diff --git a/src/vs/workbench/browser/parts/editor/breadcrumbsControl.ts b/src/vs/workbench/browser/parts/editor/breadcrumbsControl.ts
index 2796bab37d9..7992e85fb29 100644
--- a/src/vs/workbench/browser/parts/editor/breadcrumbsControl.ts
+++ b/src/vs/workbench/browser/parts/editor/breadcrumbsControl.ts
@@ -51,7 +51,7 @@ import { BreadcrumbsConfig, IBreadcrumbsService } from './breadcrumbs.js';
 import { BreadcrumbsModel, FileElement, OutlineElement2 } from './breadcrumbsModel.js';
 import { BreadcrumbsFilePicker, BreadcrumbsOutlinePicker } from './breadcrumbsPicker.js';
 import { IEditorGroupView } from './editor.js';
-import { createEditorTypeActions, editorTypeDisplayLabel, getAvailableEditorTypes } from './editorTypePicker.js';
+import { createEditorTypeActions, editorTypeDisplayLabel, getAvailableEditorTypes, hasDefaultEditorAssociation } from './editorTypePicker.js';
 import './media/breadcrumbscontrol.css';
 import { ScrollbarVisibility } from '../../../../base/common/scrollable.js';
 import { CancellationToken } from '../../../../base/common/cancellation.js';
@@ -534,7 +534,8 @@ export class BreadcrumbsControl {
 		const previousWidth = wasHidden ? 0 : this._editorTypeNode.offsetWidth;
 
 		const available = (this._options.showEditorTypePicker && this._cfShowEditorType.getValue()) ? getAvailableEditorTypes(this._editorGroup.activeEditor, this._editorResolverService) : undefined;
-		if (!available) {
+		const configuredDefaultEditor = available ? this._editorResolverService.getConfiguredDefaultEditor(available.resource, available.isDiffEditor) : undefined;
+		if (!available || !hasDefaultEditorAssociation(available, configuredDefaultEditor)) {
 			this._editorTypeNode.classList.toggle('hidden', true);
 		} else {
 			const current = available.editors.find(editor => editor.id === available.currentId);
diff --git a/src/vs/workbench/browser/parts/editor/editorTypePicker.ts b/src/vs/workbench/browser/parts/editor/editorTypePicker.ts
index 2a946675d6d..787a84fe80d 100644
--- a/src/vs/workbench/browser/parts/editor/editorTypePicker.ts
+++ b/src/vs/workbench/browser/parts/editor/editorTypePicker.ts
@@ -10,7 +10,7 @@ import { localize } from '../../../../nls.js';
 import { ICommandService } from '../../../../platform/commands/common/commands.js';
 import { DEFAULT_EDITOR_ASSOCIATION, EditorResourceAccessor, SideBySideEditor, isDiffEditorInput } from '../../../common/editor.js';
 import { EditorInput } from '../../../common/editor/editorInput.js';
-import { IEditorResolverService, RegisteredEditorInfo } from '../../../services/editor/common/editorResolverService.js';
+import { IEditorResolverService, RegisteredEditorInfo, RegisteredEditorPriority, priorityToRank } from '../../../services/editor/common/editorResolverService.js';
 import { IEditorService } from '../../../services/editor/common/editorService.js';
 import { REOPEN_ACTIVE_EDITOR_WITH_COMMAND_ID } from './editorCommands.js';
 
@@ -52,6 +52,22 @@ export function getAvailableEditorTypes(activeEditor: EditorInput | null | undef
 	};
 }
 
+/** Whether a custom editor can be selected by default for the resource. */
+export function hasDefaultEditorAssociation(available: IAvailableEditorTypes, configuredDefaultEditor: string | undefined): boolean {
+	if (configuredDefaultEditor !== undefined && configuredDefaultEditor !== DEFAULT_EDITOR_ASSOCIATION.id) {
+		return true;
+	}
+
+	return available.editors.some(editor => {
+		if (editor.id === DEFAULT_EDITOR_ASSOCIATION.id) {
+			return false;
+		}
+
+		const priority = available.isDiffEditor ? editor.priority.diff : editor.priority.editor;
+		return priorityToRank(priority) >= priorityToRank(RegisteredEditorPriority.builtin);
+	});
+}
+
 /**
  * The label to show for an editor type. In a diff context the default text editor is presented as
  * "Text Diff Editor" to match how it actually opens.
diff --git a/src/vs/workbench/test/browser/parts/editor/editorTypePicker.test.ts b/src/vs/workbench/test/browser/parts/editor/editorTypePicker.test.ts
new file mode 100644
index 00000000000..fe90c8dd8f7
--- /dev/null
+++ b/src/vs/workbench/test/browser/parts/editor/editorTypePicker.test.ts
@@ -0,0 +1,65 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import assert from 'assert';
+import { URI } from '../../../../../base/common/uri.js';
+import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../../base/test/common/utils.js';
+import { DEFAULT_EDITOR_ASSOCIATION } from '../../../../common/editor.js';
+import { IAvailableEditorTypes, hasDefaultEditorAssociation } from '../../../../browser/parts/editor/editorTypePicker.js';
+import { RegisteredEditorInfo, RegisteredEditorPriority } from '../../../../services/editor/common/editorResolverService.js';
+
+suite('Editor Type Picker', () => {
+
+	ensureNoDisposablesAreLeakedInTestSuite();
+
+	function editor(id: string, editorPriority: RegisteredEditorPriority, diffPriority = editorPriority): RegisteredEditorInfo {
+		return {
+			id,
+			label: id,
+			priority: {
+				editor: editorPriority,
+				diff: diffPriority,
+				merge: editorPriority,
+			}
+		};
+	}
+
+	function available(customEditor: RegisteredEditorInfo, isDiffEditor = false): IAvailableEditorTypes {
+		return {
+			resource: URI.file('/test.txt'),
+			isDiffEditor,
+			currentId: DEFAULT_EDITOR_ASSOCIATION.id,
+			editors: [
+				editor(DEFAULT_EDITOR_ASSOCIATION.id, RegisteredEditorPriority.builtin),
+				customEditor,
+			]
+		};
+	}
+
+	test('default editor association visibility', () => {
+		const optionalEditor = available(editor('test.optionalEditor', RegisteredEditorPriority.option));
+		const defaultEditor = available(editor('test.defaultEditor', RegisteredEditorPriority.default));
+		const builtinEditor = available(editor('test.builtinEditor', RegisteredEditorPriority.builtin));
+		const diffDefaultEditor = available(editor('test.diffDefaultEditor', RegisteredEditorPriority.option, RegisteredEditorPriority.default), true);
+
+		assert.deepStrictEqual({
+			optionalEditor: hasDefaultEditorAssociation(optionalEditor, undefined),
+			configuredOptionalEditor: hasDefaultEditorAssociation(optionalEditor, 'test.optionalEditor'),
+			configuredTextEditor: hasDefaultEditorAssociation(optionalEditor, DEFAULT_EDITOR_ASSOCIATION.id),
+			defaultEditor: hasDefaultEditorAssociation(defaultEditor, undefined),
+			defaultEditorOverriddenWithText: hasDefaultEditorAssociation(defaultEditor, DEFAULT_EDITOR_ASSOCIATION.id),
+			builtinEditor: hasDefaultEditorAssociation(builtinEditor, undefined),
+			diffDefaultEditor: hasDefaultEditorAssociation(diffDefaultEditor, undefined),
+		}, {
+			optionalEditor: false,
+			configuredOptionalEditor: true,
+			configuredTextEditor: false,
+			defaultEditor: true,
+			defaultEditorOverriddenWithText: true,
+			builtinEditor: true,
+			diffDefaultEditor: true,
+		});
+	});
+});
\ No newline at end of file