diff --git a/packages/api/src/extension-development-folders-info.ts b/packages/api/src/extension-development-folders-info.ts
new file mode 100644
index 00000000000..35bfe1513a6
--- /dev/null
+++ b/packages/api/src/extension-development-folders-info.ts
@@ -0,0 +1,26 @@
+/**********************************************************************
+ * Copyright (C) 2025 Red Hat, Inc.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ *
+ * SPDX-License-Identifier: Apache-2.0
+ ***********************************************************************/
+
+export interface ExtensionDevelopmentFolderInfo {
+  path: string;
+}
+
+export enum ExtensionDevelopmentFolderInfoSettings {
+  SectionName = 'extensions',
+  DevelopmentExtensionsFolders = 'developmentExtensionsFolders',
+}
diff --git a/packages/main/src/plugin/extension/extension-development-folders.spec.ts b/packages/main/src/plugin/extension/extension-development-folders.spec.ts
new file mode 100644
index 00000000000..ac9e4c6f84a
--- /dev/null
+++ b/packages/main/src/plugin/extension/extension-development-folders.spec.ts
@@ -0,0 +1,275 @@
+/**********************************************************************
+ * Copyright (C) 2025 Red Hat, Inc.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ *
+ * SPDX-License-Identifier: Apache-2.0
+ ***********************************************************************/
+import type { Configuration } from '@podman-desktop/api';
+import { beforeEach, describe, expect, test, vi } from 'vitest';
+
+import { ExtensionDevelopmentFolderInfoSettings } from '/@api/extension-development-folders-info.js';
+
+import type { ApiSenderType } from '../api.js';
+import type { ConfigurationRegistry } from '../configuration-registry.js';
+import { ExtensionDevelopmentFolders } from './extension-development-folders.js';
+import type { AnalyzedExtension, ExtensionLoader } from './extension-loader.js';
+
+const configurationRegistry = {
+  registerConfigurations: vi.fn(),
+  getConfiguration: vi.fn(),
+  onDidChangeConfiguration: vi.fn(),
+  onDidUpdateConfiguration: vi.fn(),
+} as unknown as ConfigurationRegistry;
+
+const apiSender = {
+  send: vi.fn(),
+} as unknown as ApiSenderType;
+
+const extensionLoader = {
+  analyzeExtension: vi.fn(),
+  loadExtension: vi.fn(),
+} as unknown as ExtensionLoader;
+
+class TestExtensionDevelopmentFolders extends ExtensionDevelopmentFolders {
+  override refreshFolders(): void {
+    super.refreshFolders();
+  }
+
+  override saveToConfiguration(): Promise<void> {
+    return super.saveToConfiguration();
+  }
+}
+
+let extensionDevelopmentFolders: TestExtensionDevelopmentFolders;
+beforeEach(() => {
+  vi.restoreAllMocks();
+  vi.resetAllMocks();
+
+  extensionDevelopmentFolders = new TestExtensionDevelopmentFolders(configurationRegistry, apiSender);
+});
+
+test('init', async () => {
+  // mock refreshFolders method
+  const refreshFoldersSpy = vi.spyOn(extensionDevelopmentFolders, 'refreshFolders');
+  refreshFoldersSpy.mockReturnValue();
+
+  // call init method
+  extensionDevelopmentFolders.init();
+
+  // check we called the onDidChangeConfiguration method
+  expect(configurationRegistry.onDidChangeConfiguration).toBeCalled();
+
+  // check we called the refreshFolders method
+  expect(refreshFoldersSpy).toBeCalled();
+
+  // now check that if we call onDidChangeConfiguration callback it will call refreshFolders method
+  const onDidChangeConfigurationCallback = vi.mocked(configurationRegistry.onDidChangeConfiguration).mock.calls[0]?.[0];
+  expect(onDidChangeConfigurationCallback).toBeDefined();
+  refreshFoldersSpy.mockClear();
+  // send dummy event
+  onDidChangeConfigurationCallback?.({ key: 'fooEvent', value: 'fooValue', scope: 'DEFAULT' });
+  // should not trigger a refresh
+  expect(refreshFoldersSpy).not.toBeCalled();
+  // now send the expected property
+  onDidChangeConfigurationCallback?.({
+    key: `${ExtensionDevelopmentFolderInfoSettings.SectionName}.${ExtensionDevelopmentFolderInfoSettings.DevelopmentExtensionsFolders}`,
+    value: `['foo', 'bar']`,
+    scope: 'DEFAULT',
+  });
+  // and check that the refresh was called
+  expect(refreshFoldersSpy).toBeCalled();
+
+  // check registerConfigurations method
+  expect(configurationRegistry.registerConfigurations).toBeCalled();
+  const configuration = vi.mocked(configurationRegistry.registerConfigurations).mock.calls[0]?.[0];
+  expect(configuration?.[0]).toBeDefined();
+  expect(configuration?.[0]?.id).toBe('preferences.extensions');
+  expect(configuration?.[0]?.title).toBe('Extensions');
+  expect(configuration?.[0]?.type).toBe('object');
+  expect(configuration?.[0]?.properties).toBeDefined();
+  const properties = configuration?.[0]?.properties;
+  expect(properties).toHaveProperty(
+    `${ExtensionDevelopmentFolderInfoSettings.SectionName}.${ExtensionDevelopmentFolderInfoSettings.DevelopmentExtensionsFolders}`,
+  );
+  const property =
+    properties?.[
+      `${ExtensionDevelopmentFolderInfoSettings.SectionName}.${ExtensionDevelopmentFolderInfoSettings.DevelopmentExtensionsFolders}`
+    ];
+  expect(property).toHaveProperty('description', 'List of extension folders to monitor');
+  expect(property).toHaveProperty('type', 'array');
+  expect(property).toHaveProperty('default', []);
+  expect(property).toHaveProperty('hidden', true);
+});
+
+test('refreshFolders', async () => {
+  // mock an empty value first
+  vi.mocked(configurationRegistry.getConfiguration).mockReturnValueOnce({
+    get: vi.fn(() => []),
+  } as unknown as Configuration);
+
+  const callbackOnDidUpdateDevelopmentFolders = vi.fn();
+  extensionDevelopmentFolders.onDidUpdateDevelopmentFolders(callbackOnDidUpdateDevelopmentFolders);
+  // call init
+  extensionDevelopmentFolders.init();
+
+  // check that the callback was called as it is first start
+  expect(callbackOnDidUpdateDevelopmentFolders).toBeCalledWith([]);
+
+  // grab the value
+  expect(extensionDevelopmentFolders.getDevelopmentFolders()).toHaveLength(0);
+
+  // now return 2 values
+  vi.mocked(configurationRegistry.getConfiguration).mockReturnValueOnce({
+    get: vi.fn(() => ['foo', 'bar']),
+  } as unknown as Configuration);
+
+  // call refresh
+  extensionDevelopmentFolders.refreshFolders();
+
+  // check that the callback was called as value has changed
+  expect(callbackOnDidUpdateDevelopmentFolders).toBeCalledWith([{ path: 'foo' }, { path: 'bar' }]);
+
+  // grab the value
+  expect(extensionDevelopmentFolders.getDevelopmentFolders()).toHaveLength(2);
+  // check the values
+  expect(extensionDevelopmentFolders.getDevelopmentFolders()).toStrictEqual([{ path: 'foo' }, { path: 'bar' }]);
+
+  // now return the same value
+  vi.mocked(configurationRegistry.getConfiguration).mockReturnValueOnce({
+    get: vi.fn(() => ['foo', 'bar']),
+  } as unknown as Configuration);
+  callbackOnDidUpdateDevelopmentFolders.mockClear();
+
+  // call refresh
+  extensionDevelopmentFolders.refreshFolders();
+
+  // value should be the same
+  expect(extensionDevelopmentFolders.getDevelopmentFolders()).toHaveLength(2);
+  // check the values
+  expect(extensionDevelopmentFolders.getDevelopmentFolders()).toStrictEqual([{ path: 'foo' }, { path: 'bar' }]);
+
+  // no callback should be called
+  expect(callbackOnDidUpdateDevelopmentFolders).not.toBeCalled();
+});
+
+test('saveToConfiguration', async () => {
+  // mock update function
+  vi.mocked(configurationRegistry.getConfiguration).mockReturnValue({
+    get: vi.fn(() => ['foo', 'bar']),
+    update: vi.fn(),
+  } as unknown as Configuration);
+
+  // init the values
+  extensionDevelopmentFolders.init();
+
+  // call the method
+  await extensionDevelopmentFolders.saveToConfiguration();
+
+  // expect to have called the update method
+  expect(configurationRegistry.getConfiguration().update).toBeCalledWith(
+    ExtensionDevelopmentFolderInfoSettings.DevelopmentExtensionsFolders,
+    ['foo', 'bar'],
+  );
+
+  // expect apiSender be called
+  expect(apiSender.send).toBeCalledWith('extensions-development-folders-changed');
+});
+
+test('removeDevelopmentFolder', async () => {
+  // mock saveToConfiguration method
+  const saveToConfigurationSpy = vi.spyOn(extensionDevelopmentFolders, 'saveToConfiguration');
+  saveToConfigurationSpy.mockResolvedValue();
+
+  // mock config with 2 values
+  vi.mocked(configurationRegistry.getConfiguration).mockReturnValue({
+    get: vi.fn(() => ['foo', 'bar']),
+  } as unknown as Configuration);
+
+  const callbackOnDidUpdateDevelopmentFolders = vi.fn();
+  extensionDevelopmentFolders.onDidUpdateDevelopmentFolders(callbackOnDidUpdateDevelopmentFolders);
+
+  // init the values
+  extensionDevelopmentFolders.init();
+
+  // call the method
+  await extensionDevelopmentFolders.removeDevelopmentFolder('bar');
+
+  // expect to have called the update method
+  expect(saveToConfigurationSpy).toBeCalled();
+
+  // expect callback to be called with only foo as bar was removed
+  expect(callbackOnDidUpdateDevelopmentFolders).toBeCalledWith([{ path: 'foo' }]);
+});
+
+describe('addDevelopmentFolder', () => {
+  test('no extension loader', async () => {
+    await expect(extensionDevelopmentFolders.addDevelopmentFolder('foo')).rejects.toThrow(
+      'No extension loader available',
+    );
+  });
+
+  test('check path already exists', async () => {
+    // mock config with 2 values
+    vi.mocked(configurationRegistry.getConfiguration).mockReturnValue({
+      get: vi.fn(() => ['foo', 'bar']),
+    } as unknown as Configuration);
+
+    // set loader
+    extensionDevelopmentFolders.setExtensionLoader(extensionLoader);
+
+    // init the values
+    extensionDevelopmentFolders.init();
+
+    await expect(extensionDevelopmentFolders.addDevelopmentFolder('foo')).rejects.toThrow(
+      'Path foo already exist in the list',
+    );
+  });
+
+  test('check error analyzing the extension', async () => {
+    vi.mocked(extensionLoader.analyzeExtension).mockResolvedValue({
+      error: 'foo analyze extension',
+    } as AnalyzedExtension);
+
+    // set loader
+    extensionDevelopmentFolders.setExtensionLoader(extensionLoader);
+
+    await expect(extensionDevelopmentFolders.addDevelopmentFolder('foo')).rejects.toThrow('foo analyze extension');
+  });
+
+  test('check working extension', async () => {
+    const analyzedExtension = { path: 'foo' } as AnalyzedExtension;
+    vi.mocked(extensionLoader.analyzeExtension).mockResolvedValue(analyzedExtension);
+
+    // set loader
+    extensionDevelopmentFolders.setExtensionLoader(extensionLoader);
+
+    // mock saveToConfiguration method
+    const saveToConfigurationSpy = vi.spyOn(extensionDevelopmentFolders, 'saveToConfiguration');
+    saveToConfigurationSpy.mockResolvedValue();
+
+    const callbackOnDidUpdateDevelopmentFolders = vi.fn();
+    extensionDevelopmentFolders.onDidUpdateDevelopmentFolders(callbackOnDidUpdateDevelopmentFolders);
+
+    await extensionDevelopmentFolders.addDevelopmentFolder('foo');
+
+    // expect to have called the saveToConfiguration
+    expect(saveToConfigurationSpy).toBeCalled();
+
+    // expect callback to be called with foo
+    expect(callbackOnDidUpdateDevelopmentFolders).toBeCalledWith([{ path: 'foo' }]);
+
+    // expect to have called the loadExtension
+    expect(extensionLoader.loadExtension).toBeCalledWith(analyzedExtension);
+  });
+});
diff --git a/packages/main/src/plugin/extension/extension-development-folders.ts b/packages/main/src/plugin/extension/extension-development-folders.ts
new file mode 100644
index 00000000000..e59c48fb31a
--- /dev/null
+++ b/packages/main/src/plugin/extension/extension-development-folders.ts
@@ -0,0 +1,150 @@
+/**********************************************************************
+ * Copyright (C) 2025 Red Hat, Inc.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ *
+ * SPDX-License-Identifier: Apache-2.0
+ ***********************************************************************/
+
+import type { ConfigurationRegistry, IConfigurationNode } from '/@/plugin/configuration-registry.js';
+import { Emitter } from '/@/plugin/events/emitter.js';
+import type { ExtensionDevelopmentFolderInfo } from '/@api/extension-development-folders-info.js';
+import { ExtensionDevelopmentFolderInfoSettings } from '/@api/extension-development-folders-info.js';
+
+import type { ApiSenderType } from '../api.js';
+import type { ExtensionLoader } from './extension-loader.js';
+
+// Handle the registration / track of all development folders used when developing extensions
+export class ExtensionDevelopmentFolders {
+  #configurationRegistry: ConfigurationRegistry;
+
+  #apiSender: ApiSenderType;
+
+  #firstLaunch = true;
+
+  #developmentFolders: string[] = [];
+
+  #extensionLoader: ExtensionLoader | undefined;
+
+  // event that will be fired
+  #onDidUpdateDevelopmentFolders: Emitter<ExtensionDevelopmentFolderInfo[]> = new Emitter<
+    ExtensionDevelopmentFolderInfo[]
+  >();
+  onDidUpdateDevelopmentFolders = this.#onDidUpdateDevelopmentFolders.event;
+
+  constructor(configurationRegistry: ConfigurationRegistry, apiSender: ApiSenderType) {
+    this.#configurationRegistry = configurationRegistry;
+    this.#apiSender = apiSender;
+  }
+
+  setExtensionLoader(extensionLoader: ExtensionLoader): void {
+    this.#extensionLoader = extensionLoader;
+  }
+
+  protected refreshFolders(): void {
+    const updatedFolders = this.#configurationRegistry
+      .getConfiguration(ExtensionDevelopmentFolderInfoSettings.SectionName)
+      .get<string[]>(ExtensionDevelopmentFolderInfoSettings.DevelopmentExtensionsFolders, []);
+
+    // first launch ? send the initial value as well
+    // or when value is being changed
+    if (this.#firstLaunch || JSON.stringify(this.#developmentFolders) !== JSON.stringify(updatedFolders)) {
+      this.#developmentFolders = updatedFolders;
+      this.#onDidUpdateDevelopmentFolders.fire(this.getDevelopmentFolders());
+    }
+  }
+
+  init(): void {
+    const developmentExtensionsFoldersConfiguration: IConfigurationNode = {
+      id: 'preferences.extensions',
+      title: 'Extensions',
+      type: 'object',
+      properties: {
+        [`${ExtensionDevelopmentFolderInfoSettings.SectionName}.${ExtensionDevelopmentFolderInfoSettings.DevelopmentExtensionsFolders}`]:
+          {
+            description: 'List of extension folders to monitor',
+            type: 'array',
+            default: [],
+            hidden: true,
+          },
+      },
+    };
+    this.#configurationRegistry.registerConfigurations([developmentExtensionsFoldersConfiguration]);
+
+    // refresh the value when the property is changed
+    this.#configurationRegistry.onDidChangeConfiguration(event => {
+      if (
+        event.key ===
+        `${ExtensionDevelopmentFolderInfoSettings.SectionName}.${ExtensionDevelopmentFolderInfoSettings.DevelopmentExtensionsFolders}`
+      ) {
+        this.refreshFolders();
+      }
+    });
+
+    // initialize and track all development folders
+    this.refreshFolders();
+
+    this.#firstLaunch = false;
+  }
+
+  protected async saveToConfiguration(): Promise<void> {
+    await this.#configurationRegistry
+      .getConfiguration(ExtensionDevelopmentFolderInfoSettings.SectionName)
+      .update(ExtensionDevelopmentFolderInfoSettings.DevelopmentExtensionsFolders, this.#developmentFolders);
+
+    // send an event to refresh the value
+    this.#apiSender.send('extensions-development-folders-changed');
+  }
+
+  async addDevelopmentFolder(path: string): Promise<void> {
+    // check we have extension loader
+    if (!this.#extensionLoader) {
+      throw new Error('No extension loader available');
+    }
+
+    // check the path is not already in the list
+    if (this.#developmentFolders.includes(path)) {
+      throw new Error(`Path ${path} already exist in the list`);
+    }
+
+    // before adding the path, check it's a valid extension path
+    const analyzedExtension = await this.#extensionLoader.analyzeExtension(path, false);
+    // if there is an error, abort
+    if (analyzedExtension.error) {
+      throw new Error(analyzedExtension.error);
+    }
+
+    this.#developmentFolders.push(path);
+
+    // persist the changes
+    await this.saveToConfiguration();
+    this.#onDidUpdateDevelopmentFolders.fire(this.getDevelopmentFolders());
+
+    // start the extension
+    await this.#extensionLoader.loadExtension(analyzedExtension);
+  }
+
+  async removeDevelopmentFolder(path: string): Promise<void> {
+    this.#developmentFolders = this.#developmentFolders.filter(folder => folder !== path);
+
+    // persist the changes
+    await this.saveToConfiguration();
+
+    // dispatch
+    this.#onDidUpdateDevelopmentFolders.fire(this.getDevelopmentFolders());
+  }
+
+  getDevelopmentFolders(): ExtensionDevelopmentFolderInfo[] {
+    return this.#developmentFolders.map(path => ({ path }));
+  }
+}
diff --git a/packages/main/src/plugin/extension/extension-loader.spec.ts b/packages/main/src/plugin/extension/extension-loader.spec.ts
index 1d5d97bc6a2..c16e316b767 100644
--- a/packages/main/src/plugin/extension/extension-loader.spec.ts
+++ b/packages/main/src/plugin/extension/extension-loader.spec.ts
@@ -72,6 +72,7 @@ import { Disposable } from '../types/disposable.js';
 import { Uri } from '../types/uri.js';
 import { Exec } from '../util/exec.js';
 import type { ViewRegistry } from '../view-registry.js';
+import type { ExtensionDevelopmentFolders } from './extension-development-folders.js';
 import type { ActivatedExtension, AnalyzedExtension, RequireCacheDict } from './extension-loader.js';
 import { ExtensionLoader } from './extension-loader.js';
 import type { ExtensionWatcher } from './extension-watcher.js';
@@ -119,6 +120,10 @@ class TestExtensionLoader extends ExtensionLoader {
   override reloadExtension(extension: AnalyzedExtension, removable: boolean): Promise<void> {
     return super.reloadExtension(extension, removable);
   }
+
+  override loadDevelopmentFolderExtensions(analyzedExtensions: AnalyzedExtension[]): Promise<void> {
+    return super.loadDevelopmentFolderExtensions(analyzedExtensions);
+  }
 }
 
 let extensionLoader: TestExtensionLoader;
@@ -266,6 +271,10 @@ const extensionWatcher = {
   reloadExtension: vi.fn(),
 } as unknown as ExtensionWatcher;
 
+const extensionDevelopmentFolder = {
+  getDevelopmentFolders: vi.fn(),
+} as unknown as ExtensionDevelopmentFolders;
+
 vi.mock('electron', () => {
   return {
     app: {
@@ -319,6 +328,7 @@ beforeAll(() => {
     safeStorageRegistry,
     certificates,
     extensionWatcher,
+    extensionDevelopmentFolder,
   );
 });
 
@@ -2752,3 +2762,43 @@ describe('init', () => {
     expect(property?.default).toBeTruthy();
   });
 });
+
+describe('loadDevelopmentFolderExtensions', () => {
+  test('check loading', async () => {
+    vi.mocked(extensionDevelopmentFolder).getDevelopmentFolders.mockReturnValue([
+      { path: 'foo' },
+      { path: 'bar' },
+      { path: 'baz' },
+    ]);
+
+    // spy console.error
+    const consoleErrorSpy = vi.spyOn(console, 'error');
+
+    // 1st is non existing
+    vi.mocked(fs.existsSync).mockReturnValueOnce(false);
+    // 2nd exists
+    vi.mocked(fs.existsSync).mockReturnValueOnce(true);
+    // 3rd exists
+    vi.mocked(fs.existsSync).mockReturnValueOnce(true);
+
+    const analyzeExtensionSpy = vi.spyOn(extensionLoader, 'analyzeExtension');
+    // bar is working
+    const barAnalyzedExtension = {} as AnalyzedExtension;
+    analyzeExtensionSpy.mockResolvedValueOnce(barAnalyzedExtension);
+    // baz has error
+    const bazAnalyzedExtension = { error: 'dummy error' } as AnalyzedExtension;
+    analyzeExtensionSpy.mockResolvedValueOnce(bazAnalyzedExtension);
+
+    const analyzedExtensions: AnalyzedExtension[] = [];
+    await extensionLoader.loadDevelopmentFolderExtensions(analyzedExtensions);
+
+    // check only bar has been added
+    expect(analyzedExtensions.length).toBe(1);
+    expect(analyzedExtensions[0]).toBe(barAnalyzedExtension);
+
+    // expect we got a console error for baz
+    expect(consoleErrorSpy).toBeCalledWith('Error while analyzing extension baz', bazAnalyzedExtension.error);
+
+    consoleErrorSpy.mockRestore();
+  });
+});
diff --git a/packages/main/src/plugin/extension/extension-loader.ts b/packages/main/src/plugin/extension/extension-loader.ts
index 0d21e9e13b8..3f291efe3cd 100644
--- a/packages/main/src/plugin/extension/extension-loader.ts
+++ b/packages/main/src/plugin/extension/extension-loader.ts
@@ -86,6 +86,7 @@ import { TelemetryTrustedValue } from '../types/telemetry.js';
 import { Uri } from '../types/uri.js';
 import type { Exec } from '../util/exec.js';
 import type { ViewRegistry } from '../view-registry.js';
+import type { ExtensionDevelopmentFolders } from './extension-development-folders.js';
 import type { ExtensionWatcher } from './extension-watcher.js';
 
 /**
@@ -195,6 +196,7 @@ export class ExtensionLoader {
     private safeStorageRegistry: SafeStorageRegistry,
     private certificates: Certificates,
     private extensionWatcher: ExtensionWatcher,
+    private extensionDevelopmentFolder: ExtensionDevelopmentFolders,
   ) {
     this.pluginsDirectory = directories.getPluginsDirectory();
     this.pluginsScanDirectory = directories.getPluginsScanDirectory();
@@ -448,6 +450,9 @@ export class ExtensionLoader {
       analyzedExtensions.push(...analyzedPluginsDirectoryExtensions);
     }
 
+    // load all extensions from developer mode
+    await this.loadDevelopmentFolderExtensions(analyzedExtensions);
+
     // now we have all extensions, we can load them
     await this.loadExtensions(analyzedExtensions);
 
@@ -459,6 +464,19 @@ export class ExtensionLoader {
     });
   }
 
+  protected async loadDevelopmentFolderExtensions(analyzedExtensions: AnalyzedExtension[]): Promise<void> {
+    for (const folder of this.extensionDevelopmentFolder.getDevelopmentFolders()) {
+      if (fs.existsSync(folder.path)) {
+        const analyzedExtension = await this.analyzeExtension(folder.path, false);
+        if (!analyzedExtension.error) {
+          analyzedExtensions.push(analyzedExtension);
+        } else {
+          console.error(`Error while analyzing extension ${folder.path}`, analyzedExtension.error);
+        }
+      }
+    }
+  }
+
   async analyzeExtension(extensionPath: string, removable: boolean): Promise<AnalyzedExtension> {
     const resolvedExtensionPath = await realpath(extensionPath);
     // do nothing if there is no package.json file
diff --git a/packages/main/src/plugin/index.ts b/packages/main/src/plugin/index.ts
index 53479b8bb41..a2589ce3faf 100644
--- a/packages/main/src/plugin/index.ts
+++ b/packages/main/src/plugin/index.ts
@@ -79,6 +79,7 @@ import type { ContainerInspectInfo } from '/@api/container-inspect-info.js';
 import type { ContainerStatsInfo } from '/@api/container-stats-info.js';
 import type { ContributionInfo } from '/@api/contribution-info.js';
 import type { DockerSocketMappingStatusInfo } from '/@api/docker-compatibility-info.js';
+import type { ExtensionDevelopmentFolderInfo } from '/@api/extension-development-folders-info.js';
 import type { ExtensionInfo } from '/@api/extension-info.js';
 import type { GitHubIssue } from '/@api/feedback.js';
 import type { HistoryInfo } from '/@api/history-info.js';
@@ -148,6 +149,7 @@ import { EditorInit } from './editor-init.js';
 import type { Emitter } from './events/emitter.js';
 import { ExtensionsCatalog } from './extension/catalog/extensions-catalog.js';
 import type { CatalogExtension } from './extension/catalog/extensions-catalog-api.js';
+import { ExtensionDevelopmentFolders } from './extension/extension-development-folders.js';
 import { ExtensionsUpdater } from './extension/updater/extensions-updater.js';
 import { Featured } from './featured/featured.js';
 import type { FeaturedExtension } from './featured/featured-api.js';
@@ -667,6 +669,8 @@ export class PluginSystem {
     );
 
     const extensionWatcher = new ExtensionWatcher(fileSystemMonitoring);
+    const extensionDevelopmentFolders = new ExtensionDevelopmentFolders(configurationRegistry, apiSender);
+    extensionDevelopmentFolders.init();
 
     this.extensionLoader = new ExtensionLoader(
       commandRegistry,
@@ -705,8 +709,10 @@ export class PluginSystem {
       safeStorageRegistry,
       certificates,
       extensionWatcher,
+      extensionDevelopmentFolders,
     );
     await this.extensionLoader.init();
+    extensionDevelopmentFolders.setExtensionLoader(this.extensionLoader);
 
     const feedback = new FeedbackHandler(this.extensionLoader);
 
@@ -2888,6 +2894,27 @@ export class PluginSystem {
       return path.relative(from, to);
     });
 
+    this.ipcHandle(
+      'extension-development-folders:getDevelopmentFolders',
+      async (): Promise<ExtensionDevelopmentFolderInfo[]> => {
+        return extensionDevelopmentFolders.getDevelopmentFolders();
+      },
+    );
+
+    this.ipcHandle(
+      'extension-development-folders:addDevelopmentFolder',
+      async (_listener: unknown, path: string): Promise<void> => {
+        return extensionDevelopmentFolders.addDevelopmentFolder(path);
+      },
+    );
+
+    this.ipcHandle(
+      'extension-development-folders:removeDevelopmentFolder',
+      async (_listener: unknown, path: string): Promise<void> => {
+        return extensionDevelopmentFolders.removeDevelopmentFolder(path);
+      },
+    );
+
     const dockerDesktopInstallation = new DockerDesktopInstallation(
       apiSender,
       containerProviderRegistry,
diff --git a/packages/preload/src/index.ts b/packages/preload/src/index.ts
index 3903412c467..5d18558c481 100644
--- a/packages/preload/src/index.ts
+++ b/packages/preload/src/index.ts
@@ -57,6 +57,7 @@ import type { ContainerInspectInfo } from '/@api/container-inspect-info';
 import type { ContainerStatsInfo } from '/@api/container-stats-info';
 import type { ContributionInfo } from '/@api/contribution-info';
 import type { DockerSocketMappingStatusInfo } from '/@api/docker-compatibility-info';
+import type { ExtensionDevelopmentFolderInfo } from '/@api/extension-development-folders-info';
 import type { ExtensionInfo } from '/@api/extension-info';
 import type { FeedbackProperties, GitHubIssue } from '/@api/feedback';
 import type { HistoryInfo } from '/@api/history-info';
@@ -2383,6 +2384,21 @@ export function initExposure(): void {
   contextBridge.exposeInMainWorld('pathRelative', async (from: string, to: string): Promise<string> => {
     return ipcInvoke('path:relative', from, to);
   });
+
+  contextBridge.exposeInMainWorld(
+    'listExtensionDevelopmentFolders',
+    async (): Promise<ExtensionDevelopmentFolderInfo[]> => {
+      return ipcInvoke('extension-development-folders:getDevelopmentFolders');
+    },
+  );
+
+  contextBridge.exposeInMainWorld('untrackExtensionFolder', async (path: string): Promise<void> => {
+    return ipcInvoke('extension-development-folders:removeDevelopmentFolder', path);
+  });
+
+  contextBridge.exposeInMainWorld('trackExtensionFolder', async (path: string): Promise<void> => {
+    return ipcInvoke('extension-development-folders:addDevelopmentFolder', path);
+  });
 }
 
 // expose methods
diff --git a/packages/renderer/src/stores/extensionDevelopmentFolders.spec.ts b/packages/renderer/src/stores/extensionDevelopmentFolders.spec.ts
new file mode 100644
index 00000000000..09cd33e3ce9
--- /dev/null
+++ b/packages/renderer/src/stores/extensionDevelopmentFolders.spec.ts
@@ -0,0 +1,127 @@
+/**********************************************************************
+ * Copyright (C) 2025 Red Hat, Inc.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ *
+ * SPDX-License-Identifier: Apache-2.0
+ ***********************************************************************/
+
+/* eslint-disable @typescript-eslint/no-explicit-any */
+
+import { get } from 'svelte/store';
+import { beforeAll, beforeEach, expect, test, vi } from 'vitest';
+
+import type { IDisposable } from '../../../main/src/plugin/types/disposable';
+import {
+  extensionDevelopmentFolders,
+  extensionDevelopmentFoldersEventStore,
+  fetchExtensionDevelopmentFolders,
+} from './extensionDevelopmentFolders';
+
+// first, path window object
+const callbacks = new Map<string, () => void>();
+const eventEmitter = (message: string, func: (...args: unknown[]) => void): IDisposable => {
+  callbacks.set(message, func);
+  return {} as IDisposable;
+};
+
+beforeAll(() => {
+  Object.defineProperty(window, 'events', { value: { receive: vi.fn() } });
+});
+
+beforeEach(() => {
+  vi.restoreAllMocks();
+  vi.resetAllMocks();
+  vi.mocked(window.events).receive.mockImplementation((channel, args) => {
+    return eventEmitter(channel, args);
+  });
+
+  vi.spyOn(window, 'addEventListener').mockImplementation((event, callback) => {
+    callbacks.set(event, callback as () => void);
+  });
+});
+
+test('should be updated in case of an extension is stopped', async () => {
+  // initial view
+  vi.mocked(window.listExtensionDevelopmentFolders).mockResolvedValue([
+    {
+      path: 'foo',
+    },
+  ]);
+  extensionDevelopmentFoldersEventStore.setup();
+
+  const callback = callbacks.get('extensions-already-started');
+  // send 'extensions-already-started' event
+  expect(callback).toBeDefined();
+  callback?.();
+
+  // now ready to fetch extension folders
+  await fetchExtensionDevelopmentFolders();
+
+  // now get list
+  const extensionDevelopmentFoldersList1 = get(extensionDevelopmentFolders);
+  expect(extensionDevelopmentFoldersList1.length).toBe(1);
+  expect(extensionDevelopmentFoldersList1[0].path).toEqual('foo');
+
+  // ok now mock the listExtensionDevelopmentFolders function to return an empty list
+  vi.mocked(window.listExtensionDevelopmentFolders).mockResolvedValue([]);
+
+  // call 'extension-stopped' event
+  const extensionStoppedCallback = callbacks.get('extension-stopped');
+  expect(extensionStoppedCallback).toBeDefined();
+
+  extensionStoppedCallback?.();
+
+  // check if the onboardings are updated
+  await vi.waitFor(() => {
+    const extensionDevelopmentFoldersList2 = get(extensionDevelopmentFolders);
+    expect(extensionDevelopmentFoldersList2.length).toBe(0);
+  });
+});
+
+test('should be updated in case of an extension is started', async () => {
+  // initial view
+  vi.mocked(window.listExtensionDevelopmentFolders).mockResolvedValue([
+    {
+      path: 'foo',
+    },
+  ]);
+  extensionDevelopmentFoldersEventStore.setup();
+
+  const callback = callbacks.get('extensions-already-started');
+  // send 'extensions-already-started' event
+  expect(callback).toBeDefined();
+  callback?.();
+
+  // now ready to fetch extension folders
+  await fetchExtensionDevelopmentFolders();
+
+  // now get list
+  const extensionDevelopmentFoldersList1 = get(extensionDevelopmentFolders);
+  expect(extensionDevelopmentFoldersList1.length).toBe(1);
+  expect(extensionDevelopmentFoldersList1[0].path).toEqual('foo');
+
+  // ok now mock the listExtensionDevelopmentFolders function to return an empty list
+  vi.mocked(window.listExtensionDevelopmentFolders).mockResolvedValue([]);
+
+  // call 'extension-stopped' event
+  const extensionStoppedCallback = callbacks.get('extension-started');
+  expect(extensionStoppedCallback).toBeDefined();
+  extensionStoppedCallback?.();
+
+  // check if the onboardings are updated
+  await vi.waitFor(() => {
+    const extensionDevelopmentFoldersList2 = get(extensionDevelopmentFolders);
+    expect(extensionDevelopmentFoldersList2.length).toBe(0);
+  });
+});
diff --git a/packages/renderer/src/stores/extensionDevelopmentFolders.ts b/packages/renderer/src/stores/extensionDevelopmentFolders.ts
new file mode 100644
index 00000000000..1e622eb144d
--- /dev/null
+++ b/packages/renderer/src/stores/extensionDevelopmentFolders.ts
@@ -0,0 +1,63 @@
+/**********************************************************************
+ * Copyright (C) 2025 Red Hat, Inc.
+ *
+ * Licensed under the Apache License, Version 2.0 (the "License");
+ * you may not use this file except in compliance with the License.
+ * You may obtain a copy of the License at
+ *
+ * http://www.apache.org/licenses/LICENSE-2.0
+ *
+ * Unless required by applicable law or agreed to in writing, software
+ * distributed under the License is distributed on an "AS IS" BASIS,
+ * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+ * See the License for the specific language governing permissions and
+ * limitations under the License.
+ *
+ * SPDX-License-Identifier: Apache-2.0
+ ***********************************************************************/
+
+import type { Writable } from 'svelte/store';
+import { writable } from 'svelte/store';
+
+import type { ExtensionDevelopmentFolderInfo } from '/@api/extension-development-folders-info';
+
+import { EventStore } from './event-store';
+
+const windowEvents = [
+  'extension-stopped',
+  'extension-started',
+  'extensions-started',
+  'extensions-development-folders-changed',
+];
+const windowListeners = ['extensions-already-started'];
+
+let readyToUpdate = false;
+
+export async function checkForUpdate(eventName: string): Promise<boolean> {
+  if ('extensions-already-started' === eventName) {
+    readyToUpdate = true;
+  }
+
+  // do not fetch until extensions are all started
+  return readyToUpdate;
+}
+export const extensionDevelopmentFolders: Writable<ExtensionDevelopmentFolderInfo[]> = writable([]);
+
+// use helper here as window methods are initialized after the store in tests
+const listExtensionDevelopmentFolders = async (): Promise<ExtensionDevelopmentFolderInfo[]> => {
+  return window.listExtensionDevelopmentFolders();
+};
+
+export const extensionDevelopmentFoldersEventStore = new EventStore<ExtensionDevelopmentFolderInfo[]>(
+  'extensionDevelopmentFoldes',
+  extensionDevelopmentFolders,
+  checkForUpdate,
+  windowEvents,
+  windowListeners,
+  listExtensionDevelopmentFolders,
+);
+const extensionDevelopmentFoldersEventStoreInfo = extensionDevelopmentFoldersEventStore.setup();
+
+export const fetchExtensionDevelopmentFolders = async () => {
+  await extensionDevelopmentFoldersEventStoreInfo.fetch();
+};