diff --git a/tools/lsp/vscode-plugin/.vscode/launch.json b/tools/lsp/vscode-plugin/.vscode/launch.json
new file mode 100644
index 000000000..08bd36376
--- /dev/null
+++ b/tools/lsp/vscode-plugin/.vscode/launch.json
@@ -0,0 +1,17 @@
+{
+    "version": "0.2.0",
+    "configurations": [
+        {
+            "type": "extensionHost",
+            "request": "launch",
+            "name": "Launch Client",
+            "runtimeExecutable": "${execPath}",
+            "args": ["--extensionDevelopmentPath=${workspaceRoot}"],
+            "outFiles": ["${workspaceRoot}/client/out/**/*.js"],
+            "preLaunchTask": {
+                "type": "npm",
+                "script": "watch"
+            }
+        }
+    ]
+}
diff --git a/tools/lsp/vscode-plugin/.vscode/settings.json b/tools/lsp/vscode-plugin/.vscode/settings.json
new file mode 100644
index 000000000..f5251c3c6
--- /dev/null
+++ b/tools/lsp/vscode-plugin/.vscode/settings.json
@@ -0,0 +1,5 @@
+{
+    "editor.insertSpaces": true,
+    "typescript.tsc.autoDetect": "off",
+    "typescript.preferences.quoteStyle": "single"
+}
diff --git a/tools/lsp/vscode-plugin/.vscode/tasks.json b/tools/lsp/vscode-plugin/.vscode/tasks.json
new file mode 100644
index 000000000..9ac6a44d7
--- /dev/null
+++ b/tools/lsp/vscode-plugin/.vscode/tasks.json
@@ -0,0 +1,33 @@
+{
+    "version": "2.0.0",
+    "tasks": [
+        {
+            "type": "npm",
+            "script": "compile",
+            "group": "build",
+            "presentation": {
+                "panel": "dedicated",
+                "reveal": "never"
+            },
+            "problemMatcher": [
+                "$tsc"
+            ]
+        },
+        {
+            "type": "npm",
+            "script": "watch",
+            "isBackground": true,
+            "group": {
+                "kind": "build",
+                "isDefault": true
+            },
+            "presentation": {
+                "panel": "dedicated",
+                "reveal": "never"
+            },
+            "problemMatcher": [
+                "$tsc-watch"
+            ]
+        }
+    ]
+}
diff --git a/tools/lsp/vscode-plugin/.vscodeignore b/tools/lsp/vscode-plugin/.vscodeignore
new file mode 100644
index 000000000..2ca7fc371
--- /dev/null
+++ b/tools/lsp/vscode-plugin/.vscodeignore
@@ -0,0 +1,14 @@
+.vscode/**
+**/*.ts
+**/*.map
+.gitignore
+**/tsconfig.json
+**/tsconfig.base.json
+contributing.md
+.travis.yml
+client/node_modules/**
+!client/node_modules/vscode-jsonrpc/**
+!client/node_modules/vscode-languageclient/**
+!client/node_modules/vscode-languageserver-protocol/**
+!client/node_modules/vscode-languageserver-types/**
+!client/node_modules/semver/**
diff --git a/tools/lsp/vscode-plugin/README.md b/tools/lsp/vscode-plugin/README.md
new file mode 100644
index 000000000..692f1cfe7
--- /dev/null
+++ b/tools/lsp/vscode-plugin/README.md
@@ -0,0 +1,36 @@
+# LIGO VSCode Plugin
+
+This plugin is an LSP implementation for the LIGO language family.
+
+Currently, it is highly experimental and may contain bugs. On MacOS and Windows, only syntax highlighting is supported yet.
+
+## Functionality
+Code navigation
+
+- [x] Jump to definition
+- [x] Find references
+- [x] Folding range
+- [ ] Selection range
+- [ ] Jump to type definition
+- [ ] Document symbols
+- [ ] Workspace symbols
+- [ ] Document highlights
+
+Diagnostics
+
+- [x] Parser diagnostics
+- [ ] Extended diagnostics
+
+Code editing
+
+- [ ] Hover suggestions
+- [ ] Code actions (refactor, rename, etc.)
+- [x] Code completion for variable names
+- [ ] Code completion for record fields and constructors
+- [ ] Signature help
+
+Formatting
+
+- [ ] Whole document formatting
+- [ ] On-type formatting
+- [ ] Document range formatting
diff --git a/tools/lsp/vscode-plugin/client/package-lock.json b/tools/lsp/vscode-plugin/client/package-lock.json
new file mode 100644
index 000000000..c89836e9f
--- /dev/null
+++ b/tools/lsp/vscode-plugin/client/package-lock.json
@@ -0,0 +1,41 @@
+{
+    "name": "ligo-lsp-client",
+    "version": "0.1.0",
+    "lockfileVersion": 1,
+    "requires": true,
+    "dependencies": {
+        "@types/vscode": {
+            "version": "1.47.0",
+            "resolved": "https://registry.npmjs.org/@types/vscode/-/vscode-1.47.0.tgz",
+            "integrity": "sha512-nJA37ykkz9FYA0ZOQUSc3OZnhuzEW2vUhUEo4MiduUo82jGwwcLfyvmgd/Q7b0WrZAAceojGhZybg319L24bTA==",
+            "dev": true
+        },
+        "vscode-jsonrpc": {
+            "version": "5.0.1",
+            "resolved": "https://registry.npmjs.org/vscode-jsonrpc/-/vscode-jsonrpc-5.0.1.tgz",
+            "integrity": "sha512-JvONPptw3GAQGXlVV2utDcHx0BiY34FupW/kI6mZ5x06ER5DdPG/tXWMVHjTNULF5uKPOUUD0SaXg5QaubJL0A=="
+        },
+        "vscode-languageclient": {
+            "version": "4.4.2",
+            "resolved": "https://registry.npmjs.org/vscode-languageclient/-/vscode-languageclient-4.4.2.tgz",
+            "integrity": "sha512-9TUzsg1UM6n1UEyPlWbDf7tK1wJAK7UGFRmGDN8sz4KmbbDiVRh6YicaB/5oRSVTpuV47PdJpYlOl3SJ0RiK1Q==",
+            "requires": {
+                "vscode-languageserver-protocol": "^3.10.3"
+            }
+        },
+        "vscode-languageserver-protocol": {
+            "version": "3.15.3",
+            "resolved": "https://registry.npmjs.org/vscode-languageserver-protocol/-/vscode-languageserver-protocol-3.15.3.tgz",
+            "integrity": "sha512-zrMuwHOAQRhjDSnflWdJG+O2ztMWss8GqUUB8dXLR/FPenwkiBNkMIJJYfSN6sgskvsF0rHAoBowNQfbyZnnvw==",
+            "requires": {
+                "vscode-jsonrpc": "^5.0.1",
+                "vscode-languageserver-types": "3.15.1"
+            }
+        },
+        "vscode-languageserver-types": {
+            "version": "3.15.1",
+            "resolved": "https://registry.npmjs.org/vscode-languageserver-types/-/vscode-languageserver-types-3.15.1.tgz",
+            "integrity": "sha512-+a9MPUQrNGRrGU630OGbYVQ+11iOIovjCkqxajPa9w57Sd5ruK8WQNsslzpa0x/QJqC8kRc2DUxWjIFwoNm4ZQ=="
+        }
+    }
+}
diff --git a/tools/lsp/vscode-plugin/client/package.json b/tools/lsp/vscode-plugin/client/package.json
new file mode 100644
index 000000000..062ccf02b
--- /dev/null
+++ b/tools/lsp/vscode-plugin/client/package.json
@@ -0,0 +1,21 @@
+{
+    "name": "ligo-lsp-client",
+    "description": "VSCode language server client for LIGO",
+    "author": "Serokell",
+    "license": "MIT",
+    "version": "0.1.0",
+    "publisher": "LigoLang",
+    "repository": {
+        "type": "git",
+        "url": "https://gitlab.com/ligolang/ligo"
+    },
+    "engines": {
+        "vscode": "^1.23.0"
+    },
+    "dependencies": {
+        "vscode-languageclient": "^4.1.4"
+    },
+    "devDependencies": {
+        "@types/vscode": "^1.47.0"
+    }
+}
diff --git a/tools/lsp/vscode-plugin/client/src/extension.ts b/tools/lsp/vscode-plugin/client/src/extension.ts
new file mode 100644
index 000000000..81dc395fc
--- /dev/null
+++ b/tools/lsp/vscode-plugin/client/src/extension.ts
@@ -0,0 +1,54 @@
+/* --------------------------------------------------------------------------------------------
+ * Copyright (c) Microsoft Corporation. All rights reserved.
+ * Licensed under the MIT License. See License.txt in the project root for license information.
+ * ------------------------------------------------------------------------------------------ */
+
+import * as path from 'path';
+import { ExtensionContext } from 'vscode';
+
+import {
+    LanguageClient,
+    LanguageClientOptions,
+    ServerOptions,
+    TransportKind
+} from 'vscode-languageclient';
+
+let client: LanguageClient;
+
+export function activate(context: ExtensionContext) {
+    let serverOptions: ServerOptions = {
+       command: `${context.extensionPath}/bin/squirrel`
+    };
+
+    // Options to control the language client
+    let clientOptions: LanguageClientOptions = {
+        // Register the server for plain text documents
+        documentSelector: [
+            { scheme: 'file', language: 'ligo' },
+            { scheme: 'file', language: 'religo' }
+        ],
+        synchronize: {
+            // Notify the server about file changes to '.clientrc files contained in the workspace
+	    // fileEvents: workspace.createFileSystemWatcher('**/.clientrc')
+        }
+    };
+
+    // Create the language client and start the client.
+    client = new LanguageClient(
+        'ligoLanguageServer',
+        'LIGO Language Server',
+        serverOptions,
+        clientOptions
+    );
+
+    console.log('Starting the client...')
+    // Start the client. This will also launch the server
+    client.start();
+}
+
+export function deactivate(): Thenable<void> | undefined {
+    if (!client) {
+        return undefined;
+    }
+    return client.stop();
+}
diff --git a/tools/lsp/vscode-plugin/client/tsconfig.json b/tools/lsp/vscode-plugin/client/tsconfig.json
new file mode 100644
index 000000000..4506f7235
--- /dev/null
+++ b/tools/lsp/vscode-plugin/client/tsconfig.json
@@ -0,0 +1,11 @@
+{
+    "compilerOptions": {
+        "module": "commonjs",
+        "target": "es6",
+        "outDir": "out",
+        "rootDir": "src",
+        "sourceMap": true
+    },
+    "include": ["src"],
+    "exclude": ["node_modules", ".vscode-test"]
+}
diff --git a/tools/lsp/vscode-plugin/logo.png b/tools/lsp/vscode-plugin/logo.png
new file mode 100644
index 000000000..bae9ac7f7
Binary files /dev/null and b/tools/lsp/vscode-plugin/logo.png differ
diff --git a/tools/lsp/vscode-plugin/package-lock.json b/tools/lsp/vscode-plugin/package-lock.json
new file mode 100644
index 000000000..2419cd5c8
--- /dev/null
+++ b/tools/lsp/vscode-plugin/package-lock.json
@@ -0,0 +1,317 @@
+{
+    "name": "ligo-vscode",
+    "version": "0.1.0",
+    "lockfileVersion": 1,
+    "requires": true,
+    "dependencies": {
+        "@babel/code-frame": {
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+            "dev": true,
+            "requires": {
+                "@babel/highlight": "^7.0.0"
+            }
+        },
+        "@babel/highlight": {
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+            "resolved": "https://registry.npmjs.org/@babel/highlight/-/highlight-7.0.0.tgz",
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+            "dev": true,
+            "requires": {
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+                "esutils": "^2.0.2",
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+            }
+        },
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diff --git a/tools/lsp/vscode-plugin/package.json b/tools/lsp/vscode-plugin/package.json
new file mode 100644
index 000000000..7890ef574
--- /dev/null
+++ b/tools/lsp/vscode-plugin/package.json
@@ -0,0 +1,78 @@
+{
+    "name": "ligo-vscode",
+    "description": "LIGO VSCode extension includes syntax highlighting, and a language server for LIGO.",
+    "author": "Serokell",
+    "license": "MIT",
+    "version": "0.1.0",
+    "repository": {
+        "type": "git",
+        "url": "https://gitlab.com/ligolang/ligo"
+    },
+    "publisher": "LigoLang",
+    "categories": [
+        "Programming Languages"
+    ],
+    "keywords": [],
+    "engines": {
+        "vscode": "^1.43.0"
+    },
+    "activationEvents": [
+        "onLanguage:ligo",
+        "onLanguage:mligo",
+        "onLanguage:religo"
+    ],
+    "icon": "logo.png",
+    "main": "./client/out/extension",
+    "contributes": {
+        "languages": [
+            {
+                "id": "ligo",
+                "aliases": ["PascaLIGO"],
+                "extensions": ["ligo"],
+                "configuration": "./syntaxes/ligo.configuration.json"
+            },
+            {
+                "id": "religo",
+                "aliases": ["ReasonLIGO"],
+                "extensions": ["religo"],
+                "configuration": "./syntaxes/religo.configuration.json"
+            }
+        ],
+        "grammars": [
+            {
+                "language": "ligo",
+                "scopeName": "source.ligo",
+                "path": "./syntaxes/ligo.tmLanguage.json"
+            },
+            {
+                "language": "religo",
+                "scopeName": "source.religo",
+                "path": "./syntaxes/religo.tmLanguage.json"
+            }
+        ],
+        "configuration": {
+            "type": "object",
+            "title": "LIGO LSP Configuration",
+            "properties": {
+                "ligoLanguageServer.maxNumberOfProblems": {
+                    "scope": "resource",
+                    "type": "number",
+                    "default": 100,
+                    "description": "Controls the maximum number of problems produced by the server."
+                }
+            }
+        }
+    },
+    "scripts": {
+        "vscode:prepublish": "npm run compile",
+        "compile": "tsc -b",
+        "watch": "tsc -b -w",
+        "postinstall": "cd client && npm install && cd .."
+    },
+    "devDependencies": {
+        "@types/node": "^8.10.52",
+        "tslint": "^5.16.0",
+        "typescript": "next"
+    },
+    "dependencies": {}
+}
diff --git a/tools/lsp/vscode-plugin/syntaxes/ligo.configuration.json b/tools/lsp/vscode-plugin/syntaxes/ligo.configuration.json
new file mode 100644
index 000000000..e7df28b9f
--- /dev/null
+++ b/tools/lsp/vscode-plugin/syntaxes/ligo.configuration.json
@@ -0,0 +1,29 @@
+{
+    "comments": {
+        "lineComment": "//",
+        "blockComment": [ "(*", "*)" ]
+    },
+    "brackets": [
+        ["{", "}"],
+        ["[", "]"],
+        ["(", ")"]
+    ],
+    "autoClosingPairs": [
+        ["{", "}"],
+        ["[", "]"],
+        ["(", ")"],
+        ["\"", "\""],
+        ["'", "'"],
+        ["(*", "*)"],
+        ["begin", "end"]
+    ],
+    "surroundingPairs": [
+        ["{", "}"],
+        ["[", "]"],
+        ["(", ")"],
+        ["\"", "\""],
+        ["'", "'"],
+        ["(*", "*)"],
+        ["begin", "end"]
+    ]
+}
diff --git a/tools/lsp/vscode-plugin/syntaxes/ligo.tmLanguage.json b/tools/lsp/vscode-plugin/syntaxes/ligo.tmLanguage.json
new file mode 100644
index 000000000..b13d3c515
--- /dev/null
+++ b/tools/lsp/vscode-plugin/syntaxes/ligo.tmLanguage.json
@@ -0,0 +1,103 @@
+{
+    "$schema": "https://raw.githubusercontent.com/martinring/tmlanguage/master/tmlanguage.json",
+    "name": "ligo",
+    "patterns": [
+        { "include": "#controlkeywords" },
+        { "include": "#function" },
+        { "include": "#strings" },
+        { "include": "#comment" },
+        { "include": "#multilineComment" },
+        { "include": "#singlequotes" },
+        { "include": "#type" },
+        { "include": "#typeDeclaration" },
+        { "include": "#otherkeywords" },
+        { "include": "#variableInit" },
+        { "include": "#variableDeclaration" }
+    ],
+    "repository": {
+        "controlkeywords": {
+            "patterns": [{
+                "name": "keyword.control.ligo",
+                "match": "\\b(if|while|for|return|nil|remove|from|else|then|None|Some|True|False|Unit|skip)\\b"
+            }]
+        },
+        "otherkeywords": {
+            "patterns": [{
+                "name": "keyword.other.ligo",
+                "match": "\\b(case|with|is|function|var|const|type|end|begin|block|sender|source|amount|balance|now)\\b"
+            }]
+        },
+        "function": {
+            "patterns": [
+                {
+                    "name": "entity.name.function.ligo",
+                    "match": "(?!with\\b)\\b\\w+ ?(?=\\()"
+                }
+            ]
+        },
+        "strings": {
+            "name": "string.quoted.double.ligo",
+            "begin": "\"",
+            "end": "\"",
+            "patterns": [
+                {
+                    "name": "constant.character.escape.ligo",
+                    "match": "\\\\."
+                }
+            ]
+        },
+        "singlequotes" : {
+            "name": "string.quoted.single.ligo",
+            "begin": "\\'",
+            "end": "\\'",
+            "patterns" : []
+        },
+        "comment": {
+            "patterns": [
+                {
+                    "name": "comment.line.double-slash.ligo",
+                    "match": "(//.*)"
+                }
+            ]
+        },
+        "multilineComment" : {
+            "name" : "comment.line.double-slash.ligo",
+            "begin" : "\\(\\*",
+            "end" : "\\*\\)",
+            "patterns" : []
+        },
+        "type" : {
+            "patterns" : [
+                {
+                    "name" : "support.type.ligo",
+                    "match": "\\b(bool|int|unit|string|nat|tez|map|timestamp|signature|key|big_map|list|set|record|address|option)\\b"
+                }
+            ]
+        },
+        "typeDeclaration" : {
+            "patterns" : [
+                {
+                    "name" : "support.type.ligo",
+                    "match": "\\w+ ?(?= is )"
+                }
+            ]
+        },
+        "variableInit" : {
+            "patterns" : [
+                {
+                    "name" : "support.variable.ligo",
+                    "match": "\\w+ ?(?=\\:\\=)"
+                }
+            ]
+        },
+        "variableDeclaration" : {
+            "patterns" : [
+                {
+                    "name" : "support.variable.ligo",
+                    "match": "\\w+ ?(?=\\:)"
+                }
+            ]
+        }
+    },
+    "scopeName": "source.ligo"
+}
diff --git a/tools/lsp/vscode-plugin/syntaxes/religo.configuration.json b/tools/lsp/vscode-plugin/syntaxes/religo.configuration.json
new file mode 100644
index 000000000..98b2e769a
--- /dev/null
+++ b/tools/lsp/vscode-plugin/syntaxes/religo.configuration.json
@@ -0,0 +1,25 @@
+{
+    "comments": {
+        "lineComment": "//",
+        "blockComment": [ "/*", "*/" ]
+    },
+    "brackets": [
+        ["{", "}"],
+        ["[", "]"],
+        ["(", ")"]
+    ],
+    "autoClosingPairs": [
+        ["{", "}"],
+        ["[", "]"],
+        ["(", ")"],
+        ["\"", "\""],
+        ["'", "'"]
+    ],
+    "surroundingPairs": [
+        ["{", "}"],
+        ["[", "]"],
+        ["(", ")"],
+        ["\"", "\""],
+        ["'", "'"]
+    ]
+}
diff --git a/tools/lsp/vscode-plugin/syntaxes/religo.tmLanguage.json b/tools/lsp/vscode-plugin/syntaxes/religo.tmLanguage.json
new file mode 100644
index 000000000..19108d6f5
--- /dev/null
+++ b/tools/lsp/vscode-plugin/syntaxes/religo.tmLanguage.json
@@ -0,0 +1,94 @@
+{
+    "$schema": "https://raw.githubusercontent.com/martinring/tmlanguage/master/tmlanguage.json",
+    "name": "religo",
+    "scopeName": "source.religo",
+    "patterns": [
+        { "include": "#controlkeywords" },
+        { "include": "#strings" },
+        { "include": "#comment" },
+        { "include": "#multilineComment" },
+        { "include": "#singlequotes" },
+        { "include": "#type" },
+        { "include": "#typeDeclaration" },
+        { "include": "#otherkeywords" },
+        { "include": "#variableInit" },
+        { "include": "#variableDeclaration" }
+    ],
+    "repository": {
+        "controlkeywords": {
+            "patterns": [{
+                "name": "keyword.control.religo",
+                "match": "\\b(if|then|else|remove|from|None|Some|true|false|skip)\\b"
+            }]
+        },
+        "otherkeywords": {
+            "patterns": [{
+                "name": "keyword.other.religo",
+                "match": "\\b(let|rec|switch|type|sender|source|amount|balance|now)\\b"
+            }]
+        },
+        "strings": {
+            "name": "string.quoted.double.religo",
+            "begin": "\"",
+            "end": "\"",
+            "patterns": [
+                {
+                    "name": "constant.character.escape.religo",
+                    "match": "\\\\."
+                }
+            ]
+        },
+        "singlequotes" : {
+            "name": "string.quoted.single.religo",
+            "begin": "'",
+            "end": "'",
+            "patterns" : []
+        },
+        "comment": {
+            "patterns": [
+                {
+                    "name": "comment.line.double-slash.religo",
+                    "match": "(//.*)"
+                }
+            ]
+        },
+        "multilineComment" : {
+            "name" : "comment.line.double-slash.religo",
+            "begin" : "/\\*",
+            "end" : "\\*/",
+            "patterns" : []
+        },
+        "type" : {
+            "patterns" : [
+                {
+                    "name" : "support.type.religo",
+                    "match": "\\b(bool|int|unit|string|nat|tez|map|timestamp|signature|key|big_map|list|set|record|address|option)\\b"
+                }
+            ]
+        },
+        "typeDeclaration" : {
+            "patterns" : [
+                {
+                    "name" : "support.type.religo",
+                    "match": "(?=type +)\\w+? +(?=\\=)"
+                }
+            ]
+        },
+        "variableInit" : {
+            "patterns" : [
+                {
+                    "name" : "support.variable.religo",
+                    "match": "(?=let +)\\w+(?= +\\:\\=)"
+                }
+            ]
+        },
+        "variableDeclaration" : {
+            "patterns" : [
+                {
+                    "name" : "support.variable.religo",
+                    "match": "\\w+(?= +\\:)"
+                }
+            ]
+        }
+    }
+}
diff --git a/tools/lsp/vscode-plugin/tsconfig.json b/tools/lsp/vscode-plugin/tsconfig.json
new file mode 100644
index 000000000..8780b70b7
--- /dev/null
+++ b/tools/lsp/vscode-plugin/tsconfig.json
@@ -0,0 +1,19 @@
+{
+    "compilerOptions": {
+        "module": "commonjs",
+        "target": "es6",
+        "outDir": "out",
+        "rootDir": "src",
+        "sourceMap": true
+    },
+    "include": [
+        "src"
+    ],
+    "exclude": [
+        "node_modules",
+        ".vscode-test"
+    ],
+    "references": [
+        { "path": "./client" }
+    ]
+}