diff --git a/README.md b/README.md
index 65a39c9..891bdf8 100644
--- a/README.md
+++ b/README.md
@@ -59,6 +59,7 @@ pytest -x -v pyls_spyder/tests
 |          LSP method           |              Spyder extensions                   |
 |:-----------------------------:|:------------------------------------------------:|
 | `textDocument/documentSymbol` | Find code cells `# %%` and block comments `# --` |
+| `textDocument/foldingRange`   | Return code cells `# %%` as code folding regions |
 
 ## Plugin configuration options
 This plugin can be configured by using the key `pyls_spyder` when calling `workspace/didChangeConfiguration` on the pyls. Each configuration option is described below:
diff --git a/pyls_spyder/plugin.py b/pyls_spyder/plugin.py
index e01c1c9..51b4532 100644
--- a/pyls_spyder/plugin.py
+++ b/pyls_spyder/plugin.py
@@ -79,6 +79,13 @@ def create_symbol(name: str, document: Document,
         }
 
 
+def create_fold_region(start_line: int, end_line: int):
+    return {
+        'startLine': start_line,
+        'endLine': end_line,
+    }
+
+
 @hookimpl
 def pyls_document_symbols(config: Config,
                           workspace: Workspace,
@@ -140,3 +147,34 @@ def pyls_document_symbols(config: Config,
     spyder_symbols = sorted(
         spyder_symbols, key=lambda x: x['location']['range']['start']['line'])
     return spyder_symbols
+
+
+@hookimpl
+def pyls_folding_range(
+        config: Config,
+        workspace: Workspace,
+        document: Document) -> List[Dict]:
+    lines = document.lines
+    cell_stack = []
+    cells = []
+    for line_num, line in enumerate(lines):
+        cell_rule, cell_match = CELL_REGEX.match(line)
+        if cell_match is not None:
+            percentages = cell_match.group(1)
+            current_line, current_level, _ = peek_symbol(cell_stack)
+            if cell_rule != CELL_PERCENTAGE:
+                cell_level = current_level + 1
+            else:
+                cell_level = len(percentages) - 1
+            if cell_level > current_level:
+                cell_stack.insert(0, (line_num, cell_level, ''))
+            else:
+                while current_level >= cell_level:
+                    cell_stack.pop(0)
+                    cells.append(create_fold_region(current_line, line_num))
+                    current_line, current_level, _ = peek_symbol(cell_stack)
+                cell_stack.insert(0, (line_num, cell_level, ''))
+    for line, _, name in cell_stack:
+        cells.append(create_fold_region(line, line_num + 1))
+    cells = sorted(cells, key=lambda x: x['startLine'])
+    return cells
diff --git a/pyls_spyder/tests/test_plugin.py b/pyls_spyder/tests/test_plugin.py
index 8a8adc1..d8cf321 100644
--- a/pyls_spyder/tests/test_plugin.py
+++ b/pyls_spyder/tests/test_plugin.py
@@ -17,7 +17,7 @@
 from unittest.mock import MagicMock
 
 # Local imports
-from pyls_spyder.plugin import pyls_document_symbols
+from pyls_spyder.plugin import pyls_document_symbols, pyls_folding_range
 
 
 DOC_URI = uris.from_fs_path(__file__)
@@ -143,3 +143,23 @@ def test_disable_block_comments(config, workspace):
         kind = symbol['kind']
         test_results.append((name, start, end, kind))
     assert expected == test_results
+
+
+def test_cell_folding_regions(config, workspace):
+    document = Document(DOC_URI, workspace, DOC)
+    regions = pyls_folding_range(config, workspace, document)
+    expected = [
+        (1, 23),
+        (6, 10),
+        (10, 15),
+        (12, 15),
+        (15, 23),
+        (20, 23),
+        (23, 25)
+    ]
+    test_results = []
+    for region in regions:
+        start = region['startLine']
+        end = region['endLine']
+        test_results.append((start, end))
+    assert expected == test_results
diff --git a/setup.py b/setup.py
index 9db690e..7b4a839 100644
--- a/setup.py
+++ b/setup.py
@@ -38,7 +38,7 @@ def get_description():
     return data
 
 
-REQUIREMENTS = ['python-language-server']
+REQUIREMENTS = ['python-language-server >= 0.36.2']
 
 setup(
     name='pyls-spyder',