diff --git a/npm-shrinkwrap.json b/npm-shrinkwrap.json
index c87ce9455071a..dbb0fa7766345 100644
--- a/npm-shrinkwrap.json
+++ b/npm-shrinkwrap.json
@@ -296,9 +296,9 @@
       "resolved": "https://registry.npmjs.org/native-keymap/-/native-keymap-1.2.5.tgz"
     },
     "native-watchdog": {
-      "version": "0.2.0",
-      "from": "native-watchdog@0.2.0",
-      "resolved": "https://registry.npmjs.org/native-watchdog/-/native-watchdog-0.2.0.tgz"
+      "version": "0.3.0",
+      "from": "native-watchdog@0.3.0",
+      "resolved": "https://registry.npmjs.org/native-watchdog/-/native-watchdog-0.3.0.tgz"
     },
     "node-pty": {
       "version": "0.7.0",
diff --git a/package.json b/package.json
index c6bf393632168..aaf934266b077 100644
--- a/package.json
+++ b/package.json
@@ -35,7 +35,7 @@
     "keytar": "^4.0.3",
     "minimist": "1.2.0",
     "native-keymap": "1.2.5",
-    "native-watchdog": "0.2.0",
+    "native-watchdog": "0.3.0",
     "node-pty": "0.7.0",
     "nsfw": "1.0.16",
     "semver": "4.3.6",
diff --git a/src/typings/native-watchdog.d.ts b/src/typings/native-watchdog.d.ts
index 5ab15e00fbf9c..e7342da904733 100644
--- a/src/typings/native-watchdog.d.ts
+++ b/src/typings/native-watchdog.d.ts
@@ -7,4 +7,6 @@ declare module 'native-watchdog' {
 
 	export function start(timeout: number): void;
 
+	export function exit(exitCode: number): void;
+
 }
diff --git a/src/vs/workbench/node/extensionHostMain.ts b/src/vs/workbench/node/extensionHostMain.ts
index 5ee81a16bf3b3..8a55e8bb280be 100644
--- a/src/vs/workbench/node/extensionHostMain.ts
+++ b/src/vs/workbench/node/extensionHostMain.ts
@@ -17,15 +17,33 @@ import { QueryType, ISearchQuery } from 'vs/platform/search/common/search';
 import { DiskSearch } from 'vs/workbench/services/search/node/searchService';
 import { IInitData, IEnvironment, IWorkspaceData, MainContext } from 'vs/workbench/api/node/extHost.protocol';
 import * as errors from 'vs/base/common/errors';
-// import * as watchdog from 'native-watchdog';
+import * as watchdog from 'native-watchdog';
 
-const nativeExit = process.exit.bind(process);
+// const nativeExit = process.exit.bind(process);
 process.exit = function () {
 	const err = new Error('An extension called process.exit() and this was prevented.');
 	console.warn(err.stack);
 };
 export function exit(code?: number) {
-	nativeExit(code);
+	//nativeExit(code);
+
+	// TODO@electron
+	// See https://github.com/Microsoft/vscode/issues/32990
+	// calling process.exit() does not exit the process when the process is being debugged
+	// It waits for the debugger to disconnect, but in our version, the debugger does not
+	// receive an event that the process desires to exit such that it can disconnect.
+
+	// Do exactly what node.js would have done, minus the wait for the debugger part
+
+	if (code || code === 0) {
+		process.exitCode = code;
+	}
+
+	if (!(<any>process)._exiting) {
+		(<any>process)._exiting = true;
+		process.emit('exit', process.exitCode || 0);
+	}
+	watchdog.exit(process.exitCode || 0);
 }
 
 interface ITestRunner {