diff --git a/development/.vscode/settings.json b/development/.vscode/settings.json
deleted file mode 100644
index 78469229..00000000
--- a/development/.vscode/settings.json
+++ /dev/null
@@ -1,4 +0,0 @@
-{
-    "python.pythonPath": "frappe-bench/env/bin/python",
-    "debug.node.autoAttach": "disabled"
-}
\ No newline at end of file
diff --git a/development/README.md b/development/README.md
index c4b6ca11..48760cf9 100644
--- a/development/README.md
+++ b/development/README.md
@@ -28,6 +28,12 @@ Copy example devcontainer config from `devcontainer-example` to `.devcontainer`
 cp -R devcontainer-example .devcontainer
 ```
 
+Copy example vscode config for devcontainer from `development/vscode-example` to `development/.vscode`. This will setup basic configuration for debugging.
+
+```shell
+cp -R development/vscode-example development/.vscode
+```
+
 ## Use VSCode Remote Containers extension
 
 For most people getting started with Frappe development, the best solution is to use [VSCode Remote - Containers extension](https://marketplace.visualstudio.com/items?itemName=ms-vscode-remote.remote-containers).
@@ -208,6 +214,8 @@ You can now login with user `Administrator` and the password you choose when cre
 
 To debug workers, skip starting worker with honcho and start it with VSCode debugger.
 
+For advance vscode configuration in the devcontainer, change the config files in `development/.vscode`.
+
 ## Developing using the interactive console
 
 You can launch a simple interactive shell console in the terminal with:
diff --git a/development/.vscode/launch.json b/development/vscode-example/launch.json
similarity index 86%
rename from development/.vscode/launch.json
rename to development/vscode-example/launch.json
index 8cd61e74..0c8046bb 100644
--- a/development/.vscode/launch.json
+++ b/development/vscode-example/launch.json
@@ -12,6 +12,7 @@
             "args": [
                 "frappe", "serve", "--port", "8000", "--noreload", "--nothreading"
             ],
+            "pythonPath": "${workspaceFolder}/frappe-bench/env/bin/python",
             "cwd": "${workspaceFolder}/frappe-bench/sites",
             "env": {
                 "DEV_SERVER": "1"
@@ -25,6 +26,7 @@
             "args": [
                 "frappe", "worker", "--queue", "default"
             ],
+            "pythonPath": "${workspaceFolder}/frappe-bench/env/bin/python",
             "cwd": "${workspaceFolder}/frappe-bench/sites",
             "env": {
                 "DEV_SERVER": "1"
@@ -38,6 +40,7 @@
             "args": [
                 "frappe", "worker", "--queue", "short"
             ],
+            "pythonPath": "${workspaceFolder}/frappe-bench/env/bin/python",
             "cwd": "${workspaceFolder}/frappe-bench/sites",
             "env": {
                 "DEV_SERVER": "1"
@@ -51,6 +54,7 @@
             "args": [
                 "frappe", "worker", "--queue", "long"
             ],
+            "pythonPath": "${workspaceFolder}/frappe-bench/env/bin/python",
             "cwd": "${workspaceFolder}/frappe-bench/sites",
             "env": {
                 "DEV_SERVER": "1"
@@ -61,6 +65,7 @@
             "type": "python",
             "request": "launch",
             "program": "/home/frappe/.local/bin/honcho",
+            "pythonPath": "${workspaceFolder}/frappe-bench/env/bin/python",
             "cwd": "${workspaceFolder}/frappe-bench",
             "console": "internalConsole",
             "args": [
diff --git a/development/vscode-example/settings.json b/development/vscode-example/settings.json
new file mode 100644
index 00000000..b0f14919
--- /dev/null
+++ b/development/vscode-example/settings.json
@@ -0,0 +1,3 @@
+{
+    "debug.node.autoAttach": "disabled"
+}
\ No newline at end of file