diff --git a/crates/language/src/buffer.rs b/crates/language/src/buffer.rs
index fb68ab1316..d074351d98 100644
--- a/crates/language/src/buffer.rs
+++ b/crates/language/src/buffer.rs
@@ -1950,13 +1950,14 @@ impl Buffer {
         if self.capability == Capability::ReadOnly {
             return false;
         }
-        if self.has_conflict || self.has_unsaved_edits() {
+        if self.has_conflict {
             return true;
         }
         match self.file.as_ref().map(|f| f.disk_state()) {
-            Some(DiskState::New) => !self.is_empty(),
-            Some(DiskState::Deleted) => true,
-            _ => false,
+            Some(DiskState::New) | Some(DiskState::Deleted) => {
+                !self.is_empty() && self.has_unsaved_edits()
+            }
+            _ => self.has_unsaved_edits(),
         }
     }
 
@@ -1977,7 +1978,7 @@ impl Buffer {
                 }
                 None => true,
             },
-            DiskState::Deleted => true,
+            DiskState::Deleted => false,
         }
     }
 
diff --git a/crates/project/src/project_tests.rs b/crates/project/src/project_tests.rs
index caa59c11c5..c2547df27e 100644
--- a/crates/project/src/project_tests.rs
+++ b/crates/project/src/project_tests.rs
@@ -3884,7 +3884,7 @@ async fn test_buffer_is_dirty(cx: &mut gpui::TestAppContext) {
         ]
     );
 
-    // When a file is deleted, the buffer is considered dirty.
+    // When a file is deleted, it is not considered dirty.
     let events = Arc::new(Mutex::new(Vec::new()));
     let buffer2 = project
         .update(cx, |p, cx| p.open_local_buffer(path!("/dir/file2"), cx))
@@ -3893,7 +3893,10 @@ async fn test_buffer_is_dirty(cx: &mut gpui::TestAppContext) {
     buffer2.update(cx, |_, cx| {
         cx.subscribe(&buffer2, {
             let events = events.clone();
-            move |_, _, event, _| events.lock().push(event.clone())
+            move |_, _, event, _| match event {
+                BufferEvent::Operation { .. } => {}
+                _ => events.lock().push(event.clone()),
+            }
         })
         .detach();
     });
@@ -3902,12 +3905,37 @@ async fn test_buffer_is_dirty(cx: &mut gpui::TestAppContext) {
         .await
         .unwrap();
     cx.executor().run_until_parked();
-    buffer2.update(cx, |buffer, _| assert!(buffer.is_dirty()));
+    buffer2.update(cx, |buffer, _| assert!(!buffer.is_dirty()));
+    assert_eq!(
+        mem::take(&mut *events.lock()),
+        &[language::BufferEvent::FileHandleChanged]
+    );
+
+    // Buffer becomes dirty when edited.
+    buffer2.update(cx, |buffer, cx| {
+        buffer.edit([(2..3, "")], None, cx);
+        assert_eq!(buffer.is_dirty(), true);
+    });
+    assert_eq!(
+        mem::take(&mut *events.lock()),
+        &[
+            language::BufferEvent::Edited,
+            language::BufferEvent::DirtyChanged
+        ]
+    );
+
+    // Buffer becomes clean again when all of its content is removed, because
+    // the file was deleted.
+    buffer2.update(cx, |buffer, cx| {
+        buffer.edit([(0..2, "")], None, cx);
+        assert_eq!(buffer.is_empty(), true);
+        assert_eq!(buffer.is_dirty(), false);
+    });
     assert_eq!(
         *events.lock(),
         &[
-            language::BufferEvent::DirtyChanged,
-            language::BufferEvent::FileHandleChanged
+            language::BufferEvent::Edited,
+            language::BufferEvent::DirtyChanged
         ]
     );
 
@@ -3920,7 +3948,10 @@ async fn test_buffer_is_dirty(cx: &mut gpui::TestAppContext) {
     buffer3.update(cx, |_, cx| {
         cx.subscribe(&buffer3, {
             let events = events.clone();
-            move |_, _, event, _| events.lock().push(event.clone())
+            move |_, _, event, _| match event {
+                BufferEvent::Operation { .. } => {}
+                _ => events.lock().push(event.clone()),
+            }
         })
         .detach();
     });