diff --git a/src/vs/code/node/cli.ts b/src/vs/code/node/cli.ts
index 6d2e397a68d9..f318aaaa9538 100644
--- a/src/vs/code/node/cli.ts
+++ b/src/vs/code/node/cli.ts
@@ -242,6 +242,21 @@ export async function main(argv: string[]): Promise<any> {
 			});
 		}
 
+		// Handle --transient option
+		if (args['transient']) {
+			const tempParentDir = randomPath(tmpdir(), 'vscode');
+			const tempUserDataDir = join(tempParentDir, 'data');
+			const tempExtensionsDir = join(tempParentDir, 'extensions');
+
+			addArg(argv, '--user-data-dir', tempUserDataDir);
+			addArg(argv, '--extensions-dir', tempExtensionsDir);
+			addArg(argv, '--disable-updates');
+
+			if (args.verbose) {
+				console.log(`Warning: state is temporarily stored in: "${tempParentDir}"`);
+			}
+		}
+
 		const hasReadStdinArg = args._.some(arg => arg === '-') || args.chat?._.some(arg => arg === '-');
 		if (hasReadStdinArg) {
 			// remove the "-" argument when we read from stdin
diff --git a/src/vs/platform/environment/common/argv.ts b/src/vs/platform/environment/common/argv.ts
index 2ffbb9773bcd..b097b84feed4 100644
--- a/src/vs/platform/environment/common/argv.ts
+++ b/src/vs/platform/environment/common/argv.ts
@@ -107,6 +107,7 @@ export interface NativeParsedArgs {
 	'install-source'?: string;
 	'add-mcp'?: string[];
 	'disable-updates'?: boolean;
+	'transient'?: boolean;
 	'use-inmemory-secretstorage'?: boolean;
 	'password-store'?: string;
 	'disable-workspace-trust'?: boolean;
diff --git a/src/vs/platform/environment/node/argv.ts b/src/vs/platform/environment/node/argv.ts
index 342718df668b..91cce390ae14 100644
--- a/src/vs/platform/environment/node/argv.ts
+++ b/src/vs/platform/environment/node/argv.ts
@@ -168,6 +168,7 @@ export const OPTIONS: OptionDescriptions<Required<NativeParsedArgs>> = {
 	'skip-welcome': { type: 'boolean' },
 	'disable-telemetry': { type: 'boolean' },
 	'disable-updates': { type: 'boolean' },
+	'transient': { type: 'boolean' },
 	'use-inmemory-secretstorage': { type: 'boolean', deprecates: ['disable-keytar'] },
 	'password-store': { type: 'string' },
 	'disable-workspace-trust': { type: 'boolean' },