diff --git a/src/vs/workbench/contrib/chat/browser/widget/chatWidget.ts b/src/vs/workbench/contrib/chat/browser/widget/chatWidget.ts
index de55084d582..d202b99918b 100644
--- a/src/vs/workbench/contrib/chat/browser/widget/chatWidget.ts
+++ b/src/vs/workbench/contrib/chat/browser/widget/chatWidget.ts
@@ -784,14 +784,12 @@ export class ChatWidget extends Disposable implements IChatWidget {
 	 * Updates the DOM visibility of welcome view and chat list immediately
 	 */
 	private updateChatViewVisibility(): void {
-		if (!this.viewModel) {
-			return;
+		if (this.viewModel) {
+			const numItems = this.viewModel.getItems().length;
+			dom.setVisibility(numItems === 0, this.welcomeMessageContainer);
+			dom.setVisibility(numItems !== 0, this.listContainer);
 		}
 
-		const numItems = this.viewModel.getItems().length;
-		dom.setVisibility(numItems === 0, this.welcomeMessageContainer);
-		dom.setVisibility(numItems !== 0, this.listContainer);
-
 		this._onDidChangeEmptyState.fire();
 	}
 
diff --git a/src/vs/workbench/contrib/chat/browser/widgetHosts/viewPane/chatViewPane.ts b/src/vs/workbench/contrib/chat/browser/widgetHosts/viewPane/chatViewPane.ts
index 4481014f752..1c67d25dd54 100644
--- a/src/vs/workbench/contrib/chat/browser/widgetHosts/viewPane/chatViewPane.ts
+++ b/src/vs/workbench/contrib/chat/browser/widgetHosts/viewPane/chatViewPane.ts
@@ -461,9 +461,9 @@ export class ChatViewPane extends ViewPane implements IViewWelcomeDelegate {
 			// Sessions control: stacked
 			if (this.sessionsViewerOrientation === AgentSessionsViewerOrientation.Stacked) {
 				newSessionsContainerVisible =
-					!!this.chatEntitlementService.sentiment.installed &&	// chat is installed (otherwise make room for terms and welcome)
-					(!this._widget || this._widget?.isEmpty()) &&			// chat widget empty
-					!this.welcomeController?.isShowingWelcome.get();		// welcome not showing
+					!!this.chatEntitlementService.sentiment.installed &&						// chat is installed (otherwise make room for terms and welcome)
+					(!this._widget || (this._widget.isEmpty() && !!this._widget.viewModel)) &&	// chat widget empty (but not when model is loading)
+					!this.welcomeController?.isShowingWelcome.get();							// welcome not showing
 			}
 
 			// Sessions control: sidebar