diff --git a/src/nvim/marktree.c b/src/nvim/marktree.c
index dcb839d07f..0ebebf409e 100644
--- a/src/nvim/marktree.c
+++ b/src/nvim/marktree.c
@@ -1831,7 +1831,7 @@ bool marktree_itr_step_overlap(MarkTree *b, MarkTreeIter *itr, MTPair *pair)
       }
       unrelative(itr->pos, &k.pos);
       MTKey start = marktree_lookup(b, id, NULL);
-      if (pos_less(itr->intersect_pos, start.pos)) {
+      if (pos_leq(itr->intersect_pos, start.pos)) {
         continue;
       }
       *pair = mtpair_from(start, k);
diff --git a/test/functional/ui/decorations_spec.lua b/test/functional/ui/decorations_spec.lua
index b6e1a776e8..e57e719192 100644
--- a/test/functional/ui/decorations_spec.lua
+++ b/test/functional/ui/decorations_spec.lua
@@ -5387,6 +5387,30 @@ l5
                                                         |
     ]]}
   end)
+
+  it('correct number of signs after deleting text (#27046)', function()
+    command('call setline(1, ["foo"]->repeat(31))')
+    api.nvim_buf_set_extmark(0, ns, 0, 0, {end_row = 0, sign_text = 'S1'})
+    api.nvim_buf_set_extmark(0, ns, 0, 0, {end_row = 0, end_col = 3, hl_group = 'Error'})
+    api.nvim_buf_set_extmark(0, ns, 9, 0, {end_row = 9,  sign_text = 'S2'})
+    api.nvim_buf_set_extmark(0, ns, 9, 0, {end_row = 9, end_col = 3, hl_group = 'Error'})
+    api.nvim_buf_set_extmark(0, ns, 19, 0, {end_row = 19, sign_text = 'S3'})
+    api.nvim_buf_set_extmark(0, ns, 19, 0, {end_row = 19, end_col = 3, hl_group = 'Error'})
+    api.nvim_buf_set_extmark(0, ns, 29, 0, {end_row = 29, sign_text = 'S4'})
+    api.nvim_buf_set_extmark(0, ns, 29, 0, {end_row = 29, end_col = 3, hl_group = 'Error'})
+    api.nvim_buf_set_extmark(0, ns, 30, 0, {end_row = 30, sign_text = 'S5'})
+    api.nvim_buf_set_extmark(0, ns, 30, 0, {end_row = 30, end_col = 3, hl_group = 'Error'})
+    command('0d29')
+
+    screen:expect{grid=[[
+      S1S2S3S4{4:^foo}                                       |
+      S5{1:      }{4:foo}                                       |
+      {2:~                                                 }|*7
+      29 fewer lines                                    |
+    ]]}
+
+    api.nvim_buf_clear_namespace(0, ns, 0, -1)
+  end)
 end)
 
 describe('decorations: virt_text', function()