diff --git a/extensions/vscode/src/extension/VsCodeExtension.ts b/extensions/vscode/src/extension/VsCodeExtension.ts
index 962c4ec01b5..ef669494693 100644
--- a/extensions/vscode/src/extension/VsCodeExtension.ts
+++ b/extensions/vscode/src/extension/VsCodeExtension.ts
@@ -42,6 +42,7 @@ import { VsCodeIdeUtils } from "../util/ideUtils";
 import { VsCodeIde } from "../VsCodeIde";
 
 import { ConfigYamlDocumentLinkProvider } from "./ConfigYamlDocumentLinkProvider";
+import { setupPromptLogging } from "./setupPromptLogging";
 import { VsCodeMessenger } from "./VsCodeMessenger";
 
 import { modelSupportsNextEdit } from "core/llm/autodetect";
@@ -292,6 +293,7 @@ export class VsCodeExtension {
     );
 
     this.core = new Core(inProcessMessenger, this.ide);
+    context.subscriptions.push(setupPromptLogging(this.core.llmLogger));
     this.configHandler = this.core.configHandler;
     resolveConfigHandler?.(this.configHandler);
 
diff --git a/extensions/vscode/src/extension/setupPromptLogging.ts b/extensions/vscode/src/extension/setupPromptLogging.ts
new file mode 100644
index 00000000000..c5be4752326
--- /dev/null
+++ b/extensions/vscode/src/extension/setupPromptLogging.ts
@@ -0,0 +1,18 @@
+import fs from "node:fs";
+
+import { LLMLogger } from "core/llm/logger";
+import { LLMLogFormatter } from "core/llm/logFormatter";
+import { getPromptLogsPath } from "core/util/paths";
+
+export function setupPromptLogging(llmLogger: LLMLogger) {
+  const promptLogsPath = getPromptLogsPath();
+  const output = fs.createWriteStream(promptLogsPath);
+
+  new LLMLogFormatter(llmLogger, output);
+
+  return {
+    dispose() {
+      output.end();
+    },
+  };
+}
diff --git a/extensions/vscode/src/extension/setupPromptLogging.vitest.ts b/extensions/vscode/src/extension/setupPromptLogging.vitest.ts
new file mode 100644
index 00000000000..01706fac7fc
--- /dev/null
+++ b/extensions/vscode/src/extension/setupPromptLogging.vitest.ts
@@ -0,0 +1,62 @@
+import { afterEach, describe, expect, it, vi } from "vitest";
+
+const {
+  mockCreateWriteStream,
+  mockEnd,
+  mockGetPromptLogsPath,
+  mockLLMLogFormatter,
+} = vi.hoisted(() => ({
+  mockEnd: vi.fn(),
+  mockCreateWriteStream: vi.fn(() => ({
+    end: vi.fn(),
+  })),
+  mockGetPromptLogsPath: vi.fn(() => "/tmp/prompt.log"),
+  mockLLMLogFormatter: vi.fn(),
+}));
+
+mockCreateWriteStream.mockImplementation(() => ({
+  end: mockEnd,
+}));
+
+vi.mock("node:fs", () => ({
+  __esModule: true,
+  default: {
+    createWriteStream: mockCreateWriteStream,
+  },
+}));
+
+vi.mock("core/util/paths", () => ({
+  getPromptLogsPath: mockGetPromptLogsPath,
+}));
+
+vi.mock("core/llm/logFormatter", () => ({
+  LLMLogFormatter: mockLLMLogFormatter,
+}));
+
+import { setupPromptLogging } from "./setupPromptLogging";
+
+describe("setupPromptLogging", () => {
+  afterEach(() => {
+    vi.clearAllMocks();
+    mockCreateWriteStream.mockImplementation(() => ({
+      end: mockEnd,
+    }));
+  });
+
+  it("creates a prompt log stream and closes it on dispose", () => {
+    const llmLogger = {} as any;
+
+    const disposable = setupPromptLogging(llmLogger);
+
+    expect(mockGetPromptLogsPath).toHaveBeenCalledTimes(1);
+    expect(mockCreateWriteStream).toHaveBeenCalledWith("/tmp/prompt.log");
+    expect(mockLLMLogFormatter).toHaveBeenCalledWith(
+      llmLogger,
+      expect.objectContaining({ end: mockEnd }),
+    );
+
+    disposable.dispose();
+
+    expect(mockEnd).toHaveBeenCalledTimes(1);
+  });
+});