
     coder = {
       source  = "coder/coder"
-      version = ">= 0.12"
+      version = ">= 0.12.4"
     }
     artifactory = {
       source  = "registry.terraform.io/jfrog/artifactory"
@@ -56,6 +56,12 @@ variable "agent_id" {
   description = "The ID of a Coder agent."
 }
 
+variable "configure_code_server" {
+  type        = bool
+  description = "Whether to configure code-server to use JFrog."
+  default     = false
+}
+
 variable "package_managers" {
   type        = map(string)
   description = <<EOF
@@ -102,6 +108,7 @@ resource "coder_script" "jfrog" {
     ARTIFACTORY_USERNAME : local.username,
     ARTIFACTORY_EMAIL : data.coder_workspace.me.owner_email,
     ARTIFACTORY_ACCESS_TOKEN : artifactory_scoped_token.me.access_token,
+    CONFIGURE_CODE_SERVER : var.configure_code_server,
     REPOSITORY_NPM : lookup(var.package_managers, "npm", ""),
     REPOSITORY_GO : lookup(var.package_managers, "go", ""),
     REPOSITORY_PYPI : lookup(var.package_managers, "pypi", ""),
@@ -119,3 +126,38 @@ output "username" {
   description = "value of the JFrog username"
   value       = local.username
 }
+
+resource "coder_env" "jfrog_ide_url" {
+  count    = var.configure_code_server ? 1 : 0
+  agent_id = var.agent_id
+  name     = "JFROG_IDE_URL"
+  value    = var.jfrog_url
+}
+
+resource "coder_env" "jfrog_ide_username" {
+  count    = var.configure_code_server ? 1 : 0
+  agent_id = var.agent_id
+  name     = "JFROG_IDE_USERNAME"
+  value    = local.username
+}
+
+resource "coder_env" "jfrog_ide_password" {
+  count    = var.configure_code_server ? 1 : 0
+  agent_id = var.agent_id
+  name     = "JFROG_IDE_PASSWORD"
+  value    = data.coder_external_auth.jfrog.access_token
+}
+
+resource "coder_env" "jfrog_ide_access_token" {
+  count    = var.configure_code_server ? 1 : 0
+  agent_id = var.agent_id
+  name     = "JFROG_IDE_ACCESS_TOKEN"
+  value    = data.coder_external_auth.jfrog.access_token
+}
+
+resource "coder_env" "jfrog_ide_store_connection" {
+  count    = var.configure_code_server ? 1 : 0
+  agent_id = var.agent_id
+  name     = "JFROG_IDE_STORE_CONNECTION"
+  value    = true
+}
\ No newline at end of file
diff --git a/jfrog-token/run.sh b/jfrog-token/run.sh
index 8006db9..b20b0f2 100644
--- a/jfrog-token/run.sh
+++ b/jfrog-token/run.sh
@@ -56,3 +56,21 @@ else
   export GOPROXY="https://${ARTIFACTORY_USERNAME}:${ARTIFACTORY_ACCESS_TOKEN}@${JFROG_HOST}/artifactory/api/go/${REPOSITORY_GO}"
 fi
 echo "🥳 Configuration complete!"
+
+# Install the JFrog vscode extension for code-server.
+Check if CONFIGURE_CODE_SERVER is set to true
+if [ "${CONFIGURE_CODE_SERVER}" == "true" ]; then
+  if command -v code-server > /dev/null 2>&1; then
+    echo "📦 Installing JFrog extension..."
+    code-server --install-extension jfrog.jfrog-vscode-extension
+    echo "🥳 JFrog extension installed!"
+  elif command /tmp/coder-server/bin/code-server > /dev/null 2>&1; then
+    echo "📦 Installing JFrog extension..."
+    /tmp/coder-server/bin/code-server --install-extension jfrog.jfrog-vscode-extension
+    echo "🥳 JFrog extension installed!"
+  else
+    echo "🤔 code-server is not installed, skipping JFrog extension installation."
+  fi
+else
+  echo "🤔 CONFIGURE_CODE_SERVER is not set to true, skipping JFrog extension installation."
+fi