diff --git a/extensions/mssql/src/sqlToolsServer.ts b/extensions/mssql/src/sqlToolsServer.ts
index f9a702f79a..e78b6fc14d 100644
--- a/extensions/mssql/src/sqlToolsServer.ts
+++ b/extensions/mssql/src/sqlToolsServer.ts
@@ -71,9 +71,10 @@ export class SqlToolsServer {
 	}
 
 	private async download(context: AppContext): Promise<string> {
-		const rawConfig = await fs.readFile(path.join(context.extensionContext.extensionPath, 'config.json'));
+		const configDir = context.extensionContext.extensionPath;
+		const rawConfig = await fs.readFile(path.join(configDir, 'config.json'));
 		this.config = JSON.parse(rawConfig.toString());
-		this.config.installDirectory = path.join(__dirname, this.config.installDirectory);
+		this.config.installDirectory = path.join(configDir, this.config.installDirectory);
 		this.config.proxy = vscode.workspace.getConfiguration('http').get('proxy');
 		this.config.strictSSL = vscode.workspace.getConfiguration('http').get('proxyStrictSSL') || true;