diff --git a/extensions/merge-conflict/package.json b/extensions/merge-conflict/package.json
index 942abb0ce9f..3aa6b16014d 100644
--- a/extensions/merge-conflict/package.json
+++ b/extensions/merge-conflict/package.json
@@ -14,7 +14,7 @@
     "Other"
   ],
   "capabilities": {
-    "virtualWorkspaces": false,
+    "virtualWorkspaces": true,
     "untrustedWorkspaces": {
       "supported": true
     }