diff --git a/pkgs/applications/editors/vscode/extensions/default.nix b/pkgs/applications/editors/vscode/extensions/default.nix
index 0ddc82509d78..97467637ed8d 100644
--- a/pkgs/applications/editors/vscode/extensions/default.nix
+++ b/pkgs/applications/editors/vscode/extensions/default.nix
@@ -3863,8 +3863,8 @@ let
         mktplcRef = {
           publisher = "redhat";
           name = "vscode-yaml";
-          version = "1.20.0";
-          hash = "sha256-JETNAqekAesVKHkOYHMVLTzD2lx8Td0IFAoDTSEWigg=";
+          version = "1.21.0";
+          hash = "sha256-55PBCTV6NJL+JVH+19vIoA5GKMDD8uB7z9OCOb+GjZM=";
         };
         meta = {
           description = "YAML Language Support by Red Hat, with built-in Kubernetes syntax support";