diff --git a/demo/src/setup.common.ts b/demo/src/setup.common.ts
index a34eb8c2..732ccfe3 100644
--- a/demo/src/setup.common.ts
+++ b/demo/src/setup.common.ts
@@ -11,6 +11,7 @@ import {
   RegisteredReadOnlyFile,
   createIndexedDBProviders,
   registerHTMLFileSystemProvider,
+  createHTMLFileSystemProvider,
   registerFileSystemOverlay,
   initFile
 } from '@codingame/monaco-vscode-files-service-override'
@@ -18,7 +19,8 @@ import * as monaco from 'monaco-editor'
 import {
   IWorkbenchConstructionOptions,
   LogLevel,
-  IEditorOverrideServices
+  IEditorOverrideServices,
+  IWorkspace
 } from '@codingame/monaco-vscode-api'
 import * as vscode from 'vscode'
 import getModelServiceOverride from '@codingame/monaco-vscode-model-service-override'
@@ -104,12 +106,14 @@ params.delete('resetLayout')
 
 window.history.replaceState({}, document.title, url.href)
 
-export let workspaceFile = monaco.Uri.file('/workspace.code-workspace')
+let workspace: IWorkspace = {
+  workspaceUri: monaco.Uri.file('/workspace.code-workspace')
+}
 
 export const userDataProvider = await createIndexedDBProviders()
 
 if (useHtmlFileSystemProvider) {
-  workspaceFile = monaco.Uri.from({ scheme: 'tmp', path: '/test.code-workspace' })
+  const workspaceFile = monaco.Uri.from({ scheme: 'tmp', path: '/test.code-workspace' })
   await initFile(
     workspaceFile,
     JSON.stringify(
@@ -120,7 +124,9 @@ if (useHtmlFileSystemProvider) {
       2
     )
   )
-
+  workspace = {
+    workspaceUri: workspaceFile
+  }
   registerHTMLFileSystemProvider()
 } else {
   const fileSystemProvider = new RegisteredFileSystemProvider(false)
@@ -235,6 +241,7 @@ h1 {
     )
   )
 
+  const workspaceFile = monaco.Uri.file('/workspace.code-workspace')
   // Use a workspace file to be able to add another folder later (for the "Attach filesystem" button)
   fileSystemProvider.registerFile(
     new RegisteredMemoryFile(
@@ -252,6 +259,9 @@ h1 {
       )
     )
   )
+  workspace = {
+    workspaceUri: workspaceFile
+  }
 
   fileSystemProvider.registerFile(
     new RegisteredMemoryFile(
@@ -267,6 +277,12 @@ h1 {
   )
 
   registerFileSystemOverlay(1, fileSystemProvider)
+
+  const htmlFileProvider = createHTMLFileSystemProvider()
+  htmlFileProvider.registerDirectoryHandle(
+    await (await navigator.storage.getDirectory()).getDirectoryHandle('workspace', { create: true })
+  )
+  registerFileSystemOverlay(2, htmlFileProvider)
 }
 
 // Workers
@@ -336,9 +352,7 @@ export const constructOptions: IWorkbenchConstructionOptions = {
     },
     workspace:
       remotePath == null
-        ? {
-            workspaceUri: workspaceFile
-          }
+        ? workspace
         : {
             folderUri: monaco.Uri.from({
               scheme: 'vscode-remote',
diff --git a/src/service-override/files.ts b/src/service-override/files.ts
index bcb1e9ed..9a09d9d8 100644
--- a/src/service-override/files.ts
+++ b/src/service-override/files.ts
@@ -1014,6 +1014,26 @@ class DelegateFileSystemProvider implements IFileSystemProviderWithFileReadWrite
           )
         }
 
+  readFileStream =
+    this.options.delegate.readFileStream != null
+      ? (
+          resource: URI,
+          opts: IFileReadStreamOptions,
+          token: CancellationToken
+        ): ReadableStreamEvents<Uint8Array> => {
+          return this.options.delegate.readFileStream!(
+            this.options.toDelegate(resource),
+            opts,
+            token
+          )
+        }
+      : () => {
+          throw createFileSystemProviderError(
+            'No delegate',
+            FileSystemProviderErrorCode.Unavailable
+          )
+        }
+
   watch(resource: URI, opts: IWatchOptions): IDisposable {
     try {
       return this.options.delegate.watch(this.options.toDelegate(resource), opts)
@@ -1283,11 +1303,7 @@ export async function createIndexedDBProviders(): Promise<IndexedDBFileSystemPro
   return userDataProvider
 }
 
-/**
- * Can be used to replace the default filesystem provider by the HTMLFileSystemProvider before the fileService is initialized
- * Should be called "after" createIndexedDBProviders if used
- */
-export function registerHTMLFileSystemProvider(): void {
+export function createHTMLFileSystemProvider(): HTMLFileSystemProvider {
   class LazyLogService implements ILogService {
     _serviceBrand: undefined
     get onDidChangeLogLevel() {
@@ -1330,10 +1346,17 @@ export function registerHTMLFileSystemProvider(): void {
       StandaloneServices.get(ILogService).dispose()
     }
   }
-  registerCustomProvider(
-    Schemas.file,
-    new HTMLFileSystemProvider(indexedDB, handlesStore, new LazyLogService())
-  )
+  return new HTMLFileSystemProvider(indexedDB, handlesStore, new LazyLogService())
+}
+
+/**
+ * Can be used to replace the default filesystem provider by the HTMLFileSystemProvider before the fileService is initialized
+ * Should be called "after" createIndexedDBProviders if used
+ */
+export function registerHTMLFileSystemProvider(): HTMLFileSystemProvider {
+  const provider = createHTMLFileSystemProvider()
+  registerCustomProvider(Schemas.file, provider)
+  return provider
 }
 
 /**