diff --git a/docs/Test-Setup.md b/docs/Test-Setup.md
index ef4f36516..aa8bfaa1b 100644
--- a/docs/Test-Setup.md
+++ b/docs/Test-Setup.md
@@ -82,6 +82,7 @@ Options:
   -s, --storage <storage>                      # Use this folder for all test resources
   -e, --extensions_dir <extensions_directory>  # VS Code will use this directory for managing extensions
   -t, --type <type>                            # Type of VS Code release (stable/insider)
+  -p, --pre_release                            # Installs the pre-release version of the extension
   -h, --help                                   # display help for command
 ```
 
diff --git a/packages/extester/src/cli.ts b/packages/extester/src/cli.ts
index eed22285d..6c68ddff9 100644
--- a/packages/extester/src/cli.ts
+++ b/packages/extester/src/cli.ts
@@ -78,13 +78,14 @@ program
 	.option('-s, --storage <storage>', 'Use this folder for all test resources')
 	.option('-e, --extensions_dir <extensions_directory>', 'VS Code will use this directory for managing extensions')
 	.option('-t, --type <type>', 'Type of VS Code release (stable/insider)')
+	.option('-p, --pre_release', 'Installs the pre-release version of the extension')
 	.action(
 		withErrors(async (id, ids, cmd) => {
 			const extest = new ExTester(cmd.storage, codeStream(cmd.type), cmd.extensions_dir);
-			await extest.installFromMarketplace(id);
+			await extest.installFromMarketplace(id, cmd.pre_release);
 			if (ids && ids.length > 0) {
 				for (const idx of ids) {
-					await extest.installFromMarketplace(idx);
+					await extest.installFromMarketplace(idx, cmd.pre_release);
 				}
 			}
 		}),
diff --git a/packages/extester/src/extester.ts b/packages/extester/src/extester.ts
index db2023371..588625543 100644
--- a/packages/extester/src/extester.ts
+++ b/packages/extester/src/extester.ts
@@ -127,8 +127,8 @@ export class ExTester {
 	 * Install an extension from VS Code marketplace into the test instance
 	 * @param id id of the extension to install
 	 */
-	async installFromMarketplace(id: string): Promise<void> {
-		return this.code.installExtension(undefined, id);
+	async installFromMarketplace(id: string, preRelease?: boolean): Promise<void> {
+		return this.code.installExtension(undefined, id, preRelease);
 	}
 
 	/**
diff --git a/packages/extester/src/util/codeUtil.ts b/packages/extester/src/util/codeUtil.ts
index 4c1060cfb..149bc4d06 100644
--- a/packages/extester/src/util/codeUtil.ts
+++ b/packages/extester/src/util/codeUtil.ts
@@ -154,10 +154,10 @@ export class CodeUtil {
 	/**
 	 * Install your extension into the test instance of VS Code
 	 */
-	installExtension(vsix?: string, id?: string): void {
+	installExtension(vsix?: string, id?: string, preRelease?: boolean): void {
 		const pjson = require(path.resolve('package.json'));
 		if (id) {
-			return this.installExt(id);
+			return this.installExt(id, preRelease);
 		}
 		const vsixPath = path.resolve(vsix ? vsix : `${pjson.name}-${pjson.version}.vsix`);
 		this.installExt(vsixPath);
@@ -186,8 +186,11 @@ export class CodeUtil {
 		}
 	}
 
-	private installExt(pathOrID: string): void {
+	private installExt(pathOrID: string, preRelease?: boolean): void {
 		let command = `${this.getCliInitCommand()} --force --install-extension "${pathOrID}"`;
+		if (preRelease) {
+			command += ' --pre-release';
+		}
 		if (this.extensionsFolder) {
 			command += ` --extensions-dir=${this.extensionsFolder}`;
 		}