diff --git a/src/vs/workbench/services/extensionManagement/electron-sandbox/remoteExtensionManagementService.ts b/src/vs/workbench/services/extensionManagement/electron-sandbox/remoteExtensionManagementService.ts
index d177c9c3e22..00224d8bba7 100644
--- a/src/vs/workbench/services/extensionManagement/electron-sandbox/remoteExtensionManagementService.ts
+++ b/src/vs/workbench/services/extensionManagement/electron-sandbox/remoteExtensionManagementService.ts
@@ -10,7 +10,7 @@ import { ExtensionType, IExtensionManifest } from 'vs/platform/extensions/common
 import { areSameExtensions } from 'vs/platform/extensionManagement/common/extensionManagementUtil';
 import { ILogService } from 'vs/platform/log/common/log';
 import { toErrorMessage } from 'vs/base/common/errorMessage';
-import { coalesce, isNonEmptyArray } from 'vs/base/common/arrays';
+import { isNonEmptyArray } from 'vs/base/common/arrays';
 import { CancellationToken } from 'vs/base/common/cancellation';
 import { localize } from 'vs/nls';
 import { IProductService } from 'vs/platform/product/common/productService';
@@ -55,19 +55,14 @@ export class NativeRemoteExtensionManagementService extends WebRemoteExtensionMa
 
 	private async doInstallFromGallery(extension: IGalleryExtension, installOptions?: InstallOptions): Promise<ILocalExtension> {
 		if (this.configurationService.getValue('remote.downloadExtensionsLocally')) {
-			this.logService.trace(`Download '${extension.identifier.id}' extension locally and install`);
-			return this.downloadCompatibleAndInstall(extension);
+			return this.downloadAndInstall(extension, installOptions || {});
 		}
 		try {
-			const local = await super.installFromGallery(extension, installOptions);
-			return local;
+			return await super.installFromGallery(extension, installOptions);
 		} catch (error) {
 			try {
 				this.logService.error(`Error while installing '${extension.identifier.id}' extension in the remote server.`, toErrorMessage(error));
-				this.logService.info(`Trying to download '${extension.identifier.id}' extension locally and install`);
-				const local = await this.downloadCompatibleAndInstall(extension);
-				this.logService.info(`Successfully installed '${extension.identifier.id}' extension`);
-				return local;
+				return await this.downloadAndInstall(extension, installOptions || {});
 			} catch (e) {
 				this.logService.error(e);
 				throw error;
@@ -75,31 +70,41 @@ export class NativeRemoteExtensionManagementService extends WebRemoteExtensionMa
 		}
 	}
 
-	private async downloadCompatibleAndInstall(extension: IGalleryExtension): Promise<ILocalExtension> {
+	private async downloadAndInstall(extension: IGalleryExtension, installOptions: InstallOptions): Promise<ILocalExtension> {
+		this.logService.info(`Downloading the '${extension.identifier.id}' extension locally and install`);
+		installOptions = { ...installOptions, donotIncludePackAndDependencies: true };
 		const installed = await this.getInstalled(ExtensionType.User);
+		const workspaceExtensions = await this.getAllWorkspaceDependenciesAndPackedExtensions(extension, CancellationToken.None);
+		if (workspaceExtensions.length) {
+			this.logService.info(`Downloading the workspace dependencies and packed extensions of '${extension.identifier.id}' locally and install`);
+			for (const workspaceExtension of workspaceExtensions) {
+				await this.downloadCompatibleAndInstall(workspaceExtension, installed, installOptions);
+			}
+		}
+		return await this.downloadCompatibleAndInstall(extension, installed, installOptions);
+	}
+
+	private async downloadCompatibleAndInstall(extension: IGalleryExtension, installed: ILocalExtension[], installOptions: InstallOptions): Promise<ILocalExtension> {
 		const compatible = await this.galleryService.getCompatibleExtension(extension);
 		if (!compatible) {
 			return Promise.reject(new Error(localize('incompatible', "Unable to install extension '{0}' as it is not compatible with VS Code '{1}'.", extension.identifier.id, this.productService.version)));
 		}
-		const manifest = await this.galleryService.getManifest(compatible, CancellationToken.None);
-		if (manifest) {
-			const workspaceExtensions = await this.getAllWorkspaceDependenciesAndPackedExtensions(manifest, CancellationToken.None);
-			await Promises.settled(workspaceExtensions.map(e => this.downloadAndInstall(e, installed)));
-		}
-		return this.downloadAndInstall(extension, installed);
-	}
-
-	private async downloadAndInstall(extension: IGalleryExtension, installed: ILocalExtension[]): Promise<ILocalExtension> {
 		const location = joinPath(this.environmentService.tmpDir, generateUuid());
-		await this.galleryService.download(extension, location, installed.filter(i => areSameExtensions(i.identifier, extension.identifier))[0] ? InstallOperation.Update : InstallOperation.Install);
-		return super.install(location);
+		this.logService.info('Downloaded extension:', compatible.identifier.id, location.path);
+		await this.galleryService.download(compatible, location, installed.filter(i => areSameExtensions(i.identifier, compatible.identifier))[0] ? InstallOperation.Update : InstallOperation.Install);
+		const local = await super.install(location, installOptions);
+		this.logService.info(`Successfully installed '${compatible.identifier.id}' extension`);
+		return local;
 	}
 
 	private async installUIDependenciesAndPackedExtensions(local: ILocalExtension): Promise<void> {
 		const uiExtensions = await this.getAllUIDependenciesAndPackedExtensions(local.manifest, CancellationToken.None);
 		const installed = await this.localExtensionManagementService.getInstalled();
 		const toInstall = uiExtensions.filter(e => installed.every(i => !areSameExtensions(i.identifier, e.identifier)));
-		await Promises.settled(toInstall.map(d => this.localExtensionManagementService.installFromGallery(d)));
+		if (toInstall.length) {
+			this.logService.info(`Installing UI dependencies and packed extensions of '${local.identifier.id}' locally`);
+			await Promises.settled(toInstall.map(d => this.localExtensionManagementService.installFromGallery(d)));
+		}
 	}
 
 	private async getAllUIDependenciesAndPackedExtensions(manifest: IExtensionManifest, token: CancellationToken): Promise<IGalleryExtension[]> {
@@ -109,10 +114,15 @@ export class NativeRemoteExtensionManagementService extends WebRemoteExtensionMa
 		return [...result.values()];
 	}
 
-	private async getAllWorkspaceDependenciesAndPackedExtensions(manifest: IExtensionManifest, token: CancellationToken): Promise<IGalleryExtension[]> {
+	private async getAllWorkspaceDependenciesAndPackedExtensions(extension: IGalleryExtension, token: CancellationToken): Promise<IGalleryExtension[]> {
 		const result = new Map<string, IGalleryExtension>();
-		const extensions = [...(manifest.extensionPack || []), ...(manifest.extensionDependencies || [])];
-		await this.getDependenciesAndPackedExtensionsRecursively(extensions, result, false, token);
+		result.set(extension.identifier.id.toLowerCase(), extension);
+		const manifest = await this.galleryService.getManifest(extension, token);
+		if (manifest) {
+			const extensions = [...(manifest.extensionPack || []), ...(manifest.extensionDependencies || [])];
+			await this.getDependenciesAndPackedExtensionsRecursively(extensions, result, false, token);
+		}
+		result.delete(extension.identifier.id);
 		return [...result.values()];
 	}
 
@@ -121,7 +131,7 @@ export class NativeRemoteExtensionManagementService extends WebRemoteExtensionMa
 			return Promise.resolve();
 		}
 
-		const extensions = coalesce(await Promises.settled(toGet.map(id => this.galleryService.getCompatibleExtension({ id }))));
+		const extensions = await this.galleryService.getExtensions(toGet, token);
 		const manifests = await Promise.all(extensions.map(e => this.galleryService.getManifest(e, token)));
 		const extensionsManifests: IExtensionManifest[] = [];
 		for (let idx = 0; idx < extensions.length; idx++) {