diff --git a/code-server/README.md b/code-server/README.md
index c505e83..375d0e2 100644
--- a/code-server/README.md
+++ b/code-server/README.md
@@ -79,3 +79,30 @@ module "code-server" {
   extensions = ["dracula-theme.theme-dracula", "ms-azuretools.vscode-docker"]
 }
 ```
+
+### Offline and Use Cached Modes
+
+By default the module looks for code-server at `/tmp/code-server` but this can be changed with `install_prefix`.
+
+Run an existing copy of code-server if found, otherwise download from GitHub:
+
+```tf
+module "code-server" {
+  source     = "registry.coder.com/modules/code-server/coder"
+  version    = "1.0.8"
+  agent_id   = coder_agent.example.id
+  use_cached = true
+  extensions = ["dracula-theme.theme-dracula", "ms-azuretools.vscode-docker"]
+}
+```
+
+Just run code-server in the background, don't fetch it from GitHub:
+
+```tf
+module "code-server" {
+  source   = "registry.coder.com/modules/code-server/coder"
+  version  = "1.0.8"
+  agent_id = coder_agent.example.id
+  offline  = true
+}
+```
diff --git a/code-server/main.test.ts b/code-server/main.test.ts
index daf3ac1..1d6da5e 100644
--- a/code-server/main.test.ts
+++ b/code-server/main.test.ts
@@ -1,5 +1,9 @@
 import { describe, expect, it } from "bun:test";
-import { runTerraformInit, testRequiredVariables } from "../test";
+import {
+  runTerraformApply,
+  runTerraformInit,
+  testRequiredVariables,
+} from "../test";
 
 describe("code-server", async () => {
   await runTerraformInit(import.meta.dir);
@@ -8,5 +12,27 @@ describe("code-server", async () => {
     agent_id: "foo",
   });
 
+  it("use_cached and offline can not be used together", () => {
+    const t = async () => {
+      await runTerraformApply(import.meta.dir, {
+        agent_id: "foo",
+        use_cached: "true",
+        offline: "true",
+      });
+    };
+    expect(t).toThrow("Offline and Use Cached can not be used together");
+  });
+
+  it("offline and extensions can not be used together", () => {
+    const t = async () => {
+      await runTerraformApply(import.meta.dir, {
+        agent_id: "foo",
+        offline: "true",
+        extensions: '["1", "2"]',
+      });
+    };
+    expect(t).toThrow("Offline mode does not allow extensions to be installed");
+  });
+
   // More tests depend on shebang refactors
 });
diff --git a/code-server/main.tf b/code-server/main.tf
index dc0e6bd..30b92bc 100644
--- a/code-server/main.tf
+++ b/code-server/main.tf
@@ -83,6 +83,18 @@ variable "order" {
   default     = null
 }
 
+variable "offline" {
+  type        = bool
+  description = "Just run code-server in the background, don't fetch it from GitHub"
+  default     = false
+}
+
+variable "use_cached" {
+  type        = bool
+  description = "Uses cached copy code-server in the background, otherwise fetched it from GitHub"
+  default     = false
+}
+
 resource "coder_script" "code-server" {
   agent_id     = var.agent_id
   display_name = "code-server"
@@ -96,8 +108,22 @@ resource "coder_script" "code-server" {
     INSTALL_PREFIX : var.install_prefix,
     // This is necessary otherwise the quotes are stripped!
     SETTINGS : replace(jsonencode(var.settings), "\"", "\\\""),
+    OFFLINE : var.offline,
+    USE_CACHED : var.use_cached,
   })
   run_on_start = true
+
+  lifecycle {
+    precondition {
+      condition     = !var.offline || length(var.extensions) == 0
+      error_message = "Offline mode does not allow extensions to be installed"
+    }
+
+    precondition {
+      condition     = !var.offline || !var.use_cached
+      error_message = "Offline and Use Cached can not be used together"
+    }
+  }
 }
 
 resource "coder_app" "code-server" {
diff --git a/code-server/run.sh b/code-server/run.sh
index f6229f3..2444324 100755
--- a/code-server/run.sh
+++ b/code-server/run.sh
@@ -4,6 +4,34 @@ EXTENSIONS=("${EXTENSIONS}")
 BOLD='\033[0;1m'
 CODE='\033[36;40;1m'
 RESET='\033[0m'
+CODE_SERVER="${INSTALL_PREFIX}/bin/code-server"
+
+function run_code_server() {
+  echo "👷 Running code-server in the background..."
+  echo "Check logs at ${LOG_PATH}!"
+  $CODE_SERVER --auth none --port "${PORT}" --app-name "${APP_NAME}" > "${LOG_PATH}" 2>&1 &
+}
+
+# Check if the settings file exists...
+if [ ! -f ~/.local/share/code-server/User/settings.json ]; then
+  echo "⚙️ Creating settings file..."
+  mkdir -p ~/.local/share/code-server/User
+  echo "${SETTINGS}" > ~/.local/share/code-server/User/settings.json
+fi
+
+# Check if code-server is already installed for offline or cached mode
+if [ -f "$CODE_SERVER" ]; then
+  if [ "${OFFLINE}" = true ] || [ "${USE_CACHED}" = true ]; then
+    echo "🥳 Found a copy of code-server"
+    run_code_server
+    exit 0
+  fi
+fi
+# Offline mode always expects a copy of code-server to be present
+if [ "${OFFLINE}" = true ]; then
+  echo "Failed to find a copy of code-server"
+  exit 1
+fi
 
 printf "$${BOLD}Installing code-server!\n"
 
@@ -22,8 +50,6 @@ if [ $? -ne 0 ]; then
 fi
 printf "🥳 code-server has been installed in ${INSTALL_PREFIX}\n\n"
 
-CODE_SERVER="${INSTALL_PREFIX}/bin/code-server"
-
 # Install each extension...
 IFS=',' read -r -a EXTENSIONLIST <<< "$${EXTENSIONS}"
 for extension in "$${EXTENSIONLIST[@]}"; do
@@ -38,13 +64,4 @@ for extension in "$${EXTENSIONLIST[@]}"; do
   fi
 done
 
-# Check if the settings file exists...
-if [ ! -f ~/.local/share/code-server/User/settings.json ]; then
-  echo "⚙️ Creating settings file..."
-  mkdir -p ~/.local/share/code-server/User
-  echo "${SETTINGS}" > ~/.local/share/code-server/User/settings.json
-fi
-
-echo "👷 Running code-server in the background..."
-echo "Check logs at ${LOG_PATH}!"
-$CODE_SERVER --auth none --port ${PORT} --app-name "${APP_NAME}" > ${LOG_PATH} 2>&1 &
+run_code_server