diff --git a/crates/file_finder/src/file_finder.rs b/crates/file_finder/src/file_finder.rs
index daf7b938e4..a9bdd7288d 100644
--- a/crates/file_finder/src/file_finder.rs
+++ b/crates/file_finder/src/file_finder.rs
@@ -87,7 +87,14 @@ impl FileFinder {
         workspace.register_action(
             |workspace, action: &workspace::ToggleFileFinder, window, cx| {
                 let Some(file_finder) = workspace.active_modal::<Self>(cx) else {
-                    Self::open(workspace, action.separate_history, window, cx).detach();
+                    Self::open(
+                        workspace,
+                        action.separate_history,
+                        action.include_ignored,
+                        window,
+                        cx,
+                    )
+                    .detach();
                     return;
                 };
 
@@ -104,6 +111,7 @@ impl FileFinder {
     fn open(
         workspace: &mut Workspace,
         separate_history: bool,
+        include_ignored: Option<bool>,
         window: &mut Window,
         cx: &mut Context<Workspace>,
     ) -> Task<()> {
@@ -156,6 +164,7 @@ impl FileFinder {
                             currently_opened_path,
                             history_items.collect(),
                             separate_history,
+                            include_ignored,
                             window,
                             cx,
                         );
@@ -953,6 +962,7 @@ impl FileFinderDelegate {
         currently_opened_path: Option<FoundPath>,
         history_items: Vec<FoundPath>,
         separate_history: bool,
+        include_ignored: Option<bool>,
         window: &mut Window,
         cx: &mut Context<FileFinder>,
     ) -> Self {
@@ -982,7 +992,7 @@ impl FileFinderDelegate {
             separate_history,
             first_update: true,
             focus_handle: cx.focus_handle(),
-            include_ignored: FileFinderSettings::get_global(cx).include_ignored,
+            include_ignored: include_ignored.or(FileFinderSettings::get_global(cx).include_ignored),
             include_ignored_refresh: Task::ready(()),
         }
     }
diff --git a/crates/file_finder/src/file_finder_tests.rs b/crates/file_finder/src/file_finder_tests.rs
index e83d7db791..ec49c8a373 100644
--- a/crates/file_finder/src/file_finder_tests.rs
+++ b/crates/file_finder/src/file_finder_tests.rs
@@ -1094,6 +1094,48 @@ async fn test_ignored_root_with_file_inclusions_repro(cx: &mut TestAppContext) {
     });
 }
 
+#[gpui::test]
+async fn test_toggle_action_include_ignored_param(cx: &mut TestAppContext) {
+    let app_state = init_test(cx);
+    let project = Project::test(app_state.fs.clone(), [], cx).await;
+    let (multi_workspace, cx) =
+        cx.add_window_view(|window, cx| MultiWorkspace::test_new(project, window, cx));
+    let workspace = multi_workspace.read_with(cx, |mw, _| mw.workspace().clone());
+
+    let cases = [
+        (None, Some(true), Some(true)),
+        (None, Some(false), Some(false)),
+        (None, None, None),
+        (Some(true), Some(false), Some(false)),
+        (Some(false), Some(true), Some(true)),
+        (Some(true), None, Some(true)),
+    ];
+    for (setting, action_param, expected) in cases {
+        cx.update(|_, cx| {
+            let settings = *FileFinderSettings::get_global(cx);
+            FileFinderSettings::override_global(
+                FileFinderSettings {
+                    include_ignored: setting,
+                    ..settings
+                },
+                cx,
+            );
+        });
+        cx.dispatch_action(ToggleFileFinder {
+            separate_history: false,
+            include_ignored: action_param,
+        });
+        let picker = active_file_picker(&workspace, cx);
+        picker.update(cx, |picker, _| {
+            assert_eq!(
+                picker.delegate.include_ignored, expected,
+                "setting: {setting:?}, action param: {action_param:?}"
+            );
+        });
+        cx.dispatch_action(menu::Cancel);
+    }
+}
+
 #[gpui::test]
 async fn test_ignored_root(cx: &mut TestAppContext) {
     let app_state = init_test(cx);
@@ -4513,6 +4555,7 @@ pub(crate) fn open_file_picker(
 ) -> Entity<Picker<FileFinderDelegate>> {
     cx.dispatch_action(ToggleFileFinder {
         separate_history: true,
+        include_ignored: None,
     });
     active_file_picker(workspace, cx)
 }
diff --git a/crates/workspace/src/workspace.rs b/crates/workspace/src/workspace.rs
index b93e8a64bf..e91019f6ca 100644
--- a/crates/workspace/src/workspace.rs
+++ b/crates/workspace/src/workspace.rs
@@ -481,6 +481,8 @@ actions!(
 pub struct ToggleFileFinder {
     #[serde(default)]
     pub separate_history: bool,
+    #[serde(default)]
+    pub include_ignored: Option<bool>,
 }
 
 /// Opens a new terminal in the center.