diff --git a/src/vs/workbench/contrib/chat/browser/chatEditing/chatEditingEditorOverlay.ts b/src/vs/workbench/contrib/chat/browser/chatEditing/chatEditingEditorOverlay.ts
index fe828697972c2..683aa3e96222a 100644
--- a/src/vs/workbench/contrib/chat/browser/chatEditing/chatEditingEditorOverlay.ts
+++ b/src/vs/workbench/contrib/chat/browser/chatEditing/chatEditingEditorOverlay.ts
@@ -11,7 +11,6 @@ import { IInstantiationService } from '../../../../../platform/instantiation/com
 import { IChatEditingSession, IModifiedFileEntry } from '../../common/chatEditingService.js';
 import { MenuId } from '../../../../../platform/actions/common/actions.js';
 import { ActionViewItem } from '../../../../../base/browser/ui/actionbar/actionViewItems.js';
-import { IEditorService } from '../../../../services/editor/common/editorService.js';
 import { IActionRunner } from '../../../../../base/common/actions.js';
 import { $, addDisposableGenericMouseMoveListener, append, EventLike, reset } from '../../../../../base/browser/dom.js';
 import { renderIcon } from '../../../../../base/browser/ui/iconLabel/iconLabels.js';
@@ -46,7 +45,6 @@ class ChatEditorOverlayWidget implements IOverlayWidget {
 
 	constructor(
 		private readonly _editor: ICodeEditor,
-		@IEditorService editorService: IEditorService,
 		@IHoverService private readonly _hoverService: IHoverService,
 		@IChatService private readonly _chatService: IChatService,
 		@IInstantiationService private readonly _instaService: IInstantiationService,
diff --git a/src/vs/workbench/contrib/inlineChat/browser/inlineChatActions.ts b/src/vs/workbench/contrib/inlineChat/browser/inlineChatActions.ts
index 7f01bf0d3f51a..9047ab01e5ea9 100644
--- a/src/vs/workbench/contrib/inlineChat/browser/inlineChatActions.ts
+++ b/src/vs/workbench/contrib/inlineChat/browser/inlineChatActions.ts
@@ -582,12 +582,15 @@ export class StopSessionAction2 extends AbstractInline2ChatAction {
 			id: 'inlineChat2.stop',
 			title: localize2('stop', "Stop"),
 			f1: true,
-			precondition: ContextKeyExpr.and(CTX_HAS_SESSION.isEqualTo('empty'), CTX_INLINE_CHAT_VISIBLE),
-			keybinding: {
+			precondition: CTX_INLINE_CHAT_VISIBLE,
+			keybinding: [{
 				weight: KeybindingWeight.WorkbenchContrib,
 				primary: KeyCode.Escape,
-				secondary: [KeyMod.CtrlCmd | KeyCode.KeyI]
-			},
+			}, {
+				when: CTX_HAS_SESSION.isEqualTo('empty'),
+				weight: KeybindingWeight.WorkbenchContrib,
+				primary: KeyMod.CtrlCmd | KeyCode.KeyI,
+			}],
 		});
 	}
 
diff --git a/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts b/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
index a28735ca7aec0..770c39ca6a2ec 100644
--- a/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
+++ b/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
@@ -1279,10 +1279,11 @@ export class InlineChatController2 implements IEditorContribution {
 
 		this._store.add(autorunWithStore((r, store) => {
 
+			const model = editorObs.model.read(r);
 			const session = this._currentSession.read(r);
 			const isActive = this._isActiveController.read(r);
 
-			if (!session || !isActive) {
+			if (!session || !isActive || !model) {
 				visibleSessionObs.set(undefined, undefined);
 				return;
 			}
@@ -1291,12 +1292,35 @@ export class InlineChatController2 implements IEditorContribution {
 			const showShowUntil = this._showWidgetOverrideObs.read(r);
 			const hasNoRequests = chatModel.getRequests().length === 0;
 
+
+			const responseListener = store.add(new MutableDisposable());
+
 			store.add(chatModel.onDidChange(e => {
 				if (e.kind === 'addRequest') {
 					transaction(tx => {
 						this._showWidgetOverrideObs.set(false, tx);
 						visibleSessionObs.set(undefined, tx);
 					});
+					const { response } = e.request;
+					if (!response) {
+						return;
+					}
+					responseListener.value = response.onDidChange(async e => {
+
+						if (!response.isComplete) {
+							return;
+						}
+
+						const shouldShow = response.isCanceled // cancelled
+							|| response.result?.errorDetails // errors
+							|| !response.response.value.find(part => part.kind === 'textEditGroup'
+								&& part.edits.length > 0
+								&& isEqual(part.uri, model.uri)); // NO edits for file
+
+						if (shouldShow) {
+							visibleSessionObs.set(session, undefined);
+						}
+					});
 				}
 			}));
 
diff --git a/src/vs/workbench/contrib/inlineChat/browser/inlineChatSessionServiceImpl.ts b/src/vs/workbench/contrib/inlineChat/browser/inlineChatSessionServiceImpl.ts
index 8be4db0711c93..5f06c2dacb4d3 100644
--- a/src/vs/workbench/contrib/inlineChat/browser/inlineChatSessionServiceImpl.ts
+++ b/src/vs/workbench/contrib/inlineChat/browser/inlineChatSessionServiceImpl.ts
@@ -342,6 +342,7 @@ export class InlineChatSessionServiceImpl implements IInlineChatSessionService {
 
 		const store = new DisposableStore();
 		store.add(toDisposable(() => {
+			this._chatService.cancelCurrentRequestForSession(chatModel.sessionId);
 			editingSession.reject();
 			this._sessions2.delete(uri);
 			this._onDidChangeSessions.fire(this);