diff --git a/apps/vscode-e2e/src/runTest.ts b/apps/vscode-e2e/src/runTest.ts
index 2e8b262a49..a1005eb0e7 100644
--- a/apps/vscode-e2e/src/runTest.ts
+++ b/apps/vscode-e2e/src/runTest.ts
@@ -30,6 +30,7 @@ async function main() {
 			...process.env,
 			...(testGrep && { TEST_GREP: testGrep }),
 			...(testFile && { TEST_FILE: testFile }),
+			VSCODE_E2E_TESTING: "true", // Flag to indicate E2E testing environment
 		}
 
 		// Download VS Code, unzip it and run the integration test
diff --git a/src/services/code-index/manager.ts b/src/services/code-index/manager.ts
index 9499fc0545..13bca68357 100644
--- a/src/services/code-index/manager.ts
+++ b/src/services/code-index/manager.ts
@@ -54,7 +54,9 @@ export class CodeIndexManager {
 		this.context = context
 		// Create state manager with default throttle interval (500ms)
 		// Can be customized by passing a different value to the constructor
-		this._stateManager = new CodeIndexStateManager()
+		// In test environments, disable throttling to prevent timeouts
+		const throttleInterval = process.env.VSCODE_E2E_TESTING === "true" ? 0 : undefined
+		this._stateManager = new CodeIndexStateManager(throttleInterval)
 	}
 
 	// --- Public API ---