diff --git a/registry/coder/modules/code-server/README.md b/registry/coder/modules/code-server/README.md
index 0589ec3d4..07758fdc7 100644
--- a/registry/coder/modules/code-server/README.md
+++ b/registry/coder/modules/code-server/README.md
@@ -14,7 +14,7 @@ Automatically install [code-server](https://github.com/coder/code-server) in a w
 module "code-server" {
   count    = data.coder_workspace.me.start_count
   source   = "registry.coder.com/coder/code-server/coder"
-  version  = "1.4.4"
+  version  = "1.5.0"
   agent_id = coder_agent.example.id
 }
 ```
@@ -29,7 +29,7 @@ module "code-server" {
 module "code-server" {
   count           = data.coder_workspace.me.start_count
   source          = "registry.coder.com/coder/code-server/coder"
-  version         = "1.4.4"
+  version         = "1.5.0"
   agent_id        = coder_agent.example.id
   install_version = "4.106.3"
 }
@@ -43,7 +43,7 @@ Install the Dracula theme from [OpenVSX](https://open-vsx.org/):
 module "code-server" {
   count    = data.coder_workspace.me.start_count
   source   = "registry.coder.com/coder/code-server/coder"
-  version  = "1.4.4"
+  version  = "1.5.0"
   agent_id = coder_agent.example.id
   extensions = [
     "dracula-theme.theme-dracula"
@@ -61,7 +61,7 @@ Configure VS Code's [settings.json](https://code.visualstudio.com/docs/getstarte
 module "code-server" {
   count      = data.coder_workspace.me.start_count
   source     = "registry.coder.com/coder/code-server/coder"
-  version    = "1.4.4"
+  version    = "1.5.0"
   agent_id   = coder_agent.example.id
   extensions = ["dracula-theme.theme-dracula"]
   settings = {
@@ -78,12 +78,26 @@ Install multiple extensions from [OpenVSX](https://open-vsx.org/) by adding them
 module "code-server" {
   count      = data.coder_workspace.me.start_count
   source     = "registry.coder.com/coder/code-server/coder"
-  version    = "1.4.4"
+  version    = "1.5.0"
   agent_id   = coder_agent.example.id
   extensions = ["dracula-theme.theme-dracula", "ms-azuretools.vscode-docker"]
 }
 ```
 
+### Open a Workspace File
+
+Open a [`.code-workspace`](https://coder.com/docs/code-server/FAQ#how-does-code-server-decide-what-workspace-or-folder-to-open) file instead of a folder. `folder` and `workspace` are mutually exclusive.
+
+```tf
+module "code-server" {
+  count     = data.coder_workspace.me.start_count
+  source    = "registry.coder.com/coder/code-server/coder"
+  version   = "1.5.0"
+  agent_id  = coder_agent.example.id
+  workspace = "/home/coder/project/my.code-workspace"
+}
+```
+
 ### Pass Additional Arguments
 
 You can pass additional command-line arguments to code-server using the `additional_args` variable. For example, to disable workspace trust:
@@ -92,7 +106,7 @@ You can pass additional command-line arguments to code-server using the `additio
 module "code-server" {
   count           = data.coder_workspace.me.start_count
   source          = "registry.coder.com/coder/code-server/coder"
-  version         = "1.4.4"
+  version         = "1.5.0"
   agent_id        = coder_agent.example.id
   additional_args = "--disable-workspace-trust"
 }
@@ -108,7 +122,7 @@ Run an existing copy of code-server if found, otherwise download from GitHub:
 module "code-server" {
   count      = data.coder_workspace.me.start_count
   source     = "registry.coder.com/coder/code-server/coder"
-  version    = "1.4.4"
+  version    = "1.5.0"
   agent_id   = coder_agent.example.id
   use_cached = true
   extensions = ["dracula-theme.theme-dracula", "ms-azuretools.vscode-docker"]
@@ -121,7 +135,7 @@ Just run code-server in the background, don't fetch it from GitHub:
 module "code-server" {
   count    = data.coder_workspace.me.start_count
   source   = "registry.coder.com/coder/code-server/coder"
-  version  = "1.4.4"
+  version  = "1.5.0"
   agent_id = coder_agent.example.id
   offline  = true
 }
diff --git a/registry/coder/modules/code-server/code-server.tftest.hcl b/registry/coder/modules/code-server/code-server.tftest.hcl
index ebbb71755..209a0f39d 100644
--- a/registry/coder/modules/code-server/code-server.tftest.hcl
+++ b/registry/coder/modules/code-server/code-server.tftest.hcl
@@ -48,3 +48,55 @@ run "url_with_folder_query" {
     error_message = "coder_app URL must include encoded folder query param"
   }
 }
+
+run "url_with_workspace_query" {
+  command = plan
+
+  variables {
+    agent_id  = "foo"
+    workspace = "/home/coder/project/my.code-workspace"
+    port      = 13337
+  }
+
+  assert {
+    condition     = resource.coder_app.code-server.url == "http://localhost:13337/?workspace=%2Fhome%2Fcoder%2Fproject%2Fmy.code-workspace"
+    error_message = "coder_app URL must include encoded workspace query param"
+  }
+}
+
+run "url_with_no_target" {
+  command = plan
+
+  variables {
+    agent_id = "foo"
+    port     = 13337
+  }
+
+  assert {
+    condition     = resource.coder_app.code-server.url == "http://localhost:13337/"
+    error_message = "coder_app URL must omit query string when neither folder nor workspace is set"
+  }
+}
+
+run "folder_and_workspace_conflict" {
+  command = plan
+
+  variables {
+    agent_id  = "foo"
+    folder    = "/home/coder/project"
+    workspace = "/home/coder/project/my.code-workspace"
+  }
+
+  expect_failures = [
+    var.workspace
+  ]
+}
+
+run "workspace_extension_rejected" {
+  command = plan
+  variables {
+    agent_id  = "foo"
+    workspace = "/home/coder/project/settings.json"
+  }
+  expect_failures = [var.workspace]
+}
diff --git a/registry/coder/modules/code-server/main.tf b/registry/coder/modules/code-server/main.tf
index 090b6a53a..a0cd9c0f3 100644
--- a/registry/coder/modules/code-server/main.tf
+++ b/registry/coder/modules/code-server/main.tf
@@ -1,5 +1,5 @@
 terraform {
-  required_version = ">= 1.0"
+  required_version = ">= 1.9"
 
   required_providers {
     coder = {
@@ -56,6 +56,19 @@ variable "folder" {
   default     = ""
 }
 
+variable "workspace" {
+  type        = string
+  description = "The path to a `.code-workspace` file to open in code-server. Mutually exclusive with `folder`."
+  default     = ""
+  validation {
+    condition     = var.workspace == "" || endswith(var.workspace, ".code-workspace")
+    error_message = "workspace must be a path to a .code-workspace file"
+  }
+  validation {
+    condition     = var.folder == "" || var.workspace == ""
+    error_message = "folder and workspace are mutually exclusive; set at most one"
+  }
+}
 variable "install_prefix" {
   type        = string
   description = "The prefix to install code-server to."
@@ -173,6 +186,7 @@ resource "coder_script" "code-server" {
     USE_CACHED_EXTENSIONS : var.use_cached_extensions,
     EXTENSIONS_DIR : var.extensions_dir,
     FOLDER : var.folder,
+    WORKSPACE : var.workspace,
     AUTO_INSTALL_EXTENSIONS : var.auto_install_extensions,
     ADDITIONAL_ARGS : var.additional_args,
   })
@@ -195,7 +209,7 @@ resource "coder_app" "code-server" {
   agent_id     = var.agent_id
   slug         = var.slug
   display_name = var.display_name
-  url          = "http://localhost:${var.port}/${var.folder != "" ? "?folder=${urlencode(var.folder)}" : ""}"
+  url          = "http://localhost:${var.port}/${var.folder != "" ? "?folder=${urlencode(var.folder)}" : var.workspace != "" ? "?workspace=${urlencode(var.workspace)}" : ""}"
   icon         = "/icon/code.svg"
   subdomain    = var.subdomain
   share        = var.share
diff --git a/registry/coder/modules/code-server/run.sh b/registry/coder/modules/code-server/run.sh
index 33a6972a6..5af5a0046 100644
--- a/registry/coder/modules/code-server/run.sh
+++ b/registry/coder/modules/code-server/run.sh
@@ -122,15 +122,29 @@ if [ "${AUTO_INSTALL_EXTENSIONS}" = true ]; then
     exit 0
   fi
 
-  WORKSPACE_DIR="$HOME"
-  if [ -n "${FOLDER}" ]; then
-    WORKSPACE_DIR="${FOLDER}"
+  RECOMMENDATIONS_FILE=""
+  RECOMMENDATIONS_QUERY=".recommendations[]"
+  if [ -n "${WORKSPACE}" ]; then
+    if [ -f "${WORKSPACE}" ]; then
+      RECOMMENDATIONS_FILE="${WORKSPACE}"
+      RECOMMENDATIONS_QUERY=".extensions.recommendations[]?"
+    else
+      echo "⚠️ Workspace file ${WORKSPACE} not found, skipping extension recommendations."
+    fi
+  else
+    WORKSPACE_DIR="$HOME"
+    if [ -n "${FOLDER}" ]; then
+      WORKSPACE_DIR="${FOLDER}"
+    fi
+    if [ -f "$WORKSPACE_DIR/.vscode/extensions.json" ]; then
+      RECOMMENDATIONS_FILE="$WORKSPACE_DIR/.vscode/extensions.json"
+    fi
   fi
 
-  if [ -f "$WORKSPACE_DIR/.vscode/extensions.json" ]; then
-    printf "🧩 Installing extensions from %s/.vscode/extensions.json...\n" "$WORKSPACE_DIR"
+  if [ -n "$RECOMMENDATIONS_FILE" ]; then
+    printf "🧩 Installing extensions from %s...\n" "$RECOMMENDATIONS_FILE"
     # Use sed to remove single-line comments before parsing with jq
-    extensions=$(sed 's|//.*||g' "$WORKSPACE_DIR"/.vscode/extensions.json | jq -r '.recommendations[]')
+    extensions=$(sed 's|//.*||g' "$RECOMMENDATIONS_FILE" | jq -r "$RECOMMENDATIONS_QUERY")
     for extension in $extensions; do
       if extension_installed "$extension"; then
         continue