diff --git a/pkgs/applications/editors/vscode/extensions/default.nix b/pkgs/applications/editors/vscode/extensions/default.nix
index f1b386f08224..6d3d2bbe0c8f 100644
--- a/pkgs/applications/editors/vscode/extensions/default.nix
+++ b/pkgs/applications/editors/vscode/extensions/default.nix
@@ -1749,8 +1749,8 @@ let
         mktplcRef = {
           name = "vscode-yaml";
           publisher = "redhat";
-          version = "1.5.1";
-          sha256 = "sha256-JXhmgBFZdKNjgX6K7U+M/T7HEmIOBQOzQEJ5957TUuM=";
+          version = "1.7.0";
+          sha256 = "1bbjpaypp0mq5akww5f0pkpq01j0xhhvkfr44f4lb2rdhr5nmnvc";
         };
         meta = {
           license = lib.licenses.mit;