diff --git a/vscode-extension/.gitignore b/vscode-extension/.gitignore
new file mode 100644
index 0000000..d2703e4
--- /dev/null
+++ b/vscode-extension/.gitignore
@@ -0,0 +1,3 @@
+node_modules
+dist
+*.vsix
diff --git a/vscode-extension/.vscode/launch.json b/vscode-extension/.vscode/launch.json
new file mode 100644
index 0000000..de34de7
--- /dev/null
+++ b/vscode-extension/.vscode/launch.json
@@ -0,0 +1,17 @@
+{
+  "version": "0.2.0",
+  "configurations": [
+    {
+      "name": "Run Extension",
+      "type": "extensionHost",
+      "request": "launch",
+      "args": [
+        "--extensionDevelopmentPath=${workspaceFolder}"
+      ],
+      "outFiles": [
+        "${workspaceFolder}/dist/**/*.js"
+      ],
+      "preLaunchTask": "bun: compile"
+    }
+  ]
+}
diff --git a/vscode-extension/.vscode/tasks.json b/vscode-extension/.vscode/tasks.json
new file mode 100644
index 0000000..cca534f
--- /dev/null
+++ b/vscode-extension/.vscode/tasks.json
@@ -0,0 +1,30 @@
+{
+  "version": "2.0.0",
+  "tasks": [
+    {
+      "type": "shell",
+      "label": "bun: compile",
+      "command": "bun",
+      "args": ["run", "compile"],
+      "options": {
+        "cwd": "${workspaceFolder}"
+      },
+      "problemMatcher": "$tsc",
+      "group": {
+        "kind": "build",
+        "isDefault": true
+      }
+    },
+    {
+      "type": "shell",
+      "label": "bun: watch",
+      "command": "bun",
+      "args": ["run", "watch"],
+      "options": {
+        "cwd": "${workspaceFolder}"
+      },
+      "problemMatcher": "$tsc-watch",
+      "isBackground": true
+    }
+  ]
+}
diff --git a/vscode-extension/.vscodeignore b/vscode-extension/.vscodeignore
new file mode 100644
index 0000000..7fa6f56
--- /dev/null
+++ b/vscode-extension/.vscodeignore
@@ -0,0 +1,5 @@
+.vscode/**
+src/**
+tsconfig.json
+node_modules/**
+*.map
diff --git a/vscode-extension/bun.lock b/vscode-extension/bun.lock
new file mode 100644
index 0000000..2f9dd21
--- /dev/null
+++ b/vscode-extension/bun.lock
@@ -0,0 +1,22 @@
+{
+  "lockfileVersion": 1,
+  "workspaces": {
+    "": {
+      "name": "shrimp",
+      "devDependencies": {
+        "@types/node": "22.x",
+        "@types/vscode": "^1.105.0",
+        "typescript": "^5.9.3",
+      },
+    },
+  },
+  "packages": {
+    "@types/node": ["@types/node@22.19.0", "", { "dependencies": { "undici-types": "~6.21.0" } }, "sha512-xpr/lmLPQEj+TUnHmR+Ab91/glhJvsqcjB+yY0Ix9GO70H6Lb4FHH5GeqdOE5btAx7eIMwuHkp4H2MSkLcqWbA=="],
+
+    "@types/vscode": ["@types/vscode@1.105.0", "", {}, "sha512-Lotk3CTFlGZN8ray4VxJE7axIyLZZETQJVWi/lYoUVQuqfRxlQhVOfoejsD2V3dVXPSbS15ov5ZyowMAzgUqcw=="],
+
+    "typescript": ["typescript@5.9.3", "", { "bin": { "tsc": "bin/tsc", "tsserver": "bin/tsserver" } }, "sha512-jl1vZzPDinLr9eUt3J/t7V6FgNEw9QjvBPdysz9KfQDD41fQrC2Y4vKQdiaUpFT4bXlb1RHhLpp8wtm6M5TgSw=="],
+
+    "undici-types": ["undici-types@6.21.0", "", {}, "sha512-iwDZqg0QAGrg9Rav5H4n0M64c3mkR59cJ6wQp+7C4nI0gsmExaedaYLNO44eT4AtBBwjbTiGPMlt2Md0T9H9JQ=="],
+  }
+}
diff --git a/vscode-extension/icon.png b/vscode-extension/icon.png
new file mode 100644
index 0000000..040c85b
Binary files /dev/null and b/vscode-extension/icon.png differ
diff --git a/vscode-extension/language-configuration.json b/vscode-extension/language-configuration.json
new file mode 100644
index 0000000..271b346
--- /dev/null
+++ b/vscode-extension/language-configuration.json
@@ -0,0 +1,24 @@
+{
+  "comments": {
+    "lineComment": {
+      "comment": "#"
+    }
+  },
+  "brackets": [
+    ["(", ")"],
+    ["[", "]"]
+  ],
+  "autoClosingPairs": [
+    { "open": "(", "close": ")" },
+    { "open": "[", "close": "]" },
+    { "open": "'", "close": "'", "notIn": ["string"] },
+    { "open": "\"", "close": "\"", "notIn": ["string"] }
+  ],
+  "surroundingPairs": [
+    ["(", ")"],
+    ["[", "]"],
+    ["'", "'"],
+    ["\"", "\""]
+  ],
+  "wordPattern": "([a-z][a-z0-9-]*)|(-?\\d+\\.?\\d*)"
+}
diff --git a/vscode-extension/package.json b/vscode-extension/package.json
new file mode 100644
index 0000000..ef82d3a
--- /dev/null
+++ b/vscode-extension/package.json
@@ -0,0 +1,47 @@
+{
+  "name": "shrimp",
+  "version": "0.0.1",
+  "main": "./dist/extension.js",
+  "devDependencies": {
+    "@types/vscode": "^1.105.0",
+    "@types/node": "22.x",
+    "typescript": "^5.9.3"
+  },
+  "categories": [
+    "Programming Languages"
+  ],
+  "contributes": {
+    "languages": [
+      {
+        "id": "shrimp",
+        "aliases": [
+          "Shrimp",
+          "shrimp"
+        ],
+        "extensions": [
+          ".sh"
+        ],
+        "configuration": "./language-configuration.json"
+      }
+    ],
+    "configurationDefaults": {
+      "[shrimp]": {
+        "editor.semanticHighlighting.enabled": true
+      }
+    }
+  },
+  "description": "Language support for Shrimp shell scripting language",
+  "displayName": "Shrimp",
+  "engines": {
+    "vscode": "^1.105.0"
+  },
+  "icon": "icon.png",
+  "publisher": "shrimp-lang",
+  "scripts": {
+    "vscode:prepublish": "bun run package",
+    "compile": "bun build src/extension.ts --outdir dist --target node --format cjs --external vscode",
+    "watch": "bun build src/extension.ts --outdir dist --target node --format cjs --external vscode --watch",
+    "package": "bun build src/extension.ts --outdir dist --target node --format cjs --external vscode --minify",
+    "check-types": "tsc --noEmit"
+  }
+}
\ No newline at end of file
diff --git a/vscode-extension/src/extension.ts b/vscode-extension/src/extension.ts
new file mode 100644
index 0000000..67dd16f
--- /dev/null
+++ b/vscode-extension/src/extension.ts
@@ -0,0 +1,30 @@
+import * as vscode from 'vscode'
+import { ShrimpSemanticTokensProvider, legend } from './semanticTokens'
+import { parser } from '../../src/parser/shrimp'
+
+// This method is called when your extension is activated
+export function activate(context: vscode.ExtensionContext) {
+  console.log('Shrimp extension is now active!')
+  console.log('Parser loaded:', typeof parser, parser)
+
+  // Test the parser
+  try {
+    const testTree = parser.parse('x = 42')
+    console.log('Parser test successful:', testTree.topNode.toString())
+  } catch (error) {
+    console.error('Parser test failed:', error)
+  }
+
+  // Register semantic tokens provider for Shrimp language
+  const provider = new ShrimpSemanticTokensProvider()
+  const selector: vscode.DocumentSelector = { language: 'shrimp', scheme: 'file' }
+
+  const disposable = vscode.languages.registerDocumentSemanticTokensProvider(selector, provider, legend)
+  console.log('Registered semantic tokens provider:', disposable)
+  context.subscriptions.push(disposable)
+
+  console.log('Legend token types:', legend.tokenTypes)
+}
+
+// This method is called when your extension is deactivated
+export function deactivate() {}
diff --git a/vscode-extension/src/semanticTokens.ts b/vscode-extension/src/semanticTokens.ts
new file mode 100644
index 0000000..02a7536
--- /dev/null
+++ b/vscode-extension/src/semanticTokens.ts
@@ -0,0 +1,118 @@
+import * as vscode from 'vscode'
+import { parser } from '../../src/parser/shrimp'
+import { Tree, SyntaxNode } from '@lezer/common'
+
+// Define the token types we'll use
+const tokenTypes = [
+  'function',
+  'variable',
+  'string',
+  'number',
+  'operator',
+  'keyword',
+  'parameter',
+  'property',
+  'regexp',
+]
+
+const tokenModifiers: string[] = []
+
+export const legend = new vscode.SemanticTokensLegend(tokenTypes, tokenModifiers)
+
+export class ShrimpSemanticTokensProvider implements vscode.DocumentSemanticTokensProvider {
+  async provideDocumentSemanticTokens(
+    document: vscode.TextDocument,
+    _token: vscode.CancellationToken
+  ): Promise<vscode.SemanticTokens> {
+    try {
+      console.log('provideDocumentSemanticTokens called for:', document.fileName)
+      const tokensBuilder = new vscode.SemanticTokensBuilder(legend)
+      const text = document.getText()
+      console.log('Document text:', text)
+      console.log('About to parse with parser:', typeof parser)
+      const tree: Tree = parser.parse(text)
+      console.log('Parsed tree:', tree.topNode.toString())
+      this.walkTree(tree.topNode, document, tokensBuilder)
+
+      const result = tokensBuilder.build()
+      console.log('Built tokens, data length:', result.data.length)
+      return result
+    } catch (error) {
+      console.error('Error in provideDocumentSemanticTokens:', error)
+      throw error
+    }
+  }
+
+  // Map Lezer node types to semantic token types
+  walkTree(node: SyntaxNode, document: vscode.TextDocument, builder: vscode.SemanticTokensBuilder) {
+    const tokenType = this.getTokenType(node.type.name)
+
+    if (tokenType !== undefined) {
+      const start = document.positionAt(node.from)
+      const length = node.to - node.from
+      builder.push(start.line, start.character, length, tokenType, 0)
+    }
+
+    // Recursively walk children
+    let child = node.firstChild
+    while (child) {
+      this.walkTree(child, document, builder)
+      child = child.nextSibling
+    }
+  }
+
+  getTokenType(nodeTypeName: string): number | undefined {
+    // Map Lezer node names to VSCode semantic token types
+    switch (nodeTypeName) {
+      case 'FunctionCall':
+      case 'FunctionDef':
+        return tokenTypes.indexOf('function')
+
+      case 'Identifier':
+      case 'AssignableIdentifier':
+      case 'FunctionCallOrIdentifier':
+        return tokenTypes.indexOf('variable')
+
+      case 'String':
+      case 'StringFragment':
+      case 'Word':
+        return tokenTypes.indexOf('string')
+
+      case 'Number':
+        return tokenTypes.indexOf('number')
+
+      case 'Plus':
+      case 'Minus':
+      case 'Star':
+      case 'Slash':
+      case 'Eq':
+      case 'EqEq':
+      case 'Neq':
+      case 'Lt':
+      case 'Lte':
+      case 'Gt':
+      case 'Gte':
+      case 'Modulo':
+      case 'And':
+      case 'Or':
+        return tokenTypes.indexOf('operator')
+
+      case 'keyword':
+      case 'Do':
+        return tokenTypes.indexOf('keyword')
+
+      case 'Params':
+      case 'NamedParam':
+        return tokenTypes.indexOf('parameter')
+
+      case 'DotGet':
+        return tokenTypes.indexOf('property')
+
+      case 'Regex':
+        return tokenTypes.indexOf('regexp')
+
+      default:
+        return undefined
+    }
+  }
+}
diff --git a/vscode-extension/tsconfig.json b/vscode-extension/tsconfig.json
new file mode 100644
index 0000000..9794d47
--- /dev/null
+++ b/vscode-extension/tsconfig.json
@@ -0,0 +1,16 @@
+{
+  "compilerOptions": {
+    "target": "ES2022",
+    "lib": ["ES2022"],
+    "module": "commonjs",
+    "moduleResolution": "node",
+    "outDir": "./dist",
+    "strict": true,
+    "esModuleInterop": true,
+    "skipLibCheck": true,
+    "forceConsistentCasingInFileNames": true,
+    "resolveJsonModule": true
+  },
+  "include": ["src/**/*"],
+  "exclude": ["node_modules", "dist"]
+}