diff --git a/src/vs/editor/common/languages.ts b/src/vs/editor/common/languages.ts
index 404c668286c..ff67a82364b 100644
--- a/src/vs/editor/common/languages.ts
+++ b/src/vs/editor/common/languages.ts
@@ -839,8 +839,14 @@ export interface InlineCompletionWarning {
 	icon?: IconPath;
 }
 
+export enum InlineCompletionDisplayLocationKind {
+	Code = 1,
+	Label = 2
+}
+
 export interface InlineCompletionDisplayLocation {
 	range: IRange;
+	kind: InlineCompletionDisplayLocationKind;
 	label: string;
 }
 
diff --git a/src/vs/editor/common/standalone/standaloneEnums.ts b/src/vs/editor/common/standalone/standaloneEnums.ts
index 2ff1379faef..d718de32f08 100644
--- a/src/vs/editor/common/standalone/standaloneEnums.ts
+++ b/src/vs/editor/common/standalone/standaloneEnums.ts
@@ -436,6 +436,11 @@ export enum InlayHintKind {
 	Parameter = 2
 }
 
+export enum InlineCompletionDisplayLocationKind {
+	Code = 1,
+	Label = 2
+}
+
 export enum InlineCompletionEndOfLifeReasonKind {
 	Accepted = 0,
 	Rejected = 1,
diff --git a/src/vs/editor/contrib/inlineCompletions/browser/model/inlineCompletionsModel.ts b/src/vs/editor/contrib/inlineCompletions/browser/model/inlineCompletionsModel.ts
index a1787166da0..c3ff6aa21aa 100644
--- a/src/vs/editor/contrib/inlineCompletions/browser/model/inlineCompletionsModel.ts
+++ b/src/vs/editor/contrib/inlineCompletions/browser/model/inlineCompletionsModel.ts
@@ -50,6 +50,7 @@ import { IInlineCompletionsService } from '../../../../browser/services/inlineCo
 import { TypingInterval } from './typingSpeed.js';
 import { StringReplacement } from '../../../../common/core/edits/stringEdit.js';
 import { OffsetRange } from '../../../../common/core/ranges/offsetRange.js';
+import { URI } from '../../../../../base/common/uri.js';
 
 export class InlineCompletionsModel extends Disposable {
 	private readonly _source;
@@ -538,6 +539,7 @@ export class InlineCompletionsModel extends Disposable {
 		inlineEdit: InlineEdit;
 		inlineCompletion: InlineEditItem;
 		cursorAtInlineEdit: IObservable<boolean>;
+		nextEditUri: URI | undefined;
 	} | undefined>({
 		owner: this,
 		equalsFn: (a, b) => {
@@ -571,8 +573,9 @@ export class InlineCompletionsModel extends Disposable {
 
 			const edits = inlineEditResult.updatedEdit;
 			const e = edits ? TextEdit.fromStringEdit(edits, new TextModelText(this.textModel)).replacements : [edit];
-
-			return { kind: 'inlineEdit', inlineEdit, inlineCompletion: inlineEditResult, edits: e, cursorAtInlineEdit };
+			const nextEditUri = (item.inlineEdit?.command?.id === 'vscode.open' || item.inlineEdit?.command?.id === '_workbench.open') &&
+				item.inlineEdit?.command.arguments?.length ? URI.from(item.inlineEdit?.command.arguments[0]) : undefined;
+			return { kind: 'inlineEdit', inlineEdit, inlineCompletion: inlineEditResult, edits: e, cursorAtInlineEdit, nextEditUri };
 		}
 
 		const suggestItem = this._selectedSuggestItem.read(reader);
@@ -819,7 +822,7 @@ export class InlineCompletionsModel extends Disposable {
 		}
 
 		let completion: InlineSuggestionItem;
-
+		let isNextEditUri = false;
 		const state = this.state.get();
 		if (state?.kind === 'ghostText') {
 			if (!state || state.primaryGhostText.isEmpty() || !state.inlineCompletion) {
@@ -828,6 +831,7 @@ export class InlineCompletionsModel extends Disposable {
 			completion = state.inlineCompletion;
 		} else if (state?.kind === 'inlineEdit') {
 			completion = state.inlineCompletion;
+			isNextEditUri = !!state.nextEditUri;
 		} else {
 			return;
 		}
@@ -837,7 +841,9 @@ export class InlineCompletionsModel extends Disposable {
 
 		try {
 			editor.pushUndoStop();
-			if (completion.snippetInfo) {
+			if (isNextEditUri) {
+				// Do nothing
+			} else if (completion.snippetInfo) {
 				const mainEdit = TextReplacement.delete(completion.editRange);
 				const additionalEdits = completion.additionalTextEdits.map(e => new TextReplacement(Range.lift(e.range), e.text ?? ''));
 				const edit = TextEdit.fromParallelReplacementsUnsorted([mainEdit, ...additionalEdits]);
diff --git a/src/vs/editor/contrib/inlineCompletions/browser/model/inlineSuggestionItem.ts b/src/vs/editor/contrib/inlineCompletions/browser/model/inlineSuggestionItem.ts
index 1f759277446..19c7779c1fd 100644
--- a/src/vs/editor/contrib/inlineCompletions/browser/model/inlineSuggestionItem.ts
+++ b/src/vs/editor/contrib/inlineCompletions/browser/model/inlineSuggestionItem.ts
@@ -18,7 +18,7 @@ import { TextReplacement, TextEdit } from '../../../../common/core/edits/textEdi
 import { StringText } from '../../../../common/core/text/abstractText.js';
 import { TextLength } from '../../../../common/core/text/textLength.js';
 import { linesDiffComputers } from '../../../../common/diff/linesDiffComputers.js';
-import { InlineCompletion, InlineCompletionTriggerKind, Command, InlineCompletionWarning, PartialAcceptInfo, InlineCompletionEndOfLifeReason } from '../../../../common/languages.js';
+import { InlineCompletion, InlineCompletionTriggerKind, Command, InlineCompletionWarning, PartialAcceptInfo, InlineCompletionEndOfLifeReason, InlineCompletionDisplayLocationKind } from '../../../../common/languages.js';
 import { ITextModel, EndOfLinePreference } from '../../../../common/model.js';
 import { TextModelText } from '../../../../common/model/textModelText.js';
 import { IDisplayLocation, InlineSuggestData, InlineSuggestionList, PartialAcceptance, SnippetInfo } from './provideInlineCompletions.js';
@@ -160,12 +160,14 @@ class InlineSuggestDisplayLocation implements IDisplayLocation {
 		return new InlineSuggestDisplayLocation(
 			displayLocation.range,
 			displayLocation.label,
+			displayLocation.kind
 		);
 	}
 
 	private constructor(
 		public readonly range: Range,
 		public readonly label: string,
+		public readonly kind: InlineCompletionDisplayLocationKind
 	) { }
 
 	public withEdit(edit: StringEdit, positionOffsetTransformer: PositionOffsetTransformerBase): InlineSuggestDisplayLocation | undefined {
@@ -181,7 +183,7 @@ class InlineSuggestDisplayLocation implements IDisplayLocation {
 
 		const newRange = positionOffsetTransformer.getRange(newOffsetRange);
 
-		return new InlineSuggestDisplayLocation(newRange, this.label);
+		return new InlineSuggestDisplayLocation(newRange, this.label, this.kind);
 	}
 }
 
diff --git a/src/vs/editor/contrib/inlineCompletions/browser/model/provideInlineCompletions.ts b/src/vs/editor/contrib/inlineCompletions/browser/model/provideInlineCompletions.ts
index 97b3d5fed65..a107bc97549 100644
--- a/src/vs/editor/contrib/inlineCompletions/browser/model/provideInlineCompletions.ts
+++ b/src/vs/editor/contrib/inlineCompletions/browser/model/provideInlineCompletions.ts
@@ -16,7 +16,7 @@ import { OffsetRange } from '../../../../common/core/ranges/offsetRange.js';
 import { Position } from '../../../../common/core/position.js';
 import { Range } from '../../../../common/core/range.js';
 import { TextReplacement } from '../../../../common/core/edits/textEdit.js';
-import { InlineCompletionEndOfLifeReason, InlineCompletionEndOfLifeReasonKind, InlineCompletion, InlineCompletionContext, InlineCompletions, InlineCompletionsProvider, PartialAcceptInfo, InlineCompletionsDisposeReason, LifetimeSummary } from '../../../../common/languages.js';
+import { InlineCompletionEndOfLifeReason, InlineCompletionEndOfLifeReasonKind, InlineCompletionDisplayLocationKind, InlineCompletion, InlineCompletionContext, InlineCompletions, InlineCompletionsProvider, PartialAcceptInfo, InlineCompletionsDisposeReason, LifetimeSummary } from '../../../../common/languages.js';
 import { ILanguageConfigurationService } from '../../../../common/languages/languageConfigurationRegistry.js';
 import { ITextModel } from '../../../../common/model.js';
 import { fixBracketsInLine } from '../../../../common/model/bracketPairsTextModelPart/fixBrackets.js';
@@ -226,7 +226,8 @@ function toInlineSuggestData(
 
 	const displayLocation = inlineCompletion.displayLocation ? {
 		range: Range.lift(inlineCompletion.displayLocation.range),
-		label: inlineCompletion.displayLocation.label
+		label: inlineCompletion.displayLocation.label,
+		kind: inlineCompletion.displayLocation.kind
 	} : undefined;
 
 	return new InlineSuggestData(
@@ -457,6 +458,7 @@ export interface SnippetInfo {
 export interface IDisplayLocation {
 	range: Range;
 	label: string;
+	kind: InlineCompletionDisplayLocationKind;
 }
 
 export enum InlineCompletionEditorType {
diff --git a/src/vs/editor/contrib/inlineCompletions/browser/view/inlineEdits/inlineEditsViews/inlineEditsCustomView.ts b/src/vs/editor/contrib/inlineCompletions/browser/view/inlineEdits/inlineEditsViews/inlineEditsCustomView.ts
index 919d7d33c9c..a3e33e326d5 100644
--- a/src/vs/editor/contrib/inlineCompletions/browser/view/inlineEdits/inlineEditsViews/inlineEditsCustomView.ts
+++ b/src/vs/editor/contrib/inlineCompletions/browser/view/inlineEdits/inlineEditsViews/inlineEditsCustomView.ts
@@ -16,7 +16,7 @@ import { LineSource, renderLines, RenderOptions } from '../../../../../../browse
 import { EditorOption } from '../../../../../../common/config/editorOptions.js';
 import { Rect } from '../../../../../../common/core/2d/rect.js';
 import { LineRange } from '../../../../../../common/core/ranges/lineRange.js';
-import { InlineCompletionDisplayLocation } from '../../../../../../common/languages.js';
+import { InlineCompletionDisplayLocation, InlineCompletionDisplayLocationKind } from '../../../../../../common/languages.js';
 import { ILanguageService } from '../../../../../../common/languages/language.js';
 import { LineTokens, TokenArray } from '../../../../../../common/tokens/lineTokens.js';
 import { IInlineEditsView, InlineEditTabAction } from '../inlineEditsViewInterface.js';
@@ -127,7 +127,7 @@ export class InlineEditsCustomView extends Disposable implements IInlineEditsVie
 		return maxOriginalContent + maxModifiedContent + padding < editorWidth - editorContentLeft - editorVerticalScrollbar - minimapWidth;
 	}
 
-	private getState(displayLocation: InlineCompletionDisplayLocation): { rect: IObservable<Rect>; label: string } {
+	private getState(displayLocation: InlineCompletionDisplayLocation): { rect: IObservable<Rect>; label: string; kind: InlineCompletionDisplayLocationKind } {
 
 		const contentState = derived((reader) => {
 			const startLineNumber = displayLocation.range.startLineNumber;
@@ -217,16 +217,17 @@ export class InlineEditsCustomView extends Disposable implements IInlineEditsVie
 
 		return {
 			rect,
-			label: displayLocation.label
+			label: displayLocation.label,
+			kind: displayLocation.kind
 		};
 	}
 
-	private getRendering(state: { rect: IObservable<Rect>; label: string }, styles: IObservable<{ background: string; border: string }>) {
+	private getRendering(state: { rect: IObservable<Rect>; label: string; kind: InlineCompletionDisplayLocationKind }, styles: IObservable<{ background: string; border: string }>) {
 
 		const line = document.createElement('div');
 		const t = this._editor.getModel()!.tokenization.tokenizeLinesAt(1, [state.label])?.[0];
 		let tokens: LineTokens;
-		if (t) {
+		if (t && state.kind === InlineCompletionDisplayLocationKind.Code) {
 			tokens = TokenArray.fromLineTokens(t).toLineTokens(state.label, this._languageService.languageIdCodec);
 		} else {
 			tokens = LineTokens.createEmpty(state.label, this._languageService.languageIdCodec);
diff --git a/src/vs/editor/standalone/browser/standaloneLanguages.ts b/src/vs/editor/standalone/browser/standaloneLanguages.ts
index 98a30838515..c8d6168a566 100644
--- a/src/vs/editor/standalone/browser/standaloneLanguages.ts
+++ b/src/vs/editor/standalone/browser/standaloneLanguages.ts
@@ -806,6 +806,7 @@ export function createMonacoLanguagesAPI(): typeof monaco.languages {
 		PartialAcceptTriggerKind: standaloneEnums.PartialAcceptTriggerKind,
 		HoverVerbosityAction: standaloneEnums.HoverVerbosityAction,
 		InlineCompletionEndOfLifeReasonKind: standaloneEnums.InlineCompletionEndOfLifeReasonKind,
+		InlineCompletionDisplayLocationKind: standaloneEnums.InlineCompletionDisplayLocationKind,
 
 		// classes
 		FoldingRangeKind: languages.FoldingRangeKind,
diff --git a/src/vs/monaco.d.ts b/src/vs/monaco.d.ts
index 1272985c0ba..622d73f9034 100644
--- a/src/vs/monaco.d.ts
+++ b/src/vs/monaco.d.ts
@@ -7534,8 +7534,14 @@ declare namespace monaco.languages {
 		icon?: IconPath;
 	}
 
+	export enum InlineCompletionDisplayLocationKind {
+		Code = 1,
+		Label = 2
+	}
+
 	export interface InlineCompletionDisplayLocation {
 		range: IRange;
+		kind: InlineCompletionDisplayLocationKind;
 		label: string;
 	}
 
diff --git a/src/vs/workbench/api/common/extHost.api.impl.ts b/src/vs/workbench/api/common/extHost.api.impl.ts
index 28ba34128d8..da6c716ab8f 100644
--- a/src/vs/workbench/api/common/extHost.api.impl.ts
+++ b/src/vs/workbench/api/common/extHost.api.impl.ts
@@ -1839,6 +1839,7 @@ export function createApiFactoryAndRegisterActors(accessor: ServicesAccessor): I
 			TextToSpeechStatus: extHostTypes.TextToSpeechStatus,
 			PartialAcceptTriggerKind: extHostTypes.PartialAcceptTriggerKind,
 			InlineCompletionEndOfLifeReasonKind: extHostTypes.InlineCompletionEndOfLifeReasonKind,
+			InlineCompletionDisplayLocationKind: extHostTypes.InlineCompletionDisplayLocationKind,
 			KeywordRecognitionStatus: extHostTypes.KeywordRecognitionStatus,
 			ChatImageMimeType: extHostTypes.ChatImageMimeType,
 			ChatResponseMarkdownPart: extHostTypes.ChatResponseMarkdownPart,
diff --git a/src/vs/workbench/api/common/extHostLanguageFeatures.ts b/src/vs/workbench/api/common/extHostLanguageFeatures.ts
index 89e3235fbe0..3b7d8d34fa2 100644
--- a/src/vs/workbench/api/common/extHostLanguageFeatures.ts
+++ b/src/vs/workbench/api/common/extHostLanguageFeatures.ts
@@ -36,7 +36,7 @@ import { ExtHostDiagnostics } from './extHostDiagnostics.js';
 import { ExtHostDocuments } from './extHostDocuments.js';
 import { ExtHostTelemetry, IExtHostTelemetry } from './extHostTelemetry.js';
 import * as typeConvert from './extHostTypeConverters.js';
-import { CodeAction, CodeActionKind, CompletionList, DataTransfer, Disposable, DocumentDropOrPasteEditKind, DocumentSymbol, InlineCompletionsDisposeReasonKind, InlineCompletionTriggerKind, InternalDataTransferItem, Location, NewSymbolNameTriggerKind, Range, SemanticTokens, SemanticTokensEdit, SemanticTokensEdits, SnippetString, SymbolInformation, SyntaxTokenType } from './extHostTypes.js';
+import { CodeAction, CodeActionKind, CompletionList, DataTransfer, Disposable, DocumentDropOrPasteEditKind, DocumentSymbol, InlineCompletionsDisposeReasonKind, InlineCompletionDisplayLocationKind, InlineCompletionTriggerKind, InternalDataTransferItem, Location, NewSymbolNameTriggerKind, Range, SemanticTokens, SemanticTokensEdit, SemanticTokensEdits, SnippetString, SymbolInformation, SyntaxTokenType } from './extHostTypes.js';
 
 // --- adapter
 
@@ -1431,6 +1431,7 @@ class InlineCompletionAdapter {
 					displayLocation: (item.displayLocation && this._isAdditionsProposedApiEnabled) ? {
 						range: typeConvert.Range.from(item.displayLocation.range),
 						label: item.displayLocation.label,
+						kind: item.displayLocation.kind ? typeConvert.InlineCompletionDisplayLocationKind.from(item.displayLocation.kind) : InlineCompletionDisplayLocationKind.Code,
 					} : undefined,
 					warning: (item.warning && this._isAdditionsProposedApiEnabled) ? {
 						message: typeConvert.MarkdownString.from(item.warning.message),
diff --git a/src/vs/workbench/api/common/extHostTypeConverters.ts b/src/vs/workbench/api/common/extHostTypeConverters.ts
index 78b66ea6f50..326ff5cd5d0 100644
--- a/src/vs/workbench/api/common/extHostTypeConverters.ts
+++ b/src/vs/workbench/api/common/extHostTypeConverters.ts
@@ -3435,6 +3435,25 @@ export namespace InlineCompletionEndOfLifeReason {
 	}
 }
 
+export namespace InlineCompletionDisplayLocationKind {
+	export function from(value: vscode.InlineCompletionDisplayLocationKind): types.InlineCompletionDisplayLocationKind {
+		if (value === types.InlineCompletionDisplayLocationKind.Label) {
+			return types.InlineCompletionDisplayLocationKind.Label;
+		} else {
+			return types.InlineCompletionDisplayLocationKind.Code;
+		}
+	}
+
+	export function to(kind: languages.InlineCompletionDisplayLocationKind): types.InlineCompletionDisplayLocationKind {
+		switch (kind) {
+			case languages.InlineCompletionDisplayLocationKind.Label:
+				return types.InlineCompletionDisplayLocationKind.Label;
+			default:
+				return types.InlineCompletionDisplayLocationKind.Code;
+		}
+	}
+}
+
 export namespace DebugTreeItem {
 	export function from(item: vscode.DebugTreeItem, id: number): IDebugVisualizationTreeItem {
 		return {
diff --git a/src/vs/workbench/api/common/extHostTypes.ts b/src/vs/workbench/api/common/extHostTypes.ts
index cce0d4b72c9..5b8681cba9b 100644
--- a/src/vs/workbench/api/common/extHostTypes.ts
+++ b/src/vs/workbench/api/common/extHostTypes.ts
@@ -1872,6 +1872,11 @@ export enum InlineCompletionEndOfLifeReasonKind {
 	Ignored = 2,
 }
 
+export enum InlineCompletionDisplayLocationKind {
+	Code = 1,
+	Label = 2
+}
+
 export enum ViewColumn {
 	Active = -1,
 	Beside = -2,
diff --git a/src/vscode-dts/vscode.proposed.inlineCompletionsAdditions.d.ts b/src/vscode-dts/vscode.proposed.inlineCompletionsAdditions.d.ts
index 88a7698a157..8c91e6850f0 100644
--- a/src/vscode-dts/vscode.proposed.inlineCompletionsAdditions.d.ts
+++ b/src/vscode-dts/vscode.proposed.inlineCompletionsAdditions.d.ts
@@ -48,8 +48,14 @@ declare module 'vscode' {
 		displayLocation?: InlineCompletionDisplayLocation;
 	}
 
+	export enum InlineCompletionDisplayLocationKind {
+		Code = 1,
+		Label = 2
+	}
+
 	export interface InlineCompletionDisplayLocation {
 		range: Range;
+		kind: InlineCompletionDisplayLocationKind;
 		label: string;
 	}