diff --git a/.github/workflows/deploy.yml b/.github/workflows/deploy.yml
index 77fa9fe..df164e7 100644
--- a/.github/workflows/deploy.yml
+++ b/.github/workflows/deploy.yml
@@ -18,6 +18,9 @@ jobs:
         uses: actions/setup-python@v4
         with:
           python-version: '3.10'
+      - name: Setup extension
+        run: |
+          bash ./setup.sh
       - name: Install the dependencies
         run: |
           python -m pip install -r requirements.txt
diff --git a/.gitignore b/.gitignore
index b661992..4936b85 100644
--- a/.gitignore
+++ b/.gitignore
@@ -114,3 +114,6 @@ dmypy.json
 # jupyterlite
 *.doit.db
 _output
+.idea
+.venv
+.yarn
diff --git a/README.md b/README.md
index f8d0424..a876f56 100644
--- a/README.md
+++ b/README.md
@@ -27,3 +27,12 @@ For more info, keep an eye on the JupyterLite documentation:
 
 - How-to Guides: https://jupyterlite.readthedocs.io/en/latest/howto/index.html
 - Reference: https://jupyterlite.readthedocs.io/en/latest/reference/index.html
+
+## Additional Notes
+
+From Team Mat3ra:
+
+- `data_bridge` extensions is built using the `setup.sh`
+- pass `INSTALL=1 BUILD=1` to also build and install the jupyter lite with extension
+- `requirements.txt` is updated as part of the above to include the extension
+- requires `pyenv` and `npm` installed
diff --git a/extensions/src/data_bridge/index.ts b/extensions/src/data_bridge/index.ts
new file mode 100644
index 0000000..d54f59a
--- /dev/null
+++ b/extensions/src/data_bridge/index.ts
@@ -0,0 +1,71 @@
+import {
+    JupyterFrontEnd,
+    JupyterFrontEndPlugin,
+} from "@jupyterlab/application";
+
+import { NotebookPanel } from "@jupyterlab/notebook";
+
+/**
+ * Initialization data for the data-bridge extension.
+ * Similar to https://jupyterlite.readthedocs.io/en/latest/howto/configure/advanced/iframe.html
+ */
+const plugin: JupyterFrontEndPlugin<void> = {
+    id: "data-bridge:plugin",
+    description:
+        "Extension to pass JSON data between host page and Jupyter Lite instance",
+    autoStart: true,
+    activate: async (app: JupyterFrontEnd) => {
+        console.log("JupyterLab extension data-bridge is activated!");
+
+        // @ts-ignore
+        window.sendDataToHost = (data: any) => {
+            window.parent.postMessage(
+                {
+                    type: "from-iframe-to-host",
+                    data: data,
+                },
+                "*"
+            );
+        };
+
+        // @ts-ignore
+        window.requestDataFromHost = () => {
+            window.parent.postMessage(
+                {
+                    type: "from-iframe-to-host",
+                    requestData: true,
+                },
+                "*"
+            );
+        };
+
+        // TODO: set type for data
+        window.addEventListener("message", async (event) => {
+            if (event.data.type === "from-host-to-iframe") {
+                let data = event.data.data;
+                const dataJson = JSON.stringify(data);
+                const code = `
+  import json
+  data = json.loads('${dataJson}')
+  `;
+                // Similar to https://jupyterlab.readthedocs.io/en/stable/api/classes/application.LabShell.html#currentWidget
+                // https://jupyterlite.readthedocs.io/en/latest/reference/api/ts/interfaces/jupyterlite_application.ISingleWidgetShell.html#currentwidget
+                const currentWidget = app.shell.currentWidget;
+
+                if (currentWidget instanceof NotebookPanel) {
+                    const notebookPanel = currentWidget;
+                    const kernel = notebookPanel.sessionContext.session?.kernel;
+                    if (kernel) {
+                        kernel.requestExecute({ code: code });
+                    } else {
+                        console.error("No active kernel found");
+                    }
+                } else {
+                    console.error("Current active widget is not a notebook");
+                }
+            }
+        });
+    },
+};
+
+export default plugin;
diff --git a/requirements.txt b/requirements.txt
index 678147c..d220149 100644
--- a/requirements.txt
+++ b/requirements.txt
@@ -1,6 +1,6 @@
 # Core modules (mandatory)
 jupyterlite-core==0.1.3
-jupyterlab~=3.5.1
+jupyterlab~=4.0.6
 
 # Python kernel (optional)
 jupyterlite-pyodide-kernel==0.1.3
diff --git a/setup.sh b/setup.sh
new file mode 100644
index 0000000..f6d1d29
--- /dev/null
+++ b/setup.sh
@@ -0,0 +1,105 @@
+#!/bin/bash
+# This script creates a JupyterLab extension using the cookiecutter template
+# and updates the requirements.txt file to make it installable in the current 
+# JupyterLab environment.
+# It assumes that pyenv and nvm are installed and configured correctly.
+
+PYTHON_VERSION="3.10"
+NODE_VERSION="18"
+EXTENSION_NAME="data_bridge"
+COOKIECUTTER_TEMPLATE_PATH="$HOME/.cookiecutters/extension-cookiecutter-ts"
+GITHUB_TEMPLATE_URL="https://github.com/jupyterlab/extension-cookiecutter-ts"
+
+kind="frontend"
+author_name="Mat3ra"
+author_email="info@mat3ra.com"
+labextension_name=$EXTENSION_NAME
+python_name=$EXTENSION_NAME
+project_short_description="A JupyterLab extension that allows you to send data between notebook and host page"
+has_settings=n
+has_binder=n
+test=n
+repository="https://github.com/exabyte-io/jupyter-lite"
+
+COOKIECUTTER_OPTIONS=(
+    "$GITHUB_TEMPLATE_URL"
+    "--no-input"
+    "kind=$kind"
+    "author_name=$author_name"
+    "author_email=$author_email"
+    "labextension_name=$labextension_name"
+    "python_name=$python_name"
+    "project_short_description=$project_short_description"
+    "has_settings=$has_settings"
+    "has_binder=$has_binder"
+    "test=$test"
+    "repository=$repository"
+)
+
+# Ensure Python and Node.js are installed and switch to the correct versions
+if [ ! -d "$HOME/.pyenv/versions/$PYTHON_VERSION" ]; then
+    pyenv install $PYTHON_VERSION
+fi
+pyenv local $PYTHON_VERSION
+
+python -m venv .venv
+source .venv/bin/activate
+
+export NVM_DIR="$HOME/.nvm"
+[ -s "$NVM_DIR/nvm.sh" ] && \. "$NVM_DIR/nvm.sh"
+
+nvm install $NODE_VERSION
+nvm use $NODE_VERSION
+
+pip install cookiecutter jupyterlab==4 jupyterlite-core
+
+# Create directory if it doesn't exist
+if [ ! -d "extensions/dist" ]; then
+    mkdir -p extensions/dist
+fi
+cd extensions/dist
+
+# Use cookiecutter with the template path if it exists, otherwise use the URL
+if [ ! -d "$COOKIECUTTER_TEMPLATE_PATH" ]; then
+    cookiecutter "${COOKIECUTTER_OPTIONS[@]}"
+    echo "Created extension using cookiecutter template."
+else
+    # COOKIECUTTER_OPTIONS[0]="$COOKIECUTTER_TEMPLATE_PATH"  
+    cookiecutter "${COOKIECUTTER_OPTIONS[@]}"
+    echo "Created extension using cached cookiecutter template."
+fi
+
+# Copy the index.ts file if both source and destination directories exist
+SRC_FILE="../src/$EXTENSION_NAME/index.ts"
+DEST_DIR="./$EXTENSION_NAME/src"
+if [ -f "$SRC_FILE" ] && [ -d "$DEST_DIR" ]; then
+    cp "$SRC_FILE" "$DEST_DIR/index.ts"
+else
+    echo "Source file or destination directory not found. Skipping copy."
+fi
+
+cd $EXTENSION_NAME
+pip install -ve .
+jupyter labextension develop --overwrite .
+
+# Install dependencies
+jlpm add @jupyterlab/application
+jlpm add @jupyterlab/notebook
+jlpm add @exabyte-io/code.js
+
+# Build the extension
+jlpm run build
+
+cd ../../../
+
+# add to requirements.txt
+LINE="./extensions/dist/$EXTENSION_NAME"
+FILE='requirements.txt'
+grep -qF -- "$LINE" "$FILE" || echo "$LINE" >> "$FILE"
+
+# Install extension
+[[ ! -z $INSTALL ]] && python -m pip install -r requirements.txt
+
+# Build JupyterLite
+[[ ! -z $BUILD ]] && jupyter lite build --contents content --output-dir dist
+