diff --git a/src/vs/editor/contrib/inlayHints/inlayHintsController.ts b/src/vs/editor/contrib/inlayHints/inlayHintsController.ts
index f8eb34909b3..78df5d4d66f 100644
--- a/src/vs/editor/contrib/inlayHints/inlayHintsController.ts
+++ b/src/vs/editor/contrib/inlayHints/inlayHintsController.ts
@@ -258,13 +258,12 @@ export class InlayHintsController implements IEditorContribution {
 			const label = this._getInlayHintLabelPart(e);
 			if (label) {
 				const part = label.part;
-				if (languages.Command.is(part.command)) {
-					// command -> execute it
-					this._commandService.executeCommand(part.command.id, ...(part.command.arguments ?? [])).catch(err => this._notificationService.error(err));
-
-				} else if (part.location) {
+				if (part.location) {
 					// location -> execute go to def
 					this._instaService.invokeFunction(goToDefinitionWithLocation, e, this._editor as IActiveCodeEditor, part.location);
+				} else if (languages.Command.is(part.command)) {
+					// command -> execute it
+					this._commandService.executeCommand(part.command.id, ...(part.command.arguments ?? [])).catch(err => this._notificationService.error(err));
 				}
 			}
 		});
diff --git a/src/vs/editor/contrib/inlayHints/inlayHintsLocations.ts b/src/vs/editor/contrib/inlayHints/inlayHintsLocations.ts
index 356863216f8..c7f94c1b7ab 100644
--- a/src/vs/editor/contrib/inlayHints/inlayHintsLocations.ts
+++ b/src/vs/editor/contrib/inlayHints/inlayHintsLocations.ts
@@ -4,7 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 import * as dom from 'vs/base/browser/dom';
-import { Action, IAction } from 'vs/base/common/actions';
+import { Action, IAction, Separator } from 'vs/base/common/actions';
 import { CancellationToken } from 'vs/base/common/cancellation';
 import { IActiveCodeEditor, ICodeEditor } from 'vs/editor/browser/editorBrowser';
 import { EditorExtensionsRegistry } from 'vs/editor/browser/editorExtensions';
@@ -17,6 +17,7 @@ import { ClickLinkMouseEvent } from 'vs/editor/contrib/gotoSymbol/link/clickLink
 import { RenderedInlayHintLabelPart } from 'vs/editor/contrib/inlayHints/inlayHintsController';
 import { PeekContext } from 'vs/editor/contrib/peekView/peekView';
 import { isIMenuItem, MenuId, MenuRegistry } from 'vs/platform/actions/common/actions';
+import { ICommandService } from 'vs/platform/commands/common/commands';
 import { IContextKeyService } from 'vs/platform/contextkey/common/contextkey';
 import { IContextMenuService } from 'vs/platform/contextview/browser/contextView';
 import { IInstantiationService, ServicesAccessor } from 'vs/platform/instantiation/common/instantiation';
@@ -25,6 +26,7 @@ export async function showGoToContextMenu(accessor: ServicesAccessor, editor: IC
 
 	const resolverService = accessor.get(ITextModelService);
 	const contextMenuService = accessor.get(IContextMenuService);
+	const commandService = accessor.get(ICommandService);
 	const instaService = accessor.get(IInstantiationService);
 
 	await part.item.resolve(CancellationToken.None);
@@ -55,6 +57,14 @@ export async function showGoToContextMenu(accessor: ServicesAccessor, editor: IC
 		}
 	}
 
+	if (part.part.command) {
+		const { command } = part.part;
+		menuActions.push(new Separator());
+		menuActions.push(new Action(command.id, command.title, undefined, true, () => {
+			commandService.executeCommand(command.id, ...(command.arguments ?? []));
+		}));
+	}
+
 	// show context menu
 	const useShadowDOM = editor.getOption(EditorOption.useShadowDOM);
 	contextMenuService.showContextMenu({
diff --git a/src/vs/platform/actions/common/actions.ts b/src/vs/platform/actions/common/actions.ts
index 7c474d77838..b4d4b0a5100 100644
--- a/src/vs/platform/actions/common/actions.ts
+++ b/src/vs/platform/actions/common/actions.ts
@@ -346,21 +346,6 @@ export const MenuRegistry: IMenuRegistry = new class implements IMenuRegistry {
 	}
 };
 
-export class ExecuteCommandAction extends Action {
-
-	constructor(
-		id: string,
-		label: string,
-		@ICommandService private readonly _commandService: ICommandService) {
-
-		super(id, label);
-	}
-
-	override run(...args: any[]): Promise<void> {
-		return this._commandService.executeCommand(this.id, ...args);
-	}
-}
-
 export class SubmenuItemAction extends SubmenuAction {
 
 	constructor(
diff --git a/src/vs/workbench/api/common/extHostLanguageFeatures.ts b/src/vs/workbench/api/common/extHostLanguageFeatures.ts
index f2a995969b8..2e12e01b631 100644
--- a/src/vs/workbench/api/common/extHostLanguageFeatures.ts
+++ b/src/vs/workbench/api/common/extHostLanguageFeatures.ts
@@ -1271,7 +1271,8 @@ class InlayHintsAdapter {
 				result.tooltip = part.tooltip && typeConvert.MarkdownString.from(part.tooltip);
 				if (Location.isLocation(part.location)) {
 					result.location = typeConvert.location.from(part.location);
-				} else if (part.command) {
+				}
+				if (part.command) {
 					result.command = this._commands.toInternal(part.command, disposables);
 				}
 				return result;
diff --git a/src/vs/workbench/api/common/extHostTypeConverters.ts b/src/vs/workbench/api/common/extHostTypeConverters.ts
index 89a97e68756..f62f5c69bb8 100644
--- a/src/vs/workbench/api/common/extHostTypeConverters.ts
+++ b/src/vs/workbench/api/common/extHostTypeConverters.ts
@@ -1174,7 +1174,8 @@ export namespace InlayHintLabelPart {
 			: part.tooltip;
 		if (modes.Command.is(part.command)) {
 			result.command = converter.fromInternal(part.command);
-		} else if (part.location) {
+		}
+		if (part.location) {
 			result.location = location.to(part.location);
 		}
 		return result;
diff --git a/src/vscode-dts/vscode.proposed.inlayHints.d.ts b/src/vscode-dts/vscode.proposed.inlayHints.d.ts
index 8510c247135..34c7e2581c8 100644
--- a/src/vscode-dts/vscode.proposed.inlayHints.d.ts
+++ b/src/vscode-dts/vscode.proposed.inlayHints.d.ts
@@ -49,9 +49,29 @@ declare module 'vscode' {
 		 */
 		tooltip?: string | MarkdownString | undefined;
 
-		// invokes provider
+		/**
+		 * An optional {@link Location source code location} that represents this label
+		 * part.
+		 *
+		 * The editor will use this location for the hover and for code navigation features: This
+		 * part will become a clickable link that resolves to the definition of the symbol at the
+		 * given location (not neccessarily the location itself), it shows the hover that shows at
+		 * the given location, and it shows a context menu with further code navigation commands.
+		 *
+		 * *Note* that this property can be set late during
+		 * {@link InlayHintsProvider.resolveInlayHint resolving} of inlay hints.
+		 */
 		location?: Location | undefined;
 
+		/**
+		 * An optional command for this label part.
+		 *
+		 * The editor renders parts with commands as clickable links. The command is added to the context menu
+		 * when a label part defines {@link InlayHintLabelPart.location location} and {@link InlayHintLabelPart.command command} .
+		 *
+		 * *Note* that this property can be set late during
+		 * {@link InlayHintsProvider.resolveInlayHint resolving} of inlay hints.
+		 */
 		command?: Command | undefined;
 
 		// todo@api