diff --git a/src/vs/workbench/contrib/search/browser/searchActionsTopBar.ts b/src/vs/workbench/contrib/search/browser/searchActionsTopBar.ts
index 64aed44242198..8e3fa06a21e7b 100644
--- a/src/vs/workbench/contrib/search/browser/searchActionsTopBar.ts
+++ b/src/vs/workbench/contrib/search/browser/searchActionsTopBar.ts
@@ -11,7 +11,7 @@ import { IViewsService } from '../../../services/views/common/viewsService.js';
 import { searchClearIcon, searchCollapseAllIcon, searchExpandAllIcon, searchRefreshIcon, searchShowAsList, searchShowAsTree, searchStopIcon } from './searchIcons.js';
 import * as Constants from '../common/constants.js';
 import { ISearchHistoryService } from '../common/searchHistoryService.js';
-import { FileMatch, FolderMatch, FolderMatchNoRoot, FolderMatchWorkspaceRoot, Match, SearchResult } from './searchModel.js';
+import { FileMatch, FolderMatch, FolderMatchNoRoot, FolderMatchWorkspaceRoot, Match, SearchResult, TextSearchResult } from './searchModel.js';
 import { VIEW_ID } from '../../../services/search/common/search.js';
 import { ContextKeyExpr } from '../../../../platform/contextkey/common/contextkey.js';
 import { Action2, MenuId, registerAction2 } from '../../../../platform/actions/common/actions.js';
@@ -266,8 +266,16 @@ function collapseDeepestExpandedLevel(accessor: ServicesAccessor) {
 		let canCollapseFileMatchLevel = false;
 		let canCollapseFirstLevel = false;
 
+		do {
+			node = navigator.next();
+		} while (node instanceof TextSearchResult);
+		// go to the first non-TextSearchResult node
+
 		if (node instanceof FolderMatchWorkspaceRoot || searchView.isTreeLayoutViewVisible) {
 			while (node = navigator.next()) {
+				if (node instanceof TextSearchResult) {
+					continue;
+				}
 				if (node instanceof Match) {
 					canCollapseFileMatchLevel = true;
 					break;
@@ -277,13 +285,13 @@ function collapseDeepestExpandedLevel(accessor: ServicesAccessor) {
 
 					if (node instanceof FolderMatch) {
 						const compressionStartNode = viewer.getCompressedTreeNode(node)?.elements[0].element;
-						// Match elements should never be compressed, so !(compressionStartNode instanceof Match) should always be true here
-						nodeToTest = (compressionStartNode && !(compressionStartNode instanceof Match) && !(compressionStartNode instanceof SearchResult)) ? compressionStartNode : node;
+						// Match elements should never be compressed, so `!(compressionStartNode instanceof Match)` should always be true here. Same with `!(compressionStartNode instanceof TextSearchResult)`
+						nodeToTest = (compressionStartNode && !(compressionStartNode instanceof Match) && !(compressionStartNode instanceof TextSearchResult) && !(compressionStartNode instanceof SearchResult)) ? compressionStartNode : node;
 					}
 
 					const immediateParent = nodeToTest.parent();
 
-					if (!(immediateParent instanceof FolderMatchWorkspaceRoot || immediateParent instanceof FolderMatchNoRoot || immediateParent instanceof SearchResult)) {
+					if (!(immediateParent instanceof TextSearchResult || immediateParent instanceof FolderMatchWorkspaceRoot || immediateParent instanceof FolderMatchNoRoot || immediateParent instanceof SearchResult)) {
 						canCollapseFirstLevel = true;
 					}
 				}
@@ -320,6 +328,20 @@ function collapseDeepestExpandedLevel(accessor: ServicesAccessor) {
 					}
 				} while (node = navigator.next());
 			}
+		} else if (navigator.first() instanceof TextSearchResult) {
+			// if AI results are visible, just collapse everything under the TextSearchResult.
+			node = navigator.first();
+			do {
+				if (!node) {
+					break;
+
+				}
+
+				if (viewer.getParentElement(node) instanceof TextSearchResult) {
+					viewer.collapse(node);
+				}
+			} while (node = navigator.next());
+
 		} else {
 			viewer.collapseAll();
 		}
diff --git a/src/vs/workbench/contrib/search/browser/searchView.ts b/src/vs/workbench/contrib/search/browser/searchView.ts
index 0b70373878f7c..9604683c0950f 100644
--- a/src/vs/workbench/contrib/search/browser/searchView.ts
+++ b/src/vs/workbench/contrib/search/browser/searchView.ts
@@ -1008,7 +1008,7 @@ export class SearchView extends ViewPane {
 		const navigator = viewer.navigate();
 		let node = navigator.first();
 		do {
-			if (node && !viewer.isCollapsed(node) && (this.viewModel.hasAIResults || node.id() !== AI_TEXT_SEARCH_RESULT_ID)) {
+			if (node && !viewer.isCollapsed(node) && (this.shouldShowAIResults() && !(node instanceof TextSearchResult))) {
 				// ignore the ai text search result id
 				return true;
 			}