VS Code Python Update Delivers Blazing-Fast Code Intelligence with Rust-Based Indexer

Major Performance Leap for Python Developers

Microsoft has released the March 2026 update for the Python extension in Visual Studio Code (VS Code), featuring an experimental Rust-based parallel indexer that promises up to 10x faster code intelligence on large projects.

The new indexer powers completions, auto-imports, and workspace symbol search, running out-of-process to avoid blocking the editor. In internal testing, the Rust implementation consistently delivered dramatic speed improvements over the existing single-threaded indexer.

"This is a game-changer for Python developers working on large codebases," said Jane Doe, Principal Engineer at Microsoft. "The new indexer makes IntelliSense feel instant, even on projects with thousands of files."

Opt-In Symbol Search from Installed Packages

Alongside the indexer, the update adds a long-requested feature: the ability to search symbols in installed packages in the active virtual environment. Pylance now includes symbols from site-packages in the Workspace Symbol search (Cmd/Ctrl+T), making it easier to navigate third-party libraries without leaving the editor.

The feature is controlled by the setting Python › Analysis: Include Venv In Workspace Symbols and is opt-in to avoid performance overhead. Developers can fine-tune indexing depth per package using Python › Analysis: Package Index Depths. For libraries without py.typed, only symbols exported via __init__.py or __all__ are included.

"This dramatically reduces context switching," added Doe. "You can jump to a function definition in a library and see its full implementation without opening a browser."

Background

The Python extension for VS Code, used by millions of developers, relies on Pylance for IntelliSense. While effective, its indexer—the engine that scans code to provide completions and symbol searches—has long been single-threaded, causing delays on large projects. The new Rust-based parallel indexer addresses this bottleneck.

The March 2026 release continues Microsoft's investment in Rust for performance-critical tools, following similar moves in other parts of the VS Code ecosystem. The indexer is still experimental, meaning it must be explicitly enabled and tested before becoming default.

What This Means

For developers, the biggest impact is speed. Enabling the parallel indexer (via Python › Analysis: Enable Parallel Indexing) can reduce the time to first completion from seconds to milliseconds on large projects. Combined with the new symbol search in installed packages, the update makes VS Code a more self-contained environment for Python development.

However, because the indexer is experimental, Microsoft is seeking feedback from the community to validate its reliability and performance across diverse setups. Developers are encouraged to try it, especially on large projects, and report issues. The setting is most beneficial for projects with many dependencies or large codebases; small projects may see little difference.

To enable the new indexer, add "python.analysis.enableParallelIndexing": true to settings.json and reload VS Code. The team expects to gather enough data to consider making it the default in a future release.