diff --git a/crates/vim/src/normal.rs b/crates/vim/src/normal.rs
index e200c24b94468b141020e12c0230fb1908ffbe8e..fae810d64c587f96c587057615b138b4baabd227 100644
--- a/crates/vim/src/normal.rs
+++ b/crates/vim/src/normal.rs
@@ -386,6 +386,8 @@ impl Vim {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        let temp_mode_motion = motion.clone();
+
         match operator {
             None => self.move_cursor(motion, times, window, cx),
             Some(Operator::Change) => self.change_motion(motion, times, forced_motion, window, cx),
@@ -475,7 +477,7 @@ impl Vim {
             }
         }
         // Exit temporary normal mode (if active).
-        self.exit_temporary_normal(window, cx);
+        self.exit_temporary_normal(Some(&temp_mode_motion), window, cx);
     }
 
     pub fn normal_object(
@@ -1052,9 +1054,25 @@ impl Vim {
         });
     }
 
-    fn exit_temporary_normal(&mut self, window: &mut Window, cx: &mut Context<Self>) {
+    /// If temporary mode is enabled, switches back to insert mode, using the
+    /// provided `motion` to determine whether to move the cursor before
+    /// re-enabling insert mode, for example, when `EndOfLine` ($) is used.
+    fn exit_temporary_normal(
+        &mut self,
+        motion: Option<&Motion>,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) {
         if self.temp_mode {
             self.switch_mode(Mode::Insert, true, window, cx);
+
+            // Since we're switching from `Normal` mode to `Insert` mode, we'll
+            // move the cursor one position to the right, to ensure that, for
+            // motions like `EndOfLine` ($), the cursor is actually at the end
+            // of line and not on the last character.
+            if matches!(motion, Some(Motion::EndOfLine { .. })) {
+                self.move_cursor(Motion::Right, Some(1), window, cx);
+            }
         }
     }
 }
@@ -2269,4 +2287,35 @@ mod test {
             assert_eq!(workspace.active_pane().read(cx).active_item_index(), 1);
         });
     }
+
+    #[gpui::test]
+    async fn test_temporary_mode(cx: &mut gpui::TestAppContext) {
+        let mut cx = NeovimBackedTestContext::new(cx).await;
+
+        // Test jumping to the end of the line ($).
+        cx.set_shared_state(indoc! {"lorem ˇipsum"}).await;
+        cx.simulate_shared_keystrokes("i").await;
+        cx.shared_state().await.assert_matches();
+        cx.simulate_shared_keystrokes("ctrl-o $").await;
+        cx.shared_state().await.assert_eq(indoc! {"lorem ipsumˇ"});
+
+        // Test jumping to the next word.
+        cx.set_shared_state(indoc! {"loremˇ ipsum dolor"}).await;
+        cx.simulate_shared_keystrokes("a").await;
+        cx.shared_state().await.assert_matches();
+        cx.simulate_shared_keystrokes("a n d space ctrl-o w").await;
+        cx.shared_state()
+            .await
+            .assert_eq(indoc! {"lorem and ipsum ˇdolor"});
+
+        // Test yanking to end of line ($).
+        cx.set_shared_state(indoc! {"lorem ˇipsum dolor"}).await;
+        cx.simulate_shared_keystrokes("i").await;
+        cx.shared_state().await.assert_matches();
+        cx.simulate_shared_keystrokes("a n d space ctrl-o y $")
+            .await;
+        cx.shared_state()
+            .await
+            .assert_eq(indoc! {"lorem and ˇipsum dolor"});
+    }
 }
diff --git a/crates/vim/src/normal/scroll.rs b/crates/vim/src/normal/scroll.rs
index ff884e3b7393b39b86114338fe2af11e384e1fa0..9346d76323c4fb6c181fb914587a710c94be4537 100644
--- a/crates/vim/src/normal/scroll.rs
+++ b/crates/vim/src/normal/scroll.rs
@@ -96,7 +96,7 @@ impl Vim {
     ) {
         let amount = by(Vim::take_count(cx).map(|c| c as f32));
         Vim::take_forced_motion(cx);
-        self.exit_temporary_normal(window, cx);
+        self.exit_temporary_normal(None, window, cx);
         self.update_editor(cx, |_, editor, cx| {
             scroll_editor(editor, move_cursor, amount, window, cx)
         });
diff --git a/crates/vim/src/normal/yank.rs b/crates/vim/src/normal/yank.rs
index d5a45fca544d61735f62a8f46e849db2c009847f..4f1274dd88359fe8c3eb1b08ab3910c513b2d98d 100644
--- a/crates/vim/src/normal/yank.rs
+++ b/crates/vim/src/normal/yank.rs
@@ -59,7 +59,7 @@ impl Vim {
                 });
             });
         });
-        self.exit_temporary_normal(window, cx);
+        self.exit_temporary_normal(None, window, cx);
     }
 
     pub fn yank_object(
@@ -90,7 +90,7 @@ impl Vim {
                 });
             });
         });
-        self.exit_temporary_normal(window, cx);
+        self.exit_temporary_normal(None, window, cx);
     }
 
     pub fn yank_selections_content(
diff --git a/crates/vim/src/test/neovim_backed_test_context.rs b/crates/vim/src/test/neovim_backed_test_context.rs
index ce2bb6eb7b6f77788f3bc002ff979fdbb251cb94..21cdda111c4fdacaf0871dd087bca01de6f83957 100644
--- a/crates/vim/src/test/neovim_backed_test_context.rs
+++ b/crates/vim/src/test/neovim_backed_test_context.rs
@@ -31,6 +31,7 @@ pub struct SharedState {
 }
 
 impl SharedState {
+    /// Assert that both Zed and NeoVim have the same content and mode.
     #[track_caller]
     pub fn assert_matches(&self) {
         if self.neovim != self.editor || self.neovim_mode != self.editor_mode {
diff --git a/crates/vim/test_data/test_temporary_mode.json b/crates/vim/test_data/test_temporary_mode.json
new file mode 100644
index 0000000000000000000000000000000000000000..be370cf744f9fbd9bfed0a89a6db5ef7b6d568ad
--- /dev/null
+++ b/crates/vim/test_data/test_temporary_mode.json
@@ -0,0 +1,27 @@
+{"Put":{"state":"lorem ˇipsum"}}
+{"Key":"i"}
+{"Get":{"state":"lorem ˇipsum","mode":"Insert"}}
+{"Key":"ctrl-o"}
+{"Key":"$"}
+{"Get":{"state":"lorem ipsumˇ","mode":"Insert"}}
+{"Put":{"state":"loremˇ ipsum dolor"}}
+{"Key":"a"}
+{"Get":{"state":"lorem ˇipsum dolor","mode":"Insert"}}
+{"Key":"a"}
+{"Key":"n"}
+{"Key":"d"}
+{"Key":"space"}
+{"Key":"ctrl-o"}
+{"Key":"w"}
+{"Get":{"state":"lorem and ipsum ˇdolor","mode":"Insert"}}
+{"Put":{"state":"lorem ˇipsum dolor"}}
+{"Key":"i"}
+{"Get":{"state":"lorem ˇipsum dolor","mode":"Insert"}}
+{"Key":"a"}
+{"Key":"n"}
+{"Key":"d"}
+{"Key":"space"}
+{"Key":"ctrl-o"}
+{"Key":"y"}
+{"Key":"$"}
+{"Get":{"state":"lorem and ˇipsum dolor","mode":"Insert"}}