diff --git a/code-server/main.tf b/code-server/main.tf
index 30b92bc3..8c0f1e06 100644
--- a/code-server/main.tf
+++ b/code-server/main.tf
@@ -95,6 +95,12 @@ variable "use_cached" {
   default     = false
 }
 
+variable "extensions_dir" {
+  type        = string
+  description = "Override the directory to store extensions in."
+  default     = ""
+}
+
 resource "coder_script" "code-server" {
   agent_id     = var.agent_id
   display_name = "code-server"
@@ -110,6 +116,7 @@ resource "coder_script" "code-server" {
     SETTINGS : replace(jsonencode(var.settings), "\"", "\\\""),
     OFFLINE : var.offline,
     USE_CACHED : var.use_cached,
+    EXTENSIONS_DIR : var.extensions_dir,
   })
   run_on_start = true
 
diff --git a/code-server/run.sh b/code-server/run.sh
index 24443243..b04e1315 100755
--- a/code-server/run.sh
+++ b/code-server/run.sh
@@ -6,10 +6,16 @@ CODE='\033[36;40;1m'
 RESET='\033[0m'
 CODE_SERVER="${INSTALL_PREFIX}/bin/code-server"
 
+# Set extension directory
+EXTENSION_ARG=""
+if [ -n "${EXTENSIONS_DIR}" ]; then
+  EXTENSION_ARG="--extensions-dir=${EXTENSIONS_DIR}"
+fi
+
 function run_code_server() {
   echo "👷 Running code-server in the background..."
   echo "Check logs at ${LOG_PATH}!"
-  $CODE_SERVER --auth none --port "${PORT}" --app-name "${APP_NAME}" > "${LOG_PATH}" 2>&1 &
+  $CODE_SERVER "$EXTENSION_ARG" --auth none --port "${PORT}" --app-name "${APP_NAME}" > "${LOG_PATH}" 2>&1 &
 }
 
 # Check if the settings file exists...
@@ -57,7 +63,7 @@ for extension in "$${EXTENSIONLIST[@]}"; do
     continue
   fi
   printf "🧩 Installing extension $${CODE}$extension$${RESET}...\n"
-  output=$($CODE_SERVER --install-extension "$extension")
+  output=$($CODE_SERVER "$EXTENSION_ARG" --install-extension "$extension")
   if [ $? -ne 0 ]; then
     echo "Failed to install extension: $extension: $output"
     exit 1