diff --git a/src/nvim/drawline.c b/src/nvim/drawline.c
index f9ddeeb94b..cd1a5df8de 100644
--- a/src/nvim/drawline.c
+++ b/src/nvim/drawline.c
@@ -3082,7 +3082,8 @@ int win_line(win_T *wp, linenr_T lnum, int startrow, int endrow, bool number_onl
       wlv.char_attr = saved_attr2;
     }
 
-    if (has_decor && (wp->w_p_rl ? (wlv.col < 0) : (wlv.col >= grid->cols))) {
+    if (has_decor && wlv.filler_todo <= 0
+        && (wp->w_p_rl ? (wlv.col < 0) : (wlv.col >= grid->cols))) {
       // At the end of screen line: might need to peek for decorations just after
       // this position.
       if (!has_fold && wp->w_p_wrap && wlv.n_extra == 0) {
@@ -3119,7 +3120,7 @@ int win_line(win_T *wp, linenr_T lnum, int startrow, int endrow, bool number_onl
       if (virt_line_offset >= 0) {
         draw_virt_text_item(buf, virt_line_offset, kv_A(virt_lines, virt_line_index).line,
                             kHlModeReplace, grid->cols, 0);
-      } else {
+      } else if (wlv.filler_todo <= 0) {
         draw_virt_text(wp, buf, win_col_offset, &draw_col, grid->cols, wlv.row);
       }
 
diff --git a/test/functional/ui/decorations_spec.lua b/test/functional/ui/decorations_spec.lua
index 5f9ac2265c..85093566a5 100644
--- a/test/functional/ui/decorations_spec.lua
+++ b/test/functional/ui/decorations_spec.lua
@@ -692,6 +692,11 @@ describe('extmark decorations', function()
       [34] = {background = Screen.colors.Yellow};
       [35] = {background = Screen.colors.Yellow, bold = true, foreground = Screen.colors.Blue};
       [36] = {foreground = Screen.colors.Blue1, bold = true, background = Screen.colors.Red};
+      [37] = {background = Screen.colors.WebGray, foreground = Screen.colors.DarkBlue};
+      [38] = {background = Screen.colors.LightBlue};
+      [39] = {foreground = Screen.colors.Blue1, background = Screen.colors.LightCyan1, bold = true};
+      [40] = {reverse = true};
+      [41] = {bold = true, reverse = true};
     }
 
     ns = meths.create_namespace 'test'
@@ -1356,6 +1361,38 @@ describe('extmark decorations', function()
     ]]}
   end)
 
+  it('virtual text works below diff filler lines', function()
+    screen:try_resize(53, 8)
+    insert([[
+      aaaaa
+      bbbbb
+      ccccc
+      ddddd
+      eeeee]])
+    command('rightbelow vnew')
+    insert([[
+      bbbbb
+      ccccc
+      ddddd
+      eeeee]])
+    command('windo diffthis')
+    meths.buf_set_extmark(0, ns, 0, 0, { virt_text = {{'AA', 'Underlined'}}, virt_text_pos = 'overlay' })
+    meths.buf_set_extmark(0, ns, 0, 0, { virt_text = {{'BB', 'Underlined'}}, virt_text_win_col = 10 })
+    meths.buf_set_extmark(0, ns, 0, 0, { virt_text = {{'CC', 'Underlined'}}, virt_text_pos = 'right_align' })
+    screen:expect{grid=[[
+      {37:  }{38:aaaaa                   }│{37:  }{39:------------------------}|
+      {37:  }bbbbb                   │{37:  }{28:AA}bbb     {28:BB}          {28:CC}|
+      {37:  }ccccc                   │{37:  }ccccc                   |
+      {37:  }ddddd                   │{37:  }ddddd                   |
+      {37:  }eeeee                   │{37:  }eeee^e                   |
+      {1:~                         }│{1:~                         }|
+      {40:[No Name] [+]              }{41:[No Name] [+]             }|
+                                                           |
+    ]]}
+    command('windo set wrap')
+    screen:expect_unchanged()
+  end)
+
   it('can have virtual text which combines foreground and background groups', function()
     screen:set_default_attr_ids {
       [1] = {bold=true, foreground=Screen.colors.Blue};