diff --git a/packages/kilo-vscode/.vscode/launch.json b/packages/kilo-vscode/.vscode/launch.json
index 770deb864d7..6ace94a2118 100644
--- a/packages/kilo-vscode/.vscode/launch.json
+++ b/packages/kilo-vscode/.vscode/launch.json
@@ -12,6 +12,17 @@
       "args": ["--disable-extensions", "--extensionDevelopmentPath=${workspaceFolder}"],
       "outFiles": ["${workspaceFolder}/dist/**/*.js"],
       "preLaunchTask": "${defaultBuildTask}"
+    },
+    {
+      "name": "Run Extension (Local Backend)",
+      "type": "extensionHost",
+      "request": "launch",
+      "args": ["--disable-extensions", "--extensionDevelopmentPath=${workspaceFolder}"],
+      "outFiles": ["${workspaceFolder}/dist/**/*.js"],
+      "preLaunchTask": "${defaultBuildTask}",
+      "env": {
+        "KILO_API_URL": "http://localhost:3000"
+      }
     }
   ]
 }