diff --git a/src/vs/base/node/unc.d.ts b/src/vs/base/node/unc.d.ts
index 1e78aba97a1..75e53310c8c 100644
--- a/src/vs/base/node/unc.d.ts
+++ b/src/vs/base/node/unc.d.ts
@@ -17,3 +17,9 @@ export function getUNCHostAllowlist(): string[];
  * Adds one to many UNC host(s) to the allowed list in node.js.
  */
 export function addUNCHostToAllowlist(allowedHost: string | string[]): void;
+
+/**
+ * Disables UNC Host allow list in node.js and thus disables UNC
+ * path validation.
+ */
+export function disableUNCAccessRestrictions(): void;
diff --git a/src/vs/base/node/unc.js b/src/vs/base/node/unc.js
index 7b046936764..7a1c9e14ac6 100644
--- a/src/vs/base/node/unc.js
+++ b/src/vs/base/node/unc.js
@@ -109,10 +109,19 @@
 			return host;
 		}
 
+		function disableUNCAccessRestrictions() {
+			if (process.platform !== 'win32') {
+				return;
+			}
+
+			process.enableUNCAccessChecks = false;
+		}
+
 		return {
 			getUNCHostAllowlist,
 			addUNCHostToAllowlist,
-			getUNCHost
+			getUNCHost,
+			disableUNCAccessRestrictions
 		};
 	}
 
diff --git a/src/vs/code/electron-main/app.ts b/src/vs/code/electron-main/app.ts
index 8a5181c3dab..09510958be4 100644
--- a/src/vs/code/electron-main/app.ts
+++ b/src/vs/code/electron-main/app.ts
@@ -4,7 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import { app, BrowserWindow, dialog, protocol, session, Session, systemPreferences, WebFrameMain } from 'electron';
-import { addUNCHostToAllowlist } from 'vs/base/node/unc';
+import { addUNCHostToAllowlist, disableUNCAccessRestrictions } from 'vs/base/node/unc';
 import { validatedIpcMain } from 'vs/base/parts/ipc/electron-main/ipcMain';
 import { hostname, release } from 'os';
 import { VSBuffer } from 'vs/base/common/buffer';
@@ -320,7 +320,11 @@ export class CodeApplication extends Disposable {
 		//#region UNC Host Allowlist (Windows)
 
 		if (isWindows) {
-			addUNCHostToAllowlist(this.configurationService.getValue('security.allowedUNCHosts'));
+			if (this.configurationService.getValue('security.restrictUNCAccess') === false) {
+				disableUNCAccessRestrictions();
+			} else {
+				addUNCHostToAllowlist(this.configurationService.getValue('security.allowedUNCHosts'));
+			}
 		}
 
 		//#endregion
diff --git a/src/vs/server/node/remoteExtensionHostAgentCli.ts b/src/vs/server/node/remoteExtensionHostAgentCli.ts
index 561637d13b9..5f6c64c3a1d 100644
--- a/src/vs/server/node/remoteExtensionHostAgentCli.ts
+++ b/src/vs/server/node/remoteExtensionHostAgentCli.ts
@@ -49,7 +49,7 @@ import { ExtensionsProfileScannerService } from 'vs/platform/extensionManagement
 import { LogService } from 'vs/platform/log/common/logService';
 import { LoggerService } from 'vs/platform/log/node/loggerService';
 import { localize } from 'vs/nls';
-import { addUNCHostToAllowlist } from 'vs/base/node/unc';
+import { addUNCHostToAllowlist, disableUNCAccessRestrictions } from 'vs/base/node/unc';
 
 class CliMain extends Disposable {
 
@@ -72,7 +72,11 @@ class CliMain extends Disposable {
 
 			// On Windows, configure the UNC allow list based on settings
 			if (isWindows) {
-				addUNCHostToAllowlist(configurationService.getValue('security.allowedUNCHosts'));
+				if (configurationService.getValue('security.restrictUNCAccess') === false) {
+					disableUNCAccessRestrictions();
+				} else {
+					addUNCHostToAllowlist(configurationService.getValue('security.allowedUNCHosts'));
+				}
 			}
 
 			try {
diff --git a/src/vs/server/node/remoteExtensionHostAgentServer.ts b/src/vs/server/node/remoteExtensionHostAgentServer.ts
index 743bbd6145a..86fa775403e 100644
--- a/src/vs/server/node/remoteExtensionHostAgentServer.ts
+++ b/src/vs/server/node/remoteExtensionHostAgentServer.ts
@@ -23,7 +23,7 @@ import { createRegExp, escapeRegExpCharacters } from 'vs/base/common/strings';
 import { URI } from 'vs/base/common/uri';
 import { generateUuid } from 'vs/base/common/uuid';
 import { findFreePort } from 'vs/base/node/ports';
-import { addUNCHostToAllowlist } from 'vs/base/node/unc';
+import { addUNCHostToAllowlist, disableUNCAccessRestrictions } from 'vs/base/node/unc';
 import { PersistentProtocol } from 'vs/base/parts/ipc/common/ipc.net';
 import { NodeSocket, WebSocketNodeSocket } from 'vs/base/parts/ipc/node/ipc.net';
 import { IConfigurationService } from 'vs/platform/configuration/common/configuration';
@@ -719,7 +719,11 @@ export async function createServer(address: string | net.AddressInfo | null, arg
 		const configurationService = accessor.get(IConfigurationService);
 
 		if (platform.isWindows) {
-			addUNCHostToAllowlist(configurationService.getValue('security.allowedUNCHosts'));
+			if (configurationService.getValue('security.restrictUNCAccess') === false) {
+				disableUNCAccessRestrictions();
+			} else {
+				addUNCHostToAllowlist(configurationService.getValue('security.allowedUNCHosts'));
+			}
 		}
 	});
 
diff --git a/src/vs/workbench/browser/workbench.contribution.ts b/src/vs/workbench/browser/workbench.contribution.ts
index cef5e663bd6..2dd6519071f 100644
--- a/src/vs/workbench/browser/workbench.contribution.ts
+++ b/src/vs/workbench/browser/workbench.contribution.ts
@@ -704,6 +704,13 @@ const registry = Registry.as<IConfigurationRegistry>(ConfigurationExtensions.Con
 				'markdownDescription': localize('security.allowedUNCHosts', 'A set of UNC host names (without leading or trailing backslash, for example `192.168.0.1` or `my-server`) to allow without user confirmation. If a UNC host is being accessed that is not allowed via this setting or has not been acknowledged via user confirmation, an error will occur and the operation stopped. A restart is required when changing this setting. Find out more about this setting at https://aka.ms/vscode-windows-unc.'),
 				'included': isWeb ? true /* web maybe connected to a windows machine */ : isWindows,
 				'scope': ConfigurationScope.MACHINE
+			},
+			'security.restrictUNCAccess': {
+				'type': 'boolean',
+				'default': true,
+				'markdownDescription': localize('security.restrictUNCAccess', 'If enabled, only allowes access to UNC host names that are allowed by the `#security.allowedUNCHosts#` setting or after user confirmation. Find out more about this setting at https://aka.ms/vscode-windows-unc.'),
+				'included': isWeb ? true /* web maybe connected to a windows machine */ : isWindows,
+				'scope': ConfigurationScope.MACHINE
 			}
 		}
 	});
diff --git a/src/vs/workbench/contrib/relauncher/browser/relauncher.contribution.ts b/src/vs/workbench/contrib/relauncher/browser/relauncher.contribution.ts
index c4918b91c13..9942f0f95c3 100644
--- a/src/vs/workbench/contrib/relauncher/browser/relauncher.contribution.ts
+++ b/src/vs/workbench/contrib/relauncher/browser/relauncher.contribution.ts
@@ -25,7 +25,7 @@ interface IConfiguration extends IWindowsConfiguration {
 	update?: { mode?: string };
 	debug?: { console?: { wordWrap?: boolean } };
 	editor?: { accessibilitySupport?: 'on' | 'off' | 'auto' };
-	security?: { workspace?: { trust?: { enabled?: boolean } } };
+	security?: { workspace?: { trust?: { enabled?: boolean } }; restrictUNCAccess?: boolean };
 	window: IWindowSettings & { experimental?: { windowControlsOverlay?: { enabled?: boolean } } };
 	workbench?: { enableExperiments?: boolean };
 	_extensionsGallery?: { enablePPE?: boolean };
@@ -43,7 +43,8 @@ export class SettingsChangeRelauncher extends Disposable implements IWorkbenchCo
 		'editor.accessibilitySupport',
 		'security.workspace.trust.enabled',
 		'workbench.enableExperiments',
-		'_extensionsGallery.enablePPE'
+		'_extensionsGallery.enablePPE',
+		'security.restrictUNCAccess'
 	];
 
 	private readonly titleBarStyle = new ChangeObserver<'native' | 'custom'>('string');
@@ -56,6 +57,7 @@ export class SettingsChangeRelauncher extends Disposable implements IWorkbenchCo
 	private readonly workspaceTrustEnabled = new ChangeObserver('boolean');
 	private readonly experimentsEnabled = new ChangeObserver('boolean');
 	private readonly enablePPEExtensionsGallery = new ChangeObserver('boolean');
+	private readonly restrictUNCAccess = new ChangeObserver('boolean');
 
 	constructor(
 		@IHostService private readonly hostService: IHostService,
@@ -112,6 +114,9 @@ export class SettingsChangeRelauncher extends Disposable implements IWorkbenchCo
 
 			// Workspace trust
 			processChanged(this.workspaceTrustEnabled.handleChange(config?.security?.workspace?.trust?.enabled));
+
+			// UNC host access restrictions
+			processChanged(this.restrictUNCAccess.handleChange(config?.security?.restrictUNCAccess));
 		}
 
 		// Experiments