diff --git a/extensions/emmet/package.json b/extensions/emmet/package.json
index 659be1e0fce..c256b4fa64f 100644
--- a/extensions/emmet/package.json
+++ b/extensions/emmet/package.json
@@ -16,6 +16,9 @@
     "type": "git",
     "url": "https://github.com/microsoft/vscode.git"
   },
+  "enabledApiProposals": [
+    "inlineCompletionsNew"
+  ],
   "activationEvents": [
     "onCommand:emmet.expandAbbreviation",
     "onCommand:editor.emmet.action.wrapWithAbbreviation",
@@ -127,6 +130,11 @@
           "default": false,
           "markdownDescription": "%emmetTriggerExpansionOnTab%"
         },
+        "emmet.useInlineCompletions": {
+          "type": "boolean",
+          "default": true,
+          "markdownDescription": "%emmetUseInlineCompletions%"
+        },
         "emmet.preferences": {
           "type": "object",
           "default": {},
diff --git a/extensions/emmet/package.nls.json b/extensions/emmet/package.nls.json
index 1cac53a6081..3de8f3205c1 100644
--- a/extensions/emmet/package.nls.json
+++ b/extensions/emmet/package.nls.json
@@ -59,5 +59,6 @@
 	"emmetPreferencesOutputInlineBreak": "The number of sibling inline elements needed for line breaks to be placed between those elements. If `0`, inline elements are always expanded onto a single line.",
 	"emmetPreferencesOutputReverseAttributes": "If `true`, reverses attribute merging directions when resolving snippets.",
 	"emmetPreferencesOutputSelfClosingStyle": "Style of self-closing tags: html (`<br>`), xml (`<br/>`) or xhtml (`<br />`).",
-	"emmetPreferencesCssColorShort": "If `true`, color values like `#f` will be expanded to `#fff` instead of `#ffffff`."
+	"emmetPreferencesCssColorShort": "If `true`, color values like `#f` will be expanded to `#fff` instead of `#ffffff`.",
+	"emmetUseInlineCompletions": "If `true`, Emmet will use inline completions to suggest expansions."
 }
diff --git a/extensions/emmet/src/emmetCommon.ts b/extensions/emmet/src/emmetCommon.ts
index 5a5e0d872c3..82a32ac9b4e 100644
--- a/extensions/emmet/src/emmetCommon.ts
+++ b/extensions/emmet/src/emmetCommon.ts
@@ -23,7 +23,7 @@ import { addFileToParseCache, clearParseCache, removeFileFromParseCache } from '
 
 export function activateEmmetExtension(context: vscode.ExtensionContext) {
 	migrateEmmetExtensionsPath();
-	registerCompletionProviders(context);
+	refreshCompletionProviders(context);
 	updateEmmetExtensionsPath();
 
 	context.subscriptions.push(vscode.commands.registerCommand('editor.emmet.action.wrapWithAbbreviation', (args) => {
@@ -122,8 +122,8 @@ export function activateEmmetExtension(context: vscode.ExtensionContext) {
 	}));
 
 	context.subscriptions.push(vscode.workspace.onDidChangeConfiguration((e) => {
-		if (e.affectsConfiguration('emmet.includeLanguages')) {
-			registerCompletionProviders(context);
+		if (e.affectsConfiguration('emmet.includeLanguages') || e.affectsConfiguration('emmet.useInlineCompletions')) {
+			refreshCompletionProviders(context);
 		}
 		if (e.affectsConfiguration('emmet.extensionsPath')) {
 			updateEmmetExtensionsPath();
@@ -159,11 +159,42 @@ export function activateEmmetExtension(context: vscode.ExtensionContext) {
  */
 const languageMappingForCompletionProviders: Map<string, string> = new Map<string, string>();
 const completionProvidersMapping: Map<string, vscode.Disposable> = new Map<string, vscode.Disposable>();
+const completionProviderDisposables: vscode.Disposable[] = [];
 
-function registerCompletionProviders(context: vscode.ExtensionContext) {
-	let completionProvider = new DefaultCompletionItemProvider();
-	let includedLanguages = getMappingForIncludedLanguages();
+function refreshCompletionProviders(_: vscode.ExtensionContext) {
+	clearCompletionProviderInfo();
 
+	const completionProvider = new DefaultCompletionItemProvider();
+	const inlineCompletionProvider: vscode.InlineCompletionItemProviderNew = {
+		async provideInlineCompletionItems(document: vscode.TextDocument, position: vscode.Position, _: vscode.InlineCompletionContextNew, token: vscode.CancellationToken) {
+			const items = await completionProvider.provideCompletionItems(document, position, token, { triggerCharacter: undefined, triggerKind: vscode.CompletionTriggerKind.Invoke });
+			if (!items) {
+				return undefined;
+			}
+			const item = items.items[0];
+			if (!item) {
+				return undefined;
+			}
+			const range = item.range as vscode.Range;
+
+			if (document.getText(range) !== item.label) {
+				// We only want to show an inline completion if we are really sure the user meant emmet.
+				// If the user types `d`, we don't want to suggest `<div></div>`.
+				return undefined;
+			}
+
+			return [
+				{
+					insertText: item.insertText as any,
+					filterText: item.label as any,
+					range
+				}
+			];
+		}
+	};
+
+	const useInlineCompletionProvider = vscode.workspace.getConfiguration('emmet').get<boolean>('useInlineCompletions');
+	const includedLanguages = getMappingForIncludedLanguages();
 	Object.keys(includedLanguages).forEach(language => {
 		if (languageMappingForCompletionProviders.has(language) && languageMappingForCompletionProviders.get(language) === includedLanguages[language]) {
 			return;
@@ -178,8 +209,13 @@ function registerCompletionProviders(context: vscode.ExtensionContext) {
 			completionProvidersMapping.delete(language);
 		}
 
-		const provider = vscode.languages.registerCompletionItemProvider({ language, scheme: '*' }, completionProvider, ...LANGUAGE_MODES[includedLanguages[language]]);
-		context.subscriptions.push(provider);
+		let provider;
+		if (useInlineCompletionProvider) {
+			provider = vscode.languages.registerInlineCompletionItemProviderNew({ language, scheme: '*' }, inlineCompletionProvider);
+		} else {
+			provider = vscode.languages.registerCompletionItemProvider({ language, scheme: '*' }, completionProvider, ...LANGUAGE_MODES[includedLanguages[language]]);
+		}
+		completionProviderDisposables.push(provider);
 
 		languageMappingForCompletionProviders.set(language, includedLanguages[language]);
 		completionProvidersMapping.set(language, provider);
@@ -187,8 +223,13 @@ function registerCompletionProviders(context: vscode.ExtensionContext) {
 
 	Object.keys(LANGUAGE_MODES).forEach(language => {
 		if (!languageMappingForCompletionProviders.has(language)) {
-			const provider = vscode.languages.registerCompletionItemProvider({ language, scheme: '*' }, completionProvider, ...LANGUAGE_MODES[language]);
-			context.subscriptions.push(provider);
+			let provider;
+			if (useInlineCompletionProvider) {
+				provider = vscode.languages.registerInlineCompletionItemProviderNew({ language, scheme: '*' }, inlineCompletionProvider);
+			} else {
+				provider = vscode.languages.registerCompletionItemProvider({ language, scheme: '*' }, completionProvider, ...LANGUAGE_MODES[language]);
+			}
+			completionProviderDisposables.push(provider);
 
 			languageMappingForCompletionProviders.set(language, language);
 			completionProvidersMapping.set(language, provider);
@@ -196,7 +237,16 @@ function registerCompletionProviders(context: vscode.ExtensionContext) {
 	});
 }
 
-export function deactivate() {
+function clearCompletionProviderInfo() {
+	languageMappingForCompletionProviders.clear();
 	completionProvidersMapping.clear();
+	let disposable: vscode.Disposable | undefined;
+	while (disposable = completionProviderDisposables.pop()) {
+		disposable.dispose();
+	}
+}
+
+export function deactivate() {
+	clearCompletionProviderInfo();
 	clearParseCache();
 }
diff --git a/extensions/emmet/tsconfig.json b/extensions/emmet/tsconfig.json
index 994fa239537..ad07467f4ea 100644
--- a/extensions/emmet/tsconfig.json
+++ b/extensions/emmet/tsconfig.json
@@ -9,6 +9,7 @@
 	],
 	"include": [
 		"src/**/*",
-		"../../src/vscode-dts/vscode.d.ts"
+		"../../src/vscode-dts/vscode.d.ts",
+		"../../src/vscode-dts/vscode.proposed.inlineCompletionsNew.d.ts",
 	]
 }