diff --git a/extensions/html-language-features/server/src/modes/htmlFolding.ts b/extensions/html-language-features/server/src/modes/htmlFolding.ts
index 429dc3ac1a2..c36b27ad3bf 100644
--- a/extensions/html-language-features/server/src/modes/htmlFolding.ts
+++ b/extensions/html-language-features/server/src/modes/htmlFolding.ts
@@ -87,5 +87,14 @@ function limitRanges(ranges: FoldingRange[], maxRanges: number) {
 			entries += n;
 		}
 	}
-	return ranges.filter((r, index) => (typeof nestingLevels[index] === 'number') && nestingLevels[index] < maxLevel);
+	let result = [];
+	for (let i = 0; i < ranges.length; i++) {
+		let level = nestingLevels[i];
+		if (typeof level === 'number') {
+			if (level < maxLevel || (level === maxLevel && entries++ < maxRanges)) {
+				result.push(ranges[i]);
+			}
+		}
+	}
+	return result;
 }
diff --git a/extensions/html-language-features/server/src/test/folding.test.ts b/extensions/html-language-features/server/src/test/folding.test.ts
index 9fe39de7cdc..bf34a7dab05 100644
--- a/extensions/html-language-features/server/src/test/folding.test.ts
+++ b/extensions/html-language-features/server/src/test/folding.test.ts
@@ -204,11 +204,11 @@ suite('HTML Folding', () => {
 		];
 		assertRanges(input, [r(0, 19), r(1, 18), r(2, 3), r(5, 11), r(6, 7), r(9, 10), r(13, 14), r(16, 17)], 'no limit', void 0);
 		assertRanges(input, [r(0, 19), r(1, 18), r(2, 3), r(5, 11), r(6, 7), r(9, 10), r(13, 14), r(16, 17)], 'limit 8', 8);
-		assertRanges(input, [r(0, 19), r(1, 18), r(2, 3), r(5, 11), r(13, 14), r(16, 17)], 'limit 7', 7);
+		assertRanges(input, [r(0, 19), r(1, 18), r(2, 3), r(5, 11), r(6, 7), r(13, 14), r(16, 17)], 'limit 7', 7);
 		assertRanges(input, [r(0, 19), r(1, 18), r(2, 3), r(5, 11), r(13, 14), r(16, 17)], 'limit 6', 6);
-		assertRanges(input, [r(0, 19), r(1, 18)], 'limit 5', 5);
-		assertRanges(input, [r(0, 19), r(1, 18)], 'limit 4', 4);
-		assertRanges(input, [r(0, 19), r(1, 18)], 'limit 3', 3);
+		assertRanges(input, [r(0, 19), r(1, 18), r(2, 3), r(5, 11), r(13, 14)], 'limit 5', 5);
+		assertRanges(input, [r(0, 19), r(1, 18), r(2, 3), r(5, 11)], 'limit 4', 4);
+		assertRanges(input, [r(0, 19), r(1, 18), r(2, 3)], 'limit 3', 3);
 		assertRanges(input, [r(0, 19), r(1, 18)], 'limit 2', 2);
 		assertRanges(input, [r(0, 19)], 'limit 1', 1);
 	});