diff --git a/src/vs/workbench/contrib/inlineChat/browser/inlineChatAffordance.ts b/src/vs/workbench/contrib/inlineChat/browser/inlineChatAffordance.ts
index 961c1943e74..a5f6a2ad803 100644
--- a/src/vs/workbench/contrib/inlineChat/browser/inlineChatAffordance.ts
+++ b/src/vs/workbench/contrib/inlineChat/browser/inlineChatAffordance.ts
@@ -120,6 +120,13 @@ export class InlineChatAffordance extends Disposable {
 			selectionData.set(undefined, undefined);
 		}));
 
+		// Hide when the editor loses focus (e.g., switching tabs in notebooks)
+		this._store.add(autorun(r => {
+			if (!editorObs.isFocused.read(r)) {
+				selectionData.set(undefined, undefined);
+			}
+		}));
+
 		this._store.add(autorun(r => {
 			const sel = selectionData.read(r);
 			const mode = affordance.read(r);