Nunjucks seems to do the trick.

Nunjucks - Visual Studio Marketplace 

ext install extension nunjucks

When you save a file with some file extension, VSCode automatically prompts 
you to install a related VSCode extension.
That's how I came to know about this extension. 

On Monday, September 23, 2019 at 8:55:52 PM UTC+5:30, 
> Is there way to highlight templates files (.tmpl) in VSCode? There is an 
> extension gotemplate-syntax 
> <> 
> but 
> seems it doesn't make the job.
> {{define "side"}}
>     <h3>New Books</h3>
>     <p>There's nothing here</p>
> {{end}}

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