diff --git a/crates/editor/src/actions.rs b/crates/editor/src/actions.rs
index 3a3a57ca64..39433b3c27 100644
--- a/crates/editor/src/actions.rs
+++ b/crates/editor/src/actions.rs
@@ -745,5 +745,6 @@ actions!(
         UniqueLinesCaseInsensitive,
         /// Removes duplicate lines (case-sensitive).
         UniqueLinesCaseSensitive,
+        UnwrapSyntaxNode
     ]
 );
diff --git a/crates/editor/src/editor.rs b/crates/editor/src/editor.rs
index 156fda1b37..73a81bea19 100644
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -14711,6 +14711,81 @@ impl Editor {
         }
     }
 
+    pub fn unwrap_syntax_node(
+        &mut self,
+        _: &UnwrapSyntaxNode,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) {
+        self.hide_mouse_cursor(HideMouseCursorOrigin::MovementAction, cx);
+
+        let buffer = self.buffer.read(cx).snapshot(cx);
+        let old_selections: Box<[_]> = self.selections.all::<usize>(cx).into();
+
+        let edits = old_selections
+            .iter()
+            // only consider the first selection for now
+            .take(1)
+            .map(|selection| {
+                // Only requires two branches once if-let-chains stabilize (#53667)
+                let selection_range = if !selection.is_empty() {
+                    selection.range()
+                } else if let Some((_, ancestor_range)) =
+                    buffer.syntax_ancestor(selection.start..selection.end)
+                {
+                    match ancestor_range {
+                        MultiOrSingleBufferOffsetRange::Single(range) => range,
+                        MultiOrSingleBufferOffsetRange::Multi(range) => range,
+                    }
+                } else {
+                    selection.range()
+                };
+
+                let mut new_range = selection_range.clone();
+                while let Some((_, ancestor_range)) = buffer.syntax_ancestor(new_range.clone()) {
+                    new_range = match ancestor_range {
+                        MultiOrSingleBufferOffsetRange::Single(range) => range,
+                        MultiOrSingleBufferOffsetRange::Multi(range) => range,
+                    };
+                    if new_range.start < selection_range.start
+                        || new_range.end > selection_range.end
+                    {
+                        break;
+                    }
+                }
+
+                (selection, selection_range, new_range)
+            })
+            .collect::<Vec<_>>();
+
+        self.transact(window, cx, |editor, window, cx| {
+            for (_, child, parent) in &edits {
+                let text = buffer.text_for_range(child.clone()).collect::<String>();
+                editor.replace_text_in_range(Some(parent.clone()), &text, window, cx);
+            }
+
+            editor.change_selections(
+                SelectionEffects::scroll(Autoscroll::fit()),
+                window,
+                cx,
+                |s| {
+                    s.select(
+                        edits
+                            .iter()
+                            .map(|(s, old, new)| Selection {
+                                id: s.id,
+                                start: new.start,
+                                end: new.start + old.len(),
+                                goal: SelectionGoal::None,
+                                reversed: s.reversed,
+                            })
+                            .collect(),
+                    );
+                },
+            );
+        });
+    }
+
     fn refresh_runnables(&mut self, window: &mut Window, cx: &mut Context<Self>) -> Task<()> {
         if !EditorSettings::get_global(cx).gutter.runnables {
             self.clear_tasks();
diff --git a/crates/editor/src/editor_tests.rs b/crates/editor/src/editor_tests.rs
index 1cb3565733..b31963c9c8 100644
--- a/crates/editor/src/editor_tests.rs
+++ b/crates/editor/src/editor_tests.rs
@@ -7969,6 +7969,38 @@ async fn test_select_larger_smaller_syntax_node_for_string(cx: &mut TestAppConte
     });
 }
 
+#[gpui::test]
+async fn test_unwrap_syntax_node(cx: &mut gpui::TestAppContext) {
+    init_test(cx, |_| {});
+
+    let mut cx = EditorTestContext::new(cx).await;
+
+    let language = Arc::new(Language::new(
+        LanguageConfig::default(),
+        Some(tree_sitter_rust::LANGUAGE.into()),
+    ));
+
+    cx.update_buffer(|buffer, cx| {
+        buffer.set_language(Some(language), cx);
+    });
+
+    cx.set_state(
+        &r#"
+            use mod1::mod2::{«mod3ˇ», mod4};
+        "#
+        .unindent(),
+    );
+    cx.update_editor(|editor, window, cx| {
+        editor.unwrap_syntax_node(&UnwrapSyntaxNode, window, cx);
+    });
+    cx.assert_editor_state(
+        &r#"
+            use mod1::mod2::«mod3ˇ»;
+        "#
+        .unindent(),
+    );
+}
+
 #[gpui::test]
 async fn test_fold_function_bodies(cx: &mut TestAppContext) {
     init_test(cx, |_| {});
diff --git a/crates/editor/src/element.rs b/crates/editor/src/element.rs
index e1647215bc..17a43f9640 100644
--- a/crates/editor/src/element.rs
+++ b/crates/editor/src/element.rs
@@ -357,6 +357,7 @@ impl EditorElement {
         register_action(editor, window, Editor::toggle_comments);
         register_action(editor, window, Editor::select_larger_syntax_node);
         register_action(editor, window, Editor::select_smaller_syntax_node);
+        register_action(editor, window, Editor::unwrap_syntax_node);
         register_action(editor, window, Editor::select_enclosing_symbol);
         register_action(editor, window, Editor::move_to_enclosing_bracket);
         register_action(editor, window, Editor::undo_selection);