diff --git a/CodeEdit/Features/Documents/WorkspaceDocument/WorkspaceDocument.swift b/CodeEdit/Features/Documents/WorkspaceDocument/WorkspaceDocument.swift
index 1b96e4fca..a47fdbba8 100644
--- a/CodeEdit/Features/Documents/WorkspaceDocument/WorkspaceDocument.swift
+++ b/CodeEdit/Features/Documents/WorkspaceDocument/WorkspaceDocument.swift
@@ -16,6 +16,8 @@ final class WorkspaceDocument: NSDocument, ObservableObject, NSToolbarDelegate {
     @Published var sortFoldersOnTop: Bool = true
     /// A string used to filter the displayed files and folders in the project navigator area based on user input.
     @Published var navigatorFilter: String = ""
+    /// Whether the workspace only shows files with changes.
+    @Published var sourceControlFilter = false
 
     private var workspaceState: [String: Any] {
         get {
diff --git a/CodeEdit/Features/NavigatorArea/ProjectNavigator/OutlineView/ProjectNavigatorOutlineView.swift b/CodeEdit/Features/NavigatorArea/ProjectNavigator/OutlineView/ProjectNavigatorOutlineView.swift
index 21cf99dd0..529280d09 100644
--- a/CodeEdit/Features/NavigatorArea/ProjectNavigator/OutlineView/ProjectNavigatorOutlineView.swift
+++ b/CodeEdit/Features/NavigatorArea/ProjectNavigator/OutlineView/ProjectNavigatorOutlineView.swift
@@ -67,6 +67,10 @@ struct ProjectNavigatorOutlineView: NSViewControllerRepresentable {
                 .throttle(for: 0.1, scheduler: RunLoop.main, latest: true)
                 .sink { [weak self] _ in self?.controller?.handleFilterChange() }
                 .store(in: &cancellables)
+            workspace.$sourceControlFilter
+                .throttle(for: 0.1, scheduler: RunLoop.main, latest: true)
+                .sink { [weak self] _ in self?.controller?.handleFilterChange() }
+                .store(in: &cancellables)
         }
 
         var cancellables: Set<AnyCancellable> = []
diff --git a/CodeEdit/Features/NavigatorArea/ProjectNavigator/OutlineView/ProjectNavigatorViewController+NSOutlineViewDataSource.swift b/CodeEdit/Features/NavigatorArea/ProjectNavigator/OutlineView/ProjectNavigatorViewController+NSOutlineViewDataSource.swift
index 9cd4f4e3d..727899663 100644
--- a/CodeEdit/Features/NavigatorArea/ProjectNavigator/OutlineView/ProjectNavigatorViewController+NSOutlineViewDataSource.swift
+++ b/CodeEdit/Features/NavigatorArea/ProjectNavigator/OutlineView/ProjectNavigatorViewController+NSOutlineViewDataSource.swift
@@ -15,8 +15,11 @@ extension ProjectNavigatorViewController: NSOutlineViewDataSource {
         }
 
         if let children = workspace?.workspaceFileManager?.childrenOfFile(item) {
-            if let filter = workspace?.navigatorFilter, !filter.isEmpty {
-                let filteredChildren = children.filter { fileSearchMatches(filter, for: $0) }
+            if let filter = workspace?.navigatorFilter, let sourceControlFilter = workspace?.sourceControlFilter,
+                !filter.isEmpty || sourceControlFilter {
+                let filteredChildren = children.filter {
+                    fileSearchMatches(filter, for: $0, sourceControlFilter: sourceControlFilter)
+                }
                 filteredContentChildren[item] = filteredChildren
                 return filteredChildren
             }
diff --git a/CodeEdit/Features/NavigatorArea/ProjectNavigator/OutlineView/ProjectNavigatorViewController.swift b/CodeEdit/Features/NavigatorArea/ProjectNavigator/OutlineView/ProjectNavigatorViewController.swift
index f76f07efc..ea9e2ee25 100644
--- a/CodeEdit/Features/NavigatorArea/ProjectNavigator/OutlineView/ProjectNavigatorViewController.swift
+++ b/CodeEdit/Features/NavigatorArea/ProjectNavigator/OutlineView/ProjectNavigatorViewController.swift
@@ -64,6 +64,10 @@ final class ProjectNavigatorViewController: NSViewController {
     /// to open the file a second time.
     var shouldSendSelectionUpdate: Bool = true
 
+    var filterIsEmpty: Bool {
+        workspace?.navigatorFilter.trimmingCharacters(in: .whitespacesAndNewlines).isEmpty == true
+    }
+
     /// Setup the ``scrollView`` and ``outlineView``
     override func loadView() {
         self.scrollView = NSScrollView()
@@ -193,13 +197,13 @@ final class ProjectNavigatorViewController: NSViewController {
         guard let workspace else { return }
 
         /// If the filter is empty, show all items and restore the expanded state.
-        if workspace.navigatorFilter.trimmingCharacters(in: .whitespacesAndNewlines).isEmpty {
-            restoreExpandedState()
-            outlineView.autosaveExpandedItems = true
-        } else {
+        if workspace.sourceControlFilter || !filterIsEmpty {
             outlineView.autosaveExpandedItems = false
             /// Expand all items for search.
             outlineView.expandItem(outlineView.item(atRow: 0), expandChildren: true)
+        } else {
+            restoreExpandedState()
+            outlineView.autosaveExpandedItems = true
         }
 
         if let root = content.first(where: { $0.isRoot }), let children = filteredContentChildren[root] {
@@ -213,16 +217,24 @@ final class ProjectNavigatorViewController: NSViewController {
     }
 
     /// Checks if the given filter matches the name of the item or any of its children.
-    func fileSearchMatches(_ filter: String, for item: CEWorkspaceFile) -> Bool {
-        guard !filter.trimmingCharacters(in: .whitespacesAndNewlines).isEmpty else { return true }
+    func fileSearchMatches(_ filter: String, for item: CEWorkspaceFile, sourceControlFilter: Bool) -> Bool {
+        guard !filterIsEmpty || sourceControlFilter else {
+            return true
+        }
 
-        if item.name.localizedLowercase.contains(filter.localizedLowercase) {
+        if sourceControlFilter {
+            if item.gitStatus != nil && item.gitStatus != GitStatus.none &&
+                (filterIsEmpty || item.name.localizedCaseInsensitiveContains(filter)) {
+                saveAllContentChildren(for: item)
+                return true
+            }
+        } else if item.name.localizedCaseInsensitiveContains(filter) {
             saveAllContentChildren(for: item)
             return true
         }
 
         if let children = workspace?.workspaceFileManager?.childrenOfFile(item) {
-            return children.contains { fileSearchMatches(filter, for: $0) }
+            return children.contains { fileSearchMatches(filter, for: $0, sourceControlFilter: sourceControlFilter) }
         }
 
         return false
diff --git a/CodeEdit/Features/NavigatorArea/ProjectNavigator/ProjectNavigatorToolbarBottom.swift b/CodeEdit/Features/NavigatorArea/ProjectNavigator/ProjectNavigatorToolbarBottom.swift
index e2977bcac..c4a7758eb 100644
--- a/CodeEdit/Features/NavigatorArea/ProjectNavigator/ProjectNavigatorToolbarBottom.swift
+++ b/CodeEdit/Features/NavigatorArea/ProjectNavigator/ProjectNavigatorToolbarBottom.swift
@@ -18,7 +18,6 @@ struct ProjectNavigatorToolbarBottom: View {
     @EnvironmentObject var editorManager: EditorManager
 
     @State var recentsFilter: Bool = false
-    @State var sourceControlFilter: Bool = false
 
     var body: some View {
         HStack(spacing: 5) {
@@ -48,7 +47,7 @@ struct ProjectNavigatorToolbarBottom: View {
                             Image(systemName: "clock")
                         }
                         .help("Show only recent files")
-                        Toggle(isOn: $sourceControlFilter) {
+                        Toggle(isOn: $workspace.sourceControlFilter) {
                             Image(systemName: "plusminus.circle")
                         }
                         .help("Show only files with source-control status")
@@ -57,7 +56,7 @@ struct ProjectNavigatorToolbarBottom: View {
                     .padding(.trailing, 2.5)
                 },
                 clearable: true,
-                hasValue: !workspace.navigatorFilter.isEmpty || recentsFilter || sourceControlFilter
+                hasValue: !workspace.navigatorFilter.isEmpty || recentsFilter || workspace.sourceControlFilter
             )
         }
         .padding(.horizontal, 5)