diff --git a/template/v1/Dockerfile b/template/v1/Dockerfile
index f0c5e4c2..2178e544 100644
--- a/template/v1/Dockerfile
+++ b/template/v1/Dockerfile
@@ -101,7 +101,8 @@ RUN \
         sagemaker-code-editor --install-extension "${ext}" --extensions-dir "${extensionloc}" --server-data-dir /opt/amazon/sagemaker/sagemaker-code-editor-server-data --user-data-dir /opt/amazon/sagemaker/sagemaker-code-editor-user-data; \
        done \
     # Copy the settings
-    && cp /etc/code-editor/code_editor_machine_settings.json /opt/amazon/sagemaker/sagemaker-code-editor-server-data/data/Machine/settings.json
+    && cp /etc/code-editor/code_editor_machine_settings.json /opt/amazon/sagemaker/sagemaker-code-editor-server-data/data/Machine/settings.json \
+    && cp /etc/code-editor/code_editor_user_settings.json /opt/amazon/sagemaker/sagemaker-code-editor-server-data/data/User/settings.json
 
 # Install glue kernels, and move to shared directory
 # Also patching base kernel so Studio background code doesn't start session silently
diff --git a/template/v1/dirs/etc/code-editor/code_editor_user_settings.json b/template/v1/dirs/etc/code-editor/code_editor_user_settings.json
new file mode 100644
index 00000000..ed3ef56a
--- /dev/null
+++ b/template/v1/dirs/etc/code-editor/code_editor_user_settings.json
@@ -0,0 +1,3 @@
+{
+   "extensions.autoUpdate": false
+}
diff --git a/template/v2/Dockerfile b/template/v2/Dockerfile
index e628c2e2..7d5306ae 100644
--- a/template/v2/Dockerfile
+++ b/template/v2/Dockerfile
@@ -96,6 +96,7 @@ RUN if [[ -z $ARG_BASED_ENV_IN_FILENAME ]] ; \
        done \
     # Copy the settings
     && cp /etc/code-editor/code_editor_machine_settings.json /opt/amazon/sagemaker/sagemaker-code-editor-server-data/data/Machine/settings.json && \
+    && cp /etc/code-editor/code_editor_user_settings.json /opt/amazon/sagemaker/sagemaker-code-editor-server-data/data/User/settings.json && \
     # Install glue kernels, and move to shared directory
     # Also patching base kernel so Studio background code doesn't start session silently
     install-glue-kernels && \
diff --git a/template/v2/dirs/etc/code-editor/code_editor_user_settings.json b/template/v2/dirs/etc/code-editor/code_editor_user_settings.json
new file mode 100644
index 00000000..ed3ef56a
--- /dev/null
+++ b/template/v2/dirs/etc/code-editor/code_editor_user_settings.json
@@ -0,0 +1,3 @@
+{
+   "extensions.autoUpdate": false
+}
diff --git a/test/test_artifacts/v1/scripts/run_sagemaker_code_editor_tests.sh b/test/test_artifacts/v1/scripts/run_sagemaker_code_editor_tests.sh
index 0b7dda58..430fe3a6 100644
--- a/test/test_artifacts/v1/scripts/run_sagemaker_code_editor_tests.sh
+++ b/test/test_artifacts/v1/scripts/run_sagemaker_code_editor_tests.sh
@@ -51,14 +51,23 @@ for extension in "${installed_extensions[@]}"; do
 done
 echo "Verified that all extension folders are present in $extensions_base_dir."
 
-# Check that settings file is copied
+# Check that machine settings file is copied
 MACHINE_SETTINGS_FILE_PATH="/opt/amazon/sagemaker/sagemaker-code-editor-server-data/data/Machine/settings.json"
 if [ ! -f "$MACHINE_SETTINGS_FILE_PATH" ]; then
     echo "Error: Settings file does not exist at $MACHINE_SETTINGS_FILE_PATH."
     exit 1
 fi
 
-echo "Settings file exists at $FILE_PATH."
+echo "Machine Settings file exists at $MACHINE_SETTINGS_FILE_PATH."
+
+# Check that user settings file is copied
+USER_SETTINGS_FILE_PATH="/opt/amazon/sagemaker/sagemaker-code-editor-server-data/data/User/settings.json"
+if [ ! -f "$USER_SETTINGS_FILE_PATH" ]; then
+    echo "Error: Settings file does not exist at $USER_SETTINGS_FILE_PATH."
+    exit 1
+fi
+
+echo "User Settings file exists at $USER_SETTINGS_FILE_PATH."
 
 # Check that code-editor artifacts folder is deleted
 ARTIFACTS_DIR="/etc/code-editor"
diff --git a/test/test_artifacts/v2/scripts/run_sagemaker_code_editor_tests.sh b/test/test_artifacts/v2/scripts/run_sagemaker_code_editor_tests.sh
index 0b7dda58..430fe3a6 100644
--- a/test/test_artifacts/v2/scripts/run_sagemaker_code_editor_tests.sh
+++ b/test/test_artifacts/v2/scripts/run_sagemaker_code_editor_tests.sh
@@ -51,14 +51,23 @@ for extension in "${installed_extensions[@]}"; do
 done
 echo "Verified that all extension folders are present in $extensions_base_dir."
 
-# Check that settings file is copied
+# Check that machine settings file is copied
 MACHINE_SETTINGS_FILE_PATH="/opt/amazon/sagemaker/sagemaker-code-editor-server-data/data/Machine/settings.json"
 if [ ! -f "$MACHINE_SETTINGS_FILE_PATH" ]; then
     echo "Error: Settings file does not exist at $MACHINE_SETTINGS_FILE_PATH."
     exit 1
 fi
 
-echo "Settings file exists at $FILE_PATH."
+echo "Machine Settings file exists at $MACHINE_SETTINGS_FILE_PATH."
+
+# Check that user settings file is copied
+USER_SETTINGS_FILE_PATH="/opt/amazon/sagemaker/sagemaker-code-editor-server-data/data/User/settings.json"
+if [ ! -f "$USER_SETTINGS_FILE_PATH" ]; then
+    echo "Error: Settings file does not exist at $USER_SETTINGS_FILE_PATH."
+    exit 1
+fi
+
+echo "User Settings file exists at $USER_SETTINGS_FILE_PATH."
 
 # Check that code-editor artifacts folder is deleted
 ARTIFACTS_DIR="/etc/code-editor"