diff --git a/src/vs/workbench/api/node/extHostExtensionService.ts b/src/vs/workbench/api/node/extHostExtensionService.ts
index 92cf46521041b..dac895f46bb03 100644
--- a/src/vs/workbench/api/node/extHostExtensionService.ts
+++ b/src/vs/workbench/api/node/extHostExtensionService.ts
@@ -23,7 +23,7 @@ import nodeModule from 'node:module';
 import { assertType } from '../../../base/common/types.js';
 import { generateUuid } from '../../../base/common/uuid.js';
 import { BidirectionalMap } from '../../../base/common/map.js';
-import { DisposableStore, toDisposable } from '../../../base/common/lifecycle.js';
+import { DisposableStore } from '../../../base/common/lifecycle.js';
 
 const require = nodeModule.createRequire(import.meta.url);
 
@@ -75,43 +75,12 @@ class NodeModuleRequireInterceptor extends RequireInterceptor {
 	}
 }
 
-class NodeModuleESMInterceptor extends RequireInterceptor {
+class NodeModuleInterceptor extends RequireInterceptor {
 
 	private static _createDataUri(scriptContent: string): string {
 		return `data:text/javascript;base64,${Buffer.from(scriptContent).toString('base64')}`;
 	}
 
-	// This string is a script that runs in the loader thread of NodeJS.
-	private static _loaderScript = `
-	let lookup;
-	export const initialize = async (context) => {
-		let requestIds = 0;
-		const { port } = context;
-		const pendingRequests = new Map();
-		port.onmessage = (event) => {
-			const { id, url } = event.data;
-			pendingRequests.get(id)?.(url);
-		};
-		lookup = url => {
-			// debugger;
-			const myId = requestIds++;
-			return new Promise((resolve) => {
-				pendingRequests.set(myId, resolve);
-				port.postMessage({ id: myId, url, });
-			});
-		};
-	};
-	export const resolve = async (specifier, context, nextResolve) => {
-		if (specifier !== 'vscode' || !context.parentURL) {
-			return nextResolve(specifier, context);
-		}
-		const otherUrl = await lookup(context.parentURL);
-		return {
-			url: otherUrl,
-			shortCircuit: true,
-		};
-	};`;
-
 	private static _vscodeImportFnName = `_VSCODE_IMPORT_VSCODE_API`;
 
 	private readonly _store = new DisposableStore();
@@ -121,14 +90,11 @@ class NodeModuleESMInterceptor extends RequireInterceptor {
 	}
 
 	protected override _installInterceptor(): void {
-
-		type Message = { id: string; url: string };
-
 		const apiInstances = new BidirectionalMap<typeof vscode, string>();
 		const apiImportDataUrl = new Map<string, string>();
 
 		// define a global function that can be used to get API instances given a random key
-		Object.defineProperty(globalThis, NodeModuleESMInterceptor._vscodeImportFnName, {
+		Object.defineProperty(globalThis, NodeModuleInterceptor._vscodeImportFnName, {
 			enumerable: false,
 			configurable: false,
 			writable: false,
@@ -137,16 +103,9 @@ class NodeModuleESMInterceptor extends RequireInterceptor {
 			}
 		});
 
-		const { port1, port2 } = new MessageChannel();
-
 		let apiModuleFactory: INodeModuleFactory | undefined;
 
-		// this is a workaround for the fact that the layer checker does not understand
-		// that onmessage is NodeJS API here
-		const port1LayerCheckerWorkaround: any = port1;
-
-		port1LayerCheckerWorkaround.onmessage = (e: { data: Message }) => {
-
+		const lookup = (url: string): string => {
 			// Get the vscode-module factory - which is the same logic that's also used by
 			// the CommonJS require interceptor
 			if (!apiModuleFactory) {
@@ -154,7 +113,6 @@ class NodeModuleESMInterceptor extends RequireInterceptor {
 				assertType(apiModuleFactory);
 			}
 
-			const { id, url } = e.data;
 			const uri = URI.parse(url);
 
 			// Get or create the API instance. The interface is per extension and extensions are
@@ -169,27 +127,25 @@ class NodeModuleESMInterceptor extends RequireInterceptor {
 			// Create and cache a data-url which is the import script for the API instance
 			let scriptDataUrlSrc = apiImportDataUrl.get(key);
 			if (!scriptDataUrlSrc) {
-				const jsCode = `const _vscodeInstance = globalThis.${NodeModuleESMInterceptor._vscodeImportFnName}('${key}');\n\n${Object.keys(apiInstance).map((name => `export const ${name} = _vscodeInstance['${name}'];`)).join('\n')}`;
-				scriptDataUrlSrc = NodeModuleESMInterceptor._createDataUri(jsCode);
+				const jsCode = `const _vscodeInstance = globalThis.${NodeModuleInterceptor._vscodeImportFnName}('${key}');\n\n${Object.keys(apiInstance).map((name => `export const ${name} = _vscodeInstance['${name}'];`)).join('\n')}`;
+				scriptDataUrlSrc = NodeModuleInterceptor._createDataUri(jsCode);
 				apiImportDataUrl.set(key, scriptDataUrlSrc);
 			}
-
-			port1.postMessage({
-				id,
-				url: scriptDataUrlSrc
-			});
+			return scriptDataUrlSrc;
 		};
-
-		nodeModule.register(NodeModuleESMInterceptor._createDataUri(NodeModuleESMInterceptor._loaderScript), {
-			parentURL: import.meta.url,
-			data: { port: port2 },
-			transferList: [port2],
+		nodeModule.registerHooks({
+			resolve: (specifier, context, nextResolve) => {
+				if (specifier !== 'vscode' || !context.parentURL) {
+					return nextResolve(specifier, context);
+				}
+				console.log('ESM resolve', specifier, context);
+				const otherUrl = lookup(context.parentURL);
+				return {
+					url: otherUrl,
+					shortCircuit: true,
+				};
+			},
 		});
-
-		this._store.add(toDisposable(() => {
-			port1.close();
-			port2.close();
-		}));
 	}
 }
 
@@ -216,12 +172,17 @@ export class ExtHostExtensionService extends AbstractExtHostExtensionService {
 		// Register local file system shortcut
 		this._instaService.createInstance(ExtHostDiskFileSystemProvider);
 
-		// Module loading tricks
+		// Module loading tricks based on `module._load`.
+		// `module._load` intercepts `require(...)`.
 		await this._instaService.createInstance(NodeModuleRequireInterceptor, extensionApiFactory, { mine: this._myRegistry, all: this._globalRegistry })
 			.install();
 
-		// ESM loading tricks
-		await this._store.add(this._instaService.createInstance(NodeModuleESMInterceptor, extensionApiFactory, { mine: this._myRegistry, all: this._globalRegistry }))
+		// Module loading tricks based on `module.registerHooks`.
+		// `module.registerHooks` is a generic interceptor that intercepts `require(...)`, `import ...`, and `import(...)`.
+		// However, at this time, `NodeModuleInterceptor` only intercepts `import 'vscode'` and `import('vscode')`.
+		// This can also intercept `require('vscode')`, but interception by `NodeModuleRequireInterceptor` takes precedence.
+		// In the future, we can consider migrating all interception logic to `NodeModuleInterceptor` and removing `NodeModuleRequireInterceptor`.
+		await this._store.add(this._instaService.createInstance(NodeModuleInterceptor, extensionApiFactory, { mine: this._myRegistry, all: this._globalRegistry }))
 			.install();
 
 		performance.mark('code/extHost/didInitAPI');