diff --git a/crates/editor/src/editor.rs b/crates/editor/src/editor.rs
index 329082e6751ab3a95a6fa42a0dc73b5d2f1e7ec4..bdfcef01ae06bbf13d5e07544d60e20674808c03 100644
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -18126,6 +18126,13 @@ impl Editor {
         let mut to_fold = Vec::new();
         let mut stack = vec![(0, snapshot.max_row().0, 1)];
 
+        let row_ranges_to_keep: Vec<Range<u32>> = self
+            .selections
+            .all::<Point>(cx)
+            .into_iter()
+            .map(|sel| sel.start.row..sel.end.row)
+            .collect();
+
         while let Some((mut start_row, end_row, current_level)) = stack.pop() {
             while start_row < end_row {
                 match self
@@ -18139,7 +18146,13 @@ impl Editor {
                         if current_level < fold_at_level {
                             stack.push((nested_start_row, nested_end_row, current_level + 1));
                         } else if current_level == fold_at_level {
-                            to_fold.push(crease);
+                            // Fold iff there is no selection completely contained within the fold region
+                            if !row_ranges_to_keep.iter().any(|selection| {
+                                selection.end >= nested_start_row
+                                    && selection.start <= nested_end_row
+                            }) {
+                                to_fold.push(crease);
+                            }
                         }
 
                         start_row = nested_end_row + 1;
@@ -18846,7 +18859,12 @@ impl Editor {
     ) {
         self.hide_mouse_cursor(HideMouseCursorOrigin::TypingAction, cx);
         let snapshot = self.snapshot(window, cx);
-        let hunks = snapshot.hunks_for_ranges(self.selections.ranges(cx));
+        let hunks = snapshot.hunks_for_ranges(
+            self.selections
+                .all(cx)
+                .into_iter()
+                .map(|selection| selection.range()),
+        );
         let mut ranges_by_buffer = HashMap::default();
         self.transact(window, cx, |editor, _window, cx| {
             for hunk in hunks {
diff --git a/crates/editor/src/editor_tests.rs b/crates/editor/src/editor_tests.rs
index c01e585023d1eb49c1656c182117ad5cbf573087..a4ba25c5f16c7b82cc9ba3ef6a691287ed92e72e 100644
--- a/crates/editor/src/editor_tests.rs
+++ b/crates/editor/src/editor_tests.rs
@@ -1256,6 +1256,63 @@ fn test_fold_at_level(cx: &mut TestAppContext) {
             editor.display_text(cx),
             editor.buffer.read(cx).read(cx).text()
         );
+        let (_, positions) = marked_text_ranges(
+            &"
+                       class Foo:
+                           # Hello!
+
+                           def a():
+                              print(1)
+
+                           def b():
+                               p«riˇ»nt(2)
+
+
+                       class Bar:
+                           # World!
+
+                           def a():
+                               «ˇprint(1)
+
+                           def b():
+                               print(2)»
+
+
+                   "
+            .unindent(),
+            true,
+        );
+
+        editor.change_selections(SelectionEffects::default(), window, cx, |s| {
+            s.select_ranges(positions)
+        });
+
+        editor.fold_at_level(&FoldAtLevel(2), window, cx);
+        assert_eq!(
+            editor.display_text(cx),
+            "
+                class Foo:
+                    # Hello!
+
+                    def a():⋯
+
+                    def b():
+                        print(2)
+
+
+                class Bar:
+                    # World!
+
+                    def a():
+                        print(1)
+
+                    def b():
+                        print(2)
+
+
+            "
+            .unindent(),
+        );
     });
 }
 
diff --git a/crates/editor/src/selections_collection.rs b/crates/editor/src/selections_collection.rs
index 517a9dc6391caa9c60b366a229c721daaeae8533..67f19810109698214339f48aaa59afe10be7c1b7 100644
--- a/crates/editor/src/selections_collection.rs
+++ b/crates/editor/src/selections_collection.rs
@@ -332,6 +332,9 @@ impl SelectionsCollection {
         self.all(cx).last().unwrap().clone()
     }
 
+    /// Returns a list of (potentially backwards!) ranges representing the selections.
+    /// Useful for test assertions, but prefer `.all()` instead.
+    #[cfg(any(test, feature = "test-support"))]
     pub fn ranges<D: TextDimension + Ord + Sub<D, Output = D>>(
         &self,
         cx: &mut App,