diff --git a/package.json b/package.json
index b5955a0..2f8598d 100644
--- a/package.json
+++ b/package.json
@@ -173,27 +173,32 @@
         {
           "id": "imageExplorer",
           "name": "%makecode.imageExplorer.title%",
-          "icon": "media/logo.svg"
+          "icon": "media/logo.svg",
+          "when": "makecode.hasMakeCodeProjectOpen"
         },
         {
           "id": "animationExplorer",
           "name": "%makecode.animationExplorer.title%",
-          "icon": "media/logo.svg"
+          "icon": "media/logo.svg",
+          "when": "makecode.hasMakeCodeProjectOpen"
         },
         {
           "id": "tileExplorer",
           "name": "%makecode.tileExplorer.title%",
-          "icon": "media/logo.svg"
+          "icon": "media/logo.svg",
+          "when": "makecode.hasMakeCodeProjectOpen"
         },
         {
           "id": "tilemapExplorer",
           "name": "%makecode.tilemapExplorer.title%",
-          "icon": "media/logo.svg"
+          "icon": "media/logo.svg",
+          "when": "makecode.hasMakeCodeProjectOpen"
         },
         {
           "id": "songExplorer",
           "name": "%makecode.songExplorer.title%",
-          "icon": "media/logo.svg"
+          "icon": "media/logo.svg",
+          "when": "makecode.hasMakeCodeProjectOpen"
         }
       ]
     },
@@ -285,31 +290,31 @@
         },
         {
           "command": "makecode.build",
-          "when": "makecode.extensionActive"
+          "when": "makecode.hasMakeCodeProjectOpen"
         },
         {
           "command": "makecode.simulate",
-          "when": "makecode.extensionActive"
+          "when": "makecode.hasMakeCodeProjectOpen"
         },
         {
           "command": "makecode.clean",
-          "when": "makecode.extensionActive"
+          "when": "makecode.hasMakeCodeProjectOpen"
         },
         {
           "command": "makecode.shareProject",
-          "when": "makecode.extensionActive"
+          "when": "makecode.hasMakeCodeProjectOpen"
         },
         {
           "command": "makecode.addDependency",
-          "when": "makecode.extensionActive"
+          "when": "makecode.hasMakeCodeProjectOpen"
         },
         {
           "command": "makecode.removeDependency",
-          "when": "makecode.extensionActive"
+          "when": "makecode.hasMakeCodeProjectOpen"
         },
         {
           "command": "makecode.refreshAssets",
-          "when": "makecode.extensionActive"
+          "when": "makecode.hasMakeCodeProjectOpen"
         }
       ]
     },
diff --git a/src/web/extension.ts b/src/web/extension.ts
index 2344d15..ffdcc7c 100644
--- a/src/web/extension.ts
+++ b/src/web/extension.ts
@@ -108,6 +108,11 @@ export function activate(context: vscode.ExtensionContext) {
     context.subscriptions.push(
         vscode.window.registerTreeDataProvider("songExplorer", new JResTreeProvider("song"))
     );
+    context.subscriptions.push(
+        vscode.workspace.onDidChangeWorkspaceFolders(e => {
+            maybeSetInMakeCodeProjectAsync();
+        })
+    )
 
     // This key is not sensitive, and is publicly available in client side apps logging to AI
     const appInsightsKey = "0c6ae279ed8443289764825290e4f9e2-1a736e7c-1324-4338-be46-fc2a58ae4d14-7255";
@@ -124,28 +129,42 @@ export function activate(context: vscode.ExtensionContext) {
 
     // Set a context key to indicate that we have activated, so context menu commands can show
     vscode.commands.executeCommand('setContext', 'makecode.extensionActive', true);
+    maybeSetInMakeCodeProjectAsync();
 }
 
-async function chooseWorkspaceAsync(kind: "empty" | "project" | "any", silent = false): Promise<vscode.WorkspaceFolder | undefined> {
+async function maybeSetInMakeCodeProjectAsync() {
+    const hasProjectFolder = await findOpenFolders("project");
+    if (!!hasProjectFolder.length) {
+        setInMakeCodeProjectAsync();
+    }
+}
+
+export function setInMakeCodeProjectAsync() {
+    vscode.commands.executeCommand("setContext", "makecode.hasMakeCodeProjectOpen", true);
+}
+
+async function findOpenFolders(kind: "empty" | "project" | "any") {
     const folders = [];
-    let hasWorkspaceOpen = false;
 
-    if (vscode.workspace.workspaceFolders) {
-        hasWorkspaceOpen = !!vscode.workspace.workspaceFolders.length;
-        for (const folder of vscode.workspace.workspaceFolders) {
-            if (kind === "any") {
-                folders.push(folder);
-            }
-            else {
-                const pxtJSONExists = await fileExistsAsync(vscode.Uri.joinPath(folder.uri, "pxt.json"));
+    for (const folder of (vscode.workspace.workspaceFolders || [])) {
+        if (kind === "any") {
+            folders.push(folder);
+        }
+        else {
+            const pxtJSONExists = await fileExistsAsync(vscode.Uri.joinPath(folder.uri, "pxt.json"));
 
-                if ((kind === "project" && pxtJSONExists) || (kind === "empty" && !pxtJSONExists)) {
-                    folders.push(folder);
-                }
+            if ((kind === "project" && pxtJSONExists) || (kind === "empty" && !pxtJSONExists)) {
+                folders.push(folder);
             }
         }
     }
 
+    return folders;
+}
+
+async function chooseWorkspaceAsync(kind: "empty" | "project" | "any", silent = false): Promise<vscode.WorkspaceFolder | undefined> {
+    const folders = await findOpenFolders(kind);
+    const hasWorkspaceOpen = !!vscode.workspace.workspaceFolders?.length;
 
     if (folders.length === 0) {
         if (!silent) {
@@ -302,6 +321,7 @@ export async function importUrlCommand(url?: string, useWorkspace?: vscode.Works
     }, async progress => {
         try {
             await downloadSharedProjectAsync(workspace!, toOpen!);
+            setInMakeCodeProjectAsync()
         }
         catch (e) {
             showError(vscode.l10n.t("Unable to download project"));
@@ -502,6 +522,7 @@ async function createCommand()  {
         });
     }
 
+    setInMakeCodeProjectAsync();
     await renameProjectAsync(workspace, projectName);
 }
 
diff --git a/src/web/vfs.ts b/src/web/vfs.ts
index 4b5f1e2..484c2ea 100644
--- a/src/web/vfs.ts
+++ b/src/web/vfs.ts
@@ -1,6 +1,6 @@
 import * as path from "path-browserify"
 import * as vscode from "vscode"
-import { importUrlCommand } from "./extension";
+import { importUrlCommand, setInMakeCodeProjectAsync } from "./extension";
 
 export class VFS implements vscode.FileSystemProvider {
     private initializedDirs: {[index: string]: boolean} = {}
@@ -119,6 +119,7 @@ export class VFS implements vscode.FileSystemProvider {
         if (!(await this.existsAsync(pxtJSON))) {
             await importUrlCommand(shareId, { name: shareId, uri: projectDir, index: 0 })
         }
+        setInMakeCodeProjectAsync();
         this.initializedDirs[shareId] = true;
     }