diff --git a/assets/settings/default.json b/assets/settings/default.json
index 35b2ca20f2..a9e1865258 100644
--- a/assets/settings/default.json
+++ b/assets/settings/default.json
@@ -318,6 +318,10 @@
     "show_parameter_hints": true,
     // Corresponds to null/None LSP hint type value.
     "show_other_hints": true,
+    // Whether to show a background for inlay hints.
+    //
+    // If set to `true`, the background will use the `hint.background` color from the current theme.
+    "show_background": false,
     // Time to wait after editing the buffer, before requesting the hints,
     // set to 0 to disable debouncing.
     "edit_debounce_ms": 700,
diff --git a/crates/assistant/src/prompt_library.rs b/crates/assistant/src/prompt_library.rs
index c99a7c1521..76ee95d507 100644
--- a/crates/assistant/src/prompt_library.rs
+++ b/crates/assistant/src/prompt_library.rs
@@ -921,10 +921,8 @@ impl PromptLibrary {
                                                     scrollbar_width: Pixels::ZERO,
                                                     syntax: cx.theme().syntax().clone(),
                                                     status: cx.theme().status().clone(),
-                                                    inlay_hints_style: HighlightStyle {
-                                                        color: Some(cx.theme().status().hint),
-                                                        ..HighlightStyle::default()
-                                                    },
+                                                    inlay_hints_style:
+                                                        editor::make_inlay_hints_style(cx),
                                                     suggestions_style: HighlightStyle {
                                                         color: Some(cx.theme().status().predictive),
                                                         ..HighlightStyle::default()
diff --git a/crates/collab/src/tests/editor_tests.rs b/crates/collab/src/tests/editor_tests.rs
index de03144774..7fb1a49f87 100644
--- a/crates/collab/src/tests/editor_tests.rs
+++ b/crates/collab/src/tests/editor_tests.rs
@@ -1524,6 +1524,7 @@ async fn test_mutual_editor_inlay_hint_cache_update(
                     show_type_hints: true,
                     show_parameter_hints: false,
                     show_other_hints: true,
+                    show_background: false,
                 })
             });
         });
@@ -1538,6 +1539,7 @@ async fn test_mutual_editor_inlay_hint_cache_update(
                     show_type_hints: true,
                     show_parameter_hints: false,
                     show_other_hints: true,
+                    show_background: false,
                 })
             });
         });
@@ -1786,6 +1788,7 @@ async fn test_inlay_hint_refresh_is_forwarded(
                     show_type_hints: false,
                     show_parameter_hints: false,
                     show_other_hints: false,
+                    show_background: false,
                 })
             });
         });
@@ -1800,6 +1803,7 @@ async fn test_inlay_hint_refresh_is_forwarded(
                     show_type_hints: true,
                     show_parameter_hints: true,
                     show_other_hints: true,
+                    show_background: false,
                 })
             });
         });
diff --git a/crates/editor/src/editor.rs b/crates/editor/src/editor.rs
index 61a59665c1..f797f82832 100644
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -412,6 +412,19 @@ impl Default for EditorStyle {
     }
 }
 
+pub fn make_inlay_hints_style(cx: &WindowContext) -> HighlightStyle {
+    let show_background = all_language_settings(None, cx)
+        .language(None)
+        .inlay_hints
+        .show_background;
+
+    HighlightStyle {
+        color: Some(cx.theme().status().hint),
+        background_color: show_background.then(|| cx.theme().status().hint_background),
+        ..HighlightStyle::default()
+    }
+}
+
 type CompletionId = usize;
 
 #[derive(Clone, Debug)]
@@ -10034,9 +10047,8 @@ impl Editor {
                                                 syntax: cx.editor_style.syntax.clone(),
                                                 status: cx.editor_style.status.clone(),
                                                 inlay_hints_style: HighlightStyle {
-                                                    color: Some(cx.theme().status().hint),
                                                     font_weight: Some(FontWeight::BOLD),
-                                                    ..HighlightStyle::default()
+                                                    ..make_inlay_hints_style(cx)
                                                 },
                                                 suggestions_style: HighlightStyle {
                                                     color: Some(cx.theme().status().predictive),
@@ -12992,10 +13004,7 @@ impl Render for Editor {
                 scrollbar_width: EditorElement::SCROLLBAR_WIDTH,
                 syntax: cx.theme().syntax().clone(),
                 status: cx.theme().status().clone(),
-                inlay_hints_style: HighlightStyle {
-                    color: Some(cx.theme().status().hint),
-                    ..HighlightStyle::default()
-                },
+                inlay_hints_style: make_inlay_hints_style(cx),
                 suggestions_style: HighlightStyle {
                     color: Some(cx.theme().status().predictive),
                     ..HighlightStyle::default()
diff --git a/crates/editor/src/hover_links.rs b/crates/editor/src/hover_links.rs
index 3f590273df..ac30b91996 100644
--- a/crates/editor/src/hover_links.rs
+++ b/crates/editor/src/hover_links.rs
@@ -1205,6 +1205,7 @@ mod tests {
                 show_type_hints: true,
                 show_parameter_hints: true,
                 show_other_hints: true,
+                show_background: false,
             })
         });
 
diff --git a/crates/editor/src/hover_popover.rs b/crates/editor/src/hover_popover.rs
index adbb5899ff..f6eb837ae8 100644
--- a/crates/editor/src/hover_popover.rs
+++ b/crates/editor/src/hover_popover.rs
@@ -1337,6 +1337,7 @@ mod tests {
                 show_type_hints: true,
                 show_parameter_hints: true,
                 show_other_hints: true,
+                show_background: false,
             })
         });
 
diff --git a/crates/editor/src/inlay_hint_cache.rs b/crates/editor/src/inlay_hint_cache.rs
index 62c5cde9d8..24ccf64c4c 100644
--- a/crates/editor/src/inlay_hint_cache.rs
+++ b/crates/editor/src/inlay_hint_cache.rs
@@ -1296,6 +1296,7 @@ pub mod tests {
                 show_type_hints: allowed_hint_kinds.contains(&Some(InlayHintKind::Type)),
                 show_parameter_hints: allowed_hint_kinds.contains(&Some(InlayHintKind::Parameter)),
                 show_other_hints: allowed_hint_kinds.contains(&None),
+                show_background: false,
             })
         });
 
@@ -1428,6 +1429,7 @@ pub mod tests {
                 show_type_hints: true,
                 show_parameter_hints: true,
                 show_other_hints: true,
+                show_background: false,
             })
         });
 
@@ -1547,6 +1549,7 @@ pub mod tests {
                 show_type_hints: true,
                 show_parameter_hints: true,
                 show_other_hints: true,
+                show_background: false,
             })
         });
 
@@ -1777,6 +1780,7 @@ pub mod tests {
                 show_type_hints: allowed_hint_kinds.contains(&Some(InlayHintKind::Type)),
                 show_parameter_hints: allowed_hint_kinds.contains(&Some(InlayHintKind::Parameter)),
                 show_other_hints: allowed_hint_kinds.contains(&None),
+                show_background: false,
             })
         });
 
@@ -1941,6 +1945,7 @@ pub mod tests {
                     show_parameter_hints: new_allowed_hint_kinds
                         .contains(&Some(InlayHintKind::Parameter)),
                     show_other_hints: new_allowed_hint_kinds.contains(&None),
+                    show_background: false,
                 })
             });
             cx.executor().run_until_parked();
@@ -1987,6 +1992,7 @@ pub mod tests {
                 show_parameter_hints: another_allowed_hint_kinds
                     .contains(&Some(InlayHintKind::Parameter)),
                 show_other_hints: another_allowed_hint_kinds.contains(&None),
+                show_background: false,
             })
         });
         cx.executor().run_until_parked();
@@ -2047,6 +2053,7 @@ pub mod tests {
                 show_parameter_hints: final_allowed_hint_kinds
                     .contains(&Some(InlayHintKind::Parameter)),
                 show_other_hints: final_allowed_hint_kinds.contains(&None),
+                show_background: false,
             })
         });
         cx.executor().run_until_parked();
@@ -2122,6 +2129,7 @@ pub mod tests {
                 show_type_hints: true,
                 show_parameter_hints: true,
                 show_other_hints: true,
+                show_background: false,
             })
         });
 
@@ -2256,6 +2264,7 @@ pub mod tests {
                 show_type_hints: true,
                 show_parameter_hints: true,
                 show_other_hints: true,
+                show_background: false,
             })
         });
 
@@ -2551,6 +2560,7 @@ pub mod tests {
                 show_type_hints: true,
                 show_parameter_hints: true,
                 show_other_hints: true,
+                show_background: false,
             })
         });
 
@@ -2902,6 +2912,7 @@ pub mod tests {
                 show_type_hints: false,
                 show_parameter_hints: false,
                 show_other_hints: false,
+                show_background: false,
             })
         });
 
@@ -3096,6 +3107,7 @@ pub mod tests {
                 show_type_hints: true,
                 show_parameter_hints: true,
                 show_other_hints: true,
+                show_background: false,
             })
         });
         cx.executor().run_until_parked();
@@ -3131,6 +3143,7 @@ pub mod tests {
                 show_type_hints: true,
                 show_parameter_hints: true,
                 show_other_hints: true,
+                show_background: false,
             })
         });
 
@@ -3225,6 +3238,7 @@ pub mod tests {
                 show_type_hints: true,
                 show_parameter_hints: true,
                 show_other_hints: true,
+                show_background: false,
             })
         });
 
@@ -3305,6 +3319,7 @@ pub mod tests {
                 show_type_hints: true,
                 show_parameter_hints: true,
                 show_other_hints: true,
+                show_background: false,
             })
         });
         cx.executor().run_until_parked();
diff --git a/crates/language/src/language_settings.rs b/crates/language/src/language_settings.rs
index b465173cee..77c9a1d18c 100644
--- a/crates/language/src/language_settings.rs
+++ b/crates/language/src/language_settings.rs
@@ -741,6 +741,14 @@ pub struct InlayHintSettings {
     /// Default: true
     #[serde(default = "default_true")]
     pub show_other_hints: bool,
+    /// Whether to show a background for inlay hints.
+    ///
+    /// If set to `true`, the background will use the `hint.background` color
+    /// from the current theme.
+    ///
+    /// Default: false
+    #[serde(default)]
+    pub show_background: bool,
     /// Whether or not to debounce inlay hints updates after buffer edits.
     ///
     /// Set to 0 to disable debouncing.
diff --git a/docs/src/configuring-zed.md b/docs/src/configuring-zed.md
index 87cd053f1a..382c33c216 100644
--- a/docs/src/configuring-zed.md
+++ b/docs/src/configuring-zed.md
@@ -982,6 +982,7 @@ To interpret all `.c` files as C++, files called `MyLockFile` as TOML and files
   "show_type_hints": true,
   "show_parameter_hints": true,
   "show_other_hints": true,
+  "show_background": false,
   "edit_debounce_ms": 700,
   "scroll_debounce_ms": 50
 }