diff --git a/package.json b/package.json
index 67c16bbfd09..61d4ffd2d3a 100644
--- a/package.json
+++ b/package.json
@@ -12,6 +12,9 @@
         "branch": "",
         "SHA": ""
     },
+    "dependencies": {
+        "npm": "2.15.10"
+    },
     "devDependencies": {
         "grunt": "0.4.5",
         "jasmine-node": "1.11.0",
diff --git a/src/extensibility/node/ExtensionManagerDomain.js b/src/extensibility/node/ExtensionManagerDomain.js
index 0fbc6357ffe..473eeea5f87 100644
--- a/src/extensibility/node/ExtensionManagerDomain.js
+++ b/src/extensibility/node/ExtensionManagerDomain.js
@@ -30,6 +30,7 @@ var semver   = require("semver"),
     request  = require("request"),
     fs       = require("fs-extra"),
     temp     = require("temp"),
+    npm      = require("npm"),
     validate = require("./package-validator").validate;
 
 // Automatically clean up temp files on exit
@@ -97,17 +98,61 @@ function _performInstall(packagePath, installDirectory, validationResult, callba
         var sourceDir = path.join(validationResult.extractDir, validationResult.commonPrefix);
 
         fs.copy(sourceDir, installDirectory, function (err) {
-            if (err) {
+
+            var fail = function (err) {
                 _removeFailedInstallation(installDirectory);
                 callback(err, null);
-            } else {
+            };
+
+            var finish = function () {
                 // The status may have already been set previously (as in the
                 // DISABLED case.
                 if (!validationResult.installationStatus) {
                     validationResult.installationStatus = Statuses.INSTALLED;
                 }
                 callback(null, validationResult);
+            };
+
+            if (err) {
+                fail(err);
+                return;
+            }
+
+            var packageJson,
+                npmDependencies;
+
+            try {
+                packageJson = JSON.parse(fs.readFileSync(path.join(installDirectory, "package.json"), {
+                    encoding: "utf8"
+                }));
+            } catch (e) {
+                packageJson = null;
             }
+
+            if (packageJson && packageJson.dependencies) {
+                npmDependencies = Object.keys(packageJson.dependencies).map(function (key) {
+                    return key + "@" + packageJson.dependencies[key];
+                });
+            }
+
+            if (npmDependencies && npmDependencies.length > 0) {
+                npm.load(function (err, npm) {
+                    if (err) {
+                        fail(err);
+                        return;
+                    }
+                    npm.commands.install(installDirectory, npmDependencies, function (err, result) {
+                        if (err) {
+                            fail(err);
+                            return;
+                        }
+                        finish();
+                    });
+                });
+            } else {
+                finish();
+            }
+
         });
     });
 }
diff --git a/src/extensibility/node/spec/Installation.spec.js b/src/extensibility/node/spec/Installation.spec.js
index e4222314811..58756c099b7 100644
--- a/src/extensibility/node/spec/Installation.spec.js
+++ b/src/extensibility/node/spec/Installation.spec.js
@@ -54,7 +54,8 @@ var basicValidExtension       = path.join(testFilesDirectory, "basic-valid-exten
     missingPackageJSON        = path.join(testFilesDirectory, "missing-package-json.zip"),
     missingPackageJSONUpdate  = path.join(testFilesDirectory, "missing-package-json-update.zip"),
     missingPackageJSONRenamed = path.join(testFilesDirectory, "added-package-json-test", "missing-package-json.zip"),
-    withSymlink               = path.join(testFilesDirectory, "with-symlink.zip");
+    withSymlink               = path.join(testFilesDirectory, "with-symlink.zip"),
+    withNpmDependencies       = path.join(testFilesDirectory, "with-npm-dependencies.zip");
 
 
 describe("Package Installation", function () {
@@ -323,4 +324,30 @@ describe("Package Installation", function () {
             done();
         });
     });
+    
+    it("should download npm dependencies when present", function (done) {
+        ExtensionsDomain._cmdInstall(withNpmDependencies, installDirectory, standardOptions, function (err, result) {
+            expect(err).toBeNull();
+            expect(result.errors.length).toEqual(0);
+            expect(fs.existsSync(result.installedTo)).toBe(true);
+            expect(fs.existsSync(path.join(result.installedTo, "node_modules"))).toBe(true);
+            
+            expect(fs.existsSync(path.join(result.installedTo, "node_modules", "lodash"))).toBe(true);
+            expect(fs.existsSync(path.join(result.installedTo, "node_modules", "lodash", "package.json"))).toBe(true);
+            var packageInfo = JSON.parse(fs.readFileSync(path.join(result.installedTo, "node_modules", "lodash", "package.json")));
+            expect(packageInfo.version.slice(0,2)).toBe("3.");
+            
+            expect(fs.existsSync(path.join(result.installedTo, "node_modules", "moment"))).toBe(true);
+            expect(fs.existsSync(path.join(result.installedTo, "node_modules", "moment", "package.json"))).toBe(true);
+            packageInfo = JSON.parse(fs.readFileSync(path.join(result.installedTo, "node_modules", "moment", "package.json")));
+            expect(packageInfo.version.slice(0,4)).toBe("2.5.");
+            
+            expect(fs.existsSync(path.join(result.installedTo, "node_modules", "underscore"))).toBe(true);
+            expect(fs.existsSync(path.join(result.installedTo, "node_modules", "underscore", "package.json"))).toBe(true);
+            packageInfo = JSON.parse(fs.readFileSync(path.join(result.installedTo, "node_modules", "underscore", "package.json")));
+            expect(packageInfo.version).toBe("1.0.4");
+            
+            done();
+        });
+    });
 });
diff --git a/test/spec/extension-test-files/with-npm-dependencies.zip b/test/spec/extension-test-files/with-npm-dependencies.zip
new file mode 100644
index 00000000000..4da73059264
Binary files /dev/null and b/test/spec/extension-test-files/with-npm-dependencies.zip differ