diff --git a/src/vs/workbench/browser/parts/auxiliarybar/auxiliaryBarPart.ts b/src/vs/workbench/browser/parts/auxiliarybar/auxiliaryBarPart.ts
index 82738560d38..d32082b4e12 100644
--- a/src/vs/workbench/browser/parts/auxiliarybar/auxiliaryBarPart.ts
+++ b/src/vs/workbench/browser/parts/auxiliarybar/auxiliaryBarPart.ts
@@ -151,7 +151,7 @@ export class AuxiliaryBarPart extends AbstractPaneCompositePart {
 	private onDidChangeAutoHideViewContainers(e: { before: number; after: number }): void {
 		// Only update if auto-hide is enabled and composite bar would show
 		const autoHide = this.configurationService.getValue<boolean>(LayoutSettings.ACTIVITY_BAR_AUTO_HIDE);
-		if (autoHide && (this.configuration.position !== ActivityBarPosition.HIDDEN)) {
+		if (autoHide && (this.configuration.position === ActivityBarPosition.TOP || this.configuration.position === ActivityBarPosition.BOTTOM)) {
 			const visibleBefore = e.before > 1;
 			const visibleAfter = e.after > 1;
 			if (visibleBefore !== visibleAfter) {
@@ -266,14 +266,17 @@ export class AuxiliaryBarPart extends AbstractPaneCompositePart {
 		}
 
 		// Check if auto-hide is enabled and there's only one visible view container
-		const autoHide = this.configurationService.getValue<boolean>(LayoutSettings.ACTIVITY_BAR_AUTO_HIDE);
-		if (autoHide) {
-			// Use visible composite count from the composite bar if available (considers pinned state),
-			// otherwise fall back to the tracker's count (based on active view descriptors).
-			// Note: We access paneCompositeBar directly to avoid circular calls with getVisiblePaneCompositeIds()
-			const visibleCount = this.visibleViewContainersTracker.visibleCount;
-			if (visibleCount <= 1) {
-				return false;
+		// while the activity bar is configured to be top or bottom.
+		if (this.configuration.position === ActivityBarPosition.TOP || this.configuration.position === ActivityBarPosition.BOTTOM) {
+			const autoHide = this.configurationService.getValue<boolean>(LayoutSettings.ACTIVITY_BAR_AUTO_HIDE);
+			if (autoHide) {
+				// Use visible composite count from the composite bar if available (considers pinned state),
+				// otherwise fall back to the tracker's count (based on active view descriptors).
+				// Note: We access paneCompositeBar directly to avoid circular calls with getVisiblePaneCompositeIds()
+				const visibleCount = this.visibleViewContainersTracker.visibleCount;
+				if (visibleCount <= 1) {
+					return false;
+				}
 			}
 		}