diff --git a/src/vs/vscode.proposed.d.ts b/src/vs/vscode.proposed.d.ts
index 4b8dcf46709..dfcaefa1ada 100644
--- a/src/vs/vscode.proposed.d.ts
+++ b/src/vs/vscode.proposed.d.ts
@@ -1822,6 +1822,7 @@ declare module 'vscode' {
 	}
 
 	export interface NotebookKernel {
+		readonly id: string;
 		label: string;
 		description?: string;
 		isPreferred?: boolean;
@@ -1890,8 +1891,7 @@ declare module 'vscode' {
 		 */
 		export function createConcatTextDocument(notebook: NotebookDocument, selector?: DocumentSelector): NotebookConcatTextDocument;
 
-		export let activeNotebookKernel: NotebookKernel | undefined;
-		export const onDidChangeActiveNotebookKernel: Event<void>;
+		export const onDidChangeActiveNotebookKernel: Event<{ document: NotebookDocument, kernel: NotebookKernel | undefined }>;
 	}
 
 	//#endregion
diff --git a/src/vs/workbench/api/browser/mainThreadNotebook.ts b/src/vs/workbench/api/browser/mainThreadNotebook.ts
index 2b63e4e286e..734d1da9521 100644
--- a/src/vs/workbench/api/browser/mainThreadNotebook.ts
+++ b/src/vs/workbench/api/browser/mainThreadNotebook.ts
@@ -308,6 +308,10 @@ export class MainThreadNotebooks extends Disposable implements MainThreadNoteboo
 			this._updateState();
 		}));
 
+		this._register(this._notebookService.onDidChangeNotebookActiveKernel(e => {
+			this._proxy.$acceptNotebookActiveKernelChange(e);
+		}));
+
 		const updateOrder = () => {
 			let userOrder = this.configurationService.getValue<string[]>('notebook.displayOrder');
 			this._proxy.$acceptDisplayOrder({
@@ -464,8 +468,14 @@ export class MainThreadNotebooks extends Disposable implements MainThreadNoteboo
 		const provider = this._notebookService.registerNotebookKernelProvider({
 			onDidChangeKernels: emitter.event,
 			selector: documentFilter,
-			provideKernels: (uri: URI, token: CancellationToken) => {
-				return that._proxy.$provideNotebookKernels(handle, uri, token);
+			provideKernels: async (uri: URI, token: CancellationToken) => {
+				const kernels = await that._proxy.$provideNotebookKernels(handle, uri, token);
+				return kernels.map(kernel => {
+					return {
+						...kernel,
+						providerHandle: handle
+					};
+				});
 			},
 			resolveKernel: (editorId: string, uri: URI, kernelId: string, token: CancellationToken) => {
 				return that._proxy.$resolveNotebookKernel(handle, editorId, uri, kernelId, token);
diff --git a/src/vs/workbench/api/common/extHost.api.impl.ts b/src/vs/workbench/api/common/extHost.api.impl.ts
index b343f44f2d8..61a58ff90a8 100644
--- a/src/vs/workbench/api/common/extHost.api.impl.ts
+++ b/src/vs/workbench/api/common/extHost.api.impl.ts
@@ -933,10 +933,6 @@ export function createApiFactoryAndRegisterActors(accessor: ServicesAccessor): I
 				checkProposedApiEnabled(extension);
 				return extHostNotebook.onDidChangeVisibleNotebookEditors;
 			},
-			get activeNotebookKernel() {
-				checkProposedApiEnabled(extension);
-				return extHostNotebook.activeNotebookKernel;
-			},
 			get onDidChangeActiveNotebookKernel() {
 				checkProposedApiEnabled(extension);
 				return extHostNotebook.onDidChangeActiveNotebookKernel;
diff --git a/src/vs/workbench/api/common/extHost.protocol.ts b/src/vs/workbench/api/common/extHost.protocol.ts
index b004b04eb5f..0bf1bfa6493 100644
--- a/src/vs/workbench/api/common/extHost.protocol.ts
+++ b/src/vs/workbench/api/common/extHost.protocol.ts
@@ -1623,6 +1623,7 @@ export interface ExtHostNotebookShape {
 	$saveNotebookAs(viewType: string, uri: UriComponents, target: UriComponents, token: CancellationToken): Promise<boolean>;
 	$backup(viewType: string, uri: UriComponents, cancellation: CancellationToken): Promise<string | undefined>;
 	$acceptDisplayOrder(displayOrder: INotebookDisplayOrder): void;
+	$acceptNotebookActiveKernelChange(event: { uri: UriComponents, providerHandle: number | undefined, kernelId: string | undefined }): void;
 	$renderOutputs(uriComponents: UriComponents, id: string, request: IOutputRenderRequest<UriComponents>): Promise<IOutputRenderResponse<UriComponents> | undefined>;
 	$renderOutputs2<T>(uriComponents: UriComponents, id: string, request: IOutputRenderRequest<T>): Promise<IOutputRenderResponse<T> | undefined>;
 	$onDidReceiveMessage(editorId: string, rendererId: string | undefined, message: unknown): void;
diff --git a/src/vs/workbench/api/common/extHostNotebook.ts b/src/vs/workbench/api/common/extHostNotebook.ts
index c55f9218edc..515262f4cc4 100644
--- a/src/vs/workbench/api/common/extHostNotebook.ts
+++ b/src/vs/workbench/api/common/extHostNotebook.ts
@@ -767,11 +767,18 @@ export class ExtHostNotebookKernelProviderAdapter extends Disposable {
 		const data = await this._provider.provideKernels(document, token) || [];
 
 		const newMap = new Map<vscode.NotebookKernel, string>();
+		let kernel_unique_pool = 0;
+		let kernelIdCache = new Set<string>();
 
 		const transformedData: INotebookKernelInfoDto2[] = data.map(kernel => {
 			let id = this._kernelToId.get(kernel);
 			if (id === undefined) {
-				id = UUID.generateUuid();
+				if (kernel.id && kernelIdCache.has(kernel.id)) {
+					id = `${this._extension.identifier.value}_${kernel.id}_${kernel_unique_pool++}`;
+				} else {
+					id = `${this._extension.identifier.value}_${kernel.id || UUID.generateUuid()}`;
+				}
+
 				this._kernelToId.set(kernel, id);
 			}
 
@@ -798,6 +805,10 @@ export class ExtHostNotebookKernelProviderAdapter extends Disposable {
 		return transformedData;
 	}
 
+	getKernel(kernelId: string) {
+		return this._idToKernel.get(kernelId);
+	}
+
 	async resolveNotebook(kernelId: string, document: ExtHostNotebookDocument, webview: vscode.NotebookCommunication, token: CancellationToken) {
 		const kernel = this._idToKernel.get(kernelId);
 
@@ -864,9 +875,7 @@ export class ExtHostNotebookController implements ExtHostNotebookShape, ExtHostN
 	private _onDidCloseNotebookDocument = new Emitter<vscode.NotebookDocument>();
 	onDidCloseNotebookDocument: Event<vscode.NotebookDocument> = this._onDidCloseNotebookDocument.event;
 	visibleNotebookEditors: ExtHostNotebookEditor[] = [];
-	activeNotebookKernel?: vscode.NotebookKernel;
-
-	private _onDidChangeActiveNotebookKernel = new Emitter<void>();
+	private _onDidChangeActiveNotebookKernel = new Emitter<{ document: ExtHostNotebookDocument, kernel: vscode.NotebookKernel | undefined }>();
 	onDidChangeActiveNotebookKernel = this._onDidChangeActiveNotebookKernel.event;
 	private _onDidChangeVisibleNotebookEditors = new Emitter<vscode.NotebookEditor[]>();
 	onDidChangeVisibleNotebookEditors = this._onDidChangeVisibleNotebookEditors.event;
@@ -1314,6 +1323,15 @@ export class ExtHostNotebookController implements ExtHostNotebookShape, ExtHostN
 		this._outputDisplayOrder = displayOrder;
 	}
 
+	$acceptNotebookActiveKernelChange(event: { uri: UriComponents, providerHandle: number | undefined, kernelId: string | undefined }) {
+		if (event.providerHandle !== undefined) {
+			this._withAdapter(event.providerHandle, event.uri, async (adapter, document) => {
+				const kernel = event.kernelId ? adapter.getKernel(event.kernelId) : undefined;
+				this._onDidChangeActiveNotebookKernel.fire({ document, kernel });
+			});
+		}
+	}
+
 	// TODO: remove document - editor one on one mapping
 	private _getEditorFromURI(uriComponents: UriComponents) {
 		const uriStr = URI.revive(uriComponents).toString();
diff --git a/src/vs/workbench/contrib/notebook/browser/notebookServiceImpl.ts b/src/vs/workbench/contrib/notebook/browser/notebookServiceImpl.ts
index c4db8ed24b9..41d059f556a 100644
--- a/src/vs/workbench/contrib/notebook/browser/notebookServiceImpl.ts
+++ b/src/vs/workbench/contrib/notebook/browser/notebookServiceImpl.ts
@@ -174,6 +174,7 @@ export class NotebookService extends Disposable implements INotebookService, ICu
 	private readonly _models = new Map<string, ModelData>();
 	private _onDidChangeActiveEditor = new Emitter<string | null>();
 	onDidChangeActiveEditor: Event<string | null> = this._onDidChangeActiveEditor.event;
+	private _activeEditorDisposables = new DisposableStore();
 	private _onDidChangeVisibleEditors = new Emitter<string[]>();
 	onDidChangeVisibleEditors: Event<string[]> = this._onDidChangeVisibleEditors.event;
 	private readonly _onNotebookEditorAdd: Emitter<INotebookEditor> = this._register(new Emitter<INotebookEditor>());
@@ -191,6 +192,8 @@ export class NotebookService extends Disposable implements INotebookService, ICu
 
 	private readonly _onDidChangeKernels = new Emitter<void>();
 	onDidChangeKernels: Event<void> = this._onDidChangeKernels.event;
+	private readonly _onDidChangeNotebookActiveKernel = new Emitter<{ uri: URI, providerHandle: number | undefined, kernelId: string | undefined }>();
+	onDidChangeNotebookActiveKernel: Event<{ uri: URI, providerHandle: number | undefined, kernelId: string | undefined }> = this._onDidChangeNotebookActiveKernel.event;
 	private cutItems: NotebookCellTextModel[] | undefined;
 	private _lastClipboardIsCopy: boolean = true;
 
@@ -768,6 +771,17 @@ export class NotebookService extends Disposable implements INotebookService, ICu
 	}
 
 	updateActiveNotebookEditor(editor: INotebookEditor | null) {
+		this._activeEditorDisposables.clear();
+
+		if (editor) {
+			this._activeEditorDisposables.add(editor.onDidChangeKernel(() => {
+				this._onDidChangeNotebookActiveKernel.fire({
+					uri: editor.uri!,
+					providerHandle: editor.activeKernel?.providerHandle,
+					kernelId: editor.activeKernel?.id
+				});
+			}));
+		}
 		this._onDidChangeActiveEditor.fire(editor ? editor.getId() : null);
 	}
 
diff --git a/src/vs/workbench/contrib/notebook/common/notebookCommon.ts b/src/vs/workbench/contrib/notebook/common/notebookCommon.ts
index e7063754ffe..478bc1d959e 100644
--- a/src/vs/workbench/contrib/notebook/common/notebookCommon.ts
+++ b/src/vs/workbench/contrib/notebook/common/notebookCommon.ts
@@ -118,7 +118,9 @@ export interface INotebookKernelInfo {
 	extension: ExtensionIdentifier;
 	extensionLocation: URI,
 	preloads: URI[];
+	providerHandle?: number;
 	executeNotebook(viewType: string, uri: URI, handle: number | undefined, token: CancellationToken): Promise<void>;
+
 }
 
 export interface INotebookKernelInfoDto {
@@ -641,6 +643,7 @@ export interface INotebookKernelInfoDto2 {
 	label: string;
 	extension: ExtensionIdentifier;
 	extensionLocation: URI;
+	providerHandle?: number;
 	description?: string;
 	isPreferred?: boolean;
 	preloads?: UriComponents[];
diff --git a/src/vs/workbench/contrib/notebook/common/notebookService.ts b/src/vs/workbench/contrib/notebook/common/notebookService.ts
index 4ca02503000..36f7d3192fa 100644
--- a/src/vs/workbench/contrib/notebook/common/notebookService.ts
+++ b/src/vs/workbench/contrib/notebook/common/notebookService.ts
@@ -43,6 +43,7 @@ export interface INotebookService {
 	onNotebookDocumentRemove: Event<URI[]>;
 	onNotebookDocumentAdd: Event<URI[]>;
 	onDidChangeKernels: Event<void>;
+	onDidChangeNotebookActiveKernel: Event<{ uri: URI, providerHandle: number | undefined, kernelId: string | undefined }>;
 	registerNotebookController(viewType: string, extensionData: NotebookExtensionDescription, controller: IMainNotebookController): void;
 	unregisterNotebookProvider(viewType: string): void;
 	registerNotebookRenderer(id: string, renderer: INotebookRendererInfo): void;