diff --git a/app/graphql/mutations/user_preferences/update.rb b/app/graphql/mutations/user_preferences/update.rb
index 69c81655410d48a73a338418fdea190b30ae0fb2..4c1df3f22b4ee1dfc702502b42621ab72ecc6b1f 100644
--- a/app/graphql/mutations/user_preferences/update.rb
+++ b/app/graphql/mutations/user_preferences/update.rb
@@ -53,6 +53,12 @@ class Update < BaseMutation
 
       def resolve(**attributes)
         attributes.delete_if { |key, value| NON_NULLABLE_ARGS.include?(key) && value.nil? }
+
+        if attributes.include?(:extensions_marketplace_opt_in_status)
+          attributes[:extensions_marketplace_opt_in_url] =
+            ::WebIde::ExtensionMarketplace.marketplace_home_url(user: current_user)
+        end
+
         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 30ac5ae5df7fdb3bd225cf9bf63e54ee4cd33e14..cb8129f32a8757084cab2af1b125ce07fd1ed5d5 100644
--- a/app/graphql/types/user_preferences_type.rb
+++ b/app/graphql/types/user_preferences_type.rb
@@ -64,5 +64,14 @@ def projects_sort
     def organization_groups_projects_sort
       user_preference.organization_groups_projects_sort&.to_sym
     end
+
+    def extensions_marketplace_opt_in_status
+      user = user_preference.user
+
+      ::WebIde::ExtensionMarketplaceOptIn.opt_in_status(
+        user: user,
+        marketplace_home_url: ::WebIde::ExtensionMarketplace.marketplace_home_url(user: user)
+      )
+    end
   end
 end
diff --git a/app/models/user.rb b/app/models/user.rb
index c405cf5c8ab09f2891c0705169c3bb45237b8472..53e02eccecdb3cd36da14a684448d7564a51510f 100644
--- a/app/models/user.rb
+++ b/app/models/user.rb
@@ -443,9 +443,9 @@ def update_tracked_fields!(request)
     :sourcegraph_enabled, :sourcegraph_enabled=,
     :gitpod_enabled, :gitpod_enabled=,
     :extensions_marketplace_opt_in_status, :extensions_marketplace_opt_in_status=,
+    :extensions_marketplace_opt_in_url, :extensions_marketplace_opt_in_url=,
     :organization_groups_projects_sort, :organization_groups_projects_sort=,
     :organization_groups_projects_display, :organization_groups_projects_display=,
-    :extensions_marketplace_enabled, :extensions_marketplace_enabled=,
     :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 9f2e6715c6a5fcffd25869e64c6920e2365a12ed..01259f993a947c7d528f85b6942d7394e9ecd0d4 100644
--- a/app/models/user_preference.rb
+++ b/app/models/user_preference.rb
@@ -29,6 +29,7 @@ class UserPreference < ApplicationRecord
   validates :pinned_nav_items, json_schema: { filename: 'pinned_nav_items' }
 
   validates :time_display_format, inclusion: { in: TIME_DISPLAY_FORMATS.values }, presence: true
+  validates :extensions_marketplace_opt_in_url, length: { maximum: 512 }
 
   validate :user_belongs_to_home_organization, if: :home_organization_changed?
 
@@ -90,16 +91,9 @@ def early_access_event_tracking?
     early_access_program_participant? && early_access_program_tracking?
   end
 
-  # NOTE: Despite this returning a boolean, it does not end in `?` out of
-  #       symmetry with the other integration fields like `gitpod_enabled`
-  def extensions_marketplace_enabled
-    extensions_marketplace_opt_in_status == "enabled"
-  end
-
-  def extensions_marketplace_enabled=(value)
-    status = ActiveRecord::Type::Boolean.new.cast(value) ? 'enabled' : 'disabled'
-
-    self.extensions_marketplace_opt_in_status = status
+  def extensions_marketplace_opt_in_url
+    # To support existing records, this can be `nil` and it defaults to `https://open-vsx.org`
+    super || 'https://open-vsx.org'
   end
 
   def dpop_enabled=(value)
diff --git a/app/services/users/update_service.rb b/app/services/users/update_service.rb
index 42ffc79b4c6c36e7fddea41b4eea24be9791c5fe..29559540defb6070b829f2e4b5b5a325284d3813 100644
--- a/app/services/users/update_service.rb
+++ b/app/services/users/update_service.rb
@@ -29,6 +29,7 @@ def execute(validate: true, check_password: false, &block)
       @user.user_detail # prevent assignment
 
       discard_read_only_attributes
+      append_extension_marketplace_attributes
       assign_attributes
 
       if check_password && require_password_check? && !@user.valid_password?(@validation_password)
@@ -141,6 +142,19 @@ def synced_attributes
       end
     end
 
+    def append_extension_marketplace_attributes
+      return unless params.has_key?(:extensions_marketplace_enabled)
+
+      value = params.delete(:extensions_marketplace_enabled)
+      marketplace_home_url = ::WebIde::ExtensionMarketplace.marketplace_home_url(user: @user)
+      update_params = ::WebIde::ExtensionMarketplaceOptIn.params(
+        enabled: value,
+        marketplace_home_url: marketplace_home_url
+      )
+
+      params.merge!(update_params)
+    end
+
     def assign_attributes
       @user.assign_attributes(params.except(*identity_attributes)) unless params.empty?
     end
diff --git a/app/views/profiles/preferences/show.html.haml b/app/views/profiles/preferences/show.html.haml
index b448cf5443f2b869b59f25945bd694c548a8b3dd..bdd44063db2cd1d4e17d6e051083853d28bb60c1 100644
--- a/app/views/profiles/preferences/show.html.haml
+++ b/app/views/profiles/preferences/show.html.haml
@@ -3,7 +3,9 @@
 - user_theme_id = Gitlab::Themes.for_user(@user).id
 - user_color_mode_id = Gitlab::ColorModes.for_user(@user).id
 - user_color_schema_id = Gitlab::ColorSchemes.for_user(@user).id
-- user_fields = { color_mode_id: user_color_mode_id, theme: user_theme_id, gitpod_enabled: @user.gitpod_enabled, sourcegraph_enabled: @user.sourcegraph_enabled, extensions_marketplace_enabled: @user.extensions_marketplace_enabled }.to_json
+- marketplace_home_url = ::WebIde::ExtensionMarketplace.marketplace_home_url(user: @user)
+- extensions_marketplace_enabled = ::WebIde::ExtensionMarketplaceOptIn.enabled?(user: @user, marketplace_home_url: marketplace_home_url)
+- user_fields = { color_mode_id: user_color_mode_id, theme: user_theme_id, gitpod_enabled: @user.gitpod_enabled, sourcegraph_enabled: @user.sourcegraph_enabled, extensions_marketplace_enabled: extensions_marketplace_enabled }.to_json
 - fixed_help_text = s_('Preferences|Content will be a maximum of 1280 pixels wide.')
 - fluid_help_text = s_('Preferences|Content will span %{percentage} of the page width.').html_safe % { percentage: '100%' }
 - plain_text_editor_help_text = s_('Preferences|Type in plain text, using Markdown.')
diff --git a/db/migrate/20250313163310_add_extension_marketplace_opt_in_url_to_user_preference.rb b/db/migrate/20250313163310_add_extension_marketplace_opt_in_url_to_user_preference.rb
new file mode 100644
index 0000000000000000000000000000000000000000..abe4b6571e1cc1296dece8f86e754a0581db4acc
--- /dev/null
+++ b/db/migrate/20250313163310_add_extension_marketplace_opt_in_url_to_user_preference.rb
@@ -0,0 +1,23 @@
+# frozen_string_literal: true
+
+class AddExtensionMarketplaceOptInUrlToUserPreference < Gitlab::Database::Migration[2.2]
+  milestone '17.10'
+  disable_ddl_transaction!
+
+  def up
+    with_lock_retries do
+      add_column :user_preferences, :extensions_marketplace_opt_in_url, :text, null: true, if_not_exists: true
+    end
+
+    # This is well above the 253 full domain name limit. We go ahead and overshoot because
+    # we may need to store paths in here in the future.
+    # https://webmasters.stackexchange.com/a/16997
+    add_text_limit :user_preferences, :extensions_marketplace_opt_in_url, 512
+  end
+
+  def down
+    with_lock_retries do
+      remove_column :user_preferences, :extensions_marketplace_opt_in_url, if_exists: true
+    end
+  end
+end
diff --git a/db/schema_migrations/20250313163310 b/db/schema_migrations/20250313163310
new file mode 100644
index 0000000000000000000000000000000000000000..d8e5413b7d4abe5ef8a734f064754a40222f8a8e
--- /dev/null
+++ b/db/schema_migrations/20250313163310
@@ -0,0 +1 @@
+ee39402909b559e8c4a4bd1194513df4885bf3bee9e4b8f2392fdd125c27cf61
\ No newline at end of file
diff --git a/db/structure.sql b/db/structure.sql
index 8d988c071aa853ca37dae95cc929090b87157963..1f58ddbbe943d73af848d22cdf82ad05e028744f 100644
--- a/db/structure.sql
+++ b/db/structure.sql
@@ -23500,8 +23500,10 @@ CREATE TABLE user_preferences (
     use_work_items_view boolean DEFAULT false NOT NULL,
     text_editor_type smallint DEFAULT 0 NOT NULL,
     merge_request_dashboard_list_type smallint DEFAULT 0 NOT NULL,
+    extensions_marketplace_opt_in_url text,
     CONSTRAINT check_1d670edc68 CHECK ((time_display_relative IS NOT NULL)),
     CONSTRAINT check_89bf269f41 CHECK ((char_length(diffs_deletion_color) <= 7)),
+    CONSTRAINT check_9b50d9f942 CHECK ((char_length(extensions_marketplace_opt_in_url) <= 512)),
     CONSTRAINT check_b1306f8875 CHECK ((char_length(organization_groups_projects_sort) <= 64)),
     CONSTRAINT check_b22446f91a CHECK ((render_whitespace_in_code IS NOT NULL)),
     CONSTRAINT check_d07ccd35f7 CHECK ((char_length(diffs_addition_color) <= 7)),
diff --git a/ee/lib/ee/web_ide/settings/extension_marketplace_metadata_generator.rb b/ee/lib/ee/web_ide/settings/extension_marketplace_metadata_generator.rb
index b87c82a6bd126a59b9660b5f69dc63ecc73d447a..878cb83f3c4cc3462dcc96060538c3a9cabf71ea 100644
--- a/ee/lib/ee/web_ide/settings/extension_marketplace_metadata_generator.rb
+++ b/ee/lib/ee/web_ide/settings/extension_marketplace_metadata_generator.rb
@@ -20,7 +20,7 @@ def disabled_reasons
           end
 
           override :build_metadata_for_user
-          def build_metadata_for_user(user)
+          def build_metadata_for_user(user:, marketplace_home_url:)
             return metadata_disabled(:enterprise_group_disabled) unless enabled_for_enterprise_group?(user)
 
             super
diff --git a/ee/spec/lib/ee/web_ide/settings/extension_marketplace_metadata_generator_spec.rb b/ee/spec/lib/ee/web_ide/settings/extension_marketplace_metadata_generator_spec.rb
index 46fa65abcae089c81e2bd4e06065b351745d26c5..10c030a3f9630f3c97c4128b97e9774c6f9031c4 100644
--- a/ee/spec/lib/ee/web_ide/settings/extension_marketplace_metadata_generator_spec.rb
+++ b/ee/spec/lib/ee/web_ide/settings/extension_marketplace_metadata_generator_spec.rb
@@ -5,6 +5,7 @@
 RSpec.describe WebIde::Settings::ExtensionMarketplaceMetadataGenerator, feature_category: :web_ide do
   using RSpec::Parameterized::TableSyntax
 
+  let(:marketplace_home_url) { "https://example.com" }
   let(:user_class) do
     stub_const(
       "User",
@@ -26,7 +27,9 @@ def flipper_id
         user: user,
         vscode_extension_marketplace_feature_flag_enabled: true
       },
-      settings: {}
+      settings: {
+        vscode_extension_marketplace_home_url: marketplace_home_url
+      }
     }
   end
 
@@ -50,7 +53,8 @@ def flipper_id
       allow(user).to receive_messages(
         enterprise_user?: !!enterprise_group,
         enterprise_group: enterprise_group,
-        extensions_marketplace_opt_in_status: :unset
+        extensions_marketplace_opt_in_status: 'unset',
+        extensions_marketplace_opt_in_url: marketplace_home_url
       )
       allow(group).to receive(:enterprise_users_extensions_marketplace_enabled?).and_return(enterprise_group_enabled)
 
diff --git a/ee/spec/lib/web_ide/settings/settings_integration_spec.rb b/ee/spec/lib/web_ide/settings/settings_integration_spec.rb
index 72219f8b1a12bc91d2cd324bd8625a5da37e1b01..19d457a520daf82a441bcaeb686502c29288426a 100644
--- a/ee/spec/lib/web_ide/settings/settings_integration_spec.rb
+++ b/ee/spec/lib/web_ide/settings/settings_integration_spec.rb
@@ -22,7 +22,7 @@
     )
     stub_licensed_features(disable_extensions_marketplace_for_enterprise_users: true)
     stub_application_setting(vscode_extension_marketplace: { enabled: true, preset: 'open_vsx' })
-    user.update!(extensions_marketplace_enabled: true)
+    user.update!(extensions_marketplace_opt_in_status: "enabled")
   end
 
   describe "default - enterprise group has extensions marketplace disabled" do
diff --git a/lib/web_ide/extension_marketplace_opt_in.rb b/lib/web_ide/extension_marketplace_opt_in.rb
new file mode 100644
index 0000000000000000000000000000000000000000..45c37de30207101bf720a5e91c0ea8c7d75a66f5
--- /dev/null
+++ b/lib/web_ide/extension_marketplace_opt_in.rb
@@ -0,0 +1,27 @@
+# frozen_string_literal: true
+
+module WebIde
+  class ExtensionMarketplaceOptIn
+    def self.opt_in_status(user:, marketplace_home_url:)
+      return 'unset' unless user && marketplace_home_url
+      return 'unset' unless user.extensions_marketplace_opt_in_url == marketplace_home_url
+
+      user.extensions_marketplace_opt_in_status
+    end
+
+    def self.enabled?(user:, marketplace_home_url:)
+      status = opt_in_status(user: user, marketplace_home_url: marketplace_home_url)
+
+      status == 'enabled'
+    end
+
+    def self.params(enabled:, marketplace_home_url:)
+      status = ::Gitlab::Utils.to_boolean(enabled) ? 'enabled' : 'disabled'
+
+      {
+        extensions_marketplace_opt_in_status: status,
+        extensions_marketplace_opt_in_url: marketplace_home_url
+      }
+    end
+  end
+end
diff --git a/lib/web_ide/settings/extension_marketplace_metadata_generator.rb b/lib/web_ide/settings/extension_marketplace_metadata_generator.rb
index 40fe374c4129f70303868fe58b7afc5bd671e273..fc53e9e1d06dab5bfa02861e17a46bba63309bb9 100644
--- a/lib/web_ide/settings/extension_marketplace_metadata_generator.rb
+++ b/lib/web_ide/settings/extension_marketplace_metadata_generator.rb
@@ -23,7 +23,12 @@ class ExtensionMarketplaceMetadataGenerator
       def self.generate(context)
         return context unless context.fetch(:requested_setting_names).include?(:vscode_extension_marketplace_metadata)
 
-        context => { options: Hash => options }
+        context => {
+          options: Hash => options,
+          settings: {
+            vscode_extension_marketplace_home_url: String => marketplace_home_url,
+          }
+        }
         options_with_defaults = { user: nil, vscode_extension_marketplace_feature_flag_enabled: nil }.merge(options)
         options_with_defaults => {
           user: ::User | NilClass => user,
@@ -33,7 +38,8 @@ def self.generate(context)
 
         extension_marketplace_metadata = build_metadata(
           user: user,
-          flag_enabled: extension_marketplace_feature_flag_enabled
+          flag_enabled: extension_marketplace_feature_flag_enabled,
+          marketplace_home_url: marketplace_home_url
         )
 
         context[:settings][:vscode_extension_marketplace_metadata] = extension_marketplace_metadata
@@ -43,7 +49,7 @@ def self.generate(context)
       # @param [User, nil] user
       # @param [Boolean, nil] flag_enabled
       # @return [Hash]
-      def self.build_metadata(user:, flag_enabled:)
+      def self.build_metadata(user:, flag_enabled:, marketplace_home_url:)
         return metadata_disabled(:no_user) unless user
         return metadata_disabled(:no_flag) if flag_enabled.nil?
         return metadata_disabled(:instance_disabled) unless flag_enabled
@@ -52,7 +58,7 @@ def self.build_metadata(user:, flag_enabled:)
           return metadata_disabled(:instance_disabled)
         end
 
-        build_metadata_for_user(user)
+        build_metadata_for_user(user: user, marketplace_home_url: marketplace_home_url)
       end
 
       def self.disabled_reasons
@@ -63,9 +69,12 @@ def self.disabled_reasons
       #
       # @param [User] user
       # @return [Hash]
-      def self.build_metadata_for_user(user)
+      def self.build_metadata_for_user(user:, marketplace_home_url:)
         # noinspection RubyNilAnalysis -- RubyMine doesn't realize user can't be nil because of guard clause above
-        opt_in_status = user.extensions_marketplace_opt_in_status.to_sym
+        opt_in_status = ::WebIde::ExtensionMarketplaceOptIn.opt_in_status(
+          user: user,
+          marketplace_home_url: marketplace_home_url
+        ).to_sym
 
         case opt_in_status
         when :enabled
diff --git a/lib/web_ide/settings/settings_initializer.rb b/lib/web_ide/settings/settings_initializer.rb
index 26ae8b2e63fe04da936a18b35b4ff20d6c5aa6be..7e358cb183865af6d326b81ad463b597a36b32f1 100644
--- a/lib/web_ide/settings/settings_initializer.rb
+++ b/lib/web_ide/settings/settings_initializer.rb
@@ -8,6 +8,9 @@ class SettingsInitializer
           :vscode_extension_marketplace_metadata,
           :vscode_extension_marketplace
         ],
+        vscode_extension_marketplace_metadata: [
+          :vscode_extension_marketplace_home_url
+        ],
         vscode_extension_marketplace_home_url: [
           :vscode_extension_marketplace
         ]
diff --git a/spec/controllers/profiles/preferences_controller_spec.rb b/spec/controllers/profiles/preferences_controller_spec.rb
index 504c75aaf532a20d0a599604421e24ea794d3403..38607255a3e2fc4d0757e0c15126bbe8bb22d1d3 100644
--- a/spec/controllers/profiles/preferences_controller_spec.rb
+++ b/spec/controllers/profiles/preferences_controller_spec.rb
@@ -65,7 +65,13 @@ def go(params: {}, format: :json)
           extensions_marketplace_enabled: '1'
         }.with_indifferent_access
 
-        expect(user).to receive(:assign_attributes).with(ActionController::Parameters.new(prefs).permit!)
+        expected_params = prefs.except(:extensions_marketplace_enabled).merge(
+          extensions_marketplace_opt_in_status: "enabled",
+          # Default marketplace_home_url based on Open VSX
+          extensions_marketplace_opt_in_url: "https://open-vsx.org"
+        )
+
+        expect(user).to receive(:assign_attributes).with(ActionController::Parameters.new(expected_params).permit!)
         expect(user).to receive(:save)
 
         go params: prefs
diff --git a/spec/lib/web_ide/extension_marketplace_opt_in_spec.rb b/spec/lib/web_ide/extension_marketplace_opt_in_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..be27cd1536391501736ea279bbd7236cc9dcbfeb
--- /dev/null
+++ b/spec/lib/web_ide/extension_marketplace_opt_in_spec.rb
@@ -0,0 +1,78 @@
+# frozen_string_literal: true
+
+require 'fast_spec_helper'
+
+RSpec.describe WebIde::ExtensionMarketplaceOptIn, feature_category: :web_ide do
+  using RSpec::Parameterized::TableSyntax
+
+  let(:user_class) do
+    stub_const("User", Struct.new(
+      :extensions_marketplace_opt_in_status,
+      :extensions_marketplace_opt_in_url,
+      keyword_init: true
+    ))
+  end
+
+  let(:user) do
+    User.new(
+      extensions_marketplace_opt_in_status: opt_in_status,
+      extensions_marketplace_opt_in_url: opt_in_url
+    )
+  end
+
+  describe '.opt_in_status' do
+    subject(:opt_in_status) do
+      described_class.opt_in_status(user: user, marketplace_home_url: marketplace_home_url)
+    end
+
+    where(:opt_in_status, :opt_in_url, :marketplace_home_url, :expectation) do
+      'enabled'  | 'https://example.com'  | nil                    | 'unset'
+      'enabled'  | 'https://example.com'  | 'https://open-vsx.org' | 'unset'
+      'enabled'  | 'https://open-vsx.org' | 'https://open-vsx.org' | 'enabled'
+      'disabled' | 'https://open-vsx.org' | 'https://open-vsx.org' | 'disabled'
+      'unset'    | 'https://open-vsx.org' | 'https://open-vsx.org' | 'unset'
+    end
+
+    with_them do
+      it { is_expected.to eq(expectation) }
+    end
+  end
+
+  describe '.enabled?' do
+    subject(:enabled) do
+      described_class.enabled?(user: user, marketplace_home_url: marketplace_home_url)
+    end
+
+    where(:opt_in_status, :opt_in_url, :marketplace_home_url, :expectation) do
+      'enabled'  | 'https://open-vsx.org' | nil | false
+      'enabled'  | 'https://open-vsx.org' | 'https://example.com' | false
+      'enabled'  | 'https://example.com'  | 'https://example.com' | true
+      'disabled' | 'https://example.com'  | 'https://example.com' | false
+      'unset'    | 'https://example.com'  | 'https://example.com' | false
+    end
+
+    with_them do
+      it { is_expected.to eq(expectation) }
+    end
+  end
+
+  describe '.params' do
+    subject(:params) do
+      described_class.params(enabled: enabled, marketplace_home_url: marketplace_home_url)
+    end
+
+    where(:enabled, :marketplace_home_url, :expected_status) do
+      true | 'https://example.com' | 'enabled'
+      false | 'https://example.com' | 'disabled'
+    end
+
+    with_them do
+      it 'returns params for updating user_preferences' do
+        is_expected.to match(
+          extensions_marketplace_opt_in_status: expected_status,
+          extensions_marketplace_opt_in_url: marketplace_home_url
+        )
+      end
+    end
+  end
+end
diff --git a/spec/lib/web_ide/extension_marketplace_spec.rb b/spec/lib/web_ide/extension_marketplace_spec.rb
index c3a001a8332247cb4bee66bb2f92b97d2eef8918..7d542d4c0724e6d56d1ac4334b1af6781c86391a 100644
--- a/spec/lib/web_ide/extension_marketplace_spec.rb
+++ b/spec/lib/web_ide/extension_marketplace_spec.rb
@@ -7,6 +7,7 @@
 
   let(:help_url) { "/help/user/project/web_ide/_index.md#extension-marketplace" }
   let(:user_preferences_url) { "/-/profile/preferences#integrations" }
+  let(:custom_home_url) { 'https://example.com:8444' }
   let(:custom_app_setting) do
     {
       enabled: true,
@@ -109,15 +110,17 @@
 
   describe '#webide_extension_marketplace_settings' do
     # rubocop:disable Layout/LineLength -- last parameter extens past line but is preferable to rubocop's suggestion
-    where(:web_ide_extensions_marketplace, :vscode_extension_marketplace_settings, :app_setting, :opt_in_status, :expectation) do
-      true  | false | {}                         | :enabled  | lazy { { enabled: true, vscode_settings: ::WebIde::ExtensionMarketplacePreset.open_vsx.values } }
-      true  | false | {}                         | :unset    | lazy { { enabled: false, reason: :opt_in_unset, help_url: /#{help_url}/, user_preferences_url: /#{user_preferences_url}/ } }
-      true  | false | {}                         | :disabled | lazy { { enabled: false, reason: :opt_in_disabled, help_url: /#{help_url}/, user_preferences_url: /#{user_preferences_url}/ } }
-      false | false | {}                         | :enabled  | lazy { { enabled: false, reason: :instance_disabled, help_url: /#{help_url}/ } }
-      true  | true  | {}                         | :enabled  | lazy { { enabled: false, reason: :instance_disabled, help_url: /#{help_url}/ } }
-      true  | true  | { enabled: false }         | :enabled  | lazy { { enabled: false, reason: :instance_disabled, help_url: /#{help_url}/ } }
-      true  | true  | ref(:custom_app_setting)   | :enabled  | lazy { { enabled: true, vscode_settings: custom_app_setting[:custom_values] } }
-      true  | true  | ref(:open_vsx_app_setting) | :enabled  | lazy { { enabled: true, vscode_settings: ::WebIde::ExtensionMarketplacePreset.open_vsx.values } }
+    where(:web_ide_extensions_marketplace, :vscode_extension_marketplace_settings, :app_setting, :opt_in_status, :opt_in_url, :expectation) do
+      # web_ide_extensions_marketplace | vscode_extension_marketplace_settings | app_setting                | opt_in_status | opt_in_url            | expectation
+      true                            | false                                 | {}                         | :enabled      | nil                   | lazy { { enabled: true, vscode_settings: ::WebIde::ExtensionMarketplacePreset.open_vsx.values } }
+      true                            | false                                 | {}                         | :unset        | nil                   | lazy { { enabled: false, reason: :opt_in_unset, help_url: /#{help_url}/, user_preferences_url: /#{user_preferences_url}/ } }
+      true                            | false                                 | {}                         | :disabled     | nil                   | lazy { { enabled: false, reason: :opt_in_disabled, help_url: /#{help_url}/, user_preferences_url: /#{user_preferences_url}/ } }
+      false                           | false                                 | {}                         | :enabled      | nil                   | lazy { { enabled: false, reason: :instance_disabled, help_url: /#{help_url}/ } }
+      true                            | true                                  | {}                         | :enabled      | nil                   | lazy { { enabled: false, reason: :instance_disabled, help_url: /#{help_url}/ } }
+      true                            | true                                  | { enabled: false }         | :enabled      | nil                   | lazy { { enabled: false, reason: :instance_disabled, help_url: /#{help_url}/ } }
+      true                            | true                                  | ref(:custom_app_setting)   | :enabled      | nil                   | lazy { { enabled: false, reason: :opt_in_unset, help_url: /#{help_url}/, user_preferences_url: /#{user_preferences_url}/ } }
+      true                            | true                                  | ref(:custom_app_setting)   | :enabled      | ref(:custom_home_url) | lazy { { enabled: true, vscode_settings: custom_app_setting[:custom_values] } }
+      true                            | true                                  | ref(:open_vsx_app_setting) | :enabled      | nil                   | lazy { { enabled: true, vscode_settings: ::WebIde::ExtensionMarketplacePreset.open_vsx.values } }
     end
     # rubocop:enable Layout/LineLength
 
@@ -132,7 +135,10 @@
 
       stub_application_setting(vscode_extension_marketplace: app_setting)
 
-      current_user.update!(extensions_marketplace_opt_in_status: opt_in_status)
+      current_user.update!(
+        extensions_marketplace_opt_in_status: opt_in_status,
+        extensions_marketplace_opt_in_url: opt_in_url
+      )
     end
 
     with_them do
diff --git a/spec/lib/web_ide/settings/extension_marketplace_metadata_generator_spec.rb b/spec/lib/web_ide/settings/extension_marketplace_metadata_generator_spec.rb
index 6f768dce9f5b221e2e3e423831491452be9036d3..aae02ae3f6f12a9366df4a14419895a05bda5df7 100644
--- a/spec/lib/web_ide/settings/extension_marketplace_metadata_generator_spec.rb
+++ b/spec/lib/web_ide/settings/extension_marketplace_metadata_generator_spec.rb
@@ -5,6 +5,7 @@
 RSpec.describe WebIde::Settings::ExtensionMarketplaceMetadataGenerator, feature_category: :web_ide do
   using RSpec::Parameterized::TableSyntax
 
+  let(:marketplace_home_url) { "https://example.com" }
   let(:input_context) do
     {
       requested_setting_names: [:vscode_extension_marketplace_metadata],
@@ -13,6 +14,7 @@
         # NOTE: default value of 'vscode_extension_marketplace_metadata' is an empty hash. Include it here to
         #       ensure that it always gets overwritten with the generated value
         vscode_extension_marketplace_metadata: {},
+        vscode_extension_marketplace_home_url: marketplace_home_url,
         some_other_existing_setting_that_should_not_be_overwritten: "some context"
       }
     }
@@ -90,7 +92,10 @@ def flipper_id
     end
 
     before do
-      allow(user).to receive(:extensions_marketplace_opt_in_status) { opt_in_status.to_s }
+      allow(::WebIde::ExtensionMarketplaceOptIn).to receive(:opt_in_status)
+        .with(user: user, marketplace_home_url: marketplace_home_url)
+        .and_return(opt_in_status.to_s)
+
       # EE feature has to be stubbed since we run EE code through CE tests
       allow(user).to receive(:enterprise_user?).and_return(false)
       allow(enums).to receive(:statuses).and_return({ unset: :unset, enabled: :enabled, disabled: :disabled })
diff --git a/spec/models/user_preference_spec.rb b/spec/models/user_preference_spec.rb
index d11be69a4710e2f5e6c5b6d0810485b027fe1e45..5e4afb2b0c041efa86dd9df4333d8902f613da45 100644
--- a/spec/models/user_preference_spec.rb
+++ b/spec/models/user_preference_spec.rb
@@ -5,6 +5,7 @@
 RSpec.describe UserPreference, feature_category: :user_profile do
   let_it_be(:user) { create(:user) }
 
+  let(:marketplace_home_url) { 'https://open-vsx.org' }
   let(:user_preference) { create(:user_preference, user: user) }
 
   describe 'validations' do
@@ -82,6 +83,10 @@
       end
     end
 
+    describe 'extensions_marketplace_opt_in_url' do
+      it { is_expected.to validate_length_of(:extensions_marketplace_opt_in_url).is_at_most(512) }
+    end
+
     describe 'organization_groups_projects_display' do
       it 'is set to 0 by default' do
         pref = described_class.new
@@ -254,41 +259,20 @@
     end
   end
 
-  describe '#extensions_marketplace_enabled' do
-    where(:opt_in_status, :expected_value) do
+  describe '#extensions_marketplace_opt_in_url' do
+    where(:opt_in_url, :expectation) do
       [
-        ["enabled", true],
-        ["disabled", false],
-        ["unset", false]
+        [nil, 'https://open-vsx.org'],
+        ['https://open-vsx.org', 'https://open-vsx.org'],
+        ['https://example.com', 'https://example.com']
       ]
     end
 
     with_them do
-      it 'returns boolean from extensions_marketplace_opt_in_status' do
-        user_preference.update!(extensions_marketplace_opt_in_status: opt_in_status)
-
-        expect(user_preference.extensions_marketplace_enabled).to be expected_value
-      end
-    end
-  end
-
-  describe '#extensions_marketplace_enabled=' do
-    where(:value, :expected_opt_in_status) do
-      [
-        [true, "enabled"],
-        [false, "disabled"],
-        [0, "disabled"],
-        [1, "enabled"]
-      ]
-    end
-
-    with_them do
-      it 'updates extensions_marketplace_opt_in_status' do
-        user_preference.update!(extensions_marketplace_opt_in_status: 'unset')
-
-        user_preference.extensions_marketplace_enabled = value
+      it 'reads attribute and defaults when nil' do
+        user_preference.update!(extensions_marketplace_opt_in_url: opt_in_url)
 
-        expect(user_preference.extensions_marketplace_opt_in_status).to be expected_opt_in_status
+        expect(user_preference.extensions_marketplace_opt_in_url).to eq expectation
       end
     end
   end
diff --git a/spec/models/user_spec.rb b/spec/models/user_spec.rb
index 75c554714d962155c7b480020ab94567afe63f94..755a256172ab1ea0b4b8e0bb137697fd63d1c750 100644
--- a/spec/models/user_spec.rb
+++ b/spec/models/user_spec.rb
@@ -89,8 +89,11 @@
     it { is_expected.to delegate_method(:use_new_navigation).to(:user_preference) }
     it { is_expected.to delegate_method(:use_new_navigation=).to(:user_preference).with_arguments(:args) }
 
-    it { is_expected.to delegate_method(:extensions_marketplace_enabled).to(:user_preference) }
-    it { is_expected.to delegate_method(:extensions_marketplace_enabled=).to(:user_preference).with_arguments(:args) }
+    it { is_expected.to delegate_method(:extensions_marketplace_opt_in_status).to(:user_preference) }
+    it { is_expected.to delegate_method(:extensions_marketplace_opt_in_status=).to(:user_preference).with_arguments(:args) }
+
+    it { is_expected.to delegate_method(:extensions_marketplace_opt_in_url).to(:user_preference) }
+    it { is_expected.to delegate_method(:extensions_marketplace_opt_in_url=).to(:user_preference).with_arguments(:args) }
 
     it { is_expected.to delegate_method(:pinned_nav_items).to(:user_preference) }
     it { is_expected.to delegate_method(:pinned_nav_items=).to(:user_preference).with_arguments(:args) }
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 d7f852b722ed0eda55d621315e633549b44389b6..85be19c0027ca8fc6f3db235cdf7d5385bf2ba1f 100644
--- a/spec/requests/api/graphql/mutations/user_preferences/update_spec.rb
+++ b/spec/requests/api/graphql/mutations/user_preferences/update_spec.rb
@@ -25,6 +25,18 @@
   let(:mutation) { graphql_mutation(:userPreferencesUpdate, input) }
   let(:mutation_response) { graphql_mutation_response(:userPreferencesUpdate) }
 
+  before do
+    stub_application_setting(vscode_extension_marketplace: {
+      enabled: false,
+      preset: 'custom',
+      custom_values: {
+        item_url: 'https://example.com/item/url',
+        service_url: 'https://example.com/service/url',
+        resource_url_template: 'https://example.com/resource/url/template'
+      }
+    })
+  end
+
   context 'when user has no existing preference' do
     it 'creates the user preference record' do
       post_graphql_mutation(mutation, current_user: current_user)
@@ -41,6 +53,7 @@
 
       expect(current_user.user_preference.persisted?).to eq(true)
       expect(current_user.user_preference.extensions_marketplace_opt_in_status).to eq('enabled')
+      expect(current_user.user_preference.extensions_marketplace_opt_in_url).to eq('https://example.com')
       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_work_items_view).to eq(true)