diff --git a/registry/coder/modules/vscode-web/README.md b/registry/coder/modules/vscode-web/README.md
index 474578577..b2e922405 100644
--- a/registry/coder/modules/vscode-web/README.md
+++ b/registry/coder/modules/vscode-web/README.md
@@ -14,7 +14,7 @@ Automatically install [Visual Studio Code Server](https://code.visualstudio.com/
 module "vscode-web" {
   count          = data.coder_workspace.me.start_count
   source         = "registry.coder.com/coder/vscode-web/coder"
-  version        = "1.3.1"
+  version        = "1.4.0"
   agent_id       = coder_agent.example.id
   accept_license = true
 }
@@ -30,7 +30,7 @@ module "vscode-web" {
 module "vscode-web" {
   count          = data.coder_workspace.me.start_count
   source         = "registry.coder.com/coder/vscode-web/coder"
-  version        = "1.3.1"
+  version        = "1.4.0"
   agent_id       = coder_agent.example.id
   install_prefix = "/home/coder/.vscode-web"
   folder         = "/home/coder"
@@ -44,7 +44,7 @@ module "vscode-web" {
 module "vscode-web" {
   count          = data.coder_workspace.me.start_count
   source         = "registry.coder.com/coder/vscode-web/coder"
-  version        = "1.3.1"
+  version        = "1.4.0"
   agent_id       = coder_agent.example.id
   extensions     = ["github.copilot", "ms-python.python", "ms-toolsai.jupyter"]
   accept_license = true
@@ -59,7 +59,7 @@ Configure VS Code's [settings.json](https://code.visualstudio.com/docs/getstarte
 module "vscode-web" {
   count      = data.coder_workspace.me.start_count
   source     = "registry.coder.com/coder/vscode-web/coder"
-  version    = "1.3.1"
+  version    = "1.4.0"
   agent_id   = coder_agent.example.id
   extensions = ["dracula-theme.theme-dracula"]
   settings = {
@@ -77,9 +77,24 @@ By default, this module installs the latest. To pin a specific version, retrieve
 module "vscode-web" {
   count          = data.coder_workspace.me.start_count
   source         = "registry.coder.com/coder/vscode-web/coder"
-  version        = "1.3.1"
+  version        = "1.4.0"
   agent_id       = coder_agent.example.id
   commit_id      = "e54c774e0add60467559eb0d1e229c6452cf8447"
   accept_license = true
 }
 ```
+
+### Open an existing workspace on startup
+
+To open an existing workspace on startup the `workspace` parameter can be used to represent a path on disk to a `code-workspace` file.
+Note: Either `workspace` or `folder` can be used, but not both simultaneously. The `code-workspace` file must already be present on disk.
+
+```tf
+module "vscode-web" {
+  count     = data.coder_workspace.me.start_count
+  source    = "registry.coder.com/coder/vscode-web/coder"
+  version   = "1.4.0"
+  agent_id  = coder_agent.example.id
+  workspace = "/home/coder/coder.code-workspace"
+}
+```
diff --git a/registry/coder/modules/vscode-web/main.tf b/registry/coder/modules/vscode-web/main.tf
index c00724544..99cf7539c 100644
--- a/registry/coder/modules/vscode-web/main.tf
+++ b/registry/coder/modules/vscode-web/main.tf
@@ -158,6 +158,12 @@ variable "platform" {
   }
 }
 
+variable "workspace" {
+  type        = string
+  description = "Path to a .code-workspace file to open in vscode-web."
+  default     = null
+}
+
 data "coder_workspace_owner" "me" {}
 data "coder_workspace" "me" {}
 
@@ -178,6 +184,7 @@ resource "coder_script" "vscode-web" {
     DISABLE_TRUST : var.disable_trust,
     EXTENSIONS_DIR : var.extensions_dir,
     FOLDER : var.folder,
+    WORKSPACE : var.workspace,
     AUTO_INSTALL_EXTENSIONS : var.auto_install_extensions,
     SERVER_BASE_PATH : local.server_base_path,
     COMMIT_ID : var.commit_id,
@@ -195,6 +202,11 @@ resource "coder_script" "vscode-web" {
       condition     = !var.offline || !var.use_cached
       error_message = "Offline and Use Cached can not be used together"
     }
+
+    precondition {
+      condition     = (var.workspace == "" || var.folder == "")
+      error_message = "Set only one of `workspace` or `folder`."
+    }
   }
 }
 
@@ -218,6 +230,12 @@ resource "coder_app" "vscode-web" {
 
 locals {
   server_base_path = var.subdomain ? "" : format("/@%s/%s/apps/%s/", data.coder_workspace_owner.me.name, data.coder_workspace.me.name, var.slug)
-  url              = var.folder == "" ? "http://localhost:${var.port}${local.server_base_path}" : "http://localhost:${var.port}${local.server_base_path}?folder=${var.folder}"
-  healthcheck_url  = var.subdomain ? "http://localhost:${var.port}/healthz" : "http://localhost:${var.port}${local.server_base_path}/healthz"
+  url = (
+    var.workspace != "" ?
+    "http://localhost:${var.port}${local.server_base_path}?workspace=${urlencode(var.workspace)}" :
+    var.folder != "" ?
+    "http://localhost:${var.port}${local.server_base_path}?folder=${urlencode(var.folder)}" :
+    "http://localhost:${var.port}${local.server_base_path}"
+  )
+  healthcheck_url = var.subdomain ? "http://localhost:${var.port}/healthz" : "http://localhost:${var.port}${local.server_base_path}/healthz"
 }
diff --git a/registry/coder/modules/vscode-web/run.sh b/registry/coder/modules/vscode-web/run.sh
index 9346b4bdb..98881d721 100644
--- a/registry/coder/modules/vscode-web/run.sh
+++ b/registry/coder/modules/vscode-web/run.sh
@@ -109,18 +109,27 @@ if [ "${AUTO_INSTALL_EXTENSIONS}" = true ]; then
   if ! command -v jq > /dev/null; then
     echo "jq is required to install extensions from a workspace file."
   else
-    WORKSPACE_DIR="$HOME"
-    if [ -n "${FOLDER}" ]; then
-      WORKSPACE_DIR="${FOLDER}"
-    fi
-
-    if [ -f "$WORKSPACE_DIR/.vscode/extensions.json" ]; then
-      printf "🧩 Installing extensions from %s/.vscode/extensions.json...\n" "$WORKSPACE_DIR"
-      # Use sed to remove single-line comments before parsing with jq
-      extensions=$(sed 's|//.*||g' "$WORKSPACE_DIR"/.vscode/extensions.json | jq -r '.recommendations[]')
+    # Prefer WORKSPACE if set and points to a file
+    if [ -n "${WORKSPACE}" ] && [ -f "${WORKSPACE}" ]; then
+      printf "🧩 Installing extensions from %s...\n" "${WORKSPACE}"
+      # Strip single-line comments then parse .extensions.recommendations[]
+      extensions=$(sed 's|//.*||g' "${WORKSPACE}" | jq -r '(.extensions.recommendations // [])[]')
       for extension in $extensions; do
         $VSCODE_WEB "$EXTENSION_ARG" --install-extension "$extension" --force
       done
+    else
+      # Fallback to folder-based .vscode/extensions.json (existing behavior)
+      WORKSPACE_DIR="$HOME"
+      if [ -n "${FOLDER}" ]; then
+        WORKSPACE_DIR="${FOLDER}"
+      fi
+      if [ -f "$WORKSPACE_DIR/.vscode/extensions.json" ]; then
+        printf "🧩 Installing extensions from %s/.vscode/extensions.json...\n" "$WORKSPACE_DIR"
+        extensions=$(sed 's|//.*||g' "$WORKSPACE_DIR/.vscode/extensions.json" | jq -r '.recommendations[]')
+        for extension in $extensions; do
+          $VSCODE_WEB "$EXTENSION_ARG" --install-extension "$extension" --force
+        done
+      fi
     fi
   fi
 fi