diff --git a/modules/cli/src/main/scala/scala/cli/ScalaCli.scala b/modules/cli/src/main/scala/scala/cli/ScalaCli.scala
index 8047549c04..63bdd558ae 100644
--- a/modules/cli/src/main/scala/scala/cli/ScalaCli.scala
+++ b/modules/cli/src/main/scala/scala/cli/ScalaCli.scala
@@ -12,6 +12,7 @@ import java.util.Locale
 import scala.build.Directories
 import scala.build.internal.Constants
 import scala.build.internals.EnvVar
+import scala.cli.commands.CommandUtils
 import scala.cli.config.{ConfigDb, Keys}
 import scala.cli.internal.Argv0
 import scala.cli.javaLauncher.JavaLauncherCli
@@ -244,10 +245,26 @@ object ScalaCli {
           case Some(ver) =>
             val powerArgs              = launcherOpts.powerOptions.toCliArgs
             val initialScalaRunnerArgs = launcherOpts.scalaRunner
-            val finalScalaRunnerArgs =
-              // if the version was specified, it doesn't make sense to check for CLI updates
-              (if Version(ver) < Version("1.4.0") then initialScalaRunnerArgs
-               else initialScalaRunnerArgs.copy(skipCliUpdates = Some(true))).toCliArgs
+            val finalScalaRunnerArgs = (Version(ver) match
+              case v if v < Version("1.4.0") && !ver.contains("nightly") =>
+                initialScalaRunnerArgs.copy(
+                  skipCliUpdates = None,
+                  predefinedCliVersion = None,
+                  initialLauncherPath = None
+                )
+              case v if v < Version("1.5.1") && !ver.contains("nightly") =>
+                initialScalaRunnerArgs.copy(
+                  predefinedCliVersion = None,
+                  initialLauncherPath = None
+                )
+              case _ if initialScalaRunnerArgs.initialLauncherPath.nonEmpty =>
+                initialScalaRunnerArgs
+              case _ =>
+                initialScalaRunnerArgs.copy(
+                  predefinedCliVersion = Some(ver),
+                  initialLauncherPath = Some(CommandUtils.getAbsolutePathToScalaCli(progName))
+                )
+            ).toCliArgs
             val newArgs = powerArgs ++ finalScalaRunnerArgs ++ args0
             LauncherCli.runAndExit(ver, launcherOpts, newArgs)
           case _ if
diff --git a/modules/cli/src/main/scala/scala/cli/commands/setupide/SetupIde.scala b/modules/cli/src/main/scala/scala/cli/commands/setupide/SetupIde.scala
index d8d4fe8ec5..0e196d84b1 100644
--- a/modules/cli/src/main/scala/scala/cli/commands/setupide/SetupIde.scala
+++ b/modules/cli/src/main/scala/scala/cli/commands/setupide/SetupIde.scala
@@ -154,9 +154,14 @@ object SetupIde extends ScalaCommand[SetupIdeOptions] {
       s"-J-agentlib:jdwp=transport=dt_socket,server=n,address=localhost:$port,suspend=y"
     )
 
+    val launcher = launcherOptions.scalaRunner.initialLauncherPath
+      .getOrElse(CommandUtils.getAbsolutePathToScalaCli(progName))
+    val finalLauncherOptions = launcherOptions.copy(cliVersion =
+      launcherOptions.cliVersion.orElse(launcherOptions.scalaRunner.predefinedCliVersion)
+    )
     val bspArgs =
-      List(CommandUtils.getAbsolutePathToScalaCli(progName)) ++
-        launcherOptions.toCliArgs ++
+      List(launcher) ++
+        finalLauncherOptions.toCliArgs ++
         List("bsp") ++
         debugOpt ++
         List("--json-options", scalaCliBspJsonDestination.toString) ++
@@ -184,7 +189,7 @@ object SetupIde extends ScalaCommand[SetupIdeOptions] {
 
     val json                         = gson.toJson(details)
     val scalaCliOptionsForBspJson    = writeToArray(options.shared)(SharedOptions.jsonCodec)
-    val scalaCliLaunchOptsForBspJson = writeToArray(launcherOptions)(LauncherOptions.jsonCodec)
+    val scalaCliLaunchOptsForBspJson = writeToArray(finalLauncherOptions)(LauncherOptions.jsonCodec)
     val scalaCliBspInputsJson        = writeToArray(ideInputs)
     val envsForBsp          = sys.env.filter((key, _) => EnvVar.allBsp.map(_.name).contains(key))
     val scalaCliBspEnvsJson = writeToArray(envsForBsp)
diff --git a/modules/cli/src/main/scala/scala/cli/launcher/ScalaRunnerLauncherOptions.scala b/modules/cli/src/main/scala/scala/cli/launcher/ScalaRunnerLauncherOptions.scala
index 091837b2d7..09ed8aedfe 100644
--- a/modules/cli/src/main/scala/scala/cli/launcher/ScalaRunnerLauncherOptions.scala
+++ b/modules/cli/src/main/scala/scala/cli/launcher/ScalaRunnerLauncherOptions.scala
@@ -39,12 +39,22 @@ case class ScalaRunnerLauncherOptions(
   )
   @Hidden
   @Tag(tags.implementation)
-  skipCliUpdates: Option[Boolean] = None
+  skipCliUpdates: Option[Boolean] = None,
+  @Hidden
+  @Tag(tags.implementation)
+  predefinedCliVersion: Option[String] = None,
+  @Hidden
+  @Tag(tags.implementation)
+  @Name("initialLauncher")
+  initialLauncherPath: Option[String] = None
 ) {
   def toCliArgs: List[String] =
     cliUserScalaVersion.toList.flatMap(v => List("--cli-default-scala-version", v)) ++
       cliPredefinedRepository.flatMap(v => List("--repository", v)) ++
-      progName.toList.flatMap(v => List("--prog-name", v))
+      progName.toList.flatMap(v => List("--prog-name", v)) ++
+      skipCliUpdates.toList.filter(v => v).map(_ => "--skip-cli-updates") ++
+      predefinedCliVersion.toList.flatMap(v => List("--predefined-cli-version", v)) ++
+      initialLauncherPath.toList.flatMap(v => List("--initial-launcher-path", v))
 }
 
 object ScalaRunnerLauncherOptions {
diff --git a/modules/integration/src/test/scala/scala/cli/integration/BspTestDefinitions.scala b/modules/integration/src/test/scala/scala/cli/integration/BspTestDefinitions.scala
index 593cbb237b..99311eebe1 100644
--- a/modules/integration/src/test/scala/scala/cli/integration/BspTestDefinitions.scala
+++ b/modules/integration/src/test/scala/scala/cli/integration/BspTestDefinitions.scala
@@ -2162,4 +2162,22 @@ abstract class BspTestDefinitions extends ScalaCliSuite with TestScalaVersionArg
       }
     }
   }
+
+  // TODO: uncomment when the fix for https://github.com/VirtusLab/scala-cli/issues/3157 is on nightly
+//  test("setup-ide prepares a valid BSP configuration with --cli-version") {
+//    val scriptName = "cli-version.sc"
+//    val cliVersion = "nightly"
+//    val inputs = TestInputs(os.rel / scriptName -> s"""println("Hello from launcher v$cliVersion""")
+//    inputs.fromRoot { root =>
+//      val cliVersionArgs = List("--cli-version", cliVersion)
+//      os.proc(TestUtil.cli, cliVersionArgs, "setup-ide", scriptName, extraOptions).call(cwd = root)
+//      val expectedIdeLauncherFile = root / Constants.workspaceDirName / "ide-launcher-options.json"
+//      expect(expectedIdeLauncherFile.toNIO.toFile.exists())
+//      expect(os.read(expectedIdeLauncherFile).contains(cliVersion))
+//      val bspConfig = readBspConfig(root)
+//      expect(bspConfig.argv.head == TestUtil.cliPath)
+//      expect(bspConfig.argv.containsSlice(cliVersionArgs))
+//      expect(bspConfig.argv.indexOfSlice(cliVersionArgs) < bspConfig.argv.indexOf("bsp"))
+//    }
+//  }
 }