diff --git a/src/vs/platform/extensionManagement/common/extensionManagement.ts b/src/vs/platform/extensionManagement/common/extensionManagement.ts
index 12243f5f237fc5cc285333d0d48f380c335a2fe9..3f6e9a49fbed0306c24041e3a74e62f2aed46028 100644
--- a/src/vs/platform/extensionManagement/common/extensionManagement.ts
+++ b/src/vs/platform/extensionManagement/common/extensionManagement.ts
@@ -122,6 +122,7 @@ export interface IExtensionManifest {
 	main?: string;
 	icon?: string;
 	categories?: string[];
+	keywords?: string[];
 	activationEvents?: string[];
 	extensionDependencies?: string[];
 	extensionPack?: string[];
diff --git a/src/vs/platform/extensionManagement/common/extensionManagementUtil.ts b/src/vs/platform/extensionManagement/common/extensionManagementUtil.ts
index 208631c7b63b46de82673641891760d5b09e8ffa..0f626331d1d82aeeedb88ce4fbf26119f53ff720 100644
--- a/src/vs/platform/extensionManagement/common/extensionManagementUtil.ts
+++ b/src/vs/platform/extensionManagement/common/extensionManagementUtil.ts
@@ -6,6 +6,7 @@
 'use strict';
 
 import { ILocalExtension, IGalleryExtension, EXTENSION_IDENTIFIER_REGEX, IExtensionIdentifier, IReportedExtension, IExtensionManifest } from 'vs/platform/extensionManagement/common/extensionManagement';
+import { IConfigurationService } from 'vs/platform/configuration/common/configuration';
 
 export function areSameExtensions(a: IExtensionIdentifier, b: IExtensionIdentifier): boolean {
 	if (a.uuid && b.uuid) {
@@ -119,9 +120,22 @@ export function getMaliciousExtensionsSet(report: IReportedExtension[]): Set<str
 	return result;
 }
 
-export function isWorkspaceExtension(manifest: IExtensionManifest): boolean {
+export function isWorkspaceExtension(manifest: IExtensionManifest, configurationService: IConfigurationService): boolean {
+	const extensionId = getGalleryExtensionId(manifest.publisher, manifest.name);
+	const workspaceExtensions = configurationService.getValue<string[]>('_workbench.workspaceExtensions') || [];
+	if (workspaceExtensions.length) {
+		if (workspaceExtensions.indexOf(extensionId) !== -1) {
+			return true;
+		}
+		if (workspaceExtensions.indexOf(`-${extensionId}`) !== -1) {
+			return false;
+		}
+	}
+
 	if (manifest.main) {
-		const extensionId = getGalleryExtensionId(manifest.publisher, manifest.name);
+		if ((manifest.keywords || []).indexOf('capability_fs') !== -1) {
+			return true;
+		}
 		return [
 			'vscode.extension-editing',
 			'vscode.configuration-editing',
diff --git a/src/vs/platform/extensionManagement/common/multiExtensionManagement.ts b/src/vs/platform/extensionManagement/common/multiExtensionManagement.ts
index 034d60be81658ae523c8856b8e23fb999b11d925..852ccee6bfcc3a287f7ca4cdf06359a677166795 100644
--- a/src/vs/platform/extensionManagement/common/multiExtensionManagement.ts
+++ b/src/vs/platform/extensionManagement/common/multiExtensionManagement.ts
@@ -18,6 +18,7 @@ import { IWindowService } from 'vs/platform/windows/common/windows';
 import { Action } from 'vs/base/common/actions';
 import { ILogService } from 'vs/platform/log/common/log';
 import { Disposable } from 'vs/base/common/lifecycle';
+import { IConfigurationService } from 'vs/platform/configuration/common/configuration';
 
 export class MulitExtensionManagementService extends Disposable implements IExtensionManagementService {
 
@@ -37,7 +38,8 @@ export class MulitExtensionManagementService extends Disposable implements IExte
 		@INotificationService private notificationService: INotificationService,
 		@IWindowService private windowService: IWindowService,
 		@ILogService private logService: ILogService,
-		@IExtensionGalleryService private extensionGalleryService: IExtensionGalleryService
+		@IExtensionGalleryService private extensionGalleryService: IExtensionGalleryService,
+		@IConfigurationService private configurationService: IConfigurationService
 	) {
 		super();
 		this.servers = this.extensionManagementServerService.extensionManagementServers;
@@ -84,7 +86,7 @@ export class MulitExtensionManagementService extends Disposable implements IExte
 			.then(extensionIdentifer => this.localServer.extensionManagementService.getInstalled(LocalExtensionType.User)
 				.then(installed => {
 					const extension = installed.filter(i => areSameExtensions(i.identifier, extensionIdentifer))[0];
-					if (extension && isWorkspaceExtension(extension.manifest)) {
+					if (this.otherServers.length && extension && isWorkspaceExtension(extension.manifest, this.configurationService)) {
 						return TPromise.join(this.otherServers.map(server => server.extensionManagementService.install(vsix)))
 							.then(() => extensionIdentifer);
 					}
@@ -98,7 +100,7 @@ export class MulitExtensionManagementService extends Disposable implements IExte
 		}
 		return this.extensionGalleryService.getManifest(gallery)
 			.then(manifest => {
-				const servers = isWorkspaceExtension(manifest) ? this.servers : [this.localServer];
+				const servers = isWorkspaceExtension(manifest, this.configurationService) ? this.servers : [this.localServer];
 				return TPromise.join(servers.map(server => server.extensionManagementService.installFromGallery(gallery)))
 					.then(() => null);
 			});
@@ -115,7 +117,7 @@ export class MulitExtensionManagementService extends Disposable implements IExte
 	private async syncExtensions(): Promise<void> {
 		this.localServer.extensionManagementService.getInstalled(LocalExtensionType.User)
 			.then(async localExtensions => {
-				const workspaceExtensions = localExtensions.filter(e => isWorkspaceExtension(e.manifest));
+				const workspaceExtensions = localExtensions.filter(e => isWorkspaceExtension(e.manifest, this.configurationService));
 				const extensionsToSync: Map<IExtensionManagementServer, ILocalExtension[]> = await this.getExtensionsToSync(workspaceExtensions);
 				if (extensionsToSync.size > 0) {
 					const handler = this.notificationService.notify({ severity: Severity.Info, message: localize('synchronising', "Synchronising workspace extensions...") });