diff --git a/Composer/packages/extension/src/manager/manager.ts b/Composer/packages/extension/src/manager/manager.ts
index 29c80a0ade..15fa510409 100644
--- a/Composer/packages/extension/src/manager/manager.ts
+++ b/Composer/packages/extension/src/manager/manager.ts
@@ -245,12 +245,15 @@ class ExtensionManager {
       const extensionInstallPath = path.dirname(fullPath);
       const packageJson = (await readJson(fullPath)) as PackageJSON;
       const isEnabled = packageJson?.composer && packageJson.composer.enabled !== false;
+      const metadata = getExtensionMetadata(extensionInstallPath, packageJson);
       if (packageJson && (isEnabled || packageJson.extendsComposer === true)) {
-        const metadata = getExtensionMetadata(extensionInstallPath, packageJson);
         this.manifest.updateExtensionConfig(packageJson.name, {
           ...metadata,
           builtIn: true,
         });
+      } else if (this.manifest.getExtensionConfig(packageJson.name)) {
+        // remove the extension if it exists in the manifest
+        this.manifest.removeExtension(packageJson.name);
       }
     }
   }