diff --git a/src/node/cli.ts b/src/node/cli.ts
index a2fac4180..2433ddf2e 100644
--- a/src/node/cli.ts
+++ b/src/node/cli.ts
@@ -594,7 +594,11 @@ interface Addr {
   port: number
 }
 
-function bindAddrFromArgs(addr: Addr, args: Args): Addr {
+/**
+ * This function creates the bind address
+ * using the CLI args.
+ */
+export function bindAddrFromArgs(addr: Addr, args: Args): Addr {
   addr = { ...addr }
   if (args["bind-addr"]) {
     addr = parseBindAddr(args["bind-addr"])
@@ -626,7 +630,18 @@ function bindAddrFromAllSources(...argsConfig: Args[]): Addr {
 }
 
 export const shouldRunVsCodeCli = (args: Args): boolean => {
-  return !!args["list-extensions"] || !!args["install-extension"] || !!args["uninstall-extension"]
+  // Create new interface with only Arg keys
+  // keyof Args
+  // Turn that into an array
+  // Array<...>
+  type ExtensionArgs = Array<keyof Args>
+  const extensionRelatedArgs: ExtensionArgs = ["list-extensions", "install-extension", "uninstall-extension"]
+
+  const argKeys = Object.keys(args)
+
+  // If any of the extensionRelatedArgs are included in args
+  // then we don't want to run the vscode cli
+  return extensionRelatedArgs.some((arg) => argKeys.includes(arg))
 }
 
 /**
diff --git a/test/unit/node/cli.test.ts b/test/unit/node/cli.test.ts
index 93a86776a..e92cb9758 100644
--- a/test/unit/node/cli.test.ts
+++ b/test/unit/node/cli.test.ts
@@ -3,9 +3,18 @@ import { promises as fs } from "fs"
 import * as net from "net"
 import * as os from "os"
 import * as path from "path"
-import { Args, parse, setDefaults, shouldOpenInExistingInstance, splitOnFirstEquals } from "../../../src/node/cli"
+import {
+  Args,
+  bindAddrFromArgs,
+  parse,
+  setDefaults,
+  shouldOpenInExistingInstance,
+  shouldRunVsCodeCli,
+  splitOnFirstEquals,
+} from "../../../src/node/cli"
 import { tmpdir } from "../../../src/node/constants"
 import { paths } from "../../../src/node/util"
+import { useEnv } from "../../utils/helpers"
 
 type Mutable<T> = {
   -readonly [P in keyof T]: T[P]
@@ -463,3 +472,173 @@ describe("splitOnFirstEquals", () => {
     expect(actual).toEqual(expect.arrayContaining(expected))
   })
 })
+
+describe("shouldRunVsCodeCli", () => {
+  it("should return false if no 'extension' related args passed in", () => {
+    const args = {
+      _: [],
+    }
+    const actual = shouldRunVsCodeCli(args)
+    const expected = false
+
+    expect(actual).toBe(expected)
+  })
+
+  it("should return true if 'list-extensions' passed in", () => {
+    const args = {
+      _: [],
+      ["list-extensions"]: true,
+    }
+    const actual = shouldRunVsCodeCli(args)
+    const expected = true
+
+    expect(actual).toBe(expected)
+  })
+
+  it("should return true if 'install-extension' passed in", () => {
+    const args = {
+      _: [],
+      ["install-extension"]: ["hello.world"],
+    }
+    const actual = shouldRunVsCodeCli(args)
+    const expected = true
+
+    expect(actual).toBe(expected)
+  })
+
+  it("should return true if 'uninstall-extension' passed in", () => {
+    const args = {
+      _: [],
+      ["uninstall-extension"]: ["hello.world"],
+    }
+    const actual = shouldRunVsCodeCli(args)
+    const expected = true
+
+    expect(actual).toBe(expected)
+  })
+})
+
+describe("bindAddrFromArgs", () => {
+  it("should return the bind address", () => {
+    const args = {
+      _: [],
+    }
+
+    const addr = {
+      host: "localhost",
+      port: 8080,
+    }
+
+    const actual = bindAddrFromArgs(addr, args)
+    const expected = addr
+
+    expect(actual).toStrictEqual(expected)
+  })
+
+  it("should use the bind-address if set in args", () => {
+    const args = {
+      _: [],
+      ["bind-addr"]: "localhost:3000",
+    }
+
+    const addr = {
+      host: "localhost",
+      port: 8080,
+    }
+
+    const actual = bindAddrFromArgs(addr, args)
+    const expected = {
+      host: "localhost",
+      port: 3000,
+    }
+
+    expect(actual).toStrictEqual(expected)
+  })
+
+  it("should use the host if set in args", () => {
+    const args = {
+      _: [],
+      ["host"]: "coder",
+    }
+
+    const addr = {
+      host: "localhost",
+      port: 8080,
+    }
+
+    const actual = bindAddrFromArgs(addr, args)
+    const expected = {
+      host: "coder",
+      port: 8080,
+    }
+
+    expect(actual).toStrictEqual(expected)
+  })
+
+  it("should use process.env.PORT if set", () => {
+    const [setValue, resetValue] = useEnv("PORT")
+    setValue("8000")
+
+    const args = {
+      _: [],
+    }
+
+    const addr = {
+      host: "localhost",
+      port: 8080,
+    }
+
+    const actual = bindAddrFromArgs(addr, args)
+    const expected = {
+      host: "localhost",
+      port: 8000,
+    }
+
+    expect(actual).toStrictEqual(expected)
+    resetValue()
+  })
+
+  it("should set port if in args", () => {
+    const args = {
+      _: [],
+      port: 3000,
+    }
+
+    const addr = {
+      host: "localhost",
+      port: 8080,
+    }
+
+    const actual = bindAddrFromArgs(addr, args)
+    const expected = {
+      host: "localhost",
+      port: 3000,
+    }
+
+    expect(actual).toStrictEqual(expected)
+  })
+
+  it("should use the args.port over process.env.PORT if both set", () => {
+    const [setValue, resetValue] = useEnv("PORT")
+    setValue("8000")
+
+    const args = {
+      _: [],
+      port: 3000,
+    }
+
+    const addr = {
+      host: "localhost",
+      port: 8080,
+    }
+
+    const actual = bindAddrFromArgs(addr, args)
+    const expected = {
+      host: "localhost",
+      port: 3000,
+    }
+
+    expect(actual).toStrictEqual(expected)
+    resetValue()
+  })
+})