diff --git a/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts b/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
index b2ad0fd9c2d..113a0b01470 100644
--- a/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
+++ b/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
@@ -17,6 +17,7 @@ import { StopWatch } from '../../../../base/common/stopwatch.js';
 import { assertType } from '../../../../base/common/types.js';
 import { generateUuid } from '../../../../base/common/uuid.js';
 import { ICodeEditor, isCodeEditor } from '../../../../editor/browser/editorBrowser.js';
+import { EditorOption } from '../../../../editor/common/config/editorOptions.js';
 import { IPosition, Position } from '../../../../editor/common/core/position.js';
 import { IRange, Range } from '../../../../editor/common/core/range.js';
 import { ISelection, Selection, SelectionDirection } from '../../../../editor/common/core/selection.js';
@@ -591,8 +592,19 @@ export class InlineChatController implements IEditorContribution {
 		const progressiveEditsClock = StopWatch.create();
 		const progressiveEditsQueue = new Queue();
 
-		let next: State.WAIT_FOR_INPUT | State.SHOW_REQUEST | State.CANCEL | State.PAUSE | State.ACCEPT = State.WAIT_FOR_INPUT;
+		// disable typing and squiggles while streaming a reply
+		const origDeco = this._editor.getOption(EditorOption.renderValidationDecorations);
+		this._editor.updateOptions({
+			renderValidationDecorations: 'off'
+		});
+		store.add(toDisposable(() => {
+			this._editor.updateOptions({
+				renderValidationDecorations: origDeco
+			});
+		}));
 
+
+		let next: State.WAIT_FOR_INPUT | State.SHOW_REQUEST | State.CANCEL | State.PAUSE | State.ACCEPT = State.WAIT_FOR_INPUT;
 		store.add(Event.once(this._messages.event)(message => {
 			this._log('state=_makeRequest) message received', message);
 			this._chatService.cancelCurrentRequestForSession(chatModel.sessionId);
diff --git a/src/vs/workbench/contrib/inlineChat/browser/inlineChatCurrentLine.ts b/src/vs/workbench/contrib/inlineChat/browser/inlineChatCurrentLine.ts
index dfd271fa79b..884bdc4208e 100644
--- a/src/vs/workbench/contrib/inlineChat/browser/inlineChatCurrentLine.ts
+++ b/src/vs/workbench/contrib/inlineChat/browser/inlineChatCurrentLine.ts
@@ -184,6 +184,12 @@ export class InlineChatHintsController extends Disposable implements IEditorCont
 
 		const ghostCtrl = InlineCompletionsController.get(editor);
 
+		this._store.add(commandService.onWillExecuteCommand(e => {
+			if (e.commandId === _inlineChatActionId || e.commandId === ACTION_START) {
+				this.hide();
+			}
+		}));
+
 		this._store.add(this._editor.onMouseDown(e => {
 			if (e.target.type !== MouseTargetType.CONTENT_TEXT) {
 				return;
@@ -227,12 +233,13 @@ export class InlineChatHintsController extends Disposable implements IEditorCont
 
 			const visible = this._visibilityObs.read(r);// || this._ctxMenuVisibleObs.read(r);
 			const isEol = model.getLineMaxColumn(position.lineNumber) === position.column;
-			const isWhitespace = model.getLineLastNonWhitespaceColumn(position.lineNumber) === 0 && model.getValueLength() > 0;
+			const isWhitespace = model.getLineLastNonWhitespaceColumn(position.lineNumber) === 0 && model.getValueLength() > 0 && position.column > 1;
 
-			const shouldShow = (isWhitespace && _configurationService.getValue(InlineChatConfigKeys.LineEmptyHint))
-				|| (visible && isEol && _configurationService.getValue(InlineChatConfigKeys.LineSuffixHint));
+			if (isWhitespace && !_configurationService.getValue(InlineChatConfigKeys.LineEmptyHint)) {
+				return undefined;
+			}
 
-			if (!shouldShow) {
+			if (!visible || !isEol || !_configurationService.getValue(InlineChatConfigKeys.LineSuffixHint)) {
 				return undefined;
 			}
 
diff --git a/src/vs/workbench/contrib/inlineChat/test/browser/inlineChatController.test.ts b/src/vs/workbench/contrib/inlineChat/test/browser/inlineChatController.test.ts
index 708a821ba7d..7ef2b96f657 100644
--- a/src/vs/workbench/contrib/inlineChat/test/browser/inlineChatController.test.ts
+++ b/src/vs/workbench/contrib/inlineChat/test/browser/inlineChatController.test.ts
@@ -71,7 +71,7 @@ import { ITextModelService } from '../../../../../editor/common/services/resolve
 import { TextModelResolverService } from '../../../../services/textmodelResolver/common/textModelResolverService.js';
 import { ChatInputBoxContentProvider } from '../../../chat/browser/chatEdinputInputContentProvider.js';
 
-suite('InteractiveChatController', function () {
+suite('InlineChatController', function () {
 
 	const agentData = {
 		extensionId: nullExtensionDescription.identifier,
diff --git a/test/unit/electron/renderer.js b/test/unit/electron/renderer.js
index 9dd1b2174ec..7c28a98930c 100644
--- a/test/unit/electron/renderer.js
+++ b/test/unit/electron/renderer.js
@@ -211,7 +211,7 @@ async function loadTests(opts) {
 	]);
 
 	const _allowedSuitesWithOutput = new Set([
-		'InteractiveChatController'
+		'InlineChatController'
 	]);
 
 	let _testsWithUnexpectedOutput = false;