diff --git a/src/Microsoft.ComponentDetection.Detectors/npm/NpmComponentDetector.cs b/src/Microsoft.ComponentDetection.Detectors/npm/NpmComponentDetector.cs
index 1ed41a721..354b81ae8 100644
--- a/src/Microsoft.ComponentDetection.Detectors/npm/NpmComponentDetector.cs
+++ b/src/Microsoft.ComponentDetection.Detectors/npm/NpmComponentDetector.cs
@@ -40,7 +40,7 @@ public NpmComponentDetector(
 
     public override IEnumerable<ComponentType> SupportedComponentTypes { get; } = [ComponentType.Npm];
 
-    public override int Version { get; } = 2;
+    public override int Version { get; } = 3;
 
     protected override async Task OnFileFoundAsync(ProcessRequest processRequest, IDictionary<string, string> detectorArgs, CancellationToken cancellationToken = default)
     {
@@ -79,6 +79,7 @@ protected virtual bool ProcessIndividualPackageJTokens(string filePath, ISingleF
         var name = packageJToken["name"].ToString();
         var version = packageJToken["version"].ToString();
         var authorToken = packageJToken["author"];
+        var enginesToken = packageJToken["engines"];
 
         if (!SemanticVersion.TryParse(version, out _))
         {
@@ -87,6 +88,12 @@ protected virtual bool ProcessIndividualPackageJTokens(string filePath, ISingleF
             return false;
         }
 
+        if (enginesToken != null && enginesToken["vscode"] != null)
+        {
+            this.Logger.LogInformation("{NpmPackageName} found at path {NpmPackageLocation} represents a built-in VS Code extension. This package will not be registered.", name, filePath);
+            return false;
+        }
+
         var npmComponent = new NpmComponent(name, version, author: this.GetAuthor(authorToken, name, filePath));
 
         singleFileComponentRecorder.RegisterUsage(new DetectedComponent(npmComponent));
diff --git a/test/Microsoft.ComponentDetection.Detectors.Tests/NpmDetectorTests.cs b/test/Microsoft.ComponentDetection.Detectors.Tests/NpmDetectorTests.cs
index bce143d44..b75299933 100644
--- a/test/Microsoft.ComponentDetection.Detectors.Tests/NpmDetectorTests.cs
+++ b/test/Microsoft.ComponentDetection.Detectors.Tests/NpmDetectorTests.cs
@@ -78,9 +78,9 @@ public async Task TestNpmDetector_AuthorNameAndAuthorEmailDetected_WhenAuthorNam
     {
         var authorName = GetRandomString();
         var authorEmail = GetRandomString();
-        var authroUrl = GetRandomString();
+        var authorUrl = GetRandomString();
         var (packageJsonName, packageJsonContents, packageJsonPath) =
-            NpmTestUtilities.GetPackageJsonNoDependenciesForAuthorAndEmailAsSingleString(authorName, authorEmail, authroUrl);
+            NpmTestUtilities.GetPackageJsonNoDependenciesForAuthorAndEmailAsSingleString(authorName, authorEmail, authorUrl);
 
         var (scanResult, componentRecorder) = await this.DetectorTestUtility
             .WithFile(packageJsonName, packageJsonContents, this.packageJsonSearchPattern, fileLocation: packageJsonPath)
@@ -97,9 +97,9 @@ public async Task TestNpmDetector_AuthorNameAndAuthorEmailDetected_WhenAuthorNam
     public async Task TestNpmDetector_AuthorNameDetected_WhenEmailNotPresentAndUrlIsPresent_AuthorAsSingleStringAsync()
     {
         var authorName = GetRandomString();
-        var authroUrl = GetRandomString();
+        var authorUrl = GetRandomString();
         var (packageJsonName, packageJsonContents, packageJsonPath) =
-            NpmTestUtilities.GetPackageJsonNoDependenciesForAuthorAndEmailAsSingleString(authorName, null, authroUrl);
+            NpmTestUtilities.GetPackageJsonNoDependenciesForAuthorAndEmailAsSingleString(authorName, null, authorUrl);
 
         var (scanResult, componentRecorder) = await this.DetectorTestUtility
             .WithFile(packageJsonName, packageJsonContents, this.packageJsonSearchPattern, fileLocation: packageJsonPath)
@@ -116,10 +116,10 @@ public async Task TestNpmDetector_AuthorNameDetected_WhenEmailNotPresentAndUrlIs
     public async Task TestNpmDetector_AuthorNull_WhenAuthorMalformed_AuthorAsSingleStringAsync()
     {
         var authorName = GetRandomString();
-        var authroUrl = GetRandomString();
+        var authorUrl = GetRandomString();
         var authorEmail = GetRandomString();
         var (packageJsonName, packageJsonContents, packageJsonPath) =
-            NpmTestUtilities.GetPackageJsonNoDependenciesMalformedAuthorAsSingleString(authorName, authorEmail, authroUrl);
+            NpmTestUtilities.GetPackageJsonNoDependenciesMalformedAuthorAsSingleString(authorName, authorEmail, authorUrl);
 
         var (scanResult, componentRecorder) = await this.DetectorTestUtility
             .WithFile(packageJsonName, packageJsonContents, this.packageJsonSearchPattern, fileLocation: packageJsonPath)
@@ -135,7 +135,6 @@ public async Task TestNpmDetector_AuthorNull_WhenAuthorMalformed_AuthorAsSingleS
     public async Task TestNpmDetector_AuthorNameDetected_WhenEmailNotPresentAndUrlNotPresent_AuthorAsSingleStringAsync()
     {
         var authorName = GetRandomString();
-        var authroUrl = GetRandomString();
         var (packageJsonName, packageJsonContents, packageJsonPath) =
             NpmTestUtilities.GetPackageJsonNoDependenciesForAuthorAndEmailAsSingleString(authorName);
 
@@ -208,6 +207,38 @@ public async Task TestNpmDetector_NullAuthor_WhenAuthorNameIsNullOrEmpty_AuthorA
         ((NpmComponent)detectedComponents.First().Component).Author.Should().BeNull();
     }
 
+    [TestMethod]
+    public async Task TestNpmDetector_NodeEngineDoesNotCauseSkippedPackageAsync()
+    {
+        var componentName = GetRandomString();
+        var version = NewRandomVersion();
+        var (packageJsonName, packageJsonContents, packageJsonPath) =
+            NpmTestUtilities.GetPackageJsonNoDependenciesForNameAndVersionWithNodeEngine(componentName, version);
+
+        var (scanResult, componentRecorder) = await this.DetectorTestUtility
+            .WithFile(packageJsonName, packageJsonContents, this.packageJsonSearchPattern, fileLocation: packageJsonPath)
+            .ExecuteDetectorAsync();
+        scanResult.ResultCode.Should().Be(ProcessingResultCode.Success);
+        var detectedComponents = componentRecorder.GetDetectedComponents();
+        detectedComponents.Should().ContainSingle();
+    }
+
+    [TestMethod]
+    public async Task TestNpmDetector_VSCodeEngineCausesSkippedPackageAsync()
+    {
+        var componentName = GetRandomString();
+        var version = NewRandomVersion();
+        var (packageJsonName, packageJsonContents, packageJsonPath) =
+            NpmTestUtilities.GetPackageJsonNoDependenciesForNameAndVersionWithVSCodeEngine(componentName, version);
+
+        var (scanResult, componentRecorder) = await this.DetectorTestUtility
+            .WithFile(packageJsonName, packageJsonContents, this.packageJsonSearchPattern, fileLocation: packageJsonPath)
+            .ExecuteDetectorAsync();
+        scanResult.ResultCode.Should().Be(ProcessingResultCode.Success);
+        var detectedComponents = componentRecorder.GetDetectedComponents();
+        detectedComponents.Should().BeEmpty();
+    }
+
     private static void AssertDetectedComponentCount(IEnumerable<DetectedComponent> detectedComponents, int expectedCount)
     {
         detectedComponents.Should().HaveCount(expectedCount);
diff --git a/test/Microsoft.ComponentDetection.Detectors.Tests/NpmTestUtilities.cs b/test/Microsoft.ComponentDetection.Detectors.Tests/NpmTestUtilities.cs
index 224493655..7d2267d48 100644
--- a/test/Microsoft.ComponentDetection.Detectors.Tests/NpmTestUtilities.cs
+++ b/test/Microsoft.ComponentDetection.Detectors.Tests/NpmTestUtilities.cs
@@ -117,6 +117,32 @@ public static (string PackageJsonName, string PackageJsonContents, string Packag
         return ("package.json", packageJsonTemplate, Path.Combine(Path.GetTempPath(), "package.json"));
     }
 
+    public static (string PackageJsonName, string PackageJsonContents, string PackageJsonPath) GetPackageJsonNoDependenciesForNameAndVersionWithNodeEngine(string packageName, string packageVersion)
+    {
+        var packagejson = @"{{
+                ""name"": ""{0}"",
+                ""version"": ""{1}"",
+                ""engines"": {{
+                    ""node"": ""^20.0.0""
+                }}
+            }}";
+        var packageJsonTemplate = string.Format(packagejson, packageName, packageVersion);
+        return ("package.json", packageJsonTemplate, Path.Combine(Path.GetTempPath(), "package.json"));
+    }
+
+    public static (string PackageJsonName, string PackageJsonContents, string PackageJsonPath) GetPackageJsonNoDependenciesForNameAndVersionWithVSCodeEngine(string packageName, string packageVersion)
+    {
+        var packagejson = @"{{
+                ""name"": ""{0}"",
+                ""version"": ""{1}"",
+                ""engines"": {{
+                    ""vscode"": ""^1.0.0""
+                }}
+            }}";
+        var packageJsonTemplate = string.Format(packagejson, packageName, packageVersion);
+        return ("package.json", packageJsonTemplate, Path.Combine(Path.GetTempPath(), "package.json"));
+    }
+
     public static (string PackageJsonName, string PackageJsonContents, string PackageJsonPath) GetPackageJsonNoDependenciesForAuthorAndEmailInJsonFormat(
         string authorName, string authorEmail = null)
     {