diff --git a/eng/Packages.props b/eng/Packages.props
index 2f955e8c202af..d4dc6de272a00 100644
--- a/eng/Packages.props
+++ b/eng/Packages.props
@@ -7,7 +7,7 @@
     <_BasicReferenceAssembliesVersion>1.8.3</_BasicReferenceAssembliesVersion>
     <!-- CodeStyleAnalyzerVersion should we updated together with version of dotnet-format in dotnet-tools.json -->
     <CodeStyleAnalyzerVersion>4.8.0-3.final</CodeStyleAnalyzerVersion>
-    <VisualStudioEditorPackagesVersion>18.0.332-preview</VisualStudioEditorPackagesVersion>
+    <VisualStudioEditorPackagesVersion>18.0.404-preview</VisualStudioEditorPackagesVersion>
     <ILAsmPackageVersion>9.0.0-rc.2.24462.10</ILAsmPackageVersion>
     <ILDAsmPackageVersion>6.0.0-rtm.21518.12</ILDAsmPackageVersion>
     <MicrosoftILVerificationVersion>7.0.0-alpha.1.22060.1</MicrosoftILVerificationVersion>
@@ -60,7 +60,7 @@
     <!--
       Visual Studio
     -->
-    <PackageVersion Include="Microsoft.VisualStudio.SDK" Version="18.0.2101-preview.1" />
+    <PackageVersion Include="Microsoft.VisualStudio.SDK" Version="18.0.2188-preview.1" />
     <PackageVersion Include="Microsoft.Internal.VisualStudio.Shell.Framework" Version="18.0.1211-preview.1" />
     <PackageVersion Include="Microsoft.ServiceHub.Client" Version="4.6.3200" />
     <PackageVersion Include="Microsoft.VisualStudio.Extensibility.Sdk" Version="18.0.52-preview1" />
@@ -78,7 +78,7 @@
     <PackageVersion Include="Microsoft.VisualStudio.InteractiveWindow" Version="4.0.0" />
     <PackageVersion Include="Microsoft.VisualStudio.VsInteractiveWindow" Version="4.0.0" />
     <PackageVersion Include="Microsoft.VisualStudio.Search" Version="17.14.39337" />
-    <PackageVersion Include="Microsoft.VisualStudio.Shell.Styles" Version="18.0.2101-preview.1" />
+    <PackageVersion Include="Microsoft.VisualStudio.Shell.Styles" Version="18.0.2188-preview.1" />
     <PackageVersion Include="Microsoft.VisualStudio.WinForms.Interfaces" Version="17.0.0-previews-4-31709-430" />
     <PackageVersion Include="Microsoft.VisualStudio.Workspace.VSIntegration" Version="17.9.29-preview-0001" />
     <PackageVersion Include="Microsoft.VisualStudio.Copilot.Roslyn.SemanticSearch" Version="18.0.634-alpha" />
@@ -94,33 +94,33 @@
       Subset of Microsoft.VisualStudio.Sdk meta-package (run `csi generate-vssdk-versions.csx` to update based on VSSDK meta-package).
       See https://github.com/dotnet/arcade/blob/main/Documentation/MirroringPackages.md if any of these packages fail to restore.
     -->
-    <PackageVersion Include="Microsoft.ServiceHub.Framework" Version="4.9.11-beta" />
+    <PackageVersion Include="Microsoft.ServiceHub.Framework" Version="4.9.14-beta" />
     <PackageVersion Include="Microsoft.VisualStudio.Composition" Version="17.13.50" />
     <PackageVersion Include="Microsoft.VisualStudio.Composition.Analyzers" Version="17.13.50" />
-    <PackageVersion Include="Microsoft.VisualStudio.CoreUtility" Version="18.0.332-preview" />
-    <PackageVersion Include="Microsoft.VisualStudio.Editor" Version="18.0.332-preview" />
-    <PackageVersion Include="Microsoft.VisualStudio.ImageCatalog" Version="18.0.2101-preview.1" />
-    <PackageVersion Include="Microsoft.VisualStudio.Imaging" Version="18.0.2101-preview.1" />
-    <PackageVersion Include="Microsoft.VisualStudio.Imaging.Interop.14.0.DesignTime" Version="18.0.2077-preview.1" />
-    <PackageVersion Include="Microsoft.VisualStudio.Language" Version="18.0.332-preview" />
-    <PackageVersion Include="Microsoft.VisualStudio.Language.NavigateTo.Interfaces" Version="18.0.332-preview" />
-    <PackageVersion Include="Microsoft.VisualStudio.Language.StandardClassification" Version="18.0.332-preview" />
+    <PackageVersion Include="Microsoft.VisualStudio.CoreUtility" Version="$(VisualStudioEditorPackagesVersion)" />
+    <PackageVersion Include="Microsoft.VisualStudio.Editor" Version="$(VisualStudioEditorPackagesVersion)" />
+    <PackageVersion Include="Microsoft.VisualStudio.ImageCatalog" Version="18.0.2188-preview.1" />
+    <PackageVersion Include="Microsoft.VisualStudio.Imaging" Version="18.0.2188-preview.1" />
+    <PackageVersion Include="Microsoft.VisualStudio.Imaging.Interop.14.0.DesignTime" Version="18.0.2154-preview.1" />
+    <PackageVersion Include="Microsoft.VisualStudio.Language" Version="$(VisualStudioEditorPackagesVersion)" />
+    <PackageVersion Include="Microsoft.VisualStudio.Language.NavigateTo.Interfaces" Version="$(VisualStudioEditorPackagesVersion)" />
+    <PackageVersion Include="Microsoft.VisualStudio.Language.StandardClassification" Version="$(VisualStudioEditorPackagesVersion)" />
     <PackageVersion Include="Microsoft.VisualStudio.LanguageServer.Client" Version="18.0.14-preview" />
     <PackageVersion Include="Microsoft.VisualStudio.RemoteControl" Version="16.3.52" />
     <PackageVersion Include="Microsoft.VisualStudio.RpcContracts" Version="17.15.25-pre" />
-    <PackageVersion Include="Microsoft.VisualStudio.Shell.15.0" Version="18.0.2101-preview.1" />
+    <PackageVersion Include="Microsoft.VisualStudio.Shell.15.0" Version="18.0.2188-preview.1" />
     <PackageVersion Include="Microsoft.VisualStudio.Telemetry" Version="18.0.22" />
-    <PackageVersion Include="Microsoft.VisualStudio.Text.Data" Version="18.0.332-preview" />
-    <PackageVersion Include="Microsoft.VisualStudio.Text.Logic" Version="18.0.332-preview" />
-    <PackageVersion Include="Microsoft.VisualStudio.Text.UI" Version="18.0.332-preview" />
-    <PackageVersion Include="Microsoft.VisualStudio.Text.UI.Wpf" Version="18.0.332-preview" />
-    <PackageVersion Include="Microsoft.VisualStudio.Threading" Version="17.15.20-alpha" />
+    <PackageVersion Include="Microsoft.VisualStudio.Text.Data" Version="$(VisualStudioEditorPackagesVersion)" />
+    <PackageVersion Include="Microsoft.VisualStudio.Text.Logic" Version="$(VisualStudioEditorPackagesVersion)" />
+    <PackageVersion Include="Microsoft.VisualStudio.Text.UI" Version="$(VisualStudioEditorPackagesVersion)" />
+    <PackageVersion Include="Microsoft.VisualStudio.Text.UI.Wpf" Version="$(VisualStudioEditorPackagesVersion)" />
+    <PackageVersion Include="Microsoft.VisualStudio.Threading" Version="17.15.22-alpha" />
     <PackageVersion Include="Microsoft.VisualStudio.Threading.Analyzers" Version="17.15.20-alpha" />
-    <PackageVersion Include="Microsoft.VisualStudio.Utilities" Version="18.0.2101-preview.1" />
+    <PackageVersion Include="Microsoft.VisualStudio.Utilities" Version="18.0.2188-preview.1" />
     <PackageVersion Include="Microsoft.VisualStudio.Utilities.Internal" Version="16.3.90" />
     <PackageVersion Include="Nerdbank.Streams" Version="2.12.87" />
     <PackageVersion Include="Newtonsoft.Json" Version="13.0.3" />
-    <PackageVersion Include="StreamJsonRpc" Version="2.23.39-alpha" />
+    <PackageVersion Include="StreamJsonRpc" Version="2.23.41-alpha" />
     <PackageVersion Include="MessagePack" Version="2.5.198" />
 
     <!--
diff --git a/src/EditorFeatures/CSharp/EventHookup/EventHookupSessionManager.cs b/src/EditorFeatures/CSharp/EventHookup/EventHookupSessionManager.cs
index 530cc75bf09ef..8fd0e2a8cbda7 100644
--- a/src/EditorFeatures/CSharp/EventHookup/EventHookupSessionManager.cs
+++ b/src/EditorFeatures/CSharp/EventHookup/EventHookupSessionManager.cs
@@ -14,9 +14,11 @@
 using Microsoft.CodeAnalysis.Editor.Shared.Utilities;
 using Microsoft.CodeAnalysis.Host.Mef;
 using Microsoft.CodeAnalysis.Shared.TestHooks;
+using Microsoft.VisualStudio.Language.Suggestions;
 using Microsoft.VisualStudio.Text;
 using Microsoft.VisualStudio.Text.Adornments;
 using Microsoft.VisualStudio.Text.Editor;
+using Microsoft.VisualStudio.Threading;
 
 namespace Microsoft.CodeAnalysis.Editor.CSharp.EventHookup;
 
@@ -25,12 +27,15 @@ namespace Microsoft.CodeAnalysis.Editor.CSharp.EventHookup;
 [method: Obsolete(MefConstruction.ImportingConstructorMessage, error: true)]
 internal sealed partial class EventHookupSessionManager(
     IThreadingContext threadingContext,
-    IToolTipService toolTipService)
+    IToolTipService toolTipService,
+    Lazy<SuggestionServiceBase> suggestionServiceBase)
 {
     public readonly IThreadingContext ThreadingContext = threadingContext;
     private readonly IToolTipService _toolTipService = toolTipService;
+    internal readonly Lazy<SuggestionServiceBase> SuggestionServiceBase = suggestionServiceBase;
 
     private IToolTipPresenter _toolTipPresenter;
+    private VisualStudio.Threading.IAsyncDisposable _suggestionBlocker;
 
     internal EventHookupSession CurrentSession
     {
@@ -58,6 +63,9 @@ public async Task EventHookupFoundInSessionAsync(
         if (cancellationToken.IsCancellationRequested)
             return;
 
+        // Now that we've switched to the UI thread, the rest of the work is not cancellable.  We're about to be making
+        // mutations, and we don't want to stop somewhere in the middle of that.
+        cancellationToken = default;
         var caretPoint = analyzedSession.TextView.GetCaretPoint(analyzedSession.SubjectBuffer);
 
         // only generate tooltip if it is not already shown (_toolTipPresenter == null)
@@ -93,6 +101,16 @@ public async Task EventHookupFoundInSessionAsync(
 
             analyzedSession.TextView.Caret.PositionChanged += Caret_PositionChanged;
             CurrentSession.Dismissed += () => { analyzedSession.TextView.Caret.PositionChanged -= Caret_PositionChanged; };
+
+            // Dismiss and suppress gray text proposals for the duration of the event hookup session. Note we pass
+            // CancellationToken.None here as we don't actually want to cancel this operation, since we've already
+            // made UI changes/hookup that we now have to go through.  We are technically safe, as we've cleared
+            // out cancellationToken above, but this is an extra level safety.
+            //
+            // Also, 'ConfigureAwait(true)' on everything here as we want to stay on the UI thread.
+            _suggestionBlocker?.DisposeAsync().ConfigureAwait(true);
+            _suggestionBlocker = await SuggestionServiceBase.Value.DismissAndBlockProposalsAsync(
+                analyzedSession.TextView, ReasonForDismiss.DismissedAfterBufferChange, CancellationToken.None).ConfigureAwait(true);
         }
     }
 
@@ -137,6 +155,8 @@ public void DismissExistingSessions()
 
         _toolTipPresenter?.Dismiss();
         _toolTipPresenter = null;
+        _suggestionBlocker?.DisposeAsync().Forget();
+        _suggestionBlocker = null;
 
         CurrentSession = null;
 
diff --git a/src/EditorFeatures/CSharpTest/EventHookup/EventHookupCommandHandlerTests.cs b/src/EditorFeatures/CSharpTest/EventHookup/EventHookupCommandHandlerTests.cs
index 8bb4d30f3c4f9..641f27e1e0c6c 100644
--- a/src/EditorFeatures/CSharpTest/EventHookup/EventHookupCommandHandlerTests.cs
+++ b/src/EditorFeatures/CSharpTest/EventHookup/EventHookupCommandHandlerTests.cs
@@ -40,6 +40,26 @@ void M()
         testState.AssertShowing("C_MyEvent");
     }
 
+    [WpfFact]
+    public async Task Handler_DismissSuggestionService()
+    {
+        var markup = """
+            class C
+            {
+                event System.Action MyEvent;
+                void M()
+                {
+                    MyEvent +$$
+                }
+            }
+            """;
+        using var testState = EventHookupTestState.CreateTestState(markup);
+        testState.SendTypeChar('=');
+        await testState.WaitForAsynchronousOperationsAsync();
+        testState.AssertShowing("C_MyEvent");
+        testState.AssertSuggestionServiceWasDismissed();
+    }
+
     [WpfFact, WorkItem("https://github.com/dotnet/roslyn/issues/20999")]
     public async Task HandlerName_EventInThisClass_CamelCaseRule()
     {
diff --git a/src/EditorFeatures/CSharpTest/EventHookup/EventHookupTestState.cs b/src/EditorFeatures/CSharpTest/EventHookup/EventHookupTestState.cs
index a01dbc711028f..1ffeb44193b77 100644
--- a/src/EditorFeatures/CSharpTest/EventHookup/EventHookupTestState.cs
+++ b/src/EditorFeatures/CSharpTest/EventHookup/EventHookupTestState.cs
@@ -14,6 +14,7 @@
 using Microsoft.CodeAnalysis.Options;
 using Microsoft.CodeAnalysis.Shared.TestHooks;
 using Microsoft.CodeAnalysis.Test.Utilities;
+using Microsoft.VisualStudio.Language.Suggestions;
 using Roslyn.Utilities;
 using Xunit;
 
@@ -23,7 +24,8 @@ internal sealed class EventHookupTestState : AbstractCommandHandlerTestState
 {
     private static readonly TestComposition s_composition = EditorTestCompositions.EditorFeatures.AddParts(
         typeof(EventHookupCommandHandler),
-        typeof(EventHookupSessionManager));
+        typeof(EventHookupSessionManager),
+        typeof(MockSuggestionService));
 
     private readonly EventHookupCommandHandler _commandHandler;
     private readonly Mutex _testSessionHookupMutex;
@@ -89,6 +91,12 @@ internal void AssertCodeIs(string expectedCode)
         Assert.Equal(expectedCode, TextView.TextSnapshot.GetText());
     }
 
+    internal void AssertSuggestionServiceWasDismissed()
+    {
+        var service = (MockSuggestionService)Workspace.GetService<SuggestionServiceBase>();
+        Assert.True(service.WasDismissAndBlockCalled);
+    }
+
     public void SendTypeChar(char ch)
     {
         SendTypeChar(ch, _commandHandler.ExecuteCommand, () => EditorOperations.InsertText(ch.ToString()));
diff --git a/src/EditorFeatures/CSharpTest/EventHookup/MockSuggestionService.cs b/src/EditorFeatures/CSharpTest/EventHookup/MockSuggestionService.cs
new file mode 100644
index 0000000000000..0d7d65adc6574
--- /dev/null
+++ b/src/EditorFeatures/CSharpTest/EventHookup/MockSuggestionService.cs
@@ -0,0 +1,39 @@
+// Licensed to the .NET Foundation under one or more agreements.
+// The .NET Foundation licenses this file to you under the MIT license.
+// See the LICENSE file in the project root for more information.
+
+using System;
+using System.Composition;
+using System.Threading;
+using System.Threading.Tasks;
+using Microsoft.CodeAnalysis.Host.Mef;
+using Microsoft.VisualStudio.Language.Suggestions;
+using Microsoft.VisualStudio.Text.Editor;
+using Microsoft.VisualStudio.Threading;
+using IAsyncDisposable = Microsoft.VisualStudio.Threading.IAsyncDisposable;
+
+namespace Microsoft.CodeAnalysis.Editor.CSharp.UnitTests.EventHookup;
+
+[Export(typeof(SuggestionServiceBase)), Shared]
+[method: ImportingConstructor]
+[method: Obsolete(MefConstruction.ImportingConstructorMessage, error: true)]
+internal sealed class MockSuggestionService() : SuggestionServiceBase
+{
+    public bool WasDismissAndBlockCalled { get; private set; }
+
+    public override Task<IAsyncDisposable> DismissAndBlockProposalsAsync(ITextView textView, ReasonForDismiss reason, CancellationToken cancellationToken)
+    {
+        WasDismissAndBlockCalled = true;
+        return Task.FromResult<IAsyncDisposable>(new AsyncDisposableStub());
+    }
+
+    public override Task<SuggestionManagerBase?> TryRegisterProviderAsync(SuggestionProviderBase provider, ITextView view, string name, CancellationToken cancel)
+    {
+        throw new NotImplementedException();
+    }
+
+    private sealed class AsyncDisposableStub : IAsyncDisposable
+    {
+        Task IAsyncDisposable.DisposeAsync() => Task.CompletedTask;
+    }
+}