diff --git a/src/vs/workbench/contrib/modernUI/browser/media/connectedEditorTabs.css b/src/vs/workbench/contrib/modernUI/browser/media/connectedEditorTabs.css
index 55933caa1a4cb..7c928216ba5ca 100644
--- a/src/vs/workbench/contrib/modernUI/browser/media/connectedEditorTabs.css
+++ b/src/vs/workbench/contrib/modernUI/browser/media/connectedEditorTabs.css
@@ -144,7 +144,7 @@
 	--modern-ui-connected-tab-top-inset: var(--vscode-spacing-size60);
 }
 
-.modern-ui.modern-ui-connected-editor-tabs.monaco-workbench .part.editor > .content .editor-group-container > .title.tabs.two-tab-bars > .tabs-and-actions-container:not(:first-child) {
+.modern-ui.modern-ui-connected-editor-tabs.monaco-workbench .part.editor > .content .editor-group-container > .title.tabs.two-tab-bars > .tabs-and-actions-container:not(.wrapping):not(:first-child) {
 	--modern-ui-connected-tab-gutter: calc(var(--vscode-spacing-size60) + var(--vscode-strokeThickness));
 	--modern-ui-connected-tab-top-inset: var(--vscode-spacing-size20);
 }
@@ -162,9 +162,6 @@
 	--modern-ui-editor-tab-unfocused-active-border-top: var(--modern-ui-connected-tab-border);
 	--modern-ui-editor-tab-active-border: transparent;
 	--modern-ui-editor-tab-unfocused-active-border: transparent;
-	top: calc(-1 * var(--modern-ui-connected-tab-top-inset));
-	inset-inline: 0;
-	bottom: calc(-1 * var(--modern-ui-connected-tab-gutter) - var(--vscode-strokeThickness));
 	z-index: 1;
 	background-color: var(--modern-ui-connected-tab-surface);
 	border: var(--vscode-strokeThickness) solid var(--modern-ui-connected-tab-border);
@@ -178,7 +175,7 @@
 .modern-ui.modern-ui-connected-editor-tabs.monaco-workbench .part.editor > .content .editor-group-container > .title.tabs .tabs-container > .tab.active > .tab-fill::after {
 	content: '';
 	position: absolute;
-	bottom: 0;
+	bottom: calc(-1 * var(--vscode-strokeThickness));
 	width: var(--modern-ui-connected-tab-shoulder-radius);
 	height: var(--modern-ui-connected-tab-shoulder-radius);
 	box-sizing: border-box;
@@ -208,7 +205,7 @@
 	position: absolute;
 	top: calc(-1 * var(--modern-ui-connected-tab-top-inset));
 	inset-inline: 0;
-	bottom: calc(-1 * var(--modern-ui-connected-tab-gutter) - var(--vscode-strokeThickness));
+	bottom: calc(-1 * var(--modern-ui-connected-tab-gutter));
 	z-index: 8;
 	pointer-events: none;
 }
@@ -391,8 +388,7 @@
 
 .modern-ui.modern-ui-connected-editor-tabs.monaco-workbench .part.editor > .content .editor-group-container > .title.tabs .connected-tab-right-clipped > .tab-connected-overflow-right {
 	position: absolute;
-	/* Match the ordinary fill's inner border edge, not its reserved bottom stroke. */
-	inset: 0 0 var(--vscode-strokeThickness);
+	inset: 0 0;
 	z-index: 1;
 }
 
diff --git a/src/vs/workbench/test/browser/parts/editor/multiEditorTabsControl.test.ts b/src/vs/workbench/test/browser/parts/editor/multiEditorTabsControl.test.ts
index 97b5400cb6b5c..9a097088eebf5 100644
--- a/src/vs/workbench/test/browser/parts/editor/multiEditorTabsControl.test.ts
+++ b/src/vs/workbench/test/browser/parts/editor/multiEditorTabsControl.test.ts
@@ -583,7 +583,7 @@ suite('MultiEditorTabsControl', () => {
 				stripHeight: strip.getBoundingClientRect().height,
 				wrapping: strip.classList.contains('wrapping'),
 				upperRow: tab.classList.contains('connected-tab-upper-row'),
-				gap: strip.getBoundingClientRect().bottom - (fill.getBoundingClientRect().bottom - parseFloat(fillStyle.borderBottomWidth)),
+				gap: strip.getBoundingClientRect().bottom - fill.getBoundingClientRect().bottom,
 				clippingGap: strip.getBoundingClientRect().bottom - clippingBottom,
 				bottomRadius: fillStyle.borderBottomRightRadius,
 				shoulder: mainWindow.getComputedStyle(fill, '::after').content,
@@ -668,15 +668,18 @@ suite('MultiEditorTabsControl', () => {
 
 		const [activeTab, inactiveTab] = container.querySelectorAll<HTMLElement>('.tabs-container > .tab');
 		const activeFillStyle = mainWindow.getComputedStyle(activeTab.querySelector<HTMLElement>('.tab-fill')!);
+		const activeEdgeStyle = mainWindow.getComputedStyle(activeTab.querySelector<HTMLElement>('.tab-connected-edge')!);
 		const inactiveFillStyle = mainWindow.getComputedStyle(inactiveTab.querySelector<HTMLElement>('.tab-fill')!);
 		const rowStyle = mainWindow.getComputedStyle(container.querySelector<HTMLElement>('.tabs-and-actions-container')!);
 
 		assert.deepStrictEqual({
 			active: { top: activeFillStyle.top, left: activeFillStyle.left, right: activeFillStyle.right, bottom: activeFillStyle.bottom },
+			activeEdgeBottom: activeEdgeStyle.bottom,
 			inactive: { top: inactiveFillStyle.top, left: inactiveFillStyle.left, right: inactiveFillStyle.right, bottom: inactiveFillStyle.bottom },
 			rowPaddingLeft: rowStyle.paddingLeft,
 		}, {
-			active: { top: '-4px', left: '0px', right: '0px', bottom: '-6px' },
+			active: { top: '-4px', left: '0px', right: '0px', bottom: '-5px' },
+			activeEdgeBottom: '-5px',
 			inactive: { top: '-4px', left: '0px', right: '0px', bottom: '-5px' },
 			rowPaddingLeft: '0px',
 		});
diff --git a/src/vs/workbench/test/browser/parts/editor/multiRowEditorTabsControl.test.ts b/src/vs/workbench/test/browser/parts/editor/multiRowEditorTabsControl.test.ts
new file mode 100644
index 0000000000000..77643c1f29446
--- /dev/null
+++ b/src/vs/workbench/test/browser/parts/editor/multiRowEditorTabsControl.test.ts
@@ -0,0 +1,154 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import assert from 'assert';
+import { $, Dimension, scheduleAtNextAnimationFrame, ModifierKeyEmitter } from '../../../../../base/browser/dom.js';
+import { mainWindow } from '../../../../../base/browser/window.js';
+import { Event } from '../../../../../base/common/event.js';
+import { DisposableStore, toDisposable } from '../../../../../base/common/lifecycle.js';
+import { URI } from '../../../../../base/common/uri.js';
+import { mock } from '../../../../../base/test/common/mock.js';
+import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../../base/test/common/utils.js';
+import { TreeViewsDnDService } from '../../../../../editor/common/services/treeViewsDnd.js';
+import { ITreeViewsDnDService } from '../../../../../editor/common/services/treeViewsDndService.js';
+import { DEFAULT_EDITOR_PART_OPTIONS, IEditorGroupsView, IEditorGroupView, IEditorPartsView } from '../../../../browser/parts/editor/editor.js';
+import { MultiRowEditorControl } from '../../../../browser/parts/editor/multiRowEditorTabsControl.js';
+import { EditorsOrder, IEditorPartOptions } from '../../../../common/editor.js';
+import { EditorGroupModel } from '../../../../common/editor/editorGroupModel.js';
+import { EditorInput } from '../../../../common/editor/editorInput.js';
+import { INotebookDocumentService, NotebookDocumentWorkbenchService } from '../../../../services/notebook/common/notebookDocumentService.js';
+import { TestFileEditorInput, workbenchInstantiationService } from '../../workbenchTestServices.js';
+import '../../../../contrib/modernUI/browser/media/tabs.css';
+import '../../../../contrib/modernUI/browser/connectedEditorTabs.js';
+
+suite('MultiRowEditorControl', () => {
+
+	let disposables: DisposableStore;
+
+	let container: HTMLElement;
+	let control: MultiRowEditorControl;
+	let partOptions: IEditorPartOptions;
+	let model: EditorGroupModel;
+
+	setup(() => {
+		disposables = new DisposableStore();
+		partOptions = { ...DEFAULT_EDITOR_PART_OPTIONS };
+
+		// Reset the shared modifier-key emitter after each test to avoid leaked Alt state.
+		disposables.add(toDisposable(() => ModifierKeyEmitter.disposeInstance()));
+
+		const instantiationService = workbenchInstantiationService(undefined, disposables);
+		instantiationService.stub(ITreeViewsDnDService, new TreeViewsDnDService());
+		instantiationService.stub(INotebookDocumentService, new NotebookDocumentWorkbenchService());
+
+		model = disposables.add(instantiationService.createInstance(EditorGroupModel, undefined));
+		for (let i = 0; i < 2; i++) {
+			const editor = disposables.add(new class extends TestFileEditorInput {
+				override getName(): string { return `file${i}.txt`; }
+			}(URI.file(`/path/file${i}.txt`), 'testEditorInput'));
+			model.openEditor(editor, { pinned: true, active: i === 0 });
+		}
+
+		const groupView = new class extends mock<IEditorGroupView>() {
+			override get id() { return model.id; }
+			override get count() { return model.count; }
+			override get stickyCount() { return model.stickyCount; }
+			override get activeEditor() { return model.activeEditor; }
+			override get activeEditorPane() { return undefined; }
+			override get selectedEditors() { return model.selectedEditors; }
+			override get ariaLabel() { return 'Editor Group 1'; }
+			override get groupsView(): IEditorGroupsView { return groupsView; }
+			override getEditorByIndex(index: number) { return model.getEditorByIndex(index); }
+			override getIndexOfEditor(editor: EditorInput) { return model.indexOf(editor); }
+			override getEditors(order: EditorsOrder, options?: { excludeSticky?: boolean }) { return model.getEditors(order, options); }
+			override isActive(editor: EditorInput) { return model.isActive(editor); }
+			override isPinned(editorOrIndex: EditorInput | number) { return model.isPinned(editorOrIndex); }
+			override isSticky(editorOrIndex: EditorInput | number) { return model.isSticky(editorOrIndex); }
+			override isSelected(editorOrIndex: EditorInput | number) { return model.isSelected(editorOrIndex); }
+			override createEditorActions() { return { actions: { primary: [], secondary: [] }, onDidChange: Event.None }; }
+			override relayout() { }
+			override readonly onDidActiveEditorChange = Event.None;
+		};
+
+		const groupsView = new class extends mock<IEditorGroupsView>() {
+			override get partOptions() { return partOptions; }
+			override get activeGroup(): IEditorGroupView { return groupView; }
+			override get groups(): IEditorGroupView[] { return [groupView]; }
+			override readonly onDidChangeEditorPartOptions = Event.None;
+			override readonly onDidVisibilityChange = Event.None;
+		};
+
+		const editorPartsView = new class extends mock<IEditorPartsView>() {
+			override get count() { return 1; }
+			override getGroup() { return groupView; }
+		};
+
+		container = $('.title.tabs');
+		mainWindow.document.body.appendChild(container);
+
+		control = disposables.add(instantiationService.createInstance(MultiRowEditorControl, container, editorPartsView, groupsView, groupView, model, undefined, false, false));
+		control.openEditors(model.getEditors(EditorsOrder.SEQUENTIAL));
+	});
+
+	teardown(() => {
+		container.remove();
+		disposables.dispose();
+	});
+
+	function connectedGroup(): HTMLElement {
+		const root = $('.monaco-workbench.modern-ui.modern-ui-tabs.modern-ui-connected-editor-tabs');
+		root.style.cssText = '--vscode-spacing-size20: 2px; --vscode-spacing-size40: 4px; --vscode-spacing-size60: 6px; --vscode-spacing-size80: 8px; --vscode-spacing-size160: 16px; --vscode-spacing-size280: 28px; --vscode-strokeThickness: 1px; --vscode-cornerRadius-small: 4px; --vscode-fontSize-body1: 13px; --vscode-fontWeight-regular: 400;';
+		mainWindow.document.body.appendChild(root);
+		disposables.add(toDisposable(() => root.remove()));
+		const editor = $('.part.editor');
+		const content = $('.content');
+		const group = $('.editor-group-container.active');
+		root.appendChild(editor);
+		editor.appendChild(content);
+		content.appendChild(group);
+		group.appendChild(container);
+		return group;
+	}
+
+	test('wrapped unsticky tabs keep row bottoms aligned and avoid vertical scrolling with sticky tabs on a separate row', async () => {
+		const group = connectedGroup();
+		group.style.setProperty('--modern-ui-connected-tab-surface', '#ffffff');
+		model.stick(model.getEditorByIndex(0)!);
+		const unstickyEditor = disposables.add(new TestFileEditorInput(URI.file('/path/unsticky.ts'), 'testEditorInput'));
+		model.openEditor(unstickyEditor, { pinned: true, active: true });
+		control.openEditors(model.getEditors(EditorsOrder.SEQUENTIAL));
+		const oldOptions = partOptions;
+		partOptions = { ...partOptions, pinnedTabsOnSeparateRow: true, wrapTabs: true, tabSizing: 'fixed', tabSizingFixedMinWidth: 120, tabSizingFixedMaxWidth: 120, editorActionsLocation: 'hidden' };
+		control.updateOptions(oldOptions, partOptions);
+		group.style.width = '150px';
+		control.layout({ container: new Dimension(150, 33), available: new Dimension(150, 300) });
+		await new Promise<void>(resolve => disposables.add(scheduleAtNextAnimationFrame(mainWindow, () => resolve())));
+
+		const rows = Array.from(container.querySelectorAll<HTMLElement>('.tabs-and-actions-container'));
+		const unstickyRow = rows[1];
+		const unstickyTabs = unstickyRow.querySelector<HTMLElement>('.tabs-container')!;
+		unstickyTabs.classList.add('scroll');
+		const unstickyFills = unstickyRow.querySelectorAll<HTMLElement>('.tab-fill');
+		const unstickyFill = unstickyFills[unstickyFills.length - 1];
+		const unstickyEdge = unstickyRow.querySelector<HTMLElement>('.tab.active > .tab-connected-edge')!;
+		assert.deepStrictEqual({
+			pinnedTabsOnSeparateRow: partOptions.pinnedTabsOnSeparateRow,
+			rowCount: rows.length,
+			unstickyWrapping: unstickyRow.classList.contains('wrapping'),
+			unstickyFillBottomGap: unstickyRow.getBoundingClientRect().bottom - unstickyFill.getBoundingClientRect().bottom,
+			unstickyEdgeBottom: mainWindow.getComputedStyle(unstickyEdge).bottom,
+			unstickyScrollHeightGap: unstickyTabs.clientHeight - unstickyTabs.scrollHeight,
+		}, {
+			pinnedTabsOnSeparateRow: true,
+			rowCount: 2,
+			unstickyWrapping: true,
+			unstickyFillBottomGap: 0,
+			unstickyEdgeBottom: '-2px',
+			unstickyScrollHeightGap: 0,
+		});
+	});
+
+	ensureNoDisposablesAreLeakedInTestSuite();
+});