diff --git a/crates/editor/src/display_map.rs b/crates/editor/src/display_map.rs
index dae77579eb6a887accfe3a7510f21a3d9970dc6e..d00376fc02039e422b116f361f99656c211716b1 100644
--- a/crates/editor/src/display_map.rs
+++ b/crates/editor/src/display_map.rs
@@ -2268,23 +2268,38 @@ impl DisplaySnapshot {
             && !self.is_line_folded(MultiBufferRow(start.row))
         {
             let start_line_indent = self.line_indent_for_buffer_row(buffer_row);
-            let max_point = self.buffer_snapshot().max_point();
+            let snapshot = self.buffer_snapshot();
+            let max_point = snapshot.max_point();
             let mut closing_row = None;
 
+            // End byte of the smallest syntactic node enclosing `buffer_row`.
+            // Used to tell standalone top-level comments (which terminate the
+            // fold) apart from unindented content inside a multi-line string
+            // or block comment belonging to the folded node (which does not).
+            let foldable_node_end = {
+                let row_start = Point::new(buffer_row.0, 0);
+                let row_end = Point::new(buffer_row.0, snapshot.line_len(buffer_row));
+                snapshot
+                    .syntax_ancestor(row_start..row_end)
+                    .map(|(_, range)| range.end)
+            };
+
             for row in (buffer_row.0 + 1)..=max_point.row {
                 let line_indent = self.line_indent_for_buffer_row(MultiBufferRow(row));
                 if !line_indent.is_line_blank()
                     && line_indent.raw_len() <= start_line_indent.raw_len()
                 {
-                    if self
-                        .buffer_snapshot()
+                    let in_string_or_comment_scope = snapshot
                         .language_scope_at(Point::new(row, 0))
                         .is_some_and(|scope| {
                             matches!(
                                 scope.override_name(),
                                 Some("string") | Some("comment") | Some("comment.inclusive")
                             )
-                        })
+                        });
+                    if in_string_or_comment_scope
+                        && let Some(end) = foldable_node_end
+                        && Point::new(row, 0).to_offset(snapshot) < end
                     {
                         continue;
                     }
diff --git a/crates/editor/src/editor_tests.rs b/crates/editor/src/editor_tests.rs
index 647f40a95c3fca01dd0de74cbe9837feb461f11b..6dfbf3340244d1036f9764c5f7a7e50e9d84ab86 100644
--- a/crates/editor/src/editor_tests.rs
+++ b/crates/editor/src/editor_tests.rs
@@ -1636,6 +1636,182 @@ async fn test_fold_with_unindented_multiline_block_comment_includes_closing_brac
     });
 }
 
+#[gpui::test]
+async fn test_fold_preserves_top_level_comments_between_python_classes(cx: &mut TestAppContext) {
+    init_test(cx, |_| {});
+
+    let mut cx = EditorTestContext::new(cx).await;
+
+    let language = Arc::new(
+        Language::new(
+            LanguageConfig::default(),
+            Some(tree_sitter_python::LANGUAGE.into()),
+        )
+        .with_queries(LanguageQueries {
+            overrides: Some(Cow::from(indoc! {"
+                (comment) @comment.inclusive
+                (string) @string
+            "})),
+            ..Default::default()
+        })
+        .expect("Could not parse queries"),
+    );
+
+    cx.update_buffer(|buffer, cx| buffer.set_language(Some(language), cx));
+    cx.set_state(indoc! {"
+        class Foo:
+            def bar(self):
+                pass
+
+
+        # SECTION SEPARATOR
+
+        class Baz:
+            def qux(self):
+                passˇ
+    "});
+
+    cx.update_editor(|editor, window, cx| {
+        editor.fold_at_level(&FoldAtLevel(1), window, cx);
+        assert_eq!(
+            editor.display_text(cx),
+            indoc! {"
+                class Foo:⋯
+
+
+                # SECTION SEPARATOR
+
+                class Baz:
+                    def qux(self):
+                        pass
+            "},
+        );
+    });
+}
+
+#[gpui::test]
+async fn test_fold_preserves_top_level_comments_between_rust_functions(cx: &mut TestAppContext) {
+    init_test(cx, |_| {});
+
+    let mut cx = EditorTestContext::new(cx).await;
+
+    let language = Arc::new(
+        Language::new(
+            LanguageConfig::default(),
+            Some(tree_sitter_rust::LANGUAGE.into()),
+        )
+        .with_queries(LanguageQueries {
+            overrides: Some(Cow::from(indoc! {"
+                [
+                  (string_literal)
+                  (raw_string_literal)
+                ] @string
+                [
+                  (line_comment)
+                  (block_comment)
+                ] @comment.inclusive
+            "})),
+            ..Default::default()
+        })
+        .expect("Could not parse queries"),
+    );
+
+    cx.update_buffer(|buffer, cx| buffer.set_language(Some(language), cx));
+    cx.set_state(indoc! {"
+        fn foo() {
+            bar();
+        }
+
+
+        // SECTION SEPARATOR
+
+
+        fn baz() {
+            qux();ˇ
+        }
+    "});
+
+    cx.update_editor(|editor, window, cx| {
+        editor.fold_at_level(&FoldAtLevel(1), window, cx);
+        assert_eq!(
+            editor.display_text(cx),
+            indoc! {"
+                fn foo() {⋯
+                }
+
+
+                // SECTION SEPARATOR
+
+
+                fn baz() {
+                    qux();
+                }
+            "},
+        );
+    });
+}
+
+#[gpui::test]
+async fn test_fold_terminates_at_top_level_multiline_string_between_python_classes(
+    cx: &mut TestAppContext,
+) {
+    init_test(cx, |_| {});
+
+    let mut cx = EditorTestContext::new(cx).await;
+
+    let language = Arc::new(
+        Language::new(
+            LanguageConfig::default(),
+            Some(tree_sitter_python::LANGUAGE.into()),
+        )
+        .with_queries(LanguageQueries {
+            overrides: Some(Cow::from(indoc! {"
+                (comment) @comment.inclusive
+                (string) @string
+            "})),
+            ..Default::default()
+        })
+        .expect("Could not parse queries"),
+    );
+
+    cx.update_buffer(|buffer, cx| buffer.set_language(Some(language), cx));
+    cx.set_state(indoc! {r#"
+        class Foo:
+            def bar(self):
+                pass
+
+
+        """
+        top-level docstring at zero indent
+        """
+
+
+        class Baz:
+            def qux(self):
+                passˇ
+    "#});
+
+    cx.update_editor(|editor, window, cx| {
+        editor.fold_at_level(&FoldAtLevel(1), window, cx);
+        assert_eq!(
+            editor.display_text(cx),
+            indoc! {r#"
+                class Foo:⋯
+
+
+                """
+                top-level docstring at zero indent
+                """
+
+
+                class Baz:
+                    def qux(self):
+                        pass
+            "#},
+        );
+    });
+}
+
 #[gpui::test]
 fn test_fold_at_level(cx: &mut TestAppContext) {
     init_test(cx, |_| {});