diff --git a/src/Azure.Functions.Cli/Actions/LocalActions/CreateFunctionAction.cs b/src/Azure.Functions.Cli/Actions/LocalActions/CreateFunctionAction.cs
index 383180c8b..514dd7581 100644
--- a/src/Azure.Functions.Cli/Actions/LocalActions/CreateFunctionAction.cs
+++ b/src/Azure.Functions.Cli/Actions/LocalActions/CreateFunctionAction.cs
@@ -4,6 +4,7 @@
 using System.Linq;
 using System.Threading.Tasks;
 using Azure.Functions.Cli.Common;
+using Azure.Functions.Cli.ExtensionBundle;
 using Azure.Functions.Cli.Helpers;
 using Azure.Functions.Cli.Interfaces;
 using Azure.Functions.Cli.Telemetry;
@@ -156,7 +157,13 @@ public async override Task RunAsync()
                 else
                 {
                     TelemetryHelpers.AddCommandEventToDictionary(TelemetryCommandEvents, "template", TemplateName);
-                    ExtensionsHelper.EnsureDotNetForExtensions(template);
+
+                    var extensionBundleManager = ExtensionBundleHelper.GetExtensionBundleManager();
+                    if (template.Metadata.Extensions != null && !extensionBundleManager.IsExtensionBundleConfigured() && !CommandChecker.CommandExists("dotnet"))
+                    {
+                        throw new CliException($"The {template.Metadata.Name} template has extensions. {Constants.Errors.ExtensionsNeedDotnet}");
+                    }
+
                     ColoredConsole.Write($"Function name: [{template.Metadata.DefaultFunctionName}] ");
                     FunctionName = FunctionName ?? Console.ReadLine();
                     FunctionName = string.IsNullOrEmpty(FunctionName) ? template.Metadata.DefaultFunctionName : FunctionName;
diff --git a/src/Azure.Functions.Cli/Helpers/ExtensionsHelper.cs b/src/Azure.Functions.Cli/Helpers/ExtensionsHelper.cs
index 7da02f179..9134a1da2 100644
--- a/src/Azure.Functions.Cli/Helpers/ExtensionsHelper.cs
+++ b/src/Azure.Functions.Cli/Helpers/ExtensionsHelper.cs
@@ -72,12 +72,5 @@ public static IEnumerable<ExtensionPackage> GetExtensionPackages()
             return packages.Values;
         }
 
-        public static void EnsureDotNetForExtensions(Template template)
-        {
-            if (template.Metadata.Extensions != null && !CommandChecker.CommandExists("dotnet"))
-            {
-                throw new CliException($"The {template.Metadata.Name} template has extensions. {Constants.Errors.ExtensionsNeedDotnet}");
-            }
-        }
     }
 }