diff --git a/lsp/README.md b/lsp/README.md
index 5cf0e129..3d3955fb 100644
--- a/lsp/README.md
+++ b/lsp/README.md
@@ -22,12 +22,10 @@ Language Server for [SimplicityHL language](https://simplicity-lang.org/).
 
 ## Installation
 
-Clone this repository and install using Cargo:
+Install Language Server using `cargo`:
 
 ```bash
-https://github.com/distributed-lab/simplicityhl-lsp
-cd simplicityhl-lsp
-cargo install --path .
+cargo install simplicityhl-lsp
 ```
 
 ## Integration with editors
diff --git a/vscode/package-lock.json b/vscode/package-lock.json
index e908eed6..f5681bb3 100644
--- a/vscode/package-lock.json
+++ b/vscode/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "simplicityhl",
-  "version": "0.2.0",
+  "version": "0.2.2",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "simplicityhl",
-      "version": "0.2.0",
+      "version": "0.2.2",
       "license": "MIT",
       "dependencies": {
         "vscode-languageclient": "^9.0.1"
diff --git a/vscode/package.json b/vscode/package.json
index 130f4a3b..d27de9d3 100644
--- a/vscode/package.json
+++ b/vscode/package.json
@@ -2,7 +2,7 @@
   "name": "simplicityhl",
   "displayName": "SimplicityHL Language Support",
   "description": "Syntax highlighting and autocompletion for SimplicityHL (Simfony) language",
-  "version": "0.2.1",
+  "version": "0.2.2",
   "publisher": "Blockstream",
   "repository": {
     "type": "git",
@@ -67,6 +67,11 @@
           "type": "boolean",
           "default": false,
           "description": "Do not show missing LSP executable warning."
+        },
+        "simplicityhl.disableAutoupdate": {
+          "type": "boolean",
+          "default": false,
+          "description": "Do not autoupdate LSP server."
         }
       }
     },
diff --git a/vscode/src/client.ts b/vscode/src/client.ts
index 975c75b3..96471262 100644
--- a/vscode/src/client.ts
+++ b/vscode/src/client.ts
@@ -53,11 +53,12 @@ export class LspClient {
     }
   }
 
-  public stop(): Thenable<void> | undefined {
+  public async stop(): Promise<void> {
     if (!this.client) {
-      return undefined;
+      return;
     }
-    return this.client.stop();
+    await this.client.stop();
+    this.client = undefined;
   }
 
   public async restart(): Promise<void> {
@@ -67,8 +68,8 @@ export class LspClient {
     }
 
     try {
-      await this.client.stop();
-      await this.client.start();
+      await this.stop();
+      await this.start();
       window.showInformationMessage("SimplicityHL Language Server restarted successfully!");
     } catch (e) {
       window.showErrorMessage(`Failed to restart LSP: ${e}`);
diff --git a/vscode/src/find_server.ts b/vscode/src/find_server.ts
index c57fdccb..cc1af06f 100644
--- a/vscode/src/find_server.ts
+++ b/vscode/src/find_server.ts
@@ -1,9 +1,11 @@
-import * as cp from "child_process";
+import * as os from "os";
 import * as fs from "fs";
 import * as path from "path";
-import * as os from "os";
-import { env, Uri, window, workspace } from "vscode";
+
 import process from "node:process";
+import * as cp from "child_process";
+
+import { env, ProgressLocation, Uri, window, workspace } from "vscode";
 
 function findExecutable(command: string): string | null {
   try {
@@ -51,27 +53,81 @@ function findExecutable(command: string): string | null {
   return null;
 }
 
+async function installServer(command: string) {
+  const cargoPath = findExecutable("cargo");
+  if (!cargoPath) {
+    throw new Error("Unable to find 'cargo'. Please ensure Rust is installed and in your PATH.");
+  }
+
+  const action = findExecutable(command) ? "Updating" : "Installing";
+
+  return window.withProgress({
+    location: ProgressLocation.Notification,
+    title: `${action} ${command}`,
+    cancellable: true
+  }, async (progress, token) => {
+    return new Promise<void>((resolve, reject) => {
+      const installProcess = cp.spawn(cargoPath!, ["install", "--color", "never", command]);
+
+      token.onCancellationRequested(() => {
+        installProcess.kill("SIGTERM");
+        reject(new Error("Installation canceled"));
+      });
+
+      const reportProgress = (data: Buffer) => {
+        const lines = data.toString()
+          .split(/\r?\n/)
+          .map(l => l.trim())
+
+        for (const line of lines) {
+          if (line.startsWith("Compiling") && line !== "Compiling") {
+            progress.report({ message: line });
+          }
+        }
+      };
+
+      installProcess.stderr?.on('data', reportProgress);
+
+      installProcess.on('close', (code) => {
+        if (code === 0) {
+          resolve();
+        } else {
+          reject(new Error(`Installation failed with exit code ${code}`));
+        }
+      });
+
+      installProcess.on('error', (err) => {
+        reject(new Error(`Failed to start cargo process: ${err.message}`));
+      });
+    });
+  });
+}
+
 export async function ensureExecutable(
   command: string,
 ): Promise<string | null> {
-  const exePath = findExecutable(command);
+  const cargoPath = findExecutable("cargo");
   const config = workspace.getConfiguration("simplicityhl");
 
-  const suppressWarning = config.get<boolean>(
-    "suppressMissingLspWarning",
-    false,
-  );
+  let serverPath = findExecutable(command);
+
+  if (!cargoPath && !serverPath) {
+    const suppressWarning = config.get<boolean>(
+      "suppressMissingLspWarning",
+      false,
+    );
+    if (suppressWarning) {
+      return null;
+    }
 
-  if (!exePath && !suppressWarning) {
     const choice = await window.showWarningMessage(
-      `LSP server "${command}" was not found in PATH or common locations. To use language server feautures, please install server to PATH`,
+      `To use SimplicityHL language server, please install cargo`,
       "Learn more",
       "Don't show again",
-      "Close",
     );
 
     if (choice === "Learn more") {
-      const url = "https://github.com/distributed-lab/simplicityhl-lsp";
+      const url = "https://rust-lang.org/tools/install";
       await env.openExternal(Uri.parse(url));
     } else if (choice === "Don't show again") {
       const config = workspace.getConfiguration("simplicityhl");
@@ -80,5 +136,25 @@ export async function ensureExecutable(
 
     return null;
   }
-  return exePath;
+
+  if (!cargoPath) {
+    return serverPath;
+  }
+
+  const disableAutoupdate = config.get<boolean>("disableAutoupdate", false);
+
+  if (serverPath && disableAutoupdate) {
+    return serverPath;
+  }
+
+  try {
+    await installServer(command);
+
+    serverPath = findExecutable(command);
+  } catch (err) {
+    window.showErrorMessage(err);
+    return null;
+  }
+
+  return serverPath;
 }