diff --git a/app/graphql/mutations/user_preferences/update.rb b/app/graphql/mutations/user_preferences/update.rb
index 16c7b37532c5d36eb187f4ec81a51ad954962e01..111bd2587757e78ad55bbd457249a23b0e959f50 100644
--- a/app/graphql/mutations/user_preferences/update.rb
+++ b/app/graphql/mutations/user_preferences/update.rb
@@ -5,9 +5,17 @@ module UserPreferences
     class Update < BaseMutation
       graphql_name 'UserPreferencesUpdate'
 
+      NON_NULLABLE_ARGS = [
+        :use_web_ide_extension_marketplace,
+        :visibility_pipeline_id_type
+      ].freeze
+
       argument :issues_sort, Types::IssueSortEnum,
                required: false,
                description: 'Sort order for issue lists.'
+      argument :use_web_ide_extension_marketplace, GraphQL::Types::Boolean,
+               required: false,
+               description: 'Whether Web IDE Extension Marketplace is enabled for the user.'
       argument :visibility_pipeline_id_type, Types::VisibilityPipelineIdTypeEnum,
                required: false,
                description: 'Determines whether the pipeline list shows ID or IID.'
@@ -18,6 +26,7 @@ class Update < BaseMutation
             description: 'User preferences after mutation.'
 
       def resolve(**attributes)
+        attributes.delete_if { |key, value| NON_NULLABLE_ARGS.include?(key) && value.nil? }
         user_preferences = current_user.user_preference
         user_preferences.update(attributes)
 
diff --git a/app/graphql/types/user_preferences_type.rb b/app/graphql/types/user_preferences_type.rb
index 094c7352c96b67ee801630842aa260b21fa4a4eb..e9ac3a28a5303c6a60996bcddcffcba2dd9becce 100644
--- a/app/graphql/types/user_preferences_type.rb
+++ b/app/graphql/types/user_preferences_type.rb
@@ -14,6 +14,10 @@ class UserPreferencesType < BaseObject
       description: 'Determines whether the pipeline list shows ID or IID.',
       null: true
 
+    field :use_web_ide_extension_marketplace, GraphQL::Types::Boolean,
+      description: 'Whether Web IDE Extension Marketplace is enabled for the user.',
+      null: false
+
     def issues_sort
       object.issues_sort.to_sym
     end
diff --git a/app/models/user.rb b/app/models/user.rb
index d7880579092823ad8c0218f2ee731874df2772dc..87249f7cf1b81172a8947fac656e6cb1de3379a7 100644
--- a/app/models/user.rb
+++ b/app/models/user.rb
@@ -388,6 +388,7 @@ def update_tracked_fields!(request)
     :tab_width, :tab_width=,
     :sourcegraph_enabled, :sourcegraph_enabled=,
     :gitpod_enabled, :gitpod_enabled=,
+    :use_web_ide_extension_marketplace, :use_web_ide_extension_marketplace=,
     :setup_for_company, :setup_for_company=,
     :project_shortcut_buttons, :project_shortcut_buttons=,
     :keyboard_shortcuts_enabled, :keyboard_shortcuts_enabled=,
diff --git a/app/models/user_preference.rb b/app/models/user_preference.rb
index b8c4c8597a47be713ff466ae3d25d88543d77863..70ffe0c85f8269fe5d120bd7be87626288054ff4 100644
--- a/app/models/user_preference.rb
+++ b/app/models/user_preference.rb
@@ -42,6 +42,7 @@ class UserPreference < MainClusterwide::ApplicationRecord
   attribute :render_whitespace_in_code, default: false
   attribute :project_shortcut_buttons, default: true
   attribute :keyboard_shortcuts_enabled, default: true
+  attribute :use_web_ide_extension_marketplace, default: false
 
   enum visibility_pipeline_id_type: { id: 0, iid: 1 }
 
diff --git a/db/migrate/20231206183312_add_use_web_ide_extension_marketplace_to_user_preferences.rb b/db/migrate/20231206183312_add_use_web_ide_extension_marketplace_to_user_preferences.rb
new file mode 100644
index 0000000000000000000000000000000000000000..1ea85760dbca96d71a7b54e4ee18272cd490f51e
--- /dev/null
+++ b/db/migrate/20231206183312_add_use_web_ide_extension_marketplace_to_user_preferences.rb
@@ -0,0 +1,10 @@
+# frozen_string_literal: true
+
+class AddUseWebIdeExtensionMarketplaceToUserPreferences < Gitlab::Database::Migration[2.2]
+  milestone '16.7'
+  enable_lock_retries!
+
+  def change
+    add_column :user_preferences, :use_web_ide_extension_marketplace, :boolean, default: false, null: false
+  end
+end
diff --git a/db/schema_migrations/20231206183312 b/db/schema_migrations/20231206183312
new file mode 100644
index 0000000000000000000000000000000000000000..639acbcf395790b99925a202c6c57ecc88fc0364
--- /dev/null
+++ b/db/schema_migrations/20231206183312
@@ -0,0 +1 @@
+6b1b75bc747a32ef9b360c4077579e8979eda1f81783c58b213a23803799ae31
\ No newline at end of file
diff --git a/db/structure.sql b/db/structure.sql
index 1f2ed208630eaf7c2c356a4365156886625d4c9b..cb9877ecb6763421a69a9d7885e7df3f8dc2312a 100644
--- a/db/structure.sql
+++ b/db/structure.sql
@@ -24664,6 +24664,7 @@ CREATE TABLE user_preferences (
     keyboard_shortcuts_enabled boolean DEFAULT true NOT NULL,
     time_display_format smallint DEFAULT 0 NOT NULL,
     home_organization_id bigint,
+    use_web_ide_extension_marketplace boolean DEFAULT false NOT NULL,
     CONSTRAINT check_89bf269f41 CHECK ((char_length(diffs_deletion_color) <= 7)),
     CONSTRAINT check_d07ccd35f7 CHECK ((char_length(diffs_addition_color) <= 7))
 );
diff --git a/doc/api/graphql/reference/index.md b/doc/api/graphql/reference/index.md
index 3f998bdef3155468a1fdfcb164e3a6df1283f16d..ccab04338899dd4802587109971d5fd567e81aab 100644
--- a/doc/api/graphql/reference/index.md
+++ b/doc/api/graphql/reference/index.md
@@ -8012,6 +8012,7 @@ Input type: `UserPreferencesUpdateInput`
 | ---- | ---- | ----------- |
 | <a id="mutationuserpreferencesupdateclientmutationid"></a>`clientMutationId` | [`String`](#string) | A unique identifier for the client performing the mutation. |
 | <a id="mutationuserpreferencesupdateissuessort"></a>`issuesSort` | [`IssueSort`](#issuesort) | Sort order for issue lists. |
+| <a id="mutationuserpreferencesupdateusewebideextensionmarketplace"></a>`useWebIdeExtensionMarketplace` | [`Boolean`](#boolean) | Whether Web IDE Extension Marketplace is enabled for the user. |
 | <a id="mutationuserpreferencesupdatevisibilitypipelineidtype"></a>`visibilityPipelineIdType` | [`VisibilityPipelineIdType`](#visibilitypipelineidtype) | Determines whether the pipeline list shows ID or IID. |
 
 #### Fields
@@ -27923,6 +27924,7 @@ fields relate to interactions between the two entities.
 | Name | Type | Description |
 | ---- | ---- | ----------- |
 | <a id="userpreferencesissuessort"></a>`issuesSort` | [`IssueSort`](#issuesort) | Sort order for issue lists. |
+| <a id="userpreferencesusewebideextensionmarketplace"></a>`useWebIdeExtensionMarketplace` | [`Boolean!`](#boolean) | Whether Web IDE Extension Marketplace is enabled for the user. |
 | <a id="userpreferencesvisibilitypipelineidtype"></a>`visibilityPipelineIdType` | [`VisibilityPipelineIdType`](#visibilitypipelineidtype) | Determines whether the pipeline list shows ID or IID. |
 
 ### `UserStatus`
diff --git a/spec/graphql/types/user_preferences_type_spec.rb b/spec/graphql/types/user_preferences_type_spec.rb
index 06749dda239ca85ee764520322184ee522b32c19..87fac17a5ba6b7d21457950f8645009716152b18 100644
--- a/spec/graphql/types/user_preferences_type_spec.rb
+++ b/spec/graphql/types/user_preferences_type_spec.rb
@@ -9,6 +9,7 @@
     expected_fields = %i[
       issues_sort
       visibility_pipeline_id_type
+      use_web_ide_extension_marketplace
     ]
 
     expect(described_class).to have_graphql_fields(*expected_fields)
diff --git a/spec/requests/api/graphql/mutations/user_preferences/update_spec.rb b/spec/requests/api/graphql/mutations/user_preferences/update_spec.rb
index 65b8083c74f402727a4a887275f5c4d938a450d5..b1cd3259eebe8ffab06e127dde36ccaf61ad45af 100644
--- a/spec/requests/api/graphql/mutations/user_preferences/update_spec.rb
+++ b/spec/requests/api/graphql/mutations/user_preferences/update_spec.rb
@@ -12,7 +12,8 @@
   let(:input) do
     {
       'issuesSort' => sort_value,
-      'visibilityPipelineIdType' => 'IID'
+      'visibilityPipelineIdType' => 'IID',
+      'useWebIdeExtensionMarketplace' => true
     }
   end
 
@@ -26,19 +27,26 @@
       expect(response).to have_gitlab_http_status(:success)
       expect(mutation_response['userPreferences']['issuesSort']).to eq(sort_value)
       expect(mutation_response['userPreferences']['visibilityPipelineIdType']).to eq('IID')
+      expect(mutation_response['userPreferences']['useWebIdeExtensionMarketplace']).to eq(true)
 
       expect(current_user.user_preference.persisted?).to eq(true)
       expect(current_user.user_preference.issues_sort).to eq(Types::IssueSortEnum.values[sort_value].value.to_s)
       expect(current_user.user_preference.visibility_pipeline_id_type).to eq('iid')
+      expect(current_user.user_preference.use_web_ide_extension_marketplace).to eq(true)
     end
   end
 
   context 'when user has existing preference' do
-    before do
-      current_user.create_user_preference!(
+    let(:init_user_preference) do
+      {
         issues_sort: Types::IssueSortEnum.values['TITLE_DESC'].value,
-        visibility_pipeline_id_type: 'id'
-      )
+        visibility_pipeline_id_type: 'id',
+        use_web_ide_extension_marketplace: true
+      }
+    end
+
+    before do
+      current_user.create_user_preference!(init_user_preference)
     end
 
     it 'updates the existing value' do
@@ -53,5 +61,29 @@
       expect(current_user.user_preference.issues_sort).to eq(Types::IssueSortEnum.values[sort_value].value.to_s)
       expect(current_user.user_preference.visibility_pipeline_id_type).to eq('iid')
     end
+
+    context 'when input has nil attributes' do
+      let(:input) do
+        {
+          'issuesSort' => nil,
+          'visibilityPipelineIdType' => nil,
+          'useWebIdeExtensionMarketplace' => nil
+        }
+      end
+
+      it 'updates only nullable attributes' do
+        post_graphql_mutation(mutation, current_user: current_user)
+
+        current_user.user_preference.reload
+
+        expect(current_user.user_preference).to have_attributes({
+          # These are nullable and are exepcted to change
+          issues_sort: nil,
+          # These should not have changed
+          visibility_pipeline_id_type: init_user_preference[:visibility_pipeline_id_type],
+          use_web_ide_extension_marketplace: init_user_preference[:use_web_ide_extension_marketplace]
+        })
+      end
+    end
   end
 end