diff --git a/extensions/ql-vscode/src/extension.ts b/extensions/ql-vscode/src/extension.ts
index 77547d85e..86e8969cf 100644
--- a/extensions/ql-vscode/src/extension.ts
+++ b/extensions/ql-vscode/src/extension.ts
@@ -862,6 +862,7 @@ async function activateWithInstalledDistribution(
     databaseUI,
     localQueryResultsView,
     queryStorageDir,
+    ctx,
   );
   ctx.subscriptions.push(localQueries);
 
diff --git a/extensions/ql-vscode/src/local-queries.ts b/extensions/ql-vscode/src/local-queries.ts
index 60461461d..c35dd93f9 100644
--- a/extensions/ql-vscode/src/local-queries.ts
+++ b/extensions/ql-vscode/src/local-queries.ts
@@ -2,6 +2,7 @@ import { ProgressCallback, ProgressUpdate, withProgress } from "./progress";
 import {
   CancellationToken,
   CancellationTokenSource,
+  ExtensionContext,
   QuickPickItem,
   Range,
   Uri,
@@ -221,6 +222,7 @@ export class LocalQueries extends DisposableObject {
     private readonly databaseUI: DatabaseUI,
     private readonly localQueryResultsView: ResultsView,
     private readonly queryStorageDir: string,
+    private readonly ctx: ExtensionContext,
   ) {
     super();
   }
@@ -381,6 +383,8 @@ export class LocalQueries extends DisposableObject {
     await withProgress(
       async (progress: ProgressCallback, token: CancellationToken) => {
         const credentials = isCanary() ? this.app.credentials : undefined;
+        const contextStoragePath =
+          this.ctx.storageUri?.fsPath || this.ctx.globalStorageUri.fsPath;
         const skeletonQueryWizard = new SkeletonQueryWizard(
           this.cliServer,
           progress,
@@ -388,6 +392,7 @@ export class LocalQueries extends DisposableObject {
           extLogger,
           this.databaseManager,
           token,
+          contextStoragePath,
         );
         await skeletonQueryWizard.execute();
       },
diff --git a/extensions/ql-vscode/src/skeleton-query-wizard.ts b/extensions/ql-vscode/src/skeleton-query-wizard.ts
index 9ad782d81..12f1ea035 100644
--- a/extensions/ql-vscode/src/skeleton-query-wizard.ts
+++ b/extensions/ql-vscode/src/skeleton-query-wizard.ts
@@ -36,6 +36,7 @@ export class SkeletonQueryWizard {
     private readonly extLogger: OutputChannelLogger,
     private readonly databaseManager: DatabaseManager,
     private readonly token: CancellationToken,
+    private readonly databaseStoragePath: string | undefined,
   ) {}
 
   private get folderName() {
@@ -197,6 +198,10 @@ export class SkeletonQueryWizard {
       throw new Error("Workspace storage path is undefined");
     }
 
+    if (this.databaseStoragePath === undefined) {
+      throw new Error("Database storage path is undefined");
+    }
+
     if (this.language === undefined) {
       throw new Error("Language is undefined");
     }
@@ -220,7 +225,7 @@ export class SkeletonQueryWizard {
     await databaseFetcher.downloadGitHubDatabase(
       chosenRepo,
       this.databaseManager,
-      this.qlPackStoragePath,
+      this.databaseStoragePath,
       this.credentials,
       this.progress,
       this.token,
diff --git a/extensions/ql-vscode/test/vscode-tests/cli-integration/skeleton-query-wizard.test.ts b/extensions/ql-vscode/test/vscode-tests/cli-integration/skeleton-query-wizard.test.ts
index e92c78b25..a20b71fb3 100644
--- a/extensions/ql-vscode/test/vscode-tests/cli-integration/skeleton-query-wizard.test.ts
+++ b/extensions/ql-vscode/test/vscode-tests/cli-integration/skeleton-query-wizard.test.ts
@@ -114,6 +114,7 @@ describe("SkeletonQueryWizard", () => {
       extLogger,
       mockDatabaseManager,
       token,
+      storagePath,
     );
 
     askForGitHubRepoSpy = jest
@@ -244,6 +245,7 @@ describe("SkeletonQueryWizard", () => {
           extLogger,
           mockDatabaseManagerWithItems,
           token,
+          storagePath,
         );
       });
 
@@ -317,6 +319,7 @@ describe("SkeletonQueryWizard", () => {
         extLogger,
         mockDatabaseManager,
         token,
+        storagePath,
       );
 
       expect(wizard.getFirstStoragePath()).toEqual("codespaces-codeql");
@@ -352,6 +355,7 @@ describe("SkeletonQueryWizard", () => {
           extLogger,
           mockDatabaseManager,
           token,
+          storagePath,
         );
 
         expect(wizard.getFirstStoragePath()).toEqual("vscode-codeql-starter");