diff --git a/extensions/vscode-test-resolver/src/extension.ts b/extensions/vscode-test-resolver/src/extension.ts
index e137e7c9696..da2a277dcd4 100644
--- a/extensions/vscode-test-resolver/src/extension.ts
+++ b/extensions/vscode-test-resolver/src/extension.ts
@@ -65,7 +65,7 @@ export function activate(context: vscode.ExtensionContext) {
 				return;
 			}
 
-			const { updateUrl, commit, quality } = getProductConfiguration();
+			const { updateUrl, commit, quality, serverDataFolderName, dataFolderName } = getProductConfiguration();
 			if (!commit) { // dev mode
 				const vscodePath = path.resolve(path.join(context.extensionPath, '..', '..'));
 				const nodeExec = process.platform === 'win32' ? 'node.exe' : 'node';
@@ -86,7 +86,10 @@ export function activate(context: vscode.ExtensionContext) {
 				const env = getNewEnv();
 				extHostProcess = cp.spawn(nodePath, [path.join('out', 'remoteExtensionHostAgent'), '--port=0'], { cwd: vscodePath, env });
 			} else {
-				const serverBin = path.resolve(os.homedir(), '.vscode-remote', 'bin');
+				const remoteDataDir = process.env['TESTRESOLVER_DATA_FOLDER'] || path.join(os.homedir(), serverDataFolderName || `${dataFolderName}-testresolver`);
+				outputChannel.appendLine(`Using data folder at ${remoteDataDir}`);
+
+				const serverBin = path.join(remoteDataDir, 'bin');
 				progress.report({ message: 'Installing VSCode Server' });
 				const serverLocation = await downloadAndUnzipVSCodeServer(updateUrl, commit, quality, serverBin);
 				outputChannel.appendLine(`Using server build at ${serverLocation}`);
@@ -95,8 +98,10 @@ export function activate(context: vscode.ExtensionContext) {
 
 				const env = getNewEnv();
 				env['PATH'] = path.join(serverLocation, 'bin') + path.delimiter + env['PATH']; // code command for the terminal
+				env['VSCODE_AGENT_FOLDER'] = remoteDataDir;
 
-				extHostProcess = cp.spawn(path.join(serverLocation, 'server.sh'), commandArgs, { env, cwd: serverLocation });
+				const serverCommand = process.platform === 'win32' ? 'server.bat' : 'server.sh';
+				extHostProcess = cp.spawn(path.join(serverLocation, serverCommand), commandArgs, { env, cwd: serverLocation });
 			}
 			extHostProcess.stdout.on('data', (data: Buffer) => processOutput(data.toString()));
 			extHostProcess.stderr.on('data', (data: Buffer) => processOutput(data.toString()));
@@ -166,6 +171,8 @@ export interface IProductConfiguration {
 	updateUrl: string;
 	commit: string;
 	quality: string;
+	dataFolderName: string;
+	serverDataFolderName?: string;
 }
 
 function getProductConfiguration(): IProductConfiguration {
diff --git a/test/smoke/src/application.ts b/test/smoke/src/application.ts
index 58e5b301a2c..62cae10a137 100644
--- a/test/smoke/src/application.ts
+++ b/test/smoke/src/application.ts
@@ -47,6 +47,10 @@ export class Application {
 		return this.options.logger;
 	}
 
+	get remote(): boolean {
+		return !!this.options.remote;
+	}
+
 	private _workspacePathOrFolder: string;
 	get workspacePathOrFolder(): string {
 		return this._workspacePathOrFolder;
@@ -135,6 +139,10 @@ export class Application {
 		await this.code.waitForWindowIds(ids => ids.length > 0);
 		await this.code.waitForElement('.monaco-workbench');
 
+		if (this.remote) {
+			await this.code.waitForElement('.monaco-workbench .statusbar-item.statusbar-entry a[title="Editing on TestResolver"]');
+		}
+
 		// wait a bit, since focus might be stolen off widgets
 		// as soon as they open (eg quick open)
 		await new Promise(c => setTimeout(c, 1000));
diff --git a/test/smoke/src/areas/extensions/extensions.test.ts b/test/smoke/src/areas/extensions/extensions.test.ts
index 4215a7fe247..1ff6dce2df3 100644
--- a/test/smoke/src/areas/extensions/extensions.test.ts
+++ b/test/smoke/src/areas/extensions/extensions.test.ts
@@ -20,6 +20,10 @@ export function setup() {
 			await app.workbench.extensions.installExtension('michelkaporin.vscode-smoketest-check', 'vscode-smoketest-check');
 
 			await app.workbench.extensions.waitForExtensionsViewlet();
+
+			if (app.remote) {
+				await app.reload();
+			}
 			await app.workbench.quickopen.runCommand('Smoke Test Check');
 			await app.workbench.statusbar.waitForStatusbarText('smoke test', 'VS Code Smoke Test Check');
 		});
diff --git a/test/smoke/src/areas/multiroot/multiroot.test.ts b/test/smoke/src/areas/multiroot/multiroot.test.ts
index f3ca92b8868..2e0caea1123 100644
--- a/test/smoke/src/areas/multiroot/multiroot.test.ts
+++ b/test/smoke/src/areas/multiroot/multiroot.test.ts
@@ -47,7 +47,9 @@ export function setup() {
 			const app = this.app as Application;
 			await app.workbench.quickopen.openQuickOpen('*.*');
 
-			await app.workbench.quickopen.waitForQuickOpenElements(names => names.length === 6);
+			const numResultsExpected = this.app.remote ? 7 : 6;
+
+			await app.workbench.quickopen.waitForQuickOpenElements(names => names.length === numResultsExpected);
 			await app.workbench.quickopen.closeQuickOpen();
 		});
 
diff --git a/test/smoke/src/vscode/code.ts b/test/smoke/src/vscode/code.ts
index b50e1caa847..0b9c739cb69 100644
--- a/test/smoke/src/vscode/code.ts
+++ b/test/smoke/src/vscode/code.ts
@@ -7,6 +7,7 @@ import * as path from 'path';
 import * as cp from 'child_process';
 import * as os from 'os';
 import * as fs from 'fs';
+import * as mkdirp from 'mkdirp';
 import { tmpName } from 'tmp';
 import { IDriver, connect as connectDriver, IDisposable, IElement, Thenable } from './driver';
 import { Logger } from '../logger';
@@ -123,6 +124,8 @@ export async function spawn(options: SpawnOptions): Promise<Code> {
 		'--driver', handle
 	];
 
+	const env = process.env;
+
 	if (options.remote) {
 		// Replace workspace path with URI
 		args.shift();
@@ -139,6 +142,9 @@ export async function spawn(options: SpawnOptions): Promise<Code> {
 			}
 		}
 		args.push('--enable-proposed-api=vscode.vscode-test-resolver');
+		const remoteDataDir = `${options.userDataDir}-server`;
+		mkdirp.sync(remoteDataDir);
+		env['TESTRESOLVER_DATA_FOLDER'] = remoteDataDir;
 	}
 
 	if (!codePath) {
@@ -157,7 +163,7 @@ export async function spawn(options: SpawnOptions): Promise<Code> {
 		args.push(...options.extraArgs);
 	}
 
-	const spawnOptions: cp.SpawnOptions = {};
+	const spawnOptions: cp.SpawnOptions = { env };
 
 	const child = cp.spawn(electronPath, args, spawnOptions);