diff --git a/index.ts b/index.ts
index 6f912e1f..36997386 100755
--- a/index.ts
+++ b/index.ts
@@ -307,7 +307,6 @@ async function init() {
     const templateDir = path.resolve(templateRoot, templateName)
     renderTemplate(templateDir, root)
   }
-
   // Render base template
   render('base')
 
@@ -447,7 +446,9 @@ async function init() {
   console.log(`\nDone. Now run:\n`)
   if (root !== cwd) {
     const cdProjectName = path.relative(cwd, root)
-    console.log(`  ${bold(green(`cd ${cdProjectName.includes(' ') ? `"${cdProjectName}"` : cdProjectName}`))}`)
+    console.log(
+      `  ${bold(green(`cd ${cdProjectName.includes(' ') ? `"${cdProjectName}"` : cdProjectName}`))}`
+    )
   }
   console.log(`  ${bold(green(getCommand(packageManager, 'install')))}`)
   if (needsPrettier) {
diff --git a/template/config/playwright/.vscode/extensions.json b/template/config/playwright/.vscode/extensions.json
new file mode 100644
index 00000000..7b3f8bda
--- /dev/null
+++ b/template/config/playwright/.vscode/extensions.json
@@ -0,0 +1,3 @@
+{
+  "recommendations": ["ms-playwright.playwright"]
+}
diff --git a/utils/renderTemplate.ts b/utils/renderTemplate.ts
index 529b1f17..bbfe4008 100644
--- a/utils/renderTemplate.ts
+++ b/utils/renderTemplate.ts
@@ -41,6 +41,15 @@ function renderTemplate(src, dest) {
     return
   }
 
+  if (filename === 'extensions.json' && fs.existsSync(dest)) {
+    // merge instead of overwriting
+    const existing = JSON.parse(fs.readFileSync(dest, 'utf8'))
+    const newExtensions = JSON.parse(fs.readFileSync(src, 'utf8'))
+    const extensions = deepMerge(existing, newExtensions)
+    fs.writeFileSync(dest, JSON.stringify(extensions, null, 2) + '\n')
+    return
+  }
+
   if (filename.startsWith('_')) {
     // rename `_file` to `.file`
     dest = path.resolve(path.dirname(dest), filename.replace(/^_/, '.'))