diff --git a/extensions/npm/package.json b/extensions/npm/package.json
index 03a60de5622..be86fa4fcaa 100644
--- a/extensions/npm/package.json
+++ b/extensions/npm/package.json
@@ -46,7 +46,10 @@
     "onView:npm"
   ],
   "capabilities": {
-    "virtualWorkspaces": false,
+    "virtualWorkspaces": {
+      "supported": "limited",
+      "description": "%virtualWorkspaces%"
+    },
     "untrustedWorkspaces": {
       "supported": "limited",
       "description": "%workspaceTrust%"
diff --git a/extensions/npm/package.nls.json b/extensions/npm/package.nls.json
index d34249d2d2b..1b2e87874a3 100644
--- a/extensions/npm/package.nls.json
+++ b/extensions/npm/package.nls.json
@@ -2,6 +2,7 @@
 	"description": "Extension to add task support for npm scripts.",
 	"displayName": "NPM support for VS Code",
 	"workspaceTrust": "This extension executes tasks, which require trust to run.",
+	"virtualWorkspaces": "Functionality that requires running the 'npm' command is not available in virtual workspaces.",
 	"config.npm.autoDetect": "Controls whether npm scripts should be automatically detected.",
 	"config.npm.runSilent": "Run npm commands with the `--silent` option.",
 	"config.npm.packageManager": "The package manager used to run scripts.",