diff --git a/docs/dev-manual.md b/docs/dev-manual.md
index dba45558..1269bcab 100644
--- a/docs/dev-manual.md
+++ b/docs/dev-manual.md
@@ -30,7 +30,8 @@ Currently available xtask commands:
 - `package` - build and package VSCode extension into a .vsix file
     - `--out` - output path for the .vsix file; default is "./witcherscript-ide.vsix"
     - `--target` - VSCode extension target, e.g. win32-x64
-- `install` - build, package and install the VSCode extension
+    - `--pre-release` - mark the package as pre-release
+- `install` - build, package and install the VSCode extension locally
 
 
 ## Debugging
diff --git a/xtask/src/cli.rs b/xtask/src/cli.rs
index 1dc4988d..f929fc85 100644
--- a/xtask/src/cli.rs
+++ b/xtask/src/cli.rs
@@ -38,7 +38,10 @@ pub enum Commands {
         /// 
         /// https://code.visualstudio.com/api/working-with-extensions/publishing-extension#platformspecific-extensions
         #[arg(long)]
-        target: Option<String>
+        target: Option<String>,
+        /// Mark the packed extension as pre-release
+        #[arg(long)]
+        pre_release: bool
     },
     /// Build, package and install the VSCode extension
     Install
diff --git a/xtask/src/commands/package.rs b/xtask/src/commands/package.rs
index 96be216b..bd47bf3e 100644
--- a/xtask/src/commands/package.rs
+++ b/xtask/src/commands/package.rs
@@ -8,7 +8,7 @@ const VSIX_NAME: &'static str = "witcherscript-ide.vsix";
 const NPM: &'static str = if cfg!(windows) { "npm.cmd" } else { "npm" };
 const NPX: &'static str = if cfg!(windows) { "npx.cmd" } else { "npx" };
 
-pub fn package(output: Option<String>, code_target: Option<String>) -> anyhow::Result<()> {
+pub fn package(output: Option<String>, code_target: Option<String>, pre_release: bool) -> anyhow::Result<()> {
     let sh = Shell::new()?;
     let root = project_root::get_project_root()?;
     let cwd = std::env::current_dir()?;
@@ -26,6 +26,9 @@ pub fn package(output: Option<String>, code_target: Option<String>) -> anyhow::R
     if let Some(code_target) = &code_target {
         package_opt_args.extend(["--target", code_target])
     }
+    if pre_release {
+        package_opt_args.extend(["--pre-release"]);
+    }
 
     cmd!(sh, "{NPM} --version").run().with_context(|| "npm is required")?;
     cmd!(sh, "{NPM} ci").run()?;
diff --git a/xtask/src/main.rs b/xtask/src/main.rs
index 034474e1..a373e03a 100644
--- a/xtask/src/main.rs
+++ b/xtask/src/main.rs
@@ -11,7 +11,7 @@ fn main() -> anyhow::Result<()> {
     match cli.command {
         cli::Commands::PrepServer { release, target } => commands::prep_server(release, target),
         cli::Commands::PrepClient { watch, fast } => commands::prep_client(watch, fast),
-        cli::Commands::Package { out, target } => commands::package(out, target),
+        cli::Commands::Package { out, target, pre_release } => commands::package(out, target, pre_release),
         cli::Commands::Install => commands::install()
     }
 }
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