diff --git a/crates/editor/src/actions.rs b/crates/editor/src/actions.rs
index 827c9067e3..2ed935eb34 100644
--- a/crates/editor/src/actions.rs
+++ b/crates/editor/src/actions.rs
@@ -918,6 +918,8 @@ actions!(
         AlignSelections,
         /// Saves the current location to navigation history.
         SaveLocation,
+        /// Toggles breadcrumbs display.
+        ToggleBreadcrumb,
     ]
 );
 
diff --git a/crates/editor/src/config.rs b/crates/editor/src/config.rs
index 02256fe87d..9b5df0b867 100644
--- a/crates/editor/src/config.rs
+++ b/crates/editor/src/config.rs
@@ -138,6 +138,31 @@ impl Editor {
         }
     }
 
+    pub fn breadcrumbs_visible(&self) -> bool {
+        self.breadcrumbs_visibility.visible()
+    }
+
+    fn set_breadcrumbs_visibility(
+        &mut self,
+        breadcrumbs_visibility: BreadcrumbsVisibility,
+        cx: &mut Context<Self>,
+    ) {
+        if self.breadcrumbs_visibility != breadcrumbs_visibility {
+            self.breadcrumbs_visibility = breadcrumbs_visibility;
+            cx.emit(EditorEvent::BreadcrumbsChanged);
+            cx.notify();
+        }
+    }
+
+    pub fn toggle_breadcrumb(
+        &mut self,
+        _: &ToggleBreadcrumb,
+        _: &mut Window,
+        cx: &mut Context<Self>,
+    ) {
+        self.set_breadcrumbs_visibility(self.breadcrumbs_visibility.toggle_visibility(), cx);
+    }
+
     pub fn disable_scrollbars_and_minimap(&mut self, window: &mut Window, cx: &mut Context<Self>) {
         self.set_show_scrollbars(false, cx);
         self.set_minimap_visibility(MinimapVisibility::Disabled, window, cx);
diff --git a/crates/editor/src/editor.rs b/crates/editor/src/editor.rs
index 0ced11ed2e..c4cab9a8eb 100644
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -705,6 +705,40 @@ impl MinimapVisibility {
     }
 }
 
+#[derive(Clone, Copy, PartialEq, Eq)]
+struct BreadcrumbsVisibility {
+    setting_configuration: bool,
+    toggle_override: bool,
+}
+
+impl BreadcrumbsVisibility {
+    fn from_settings(cx: &App) -> Self {
+        Self::new(EditorSettings::get_global(cx).toolbar.breadcrumbs)
+    }
+
+    fn new(setting_configuration: bool) -> Self {
+        Self {
+            setting_configuration,
+            toggle_override: false,
+        }
+    }
+
+    fn settings_visibility(&self) -> bool {
+        self.setting_configuration
+    }
+
+    fn visible(&self) -> bool {
+        self.setting_configuration ^ self.toggle_override
+    }
+
+    fn toggle_visibility(&self) -> Self {
+        Self {
+            setting_configuration: self.setting_configuration,
+            toggle_override: !self.toggle_override,
+        }
+    }
+}
+
 #[derive(Debug, Clone, Copy, PartialEq, Eq)]
 pub enum BufferSerialization {
     All,
@@ -931,7 +965,7 @@ pub struct Editor {
     hovered_cursors: HashMap<HoveredCursor, Task<()>>,
     pub show_local_selections: bool,
     mode: EditorMode,
-    show_breadcrumbs: bool,
+    breadcrumbs_visibility: BreadcrumbsVisibility,
     show_gutter: bool,
     show_scrollbars: ScrollbarAxes,
     minimap_visibility: MinimapVisibility,
@@ -2130,7 +2164,7 @@ impl Editor {
             },
             minimap_visibility: MinimapVisibility::for_mode(&mode, cx),
             offset_content: !matches!(mode, EditorMode::SingleLine),
-            show_breadcrumbs: EditorSettings::get_global(cx).toolbar.breadcrumbs,
+            breadcrumbs_visibility: BreadcrumbsVisibility::from_settings(cx),
             show_gutter: full_mode,
             show_line_numbers: (!full_mode).then_some(false),
             use_relative_line_numbers: None,
@@ -9467,12 +9501,17 @@ impl Editor {
         self.refresh_inline_values(cx);
 
         let old_cursor_shape = self.cursor_shape;
-        let old_show_breadcrumbs = self.show_breadcrumbs;
+        let old_breadcrumbs_visible = self.breadcrumbs_visible();
 
         {
             let editor_settings = EditorSettings::get_global(cx);
             self.scroll_manager.vertical_scroll_margin = editor_settings.vertical_scroll_margin;
-            self.show_breadcrumbs = editor_settings.toolbar.breadcrumbs;
+            if self.breadcrumbs_visibility.settings_visibility()
+                != editor_settings.toolbar.breadcrumbs
+            {
+                self.breadcrumbs_visibility =
+                    BreadcrumbsVisibility::new(editor_settings.toolbar.breadcrumbs);
+            }
             self.cursor_shape = editor_settings.cursor_shape.unwrap_or_default();
         }
 
@@ -9480,7 +9519,7 @@ impl Editor {
             cx.emit(EditorEvent::CursorShapeChanged);
         }
 
-        if old_show_breadcrumbs != self.show_breadcrumbs {
+        if old_breadcrumbs_visible != self.breadcrumbs_visible() {
             cx.emit(EditorEvent::BreadcrumbsChanged);
         }
 
diff --git a/crates/editor/src/editor_tests.rs b/crates/editor/src/editor_tests.rs
index 3eca954d6d..c90e54d0c6 100644
--- a/crates/editor/src/editor_tests.rs
+++ b/crates/editor/src/editor_tests.rs
@@ -70,7 +70,7 @@ use util::{
 };
 use workspace::{
     CloseActiveItem, CloseAllItems, CloseOtherItems, MultiWorkspace, NavigationEntry, OpenOptions,
-    ViewId,
+    ToolbarItemLocation, ViewId,
     item::{FollowEvent, FollowableItem, Item, ItemHandle, SaveOptions},
     register_project_item,
 };
@@ -917,6 +917,49 @@ fn test_clone(cx: &mut TestAppContext) {
     );
 }
 
+#[gpui::test]
+fn test_toggle_breadcrumb_does_not_change_settings(cx: &mut TestAppContext) {
+    init_test(cx, |_| {});
+    update_test_editor_settings(cx, &|settings| {
+        settings.toolbar.get_or_insert_default().breadcrumbs = Some(true);
+    });
+
+    let editor = cx.add_window(|window, cx| {
+        let buffer = MultiBuffer::build_simple("hello", cx);
+        build_editor(buffer, window, cx)
+    });
+
+    _ = editor.update(cx, |editor, window, cx| {
+        assert!(EditorSettings::get_global(cx).toolbar.breadcrumbs);
+        assert_eq!(
+            editor.breadcrumb_location(cx),
+            ToolbarItemLocation::PrimaryLeft
+        );
+
+        editor.toggle_breadcrumb(&ToggleBreadcrumb, window, cx);
+        assert!(EditorSettings::get_global(cx).toolbar.breadcrumbs);
+        assert_eq!(editor.breadcrumb_location(cx), ToolbarItemLocation::Hidden);
+    });
+
+    // Changing unrelated settings should not affect breadcrumbs visibility.
+    update_test_editor_settings(cx, &|settings| {
+        settings.vertical_scroll_margin = Some(4.0);
+    });
+    cx.run_until_parked();
+
+    _ = editor.update(cx, |editor, window, cx| {
+        assert!(EditorSettings::get_global(cx).toolbar.breadcrumbs);
+        assert_eq!(editor.breadcrumb_location(cx), ToolbarItemLocation::Hidden);
+
+        editor.toggle_breadcrumb(&ToggleBreadcrumb, window, cx);
+        assert!(EditorSettings::get_global(cx).toolbar.breadcrumbs);
+        assert_eq!(
+            editor.breadcrumb_location(cx),
+            ToolbarItemLocation::PrimaryLeft
+        );
+    });
+}
+
 #[gpui::test]
 async fn test_navigation_history(cx: &mut TestAppContext) {
     init_test(cx, |_| {});
diff --git a/crates/editor/src/element.rs b/crates/editor/src/element.rs
index dbba534c6f..0ac3b2691d 100644
--- a/crates/editor/src/element.rs
+++ b/crates/editor/src/element.rs
@@ -421,6 +421,7 @@ impl EditorElement {
         register_action(editor, window, Editor::open_excerpts_in_split);
         register_action(editor, window, Editor::toggle_soft_wrap);
         register_action(editor, window, Editor::toggle_tab_bar);
+        register_action(editor, window, Editor::toggle_breadcrumb);
         register_action(editor, window, Editor::toggle_line_numbers);
         register_action(editor, window, Editor::toggle_relative_line_numbers);
         register_action(editor, window, Editor::toggle_indent_guides);
diff --git a/crates/editor/src/items.rs b/crates/editor/src/items.rs
index 89f323ab14..9d5ad821ed 100644
--- a/crates/editor/src/items.rs
+++ b/crates/editor/src/items.rs
@@ -1029,7 +1029,7 @@ impl Item for Editor {
     }
 
     fn breadcrumb_location(&self, cx: &App) -> ToolbarItemLocation {
-        if self.show_breadcrumbs && self.buffer().read(cx).is_singleton() {
+        if self.breadcrumbs_visible() && self.buffer().read(cx).is_singleton() {
             ToolbarItemLocation::PrimaryLeft
         } else {
             ToolbarItemLocation::Hidden