diff --git a/package.json b/package.json
index 6a2ef2602..12a8ae558 100644
--- a/package.json
+++ b/package.json
@@ -1561,6 +1561,11 @@
             "default": true,
             "description": "%configuration.dotnet.projects.enableAutomaticRestore%"
           },
+          "dotnet.projects.loadOnDemand": {
+            "type": "boolean",
+            "default": true,
+            "description": "%configuration.dotnet.projects.loadOnDemand%"
+          },
           "dotnet.projects.enableFileBasedPrograms": {
             "type": "boolean",
             "default": true,
diff --git a/package.nls.json b/package.nls.json
index 6971ab685..c6abe1361 100644
--- a/package.nls.json
+++ b/package.nls.json
@@ -47,6 +47,7 @@
   "configuration.dotnet.server.environmentVariables": "Custom environment variables to pass to the language server process. Specify as key-value pairs, for example: { \"DOTNET_GCName\": \"libclrgc.dylib\" }. (Requires extension restart)",
   "configuration.dotnet.enableXamlTools": "Enables XAML tools when using C# Dev Kit. (Requires extension restart)",
   "configuration.dotnet.projects.enableAutomaticRestore": "Enables automatic NuGet restore if the extension detects assets are missing.",
+  "configuration.dotnet.projects.loadOnDemand": "Loads projects when a language feature first requests a file they contain instead of loading every project at startup.",
   "configuration.dotnet.projects.enableFileBasedPrograms": "Enables the \"file-based programs\" (dotnet run app.cs) experience.",
   "configuration.dotnet.projects.enableFileBasedProgramsWhenAmbiguous": "Enables the \"file-based programs\" (dotnet run app.cs) experience in files where the editor is unable to determine with certainty whether the file is a file-based program. Only respected when `dotnet.projects.enableFileBasedPrograms` is `true`.",
   "configuration.dotnet.fileBasedApps.enableAutomaticDiscovery": "Enables automatic discovery of C# file-based apps in the workspace.",
diff --git a/test/lsptoolshost/unitTests/configurationMiddleware.test.ts b/test/lsptoolshost/unitTests/configurationMiddleware.test.ts
index 759d8bc46..67cdf2d82 100644
--- a/test/lsptoolshost/unitTests/configurationMiddleware.test.ts
+++ b/test/lsptoolshost/unitTests/configurationMiddleware.test.ts
@@ -8,6 +8,7 @@ import { convertServerOptionNameToClientConfigurationName } from '../../../src/l
 import { describe, test, expect } from '@jest/globals';
 
 const editorBehaviorSection = 1;
+const lspServerSection = 3;
 const testData = [
     {
         serverOption: 'csharp|symbol_search.dotnet_search_reference_assemblies',
@@ -273,6 +274,12 @@ const testData = [
         declareInPackageJson: true,
         section: editorBehaviorSection,
     },
+    {
+        serverOption: 'projects.dotnet_load_on_demand',
+        vsCodeConfiguration: 'dotnet.projects.loadOnDemand',
+        declareInPackageJson: true,
+        section: lspServerSection,
+    },
 ];
 
 describe('Server option name to vscode configuration name test', () => {