diff --git a/extensions/integration-tests/extensionInstallers/azuredatastudio-postgresql-0.2.0.vsix b/extensions/integration-tests/extensionInstallers/azuredatastudio-postgresql-0.2.0.vsix
new file mode 100644
index 0000000000..e2cf3a1f39
Binary files /dev/null and b/extensions/integration-tests/extensionInstallers/azuredatastudio-postgresql-0.2.0.vsix differ
diff --git a/extensions/integration-tests/src/main.ts b/extensions/integration-tests/src/main.ts
index 7a08af1984..74c7a125d4 100644
--- a/extensions/integration-tests/src/main.ts
+++ b/extensions/integration-tests/src/main.ts
@@ -25,6 +25,7 @@ export function activate(context: vscode.ExtensionContext) {
 				let installerFullPath = join(extensionInstallersFolder, installers[i]);
 				console.info(`installing extension at ${installerFullPath}`);
 				await azdata.extensions.install(installerFullPath);
+				console.info(`extension has been installed successfully. vsix: ${installers[i]}`);
 			}
 		}
 		await setConfiguration('workbench.enablePreviewFeatures', true);
@@ -34,26 +35,71 @@ export function activate(context: vscode.ExtensionContext) {
 	});
 
 	vscode.commands.registerCommand('test.waitForExtensionsToLoad', async () => {
-		let expectedExtensions = ['Microsoft.agent', 'Microsoft.import', 'Microsoft.mssql', 'Microsoft.profiler'];
+		const expectedExtensions = ['Microsoft.agent', 'Microsoft.import', 'Microsoft.mssql', 'Microsoft.profiler', 'Microsoft.azuredatastudio-postgresql'];
+		const commonFeatures: azdata.DataProviderType[] = [
+			azdata.DataProviderType.AdminServicesProvider,
+			azdata.DataProviderType.BackupProvider,
+			azdata.DataProviderType.CapabilitiesProvider,
+			azdata.DataProviderType.ConnectionProvider,
+			azdata.DataProviderType.FileBrowserProvider,
+			azdata.DataProviderType.MetadataProvider,
+			azdata.DataProviderType.ObjectExplorerProvider,
+			azdata.DataProviderType.ProfilerProvider,
+			azdata.DataProviderType.QueryProvider,
+			azdata.DataProviderType.RestoreProvider,
+			azdata.DataProviderType.ScriptingProvider,
+			azdata.DataProviderType.TaskServicesProvider];
+
+		const features_mssql: azdata.DataProviderType[] = [
+			azdata.DataProviderType.AgentServicesProvider,
+			azdata.DataProviderType.DacFxServicesProvider,
+			azdata.DataProviderType.IconProvider,
+			azdata.DataProviderType.SchemaCompareServicesProvider
+		];
+
+		features_mssql.push(...commonFeatures);
+
+		const providerFeatureMapping: { providerId: string, features: azdata.DataProviderType[] }[] = [
+			{
+				providerId: 'MSSQL',
+				features: features_mssql
+			}, {
+				providerId: 'PGSQL',
+				features: commonFeatures
+			}];
+
 		do {
 			let extensions = vscode.extensions.all.filter(ext => { return expectedExtensions.indexOf(ext.id) !== -1; });
-			let isReady = true;
-			for (let i = 0; i < extensions.length; i++) {
-				let extension = extensions[i];
-				isReady = isReady && extension.isActive;
-				if (!isReady) {
-					break;
+			const extensionsNotInReadyState: string[] = [];
+
+			extensions.forEach(extension => {
+				if (!extension.isActive) {
+					extensionsNotInReadyState.push(extension.id);
 				}
+			});
+
+			const providerTypesNotInReadyState: string[] = [];
+			if (extensionsNotInReadyState.length === 0) {
+				providerFeatureMapping.forEach(entry => {
+					entry.features.forEach(feature => {
+						const provider = azdata.dataprotocol.getProvider(entry.providerId, feature);
+						if (!provider) {
+							providerTypesNotInReadyState.push(`${entry.providerId}:${feature}`);
+						}
+					});
+				});
 			}
 
-			if (isReady) {
+			if (extensionsNotInReadyState.length === 0 && providerTypesNotInReadyState.length === 0) {
 				console.info('All extensions are ready');
 				showStatusBarItem(statusBarItem, ALL_EXTENSION_LOADED_TEXT);
 				break;
+			} else if (extensionsNotInReadyState.length !== 0) {
+				console.warn(`the following extensions are not ready: ${extensionsNotInReadyState.join(',')}`);
 			} else {
-				console.warn(`At least one extension is not ready, waiting one second before recheck.}`);
-				await new Promise(resolve => { setTimeout(resolve, 1000); });
+				console.warn(`the following providers are not ready: ${providerTypesNotInReadyState.join(',')}`);
 			}
+			await new Promise(resolve => { setTimeout(resolve, 2000); });
 		}
 		while (true);
 	});
diff --git a/extensions/integration-tests/src/setup.test.ts b/extensions/integration-tests/src/setup.test.ts
index 930539d4c8..e309042f3e 100644
--- a/extensions/integration-tests/src/setup.test.ts
+++ b/extensions/integration-tests/src/setup.test.ts
@@ -25,9 +25,12 @@ assert(getConfigValue(EnvironmentVariable_BDC_SERVER) !== undefined &&
 if (!context.RunTest) {
 	suite('integration test setup', () => {
 		test('test setup', async function () {
-			//Prepare the environment and make it ready for testing
+			this.timeout(5 * 60 * 1000);
+			// Prepare the environment and make it ready for testing
 			await vscode.commands.executeCommand('test.setupIntegrationTest');
-			//Reload the window, this is required for some changes made by the 'test.setupIntegrationTest' to work
+			// Wait for the extensions to load
+			await vscode.commands.executeCommand('test.waitForExtensionsToLoad');
+			// Reload the window, this is required for some changes made by the 'test.setupIntegrationTest' to work
 			await vscode.commands.executeCommand('workbench.action.reloadWindow');
 		});
 	});
diff --git a/src/sql/workbench/api/node/mainThreadExtensionManagement.ts b/src/sql/workbench/api/node/mainThreadExtensionManagement.ts
index 2345c0eb14..3500d98f72 100644
--- a/src/sql/workbench/api/node/mainThreadExtensionManagement.ts
+++ b/src/sql/workbench/api/node/mainThreadExtensionManagement.ts
@@ -27,6 +27,6 @@ export class MainThreadExtensionManagement implements MainThreadExtensionManagem
 	}
 
 	public $install(vsixPath: string): Thenable<string> {
-		return this._extensionService.install(URI.parse(vsixPath)).then((value: IExtensionIdentifier) => { return undefined; }, (reason: any) => { return reason ? reason.toString() : undefined; });
+		return this._extensionService.install(URI.file(vsixPath)).then((value: IExtensionIdentifier) => { return undefined; }, (reason: any) => { return reason ? reason.toString() : undefined; });
 	}
 }