diff --git a/extensions/sql-database-projects/src/common/constants.ts b/extensions/sql-database-projects/src/common/constants.ts
index 89d5dc630e..252a026148 100644
--- a/extensions/sql-database-projects/src/common/constants.ts
+++ b/extensions/sql-database-projects/src/common/constants.ts
@@ -166,6 +166,7 @@ export const newText = localize('new', "New");
 export const selectDatabase = localize('selectDatabase', "Select database");
 export const done = localize('done', "Done");
 export const nameMustNotBeEmpty = localize('nameMustNotBeEmpty', "Name must not be empty");
+export const versionMustNotBeEmpty = localize('versionMustNotBeEmpty', "Version must not be empty");
 
 //#endregion
 
diff --git a/extensions/sql-database-projects/src/dialogs/addDatabaseReferenceQuickpick.ts b/extensions/sql-database-projects/src/dialogs/addDatabaseReferenceQuickpick.ts
index e1584a88ca..a3de317303 100644
--- a/extensions/sql-database-projects/src/dialogs/addDatabaseReferenceQuickpick.ts
+++ b/extensions/sql-database-projects/src/dialogs/addDatabaseReferenceQuickpick.ts
@@ -9,10 +9,11 @@ import * as constants from '../common/constants';
 import { getSqlProjectsInWorkspace, getSystemDatabase, validateSqlCmdVariableName } from '../common/utils';
 import { DbServerValues, populateResultWithVars } from './utils';
 import { AddDatabaseReferenceSettings } from '../controllers/projectController';
-import { IDacpacReferenceSettings, IProjectReferenceSettings, ISystemDatabaseReferenceSettings } from '../models/IDatabaseReferenceSettings';
+import { IDacpacReferenceSettings, INugetPackageReferenceSettings, IProjectReferenceSettings, ISystemDatabaseReferenceSettings } from '../models/IDatabaseReferenceSettings';
 import { Project } from '../models/project';
 import { getSystemDbOptions, promptDacpacLocation } from './addDatabaseReferenceDialog';
 import { TelemetryActions, TelemetryReporter, TelemetryViews } from '../common/telemetry';
+import { ProjectType } from 'mssql';
 
 
 
@@ -29,6 +30,11 @@ export async function addDatabaseReferenceQuickpick(project: Project): Promise<A
 		[constants.projectLabel, constants.systemDatabase, constants.dacpacText] :
 		[constants.systemDatabase, constants.dacpacText];
 
+	// only add nupkg database reference option if project is SDK-style
+	if (project.sqlProjStyle === ProjectType.SdkStyle) {
+		referenceTypes.push(constants.nupkgText);
+	}
+
 	const referenceType = await vscode.window.showQuickPick(
 		referenceTypes,
 		{ title: constants.referenceType, ignoreFocusOut: true });
@@ -44,6 +50,8 @@ export async function addDatabaseReferenceQuickpick(project: Project): Promise<A
 			return addSystemDatabaseReference(project);
 		case constants.dacpacText:
 			return addDacpacReference(project);
+		case constants.nupkgText:
+			return addNupkgReference();
 		default:
 			console.log(`Unknown reference type ${referenceType}`);
 			return undefined;
@@ -200,6 +208,75 @@ async function addDacpacReference(project: Project): Promise<IDacpacReferenceSet
 	return referenceSettings;
 }
 
+async function addNupkgReference(): Promise<INugetPackageReferenceSettings | undefined> {
+	// (steps continued from addDatabaseReferenceQuickpick)
+	// 2. Prompt for location
+	const location = await promptLocation();
+	if (!location) {
+		// User cancelled
+		return undefined;
+	}
+
+	// 3. Prompt for NuGet package name
+	const nupkgName = await vscode.window.showInputBox(
+		{
+			title: constants.nupkgText,
+			placeHolder: constants.nupkgNamePlaceholder,
+			validateInput: (value) => {
+				return value ? undefined : constants.nameMustNotBeEmpty;
+			},
+			ignoreFocusOut: true
+		});
+
+	if (!nupkgName) {
+		// User cancelled
+		return undefined;
+	}
+
+	// 4. Prompt for NuGet package version
+	const nupkgVersion = await vscode.window.showInputBox(
+		{
+			title: constants.version,
+			placeHolder: constants.versionPlaceholder,
+			validateInput: (value) => {
+				return value ? undefined : constants.versionMustNotBeEmpty;
+			},
+			ignoreFocusOut: true
+		});
+
+	if (!nupkgVersion) {
+		// User cancelled
+		return undefined;
+	}
+
+
+	// 5. Prompt for db/server values
+	const dbServerValues = await promptDbServerValues(location, path.parse(nupkgName).name);
+	if (!dbServerValues) {
+		// User cancelled
+		return;
+	}
+
+	// 6. Prompt suppress unresolved ref errors
+	const suppressErrors = await promptSuppressUnresolvedRefErrors();
+
+	// 7. Construct result
+
+	const referenceSettings: INugetPackageReferenceSettings = {
+		packageName: nupkgName,
+		packageVersion: nupkgVersion,
+		suppressMissingDependenciesErrors: suppressErrors
+	};
+
+	populateResultWithVars(referenceSettings, dbServerValues);
+
+	TelemetryReporter.createActionEvent(TelemetryViews.ProjectTree, TelemetryActions.addDatabaseReference)
+		.withAdditionalProperties({ referenceType: constants.nupkgText })
+		.send();
+
+	return referenceSettings;
+}
+
 async function promptLocation(): Promise<string | undefined> {
 	return vscode.window.showQuickPick(
 		constants.locationDropdownValues,