diff --git a/extensions/git/src/historyProvider.ts b/extensions/git/src/historyProvider.ts
index e652ca6dd20..896c46851c4 100644
--- a/extensions/git/src/historyProvider.ts
+++ b/extensions/git/src/historyProvider.ts
@@ -45,6 +45,29 @@ function toSourceControlHistoryItemRef(ref: Ref): SourceControlHistoryItemRef {
 	}
 }
 
+function compareSourceControlHistoryItemRef(ref1: SourceControlHistoryItemRef, ref2: SourceControlHistoryItemRef): number {
+	const getOrder = (ref: SourceControlHistoryItemRef): number => {
+		if (ref.id.startsWith('refs/heads/')) {
+			return 1;
+		} else if (ref.id.startsWith('refs/remotes/')) {
+			return 2;
+		} else if (ref.id.startsWith('refs/tags/')) {
+			return 3;
+		}
+
+		return 99;
+	};
+
+	const ref1Order = getOrder(ref1);
+	const ref2Order = getOrder(ref2);
+
+	if (ref1Order !== ref2Order) {
+		return ref1Order - ref2Order;
+	}
+
+	return ref1.name.localeCompare(ref2.name);
+}
+
 export class GitHistoryProvider implements SourceControlHistoryProvider, FileDecorationProvider, IDisposable {
 	private readonly _onDidChangeDecorations = new EventEmitter<Uri[]>();
 	readonly onDidChangeFileDecorations: Event<Uri[]> = this._onDidChangeDecorations.event;
@@ -334,14 +357,6 @@ export class GitHistoryProvider implements SourceControlHistoryProvider, FileDec
 						icon: new ThemeIcon('target')
 					});
 					break;
-				case ref.startsWith('tag: refs/tags/'):
-					references.push({
-						id: ref.substring('tag: '.length),
-						name: ref.substring('tag: refs/tags/'.length),
-						revision: commit.hash,
-						icon: new ThemeIcon('tag')
-					});
-					break;
 				case ref.startsWith('refs/heads/'):
 					references.push({
 						id: ref,
@@ -358,10 +373,18 @@ export class GitHistoryProvider implements SourceControlHistoryProvider, FileDec
 						icon: new ThemeIcon('cloud')
 					});
 					break;
+				case ref.startsWith('tag: refs/tags/'):
+					references.push({
+						id: ref.substring('tag: '.length),
+						name: ref.substring('tag: refs/tags/'.length),
+						revision: commit.hash,
+						icon: new ThemeIcon('tag')
+					});
+					break;
 			}
 		}
 
-		return references;
+		return references.sort(compareSourceControlHistoryItemRef);
 	}
 
 	private async resolveHEADMergeBase(): Promise<Branch | undefined> {
diff --git a/src/vs/workbench/contrib/scm/browser/scmHistoryViewPane.ts b/src/vs/workbench/contrib/scm/browser/scmHistoryViewPane.ts
index 4a7459dadf7..4de2e1841eb 100644
--- a/src/vs/workbench/contrib/scm/browser/scmHistoryViewPane.ts
+++ b/src/vs/workbench/contrib/scm/browser/scmHistoryViewPane.ts
@@ -63,6 +63,7 @@ import { getDefaultHoverDelegate } from '../../../../base/browser/ui/hover/hover
 import { IStorageService, StorageScope, StorageTarget } from '../../../../platform/storage/common/storage.js';
 import { INotificationService } from '../../../../platform/notification/common/notification.js';
 import { IExtensionService } from '../../../services/extensions/common/extensions.js';
+import { groupBy as groupBy2 } from '../../../../base/common/collections.js';
 
 const PICK_REPOSITORY_ACTION_ID = 'workbench.scm.action.graph.pickRepository';
 const PICK_HISTORY_ITEM_REFS_ACTION_ID = 'workbench.scm.action.graph.pickHistoryItemRefs';
@@ -364,37 +365,57 @@ class HistoryItemRenderer implements ITreeRenderer<SCMHistoryItemViewModelTreeEl
 	private _renderBadges(historyItem: ISCMHistoryItem, templateData: HistoryItemTemplate): void {
 		templateData.elementDisposables.add(autorun(reader => {
 			const labelConfig = this._badgesConfig.read(reader);
-
-			templateData.labelContainer.textContent = '';
 			const firstColoredRef = historyItem.references?.find(ref => ref.color);
 
-			for (const ref of historyItem.references ?? []) {
-				if (!ref.color && labelConfig === 'filter') {
+			templateData.labelContainer.textContent = '';
+
+			// Group history item references by color
+			const historyItemRefsByColor = groupBy2(
+				(historyItem.references ?? []),
+				ref => ref.color ? ref.color : '');
+
+			for (const [key, historyItemRefs] of Object.entries(historyItemRefsByColor)) {
+				// Skip badges with no color
+				if (key === '' && labelConfig !== 'all') {
 					continue;
 				}
 
-				if (ref.icon && ThemeIcon.isThemeIcon(ref.icon)) {
-					const elements = h('div.label', {
-						style: {
-							color: ref.color ? asCssVariable(historyItemHoverLabelForeground) : asCssVariable(foreground),
-							backgroundColor: ref.color ? asCssVariable(ref.color) : asCssVariable(historyItemHoverDefaultLabelBackground)
-						}
-					}, [
-						h('div.icon@icon'),
-						h('div.description@description')
-					]);
+				// Group history item references by icon
+				const historyItemRefByIconId = groupBy2(historyItemRefs, ref => ThemeIcon.isThemeIcon(ref.icon) ? ref.icon.id : '');
+				for (const [key, historyItemRefs] of Object.entries(historyItemRefByIconId)) {
+					if (key === '' || historyItemRefs.length === 0) {
+						continue;
+					}
 
-					elements.icon.classList.add(...ThemeIcon.asClassNameArray(ref.icon));
-
-					elements.description.textContent = ref.name;
-					elements.description.style.display = ref === firstColoredRef ? '' : 'none';
-
-					append(templateData.labelContainer, elements.root);
+					this._renderBadge(historyItemRefs[0], historyItemRefs[0] === firstColoredRef, templateData);
 				}
 			}
 		}));
 	}
 
+	private _renderBadge(historyItemRef: ISCMHistoryItemRef, showDescription: boolean, templateData: HistoryItemTemplate): void {
+		if (!ThemeIcon.isThemeIcon(historyItemRef.icon)) {
+			return;
+		}
+
+		const elements = h('div.label', {
+			style: {
+				color: historyItemRef.color ? asCssVariable(historyItemHoverLabelForeground) : asCssVariable(foreground),
+				backgroundColor: historyItemRef.color ? asCssVariable(historyItemRef.color) : asCssVariable(historyItemHoverDefaultLabelBackground)
+			}
+		}, [
+			h('div.icon@icon'),
+			h('div.description@description')
+		]);
+
+		elements.icon.classList.add(...ThemeIcon.asClassNameArray(historyItemRef.icon));
+
+		elements.description.textContent = historyItemRef.name;
+		elements.description.style.display = showDescription ? '' : 'none';
+
+		append(templateData.labelContainer, elements.root);
+	}
+
 	private _getHoverActions(historyItem: ISCMHistoryItem) {
 		return [
 			{
diff --git a/src/vs/workbench/contrib/scm/browser/util.ts b/src/vs/workbench/contrib/scm/browser/util.ts
index 36a03fef9d1..61a063c1931 100644
--- a/src/vs/workbench/contrib/scm/browser/util.ts
+++ b/src/vs/workbench/contrib/scm/browser/util.ts
@@ -162,7 +162,7 @@ export function compareHistoryItemRefs(
 	currentHistoryItemRemoteRef?: ISCMHistoryItemRef,
 	currentHistoryItemBaseRef?: ISCMHistoryItemRef
 ): number {
-	const getHistoryItemRefPriority = (ref: ISCMHistoryItemRef) => {
+	const getHistoryItemRefOrder = (ref: ISCMHistoryItemRef) => {
 		if (ref.id === currentHistoryItemRef?.id) {
 			return 1;
 		} else if (ref.id === currentHistoryItemRemoteRef?.id) {
@@ -176,13 +176,9 @@ export function compareHistoryItemRefs(
 		return 99;
 	};
 
-	// Assign priority (current > remote > base > color > name)
-	const ref1Priority = getHistoryItemRefPriority(ref1);
-	const ref2Priority = getHistoryItemRefPriority(ref2);
+	// Assign order (current > remote > base > color)
+	const ref1Order = getHistoryItemRefOrder(ref1);
+	const ref2Order = getHistoryItemRefOrder(ref2);
 
-	if (ref1Priority !== ref2Priority) {
-		return ref1Priority - ref2Priority;
-	} else {
-		return ref1.name.localeCompare(ref2.name);
-	}
+	return ref1Order - ref2Order;
 }