diff --git a/src/vs/workbench/api/browser/mainThreadInteractive.ts b/src/vs/workbench/api/browser/mainThreadInteractive.ts
index 51d2a90a410..33676ceed31 100644
--- a/src/vs/workbench/api/browser/mainThreadInteractive.ts
+++ b/src/vs/workbench/api/browser/mainThreadInteractive.ts
@@ -21,7 +21,11 @@ export class MainThreadInteractive implements MainThreadInteractiveShape {
 		this._proxy = extHostContext.getProxy(ExtHostContext.ExtHostInteractive);
 
 		this._disposables.add(interactiveDocumentService.onWillAddInteractiveDocument((e) => {
-			this._proxy.$acceptInputDocument(e.inputUri, '\n', 'plaintext', e.notebookUri);
+			this._proxy.$willAddInteractiveDocument(e.inputUri, '\n', 'plaintext', e.notebookUri);
+		}));
+
+		this._disposables.add(interactiveDocumentService.onWillAddInteractiveDocument((e) => {
+			this._proxy.$willRemoveInteractiveDocument(e.inputUri, e.notebookUri);
 		}));
 	}
 
diff --git a/src/vs/workbench/api/common/extHost.protocol.ts b/src/vs/workbench/api/common/extHost.protocol.ts
index 7d6886457e1..96f10273325 100644
--- a/src/vs/workbench/api/common/extHost.protocol.ts
+++ b/src/vs/workbench/api/common/extHost.protocol.ts
@@ -2038,7 +2038,8 @@ export interface ExtHostNotebookKernelsShape {
 }
 
 export interface ExtHostInteractiveShape {
-	$acceptInputDocument(uri: UriComponents, eol: string, modeId: string, notebookUri: UriComponents): void;
+	$willAddInteractiveDocument(uri: UriComponents, eol: string, modeId: string, notebookUri: UriComponents): void;
+	$willRemoveInteractiveDocument(uri: UriComponents, notebookUri: UriComponents): void;
 }
 
 export interface ExtHostStorageShape {
diff --git a/src/vs/workbench/api/common/extHostInteractive.ts b/src/vs/workbench/api/common/extHostInteractive.ts
index 0cc338e927c..cba91a9fa9c 100644
--- a/src/vs/workbench/api/common/extHostInteractive.ts
+++ b/src/vs/workbench/api/common/extHostInteractive.ts
@@ -16,7 +16,7 @@ export class ExtHostInteractive implements ExtHostInteractiveShape {
 	) {
 	}
 
-	$acceptInputDocument(uri: UriComponents, eol: string, modeId: string, notebookUri: UriComponents) {
+	$willAddInteractiveDocument(uri: UriComponents, eol: string, modeId: string, notebookUri: UriComponents) {
 		this._textDocumentsAndEditors.acceptDocumentsAndEditorsDelta({
 			addedDocuments: [{
 				EOL: eol,
@@ -29,4 +29,10 @@ export class ExtHostInteractive implements ExtHostInteractiveShape {
 			}]
 		});
 	}
+
+	$willRemoveInteractiveDocument(uri: UriComponents, notebookUri: UriComponents) {
+		this._textDocumentsAndEditors.acceptDocumentsAndEditorsDelta({
+			removedDocuments: [uri]
+		});
+	}
 }
diff --git a/src/vs/workbench/contrib/interactive/browser/interactiveDocumentService.ts b/src/vs/workbench/contrib/interactive/browser/interactiveDocumentService.ts
index e96c8734bba..25fe881455b 100644
--- a/src/vs/workbench/contrib/interactive/browser/interactiveDocumentService.ts
+++ b/src/vs/workbench/contrib/interactive/browser/interactiveDocumentService.ts
@@ -13,13 +13,17 @@ export const IInteractiveDocumentService = createDecorator<IInteractiveDocumentS
 export interface IInteractiveDocumentService {
 	readonly _serviceBrand: undefined;
 	onWillAddInteractiveDocument: Event<{ notebookUri: URI; inputUri: URI; languageId: string; }>;
+	onWillRemoveInteractiveDocument: Event<{ notebookUri: URI; inputUri: URI; }>;
 	willCreateInteractiveDocument(notebookUri: URI, inputUri: URI, languageId: string): void;
+	willRemoveInteractiveDocument(notebookUri: URI, inputUri: URI): void;
 }
 
 export class InteractiveDocumentService extends Disposable {
 	declare readonly _serviceBrand: undefined;
 	private readonly _onWillAddInteractiveDocument = this._register(new Emitter<{ notebookUri: URI; inputUri: URI; languageId: string; }>());
 	onWillAddInteractiveDocument = this._onWillAddInteractiveDocument.event;
+	private readonly _onWillRemoveInteractiveDocument = this._register(new Emitter<{ notebookUri: URI; inputUri: URI; }>());
+	onWillRemoveInteractiveDocument = this._onWillRemoveInteractiveDocument.event;
 
 	constructor() {
 		super();
@@ -33,4 +37,8 @@ export class InteractiveDocumentService extends Disposable {
 		});
 	}
 
+	willRemoveInteractiveDocument(notebookUri: URI, inputUri: URI) {
+
+	}
+
 }
diff --git a/src/vs/workbench/contrib/interactive/browser/interactiveEditor.ts b/src/vs/workbench/contrib/interactive/browser/interactiveEditor.ts
index 6d7f4f3911c..9d7f20b4bb5 100644
--- a/src/vs/workbench/contrib/interactive/browser/interactiveEditor.ts
+++ b/src/vs/workbench/contrib/interactive/browser/interactiveEditor.ts
@@ -173,9 +173,16 @@ export class InteractiveEditor extends EditorPane {
 		if (!editorModel) {
 			this.#interactiveDocumentService.willCreateInteractiveDocument(input.resource!, input.inputResource, this.#notebookWidget.value?.activeKernel?.supportedLanguages[0] ?? 'plaintext');
 			editorModel = this.#modelService.createModel('', null, input.inputResource, false);
+
+			// willCreateInteractiveDocument refs the input model, then we should de-ref it on close.
+			this.#widgetDisposableStore.add({
+				dispose: () => {
+					this.#interactiveDocumentService.willRemoveInteractiveDocument(input.resource!, input.inputResource);
+					editorModel?.dispose();
+				}
+			});
 		}
 
-		this.#widgetDisposableStore.add(editorModel);
 		this.#codeEditorWidget.setModel(editorModel);
 		this.#widgetDisposableStore.add(this.#codeEditorWidget.onDidContentSizeChange(e => {
 			if (!e.contentHeightChanged) {