diff --git a/.github/actions/build-vsix/action.yml b/.github/actions/build-vsix/action.yml
index 537013baea63..f2adde82f246 100644
--- a/.github/actions/build-vsix/action.yml
+++ b/.github/actions/build-vsix/action.yml
@@ -44,11 +44,7 @@ runs:
       run: npm run updateBuildNumber -- --buildNumber $GITHUB_RUN_ID
       shell: bash
 
-    - name: Update extension dependencies
-      run: npm run addExtensionDependencies
-      shell: bash
-
-    - name: Update Optional extension dependencies
+    - name: Update optional extension dependencies
       run: npm run addExtensionPackDependencies
       shell: bash
 
diff --git a/gulpfile.js b/gulpfile.js
index 478deee0cc9f..3b5717479855 100644
--- a/gulpfile.js
+++ b/gulpfile.js
@@ -77,32 +77,17 @@ gulp.task('webpack', async () => {
     await buildWebPackForDevOrProduction('./build/webpack/webpack.extension.config.js', 'extension');
 });
 
-gulp.task('addExtensionDependencies', async () => {
-    await addExtensionDependencies();
-});
-
 gulp.task('addExtensionPackDependencies', async () => {
     await buildLicense();
     await addExtensionPackDependencies();
 });
 
-async function addExtensionDependencies() {
-    // Update the package.json to add extension dependencies at build time so that
-    // extension dependencies need not be installed during development
-    const packageJsonContents = await fsExtra.readFile('package.json', 'utf-8');
-    const packageJson = JSON.parse(packageJsonContents);
-    packageJson.extensionDependencies = ['ms-toolsai.jupyter'].concat(
-        packageJson.extensionDependencies ? packageJson.extensionDependencies : [],
-    );
-    await fsExtra.writeFile('package.json', JSON.stringify(packageJson, null, 4), 'utf-8');
-}
-
 async function addExtensionPackDependencies() {
     // Update the package.json to add extension pack dependencies at build time so that
     // extension dependencies need not be installed during development
     const packageJsonContents = await fsExtra.readFile('package.json', 'utf-8');
     const packageJson = JSON.parse(packageJsonContents);
-    packageJson.extensionPack = ['ms-python.vscode-pylance'].concat(
+    packageJson.extensionPack = ['ms-toolsai.jupyter', 'ms-python.vscode-pylance'].concat(
         packageJson.extensionPack ? packageJson.extensionPack : [],
     );
     await fsExtra.writeFile('package.json', JSON.stringify(packageJson, null, 4), 'utf-8');
diff --git a/news/1 Enhancements/16102.md b/news/1 Enhancements/16102.md
new file mode 100644
index 000000000000..728d3f03fecd
--- /dev/null
+++ b/news/1 Enhancements/16102.md	
@@ -0,0 +1 @@
+Move the Jupyter extension from being a hard dependency to an optional one.
diff --git a/package.json b/package.json
index f2b88e59269a..84a49f6643f4 100644
--- a/package.json
+++ b/package.json
@@ -2075,7 +2075,6 @@
         "format-check": "prettier --check 'src/**/*.ts' 'src/**/*.tsx' 'build/**/*.js' '.github/**/*.yml' gulpfile.js",
         "format-fix": "prettier --write 'src/**/*.ts' 'src/**/*.tsx' 'build/**/*.js' '.github/**/*.yml' gulpfile.js",
         "clean": "gulp clean",
-        "addExtensionDependencies": "gulp addExtensionDependencies",
         "addExtensionPackDependencies": "gulp addExtensionPackDependencies",
         "updateBuildNumber": "gulp updateBuildNumber",
         "verifyBundle": "gulp verifyBundle",