diff --git a/src/plugins/languageclient/lualanguageclient/lualanguageclient.cpp b/src/plugins/languageclient/lualanguageclient/lualanguageclient.cpp
index bcd9ade763f..900ce75b30e 100644
--- a/src/plugins/languageclient/lualanguageclient/lualanguageclient.cpp
+++ b/src/plugins/languageclient/lualanguageclient/lualanguageclient.cpp
@@ -1,9 +1,12 @@
 // Copyright (C) 2024 The Qt Company Ltd.
 // SPDX-License-Identifier: LicenseRef-Qt-Commercial OR GPL-3.0-only WITH Qt-GPL-exception-1.0
 
+#include <coreplugin/editormanager/editormanager.h>
+
 #include <languageclient/languageclientinterface.h>
 #include <languageclient/languageclientmanager.h>
 #include <languageclient/languageclientsettings.h>
+#include <languageclient/languageclienttr.h>
 
 #include <lua/bindings/inheritance.h>
 #include <lua/luaengine.h>
@@ -27,6 +30,19 @@ namespace LanguageClient::Lua {
 
 static void registerLuaApi();
 
+class LuaClient : public LanguageClient::Client
+{
+    Q_OBJECT
+
+public:
+    Utils::Id m_settingsId;
+
+    LuaClient(BaseClientInterface *interface, Utils::Id settingsId)
+        : LanguageClient::Client(interface)
+        , m_settingsId(settingsId)
+    {}
+};
+
 class LuaLanguageClientPlugin final : public ExtensionSystem::IPlugin
 {
     Q_OBJECT
@@ -135,6 +151,8 @@ public:
     BaseSettings *copy() const override { return new LuaClientSettings(*this); }
 
 protected:
+    Client *createClient(BaseClientInterface *interface) const final;
+
     BaseClientInterface *createInterface(ProjectExplorer::Project *project) const override;
 };
 enum class TransportType { StdIO, LocalSocket };
@@ -154,6 +172,7 @@ public:
     BaseSettings::StartBehavior m_startBehavior = BaseSettings::RequiresFile;
 
     std::optional<sol::protected_function> m_onInstanceStart;
+    std::optional<sol::protected_function> m_startFailedCallback;
     QMap<QString, sol::protected_function> m_messageCallbacks;
 
     QList<Client *> m_clients;
@@ -190,6 +209,8 @@ public:
         m_startBehavior = startBehaviorFromString(
             options.get_or<QString>("startBehavior", "AlwaysOn"));
 
+        m_startFailedCallback = options.get<sol::protected_function>("onStartFailed");
+
         QString transportType = options.get_or<QString>("transport", "stdio");
         if (transportType == "stdio")
             m_transportType = TransportType::StdIO;
@@ -231,35 +252,45 @@ public:
         // get<sol::optional<>> because on MSVC, get_or(..., nullptr) fails to compile
         m_aspects = options.get<sol::optional<AspectContainer *>>("settings").value_or(nullptr);
 
+        if (m_aspects) {
+            connect(m_aspects, &AspectContainer::applied, this, [this] {
+                updateOptions();
+                LanguageClientManager::applySettings();
+            });
+        }
+
         connect(
             LanguageClientManager::instance(),
             &LanguageClientManager::clientInitialized,
             this,
             [this](Client *c) {
-                if (m_onInstanceStart) {
-                    if (auto settings = LanguageClientManager::settingForClient(c)) {
-                        if (settings->m_settingsTypeId == m_settingsTypeId) {
-                            auto result = m_onInstanceStart->call();
+                auto luaClient = qobject_cast<LuaClient *>(c);
+                if (luaClient && luaClient->m_settingsId == m_settingsTypeId && m_onInstanceStart) {
+                    QTC_CHECK(::Lua::LuaEngine::void_safe_call(*m_onInstanceStart, c));
 
-                            if (!result.valid()) {
-                                qWarning() << "Error calling instance start callback:"
-                                           << (result.get<sol::error>().what());
-                            }
-
-                            m_clients.push_back(c);
-                            updateMessageCallbacks();
-                        }
-                    }
+                    m_clients.push_back(c);
+                    updateMessageCallbacks();
                 }
             });
+
         connect(
             LanguageClientManager::instance(),
             &LanguageClientManager::clientRemoved,
             this,
-            [this](Client *c) {
-                if (m_clients.contains(c))
-                    m_clients.removeOne(c);
-            });
+            &LuaClientWrapper::onClientRemoved);
+    }
+
+    void onClientRemoved(Client *c, bool unexpected)
+    {
+        auto luaClient = qobject_cast<LuaClient *>(c);
+        if (!luaClient || luaClient->m_settingsId != m_settingsTypeId)
+            return;
+
+        if (m_clients.contains(c))
+            m_clients.removeOne(c);
+
+        if (unexpected && m_startFailedCallback)
+            sol::protected_function_result result = m_startFailedCallback->call();
     }
 
     // TODO: Unregister Client settings from LanguageClientManager
@@ -457,6 +488,12 @@ QWidget *LuaClientSettings::createSettingsWidget(QWidget *parent) const
     return new BaseSettingsWidget(this, parent);
 }
 
+Client *LuaClientSettings::createClient(BaseClientInterface *interface) const
+{
+    Client *client = new LuaClient(interface, m_settingsTypeId);
+    return client;
+}
+
 BaseClientInterface *LuaClientSettings::createInterface(ProjectExplorer::Project *project) const
 {
     if (auto w = m_wrapper.lock())
diff --git a/src/plugins/lua/meta/lsp.lua b/src/plugins/lua/meta/lsp.lua
index 65b1ef8361b..1c404c167f6 100644
--- a/src/plugins/lua/meta/lsp.lua
+++ b/src/plugins/lua/meta/lsp.lua
@@ -11,6 +11,7 @@ local lsp = {}
 ---@field startBehavior? "AlwaysOn"|"RequiresFile"|"RequiresProject"
 ---@field initializationOptions? table|string The initialization options to pass to the language server, either a json string, or a table
 ---@field settings? AspectContainer
+---@field onStartFailed? function This callback is called when client failed to start.
 local ClientOptions = {}
 
 ---@class LanguageFilter
diff --git a/src/plugins/lualsp/lualsp/init.lua b/src/plugins/lualsp/lualsp/init.lua
index 75162c95c00..06d34f86ccb 100644
--- a/src/plugins/lualsp/lualsp/init.lua
+++ b/src/plugins/lualsp/lualsp/init.lua
@@ -24,6 +24,30 @@ local function createCommand()
 
   return cmd
 end
+local function installServer()
+  print("Lua Language Server not found, installing ...")
+  local cmds = {
+    mac = "brew install lua-language-server",
+    windows = "winget install lua-language-server",
+    linux = "sudo apt install lua-language-server"
+  }
+
+  if a.wait(Process.runInTerminal(cmds[Utils.HostOsInfo.os])) == 0 then
+    print("Lua Language Server installed!")
+    local binary = a.wait(Utils.FilePath.fromUserInput("lua-language-server"):searchInPath())
+    if binary:isExecutableFile() == false then
+      mm.writeFlashing("Lua Language Server was installed, but I could not find it in your PATH")
+      return false
+    end
+
+    Settings.binary.value = binary:toUserOutput()
+    Settings:apply()
+    return true
+  end
+
+  mm.writeFlashing("Lua Language Server installation failed!")
+  return false
+end
 local function setupClient()
   Client = LSP.Client.create({
     name = 'Lua Language Server',
@@ -35,6 +59,11 @@ local function setupClient()
     },
     settings = Settings,
     startBehavior = "RequiresFile",
+    onStartFailed = function(ask)
+      a.sync(function()
+        installServer()
+      end)()
+    end
   })
 
   Client.on_instance_start = function()
@@ -46,24 +75,6 @@ local function setupClient()
   end)
 end
 
-local function installServer()
-  print("Lua Language Server not found, installing ...")
-  local cmds = {
-    mac = "brew install lua-language-server",
-    windows = "winget install lua-language-server",
-    linux = "sudo apt install lua-language-server"
-  }
-  if a.wait(Process.runInTerminal(cmds[Utils.HostOsInfo.os])) == 0 then
-    print("Lua Language Server installed!")
-    Settings.binary.defaultPath = Utils.FilePath.fromUserInput("lua-language-server"):resolveSymlinks()
-    Settings:apply()
-    return true
-  end
-
-  print("Lua Language Server installation failed!")
-  return false
-end
-
 local function using(tbl)
   local result = _G
   for k, v in pairs(tbl) do result[k] = v end
@@ -112,8 +123,14 @@ local function setupAspect()
     labelText = "Binary:",
     toolTip = "The path to the lua-language-server binary.",
     expectedKind = S.Kind.ExistingCommand,
-    defaultPath = Utils.FilePath.fromUserInput("lua-language-server"):resolveSymlinks(),
+    defaultPath = Utils.FilePath.fromUserInput("lua-language-server"),
   })
+  -- Search for the binary in the PATH
+  local serverPath = Settings.binary.defaultPath
+  local absolute = a.wait(serverPath:searchInPath()):resolveSymlinks()
+  if absolute:isExecutableFile() == true then
+    Settings.binary.defaultPath = absolute
+  end
   Settings.developMode = S.BoolAspect.create({
     settingsKey = "LuaCopilot.DevelopMode",
     displayName = "Enable Develop Mode",
@@ -143,15 +160,7 @@ local function setupAspect()
   return Settings
 end
 local function setup(parameters)
-  print("Setting up Lua Language Server ...")
   setupAspect()
-  local serverPath = Utils.FilePath.fromUserInput("lua-language-server")
-  local absolute = a.wait(serverPath:searchInPath()):resolveSymlinks()
-  if absolute:isExecutableFile() == true then
-    Settings.binary.defaultPath = absolute
-  else
-    installServer()
-  end
   setupClient()
 end
 
diff --git a/src/plugins/lualsp/lualsp/lualsp.lua b/src/plugins/lualsp/lualsp/lualsp.lua
index ba2de874144..843d18189e4 100644
--- a/src/plugins/lualsp/lualsp/lualsp.lua
+++ b/src/plugins/lualsp/lualsp/lualsp.lua
@@ -21,10 +21,4 @@ It will try to install it if it is not found.
     setup = function()
         require 'init'.setup()
     end,
-    hooks = {
-        editors = {
-            documentOpened = function(doc) print("documentOpened", doc) end,
-            documentClosed = function(doc) print("documentClosed", doc) end,
-        }
-    }
 } --[[@as QtcPlugin]]