diff --git a/src/vs/base/browser/ui/splitview/splitview.ts b/src/vs/base/browser/ui/splitview/splitview.ts
index 2c72bd8d869..c6ac50b2ded 100644
--- a/src/vs/base/browser/ui/splitview/splitview.ts
+++ b/src/vs/base/browser/ui/splitview/splitview.ts
@@ -908,18 +908,13 @@ export class SplitView<TLayoutContext = undefined, TView extends IView<TLayoutCo
 			container.classList.add('visible');
 		}
 
-		// 6. Clip overflow on the animating container so that the view
-		//    content (rendered at its full target size) is revealed/hidden
-		//    smoothly as the container width animates.
-		container.style.overflow = 'hidden';
-
-		// The target size is the full (non-zero) panel size. During
-		// animation we re-layout the animating view at this fixed size
-		// after each frame so its content never reflows at intermediate
-		// widths/heights (prevents chat, extension icons, etc. from
-		// jumping around). Sibling views still receive interpolated sizes
-		// so the editor / bottom panel remain responsive.
-		const viewTargetSize = visible ? finalSizes[index] : startSizes[index];
+		// 6. Clip overflow on the target container while it shrinks.
+		//    Only apply for HIDE animations - for SHOW, we leave overflow alone
+		//    so that box-shadow / visual effects on the child Part are not clipped
+		//    by the parent container during the animation.
+		if (!visible) {
+			container.style.overflow = 'hidden';
+		}
 
 		// 6b. Set initial opacity for fade effect
 		container.style.opacity = visible ? '0' : '1';
@@ -930,12 +925,6 @@ export class SplitView<TLayoutContext = undefined, TView extends IView<TLayoutCo
 
 		// 8. Render the start state
 		this.layoutViews();
-		try {
-			this.viewItems[index].view.layout(viewTargetSize, 0, this.layoutContext);
-		} catch (e) {
-			console.error('Splitview: Failed to layout view during animation');
-			console.error(e);
-		}
 
 		// 9. Easing curve is pre-parsed - ready for JS evaluation
 
@@ -945,9 +934,9 @@ export class SplitView<TLayoutContext = undefined, TView extends IView<TLayoutCo
 				this.viewItems[i].size = finalSizes[i];
 			}
 			container.style.opacity = '';
-			container.style.overflow = '';
 			if (!visible) {
 				container.classList.remove('visible');
+				container.style.overflow = '';
 			}
 			this.layoutViews();
 			this.saveProportions();
@@ -1007,16 +996,6 @@ export class SplitView<TLayoutContext = undefined, TView extends IView<TLayoutCo
 
 			this.layoutViews();
 
-			// Re-layout the animating view at its full target size so its
-			// content does not reflow at intermediate sizes. The container
-			// is already at the interpolated size with overflow:hidden.
-			try {
-				this.viewItems[index].view.layout(viewTargetSize, 0, this.layoutContext);
-			} catch (e) {
-				console.error('Splitview: Failed to layout view during animation');
-				console.error(e);
-			}
-
 			if (t < 1) {
 				rafId = window.requestAnimationFrame(animate);
 			} else {