diff --git a/.github/workflows/build-and-test.yml b/.github/workflows/build-and-test.yml
index 8874d72a74..b0d7d89532 100644
--- a/.github/workflows/build-and-test.yml
+++ b/.github/workflows/build-and-test.yml
@@ -68,6 +68,10 @@ jobs:
         run: |
           npm ci
 
+      - name: Stamp build as pull request version
+        run: |
+          node scripts/stamp-prerelease-version.mjs "${{ github.run_id }}" --label pr
+
       - name: MSSQL - Install dependencies and build
         uses: ./.github/actions/build-mssql
 
@@ -86,7 +90,7 @@ jobs:
       # that increase size
       - name: Package extensions
         run: |
-          npm run package
+          npm run package -- --preview
 
       - name: MSSQL - Upload VSIX files
         uses: actions/upload-artifact@v6
diff --git a/build/PullRequest.yml b/build/PullRequest.yml
index 5f9a06cccd..87b207fc8f 100644
--- a/build/PullRequest.yml
+++ b/build/PullRequest.yml
@@ -12,6 +12,11 @@ steps:
     displayName: Install root dependencies
     workingDirectory: "$(Build.SourcesDirectory)"
 
+  - pwsh: |
+      node scripts/stamp-prerelease-version.mjs "$(Build.BuildNumber)" --label pr
+    displayName: Stamp build as pull request version
+    workingDirectory: "$(Build.SourcesDirectory)"
+
   - template: ./templates/build-mssql.yml@self
     parameters:
       packageOffline: false # don't build offline packages for PR builds to speed runs up
diff --git a/build/templates/build-data-workspace.yml b/build/templates/build-data-workspace.yml
index 8f152ca93c..27839dfe52 100644
--- a/build/templates/build-data-workspace.yml
+++ b/build/templates/build-data-workspace.yml
@@ -33,7 +33,7 @@ steps:
     condition: succeededOrFailed()
 
   - pwsh: |
-      npm run package -- --target data-workspace
+      npm run package -- --target data-workspace --preview
     displayName: DataWorkspace - Package extension
     workingDirectory: "$(Build.SourcesDirectory)"
 
diff --git a/build/templates/build-database-management-keymap.yml b/build/templates/build-database-management-keymap.yml
index 3a7f2895f7..d1b35487c8 100644
--- a/build/templates/build-database-management-keymap.yml
+++ b/build/templates/build-database-management-keymap.yml
@@ -5,7 +5,7 @@ steps:
       version: 24.x
 
   - pwsh: |
-      npm run package -- --target database-management-keymap
+      npm run package -- --target database-management-keymap --preview
     displayName: Keymap - Package extension
     workingDirectory: "$(Build.SourcesDirectory)"
 
diff --git a/build/templates/build-mssql.yml b/build/templates/build-mssql.yml
index 289a4e9adc..e4ab0adff9 100644
--- a/build/templates/build-mssql.yml
+++ b/build/templates/build-mssql.yml
@@ -38,12 +38,12 @@ steps:
     condition: succeededOrFailed()
 
   - pwsh: |
-      npm run package -- --target mssql --online
+      npm run package -- --target mssql --online --preview
     displayName: MSSQL - Package extension (online)
     workingDirectory: "$(Build.SourcesDirectory)"
 
   - pwsh: |
-      npm run package -- --target mssql --offline
+      npm run package -- --target mssql --offline --preview
     displayName: MSSQL - Package extension (offline)
     workingDirectory: "$(Build.SourcesDirectory)"
     condition: eq( ${{ parameters.packageOffline }}, 'true')
diff --git a/build/templates/build-sql-database-projects.yml b/build/templates/build-sql-database-projects.yml
index a1a84afece..074e72d6d7 100644
--- a/build/templates/build-sql-database-projects.yml
+++ b/build/templates/build-sql-database-projects.yml
@@ -34,7 +34,7 @@ steps:
     continueOnError: true
 
   - pwsh: |
-      npm run package -- --target sql-database-projects
+      npm run package -- --target sql-database-projects --preview
     displayName: SqlProj - Package extension
     workingDirectory: "$(Build.SourcesDirectory)"
 
diff --git a/extensions/mssql/scripts/package-extension.js b/extensions/mssql/scripts/package-extension.js
index 305136cb6b..1e65aac95c 100644
--- a/extensions/mssql/scripts/package-extension.js
+++ b/extensions/mssql/scripts/package-extension.js
@@ -13,6 +13,7 @@ const args = process.argv.slice(2);
 let isOnline = args.includes("--online");
 const isOffline = args.includes("--offline");
 const skipServiceInstall = args.includes("--skip-service-install");
+const isPreRelease = args.includes("--pre-release");
 const npmCommand = process.platform === "win32" ? "npm.cmd" : "npm";
 
 // Platform configurations for offline packaging
@@ -100,12 +101,16 @@ async function cleanServiceInstallFolder() {
 /**
  * Package extension using vsce
  */
-function packageExtension(packageName = null) {
+function packageExtension(packageName = null, preRelease = false) {
     logger.step("Packaging extension with vsce...");
 
     try {
         const vsceArgs = ["exec", "--", "vsce", "package", "--no-dependencies"];
 
+        if (preRelease) {
+            vsceArgs.push("--pre-release");
+        }
+
         if (packageName) {
             vsceArgs.push("-o", packageName);
         }
@@ -124,7 +129,7 @@ function packageExtension(packageName = null) {
  * Package extension for online distribution
  */
 async function packageOnline(options = {}) {
-    const { skipServiceInstall = false } = options;
+    const { skipServiceInstall = false, preRelease = false } = options;
 
     logger.header("Package extension (Online Mode)");
     logger.info("Creating extension package with portable SQL Tools Service");
@@ -139,7 +144,7 @@ async function packageOnline(options = {}) {
             await installSqlToolsService(platform.Runtime.Portable);
         }
         // Package the extension
-        packageExtension();
+        packageExtension(null, preRelease);
         logger.success("Online packaging completed successfully!");
     } catch (error) {
         logger.error(`Online packaging failed: ${error.message}`);
@@ -150,7 +155,7 @@ async function packageOnline(options = {}) {
 /**
  * Package extension for a specific platform (offline)
  */
-async function packageOfflinePlatform(platformConfig, packageName) {
+async function packageOfflinePlatform(platformConfig, packageName, preRelease = false) {
     const { rid, runtime } = platformConfig;
 
     logger.step(`Packaging for ${rid}...`);
@@ -166,7 +171,7 @@ async function packageOfflinePlatform(platformConfig, packageName) {
         await installSqlToolsService(runtimeValue);
         // Package with platform-specific name
         const platformPackageName = `${packageName}-${rid}.vsix`;
-        packageExtension(platformPackageName);
+        packageExtension(platformPackageName, preRelease);
         logger.success(`${rid} package created`);
     } catch (error) {
         logger.error(`Failed to package ${rid}: ${error.message}`);
@@ -177,7 +182,8 @@ async function packageOfflinePlatform(platformConfig, packageName) {
 /**
  * Package extension for offline distribution (all platforms)
  */
-async function packageOffline() {
+async function packageOffline(options = {}) {
+    const { preRelease = false } = options;
     logger.header("Package extension (Offline Mode)");
 
     try {
@@ -200,7 +206,7 @@ async function packageOffline() {
                 );
 
                 try {
-                    await packageOfflinePlatform(platformConfig, packageName);
+                    await packageOfflinePlatform(platformConfig, packageName, preRelease);
                 } catch (error) {
                     logger.warning(`Skipping ${platformConfig.rid}: ${error.message}`);
                 }
@@ -230,6 +236,7 @@ Modes:
   --online     Package with portable SQL Tools Service (requires dotnet runtime at runtime). Default if not specified.
   --offline    Package with native self-contained SQL Tools Service for each platform (no dotnet needed).
     --skip-service-install  Online mode only. Reuse existing SQL Tools Service files and skip clean/install.
+  --pre-release  Mark the package as a pre-release extension.
   --help       Show this help message
 
 Examples:
@@ -272,9 +279,9 @@ async function main() {
 
     try {
         if (isOnline) {
-            await packageOnline({ skipServiceInstall });
+            await packageOnline({ skipServiceInstall, preRelease: isPreRelease });
         } else if (isOffline) {
-            await packageOffline();
+            await packageOffline({ preRelease: isPreRelease });
         }
 
         logger.success("Packaging script completed successfully!");
diff --git a/scripts/stamp-prerelease-version.mjs b/scripts/stamp-prerelease-version.mjs
new file mode 100644
index 0000000000..19062aae63
--- /dev/null
+++ b/scripts/stamp-prerelease-version.mjs
@@ -0,0 +1,93 @@
+// Stamps a pre-release version onto every extension's package.json.
+// New version format: <currentVersion>-<label>.<buildId>+<shortGitHash>
+//
+// Usage:
+//   node scripts/stamp-prerelease-version.mjs <buildId> --label <label>
+//
+// Both arguments are required. Callers pick a label appropriate for their flow:
+//   - "preview" for official/buddy publishing pipelines
+//   - "pr" for PR-validation pipelines
+
+import { execSync } from "node:child_process";
+import { readFileSync, writeFileSync } from "node:fs";
+import path from "node:path";
+import process from "node:process";
+
+const EXTENSIONS = [
+    "mssql",
+    "sql-database-projects",
+    "data-workspace",
+    "database-management-keymap",
+];
+
+const USAGE = "Usage: node scripts/stamp-prerelease-version.mjs <buildId> --label <label>";
+
+function parseArgs(argv) {
+    let buildId;
+    let label;
+
+    for (let i = 0; i < argv.length; i++) {
+        const arg = argv[i];
+        if (arg === "--label") {
+            label = argv[i + 1];
+            i++;
+            continue;
+        }
+        if (arg.startsWith("--label=")) {
+            label = arg.slice("--label=".length);
+            continue;
+        }
+        if (!buildId) {
+            buildId = arg;
+            continue;
+        }
+    }
+
+    return { buildId, label };
+}
+
+function main() {
+    const { buildId, label } = parseArgs(process.argv.slice(2));
+
+    if (!buildId || buildId.trim().length === 0) {
+        console.error("Missing required <buildId> argument.");
+        console.error(USAGE);
+        process.exit(1);
+    }
+
+    if (!label || label.trim().length === 0) {
+        console.error("Missing required --label argument.");
+        console.error(USAGE);
+        process.exit(1);
+    }
+
+    const commitHash = execSync("git rev-parse HEAD", { encoding: "utf8" }).trim();
+    const shortHash = commitHash.slice(0, 7);
+
+    for (const ext of EXTENSIONS) {
+        const packagePath = path.join("extensions", ext, "package.json");
+        const original = readFileSync(packagePath, "utf8");
+
+        const json = JSON.parse(original);
+        const currentVersion = json.version;
+        if (!currentVersion) {
+            throw new Error(`No "version" field found in ${packagePath}`);
+        }
+
+        const newVersion = `${currentVersion}-${label}.${buildId}+${shortHash}`;
+        console.log(`Updating ${packagePath}: ${currentVersion} -> ${newVersion}`);
+
+        const updated = original.replace(
+            /"version"\s*:\s*"[^"]+"/,
+            `"version": "${newVersion}"`,
+        );
+
+        if (updated === original) {
+            throw new Error(`Failed to update version field in ${packagePath}`);
+        }
+
+        writeFileSync(packagePath, updated);
+    }
+}
+
+main();
diff --git a/scripts/workspaces.mjs b/scripts/workspaces.mjs
index b808904b5d..78bbac4ccf 100644
--- a/scripts/workspaces.mjs
+++ b/scripts/workspaces.mjs
@@ -22,6 +22,7 @@ function parseArgs(argv) {
         action,
         forwardedArgs: [],
         prod: false,
+        prerelease: false,
         requireTarget: false,
         targetValue: undefined,
     };
@@ -45,6 +46,11 @@ function parseArgs(argv) {
             continue;
         }
 
+        if (arg === "--preview" || arg === "--pre-release") {
+            options.prerelease = true;
+            continue;
+        }
+
         if (arg === "--require-target") {
             options.requireTarget = true;
             continue;
@@ -64,7 +70,7 @@ function printUsage() {
   npm run test [-- --target <name>[,<name>]] [-- <target args>]
   npm run smoketest [-- --target <name>[,<name>]] [-- <target args>]
   npm run lint [-- --target <name>[,<name>]]
-  npm run package [-- --target <name>[,<name>]] [-- <target args>]
+  npm run package [-- --target <name>[,<name>]] [--preview|--pre-release] [-- <target args>]
   npm run list:targets
 `);
 }
@@ -209,7 +215,7 @@ function listTargets() {
 }
 
 function main() {
-    const { action, forwardedArgs, prod, requireTarget, targetValue } = parseArgs(
+    const { action, forwardedArgs, prod, prerelease, requireTarget, targetValue } = parseArgs(
         process.argv.slice(2),
     );
 
@@ -235,10 +241,23 @@ function main() {
         );
     }
 
+    if (prerelease && action !== "package") {
+        throw new Error(
+            `The --preview/--pre-release flag is only supported for the "package" action.`,
+        );
+    }
+
     const targets = resolveTargets(action, targetValue);
     ensureProdBuildSupport(targets, prod);
 
-    const actionArgs = prod ? [...forwardedArgs, "--prod"] : forwardedArgs;
+    let actionArgs = forwardedArgs;
+    if (prod) {
+        actionArgs = [...actionArgs, "--prod"];
+    }
+
+    if (prerelease) {
+        actionArgs = [...actionArgs, "--pre-release"];
+    }
 
     if (action === "watch") {
         const watchableTargets = pruneRedundantWatchTargets(targets);