diff --git a/src/api/local/deployTools.ts b/src/api/local/deployTools.ts
index 09c2891c5..be356d536 100644
--- a/src/api/local/deployTools.ts
+++ b/src/api/local/deployTools.ts
@@ -2,10 +2,9 @@ import createIgnore, { Ignore } from 'ignore';
 import path, { basename } from 'path';
 import vscode, { Uri, WorkspaceFolder } from 'vscode';
 import { instance } from '../../instantiate';
-import { LocalLanguageActions } from './LocalLanguageActions';
 import { DeploymentMethod, DeploymentParameters } from '../../typings';
-import { ConnectionConfiguration } from '../Configuration';
 import { Tools } from '../Tools';
+import { LocalLanguageActions } from './LocalLanguageActions';
 import { Deployment } from './deployment';
 
 type ServerFileChanges = {uploads: Uri[], relativeRemoteDeletes: string[]};
@@ -337,13 +336,18 @@ export namespace DeployTools {
 
   export async function getDefaultIgnoreRules(workspaceFolder: vscode.WorkspaceFolder): Promise<Ignore> {
     const ignoreRules = createIgnore({ ignorecase: true }).add(`.git`);
-    // get the .gitignore file from workspace
-    const gitignores = await vscode.workspace.findFiles(new vscode.RelativePattern(workspaceFolder, `.gitignore`), ``, 1);
-    if (gitignores.length > 0) {
+    // get the .deployignore file or .gitignore file from workspace with priority to .deployignore
+    const ignoreFile = [
+      ...await vscode.workspace.findFiles(new vscode.RelativePattern(workspaceFolder, `.deployignore`), ``, 1),
+      ...await vscode.workspace.findFiles(new vscode.RelativePattern(workspaceFolder, `.gitignore`), ``, 1)      
+    ].at(0);
+
+    if (ignoreFile) {
       // get the content from the file
-      const gitignoreContent = (await vscode.workspace.fs.readFile(gitignores[0])).toString().replace(new RegExp(`\\\r`, `g`), ``);
+      const gitignoreContent = (await vscode.workspace.fs.readFile(ignoreFile)).toString().replace(new RegExp(`\\\r`, `g`), ``);
       ignoreRules.add(gitignoreContent.split(`\n`));
       ignoreRules.add('**/.gitignore');
+      ignoreRules.add('**/.deployignore');
     }
 
     return ignoreRules;
diff --git a/src/testing/deployTools.ts b/src/testing/deployTools.ts
index e8a0379f8..96f75c7c7 100644
--- a/src/testing/deployTools.ts
+++ b/src/testing/deployTools.ts
@@ -25,7 +25,7 @@ export class File {
     remotePath?: string;
 
     constructor(readonly name: string, content?: string[]) {
-        if(content) {
+        if (content) {
             this.content = content;
         } else {
             this.changeContent();
@@ -162,13 +162,45 @@ export const DeployToolsSuite: TestSuite = {
                 };
 
                 await CompileTools.runAction(instance, vscode.Uri.joinPath(fakeProject.localPath!, "hello.txt"), action);
-                
+
                 const localRoot = vscode.workspace.getWorkspaceFolder(fakeProject.localPath!)?.uri;
                 assert.ok(localRoot, "No workspace folder");
                 assert.ok(existsSync(vscode.Uri.joinPath(localRoot, `random`, `random.txt`).fsPath));
                 assert.ok(existsSync(vscode.Uri.joinPath(localRoot, "hello.txt").fsPath));
             }
         },
+        {
+            name: `Test .deployignore`, test: async () => {
+                const workspace = vscode.workspace.workspaceFolders![0];
+                const getRootFile = (name: string) => vscode.Uri.joinPath(workspace.uri, name);
+                const prepare = async (name: string, rollback?: boolean) => {
+                    const file = getRootFile(rollback ? `${name}_backup` : name);
+                    if (existsSync(file.fsPath)) {
+                        await vscode.workspace.fs.rename(file, getRootFile(rollback ? name : `${name}_backup`), { overwrite: true });
+                    }
+                    return file;
+                };
+
+                try {
+                    const toIgnore = ["ignore1", "ignore2", "ignore3", "ignore4", ".gitignore", ".deployignore", ".notignored"];                   
+
+                    const deployignore = await prepare(".deployignore");
+                    vscode.workspace.fs.writeFile(deployignore, Buffer.from("**/ignore2\n**/ignore4"));
+                    const ignoreDeploy = await DeployTools.getDefaultIgnoreRules(workspace);
+                    assert.strictEqual(ignoreDeploy.filter(toIgnore).join(","), "ignore1,ignore3,.notignored");
+                    await vscode.workspace.fs.delete(deployignore);
+
+                    const gitignore = await prepare(".gitignore");
+                    await vscode.workspace.fs.writeFile(gitignore, Buffer.from("**/ignore1\n**/ignore3"));
+                    const ignoreGit = await DeployTools.getDefaultIgnoreRules(workspace);
+                    assert.strictEqual(ignoreGit.filter(toIgnore).join(","), "ignore2,ignore4,.notignored");
+                }
+                finally {
+                    await prepare(".gitignore", true);
+                    await prepare(".deployignore", true);
+                }
+            }
+        },
     ],
     after: async () => {
         if (fakeProject.localPath && existsSync(fakeProject.localPath.fsPath)) {
diff --git a/src/views/ifsBrowser.ts b/src/views/ifsBrowser.ts
index 74e7c5bd0..02245704c 100644
--- a/src/views/ifsBrowser.ts
+++ b/src/views/ifsBrowser.ts
@@ -15,7 +15,7 @@ import { BrowserItem, BrowserItemParameters, FocusOptions, IFSFile, IFS_BROWSER_
 const URI_LIST_MIMETYPE = "text/uri-list";
 const URI_LIST_SEPARATOR = "\r\n";
 const PROTECTED_DIRS = /^(\/|\/QOpenSys|\/QSYS\.LIB|\/QDLS|\/QOPT|\/QNTC|\/QFileSvr\.400|\/bin|\/dev|\/home|\/tmp|\/usr|\/var)$/i;
-const ALWAYS_SHOW_FILES = /^(\.gitignore|\.vscode)$/i;
+const ALWAYS_SHOW_FILES = /^(\.gitignore|\.vscode|\.deployignore)$/i;
 type DragNDropAction = "move" | "copy";
 type DragNDropBehavior = DragNDropAction | "ask";
 const getDragDropBehavior = () => GlobalConfiguration.get<DragNDropBehavior>(`IfsBrowser.DragAndDropDefaultBehavior`) || "ask";