diff --git a/.vscode/settings.json b/.vscode/settings.json
index a777efbd..be3aebd1 100644
--- a/.vscode/settings.json
+++ b/.vscode/settings.json
@@ -11,7 +11,7 @@
     // Turn off tsc task auto detection since we have the necessary tasks as npm scripts
     "typescript.tsc.autoDetect": "off",
     "editor.formatOnSave": true,
-    "[typescript]": {
+    "[typescript][json][jsonc]": {
         "editor.defaultFormatter": "esbenp.prettier-vscode",
         "editor.codeActionsOnSave": {
             "source.organizeImports": "explicit"
diff --git a/api/package.json b/api/package.json
index cd792cee..13be4aac 100644
--- a/api/package.json
+++ b/api/package.json
@@ -11,8 +11,16 @@
         "API",
         "Environments"
     ],
-    "main": "./out/main.js",
-    "types": "./out/main.d.ts",
+    "exports": {
+        "import": {
+            "types": "./out/esm/main.d.ts",
+            "default": "./out/esm/main.js"
+        },
+        "require": {
+            "types": "./out/cjs/main.d.ts",
+            "default": "./out/cjs/main.js"
+        }
+    },
     "engines": {
         "node": ">=22.21.1",
         "vscode": "^1.110.0"
@@ -30,7 +38,9 @@
         "prepublishOnly": "echo \"⛔ Can only publish from a secure pipeline ⛔\" && node -e \"process.exitCode = 1\"",
         "prepack": "npm run all:publish",
         "all:publish": "git clean -xfd . && npm install && npm run compile",
-        "compile": "tsc -b ./tsconfig.json",
+        "compile": "npm run compile:cjs && npm run compile:esm",
+        "compile:cjs": "tsc -b ./tsconfig.cjs.json",
+        "compile:esm": "tsc -b ./tsconfig.esm.json",
         "clean": "node -e \"const fs = require('fs'); fs.rmSync('./out', { recursive: true, force: true });\""
     },
     "devDependencies": {
diff --git a/api/tsconfig.json b/api/tsconfig.base.json
similarity index 84%
rename from api/tsconfig.json
rename to api/tsconfig.base.json
index f46bf161..67c9ca0b 100644
--- a/api/tsconfig.json
+++ b/api/tsconfig.base.json
@@ -1,11 +1,9 @@
 {
     "compilerOptions": {
         "target": "ES2020",
-        "module": "commonjs",
         "lib": ["ES2020"],
         "declaration": true,
         "strict": true,
-        "outDir": "./out",
         "rootDir": "src",
         "esModuleInterop": true,
         "skipLibCheck": true,
diff --git a/api/tsconfig.cjs.json b/api/tsconfig.cjs.json
new file mode 100644
index 00000000..8fb92e44
--- /dev/null
+++ b/api/tsconfig.cjs.json
@@ -0,0 +1,7 @@
+{
+    "extends": "./tsconfig.base.json",
+    "compilerOptions": {
+        "module": "commonjs",
+        "outDir": "./out/cjs"
+    }
+}
diff --git a/api/tsconfig.esm.json b/api/tsconfig.esm.json
new file mode 100644
index 00000000..d513e2e0
--- /dev/null
+++ b/api/tsconfig.esm.json
@@ -0,0 +1,7 @@
+{
+    "extends": "./tsconfig.base.json",
+    "compilerOptions": {
+        "module": "esnext",
+        "outDir": "./out/esm"
+    }
+}
diff --git a/package.json b/package.json
index 8e4e1609..c9c61c16 100644
--- a/package.json
+++ b/package.json
@@ -124,7 +124,10 @@
                 "python-envs.workspaceSearchPaths": {
                     "type": "array",
                     "description": "%python-envs.workspaceSearchPaths.description%",
-                    "default": [".venv", "*/.venv"],
+                    "default": [
+                        ".venv",
+                        "*/.venv"
+                    ],
                     "scope": "resource",
                     "items": {
                         "type": "string"