diff --git a/vscode/npm-package/install.ts b/vscode/npm-package/install.ts
index e6978a5856..8f1ccbeeb6 100644
--- a/vscode/npm-package/install.ts
+++ b/vscode/npm-package/install.ts
@@ -145,11 +145,15 @@ async function doesFileHashMatch(destinationPath: string, hashValue: string): Pr
   });
 }
 
-function downloadFileFromUrl(url: string, destinationPath: string): Promise<void> {
-  return new Promise((resolve) => {
+function downloadFileFromUrl(url: string, destinationPath: string, remainingRedirects: number = 3): Promise<void> {
+  return new Promise((resolve, reject) => {
     https.get(url, (response: any) => {
       if (response.statusCode && response.statusCode >= 300 && response.statusCode < 400 && response.headers.location) {
-        resolve(downloadFileFromUrl(response.headers.location, destinationPath));
+        if (remainingRedirects <= 0) {
+          reject(new Error(`Too many redirects. Maximum number of redirects exceeded.`));
+          return;
+        }
+        resolve(downloadFileFromUrl(response.headers.location, destinationPath, remainingRedirects - 1));
       } else {
         const filePath = fs.createWriteStream(destinationPath);
         response.pipe(filePath);
@@ -157,7 +161,12 @@ function downloadFileFromUrl(url: string, destinationPath: string): Promise<void
           filePath.close();
           resolve(undefined);
         });
+        filePath.on('error', (error: Error) => {
+          reject(error);
+        });
       }
+    }).on('error', (error: Error) => {
+      reject(error);
     });
   });
 }
diff --git a/vscode/npm-package/jest.config.unit.isolated.cjs b/vscode/npm-package/jest.config.unit.isolated.cjs
new file mode 100644
index 0000000000..3742ef01b9
--- /dev/null
+++ b/vscode/npm-package/jest.config.unit.isolated.cjs
@@ -0,0 +1,12 @@
+const common = require('./jest.common.config.cjs')
+
+/** @returns {Promise<import('jest').Config>} */
+module.exports = {
+  ...common,
+  // Remove global setup/teardown for unit tests
+  globalSetup: undefined,
+  globalTeardown: undefined,
+  testMatch: [
+    '**/tests/unit/?(*.)+(spec).ts?(x)'
+  ]
+};
\ No newline at end of file
diff --git a/vscode/npm-package/tests/unit/install.spec.ts b/vscode/npm-package/tests/unit/install.spec.ts
new file mode 100644
index 0000000000..00bf0177bd
--- /dev/null
+++ b/vscode/npm-package/tests/unit/install.spec.ts
@@ -0,0 +1,193 @@
+import * as https from 'https';
+import * as fs from 'fs';
+import { EventEmitter } from 'events';
+
+// Need to mock these modules before importing the install module
+jest.mock('https');
+jest.mock('fs');
+
+// Import after mocking
+import { ensureKiotaIsPresentInPath, getCurrentPlatform, Package } from '../../install';
+
+const mockHttps = https as jest.Mocked<typeof https>;
+const mockFs = fs as jest.Mocked<typeof fs>;
+
+describe('install', () => {
+  beforeEach(() => {
+    jest.clearAllMocks();
+  });
+
+  describe('downloadFileFromUrl redirect handling', () => {
+    test('should handle successful download without redirects', async () => {
+      // Mock file operations
+      mockFs.existsSync.mockReturnValue(false);
+      mockFs.readdirSync.mockReturnValue([]);
+      mockFs.mkdirSync.mockImplementation();
+      mockFs.createWriteStream.mockReturnValue({
+        on: jest.fn((event: string, callback: Function) => {
+          if (event === 'finish') {
+            setTimeout(callback, 0);
+          }
+        }),
+        close: jest.fn(),
+        pipe: jest.fn()
+      } as any);
+
+      // Mock successful HTTPS response
+      const mockResponse = new EventEmitter();
+      (mockResponse as any).statusCode = 200;
+      (mockResponse as any).pipe = jest.fn();
+
+      mockHttps.get.mockImplementation((url: any, callback: any) => {
+        setTimeout(() => callback(mockResponse), 0);
+        return {
+          on: jest.fn((event: string, callback: Function) => {
+            // Don't trigger error
+          })
+        } as any;
+      });
+
+      // Mock hash validation
+      const mockHash = {
+        digest: jest.fn().mockReturnValue('TESTHASH'),
+        destroy: jest.fn(),
+        on: jest.fn((event: string, callback: Function) => {
+          if (event === 'finish') {
+            setTimeout(callback, 0);
+          }
+        }),
+        pipe: jest.fn().mockReturnThis()
+      };
+      
+      const mockCreateReadStream = {
+        pipe: jest.fn().mockReturnValue(mockHash)
+      };
+      mockFs.createReadStream.mockReturnValue(mockCreateReadStream as any);
+
+      // Mock AdmZip
+      jest.doMock('adm-zip', () => {
+        return jest.fn().mockImplementation(() => ({
+          extractAllTo: jest.fn()
+        }));
+      });
+
+      const testPackage: Package = {
+        platformId: 'test-platform',
+        sha256: 'TESTHASH'
+      };
+
+      // This should not throw an error
+      await expect(ensureKiotaIsPresentInPath('/test/path', [testPackage], 'test-platform')).resolves.not.toThrow();
+    });
+
+    test('should handle limited redirects correctly', async () => {
+      // Mock file operations  
+      mockFs.existsSync.mockReturnValue(false);
+      mockFs.readdirSync.mockReturnValue([]);
+      mockFs.mkdirSync.mockImplementation();
+      mockFs.createWriteStream.mockReturnValue({
+        on: jest.fn((event: string, callback: Function) => {
+          if (event === 'finish') {
+            setTimeout(callback, 0);
+          }
+        }),
+        close: jest.fn(),
+        pipe: jest.fn()
+      } as any);
+
+      let redirectCount = 0;
+      const maxRedirects = 3;
+
+      mockHttps.get.mockImplementation((url: any, callback: any) => {
+        const mockResponse = new EventEmitter();
+        
+        if (redirectCount < maxRedirects) {
+          // Return redirect response
+          (mockResponse as any).statusCode = 302;
+          (mockResponse as any).headers = { location: `http://redirect-${redirectCount}.com/file.zip` };
+          redirectCount++;
+        } else {
+          // Final successful response
+          (mockResponse as any).statusCode = 200;
+          (mockResponse as any).pipe = jest.fn();
+        }
+
+        setTimeout(() => callback(mockResponse), 0);
+        return {
+          on: jest.fn((event: string, callback: Function) => {
+            // Don't trigger error
+          })
+        } as any;
+      });
+
+      // Mock hash validation
+      const mockHash = {
+        digest: jest.fn().mockReturnValue('TESTHASH'),
+        destroy: jest.fn(),
+        on: jest.fn((event: string, callback: Function) => {
+          if (event === 'finish') {
+            setTimeout(callback, 0);
+          }
+        }),
+        pipe: jest.fn().mockReturnThis()
+      };
+      
+      const mockCreateReadStream = {
+        pipe: jest.fn().mockReturnValue(mockHash)
+      };
+      mockFs.createReadStream.mockReturnValue(mockCreateReadStream as any);
+
+      // Mock AdmZip
+      jest.doMock('adm-zip', () => {
+        return jest.fn().mockImplementation(() => ({
+          extractAllTo: jest.fn()
+        }));
+      });
+
+      const testPackage: Package = {
+        platformId: 'test-platform',
+        sha256: 'TESTHASH'
+      };
+
+      // This should complete successfully after following redirects
+      await expect(ensureKiotaIsPresentInPath('/test/path', [testPackage], 'test-platform')).resolves.not.toThrow();
+      
+      // Verify that we made the expected number of HTTP calls (initial + redirects + final)
+      expect(mockHttps.get).toHaveBeenCalledTimes(maxRedirects + 1);
+    });
+
+    test('should reject when redirect limit is exceeded', async () => {
+      // Mock file operations
+      mockFs.existsSync.mockReturnValue(false);
+      mockFs.readdirSync.mockReturnValue([]);
+      mockFs.mkdirSync.mockImplementation();
+      mockFs.rmdirSync.mockImplementation();
+
+      // Mock infinite redirects
+      mockHttps.get.mockImplementation((url: any, callback: any) => {
+        const mockResponse = new EventEmitter();
+        (mockResponse as any).statusCode = 302;
+        (mockResponse as any).headers = { location: 'http://redirect-loop.com/file.zip' };
+
+        setTimeout(() => callback(mockResponse), 0);
+        return {
+          on: jest.fn((event: string, callback: Function) => {
+            // Don't trigger error initially
+          })
+        } as any;
+      });
+
+      const testPackage: Package = {
+        platformId: 'test-platform',
+        sha256: 'TESTHASH'
+      };
+
+      // This should throw an error due to too many redirects
+      await expect(ensureKiotaIsPresentInPath('/test/path', [testPackage], 'test-platform'))
+        .rejects.toThrow('Kiota download failed. Check the logs for more information.');
+      
+      // Verify that cleanup was called
+      expect(mockFs.rmdirSync).toHaveBeenCalledWith('/test/path', { recursive: true });
+    });
+  });
+});
\ No newline at end of file