diff --git a/crates/project_panel/src/project_panel.rs b/crates/project_panel/src/project_panel.rs
index b9e12695ca3d8c860147d3ae7bf4e046232b272b..e96b15ce2e5936a4d09ae1c1f5741b33050aba6d 100644
--- a/crates/project_panel/src/project_panel.rs
+++ b/crates/project_panel/src/project_panel.rs
@@ -5360,6 +5360,7 @@ impl ProjectPanel {
                             "project_panel_path_component_{}_{index}",
                             entry_id.to_usize()
                         )))
+                        .when(index == 0, |this| this.ml_neg_0p5())
                         .px_0p5()
                         .rounded_xs()
                         .hover(|style| style.bg(cx.theme().colors().element_active))