diff --git a/extensions/notebook-renderers/src/index.ts b/extensions/notebook-renderers/src/index.ts
index 332faeb0226..f24776d1624 100644
--- a/extensions/notebook-renderers/src/index.ts
+++ b/extensions/notebook-renderers/src/index.ts
@@ -31,6 +31,7 @@ interface JavaScriptRenderingHook {
 interface RenderOptions {
 	readonly lineLimit: number;
 	readonly outputScrolling: boolean;
+	readonly outputWordWrap: boolean;
 }
 
 function clearContainer(container: HTMLElement) {
@@ -149,6 +150,9 @@ function renderError(outputInfo: OutputItem, container: HTMLElement, ctx: Render
 	if (err.stack) {
 		const stack = document.createElement('pre');
 		stack.classList.add('traceback');
+		if (ctx.settings.outputWordWrap) {
+			stack.classList.add('wordWrap');
+		}
 		stack.style.margin = '8px 0';
 		const element = document.createElement('span');
 		insertOutput(outputInfo.id, [err.stack ?? ''], ctx.settings.lineLimit, false, element, true);
@@ -190,6 +194,11 @@ function renderStream(outputInfo: OutputItem, container: HTMLElement, error: boo
 			const text = outputInfo.text();
 			const element = existing ?? document.createElement('span');
 			element.classList.add('output-stream');
+			if (ctx.settings.outputWordWrap) {
+				element.classList.add('wordWrap');
+			} else {
+				element.classList.remove('wordWrap');
+			}
 			element.setAttribute('output-item-id', outputInfo.id);
 			insertOutput(outputInfo.id, [text], ctx.settings.lineLimit, ctx.settings.outputScrolling, element, false);
 			outputElement.appendChild(element);
@@ -199,6 +208,9 @@ function renderStream(outputInfo: OutputItem, container: HTMLElement, error: boo
 
 	const element = document.createElement('span');
 	element.classList.add('output-stream');
+	if (ctx.settings.outputWordWrap) {
+		element.classList.add('wordWrap');
+	}
 	element.setAttribute('output-item-id', outputInfo.id);
 
 	const text = outputInfo.text();
@@ -217,6 +229,9 @@ function renderText(outputInfo: OutputItem, container: HTMLElement, ctx: Rendere
 	clearContainer(container);
 	const contentNode = document.createElement('div');
 	contentNode.classList.add('output-plaintext');
+	if (ctx.settings.outputWordWrap) {
+		contentNode.classList.add('wordWrap');
+	}
 	const text = outputInfo.text();
 	insertOutput(outputInfo.id, [text], ctx.settings.lineLimit, ctx.settings.outputScrolling, contentNode, false);
 	container.appendChild(contentNode);
@@ -244,6 +259,12 @@ export const activate: ActivationFunction<void> = (ctx) => {
 		-ms-user-select: text;
 		cursor: auto;
 	}
+	.output-plaintext.wordWrap span,
+	.output-stream.wordWrap span,
+	.traceback.wordWrap span {
+		white-space: pre-wrap !important;
+		word-break: break-all;
+	}
 	.output-plaintext,
 	.output-stream {
 		white-space: pre-wrap;
diff --git a/src/vs/workbench/contrib/notebook/browser/notebook.contribution.ts b/src/vs/workbench/contrib/notebook/browser/notebook.contribution.ts
index 238b5e2880c..6ea12228fbc 100644
--- a/src/vs/workbench/contrib/notebook/browser/notebook.contribution.ts
+++ b/src/vs/workbench/contrib/notebook/browser/notebook.contribution.ts
@@ -892,7 +892,13 @@ configurationRegistry.registerConfiguration({
 			type: 'boolean',
 			tags: ['notebookLayout'],
 			default: false
-		}
+		},
+		[NotebookSetting.outputWordWrap]: {
+			markdownDescription: nls.localize('notebook.outputWordWrap', "Controls whether the lines in output should wrap."),
+			type: 'boolean',
+			tags: ['notebookLayout'],
+			default: false
+		},
 	}
 });
 
diff --git a/src/vs/workbench/contrib/notebook/browser/notebookOptions.ts b/src/vs/workbench/contrib/notebook/browser/notebookOptions.ts
index 3df4dcbe2b7..e9d1ef61314 100644
--- a/src/vs/workbench/contrib/notebook/browser/notebookOptions.ts
+++ b/src/vs/workbench/contrib/notebook/browser/notebookOptions.ts
@@ -75,6 +75,7 @@ export interface NotebookLayoutConfiguration {
 	focusIndicatorGap: number;
 	interactiveWindowCollapseCodeCells: InteractiveWindowCollapseCodeCells;
 	outputScrolling: boolean;
+	outputWordWrap: boolean;
 	outputLineLimit: number;
 }
 
@@ -154,6 +155,7 @@ export class NotebookOptions extends Disposable {
 		const interactiveWindowCollapseCodeCells: InteractiveWindowCollapseCodeCells = this.configurationService.getValue(NotebookSetting.interactiveWindowCollapseCodeCells);
 		const outputLineHeight = this._computeOutputLineHeight();
 		const outputScrolling = this.configurationService.getValue<boolean>(NotebookSetting.outputScrolling);
+		const outputWordWrap = this.configurationService.getValue<boolean>(NotebookSetting.outputWordWrap);
 		const outputLineLimit = this.configurationService.getValue<number>(NotebookSetting.textOutputLineLimit) ?? 30;
 
 		this._layoutConfiguration = {
@@ -193,6 +195,7 @@ export class NotebookOptions extends Disposable {
 			interactiveWindowCollapseCodeCells,
 			markdownFoldHintHeight: 22,
 			outputScrolling: outputScrolling,
+			outputWordWrap: outputWordWrap,
 			outputLineLimit: outputLineLimit
 		};
 
@@ -582,6 +585,7 @@ export class NotebookOptions extends Disposable {
 			markupFontSize: this._layoutConfiguration.markupFontSize,
 			outputLineHeight: this._layoutConfiguration.outputLineHeight,
 			outputScrolling: this._layoutConfiguration.outputScrolling,
+			outputWordWrap: this._layoutConfiguration.outputWordWrap,
 			outputLineLimit: this._layoutConfiguration.outputLineLimit,
 		};
 	}
@@ -602,6 +606,7 @@ export class NotebookOptions extends Disposable {
 			markupFontSize: this._layoutConfiguration.markupFontSize,
 			outputLineHeight: this._layoutConfiguration.outputLineHeight,
 			outputScrolling: this._layoutConfiguration.outputScrolling,
+			outputWordWrap: this._layoutConfiguration.outputWordWrap,
 			outputLineLimit: this._layoutConfiguration.outputLineLimit,
 		};
 	}
diff --git a/src/vs/workbench/contrib/notebook/browser/view/renderers/backLayerWebView.ts b/src/vs/workbench/contrib/notebook/browser/view/renderers/backLayerWebView.ts
index bfbb1132eaf..cac752e9192 100644
--- a/src/vs/workbench/contrib/notebook/browser/view/renderers/backLayerWebView.ts
+++ b/src/vs/workbench/contrib/notebook/browser/view/renderers/backLayerWebView.ts
@@ -107,6 +107,7 @@ interface BacklayerWebviewOptions {
 	readonly markupFontSize: number;
 	readonly outputLineHeight: number;
 	readonly outputScrolling: boolean;
+	readonly outputWordWrap: boolean;
 	readonly outputLineLimit: number;
 }
 
@@ -264,7 +265,8 @@ export class BackLayerWebView<T extends ICommonCellInfo> extends Themable {
 		const preloadsData = this.getStaticPreloadsData();
 		const renderOptions = {
 			lineLimit: this.options.outputLineLimit,
-			outputScrolling: this.options.outputScrolling
+			outputScrolling: this.options.outputScrolling,
+			outputWordWrap: this.options.outputWordWrap
 		};
 		const preloadScript = preloadsScriptStr(
 			this.options,
diff --git a/src/vs/workbench/contrib/notebook/browser/view/renderers/webviewPreloads.ts b/src/vs/workbench/contrib/notebook/browser/view/renderers/webviewPreloads.ts
index 485b6f262cc..50dd53e28aa 100644
--- a/src/vs/workbench/contrib/notebook/browser/view/renderers/webviewPreloads.ts
+++ b/src/vs/workbench/contrib/notebook/browser/view/renderers/webviewPreloads.ts
@@ -67,6 +67,7 @@ export interface PreloadOptions {
 export interface RenderOptions {
 	readonly lineLimit: number;
 	readonly outputScrolling: boolean;
+	readonly outputWordWrap: boolean;
 }
 
 interface PreloadContext {
@@ -89,6 +90,7 @@ async function webviewPreloads(ctx: PreloadContext) {
 	let isWorkspaceTrusted = ctx.isWorkspaceTrusted;
 	const lineLimit = ctx.renderOptions.lineLimit;
 	const outputScrolling = ctx.renderOptions.outputScrolling;
+	const outputWordWrap = ctx.renderOptions.outputWordWrap;
 
 	const acquireVsCodeApi = globalThis.acquireVsCodeApi;
 	const vscode = acquireVsCodeApi();
@@ -1353,6 +1355,7 @@ async function webviewPreloads(ctx: PreloadContext) {
 				settings: {
 					get lineLimit() { return lineLimit; },
 					get outputScrolling() { return outputScrolling; },
+					get outputWordWrap() { return outputWordWrap; },
 				}
 			};
 
diff --git a/src/vs/workbench/contrib/notebook/common/notebookCommon.ts b/src/vs/workbench/contrib/notebook/common/notebookCommon.ts
index 3c349b700fc..1cc134ca882 100644
--- a/src/vs/workbench/contrib/notebook/common/notebookCommon.ts
+++ b/src/vs/workbench/contrib/notebook/common/notebookCommon.ts
@@ -929,6 +929,7 @@ export const NotebookSetting = {
 	outputFontFamily: 'notebook.outputFontFamily',
 	kernelPickerType: 'notebook.kernelPicker.type',
 	outputScrolling: 'notebook.experimental.outputScrolling',
+	outputWordWrap: 'notebook.output.wordWrap',
 	logging: 'notebook.logging',
 } as const;