diff --git a/src/vs/workbench/contrib/notebook/browser/viewModel/notebookOutlineEntryFactory.ts b/src/vs/workbench/contrib/notebook/browser/viewModel/notebookOutlineEntryFactory.ts
index 391862fc9d0..01897cf0e25 100644
--- a/src/vs/workbench/contrib/notebook/browser/viewModel/notebookOutlineEntryFactory.ts
+++ b/src/vs/workbench/contrib/notebook/browser/viewModel/notebookOutlineEntryFactory.ts
@@ -5,7 +5,7 @@
 
 import { renderMarkdownAsPlaintext } from 'vs/base/browser/markdownRenderer';
 import { CancellationToken } from 'vs/base/common/cancellation';
-import { IOutlineModelService } from 'vs/editor/contrib/documentSymbols/browser/outlineModel';
+import { IOutlineModelService, OutlineModelService } from 'vs/editor/contrib/documentSymbols/browser/outlineModel';
 import { localize } from 'vs/nls';
 import { ICellViewModel } from 'vs/workbench/contrib/notebook/browser/notebookBrowser';
 import { getMarkdownHeadersInCell } from 'vs/workbench/contrib/notebook/browser/viewModel/foldingModel';
@@ -23,7 +23,7 @@ export interface INotebookOutlineEntryFactory {
 	createOutlineEntrys(cell: ICellViewModel, index: number, includeAllSymbols: boolean, cacheSymbols: boolean): OutlineEntry[];
 }
 
-type entryDesc = { name: string; children?: entryDesc[] };
+type entryDesc = { name: string; level: number };
 
 export class NotebookOutlineEntryFactory implements INotebookOutlineEntryFactory, IDisposable {
 	_serviceBrand: undefined;
@@ -81,7 +81,7 @@ export class NotebookOutlineEntryFactory implements INotebookOutlineEntryFactory
 				// This will just provide the most recently cached values to stay syncronous, while refreshing the cache asyncronously.
 				if (includeAllSymbols && cachedEntries) {
 					cachedEntries.forEach((cached) => {
-						entries.push(new OutlineEntry(index++, 7, cell, cached.name, false, false));
+						entries.push(new OutlineEntry(index++, cached.level, cell, cached.name, false, false));
 					});
 
 				}
@@ -108,10 +108,7 @@ export class NotebookOutlineEntryFactory implements INotebookOutlineEntryFactory
 			const timeout = this.outlineModelService.getDebounceValue(textModel);
 			this.cacheTimer.cancelAndSet(async () => {
 				const outlineModel = await this.outlineModelService.getOrCreate(textModel, CancellationToken.None);
-				const symbols = outlineModel.getTopLevelSymbols().map((symbol) => {
-					return { name: symbol.name };
-				});
-
+				const symbols = createOutlineEntry(outlineModel.getTopLevelSymbols(), 7);
 				this.cellOutlineEntryCache[textModel.id] = symbols;
 			}, timeout);
 		}
@@ -122,6 +119,20 @@ export class NotebookOutlineEntryFactory implements INotebookOutlineEntryFactory
 	}
 }
 
+type outlineModel = Awaited<ReturnType<OutlineModelService['getOrCreate']>>;
+type documentSymbol = ReturnType<outlineModel['getTopLevelSymbols']>[number];
+
+function createOutlineEntry(symbols: documentSymbol[], level: number): entryDesc[] {
+	const entries: entryDesc[] = [];
+	symbols.forEach(symbol => {
+		entries.push({ name: symbol.name, level });
+		if (symbol.children) {
+			entries.push(...createOutlineEntry(symbol.children, level + 1));
+		}
+	});
+	return entries;
+}
+
 function getCellFirstNonEmptyLine(cell: ICellViewModel) {
 	const textBuffer = cell.textBuffer;
 	for (let i = 0; i < textBuffer.getLineCount(); i++) {
diff --git a/src/vs/workbench/contrib/notebook/test/browser/contrib/notebookSymbols.test.ts b/src/vs/workbench/contrib/notebook/test/browser/contrib/notebookSymbols.test.ts
index 9adea2f2bc3..2508ed1ff7c 100644
--- a/src/vs/workbench/contrib/notebook/test/browser/contrib/notebookSymbols.test.ts
+++ b/src/vs/workbench/contrib/notebook/test/browser/contrib/notebookSymbols.test.ts
@@ -28,6 +28,9 @@ suite('Notebook Symbols', function () {
 		override getOrCreate(arg0: any, arg1: any) {
 			return Promise.resolve(outlineModel);
 		}
+		override getDebounceValue(arg0: any) {
+			return 0;
+		}
 	};
 
 	function createCellViewModel(version: number = 1) {
@@ -109,7 +112,7 @@ suite('Notebook Symbols', function () {
 
 	test('Cell with nested symbols', async function () {
 		symbols = [
-			{ name: 'root1', children: [{ name: 'nested1' }] },
+			{ name: 'root1', children: [{ name: 'nested1' }, { name: 'nested2' }] },
 			{ name: 'root2', children: [{ name: 'nested1' }] }
 		];
 		const entryFactory = new NotebookOutlineEntryFactory(executionService, outlineModelService);
@@ -119,14 +122,16 @@ suite('Notebook Symbols', function () {
 		await new Promise(resolve => setTimeout(resolve, 0));
 		const entries = entryFactory.createOutlineEntrys(createCellViewModel(), 0, true, true);
 
-		assert.equal(entries.length, 4, 'wrong number of outline entries');
+		assert.equal(entries.length, 5, 'wrong number of outline entries');
 		assert.equal(entries[0].label, 'root1');
 		assert.equal(entries[0].level, 7);
 		assert.equal(entries[1].label, 'nested1');
 		assert.equal(entries[1].level, 8);
-		assert.equal(entries[0].label, 'root2');
-		assert.equal(entries[0].level, 7);
-		assert.equal(entries[1].label, 'nested1');
-		assert.equal(entries[1].level, 8);
+		assert.equal(entries[2].label, 'nested2');
+		assert.equal(entries[2].level, 8);
+		assert.equal(entries[3].label, 'root2');
+		assert.equal(entries[3].level, 7);
+		assert.equal(entries[4].label, 'nested1');
+		assert.equal(entries[4].level, 8);
 	});
 });