diff --git a/app/views/projects/merge_requests/_code_dropdown.html.haml b/app/views/projects/merge_requests/_code_dropdown.html.haml
index df7baaf7102203b1fb3aad4fa52423776bb4b721..e734d011c37dc4e8eb428b49309b3fd577703b22 100644
--- a/app/views/projects/merge_requests/_code_dropdown.html.haml
+++ b/app/views/projects/merge_requests/_code_dropdown.html.haml
@@ -24,6 +24,7 @@
               = link_to "#{Gitlab::CurrentSettings.gitpod_url}##{merge_request_url(@merge_request)}", target: '_blank', class: 'dropdown-item' do
                 .gl-dropdown-item-text-wrapper
                   = _('Open in Gitpod')
+          = render_if_exists 'projects/merge_requests/code_dropdown_open_in_workspace'
           %li.gl-dropdown-divider
             %hr.dropdown-divider
           %li.gl-dropdown-section-header
diff --git a/ee/app/helpers/remote_development/merge_requests_helper.rb b/ee/app/helpers/remote_development/merge_requests_helper.rb
new file mode 100644
index 0000000000000000000000000000000000000000..ec543aa194130855f87fbebc2fcca30490d8a1e4
--- /dev/null
+++ b/ee/app/helpers/remote_development/merge_requests_helper.rb
@@ -0,0 +1,19 @@
+# frozen_string_literal: true
+
+module RemoteDevelopment
+  module MergeRequestsHelper
+    extend ActiveSupport::Concern
+
+    included do
+      # Creates URL to open workspace for a specific project and ref
+      # @param [String] project_path Path of the project of the to-be created workspace
+      # @param [String] ref Ref of the project that needs to be opened in the workspace
+      def workspace_path_with_params(project_path:, ref:)
+        raise unless project_path && ref
+
+        # noinspection RubyResolve -- RubyMine can't find the helper function
+        "#{new_remote_development_workspace_path}?project=#{CGI.escape(project_path)}&gitRef=#{ref}"
+      end
+    end
+  end
+end
diff --git a/ee/app/views/projects/merge_requests/_code_dropdown_open_in_workspace.html.haml b/ee/app/views/projects/merge_requests/_code_dropdown_open_in_workspace.html.haml
new file mode 100644
index 0000000000000000000000000000000000000000..7b3ce3a71d0ac966a010950179b89c32b60b98ac
--- /dev/null
+++ b/ee/app/views/projects/merge_requests/_code_dropdown_open_in_workspace.html.haml
@@ -0,0 +1,6 @@
+- return unless ::License.feature_available?(:remote_development)
+
+%li.gl-dropdown-item
+  = link_to workspace_path_with_params(project_path: @merge_request.source_project.full_path, ref: @merge_request.source_branch), target: '_blank', class: 'dropdown-item', data: { testid: 'open-in-workspace-button' } do
+    .gl-dropdown-item-text-wrapper
+      = _('Open in Workspace')
diff --git a/ee/spec/features/remote_development/open_in_workspace_spec.rb b/ee/spec/features/remote_development/open_in_workspace_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..37deed1921a046e2489638a41147d572b6b4af5f
--- /dev/null
+++ b/ee/spec/features/remote_development/open_in_workspace_spec.rb
@@ -0,0 +1,36 @@
+# frozen_string_literal: true
+
+require 'spec_helper'
+
+RSpec.describe 'Open in Workspace button', :js, feature_category: :workspaces do
+  let_it_be(:project) { create(:project, :public) }
+  let(:user) { project.creator }
+  let(:merge_request) { create(:merge_request, source_project: project) }
+
+  before do
+    stub_licensed_features(remote_development: true)
+    sign_in(user)
+  end
+
+  context 'when the user is on the Merge Request page' do
+    before do
+      visit(merge_request_path(merge_request))
+    end
+
+    it 'they should be able to click on Open in Workspace' do
+      within '.merge-request' do
+        click_button 'Code'
+      end
+
+      new_tab = window_opened_by do
+        click_link 'Open in Workspace'
+      end
+
+      switch_to_window new_tab
+
+      wait_for_requests
+
+      expect(page).to have_selector('.page-title.gl-text-size-h-display', text: 'New workspace')
+    end
+  end
+end
diff --git a/ee/spec/helpers/remote_development/merge_requests_helper_spec.rb b/ee/spec/helpers/remote_development/merge_requests_helper_spec.rb
new file mode 100644
index 0000000000000000000000000000000000000000..f74e54315d9e8b61dfbcaac5295be79eabbc9bea
--- /dev/null
+++ b/ee/spec/helpers/remote_development/merge_requests_helper_spec.rb
@@ -0,0 +1,37 @@
+# frozen_string_literal: true
+
+require 'spec_helper'
+
+RSpec.describe RemoteDevelopment::MergeRequestsHelper, feature_category: :workspaces do
+  let(:project_path) { 'group/project' }
+  let(:ref) { 'main' }
+
+  describe '#new_workspace_path' do
+    context 'when project_path and ref are provided' do
+      it 'returns the correct path with escaped parameters' do
+        # noinspection SpellCheckingInspection
+        expected_path = "/-/remote_development/workspaces/new?project=group%2Fproject&gitRef=main"
+
+        expect(helper.workspace_path_with_params(project_path: project_path, ref: ref)).to eq(expected_path)
+      end
+    end
+
+    describe 'parameter validation' do
+      using RSpec::Parameterized::TableSyntax
+
+      where(:case_name, :project_path, :ref) do
+        'when project_path is nil'  | nil    | 'main'
+        'when ref is nil'           | 'a/b'  | nil
+        'when both are nil'         | nil    | nil
+      end
+
+      with_them do
+        it 'raises RuntimeError' do
+          expect do
+            helper.workspace_path_with_params(project_path: project_path, ref: ref)
+          end.to raise_error(RuntimeError)
+        end
+      end
+    end
+  end
+end
diff --git a/locale/gitlab.pot b/locale/gitlab.pot
index 1732abfe58b7c939f747531aca206162e96c1345..179fcc1695864bfaa0f00e0425fb39b4803f65d8 100644
--- a/locale/gitlab.pot
+++ b/locale/gitlab.pot
@@ -42214,6 +42214,9 @@ msgstr ""
 msgid "Open in Web IDE"
 msgstr ""
 
+msgid "Open in Workspace"
+msgstr ""
+
 msgid "Open in file view"
 msgstr ""