diff --git a/pkgs/applications/editors/vscode/extensions/default.nix b/pkgs/applications/editors/vscode/extensions/default.nix
index c4d2608c64a7..f6010a3581cc 100644
--- a/pkgs/applications/editors/vscode/extensions/default.nix
+++ b/pkgs/applications/editors/vscode/extensions/default.nix
@@ -2867,10 +2867,9 @@ let
         mktplcRef = {
           name = "direnv";
           publisher = "mkhl";
-          version = "0.16.0";
-          hash = "sha256-u2AFjvhm3zio1ygW9yD9ZwbywLrEssd0O7/0AtfCvMo=";
+          version = "0.17.0";
+          hash = "sha256-9sFcfTMeLBGw2ET1snqQ6Uk//D/vcD9AVsZfnUNrWNg=";
         };
-
         meta = {
           description = "direnv support for Visual Studio Code";
           license = lib.licenses.bsd0;