diff --git a/README.md b/README.md
index 60c9371..a259402 100644
--- a/README.md
+++ b/README.md
@@ -32,7 +32,7 @@ into the Home Assistant frontend UI.
 Visual Studio Code runs as a remote server using `code-server`, and is a
 fully fledged VSCode experience.
 
-The add-on has the Home Assistant and MDI icons extensions pre-installed
+The add-on has the Home Assistant, MDI icons and YAML extensions pre-installed
 and pre-configured right out of the box. This means that auto-completion works
 instantly, without the need for configuring anything.
 
diff --git a/vscode/.README.j2 b/vscode/.README.j2
index 09355e2..99df7d1 100644
--- a/vscode/.README.j2
+++ b/vscode/.README.j2
@@ -19,8 +19,8 @@ into the Home Assistant frontend UI.
 Visual Studio Code runs as a remote server using `code-server`, and is a
 fully fledged VSCode experience.
 
-The add-on has the Home Assistant and MDI icons extensions pre-installed
-and pre-configured right out of the box. This means that autocompletion works
+The add-on has the Home Assistant, MDI icons and YAML extensions pre-installed
+and pre-configured right out of the box. This means that auto-completion works
 instantly, without the need for configuring anything.
 
 [Click here for the full documentation][docs]