diff --git a/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts b/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
index 0e75806fc51..218f4b829e8 100644
--- a/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
+++ b/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
@@ -307,7 +307,7 @@ export class InlineChatController implements IEditorContribution {
 			}
 		});
 
-		this._showWidget(false);
+		this._showWidget(true);
 
 		this._sessionStore.add(this._editor.onDidChangeModel((e) => {
 			const msg = this._activeSession?.lastExchange
diff --git a/src/vs/workbench/contrib/inlineChat/browser/inlineChatStrategies.ts b/src/vs/workbench/contrib/inlineChat/browser/inlineChatStrategies.ts
index cc9836e8f8a..b2429b6de01 100644
--- a/src/vs/workbench/contrib/inlineChat/browser/inlineChatStrategies.ts
+++ b/src/vs/workbench/contrib/inlineChat/browser/inlineChatStrategies.ts
@@ -366,7 +366,7 @@ export class LiveStrategy extends EditModeStrategy {
 	}
 
 	override needsMargin(): boolean {
-		return Boolean(this._session.lastTextModelChanges.length);
+		return !Boolean(this._session.lastTextModelChanges.length);
 	}
 
 	hasFocus(): boolean {