diff --git a/extensions/typescript-language-features/.vscodeignore b/extensions/typescript-language-features/.vscodeignore
index 5c4f06d4cd3..c9b6c88a79c 100644
--- a/extensions/typescript-language-features/.vscodeignore
+++ b/extensions/typescript-language-features/.vscodeignore
@@ -4,8 +4,7 @@ web/**
 test/**
 test-workspace/**
 out/**
-tsconfig.json
-extension.webpack.config.js
-extension-browser.webpack.config.js
+tsconfig*.json
+esbuild*.mts
 cgmanifest.json
 package-lock.json
diff --git a/extensions/typescript-language-features/esbuild.browser.mts b/extensions/typescript-language-features/esbuild.browser.mts
new file mode 100644
index 00000000000..b24d4781cb8
--- /dev/null
+++ b/extensions/typescript-language-features/esbuild.browser.mts
@@ -0,0 +1,141 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+import * as fs from 'node:fs';
+import * as path from 'node:path';
+import type esbuild from 'esbuild';
+import { run } from '../esbuild-extension-common.mts';
+
+const srcDir = path.join(import.meta.dirname, 'src');
+const outDir = path.join(import.meta.dirname, 'dist', 'browser');
+
+// https://esbuild.github.io/plugins/#webassembly-plugin
+const wasmPlugin: esbuild.Plugin = {
+	name: 'wasm',
+	setup(build) {
+		build.onResolve({ filter: /\.wasm$/ }, args => {
+			if (args.namespace === 'wasm-stub') {
+				return {
+					path: args.path,
+					namespace: 'wasm-binary',
+				};
+			}
+
+			if (args.resolveDir === '') {
+				return;
+			}
+			return {
+				path: path.isAbsolute(args.path)
+					? args.path
+					: path.join(args.resolveDir, args.path),
+				namespace: 'wasm-stub',
+			};
+		});
+
+		build.onLoad({ filter: /.*/, namespace: 'wasm-stub' }, async (args) => ({
+			contents: `import wasm from ${JSON.stringify(args.path)}
+				export default (imports) =>
+					WebAssembly.instantiate(wasm, imports).then(
+						result => result.instance.exports)`,
+		}));
+
+		build.onLoad({ filter: /.*/, namespace: 'wasm-binary' }, async (args) => ({
+			contents: await fs.promises.readFile(args.path),
+			loader: 'binary',
+		}));
+	},
+};
+
+const languages = [
+	'zh-tw',
+	'cs',
+	'de',
+	'es',
+	'fr',
+	'it',
+	'ja',
+	'ko',
+	'pl',
+	'pt-br',
+	'ru',
+	'tr',
+	'zh-cn',
+];
+
+/**
+ * Copy TypeScript lib files (.d.ts, typesMap.json, and language packs) to the output directory.
+ */
+async function copyTypescriptLibFiles(outDir: string): Promise<void> {
+	try {
+		const typescriptLibDir = path.join(import.meta.dirname, '..', 'node_modules', 'typescript', 'lib');
+		const destDir = path.join(outDir, 'typescript');
+
+		await fs.promises.mkdir(destDir, { recursive: true });
+
+		// Copy .d.ts files
+		const libFiles = await fs.promises.readdir(typescriptLibDir);
+		for (const file of libFiles) {
+			if (file.endsWith('.d.ts')) {
+				await fs.promises.copyFile(path.join(typescriptLibDir, file), path.join(destDir, file));
+			}
+		}
+
+		// Copy typesMap.json
+		await fs.promises.copyFile(path.join(typescriptLibDir, 'typesMap.json'), path.join(destDir, 'typesMap.json'));
+
+		// Copy language packs
+		for (const lang of languages) {
+			const langSrcDir = path.join(typescriptLibDir, lang);
+			const langDestDir = path.join(destDir, lang);
+			try {
+				await fs.promises.mkdir(langDestDir, { recursive: true });
+				const langFiles = await fs.promises.readdir(langSrcDir);
+				for (const file of langFiles) {
+					const srcPath = path.join(langSrcDir, file);
+					const destPath = path.join(langDestDir, file);
+					const stat = await fs.promises.stat(srcPath);
+					if (stat.isFile()) {
+						await fs.promises.copyFile(srcPath, destPath);
+					}
+				}
+			} catch {
+				// Skip if language directory doesn't exist
+			}
+		}
+	} catch (error) {
+		console.error('Error copying TypeScript lib files:', error);
+		throw error;
+	}
+}
+
+
+await Promise.all([
+	// Build the browser extension entry point
+	run({
+		platform: 'browser',
+		entryPoints: {
+			'extension': path.join(srcDir, 'extension.browser.ts'),
+		},
+		srcDir,
+		outdir: outDir,
+		additionalOptions: {
+			plugins: [wasmPlugin],
+		},
+	}, process.argv, copyTypescriptLibFiles),
+
+	// Build the web tsserver worker
+	run({
+		platform: 'browser',
+		entryPoints: {
+			'typescript/tsserver.web': path.join(import.meta.dirname, 'web', 'src', 'webServer.ts'),
+		},
+		srcDir: path.join(import.meta.dirname, 'web', 'src'),
+		outdir: outDir,
+		additionalOptions: {
+			tsconfig: path.join(import.meta.dirname, 'web', 'tsconfig.json'),
+			external: ['perf_hooks'],
+			plugins: [wasmPlugin],
+		},
+	}, process.argv),
+]);
diff --git a/extensions/typescript-language-features/extension.webpack.config.js b/extensions/typescript-language-features/esbuild.mts
similarity index 51%
rename from extensions/typescript-language-features/extension.webpack.config.js
rename to extensions/typescript-language-features/esbuild.mts
index 4928186ae55..2b75ca703da 100644
--- a/extensions/typescript-language-features/extension.webpack.config.js
+++ b/extensions/typescript-language-features/esbuild.mts
@@ -2,15 +2,17 @@
  *  Copyright (c) Microsoft Corporation. All rights reserved.
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
-// @ts-check
-import withDefaults from '../shared.webpack.config.mjs';
+import * as path from 'node:path';
+import { run } from '../esbuild-extension-common.mts';
 
-export default withDefaults({
-	context: import.meta.dirname,
-	resolve: {
-		mainFields: ['module', 'main']
+const srcDir = path.join(import.meta.dirname, 'src');
+const outDir = path.join(import.meta.dirname, 'dist');
+
+run({
+	platform: 'node',
+	entryPoints: {
+		'extension': path.join(srcDir, 'extension.ts'),
 	},
-	entry: {
-		extension: './src/extension.ts',
-	}
-});
+	srcDir,
+	outdir: outDir,
+}, process.argv);
diff --git a/extensions/typescript-language-features/extension-browser.webpack.config.js b/extensions/typescript-language-features/extension-browser.webpack.config.js
deleted file mode 100644
index 86733dfd1ee..00000000000
--- a/extensions/typescript-language-features/extension-browser.webpack.config.js
+++ /dev/null
@@ -1,78 +0,0 @@
-/*---------------------------------------------------------------------------------------------
- *  Copyright (c) Microsoft Corporation. All rights reserved.
- *  Licensed under the MIT License. See License.txt in the project root for license information.
- *--------------------------------------------------------------------------------------------*/
-// @ts-check
-import CopyPlugin from 'copy-webpack-plugin';
-import path from 'path';
-import defaultConfig, { browser as withBrowserDefaults, browserPlugins } from '../shared.webpack.config.mjs';
-
-const languages = [
-	'zh-tw',
-	'cs',
-	'de',
-	'es',
-	'fr',
-	'it',
-	'ja',
-	'ko',
-	'pl',
-	'pt-br',
-	'ru',
-	'tr',
-	'zh-cn',
-];
-export default [withBrowserDefaults({
-	context: import.meta.dirname,
-	entry: {
-		extension: './src/extension.browser.ts',
-	},
-	plugins: [
-		...browserPlugins(import.meta.dirname), // add plugins, don't replace inherited
-
-		// @ts-ignore
-		new CopyPlugin({
-			patterns: [
-				{
-					from: '../node_modules/typescript/lib/*.d.ts',
-					to: 'typescript/[name][ext]',
-				},
-				{
-					from: '../node_modules/typescript/lib/typesMap.json',
-					to: 'typescript/'
-				},
-				...languages.map(lang => ({
-					from: `../node_modules/typescript/lib/${lang}/**/*`,
-					to: (pathData) => {
-						const normalizedFileName = pathData.absoluteFilename.replace(/[\\/]/g, '/');
-						const match = normalizedFileName.match(/typescript\/lib\/(.*)/);
-						if (match) {
-							return `typescript/${match[1]}`;
-						}
-						console.log(`Did not find typescript/lib in ${normalizedFileName}`);
-						return 'typescript/';
-					}
-				}))
-			],
-		}),
-	],
-}), withBrowserDefaults({
-	context: import.meta.dirname,
-	entry: {
-		'typescript/tsserver.web': './web/src/webServer.ts'
-	},
-	module: {
-		exprContextCritical: false,
-	},
-	ignoreWarnings: [/Critical dependency: the request of a dependency is an expression/],
-	output: {
-		// all output goes into `dist`.
-		// packaging depends on that and this must always be like it
-		filename: '[name].js',
-		path: path.join(import.meta.dirname, 'dist', 'browser'),
-		libraryTarget: undefined,
-	},
-	externals: {
-		'perf_hooks': 'commonjs perf_hooks',
-	}
-})];
diff --git a/extensions/typescript-language-features/package.json b/extensions/typescript-language-features/package.json
index 66a1c65819d..28565c0e751 100644
--- a/extensions/typescript-language-features/package.json
+++ b/extensions/typescript-language-features/package.json
@@ -54,8 +54,12 @@
   },
   "scripts": {
     "vscode:prepublish": "node ../../node_modules/gulp/bin/gulp.js --gulpfile ../../build/gulpfile.extensions.mjs compile-extension:typescript-language-features",
-    "compile-web": "npx webpack-cli --config extension-browser.webpack.config --mode none",
-    "watch-web": "npx webpack-cli --config extension-browser.webpack.config --mode none --watch"
+    "compile-web": "npm-run-all2 -lp bundle-web typecheck-web",
+    "bundle-web": "node ./esbuild.browser.mts",
+    "typecheck-web": "tsgo --project ./tsconfig.browser.json --noEmit",
+    "watch-web": "npm-run-all2 -lp watch-bundle-web watch-typecheck-web",
+    "watch-bundle-web": "node ./esbuild.browser.mts --watch",
+    "watch-typecheck-web": "tsgo --project ./tsconfig.browser.json --noEmit --watch"
   },
   "activationEvents": [
     "onLanguage:javascript",
diff --git a/extensions/typescript-language-features/tsconfig.browser.json b/extensions/typescript-language-features/tsconfig.browser.json
new file mode 100644
index 00000000000..790349e7fec
--- /dev/null
+++ b/extensions/typescript-language-features/tsconfig.browser.json
@@ -0,0 +1,10 @@
+{
+	"extends": "./tsconfig.json",
+	"compilerOptions": {},
+	"exclude": [
+		"./src/test/**"
+	],
+	"files": [
+		"./src/extension.browser.ts"
+	]
+}