diff --git a/src/vs/editor/common/model/textModel.ts b/src/vs/editor/common/model/textModel.ts
index 0c3367ea4bd76..3f426ab1881e0 100644
--- a/src/vs/editor/common/model/textModel.ts
+++ b/src/vs/editor/common/model/textModel.ts
@@ -3267,13 +3267,13 @@ class DecorationsTrees {
 	public getInjectedTextInInterval(host: IDecorationsTreesHost, start: number, end: number, filterOwnerId: number): model.IModelDecoration[] {
 		const versionId = host.getVersionId();
 		const result = this._injectedTextDecorationsTree.intervalSearch(start, end, filterOwnerId, false, versionId);
-		return this._ensureNodesHaveRanges(host, result);
+		return this._ensureNodesHaveRanges(host, result).filter((i) => i.options.showIfCollapsed || !i.range.isEmpty());
 	}
 
 	public getAllInjectedText(host: IDecorationsTreesHost, filterOwnerId: number): model.IModelDecoration[] {
 		const versionId = host.getVersionId();
 		const result = this._injectedTextDecorationsTree.search(filterOwnerId, false, versionId);
-		return this._ensureNodesHaveRanges(host, result);
+		return this._ensureNodesHaveRanges(host, result).filter((i) => i.options.showIfCollapsed || !i.range.isEmpty());
 	}
 
 	public getAll(host: IDecorationsTreesHost, filterOwnerId: number, filterOutValidation: boolean, overviewRulerOnly: boolean): model.IModelDecoration[] {
diff --git a/src/vs/editor/contrib/inlineCompletions/ghostTextWidget.ts b/src/vs/editor/contrib/inlineCompletions/ghostTextWidget.ts
index 7c2785e536b59..d58cf6a3650e4 100644
--- a/src/vs/editor/contrib/inlineCompletions/ghostTextWidget.ts
+++ b/src/vs/editor/contrib/inlineCompletions/ghostTextWidget.ts
@@ -283,7 +283,8 @@ class DecorationsWidget implements IDisposable {
 				range: Range.fromPositions(new Position(lineNumber, p.column)),
 				options: shouldUseInjectedText ? {
 					description: 'ghost-text',
-					after: { content: contentText, inlineClassName: p.preview ? 'ghost-text-decoration-preview' : 'ghost-text-decoration' }
+					after: { content: contentText, inlineClassName: p.preview ? 'ghost-text-decoration-preview' : 'ghost-text-decoration' },
+					showIfCollapsed: true,
 				} : {
 					...decorationType.resolve()
 				}
diff --git a/src/vs/editor/test/common/model/modelInjectedText.test.ts b/src/vs/editor/test/common/model/modelInjectedText.test.ts
index 9badd3c7e5f8b..b2c4b91553781 100644
--- a/src/vs/editor/test/common/model/modelInjectedText.test.ts
+++ b/src/vs/editor/test/common/model/modelInjectedText.test.ts
@@ -35,6 +35,7 @@ suite('Editor Model - Injected Text Events', () => {
 			options: {
 				after: { content: 'injected1' },
 				description: 'test1',
+				showIfCollapsed: true
 			},
 			range: new Range(1, 1, 1, 1),
 		}]);
@@ -51,12 +52,14 @@ suite('Editor Model - Injected Text Events', () => {
 			options: {
 				after: { content: 'injected1' },
 				description: 'test1',
+				showIfCollapsed: true
 			},
 			range: new Range(2, 1, 2, 1),
 		}, {
 			options: {
 				after: { content: 'injected2' },
 				description: 'test2',
+				showIfCollapsed: true
 			},
 			range: new Range(2, 2, 2, 2),
 		}]);
diff --git a/src/vs/editor/test/common/viewModel/splitLinesCollection.test.ts b/src/vs/editor/test/common/viewModel/splitLinesCollection.test.ts
index cf2c618c49519..ccf38ad0235fe 100644
--- a/src/vs/editor/test/common/viewModel/splitLinesCollection.test.ts
+++ b/src/vs/editor/test/common/viewModel/splitLinesCollection.test.ts
@@ -746,7 +746,8 @@ suite('SplitLinesCollection', () => {
 				description: 'example',
 				after: {
 					content: 'very very long injected text that causes a line break'
-				}
+				},
+				showIfCollapsed: true,
 			}
 		}]);
 
diff --git a/src/vs/editor/test/common/viewModel/viewModelImpl.test.ts b/src/vs/editor/test/common/viewModel/viewModelImpl.test.ts
index ef9866ae107fb..f52485508fd3c 100644
--- a/src/vs/editor/test/common/viewModel/viewModelImpl.test.ts
+++ b/src/vs/editor/test/common/viewModel/viewModelImpl.test.ts
@@ -310,7 +310,8 @@ suite('ViewModel', () => {
 							description: 'test',
 							before: {
 								content: 'bar'
-							}
+							},
+							showIfCollapsed: true
 						}
 					},
 					{
@@ -319,7 +320,8 @@ suite('ViewModel', () => {
 							description: 'test',
 							before: {
 								content: 'bz'
-							}
+							},
+							showIfCollapsed: true
 						}
 					},
 				]);
diff --git a/src/vs/workbench/contrib/testing/browser/testingDecorations.ts b/src/vs/workbench/contrib/testing/browser/testingDecorations.ts
index 8f4b493f93904..00b1917bc4f09 100644
--- a/src/vs/workbench/contrib/testing/browser/testingDecorations.ts
+++ b/src/vs/workbench/contrib/testing/browser/testingDecorations.ts
@@ -754,6 +754,7 @@ class TestMessageDecoration implements ITestDecoration {
 			content: renderStringAsPlaintext(message),
 			inlineClassName: `test-message-inline-content test-message-inline-content-s${severity} ${this.contentIdClass}`
 		};
+		options.showIfCollapsed = true;
 
 		const rulerColor = severity === TestMessageType.Error
 			? overviewRulerError