diff --git a/editors/vscode/client/ConfigService.ts b/editors/vscode/client/ConfigService.ts
index 11a22c7908879..2f4bf416712a1 100644
--- a/editors/vscode/client/ConfigService.ts
+++ b/editors/vscode/client/ConfigService.ts
@@ -144,7 +144,30 @@ export class ConfigService implements IDisposable {
       settingsBinary = this.removeWindowsLeadingSlash(settingsBinary);
     }
 
-    return settingsBinary;
+    if (process.platform !== "win32" && settingsBinary.endsWith(".exe")) {
+      // on non-Windows, remove `.exe` extension if present
+      settingsBinary = settingsBinary.slice(0, -4);
+    }
+
+    try {
+      await workspace.fs.stat(Uri.file(settingsBinary));
+      return settingsBinary;
+    } catch {}
+
+    // on Windows, also check for `.exe` extension (bun uses `.exe` for its binaries)
+    if (process.platform === "win32") {
+      if (!settingsBinary.endsWith(".exe")) {
+        settingsBinary += ".exe";
+      }
+
+      try {
+        await workspace.fs.stat(Uri.file(settingsBinary));
+        return settingsBinary;
+      } catch {}
+    }
+
+    // no valid binary found
+    return undefined;
   }
 
   /**
@@ -178,15 +201,32 @@ export class ConfigService implements IDisposable {
       // not found, continue to glob search
     }
 
+    // on Windows, also check for `.exe` extension
+    if (process.platform === "win32") {
+      const binPathExe = `${binPath}.exe`;
+      try {
+        await workspace.fs.stat(Uri.file(binPathExe));
+        return binPathExe;
+      } catch {
+        // not found, continue to glob search
+      }
+    }
+
     const cts = new CancellationTokenSource();
     setTimeout(() => cts.cancel(), 10000); // cancel after 10 seconds
 
     try {
+      // bun package manager uses `.exe` extension on Windows
+      // search for both with and without `.exe` extension
+      const extension = process.platform === "win32" ? "{,.exe}" : "";
       // fallback: search with glob
       // maybe use `tinyglobby` later for better performance, VSCode can be slow on globbing large projects.
       const files = await workspace.findFiles(
-        // search up to 3 levels deep
-        new RelativePattern(workspacePath, `{*/,*/*,*/*/*}/node_modules/.bin/${binaryName}`),
+        // search up to 3 levels deep for the binary path
+        new RelativePattern(
+          workspacePath,
+          `{*/,*/*,*/*/*}/node_modules/.bin/${binaryName}${extension}`,
+        ),
         undefined,
         1,
         cts.token,
diff --git a/editors/vscode/tests/unit/ConfigService.spec.ts b/editors/vscode/tests/unit/ConfigService.spec.ts
index 4a6aadce646ec..d6c824c3c878c 100644
--- a/editors/vscode/tests/unit/ConfigService.spec.ts
+++ b/editors/vscode/tests/unit/ConfigService.spec.ts
@@ -29,31 +29,62 @@ suite('ConfigService', () => {
     return workspace_path;
   };
 
+  const createWorkspaceFolderFileUri = async (relativePath: string) => {
+    const workspace_path = getWorkspaceFolderPlatformSafe();
+    const path = process.platform === 'win32'
+    ? `${workspace_path}\\${relativePath}`
+    : `${workspace_path}/${relativePath}`;
+
+    await workspace.fs.writeFile(
+      WORKSPACE_FOLDER.uri.with({ path }),
+      new Uint8Array(),
+    );
+  }
+
+  const deleteWorkspaceFolderFileUri = async (relativePath: string) => {
+    const workspace_path = getWorkspaceFolderPlatformSafe();
+    const path = process.platform === 'win32'
+    ? `${workspace_path}\\${relativePath}`
+    : `${workspace_path}/${relativePath}`;
+
+    await workspace.fs.delete(
+      WORKSPACE_FOLDER.uri.with({ path }),
+    );
+  }
+
   suite('getOxfmtServerBinPath', () => {
     test('resolves relative server path with workspace folder', async () => {
       const service = new ConfigService();
+      const workspace_path = getWorkspaceFolderPlatformSafe();
       const nonDefinedServerPath = await service.getOxfmtServerBinPath();
 
+      await createWorkspaceFolderFileUri('absolute/oxfmt');
+      await createWorkspaceFolderFileUri('relative/oxfmt');
+
       strictEqual(nonDefinedServerPath, undefined);
 
-      await conf.update('path.oxfmt', '/absolute/oxfmt');
+      await conf.update('path.oxfmt', `${workspace_path}/absolute/oxfmt`);
       const absoluteServerPath = await service.getOxfmtServerBinPath();
 
-      strictEqual(absoluteServerPath, '/absolute/oxfmt');
+      strictEqual(absoluteServerPath, `${workspace_path}/absolute/oxfmt`);
 
       await conf.update('path.oxfmt', './relative/oxfmt');
       const relativeServerPath = await service.getOxfmtServerBinPath();
 
-      const workspace_path = getWorkspaceFolderPlatformSafe();
       strictEqual(relativeServerPath, `${workspace_path}/relative/oxfmt`);
+
+      await deleteWorkspaceFolderFileUri('absolute/oxfmt');
+      await deleteWorkspaceFolderFileUri('relative/oxfmt');
     });
 
     test('returns undefined for unsafe server path', async () => {
+      await createWorkspaceFolderFileUri('../unsafe/oxfmt');
       const service = new ConfigService();
       await conf.update('path.oxfmt', '../unsafe/oxfmt');
       const unsafeServerPath = await service.getOxfmtServerBinPath();
 
       strictEqual(unsafeServerPath, undefined);
+      await deleteWorkspaceFolderFileUri('../unsafe/oxfmt');
     });
 
     test('returns backslashes path on Windows', async () => {
@@ -74,27 +105,36 @@ suite('ConfigService', () => {
     test('resolves relative server path with workspace folder', async () => {
       const service = new ConfigService();
       const nonDefinedServerPath = await service.getOxlintServerBinPath();
+      const workspace_path = getWorkspaceFolderPlatformSafe();
+
+      await createWorkspaceFolderFileUri('absolute/oxlint');
+      await createWorkspaceFolderFileUri('relative/oxlint');
 
       strictEqual(nonDefinedServerPath, undefined);
 
-      await conf.update('path.oxlint', '/absolute/oxlint');
+      await conf.update('path.oxlint', `${workspace_path}/absolute/oxlint`);
       const absoluteServerPath = await service.getOxlintServerBinPath();
 
-      strictEqual(absoluteServerPath, '/absolute/oxlint');
+      strictEqual(absoluteServerPath, `${workspace_path}/absolute/oxlint`);
 
       await conf.update('path.oxlint', './relative/oxlint');
       const relativeServerPath = await service.getOxlintServerBinPath();
 
-      const workspace_path = getWorkspaceFolderPlatformSafe();
       strictEqual(relativeServerPath, `${workspace_path}/relative/oxlint`);
+
+
+      await deleteWorkspaceFolderFileUri('absolute/oxlint');
+      await deleteWorkspaceFolderFileUri('relative/oxlint');
     });
 
     test('returns undefined for unsafe server path', async () => {
+      await createWorkspaceFolderFileUri('../unsafe/oxlint');
       const service = new ConfigService();
       await conf.update('path.oxlint', '../unsafe/oxlint');
       const unsafeServerPath = await service.getOxlintServerBinPath();
 
       strictEqual(unsafeServerPath, undefined);
+      await deleteWorkspaceFolderFileUri('../unsafe/oxlint');
     });
 
     test('returns backslashes path on Windows', async () => {