diff --git a/examples/vue-and-svelte-language-server/src/index.ts b/examples/vue-and-svelte-language-server/src/index.ts
index db5d95f06..a7310ba22 100644
--- a/examples/vue-and-svelte-language-server/src/index.ts
+++ b/examples/vue-and-svelte-language-server/src/index.ts
@@ -28,7 +28,6 @@ const plugin: LanguageServerPlugin<LanguageServerInitializationOptions, vue.Lang
 					host.getCurrentDirectory(),
 					host.getCompilationSettings(),
 					host.getVueCompilationSettings(),
-					['.vue'],
 				);
 				return [
 					vueLanguageModule,
diff --git a/extensions/vscode-vue-language-features/README.md b/extensions/vscode-vue-language-features/README.md
index 4e20da5ad..438b5623a 100644
--- a/extensions/vscode-vue-language-features/README.md
+++ b/extensions/vscode-vue-language-features/README.md
@@ -158,6 +158,24 @@ defineProps<Props>()
 </script>
 ```
 
+### Custom File Extensions
+
+Syntax highlighting and intellisense can be applied to additional file extensions beyond just `vue`. This will need to be configured in three different places for full support.
+
+In VS Code settings for the Volar extension add any additional extensions you need to `Additional Extensions`. Such as `ext`.
+
+In your tsconfig.json file you will need to make sure your custom extension is included by TypeScript. If you have an include value for `./src/*.vue` then you would want to add an include for `./src/*.ext` as well.
+
+```json
+"include": [
+  "./src/*.ts",
+  "./src/*.vue",
+  "./src/*.ext",
+]
+```
+
+Finally you need to make VS Code recognize your new extension and automatically associate it with the Vue language format. To do this you need to configure your File Associations setting to map `*.ext` to the language value `vue`. This can be done under Text Editor &gt; Files, or with the key `files.associations`.
+
 ## Sponsors
 
 <!-- <p align="center">
diff --git a/extensions/vscode-vue-language-features/package.json b/extensions/vscode-vue-language-features/package.json
index 9e70bca3a..1277ac95b 100644
--- a/extensions/vscode-vue-language-features/package.json
+++ b/extensions/vscode-vue-language-features/package.json
@@ -319,6 +319,14 @@
 					"default": false,
 					"description": "Ignore project references settings of tsconfig in language server for resolve issue #1916."
 				},
+				"volar.vueserver.additionalExtensions": {
+					"type":"array",
+					"items": {
+						"type": "string"
+					},
+					"default": [],
+					"description": "List any additional file extensions that should be processed as Vue files (requires restart)."
+				},
 				"volar.codeLens.references": {
 					"type": "boolean",
 					"default": true,
diff --git a/extensions/vscode-vue-language-features/src/common.ts b/extensions/vscode-vue-language-features/src/common.ts
index 9823f0baf..e2bebf2f1 100644
--- a/extensions/vscode-vue-language-features/src/common.ts
+++ b/extensions/vscode-vue-language-features/src/common.ts
@@ -66,6 +66,7 @@ async function doActivate(context: vscode.ExtensionContext, createLc: CreateLang
 	vscode.commands.executeCommand('setContext', 'volar.activated', true);
 
 	const _serverMaxOldSpaceSize = serverMaxOldSpaceSize();
+	const _additionalExtensions = additionalExtensions();
 
 	[semanticClient, syntacticClient] = await Promise.all([
 		createLc(
@@ -122,8 +123,10 @@ async function doActivate(context: vscode.ExtensionContext, createLc: CreateLang
 	}
 	function registerServerMaxOldSpaceSizeChange() {
 		vscode.workspace.onDidChangeConfiguration(async () => {
-			const nowServerMaxOldSpaceSize = serverMaxOldSpaceSize();
-			if (_serverMaxOldSpaceSize !== nowServerMaxOldSpaceSize) {
+			if (
+				_serverMaxOldSpaceSize !== serverMaxOldSpaceSize()
+				|| _additionalExtensions.join(',') !== additionalExtensions().join(',')
+			) {
 				return requestReloadVscode();
 			}
 		});
@@ -202,6 +205,10 @@ export function noProjectReferences() {
 	return !!vscode.workspace.getConfiguration('volar').get<boolean>('vueserver.noProjectReferences');
 }
 
+function additionalExtensions() {
+	return vscode.workspace.getConfiguration('volar').get<string[]>('vueserver.additionalExtensions') ?? [];
+}
+
 function getFillInitializeParams(featuresKinds: LanguageFeaturesKind[]) {
 	return function (params: lsp.InitializeParams) {
 
@@ -269,6 +276,7 @@ function getInitializationOptions(
 			processMdFile: processMd(),
 		},
 		noProjectReferences: noProjectReferences(),
+		additionalExtensions: additionalExtensions()
 	};
 	return initializationOptions;
 }
diff --git a/extensions/vscode-vue-language-features/src/nodeClientMain.ts b/extensions/vscode-vue-language-features/src/nodeClientMain.ts
index 032898787..4d70d3521 100644
--- a/extensions/vscode-vue-language-features/src/nodeClientMain.ts
+++ b/extensions/vscode-vue-language-features/src/nodeClientMain.ts
@@ -42,6 +42,7 @@ export function activate(context: vscode.ExtensionContext) {
 			}
 		}
 
+		const additionalExtensions = initOptions.additionalExtensions?.map(ext => `,**/*.${ext}`).join('') ?? '';
 		const serverModule = vscode.Uri.joinPath(context.extensionUri, 'server.js');
 		const maxOldSpaceSize = vscode.workspace.getConfiguration('volar').get<number | null>('vueserver.maxOldSpaceSize');
 		const runOptions = { execArgv: <string[]>[] };
@@ -67,7 +68,7 @@ export function activate(context: vscode.ExtensionContext) {
 			initializationOptions: initOptions,
 			progressOnInitialization: true,
 			synchronize: {
-				fileEvents: vscode.workspace.createFileSystemWatcher(`{**/*.vue,${processMd() ? '**/*.md,' : ''}${processHtml() ? '**/*.html,' : ''}**/*.js,**/*.ts,**/*.cjs,**/*.cts,**/*.mjs,**/*.mts,**/*.jsx,**/*.tsx,**/*.json}`)
+				fileEvents: vscode.workspace.createFileSystemWatcher(`{**/*.vue,${processMd() ? '**/*.md,' : ''}${processHtml() ? '**/*.html,' : ''}**/*.js,**/*.ts,**/*.cjs,**/*.cts,**/*.mjs,**/*.mts,**/*.jsx,**/*.tsx,**/*.json${additionalExtensions}}`)
 			},
 		};
 		const client = new _LanguageClient(
diff --git a/vue-language-tools/vue-component-meta/src/index.ts b/vue-language-tools/vue-component-meta/src/index.ts
index 551d96838..aa5af07d3 100644
--- a/vue-language-tools/vue-component-meta/src/index.ts
+++ b/vue-language-tools/vue-component-meta/src/index.ts
@@ -173,7 +173,6 @@ export function baseCreate(
 		host.getCurrentDirectory(),
 		host.getCompilationSettings(),
 		host.getVueCompilationSettings(),
-		['.vue']
 	);
 	const core = embedded.createEmbeddedLanguageServiceHost(host, [vueLanguageModule]);
 	const proxyApis: Partial<ts.LanguageServiceHost> = checkerOptions.forceUseTs ? {
diff --git a/vue-language-tools/vue-language-core/schemas/vue-tsconfig.schema.json b/vue-language-tools/vue-language-core/schemas/vue-tsconfig.schema.json
index e8b10b222..470febdc1 100644
--- a/vue-language-tools/vue-language-core/schemas/vue-tsconfig.schema.json
+++ b/vue-language-tools/vue-language-core/schemas/vue-tsconfig.schema.json
@@ -17,6 +17,11 @@
 					],
 					"markdownDescription": "Target version of Vue."
 				},
+				"extensions": {
+					"type": "array",
+					"default": [ ".vue" ],
+					"markdownDescription": "Valid file extensions that should be considered as regular Vue SFC, please note that you should not use this option separately for additional file extensions IDE support, see https://github.com/johnsoncodehk/volar/tree/master/extensions/vscode-vue-language-features/README.md#custom-file-extensions."
+				},
 				"jsxTemplates": {
 					"type": "boolean",
 					"default": false,
diff --git a/vue-language-tools/vue-language-core/src/languageModule.ts b/vue-language-tools/vue-language-core/src/languageModule.ts
index 5ca612969..d253c7923 100644
--- a/vue-language-tools/vue-language-core/src/languageModule.ts
+++ b/vue-language-tools/vue-language-core/src/languageModule.ts
@@ -11,10 +11,10 @@ export function createLanguageModule(
 	rootDir: string,
 	compilerOptions: ts.CompilerOptions,
 	_vueCompilerOptions: VueCompilerOptions,
-	exts: string[],
 	extraPlugins: VueLanguagePlugin[] = [],
 ): embedded.LanguageModule {
 
+	const vueCompilerOptions = resolveVueCompilerOptions(_vueCompilerOptions);
 	const vueLanguagePlugin = getDefaultVueLanguagePlugins(
 		ts,
 		rootDir,
@@ -28,18 +28,17 @@ export function createLanguageModule(
 		(ts as any).__VLS_pitched_resolveModuleNames = true;
 		const resolveModuleNames = ts.resolveModuleName;
 		ts.resolveModuleName = (...args) => {
-			if (args[6] === ts.ModuleKind.ESNext && exts.some(ext => args[0].endsWith(ext))) {
+			if (args[6] === ts.ModuleKind.ESNext && vueCompilerOptions.extensions.some(ext => args[0].endsWith(ext))) {
 				args[6] = ts.ModuleKind.CommonJS;
 			}
 			return resolveModuleNames(...args);
 		};
 	}
 
-	const vueCompilerOptions = resolveVueCompilerOptions(_vueCompilerOptions);
 	const sharedTypesSnapshot = ts.ScriptSnapshot.fromString(localTypes.getTypesCode(vueCompilerOptions.target, vueCompilerOptions));
 	const languageModule: embedded.LanguageModule = {
 		createSourceFile(fileName, snapshot) {
-			if (exts.some(ext => fileName.endsWith(ext))) {
+			if (vueCompilerOptions.extensions.some(ext => fileName.endsWith(ext))) {
 				return new VueSourceFile(fileName, snapshot, ts, vueLanguagePlugin);
 			}
 		},
@@ -100,7 +99,7 @@ export function createLanguageModule(
 	return languageModule;
 
 	function getSharedTypesFiles(fileNames: string[]) {
-		const moduleFiles = fileNames.filter(fileName => exts.some(ext => fileName.endsWith(ext)));
+		const moduleFiles = fileNames.filter(fileName => vueCompilerOptions.extensions.some(ext => fileName.endsWith(ext)));
 		const moduleFileDirs = [...new Set(moduleFiles.map(path.dirname))];
 		return moduleFileDirs.map(dir => path.join(dir, localTypes.typesFileName));
 	}
diff --git a/vue-language-tools/vue-language-core/src/plugins/file-vue.ts b/vue-language-tools/vue-language-core/src/plugins/file-vue.ts
index 217e9f00b..7e1f6ce0d 100644
--- a/vue-language-tools/vue-language-core/src/plugins/file-vue.ts
+++ b/vue-language-tools/vue-language-core/src/plugins/file-vue.ts
@@ -8,7 +8,7 @@ const plugin: VueLanguagePlugin = (ctx) => {
 		version: 1,
 
 		parseSFC(fileName, content) {
-			if (fileName.endsWith('.vue')) {
+			if (ctx.vueCompilerOptions.extensions.some(ext => fileName.endsWith(ext))) {
 				return parse(content);
 			}
 		},
diff --git a/vue-language-tools/vue-language-core/src/types.ts b/vue-language-tools/vue-language-core/src/types.ts
index 4becdeb35..db8cdcf64 100644
--- a/vue-language-tools/vue-language-core/src/types.ts
+++ b/vue-language-tools/vue-language-core/src/types.ts
@@ -15,6 +15,7 @@ export type VueCompilerOptions = Partial<ResolvedVueCompilerOptions>;
 
 export interface ResolvedVueCompilerOptions {
 	target: 2 | 2.7 | 3;
+	extensions: string[];
 	jsxTemplates: boolean;
 	strictTemplates: boolean;
 	skipTemplateCodegen: boolean;
diff --git a/vue-language-tools/vue-language-core/src/utils/ts.ts b/vue-language-tools/vue-language-core/src/utils/ts.ts
index dec682798..ddfc68034 100644
--- a/vue-language-tools/vue-language-core/src/utils/ts.ts
+++ b/vue-language-tools/vue-language-core/src/utils/ts.ts
@@ -89,6 +89,7 @@ export function resolveVueCompilerOptions(vueOptions: VueCompilerOptions): Resol
 		...vueOptions,
 
 		target,
+		extensions: vueOptions.extensions ?? ['.vue'],
 		jsxTemplates: vueOptions.jsxTemplates ?? false,
 		strictTemplates: vueOptions.strictTemplates ?? false,
 		skipTemplateCodegen: vueOptions.skipTemplateCodegen ?? false,
diff --git a/vue-language-tools/vue-language-server/src/languageServerPlugin.ts b/vue-language-tools/vue-language-server/src/languageServerPlugin.ts
index f44452a09..f69e497dd 100644
--- a/vue-language-tools/vue-language-server/src/languageServerPlugin.ts
+++ b/vue-language-tools/vue-language-server/src/languageServerPlugin.ts
@@ -21,7 +21,11 @@ const plugin: LanguageServerPlugin<VueServerInitializationOptions, vue.LanguageS
 		extraFileExtensions.push({ extension: 'md', isMixedContent: true, scriptKind: 7 });
 	}
 
-	const exts = extraFileExtensions.map(ext => '.' + ext.extension);
+	if (initOptions.additionalExtensions) {
+		for (const additionalExtension of initOptions.additionalExtensions) {
+			extraFileExtensions.push({ extension: additionalExtension, isMixedContent: true, scriptKind: 7 });
+		}
+	}
 
 	return {
 		extraFileExtensions,
@@ -32,6 +36,7 @@ const plugin: LanguageServerPlugin<VueServerInitializationOptions, vue.LanguageS
 				if (typeof tsConfig === 'string') {
 					vueOptions = vue2.createParsedCommandLine(ts, sys, tsConfig, []).vueOptions;
 				}
+				vueOptions.extensions = getVueExts(vueOptions.extensions ?? ['.vue']);
 				return {
 					...host,
 					getVueCompilationSettings: () => vueOptions,
@@ -43,7 +48,6 @@ const plugin: LanguageServerPlugin<VueServerInitializationOptions, vue.LanguageS
 					host.getCurrentDirectory(),
 					host.getCompilationSettings(),
 					host.getVueCompilationSettings(),
-					exts,
 				);
 				return [vueLanguageModule];
 			},
@@ -94,9 +98,10 @@ const plugin: LanguageServerPlugin<VueServerInitializationOptions, vue.LanguageS
 		syntacticService: {
 			getLanguageModules(ts, env) {
 				const vueLanguagePlugins = vue2.getDefaultVueLanguagePlugins(ts, shared.getPathOfUri(env.rootUri.toString()), {}, {}, []);
+				const vueExts = getVueExts(['.vue']);
 				const vueLanguageModule: embedded.LanguageModule = {
 					createSourceFile(fileName, snapshot) {
-						if (exts.some(ext => fileName.endsWith(ext))) {
+						if (vueExts.some(ext => fileName.endsWith(ext))) {
 							return new vue2.VueSourceFile(fileName, snapshot, ts, vueLanguagePlugins);
 						}
 					},
@@ -116,6 +121,13 @@ const plugin: LanguageServerPlugin<VueServerInitializationOptions, vue.LanguageS
 			},
 		},
 	};
+
+	function getVueExts(baseExts: string[]) {
+		return [
+			...baseExts,
+			...initOptions.additionalExtensions?.map(ext => '.' + ext) ?? [],
+		];
+	}
 };
 
 export = plugin;
diff --git a/vue-language-tools/vue-language-server/src/types.ts b/vue-language-tools/vue-language-server/src/types.ts
index 686891a63..8e1c0ad09 100644
--- a/vue-language-tools/vue-language-server/src/types.ts
+++ b/vue-language-tools/vue-language-server/src/types.ts
@@ -7,4 +7,8 @@ export type VueServerInitializationOptions = LanguageServerInitializationOptions
 	vitePress?: {
 		processMdFile: boolean,
 	},
+	/**
+	 * @example ['vue1', 'vue2']
+	 */
+	additionalExtensions?: string[],
 };
diff --git a/vue-language-tools/vue-language-service/src/documentService.ts b/vue-language-tools/vue-language-service/src/documentService.ts
index 17d21f630..2f78cc898 100644
--- a/vue-language-tools/vue-language-service/src/documentService.ts
+++ b/vue-language-tools/vue-language-service/src/documentService.ts
@@ -52,7 +52,6 @@ export function createDocumentService(
 		env.rootUri.fsPath,
 		{},
 		{},
-		['.vue'],
 	);
 	const languageServiceContext = embeddedLS.createDocumentServiceContext({
 		ts,
diff --git a/vue-language-tools/vue-language-service/src/languageService.ts b/vue-language-tools/vue-language-service/src/languageService.ts
index 54ce33718..f191372eb 100644
--- a/vue-language-tools/vue-language-service/src/languageService.ts
+++ b/vue-language-tools/vue-language-service/src/languageService.ts
@@ -130,7 +130,6 @@ export function createLanguageService(
 		host.getCurrentDirectory(),
 		host.getCompilationSettings(),
 		host.getVueCompilationSettings(),
-		['.vue'],
 	);
 	const core = embedded.createEmbeddedLanguageServiceHost(host, [vueLanguageModule]);
 	const languageServiceContext = embeddedLS.createLanguageServiceContext({
diff --git a/vue-language-tools/vue-language-service/src/plugins/vue-template.ts b/vue-language-tools/vue-language-service/src/plugins/vue-template.ts
index f2ee88e6a..14af7f514 100644
--- a/vue-language-tools/vue-language-service/src/plugins/vue-template.ts
+++ b/vue-language-tools/vue-language-service/src/plugins/vue-template.ts
@@ -454,7 +454,9 @@ export default function useVueTemplateLanguagePlugin<T extends ReturnType<typeof
 					if (enabledComponentAutoImport && (descriptor.script || descriptor.scriptSetup)) {
 						for (const vueDocument of options.context.documents.getAll()) {
 							let baseName = path.basename(vueDocument.uri);
-							baseName = baseName.substring(0, baseName.length - '.vue'.length);
+							if (baseName.lastIndexOf('.') !== -1) {
+								baseName = baseName.substring(0, baseName.lastIndexOf('.'));
+							}
 							if (baseName.toLowerCase() === 'index') {
 								baseName = path.basename(path.dirname(vueDocument.uri));
 							}
diff --git a/vue-language-tools/vue-typescript/src/index.ts b/vue-language-tools/vue-typescript/src/index.ts
index b153c533d..7b0bd72e2 100644
--- a/vue-language-tools/vue-typescript/src/index.ts
+++ b/vue-language-tools/vue-typescript/src/index.ts
@@ -7,7 +7,6 @@ export function createLanguageService(host: vue.LanguageServiceHost) {
 		host.getCurrentDirectory(),
 		host.getCompilationSettings(),
 		host.getVueCompilationSettings(),
-		['.vue']
 	)];
 	return base.createLanguageService(host, mods);
 }