diff --git a/src/common/uri.ts b/src/common/uri.ts
index e7970e98af..dfe954370e 100644
--- a/src/common/uri.ts
+++ b/src/common/uri.ts
@@ -701,6 +701,27 @@ export function fromOpenIssueWebviewUri(uri: vscode.Uri): OpenIssueWebviewUriPar
 		return;
 	}
 	try {
+		// Check if the query uses the simplified format: uri=https://github.com/owner/repo/issues/number
+		const queryParams = new URLSearchParams(uri.query);
+		const uriParam = queryParams.get('uri');
+		if (uriParam) {
+			const issueUrlRegex = /^https?:\/\/github\.com\/(?<owner>[^\/]+)\/(?<repo>[^\/]+)\/issues\/(?<issueNumber>\d+)$/;
+			const match = issueUrlRegex.exec(uriParam);
+			if (match && match.groups) {
+				const { owner, repo, issueNumber } = match.groups;
+				const params = {
+					owner,
+					repo,
+					issueNumber: parseInt(issueNumber, 10)
+				};
+				if (!validateOpenWebviewParams(params.owner, params.repo, params.issueNumber.toString())) {
+					return;
+				}
+				return params;
+			}
+		}
+
+		// Fall back to the old JSON format for backward compatibility
 		const query = JSON.parse(uri.query.split('&')[0]);
 		if (!validateOpenWebviewParams(query.owner, query.repo, query.issueNumber)) {
 			return;
diff --git a/src/test/common/uri.test.ts b/src/test/common/uri.test.ts
index bde856e8a4..bf4551a25b 100644
--- a/src/test/common/uri.test.ts
+++ b/src/test/common/uri.test.ts
@@ -5,7 +5,7 @@
 
 import { default as assert } from 'assert';
 import * as vscode from 'vscode';
-import { fromOpenOrCheckoutPullRequestWebviewUri } from '../../common/uri';
+import { fromOpenIssueWebviewUri, fromOpenOrCheckoutPullRequestWebviewUri } from '../../common/uri';
 
 describe('uri', () => {
 	describe('fromOpenOrCheckoutPullRequestWebviewUri', () => {
@@ -128,4 +128,68 @@ describe('uri', () => {
 			assert.strictEqual(result?.pullRequestNumber, 123);
 		});
 	});
+
+	describe('fromOpenIssueWebviewUri', () => {
+		it('should parse the new simplified format with uri parameter', () => {
+			const uri = vscode.Uri.parse('vscode://github.vscode-pull-request-github/open-issue-webview?uri=https://github.com/microsoft/vscode-tools/issues/964');
+			const result = fromOpenIssueWebviewUri(uri);
+
+			assert.strictEqual(result?.owner, 'microsoft');
+			assert.strictEqual(result?.repo, 'vscode-tools');
+			assert.strictEqual(result?.issueNumber, 964);
+		});
+
+		it('should parse the new simplified format with http (not https)', () => {
+			const uri = vscode.Uri.parse('vscode://github.vscode-pull-request-github/open-issue-webview?uri=http://github.com/owner/repo/issues/123');
+			const result = fromOpenIssueWebviewUri(uri);
+
+			assert.strictEqual(result?.owner, 'owner');
+			assert.strictEqual(result?.repo, 'repo');
+			assert.strictEqual(result?.issueNumber, 123);
+		});
+
+		it('should parse the old JSON format for backward compatibility', () => {
+			const uri = vscode.Uri.parse('vscode://github.vscode-pull-request-github/open-issue-webview?%7B%22owner%22%3A%22microsoft%22%2C%22repo%22%3A%22vscode-tools%22%2C%22issueNumber%22%3A964%7D');
+			const result = fromOpenIssueWebviewUri(uri);
+
+			assert.strictEqual(result?.owner, 'microsoft');
+			assert.strictEqual(result?.repo, 'vscode-tools');
+			assert.strictEqual(result?.issueNumber, 964);
+		});
+
+		it('should return undefined for invalid authority', () => {
+			const uri = vscode.Uri.parse('vscode://invalid-authority/open-issue-webview?uri=https://github.com/owner/repo/issues/1');
+			const result = fromOpenIssueWebviewUri(uri);
+
+			assert.strictEqual(result, undefined);
+		});
+
+		it('should return undefined for invalid path', () => {
+			const uri = vscode.Uri.parse('vscode://github.vscode-pull-request-github/invalid-path?uri=https://github.com/owner/repo/issues/1');
+			const result = fromOpenIssueWebviewUri(uri);
+
+			assert.strictEqual(result, undefined);
+		});
+
+		it('should return undefined for non-github host', () => {
+			const uri = vscode.Uri.parse('vscode://github.vscode-pull-request-github/open-issue-webview?uri=https://example.com/owner/repo/issues/1');
+			const result = fromOpenIssueWebviewUri(uri);
+
+			assert.strictEqual(result, undefined);
+		});
+
+		it('should return undefined for non-numeric issue number', () => {
+			const uri = vscode.Uri.parse('vscode://github.vscode-pull-request-github/open-issue-webview?uri=https://github.com/owner/repo/issues/abc');
+			const result = fromOpenIssueWebviewUri(uri);
+
+			assert.strictEqual(result, undefined);
+		});
+
+		it('should reject URLs with extra path segments after issue number', () => {
+			const uri = vscode.Uri.parse('vscode://github.vscode-pull-request-github/open-issue-webview?uri=https://github.com/owner/repo/issues/123/something');
+			const result = fromOpenIssueWebviewUri(uri);
+
+			assert.strictEqual(result, undefined);
+		});
+	});
 });