diff --git a/crates/language/src/buffer.rs b/crates/language/src/buffer.rs
index a7e39ff8b62eb8eafbb3a5ffaa081aa506486025..ed09ffbff2e3d5a556c960b23f26ad763d7de271 100644
--- a/crates/language/src/buffer.rs
+++ b/crates/language/src/buffer.rs
@@ -569,7 +569,9 @@ impl Buffer {
                     .read_with(&cx, |this, cx| this.diff(new_text, cx))
                     .await;
                 this.update(&mut cx, |this, cx| {
-                    if let Some(transaction) = this.apply_diff(diff, cx).cloned() {
+                    this.finalize_last_transaction();
+                    this.apply_diff(diff, cx);
+                    if let Some(transaction) = this.finalize_last_transaction().cloned() {
                         this.did_reload(
                             this.version(),
                             this.as_rope().fingerprint(),
@@ -1172,20 +1174,15 @@ impl Buffer {
         })
     }
 
-    pub fn apply_diff(&mut self, diff: Diff, cx: &mut ModelContext<Self>) -> Option<&Transaction> {
-        if self.version != diff.base_version {
+    pub fn apply_diff(&mut self, diff: Diff, cx: &mut ModelContext<Self>) -> Option<TransactionId> {
+        if self.version == diff.base_version {
+            self.apply_non_conflicting_portion_of_diff(diff, cx)
+        } else {
             return None;
         }
-
-        self.finalize_last_transaction();
-        self.start_transaction();
-        self.text.set_line_ending(diff.line_ending);
-        self.edit(diff.edits, None, cx);
-        self.end_transaction(cx)?;
-        self.finalize_last_transaction()
     }
 
-    pub fn apply_diff_force(
+    pub fn apply_non_conflicting_portion_of_diff(
         &mut self,
         diff: Diff,
         cx: &mut ModelContext<Self>,
diff --git a/crates/language/src/buffer_tests.rs b/crates/language/src/buffer_tests.rs
index 9212534959c07db0d5e305c2b722c4b35ea75ff1..c7fc25d793ac0d16d4904a504c38181545775fa4 100644
--- a/crates/language/src/buffer_tests.rs
+++ b/crates/language/src/buffer_tests.rs
@@ -254,7 +254,7 @@ async fn test_normalize_whitespace(cx: &mut gpui::TestAppContext) {
     let format_diff = format.await;
     buffer.update(cx, |buffer, cx| {
         let version_before_format = format_diff.base_version.clone();
-        buffer.apply_diff_force(format_diff, cx);
+        buffer.apply_non_conflicting_portion_of_diff(format_diff, cx);
 
         // The outcome depends on the order of concurrent taks.
         //
diff --git a/crates/project/src/project.rs b/crates/project/src/project.rs
index d238009559c7d602b15d783fc4a0fab147da7507..9ad29691c5bfd4420669b5c0a28b116c8b28df07 100644
--- a/crates/project/src/project.rs
+++ b/crates/project/src/project.rs
@@ -2906,7 +2906,7 @@ impl Project {
                             .await;
                         buffer.update(&mut cx, move |buffer, cx| {
                             buffer.finalize_last_transaction();
-                            buffer.apply_diff_force(diff, cx)
+                            buffer.apply_non_conflicting_portion_of_diff(diff, cx)
                         })
                     } else {
                         None