diff --git a/extensions/sql-database-projects/BuildDirectory/SystemDacpacs/Serverless/master.dacpac b/extensions/sql-database-projects/BuildDirectory/SystemDacpacs/Serverless/master.dacpac
new file mode 100644
index 0000000000..25880319dc
Binary files /dev/null and b/extensions/sql-database-projects/BuildDirectory/SystemDacpacs/Serverless/master.dacpac differ
diff --git a/extensions/sql-database-projects/package.json b/extensions/sql-database-projects/package.json
index 6bf9289c32..3117961638 100644
--- a/extensions/sql-database-projects/package.json
+++ b/extensions/sql-database-projects/package.json
@@ -2,7 +2,7 @@
   "name": "sql-database-projects",
   "displayName": "SQL Database Projects",
   "description": "Enables users to develop and publish database schemas for MSSQL Databases",
-  "version": "1.3.0",
+  "version": "1.3.1",
   "publisher": "Microsoft",
   "preview": false,
   "engines": {
diff --git a/extensions/sql-database-projects/src/common/constants.ts b/extensions/sql-database-projects/src/common/constants.ts
index aba103185d..09bc764acb 100644
--- a/extensions/sql-database-projects/src/common/constants.ts
+++ b/extensions/sql-database-projects/src/common/constants.ts
@@ -629,6 +629,7 @@ export const targetPlatformToVersion: Map<string, string> = new Map<string, stri
 	[SqlTargetPlatform.sqlServer2022, '160'],
 	[SqlTargetPlatform.sqlAzure, 'AzureV12'],
 	[SqlTargetPlatform.sqlDW, 'Dw'],
+	[SqlTargetPlatform.sqlDwServerless, 'Serverless'],
 	[SqlTargetPlatform.sqlDwUnified, 'DwUnified']
 ]);
 
diff --git a/extensions/sql-database-projects/src/common/utils.ts b/extensions/sql-database-projects/src/common/utils.ts
index 6af5cbaa81..cea0c30bd2 100644
--- a/extensions/sql-database-projects/src/common/utils.ts
+++ b/extensions/sql-database-projects/src/common/utils.ts
@@ -731,8 +731,8 @@ export async function getTargetPlatformFromServerVersion(serverInfo: azdataType.
 		if (azdataApi) {
 			// TODO: Update this when Fabric DW gets its own engine edition
 			// https://github.com/microsoft/azuredatastudio/issues/24112
-			if (engineEdition === azdataApi.DatabaseEngineEdition.SqlOnDemand && isSqlDwUnifiedServer(serverUrl)) {
-				targetPlatform = SqlTargetPlatform.sqlDwUnified;
+			if (engineEdition === azdataApi.DatabaseEngineEdition.SqlOnDemand) {
+				targetPlatform = isSqlDwUnifiedServer(serverUrl) ? SqlTargetPlatform.sqlDwUnified : SqlTargetPlatform.sqlDwServerless;
 			} else if (engineEdition === azdataApi.DatabaseEngineEdition.SqlDataWarehouse) {
 				targetPlatform = SqlTargetPlatform.sqlDW;
 			} else {
@@ -741,8 +741,8 @@ export async function getTargetPlatformFromServerVersion(serverInfo: azdataType.
 		} else {
 			// TODO: Update this when Fabric DW gets its own engine edition
 			// https://github.com/microsoft/azuredatastudio/issues/24112
-			if (engineEdition === vscodeMssql.DatabaseEngineEdition.SqlOnDemand && isSqlDwUnifiedServer(serverUrl)) {
-				targetPlatform = SqlTargetPlatform.sqlDwUnified;
+			if (engineEdition === vscodeMssql.DatabaseEngineEdition.SqlOnDemand) {
+				targetPlatform = isSqlDwUnifiedServer(serverUrl) ? SqlTargetPlatform.sqlDwUnified : SqlTargetPlatform.sqlDwServerless;
 			} else if (engineEdition === vscodeMssql.DatabaseEngineEdition.SqlDataWarehouse) {
 				targetPlatform = SqlTargetPlatform.sqlDW;
 			} else {
diff --git a/extensions/sql-database-projects/src/sqldbproj.d.ts b/extensions/sql-database-projects/src/sqldbproj.d.ts
index 1499508fcb..e2c9f7c9d4 100644
--- a/extensions/sql-database-projects/src/sqldbproj.d.ts
+++ b/extensions/sql-database-projects/src/sqldbproj.d.ts
@@ -322,6 +322,7 @@ declare module 'sqldbproj' {
 		sqlAzure = 'Azure SQL Database',
 		sqlDW = 'Azure Synapse SQL Pool',
 		sqlEdge = 'Azure SQL Edge',
+		sqlDwServerless = 'Azure Synapse Serverless SQL Pool',
 		sqlDwUnified = 'Synapse Data Warehouse in Microsoft Fabric'
 	}