diff --git a/extensions/typescript-language-features/extension.webpack.config.js b/extensions/typescript-language-features/extension.webpack.config.js
index de88398eca0..b8f77666761 100644
--- a/extensions/typescript-language-features/extension.webpack.config.js
+++ b/extensions/typescript-language-features/extension.webpack.config.js
@@ -14,6 +14,9 @@ module.exports = withDefaults({
 	resolve: {
 		mainFields: ['module', 'main']
 	},
+	externals: {
+		'typescript-vscode-sh-plugin': 'commonjs vscode' // used by build/lib/extensions to know what node_modules to bundle
+	},
 	entry: {
 		extension: './src/extension.ts',
 	}