diff --git a/.changeset/fifty-tigers-hope.md b/.changeset/fifty-tigers-hope.md
new file mode 100644
index 0000000..415e158
--- /dev/null
+++ b/.changeset/fifty-tigers-hope.md
@@ -0,0 +1,5 @@
+---
+"sqlanydb-tools-vscode": patch
+---
+
+Fixed Webpack configuration to bundle internal dependencies with the .VSIX package
diff --git a/README.md b/README.md
index c809e3a..929dbcf 100644
--- a/README.md
+++ b/README.md
@@ -46,6 +46,10 @@ By bundling both command-line utilities and an integrated VSCode experience in a
 
 ## VSCode extension
 
+There are 2 ways to install the VSCode extension:
+1. Navigate to the `Extensions` tab in VSCode and search for `sqlanydb-tools-vscode`
+2. Download the VSIX file from the [Visual Studio Marketplace](https://marketplace.visualstudio.com/items?itemName=dwarf1er.sqlanydb-tools-vscode)
+
 ## sqlanydb-manager CLI
 
 [(Back to top)](#table-of-contents)
diff --git a/apps/sqlanydb-tools-vscode/tsconfig.json b/apps/sqlanydb-tools-vscode/tsconfig.json
index ba89632..544d46c 100644
--- a/apps/sqlanydb-tools-vscode/tsconfig.json
+++ b/apps/sqlanydb-tools-vscode/tsconfig.json
@@ -4,13 +4,16 @@
 		"target": "ES2022",
 		"lib": ["ES2022"],
 		"sourceMap": true,
-		"rootDir": "src",
+		"rootDir": "../../",
 		"outDir": "dist",
 		"strict": true,
 		"noImplicitReturns": true,
 		"noFallthroughCasesInSwitch": true,
 		"noUnusedParameters": true
 	},
-	"include": ["src/**/*"],
+	"include": [
+		"../../apps/**/*",
+		"../../packages/**/*"
+	],
 	"exclude": ["node_modules", "dist"]
 }
diff --git a/apps/sqlanydb-tools-vscode/webpack.config.js b/apps/sqlanydb-tools-vscode/webpack.config.js
index a562341..7792d14 100644
--- a/apps/sqlanydb-tools-vscode/webpack.config.js
+++ b/apps/sqlanydb-tools-vscode/webpack.config.js
@@ -3,20 +3,45 @@
 "use strict";
 
 const path = require("path");
+const fs = require("fs");
+
+const getInternalPackages = (dir) => {
+	return fs.readdirSync(dir)
+		.filter((item) => {
+			const itemPath = path.join(dir, item);
+			return fs.statSync(itemPath).isDirectory() && item !== 'sqlanydb-tools-vscode';
+		})
+		.map((item) => path.join(dir, item, 'src', 'index.ts'));
+};
+  
+  const packagesDir = path.resolve(__dirname, '../../packages');
+  const appsDir = path.resolve(__dirname, '../../apps');
 
 //@ts-check
 /** @typedef {import('webpack').Configuration} WebpackConfig **/
 
 /** @type WebpackConfig */
 const extensionConfig = {
-	target: "node", // VS Code extensions run in a Node.js-context 📖 -> https://webpack.js.org/configuration/node/
-	mode: "none", // this leaves the source code as close as possible to the original (when packaging we set this to 'production')
+	target: "node",
+	mode: "none",
 
-	entry: "./src/extension.ts", // the entry point of this extension, 📖 -> https://webpack.js.org/configuration/entry-context/
+	entry: {
+		extension: "./src/extension.ts",
+		...getInternalPackages(packagesDir).reduce((acc, packageEntry) => {
+		  const packageName = path.basename(path.dirname(packageEntry));
+		  acc[packageName] = packageEntry;
+		  return acc;
+		}, {}),
+		...getInternalPackages(appsDir).reduce((acc, appEntry) => {
+		  const appName = path.basename(path.dirname(appEntry));
+		  acc[appName] = appEntry;
+		  return acc;
+		}, {}),
+	},
 	output: {
 		// the bundle is stored in the 'dist' folder (check package.json), 📖 -> https://webpack.js.org/configuration/output/
 		path: path.resolve(__dirname, "dist"),
-		filename: "extension.js",
+		filename: "[name].js",
 		libraryTarget: "commonjs2",
 	},
 	externals: {
diff --git a/package-lock.json b/package-lock.json
index 70fdb02..9349b6e 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -41,7 +41,7 @@
 		},
 		"apps/sqlanydb-manager": {
 			"name": "@sqlanydb-tools/sqlanydb-manager",
-			"version": "1.2.1",
+			"version": "1.0.0",
 			"license": "ISC",
 			"dependencies": {
 				"@sqlanydb-tools/sqlanydb-config": "*",
@@ -62,7 +62,7 @@
 			}
 		},
 		"apps/sqlanydb-tools-vscode": {
-			"version": "1.0.1",
+			"version": "1.0.0",
 			"license": "MIT",
 			"dependencies": {
 				"@aws-sdk/client-s3": "^3.665.0",
@@ -9896,7 +9896,7 @@
 		},
 		"packages/sqlanydb-config": {
 			"name": "@sqlanydb-tools/sqlanydb-config",
-			"version": "1.2.1",
+			"version": "1.0.0",
 			"license": "ISC"
 		},
 		"packages/sqlanydb-database-config": {