diff --git a/extensions/notebook-renderers/src/index.ts b/extensions/notebook-renderers/src/index.ts
index d4a9ba9202b..8c0f9033917 100644
--- a/extensions/notebook-renderers/src/index.ts
+++ b/extensions/notebook-renderers/src/index.ts
@@ -154,7 +154,6 @@ function renderError(
 			contentParent.classList.toggle('word-wrap', e.outputWordWrap);
 		}));
 		contentParent.classList.toggle('scrollable', outputScrolling);
-		outputElement.classList.toggle('remove-padding', outputScrolling);
 
 		contentParent.appendChild(content);
 		outputElement.appendChild(contentParent);
@@ -232,7 +231,6 @@ function renderStream(outputInfo: OutputItem, outputElement: HTMLElement, error:
 	const outputScrolling = scrollingEnabled(outputInfo, ctx.settings);
 
 	outputElement.classList.add('output-stream');
-	outputElement.classList.toggle('remove-padding', outputScrolling);
 
 	const text = outputInfo.text();
 	const content = createOutputContent(outputInfo.id, [text], ctx.settings.lineLimit, outputScrolling, false);
@@ -287,7 +285,6 @@ function renderText(outputInfo: OutputItem, outputElement: HTMLElement, ctx: IRi
 	}
 
 	content.classList.toggle('scrollable', outputScrolling);
-	outputElement.classList.toggle('remove-padding', outputScrolling);
 	outputElement.appendChild(content);
 	initializeScroll(content, disposableStore);
 
@@ -327,16 +324,28 @@ export const activate: ActivationFunction<void> = (ctx) => {
 	#container div.output_container .word-wrap span {
 		white-space: pre-wrap;
 	}
-	#container div.output .scrollable {
+	#container div.output>div {
 		padding-left: var(--notebook-output-node-left-padding);
 		padding-right: var(--notebook-output-node-padding);
-		overflow-y: scroll;
-		max-height: var(--notebook-cell-output-max-height);
-		border-style: solid;
 		box-sizing: border-box;
 		border-width: 1px;
+		border-style: solid;
 		border-color: transparent;
 	}
+	#container div.output>div:focus {
+		outline: 0;
+		border-color: var(--theme-input-focus-border-color);
+	}
+	#container div.output .scrollable {
+		overflow-y: scroll;
+		max-height: var(--notebook-cell-output-max-height);
+	}
+	#container div.output .scrollable.scrollbar-visible {
+		border-color: var(--vscode-editorWidget-border);
+	}
+	#container div.output .scrollable.scrollbar-visible:focus {
+		border-color: var(--theme-input-focus-border-color);
+	}
 	#container div.truncation-message {
 		font-style: italic;
 		font-family: var(--theme-font-family);
@@ -351,13 +360,6 @@ export const activate: ActivationFunction<void> = (ctx) => {
 	#container div.output .scrollable.more-above {
 		box-shadow: var(--vscode-scrollbar-shadow) 0 6px 6px -6px inset
 	}
-	#container div.output .scrollable.scrollbar-visible {
-		border-color: var(--vscode-editorWidget-border);
-	}
-	#container div.output .scrollable.scrollbar-visible:focus{
-		outline: 0;
-		border-color: var(--theme-input-focus-border-color);
-	}
 	.output-plaintext .code-bold,
 	.output-stream .code-bold,
 	.traceback .code-bold {
@@ -383,6 +385,7 @@ export const activate: ActivationFunction<void> = (ctx) => {
 
 	return {
 		renderOutputItem: async (outputInfo, element, signal?: AbortSignal) => {
+			element.classList.add('remove-padding');
 			switch (outputInfo.mime) {
 				case 'text/html':
 				case 'image/svg+xml': {
@@ -445,6 +448,10 @@ export const activate: ActivationFunction<void> = (ctx) => {
 				default:
 					break;
 			}
+			if (element.querySelector('div')) {
+				element.querySelector('div')!.tabIndex = 0;
+			}
+
 		},
 		disposeOutputItem: (id: string | undefined) => {
 			if (id) {
diff --git a/src/vs/workbench/contrib/notebook/browser/view/renderers/backLayerWebView.ts b/src/vs/workbench/contrib/notebook/browser/view/renderers/backLayerWebView.ts
index 62d2d92502c..9e02aad41a6 100644
--- a/src/vs/workbench/contrib/notebook/browser/view/renderers/backLayerWebView.ts
+++ b/src/vs/workbench/contrib/notebook/browser/view/renderers/backLayerWebView.ts
@@ -337,7 +337,6 @@ export class BackLayerWebView<T extends ICommonCellInfo> extends Themable {
 						padding-left: var(--notebook-output-node-left-padding);
 						box-sizing: border-box;
 						border-top: none;
-						border: 1px solid var(--theme-notebook-output-border);
 					}
 
 					/* markdown */