diff --git a/jakarta.eclipse/org.eclipse.lsp4jakarta.lsp4e.core/META-INF/MANIFEST.MF b/jakarta.eclipse/org.eclipse.lsp4jakarta.lsp4e.core/META-INF/MANIFEST.MF
index 3ed752af..167c6cca 100644
--- a/jakarta.eclipse/org.eclipse.lsp4jakarta.lsp4e.core/META-INF/MANIFEST.MF
+++ b/jakarta.eclipse/org.eclipse.lsp4jakarta.lsp4e.core/META-INF/MANIFEST.MF
@@ -6,6 +6,7 @@ Bundle-SymbolicName: org.eclipse.lsp4jakarta.lsp4e.core;singleton:=true
 Bundle-Version: 0.2.0.qualifier
 Bundle-Activator: org.eclipse.lsp4jakarta.lsp4e.Activator
 Require-Bundle: 
+ com.google.gson,
  org.eclipse.lsp4e,
  org.eclipse.core.runtime,
  org.eclipse.ui.workbench,
diff --git a/jakarta.eclipse/org.eclipse.lsp4jakarta.lsp4e.core/src/main/java/org/eclipse/lsp4jakarta/lsp4e/JakartaLSConnection.java b/jakarta.eclipse/org.eclipse.lsp4jakarta.lsp4e.core/src/main/java/org/eclipse/lsp4jakarta/lsp4e/JakartaLSConnection.java
index 27b7618c..3acb0328 100644
--- a/jakarta.eclipse/org.eclipse.lsp4jakarta.lsp4e.core/src/main/java/org/eclipse/lsp4jakarta/lsp4e/JakartaLSConnection.java
+++ b/jakarta.eclipse/org.eclipse.lsp4jakarta.lsp4e.core/src/main/java/org/eclipse/lsp4jakarta/lsp4e/JakartaLSConnection.java
@@ -99,9 +99,14 @@ public Object getInitializationOptions(URI rootUri) {
         trace.put("server", "verbose");
         tools.put("trace", trace);
         jakarta.put("tools", tools);
-        settings.put("jakararta", jakarta);
+        settings.put("jakarta", jakarta);
         root.put("settings", settings);
 
+        // Set extended capabilities.
+        Map<String, Object> extendedClientCapabilities = new HashMap<>();
+        extendedClientCapabilities.put("shouldLanguageServerExitOnShutdown", Boolean.TRUE);
+        root.put("extendedClientCapabilities", extendedClientCapabilities);
+
         return root;
     }
 }
diff --git a/jakarta.eclipse/org.eclipse.lsp4jakarta.lsp4e.core/src/main/java/org/eclipse/lsp4jakarta/lsp4e/JakartaLanguageClient.java b/jakarta.eclipse/org.eclipse.lsp4jakarta.lsp4e.core/src/main/java/org/eclipse/lsp4jakarta/lsp4e/JakartaLanguageClient.java
index da9bd5fd..bd939929 100755
--- a/jakarta.eclipse/org.eclipse.lsp4jakarta.lsp4e.core/src/main/java/org/eclipse/lsp4jakarta/lsp4e/JakartaLanguageClient.java
+++ b/jakarta.eclipse/org.eclipse.lsp4jakarta.lsp4e.core/src/main/java/org/eclipse/lsp4jakarta/lsp4e/JakartaLanguageClient.java
@@ -35,6 +35,8 @@
 import org.eclipse.lsp4jakarta.commons.JakartaJavaProjectLabelsParams;
 import org.eclipse.lsp4jakarta.commons.JavaCursorContextResult;
 import org.eclipse.lsp4jakarta.commons.ProjectLabelInfoEntry;
+import org.eclipse.lsp4jakarta.commons.codeaction.CodeActionResolveData;
+import org.eclipse.lsp4jakarta.commons.utils.JSONUtility;
 import org.eclipse.lsp4jakarta.jdt.core.ProjectLabelManager;
 import org.eclipse.lsp4jakarta.jdt.core.PropertiesManagerForJava;
 import org.eclipse.lsp4jakarta.jdt.internal.core.ls.JDTUtilsLSImpl;
@@ -56,6 +58,9 @@ public boolean isCanceled() {
         return monitor;
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public CompletableFuture<JakartaJavaCompletionResult> getJavaCompletion(JakartaJavaCompletionParams javaParams) {
         return CompletableFutures.computeAsync(cancelChecker -> {
@@ -74,6 +79,9 @@ public CompletableFuture<JakartaJavaCompletionResult> getJavaCompletion(JakartaJ
         });
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public CompletableFuture<List<ProjectLabelInfoEntry>> getAllJavaProjectLabels() {
         return CompletableFutures.computeAsync((cancelChecker) -> {
@@ -82,6 +90,9 @@ public CompletableFuture<List<ProjectLabelInfoEntry>> getAllJavaProjectLabels()
         });
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public CompletableFuture<ProjectLabelInfoEntry> getJavaProjectLabels(JakartaJavaProjectLabelsParams javaParams) {
         return CompletableFutures.computeAsync((cancelChecker) -> {
@@ -91,6 +102,9 @@ public CompletableFuture<ProjectLabelInfoEntry> getJavaProjectLabels(JakartaJava
         });
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public CompletableFuture<JakartaJavaFileInfo> getJavaFileInfo(JakartaJavaFileInfoParams javaParams) {
         return CompletableFutures.computeAsync(cancelChecker -> {
@@ -99,6 +113,9 @@ public CompletableFuture<JakartaJavaFileInfo> getJavaFileInfo(JakartaJavaFileInf
         });
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public CompletableFuture<List<PublishDiagnosticsParams>> getJavaDiagnostics(
                                                                                 JakartaJavaDiagnosticsParams javaParams) {
@@ -113,6 +130,9 @@ public CompletableFuture<List<PublishDiagnosticsParams>> getJavaDiagnostics(
         });
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public CompletableFuture<List<CodeAction>> getJavaCodeAction(JakartaJavaCodeActionParams javaParams) {
         return CompletableFutures.computeAsync((cancelChecker) -> {
@@ -126,11 +146,16 @@ public CompletableFuture<List<CodeAction>> getJavaCodeAction(JakartaJavaCodeActi
         });
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public CompletableFuture<CodeAction> resolveCodeAction(CodeAction unresolved) {
         return CompletableFutures.computeAsync((cancelChecker) -> {
             IProgressMonitor monitor = getProgressMonitor(cancelChecker);
             try {
+                CodeActionResolveData resolveData = JSONUtility.toModel(unresolved.getData(), CodeActionResolveData.class);
+                unresolved.setData(resolveData);
                 return (CodeAction) PropertiesManagerForJava.getInstance().resolveCodeAction(unresolved,
                                                                                              JDTUtilsLSImpl.getInstance(), monitor);
             } catch (JavaModelException e) {
diff --git a/jakarta.jdt/org.eclipse.lsp4jakarta.jdt.core/META-INF/MANIFEST.MF b/jakarta.jdt/org.eclipse.lsp4jakarta.jdt.core/META-INF/MANIFEST.MF
index c86ec67b..bc06bfa8 100644
--- a/jakarta.jdt/org.eclipse.lsp4jakarta.jdt.core/META-INF/MANIFEST.MF
+++ b/jakarta.jdt/org.eclipse.lsp4jakarta.jdt.core/META-INF/MANIFEST.MF
@@ -28,6 +28,7 @@ Bundle-ActivationPolicy: lazy
 Bundle-ClassPath: .
 Export-Package: 
  org.eclipse.lsp4jakarta.commons,
+ org.eclipse.lsp4jakarta.commons.codeaction,
  org.eclipse.lsp4jakarta.jdt.core,
  org.eclipse.lsp4jakarta.jdt.core.utils,
  org.eclipse.lsp4jakarta.jdt.internal.core.ls
diff --git a/jakarta.jdt/org.eclipse.lsp4jakarta.jdt.core/pom.xml b/jakarta.jdt/org.eclipse.lsp4jakarta.jdt.core/pom.xml
index 292352be..7be389ee 100644
--- a/jakarta.jdt/org.eclipse.lsp4jakarta.jdt.core/pom.xml
+++ b/jakarta.jdt/org.eclipse.lsp4jakarta.jdt.core/pom.xml
@@ -24,13 +24,6 @@
             <comments>Eclipse Public License 2.0</comments>
         </license>
     </licenses>
-    <dependencies>
-        <dependency>
-            <groupId>com.google.code.gson</groupId>
-            <artifactId>gson</artifactId>
-            <version>2.9.0</version>
-        </dependency>
-    </dependencies>
     <build>
         <resources>
             <resource>
diff --git a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/ls/JakartaLanguageServer.java b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/ls/JakartaLanguageServer.java
index d3d00ce0..1daafc85 100644
--- a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/ls/JakartaLanguageServer.java
+++ b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/ls/JakartaLanguageServer.java
@@ -1,5 +1,5 @@
 /*******************************************************************************
-* Copyright (c) 2020 IBM Corporation and others.
+* Copyright (c) 2020, 2023 IBM Corporation and others.
 *
 * This program and the accompanying materials are made available under the
 * terms of the Eclipse Public License v. 2.0 which is available at
@@ -15,13 +15,15 @@
 
 import java.util.List;
 import java.util.concurrent.CompletableFuture;
+import java.util.concurrent.Executors;
+import java.util.concurrent.ScheduledExecutorService;
+import java.util.concurrent.TimeUnit;
 import java.util.logging.Logger;
 
-import org.eclipse.lsp4j.CompletionOptions;
 import org.eclipse.lsp4j.InitializeParams;
 import org.eclipse.lsp4j.InitializeResult;
+import org.eclipse.lsp4j.InitializedParams;
 import org.eclipse.lsp4j.ServerCapabilities;
-import org.eclipse.lsp4j.TextDocumentSyncKind;
 import org.eclipse.lsp4j.jsonrpc.CompletableFutures;
 import org.eclipse.lsp4j.services.LanguageClient;
 import org.eclipse.lsp4j.services.LanguageServer;
@@ -35,8 +37,20 @@
 import org.eclipse.lsp4jakarta.ls.api.JakartaJavaProjectLabelsProvider;
 import org.eclipse.lsp4jakarta.ls.api.JakartaLanguageClientAPI;
 import org.eclipse.lsp4jakarta.ls.commons.ParentProcessWatcher.ProcessLanguageServer;
+import org.eclipse.lsp4jakarta.ls.commons.client.ExtendedClientCapabilities;
+import org.eclipse.lsp4jakarta.ls.commons.client.InitializationOptionsExtendedClientCapabilities;
 import org.eclipse.lsp4jakarta.ls.java.JakartaTextDocuments;
-
+import org.eclipse.lsp4jakarta.settings.AllJakartaSettings;
+import org.eclipse.lsp4jakarta.settings.InitializationOptionsSettings;
+import org.eclipse.lsp4jakarta.settings.JakartaGeneralClientSettings;
+import org.eclipse.lsp4jakarta.settings.JakartaTraceSettings;
+import org.eclipse.lsp4jakarta.settings.SharedSettings;
+import org.eclipse.lsp4jakarta.settings.capabilities.JakartaCapabilityManager;
+import org.eclipse.lsp4jakarta.settings.capabilities.ServerCapabilitiesInitializer;
+
+/**
+ * Jakarta Language server.
+ */
 public class JakartaLanguageServer implements LanguageServer, ProcessLanguageServer, JakartaJavaProjectLabelsProvider, JakartaJavaFileInfoProvider {
 
     private Integer parentProcessId;
@@ -44,64 +58,124 @@ public class JakartaLanguageServer implements LanguageServer, ProcessLanguageSer
     private static final Logger LOGGER = Logger.getLogger(JakartaLanguageServer.class.getName());
 
     private final WorkspaceService workspaceService;
-    private final TextDocumentService textDocumentService;
+    private final JakartaTextDocumentService textDocumentService;
     private final JakartaTextDocuments javaDocuments;
+    private final SharedSettings sharedSettings;
 
     private JakartaLanguageClientAPI languageClient;
+    private JakartaCapabilityManager capabilityManager;
 
+    /**
+     * Constructor
+     */
     public JakartaLanguageServer() {
-        // Workspace service handles workspace settings changes and calls update
-        // settings.
-        javaDocuments = new JakartaTextDocuments(this, this);
         workspaceService = new JakartaWorkspaceService(this);
-        textDocumentService = new JakartaTextDocumentService(this, javaDocuments);
+        javaDocuments = new JakartaTextDocuments(this, this);
+        sharedSettings = new SharedSettings();
+        textDocumentService = new JakartaTextDocumentService(this, sharedSettings, javaDocuments);
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public CompletableFuture<InitializeResult> initialize(InitializeParams params) {
-        LOGGER.info("Initializing Jakarta EE server");
+        LOGGER.info("Initializing Jakarta EE server using: " + System.getProperty("java.home"));
         this.parentProcessId = params.getProcessId();
-        ServerCapabilities serverCapabilities = new ServerCapabilities();
-        serverCapabilities.setTextDocumentSync(TextDocumentSyncKind.Incremental);
 
+        // Consume the capabilities supported by the client.
+        ExtendedClientCapabilities extendedClientCapabilities = InitializationOptionsExtendedClientCapabilities.getExtendedClientCapabilities(params);
+        capabilityManager.setClientCapabilities(params.getCapabilities(), extendedClientCapabilities);
+        updateSettings(InitializationOptionsSettings.getSettings(params));
+        textDocumentService.updateClientCapabilities(params.getCapabilities(), extendedClientCapabilities);
+
+        // Send the capabilities supported by the sever to the client.
+        ServerCapabilities serverCapabilities = ServerCapabilitiesInitializer.getNonDynamicServerCapabilities(capabilityManager.getClientCapabilities());
         InitializeResult initializeResult = new InitializeResult(serverCapabilities);
-        // Provide Completion Capability to the LS
-        initializeResult.getCapabilities().setCompletionProvider(new CompletionOptions(false, null));
-        initializeResult.getCapabilities().setHoverProvider(true);
-        initializeResult.getCapabilities().setCodeActionProvider(true);
+
         return CompletableFuture.completedFuture(initializeResult);
     }
 
+    /**
+     * Registers all capabilities that do not support client side preferences to
+     * turn on/off
+     *
+     * (non-Javadoc)
+     *
+     * @see org.eclipse.lsp4j.services.LanguageServer#initialized(org.eclipse.lsp4j.
+     *      InitializedParams)
+     */
+    @Override
+    public void initialized(InitializedParams params) {
+        capabilityManager.initializeCapabilities();
+    }
+
+    /**
+     * Update Jakarta settings configured by the client defined by the client flowing requests between
+     * the LS and JDT extensions.
+     *
+     * @param initializationOptionsSettings the Jakarta settings
+     */
     public synchronized void updateSettings(Object initializationOptionsSettings) {
         if (initializationOptionsSettings == null) {
             return;
         }
-        // TODO: else update settings
+
+        initializationOptionsSettings = AllJakartaSettings.getJakartaToolsSettings(initializationOptionsSettings);
+        JakartaGeneralClientSettings clientSettings = JakartaGeneralClientSettings.getGeneralJakartaSettings(initializationOptionsSettings);
+        if (clientSettings != null) {
+            JakartaTraceSettings newTrace = clientSettings.getTrace();
+            if (newTrace != null) {
+                textDocumentService.updateTraceSettings(newTrace);
+            }
+        }
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public CompletableFuture<Object> shutdown() {
-        // when shutting down LS, TextDocumentService.didClose() may not be called
-        // properly, need to clear existing diagnostics
+        // Perform some clean up. During shutdown, TextDocumentService.didClose() may not be called properly.
         ((JakartaTextDocumentService) textDocumentService).cleanDiagnostics();
+
+        // If requested by the client, on shutdown (i.e. last file closed), shutdown the language server.
+        if (capabilityManager.getClientCapabilities().shouldLanguageServerExitOnShutdown()) {
+            LOGGER.info("Jakarta EE server is shutding down");
+            ScheduledExecutorService delayer = Executors.newScheduledThreadPool(1);
+            delayer.schedule(() -> exit(0), 1, TimeUnit.SECONDS);
+        }
+
         return CompletableFutures.computeAsync(cc -> new Object());
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public void exit() {
         exit(0);
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public void exit(int exitCode) {
         System.exit(exitCode);
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public TextDocumentService getTextDocumentService() {
         return this.textDocumentService;
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public WorkspaceService getWorkspaceService() {
         return this.workspaceService;
@@ -113,27 +187,48 @@ public JakartaLanguageClientAPI getLanguageClient() {
 
     public void setLanguageClient(LanguageClient languageClient) {
         this.languageClient = (JakartaLanguageClientAPI) languageClient;
+        this.capabilityManager = new JakartaCapabilityManager(languageClient);
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public long getParentProcessId() {
         return parentProcessId != null ? parentProcessId : 0;
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public CompletableFuture<ProjectLabelInfoEntry> getJavaProjectLabels(
                                                                          JakartaJavaProjectLabelsParams javaParams) {
         return getLanguageClient().getJavaProjectLabels(javaParams);
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public CompletableFuture<List<ProjectLabelInfoEntry>> getAllJavaProjectLabels() {
         return getLanguageClient().getAllJavaProjectLabels();
     }
 
+    /**
+     * {@inheritDoc}
+     */
     @Override
     public CompletableFuture<JakartaJavaFileInfo> getJavaFileInfo(JakartaJavaFileInfoParams javaParams) {
         return getLanguageClient().getJavaFileInfo(javaParams);
     }
 
+    /**
+     * Returns the object that manages dynamic capabilities.
+     *
+     * @return The object that manages dynamic capabilities.
+     */
+    public JakartaCapabilityManager getCapabilityManager() {
+        return capabilityManager;
+    }
 }
diff --git a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/ls/JakartaTextDocumentService.java b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/ls/JakartaTextDocumentService.java
index 6900c03f..675cabad 100644
--- a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/ls/JakartaTextDocumentService.java
+++ b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/ls/JakartaTextDocumentService.java
@@ -22,6 +22,7 @@
 import java.util.logging.Logger;
 import java.util.stream.Collectors;
 
+import org.eclipse.lsp4j.ClientCapabilities;
 import org.eclipse.lsp4j.CodeAction;
 import org.eclipse.lsp4j.CodeActionParams;
 import org.eclipse.lsp4j.Command;
@@ -35,7 +36,9 @@
 import org.eclipse.lsp4j.DidSaveTextDocumentParams;
 import org.eclipse.lsp4j.Hover;
 import org.eclipse.lsp4j.HoverParams;
+import org.eclipse.lsp4j.MarkupKind;
 import org.eclipse.lsp4j.PublishDiagnosticsParams;
+import org.eclipse.lsp4j.TextDocumentClientCapabilities;
 import org.eclipse.lsp4j.jsonrpc.messages.Either;
 import org.eclipse.lsp4j.services.TextDocumentService;
 import org.eclipse.lsp4jakarta.commons.DocumentFormat;
@@ -48,9 +51,12 @@
 import org.eclipse.lsp4jakarta.ls.commons.BadLocationException;
 import org.eclipse.lsp4jakarta.ls.commons.TextDocument;
 import org.eclipse.lsp4jakarta.ls.commons.ValidatorDelayer;
+import org.eclipse.lsp4jakarta.ls.commons.client.ExtendedClientCapabilities;
 import org.eclipse.lsp4jakarta.ls.java.JakartaTextDocuments;
 import org.eclipse.lsp4jakarta.ls.java.JakartaTextDocuments.JakartaTextDocument;
 import org.eclipse.lsp4jakarta.ls.java.JavaTextDocumentSnippetRegistry;
+import org.eclipse.lsp4jakarta.settings.JakartaTraceSettings;
+import org.eclipse.lsp4jakarta.settings.SharedSettings;
 import org.eclipse.lsp4jakarta.snippets.JavaSnippetCompletionContext;
 import org.eclipse.lsp4jakarta.snippets.SnippetContextForJava;
 
@@ -59,14 +65,16 @@ public class JakartaTextDocumentService implements TextDocumentService {
     private static final Logger LOGGER = Logger.getLogger(JakartaTextDocumentService.class.getName());
 
     private final JakartaLanguageServer jakartaLanguageServer;
+    private final SharedSettings sharedSettings;
 
     // Text document manager that maintains the contexts of the text documents
     private final JakartaTextDocuments documents;
 
     private ValidatorDelayer<JakartaTextDocument> validatorDelayer;
 
-    public JakartaTextDocumentService(JakartaLanguageServer jls, JakartaTextDocuments jakartaTextDocuments) {
+    public JakartaTextDocumentService(JakartaLanguageServer jls, SharedSettings sharedSettings, JakartaTextDocuments jakartaTextDocuments) {
         this.jakartaLanguageServer = jls;
+        this.sharedSettings = sharedSettings;
         this.documents = jakartaTextDocuments;
         this.validatorDelayer = new ValidatorDelayer<>((javaTextDocument) -> {
             triggerValidationFor(javaTextDocument);
@@ -103,7 +111,7 @@ public CompletableFuture<Either<List<CompletionItem>, CompletionList>> completio
 
             final Integer finalizedCompletionOffset = completionOffset;
             boolean canSupportMarkdown = true;
-            boolean snippetsSupported = true;
+            boolean snippetsSupported = sharedSettings.getCompletionCapabilities().isCompletionSnippetsSupported();
 
             cancelChecker.checkCanceled();
 
@@ -149,20 +157,16 @@ public CompletableFuture<Either<List<CompletionItem>, CompletionList>> completio
     @Override
     public CompletableFuture<List<Either<Command, CodeAction>>> codeAction(CodeActionParams params) {
         // Prepare the JakartaJavaCodeActionParams
-        JakartaJavaCodeActionParams jakartaCodeActionParams = new JakartaJavaCodeActionParams();
-        jakartaCodeActionParams.setTextDocument(params.getTextDocument());
-        jakartaCodeActionParams.setRange(params.getRange());
-        jakartaCodeActionParams.setContext(params.getContext());
-
-        // TODO: Retrieve client capabilities, and pass it along in the parameter object:
-        // Investigate:
-        // jakartaCodeActionParams.setResourceOperationSupported(),
-        // jakartaCodeActionParams.setCommandConfigurationUpdateSupported(),
-        // jakartaCodeActionParams.etResolveSupported().
+        JakartaJavaCodeActionParams codeActionParams = new JakartaJavaCodeActionParams();
+        codeActionParams.setTextDocument(params.getTextDocument());
+        codeActionParams.setRange(params.getRange());
+        codeActionParams.setContext(params.getContext());
+        codeActionParams.setResourceOperationSupported(jakartaLanguageServer.getCapabilityManager().getClientCapabilities().isResourceOperationSupported());
+        codeActionParams.setResolveSupported(jakartaLanguageServer.getCapabilityManager().getClientCapabilities().isCodeActionResolveSupported());
 
         // Pass the JakartaJavaCodeActionParams to IDE client, to be forwarded to the
         // JDT LS extension.
-        return jakartaLanguageServer.getLanguageClient().getJavaCodeAction(jakartaCodeActionParams) //
+        return jakartaLanguageServer.getLanguageClient().getJavaCodeAction(codeActionParams) //
                         .thenApply(codeActions -> {
                             // Return the corresponding list of CodeActions, put in an Either and wrap as a
                             // CompletableFuture
@@ -244,10 +248,10 @@ private void triggerValidationFor(List<String> uris) {
 
         JakartaJavaDiagnosticsParams javaParams = new JakartaJavaDiagnosticsParams(uris, new JakartaJavaDiagnosticsSettings(null));
 
-        // TODO: Use settings to see if markdown format is supported, or remove it if not needed.
-        // Leave it hard coded for now.
-        // sharedSettings.getHoverSettings().isContentFormatSupported(MarkupKind.MARKDOWN);
-        javaParams.setDocumentFormat(DocumentFormat.Markdown);
+        boolean markdownSupported = sharedSettings.getHoverSettings().isContentFormatSupported(MarkupKind.MARKDOWN);
+        if (markdownSupported) {
+            javaParams.setDocumentFormat(DocumentFormat.Markdown);
+        }
 
         jakartaLanguageServer.getLanguageClient().getJavaDiagnostics(javaParams).thenApply(diagnostics -> {
             if (diagnostics == null) {
@@ -266,4 +270,29 @@ protected void cleanDiagnostics() {
             jakartaLanguageServer.getLanguageClient().publishDiagnostics(new PublishDiagnosticsParams(doc.getUri(), new ArrayList<Diagnostic>()));
         });
     }
+
+    /**
+     * Update shared settings from the client capabilities.
+     *
+     * @param capabilities the client capabilities
+     * @param extendedClientCapabilities the extended client capabilities
+     */
+    public void updateClientCapabilities(ClientCapabilities capabilities,
+                                         ExtendedClientCapabilities extendedClientCapabilities) {
+        TextDocumentClientCapabilities textDocumentClientCapabilities = capabilities.getTextDocument();
+        if (textDocumentClientCapabilities != null) {
+            sharedSettings.getCompletionCapabilities().setCapabilities(textDocumentClientCapabilities.getCompletion());
+            sharedSettings.getHoverSettings().setCapabilities(textDocumentClientCapabilities.getHover());
+        }
+    }
+
+    /**
+     * Updates the trace settings defined by the client flowing requests between the LS and JDT extensions.
+     *
+     * @param newTrace The new trace setting.
+     */
+    public void updateTraceSettings(JakartaTraceSettings newTrace) {
+        JakartaTraceSettings trace = sharedSettings.getTraceSettings();
+        trace.update(newTrace);
+    }
 }
diff --git a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/ls/commons/client/ExtendedClientCapabilities.java b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/ls/commons/client/ExtendedClientCapabilities.java
new file mode 100644
index 00000000..f6efcf67
--- /dev/null
+++ b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/ls/commons/client/ExtendedClientCapabilities.java
@@ -0,0 +1,46 @@
+/*******************************************************************************
+* Copyright (c) 2019 Red Hat Inc. and others.
+*
+* This program and the accompanying materials are made available under the
+* terms of the Eclipse Public License v. 2.0 which is available at
+* http://www.eclipse.org/legal/epl-2.0, or the Apache License, Version 2.0
+* which is available at https://www.apache.org/licenses/LICENSE-2.0.
+*
+* SPDX-License-Identifier: EPL-2.0 OR Apache-2.0
+*
+* Contributors:
+*     Red Hat Inc. - initial API and implementation
+*******************************************************************************/
+package org.eclipse.lsp4jakarta.ls.commons.client;
+
+/**
+ * Extended client capabilities not defined by the LSP.
+ *
+ * Based on: https://github.com/eclipse/lsp4mp/blob/0.9.0/microprofile.ls/org.eclipse.lsp4mp.ls/src/main/java/org/eclipse/lsp4mp/ls/commons/client/ExtendedClientCapabilities.java
+ *
+ * @author Angelo ZERR
+ */
+public class ExtendedClientCapabilities {
+
+    private boolean shouldLanguageServerExitOnShutdown;
+
+    /**
+     * Sets the boolean permitting language server to exit on client
+     * shutdown() request, without waiting for client to call exit()
+     *
+     * @param shouldLanguageServerExitOnShutdown
+     */
+    public void setShouldLanguageServerExitOnShutdown(boolean shouldLanguageServerExitOnShutdown) {
+        this.shouldLanguageServerExitOnShutdown = shouldLanguageServerExitOnShutdown;
+    }
+
+    /**
+     * Returns true if the client should exit on shutdown() request and
+     * avoid waiting for an exit() request
+     *
+     * @return true if the language server should exit on shutdown() request
+     */
+    public boolean shouldLanguageServerExitOnShutdown() {
+        return shouldLanguageServerExitOnShutdown;
+    }
+}
\ No newline at end of file
diff --git a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/ls/commons/client/InitializationOptionsExtendedClientCapabilities.java b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/ls/commons/client/InitializationOptionsExtendedClientCapabilities.java
new file mode 100644
index 00000000..b71db403
--- /dev/null
+++ b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/ls/commons/client/InitializationOptionsExtendedClientCapabilities.java
@@ -0,0 +1,64 @@
+/*******************************************************************************
+* Copyright (c) 2019 Red Hat Inc. and others.
+*
+* This program and the accompanying materials are made available under the
+* terms of the Eclipse Public License v. 2.0 which is available at
+* http://www.eclipse.org/legal/epl-2.0, or the Apache License, Version 2.0
+* which is available at https://www.apache.org/licenses/LICENSE-2.0.
+*
+* SPDX-License-Identifier: EPL-2.0 OR Apache-2.0
+*
+* Contributors:
+*     Red Hat Inc. - initial API and implementation
+*******************************************************************************/
+package org.eclipse.lsp4jakarta.ls.commons.client;
+
+import org.eclipse.lsp4j.InitializeParams;
+import org.eclipse.lsp4jakarta.commons.utils.JSONUtility;
+
+/**
+ * Represents all extended client capabilities sent from the server
+ *
+ * <pre>
+ * "extendedClientCapabilities": {
+ *      ...
+ *      }
+ *  }
+ * </pre>
+ */
+public class InitializationOptionsExtendedClientCapabilities {
+
+    private ExtendedClientCapabilities extendedClientCapabilities;
+
+    public ExtendedClientCapabilities getExtendedClientCapabilities() {
+        return extendedClientCapabilities;
+    }
+
+    public void setExtendedClientCapabilities(ExtendedClientCapabilities extendedClientCapabilities) {
+        this.extendedClientCapabilities = extendedClientCapabilities;
+    }
+
+    /**
+     * Returns the "settings" section of
+     * {@link InitializeParams#getInitializationOptions()}.
+     *
+     * Here a sample of initializationOptions
+     *
+     * <pre>
+     * "extendedClientCapabilities": {
+     *      ...
+     *      }
+     *  }
+     * </pre>
+     *
+     * @param initializeParams
+     * @return the "extendedClientCapabilities" section of
+     *         {@link InitializeParams#getInitializationOptions()}.
+     */
+    public static ExtendedClientCapabilities getExtendedClientCapabilities(InitializeParams initializeParams) {
+        InitializationOptionsExtendedClientCapabilities root = JSONUtility.toModel(
+                                                                                   initializeParams.getInitializationOptions(),
+                                                                                   InitializationOptionsExtendedClientCapabilities.class);
+        return root != null ? root.getExtendedClientCapabilities() : null;
+    }
+}
diff --git a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/AllJakartaSettings.java b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/AllJakartaSettings.java
new file mode 100644
index 00000000..60c3c007
--- /dev/null
+++ b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/AllJakartaSettings.java
@@ -0,0 +1,74 @@
+/*******************************************************************************
+* Copyright (c) 2019 Red Hat Inc. and others.
+*
+* This program and the accompanying materials are made available under the
+* terms of the Eclipse Public License v. 2.0 which is available at
+* http://www.eclipse.org/legal/epl-2.0, or the Apache License, Version 2.0
+* which is available at https://www.apache.org/licenses/LICENSE-2.0.
+*
+* SPDX-License-Identifier: EPL-2.0 OR Apache-2.0
+*
+* Contributors:
+*     Red Hat Inc. - initial API and implementation
+*******************************************************************************/
+package org.eclipse.lsp4jakarta.settings;
+
+import org.eclipse.lsp4j.jsonrpc.json.adapters.JsonElementTypeAdapter;
+import org.eclipse.lsp4jakarta.commons.utils.JSONUtility;
+
+import com.google.gson.annotations.JsonAdapter;
+
+/**
+ * Represents all settings under the 'jakarta' key
+ *
+ * { 'jakarta': {...} }
+ */
+public class AllJakartaSettings {
+
+    private static class ToolsSettings {
+
+        @JsonAdapter(JsonElementTypeAdapter.Factory.class)
+        private Object tools;
+
+        public Object getTools() {
+            return tools;
+        }
+
+    }
+
+    @JsonAdapter(JsonElementTypeAdapter.Factory.class)
+    private Object jakarta;
+
+    /**
+     * @return the jakarta capabilities
+     */
+    public Object getJakarta() {
+        return jakarta;
+    }
+
+    /**
+     * Sets the client specified Jakarta capabilities.
+     *
+     * @param jakarta The client specified Jakarta capabilities
+     */
+    public void setJakarta(Object jakarta) {
+        this.jakarta = jakarta;
+    }
+
+    /**
+     * Returns the client specific tool settings under root->settings->jakarta->tools
+     *
+     * @param initializationOptionsSettings The client specific settings.
+     *
+     * @return The client specific tool settings under root->settings->jakarta->tools
+     */
+    public static Object getJakartaToolsSettings(Object initializationOptionsSettings) {
+        AllJakartaSettings rootSettings = JSONUtility.toModel(initializationOptionsSettings,
+                                                              AllJakartaSettings.class);
+        if (rootSettings == null) {
+            return null;
+        }
+        ToolsSettings jakartaSettings = JSONUtility.toModel(rootSettings.getJakarta(), ToolsSettings.class);
+        return jakartaSettings != null ? jakartaSettings.getTools() : null;
+    }
+}
\ No newline at end of file
diff --git a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/InitializationOptionsSettings.java b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/InitializationOptionsSettings.java
new file mode 100644
index 00000000..3d72d47b
--- /dev/null
+++ b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/InitializationOptionsSettings.java
@@ -0,0 +1,70 @@
+/*******************************************************************************
+* Copyright (c) 2019 Red Hat Inc. and others.
+*
+* This program and the accompanying materials are made available under the
+* terms of the Eclipse Public License v. 2.0 which is available at
+* http://www.eclipse.org/legal/epl-2.0, or the Apache License, Version 2.0
+* which is available at https://www.apache.org/licenses/LICENSE-2.0.
+*
+* SPDX-License-Identifier: EPL-2.0 OR Apache-2.0
+*
+* Contributors:
+*     Red Hat Inc. - initial API and implementation
+*******************************************************************************/
+package org.eclipse.lsp4jakarta.settings;
+
+import org.eclipse.lsp4j.InitializeParams;
+import org.eclipse.lsp4j.jsonrpc.json.adapters.JsonElementTypeAdapter;
+import org.eclipse.lsp4jakarta.commons.utils.JSONUtility;
+
+import com.google.gson.annotations.JsonAdapter;
+
+/**
+ * Represents all settings sent from the client
+ *
+ * { 'settings': { 'jakarta': {...}, 'http': {...} } }
+ */
+public class InitializationOptionsSettings {
+
+    @JsonAdapter(JsonElementTypeAdapter.Factory.class)
+    private Object settings;
+
+    public Object getSettings() {
+        return settings;
+    }
+
+    public void setSettings(Object settings) {
+        this.settings = settings;
+    }
+
+    /**
+     * Returns the "settings" section of
+     * {@link InitializeParams#getInitializationOptions()}.
+     *
+     * Here a sample of initializationOptions
+     *
+     * <pre>
+     * "initializationOptions": {
+    		"settings": {
+    			"jakarta": {
+    				"tools": {
+    					"trace": {
+    					    "server: "verbose"
+    					}
+    				},
+    				...
+    			}
+    		}
+    	}
+     * </pre>
+     *
+     * @param initializeParams
+     * @return the "settings" section of
+     *         {@link InitializeParams#getInitializationOptions()}.
+     */
+    public static Object getSettings(InitializeParams initializeParams) {
+        InitializationOptionsSettings root = JSONUtility.toModel(initializeParams.getInitializationOptions(),
+                                                                 InitializationOptionsSettings.class);
+        return root != null ? root.getSettings() : null;
+    }
+}
diff --git a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/JakartaGeneralClientSettings.java b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/JakartaGeneralClientSettings.java
new file mode 100644
index 00000000..b9126065
--- /dev/null
+++ b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/JakartaGeneralClientSettings.java
@@ -0,0 +1,65 @@
+/*******************************************************************************
+* Copyright (c) 2019 Red Hat Inc. and others.
+*
+* This program and the accompanying materials are made available under the
+* terms of the Eclipse Public License v. 2.0 which is available at
+* http://www.eclipse.org/legal/epl-2.0, or the Apache License, Version 2.0
+* which is available at https://www.apache.org/licenses/LICENSE-2.0.
+*
+* SPDX-License-Identifier: EPL-2.0 OR Apache-2.0
+*
+* Contributors:
+*     Red Hat Inc. - initial API and implementation
+*******************************************************************************/
+package org.eclipse.lsp4jakarta.settings;
+
+import org.eclipse.lsp4jakarta.commons.utils.JSONUtility;
+
+/**
+ * Class to hold all settings from the client side.
+ *
+ *
+ * This class is created through the deserialization of a JSON object. Each
+ * internal setting must be represented by a class and have:
+ *
+ * 1) A constructor with no parameters
+ *
+ * 2) The JSON key/parent for the settings must have the same name as a
+ * variable.
+ *
+ * eg: {"trace" : {...}}
+ *
+ * Based on: https://github.com/eclipse/lsp4mp/blob/0.9.0/microprofile.ls/org.eclipse.lsp4mp.ls/src/main/java/org/eclipse/lsp4mp/settings/MicroProfileGeneralClientSettings.java
+ */
+public class JakartaGeneralClientSettings {
+
+    private JakartaTraceSettings trace;
+
+    /**
+     * Returns the trace settings.
+     *
+     * @return the trace settings.
+     */
+    public JakartaTraceSettings getTrace() {
+        return trace;
+    }
+
+    /**
+     * Set the validation settings.
+     *
+     * @param trace the trace settings.
+     */
+    public void setTrace(JakartaTraceSettings trace) {
+        this.trace = trace;
+    }
+
+    /**
+     * Returns the general settings from the given initialization options
+     *
+     * @param initializationOptionsSettings the initialization options
+     * @return the general settings from the given initialization options
+     */
+    public static JakartaGeneralClientSettings getGeneralJakartaSettings(Object initializationOptionsSettings) {
+        return JSONUtility.toModel(initializationOptionsSettings, JakartaGeneralClientSettings.class);
+    }
+}
\ No newline at end of file
diff --git a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/JakartaHoverSettings.java b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/JakartaHoverSettings.java
new file mode 100644
index 00000000..af3886ab
--- /dev/null
+++ b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/JakartaHoverSettings.java
@@ -0,0 +1,45 @@
+/*******************************************************************************
+* Copyright (c) 2019 Red Hat Inc. and others.
+*
+* This program and the accompanying materials are made available under the
+* terms of the Eclipse Public License v. 2.0 which is available at
+* http://www.eclipse.org/legal/epl-2.0, or the Apache License, Version 2.0
+* which is available at https://www.apache.org/licenses/LICENSE-2.0.
+*
+* SPDX-License-Identifier: EPL-2.0 OR Apache-2.0
+*
+* Contributors:
+*     Red Hat Inc. - initial API and implementation
+*******************************************************************************/
+package org.eclipse.lsp4jakarta.settings;
+
+import org.eclipse.lsp4j.HoverCapabilities;
+
+/**
+ * A wrapper around LSP {@link HoverCapabilities}.
+ *
+ */
+public class JakartaHoverSettings {
+
+    private HoverCapabilities capabilities;
+
+    public void setCapabilities(HoverCapabilities capabilities) {
+        this.capabilities = capabilities;
+    }
+
+    public HoverCapabilities getCapabilities() {
+        return capabilities;
+    }
+
+    /**
+     * Returns <code>true</code> if the client support the given documentation
+     * format and <code>false</code> otherwise.
+     *
+     * @return <code>true</code> if the client support the given documentation
+     *         format and <code>false</code> otherwise.
+     */
+    public boolean isContentFormatSupported(String documentationFormat) {
+        return capabilities.getContentFormat() != null && capabilities.getContentFormat().contains(documentationFormat);
+    }
+
+}
diff --git a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/JakartaTraceSettings.java b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/JakartaTraceSettings.java
new file mode 100644
index 00000000..540eea99
--- /dev/null
+++ b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/JakartaTraceSettings.java
@@ -0,0 +1,65 @@
+/*******************************************************************************
+* Copyright (c) 2023 IBM Corporation and others.
+*
+* This program and the accompanying materials are made available under the
+* terms of the Eclipse Public License v. 2.0 which is available at
+* http://www.eclipse.org/legal/epl-2.0, or the Apache License, Version 2.0
+* which is available at https://www.apache.org/licenses/LICENSE-2.0.
+*
+* SPDX-License-Identifier: EPL-2.0 OR Apache-2.0
+*
+* Contributors:
+*     IBM Corporation - initial API and implementation
+*******************************************************************************/
+package org.eclipse.lsp4jakarta.settings;
+
+/**
+ * Jakarta trace settings.
+ */
+public class JakartaTraceSettings {
+
+    /** trace setting options. */
+    private static enum Setting {
+        info, verbose;
+    }
+
+    /** Holds the server trace setting. */
+    private String server;
+
+    /**
+     * Constructor.
+     */
+    public JakartaTraceSettings() {
+        setServer(Setting.info.name());
+    }
+
+    /**
+     * Returns the trace setting for the server.
+     *
+     * @return The trace setting for the server.
+     */
+    public String getServer() {
+        return server;
+    }
+
+    /**
+     * Sets the trace setting for the server.
+     *
+     * @param setting The trace setting for the server.
+     */
+    public void setServer(String setting) {
+        if (Setting.info.name().equals(setting) ||
+            Setting.verbose.name().equals(setting)) {
+            this.server = setting;
+        }
+    }
+
+    /**
+     * Update the trace settings with the given new trace settings.
+     *
+     * @param newTrace the new trace settings.
+     */
+    public void update(JakartaTraceSettings newTrace) {
+        this.setServer(newTrace.getServer());
+    }
+}
\ No newline at end of file
diff --git a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/SharedSettings.java b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/SharedSettings.java
new file mode 100644
index 00000000..f705919a
--- /dev/null
+++ b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/SharedSettings.java
@@ -0,0 +1,61 @@
+/*******************************************************************************
+* Copyright (c) 2019 Red Hat Inc. and others.
+*
+* This program and the accompanying materials are made available under the
+* terms of the Eclipse Public License v. 2.0 which is available at
+* http://www.eclipse.org/legal/epl-2.0, or the Apache License, Version 2.0
+* which is available at https://www.apache.org/licenses/LICENSE-2.0.
+*
+* SPDX-License-Identifier: EPL-2.0 OR Apache-2.0
+*
+* Contributors:
+*     Red Hat Inc. - initial API and implementation
+*******************************************************************************/
+package org.eclipse.lsp4jakarta.settings;
+
+/**
+ * Shared settings.
+ *
+ * Based on: https://github.com/eclipse/lsp4mp/blob/0.9.0/microprofile.ls/org.eclipse.lsp4mp.ls/src/main/java/org/eclipse/lsp4mp/settings/SharedSettings.java
+ *
+ * @author Angelo ZERR
+ */
+public class SharedSettings {
+
+    private final JakartaCompletionCapabilities completionCapabilities;
+    private final JakartaHoverSettings hoverSettings;
+    private final JakartaTraceSettings traceSettings;
+
+    public SharedSettings() {
+        this.completionCapabilities = new JakartaCompletionCapabilities();
+        this.hoverSettings = new JakartaHoverSettings();
+        this.traceSettings = new JakartaTraceSettings();
+    }
+
+    /**
+     * Returns the completion capabilities.
+     *
+     * @return the completion capabilities.
+     */
+    public JakartaCompletionCapabilities getCompletionCapabilities() {
+        return completionCapabilities;
+    }
+
+    /**
+     * Returns the hover settings.
+     *
+     * @return the hover settings.
+     */
+    public JakartaHoverSettings getHoverSettings() {
+        return hoverSettings;
+    }
+
+    /**
+     * Returns the trace settings.
+     *
+     * @return the trace settings.
+     */
+    public JakartaTraceSettings getTraceSettings() {
+        return traceSettings;
+    }
+}
diff --git a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/capabilities/ClientCapabilitiesWrapper.java b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/capabilities/ClientCapabilitiesWrapper.java
new file mode 100644
index 00000000..25e167f7
--- /dev/null
+++ b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/capabilities/ClientCapabilitiesWrapper.java
@@ -0,0 +1,119 @@
+/*******************************************************************************
+* Copyright (c) 2019 Red Hat Inc. and others.
+*
+* This program and the accompanying materials are made available under the
+* terms of the Eclipse Public License v. 2.0 which is available at
+* http://www.eclipse.org/legal/epl-2.0, or the Apache License, Version 2.0
+* which is available at https://www.apache.org/licenses/LICENSE-2.0.
+*
+* SPDX-License-Identifier: EPL-2.0 OR Apache-2.0
+*
+* Contributors:
+*     Red Hat Inc. - initial API and implementation
+*******************************************************************************/
+package org.eclipse.lsp4jakarta.settings.capabilities;
+
+import org.eclipse.lsp4j.ClientCapabilities;
+import org.eclipse.lsp4j.DynamicRegistrationCapabilities;
+import org.eclipse.lsp4j.ResourceOperationKind;
+import org.eclipse.lsp4j.TextDocumentClientCapabilities;
+import org.eclipse.lsp4j.WorkspaceClientCapabilities;
+import org.eclipse.lsp4jakarta.ls.commons.client.ExtendedClientCapabilities;
+
+/**
+ * Determines if a client supports a specific capability dynamically.
+ *
+ * Based on:
+ * https://github.com/eclipse/lsp4mp/blob/0.9.0/microprofile.ls/org.eclipse.lsp4mp.ls/src/main/java/org/eclipse/lsp4mp/settings/capabilities/ClientCapabilitiesWrapper.java
+ */
+public class ClientCapabilitiesWrapper {
+
+    private boolean v3Supported;
+
+    private ClientCapabilities capabilities;
+
+    private final ExtendedClientCapabilities extendedCapabilities;
+
+    public ClientCapabilitiesWrapper() {
+        this(new ClientCapabilities(), null);
+    }
+
+    public ClientCapabilitiesWrapper(ClientCapabilities capabilities, ExtendedClientCapabilities extendedCapabilities) {
+        this.capabilities = capabilities;
+        this.v3Supported = capabilities != null ? capabilities.getTextDocument() != null : false;
+        this.extendedCapabilities = extendedCapabilities;
+    }
+
+    /**
+     * IMPORTANT
+     *
+     * This should be up to date with all Server supported capabilities
+     *
+     */
+
+    public boolean isCodeActionDynamicRegistered() {
+        return v3Supported && isDynamicRegistrationSupported(getTextDocument().getCodeAction());
+    }
+
+    public boolean isCompletionDynamicRegistrationSupported() {
+        return v3Supported && isDynamicRegistrationSupported(getTextDocument().getCompletion());
+    }
+
+    private boolean isDynamicRegistrationSupported(DynamicRegistrationCapabilities capability) {
+        return capability != null && capability.getDynamicRegistration() != null
+               && capability.getDynamicRegistration().booleanValue();
+    }
+
+    public TextDocumentClientCapabilities getTextDocument() {
+        return this.capabilities.getTextDocument();
+    }
+
+    public WorkspaceClientCapabilities getWorkspace() {
+        return this.capabilities.getWorkspace();
+    }
+
+    /**
+     * Returns true if the client should exit on shutdown() request and avoid
+     * waiting for an exit() request
+     *
+     * @return true if the language server should exit on shutdown() request
+     */
+    public boolean shouldLanguageServerExitOnShutdown() {
+        if (extendedCapabilities == null) {
+            return false;
+        }
+        return extendedCapabilities.shouldLanguageServerExitOnShutdown();
+    }
+
+    public boolean isResourceOperationSupported() {
+        return capabilities.getWorkspace() != null && capabilities.getWorkspace().getWorkspaceEdit() != null
+               && capabilities.getWorkspace().getWorkspaceEdit().getResourceOperations() != null
+               && capabilities.getWorkspace().getWorkspaceEdit().getResourceOperations().contains(ResourceOperationKind.Create)
+               && capabilities.getWorkspace().getWorkspaceEdit().getResourceOperations().contains(ResourceOperationKind.Rename)
+               && capabilities.getWorkspace().getWorkspaceEdit().getResourceOperations().contains(ResourceOperationKind.Delete);
+    }
+
+    public boolean isInlayHintDynamicRegistered() {
+        return v3Supported && isDynamicRegistrationSupported(getTextDocument().getInlayHint());
+    }
+
+    /**
+     * Returns true if the client supports both code action data and resolving
+     * workspace edits for code actions, and false otherwise.
+     *
+     * Both of these feature must be present in order to implement code action
+     * resolve effectively.
+     *
+     * @return true if the client supports both code action data and resolving
+     *         workspace edits for code actions, and false otherwise
+     */
+    public boolean isCodeActionResolveSupported() {
+        return capabilities.getTextDocument() != null && capabilities.getTextDocument().getCodeAction() != null
+               && capabilities.getTextDocument().getCodeAction().getDataSupport() != null
+               && capabilities.getTextDocument().getCodeAction().getDataSupport().booleanValue()
+               && capabilities.getTextDocument().getCodeAction().getResolveSupport() != null
+               && capabilities.getTextDocument().getCodeAction().getResolveSupport().getProperties() != null
+               && capabilities.getTextDocument().getCodeAction().getResolveSupport().getProperties().contains("edit");
+    }
+
+}
\ No newline at end of file
diff --git a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/capabilities/JakartaCapabilityManager.java b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/capabilities/JakartaCapabilityManager.java
new file mode 100644
index 00000000..d89bfb56
--- /dev/null
+++ b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/capabilities/JakartaCapabilityManager.java
@@ -0,0 +1,85 @@
+/*******************************************************************************
+* Copyright (c) 2019-2020 Red Hat Inc. and others.
+*
+* This program and the accompanying materials are made available under the
+* terms of the Eclipse Public License v. 2.0 which is available at
+* http://www.eclipse.org/legal/epl-2.0, or the Apache License, Version 2.0
+* which is available at https://www.apache.org/licenses/LICENSE-2.0.
+*
+* SPDX-License-Identifier: EPL-2.0 OR Apache-2.0
+*
+* Contributors:
+*     Red Hat Inc. - initial API and implementation
+*******************************************************************************/
+package org.eclipse.lsp4jakarta.settings.capabilities;
+
+import static org.eclipse.lsp4jakarta.settings.capabilities.ServerCapabilitiesConstants.CODE_ACTION_ID;
+import static org.eclipse.lsp4jakarta.settings.capabilities.ServerCapabilitiesConstants.COMPLETION_ID;
+import static org.eclipse.lsp4jakarta.settings.capabilities.ServerCapabilitiesConstants.DEFAULT_CODEACTION_OPTIONS;
+import static org.eclipse.lsp4jakarta.settings.capabilities.ServerCapabilitiesConstants.DEFAULT_COMPLETION_OPTIONS;
+import static org.eclipse.lsp4jakarta.settings.capabilities.ServerCapabilitiesConstants.TEXT_DOCUMENT_CODE_ACTION;
+import static org.eclipse.lsp4jakarta.settings.capabilities.ServerCapabilitiesConstants.TEXT_DOCUMENT_COMPLETION;
+
+import java.util.Collections;
+import java.util.HashSet;
+import java.util.Set;
+
+import org.eclipse.lsp4j.ClientCapabilities;
+import org.eclipse.lsp4j.Registration;
+import org.eclipse.lsp4j.RegistrationParams;
+import org.eclipse.lsp4j.services.LanguageClient;
+import org.eclipse.lsp4jakarta.ls.commons.client.ExtendedClientCapabilities;
+
+/**
+ * Manages dynamic capabilities
+ *
+ * Based on:
+ * https://github.com/eclipse/lsp4mp/blob/0.9.0/microprofile.ls/org.eclipse.lsp4mp.ls/src/main/java/org/eclipse/lsp4mp/settings/capabilities/MicroProfileCapabilityManager.java
+ */
+public class JakartaCapabilityManager {
+
+    private final Set<String> registeredCapabilities = new HashSet<>(3);
+    private final LanguageClient languageClient;
+
+    private ClientCapabilitiesWrapper clientWrapper;
+
+    public JakartaCapabilityManager(LanguageClient languageClient) {
+        this.languageClient = languageClient;
+    }
+
+    /**
+     * Registers all dynamic capabilities.
+     */
+    public void initializeCapabilities() {
+        if (this.getClientCapabilities().isCodeActionDynamicRegistered()) {
+            registerCapability(CODE_ACTION_ID, TEXT_DOCUMENT_CODE_ACTION, DEFAULT_CODEACTION_OPTIONS);
+        }
+        if (this.getClientCapabilities().isCompletionDynamicRegistrationSupported()) {
+            registerCapability(COMPLETION_ID, TEXT_DOCUMENT_COMPLETION, DEFAULT_COMPLETION_OPTIONS);
+        }
+    }
+
+    public void setClientCapabilities(ClientCapabilities clientCapabilities,
+                                      ExtendedClientCapabilities extendedClientCapabilities) {
+        this.clientWrapper = new ClientCapabilitiesWrapper(clientCapabilities, extendedClientCapabilities);
+    }
+
+    public ClientCapabilitiesWrapper getClientCapabilities() {
+        if (this.clientWrapper == null) {
+            this.clientWrapper = new ClientCapabilitiesWrapper();
+        }
+        return this.clientWrapper;
+    }
+
+    public Set<String> getRegisteredCapabilities() {
+        return registeredCapabilities;
+    }
+
+    private void registerCapability(String id, String method, Object options) {
+        if (registeredCapabilities.add(id)) {
+            Registration registration = new Registration(id, method, options);
+            RegistrationParams registrationParams = new RegistrationParams(Collections.singletonList(registration));
+            languageClient.registerCapability(registrationParams);
+        }
+    }
+}
\ No newline at end of file
diff --git a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/capabilities/ServerCapabilitiesConstants.java b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/capabilities/ServerCapabilitiesConstants.java
new file mode 100644
index 00000000..0428be02
--- /dev/null
+++ b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/capabilities/ServerCapabilitiesConstants.java
@@ -0,0 +1,51 @@
+/*******************************************************************************
+* Copyright (c) 2018 Red Hat Inc. and others.
+*
+* This program and the accompanying materials are made available under the
+* terms of the Eclipse Public License v. 2.0 which is available at
+* http://www.eclipse.org/legal/epl-2.0, or the Apache License, Version 2.0
+* which is available at https://www.apache.org/licenses/LICENSE-2.0.
+*
+* SPDX-License-Identifier: EPL-2.0 OR Apache-2.0
+*
+* Contributors:
+*     Red Hat Inc. - initial API and implementation
+*******************************************************************************/
+package org.eclipse.lsp4jakarta.settings.capabilities;
+
+import java.util.Arrays;
+import java.util.UUID;
+
+import org.eclipse.lsp4j.CodeActionOptions;
+import org.eclipse.lsp4j.CompletionOptions;
+
+/**
+ * Server Capabilities Constants
+ *
+ * Based on:
+ * https://github.com/eclipse/lsp4mp/blob/0.9.0/microprofile.ls/org.eclipse.lsp4mp.ls/src/main/java/org/eclipse/lsp4mp/settings/capabilities/ServerCapabilitiesConstants.java
+ */
+public class ServerCapabilitiesConstants {
+
+    private ServerCapabilitiesConstants() {}
+
+    public static final String TEXT_DOCUMENT_COMPLETION = "textDocument/completion";
+    public static final String TEXT_DOCUMENT_CODE_ACTION = "textDocument/codeAction";
+
+    public static final String COMPLETION_ID = UUID.randomUUID().toString();
+    public static final String CODE_ACTION_ID = UUID.randomUUID().toString();
+
+    public static final CompletionOptions DEFAULT_COMPLETION_OPTIONS = new CompletionOptions(true, Arrays.asList("@" /* triggered characters for java snippet annotations */,
+                                                                                                                 "\"" /*
+                                                                                                                       * trigger characters for annotation property value completion
+                                                                                                                       */));
+
+    public static final CodeActionOptions DEFAULT_CODEACTION_OPTIONS = createDefaultCodeActionOptions();
+
+    private static CodeActionOptions createDefaultCodeActionOptions() {
+        CodeActionOptions options = new CodeActionOptions();
+        options.setResolveProvider(Boolean.TRUE);
+        return options;
+    }
+
+}
\ No newline at end of file
diff --git a/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/capabilities/ServerCapabilitiesInitializer.java b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/capabilities/ServerCapabilitiesInitializer.java
new file mode 100644
index 00000000..fe4eebf2
--- /dev/null
+++ b/jakarta.ls/src/main/java/org/eclipse/lsp4jakarta/settings/capabilities/ServerCapabilitiesInitializer.java
@@ -0,0 +1,52 @@
+/*******************************************************************************
+* Copyright (c) 2018 Red Hat Inc. and others.
+*
+* This program and the accompanying materials are made available under the
+* terms of the Eclipse Public License v. 2.0 which is available at
+* http://www.eclipse.org/legal/epl-2.0, or the Apache License, Version 2.0
+* which is available at https://www.apache.org/licenses/LICENSE-2.0.
+*
+* SPDX-License-Identifier: EPL-2.0 OR Apache-2.0
+*
+* Contributors:
+*     Red Hat Inc. - initial API and implementation
+*******************************************************************************/
+package org.eclipse.lsp4jakarta.settings.capabilities;
+
+import static org.eclipse.lsp4jakarta.settings.capabilities.ServerCapabilitiesConstants.DEFAULT_CODEACTION_OPTIONS;
+import static org.eclipse.lsp4jakarta.settings.capabilities.ServerCapabilitiesConstants.DEFAULT_COMPLETION_OPTIONS;
+
+import org.eclipse.lsp4j.ServerCapabilities;
+import org.eclipse.lsp4j.TextDocumentSyncKind;
+
+/**
+ * All default capabilities of this server
+ *
+ * Based on:
+ * https://github.com/eclipse/lsp4mp/blob/0.9.0/microprofile.ls/org.eclipse.lsp4mp.ls/src/main/java/org/eclipse/lsp4mp/settings/capabilities/ServerCapabilitiesInitializer.java
+ */
+public class ServerCapabilitiesInitializer {
+
+    private ServerCapabilitiesInitializer() {}
+
+    /**
+     * Returns all server capabilities (with default values) that aren't dynamic.
+     *
+     * A service's dynamic capability is indicated by the client.
+     *
+     * @param clientCapabilities
+     * @return ServerCapabilities object
+     */
+    public static ServerCapabilities getNonDynamicServerCapabilities(ClientCapabilitiesWrapper clientCapabilities) {
+        ServerCapabilities serverCapabilities = new ServerCapabilities();
+        serverCapabilities.setTextDocumentSync(TextDocumentSyncKind.Incremental);
+        if (!clientCapabilities.isCompletionDynamicRegistrationSupported()) {
+            serverCapabilities.setCompletionProvider(DEFAULT_COMPLETION_OPTIONS);
+        }
+        if (!clientCapabilities.isCodeActionDynamicRegistered()) {
+            serverCapabilities.setCodeActionProvider(DEFAULT_CODEACTION_OPTIONS);
+        }
+
+        return serverCapabilities;
+    }
+}
\ No newline at end of file