diff --git a/crates/editor/src/editor.rs b/crates/editor/src/editor.rs
index de674fc25b..936170349a 100644
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -14175,12 +14175,28 @@ impl Editor {
             }
         };
 
+        let transaction_id_prev = buffer.read_with(cx, |b, cx| b.last_transaction_id(cx));
+        let selections_prev = transaction_id_prev
+            .and_then(|transaction_id_prev| {
+                // default to selections as they were after the last edit, if we have them,
+                // instead of how they are now.
+                // This will make it so that editing, moving somewhere else, formatting, then undoing the format
+                // will take you back to where you made the last edit, instead of staying where you scrolled
+                self.selection_history
+                    .transaction(transaction_id_prev)
+                    .map(|t| t.0.clone())
+            })
+            .unwrap_or_else(|| {
+                log::info!("Failed to determine selections from before format. Falling back to selections when format was initiated");
+                self.selections.disjoint_anchors()
+            });
+
         let mut timeout = cx.background_executor().timer(FORMAT_TIMEOUT).fuse();
         let format = project.update(cx, |project, cx| {
             project.format(buffers, target, true, trigger, cx)
         });
 
-        cx.spawn_in(window, async move |_, cx| {
+        cx.spawn_in(window, async move |editor, cx| {
             let transaction = futures::select_biased! {
                 transaction = format.log_err().fuse() => transaction,
                 () = timeout => {
@@ -14200,6 +14216,19 @@ impl Editor {
                 })
                 .ok();
 
+            if let Some(transaction_id_now) =
+                buffer.read_with(cx, |b, cx| b.last_transaction_id(cx))?
+            {
+                let has_new_transaction = transaction_id_prev != Some(transaction_id_now);
+                if has_new_transaction {
+                    _ = editor.update(cx, |editor, _| {
+                        editor
+                            .selection_history
+                            .insert_transaction(transaction_id_now, selections_prev);
+                    });
+                }
+            }
+
             Ok(())
         })
     }
diff --git a/crates/editor/src/editor_tests.rs b/crates/editor/src/editor_tests.rs
index b0034d9df1..fcacecc01e 100644
--- a/crates/editor/src/editor_tests.rs
+++ b/crates/editor/src/editor_tests.rs
@@ -5873,6 +5873,83 @@ async fn test_select_all_matches_does_not_scroll(cx: &mut TestAppContext) {
     );
 }
 
+#[gpui::test]
+async fn test_undo_format_scrolls_to_last_edit_pos(cx: &mut TestAppContext) {
+    init_test(cx, |_| {});
+
+    let mut cx = EditorLspTestContext::new_rust(
+        lsp::ServerCapabilities {
+            document_formatting_provider: Some(lsp::OneOf::Left(true)),
+            ..Default::default()
+        },
+        cx,
+    )
+    .await;
+
+    cx.set_state(indoc! {"
+        line 1
+        line 2
+        linˇe 3
+        line 4
+        line 5
+    "});
+
+    // Make an edit
+    cx.update_editor(|editor, window, cx| {
+        editor.handle_input("X", window, cx);
+    });
+
+    // Move cursor to a different position
+    cx.update_editor(|editor, window, cx| {
+        editor.change_selections(None, window, cx, |s| {
+            s.select_ranges([Point::new(4, 2)..Point::new(4, 2)]);
+        });
+    });
+
+    cx.assert_editor_state(indoc! {"
+        line 1
+        line 2
+        linXe 3
+        line 4
+        liˇne 5
+    "});
+
+    cx.lsp
+        .set_request_handler::<lsp::request::Formatting, _, _>(move |_, _| async move {
+            Ok(Some(vec![lsp::TextEdit::new(
+                lsp::Range::new(lsp::Position::new(0, 0), lsp::Position::new(0, 0)),
+                "PREFIX ".to_string(),
+            )]))
+        });
+
+    cx.update_editor(|editor, window, cx| editor.format(&Default::default(), window, cx))
+        .unwrap()
+        .await
+        .unwrap();
+
+    cx.assert_editor_state(indoc! {"
+        PREFIX line 1
+        line 2
+        linXe 3
+        line 4
+        liˇne 5
+    "});
+
+    // Undo formatting
+    cx.update_editor(|editor, window, cx| {
+        editor.undo(&Default::default(), window, cx);
+    });
+
+    // Verify cursor moved back to position after edit
+    cx.assert_editor_state(indoc! {"
+        line 1
+        line 2
+        linXˇe 3
+        line 4
+        line 5
+    "});
+}
+
 #[gpui::test]
 async fn test_select_next_with_multiple_carets(cx: &mut TestAppContext) {
     init_test(cx, |_| {});
diff --git a/crates/multi_buffer/src/multi_buffer.rs b/crates/multi_buffer/src/multi_buffer.rs
index cda6161406..18c17b3b02 100644
--- a/crates/multi_buffer/src/multi_buffer.rs
+++ b/crates/multi_buffer/src/multi_buffer.rs
@@ -1118,9 +1118,16 @@ impl MultiBuffer {
         self.history.start_transaction(now)
     }
 
-    pub fn last_transaction_id(&self) -> Option<TransactionId> {
-        let last_transaction = self.history.undo_stack.last()?;
-        return Some(last_transaction.id);
+    pub fn last_transaction_id(&self, cx: &App) -> Option<TransactionId> {
+        if let Some(buffer) = self.as_singleton() {
+            return buffer.read_with(cx, |b, _| {
+                b.peek_undo_stack()
+                    .map(|history_entry| history_entry.transaction_id())
+            });
+        } else {
+            let last_transaction = self.history.undo_stack.last()?;
+            return Some(last_transaction.id);
+        }
     }
 
     pub fn end_transaction(&mut self, cx: &mut Context<Self>) -> Option<TransactionId> {