diff --git a/src/vs/editor/contrib/inlineCompletions/browser/model/inlineCompletionsModel.ts b/src/vs/editor/contrib/inlineCompletions/browser/model/inlineCompletionsModel.ts
index d1e6cbd300450..2d39e288ecc7c 100644
--- a/src/vs/editor/contrib/inlineCompletions/browser/model/inlineCompletionsModel.ts
+++ b/src/vs/editor/contrib/inlineCompletions/browser/model/inlineCompletionsModel.ts
@@ -56,7 +56,8 @@ export class InlineCompletionsModel extends Disposable {
 	private readonly _editorObs = observableCodeEditor(this._editor);
 
 	private readonly _acceptCompletionDecorationTimer = this._register(new MutableDisposable());
-	private readonly _acceptCompletionDecoration: IModelDecorationOptions = {
+	private readonly _acceptCompletionDecorationCollection = this._editor.createDecorationsCollection();
+	private readonly _acceptCompletionDecorationOptions: IModelDecorationOptions = {
 		description: 'inline-completion-accepted',
 		className: 'inline-completion-accepted',
 		stickiness: TrackedRangeStickiness.NeverGrowsWhenTypingAtEdges
@@ -581,8 +582,6 @@ export class InlineCompletionsModel extends Disposable {
 			completion.source.addRef();
 		}
 
-		this._acceptCompletionDecorationTimer.clear();
-
 		editor.pushUndoStop();
 		if (completion.snippetInfo) {
 			editor.executeEdits(
@@ -605,8 +604,8 @@ export class InlineCompletionsModel extends Disposable {
 			editor.setSelections(selections, 'inlineCompletionAccept');
 
 			if (state.kind === 'inlineEdit') {
-				const acceptEditsDecorations = editor.createDecorationsCollection(modifiedRanges.map(r => ({ range: r, options: this._acceptCompletionDecoration })));
-				this._acceptCompletionDecorationTimer.value = disposableTimeout(() => acceptEditsDecorations.clear(), 2500);
+				this._acceptCompletionDecorationCollection.set(modifiedRanges.map(r => ({ range: r, options: this._acceptCompletionDecorationOptions })));
+				this._acceptCompletionDecorationTimer.value = disposableTimeout(() => this._acceptCompletionDecorationCollection.clear(), 2500);
 			}
 		}
 
diff --git a/src/vs/editor/contrib/inlineCompletions/browser/view/inlineEdits/sideBySideDiff.ts b/src/vs/editor/contrib/inlineCompletions/browser/view/inlineEdits/sideBySideDiff.ts
index 67c8dfb38fa51..1894f06327bd2 100644
--- a/src/vs/editor/contrib/inlineCompletions/browser/view/inlineEdits/sideBySideDiff.ts
+++ b/src/vs/editor/contrib/inlineCompletions/browser/view/inlineEdits/sideBySideDiff.ts
@@ -99,12 +99,12 @@ export const modifiedBorder = registerColor(
 export const acceptedDecorationBackgroundColor = registerColor(
 	'inlineEdit.acceptedBackground',
 	{
-		light: transparent(modifiedChangedTextOverlayColor, 0.5),
-		dark: transparent(modifiedChangedTextOverlayColor, 0.5),
+		light: transparent(modifiedChangedTextOverlayColor, 0.75),
+		dark: transparent(modifiedChangedTextOverlayColor, 0.75),
 		hcDark: modifiedChangedTextOverlayColor,
 		hcLight: modifiedChangedTextOverlayColor
 	},
-	localize('inlineEdit.acceptedBackground', 'Background color for the accepted text after appying an inline edit.'),
+	localize('inlineEdit.acceptedBackground', 'Background color for the accepted text after applying an inline edit.'),
 	true
 );