diff --git a/.github/workflows/downstream-release-dispatch.yml b/.github/workflows/downstream-release-dispatch.yml
new file mode 100644
index 0000000..4e17697
--- /dev/null
+++ b/.github/workflows/downstream-release-dispatch.yml
@@ -0,0 +1,83 @@
+name: Downstream Release Dispatch
+
+on:
+  release:
+    types: [published]
+
+concurrency:
+  group: downstream-release-dispatch-${{ github.ref }}
+  cancel-in-progress: false
+
+permissions:
+  contents: read
+
+env:
+  CONSUMER_REPOS: |
+    microsoft/vscode-isort
+    microsoft/vscode-flake8
+    microsoft/vscode-pylint
+    microsoft/vscode-mypy
+    microsoft/vscode-black-formatter
+  NPM_DEPENDENCY: "@vscode/common-python-lsp"
+  PIP_DEPENDENCY: "vscode-common-python-lsp"
+
+jobs:
+  dispatch-to-consumers:
+    name: Dispatch Release Event To Consumer Repos
+    runs-on: ubuntu-latest
+    steps:
+      - name: Send repository_dispatch to each consumer repo
+        env:
+          GH_TOKEN: ${{ secrets.DOWNSTREAM_REPO_TOKEN }}
+          SOURCE_REPO: ${{ github.repository }}
+          RELEASE_TAG: ${{ github.event.release.tag_name }}
+          RELEASE_URL: ${{ github.event.release.html_url }}
+          RELEASE_NAME: ${{ github.event.release.name || '' }}
+        run: |
+          set -euo pipefail
+
+          if [ -z "${GH_TOKEN:-}" ]; then
+            echo "::error::DOWNSTREAM_REPO_TOKEN is required for cross-repo dispatch"
+            exit 1
+          fi
+
+          failures=""
+
+          for repo in $CONSUMER_REPOS; do
+            echo "Dispatching shared-package-release event to $repo"
+
+            payload=$(jq -n \
+              --arg source_repo "$SOURCE_REPO" \
+              --arg release_tag "$RELEASE_TAG" \
+              --arg release_url "$RELEASE_URL" \
+              --arg release_name "$RELEASE_NAME" \
+              --arg npm_dependency "$NPM_DEPENDENCY" \
+              --arg pip_dependency "$PIP_DEPENDENCY" \
+              '{
+                event_type: "shared-package-release",
+                client_payload: {
+                  source_repo: $source_repo,
+                  release_tag: $release_tag,
+                  release_url: $release_url,
+                  release_name: $release_name,
+                  npm_dependency: $npm_dependency,
+                  pip_dependency: $pip_dependency
+                }
+              }')
+
+            if ! gh api "/repos/$repo/dispatches" \
+              -X POST \
+              -H "Accept: application/vnd.github+json" \
+              -H "X-GitHub-Api-Version: 2022-11-28" \
+              --input - <<< "$payload"; then
+              echo "Dispatch failed for $repo"
+              failures+="$repo "$'\n'
+              continue
+            fi
+          done
+
+          if [ -n "$failures" ]; then
+            echo "Dispatch failed for the following repositories:"
+            echo "$failures"
+            exit 1
+          fi
diff --git a/docs/consumer-repo-dispatch-template.md b/docs/consumer-repo-dispatch-template.md
new file mode 100644
index 0000000..4fa6eb3
--- /dev/null
+++ b/docs/consumer-repo-dispatch-template.md
@@ -0,0 +1,120 @@
+# Consumer Repo Workflow Template
+
+Use this workflow in each consumer repository to handle `repository_dispatch` events sent by:
+- [.github/workflows/downstream-release-dispatch.yml](../.github/workflows/downstream-release-dispatch.yml)
+
+```yaml
+name: Shared Package Release Handler
+
+on:
+  repository_dispatch:
+    types: [shared-package-release]
+
+permissions:
+  contents: write
+  pull-requests: write
+
+jobs:
+  update-shared-packages:
+    runs-on: ubuntu-latest
+    steps:
+      - uses: actions/checkout@v6
+
+      - uses: actions/setup-node@v6
+        with:
+          node-version: "20"
+
+      - uses: actions/setup-python@v6
+        with:
+          python-version: "3.x"
+
+      - name: Create branch for this release
+        env:
+          RELEASE_TAG: ${{ github.event.client_payload.release_tag }}
+        run: |
+          set -euo pipefail
+          BRANCH="shared-package-v${RELEASE_TAG#v}"
+          git fetch origin main
+          git checkout -B "$BRANCH" origin/main
+
+      - name: Normalize release tag
+        id: release_version
+        env:
+          RELEASE_TAG: ${{ github.event.client_payload.release_tag }}
+        run: |
+          set -euo pipefail
+          VERSION="${RELEASE_TAG#v}"
+          echo "value=$VERSION" >> "$GITHUB_OUTPUT"
+
+      - name: Update npm dependency
+        env:
+          NPM_DEP: ${{ github.event.client_payload.npm_dependency }}
+          RELEASE_VERSION: ${{ steps.release_version.outputs.value }}
+        run: |
+          set -euo pipefail
+          npm install "$NPM_DEP@$RELEASE_VERSION"
+
+      - name: Update pip dependency reference (example: requirements file)
+        env:
+          PIP_DEP: ${{ github.event.client_payload.pip_dependency }}
+          RELEASE_VERSION: ${{ steps.release_version.outputs.value }}
+        run: |
+          set -euo pipefail
+          python - <<'PY'
+          from pathlib import Path
+          import os
+          import re
+
+          dep = os.environ["PIP_DEP"]
+          version = os.environ["RELEASE_VERSION"]
+          pinned = f"{dep}=={version}"
+          req = Path("requirements.txt")
+          if req.exists():
+              txt = req.read_text(encoding="utf-8")
+              updated = re.sub(rf"^{re.escape(dep)}([<>=!~].*)?$", pinned, txt, flags=re.MULTILINE)
+              req.write_text(updated, encoding="utf-8")
+          PY
+
+      - name: Commit and open PR if changed
+        env:
+          RELEASE_TAG: ${{ github.event.client_payload.release_tag }}
+          RELEASE_URL: ${{ github.event.client_payload.release_url }}
+          GH_TOKEN: ${{ secrets.GITHUB_TOKEN }}
+        run: |
+          set -euo pipefail
+
+          git config user.name "github-actions[bot]"
+          git config user.email "github-actions[bot]@users.noreply.github.com"
+
+          if git diff --quiet; then
+            echo "No changes detected."
+            exit 0
+          fi
+
+          BRANCH="shared-package-v${RELEASE_TAG#v}"
+          git add -A
+          git commit -m "Upgrade shared package to ${RELEASE_TAG}"
+          git push --set-upstream origin "$BRANCH"
+
+          gh pr create \
+            --base main \
+            --head "$BRANCH" \
+            --title "[Shared Package] Upgrade to ${RELEASE_TAG}" \
+            --body "Automated update from ${RELEASE_URL}"
+```
+
+## Dispatch payload fields
+
+The dispatcher sends these `client_payload` fields:
+- `source_repo`
+- `release_tag`
+- `release_url`
+- `release_name`
+- `npm_dependency`
+- `pip_dependency`
+
+## Template notes
+
+- This is a starter template. Each consumer repo should adjust file paths and update commands to match its actual layout.
+- The `Normalize release tag` step strips a single leading `v` (for example, `v1.2.3` -> `1.2.3`) and the npm/pip steps pin to that normalized version.
+- The pip step must update tracked files (for example `requirements.txt`, `pyproject.toml`, or lock files), not just install locally.