diff --git a/CHANGELOG.adoc b/CHANGELOG.adoc
index 2fde56590..422593c19 100644
--- a/CHANGELOG.adoc
+++ b/CHANGELOG.adoc
@@ -16,6 +16,7 @@ Release with new features and bugfixes:
 * https://github.com/devonfw/IDEasy/issues/1849[#1849]: Add VSCodium support
 * https://github.com/devonfw/IDEasy/issues/1391[#1391]: Fix bashrc messed with terraform completions
 * https://github.com/devonfw/IDEasy/issues/1922[#1922]: Add Task CLI to IDEasy commandlets
+* https://github.com/devonfw/IDEasy/issues/1966[#1966]: Support separate VSCodium plugins
 * https://github.com/devonfw/IDEasy/issues/1518[#1518]: Add per-project uv tool isolation using UV_TOOL_DIR and UV_TOOL_BIN_DIR
 * https://github.com/devonfw/IDEasy/issues/1719[#1719]: Add Rust and MSVC support
 * https://github.com/devonfw/IDEasy/issues/1991[#1991]: Improve WindowsHelperMock
diff --git a/cli/src/main/java/com/devonfw/tools/ide/tool/vscode/Vscode.java b/cli/src/main/java/com/devonfw/tools/ide/tool/vscode/Vscode.java
index fff2ad923..7beef9d2d 100644
--- a/cli/src/main/java/com/devonfw/tools/ide/tool/vscode/Vscode.java
+++ b/cli/src/main/java/com/devonfw/tools/ide/tool/vscode/Vscode.java
@@ -1,5 +1,6 @@
 package com.devonfw.tools.ide.tool.vscode;
 
+import java.nio.file.Files;
 import java.nio.file.Path;
 import java.util.ArrayList;
 import java.util.Collection;
@@ -14,7 +15,6 @@
 import com.devonfw.tools.ide.io.IdeProgressBar;
 import com.devonfw.tools.ide.log.IdeLogLevel;
 import com.devonfw.tools.ide.process.ProcessContext;
-import com.devonfw.tools.ide.process.ProcessErrorHandling;
 import com.devonfw.tools.ide.process.ProcessMode;
 import com.devonfw.tools.ide.process.ProcessResult;
 import com.devonfw.tools.ide.step.Step;
@@ -32,9 +32,6 @@ public class Vscode extends IdeToolCommandlet {
   /** The {@link #getConfiguredEdition() edition} for VSCodium. */
   private static final String EDITION_VSCODIUM = "vscodium";
 
-  /** Plugin IDs collected during {@link #installPlugins} that VSCodium was unable to install. */
-  private final List<String> vscodiumUnavailablePlugins = new ArrayList<>();
-
   /**
    * The constructor.
    *
@@ -55,13 +52,20 @@ protected String getBinaryName() {
   }
 
   @Override
-  protected void installPlugins(Collection<ToolPluginDescriptor> plugins, ProcessContext pc) {
-    boolean isVscodium = EDITION_VSCODIUM.equals(getConfiguredEdition());
-    if (isVscodium) {
-      this.vscodiumUnavailablePlugins.clear();
-      pc.errorHandling(ProcessErrorHandling.NONE);
+  protected Path getPluginsConfigPath() {
+
+    if (EDITION_VSCODIUM.equals(getConfiguredEdition())) {
+      Path vscodiumPluginsPath = this.context.getSettingsPath().resolve(EDITION_VSCODIUM).resolve(IdeContext.FOLDER_PLUGINS);
+      if (Files.isDirectory(vscodiumPluginsPath)) {
+        return vscodiumPluginsPath;
+      }
     }
-    IdeLogLevel suppressLevel = isVscodium ? IdeLogLevel.WARNING : IdeLogLevel.STEP;
+    return super.getPluginsConfigPath();
+  }
+
+  @Override
+  protected void installPlugins(Collection<ToolPluginDescriptor> plugins, ProcessContext pc) {
+
     this.context.runWithoutLogging(() -> {
       IdeProgressBar pb = this.context.newProgressBarForPlugins(plugins.size());
       pc.setOutputListener((msg, err) -> {
@@ -71,16 +75,7 @@ protected void installPlugins(Collection<ToolPluginDescriptor> plugins, ProcessC
       });
       super.installPlugins(plugins, pc);
       pb.close();
-    }, suppressLevel);
-    if (isVscodium && !this.vscodiumUnavailablePlugins.isEmpty()) {
-      IdeLogLevel.WARNING.log(LOG,
-          "{} plugin(s) could not be installed on VSCodium due to not being available on open-vsx or other errors:\n  - {}\n"
-              + "For full plugin support, set VSCODE_EDITION=vscode to use Microsoft's distribution.\n"
-              + "For more detailed information on why plugins failed to install, check the IDEasy logfile at {}.",
-          this.vscodiumUnavailablePlugins.size(),
-          String.join("\n  - ", this.vscodiumUnavailablePlugins),
-          this.context.getIdeRoot().resolve(IdeContext.FOLDER_DOT_IDE).resolve(IdeContext.FOLDER_LOGS));
-    }
+    });
   }
 
   @Override
@@ -106,17 +101,12 @@ public boolean installPlugin(ToolPluginDescriptor plugin, Step step, ProcessCont
       step.success();
       return true;
     }
-    if (EDITION_VSCODIUM.equals(getConfiguredEdition())) {
-      this.vscodiumUnavailablePlugins.add(plugin.id());
-      return false;
+    if (versionSpecified) {
+      IdeLogLevel.ERROR.log(LOG, "Failed to install plugin: {} with version: {}", plugin.name(), plugin.version());
     } else {
-      if (versionSpecified) {
-        IdeLogLevel.ERROR.log(LOG, "Failed to install plugin: {} with version: {}", plugin.name(), plugin.version());
-      } else {
-        IdeLogLevel.ERROR.log(LOG, "Failed to install plugin: {}", plugin.name());
-      }
-      return false;
+      IdeLogLevel.ERROR.log(LOG, "Failed to install plugin: {}", plugin.name());
     }
+    return false;
   }
 
   @Override
diff --git a/cli/src/test/java/com/devonfw/tools/ide/tool/vscode/VscodeTest.java b/cli/src/test/java/com/devonfw/tools/ide/tool/vscode/VscodeTest.java
index b173869d7..ea29594f7 100644
--- a/cli/src/test/java/com/devonfw/tools/ide/tool/vscode/VscodeTest.java
+++ b/cli/src/test/java/com/devonfw/tools/ide/tool/vscode/VscodeTest.java
@@ -1,5 +1,6 @@
 package com.devonfw.tools.ide.tool.vscode;
 
+import java.nio.file.Path;
 import java.util.ArrayList;
 import java.util.HashMap;
 import java.util.List;
@@ -175,6 +176,36 @@ void testVscodiumRun() {
     checkVscodiumInstallation(context);
   }
 
+  /**
+   * Tests that VSCodium reads its plugins from the dedicated vscodium folder when it exists.
+   */
+  @Test
+  void testVscodiumUsesVscodiumPluginsFolder() {
+
+    // arrange
+    IdeTestContext context = newContext(PROJECT_VSCODIUM);
+    Vscode vscodium = new Vscode(context);
+    Path vscodiumPlugins = context.getSettingsPath().resolve("vscodium/plugins");
+    context.getFileAccess().mkdirs(vscodiumPlugins);
+
+    // act + assert
+    assertThat(vscodium.getPluginsConfigPath()).isEqualTo(vscodiumPlugins);
+  }
+
+  /**
+   * Tests that VSCodium falls back to the vscode folder when it has no dedicated plugins folder.
+   */
+  @Test
+  void testVscodiumFallsBackToVscodePluginsFolder() {
+
+    // arrange
+    IdeTestContext context = newContext(PROJECT_VSCODIUM);
+    Vscode vscodium = new Vscode(context);
+
+    // act + assert
+    assertThat(vscodium.getPluginsConfigPath()).isEqualTo(context.getSettingsPath().resolve("vscode/plugins"));
+  }
+
 
   /**
    * Test double for {@link Vscode} that captures CLI arguments passed to {@link #runTool(ProcessContext, ProcessMode, List)}