diff --git a/extensions/sql-database-projects/package.json b/extensions/sql-database-projects/package.json
index 8d51c0365a..d8949c1a2c 100644
--- a/extensions/sql-database-projects/package.json
+++ b/extensions/sql-database-projects/package.json
@@ -63,6 +63,10 @@
           "sqlDatabaseProjects.collapseProjectNodes": {
             "type": "boolean",
             "description": "%sqlDatabaseProjects.collapseProjectNodes%"
+          },
+          "sqlDatabaseProjects.microsoftBuildSqlVersion": {
+            "type": "string",
+            "description": "%sqlDatabaseProjects.microsoftBuildSqlVersion%"
           }
         }
       }
diff --git a/extensions/sql-database-projects/package.nls.json b/extensions/sql-database-projects/package.nls.json
index 51dbbbe405..642266a451 100644
--- a/extensions/sql-database-projects/package.nls.json
+++ b/extensions/sql-database-projects/package.nls.json
@@ -41,5 +41,6 @@
 	"sqlDatabaseProjects.nodejsDoNotAsk": "Whether to prompt the user to install Node.js when not detected.",
 	"sqlDatabaseProjects.autorestSqlVersion": "Which version of Autorest.Sql to use from NPM.  Latest will be used if not set.",
 	"sqlDatabaseProjects.collapseProjectNodes": "Whether project nodes start collapsed",
+	"sqlDatabaseProjects.microsoftBuildSqlVersion": "Which version of Microsoft.Build.Sql SDK to use for building legacy sql projects. Example: 0.1.3-preview",
 	"sqlDatabaseProjects.welcome": "No database projects currently open.\n[New Project](command:sqlDatabaseProjects.new)\n[Open Project](command:sqlDatabaseProjects.open)\n[Create Project From Database](command:sqlDatabaseProjects.importDatabase)"
 }
diff --git a/extensions/sql-database-projects/src/common/constants.ts b/extensions/sql-database-projects/src/common/constants.ts
index 570ab345a2..9bb78519de 100644
--- a/extensions/sql-database-projects/src/common/constants.ts
+++ b/extensions/sql-database-projects/src/common/constants.ts
@@ -354,6 +354,7 @@ export const parentTreeItemUnknown = localize('parentTreeItemUnknown', "Cannot a
 export const prePostDeployCount = localize('prePostDeployCount', "To successfully build, update the project to have one pre-deployment script and/or one post-deployment script");
 export const invalidProjectReload = localize('invalidProjectReload', "Cannot access provided database project. Only valid, open database projects can be reloaded.");
 export const externalStreamingJobValidationPassed = localize('externalStreamingJobValidationPassed', "Validation of external streaming job passed.");
+export const errorRetrievingBuildFiles = localize('errorRetrievingBuildFiles', "Could not build project. Error retrieving files needed to build.");
 export function projectAlreadyOpened(path: string) { return localize('projectAlreadyOpened', "Project '{0}' is already opened.", path); }
 export function projectAlreadyExists(name: string, path: string) { return localize('projectAlreadyExists', "A project named {0} already exists in {1}.", name, path); }
 export function noFileExist(fileName: string) { return localize('noFileExist', "File {0} doesn't exist", fileName); }
@@ -614,7 +615,9 @@ export enum PublishTargetType {
 	newAzureServer = 'newAzureServer'
 }
 
+// Configuration keys
 export const CollapseProjectNodesKey = 'collapseProjectNodes';
+export const microsoftBuildSqlVersionKey = 'microsoftBuildSqlVersion';
 
 // httpClient
 export const downloadError = localize('downloadError', "Download error");
@@ -623,6 +626,7 @@ export const downloading = localize('downloading', "Downloading");
 
 // buildHelper
 export const downloadingDacFxDlls = localize('downloadingDacFxDlls', "Downloading Microsoft.Build.Sql nuget to get build DLLs");
-export const extractingDacFxDlls = localize('extractingDacFxDlls', "Extracting DacFx build DLLs");
+export function downloadingFromTo(from: string, to: string) { return localize('downloadingFromTo', "Downloading from {0} to {1}", from, to); }
+export function extractingDacFxDlls(location: string) { return localize('extractingDacFxDlls', "Extracting DacFx build DLLs to {0}", location); }
 export function errorDownloading(url: string, error: string) { return localize('errorDownloading', "Error downloading {0}. Error: {1}", url, error); }
 export function errorExtracting(path: string, error: string) { return localize('errorExtracting', "Error extracting files from {0}. Error: {1}", path, error); }
diff --git a/extensions/sql-database-projects/src/controllers/projectController.ts b/extensions/sql-database-projects/src/controllers/projectController.ts
index 415044ae40..70c071e907 100644
--- a/extensions/sql-database-projects/src/controllers/projectController.ts
+++ b/extensions/sql-database-projects/src/controllers/projectController.ts
@@ -238,7 +238,12 @@ export class ProjectsController {
 
 		// get dlls and targets file needed for building for legacy style projects
 		if (!project.isSdkStyleProject) {
-			await this.buildHelper.createBuildDirFolder(this._outputChannel);
+			const result = await this.buildHelper.createBuildDirFolder(this._outputChannel);
+
+			if (!result) {
+				void vscode.window.showErrorMessage(constants.errorRetrievingBuildFiles);
+				return '';
+			}
 		}
 
 		const options: ShellCommandOptions = {
diff --git a/extensions/sql-database-projects/src/tools/buildHelper.ts b/extensions/sql-database-projects/src/tools/buildHelper.ts
index 0a3567590c..85dd889609 100644
--- a/extensions/sql-database-projects/src/tools/buildHelper.ts
+++ b/extensions/sql-database-projects/src/tools/buildHelper.ts
@@ -11,12 +11,11 @@ import * as sqldbproj from 'sqldbproj';
 import * as extractZip from 'extract-zip';
 import * as constants from '../common/constants';
 import { HttpClient } from '../common/httpClient';
+import { DBProjectConfigurationKey } from './netcoreTool';
 
 const buildDirectory = 'BuildDirectory';
 const sdkName = 'Microsoft.Build.Sql';
-const microsoftBuildSqlVersion = '0.1.3-preview'; // TODO: have this be configurable
-const fullSdkName = `${sdkName}.${microsoftBuildSqlVersion}`;
-const microsoftBuildSqlUrl = `https://www.nuget.org/api/v2/package/${sdkName}/${microsoftBuildSqlVersion}`;
+const microsoftBuildSqlDefaultVersion = '0.1.3-preview';
 
 const buildFiles: string[] = [
 	'Microsoft.Data.SqlClient.dll',
@@ -48,16 +47,21 @@ export class BuildHelper {
 	 * Create build dlls directory with the dlls and targets needed for building a sqlproj
 	 * @param outputChannel
 	 */
-	public async createBuildDirFolder(outputChannel: vscode.OutputChannel): Promise<void> {
+	public async createBuildDirFolder(outputChannel: vscode.OutputChannel): Promise<boolean> {
 
 		if (this.initialized) {
-			return;
+			return true;
 		}
 
 		if (!await utils.exists(this.extensionBuildDir)) {
 			await fs.mkdir(this.extensionBuildDir);
 		}
 
+		// check if the settings has a version specified for Microsoft.Build.Sql, otherwise use default
+		const microsoftBuildSqlVersionConfig = vscode.workspace.getConfiguration(DBProjectConfigurationKey)[constants.microsoftBuildSqlVersionKey];
+		const sdkVersion = !!microsoftBuildSqlVersionConfig ? microsoftBuildSqlVersionConfig : microsoftBuildSqlDefaultVersion;
+		const fullSdkName = `${sdkName}.${sdkVersion}`;
+
 		// check if this if the nuget needs to be downloaded
 		const nugetPath = path.join(this.extensionBuildDir, `${fullSdkName}.nupkg`);
 
@@ -73,7 +77,7 @@ export class BuildHelper {
 
 			// if all the files are there, no need to continue
 			if (!missingFiles) {
-				return;
+				return true;
 			}
 		}
 
@@ -81,23 +85,26 @@ export class BuildHelper {
 		// download the Microsoft.Build.Sql sdk nuget
 		outputChannel.appendLine(constants.downloadingDacFxDlls);
 
+		const microsoftBuildSqlUrl = `https://www.nuget.org/api/v2/package/${sdkName}/${sdkVersion}`;
+
 		try {
 			const httpClient = new HttpClient();
+			outputChannel.appendLine(constants.downloadingFromTo(microsoftBuildSqlUrl, nugetPath));
 			await httpClient.download(microsoftBuildSqlUrl, nugetPath, outputChannel);
 		} catch (e) {
 			void vscode.window.showErrorMessage(constants.errorDownloading(microsoftBuildSqlUrl, utils.getErrorMessage(e)));
-			return;
+			return false;
 		}
 
 		// extract the files from the nuget
-		outputChannel.appendLine(constants.extractingDacFxDlls);
 		const extractedFolderPath = path.join(this.extensionDir, buildDirectory, sdkName);
+		outputChannel.appendLine(constants.extractingDacFxDlls(extractedFolderPath));
 
 		try {
 			await extractZip(nugetPath, { dir: extractedFolderPath });
 		} catch (e) {
 			void vscode.window.showErrorMessage(constants.errorExtracting(nugetPath, utils.getErrorMessage(e)));
-			return;
+			return false;
 		}
 
 		// copy the dlls and targets file to the BuildDirectory folder
@@ -113,6 +120,7 @@ export class BuildHelper {
 		await fs.rm(extractedFolderPath, { recursive: true });
 
 		this.initialized = true;
+		return true;
 	}
 
 	public get extensionBuildDirPath(): string {