diff --git a/src/vs/platform/extensionManagement/common/extensionManagement.ts b/src/vs/platform/extensionManagement/common/extensionManagement.ts
index cf442e6c925..88e78ae2d55 100644
--- a/src/vs/platform/extensionManagement/common/extensionManagement.ts
+++ b/src/vs/platform/extensionManagement/common/extensionManagement.ts
@@ -223,7 +223,7 @@ export interface IExtensionManagementService {
 	onDidUninstallExtension: Event<string>;
 
 	install(zipPath: string): TPromise<void>;
-	installFromGallery(extension: IGalleryExtension): TPromise<void>;
+	installFromGallery(extension: IGalleryExtension, promptToInstallDependencies?: boolean): TPromise<void>;
 	uninstall(extension: ILocalExtension): TPromise<void>;
 	getInstalled(type?: LocalExtensionType): TPromise<ILocalExtension[]>;
 }
diff --git a/src/vs/platform/extensionManagement/common/extensionManagementIpc.ts b/src/vs/platform/extensionManagement/common/extensionManagementIpc.ts
index f0c69ff375c..967cf5d96d8 100644
--- a/src/vs/platform/extensionManagement/common/extensionManagementIpc.ts
+++ b/src/vs/platform/extensionManagement/common/extensionManagementIpc.ts
@@ -43,7 +43,7 @@ export class ExtensionManagementChannel implements IExtensionManagementChannel {
 			case 'event:onUninstallExtension': return eventToCall(this.onUninstallExtension);
 			case 'event:onDidUninstallExtension': return eventToCall(this.onDidUninstallExtension);
 			case 'install': return this.service.install(arg);
-			case 'installFromGallery': return this.service.installFromGallery(arg);
+			case 'installFromGallery': return this.service.installFromGallery(arg[0], arg[1]);
 			case 'uninstall': return this.service.uninstall(arg);
 			case 'getInstalled': return this.service.getInstalled(arg);
 		}
@@ -72,8 +72,8 @@ export class ExtensionManagementChannelClient implements IExtensionManagementSer
 		return this.channel.call('install', zipPath);
 	}
 
-	installFromGallery(extension: IGalleryExtension): TPromise<void> {
-		return this.channel.call('installFromGallery', extension);
+	installFromGallery(extension: IGalleryExtension, promptToInstallDependencies: boolean = true): TPromise<void> {
+		return this.channel.call('installFromGallery', [extension, promptToInstallDependencies]);
 	}
 
 	uninstall(extension: ILocalExtension): TPromise<void> {
diff --git a/src/vs/platform/extensionManagement/node/extensionManagementService.ts b/src/vs/platform/extensionManagement/node/extensionManagementService.ts
index 5f142c9d94a..daac9847e3b 100644
--- a/src/vs/platform/extensionManagement/node/extensionManagementService.ts
+++ b/src/vs/platform/extensionManagement/node/extensionManagementService.ts
@@ -138,7 +138,7 @@ export class ExtensionManagementService implements IExtensionManagementService {
 		});
 	}
 
-	installFromGallery(extension: IGalleryExtension): TPromise<void> {
+	installFromGallery(extension: IGalleryExtension, promptToInstallDependencies: boolean = true): TPromise<void> {
 		const id = getExtensionId(extension, extension.version);
 
 		return this.isObsolete(id).then(isObsolete => {
@@ -146,8 +146,7 @@ export class ExtensionManagementService implements IExtensionManagementService {
 				return TPromise.wrapError<void>(new Error(nls.localize('restartCode', "Please restart Code before reinstalling {0}.", extension.displayName || extension.name)));
 			}
 			this._onInstallExtension.fire({ id, gallery: extension });
-			return this.getLocalExtension(extension)
-				.then(local => this.installCompatibleVersion(extension, true, !local))
+			return this.installCompatibleVersion(extension, true, promptToInstallDependencies)
 				.then(
 					local => this._onDidInstallExtension.fire({ id, local, gallery: extension }),
 					error => {
@@ -185,12 +184,6 @@ export class ExtensionManagementService implements IExtensionManagementService {
 		);
 	}
 
-	private getLocalExtension(extension: IGalleryExtension): TPromise<ILocalExtension> {
-		const extensionName = `${extension.publisher}.${extension.name}`;
-		return this.getInstalled().then(installed => installed.filter(local => `${local.manifest.publisher}.${local.manifest.name}` === extensionName))
-			.then(local => local.length ? local[0] : null);
-	}
-
 	private getDependenciesToInstall(extension: IGalleryExtension, checkDependecies: boolean): TPromise<string[]> {
 		if (!checkDependecies) {
 			return TPromise.wrap([]);
diff --git a/src/vs/workbench/parts/extensions/electron-browser/extensions.ts b/src/vs/workbench/parts/extensions/electron-browser/extensions.ts
index 111a105a4c3..120018a0a94 100644
--- a/src/vs/workbench/parts/extensions/electron-browser/extensions.ts
+++ b/src/vs/workbench/parts/extensions/electron-browser/extensions.ts
@@ -59,7 +59,7 @@ export interface IExtensionsWorkbenchService {
 	queryGallery(options?: IQueryOptions): TPromise<IPager<IExtension>>;
 	canInstall(extension: IExtension): boolean;
 	install(vsix: string): TPromise<void>;
-	install(extension: IExtension): TPromise<void>;
+	install(extension: IExtension, promptToInstallDependencies?: boolean): TPromise<void>;
 	uninstall(extension: IExtension): TPromise<void>;
 }
 
diff --git a/src/vs/workbench/parts/extensions/electron-browser/extensionsActions.ts b/src/vs/workbench/parts/extensions/electron-browser/extensionsActions.ts
index 890e09a6f52..27f3384d4be 100644
--- a/src/vs/workbench/parts/extensions/electron-browser/extensionsActions.ts
+++ b/src/vs/workbench/parts/extensions/electron-browser/extensionsActions.ts
@@ -337,8 +337,8 @@ export class UpdateAllAction extends Action {
 		this.getOutdatedExtensions().done(outDated => this.enabled = outDated.length > 0);
 	}
 
-	run(): TPromise<any> {
-		return this.getOutdatedExtensions().then(outdated => TPromise.join(outdated.map(e => this.extensionsWorkbenchService.install(e))));
+	run(promptToInstallDependencies: boolean = true,): TPromise<any> {
+		return this.getOutdatedExtensions().then(outdated => TPromise.join(outdated.map(e => this.extensionsWorkbenchService.install(e, promptToInstallDependencies))));
 	}
 
 	dispose(): void {
diff --git a/src/vs/workbench/parts/extensions/electron-browser/extensionsWorkbenchService.ts b/src/vs/workbench/parts/extensions/electron-browser/extensionsWorkbenchService.ts
index c62205c7994..97feb656962 100644
--- a/src/vs/workbench/parts/extensions/electron-browser/extensionsWorkbenchService.ts
+++ b/src/vs/workbench/parts/extensions/electron-browser/extensionsWorkbenchService.ts
@@ -406,7 +406,7 @@ export class ExtensionsWorkbenchService implements IExtensionsWorkbenchService {
 			return TPromise.as(null);
 		}
 
-		return action.run();
+		return action.run(false);
 	}
 
 	canInstall(extension: IExtension): boolean {
@@ -417,7 +417,7 @@ export class ExtensionsWorkbenchService implements IExtensionsWorkbenchService {
 		return !!(extension as Extension).gallery;
 	}
 
-	install(extension: string | IExtension): TPromise<void> {
+	install(extension: string | IExtension, promptToInstallDependencies: boolean = true): TPromise<void> {
 		if (typeof extension === 'string') {
 			return this.extensionService.install(extension);
 		}
@@ -433,7 +433,7 @@ export class ExtensionsWorkbenchService implements IExtensionsWorkbenchService {
 			return TPromise.wrapError<void>(new Error('Missing gallery'));
 		}
 
-		return this.extensionService.installFromGallery(gallery);
+		return this.extensionService.installFromGallery(gallery, promptToInstallDependencies);
 	}
 
 	uninstall(extension: IExtension): TPromise<void> {