diff --git a/CHANGELOG.md b/CHANGELOG.md
index c606af3377..3029f50414 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -6,6 +6,11 @@
 
 - Recursion in `openDatabase` when using `SentrySqfliteDatabaseFactory` ([#3231](https://github.com/getsentry/sentry-dart/pull/3231))
 
+### Enhancements
+
+- Replay: continue processing if encountering `InheritedWidget` ([#3200](https://github.com/getsentry/sentry-dart/pull/3200))
+  - Prevents false debug warnings when using [provider](https://pub.dev/packages/provider) for example which extensively uses `InheritedWidget`
+
 ## 9.7.0-beta.2
 
 ### Features
diff --git a/packages/flutter/lib/src/sentry_privacy_options.dart b/packages/flutter/lib/src/sentry_privacy_options.dart
index cbef72d951..348990c2c7 100644
--- a/packages/flutter/lib/src/sentry_privacy_options.dart
+++ b/packages/flutter/lib/src/sentry_privacy_options.dart
@@ -83,6 +83,9 @@ class SentryPrivacyOptions {
 
       rules.add(SentryMaskingCustomRule<Widget>(
           callback: (Element element, Widget widget) {
+            if (widget is InheritedWidget) {
+              return SentryMaskingDecision.continueProcessing;
+            }
             final type = widget.runtimeType.toString();
             if (regexp.hasMatch(type)) {
               logger(
diff --git a/packages/flutter/test/screenshot/masking_config_test.dart b/packages/flutter/test/screenshot/masking_config_test.dart
index 992ef67cc3..4c49210726 100644
--- a/packages/flutter/test/screenshot/masking_config_test.dart
+++ b/packages/flutter/test/screenshot/masking_config_test.dart
@@ -298,6 +298,26 @@ void main() async {
       });
     });
   });
+
+  testWidgets('ignores InheritedWidget and does not log', (tester) async {
+    final logger = MockLogger();
+    final options = SentryPrivacyOptions();
+    final config =
+        options.buildMaskingConfig(logger.call, MockRuntimeChecker());
+
+    final rootElement = await pumpTestElement(tester, children: const [
+      _PasswordInherited(child: Text('child')),
+    ]);
+
+    final element = rootElement.findFirstOfType<_PasswordInherited>();
+    expect(config.shouldMask(element, element.widget),
+        SentryMaskingDecision.continueProcessing);
+
+    // The debug rule contains a RegExp that matches 'password'. Our widget
+    // name contains it but because it's an InheritedWidget it should be
+    // ignored and thus no warning is logged.
+    expect(logger.items.where((i) => i.level == SentryLevel.warning), isEmpty);
+  });
 }
 
 extension on Element {
@@ -327,3 +347,10 @@ extension on Element {
     return result;
   }
 }
+
+class _PasswordInherited extends InheritedWidget {
+  const _PasswordInherited({required super.child});
+
+  @override
+  bool updateShouldNotify(covariant _PasswordInherited oldWidget) => false;
+}