diff --git a/install/installer/pkg/components/workspace/ide/constants.go b/install/installer/pkg/components/workspace/ide/constants.go
index 73ab24a6717681..522adb49275a8b 100644
--- a/install/installer/pkg/components/workspace/ide/constants.go
+++ b/install/installer/pkg/components/workspace/ide/constants.go
@@ -9,7 +9,7 @@ const (
 	CodeIDEImageStableVersion   = "commit-0aca4f0ecffabf641d5d79e5962fd208a04030fc" // stable version that will be updated manually on demand
 	CodeHelperIDEImage          = "ide/code-codehelper"
 	CodeWebExtensionImage       = "ide/gitpod-code-web"
-	CodeWebExtensionVersion     = "commit-1de61b5711089287b7f27bc1223c57d6d9bb3144" // gitpod-web extension version comes from https://github.com/gitpod-io/gitpod-code
+	CodeWebExtensionVersion     = "commit-49bb715b599dce2356dd02a6ede7ae8cf10d8d12" // gitpod-web extension version comes from https://github.com/gitpod-io/gitpod-code
 	CodeDesktopIDEImage         = "ide/code-desktop"
 	CodeDesktopInsidersIDEImage = "ide/code-desktop-insiders"
 	XtermIDEImage               = "ide/xterm-web"