diff --git a/.vscode/launch.json b/.vscode/launch.json
index 125b94cd2..ea6451fed 100644
--- a/.vscode/launch.json
+++ b/.vscode/launch.json
@@ -45,6 +45,28 @@
                 // Ignore all dependencies (optional)
                 "${workspaceFolder}/node_modules/**"
             ]
+        },
+        {
+            "name": "Run Extension",
+            "type": "extensionHost",
+            "request": "launch",
+            "args": [
+                "--extensionDevelopmentPath=${workspaceFolder}/packages/ide/vscode"
+            ],
+            "sourceMaps": true,
+            "outFiles": ["${workspaceFolder}/packages/ide/vscode/dist/**/*.js"]
+        },
+        {
+            "name": "Attach to Language Server",
+            "type": "node",
+            "port": 6009,
+            "request": "attach",
+            "skipFiles": ["<node_internals>/**"],
+            "sourceMaps": true,
+            "outFiles": [
+                "${workspaceFolder}/packages/ide/vscode/dist/**/*.js",
+                "${workspaceFolder}/packages/ide/vscode/node_modules/langium"
+            ]
         }
     ]
 }
diff --git a/package.json b/package.json
index f1fa25cea..d9447d17d 100644
--- a/package.json
+++ b/package.json
@@ -13,7 +13,7 @@
     },
     "keywords": [],
     "author": "",
-    "license": "ISC",
+    "license": "MIT",
     "devDependencies": {
         "@swc/core": "^1.10.15",
         "@typescript-eslint/eslint-plugin": "~7.3.1",
diff --git a/packages/ide/vscode/.gitignore b/packages/ide/vscode/.gitignore
new file mode 100644
index 000000000..9a14bc7d6
--- /dev/null
+++ b/packages/ide/vscode/.gitignore
@@ -0,0 +1 @@
+syntaxes/
diff --git a/packages/ide/vscode/LICENSE b/packages/ide/vscode/LICENSE
new file mode 120000
index 000000000..5853aaea5
--- /dev/null
+++ b/packages/ide/vscode/LICENSE
@@ -0,0 +1 @@
+../../../LICENSE
\ No newline at end of file
diff --git a/packages/ide/vscode/asset/logo-256-bg.png b/packages/ide/vscode/asset/logo-256-bg.png
new file mode 100644
index 000000000..8ef1fcf09
Binary files /dev/null and b/packages/ide/vscode/asset/logo-256-bg.png differ
diff --git a/packages/ide/vscode/asset/logo-dark-256.png b/packages/ide/vscode/asset/logo-dark-256.png
new file mode 100644
index 000000000..599faab72
Binary files /dev/null and b/packages/ide/vscode/asset/logo-dark-256.png differ
diff --git a/packages/ide/vscode/asset/logo-light-256.png b/packages/ide/vscode/asset/logo-light-256.png
new file mode 100644
index 000000000..7358d53b6
Binary files /dev/null and b/packages/ide/vscode/asset/logo-light-256.png differ
diff --git a/packages/ide/vscode/language-configuration.json b/packages/ide/vscode/language-configuration.json
new file mode 100644
index 000000000..4000da2d9
--- /dev/null
+++ b/packages/ide/vscode/language-configuration.json
@@ -0,0 +1,32 @@
+{
+    "comments": {
+        // symbol used for single line comment. Remove this entry if your language does not support line comments
+        "lineComment": "//",
+        // symbols used for start and end a block comment. Remove this entry if your language does not support block comments
+        "blockComment": ["/*", "*/"]
+    },
+    // symbols used as brackets
+    "brackets": [
+        ["{", "}"],
+        ["[", "]"],
+        ["(", ")"]
+    ],
+    // symbols that are auto closed when typing
+    "autoClosingPairs": [
+        ["{", "}"],
+        ["[", "]"],
+        ["(", ")"],
+        ["\"", "\""],
+        ["'", "'"],
+        { "open": "/**", "close": " */", "notIn": ["string"] }
+    ],
+    // symbols that can be used to surround a selection
+    "surroundingPairs": [
+        ["{", "}"],
+        ["[", "]"],
+        ["(", ")"],
+        ["\"", "\""],
+        ["'", "'"]
+    ],
+    "wordPattern": "(-?\\d*\\.\\d\\w*)|([^\\`\\~\\!\\#\\%\\^\\&\\*\\-\\=\\+\\{\\}\\(\\)\\[\\]\\|\\;\\:\\'\\\"\\,\\.\\<\\>\\/\\s]+)"
+}
diff --git a/packages/ide/vscode/package.json b/packages/ide/vscode/package.json
new file mode 100644
index 000000000..b6c172003
--- /dev/null
+++ b/packages/ide/vscode/package.json
@@ -0,0 +1,88 @@
+{
+    "name": "zenstack",
+    "publisher": "zenstack",
+    "version": "3.0.0",
+    "displayName": "ZenStack Language Tools",
+    "description": "VSCode extension for ZenStack ZModel language",
+    "private": true,
+    "repository": {
+        "type": "git",
+        "url": "https://github.com/zenstackhq/zenstack-v3"
+    },
+    "scripts": {
+        "build": "tsc --noEmit && tsup",
+        "watch": "run-p watch:*",
+        "watch:tsc": "tsc --watch --noEmit",
+        "watch:tsup": "tsup --watch",
+        "lint": "eslint src --ext ts",
+        "vscode:publish": "pnpm build && vsce publish --no-dependencies --pre-release --follow-symlinks",
+        "vscode:package": "pnpm build && vsce package --no-dependencies"
+    },
+    "homepage": "https://zenstack.dev",
+    "icon": "asset/logo-256-bg.png",
+    "keywords": [
+        "fullstack",
+        "react",
+        "typescript",
+        "data modeling",
+        "prisma"
+    ],
+    "author": {
+        "name": "ZenStack Team"
+    },
+    "license": "MIT",
+    "packageManager": "pnpm@10.12.1",
+    "dependencies": {
+        "langium": "~3.3.0",
+        "vscode-languageclient": "^9.0.1",
+        "vscode-languageserver": "^9.0.1",
+        "@zenstackhq/language": "workspace:*"
+    },
+    "devDependencies": {
+        "@types/vscode": "^1.63.0"
+    },
+    "files": [
+        "dist",
+        "res",
+        "syntaxes",
+        "asset",
+        "language-configuration.json"
+    ],
+    "engines": {
+        "vscode": "^1.63.0",
+        "node": ">=18.0.0"
+    },
+    "categories": [
+        "Programming Languages"
+    ],
+    "contributes": {
+        "languages": [
+            {
+                "id": "zmodel",
+                "aliases": [
+                    "ZenStack Model",
+                    "zmodel"
+                ],
+                "extensions": [
+                    ".zmodel"
+                ],
+                "configuration": "./language-configuration.json",
+                "icon": {
+                    "light": "./asset/logo-light-256.png",
+                    "dark": "./asset/logo-dark-256.png"
+                }
+            }
+        ],
+        "grammars": [
+            {
+                "language": "zmodel",
+                "scopeName": "source.zmodel",
+                "path": "./syntaxes/zmodel.tmLanguage.json"
+            }
+        ]
+    },
+    "activationEvents": [
+        "onLanguage:zmodel"
+    ],
+    "main": "./dist/extension.js"
+}
diff --git a/packages/ide/vscode/res b/packages/ide/vscode/res
new file mode 120000
index 000000000..6ae424e99
--- /dev/null
+++ b/packages/ide/vscode/res
@@ -0,0 +1 @@
+../../language/res
\ No newline at end of file
diff --git a/packages/ide/vscode/src/extension/main.ts b/packages/ide/vscode/src/extension/main.ts
new file mode 100644
index 000000000..189eecdb2
--- /dev/null
+++ b/packages/ide/vscode/src/extension/main.ts
@@ -0,0 +1,67 @@
+import * as path from 'node:path';
+import type * as vscode from 'vscode';
+import type {
+    LanguageClientOptions,
+    ServerOptions,
+} from 'vscode-languageclient/node.js';
+import { LanguageClient, TransportKind } from 'vscode-languageclient/node.js';
+
+let client: LanguageClient;
+
+// This function is called when the extension is activated.
+export function activate(context: vscode.ExtensionContext): void {
+    client = startLanguageClient(context);
+}
+
+// This function is called when the extension is deactivated.
+export function deactivate(): Thenable<void> | undefined {
+    if (client) {
+        return client.stop();
+    }
+    return undefined;
+}
+
+function startLanguageClient(context: vscode.ExtensionContext): LanguageClient {
+    const serverModule = context.asAbsolutePath(
+        path.join('dist', 'language-server.js')
+    );
+    // The debug options for the server
+    // --inspect=6009: runs the server in Node's Inspector mode so VS Code can attach to the server for debugging.
+    // By setting `process.env.DEBUG_BREAK` to a truthy value, the language server will wait until a debugger is attached.
+    const debugOptions = {
+        execArgv: [
+            '--nolazy',
+            `--inspect${process.env['DEBUG_BREAK'] ? '-brk' : ''}=${
+                process.env['DEBUG_SOCKET'] || '6009'
+            }`,
+        ],
+    };
+
+    // If the extension is launched in debug mode then the debug server options are used
+    // Otherwise the run options are used
+    const serverOptions: ServerOptions = {
+        run: { module: serverModule, transport: TransportKind.ipc },
+        debug: {
+            module: serverModule,
+            transport: TransportKind.ipc,
+            options: debugOptions,
+        },
+    };
+
+    // Options to control the language client
+    const clientOptions: LanguageClientOptions = {
+        documentSelector: [{ scheme: '*', language: 'zmodel' }],
+    };
+
+    // Create the language client and start the client.
+    const client = new LanguageClient(
+        'zmodel',
+        'ZModel',
+        serverOptions,
+        clientOptions
+    );
+
+    // Start the client. This will also launch the server
+    client.start();
+    return client;
+}
diff --git a/packages/ide/vscode/src/language-server/main.ts b/packages/ide/vscode/src/language-server/main.ts
new file mode 100644
index 000000000..6bd10e9e6
--- /dev/null
+++ b/packages/ide/vscode/src/language-server/main.ts
@@ -0,0 +1,19 @@
+import { createZModelLanguageServices } from '@zenstackhq/language';
+import { startLanguageServer } from 'langium/lsp';
+import { NodeFileSystem } from 'langium/node';
+import {
+    createConnection,
+    ProposedFeatures,
+} from 'vscode-languageserver/node.js';
+
+// Create a connection to the client
+const connection = createConnection(ProposedFeatures.all);
+
+// Inject the shared services and language-specific services
+const { shared } = createZModelLanguageServices({
+    connection,
+    ...NodeFileSystem,
+});
+
+// Start the language server with the shared services
+startLanguageServer(shared);
diff --git a/packages/ide/vscode/syntaxes b/packages/ide/vscode/syntaxes
new file mode 120000
index 000000000..68dd8d1f2
--- /dev/null
+++ b/packages/ide/vscode/syntaxes
@@ -0,0 +1 @@
+../../language/syntaxes
\ No newline at end of file
diff --git a/packages/ide/vscode/tsconfig.json b/packages/ide/vscode/tsconfig.json
new file mode 100644
index 000000000..9402a34e6
--- /dev/null
+++ b/packages/ide/vscode/tsconfig.json
@@ -0,0 +1,7 @@
+{
+    "extends": "../../../tsconfig.json",
+    "compilerOptions": {
+        "outDir": "dist"
+    },
+    "include": ["src/**/*.ts"]
+}
diff --git a/packages/ide/vscode/tsup.config.ts b/packages/ide/vscode/tsup.config.ts
new file mode 100644
index 000000000..78380d7ec
--- /dev/null
+++ b/packages/ide/vscode/tsup.config.ts
@@ -0,0 +1,14 @@
+import { defineConfig } from 'tsup';
+
+export default defineConfig({
+    entry: {
+        extension: 'src/extension/main.ts',
+        'language-server': 'src/language-server/main.ts',
+    },
+    outDir: 'dist',
+    splitting: false,
+    clean: true,
+    format: ['cjs'],
+    noExternal: [/^(?!vscode$)/],
+    external: ['vscode'],
+});
diff --git a/packages/language/package.json b/packages/language/package.json
index ff070f780..a143208cb 100644
--- a/packages/language/package.json
+++ b/packages/language/package.json
@@ -5,7 +5,8 @@
     "license": "MIT",
     "author": "ZenStack Team",
     "files": [
-        "dist"
+        "dist",
+        "res"
     ],
     "type": "module",
     "scripts": {
@@ -20,12 +21,24 @@
     },
     "exports": {
         ".": {
-            "import": "./dist/index.js",
-            "types": "./dist/index.d.ts"
+            "import": {
+                "types": "./dist/index.d.ts",
+                "default": "./dist/index.js"
+            },
+            "require": {
+                "types": "./dist/index.d.cts",
+                "default": "./dist/index.cjs"
+            }
         },
         "./ast": {
-            "import": "./dist/ast.js",
-            "types": "./dist/ast.d.ts"
+            "import": {
+                "types": "./dist/ast.d.ts",
+                "default": "./dist/ast.js"
+            },
+            "require": {
+                "types": "./dist/ast.d.cts",
+                "default": "./dist/ast.cjs"
+            }
         },
         "./package.json": {
             "import": "./package.json",
diff --git a/packages/language/src/index.ts b/packages/language/src/index.ts
index f2dc07a39..102a04f93 100644
--- a/packages/language/src/index.ts
+++ b/packages/language/src/index.ts
@@ -43,16 +43,16 @@ export async function loadDocument(
     }
 
     // load standard library
+
+    // isomorphic __dirname
+    const _dirname =
+        typeof __dirname !== 'undefined'
+            ? __dirname
+            : path.dirname(fileURLToPath(import.meta.url));
     const stdLib =
         await services.shared.workspace.LangiumDocuments.getOrCreateDocument(
             URI.file(
-                path.resolve(
-                    path.join(
-                        path.dirname(fileURLToPath(import.meta.url)),
-                        './res',
-                        STD_LIB_MODULE_NAME
-                    )
-                )
+                path.resolve(path.join(_dirname, '../res', STD_LIB_MODULE_NAME))
             )
         );
 
diff --git a/packages/language/src/module.ts b/packages/language/src/module.ts
index acfa3eb8e..0721285b4 100644
--- a/packages/language/src/module.ts
+++ b/packages/language/src/module.ts
@@ -1,4 +1,4 @@
-import { inject, type Module } from 'langium';
+import { inject, type DeepPartial, type Module } from 'langium';
 import {
     createDefaultModule,
     createDefaultSharedModule,
@@ -13,8 +13,9 @@ import {
     ZModelLanguageMetaData,
 } from './generated/module';
 import { ZModelValidator, registerValidationChecks } from './validator';
-import { ZModelScopeComputation, ZModelScopeProvider } from './zmodel-scope';
 import { ZModelLinker } from './zmodel-linker';
+import { ZModelScopeComputation, ZModelScopeProvider } from './zmodel-scope';
+import { ZModelWorkspaceManager } from './zmodel-workspace-manager';
 export { ZModelLanguageMetaData };
 
 /**
@@ -51,6 +52,17 @@ export const ZModelLanguageModule: Module<
     },
 };
 
+export type ZModelSharedServices = LangiumSharedServices;
+
+export const ZModelSharedModule: Module<
+    ZModelSharedServices,
+    DeepPartial<ZModelSharedServices>
+> = {
+    workspace: {
+        WorkspaceManager: (services) => new ZModelWorkspaceManager(services),
+    },
+};
+
 /**
  * Create the full set of services required by Langium.
  *
@@ -74,7 +86,8 @@ export function createZModelLanguageServices(
 } {
     const shared = inject(
         createDefaultSharedModule(context),
-        ZModelGeneratedSharedModule
+        ZModelGeneratedSharedModule,
+        ZModelSharedModule
     );
     const ZModelLanguage = inject(
         createDefaultModule({ shared }),
diff --git a/packages/language/src/zmodel-workspace-manager.ts b/packages/language/src/zmodel-workspace-manager.ts
new file mode 100644
index 000000000..dda053a0d
--- /dev/null
+++ b/packages/language/src/zmodel-workspace-manager.ts
@@ -0,0 +1,83 @@
+import {
+    DefaultWorkspaceManager,
+    URI,
+    type AstNode,
+    type LangiumDocument,
+    type LangiumDocumentFactory,
+    type WorkspaceFolder,
+} from 'langium';
+import type { LangiumSharedServices } from 'langium/lsp';
+import fs from 'node:fs';
+import path from 'node:path';
+import { fileURLToPath } from 'node:url';
+import { STD_LIB_MODULE_NAME } from './constants';
+
+export class ZModelWorkspaceManager extends DefaultWorkspaceManager {
+    private documentFactory: LangiumDocumentFactory;
+
+    constructor(services: LangiumSharedServices) {
+        super(services);
+        this.documentFactory = services.workspace.LangiumDocumentFactory;
+    }
+
+    protected override async loadAdditionalDocuments(
+        folders: WorkspaceFolder[],
+        collector: (document: LangiumDocument<AstNode>) => void
+    ): Promise<void> {
+        await super.loadAdditionalDocuments(folders, collector);
+
+        // load stdlib.zmodel
+        let stdLibPath: string;
+
+        // First, try to find the stdlib from an installed zenstack package
+        // in the project's node_modules
+        let installedStdlibPath: string | undefined;
+        for (const folder of folders) {
+            const folderPath = this.getRootFolder(folder).fsPath;
+            try {
+                // Try to resolve zenstack from the workspace folder
+                const languagePackagePath = require.resolve(
+                    '@zenstackhq/language/package.json',
+                    {
+                        paths: [folderPath],
+                    }
+                );
+                const languagePackageDir = path.dirname(languagePackagePath);
+                const candidateStdlibPath = path.join(
+                    languagePackageDir,
+                    'res',
+                    STD_LIB_MODULE_NAME
+                );
+
+                // Check if the stdlib file exists in the installed package
+                if (fs.existsSync(candidateStdlibPath)) {
+                    installedStdlibPath = candidateStdlibPath;
+                    console.log(
+                        `Found installed zenstack package stdlib at: ${installedStdlibPath}`
+                    );
+                    break;
+                }
+            } catch (error) {
+                // Package not found or other error, continue to next folder
+                continue;
+            }
+        }
+
+        if (installedStdlibPath) {
+            stdLibPath = installedStdlibPath;
+        } else {
+            // Fallback to bundled stdlib
+            // isomorphic __dirname
+            const _dirname =
+                typeof __dirname !== 'undefined'
+                    ? __dirname
+                    : path.dirname(fileURLToPath(import.meta.url));
+
+            stdLibPath = path.join(_dirname, '../res', STD_LIB_MODULE_NAME);
+            console.log(`Using bundled stdlib in extension:`, stdLibPath);
+        }
+
+        const stdlib = await this.documentFactory.fromUri(URI.file(stdLibPath));
+        collector(stdlib);
+    }
+}
diff --git a/packages/language/tsup.config.ts b/packages/language/tsup.config.ts
index a28df8752..a6af92cea 100644
--- a/packages/language/tsup.config.ts
+++ b/packages/language/tsup.config.ts
@@ -1,5 +1,4 @@
 import { defineConfig } from 'tsup';
-import fs from 'node:fs';
 
 export default defineConfig({
     entry: {
@@ -11,8 +10,5 @@ export default defineConfig({
     sourcemap: true,
     clean: true,
     dts: true,
-    format: ['esm'],
-    async onSuccess() {
-        fs.cpSync('./res', './dist/res', { recursive: true });
-    },
+    format: ['esm', 'cjs'],
 });
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index 4432b4afe..2d544c488 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -125,6 +125,25 @@ importers:
         specifier: ^20.0.0
         version: 20.17.24
 
+  packages/ide/vscode:
+    dependencies:
+      '@zenstackhq/language':
+        specifier: workspace:*
+        version: link:../../language
+      langium:
+        specifier: ~3.3.0
+        version: 3.3.0
+      vscode-languageclient:
+        specifier: ^9.0.1
+        version: 9.0.1
+      vscode-languageserver:
+        specifier: ^9.0.1
+        version: 9.0.1
+    devDependencies:
+      '@types/vscode':
+        specifier: ^1.63.0
+        version: 1.101.0
+
   packages/language:
     dependencies:
       langium:
@@ -1078,6 +1097,9 @@ packages:
   '@types/tmp@0.2.6':
     resolution: {integrity: sha512-chhaNf2oKHlRkDGt+tiKE2Z5aJ6qalm7Z9rlLdBwmOiAAf09YQvvoLXjWK4HWPF1xU/fqvMgfNfpVoBscA/tKA==}
 
+  '@types/vscode@1.101.0':
+    resolution: {integrity: sha512-ZWf0IWa+NGegdW3iU42AcDTFHWW7fApLdkdnBqwYEtHVIBGbTu0ZNQKP/kX3Ds/uMJXIMQNAojHR4vexCEEz5Q==}
+
   '@typescript-eslint/eslint-plugin@7.3.1':
     resolution: {integrity: sha512-STEDMVQGww5lhCuNXVSQfbfuNII5E08QWkvAw5Qwf+bj2WT+JkG1uc+5/vXA3AOYMDHVOSpL+9rcbEUiHIm2dw==}
     engines: {node: ^18.18.0 || >=20.0.0}
@@ -2035,6 +2057,10 @@ packages:
   minimatch@3.1.2:
     resolution: {integrity: sha512-J7p63hRiAjw1NDEww1W7i37+ByIrOWO5XQQAzZ3VOcL0PNybwpfmV/N05zFAzwQ9USyEcX6t3UO+K5aqBQOIHw==}
 
+  minimatch@5.1.6:
+    resolution: {integrity: sha512-lKwV/1brpG6mBUFHtb7NUmtABCb2WZZmm2wNiOA5hAb8VdCS4B3dtMWyvcoViccwAW/COERjXLt0zP1zXUN26g==}
+    engines: {node: '>=10'}
+
   minimatch@9.0.3:
     resolution: {integrity: sha512-RHiac9mvaRw0x3AYRgDC1CxAP7HTcNrrECeA8YYJeWnpo+2Q5CegtZjaotWTWxDG3UeGA1coE05iH1mPjT/2mg==}
     engines: {node: '>=16 || 14 >=14.17'}
@@ -2893,6 +2919,10 @@ packages:
     resolution: {integrity: sha512-C+r0eKJUIfiDIfwJhria30+TYWPtuHJXHtI7J0YlOmKAo7ogxP20T0zxB7HZQIFhIyvoBPwWskjxrvAtfjyZfA==}
     engines: {node: '>=14.0.0'}
 
+  vscode-languageclient@9.0.1:
+    resolution: {integrity: sha512-JZiimVdvimEuHh5olxhxkht09m3JzUGwggb5eRUkzzJhZ2KjCN0nh55VfiED9oez9DyF8/fz1g1iBV3h+0Z2EA==}
+    engines: {vscode: ^1.82.0}
+
   vscode-languageserver-protocol@3.17.5:
     resolution: {integrity: sha512-mb1bvRJN8SVznADSGWM9u/b07H7Ecg0I3OgXDuLdn307rl/J3A9YD6/eYOssqhecL27hK1IPZAsaqh00i/Jljg==}
 
@@ -3487,6 +3517,8 @@ snapshots:
 
   '@types/tmp@0.2.6': {}
 
+  '@types/vscode@1.101.0': {}
+
   '@typescript-eslint/eslint-plugin@7.3.1(@typescript-eslint/parser@7.3.1(eslint@8.57.1)(typescript@5.7.3))(eslint@8.57.1)(typescript@5.7.3)':
     dependencies:
       '@eslint-community/regexpp': 4.12.1
@@ -4633,6 +4665,10 @@ snapshots:
     dependencies:
       brace-expansion: 1.1.11
 
+  minimatch@5.1.6:
+    dependencies:
+      brace-expansion: 2.0.1
+
   minimatch@9.0.3:
     dependencies:
       brace-expansion: 2.0.1
@@ -5522,6 +5558,12 @@ snapshots:
 
   vscode-jsonrpc@8.2.0: {}
 
+  vscode-languageclient@9.0.1:
+    dependencies:
+      minimatch: 5.1.6
+      semver: 7.6.3
+      vscode-languageserver-protocol: 3.17.5
+
   vscode-languageserver-protocol@3.17.5:
     dependencies:
       vscode-jsonrpc: 8.2.0
diff --git a/pnpm-workspace.yaml b/pnpm-workspace.yaml
index bf16bb42c..1afd55804 100644
--- a/pnpm-workspace.yaml
+++ b/pnpm-workspace.yaml
@@ -4,5 +4,6 @@ packages:
     - packages/runtime
     - packages/cli
     - packages/create-zenstack
+    - packages/ide/**
     - packages/testtools
     - samples/**