diff --git a/extensions/markdown-language-features/src/languageFeatures/rename.ts b/extensions/markdown-language-features/src/languageFeatures/rename.ts
index c415e01b02d..8889ea56c9c 100644
--- a/extensions/markdown-language-features/src/languageFeatures/rename.ts
+++ b/extensions/markdown-language-features/src/languageFeatures/rename.ts
@@ -93,12 +93,10 @@ export class MdRenameProvider extends Disposable implements vscode.RenameProvide
 						// We may be renaming either the reference or the definition itself
 						if (isRefRename) {
 							edit.replace(ref.link.source.resource, ref.link.ref.range, newName);
-						} else {
-							edit.replace(ref.link.source.resource, ref.fragmentLocation?.range ?? ref.link.source.hrefRange, ref.fragmentLocation ? slug : newName);
+							continue;
 						}
-					} else {
-						edit.replace(ref.location.uri, ref.fragmentLocation?.range ?? ref.location.range, ref.link.href.kind === 'reference' ? newName : slug);
 					}
+					edit.replace(ref.link.source.resource, ref.fragmentLocation?.range ?? ref.location.range, isRefRename && !ref.fragmentLocation ? newName : slug);
 					break;
 			}
 		}
diff --git a/extensions/markdown-language-features/src/test/rename.test.ts b/extensions/markdown-language-features/src/test/rename.test.ts
index 2cd3bf11f45..cc3ad0617a9 100644
--- a/extensions/markdown-language-features/src/test/rename.test.ts
+++ b/extensions/markdown-language-features/src/test/rename.test.ts
@@ -254,7 +254,7 @@ suite('markdown: rename', () => {
 		}
 	});
 
-	test('Rename on ref should rename refs and def', async () => {
+	test('Rename on reference should rename references and definition', async () => {
 		const uri = workspacePath('doc.md');
 		const doc = new InMemoryDocument(uri, joinLines(
 			`[text][ref]`, // rename here
@@ -273,7 +273,7 @@ suite('markdown: rename', () => {
 		});
 	});
 
-	test('Rename on def should rename refs and def', async () => {
+	test('Rename on definition should rename references and definitions', async () => {
 		const uri = workspacePath('doc.md');
 		const doc = new InMemoryDocument(uri, joinLines(
 			`[text][ref]`,
@@ -292,6 +292,29 @@ suite('markdown: rename', () => {
 		});
 	});
 
+	test('Rename on definition entry should rename header and references', async () => {
+		const uri = workspacePath('doc.md');
+		const doc = new InMemoryDocument(uri, joinLines(
+			`# a B c`,
+			`[ref text][ref]`,
+			`[direct](#a-b-c)`,
+			`[ref]: #a-b-c`, // rename here
+		));
+
+		const preparedInfo = await prepareRename(doc, new vscode.Position(3, 10), new InMemoryWorkspaceMarkdownDocuments([doc]));
+		assert.strictEqual(preparedInfo!.placeholder, 'a B c');
+		assertRangeEqual(preparedInfo!.range, new vscode.Range(3, 8, 3, 13));
+
+		const edit = await getRenameEdits(doc, new vscode.Position(3, 10), "x Y z", new InMemoryWorkspaceMarkdownDocuments([doc]));
+		assertEditsEqual(edit!, {
+			uri, edits: [
+				new vscode.TextEdit(new vscode.Range(0, 2, 0, 7), 'x Y z'),
+				new vscode.TextEdit(new vscode.Range(2, 10, 2, 15), 'x-y-z'),
+				new vscode.TextEdit(new vscode.Range(3, 8, 3, 13), 'x-y-z'),
+			]
+		});
+	});
+
 	test('Rename should not be supported on link text', async () => {
 		const uri = workspacePath('doc.md');
 		const doc = new InMemoryDocument(uri, joinLines(