diff --git a/docs/USAGE.md b/docs/USAGE.md
index 6441d198e..60a0cbfd3 100644
--- a/docs/USAGE.md
+++ b/docs/USAGE.md
@@ -109,4 +109,11 @@ endif
 
 ## VS Code
 
-See our [Terraform VS Code Extension](https://github.com/hashicorp/vscode-terraform) repository.
+ - Install [Terraform VS Code Extension](https://marketplace.visualstudio.com/items?itemName=hashicorp.terraform) `>=2.0.0`
+ - Latest version of the language server should be installed automatically on VS Code launch
+ - In case you are upgrading from v1 you may need to remove `terraform.languageServer`
+ 	settings or just make it empty as shown below
+
+```json
+"terraform.languageServer": {}
+```