diff --git a/.vscode/launch.json b/.vscode/launch.json
deleted file mode 100644
index c8375dfe52..0000000000
--- a/.vscode/launch.json
+++ /dev/null
@@ -1,127 +0,0 @@
-{
-  "version": "0.2.0",
-  "configurations": [
-    // NOTE: These are not in the code-workspace file because StartDebugging cannot current resolve configs stored there so they have to be here for the Mocha Test Explorer feature.
-    // Ref: https://github.com/microsoft/vscode/issues/150663
-    {
-      "name": "Launch Extension",
-      "type": "extensionHost",
-      "request": "launch",
-      "runtimeExecutable": "${execPath}",
-      "args": [
-        "--extensionDevelopmentPath=${workspaceFolder}"
-      ],
-      "env": {
-        "__TEST_WORKSPACE_PATH": "${workspaceFolder}/examples",
-      },
-      "sourceMaps": true,
-      // This speeds up source map detection and makes smartStep work correctly
-      "outFiles": [
-        "${workspaceFolder}/**/*.js",
-        "!**/node_modules/**",
-        "!**/.vscode-test/**"
-      ],
-      "skipFiles": [
-        "<node_internals>/**",
-        "**/node_modules/**",
-        "**/.vscode-test/**"
-      ],
-      "presentation": {
-        "hidden": false,
-        "group": "test",
-        "order": 2
-      }
-    },
-    {
-      // Runs the extension in an empty temp profile that is automatically cleaned up after use
-      // Undocumented: https://github.com/microsoft/vscode-docs/issues/6220
-      "name": "Launch Extension - Temp Profile",
-      "type": "extensionHost",
-      "request": "launch",
-      "runtimeExecutable": "${execPath}",
-      "args": [
-        "--profile-temp",
-        "--extensionDevelopmentPath=${workspaceFolder}",
-        "${workspaceFolder}/examples"
-      ],
-      "sourceMaps": true,
-      // This speeds up source map detection and makes smartStep work correctly
-      "outFiles": [
-        "${workspaceFolder}/**/*.js",
-        "!**/node_modules/**",
-        "!**/.vscode-test/**"
-      ],
-      "skipFiles": [
-        "<node_internals>/**",
-        "**/node_modules/**",
-        "**/.vscode-test/**"
-      ],
-      "presentation": {
-        "hidden": false,
-        "group": "test",
-        "order": 2
-      }
-    },
-    {
-      // Runs the extension in an isolated but persistent profile separate from the user settings
-      // Undocumented: https://github.com/microsoft/vscode-docs/issues/6220
-      "name": "Launch Extension - Isolated Profile",
-      "type": "extensionHost",
-      "request": "launch",
-      "runtimeExecutable": "${execPath}",
-      "args": [
-        "--profile=debug",
-        "--extensionDevelopmentPath=${workspaceFolder}",
-        "${workspaceFolder}/examples"
-      ],
-      "sourceMaps": true,
-      // This speeds up source map detection and makes smartStep work correctly
-      "outFiles": [
-        "${workspaceFolder}/**/*.js",
-        "!**/node_modules/**",
-        "!**/.vscode-test/**"
-      ],
-      "skipFiles": [
-        "<node_internals>/**",
-        "**/node_modules/**",
-        "**/.vscode-test/**"
-      ],
-      "presentation": {
-        "hidden": false,
-        "group": "test",
-        "order": 2
-      }
-    },
-    {
-      "name": "Test Extension",
-      "type": "node",
-      "request": "launch",
-      "program": "${workspaceFolder}/test/runTests.js",
-      "cascadeTerminateToConfigurations": [
-        "ExtensionTests",
-      ],
-      // This speeds up source map detection and makes smartStep work correctly
-      "outFiles": [
-        "${workspaceFolder}/**/*.js",
-        "!**/node_modules/**",
-        "!**/.vscode-test/**"
-      ],
-      "skipFiles": [
-        "<node_internals>/**",
-        "**/node_modules/**",
-        "**/.vscode-test/**"
-      ],
-      "attachSimplePort": 59229, // The default is 9229 but we want to avoid conflicts because we will have two Code instances running.
-      "env": {
-        "__TEST_DEBUG_INSPECT_PORT": "59229" // Needs to match attachSimplePort
-      },
-      "presentation": {
-        "hidden": false,
-      },
-      "internalConsoleOptions": "neverOpen",
-      "console": "integratedTerminal",
-      "autoAttachChildProcesses": false,
-      "preLaunchTask": "watch-tests"
-    }
-  ]
-}
diff --git a/.vscode/tasks.json b/.vscode/tasks.json
deleted file mode 100644
index fa53736684..0000000000
--- a/.vscode/tasks.json
+++ /dev/null
@@ -1,30 +0,0 @@
-{
-  "version": "2.0.0",
-  "tasks": [
-    {
-      "label": "watch-tests",
-      "icon": {
-        "color": "terminal.ansiCyan",
-        "id": "sync"
-      },
-      "type": "npm",
-      "script": "watch-tests",
-      "group": "test",
-      "problemMatcher": "$tsc-watch",
-      "isBackground": true,
-      "dependsOn": "watch"
-    },
-    {
-      "label": "watch",
-      "icon": {
-        "color": "terminal.ansiCyan",
-        "id": "sync"
-      },
-      "type": "npm",
-      "script": "watch",
-      "group": "build",
-      "problemMatcher": "$esbuild-watch",
-      "isBackground": true
-    }
-  ]
-}
diff --git a/docs/development.md b/docs/development.md
index 28b55750ab..663851e14a 100644
--- a/docs/development.md
+++ b/docs/development.md
@@ -56,10 +56,19 @@ Invoke-Build Build
 Explore the `vscode-powershell.build.ps1` file for other build targets.
 
 ### Launching the extension
+First, ensure you have completed a build as instructed above, as the launch templates do not check some prerequisites for performance reasons.
 
-To debug the extension use one of the provided `Launch Extension` debug configurations (remember to rebuild first).
-You can simultaneously use the `Attach to Editor Services` configuration to attach the .NET debugger to the PowerShell process running the server.
-Try the `powershell.developer.editorServicesWaitForDebugger` setting to attach before startup.
+To debug the extension use one of the provided `Launch Extension` debug configurations.
+1. `Launch Extension`: Launches the debugger using your personal profile settings
+1. `Temp Profile`: Launches VSCode with an ephemeral temp profile that resets on every launch. Useful for "out of the box" environment testing.
+1. `Isolated Profile`: Launches the debugger with a persistent debug profile specific to the extension, so you can preserve some settings or test certain prerequisites.
+
+All three templates use pre-launch tasks to build the code, and support automatic restart of the extension host on changes to the Extension source code. [Hot Reload](https://devblogs.microsoft.com/dotnet/introducing-net-hot-reload/) is also enabled for PowerShell Editor Services.
+
+> [!WARNING]  
+> There is a current limitation that, if you restart the extension/extension host or it is restarted due to a extension code change, the editor services attachment will be disconnected due to the PSES terminal being terminated, and you will either need to restart the debug session completely, or do a manual build of PSES and run the `Attach to Editor Services` debug launch manually.
+
+Try the `powershell.developer.editorServicesWaitForDebugger` setting to ensure that you are fully attached before the extension startup process continues.
 
 ## Contributing Snippets
 
diff --git a/extension-dev.code-workspace b/extension-dev.code-workspace
deleted file mode 100644
index d4e7a6aa4a..0000000000
--- a/extension-dev.code-workspace
+++ /dev/null
@@ -1,231 +0,0 @@
-{
-  "folders": [
-    {
-      "name": "Client",
-      "path": "."
-    },
-    {
-      "name": "Server",
-      "path": "../PowerShellEditorServices"
-    }
-  ],
-  "extensions": {
-    "recommendations": [
-      "davidanson.vscode-markdownlint",
-      "dbaeumer.vscode-eslint",
-      "editorconfig.editorconfig",
-      "josefpihrt-vscode.roslynator",
-      "ms-azure-devops.azure-pipelines",
-      "ms-dotnettools.csharp",
-      "ms-vscode.powershell",
-      "hbenl.vscode-mocha-test-adapter",
-      "connor4312.esbuild-problem-matchers"
-    ]
-  },
-  "settings": {
-    "window.title": "PowerShell VS Code Extension Development",
-    "debug.onTaskErrors": "prompt",
-    "editor.tabSize": 4,
-    "editor.insertSpaces": true,
-    "files.trimTrailingWhitespace": true,
-    "files.insertFinalNewline": true,
-    "files.associations": {
-      "**/snippets/*.json": "jsonc", // Use JSONC instead of JSON because that's how VS Code interprets snippet files, and it enables better source documentation.
-      "**/.vsts-ci/**/*.yml": "azure-pipelines",
-    },
-    // Ignore the Markdown rule:
-    "markdownlint.config": {
-      "MD024": false // no-duplicate-header
-    },
-    "powershell.cwd": "Client",
-    "powershell.codeFormatting.autoCorrectAliases": true,
-    "powershell.codeFormatting.avoidSemicolonsAsLineTerminators": true,
-    "powershell.codeFormatting.newLineAfterCloseBrace": false,
-    "powershell.codeFormatting.trimWhitespaceAroundPipe": true,
-    "powershell.codeFormatting.useCorrectCasing": true,
-    "powershell.codeFormatting.whitespaceBeforeOpenBrace": false,
-    "powershell.codeFormatting.whitespaceBetweenParameters": true,
-    "powershell.codeFormatting.pipelineIndentationStyle": "IncreaseIndentationForFirstPipeline",
-    "typescript.tsdk": "Client/node_modules/typescript/lib", // Lock the TypeScript SDK path to the version we use
-    "typescript.format.semicolons": "insert", // Code actions like "organize imports" ignore ESLint, so we need this here
-    "eslint.format.enable": true, // Enable ESLint as defaut formatter so quick fixes can be applied directly
-    "[typescript]": {
-      "editor.defaultFormatter": "dbaeumer.vscode-eslint",
-      "editor.formatOnPaste": true,
-      "editor.formatOnSave": true,
-      "editor.formatOnSaveMode": "modificationsIfAvailable"
-    },
-    "mochaExplorer.configFile": ".mocharc.json",
-    "mochaExplorer.launcherScript": "test/runTests",
-    "mochaExplorer.autoload": false, // The test instance pops up every time discovery or run is done, this could be annoying on startup.
-    "mochaExplorer.debuggerPort": 59229, // Matches the launch config, we dont want to use the default port as we are launching a duplicate instance of vscode and it might conflict.
-    "mochaExplorer.ipcRole": "server",
-    "mochaExplorer.ipcTimeout": 30000, // 30 seconds
-    "testExplorer.useNativeTesting": true,
-    "mochaExplorer.env": {
-      "VSCODE_VERSION": "insiders",
-      "ELECTRON_RUN_AS_NODE": null
-    }
-  },
-  "tasks": {
-    "version": "2.0.0",
-    "windows": {
-      "options": {
-        "shell": {
-          "executable": "pwsh.exe",
-          "args": [
-            "-NoProfile",
-            "-ExecutionPolicy",
-            "Bypass",
-            "-Command"
-          ]
-        }
-      }
-    },
-    "linux": {
-      "options": {
-        "shell": {
-          "executable": "pwsh",
-          "args": [
-            "-NoProfile",
-            "-Command"
-          ]
-        }
-      }
-    },
-    "osx": {
-      "options": {
-        "shell": {
-          "executable": "/usr/local/bin/pwsh",
-          "args": [
-            "-NoProfile",
-            "-Command"
-          ]
-        }
-      }
-    },
-    "tasks": [
-      {
-        "label": "Build",
-        "type": "shell",
-        "options": {
-          "cwd": "${workspaceFolder:Client}"
-        },
-        "command": "Invoke-Build Build",
-        "problemMatcher": [
-          "$msCompile",
-          "$tsc"
-        ],
-        "group": {
-          "kind": "build",
-          "isDefault": true
-        }
-      },
-      {
-        "label": "Test Client",
-        "type": "shell",
-        "options": {
-          "cwd": "${workspaceFolder:Client}"
-        },
-        "command": "Invoke-Build Test",
-        "problemMatcher": [
-          "$msCompile",
-          "$tsc"
-        ],
-        "group": {
-          "kind": "test",
-          "isDefault": true
-        }
-      },
-      {
-        "label": "Test Server",
-        "type": "shell",
-        "options": {
-          "cwd": "${workspaceFolder:Server}"
-        },
-        "problemMatcher": [
-          "$msCompile"
-        ],
-        "command": "Invoke-Build TestPS74",
-        "group": {
-          "kind": "test",
-          "isDefault": true
-        }
-      },
-      {
-        "label": "Invoke-Build Client",
-        "type": "shell",
-        "options": {
-          "cwd": "${workspaceFolder:Client}"
-        },
-        "command": "Invoke-Build ${input:clientBuildCommand}",
-        "group": "build"
-      },
-      {
-        "label": "Invoke-Build Server",
-        "type": "shell",
-        "options": {
-          "cwd": "${workspaceFolder:Server}"
-        },
-        "command": "Invoke-Build ${input:serverBuildCommand}",
-        "group": "build"
-      }
-    ],
-    "inputs": [
-      {
-        "type": "pickString",
-        "id": "clientBuildCommand",
-        "description": "Which Invoke-Build Client Task?",
-        "options": [
-          "Restore",
-          "Clean",
-          "Build",
-          "Test",
-          "Package"
-        ],
-        "default": "Clean"
-      },
-      {
-        "type": "pickString",
-        "id": "serverBuildCommand",
-        "description": "Which Invoke-Build Server Task?",
-        "options": [
-          "SetupDotNet",
-          "BinClean",
-          "Clean",
-          "Build",
-          "Test",
-          "TestPS74",
-          "TestE2EPwsh",
-          "TestPS51",
-          "TestE2EPowerShell",
-        ],
-        "default": "Clean"
-      }
-    ]
-  },
-  "launch": {
-    "version": "0.2.0",
-    "configurations": [
-      {
-        // https://github.com/OmniSharp/omnisharp-vscode/blob/master/debugger-launchjson.md
-        "name": "Attach to Editor Services",
-        "type": "coreclr",
-        "request": "attach",
-        "processId": "${command:pickProcess}",
-        "justMyCode": false,
-        "suppressJITOptimizations": true,
-        "symbolOptions": {
-          "searchPaths": [],
-          "searchMicrosoftSymbolServer": true,
-          "searchNuGetOrgSymbolServer": true
-        },
-        "presentation": {
-          "hidden": false,
-          "group": "test",
-          "order": 3
-        }
-      }
-    ]
-  }
-}
diff --git a/package.json b/package.json
index bb448383fb..604edb2657 100644
--- a/package.json
+++ b/package.json
@@ -300,7 +300,19 @@
         "title": "Move panel to bottom",
         "category": "PowerShell",
         "icon": "$(layout-panel-right)"
+      },
+      {
+        "title": "[PowerShell Debug Input Task] Wait for and return PSES startup process ID",
+        "command": "PowerShell.WaitForPsesActivationAndReturnProcessId",
+        "enablement": "false"
+      },
+      {
+        "title": "[PowerShell Debug Input Task] Get the VSCode Session ID for writing the PID file",
+        "command": "GetVsCodeSessionId",
+        "enablement": "false"
       }
+
+
     ],
     "menus": {
       "commandPalette": [
diff --git a/pwsh-extension-dev.code-workspace b/pwsh-extension-dev.code-workspace
new file mode 100644
index 0000000000..1986a3a969
--- /dev/null
+++ b/pwsh-extension-dev.code-workspace
@@ -0,0 +1,493 @@
+{
+  "folders": [
+    {
+      "name": "Client",
+      "path": "."
+    },
+    {
+      "name": "Server",
+      "path": "../PowerShellEditorServices"
+    }
+  ],
+
+  "extensions": {
+    "recommendations": [
+      "davidanson.vscode-markdownlint",
+      "dbaeumer.vscode-eslint",
+      "editorconfig.editorconfig",
+      "ms-azure-devops.azure-pipelines",
+      "ms-dotnettools.csharp",
+      "ms-vscode.powershell",
+      "hbenl.vscode-mocha-test-adapter",
+      "connor4312.esbuild-problem-matchers"
+    ]
+  },
+  "settings": {
+    "window.title": "PowerShell VS Code Extension Development",
+    "debug.onTaskErrors": "prompt",
+    "editor.tabSize": 4,
+    "editor.insertSpaces": true,
+    "files.trimTrailingWhitespace": true,
+    "files.insertFinalNewline": true,
+    "files.associations": {
+      "**/snippets/*.json": "jsonc", // Use JSONC instead of JSON because that's how VS Code interprets snippet files, and it enables better source documentation.
+      "**/.vsts-ci/**/*.yml": "azure-pipelines",
+    },
+    // Ignore the Markdown rule:
+    "markdownlint.config": {
+      "MD024": false // no-duplicate-header
+    },
+    "powershell.cwd": "Client",
+    "powershell.codeFormatting.autoCorrectAliases": true,
+    "powershell.codeFormatting.avoidSemicolonsAsLineTerminators": true,
+    "powershell.codeFormatting.newLineAfterCloseBrace": false,
+    "powershell.codeFormatting.trimWhitespaceAroundPipe": true,
+    "powershell.codeFormatting.useCorrectCasing": true,
+    "powershell.codeFormatting.whitespaceBeforeOpenBrace": false,
+    "powershell.codeFormatting.whitespaceBetweenParameters": true,
+    "powershell.codeFormatting.pipelineIndentationStyle": "IncreaseIndentationForFirstPipeline",
+    "typescript.tsdk": "Client/node_modules/typescript/lib", // Lock the TypeScript SDK path to the version we use
+    "typescript.format.semicolons": "insert", // Code actions like "organize imports" ignore ESLint, so we need this here
+    "eslint.format.enable": true, // Enable ESLint as defaut formatter so quick fixes can be applied directly
+    "[typescript]": {
+      "editor.defaultFormatter": "esbenp.prettier-vscode",
+      "editor.formatOnPaste": true,
+      "editor.formatOnSave": true,
+      "editor.formatOnSaveMode": "modificationsIfAvailable"
+    },
+    "mochaExplorer.configFile": ".mocharc.json",
+    "mochaExplorer.launcherScript": "test/runTests",
+    "mochaExplorer.autoload": false, // The test instance pops up every time discovery or run is done, this could be annoying on startup.
+    "mochaExplorer.debuggerPort": 59229, // Matches the launch config, we dont want to use the default port as we are launching a duplicate instance of vscode and it might conflict.
+    "mochaExplorer.ipcRole": "server",
+    "mochaExplorer.ipcTimeout": 30000, // 30 seconds
+    "testExplorer.useNativeTesting": true,
+    "mochaExplorer.env": {
+      "VSCODE_VERSION": "insiders",
+      "ELECTRON_RUN_AS_NODE": null
+    }
+  },
+  "tasks": {
+    "version": "2.0.0",
+    "windows": {
+      "options": {
+        "shell": {
+          "executable": "pwsh.exe",
+          "args": [
+            "-NoProfile",
+            "-ExecutionPolicy",
+            "Bypass",
+            "-Command"
+          ]
+        }
+      }
+    },
+    "linux": {
+      "options": {
+        "shell": {
+          "executable": "pwsh",
+          "args": [
+            "-NoProfile",
+            "-Command"
+          ]
+        }
+      }
+    },
+    "osx": {
+      "options": {
+        "shell": {
+          "executable": "/usr/local/bin/pwsh",
+          "args": [
+            "-NoProfile",
+            "-Command"
+          ]
+        }
+      }
+    },
+    "tasks": [
+      {
+        "label": "Build",
+        "icon": {
+          "id": "tools",
+        },
+        "type": "shell",
+        "options": {
+          "cwd": "${workspaceFolder:Client}"
+        },
+        "command": "Invoke-Build Build",
+        "problemMatcher": [
+          "$msCompile",
+          "$tsc"
+        ],
+        "group": {
+          "kind": "build",
+          "isDefault": true
+        }
+      },
+      {
+        "label": "Extension: Watch",
+        "type": "shell",
+        "isBackground": true,
+        "options": {
+          "cwd": "${workspaceFolder:Client}"
+        },
+        "command": "npm run watch",
+        "problemMatcher": {
+          "owner": "esbuild-watch",
+          "pattern": {
+            "regexp": "^\\[ERROR\\] (.+)\\n\\n\\s+([^:]+):(\\d+):(\\d+):",
+            "message": 1,
+            "file": 2,
+            "line": 3,
+            "column": 4,
+          },
+          "background": {
+            "activeOnStart": true,
+            "beginsPattern": "^\\[watch\\] build started",
+            "endsPattern": "^\\[watch\\] build finished"
+          }
+        },
+        "icon": {
+          "id": "sync",
+          "color": "terminal.ansiCyan"
+        },
+        "group": {
+          "kind": "build",
+        }
+      },
+      {
+        "label": "PSES: BuildIfChanged",
+        "type": "shell",
+        "options": {
+          "cwd": "${workspaceFolder:Server}"
+        },
+        "command": "Invoke-Build BuildIfChanged",
+        "problemMatcher": "$msCompile",
+        "icon": {
+          "id": "tools",
+          "color": "terminal.ansiCyan"
+        },
+        "group": {
+          "kind": "build",
+        }
+      },
+      {
+        "label": "PreLaunch",
+        "dependsOn": [
+          "Extension: Watch",
+          "PSES: BuildIfChanged"
+        ],
+        "dependsOrder": "parallel"
+      },
+      {
+        "label": "Test Client",
+        "type": "shell",
+        "options": {
+          "cwd": "${workspaceFolder:Client}"
+        },
+        "command": "Invoke-Build Test",
+        "problemMatcher": [
+          "$msCompile",
+          "$tsc"
+        ],
+        "group": {
+          "kind": "test",
+          "isDefault": true
+        }
+      },
+      {
+        "label": "Test Server",
+        "type": "shell",
+        "options": {
+          "cwd": "${workspaceFolder:Server}"
+        },
+        "problemMatcher": [
+          "$msCompile"
+        ],
+        "command": "Invoke-Build TestPS74",
+        "group": {
+          "kind": "test",
+          "isDefault": true
+        }
+      },
+      {
+        "label": "Invoke-Build Client",
+        "type": "shell",
+        "options": {
+          "cwd": "${workspaceFolder:Client}"
+        },
+        "command": "Invoke-Build ${input:clientBuildCommand}",
+        "group": "build"
+      },
+      {
+        "label": "Invoke-Build Server",
+        "type": "shell",
+        "options": {
+          "cwd": "${workspaceFolder:Server}"
+        },
+        "command": "Invoke-Build ${input:serverBuildCommand}",
+        "group": "build"
+      }
+    ],
+    "inputs": [
+      {
+        "type": "pickString",
+        "id": "clientBuildCommand",
+        "description": "Which Invoke-Build Client Task?",
+        "options": [
+          "Restore",
+          "Clean",
+          "Build",
+          "Test",
+          "Package"
+        ],
+        "default": "Clean"
+      },
+      {
+        "type": "pickString",
+        "id": "serverBuildCommand",
+        "description": "Which Invoke-Build Server Task?",
+        "options": [
+          "SetupDotNet",
+          "BinClean",
+          "Clean",
+          "Build",
+          "Test",
+          "TestPS74",
+          "TestE2EPwsh",
+          "TestPS51",
+          "TestE2EPowerShell",
+        ],
+        "default": "Clean"
+      }
+    ],
+
+  },
+  "launch": {
+    "version": "0.2.0",
+    "compounds": [
+      {
+        "name": "Launch Extension",
+        "configurations": [
+          "Launch",
+          "PowerShell Editor Services"
+        ],
+        "preLaunchTask": "Build",
+        "stopAll": true,
+        "presentation": {
+          "hidden": false,
+          "group": "Test",
+          "order": 1
+        }
+      },
+      {
+        "name": "Launch Extension - Temp Profile",
+        "configurations": [
+          "Launch-Temp",
+          "PowerShell Editor Services"
+        ],
+        "preLaunchTask": "PreLaunch",
+        "stopAll": true,
+        "presentation": {
+          "hidden": false,
+          "group": "Test",
+          "order": 2
+        }
+      },
+      {
+        "name": "Launch Extension - Isolated Profile",
+        "configurations": [
+          "Launch-Isolated",
+          "PowerShell Editor Services"
+        ],
+        "preLaunchTask": "Build",
+        "stopAll": true,
+        "presentation": {
+          "hidden": false,
+          "group": "Test",
+          "order": 3
+        }
+      },
+      {
+        "name": "Interactively Test Rename",
+        "configurations": [
+          "Launch Extension - Rename Test Cases",
+          "Attach to Editor Services"
+        ],
+        "preLaunchTask": "Build",
+        "stopAll": true,
+        "presentation": {
+          "hidden": false,
+          "group": "Test",
+          "order": 4
+        }
+      }
+    ],
+    "configurations": [
+      {
+        "name": "Launch",
+        "type": "extensionHost",
+        "request": "launch",
+        "env": {
+          "VSCODE_PARENT_SESSION_ID": "${command:GetVsCodeSessionId}",
+        },
+        "runtimeExecutable": "${execPath}",
+        "args": [
+          "--extensionDevelopmentPath=${workspaceFolder:Client}",
+          "${workspaceFolder:Client}/examples"
+        ],
+        "sourceMaps": true,
+        // This speeds up source map detection and makes smartStep work correctly
+        "outFiles": [
+          "${workspaceFolder:Client}/**/*.js",
+          "!**/node_modules/**",
+          "!**/.vscode-test/**"
+        ],
+        "skipFiles": [
+          "<node_internals>/**",
+          "**/node_modules/**",
+          "**/.vscode-test/**",
+          "**/app/out/vs/**" //Skips Extension Host internals
+        ],
+        "presentation": {
+          "hidden": true
+        }
+      },
+      {
+        "name": "Launch-Temp",
+        "type": "extensionHost",
+        "request": "launch",
+        "env": {
+          "VSCODE_PARENT_SESSION_ID": "${command:GetVsCodeSessionId}",
+        },
+        "runtimeExecutable": "${execPath}",
+        "args": [
+          // Runs the extension in an empty temp profile that is automatically cleaned up after use
+          // Undocumented: https://github.com/microsoft/vscode-docs/issues/6220
+          "--profile-temp",
+          "--extensionDevelopmentPath=${workspaceFolder:Client}",
+          "${workspaceFolder:Client}/examples"
+        ],
+        "sourceMaps": true,
+        // This speeds up source map detection and makes smartStep work correctly
+        "outFiles": [
+          "${workspaceFolder:Client}/**/*.js",
+          "!**/node_modules/**",
+          "!**/.vscode-test/**"
+        ],
+        "skipFiles": [
+          "<node_internals>/**",
+          "**/node_modules/**",
+          "**/.vscode-test/**",
+          "**/app/out/vs/**" //Skips Extension Host internals
+        ],
+        "presentation": {
+          "hidden": true
+        }
+      },
+      {
+        "name": "Launch-Isolated",
+        "type": "extensionHost",
+        "request": "launch",
+        "env": {
+          "VSCODE_PARENT_SESSION_ID": "${command:GetVsCodeSessionId}",
+        },
+        "runtimeExecutable": "${execPath}",
+        "args": [
+          // Runs the extension in an empty temp profile that is automatically cleaned up after use
+          // Undocumented: https://github.com/microsoft/vscode-docs/issues/6220
+          "--profile=pwsh-debug",
+          "--extensionDevelopmentPath=${workspaceFolder:Client}",
+          "${workspaceFolder:Client}/examples"
+        ],
+        "sourceMaps": true,
+        // This speeds up source map detection and makes smartStep work correctly
+        "outFiles": [
+          "${workspaceFolder:Client}/**/*.js",
+          "!**/node_modules/**",
+          "!**/.vscode-test/**",
+        ],
+        "skipFiles": [
+          "<node_internals>/**",
+          "**/node_modules/**",
+          "**/.vscode-test/**",
+          "**/app/out/vs/**" //Skips Extension Host internals
+        ],
+        "presentation": {
+          "hidden": true
+        }
+      },
+      {
+        // https://code.visualstudio.com/docs/csharp/debugger-settings
+        "name": "Attach to Editor Services",
+        "type": "coreclr",
+        "request": "attach",
+        // Waits for the extension terminal to become available and gets the PID, saves having to enter it manually.
+        "processId": "${command:PowerShell.PickPSHostProcess}",
+        "justMyCode": true,
+        "suppressJITOptimizations": true,
+        "symbolOptions": {
+          "searchPaths": [],
+          "searchMicrosoftSymbolServer": false,
+          "searchNuGetOrgSymbolServer": false
+        },
+        "presentation": {
+          "hidden": false,
+          "group": "Test",
+          "order": 5
+        },
+        "logging": {
+          "moduleLoad": false
+        },
+      },
+      {
+        // https://code.visualstudio.com/docs/csharp/debugger-settings
+        "name": "PowerShell Editor Services",
+        "type": "coreclr",
+        "request": "attach",
+        // Waits for the extension terminal to become available and gets the PID, saves having to enter it manually.
+        "processId": "${command:PowerShell.WaitForPsesActivationAndReturnProcessId}",
+        "justMyCode": true,
+        "suppressJITOptimizations": true,
+        "symbolOptions": {
+          "searchPaths": [],
+          "searchMicrosoftSymbolServer": false,
+          "searchNuGetOrgSymbolServer": false
+        },
+        "presentation": {
+          "hidden": true
+        },
+        "logging": {
+          "moduleLoad": false
+        }
+      },
+      {
+        // Runs the extension in an isolated but persistent profile separate from the user settings
+        // Undocumented: https://github.com/microsoft/vscode-docs/issues/6220
+        "name": "Launch Extension - Rename Test Cases",
+        "type": "extensionHost",
+        "request": "launch",
+        "runtimeExecutable": "${execPath}",
+        "args": [
+          "--profile=debug",
+          "--extensionDevelopmentPath=${workspaceFolder:Client}",
+          "${workspaceFolder:Server}/test/PowerShellEditorServices.Test.Shared/Refactoring"
+        ],
+        "sourceMaps": true,
+        // This speeds up source map detection and makes smartStep work correctly
+        "outFiles": [
+          "${workspaceFolder:Client}/**/*.js",
+          "!**/node_modules/**",
+          "!**/.vscode-test/**"
+        ],
+        "skipFiles": [
+          "<node_internals>/**",
+          "**/node_modules/**",
+          "**/.vscode-test/**"
+        ],
+        "presentation": {
+          "hidden": true,        }
+      },
+    ]
+  }
+}
diff --git a/src/extension.ts b/src/extension.ts
index 8676724ab1..b1bc52ac8f 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -25,7 +25,6 @@ import { SessionManager } from "./session";
 import { getSettings } from "./settings";
 import { PowerShellLanguageId } from "./utils";
 import { LanguageClientConsumer } from "./languageClientConsumer";
-
 // The 1DS telemetry key, which is just shared among all Microsoft extensions
 // (and isn't sensitive).
 const TELEMETRY_KEY = "0c6ae279ed8443289764825290e4f9e2-1a736e7c-1324-4338-be46-fc2a58ae4d14-7255";
@@ -44,6 +43,9 @@ const documentSelector: DocumentSelector = [
 
 export async function activate(context: vscode.ExtensionContext): Promise<IPowerShellExtensionClient> {
     logger = new Logger();
+    if (context.extensionMode === vscode.ExtensionMode.Development) {
+        restartOnExtensionFileChanges(context);
+    }
 
     telemetryReporter = new TelemetryReporter(TELEMETRY_KEY);
 
@@ -151,7 +153,13 @@ export async function activate(context: vscode.ExtensionContext): Promise<IPower
         vscode.commands.registerCommand(
             "PowerShell.ShowLogs",
             () => {logger.showLogPanel();}
-        )
+        ),
+        vscode.commands.registerCommand(
+            "GetVsCodeSessionId",
+            () => vscode.env.sessionId
+        ),
+        // Register a command that waits for the Externsion Terminal to be active. Can be used by .NET Attach Tasks
+        registerWaitForPsesActivationCommand(context)
     ];
 
     const externalApi = new ExternalApiFeature(context, sessionManager, logger);
@@ -184,6 +192,50 @@ export async function activate(context: vscode.ExtensionContext): Promise<IPower
     };
 }
 
+/** Registers a command that waits for PSES Activation and returns the PID, used to auto-attach the PSES debugger */
+function registerWaitForPsesActivationCommand(context: vscode.ExtensionContext) {
+    return vscode.commands.registerCommand(
+        "PowerShell.WaitForPsesActivationAndReturnProcessId",
+        async () => {
+            const pidFileName = `PSES-${vscode.env.sessionId}.pid`;
+            const pidFile = vscode.Uri.joinPath(context.globalStorageUri, "sessions", pidFileName);
+            const fs = vscode.workspace.fs;
+            // Wait for the file to be created
+            // eslint-disable-next-line @typescript-eslint/no-unnecessary-condition, no-constant-condition
+            while (true) {
+                try {
+                    const pidContent = await fs.readFile(pidFile);
+                    const pid = parseInt(pidContent.toString(), 10);
+                    try {
+                        // Check if the process is still alive, delete the PID file if not and continue waiting.
+                        process.kill(pid, 0);
+                    } catch {
+                        await fs.delete(pidFile);
+                        continue;
+                    }
+                    return pidContent.toString();
+                } catch {
+                    // File doesn't exist yet, wait and try again
+                    await new Promise(resolve => setTimeout(resolve, 1000));
+                }
+            }
+        }
+    );
+}
+
+/** Restarts the extension host when extension file changes are detected. Useful for development.. */
+function restartOnExtensionFileChanges(context: vscode.ExtensionContext): void {
+    const watcher = vscode.workspace.createFileSystemWatcher(
+        new vscode.RelativePattern(context.extensionPath, "dist/*.js")
+    );
+
+    context.subscriptions.push(watcher);
+    watcher.onDidChange(({ fsPath }) => {
+        vscode.window.showInformationMessage(`${fsPath.split(context.extensionPath, 2)[1]} changed. Reloading Extension Host...`);
+        vscode.commands.executeCommand("workbench.action.restartExtensionHost");
+    });
+}
+
 export async function deactivate(): Promise<void> {
     // Clean up all extension features
     for (const commandRegistration of commandRegistrations) {
diff --git a/src/process.ts b/src/process.ts
index 052da2b8bf..f99b0cfa1b 100644
--- a/src/process.ts
+++ b/src/process.ts
@@ -23,6 +23,7 @@ export class PowerShellProcess {
     private consoleCloseSubscription?: vscode.Disposable;
 
     private pid?: number;
+    private pidUpdateEmitter?: vscode.EventEmitter<number | undefined>;
 
     constructor(
         public exePath: string,
@@ -33,10 +34,13 @@ export class PowerShellProcess {
         private logDirectoryPath: vscode.Uri,
         private startPsesArgs: string,
         private sessionFilePath: vscode.Uri,
-        private sessionSettings: Settings) {
+        private sessionSettings: Settings,
+        private devMode = false
+    ) {
 
         this.onExitedEmitter = new vscode.EventEmitter<void>();
         this.onExited = this.onExitedEmitter.event;
+        this.pidUpdateEmitter = new vscode.EventEmitter<number | undefined>();
     }
 
     public async start(cancellationToken: vscode.CancellationToken): Promise<IEditorServicesSessionDetails | undefined> {
@@ -103,7 +107,7 @@ export class PowerShellProcess {
 
         // When VS Code shell integration is enabled, the script expects certain
         // variables to be added to the environment.
-        let envMixin = undefined;
+        let envMixin = {};
         if (this.shellIntegrationEnabled) {
             envMixin = {
                 "VSCODE_INJECTION": "1",
@@ -115,6 +119,12 @@ export class PowerShellProcess {
             };
         }
 
+        // Enables Hot Reload in .NET for the attached process
+        // https://devblogs.microsoft.com/devops/net-enc-support-for-lambdas-and-other-improvements-in-visual-studio-2015/
+        if (this.devMode) {
+            (envMixin as Record<string,string>).COMPLUS_FORCEENC = "1";
+        }
+
         // Launch PowerShell in the integrated terminal
         const terminalOptions: vscode.TerminalOptions = {
             name: this.isTemp ? `${PowerShellProcess.title} (TEMP)` : PowerShellProcess.title,
@@ -136,6 +146,7 @@ export class PowerShellProcess {
         this.consoleTerminal = vscode.window.createTerminal(terminalOptions);
         this.pid = await this.getPid();
         this.logger.write(`PowerShell process started with PID: ${this.pid}`);
+        this.pidUpdateEmitter?.fire(this.pid);
 
         if (this.sessionSettings.integratedConsole.showOnStartup
             && !this.sessionSettings.integratedConsole.startInBackground) {
@@ -186,6 +197,9 @@ export class PowerShellProcess {
 
         this.consoleCloseSubscription?.dispose();
         this.consoleCloseSubscription = undefined;
+
+        this.pidUpdateEmitter?.dispose();
+        this.pidUpdateEmitter = undefined;
     }
 
     public sendKeyPress(): void {
diff --git a/src/session.ts b/src/session.ts
index 0b1037a116..34794a5d3e 100644
--- a/src/session.ts
+++ b/src/session.ts
@@ -240,6 +240,8 @@ export class SessionManager implements Middleware {
             this.logger.write(`Started PowerShell v${this.versionDetails.version}.`);
             this.setSessionRunningStatus(); // Yay, we made it!
 
+            await this.writePidIfInDevMode(this.languageServerProcess);
+
             // Fire and forget the updater.
             const updater = new UpdatePowerShell(this.sessionSettings, this.logger, this.versionDetails);
             void updater.checkForUpdate();
@@ -303,6 +305,26 @@ export class SessionManager implements Middleware {
         await this.start();
     }
 
+    /** In Development mode, write the PID to a file where the parent session can find it, to attach the dotnet debugger. */
+    private async writePidIfInDevMode(pwshProcess: PowerShellProcess): Promise<void> {
+        if (this.extensionContext.extensionMode !== vscode.ExtensionMode.Development) { return; }
+        const parentSessionId = process.env.VSCODE_PARENT_SESSION_ID;
+        const pidFilePath = vscode.Uri.joinPath(this.sessionsFolder, `PSES-${parentSessionId}.pid`);
+
+        if (parentSessionId === undefined) { return; }
+
+        const fs = vscode.workspace.fs;
+        const pid = (await pwshProcess.getPid())!.toString();
+        await fs.writeFile(pidFilePath, Buffer.from(pid));
+        const deletePidOnExit = pwshProcess.onExited(() => {
+            deletePidOnExit.dispose();
+            fs.delete(pidFilePath, {useTrash: false});
+            console.log(`Deleted PID file: ${pidFilePath}`);
+        });
+        this.registeredCommands.push(deletePidOnExit);
+        this.extensionContext.subscriptions.push(deletePidOnExit);
+    }
+
     public getSessionDetails(): IEditorServicesSessionDetails | undefined {
         // This is used by the debugger which should have already called `start`.
         if (this.sessionDetails === undefined) {
@@ -569,7 +591,8 @@ export class SessionManager implements Middleware {
                 this.extensionContext.logUri,
                 this.getEditorServicesArgs(bundledModulesPath, powerShellExeDetails),
                 this.getNewSessionFilePath(),
-                this.sessionSettings);
+                this.sessionSettings,
+                this.extensionContext.extensionMode == vscode.ExtensionMode.Development);
 
         languageServerProcess.onExited(
             () => {