diff --git a/src/vs/workbench/contrib/notebook/browser/diff/notebookDiffEditor.ts b/src/vs/workbench/contrib/notebook/browser/diff/notebookDiffEditor.ts
index c54a16efa622f..5fe866a59fdb3 100644
--- a/src/vs/workbench/contrib/notebook/browser/diff/notebookDiffEditor.ts
+++ b/src/vs/workbench/contrib/notebook/browser/diff/notebookDiffEditor.ts
@@ -27,7 +27,7 @@ import { PixelRatio } from 'vs/base/browser/pixelRatio';
 import { CellEditState, ICellOutputViewModel, IDisplayOutputLayoutUpdateRequest, IGenericCellViewModel, IInsetRenderOutput, INotebookEditorCreationOptions, INotebookEditorOptions } from 'vs/workbench/contrib/notebook/browser/notebookBrowser';
 import { DiffSide, DIFF_CELL_MARGIN, IDiffCellInfo, INotebookTextDiffEditor, INotebookDiffViewModel } from 'vs/workbench/contrib/notebook/browser/diff/notebookDiffEditorBrowser';
 import { Emitter, Event } from 'vs/base/common/event';
-import { DisposableStore, IDisposable, toDisposable } from 'vs/base/common/lifecycle';
+import { DisposableStore, dispose, IDisposable, toDisposable } from 'vs/base/common/lifecycle';
 import { EditorPane } from 'vs/workbench/browser/parts/editor/editorPane';
 import { CellUri, INotebookDiffEditorModel, INotebookDiffResult, NOTEBOOK_DIFF_EDITOR_ID, NotebookSetting } from 'vs/workbench/contrib/notebook/common/notebookCommon';
 import { URI } from 'vs/base/common/uri';
@@ -568,7 +568,9 @@ export class NotebookTextDiffEditor extends EditorPane implements INotebookTextD
 		NotebookTextDiffEditor.prettyChanges(this._model, diffResult.cellsDiff);
 		const { viewModels, firstChangeIndex } = NotebookTextDiffEditor.computeDiff(this.instantiationService, this.configurationService, this._model, this._eventDispatcher!, diffResult, this.fontInfo);
 
-		if (!this.notebookDiffViewModel.isEqual(viewModels)) {
+		if (this.notebookDiffViewModel.isEqual(viewModels)) {
+			dispose(viewModels);
+		} else {
 			this._originalWebview?.removeInsets([...this._originalWebview?.insetMapping.keys()]);
 			this._modifiedWebview?.removeInsets([...this._modifiedWebview?.insetMapping.keys()]);
 			this.notebookDiffViewModel.setViewModel(viewModels);
diff --git a/src/vs/workbench/contrib/notebook/browser/diff/notebookDiffViewModel.ts b/src/vs/workbench/contrib/notebook/browser/diff/notebookDiffViewModel.ts
index f2ecb1b07c480..8e1f6d95c2021 100644
--- a/src/vs/workbench/contrib/notebook/browser/diff/notebookDiffViewModel.ts
+++ b/src/vs/workbench/contrib/notebook/browser/diff/notebookDiffViewModel.ts
@@ -24,6 +24,7 @@ export class NotebookDiffViewModel extends Disposable implements INotebookDiffVi
 		super.dispose();
 	}
 	clear() {
+		this.disposables.clear();
 		dispose(Array.from(this.placeholderAndRelatedCells.keys()));
 		this.placeholderAndRelatedCells.clear();
 		dispose(this.originalCellViewModels);
@@ -33,8 +34,8 @@ export class NotebookDiffViewModel extends Disposable implements INotebookDiffVi
 	}
 
 	setViewModel(cellViewModels: DiffElementCellViewModelBase[]) {
-		this.disposables.clear();
 		const oldLength = this._items.length;
+		this.clear();
 		this._items.splice(0, oldLength);
 
 		let placeholder: DiffElementPlaceholderViewModel | undefined = undefined;