diff --git a/crates/editor/src/editor_tests.rs b/crates/editor/src/editor_tests.rs
index 5770d0cf1a..c9353a8e45 100644
--- a/crates/editor/src/editor_tests.rs
+++ b/crates/editor/src/editor_tests.rs
@@ -8437,6 +8437,247 @@ async fn test_completion(cx: &mut gpui::TestAppContext) {
     apply_additional_edits.await.unwrap();
 }
 
+#[gpui::test]
+async fn test_multiline_completion(cx: &mut gpui::TestAppContext) {
+    init_test(cx, |_| {});
+
+    let fs = FakeFs::new(cx.executor());
+    fs.insert_tree(
+        "/a",
+        json!({
+            "main.ts": "a",
+        }),
+    )
+    .await;
+
+    let project = Project::test(fs, ["/a".as_ref()], cx).await;
+    let language_registry = project.read_with(cx, |project, _| project.languages().clone());
+    let typescript_language = Arc::new(Language::new(
+        LanguageConfig {
+            name: "TypeScript".into(),
+            matcher: LanguageMatcher {
+                path_suffixes: vec!["ts".to_string()],
+                ..LanguageMatcher::default()
+            },
+            line_comments: vec!["// ".into()],
+            ..LanguageConfig::default()
+        },
+        Some(tree_sitter_typescript::LANGUAGE_TYPESCRIPT.into()),
+    ));
+    language_registry.add(typescript_language.clone());
+    let mut fake_servers = language_registry.register_fake_lsp(
+        "TypeScript",
+        FakeLspAdapter {
+            capabilities: lsp::ServerCapabilities {
+                completion_provider: Some(lsp::CompletionOptions {
+                    trigger_characters: Some(vec![".".to_string(), ":".to_string()]),
+                    ..lsp::CompletionOptions::default()
+                }),
+                signature_help_provider: Some(lsp::SignatureHelpOptions::default()),
+                ..lsp::ServerCapabilities::default()
+            },
+            // Emulate vtsls label generation
+            label_for_completion: Some(Box::new(|item, _| {
+                let text = if let Some(description) = item
+                    .label_details
+                    .as_ref()
+                    .and_then(|label_details| label_details.description.as_ref())
+                {
+                    format!("{} {}", item.label, description)
+                } else if let Some(detail) = &item.detail {
+                    format!("{} {}", item.label, detail)
+                } else {
+                    item.label.clone()
+                };
+                let len = text.len();
+                Some(language::CodeLabel {
+                    text,
+                    runs: Vec::new(),
+                    filter_range: 0..len,
+                })
+            })),
+            ..FakeLspAdapter::default()
+        },
+    );
+    let workspace = cx.add_window(|cx| Workspace::test_new(project.clone(), cx));
+    let cx = &mut VisualTestContext::from_window(*workspace, cx);
+    let worktree_id = workspace
+        .update(cx, |workspace, cx| {
+            workspace.project().update(cx, |project, cx| {
+                project.worktrees(cx).next().unwrap().read(cx).id()
+            })
+        })
+        .unwrap();
+    let _buffer = project
+        .update(cx, |project, cx| {
+            project.open_local_buffer_with_lsp("/a/main.ts", cx)
+        })
+        .await
+        .unwrap();
+    let editor = workspace
+        .update(cx, |workspace, cx| {
+            workspace.open_path((worktree_id, "main.ts"), None, true, cx)
+        })
+        .unwrap()
+        .await
+        .unwrap()
+        .downcast::<Editor>()
+        .unwrap();
+    let fake_server = fake_servers.next().await.unwrap();
+
+    let multiline_label = "StickyHeaderExcerpt {\n            excerpt,\n            next_excerpt_controls_present,\n            next_buffer_row,\n        }: StickyHeaderExcerpt<'_>,";
+    let multiline_label_2 = "a\nb\nc\n";
+    let multiline_detail = "[]struct {\n\tSignerId\tstruct {\n\t\tIssuer\t\t\tstring\t`json:\"issuer\"`\n\t\tSubjectSerialNumber\"`\n}}";
+    let multiline_description = "d\ne\nf\n";
+    let multiline_detail_2 = "g\nh\ni\n";
+
+    let mut completion_handle =
+        fake_server.handle_request::<lsp::request::Completion, _, _>(move |params, _| async move {
+            Ok(Some(lsp::CompletionResponse::Array(vec![
+                lsp::CompletionItem {
+                    label: multiline_label.to_string(),
+                    text_edit: Some(lsp::CompletionTextEdit::Edit(lsp::TextEdit {
+                        range: lsp::Range {
+                            start: lsp::Position {
+                                line: params.text_document_position.position.line,
+                                character: params.text_document_position.position.character,
+                            },
+                            end: lsp::Position {
+                                line: params.text_document_position.position.line,
+                                character: params.text_document_position.position.character,
+                            },
+                        },
+                        new_text: "new_text_1".to_string(),
+                    })),
+                    ..lsp::CompletionItem::default()
+                },
+                lsp::CompletionItem {
+                    label: "single line label 1".to_string(),
+                    detail: Some(multiline_detail.to_string()),
+                    text_edit: Some(lsp::CompletionTextEdit::Edit(lsp::TextEdit {
+                        range: lsp::Range {
+                            start: lsp::Position {
+                                line: params.text_document_position.position.line,
+                                character: params.text_document_position.position.character,
+                            },
+                            end: lsp::Position {
+                                line: params.text_document_position.position.line,
+                                character: params.text_document_position.position.character,
+                            },
+                        },
+                        new_text: "new_text_2".to_string(),
+                    })),
+                    ..lsp::CompletionItem::default()
+                },
+                lsp::CompletionItem {
+                    label: "single line label 2".to_string(),
+                    label_details: Some(lsp::CompletionItemLabelDetails {
+                        description: Some(multiline_description.to_string()),
+                        detail: None,
+                    }),
+                    text_edit: Some(lsp::CompletionTextEdit::Edit(lsp::TextEdit {
+                        range: lsp::Range {
+                            start: lsp::Position {
+                                line: params.text_document_position.position.line,
+                                character: params.text_document_position.position.character,
+                            },
+                            end: lsp::Position {
+                                line: params.text_document_position.position.line,
+                                character: params.text_document_position.position.character,
+                            },
+                        },
+                        new_text: "new_text_2".to_string(),
+                    })),
+                    ..lsp::CompletionItem::default()
+                },
+                lsp::CompletionItem {
+                    label: multiline_label_2.to_string(),
+                    detail: Some(multiline_detail_2.to_string()),
+                    text_edit: Some(lsp::CompletionTextEdit::Edit(lsp::TextEdit {
+                        range: lsp::Range {
+                            start: lsp::Position {
+                                line: params.text_document_position.position.line,
+                                character: params.text_document_position.position.character,
+                            },
+                            end: lsp::Position {
+                                line: params.text_document_position.position.line,
+                                character: params.text_document_position.position.character,
+                            },
+                        },
+                        new_text: "new_text_3".to_string(),
+                    })),
+                    ..lsp::CompletionItem::default()
+                },
+                lsp::CompletionItem {
+                    label: "Label with many     spaces and \t but without newlines".to_string(),
+                    detail: Some(
+                        "Details with many     spaces and \t but without newlines".to_string(),
+                    ),
+                    text_edit: Some(lsp::CompletionTextEdit::Edit(lsp::TextEdit {
+                        range: lsp::Range {
+                            start: lsp::Position {
+                                line: params.text_document_position.position.line,
+                                character: params.text_document_position.position.character,
+                            },
+                            end: lsp::Position {
+                                line: params.text_document_position.position.line,
+                                character: params.text_document_position.position.character,
+                            },
+                        },
+                        new_text: "new_text_4".to_string(),
+                    })),
+                    ..lsp::CompletionItem::default()
+                },
+            ])))
+        });
+
+    editor.update(cx, |editor, cx| {
+        editor.focus(cx);
+        editor.move_to_end(&MoveToEnd, cx);
+        editor.handle_input(".", cx);
+    });
+    cx.run_until_parked();
+    completion_handle.next().await.unwrap();
+
+    editor.update(cx, |editor, _| {
+        assert!(editor.context_menu_visible());
+        if let Some(CodeContextMenu::Completions(menu)) = editor.context_menu.borrow_mut().as_ref()
+        {
+            let completion_labels = menu
+                .completions
+                .borrow()
+                .iter()
+                .map(|c| c.label.text.clone())
+                .collect::<Vec<_>>();
+            assert_eq!(
+                completion_labels,
+                &[
+                    "StickyHeaderExcerpt { excerpt, next_excerpt_controls_present, next_buffer_row, }: StickyHeaderExcerpt<'_>,",
+                    "single line label 1 []struct { SignerId struct { Issuer string `json:\"issuer\"` SubjectSerialNumber\"` }}",
+                    "single line label 2 d e f ",
+                    "a b c g h i ",
+                    "Label with many     spaces and \t but without newlines Details with many     spaces and \t but without newlines",
+                ],
+                "Completion items should have their labels without newlines, also replacing excessive whitespaces. Completion items without newlines should not be altered.",
+            );
+
+            for completion in menu
+                .completions
+                .borrow()
+                .iter() {
+                    assert_eq!(
+                        completion.label.filter_range,
+                        0..completion.label.text.len(),
+                        "Adjusted completion items should still keep their filter ranges for the entire label. Item: {completion:?}"
+                    );
+                }
+
+        } else {
+            panic!("expected completion menu to be open");
+        }
+    });
+}
+
 #[gpui::test]
 async fn test_completion_page_up_down_keys(cx: &mut gpui::TestAppContext) {
     init_test(cx, |_| {});
diff --git a/crates/language/src/language.rs b/crates/language/src/language.rs
index 9732939d50..8061c7efa9 100644
--- a/crates/language/src/language.rs
+++ b/crates/language/src/language.rs
@@ -763,6 +763,14 @@ pub struct FakeLspAdapter {
 
     pub capabilities: lsp::ServerCapabilities,
     pub initializer: Option<Box<dyn 'static + Send + Sync + Fn(&mut lsp::FakeLanguageServer)>>,
+    pub label_for_completion: Option<
+        Box<
+            dyn 'static
+                + Send
+                + Sync
+                + Fn(&lsp::CompletionItem, &Arc<Language>) -> Option<CodeLabel>,
+        >,
+    >,
 }
 
 /// Configuration of handling bracket pairs for a given language.
@@ -1778,6 +1786,7 @@ impl Default for FakeLspAdapter {
                 arguments: vec![],
                 env: Default::default(),
             },
+            label_for_completion: None,
         }
     }
 }
@@ -1849,6 +1858,15 @@ impl LspAdapter for FakeLspAdapter {
     ) -> Result<Option<Value>> {
         Ok(self.initialization_options.clone())
     }
+
+    async fn label_for_completion(
+        &self,
+        item: &lsp::CompletionItem,
+        language: &Arc<Language>,
+    ) -> Option<CodeLabel> {
+        let label_for_completion = self.label_for_completion.as_ref()?;
+        label_for_completion(item, language)
+    }
 }
 
 fn get_capture_indices(query: &Query, captures: &mut [(&str, &mut Option<u32>)]) {
diff --git a/crates/languages/src/typescript.rs b/crates/languages/src/typescript.rs
index 6ceb6f5898..edfdbf5f55 100644
--- a/crates/languages/src/typescript.rs
+++ b/crates/languages/src/typescript.rs
@@ -212,16 +212,14 @@ impl LspAdapter for TypeScriptLspAdapter {
             _ => None,
         }?;
 
-        let one_line = |s: &str| s.replace("    ", "").replace('\n', " ");
-
         let text = if let Some(description) = item
             .label_details
             .as_ref()
             .and_then(|label_details| label_details.description.as_ref())
         {
-            format!("{} {}", item.label, one_line(description))
+            format!("{} {}", item.label, description)
         } else if let Some(detail) = &item.detail {
-            format!("{} {}", item.label, one_line(detail))
+            format!("{} {}", item.label, detail)
         } else {
             item.label.clone()
         };
diff --git a/crates/languages/src/vtsls.rs b/crates/languages/src/vtsls.rs
index e44e4e295f..22718e410c 100644
--- a/crates/languages/src/vtsls.rs
+++ b/crates/languages/src/vtsls.rs
@@ -175,16 +175,14 @@ impl LspAdapter for VtslsLspAdapter {
             _ => None,
         }?;
 
-        let one_line = |s: &str| s.replace("    ", "").replace('\n', " ");
-
         let text = if let Some(description) = item
             .label_details
             .as_ref()
             .and_then(|label_details| label_details.description.as_ref())
         {
-            format!("{} {}", item.label, one_line(description))
+            format!("{} {}", item.label, description)
         } else if let Some(detail) = &item.detail {
-            format!("{} {}", item.label, one_line(detail))
+            format!("{} {}", item.label, detail)
         } else {
             item.label.clone()
         };
diff --git a/crates/project/src/lsp_store.rs b/crates/project/src/lsp_store.rs
index c8f4ec52e5..cbd93ad12a 100644
--- a/crates/project/src/lsp_store.rs
+++ b/crates/project/src/lsp_store.rs
@@ -4357,7 +4357,7 @@ impl LspStore {
 
         // NB: Zed does not have `details` inside the completion resolve capabilities, but certain language servers violate the spec and do not return `details` immediately, e.g. https://github.com/yioneko/vtsls/issues/213
         // So we have to update the label here anyway...
-        let new_label = match snapshot.language() {
+        let mut new_label = match snapshot.language() {
             Some(language) => {
                 adapter
                     .labels_for_completions(&[completion_item.clone()], language)
@@ -4373,6 +4373,7 @@ impl LspStore {
                 completion_item.filter_text.as_deref(),
             )
         });
+        ensure_uniform_list_compatible_label(&mut new_label);
 
         let mut completions = completions.borrow_mut();
         let completion = &mut completions[completion_index];
@@ -8014,15 +8015,18 @@ async fn populate_labels_for_completions(
             None
         };
 
+        let mut label = label.unwrap_or_else(|| {
+            CodeLabel::plain(
+                lsp_completion.label.clone(),
+                lsp_completion.filter_text.as_deref(),
+            )
+        });
+        ensure_uniform_list_compatible_label(&mut label);
+
         completions.push(Completion {
             old_range: completion.old_range,
             new_text: completion.new_text,
-            label: label.unwrap_or_else(|| {
-                CodeLabel::plain(
-                    lsp_completion.label.clone(),
-                    lsp_completion.filter_text.as_deref(),
-                )
-            }),
+            label,
             server_id: completion.server_id,
             documentation,
             lsp_completion,
@@ -8733,6 +8737,70 @@ fn include_text(server: &lsp::LanguageServer) -> Option<bool> {
     }
 }
 
+/// Completion items are displayed in a `UniformList`.
+/// Usually, those items are single-line strings, but in LSP responses,
+/// completion items `label`, `detail` and `label_details.description` may contain newlines or long spaces.
+/// Many language plugins construct these items by joining these parts together, and we may fall back to `CodeLabel::plain` that uses `label`.
+/// All that may lead to a newline being inserted into resulting `CodeLabel.text`, which will force `UniformList` to bloat each entry to occupy more space,
+/// breaking the completions menu presentation.
+///
+/// Sanitize the text to ensure there are no newlines, or, if there are some, remove them and also remove long space sequences if there were newlines.
+fn ensure_uniform_list_compatible_label(label: &mut CodeLabel) {
+    let mut new_text = String::with_capacity(label.text.len());
+    let mut offset_map = vec![0; label.text.len() + 1];
+    let mut last_char_was_space = false;
+    let mut new_idx = 0;
+    let mut chars = label.text.char_indices().fuse();
+    let mut newlines_removed = false;
+
+    while let Some((idx, c)) = chars.next() {
+        offset_map[idx] = new_idx;
+
+        match c {
+            '\n' if last_char_was_space => {
+                newlines_removed = true;
+            }
+            '\t' | ' ' if last_char_was_space => {}
+            '\n' if !last_char_was_space => {
+                new_text.push(' ');
+                new_idx += 1;
+                last_char_was_space = true;
+                newlines_removed = true;
+            }
+            ' ' | '\t' => {
+                new_text.push(' ');
+                new_idx += 1;
+                last_char_was_space = true;
+            }
+            _ => {
+                new_text.push(c);
+                new_idx += 1;
+                last_char_was_space = false;
+            }
+        }
+    }
+    offset_map[label.text.len()] = new_idx;
+
+    // Only modify the label if newlines were removed.
+    if !newlines_removed {
+        return;
+    }
+
+    for (range, _) in &mut label.runs {
+        range.start = offset_map[range.start];
+        range.end = offset_map[range.end];
+    }
+
+    if label.filter_range == (0..label.text.len()) {
+        label.filter_range = 0..new_text.len();
+    } else {
+        label.filter_range.start = offset_map[label.filter_range.start];
+        label.filter_range.end = offset_map[label.filter_range.end];
+    }
+
+    label.text = new_text;
+}
+
 #[cfg(test)]
 #[test]
 fn test_glob_literal_prefix() {