diff --git a/src/vs/editor/contrib/dropOrPasteInto/browser/copyPasteController.ts b/src/vs/editor/contrib/dropOrPasteInto/browser/copyPasteController.ts
index acffc02602d..4a5da94b99f 100644
--- a/src/vs/editor/contrib/dropOrPasteInto/browser/copyPasteController.ts
+++ b/src/vs/editor/contrib/dropOrPasteInto/browser/copyPasteController.ts
@@ -378,7 +378,6 @@ export class CopyPasteController extends Disposable implements IEditorContributi
 		}, () => p);
 	}
 
-
 	private setCopyMetadata(dataTransfer: DataTransfer, metadata: CopyMetadata) {
 		dataTransfer.setData(vscodeClipboardMime, JSON.stringify(metadata));
 	}
diff --git a/src/vs/editor/contrib/dropOrPasteInto/browser/edit.ts b/src/vs/editor/contrib/dropOrPasteInto/browser/edit.ts
index e7b42fe7843..55d8dff9e7b 100644
--- a/src/vs/editor/contrib/dropOrPasteInto/browser/edit.ts
+++ b/src/vs/editor/contrib/dropOrPasteInto/browser/edit.ts
@@ -7,6 +7,7 @@ import { URI } from 'vs/base/common/uri';
 import { ResourceTextEdit } from 'vs/editor/browser/services/bulkEditService';
 import { DropYieldTo, WorkspaceEdit } from 'vs/editor/common/languages';
 import { Range } from 'vs/editor/common/core/range';
+import { SnippetParser } from 'vs/editor/contrib/snippet/browser/snippetParser';
 
 export interface DropOrPasteEdit {
 	readonly label: string;
@@ -14,14 +15,23 @@ export interface DropOrPasteEdit {
 	readonly additionalEdit?: WorkspaceEdit;
 }
 
+/**
+ * Given a {@link DropOrPasteEdit} and set of ranges, creates a {@link WorkspaceEdit} that applies the insert text from
+ * the {@link DropOrPasteEdit} at each range plus any additional edits.
+ */
 export function createCombinedWorkspaceEdit(uri: URI, ranges: readonly Range[], edit: DropOrPasteEdit): WorkspaceEdit {
+	// If the edit insert text is empty, skip applying at each range
+	if (typeof edit.insertText === 'string' ? edit.insertText === '' : edit.insertText.snippet === '') {
+		return {
+			edits: edit.additionalEdit?.edits ?? []
+		};
+	}
+
 	return {
 		edits: [
 			...ranges.map(range =>
 				new ResourceTextEdit(uri,
-					typeof edit.insertText === 'string'
-						? { range, text: edit.insertText, insertAsSnippet: false }
-						: { range, text: edit.insertText.snippet, insertAsSnippet: true }
+					{ range, text: typeof edit.insertText === 'string' ? SnippetParser.escape(edit.insertText) + '$0' : edit.insertText.snippet, insertAsSnippet: true }
 				)),
 			...(edit.additionalEdit?.edits ?? [])
 		]
diff --git a/src/vs/editor/contrib/dropOrPasteInto/browser/postEditWidget.ts b/src/vs/editor/contrib/dropOrPasteInto/browser/postEditWidget.ts
index af54bdbf846..97287e46c5f 100644
--- a/src/vs/editor/contrib/dropOrPasteInto/browser/postEditWidget.ts
+++ b/src/vs/editor/contrib/dropOrPasteInto/browser/postEditWidget.ts
@@ -11,10 +11,11 @@ import { Event } from 'vs/base/common/event';
 import { Disposable, MutableDisposable, toDisposable } from 'vs/base/common/lifecycle';
 import 'vs/css!./postEditWidget';
 import { ContentWidgetPositionPreference, ICodeEditor, IContentWidget, IContentWidgetPosition } from 'vs/editor/browser/editorBrowser';
-import { IBulkEditResult, IBulkEditService, ResourceTextEdit } from 'vs/editor/browser/services/bulkEditService';
+import { IBulkEditResult, IBulkEditService } from 'vs/editor/browser/services/bulkEditService';
 import { Range } from 'vs/editor/common/core/range';
 import { WorkspaceEdit } from 'vs/editor/common/languages';
 import { TrackedRangeStickiness } from 'vs/editor/common/model';
+import { createCombinedWorkspaceEdit } from 'vs/editor/contrib/dropOrPasteInto/browser/edit';
 import { IContextKey, IContextKeyService, RawContextKey } from 'vs/platform/contextkey/common/contextkey';
 import { IContextMenuService } from 'vs/platform/contextview/browser/contextView';
 import { IInstantiationService } from 'vs/platform/instantiation/common/instantiation';
@@ -166,25 +167,7 @@ export class PostEditWidgetManager extends Disposable {
 			return;
 		}
 
-		let insertTextEdit: ResourceTextEdit[] = [];
-		if (typeof edit.insertText === 'string' ? edit.insertText === '' : edit.insertText.snippet === '') {
-			insertTextEdit = [];
-		} else {
-			insertTextEdit = ranges.map(range => new ResourceTextEdit(model.uri,
-				typeof edit.insertText === 'string'
-					? { range, text: edit.insertText, insertAsSnippet: false }
-					: { range, text: edit.insertText.snippet, insertAsSnippet: true }
-			));
-		}
-
-		const allEdits = [
-			...insertTextEdit,
-			...(edit.additionalEdit?.edits ?? [])
-		];
-
-		const combinedWorkspaceEdit: WorkspaceEdit = {
-			edits: allEdits
-		};
+		const combinedWorkspaceEdit = createCombinedWorkspaceEdit(model.uri, ranges, edit);
 
 		// Use a decoration to track edits around the trigger range
 		const primaryRange = ranges[0];