diff --git a/.changeset/cool-plants-shout.md b/.changeset/cool-plants-shout.md
new file mode 100644
index 0000000000..8d04a50228
--- /dev/null
+++ b/.changeset/cool-plants-shout.md
@@ -0,0 +1,7 @@
+---
+"vs-code-extension": minor
+---
+
+The VSCode extension should now work for the majority of projects.
+
+We fixed a problem that blocked the VSCode extension for months. The extension transpiles ESM under the hood to CJS now because Electron, and thus VSCode, do not support ESM.
diff --git a/package-lock.json b/package-lock.json
index beaac3fc0e..d85e12a9c9 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -3418,6 +3418,12 @@
 				"csstype": "^3.0.2"
 			}
 		},
+		"node_modules/@types/require-from-string": {
+			"version": "1.2.1",
+			"resolved": "https://registry.npmjs.org/@types/require-from-string/-/require-from-string-1.2.1.tgz",
+			"integrity": "sha512-mIDK7lTHc0uW67SxPIqkwCrxmdKBV5aAET560hyZnT8c6Ekp9Aah3GPqe8Pl1Yzn/i2NMYmYv+HiMLwjGDCIAQ==",
+			"dev": true
+		},
 		"node_modules/@types/scheduler": {
 			"version": "0.16.2",
 			"license": "MIT",
@@ -12473,6 +12479,14 @@
 				"node": ">=0.10.0"
 			}
 		},
+		"node_modules/require-from-string": {
+			"version": "2.0.2",
+			"resolved": "https://registry.npmjs.org/require-from-string/-/require-from-string-2.0.2.tgz",
+			"integrity": "sha512-Xf0nWe6RseziFMu+Ap9biiUbmplq6S9/p+7w7YXP/JBHhrUDDUhwa+vANyubuqfZWTveU//DYVGsDG7RKL/vEw==",
+			"engines": {
+				"node": ">=0.10.0"
+			}
+		},
 		"node_modules/require-main-filename": {
 			"version": "2.0.0",
 			"dev": true,
@@ -16035,10 +16049,12 @@
 			"dependencies": {
 				"@inlang/core": "*",
 				"@inlang/telemetry": "*",
+				"require-from-string": "^2.0.2",
 				"throttle-debounce": "^5.0.0"
 			},
 			"devDependencies": {
 				"@types/fs-extra": "^11.0.1",
+				"@types/require-from-string": "^1.2.1",
 				"@types/throttle-debounce": "^5.0.0",
 				"@types/vscode": "^1.75.0",
 				"@vscode/vsce": "^2.18.0",
@@ -16185,8 +16201,9 @@
 		},
 		"source-code/ide-extension/node_modules/typescript": {
 			"version": "5.0.4",
+			"resolved": "https://registry.npmjs.org/typescript/-/typescript-5.0.4.tgz",
+			"integrity": "sha512-cW9T5W9xY37cc+jfEnaUvX91foxtHkza3Nw3wkoF4sSlKn0MONdkdEndig/qPBWXNkmplh3NzayQzCiHM4/hqw==",
 			"dev": true,
-			"license": "Apache-2.0",
 			"bin": {
 				"tsc": "bin/tsc",
 				"tsserver": "bin/tsserver"
diff --git a/source-code/ide-extension/package.json b/source-code/ide-extension/package.json
index cd2264022b..5081e2de52 100644
--- a/source-code/ide-extension/package.json
+++ b/source-code/ide-extension/package.json
@@ -50,10 +50,12 @@
 	"dependencies": {
 		"@inlang/core": "*",
 		"@inlang/telemetry": "*",
+		"require-from-string": "^2.0.2",
 		"throttle-debounce": "^5.0.0"
 	},
 	"devDependencies": {
 		"@types/fs-extra": "^11.0.1",
+		"@types/require-from-string": "^1.2.1",
 		"@types/throttle-debounce": "^5.0.0",
 		"@types/vscode": "^1.75.0",
 		"@vscode/vsce": "^2.18.0",
diff --git a/source-code/ide-extension/src/decorations/messagePreview.ts b/source-code/ide-extension/src/decorations/messagePreview.ts
index fd80ac5299..3956590f02 100644
--- a/source-code/ide-extension/src/decorations/messagePreview.ts
+++ b/source-code/ide-extension/src/decorations/messagePreview.ts
@@ -2,6 +2,7 @@ import * as vscode from "vscode"
 import { debounce } from "throttle-debounce"
 import { query } from "@inlang/core/query"
 import { state } from "../state.js"
+import { telemetryNode } from "@inlang/telemetry"
 
 const MAXIMUM_PREVIEW_LENGTH = 40
 
@@ -54,7 +55,7 @@ export async function messagePreview(args: {
 		}
 
 		// Get the message references
-		const wrappedDecorations = state().config.ideExtension?.messageReferenceMatchers.map(
+		const wrappedDecorations = (state().config.ideExtension?.messageReferenceMatchers ?? []).map(
 			async (matcher) => {
 				const messages = await matcher({
 					documentText: args.activeTextEditor.document.getText(),
diff --git a/source-code/ide-extension/src/main.ts b/source-code/ide-extension/src/main.ts
index 0d9b4f9f2f..54f1e5c10a 100644
--- a/source-code/ide-extension/src/main.ts
+++ b/source-code/ide-extension/src/main.ts
@@ -1,23 +1,26 @@
 import * as vscode from "vscode"
-import fetch from "node-fetch"
 import { debounce } from "throttle-debounce"
 import { setState, state } from "./state.js"
 import { extractMessageCommand } from "./commands/extractMessage.js"
 import { messagePreview } from "./decorations/messagePreview.js"
 import { determineClosestPath } from "./utils/determineClosestPath.js"
-import { InlangConfigModule, setupConfig } from "@inlang/core/config"
+import { setupConfig } from "@inlang/core/config"
 import { ExtractMessage } from "./actions/extractMessage.js"
-import { createFileSystemMapper } from "./utils/createFileSystemMapper.js"
-import { initialize$import } from "./utils/$import.js"
 import { msg } from "./utils/message.js"
-// import { telemetryNode } from "@inlang/telemetry"
+import { createInlangEnv, importInlangConfig } from "./services/inlang-environment/index.js"
+import { telemetryNode } from "@inlang/telemetry"
+import { version } from "../package.json"
 
 export async function activate(context: vscode.ExtensionContext): Promise<void> {
 	try {
-		// telemetryNode.capture({
-		// 	distinctId: "unknown",
-		// 	event: "IDE-EXTENSION activated",
-		// })
+		telemetryNode.capture({
+			distinctId: "unknown",
+			event: "IDE-EXTENSION activated",
+			properties: {
+				vscode_version: vscode.version,
+				version: version,
+			},
+		})
 		msg("Inlang extension activated.", "info")
 
 		// start the extension
@@ -62,25 +65,18 @@ async function main(args: { context: vscode.ExtensionContext }): Promise<void> {
 	})
 
 	// get current workspace
-	const workspace = vscode.workspace.getWorkspaceFolder(vscode.Uri.parse(closestConfigPath))
-	if (!workspace) {
+	const workspaceFolder = vscode.workspace.getWorkspaceFolder(vscode.Uri.parse(closestConfigPath))
+	if (!workspaceFolder) {
 		return
 	}
 
-	// initialize inlang core and resources for current workspace
-	const fileSystemMapper = createFileSystemMapper(vscode.workspace.fs, workspace.uri)
-
 	// watch for changes in the config file
 	const watcher = vscode.workspace.createFileSystemWatcher(
-		new vscode.RelativePattern(workspace, "**/inlang.config.js"),
+		new vscode.RelativePattern(workspaceFolder, "**/inlang.config.js"),
 	)
 
-	const env = {
-		$fs: fileSystemMapper,
-		$import: initialize$import({ fs: fileSystemMapper, fetch }),
-	}
-
-	const module = (await import(closestConfigPath)) as InlangConfigModule
+	const module = await importInlangConfig(closestConfigPath)
+	const env = createInlangEnv({ workspaceFolder })
 
 	const config = await setupConfig({ module, env })
 
@@ -115,7 +111,7 @@ async function main(args: { context: vscode.ExtensionContext }): Promise<void> {
 		),
 	)
 
-	const documentSelectors = [
+	const documentSelectors: vscode.DocumentSelector = [
 		{ language: "javascript", pattern: "!**/inlang.config.js" },
 		...(state().config.ideExtension?.documentSelectors || []), // an empty array as fallback
 	]
diff --git a/source-code/ide-extension/src/services/inlang-environment/README.md b/source-code/ide-extension/src/services/inlang-environment/README.md
new file mode 100644
index 0000000000..6983965b5b
--- /dev/null
+++ b/source-code/ide-extension/src/services/inlang-environment/README.md
@@ -0,0 +1,5 @@
+# Inlang Environment for VSCode
+
+This service is a custom inlang environment based on the requirements of VSCode.
+
+The need for a custom environment stems from the fact that VSCode doesn't support ESM. The lack of ESM support in VSCode is caused by lacking ESM support in Electron. Issue https://github.com/inlang/inlang/issues/452 provides more details.
diff --git a/source-code/ide-extension/src/services/inlang-environment/implementation/$import.test.plugin.js b/source-code/ide-extension/src/services/inlang-environment/implementation/$import.test.plugin.js
new file mode 100644
index 0000000000..dbca7583e0
--- /dev/null
+++ b/source-code/ide-extension/src/services/inlang-environment/implementation/$import.test.plugin.js
@@ -0,0 +1,872 @@
+/* eslint-disable */
+// @ts-nocheck
+/**
+ * This plugin is used to test the $import function
+ *
+ * Taken from https://raw.githubusercontent.com/samuelstroschein/inlang-plugin-json/3e322bf01763fc6d8c9f9f9489be889ae96ca6f2/dist/index.js
+ *
+ * ----------------------------------
+ */
+
+var Ne = Object.create
+var X = Object.defineProperty
+var Ee = Object.getOwnPropertyDescriptor
+var Me = Object.getOwnPropertyNames
+var Re = Object.getPrototypeOf,
+	Fe = Object.prototype.hasOwnProperty
+var ze = (e, t) => () => (t || e((t = { exports: {} }).exports, t), t.exports)
+var Ue = (e, t, n, r) => {
+	if ((t && typeof t == "object") || typeof t == "function")
+		for (let i of Me(t))
+			!Fe.call(e, i) &&
+				i !== n &&
+				X(e, i, { get: () => t[i], enumerable: !(r = Ee(t, i)) || r.enumerable })
+	return e
+}
+var De = (e, t, n) => (
+	(n = e != undefined ? Ne(Re(e)) : {}),
+	Ue(t || !e || !e.__esModule ? X(n, "default", { value: e, enumerable: !0 }) : n, e)
+)
+var $e = ze((S, w) => {
+	var Le = 200,
+		se = "__lodash_hash_undefined__",
+		Be = 800,
+		Je = 16,
+		oe = 9007199254740991,
+		ue = "[object Arguments]",
+		Ge = "[object Array]",
+		He = "[object AsyncFunction]",
+		We = "[object Boolean]",
+		Ve = "[object Date]",
+		qe = "[object Error]",
+		le = "[object Function]",
+		Ke = "[object GeneratorFunction]",
+		Xe = "[object Map]",
+		Ye = "[object Number]",
+		Ze = "[object Null]",
+		fe = "[object Object]",
+		Qe = "[object Proxy]",
+		ke = "[object RegExp]",
+		et = "[object Set]",
+		tt = "[object String]",
+		nt = "[object Undefined]",
+		rt = "[object WeakMap]",
+		it = "[object ArrayBuffer]",
+		at = "[object DataView]",
+		st = "[object Float32Array]",
+		ot = "[object Float64Array]",
+		ut = "[object Int8Array]",
+		lt = "[object Int16Array]",
+		ft = "[object Int32Array]",
+		ct = "[object Uint8Array]",
+		gt = "[object Uint8ClampedArray]",
+		pt = "[object Uint16Array]",
+		dt = "[object Uint32Array]",
+		ht = /[\\^$.*+?()[\]{}|]/g,
+		yt = /^\[object .+?Constructor\]$/,
+		mt = /^(?:0|[1-9]\d*)$/,
+		f = {}
+	f[st] = f[ot] = f[ut] = f[lt] = f[ft] = f[ct] = f[gt] = f[pt] = f[dt] = !0
+	f[ue] =
+		f[Ge] =
+		f[it] =
+		f[We] =
+		f[at] =
+		f[Ve] =
+		f[qe] =
+		f[le] =
+		f[Xe] =
+		f[Ye] =
+		f[fe] =
+		f[ke] =
+		f[et] =
+		f[tt] =
+		f[rt] =
+			!1
+	var ce =
+			typeof globalThis == "object" && globalThis && globalThis.Object === Object && globalThis,
+		_t = typeof self == "object" && self && self.Object === Object && self,
+		A = ce || _t || Function("return this")(),
+		ge = typeof S == "object" && S && !S.nodeType && S,
+		$ = ge && typeof w == "object" && w && !w.nodeType && w,
+		pe = $ && $.exports === ge,
+		U = pe && ce.process,
+		Z = (function () {
+			try {
+				var e = $ && $.require && $.require("util").types
+				return e || (U && U.binding && U.binding("util"))
+			} catch {}
+		})(),
+		Q = Z && Z.isTypedArray
+	function bt(e, t, n) {
+		switch (n.length) {
+			case 0:
+				return e.call(t)
+			case 1:
+				return e.call(t, n[0])
+			case 2:
+				return e.call(t, n[0], n[1])
+			case 3:
+				return e.call(t, n[0], n[1], n[2])
+		}
+		return e.apply(t, n)
+	}
+	function wt(e, t) {
+		for (var n = -1, r = Array(e); ++n < e; ) r[n] = t(n)
+		return r
+	}
+	function vt(e) {
+		return function (t) {
+			return e(t)
+		}
+	}
+	function Tt(e, t) {
+		return e?.[t]
+	}
+	function xt(e, t) {
+		return function (n) {
+			return e(t(n))
+		}
+	}
+	var St = Array.prototype,
+		$t = Function.prototype,
+		I = Object.prototype,
+		D = A["__core-js_shared__"],
+		N = $t.toString,
+		g = I.hasOwnProperty,
+		k = (function () {
+			var e = /[^.]+$/.exec((D && D.keys && D.keys.IE_PROTO) || "")
+			return e ? "Symbol(src)_1." + e : ""
+		})(),
+		de = I.toString,
+		Pt = N.call(Object),
+		At = RegExp(
+			"^" +
+				N.call(g)
+					.replace(ht, "\\$&")
+					.replace(/hasOwnProperty|(function).*?(?=\\\()| for .+?(?=\\\])/g, "$1.*?") +
+				"$",
+		),
+		j = pe ? A.Buffer : void 0,
+		ee = A.Symbol,
+		te = A.Uint8Array,
+		ne = j ? j.allocUnsafe : void 0,
+		he = xt(Object.getPrototypeOf, Object),
+		re = Object.create,
+		Ot = I.propertyIsEnumerable,
+		jt = St.splice,
+		m = ee ? ee.toStringTag : void 0,
+		C = (function () {
+			try {
+				var e = W(Object, "defineProperty")
+				return e({}, "", {}), e
+			} catch {}
+		})(),
+		Ct = j ? j.isBuffer : void 0,
+		ie = Math.max,
+		It = Date.now,
+		ye = W(A, "Map"),
+		P = W(Object, "create"),
+		Nt = (function () {
+			function e() {}
+			return function (t) {
+				if (!b(t)) return {}
+				if (re) return re(t)
+				e.prototype = t
+				var n = new e()
+				return (e.prototype = void 0), n
+			}
+		})()
+	function _(e) {
+		var t = -1,
+			n = e == undefined ? 0 : e.length
+		for (this.clear(); ++t < n; ) {
+			var r = e[t]
+			this.set(r[0], r[1])
+		}
+	}
+	function Et() {
+		;(this.__data__ = P ? P(null) : {}), (this.size = 0)
+	}
+	function Mt(e) {
+		var t = this.has(e) && delete this.__data__[e]
+		return (this.size -= t ? 1 : 0), t
+	}
+	function Rt(e) {
+		var t = this.__data__
+		if (P) {
+			var n = t[e]
+			return n === se ? void 0 : n
+		}
+		return g.call(t, e) ? t[e] : void 0
+	}
+	function Ft(e) {
+		var t = this.__data__
+		return P ? t[e] !== void 0 : g.call(t, e)
+	}
+	function zt(e, t) {
+		var n = this.__data__
+		return (this.size += this.has(e) ? 0 : 1), (n[e] = P && t === void 0 ? se : t), this
+	}
+	_.prototype.clear = Et
+	_.prototype.delete = Mt
+	_.prototype.get = Rt
+	_.prototype.has = Ft
+	_.prototype.set = zt
+	function p(e) {
+		var t = -1,
+			n = e == undefined ? 0 : e.length
+		for (this.clear(); ++t < n; ) {
+			var r = e[t]
+			this.set(r[0], r[1])
+		}
+	}
+	function Ut() {
+		;(this.__data__ = []), (this.size = 0)
+	}
+	function Dt(e) {
+		var t = this.__data__,
+			n = E(t, e)
+		if (n < 0) return !1
+		var r = t.length - 1
+		return n == r ? t.pop() : jt.call(t, n, 1), --this.size, !0
+	}
+	function Lt(e) {
+		var t = this.__data__,
+			n = E(t, e)
+		return n < 0 ? void 0 : t[n][1]
+	}
+	function Bt(e) {
+		return E(this.__data__, e) > -1
+	}
+	function Jt(e, t) {
+		var n = this.__data__,
+			r = E(n, e)
+		return r < 0 ? (++this.size, n.push([e, t])) : (n[r][1] = t), this
+	}
+	p.prototype.clear = Ut
+	p.prototype.delete = Dt
+	p.prototype.get = Lt
+	p.prototype.has = Bt
+	p.prototype.set = Jt
+	function v(e) {
+		var t = -1,
+			n = e == undefined ? 0 : e.length
+		for (this.clear(); ++t < n; ) {
+			var r = e[t]
+			this.set(r[0], r[1])
+		}
+	}
+	function Gt() {
+		;(this.size = 0), (this.__data__ = { hash: new _(), map: new (ye || p)(), string: new _() })
+	}
+	function Ht(e) {
+		var t = R(this, e).delete(e)
+		return (this.size -= t ? 1 : 0), t
+	}
+	function Wt(e) {
+		return R(this, e).get(e)
+	}
+	function Vt(e) {
+		return R(this, e).has(e)
+	}
+	function qt(e, t) {
+		var n = R(this, e),
+			r = n.size
+		return n.set(e, t), (this.size += n.size == r ? 0 : 1), this
+	}
+	v.prototype.clear = Gt
+	v.prototype.delete = Ht
+	v.prototype.get = Wt
+	v.prototype.has = Vt
+	v.prototype.set = qt
+	function T(e) {
+		var t = (this.__data__ = new p(e))
+		this.size = t.size
+	}
+	function Kt() {
+		;(this.__data__ = new p()), (this.size = 0)
+	}
+	function Xt(e) {
+		var t = this.__data__,
+			n = t.delete(e)
+		return (this.size = t.size), n
+	}
+	function Yt(e) {
+		return this.__data__.get(e)
+	}
+	function Zt(e) {
+		return this.__data__.has(e)
+	}
+	function Qt(e, t) {
+		var n = this.__data__
+		if (n instanceof p) {
+			var r = n.__data__
+			if (!ye || r.length < Le - 1) return r.push([e, t]), (this.size = ++n.size), this
+			n = this.__data__ = new v(r)
+		}
+		return n.set(e, t), (this.size = n.size), this
+	}
+	T.prototype.clear = Kt
+	T.prototype.delete = Xt
+	T.prototype.get = Yt
+	T.prototype.has = Zt
+	T.prototype.set = Qt
+	function kt(e, t) {
+		var n = G(e),
+			r = !n && J(e),
+			i = !n && !r && we(e),
+			a = !n && !r && !i && Te(e),
+			s = n || r || i || a,
+			o = s ? wt(e.length, String) : [],
+			u = o.length
+		for (var l in e)
+			(t || g.call(e, l)) &&
+				!(
+					s &&
+					(l == "length" ||
+						(i && (l == "offset" || l == "parent")) ||
+						(a && (l == "buffer" || l == "byteLength" || l == "byteOffset")) ||
+						_e(l, u))
+				) &&
+				o.push(l)
+		return o
+	}
+	function L(e, t, n) {
+		;((n !== void 0 && !F(e[t], n)) || (n === void 0 && !(t in e))) && H(e, t, n)
+	}
+	function en(e, t, n) {
+		var r = e[t]
+		;(!(g.call(e, t) && F(r, n)) || (n === void 0 && !(t in e))) && H(e, t, n)
+	}
+	function E(e, t) {
+		for (var n = e.length; n--; ) if (F(e[n][0], t)) return n
+		return -1
+	}
+	function H(e, t, n) {
+		t == "__proto__" && C
+			? C(e, t, { configurable: !0, enumerable: !0, value: n, writable: !0 })
+			: (e[t] = n)
+	}
+	var tn = hn()
+	function M(e) {
+		return e == undefined ? (e === void 0 ? nt : Ze) : m && m in Object(e) ? yn(e) : Tn(e)
+	}
+	function ae(e) {
+		return O(e) && M(e) == ue
+	}
+	function nn(e) {
+		if (!b(e) || wn(e)) return !1
+		var t = q(e) ? At : yt
+		return t.test(Pn(e))
+	}
+	function rn(e) {
+		return O(e) && ve(e.length) && !!f[M(e)]
+	}
+	function an(e) {
+		if (!b(e)) return vn(e)
+		var t = be(e),
+			n = []
+		for (var r in e) (r == "constructor" && (t || !g.call(e, r))) || n.push(r)
+		return n
+	}
+	function me(e, t, n, r, i) {
+		e !== t &&
+			tn(
+				t,
+				function (a, s) {
+					if ((i || (i = new T()), b(a))) sn(e, t, s, n, me, r, i)
+					else {
+						var o = r ? r(B(e, s), a, s + "", e, t, i) : void 0
+						o === void 0 && (o = a), L(e, s, o)
+					}
+				},
+				xe,
+			)
+	}
+	function sn(e, t, n, r, i, a, s) {
+		var o = B(e, n),
+			u = B(t, n),
+			l = s.get(u)
+		if (l) {
+			L(e, n, l)
+			return
+		}
+		var c = a ? a(o, u, n + "", e, t, s) : void 0,
+			d = c === void 0
+		if (d) {
+			var x = G(u),
+				h = !x && we(u),
+				y = !x && !h && Te(u)
+			;(c = u),
+				x || h || y
+					? G(o)
+						? (c = o)
+						: An(o)
+						? (c = gn(o))
+						: h
+						? ((d = !1), (c = ln(u, !0)))
+						: y
+						? ((d = !1), (c = cn(u, !0)))
+						: (c = [])
+					: On(u) || J(u)
+					? ((c = o), J(o) ? (c = jn(o)) : (!b(o) || q(o)) && (c = mn(u)))
+					: (d = !1)
+		}
+		d && (s.set(u, c), i(c, u, r, a, s), s.delete(u)), L(e, n, c)
+	}
+	function on(e, t) {
+		return Sn(xn(e, t, Se), e + "")
+	}
+	var un = C
+		? function (e, t) {
+				return C(e, "toString", { configurable: !0, enumerable: !1, value: In(t), writable: !0 })
+		  }
+		: Se
+	function ln(e, t) {
+		if (t) return [...e]
+		var n = e.length,
+			r = ne ? ne(n) : new e.constructor(n)
+		return e.copy(r), r
+	}
+	function fn(e) {
+		var t = new e.constructor(e.byteLength)
+		return new te(t).set(new te(e)), t
+	}
+	function cn(e, t) {
+		var n = t ? fn(e.buffer) : e.buffer
+		return new e.constructor(n, e.byteOffset, e.length)
+	}
+	function gn(e, t) {
+		var n = -1,
+			r = e.length
+		for (t || (t = Array(r)); ++n < r; ) t[n] = e[n]
+		return t
+	}
+	function pn(e, t, n, r) {
+		var i = !n
+		n || (n = {})
+		for (var a = -1, s = t.length; ++a < s; ) {
+			var o = t[a],
+				u = r ? r(n[o], e[o], o, n, e) : void 0
+			u === void 0 && (u = e[o]), i ? H(n, o, u) : en(n, o, u)
+		}
+		return n
+	}
+	function dn(e) {
+		return on(function (t, n) {
+			var r = -1,
+				i = n.length,
+				a = i > 1 ? n[i - 1] : void 0,
+				s = i > 2 ? n[2] : void 0
+			for (
+				a = e.length > 3 && typeof a == "function" ? (i--, a) : void 0,
+					s && _n(n[0], n[1], s) && ((a = i < 3 ? void 0 : a), (i = 1)),
+					t = Object(t);
+				++r < i;
+
+			) {
+				var o = n[r]
+				o && e(t, o, r, a)
+			}
+			return t
+		})
+	}
+	function hn(e) {
+		return function (t, n, r) {
+			for (var i = -1, a = Object(t), s = r(t), o = s.length; o--; ) {
+				var u = s[e ? o : ++i]
+				if (n(a[u], u, a) === !1) break
+			}
+			return t
+		}
+	}
+	function R(e, t) {
+		var n = e.__data__
+		return bn(t) ? n[typeof t == "string" ? "string" : "hash"] : n.map
+	}
+	function W(e, t) {
+		var n = Tt(e, t)
+		return nn(n) ? n : void 0
+	}
+	function yn(e) {
+		var t = g.call(e, m),
+			n = e[m]
+		try {
+			e[m] = void 0
+			var r = !0
+		} catch {}
+		var i = de.call(e)
+		return r && (t ? (e[m] = n) : delete e[m]), i
+	}
+	function mn(e) {
+		return typeof e.constructor == "function" && !be(e) ? Nt(he(e)) : {}
+	}
+	function _e(e, t) {
+		var n = typeof e
+		return (
+			(t = t ?? oe),
+			!!t && (n == "number" || (n != "symbol" && mt.test(e))) && e > -1 && e % 1 == 0 && e < t
+		)
+	}
+	function _n(e, t, n) {
+		if (!b(n)) return !1
+		var r = typeof t
+		return (r == "number" ? V(n) && _e(t, n.length) : r == "string" && t in n) ? F(n[t], e) : !1
+	}
+	function bn(e) {
+		var t = typeof e
+		return t == "string" || t == "number" || t == "symbol" || t == "boolean"
+			? e !== "__proto__"
+			: e === null
+	}
+	function wn(e) {
+		return !!k && k in e
+	}
+	function be(e) {
+		var t = e && e.constructor,
+			n = (typeof t == "function" && t.prototype) || I
+		return e === n
+	}
+	function vn(e) {
+		var t = []
+		if (e != undefined) for (var n in Object(e)) t.push(n)
+		return t
+	}
+	function Tn(e) {
+		return de.call(e)
+	}
+	function xn(e, t, n) {
+		return (
+			(t = ie(t === void 0 ? e.length - 1 : t, 0)),
+			function () {
+				for (var r = arguments, i = -1, a = ie(r.length - t, 0), s = Array(a); ++i < a; )
+					s[i] = r[t + i]
+				i = -1
+				for (var o = Array(t + 1); ++i < t; ) o[i] = r[i]
+				return (o[t] = n(s)), bt(e, this, o)
+			}
+		)
+	}
+	function B(e, t) {
+		if (!(t === "constructor" && typeof e[t] == "function") && t != "__proto__") return e[t]
+	}
+	var Sn = $n(un)
+	function $n(e) {
+		var t = 0,
+			n = 0
+		return function () {
+			var r = It(),
+				i = Je - (r - n)
+			if (((n = r), i > 0)) {
+				if (++t >= Be) return arguments[0]
+			} else t = 0
+			return e.apply(void 0, arguments)
+		}
+	}
+	function Pn(e) {
+		if (e != undefined) {
+			try {
+				return N.call(e)
+			} catch {}
+			try {
+				return e + ""
+			} catch {}
+		}
+		return ""
+	}
+	function F(e, t) {
+		return e === t || (e !== e && t !== t)
+	}
+	var J = ae(
+			(function () {
+				return arguments
+			})(),
+		)
+			? ae
+			: function (e) {
+					return O(e) && g.call(e, "callee") && !Ot.call(e, "callee")
+			  },
+		G = Array.isArray
+	function V(e) {
+		return e != undefined && ve(e.length) && !q(e)
+	}
+	function An(e) {
+		return O(e) && V(e)
+	}
+	var we = Ct || Nn
+	function q(e) {
+		if (!b(e)) return !1
+		var t = M(e)
+		return t == le || t == Ke || t == He || t == Qe
+	}
+	function ve(e) {
+		return typeof e == "number" && e > -1 && e % 1 == 0 && e <= oe
+	}
+	function b(e) {
+		var t = typeof e
+		return e != undefined && (t == "object" || t == "function")
+	}
+	function O(e) {
+		return e != undefined && typeof e == "object"
+	}
+	function On(e) {
+		if (!O(e) || M(e) != fe) return !1
+		var t = he(e)
+		if (t === null) return !0
+		var n = g.call(t, "constructor") && t.constructor
+		return typeof n == "function" && n instanceof n && N.call(n) == Pt
+	}
+	var Te = Q ? vt(Q) : rn
+	function jn(e) {
+		return pn(e, xe(e))
+	}
+	function xe(e) {
+		return V(e) ? kt(e, !0) : an(e)
+	}
+	var Cn = dn(function (e, t, n) {
+		me(e, t, n)
+	})
+	function In(e) {
+		return function () {
+			return e
+		}
+	}
+	function Se(e) {
+		return e
+	}
+	function Nn() {
+		return !1
+	}
+	w.exports = Cn
+})
+function z(e) {
+	return (t) => (n) => e({ settings: t, env: n })
+}
+function Y(e) {
+	if (e.pathPattern === void 0)
+		throw new Error(
+			"The pathPattern setting must be defined and include the {language} placeholder. An example would be './resources/{language}.json'.",
+		)
+	if (e.pathPattern.includes("{language}") === !1)
+		throw new Error(
+			"The pathPattern setting must be defined and include the {language} placeholder. An example would be './resources/{language}.json'.",
+		)
+	if (e.pathPattern.endsWith(".json") === !1)
+		throw new Error(
+			"The pathPattern setting must end with '.json'. An example would be './resources/{language}.json'.",
+		)
+}
+var je = De($e(), 1),
+	En = z(({ settings: e, env: t }) => ({
+		id: "samuelstroschein.inlangPluginJson",
+		async config() {
+			return (
+				Y(e),
+				{
+					languages: await Ce({ $fs: t.$fs, settings: e }),
+					readResources: async (n) => Mn({ ...n, $fs: t.$fs, settings: e }),
+					writeResources: async (n) => Fn({ ...n, $fs: t.$fs, settings: e }),
+				}
+			)
+		},
+	}))
+async function Ce(e) {
+	let [t, n] = e.settings.pathPattern.split("{language}"),
+		r = await e.$fs.readdir(t),
+		i = []
+	for (let a of r)
+		if (a.includes("."))
+			a.endsWith(".json") &&
+				!e.settings.ignore?.some((s) => s === a) &&
+				i.push(a.replace(".json", ""))
+		else {
+			let s = await e.$fs.readdir(`${t}${a}`)
+			if (s.length === 0) i.push(a)
+			else
+				for (let o of s)
+					o.endsWith(".json") &&
+						!e.settings.ignore?.some((u) => u === a) &&
+						!i.includes(a) &&
+						i.push(a)
+		}
+	return i
+}
+async function Mn(e) {
+	let t = [],
+		n = await Ce(e)
+	for (let r of n) {
+		let i = e.settings.pathPattern.replace("{language}", r)
+		try {
+			let a = await e.$fs.readFile(i, { encoding: "utf-8" }),
+				s = Ae(await e.$fs.readFile(i, { encoding: "utf-8" })),
+				o = K(JSON.parse(a)),
+				u = {}
+			o.map((l) => {
+				u = { ...u, [l.id]: { value: l.value, parents: l.parents, keyName: l.keyName } }
+			}),
+				t.push(Pe(u, r, s, e.settings.variableReferencePattern))
+		} catch {
+			let a = {},
+				s = `${i.replace("/*.json", "")}`,
+				o = await e.$fs.readdir(s),
+				u = o.length === 0 ? 2 : Ae(await e.$fs.readFile(`${s}/${o[0]}`, { encoding: "utf-8" }))
+			if (o.length !== 0)
+				for (let l of o) {
+					let c = await e.$fs.readFile(`${s}/${l}`, { encoding: "utf-8" }),
+						d = l.replace(".json", ""),
+						x = K(JSON.parse(c), [], d),
+						h = {}
+					x.map((y) => {
+						h = {
+							...h,
+							[y.id]: { value: y.value, parents: y.parents, fileName: d, keyName: y.keyName },
+						}
+					}),
+						(a = { ...a, ...h })
+				}
+			t.push(Pe(a, r, u, e.settings.variableReferencePattern))
+		}
+	}
+	return t
+}
+function Pe(e, t, n, r) {
+	return {
+		type: "Resource",
+		metadata: { space: n },
+		languageTag: { type: "LanguageTag", name: t },
+		body: Object.entries(e).map(([i, a]) => Rn(i, a, r)),
+	}
+}
+function Rn(e, t, n) {
+	let r =
+			n &&
+			(n[1] ? new RegExp(`(\\${n[0]}[^\\${n[1]}]+\\${n[1]})`, "g") : new RegExp(`(${n}\\w+)`, "g")),
+		i = []
+	if (r) {
+		let a = t.value.split(r)
+		for (let s = 0; s < a.length; s++)
+			r.test(a[s])
+				? i.push({
+						type: "Placeholder",
+						body: {
+							type: "VariableReference",
+							name: n[1] ? a[s].slice(n[0].length, n[1].length * -1) : a[s].slice(n[0].length),
+						},
+				  })
+				: a[s] !== "" && i.push({ type: "Text", value: a[s] })
+	} else i.push({ type: "Text", value: t.value })
+	return {
+		type: "Message",
+		metadata: {
+			...(t.fileName !== void 0 && { fileName: t.fileName }),
+			...(t.parents !== void 0 && { parentKeys: t.parents }),
+			...(t.keyName !== void 0 && { keyName: t.keyName }),
+		},
+		id: { type: "Identifier", name: e },
+		pattern: { type: "Pattern", elements: i },
+	}
+}
+var K = (e, t = [], n) => {
+		let r = []
+		if (typeof e == "string")
+			r.push({
+				value: e,
+				parents: t.length > 1 ? t.slice(0, -1) : void 0,
+				id: n ? n + "." + t.join(".") : t.join("."),
+				keyName: t.at(-1),
+			})
+		else if (typeof e == "object" && e !== null) {
+			for (let i in e)
+				if (e.hasOwnProperty(i)) {
+					let a = [...t, i],
+						s = K(e[i], a, n)
+					r.push(...s)
+				}
+		}
+		return r
+	},
+	Ae = (e) => {
+		let t = [
+			{ spacing: 1, regex: /^{\n {1}[^ ]+.*$/m },
+			{ spacing: 2, regex: /^{\n {2}[^ ]+.*$/m },
+			{ spacing: 3, regex: /^{\n {3}[^ ]+.*$/m },
+			{ spacing: 4, regex: /^{\n {4}[^ ]+.*$/m },
+			{ spacing: 6, regex: /^{\n {6}[^ ]+.*$/m },
+			{ spacing: 8, regex: /^{\n {8}[^ ]+.*$/m },
+			{ spacing: "	", regex: /^{\n\t[^ ]+.*$/m },
+		]
+		for (let { spacing: n, regex: r } of t) if (r.test(e)) return n
+		return 2
+	}
+async function Fn(e) {
+	for (let t of e.resources) {
+		let n = e.settings.pathPattern.replace("{language}", t.languageTag.name),
+			r = t.metadata?.space || 2
+		if (t.body.length === 0)
+			n.split(t.languageTag.name.toString())[1].includes("/")
+				? (await e.$fs.mkdir(n.replace(n.split(t.languageTag.name.toString())[1].toString(), "")),
+				  n.includes("/*.json") || (await e.$fs.writeFile(n, JSON.stringify({}, null, r))))
+				: await e.$fs.writeFile(n, JSON.stringify({}, null, r))
+		else if (n.includes("/*.json")) {
+			let i = t.body.length === 0 ? {} : JSON.parse(JSON.stringify(t.body)),
+				a = []
+			i.map((s) => {
+				s.metadata?.fileName
+					? s.metadata?.fileName &&
+					  !a.includes(s.metadata?.fileName) &&
+					  a.push(s.metadata?.fileName)
+					: a.push(s.id.name.split(".")[0])
+			})
+			for (let s of a) {
+				let o = i
+						.filter((l) => l.id.name.startsWith(s))
+						.map((l) => ({ ...l, id: { ...l.id, name: l.id.name.replace(`${s}.`, "") } })),
+					u = { type: t.type, languageTag: t.languageTag, body: o }
+				await e.$fs.writeFile(n.replace("*", s), Oe(u, r, e.settings.variableReferencePattern))
+			}
+		} else await e.$fs.writeFile(n, Oe(t, r, e.settings.variableReferencePattern))
+	}
+}
+function Oe(e, t, n) {
+	let r = {}
+	return (
+		e.body.forEach((i) => {
+			let a = zn(i, n)
+			;(0, je.default)(r, a)
+		}),
+		JSON.stringify(r, null, t)
+	)
+}
+var zn = (e, t) => {
+		let n = []
+		for (let a of e.pattern.elements)
+			a.type === "Text" || !t
+				? n.push(a.value)
+				: a.type === "Placeholder" &&
+				  (t[1] ? n.push(`${t[0]}${a.body.name}${t[1]}`) : n.push(`${t[0]}${a.body.name}`))
+		let r = n.join(""),
+			i = {}
+		return (
+			e.metadata?.keyName
+				? Ie(i, e.metadata?.parentKeys, e.metadata?.keyName, r)
+				: e.metadata?.fileName
+				? (i[e.id.name.split(".").slice(1).join(".")] = r)
+				: (i[e.id.name] = r),
+			i
+		)
+	},
+	Ie = (e, t, n, r) => {
+		!t || t.length === 0
+			? (e[n] = r)
+			: t.length === 1
+			? (e[t[0]] = { [n]: r })
+			: (e[t[0]] || (e[t[0]] = {}), Ie(e[t[0]], t.slice(1), n, r))
+	}
+export { En as default }
+/*! Bundled license information:
+
+@inlang/core/dist/plugin/pluginBuildConfig.js:
+  (*! DON'T TOP-LEVEL IMPORT ESBUILD PLUGINS. USE DYNAMIC IMPORTS. *)
+  (*! See https://github.com/inlang/inlang/issues/486 *)
+*/
diff --git a/source-code/ide-extension/src/services/inlang-environment/implementation/$import.test.ts b/source-code/ide-extension/src/services/inlang-environment/implementation/$import.test.ts
new file mode 100644
index 0000000000..5fb0162b44
--- /dev/null
+++ b/source-code/ide-extension/src/services/inlang-environment/implementation/$import.test.ts
@@ -0,0 +1,50 @@
+import { it, expect, afterAll } from "vitest"
+import fs from "node:fs"
+import { $import } from "./$import.js"
+
+const currentDirectoryPath = new URL(import.meta.url).pathname.replace(/\/[^/]+$/, "/")
+const tempdir = fs.mkdtempSync(currentDirectoryPath)
+
+afterAll(() => {
+	fs.rmSync(tempdir, { recursive: true, force: true })
+})
+
+it("should transpile esm to cjs code which can then be imported with require", async () => {
+	fs.writeFileSync(
+		`${tempdir}/testfile1.js`,
+		`
+    export default function name() {
+      return "Inlang"
+    }
+    export function hello(x) {
+      return "Hello " + x
+    }
+  `,
+		{ encoding: "utf8" },
+	)
+	const module = await $import(`${tempdir}/testfile1.js`)
+	expect(module.default()).toBe("Inlang")
+	expect(module.hello("World")).toBe("Hello World")
+})
+
+it("should throw if the imported file is invalid", async () => {
+	fs.writeFileSync(`${tempdir}/testfile2.js`, `export invalid function name()`, {
+		encoding: "utf8",
+	})
+	expect($import(`${tempdir}/testfile2.js`)).rejects.toThrow()
+})
+
+it("should be able to import an inlang plugin", async () => {
+	const module = await $import(`${currentDirectoryPath}/$import.test.plugin.js`)
+	const pluginAfterSetup = module.default()()
+	expect(pluginAfterSetup.id).toBe("samuelstroschein.inlangPluginJson")
+})
+
+it("should be able to import an inlang plugin from http", async () => {
+	// using a permalink to an inlang plugin
+	const module = await $import(
+		"https://raw.githubusercontent.com/samuelstroschein/inlang-plugin-json/3e322bf01763fc6d8c9f9f9489be889ae96ca6f2/dist/index.js",
+	)
+	const pluginAfterSetup = module.default()()
+	expect(pluginAfterSetup.id).toBe("samuelstroschein.inlangPluginJson")
+})
diff --git a/source-code/ide-extension/src/services/inlang-environment/implementation/$import.ts b/source-code/ide-extension/src/services/inlang-environment/implementation/$import.ts
new file mode 100644
index 0000000000..80fded0b24
--- /dev/null
+++ b/source-code/ide-extension/src/services/inlang-environment/implementation/$import.ts
@@ -0,0 +1,39 @@
+import { normalizePath } from "@inlang-git/fs"
+import type { $import as InlangEnvironment$import } from "@inlang/core/environment"
+import fetch from "node-fetch"
+import fs from "node:fs/promises"
+import ts from "typescript"
+import requireFromString from "require-from-string"
+
+export const $import: InlangEnvironment$import = async (uri: string) => {
+	// polyfill for environments that don't support dynamic
+	// http imports yet like VSCode.
+	const moduleAsText = uri.startsWith("http")
+		? await (await fetch(uri)).text()
+		: ((await fs.readFile(normalizePath(uri), { encoding: "utf-8" })) as string)
+	try {
+		const asCjs = transpileToCjs(moduleAsText)
+		const module = requireFromString(asCjs)
+		// for whatever reason, the default export is a function
+		// that we need to call to get the property
+		// if (module.default) {
+		// 	module.default = module.default()
+		// }
+		return module
+	} catch (error) {
+		throw new Error(
+			`Error while importing ${uri}: ${(error as Error)?.message ?? "Unknown error"}`,
+			{ cause: error },
+		)
+	}
+}
+
+function transpileToCjs(code: string): string {
+	const compilerOptions: ts.CompilerOptions = {
+		module: ts.ModuleKind.CommonJS,
+		target: ts.ScriptTarget.ES2020,
+	}
+
+	const result = ts.transpileModule(code, { compilerOptions })
+	return result.outputText
+}
diff --git a/source-code/ide-extension/src/services/inlang-environment/implementation/createEnvironment.ts b/source-code/ide-extension/src/services/inlang-environment/implementation/createEnvironment.ts
new file mode 100644
index 0000000000..09b4d1d0ae
--- /dev/null
+++ b/source-code/ide-extension/src/services/inlang-environment/implementation/createEnvironment.ts
@@ -0,0 +1,16 @@
+import type { InlangEnvironment } from "@inlang/core/environment"
+import { $import } from "./$import.js"
+import { createFileSystemMapper } from "./createFileSystemMapper.js"
+import * as vscode from "vscode"
+
+/**
+ * Creates a new inlang environment.
+ */
+export function createInlangEnv(args: {
+	workspaceFolder: vscode.WorkspaceFolder
+}): InlangEnvironment {
+	return {
+		$import,
+		$fs: createFileSystemMapper(vscode.workspace.fs, args.workspaceFolder.uri),
+	}
+}
diff --git a/source-code/ide-extension/src/utils/createFileSystemMapper.ts b/source-code/ide-extension/src/services/inlang-environment/implementation/createFileSystemMapper.ts
similarity index 86%
rename from source-code/ide-extension/src/utils/createFileSystemMapper.ts
rename to source-code/ide-extension/src/services/inlang-environment/implementation/createFileSystemMapper.ts
index 18a2eba042..60cebad500 100644
--- a/source-code/ide-extension/src/utils/createFileSystemMapper.ts
+++ b/source-code/ide-extension/src/services/inlang-environment/implementation/createFileSystemMapper.ts
@@ -21,7 +21,10 @@ export function createFileSystemMapper(
 			return new TextDecoder().decode(rawFile)
 		},
 		writeFile: async (file, data) => {
-			return target.writeFile(vscode.Uri.joinPath(base, file), new TextEncoder().encode(data))
+			return target.writeFile(
+				vscode.Uri.joinPath(base, file),
+				typeof data === "string" ? new TextEncoder().encode(data) : data,
+			)
 		},
 		mkdir: async (path) => {
 			return target.createDirectory(vscode.Uri.joinPath(base, path)) as unknown as
diff --git a/source-code/ide-extension/src/services/inlang-environment/implementation/importInlangConfig.ts b/source-code/ide-extension/src/services/inlang-environment/implementation/importInlangConfig.ts
new file mode 100644
index 0000000000..a1f89551df
--- /dev/null
+++ b/source-code/ide-extension/src/services/inlang-environment/implementation/importInlangConfig.ts
@@ -0,0 +1,11 @@
+import type { InlangConfigModule } from "@inlang/core/config"
+import { $import } from "./$import.js"
+
+/**
+ * Imports the inlang config from the given path.
+ *
+ * Under the hood, this function transpiles the config to CommonJS and then imports it.
+ */
+export async function importInlangConfig(path: string): Promise<InlangConfigModule> {
+	return await $import(path)
+}
diff --git a/source-code/ide-extension/src/services/inlang-environment/index.ts b/source-code/ide-extension/src/services/inlang-environment/index.ts
new file mode 100644
index 0000000000..5a9cdcda7a
--- /dev/null
+++ b/source-code/ide-extension/src/services/inlang-environment/index.ts
@@ -0,0 +1,3 @@
+export { createInlangEnv } from "./implementation/createEnvironment.js"
+export { $import } from "./implementation/$import.js"
+export { importInlangConfig } from "./implementation/importInlangConfig.js"
diff --git a/source-code/ide-extension/src/utils/$import.ts b/source-code/ide-extension/src/utils/$import.ts
deleted file mode 100644
index 8fa37d76a4..0000000000
--- a/source-code/ide-extension/src/utils/$import.ts
+++ /dev/null
@@ -1,152 +0,0 @@
-import { dedent } from "ts-dedent"
-import path from "node:path"
-import ts from "typescript"
-import * as vscode from "vscode"
-import fsExtra from "fs-extra"
-import type { $fs } from "@inlang/core/environment"
-import { normalizePath } from "@inlang-git/fs"
-import type fetch from "node-fetch"
-
-/**
- * Importing ES modules either from a local path, or from a url.
- *
- * The imported module must be ESM. A good indicator is whether
- * the "type" property in a package.json is set to "module" if
- * node is used.
- *
- * Read more on https://inlang.com/documentation/config
- */
-//
-// - explitcly export the interface of $import to be consumed
-//   in the config with JSdoc.
-//
-// - not using ReturnType or FunctionArguments to increase DX
-//   when hovering over the type.
-
-export type $import = (uri: string) => Promise<any>
-
-/**
- * Initializes the $import function.
- *
- * @example
- * const $import = initialize$import({ fs: fs, fetch });
- * const module = await $import('./some-module.js');
- */
-export function initialize$import(args: {
-	/** the fs from which the file can be read */
-	fs: $fs
-	/** http client implementation */
-	fetch: typeof fetch
-}): (uri: string) => ReturnType<typeof $import> {
-	// resembles a native import api
-	return (uri: string) => $import(uri, args)
-}
-
-/**
- * Error thrown when the $import function fails.
- *
- * Dedicated class to make it easier to identify this error.
- */
-class $ImportError extends Error {
-	constructor(message: string) {
-		super(message)
-		this.name = "$ImportError"
-	}
-}
-
-/**
- * Importing ES modules either from a local path, or from a url.
- *
- * The imported module must be ESM. A good indicator is whether
- * the "type" property in a package.json is set to "module" if
- * node is used.
- *
- * Read more on https://inlang.com/documentation/config
- */
-async function $import(
-	uri: string,
-	environment: {
-		/** the fs from which the file can be read */
-		fs: $fs
-		/** http client implementation */
-		fetch: typeof fetch
-	},
-): Promise<any> {
-	// avoiding browser built-in shadowing of fetch as global variable
-	const _fetch = environment.fetch
-	// polyfill for environments that don't support dynamic
-	// http imports yet like VSCode.
-	const moduleAsText = uri.startsWith("http")
-		? await (await _fetch(uri)).text()
-		: ((await environment.fs.readFile(normalizePath(uri), { encoding: "utf-8" })) as string)
-	try {
-		return await transpile$import(/* @vite-ignore */ moduleAsText)
-	} catch (error) {
-		let message = `Error while importing ${uri}: ${(error as Error)?.message ?? "Unknown error"}`
-		if (error instanceof SyntaxError && uri.includes("jsdelivr")) {
-			message += dedent`\n\n
-Are you sure that the file exists on JSDelivr?
-
-The error indicates that the imported file does not exist on JSDelivr. For non-existent files, JSDelivr returns a 404 text that JS cannot parse as a module and throws a SyntaxError.
-			`
-		}
-		throw new $ImportError(message)
-	}
-}
-
-// Custom $import function
-export const transpile$import = async (code: string): Promise<any> => {
-	// Read the code from the module path
-	// const code = await vscode.workspace.fs.readFile(vscode.Uri.file(modulePath))
-
-	// Transpile the code to CommonJS
-	const transpiledCode = transpileCode(code.toString())
-
-	// Create the .inlang folder if it doesn't exist
-	const inlangFolder = ".inlang"
-	const rootFolder = vscode.workspace.workspaceFolders?.[0]
-
-	if (!rootFolder) {
-		// Handle root folder not found
-		console.error("No workspace folder found.")
-		return undefined
-	}
-
-	const folderUri = rootFolder.uri.with({ path: path.join(rootFolder.uri.path, inlangFolder) })
-
-	try {
-		await vscode.workspace.fs.createDirectory(folderUri)
-	} catch (error) {
-		// Handle folder creation error
-		console.error("Failed to create .inlang folder:", error)
-		return undefined
-	}
-
-	// Generate a random file name
-	const tempFileName = `${Math.random().toString(36).slice(7)}.cjs`
-	const tempFilePath = folderUri.with({ path: path.join(folderUri.path, tempFileName) })
-
-	// Write the transpiled code to a temporary file
-	await vscode.workspace.fs.writeFile(tempFilePath, Buffer.from(transpiledCode))
-
-	// Use require to load the transpiled code
-	// eslint-disable-next-line @typescript-eslint/no-var-requires
-	const module = require(tempFilePath.fsPath)
-
-	// Clean up the temporary file and folder
-	await vscode.workspace.fs.delete(tempFilePath)
-	await fsExtra.remove(folderUri.fsPath)
-
-	return module
-}
-
-// Transpile code to CommonJS using TypeScript Compiler API
-function transpileCode(code: string): string {
-	const compilerOptions: ts.CompilerOptions = {
-		module: ts.ModuleKind.CommonJS,
-		target: ts.ScriptTarget.ES2015,
-	}
-
-	const result = ts.transpileModule(code, { compilerOptions })
-	return result.outputText
-}
diff --git a/source-code/ide-extension/tsconfig.json b/source-code/ide-extension/tsconfig.json
index b44c431018..d5bcd1ba6c 100644
--- a/source-code/ide-extension/tsconfig.json
+++ b/source-code/ide-extension/tsconfig.json
@@ -7,6 +7,7 @@
 		// Not specifying node16 causes https://github.com/rollup/plugins/issues/1224#issuecomment-1242109375
 		// interestingly, extending a base config taht contains module node16 still requires explicit manual
 		// setting of module node16 here.
-		"module": "Node16"
+		"module": "Node16",
+		"resolveJsonModule": true
 	}
 }