diff --git a/build/azure-pipelines/linux/snap-build-linux.yml b/build/azure-pipelines/linux/snap-build-linux.yml
index 12829334956..d1c24a33be3 100644
--- a/build/azure-pipelines/linux/snap-build-linux.yml
+++ b/build/azure-pipelines/linux/snap-build-linux.yml
@@ -45,7 +45,7 @@ steps:
         x64) SNAPCRAFT_TARGET_ARGS="" ;;
         *) SNAPCRAFT_TARGET_ARGS="--target-arch $(VSCODE_ARCH)" ;;
       esac
-      (cd $SNAP_ROOT/code-* && sudo --preserve-env snapcraft prime $SNAPCRAFT_TARGET_ARGS && snap pack prime --compression=lzo --filename="$SNAP_PATH")
+      (cd $SNAP_ROOT/code-* && sudo --preserve-env snapcraft snap $SNAPCRAFT_TARGET_ARGS --output "$SNAP_PATH")
 
       # Export SNAP_PATH
       echo "##vso[task.setvariable variable=SNAP_PATH]$SNAP_PATH"
diff --git a/build/azure-pipelines/product-build.yml b/build/azure-pipelines/product-build.yml
index 3c4611edab2..f5f207e5203 100644
--- a/build/azure-pipelines/product-build.yml
+++ b/build/azure-pipelines/product-build.yml
@@ -164,7 +164,8 @@ resources:
       endpoint: VSCodeHub
       options: --user 0:0 --cap-add SYS_ADMIN
     - container: snapcraft
-      image: snapcore/snapcraft:stable
+      image: vscodehub.azurecr.io/vscode-linux-build-agent:snapcraft-x64
+      endpoint: VSCodeHub
 
 stages:
   - stage: Compile
diff --git a/resources/linux/snap/electron-launch b/resources/linux/snap/electron-launch
index 87011928b49..e90e7a7f610 100755
--- a/resources/linux/snap/electron-launch
+++ b/resources/linux/snap/electron-launch
@@ -4,6 +4,64 @@
 # We need to handle that case and reset $SNAP
 SNAP=$(echo "$SNAP" | sed -e "s|/var/lib/snapd||g")
 
+#
+# Exports are based on https://github.com/snapcore/snapcraft/blob/master/extensions/desktop/common/desktop-exports
+#
+
+# ensure_dir_exists calls `mkdir -p` if the given path is not a directory.
+# This speeds up execution time by avoiding unnecessary calls to mkdir.
+#
+# Usage: ensure_dir_exists <path> [<mkdir-options>]...
+#
+function ensure_dir_exists() {
+  [ -d "$1" ] || mkdir -p "$@"
+}
+
+declare -A PIDS
+function async_exec() {
+  "$@" &
+  PIDS[$!]=$*
+}
+function wait_for_async_execs() {
+  for pid in "${!PIDS[@]}"
+  do
+    wait "$pid" && continue || echo "ERROR: ${PIDS[$pid]} exited abnormally with status $?"
+  done
+}
+
+function prepend_dir() {
+  local -n var="$1"
+  local dir="$2"
+  # We can't check if the dir exists when the dir contains variables
+  if [[ "$dir" == *"\$"*  || -d "$dir" ]]; then
+    export "${!var}=${dir}${var:+:$var}"
+  fi
+}
+
+function append_dir() {
+  local -n var="$1"
+  local dir="$2"
+  # We can't check if the dir exists when the dir contains variables
+  if [[ "$dir" == *"\$"*  || -d "$dir" ]]; then
+    export "${!var}=${var:+$var:}${dir}"
+  fi
+}
+
+# shellcheck source=/dev/null
+source "$SNAP_USER_DATA/.last_revision" 2>/dev/null || true
+if [ "$SNAP_DESKTOP_LAST_REVISION" = "$SNAP_VERSION" ]; then
+  needs_update=false
+else
+  needs_update=true
+fi
+
+# Set $REALHOME to the users real home directory
+REALHOME=$(getent passwd $UID | cut -d ':' -f 6)
+
+# Set config folder to local path
+ensure_dir_exists "$SNAP_USER_DATA/.config"
+chmod 700 "$SNAP_USER_DATA/.config"
+
 if [ "$SNAP_ARCH" == "amd64" ]; then
   ARCH="x86_64-linux-gnu"
 elif [ "$SNAP_ARCH" == "armhf" ]; then
@@ -14,21 +72,165 @@ else
   ARCH="$SNAP_ARCH-linux-gnu"
 fi
 
-GDK_CACHE_DIR="$SNAP_USER_COMMON/.cache"
-if [[ -d "$SNAP_USER_DATA/.cache" && ! -e "$GDK_CACHE_DIR" ]]; then
+export SNAP_LAUNCHER_ARCH_TRIPLET="$ARCH"
+
+function is_subpath() {
+  dir="$(realpath "$1")"
+  parent="$(realpath "$2")"
+  [ "${dir##"${parent}"/}" != "${dir}" ] && return 0 || return 1
+}
+
+function can_open_file() {
+  [ -f "$1" ] && [ -r "$1" ]
+}
+
+# XDG Config
+prepend_dir XDG_CONFIG_DIRS "$SNAP/etc/xdg"
+
+# Define snaps' own data dir
+prepend_dir XDG_DATA_DIRS "$SNAP/usr/share"
+prepend_dir XDG_DATA_DIRS "$SNAP/share"
+prepend_dir XDG_DATA_DIRS "$SNAP/data-dir"
+prepend_dir XDG_DATA_DIRS "$SNAP_USER_DATA"
+
+# Set XDG_DATA_HOME to local path
+ensure_dir_exists "$SNAP_USER_DATA/.local/share"
+
+# Workaround for GLib < 2.53.2 not searching for schemas in $XDG_DATA_HOME:
+#   https://bugzilla.gnome.org/show_bug.cgi?id=741335
+prepend_dir XDG_DATA_DIRS "$SNAP_USER_DATA/.local/share"
+
+# Set cache folder to local path
+if [[ -d "$SNAP_USER_DATA/.cache" && ! -e "$SNAP_USER_COMMON/.cache" ]]; then
   # the .cache directory used to be stored under $SNAP_USER_DATA, migrate it
   mv "$SNAP_USER_DATA/.cache" "$SNAP_USER_COMMON/"
 fi
-[ ! -d "$GDK_CACHE_DIR" ] && mkdir -p "$GDK_CACHE_DIR"
+ensure_dir_exists "$SNAP_USER_COMMON/.cache"
 
-# Gdk-pixbuf loaders
-export GDK_PIXBUF_MODULE_FILE="$GDK_CACHE_DIR/gdk-pixbuf-loaders.cache"
-export GDK_PIXBUF_MODULEDIR="$SNAP/usr/lib/$ARCH/gdk-pixbuf-2.0/2.10.0/loaders"
-if [ -f "$SNAP/usr/lib/$ARCH/gdk-pixbuf-2.0/gdk-pixbuf-query-loaders" ]; then
-  "$SNAP/usr/lib/$ARCH/gdk-pixbuf-2.0/gdk-pixbuf-query-loaders" > "$GDK_PIXBUF_MODULE_FILE"
+# Create $XDG_RUNTIME_DIR if not exists (to be removed when LP: #1656340 is fixed)
+# shellcheck disable=SC2174
+ensure_dir_exists "$XDG_RUNTIME_DIR" -m 700
+
+# Ensure the app finds locale definitions (requires locales-all to be installed)
+append_dir LOCPATH "$SNAP/usr/lib/locale"
+
+# If detect wayland server socket, then set environment so applications prefer
+# wayland, and setup compat symlink (until we use user mounts. Remember,
+# XDG_RUNTIME_DIR is /run/user/<uid>/snap.$SNAP so look in the parent directory
+# for the socket. For details:
+# https://forum.snapcraft.io/t/wayland-dconf-and-xdg-runtime-dir/186/10
+# Applications that don't support wayland natively may define DISABLE_WAYLAND
+# (to any non-empty value) to skip that logic entirely.
+wayland_available=false
+if [[ -n "$XDG_RUNTIME_DIR" && -z "$DISABLE_WAYLAND" ]]; then
+    wdisplay="wayland-0"
+    if [ -n "$WAYLAND_DISPLAY" ]; then
+        wdisplay="$WAYLAND_DISPLAY"
+    fi
+    wayland_sockpath="$XDG_RUNTIME_DIR/../$wdisplay"
+    wayland_snappath="$XDG_RUNTIME_DIR/$wdisplay"
+    if [ -S "$wayland_sockpath" ]; then
+        # if running under wayland, use it
+        #export WAYLAND_DEBUG=1
+        # shellcheck disable=SC2034
+        wayland_available=true
+        # create the compat symlink for now
+        if [ ! -e "$wayland_snappath" ]; then
+            ln -s "$wayland_sockpath" "$wayland_snappath"
+        fi
+    fi
 fi
 
-# Create $XDG_RUNTIME_DIR if not exists (to be removed when https://pad.lv/1656340 is fixed)
-[ -n "$XDG_RUNTIME_DIR" ] && mkdir -p -m 700 "$XDG_RUNTIME_DIR"
+# Keep an array of data dirs, for looping through them
+IFS=':' read -r -a data_dirs_array <<< "$XDG_DATA_DIRS"
+
+# Build mime.cache
+# needed for gtk and qt icon
+if [ "$needs_update" = true ]; then
+  rm -rf "$SNAP_USER_DATA/.local/share/mime"
+  if [ ! -f "$SNAP/usr/share/mime/mime.cache" ]; then
+    if command -v update-mime-database >/dev/null; then
+      cp --preserve=timestamps -dR "$SNAP/usr/share/mime" "$SNAP_USER_DATA/.local/share"
+      async_exec update-mime-database "$SNAP_USER_DATA/.local/share/mime"
+    fi
+  fi
+fi
+
+# Gio modules and cache (including gsettings module)
+export GIO_MODULE_DIR="$SNAP_USER_COMMON/.cache/gio-modules"
+function compile_giomodules {
+  if [ -f "$1/glib-2.0/gio-querymodules" ]; then
+    rm -rf "$GIO_MODULE_DIR"
+    ensure_dir_exists "$GIO_MODULE_DIR"
+    ln -s "$1"/gio/modules/*.so "$GIO_MODULE_DIR"
+    "$1/glib-2.0/gio-querymodules" "$GIO_MODULE_DIR"
+  fi
+}
+if [ "$needs_update" = true ]; then
+  async_exec compile_giomodules "$SNAP/usr/lib/$ARCH"
+fi
+
+# Setup compiled gsettings schema
+GS_SCHEMA_DIR="$SNAP_USER_DATA/.local/share/glib-2.0/schemas"
+function compile_schemas {
+  if [ -f "$1" ]; then
+    rm -rf "$GS_SCHEMA_DIR"
+    ensure_dir_exists "$GS_SCHEMA_DIR"
+    for ((i = 0; i < ${#data_dirs_array[@]}; i++)); do
+      schema_dir="${data_dirs_array[$i]}/glib-2.0/schemas"
+      if [ -f "$schema_dir/gschemas.compiled" ]; then
+        # This directory already has compiled schemas
+        continue
+      fi
+      if [ -n "$(ls -A "$schema_dir"/*.xml 2>/dev/null)" ]; then
+        ln -s "$schema_dir"/*.xml "$GS_SCHEMA_DIR"
+      fi
+      if [ -n "$(ls -A "$schema_dir"/*.override 2>/dev/null)" ]; then
+        ln -s "$schema_dir"/*.override "$GS_SCHEMA_DIR"
+      fi
+    done
+    # Only compile schemas if we copied anything
+    if [ -n "$(ls -A "$GS_SCHEMA_DIR"/*.xml "$GS_SCHEMA_DIR"/*.override 2>/dev/null)" ]; then
+      "$1" "$GS_SCHEMA_DIR"
+    fi
+  fi
+}
+if [ "$needs_update" = true ]; then
+  async_exec compile_schemas "$SNAP/usr/lib/$ARCH/glib-2.0/glib-compile-schemas"
+fi
+
+# Gdk-pixbuf loaders
+export GDK_PIXBUF_MODULE_FILE="$SNAP_USER_COMMON/.cache/gdk-pixbuf-loaders.cache"
+export GDK_PIXBUF_MODULEDIR="$SNAP/usr/lib/$ARCH/gdk-pixbuf-2.0/2.10.0/loaders"
+if [ "$needs_update" = true ] || [ ! -f "$GDK_PIXBUF_MODULE_FILE" ]; then
+  rm -f "$GDK_PIXBUF_MODULE_FILE"
+  if [ -f "$SNAP/usr/lib/$ARCH/gdk-pixbuf-2.0/gdk-pixbuf-query-loaders" ]; then
+    async_exec "$SNAP/usr/lib/$ARCH/gdk-pixbuf-2.0/gdk-pixbuf-query-loaders" > "$GDK_PIXBUF_MODULE_FILE"
+  fi
+fi
+
+# shellcheck disable=SC2154
+if [ "$wayland_available" = true ]; then
+  export GDK_BACKEND="wayland"
+fi
+
+append_dir GTK_PATH "$SNAP/usr/lib/$ARCH/gtk-3.0"
+append_dir GTK_PATH "$SNAP/usr/lib/gtk-3.0"
+
+# ibus and fcitx integration
+GTK_IM_MODULE_DIR="$SNAP_USER_COMMON/.cache/immodules"
+export GTK_IM_MODULE_FILE="$GTK_IM_MODULE_DIR/immodules.cache"
+# shellcheck disable=SC2154
+if [ "$needs_update" = true ]; then
+  rm -rf "$GTK_IM_MODULE_DIR"
+  ensure_dir_exists "$GTK_IM_MODULE_DIR"
+  ln -s "$SNAP"/usr/lib/"$ARCH"/gtk-3.0/3.0.0/immodules/*.so "$GTK_IM_MODULE_DIR"
+  async_exec "$SNAP/usr/lib/$ARCH/libgtk-3-0/gtk-query-immodules-3.0" > "$GTK_IM_MODULE_FILE"
+fi
+
+# shellcheck disable=SC2154
+[ "$needs_update" = true ] && echo "SNAP_DESKTOP_LAST_REVISION=$SNAP_VERSION" > "$SNAP_USER_DATA/.last_revision"
+
+wait_for_async_execs
 
 exec "$@"
diff --git a/resources/linux/snap/snapcraft.yaml b/resources/linux/snap/snapcraft.yaml
index fc775b6554f..1a2e52c5f25 100644
--- a/resources/linux/snap/snapcraft.yaml
+++ b/resources/linux/snap/snapcraft.yaml
@@ -12,55 +12,73 @@ architectures:
 
 grade: stable
 confinement: classic
+base: core20
+compression: lzo
 
 parts:
-  gnome:
-    plugin: nil
-    build-packages:
-      - software-properties-common
-    override-pull: |
-      add-apt-repository -y ppa:ubuntu-desktop/gnome-3-26
-      apt -y update
-
   code:
-    after:
-      - gnome
     plugin: dump
     source: .
     stage-packages:
-      - ibus-gtk3
-      - fcitx-frontend-gtk3
-      - gvfs-libs
+      - ca-certificates
       - libasound2
-      - libgconf-2-4
-      - libglib2.0-bin
-      - libgnome-keyring0
+      - libatk-bridge2.0-0
+      - libatk1.0-0
+      - libatspi2.0-0
+      - libcairo2
+      - libcanberra-gtk3-module
+      - libcurl3-gnutls
+      - libcurl3-nss
+      - libcurl4
+      - libdrm2
       - libgbm1
+      - libgl1
+      - libglib2.0-0
       - libgtk-3-0
-      - libnotify4
-      - libnspr4
       - libnss3
-      - libpcre3
-      - libpulse0
+      - libpango-1.0-0
       - libsecret-1-0
+      - libxcomposite1
+      - libxdamage1
+      - libxfixes3
+      - libxkbcommon0
+      - libxkbfile1
+      - libxrandr2
       - libxss1
-      - libxtst6
-      - zlib1g
+      - locales-all
+      - packagekit-gtk3-module
+      - xdg-utils
     prime:
       - -usr/share/doc
       - -usr/share/fonts
       - -usr/share/icons
       - -usr/share/lintian
       - -usr/share/man
+    override-build: |
+      snapcraftctl build
+      patchelf --force-rpath --set-rpath '$ORIGIN/../../lib/x86_64-linux-gnu:$ORIGIN:/snap/core20/current/lib/x86_64-linux-gnu' $SNAPCRAFT_PART_INSTALL/usr/share/@@NAME@@/chrome_crashpad_handler
+  cleanup:
+    after:
+      - code
+    plugin: nil
+    build-snaps:
+      - core20
+    override-prime: |
+      set -eux
+      for snap in "core20"; do
+        cd "/snap/$snap/current" && find . -type f,l -exec rm -f "$SNAPCRAFT_PRIME/{}" \;
+      done
+      patchelf --print-rpath $SNAPCRAFT_PRIME/usr/share/@@NAME@@/chrome_crashpad_handler
+
 
 apps:
   @@NAME@@:
     command: electron-launch $SNAP/usr/share/@@NAME@@/bin/@@NAME@@ --no-sandbox
     common-id: @@NAME@@.desktop
     environment:
-      GSETTINGS_SCHEMA_DIR: $SNAP/usr/share/glib-2.0/schemas
+      GTK_USE_PORTAL: 1
 
   url-handler:
     command: electron-launch $SNAP/usr/share/@@NAME@@/bin/@@NAME@@ --open-url --no-sandbox
     environment:
-      GSETTINGS_SCHEMA_DIR: $SNAP/usr/share/glib-2.0/schemas
+      GTK_USE_PORTAL: 1
diff --git a/src/vs/platform/native/electron-main/nativeHostMainService.ts b/src/vs/platform/native/electron-main/nativeHostMainService.ts
index 70781f7fa86..e55d3df16a5 100644
--- a/src/vs/platform/native/electron-main/nativeHostMainService.ts
+++ b/src/vs/platform/native/electron-main/nativeHostMainService.ts
@@ -451,14 +451,23 @@ export class NativeHostMainService extends Disposable implements INativeHostMain
 		// Remove some environment variables before opening to avoid issues...
 		const gdkPixbufModuleFile = process.env['GDK_PIXBUF_MODULE_FILE'];
 		const gdkPixbufModuleDir = process.env['GDK_PIXBUF_MODULEDIR'];
+		const gtkIMModuleFile = process.env['GTK_IM_MODULE_FILE'];
+		const gdkBackend = process.env['GDK_BACKEND'];
+		const gioModuleDir = process.env['GIO_MODULE_DIR'];
 		delete process.env['GDK_PIXBUF_MODULE_FILE'];
 		delete process.env['GDK_PIXBUF_MODULEDIR'];
+		delete process.env['GTK_IM_MODULE_FILE'];
+		delete process.env['GDK_BACKEND'];
+		delete process.env['GIO_MODULE_DIR'];
 
 		shell.openExternal(url);
 
 		// ...but restore them after
 		process.env['GDK_PIXBUF_MODULE_FILE'] = gdkPixbufModuleFile;
 		process.env['GDK_PIXBUF_MODULEDIR'] = gdkPixbufModuleDir;
+		process.env['GTK_IM_MODULE_FILE'] = gtkIMModuleFile;
+		process.env['GDK_BACKEND'] = gdkBackend;
+		process.env['GIO_MODULE_DIR'] = gioModuleDir;
 	}
 
 	moveItemToTrash(windowId: number | undefined, fullPath: string): Promise<void> {