diff --git a/openhands/runtime/utils/runtime_templates/Dockerfile.j2 b/openhands/runtime/utils/runtime_templates/Dockerfile.j2
index 0cb71ffea77e..746165cae0cd 100644
--- a/openhands/runtime/utils/runtime_templates/Dockerfile.j2
+++ b/openhands/runtime/utils/runtime_templates/Dockerfile.j2
@@ -105,7 +105,6 @@ RUN \
 # rather than the current OpenHands release
 
 {{ setup_base_system() }}
-{{ setup_vscode_server() }}
 
 # Install micromamba
 RUN mkdir -p /openhands/micromamba/bin && \
@@ -140,6 +139,8 @@ COPY ./code/pyproject.toml ./code/poetry.lock /openhands/code/
 COPY ./code/openhands /openhands/code/openhands
 RUN chmod a+rwx /openhands/code/openhands/__init__.py
 
+{{ setup_vscode_server() }}
+
 # ================================================================
 # END: Build from versioned image
 # ================================================================