diff --git a/crates/task/src/vscode_format.rs b/crates/task/src/vscode_format.rs
index 15afd3c63a..e8941f0efc 100644
--- a/crates/task/src/vscode_format.rs
+++ b/crates/task/src/vscode_format.rs
@@ -59,6 +59,7 @@ impl<'de> serde::Deserialize<'de> for VsCodeTaskDefinition {
 enum Command {
     Npm {
         script: String,
+        path: Option<String>,
     },
     Shell {
         command: String,
@@ -72,7 +73,7 @@ enum Command {
 
 fn generate_label(command: &Option<Command>) -> String {
     match command {
-        Some(Command::Npm { script }) => format!("npm: {}", script),
+        Some(Command::Npm { script, .. }) => format!("npm: {}", script),
         Some(Command::Gulp { task }) => format!("gulp: {}", task),
         Some(Command::Shell { command, .. }) => {
             if command.trim().is_empty() {
@@ -105,10 +106,16 @@ impl VsCodeTaskDefinition {
             bail!("Missing `type` field in task");
         };
 
-        let (command, args) = match command {
-            Command::Npm { script } => ("npm".to_owned(), vec!["run".to_string(), script]),
-            Command::Shell { command, args } => (command, args),
-            Command::Gulp { task } => ("gulp".to_owned(), vec![task]),
+        let (command, args, cwd) = match command {
+            Command::Npm { script, path } => (
+                "npm".to_owned(),
+                vec!["run".to_string(), script],
+                path.map(|path| {
+                    format!("{}/{}", VariableName::WorktreeRoot.template_value(), path)
+                }),
+            ),
+            Command::Shell { command, args } => (command, args, None),
+            Command::Gulp { task } => ("gulp".to_owned(), vec![task], None),
         };
         // Per VSC docs, only `command`, `args` and `options` support variable substitution.
         let command = replacer.replace(&command);
@@ -117,10 +124,13 @@ impl VsCodeTaskDefinition {
             label: self.label,
             command,
             args,
+            cwd: cwd.map(|cwd| replacer.replace(&cwd)),
             ..TaskTemplate::default()
         };
         if let Some(options) = self.options {
-            template.cwd = options.cwd.map(|cwd| replacer.replace(&cwd));
+            if let Some(cwd) = options.cwd {
+                template.cwd = Some(replacer.replace(&cwd));
+            }
             template.env = options.env;
         }
         Ok(Some(template))
@@ -213,49 +223,87 @@ mod tests {
     }
 
     #[test]
-    fn can_deserialize_ts_tasks() {
-        const TYPESCRIPT_TASKS: &str = include_str!("../test_data/typescript.json");
-        let vscode_definitions: VsCodeTaskFile =
-            serde_json_lenient::from_str(TYPESCRIPT_TASKS).unwrap();
+    fn can_deserialize_gulp_tasks() {
+        const GULP_TASKS: &str = include_str!("../test_data/tasks-gulp.json");
+        let vscode_definitions: VsCodeTaskFile = serde_json_lenient::from_str(GULP_TASKS).unwrap();
+
+        let expected = vec![VsCodeTaskDefinition {
+            label: "gulp: build tests".to_string(),
+            command: Some(Command::Gulp {
+                task: "build".to_string(),
+            }),
+            other_attributes: Default::default(),
+            options: None,
+        }];
+
+        assert_eq!(vscode_definitions.tasks.len(), expected.len());
+        vscode_definitions
+            .tasks
+            .iter()
+            .zip(expected)
+            .for_each(|(lhs, rhs)| compare_without_other_attributes(lhs.clone(), rhs));
+
+        let expected = vec![TaskTemplate {
+            label: "gulp: build tests".to_string(),
+            command: "gulp".to_string(),
+            args: vec!["build".to_string()],
+            ..Default::default()
+        }];
+
+        let tasks: TaskTemplates = vscode_definitions.try_into().unwrap();
+        assert_eq!(tasks.0, expected);
+    }
+
+    #[test]
+    fn can_deserialize_npm_tasks() {
+        const NPM_TASKS: &str = include_str!("../test_data/tasks-npm.json");
+        let vscode_definitions: VsCodeTaskFile = serde_json_lenient::from_str(NPM_TASKS).unwrap();
 
         let expected = vec![
             VsCodeTaskDefinition {
-                label: "gulp: tests".to_string(),
+                label: "With env".to_string(),
                 command: Some(Command::Npm {
-                    script: "build:tests:notypecheck".to_string(),
+                    script: "build".to_string(),
+                    path: None,
+                }),
+                other_attributes: Default::default(),
+                options: Some(super::TaskOptions {
+                    cwd: None,
+                    env: HashMap::from_iter([("NODE_ENV".to_string(), "production".to_string())]),
+                }),
+            },
+            VsCodeTaskDefinition {
+                label: "With path".to_string(),
+                command: Some(Command::Npm {
+                    script: "build".to_string(),
+                    path: Some("packages/components".to_string()),
                 }),
                 other_attributes: Default::default(),
                 options: None,
             },
             VsCodeTaskDefinition {
-                label: "tsc: watch ./src".to_string(),
-                command: Some(Command::Shell {
-                    command: "node".to_string(),
-                    args: vec![
-                        "${workspaceFolder}/node_modules/typescript/lib/tsc.js".to_string(),
-                        "--build".to_string(),
-                        "${workspaceFolder}/src".to_string(),
-                        "--watch".to_string(),
-                    ],
+                label: "With cwd".to_string(),
+                command: Some(Command::Npm {
+                    script: "build".to_string(),
+                    path: None,
                 }),
                 other_attributes: Default::default(),
-                options: None,
+                options: Some(super::TaskOptions {
+                    cwd: Some("${workspaceFolder}/packages/app".to_string()),
+                    env: Default::default(),
+                }),
             },
             VsCodeTaskDefinition {
-                label: "npm: build:compiler".to_string(),
+                label: "With path and cwd".to_string(),
                 command: Some(Command::Npm {
-                    script: "build:compiler".to_string(),
+                    script: "build".to_string(),
+                    path: Some("packages/components".to_string()),
                 }),
                 other_attributes: Default::default(),
-                options: None,
-            },
-            VsCodeTaskDefinition {
-                label: "npm: build:tests".to_string(),
-                command: Some(Command::Npm {
-                    script: "build:tests:notypecheck".to_string(),
+                options: Some(super::TaskOptions {
+                    cwd: Some("${workspaceFolder}/packages/app".to_string()),
+                    env: Default::default(),
                 }),
-                other_attributes: Default::default(),
-                options: None,
             },
         ];
 
@@ -268,13 +316,87 @@ mod tests {
 
         let expected = vec![
             TaskTemplate {
-                label: "gulp: tests".to_string(),
+                label: "With env".to_string(),
                 command: "npm".to_string(),
-                args: vec!["run".to_string(), "build:tests:notypecheck".to_string()],
+                args: vec!["run".to_string(), "build".to_string()],
+                env: HashMap::from_iter([("NODE_ENV".to_string(), "production".to_string())]),
                 ..Default::default()
             },
             TaskTemplate {
-                label: "tsc: watch ./src".to_string(),
+                label: "With path".to_string(),
+                command: "npm".to_string(),
+                args: vec!["run".to_string(), "build".to_string()],
+                cwd: Some("$ZED_WORKTREE_ROOT/packages/components".to_string()),
+                ..Default::default()
+            },
+            TaskTemplate {
+                label: "With cwd".to_string(),
+                command: "npm".to_string(),
+                args: vec!["run".to_string(), "build".to_string()],
+                cwd: Some("${ZED_WORKTREE_ROOT}/packages/app".to_string()),
+                ..Default::default()
+            },
+            TaskTemplate {
+                label: "With path and cwd".to_string(),
+                command: "npm".to_string(),
+                args: vec!["run".to_string(), "build".to_string()],
+                cwd: Some("${ZED_WORKTREE_ROOT}/packages/app".to_string()),
+                ..Default::default()
+            },
+        ];
+        let tasks: TaskTemplates = vscode_definitions.try_into().unwrap();
+        assert_eq!(tasks.0, expected);
+    }
+
+    #[test]
+    fn can_deserialize_shell_tasks() {
+        const SHELL_TASKS: &str = include_str!("../test_data/tasks-shell.json");
+        let vscode_definitions: VsCodeTaskFile = serde_json_lenient::from_str(SHELL_TASKS).unwrap();
+        let expected = vec![
+            VsCodeTaskDefinition {
+                label: "Without args".to_string(),
+                command: Some(Command::Shell {
+                    command: "cargo build --package rust-analyzer".to_string(),
+                    args: Default::default(),
+                }),
+                options: None,
+                other_attributes: Default::default(),
+            },
+            VsCodeTaskDefinition {
+                label: "With args".to_string(),
+                command: Some(Command::Shell {
+                    command: "node".to_string(),
+                    args: vec![
+                        "${workspaceFolder}/node_modules/typescript/lib/tsc.js".to_string(),
+                        "--build".to_string(),
+                        "${workspaceFolder}/src".to_string(),
+                        "--watch".to_string(),
+                    ],
+                }),
+                options: None,
+                other_attributes: Default::default(),
+            },
+            VsCodeTaskDefinition {
+                label: "Ignored task without type".to_string(),
+                command: None,
+                options: None,
+                other_attributes: Default::default(),
+            },
+        ];
+        assert_eq!(vscode_definitions.tasks.len(), expected.len());
+        vscode_definitions
+            .tasks
+            .iter()
+            .zip(expected)
+            .for_each(|(lhs, rhs)| compare_without_other_attributes(lhs.clone(), rhs));
+        let expected = vec![
+            TaskTemplate {
+                label: "Without args".to_string(),
+                command: "cargo build --package rust-analyzer".to_string(),
+                ..Default::default()
+            },
+            TaskTemplate {
+                label: "With args".to_string(),
                 command: "node".to_string(),
                 args: vec![
                     "${ZED_WORKTREE_ROOT}/node_modules/typescript/lib/tsc.js".to_string(),
@@ -284,20 +406,7 @@ mod tests {
                 ],
                 ..Default::default()
             },
-            TaskTemplate {
-                label: "npm: build:compiler".to_string(),
-                command: "npm".to_string(),
-                args: vec!["run".to_string(), "build:compiler".to_string()],
-                ..Default::default()
-            },
-            TaskTemplate {
-                label: "npm: build:tests".to_string(),
-                command: "npm".to_string(),
-                args: vec!["run".to_string(), "build:tests:notypecheck".to_string()],
-                ..Default::default()
-            },
         ];
-
         let tasks: TaskTemplates = vscode_definitions.try_into().unwrap();
         assert_eq!(tasks.0, expected);
     }
@@ -312,6 +421,7 @@ mod tests {
                 label: "Build Extension in Background".to_string(),
                 command: Some(Command::Npm {
                     script: "watch".to_string(),
+                    path: Some("editors/code/".to_string()),
                 }),
                 options: None,
                 other_attributes: Default::default(),
@@ -320,6 +430,7 @@ mod tests {
                 label: "Build Extension".to_string(),
                 command: Some(Command::Npm {
                     script: "build".to_string(),
+                    path: Some("editors/code/".to_string()),
                 }),
                 options: None,
                 other_attributes: Default::default(),
@@ -346,6 +457,7 @@ mod tests {
                 label: "Pretest".to_string(),
                 command: Some(Command::Npm {
                     script: "pretest".to_string(),
+                    path: Some("editors/code/".to_string()),
                 }),
                 options: None,
                 other_attributes: Default::default(),
@@ -374,12 +486,14 @@ mod tests {
                 label: "Build Extension in Background".to_string(),
                 command: "npm".to_string(),
                 args: vec!["run".to_string(), "watch".to_string()],
+                cwd: Some("$ZED_WORKTREE_ROOT/editors/code/".to_string()),
                 ..Default::default()
             },
             TaskTemplate {
                 label: "Build Extension".to_string(),
                 command: "npm".to_string(),
                 args: vec!["run".to_string(), "build".to_string()],
+                cwd: Some("$ZED_WORKTREE_ROOT/editors/code/".to_string()),
                 ..Default::default()
             },
             TaskTemplate {
@@ -396,6 +510,7 @@ mod tests {
                 label: "Pretest".to_string(),
                 command: "npm".to_string(),
                 args: vec!["run".to_string(), "pretest".to_string()],
+                cwd: Some("$ZED_WORKTREE_ROOT/editors/code/".to_string()),
                 ..Default::default()
             },
         ];
@@ -420,7 +535,8 @@ mod tests {
     fn test_generate_label() {
         assert_eq!(
             generate_label(&Some(Command::Npm {
-                script: "start".to_string()
+                script: "start".to_string(),
+                path: None,
             })),
             "npm: start"
         );
diff --git a/crates/task/test_data/tasks-gulp.json b/crates/task/test_data/tasks-gulp.json
new file mode 100644
index 0000000000..ff965cf02a
--- /dev/null
+++ b/crates/task/test_data/tasks-gulp.json
@@ -0,0 +1,10 @@
+{
+  "version": "2.0.0",
+  "tasks": [
+    {
+      "label": "gulp: build tests",
+      "type": "gulp",
+      "task": "build"
+    }
+  ]
+}
diff --git a/crates/task/test_data/tasks-npm.json b/crates/task/test_data/tasks-npm.json
new file mode 100644
index 0000000000..c25a1c3532
--- /dev/null
+++ b/crates/task/test_data/tasks-npm.json
@@ -0,0 +1,38 @@
+{
+  "version": "2.0.0",
+  "tasks": [
+    {
+      "label": "With env",
+      "type": "npm",
+      "script": "build",
+      "options": {
+        "env": {
+          "NODE_ENV": "production"
+        }
+      }
+    },
+    {
+      "label": "With path",
+      "type": "npm",
+      "script": "build",
+      "path": "packages/components"
+    },
+    {
+      "label": "With cwd",
+      "type": "npm",
+      "script": "build",
+      "options": {
+        "cwd": "${workspaceFolder}/packages/app"
+      }
+    },
+    {
+      "label": "With path and cwd",
+      "type": "npm",
+      "script": "build",
+      "path": "packages/components",
+      "options": {
+        "cwd": "${workspaceFolder}/packages/app"
+      }
+    }
+  ]
+}
diff --git a/crates/task/test_data/tasks-shell.json b/crates/task/test_data/tasks-shell.json
new file mode 100644
index 0000000000..ceabab3ff7
--- /dev/null
+++ b/crates/task/test_data/tasks-shell.json
@@ -0,0 +1,29 @@
+{
+  "version": "2.0.0",
+  "tasks": [
+    {
+      "label": "Without args",
+      "group": "build",
+      "type": "shell",
+      "command": "cargo build --package rust-analyzer",
+      "problemMatcher": "$rustc"
+    },
+    {
+      "label": "With args",
+      "type": "shell",
+      "command": "node",
+      "args": [
+        "${workspaceFolder}/node_modules/typescript/lib/tsc.js",
+        "--build",
+        "${workspaceFolder}/src",
+        "--watch"
+      ],
+      "group": "build"
+    },
+    {
+      "label": "Ignored task without type",
+      "dependsOn": ["Without args", "With args"],
+      "problemMatcher": "$rustc"
+    }
+  ]
+}
diff --git a/crates/task/test_data/typescript.json b/crates/task/test_data/typescript.json
deleted file mode 100644
index 91d2343682..0000000000
--- a/crates/task/test_data/typescript.json
+++ /dev/null
@@ -1,51 +0,0 @@
-{
-  // See https://go.microsoft.com/fwlink/?LinkId=733558
-  // for the documentation about the tasks.json format
-  "version": "2.0.0",
-  "tasks": [
-    {
-      // Kept for backwards compat for old launch.json files so it's
-      // less annoying if moving up to the new build or going back to
-      // the old build.
-      //
-      // This is first because the actual "npm: build:tests" task
-      // below has the same script value, and VS Code ignores labels
-      // and deduplicates them.
-      // https://github.com/microsoft/vscode/issues/93001
-      "label": "gulp: tests",
-      "type": "npm",
-      "script": "build:tests:notypecheck",
-      "group": "build",
-      "hide": true,
-      "problemMatcher": ["$tsc"]
-    },
-    {
-      "label": "tsc: watch ./src",
-      "type": "shell",
-      "command": "node",
-      "args": [
-        "${workspaceFolder}/node_modules/typescript/lib/tsc.js",
-        "--build",
-        "${workspaceFolder}/src",
-        "--watch"
-      ],
-      "group": "build",
-      "isBackground": true,
-      "problemMatcher": ["$tsc-watch"]
-    },
-    {
-      "label": "npm: build:compiler",
-      "type": "npm",
-      "script": "build:compiler",
-      "group": "build",
-      "problemMatcher": ["$tsc"]
-    },
-    {
-      "label": "npm: build:tests",
-      "type": "npm",
-      "script": "build:tests:notypecheck",
-      "group": "build",
-      "problemMatcher": ["$tsc"]
-    }
-  ]
-}