diff --git a/crates/editor/src/display_map/block_map.rs b/crates/editor/src/display_map/block_map.rs
index 25874457a8e3d4..399575ad7f7c2e 100644
--- a/crates/editor/src/display_map/block_map.rs
+++ b/crates/editor/src/display_map/block_map.rs
@@ -1368,50 +1368,49 @@ impl BlockMap {
 
             let mut delta = their_baseline.0 as i32 - our_baseline.0 as i32;
 
-            // If we started out in the middle of a hunk/group, work up to the end of that group to set up the main loop below.
-            if edit_for_first_point.old.start < first_point {
-                let mut current_boundary = first_point;
-                let current_range = edit_for_first_point.new;
-                while let Some(next_point) = source_points.peek().cloned() {
-                    let edit_for_next_point = excerpt.patch.edit_for_old_position(next_point);
-                    if edit_for_next_point.new.end > current_range.end {
-                        break;
-                    }
-                    source_points.next();
-                    current_boundary = next_point;
-                }
-
-                let (new_delta, spacer) = determine_spacer(
-                    &mut our_wrapper,
-                    &mut companion_wrapper,
-                    current_boundary,
-                    current_range.end.min(excerpt.target_excerpt_range.end),
-                    delta,
-                    Bias::Left,
-                );
-
-                delta = new_delta;
-                if let Some((wrap_row, height)) = spacer {
-                    result.push((
-                        BlockPlacement::Above(wrap_row),
-                        Block::Spacer {
-                            id: SpacerId(self.next_block_id.fetch_add(1, SeqCst)),
-                            height,
-                            is_below: false,
-                        },
-                    ));
-                }
-            }
-
             while let Some(source_point) = source_points.next() {
                 let mut current_boundary = source_point;
-                let current_range = excerpt.patch.edit_for_old_position(current_boundary).new;
+                let current_edit = excerpt.patch.edit_for_old_position(current_boundary);
+                let current_range = current_edit.new;
 
                 if current_boundary.column > 0 {
                     debug_assert_eq!(current_boundary, excerpt.source_excerpt_range.end);
                     break;
                 }
 
+                if current_edit.old.start < current_boundary {
+                    while let Some(next_point) = source_points.peek().copied() {
+                        let edit_for_next_point = excerpt.patch.edit_for_old_position(next_point);
+                        if edit_for_next_point.new.end > current_range.end {
+                            break;
+                        }
+                        current_boundary = next_point;
+                        source_points.next();
+                    }
+
+                    let (new_delta, spacer) = determine_spacer(
+                        &mut our_wrapper,
+                        &mut companion_wrapper,
+                        current_boundary,
+                        current_range.end.min(excerpt.target_excerpt_range.end),
+                        delta,
+                        Bias::Left,
+                    );
+
+                    delta = new_delta;
+                    if let Some((wrap_row, height)) = spacer {
+                        result.push((
+                            BlockPlacement::Above(wrap_row),
+                            Block::Spacer {
+                                id: SpacerId(self.next_block_id.fetch_add(1, SeqCst)),
+                                height,
+                                is_below: false,
+                            },
+                        ));
+                    }
+                    continue;
+                }
+
                 let (delta_at_start, mut spacer_at_start) = determine_spacer(
                     &mut our_wrapper,
                     &mut companion_wrapper,
diff --git a/crates/editor/src/split.rs b/crates/editor/src/split.rs
index ee15583072144c..f8e0708c562fec 100644
--- a/crates/editor/src/split.rs
+++ b/crates/editor/src/split.rs
@@ -6058,6 +6058,121 @@ mod tests {
         cx.run_until_parked();
     }
 
+    #[gpui::test]
+    async fn test_spacer_blocks_revert_after_temporary_edit(cx: &mut gpui::TestAppContext) {
+        use rope::Point;
+        use unindent::Unindent as _;
+
+        let (editor, mut cx) = init_test(cx, SoftWrap::EditorWidth, DiffViewStyle::Split).await;
+
+        let base_text = "
+            aaa
+            bbb
+        "
+        .unindent();
+        let current_text = "
+            aaa
+            bbb
+            ccc
+        "
+        .unindent();
+
+        let (buffer, diff) = buffer_with_diff(&base_text, &current_text, &mut cx);
+
+        editor.update(cx, |editor, cx| {
+            let path = PathKey::for_buffer(&buffer, cx);
+            editor.update_excerpts_for_path(
+                path,
+                buffer.clone(),
+                vec![Point::new(0, 0)..buffer.read(cx).max_point()],
+                0,
+                diff.clone(),
+                cx,
+            );
+        });
+
+        cx.run_until_parked();
+
+        assert_split_content(
+            &editor,
+            "
+            § <no file>
+            § -----
+            aaa
+            bbb
+            ccc"
+            .unindent(),
+            "
+            § <no file>
+            § -----
+            aaa
+            bbb
+            § spacer"
+                .unindent(),
+            &mut cx,
+        );
+
+        let buffer_snapshot = buffer.update(cx, |buffer, cx| {
+            buffer.edit([(Point::new(0, 3)..Point::new(0, 3), "\n")], None, cx);
+            buffer.text_snapshot()
+        });
+        diff.update(cx, |diff, cx| {
+            diff.recalculate_diff_sync(&buffer_snapshot, cx);
+        });
+
+        cx.run_until_parked();
+
+        assert_split_content(
+            &editor,
+            "
+            § <no file>
+            § -----
+            aaa
+
+            bbb
+            ccc"
+            .unindent(),
+            "
+            § <no file>
+            § -----
+            aaa
+            § spacer
+            bbb
+            § spacer"
+                .unindent(),
+            &mut cx,
+        );
+
+        let buffer_snapshot = buffer.update(cx, |buffer, cx| {
+            buffer.edit([(Point::new(0, 3)..Point::new(1, 0), "")], None, cx);
+            buffer.text_snapshot()
+        });
+        diff.update(cx, |diff, cx| {
+            diff.recalculate_diff_sync(&buffer_snapshot, cx);
+        });
+
+        cx.run_until_parked();
+
+        assert_split_content(
+            &editor,
+            "
+            § <no file>
+            § -----
+            aaa
+            bbb
+            ccc"
+            .unindent(),
+            "
+            § <no file>
+            § -----
+            aaa
+            bbb
+            § spacer"
+                .unindent(),
+            &mut cx,
+        );
+    }
+
     #[gpui::test]
     async fn test_act_as_type(cx: &mut gpui::TestAppContext) {
         let (splittable_editor, cx) = init_test(cx, SoftWrap::None, DiffViewStyle::Split).await;