diff --git a/crates/copilot/src/copilot_completion_provider.rs b/crates/copilot/src/copilot_completion_provider.rs
index 79443f8d3a..73fc9e6a8e 100644
--- a/crates/copilot/src/copilot_completion_provider.rs
+++ b/crates/copilot/src/copilot_completion_provider.rs
@@ -256,6 +256,7 @@ impl InlineCompletionProvider for CopilotCompletionProvider {
                 let position = cursor_position.bias_right(buffer);
                 Some(InlineCompletion {
                     edits: vec![(position..position, completion_text.into())],
+                    edit_preview: None,
                 })
             }
         } else {
diff --git a/crates/editor/src/code_context_menus.rs b/crates/editor/src/code_context_menus.rs
index fbe413d947..a9429995d8 100644
--- a/crates/editor/src/code_context_menus.rs
+++ b/crates/editor/src/code_context_menus.rs
@@ -736,13 +736,13 @@ impl CompletionsMenu {
             }
             CompletionEntry::InlineCompletionHint(InlineCompletionMenuHint::Loaded { text }) => {
                 match text {
-                    InlineCompletionText::Edit { text, highlights } => div()
+                    InlineCompletionText::Edit(highlighted_edits) => div()
                         .mx_1()
                         .rounded_md()
                         .bg(cx.theme().colors().editor_background)
                         .child(
-                            gpui::StyledText::new(text.clone())
-                                .with_highlights(&style.text, highlights.clone()),
+                            gpui::StyledText::new(highlighted_edits.text.clone())
+                                .with_highlights(&style.text, highlighted_edits.highlights.clone()),
                         ),
                     InlineCompletionText::Move(text) => div().child(text.clone()),
                 }
diff --git a/crates/editor/src/editor.rs b/crates/editor/src/editor.rs
index ad13de90b6..7650129da2 100644
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -100,8 +100,8 @@ use itertools::Itertools;
 use language::{
     language_settings::{self, all_language_settings, language_settings, InlayHintSettings},
     markdown, point_from_lsp, AutoindentMode, BracketPair, Buffer, Capability, CharKind, CodeLabel,
-    CursorShape, Diagnostic, Documentation, IndentKind, IndentSize, Language, OffsetRangeExt,
-    Point, Selection, SelectionGoal, TransactionId,
+    CursorShape, Diagnostic, Documentation, EditPreview, HighlightedEdits, IndentKind, IndentSize,
+    Language, OffsetRangeExt, Point, Selection, SelectionGoal, TransactionId,
 };
 use language::{point_to_lsp, BufferRow, CharClassifier, Runnable, RunnableRange};
 use linked_editing_ranges::refresh_linked_ranges;
@@ -120,6 +120,7 @@ use lsp::{
     LanguageServerId, LanguageServerName,
 };
 
+use language::BufferSnapshot;
 use movement::TextLayoutDetails;
 pub use multi_buffer::{
     Anchor, AnchorRangeExt, ExcerptId, ExcerptRange, MultiBuffer, MultiBufferSnapshot, ToOffset,
@@ -479,10 +480,7 @@ impl InlineCompletionMenuHint {
 #[derive(Clone, Debug)]
 enum InlineCompletionText {
     Move(SharedString),
-    Edit {
-        text: SharedString,
-        highlights: Vec<(Range<usize>, HighlightStyle)>,
-    },
+    Edit(HighlightedEdits),
 }
 
 pub(crate) enum EditDisplayMode {
@@ -494,7 +492,9 @@ pub(crate) enum EditDisplayMode {
 enum InlineCompletion {
     Edit {
         edits: Vec<(Range<Anchor>, String)>,
+        edit_preview: Option<EditPreview>,
         display_mode: EditDisplayMode,
+        snapshot: BufferSnapshot,
     },
     Move(Anchor),
 }
@@ -4695,10 +4695,7 @@ impl Editor {
                     selections.select_anchor_ranges([position..position]);
                 });
             }
-            InlineCompletion::Edit {
-                edits,
-                display_mode: _,
-            } => {
+            InlineCompletion::Edit { edits, .. } => {
                 if let Some(provider) = self.inline_completion_provider() {
                     provider.accept(cx);
                 }
@@ -4745,10 +4742,7 @@ impl Editor {
                     selections.select_anchor_ranges([position..position]);
                 });
             }
-            InlineCompletion::Edit {
-                edits,
-                display_mode: _,
-            } => {
+            InlineCompletion::Edit { edits, .. } => {
                 // Find an insertion that starts at the cursor position.
                 let snapshot = self.buffer.read(cx).snapshot(cx);
                 let cursor_offset = self.selections.newest::<usize>(cx).head();
@@ -4883,8 +4877,8 @@ impl Editor {
         let (buffer, cursor_buffer_position) =
             self.buffer.read(cx).text_anchor_for_position(cursor, cx)?;
 
-        let completion = provider.suggest(&buffer, cursor_buffer_position, cx)?;
-        let edits = completion
+        let inline_completion = provider.suggest(&buffer, cursor_buffer_position, cx)?;
+        let edits = inline_completion
             .edits
             .into_iter()
             .flat_map(|(range, new_text)| {
@@ -4909,13 +4903,12 @@ impl Editor {
 
         let mut inlay_ids = Vec::new();
         let invalidation_row_range;
-        let completion;
-        if cursor_row < edit_start_row {
+        let completion = if cursor_row < edit_start_row {
             invalidation_row_range = cursor_row..edit_end_row;
-            completion = InlineCompletion::Move(first_edit_start);
+            InlineCompletion::Move(first_edit_start)
         } else if cursor_row > edit_end_row {
             invalidation_row_range = edit_start_row..cursor_row;
-            completion = InlineCompletion::Move(first_edit_start);
+            InlineCompletion::Move(first_edit_start)
         } else {
             if edits
                 .iter()
@@ -4960,10 +4953,14 @@ impl Editor {
                 EditDisplayMode::DiffPopover
             };
 
-            completion = InlineCompletion::Edit {
+            let snapshot = multibuffer.buffer_for_excerpt(excerpt_id).cloned()?;
+
+            InlineCompletion::Edit {
                 edits,
+                edit_preview: inline_completion.edit_preview,
                 display_mode,
-            };
+                snapshot,
+            }
         };
 
         let invalidation_range = multibuffer
@@ -5006,19 +5003,26 @@ impl Editor {
             let text = match &self.active_inline_completion.as_ref()?.completion {
                 InlineCompletion::Edit {
                     edits,
+                    edit_preview,
                     display_mode: _,
-                } => inline_completion_edit_text(&editor_snapshot, edits, true, cx),
+                    snapshot,
+                } => edit_preview
+                    .as_ref()
+                    .and_then(|edit_preview| {
+                        inline_completion_edit_text(&snapshot, &edits, edit_preview, true, cx)
+                    })
+                    .map(InlineCompletionText::Edit),
                 InlineCompletion::Move(target) => {
                     let target_point =
                         target.to_point(&editor_snapshot.display_snapshot.buffer_snapshot);
                     let target_line = target_point.row + 1;
-                    InlineCompletionText::Move(
+                    Some(InlineCompletionText::Move(
                         format!("Jump to edit in line {}", target_line).into(),
-                    )
+                    ))
                 }
             };
 
-            Some(InlineCompletionMenuHint::Loaded { text })
+            Some(InlineCompletionMenuHint::Loaded { text: text? })
         } else if provider.is_refreshing(cx) {
             Some(InlineCompletionMenuHint::Loading)
         } else if provider.needs_terms_acceptance(cx) {
@@ -14970,74 +14974,23 @@ pub fn diagnostic_block_renderer(
 }
 
 fn inline_completion_edit_text(
-    editor_snapshot: &EditorSnapshot,
-    edits: &Vec<(Range<Anchor>, String)>,
+    current_snapshot: &BufferSnapshot,
+    edits: &[(Range<Anchor>, String)],
+    edit_preview: &EditPreview,
     include_deletions: bool,
     cx: &WindowContext,
-) -> InlineCompletionText {
-    let edit_start = edits
-        .first()
-        .unwrap()
-        .0
-        .start
-        .to_display_point(editor_snapshot);
+) -> Option<HighlightedEdits> {
+    let edits = edits
+        .iter()
+        .map(|(anchor, text)| {
+            (
+                anchor.start.text_anchor..anchor.end.text_anchor,
+                text.clone(),
+            )
+        })
+        .collect::<Vec<_>>();
 
-    let mut text = String::new();
-    let mut offset = DisplayPoint::new(edit_start.row(), 0).to_offset(editor_snapshot, Bias::Left);
-    let mut highlights = Vec::new();
-    for (old_range, new_text) in edits {
-        let old_offset_range = old_range.to_offset(&editor_snapshot.buffer_snapshot);
-        text.extend(
-            editor_snapshot
-                .buffer_snapshot
-                .chunks(offset..old_offset_range.start, false)
-                .map(|chunk| chunk.text),
-        );
-        offset = old_offset_range.end;
-
-        let start = text.len();
-        let color = if include_deletions && new_text.is_empty() {
-            text.extend(
-                editor_snapshot
-                    .buffer_snapshot
-                    .chunks(old_offset_range.start..offset, false)
-                    .map(|chunk| chunk.text),
-            );
-            cx.theme().status().deleted_background
-        } else {
-            text.push_str(new_text);
-            cx.theme().status().created_background
-        };
-        let end = text.len();
-
-        highlights.push((
-            start..end,
-            HighlightStyle {
-                background_color: Some(color),
-                ..Default::default()
-            },
-        ));
-    }
-
-    let edit_end = edits
-        .last()
-        .unwrap()
-        .0
-        .end
-        .to_display_point(editor_snapshot);
-    let end_of_line = DisplayPoint::new(edit_end.row(), editor_snapshot.line_len(edit_end.row()))
-        .to_offset(editor_snapshot, Bias::Right);
-    text.extend(
-        editor_snapshot
-            .buffer_snapshot
-            .chunks(offset..end_of_line, false)
-            .map(|chunk| chunk.text),
-    );
-
-    InlineCompletionText::Edit {
-        text: text.into(),
-        highlights,
-    }
+    Some(edit_preview.highlight_edits(current_snapshot, &edits, include_deletions, cx))
 }
 
 pub fn highlight_diagnostic_message(
diff --git a/crates/editor/src/editor_tests.rs b/crates/editor/src/editor_tests.rs
index 4196f60c5f..990fc3f061 100644
--- a/crates/editor/src/editor_tests.rs
+++ b/crates/editor/src/editor_tests.rs
@@ -14733,241 +14733,205 @@ async fn test_multi_buffer_with_single_excerpt_folding(cx: &mut gpui::TestAppCon
 }
 
 #[gpui::test]
-fn test_inline_completion_text(cx: &mut TestAppContext) {
+async fn test_inline_completion_text(cx: &mut TestAppContext) {
     init_test(cx, |_| {});
 
     // Simple insertion
-    {
-        let window = cx.add_window(|cx| {
-            let buffer = MultiBuffer::build_simple("Hello, world!", cx);
-            Editor::new(EditorMode::Full, buffer, None, true, cx)
-        });
-        let cx = &mut VisualTestContext::from_window(*window, cx);
-
-        window
-            .update(cx, |editor, cx| {
-                let snapshot = editor.snapshot(cx);
-                let edit_range = snapshot.buffer_snapshot.anchor_after(Point::new(0, 6))
-                    ..snapshot.buffer_snapshot.anchor_before(Point::new(0, 6));
-                let edits = vec![(edit_range, " beautiful".to_string())];
-
-                let InlineCompletionText::Edit { text, highlights } =
-                    inline_completion_edit_text(&snapshot, &edits, false, cx)
-                else {
-                    panic!("Failed to generate inline completion text");
-                };
-
-                assert_eq!(text, "Hello, beautiful world!");
-                assert_eq!(highlights.len(), 1);
-                assert_eq!(highlights[0].0, 6..16);
-                assert_eq!(
-                    highlights[0].1.background_color,
-                    Some(cx.theme().status().created_background)
-                );
-            })
-            .unwrap();
-    }
+    assert_highlighted_edits(
+        "Hello, world!",
+        vec![(Point::new(0, 6)..Point::new(0, 6), " beautiful".into())],
+        true,
+        cx,
+        |highlighted_edits, cx| {
+            assert_eq!(highlighted_edits.text, "Hello, beautiful world!");
+            assert_eq!(highlighted_edits.highlights.len(), 1);
+            assert_eq!(highlighted_edits.highlights[0].0, 6..16);
+            assert_eq!(
+                highlighted_edits.highlights[0].1.background_color,
+                Some(cx.theme().status().created_background)
+            );
+        },
+    )
+    .await;
 
     // Replacement
-    {
-        let window = cx.add_window(|cx| {
-            let buffer = MultiBuffer::build_simple("This is a test.", cx);
-            Editor::new(EditorMode::Full, buffer, None, true, cx)
-        });
-        let cx = &mut VisualTestContext::from_window(*window, cx);
-
-        window
-            .update(cx, |editor, cx| {
-                let snapshot = editor.snapshot(cx);
-                let edits = vec![(
-                    snapshot.buffer_snapshot.anchor_after(Point::new(0, 0))
-                        ..snapshot.buffer_snapshot.anchor_before(Point::new(0, 4)),
-                    "That".to_string(),
-                )];
-
-                let InlineCompletionText::Edit { text, highlights } =
-                    inline_completion_edit_text(&snapshot, &edits, false, cx)
-                else {
-                    panic!("Failed to generate inline completion text");
-                };
-
-                assert_eq!(text, "That is a test.");
-                assert_eq!(highlights.len(), 1);
-                assert_eq!(highlights[0].0, 0..4);
-                assert_eq!(
-                    highlights[0].1.background_color,
-                    Some(cx.theme().status().created_background)
-                );
-            })
-            .unwrap();
-    }
+    assert_highlighted_edits(
+        "This is a test.",
+        vec![(Point::new(0, 0)..Point::new(0, 4), "That".into())],
+        false,
+        cx,
+        |highlighted_edits, cx| {
+            assert_eq!(highlighted_edits.text, "That is a test.");
+            assert_eq!(highlighted_edits.highlights.len(), 1);
+            assert_eq!(highlighted_edits.highlights[0].0, 0..4);
+            assert_eq!(
+                highlighted_edits.highlights[0].1.background_color,
+                Some(cx.theme().status().created_background)
+            );
+        },
+    )
+    .await;
 
     // Multiple edits
-    {
-        let window = cx.add_window(|cx| {
-            let buffer = MultiBuffer::build_simple("Hello, world!", cx);
-            Editor::new(EditorMode::Full, buffer, None, true, cx)
-        });
-        let cx = &mut VisualTestContext::from_window(*window, cx);
-
-        window
-            .update(cx, |editor, cx| {
-                let snapshot = editor.snapshot(cx);
-                let edits = vec![
-                    (
-                        snapshot.buffer_snapshot.anchor_after(Point::new(0, 0))
-                            ..snapshot.buffer_snapshot.anchor_before(Point::new(0, 5)),
-                        "Greetings".into(),
-                    ),
-                    (
-                        snapshot.buffer_snapshot.anchor_after(Point::new(0, 12))
-                            ..snapshot.buffer_snapshot.anchor_before(Point::new(0, 12)),
-                        " and universe".into(),
-                    ),
-                ];
-
-                let InlineCompletionText::Edit { text, highlights } =
-                    inline_completion_edit_text(&snapshot, &edits, false, cx)
-                else {
-                    panic!("Failed to generate inline completion text");
-                };
-
-                assert_eq!(text, "Greetings, world and universe!");
-                assert_eq!(highlights.len(), 2);
-                assert_eq!(highlights[0].0, 0..9);
-                assert_eq!(highlights[1].0, 16..29);
-                assert_eq!(
-                    highlights[0].1.background_color,
-                    Some(cx.theme().status().created_background)
-                );
-                assert_eq!(
-                    highlights[1].1.background_color,
-                    Some(cx.theme().status().created_background)
-                );
-            })
-            .unwrap();
-    }
+    assert_highlighted_edits(
+        "Hello, world!",
+        vec![
+            (Point::new(0, 0)..Point::new(0, 5), "Greetings".into()),
+            (Point::new(0, 12)..Point::new(0, 12), " and universe".into()),
+        ],
+        false,
+        cx,
+        |highlighted_edits, cx| {
+            assert_eq!(highlighted_edits.text, "Greetings, world and universe!");
+            assert_eq!(highlighted_edits.highlights.len(), 2);
+            assert_eq!(highlighted_edits.highlights[0].0, 0..9);
+            assert_eq!(highlighted_edits.highlights[1].0, 16..29);
+            assert_eq!(
+                highlighted_edits.highlights[0].1.background_color,
+                Some(cx.theme().status().created_background)
+            );
+            assert_eq!(
+                highlighted_edits.highlights[1].1.background_color,
+                Some(cx.theme().status().created_background)
+            );
+        },
+    )
+    .await;
 
     // Multiple lines with edits
-    {
-        let window = cx.add_window(|cx| {
-            let buffer =
-                MultiBuffer::build_simple("First line\nSecond line\nThird line\nFourth line", cx);
-            Editor::new(EditorMode::Full, buffer, None, true, cx)
-        });
-        let cx = &mut VisualTestContext::from_window(*window, cx);
-
-        window
-            .update(cx, |editor, cx| {
-                let snapshot = editor.snapshot(cx);
-                let edits = vec![
-                    (
-                        snapshot.buffer_snapshot.anchor_before(Point::new(1, 7))
-                            ..snapshot.buffer_snapshot.anchor_before(Point::new(1, 11)),
-                        "modified".to_string(),
-                    ),
-                    (
-                        snapshot.buffer_snapshot.anchor_before(Point::new(2, 0))
-                            ..snapshot.buffer_snapshot.anchor_before(Point::new(2, 10)),
-                        "New third line".to_string(),
-                    ),
-                    (
-                        snapshot.buffer_snapshot.anchor_before(Point::new(3, 6))
-                            ..snapshot.buffer_snapshot.anchor_before(Point::new(3, 6)),
-                        " updated".to_string(),
-                    ),
-                ];
-
-                let InlineCompletionText::Edit { text, highlights } =
-                    inline_completion_edit_text(&snapshot, &edits, false, cx)
-                else {
-                    panic!("Failed to generate inline completion text");
-                };
-
-                assert_eq!(text, "Second modified\nNew third line\nFourth updated line");
-                assert_eq!(highlights.len(), 3);
-                assert_eq!(highlights[0].0, 7..15); // "modified"
-                assert_eq!(highlights[1].0, 16..30); // "New third line"
-                assert_eq!(highlights[2].0, 37..45); // " updated"
-
-                for highlight in &highlights {
-                    assert_eq!(
-                        highlight.1.background_color,
-                        Some(cx.theme().status().created_background)
-                    );
-                }
-            })
-            .unwrap();
-    }
+    assert_highlighted_edits(
+        "First line\nSecond line\nThird line\nFourth line",
+        vec![
+            (Point::new(1, 7)..Point::new(1, 11), "modified".to_string()),
+            (
+                Point::new(2, 0)..Point::new(2, 10),
+                "New third line".to_string(),
+            ),
+            (Point::new(3, 6)..Point::new(3, 6), " updated".to_string()),
+        ],
+        false,
+        cx,
+        |highlighted_edits, cx| {
+            assert_eq!(
+                highlighted_edits.text,
+                "Second modified\nNew third line\nFourth updated line"
+            );
+            assert_eq!(highlighted_edits.highlights.len(), 3);
+            assert_eq!(highlighted_edits.highlights[0].0, 7..15); // "modified"
+            assert_eq!(highlighted_edits.highlights[1].0, 16..30); // "New third line"
+            assert_eq!(highlighted_edits.highlights[2].0, 37..45); // " updated"
+            for highlight in &highlighted_edits.highlights {
+                assert_eq!(
+                    highlight.1.background_color,
+                    Some(cx.theme().status().created_background)
+                );
+            }
+        },
+    )
+    .await;
 }
 
 #[gpui::test]
-fn test_inline_completion_text_with_deletions(cx: &mut TestAppContext) {
+async fn test_inline_completion_text_with_deletions(cx: &mut TestAppContext) {
     init_test(cx, |_| {});
 
     // Deletion
-    {
-        let window = cx.add_window(|cx| {
-            let buffer = MultiBuffer::build_simple("Hello, world!", cx);
-            Editor::new(EditorMode::Full, buffer, None, true, cx)
-        });
-        let cx = &mut VisualTestContext::from_window(*window, cx);
-
-        window
-            .update(cx, |editor, cx| {
-                let snapshot = editor.snapshot(cx);
-                let edit_range = snapshot.buffer_snapshot.anchor_after(Point::new(0, 5))
-                    ..snapshot.buffer_snapshot.anchor_before(Point::new(0, 11));
-                let edits = vec![(edit_range, "".to_string())];
-
-                let InlineCompletionText::Edit { text, highlights } =
-                    inline_completion_edit_text(&snapshot, &edits, true, cx)
-                else {
-                    panic!("Failed to generate inline completion text");
-                };
-
-                assert_eq!(text, "Hello, world!");
-                assert_eq!(highlights.len(), 1);
-                assert_eq!(highlights[0].0, 5..11);
-                assert_eq!(
-                    highlights[0].1.background_color,
-                    Some(cx.theme().status().deleted_background)
-                );
-            })
-            .unwrap();
-    }
+    assert_highlighted_edits(
+        "Hello, world!",
+        vec![(Point::new(0, 5)..Point::new(0, 11), "".to_string())],
+        true,
+        cx,
+        |highlighted_edits, cx| {
+            assert_eq!(highlighted_edits.text, "Hello, world!");
+            assert_eq!(highlighted_edits.highlights.len(), 1);
+            assert_eq!(highlighted_edits.highlights[0].0, 5..11);
+            assert_eq!(
+                highlighted_edits.highlights[0].1.background_color,
+                Some(cx.theme().status().deleted_background)
+            );
+        },
+    )
+    .await;
 
     // Insertion
-    {
-        let window = cx.add_window(|cx| {
-            let buffer = MultiBuffer::build_simple("Hello, world!", cx);
-            Editor::new(EditorMode::Full, buffer, None, true, cx)
-        });
-        let cx = &mut VisualTestContext::from_window(*window, cx);
+    assert_highlighted_edits(
+        "Hello, world!",
+        vec![(Point::new(0, 6)..Point::new(0, 6), " digital".to_string())],
+        true,
+        cx,
+        |highlighted_edits, cx| {
+            assert_eq!(highlighted_edits.highlights.len(), 1);
+            assert_eq!(highlighted_edits.highlights[0].0, 6..14);
+            assert_eq!(
+                highlighted_edits.highlights[0].1.background_color,
+                Some(cx.theme().status().created_background)
+            );
+        },
+    )
+    .await;
+}
 
-        window
-            .update(cx, |editor, cx| {
-                let snapshot = editor.snapshot(cx);
-                let edit_range = snapshot.buffer_snapshot.anchor_after(Point::new(0, 6))
-                    ..snapshot.buffer_snapshot.anchor_before(Point::new(0, 6));
-                let edits = vec![(edit_range, " digital".to_string())];
+async fn assert_highlighted_edits(
+    text: &str,
+    edits: Vec<(Range<Point>, String)>,
+    include_deletions: bool,
+    cx: &mut TestAppContext,
+    assertion_fn: impl Fn(HighlightedEdits, &AppContext),
+) {
+    let window = cx.add_window(|cx| {
+        let buffer = MultiBuffer::build_simple(text, cx);
+        Editor::new(EditorMode::Full, buffer, None, true, cx)
+    });
+    let cx = &mut VisualTestContext::from_window(*window, cx);
 
-                let InlineCompletionText::Edit { text, highlights } =
-                    inline_completion_edit_text(&snapshot, &edits, true, cx)
-                else {
-                    panic!("Failed to generate inline completion text");
-                };
+    let (buffer, snapshot) = window
+        .update(cx, |editor, cx| {
+            (
+                editor.buffer().clone(),
+                editor.buffer().read(cx).snapshot(cx),
+            )
+        })
+        .unwrap();
 
-                assert_eq!(text, "Hello, digital world!");
-                assert_eq!(highlights.len(), 1);
-                assert_eq!(highlights[0].0, 6..14);
-                assert_eq!(
-                    highlights[0].1.background_color,
-                    Some(cx.theme().status().created_background)
-                );
-            })
-            .unwrap();
-    }
+    let edits = edits
+        .into_iter()
+        .map(|(range, edit)| {
+            (
+                snapshot.anchor_after(range.start)..snapshot.anchor_before(range.end),
+                edit,
+            )
+        })
+        .collect::<Vec<_>>();
+
+    let text_anchor_edits = edits
+        .clone()
+        .into_iter()
+        .map(|(range, edit)| (range.start.text_anchor..range.end.text_anchor, edit))
+        .collect::<Vec<_>>();
+
+    let edit_preview = window
+        .update(cx, |_, cx| {
+            buffer
+                .read(cx)
+                .as_singleton()
+                .unwrap()
+                .read(cx)
+                .preview_edits(text_anchor_edits.into(), cx)
+        })
+        .unwrap()
+        .await;
+
+    cx.update(|cx| {
+        let highlighted_edits = inline_completion_edit_text(
+            &snapshot.as_singleton().unwrap().2,
+            &edits,
+            &edit_preview,
+            include_deletions,
+            cx,
+        )
+        .expect("Missing highlighted edits");
+        assertion_fn(highlighted_edits, cx)
+    });
 }
 
 #[gpui::test]
diff --git a/crates/editor/src/element.rs b/crates/editor/src/element.rs
index 6bde90e622..dac1e6d043 100644
--- a/crates/editor/src/element.rs
+++ b/crates/editor/src/element.rs
@@ -3390,7 +3390,9 @@ impl EditorElement {
             }
             InlineCompletion::Edit {
                 edits,
+                edit_preview,
                 display_mode,
+                snapshot,
             } => {
                 if self.editor.read(cx).has_active_completions_menu() {
                     return None;
@@ -3442,13 +3444,11 @@ impl EditorElement {
                     EditDisplayMode::DiffPopover => {}
                 }
 
-                let crate::InlineCompletionText::Edit { text, highlights } =
-                    crate::inline_completion_edit_text(editor_snapshot, edits, false, cx)
-                else {
-                    return None;
-                };
+                let highlighted_edits = edit_preview.as_ref().and_then(|edit_preview| {
+                    crate::inline_completion_edit_text(&snapshot, edits, edit_preview, false, cx)
+                })?;
 
-                let line_count = text.lines().count() + 1;
+                let line_count = highlighted_edits.text.lines().count() + 1;
 
                 let longest_row =
                     editor_snapshot.longest_row_in_range(edit_start.row()..edit_end.row() + 1);
@@ -3466,15 +3466,14 @@ impl EditorElement {
                     .width
                 };
 
-                let styled_text =
-                    gpui::StyledText::new(text.clone()).with_highlights(&style.text, highlights);
+                let styled_text = gpui::StyledText::new(highlighted_edits.text.clone())
+                    .with_highlights(&style.text, highlighted_edits.highlights);
 
                 let mut element = div()
                     .bg(cx.theme().colors().editor_background)
                     .border_1()
                     .border_color(cx.theme().colors().border)
                     .rounded_md()
-                    .px_1()
                     .child(styled_text)
                     .into_any();
 
diff --git a/crates/editor/src/inline_completion_tests.rs b/crates/editor/src/inline_completion_tests.rs
index 676b154aed..9e7ca3d450 100644
--- a/crates/editor/src/inline_completion_tests.rs
+++ b/crates/editor/src/inline_completion_tests.rs
@@ -333,6 +333,7 @@ fn propose_edits<T: ToOffset>(
         provider.update(cx, |provider, _| {
             provider.set_inline_completion(Some(inline_completion::InlineCompletion {
                 edits: edits.collect(),
+                edit_preview: None,
             }))
         })
     });
diff --git a/crates/inline_completion/src/inline_completion.rs b/crates/inline_completion/src/inline_completion.rs
index 0ff4a593ef..be71dcf76e 100644
--- a/crates/inline_completion/src/inline_completion.rs
+++ b/crates/inline_completion/src/inline_completion.rs
@@ -15,6 +15,7 @@ pub enum Direction {
 #[derive(Clone)]
 pub struct InlineCompletion {
     pub edits: Vec<(Range<language::Anchor>, String)>,
+    pub edit_preview: Option<language::EditPreview>,
 }
 
 pub trait InlineCompletionProvider: 'static + Sized {
diff --git a/crates/language/src/buffer.rs b/crates/language/src/buffer.rs
index 57557e5a36..7ac1263dec 100644
--- a/crates/language/src/buffer.rs
+++ b/crates/language/src/buffer.rs
@@ -26,7 +26,7 @@ use fs::MTime;
 use futures::channel::oneshot;
 use gpui::{
     AnyElement, AppContext, Context as _, EventEmitter, HighlightStyle, Model, ModelContext,
-    Pixels, Task, TaskLabel, WindowContext,
+    Pixels, SharedString, Task, TaskLabel, WindowContext,
 };
 use lsp::LanguageServerId;
 use parking_lot::Mutex;
@@ -65,7 +65,7 @@ pub use text::{
     Subscription, TextDimension, TextSummary, ToOffset, ToOffsetUtf16, ToPoint, ToPointUtf16,
     Transaction, TransactionId, Unclipped,
 };
-use theme::SyntaxTheme;
+use theme::{ActiveTheme as _, SyntaxTheme};
 #[cfg(any(test, feature = "test-support"))]
 use util::RandomCharIter;
 use util::{debug_panic, maybe, RangeExt};
@@ -603,6 +603,162 @@ impl IndentGuide {
     }
 }
 
+#[derive(Clone)]
+pub struct EditPreview {
+    applied_edits_snapshot: text::BufferSnapshot,
+    syntax_snapshot: SyntaxSnapshot,
+}
+
+#[derive(Default, Clone, Debug)]
+pub struct HighlightedEdits {
+    pub text: SharedString,
+    pub highlights: Vec<(Range<usize>, HighlightStyle)>,
+}
+
+impl EditPreview {
+    pub fn highlight_edits(
+        &self,
+        current_snapshot: &BufferSnapshot,
+        edits: &[(Range<Anchor>, String)],
+        include_deletions: bool,
+        cx: &AppContext,
+    ) -> HighlightedEdits {
+        let mut text = String::new();
+        let mut highlights = Vec::new();
+        let Some(range) = self.compute_visible_range(edits, current_snapshot) else {
+            return HighlightedEdits::default();
+        };
+        let mut offset = range.start;
+        let mut delta = 0isize;
+
+        let status_colors = cx.theme().status();
+
+        for (range, edit_text) in edits {
+            let edit_range = range.to_offset(current_snapshot);
+            let new_edit_start = (edit_range.start as isize + delta) as usize;
+            let new_edit_range = new_edit_start..new_edit_start + edit_text.len();
+
+            let prev_range = offset..new_edit_start;
+
+            if !prev_range.is_empty() {
+                let start = text.len();
+                self.highlight_text(prev_range, &mut text, &mut highlights, None, cx);
+                offset += text.len() - start;
+            }
+
+            if include_deletions && !edit_range.is_empty() {
+                let start = text.len();
+                text.extend(current_snapshot.text_for_range(edit_range.clone()));
+                let end = text.len();
+
+                highlights.push((
+                    start..end,
+                    HighlightStyle {
+                        background_color: Some(status_colors.deleted_background),
+                        ..Default::default()
+                    },
+                ));
+            }
+
+            if !edit_text.is_empty() {
+                self.highlight_text(
+                    new_edit_range,
+                    &mut text,
+                    &mut highlights,
+                    Some(HighlightStyle {
+                        background_color: Some(status_colors.created_background),
+                        ..Default::default()
+                    }),
+                    cx,
+                );
+
+                offset += edit_text.len();
+            }
+
+            delta += edit_text.len() as isize - edit_range.len() as isize;
+        }
+
+        self.highlight_text(
+            offset..(range.end as isize + delta) as usize,
+            &mut text,
+            &mut highlights,
+            None,
+            cx,
+        );
+
+        HighlightedEdits {
+            text: text.into(),
+            highlights,
+        }
+    }
+
+    fn highlight_text(
+        &self,
+        range: Range<usize>,
+        text: &mut String,
+        highlights: &mut Vec<(Range<usize>, HighlightStyle)>,
+        override_style: Option<HighlightStyle>,
+        cx: &AppContext,
+    ) {
+        for chunk in self.highlighted_chunks(range) {
+            let start = text.len();
+            text.push_str(chunk.text);
+            let end = text.len();
+
+            if let Some(mut highlight_style) = chunk
+                .syntax_highlight_id
+                .and_then(|id| id.style(cx.theme().syntax()))
+            {
+                if let Some(override_style) = override_style {
+                    highlight_style.highlight(override_style);
+                }
+                highlights.push((start..end, highlight_style));
+            } else if let Some(override_style) = override_style {
+                highlights.push((start..end, override_style));
+            }
+        }
+    }
+
+    fn highlighted_chunks(&self, range: Range<usize>) -> BufferChunks {
+        let captures =
+            self.syntax_snapshot
+                .captures(range.clone(), &self.applied_edits_snapshot, |grammar| {
+                    grammar.highlights_query.as_ref()
+                });
+
+        let highlight_maps = captures
+            .grammars()
+            .iter()
+            .map(|grammar| grammar.highlight_map())
+            .collect();
+
+        BufferChunks::new(
+            self.applied_edits_snapshot.as_rope(),
+            range,
+            Some((captures, highlight_maps)),
+            false,
+            None,
+        )
+    }
+
+    fn compute_visible_range(
+        &self,
+        edits: &[(Range<Anchor>, String)],
+        snapshot: &BufferSnapshot,
+    ) -> Option<Range<usize>> {
+        let (first, _) = edits.first()?;
+        let (last, _) = edits.last()?;
+
+        let start = first.start.to_point(snapshot);
+        let end = last.end.to_point(snapshot);
+
+        // Ensure that the first line of the first edit and the last line of the last edit are always fully visible
+        let range = Point::new(start.row, 0)..Point::new(end.row, snapshot.line_len(end.row));
+
+        Some(range.to_offset(&snapshot))
+    }
+}
+
 impl Buffer {
     /// Create a new buffer with the given base text.
     pub fn local<T: Into<String>>(base_text: T, cx: &ModelContext<Self>) -> Self {
@@ -825,6 +981,33 @@ impl Buffer {
         })
     }
 
+    pub fn preview_edits(
+        &self,
+        edits: Arc<[(Range<Anchor>, String)]>,
+        cx: &AppContext,
+    ) -> Task<EditPreview> {
+        let registry = self.language_registry();
+        let language = self.language().cloned();
+
+        let mut branch_buffer = self.text.branch();
+        let mut syntax_snapshot = self.syntax_map.lock().snapshot();
+        cx.background_executor().spawn(async move {
+            if !edits.is_empty() {
+                branch_buffer.edit(edits.iter().cloned());
+                let snapshot = branch_buffer.snapshot();
+                syntax_snapshot.interpolate(&snapshot);
+
+                if let Some(language) = language {
+                    syntax_snapshot.reparse(&snapshot, registry, language);
+                }
+            }
+            EditPreview {
+                applied_edits_snapshot: branch_buffer.snapshot(),
+                syntax_snapshot,
+            }
+        })
+    }
+
     /// Applies all of the changes in this buffer that intersect any of the
     /// given `ranges` to its base buffer.
     ///
diff --git a/crates/language/src/buffer_tests.rs b/crates/language/src/buffer_tests.rs
index a90651d0d7..e0af4998a8 100644
--- a/crates/language/src/buffer_tests.rs
+++ b/crates/language/src/buffer_tests.rs
@@ -2718,6 +2718,148 @@ fn test_undo_after_merge_into_base(cx: &mut TestAppContext) {
     branch.read_with(cx, |branch, _| assert_eq!(branch.text(), "ABCdefgHIjk"));
 }
 
+#[gpui::test]
+async fn test_preview_edits(cx: &mut TestAppContext) {
+    cx.update(|cx| {
+        init_settings(cx, |_| {});
+        theme::init(theme::LoadThemes::JustBase, cx);
+    });
+
+    let text = indoc! {r#"
+        struct Person {
+            first_name: String,
+        }
+
+        impl Person {
+            fn last_name(&self) -> &String {
+                &self.last_name
+            }
+        }"#
+    };
+
+    let language = Arc::new(Language::new(
+        LanguageConfig::default(),
+        Some(tree_sitter_rust::LANGUAGE.into()),
+    ));
+    let buffer = cx.new_model(|cx| Buffer::local(text, cx).with_language(language, cx));
+    let highlighted_edits = preview_edits(
+        &buffer,
+        cx,
+        [
+            (Point::new(5, 7)..Point::new(5, 11), "first"),
+            (Point::new(6, 14)..Point::new(6, 18), "first"),
+        ],
+    )
+    .await;
+
+    assert_eq!(
+        highlighted_edits.text,
+        "    fn lastfirst_name(&self) -> &String {\n        &self.lastfirst_name"
+    );
+
+    async fn preview_edits(
+        buffer: &Model<Buffer>,
+        cx: &mut TestAppContext,
+        edits: impl IntoIterator<Item = (Range<Point>, &'static str)>,
+    ) -> HighlightedEdits {
+        let edits = buffer.read_with(cx, |buffer, _| {
+            edits
+                .into_iter()
+                .map(|(range, text)| {
+                    (
+                        buffer.anchor_before(range.start)..buffer.anchor_after(range.end),
+                        text.to_string(),
+                    )
+                })
+                .collect::<Vec<_>>()
+        });
+        let edit_preview = buffer
+            .read_with(cx, |buffer, cx| {
+                buffer.preview_edits(edits.clone().into(), cx)
+            })
+            .await;
+        cx.read(|cx| edit_preview.highlight_edits(&buffer.read(cx).snapshot(), &edits, true, cx))
+    }
+}
+
+#[gpui::test]
+async fn test_preview_edits_interpolate(cx: &mut TestAppContext) {
+    use theme::ActiveTheme;
+    cx.update(|cx| {
+        init_settings(cx, |_| {});
+        theme::init(theme::LoadThemes::JustBase, cx);
+    });
+
+    let text = indoc! {r#"
+        struct Person {
+            _name: String
+        }"#
+    };
+
+    let language = Arc::new(Language::new(
+        LanguageConfig::default(),
+        Some(tree_sitter_rust::LANGUAGE.into()),
+    ));
+    let buffer = cx.new_model(|cx| Buffer::local(text, cx).with_language(language, cx));
+
+    let edits = construct_edits(&buffer, [(Point::new(1, 4)..Point::new(1, 4), "first")], cx);
+    let edit_preview = buffer
+        .read_with(cx, |buffer, cx| buffer.preview_edits(edits.clone(), cx))
+        .await;
+
+    let highlighted_edits =
+        cx.read(|cx| edit_preview.highlight_edits(&buffer.read(cx).snapshot(), &edits, false, cx));
+
+    let created_background = cx.read(|cx| cx.theme().status().created_background);
+
+    assert_eq!(highlighted_edits.text, "    first_name: String");
+    assert_eq!(highlighted_edits.highlights.len(), 1);
+    assert_eq!(highlighted_edits.highlights[0].0, 4..9);
+    assert_eq!(
+        highlighted_edits.highlights[0].1.background_color,
+        Some(created_background)
+    );
+
+    let edits = construct_edits(&buffer, [(Point::new(1, 4)..Point::new(1, 4), "f")], cx);
+    cx.update(|cx| {
+        buffer.update(cx, |buffer, cx| {
+            buffer.edit(edits.iter().cloned(), None, cx);
+        })
+    });
+
+    let edits = construct_edits(&buffer, [(Point::new(1, 5)..Point::new(1, 5), "irst")], cx);
+    let highlighted_edits =
+        cx.read(|cx| edit_preview.highlight_edits(&buffer.read(cx).snapshot(), &edits, false, cx));
+
+    assert_eq!(highlighted_edits.text, "    first_name: String");
+    assert_eq!(highlighted_edits.highlights.len(), 1);
+    assert_eq!(highlighted_edits.highlights[0].0, (5..9));
+    assert_eq!(
+        highlighted_edits.highlights[0].1.background_color,
+        Some(created_background)
+    );
+
+    fn construct_edits(
+        buffer: &Model<Buffer>,
+        edits: impl IntoIterator<Item = (Range<Point>, &'static str)>,
+        cx: &mut TestAppContext,
+    ) -> Arc<[(Range<Anchor>, String)]> {
+        buffer
+            .read_with(cx, |buffer, _| {
+                edits
+                    .into_iter()
+                    .map(|(range, text)| {
+                        (
+                            buffer.anchor_after(range.start)..buffer.anchor_before(range.end),
+                            text.to_string(),
+                        )
+                    })
+                    .collect::<Vec<_>>()
+            })
+            .into()
+    }
+}
+
 #[gpui::test(iterations = 100)]
 fn test_random_collaboration(cx: &mut AppContext, mut rng: StdRng) {
     let min_peers = env::var("MIN_PEERS")
diff --git a/crates/language/src/syntax_map.rs b/crates/language/src/syntax_map.rs
index f51eeb9688..2a0c7eaa1c 100644
--- a/crates/language/src/syntax_map.rs
+++ b/crates/language/src/syntax_map.rs
@@ -263,7 +263,7 @@ impl SyntaxSnapshot {
         self.layers.is_empty()
     }
 
-    fn interpolate(&mut self, text: &BufferSnapshot) {
+    pub fn interpolate(&mut self, text: &BufferSnapshot) {
         let edits = text
             .anchored_edits_since::<(usize, Point)>(&self.interpolated_version)
             .collect::<Vec<_>>();
diff --git a/crates/supermaven/src/supermaven_completion_provider.rs b/crates/supermaven/src/supermaven_completion_provider.rs
index e9c2bfb37b..46468754ca 100644
--- a/crates/supermaven/src/supermaven_completion_provider.rs
+++ b/crates/supermaven/src/supermaven_completion_provider.rs
@@ -90,7 +90,10 @@ fn completion_from_diff(
         edits.push((edit_range, edit_text));
     }
 
-    InlineCompletion { edits }
+    InlineCompletion {
+        edits,
+        edit_preview: None,
+    }
 }
 
 impl InlineCompletionProvider for SupermavenCompletionProvider {
diff --git a/crates/zeta/src/zeta.rs b/crates/zeta/src/zeta.rs
index 32dec5d6f0..65cb779591 100644
--- a/crates/zeta/src/zeta.rs
+++ b/crates/zeta/src/zeta.rs
@@ -15,8 +15,8 @@ use gpui::{
 };
 use http_client::{HttpClient, Method};
 use language::{
-    language_settings::all_language_settings, Anchor, Buffer, BufferSnapshot, OffsetRangeExt,
-    Point, ToOffset, ToPoint,
+    language_settings::all_language_settings, Anchor, Buffer, BufferSnapshot, EditPreview,
+    OffsetRangeExt, Point, ToOffset, ToPoint,
 };
 use language_models::LlmApiToken;
 use rpc::{PredictEditsParams, PredictEditsResponse, EXPIRED_LLM_TOKEN_HEADER_NAME};
@@ -77,6 +77,7 @@ pub struct InlineCompletion {
     cursor_offset: usize,
     edits: Arc<[(Range<Anchor>, String)]>,
     snapshot: BufferSnapshot,
+    edit_preview: EditPreview,
     input_outline: Arc<str>,
     input_events: Arc<str>,
     input_excerpt: Arc<str>,
@@ -92,56 +93,64 @@ impl InlineCompletion {
     }
 
     fn interpolate(&self, new_snapshot: &BufferSnapshot) -> Option<Vec<(Range<Anchor>, String)>> {
-        let mut edits = Vec::new();
+        interpolate(&self.snapshot, new_snapshot, self.edits.clone())
+    }
+}
 
-        let mut user_edits = new_snapshot
-            .edits_since::<usize>(&self.snapshot.version)
-            .peekable();
-        for (model_old_range, model_new_text) in self.edits.iter() {
-            let model_offset_range = model_old_range.to_offset(&self.snapshot);
-            while let Some(next_user_edit) = user_edits.peek() {
-                if next_user_edit.old.end < model_offset_range.start {
-                    user_edits.next();
-                } else {
-                    break;
-                }
+fn interpolate(
+    old_snapshot: &BufferSnapshot,
+    new_snapshot: &BufferSnapshot,
+    current_edits: Arc<[(Range<Anchor>, String)]>,
+) -> Option<Vec<(Range<Anchor>, String)>> {
+    let mut edits = Vec::new();
+
+    let mut user_edits = new_snapshot
+        .edits_since::<usize>(&old_snapshot.version)
+        .peekable();
+    for (model_old_range, model_new_text) in current_edits.iter() {
+        let model_offset_range = model_old_range.to_offset(old_snapshot);
+        while let Some(next_user_edit) = user_edits.peek() {
+            if next_user_edit.old.end < model_offset_range.start {
+                user_edits.next();
+            } else {
+                break;
             }
+        }
 
-            if let Some(user_edit) = user_edits.peek() {
-                if user_edit.old.start > model_offset_range.end {
-                    edits.push((model_old_range.clone(), model_new_text.clone()));
-                } else if user_edit.old == model_offset_range {
-                    let user_new_text = new_snapshot
-                        .text_for_range(user_edit.new.clone())
-                        .collect::<String>();
+        if let Some(user_edit) = user_edits.peek() {
+            if user_edit.old.start > model_offset_range.end {
+                edits.push((model_old_range.clone(), model_new_text.clone()));
+            } else if user_edit.old == model_offset_range {
+                let user_new_text = new_snapshot
+                    .text_for_range(user_edit.new.clone())
+                    .collect::<String>();
 
-                    if let Some(model_suffix) = model_new_text.strip_prefix(&user_new_text) {
-                        if !model_suffix.is_empty() {
-                            edits.push((
-                                new_snapshot.anchor_after(user_edit.new.end)
-                                    ..new_snapshot.anchor_before(user_edit.new.end),
-                                model_suffix.into(),
-                            ));
-                        }
-
-                        user_edits.next();
-                    } else {
-                        return None;
+                if let Some(model_suffix) = model_new_text.strip_prefix(&user_new_text) {
+                    if !model_suffix.is_empty() {
+                        edits.push((
+                            new_snapshot.anchor_after(user_edit.new.end)
+                                ..new_snapshot.anchor_before(user_edit.new.end),
+                            model_suffix.into(),
+                        ));
                     }
+
+                    user_edits.next();
                 } else {
                     return None;
                 }
             } else {
-                edits.push((model_old_range.clone(), model_new_text.clone()));
+                return None;
             }
-        }
-
-        if edits.is_empty() {
-            None
         } else {
-            Some(edits)
+            edits.push((model_old_range.clone(), model_new_text.clone()));
         }
     }
+
+    if edits.is_empty() {
+        None
+    } else {
+        Some(edits)
+    }
 }
 
 impl std::fmt::Debug for InlineCompletion {
@@ -302,7 +311,8 @@ impl Zeta {
         F: FnOnce(Arc<Client>, LlmApiToken, PredictEditsParams) -> R + 'static,
         R: Future<Output = Result<PredictEditsResponse>> + Send + 'static,
     {
-        let snapshot = self.report_changes_for_buffer(buffer, cx);
+        let buffer = buffer.clone();
+        let snapshot = self.report_changes_for_buffer(&buffer, cx);
         let point = position.to_point(&snapshot);
         let offset = point.to_offset(&snapshot);
         let excerpt_range = excerpt_range_for_position(point, &snapshot);
@@ -356,6 +366,7 @@ impl Zeta {
 
             Self::process_completion_response(
                 output_excerpt,
+                buffer,
                 &snapshot,
                 excerpt_range,
                 offset,
@@ -581,6 +592,7 @@ and then another
     #[allow(clippy::too_many_arguments)]
     fn process_completion_response(
         output_excerpt: String,
+        buffer: Model<Buffer>,
         snapshot: &BufferSnapshot,
         excerpt_range: Range<usize>,
         cursor_offset: usize,
@@ -592,70 +604,110 @@ and then another
         cx: &AsyncAppContext,
     ) -> Task<Result<InlineCompletion>> {
         let snapshot = snapshot.clone();
-        cx.background_executor().spawn(async move {
-            let content = output_excerpt.replace(CURSOR_MARKER, "");
+        cx.spawn(|cx| async move {
+            let output_excerpt: Arc<str> = output_excerpt.into();
 
-            let start_markers = content
-                .match_indices(EDITABLE_REGION_START_MARKER)
-                .collect::<Vec<_>>();
-            anyhow::ensure!(
-                start_markers.len() == 1,
-                "expected exactly one start marker, found {}",
-                start_markers.len()
-            );
+            let edits: Arc<[(Range<Anchor>, String)]> = cx
+                .background_executor()
+                .spawn({
+                    let output_excerpt = output_excerpt.clone();
+                    let excerpt_range = excerpt_range.clone();
+                    let snapshot = snapshot.clone();
+                    async move { Self::parse_edits(output_excerpt, excerpt_range, &snapshot) }
+                })
+                .await?
+                .into();
 
-            let end_markers = content
-                .match_indices(EDITABLE_REGION_END_MARKER)
-                .collect::<Vec<_>>();
-            anyhow::ensure!(
-                end_markers.len() == 1,
-                "expected exactly one end marker, found {}",
-                end_markers.len()
-            );
+            let (edits, snapshot, edit_preview) = buffer.read_with(&cx, {
+                let edits = edits.clone();
+                |buffer, cx| {
+                    let new_snapshot = buffer.snapshot();
+                    let edits: Arc<[(Range<Anchor>, String)]> =
+                        interpolate(&snapshot, &new_snapshot, edits)
+                            .context("Interpolated edits are empty")?
+                            .into();
 
-            let sof_markers = content
-                .match_indices(START_OF_FILE_MARKER)
-                .collect::<Vec<_>>();
-            anyhow::ensure!(
-                sof_markers.len() <= 1,
-                "expected at most one start-of-file marker, found {}",
-                sof_markers.len()
-            );
+                    anyhow::Ok((edits.clone(), new_snapshot, buffer.preview_edits(edits, cx)))
+                }
+            })??;
 
-            let codefence_start = start_markers[0].0;
-            let content = &content[codefence_start..];
-
-            let newline_ix = content.find('\n').context("could not find newline")?;
-            let content = &content[newline_ix + 1..];
-
-            let codefence_end = content
-                .rfind(&format!("\n{EDITABLE_REGION_END_MARKER}"))
-                .context("could not find end marker")?;
-            let new_text = &content[..codefence_end];
-
-            let old_text = snapshot
-                .text_for_range(excerpt_range.clone())
-                .collect::<String>();
-
-            let edits = Self::compute_edits(old_text, new_text, excerpt_range.start, &snapshot);
+            let edit_preview = edit_preview.await;
 
             Ok(InlineCompletion {
                 id: InlineCompletionId::new(),
                 path,
                 excerpt_range,
                 cursor_offset,
-                edits: edits.into(),
-                snapshot: snapshot.clone(),
+                edits,
+                edit_preview,
+                snapshot,
                 input_outline: input_outline.into(),
                 input_events: input_events.into(),
                 input_excerpt: input_excerpt.into(),
-                output_excerpt: output_excerpt.into(),
+                output_excerpt,
                 request_sent_at,
                 response_received_at: Instant::now(),
             })
         })
     }
 
+    fn parse_edits(
+        output_excerpt: Arc<str>,
+        excerpt_range: Range<usize>,
+        snapshot: &BufferSnapshot,
+    ) -> Result<Vec<(Range<Anchor>, String)>> {
+        let content = output_excerpt.replace(CURSOR_MARKER, "");
+
+        let start_markers = content
+            .match_indices(EDITABLE_REGION_START_MARKER)
+            .collect::<Vec<_>>();
+        anyhow::ensure!(
+            start_markers.len() == 1,
+            "expected exactly one start marker, found {}",
+            start_markers.len()
+        );
+
+        let end_markers = content
+            .match_indices(EDITABLE_REGION_END_MARKER)
+            .collect::<Vec<_>>();
+        anyhow::ensure!(
+            end_markers.len() == 1,
+            "expected exactly one end marker, found {}",
+            end_markers.len()
+        );
+
+        let sof_markers = content
+            .match_indices(START_OF_FILE_MARKER)
+            .collect::<Vec<_>>();
+        anyhow::ensure!(
+            sof_markers.len() <= 1,
+            "expected at most one start-of-file marker, found {}",
+            sof_markers.len()
+        );
+
+        let codefence_start = start_markers[0].0;
+        let content = &content[codefence_start..];
+
+        let newline_ix = content.find('\n').context("could not find newline")?;
+        let content = &content[newline_ix + 1..];
+
+        let codefence_end = content
+            .rfind(&format!("\n{EDITABLE_REGION_END_MARKER}"))
+            .context("could not find end marker")?;
+        let new_text = &content[..codefence_end];
+
+        let old_text = snapshot
+            .text_for_range(excerpt_range.clone())
+            .collect::<String>();
+
+        Ok(Self::compute_edits(
+            old_text,
+            new_text,
+            excerpt_range.start,
+            &snapshot,
+        ))
+    }
+
     pub fn compute_edits(
         old_text: String,
         new_text: &str,
@@ -1206,6 +1258,7 @@ impl inline_completion::InlineCompletionProvider for ZetaInlineCompletionProvide
 
         Some(inline_completion::InlineCompletion {
             edits: edits[edit_start_ix..edit_end_ix].to_vec(),
+            edit_preview: Some(completion.edit_preview.clone()),
         })
     }
 }
@@ -1224,17 +1277,26 @@ mod tests {
     use super::*;
 
     #[gpui::test]
-    fn test_inline_completion_basic_interpolation(cx: &mut AppContext) {
+    async fn test_inline_completion_basic_interpolation(cx: &mut TestAppContext) {
         let buffer = cx.new_model(|cx| Buffer::local("Lorem ipsum dolor", cx));
-        let completion = InlineCompletion {
-            edits: to_completion_edits(
+        let edits: Arc<[(Range<Anchor>, String)]> = cx.update(|cx| {
+            to_completion_edits(
                 [(2..5, "REM".to_string()), (9..11, "".to_string())],
                 &buffer,
                 cx,
             )
-            .into(),
+            .into()
+        });
+
+        let edit_preview = cx
+            .read(|cx| buffer.read(cx).preview_edits(edits.clone(), cx))
+            .await;
+
+        let completion = InlineCompletion {
+            edits,
+            edit_preview,
             path: Path::new("").into(),
-            snapshot: buffer.read(cx).snapshot(),
+            snapshot: cx.read(|cx| buffer.read(cx).snapshot()),
             id: InlineCompletionId::new(),
             excerpt_range: 0..0,
             cursor_offset: 0,
@@ -1246,87 +1308,89 @@ mod tests {
             response_received_at: Instant::now(),
         };
 
-        assert_eq!(
-            from_completion_edits(
-                &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
-                &buffer,
-                cx
-            ),
-            vec![(2..5, "REM".to_string()), (9..11, "".to_string())]
-        );
+        cx.update(|cx| {
+            assert_eq!(
+                from_completion_edits(
+                    &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
+                    &buffer,
+                    cx
+                ),
+                vec![(2..5, "REM".to_string()), (9..11, "".to_string())]
+            );
 
-        buffer.update(cx, |buffer, cx| buffer.edit([(2..5, "")], None, cx));
-        assert_eq!(
-            from_completion_edits(
-                &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
-                &buffer,
-                cx
-            ),
-            vec![(2..2, "REM".to_string()), (6..8, "".to_string())]
-        );
+            buffer.update(cx, |buffer, cx| buffer.edit([(2..5, "")], None, cx));
+            assert_eq!(
+                from_completion_edits(
+                    &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
+                    &buffer,
+                    cx
+                ),
+                vec![(2..2, "REM".to_string()), (6..8, "".to_string())]
+            );
 
-        buffer.update(cx, |buffer, cx| buffer.undo(cx));
-        assert_eq!(
-            from_completion_edits(
-                &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
-                &buffer,
-                cx
-            ),
-            vec![(2..5, "REM".to_string()), (9..11, "".to_string())]
-        );
+            buffer.update(cx, |buffer, cx| buffer.undo(cx));
+            assert_eq!(
+                from_completion_edits(
+                    &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
+                    &buffer,
+                    cx
+                ),
+                vec![(2..5, "REM".to_string()), (9..11, "".to_string())]
+            );
 
-        buffer.update(cx, |buffer, cx| buffer.edit([(2..5, "R")], None, cx));
-        assert_eq!(
-            from_completion_edits(
-                &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
-                &buffer,
-                cx
-            ),
-            vec![(3..3, "EM".to_string()), (7..9, "".to_string())]
-        );
+            buffer.update(cx, |buffer, cx| buffer.edit([(2..5, "R")], None, cx));
+            assert_eq!(
+                from_completion_edits(
+                    &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
+                    &buffer,
+                    cx
+                ),
+                vec![(3..3, "EM".to_string()), (7..9, "".to_string())]
+            );
 
-        buffer.update(cx, |buffer, cx| buffer.edit([(3..3, "E")], None, cx));
-        assert_eq!(
-            from_completion_edits(
-                &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
-                &buffer,
-                cx
-            ),
-            vec![(4..4, "M".to_string()), (8..10, "".to_string())]
-        );
+            buffer.update(cx, |buffer, cx| buffer.edit([(3..3, "E")], None, cx));
+            assert_eq!(
+                from_completion_edits(
+                    &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
+                    &buffer,
+                    cx
+                ),
+                vec![(4..4, "M".to_string()), (8..10, "".to_string())]
+            );
 
-        buffer.update(cx, |buffer, cx| buffer.edit([(4..4, "M")], None, cx));
-        assert_eq!(
-            from_completion_edits(
-                &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
-                &buffer,
-                cx
-            ),
-            vec![(9..11, "".to_string())]
-        );
+            buffer.update(cx, |buffer, cx| buffer.edit([(4..4, "M")], None, cx));
+            assert_eq!(
+                from_completion_edits(
+                    &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
+                    &buffer,
+                    cx
+                ),
+                vec![(9..11, "".to_string())]
+            );
 
-        buffer.update(cx, |buffer, cx| buffer.edit([(4..5, "")], None, cx));
-        assert_eq!(
-            from_completion_edits(
-                &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
-                &buffer,
-                cx
-            ),
-            vec![(4..4, "M".to_string()), (8..10, "".to_string())]
-        );
+            buffer.update(cx, |buffer, cx| buffer.edit([(4..5, "")], None, cx));
+            assert_eq!(
+                from_completion_edits(
+                    &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
+                    &buffer,
+                    cx
+                ),
+                vec![(4..4, "M".to_string()), (8..10, "".to_string())]
+            );
 
-        buffer.update(cx, |buffer, cx| buffer.edit([(8..10, "")], None, cx));
-        assert_eq!(
-            from_completion_edits(
-                &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
-                &buffer,
-                cx
-            ),
-            vec![(4..4, "M".to_string())]
-        );
+            buffer.update(cx, |buffer, cx| buffer.edit([(8..10, "")], None, cx));
+            assert_eq!(
+                from_completion_edits(
+                    &completion.interpolate(&buffer.read(cx).snapshot()).unwrap(),
+                    &buffer,
+                    cx
+                ),
+                vec![(4..4, "M".to_string())]
+            );
 
-        buffer.update(cx, |buffer, cx| buffer.edit([(4..6, "")], None, cx));
-        assert_eq!(completion.interpolate(&buffer.read(cx).snapshot()), None);
+            buffer.update(cx, |buffer, cx| buffer.edit([(4..6, "")], None, cx));
+            assert_eq!(completion.interpolate(&buffer.read(cx).snapshot()), None);
+        })
     }
 
     #[gpui::test]