AWS has announced the integration of LocalStack with the AWS Toolkit for Visual Studio Code, addressing a long-standing challenge in serverless development where developers needed to juggle multiple tools and complex configurations for local testing of event-driven applications. The integration, available in AWS Toolkit for VS Code version 3.74.0, allows developers to connect directly to LocalStack endpoints from within their IDE. This eliminates the previous requirement for manual endpoint configuration and context switching between different development tools when testing serverless applications that involve multiple AWS services like Amazon SQS, EventBridge, and DynamoDB.