diff --git a/extensions/git/src/artifactProvider.ts b/extensions/git/src/artifactProvider.ts
index f48d3d74d1a..f6e4c255918 100644
--- a/extensions/git/src/artifactProvider.ts
+++ b/extensions/git/src/artifactProvider.ts
@@ -82,9 +82,9 @@ export class GitArtifactProvider implements SourceControlArtifactProvider, IDisp
 		private readonly logger: LogOutputChannel
 	) {
 		this._groups = [
-			{ id: 'branches', name: l10n.t('Branches'), icon: new ThemeIcon('git-branch') },
-			{ id: 'stashes', name: l10n.t('Stashes'), icon: new ThemeIcon('git-stash') },
-			{ id: 'tags', name: l10n.t('Tags'), icon: new ThemeIcon('tag') }
+			{ id: 'branches', name: l10n.t('Branches'), icon: new ThemeIcon('git-branch'), supportsFolders: true },
+			{ id: 'stashes', name: l10n.t('Stashes'), icon: new ThemeIcon('git-stash'), supportsFolders: false },
+			{ id: 'tags', name: l10n.t('Tags'), icon: new ThemeIcon('tag'), supportsFolders: true }
 		];
 
 		this._disposables.push(this._onDidChangeArtifacts);
diff --git a/src/vs/workbench/api/common/extHost.protocol.ts b/src/vs/workbench/api/common/extHost.protocol.ts
index 7741ad87429..94b0a860bcc 100644
--- a/src/vs/workbench/api/common/extHost.protocol.ts
+++ b/src/vs/workbench/api/common/extHost.protocol.ts
@@ -1752,6 +1752,7 @@ export interface SCMArtifactGroupDto {
 	readonly id: string;
 	readonly name: string;
 	readonly icon?: UriComponents | { light: UriComponents; dark: UriComponents } | ThemeIcon;
+	readonly supportsFolders?: boolean;
 }
 
 export interface SCMArtifactDto {
diff --git a/src/vs/workbench/contrib/scm/browser/scmRepositoriesViewPane.ts b/src/vs/workbench/contrib/scm/browser/scmRepositoriesViewPane.ts
index cc306a6c736..754308fa34e 100644
--- a/src/vs/workbench/contrib/scm/browser/scmRepositoriesViewPane.ts
+++ b/src/vs/workbench/contrib/scm/browser/scmRepositoriesViewPane.ts
@@ -174,6 +174,7 @@ class ArtifactRenderer implements ICompressibleTreeRenderer<SCMArtifactTreeEleme
 		// Label
 		if (isSCMArtifactTreeElement(artifactOrFolder)) {
 			// Artifact
+			const artifactGroup = artifactOrFolder.group;
 			const artifact = artifactOrFolder.artifact;
 
 			const artifactIcon = artifact.icon ?? artifactOrFolder.group.icon;
@@ -181,7 +182,9 @@ class ArtifactRenderer implements ICompressibleTreeRenderer<SCMArtifactTreeEleme
 				? `icon ${ThemeIcon.asClassName(artifactIcon)}`
 				: '';
 
-			const artifactLabel = artifact.name.split('/').pop() ?? artifact.name;
+			const artifactLabel = artifactGroup.supportsFolders
+				? artifact.name.split('/').pop() ?? artifact.name
+				: artifact.name;
 			templateData.label.setLabel(artifactLabel, artifact.description);
 		} else if (isSCMArtifactNode(artifactOrFolder)) {
 			// Folder
@@ -294,24 +297,36 @@ class RepositoryTreeDataSource extends Disposable implements IAsyncDataSource<IS
 			const repository = inputOrElement.repository;
 			const artifacts = await repository.provider.artifactProvider.get()?.provideArtifacts(inputOrElement.artifactGroup.id) ?? [];
 
-			// Create resource tree for artifacts
-			const artifactsTree = new ResourceTree<SCMArtifactTreeElement, SCMArtifactGroupTreeElement>(inputOrElement);
-			for (const artifact of artifacts) {
-				artifactsTree.add(URI.from({
-					scheme: 'scm-artifact', path: artifact.name
-				}), {
+			if (inputOrElement.artifactGroup.supportsFolders) {
+				// Resource tree for artifacts
+				const artifactsTree = new ResourceTree<SCMArtifactTreeElement, SCMArtifactGroupTreeElement>(inputOrElement);
+				for (const artifact of artifacts) {
+					artifactsTree.add(URI.from({
+						scheme: 'scm-artifact', path: artifact.name
+					}), {
+						repository,
+						group: inputOrElement.artifactGroup,
+						artifact,
+						type: 'artifact'
+					});
+				}
+
+				return Iterable.map(artifactsTree.root.children, node => node.element ?? node);
+			}
+
+			// Flat list of artifacts
+			return artifacts.map(artifact => (
+				{
 					repository,
 					group: inputOrElement.artifactGroup,
 					artifact,
 					type: 'artifact'
-				});
-			}
-
-			return Iterable.map(artifactsTree.root.children, node => node.element ?? node);
+				} satisfies SCMArtifactTreeElement
+			));
 		} else if (isSCMArtifactNode(inputOrElement)) {
 			return Iterable.map(inputOrElement.children,
 				node => node.element && node.childrenCount === 0 ? node.element : node);
-		} else if (isSCMArtifactTreeElement(inputOrElement)) { }
+		}
 
 		return [];
 	}
diff --git a/src/vs/workbench/contrib/scm/common/artifact.ts b/src/vs/workbench/contrib/scm/common/artifact.ts
index b70a5220ccc..6cee8d6b19e 100644
--- a/src/vs/workbench/contrib/scm/common/artifact.ts
+++ b/src/vs/workbench/contrib/scm/common/artifact.ts
@@ -18,6 +18,7 @@ export interface ISCMArtifactGroup {
 	readonly id: string;
 	readonly name: string;
 	readonly icon?: URI | { light: URI; dark: URI } | ThemeIcon;
+	readonly supportsFolders?: boolean;
 }
 
 export interface ISCMArtifact {
diff --git a/src/vscode-dts/vscode.proposed.scmArtifactProvider.d.ts b/src/vscode-dts/vscode.proposed.scmArtifactProvider.d.ts
index 271a8d39016..6f79d3932fd 100644
--- a/src/vscode-dts/vscode.proposed.scmArtifactProvider.d.ts
+++ b/src/vscode-dts/vscode.proposed.scmArtifactProvider.d.ts
@@ -21,6 +21,7 @@ declare module 'vscode' {
 		readonly id: string;
 		readonly name: string;
 		readonly icon?: IconPath;
+		readonly supportsFolders?: boolean;
 	}
 
 	export interface SourceControlArtifact {