diff --git a/src/vs/workbench/services/textfile/common/textFileEditorModel.ts b/src/vs/workbench/services/textfile/common/textFileEditorModel.ts
index 3150fdd7b1d57..53ed1637f42e8 100644
--- a/src/vs/workbench/services/textfile/common/textFileEditorModel.ts
+++ b/src/vs/workbench/services/textfile/common/textFileEditorModel.ts
@@ -1013,6 +1013,11 @@ export class TextFileEditorModel extends BaseTextEditorModel implements ITextFil
 			this.lastResolvedFileStat = newFileStat;
 		}
 
+		// In all other cases update only the readonly and locked flags
+		else {
+			this.lastResolvedFileStat = { ...this.lastResolvedFileStat, readonly: newFileStat.readonly, locked: newFileStat.locked };
+		}
+
 		// Signal that the readonly state changed
 		if (this.isReadonly() !== oldReadonly) {
 			this._onDidChangeReadonly.fire();
diff --git a/src/vs/workbench/services/textfile/test/browser/textFileEditorModel.test.ts b/src/vs/workbench/services/textfile/test/browser/textFileEditorModel.test.ts
index e7d5625101883..2dc439f6f816a 100644
--- a/src/vs/workbench/services/textfile/test/browser/textFileEditorModel.test.ts
+++ b/src/vs/workbench/services/textfile/test/browser/textFileEditorModel.test.ts
@@ -10,7 +10,7 @@ import { EncodingMode, TextFileEditorModelState, snapshotToString, isTextFileEdi
 import { createFileEditorInput, workbenchInstantiationService, TestServiceAccessor, TestReadonlyTextFileEditorModel, getLastResolvedFileStat } from 'vs/workbench/test/browser/workbenchTestServices';
 import { ensureNoDisposablesAreLeakedInTestSuite, toResource } from 'vs/base/test/common/utils';
 import { TextFileEditorModelManager } from 'vs/workbench/services/textfile/common/textFileEditorModelManager';
-import { FileOperationResult, FileOperationError } from 'vs/platform/files/common/files';
+import { FileOperationResult, FileOperationError, NotModifiedSinceFileOperationError } from 'vs/platform/files/common/files';
 import { DeferredPromise, timeout } from 'vs/base/common/async';
 import { assertIsDefined } from 'vs/base/common/types';
 import { createTextBufferFactory } from 'vs/editor/common/model/textModel';
@@ -608,6 +608,22 @@ suite('Files - TextFileEditorModel', () => {
 		assert.strictEqual(getLastModifiedTime(model), mtime);
 	});
 
+	test('stat.readonly and stat.locked can change when decreased mtime is ignored', async function () {
+		const model: TextFileEditorModel = disposables.add(instantiationService.createInstance(TextFileEditorModel, toResource.call(this, '/path/index_async.txt'), 'utf8', undefined));
+
+		await model.resolve();
+
+		const stat = assertIsDefined(getLastResolvedFileStat(model));
+		accessor.textFileService.setReadStreamErrorOnce(new NotModifiedSinceFileOperationError('error', { ...stat, mtime: stat.mtime - 1, readonly: !stat.readonly, locked: !stat.locked }));
+
+		await model.resolve();
+
+		assert.ok(model);
+		assert.strictEqual(getLastModifiedTime(model), stat.mtime, 'mtime should not decrease');
+		assert.notStrictEqual(getLastResolvedFileStat(model)?.readonly, stat.readonly, 'readonly should have changed despite simultaneous attempt to decrease mtime');
+		assert.notStrictEqual(getLastResolvedFileStat(model)?.locked, stat.locked, 'locked should have changed despite simultaneous attempt to decrease mtime');
+	});
+
 	test('Resolve error is handled gracefully if model already exists', async function () {
 		const model: TextFileEditorModel = disposables.add(instantiationService.createInstance(TextFileEditorModel, toResource.call(this, '/path/index_async.txt'), 'utf8', undefined));
 
diff --git a/src/vs/workbench/services/workingCopy/common/storedFileWorkingCopy.ts b/src/vs/workbench/services/workingCopy/common/storedFileWorkingCopy.ts
index 0c3532605b9dd..8a7b11fe9c81c 100644
--- a/src/vs/workbench/services/workingCopy/common/storedFileWorkingCopy.ts
+++ b/src/vs/workbench/services/workingCopy/common/storedFileWorkingCopy.ts
@@ -1242,6 +1242,11 @@ export class StoredFileWorkingCopy<M extends IStoredFileWorkingCopyModel> extend
 			this.lastResolvedFileStat = newFileStat;
 		}
 
+		// In all other cases update only the readonly and locked flags
+		else {
+			this.lastResolvedFileStat = { ...this.lastResolvedFileStat, readonly: newFileStat.readonly, locked: newFileStat.locked };
+		}
+
 		// Signal that the readonly state changed
 		if (this.isReadonly() !== oldReadonly) {
 			this._onDidChangeReadonly.fire();
diff --git a/src/vs/workbench/services/workingCopy/test/browser/storedFileWorkingCopy.test.ts b/src/vs/workbench/services/workingCopy/test/browser/storedFileWorkingCopy.test.ts
index 33c986d3432f0..2447f1292250c 100644
--- a/src/vs/workbench/services/workingCopy/test/browser/storedFileWorkingCopy.test.ts
+++ b/src/vs/workbench/services/workingCopy/test/browser/storedFileWorkingCopy.test.ts
@@ -10,7 +10,7 @@ import { StoredFileWorkingCopy, StoredFileWorkingCopyState, IStoredFileWorkingCo
 import { bufferToStream, newWriteableBufferStream, streamToBuffer, VSBuffer, VSBufferReadableStream } from 'vs/base/common/buffer';
 import { CancellationToken } from 'vs/base/common/cancellation';
 import { Disposable, DisposableStore } from 'vs/base/common/lifecycle';
-import { TestServiceAccessor, workbenchInstantiationService } from 'vs/workbench/test/browser/workbenchTestServices';
+import { getLastResolvedFileStat, TestServiceAccessor, workbenchInstantiationService } from 'vs/workbench/test/browser/workbenchTestServices';
 import { IInstantiationService } from 'vs/platform/instantiation/common/instantiation';
 import { basename } from 'vs/base/common/resources';
 import { FileChangesEvent, FileChangeType, FileOperationError, FileOperationResult, IFileStatWithMetadata, IWriteFileOptions, NotModifiedSinceFileOperationError } from 'vs/platform/files/common/files';
@@ -20,6 +20,7 @@ import { consumeReadable, consumeStream, isReadableStream } from 'vs/base/common
 import { runWithFakedTimers } from 'vs/base/test/common/timeTravelScheduler';
 import { ensureNoDisposablesAreLeakedInTestSuite } from 'vs/base/test/common/utils';
 import { SnapshotContext } from 'vs/workbench/services/workingCopy/common/fileWorkingCopy';
+import { assertIsDefined } from 'vs/base/common/types';
 
 export class TestStoredFileWorkingCopyModel extends Disposable implements IStoredFileWorkingCopyModel {
 
@@ -513,6 +514,23 @@ suite('StoredFileWorkingCopy', function () {
 		});
 	});
 
+	test('stat.readonly and stat.locked can change when decreased mtime is ignored', async function () {
+
+		await workingCopy.resolve();
+
+		const stat = assertIsDefined(getLastResolvedFileStat(workingCopy));
+		try {
+			accessor.fileService.readShouldThrowError = new NotModifiedSinceFileOperationError('error', { ...stat, mtime: stat.mtime - 1, readonly: !stat.readonly, locked: !stat.locked });
+			await workingCopy.resolve();
+		} finally {
+			accessor.fileService.readShouldThrowError = undefined;
+		}
+
+		assert.strictEqual(getLastResolvedFileStat(workingCopy)?.mtime, stat.mtime, 'mtime should not decrease');
+		assert.notStrictEqual(getLastResolvedFileStat(workingCopy)?.readonly, stat.readonly, 'readonly should have changed despite simultaneous attempt to decrease mtime');
+		assert.notStrictEqual(getLastResolvedFileStat(workingCopy)?.locked, stat.locked, 'locked should have changed despite simultaneous attempt to decrease mtime');
+	});
+
 	test('resolve (FILE_NOT_MODIFIED_SINCE can be handled for resolved working copies)', async () => {
 		await workingCopy.resolve();