diff --git a/packages/generator-langium/src/index.ts b/packages/generator-langium/src/index.ts
index 5e5698e94..6b41c889d 100644
--- a/packages/generator-langium/src/index.ts
+++ b/packages/generator-langium/src/index.ts
@@ -239,9 +239,9 @@ export class LangiumGenerator extends Generator {
             this.sourceRoot(path.join(__dirname, `${BASE_DIR}/${PACKAGE_WEB}`));
             const webFiles = [
                 'package.json',
-                'langium-config.json',
                 'language-configuration.json',
                 'tsconfig.json',
+                'index.html',
                 'vite.config.ts',
                 'src',
                 'static'
@@ -253,6 +253,7 @@ export class LangiumGenerator extends Generator {
                     templateCopyOptions
                 );
             }
+            mainPackageJson.workspaces.push('packages/web');
         }
 
         if (this.answers.includeVSCode) {
@@ -272,6 +273,7 @@ export class LangiumGenerator extends Generator {
                     templateCopyOptions
                 );
             }
+            mainPackageJson.workspaces.push('packages/extension');
         }
 
         this.fs.writeJSON(this._extensionPath('.package.json'), mainPackageJson, undefined, 4);
diff --git a/packages/generator-langium/templates/packages/cli/src/generator.ts b/packages/generator-langium/templates/packages/cli/src/generator.ts
index 93036c17f..fe6c8f973 100644
--- a/packages/generator-langium/templates/packages/cli/src/generator.ts
+++ b/packages/generator-langium/templates/packages/cli/src/generator.ts
@@ -1,4 +1,4 @@
-import type { Model } from '../language/generated/ast.js';
+import type { Model } from '<%= language-id %>-language';
 import { expandToNode, joinToNode, toString } from 'langium/generate';
 import * as fs from 'node:fs';
 import * as path from 'node:path';
diff --git a/packages/generator-langium/templates/packages/cli/src/main.ts b/packages/generator-langium/templates/packages/cli/src/main.ts
index 996c9b481..4dbd61697 100644
--- a/packages/generator-langium/templates/packages/cli/src/main.ts
+++ b/packages/generator-langium/templates/packages/cli/src/main.ts
@@ -1,8 +1,7 @@
-import type { Model } from '../language/generated/ast.js';
+import type { Model } from '<%= language-id %>-language';
+import { create<%= LanguageName %>Services, <%= LanguageName %>LanguageMetaData } from '<%= language-id %>-language';
 import chalk from 'chalk';
 import { Command } from 'commander';
-import { <%= LanguageName %>LanguageMetaData } from '../language/generated/module.js';
-import { create<%= LanguageName %>Services } from '../language/<%= language-id %>-module.js';
 import { extractAstNode } from './cli-util.js';
 import { generateJavaScript } from './generator.js';
 import { NodeFileSystem } from 'langium/node';
diff --git a/packages/generator-langium/templates/packages/extension/src/language/main.ts b/packages/generator-langium/templates/packages/extension/src/language/main.ts
index 90f7d48eb..bc3c5b5dc 100644
--- a/packages/generator-langium/templates/packages/extension/src/language/main.ts
+++ b/packages/generator-langium/templates/packages/extension/src/language/main.ts
@@ -1,7 +1,7 @@
 import { startLanguageServer } from 'langium/lsp';
 import { NodeFileSystem } from 'langium/node';
 import { createConnection, ProposedFeatures } from 'vscode-languageserver/node.js';
-import { create<%= LanguageName %>Services } from './<%= language-id %>-module.js';
+import { create<%= LanguageName %>Services } from '<%= language-id %>-language';
 
 // Create a connection to the client
 const connection = createConnection(ProposedFeatures.all);
diff --git a/packages/generator-langium/templates/packages/language/langium-config.json b/packages/generator-langium/templates/packages/language/langium-config.json
index 32006a2ee..8326d9efe 100644
--- a/packages/generator-langium/templates/packages/language/langium-config.json
+++ b/packages/generator-langium/templates/packages/language/langium-config.json
@@ -6,6 +6,9 @@
         "fileExtensions": <%= file-extension %>,
         "textMate": {
             "out": "syntaxes/<%= language-id %>.tmLanguage.json"
+        },
+        "monarch": {
+            "out": "src/syntaxes/<%= language-id %>.monarch.ts"
         }
     }],
     "out": "src/generated"
diff --git a/packages/generator-langium/templates/packages/language/package.json b/packages/generator-langium/templates/packages/language/package.json
index 3473b94e5..1016b0aa8 100644
--- a/packages/generator-langium/templates/packages/language/package.json
+++ b/packages/generator-langium/templates/packages/language/package.json
@@ -10,6 +10,21 @@
         "out",
         "src"
     ],
+    "main": "./out/index.js",
+    "module": "./out/index.js",
+    "exports": {
+      ".": {
+        "types": "./out/index.d.ts",
+        "default": "./out/index.js"
+      }
+    },
+    "typesVersions": {
+      "*": {
+        ".": [
+          "out/index"
+        ]
+      }
+    },
     "scripts": {
         "build": "echo 'No build step'",
         "langium:generate": "langium generate",
diff --git a/packages/generator-langium/templates/packages/language/src/index.ts b/packages/generator-langium/templates/packages/language/src/index.ts
new file mode 100644
index 000000000..32a299ef0
--- /dev/null
+++ b/packages/generator-langium/templates/packages/language/src/index.ts
@@ -0,0 +1,6 @@
+export * from './<%= language-id %>-module.js';
+export * from './<%= language-id %>-validator.js';
+export * from './generated/ast.js';
+export * from './generated/grammar.js';
+export * from './generated/module.js';
+export { default as monarchSyntax } from './syntaxes/<%= language-id %>.monarch.js';
diff --git a/packages/generator-langium/templates/packages/language/test/linking/linking.test.ts b/packages/generator-langium/templates/packages/language/test/linking/linking.test.ts
index fa3aeac23..89f12495a 100644
--- a/packages/generator-langium/templates/packages/language/test/linking/linking.test.ts
+++ b/packages/generator-langium/templates/packages/language/test/linking/linking.test.ts
@@ -2,8 +2,7 @@ import { afterEach, beforeAll, describe, expect, test } from "vitest";
 import { EmptyFileSystem, type LangiumDocument } from "langium";
 import { expandToString as s } from "langium/generate";
 import { clearDocuments, parseHelper } from "langium/test";
-import { create<%= LanguageName %>Services } from "../../src/language/<%= language-id %>-module.js";
-import { Model, isModel } from "../../src/language/generated/ast.js";
+import { create<%= LanguageName %>Services, isModel, Model } from "<%= language-id %>-language";
 
 let services: ReturnType<typeof create<%= LanguageName %>Services>;
 let parse:    ReturnType<typeof parseHelper<Model>>;
diff --git a/packages/generator-langium/templates/packages/language/test/parsing/parsing.test.ts b/packages/generator-langium/templates/packages/language/test/parsing/parsing.test.ts
index 27810096a..f27815ed5 100644
--- a/packages/generator-langium/templates/packages/language/test/parsing/parsing.test.ts
+++ b/packages/generator-langium/templates/packages/language/test/parsing/parsing.test.ts
@@ -2,8 +2,7 @@ import { beforeAll, describe, expect, test } from "vitest";
 import { EmptyFileSystem, type LangiumDocument } from "langium";
 import { expandToString as s } from "langium/generate";
 import { parseHelper } from "langium/test";
-import { create<%= LanguageName %>Services } from "../../src/language/<%= language-id %>-module.js";
-import { Model, isModel } from "../../src/language/generated/ast.js";
+import { create<%= LanguageName %>Services, isModel, Model } from "<%= language-id %>-language";
 
 let services: ReturnType<typeof create<%= LanguageName %>Services>;
 let parse:    ReturnType<typeof parseHelper<Model>>;
diff --git a/packages/generator-langium/templates/packages/language/test/validating/validating.test.ts b/packages/generator-langium/templates/packages/language/test/validating/validating.test.ts
index 1a33aeb4d..fe8ac1c22 100644
--- a/packages/generator-langium/templates/packages/language/test/validating/validating.test.ts
+++ b/packages/generator-langium/templates/packages/language/test/validating/validating.test.ts
@@ -3,8 +3,7 @@ import { EmptyFileSystem, type LangiumDocument } from "langium";
 import { expandToString as s } from "langium/generate";
 import { parseHelper } from "langium/test";
 import type { Diagnostic } from "vscode-languageserver-types";
-import { create<%= LanguageName %>Services } from "../../src/language/<%= language-id %>-module.js";
-import { Model, isModel } from "../../src/language/generated/ast.js";
+import { create<%= LanguageName %>Services, isModel, Model } from "<%= language-id %>-language";
 
 let services: ReturnType<typeof create<%= LanguageName %>Services>;
 let parse:    ReturnType<typeof parseHelper<Model>>;
diff --git a/packages/generator-langium/templates/packages/web/langium-config.json b/packages/generator-langium/templates/packages/web/langium-config.json
deleted file mode 100644
index aef528417..000000000
--- a/packages/generator-langium/templates/packages/web/langium-config.json
+++ /dev/null
@@ -1,15 +0,0 @@
-{
-    "projectName": "<%= LanguageName %>",
-    "languages": [{
-        "id": "<%= language-id %>",
-        "grammar": "src/language/<%= language-id %>.langium",
-        "fileExtensions": <%= file-extension %>,
-        "textMate": {
-            "out": "syntaxes/<%= language-id %>.tmLanguage.json"
-        },
-        "monarch": {
-            "out": "src/syntaxes/<%= language-id %>.monarch.ts"
-        }
-    }],
-    "out": "src/language/generated"
-}
diff --git a/packages/generator-langium/templates/packages/web/package.json b/packages/generator-langium/templates/packages/web/package.json
index 16b93c9f7..cf0dc52c4 100644
--- a/packages/generator-langium/templates/packages/web/package.json
+++ b/packages/generator-langium/templates/packages/web/package.json
@@ -11,20 +11,19 @@
         "src"
     ],
     "scripts": {
-        "build": "npm run build",
-        "bundle": "vite build",
+        "build": "vite build",
         "bundle:serve": "http-server ./dist --port 5175",
         "dev": "vite",
         "dev:debug": "vite --debug --force",
         "serve": "npm run dev"
     },
     "dependencies": {
-        "@codingame/monaco-vscode-editor-service-override": "~3.2.3",
-        "@codingame/monaco-vscode-keybindings-service-override": "~3.2.3",
-        "monaco-editor": "npm:@codingame/monaco-vscode-editor-api@~3.2.3",
-        "monaco-editor-wrapper": "~4.0.2",
-        "monaco-languageclient": "~8.1.1",
-        "vscode": "npm:@codingame/monaco-vscode-api@~3.2.3"
+        "@codingame/monaco-vscode-editor-service-override": "~5.2.0",
+        "@codingame/monaco-vscode-keybindings-service-override": "~5.2.0",
+        "monaco-editor": "npm:@codingame/monaco-vscode-editor-api@~5.2.0",
+        "monaco-editor-wrapper": "~5.2.0",
+        "monaco-languageclient": "~8.5.0",
+        "vscode": "npm:@codingame/monaco-vscode-api@~5.2.0"
     },
     "devDependencies": {
         "@codingame/esbuild-import-meta-url-plugin": "~1.0.2",
diff --git a/packages/generator-langium/templates/packages/web/src/main-browser.ts b/packages/generator-langium/templates/packages/web/src/main-browser.ts
index 73a3350d4..d7f2b0059 100644
--- a/packages/generator-langium/templates/packages/web/src/main-browser.ts
+++ b/packages/generator-langium/templates/packages/web/src/main-browser.ts
@@ -1,7 +1,9 @@
+/// <reference lib="WebWorker" />
+
 import { EmptyFileSystem } from 'langium';
 import { startLanguageServer } from 'langium/lsp';
 import { BrowserMessageReader, BrowserMessageWriter, createConnection } from 'vscode-languageserver/browser.js';
-import { create<%= LanguageName %>Services } from './<%= language-id %>-module.js';
+import { create<%= LanguageName %>Services } from '<%= language-id %>-language';
 
 declare const self: DedicatedWorkerGlobalScope;
 
diff --git a/packages/generator-langium/templates/packages/web/src/setupClassic.ts b/packages/generator-langium/templates/packages/web/src/setupClassic.ts
index abc5d0a50..722c33fe1 100644
--- a/packages/generator-langium/templates/packages/web/src/setupClassic.ts
+++ b/packages/generator-langium/templates/packages/web/src/setupClassic.ts
@@ -1,6 +1,6 @@
 import { MonacoEditorLanguageClientWrapper, UserConfig } from 'monaco-editor-wrapper';
 import { configureWorker, defineUserServices } from './setupCommon.js';
-import monarchSyntax from "./syntaxes/<%= language-id %>.monarch.js";
+import { monarchSyntax } from '<%= language-id %>-language';
 
 export const setupConfigClassic = (): UserConfig => {
     return {
@@ -8,11 +8,16 @@ export const setupConfigClassic = (): UserConfig => {
             serviceConfig: defineUserServices(),
             editorAppConfig: {
                 $type: 'classic',
-                languageId: '<%= language-id %>',
-                code: `// <%= RawLanguageName %> is running in the web!`,
-                useDiffEditor: false,
-                languageExtensionConfig: { id: 'langium' },
-                languageDef: monarchSyntax,
+                codeResources: {
+                    main: {
+                        text: '// <%= RawLanguageName %> is running in the web!',
+                        uri: '/workspace/hello-world.<%= file-extension %>',
+                    }
+                },
+                languageDef: {
+                    languageExtensionConfig: { id: '<%= language-id %>' },
+                    monarchLanguage: monarchSyntax
+                },
                 editorOptions: {
                     'semanticHighlighting.enabled': true,
                     theme: 'vs-dark'
diff --git a/packages/generator-langium/templates/packages/web/src/setupCommon.ts b/packages/generator-langium/templates/packages/web/src/setupCommon.ts
index 01b35c510..9ea24b57d 100644
--- a/packages/generator-langium/templates/packages/web/src/setupCommon.ts
+++ b/packages/generator-langium/templates/packages/web/src/setupCommon.ts
@@ -26,12 +26,13 @@ export const configureMonacoWorkers = () => {
 
 export const configureWorker = (): LanguageClientConfig => {
     // vite does not extract the worker properly if it is URL is a variable
-    const lsWorker = new Worker(new URL('./language/main-browser', import.meta.url), {
+    const lsWorker = new Worker(new URL('./main-browser', import.meta.url), {
         type: 'module',
         name: '<%= LanguageName %> Language Server'
     });
 
     return {
+        languageId: '<%= language-id %>',
         options: {
             $type: 'WorkerDirect',
             worker: lsWorker
diff --git a/packages/generator-langium/templates/packages/web/src/setupExtended.ts b/packages/generator-langium/templates/packages/web/src/setupExtended.ts
index 27976b8c3..080894440 100644
--- a/packages/generator-langium/templates/packages/web/src/setupExtended.ts
+++ b/packages/generator-langium/templates/packages/web/src/setupExtended.ts
@@ -4,16 +4,19 @@ import { configureWorker, defineUserServices } from './setupCommon.js';
 export const setupConfigExtended = (): UserConfig => {
     const extensionFilesOrContents = new Map();
     extensionFilesOrContents.set('/language-configuration.json', new URL('../language-configuration.json', import.meta.url));
-    extensionFilesOrContents.set('/<%= language-id %>-grammar.json', new URL('../syntaxes/<%= language-id %>.tmLanguage.json', import.meta.url));
+    extensionFilesOrContents.set('/<%= language-id %>-grammar.json', new URL('../../language/syntaxes/<%= language-id %>.tmLanguage.json', import.meta.url));
 
     return {
         wrapperConfig: {
             serviceConfig: defineUserServices(),
             editorAppConfig: {
                 $type: 'extended',
-                languageId: '<%= language-id %>',
-                code: `// <%= RawLanguageName %> is running in the web!`,
-                useDiffEditor: false,
+                codeResources: {
+                    main: {
+                        text: '// <%= RawLanguageName %> is running in the web!',
+                        uri: '/workspace/hello-world.<%= file-extension %>',
+                    }
+                },
                 extensions: [{
                     config: {
                         name: '<%= language-id %>-web',
diff --git a/packages/generator-langium/templates/packages/web/tsconfig.json b/packages/generator-langium/templates/packages/web/tsconfig.json
index ba2175fbe..7f2fb0c6e 100644
--- a/packages/generator-langium/templates/packages/web/tsconfig.json
+++ b/packages/generator-langium/templates/packages/web/tsconfig.json
@@ -4,6 +4,7 @@
         "rootDir": "src",
         "outDir": "out",
         "declarationDir": "out",
+        "lib": ["ES2022", "dom"]
     },
     "references": [
         {
diff --git a/packages/generator-langium/templates/tsconfig.json b/packages/generator-langium/templates/tsconfig.json
index 8c7ada131..a423856e4 100644
--- a/packages/generator-langium/templates/tsconfig.json
+++ b/packages/generator-langium/templates/tsconfig.json
@@ -1,9 +1,9 @@
 {
   "compilerOptions": {
     "target": "ES2020",
-    "module": "ES2020",
+    "module": "ES2022",
     "moduleResolution": "Bundler",
-    "lib": ["ES2020"],
+    "lib": ["ES2022"],
     "sourceMap": true,
     "strict": true,
     "noUnusedLocals": true,