diff --git a/crates/project_panel/src/project_panel.rs b/crates/project_panel/src/project_panel.rs
index dc15dfbae8..c621c47156 100644
--- a/crates/project_panel/src/project_panel.rs
+++ b/crates/project_panel/src/project_panel.rs
@@ -6880,6 +6880,7 @@ impl Render for ProjectPanel {
         // version that understands these messages.
         let is_collab = project.is_via_collab();
         let is_local = project.is_local();
+        let supports_undo = cx.has_flag::<ProjectPanelUndoRedoFeatureFlag>();
 
         if has_worktree {
             let item_count = self
@@ -7011,13 +7012,6 @@ impl Render for ProjectPanel {
                 .on_action(cx.listener(Self::fold_directory))
                 .on_action(cx.listener(Self::remove_from_project))
                 .on_action(cx.listener(Self::compare_marked_files))
-                .when(
-                    !is_collab && cx.has_flag::<ProjectPanelUndoRedoFeatureFlag>(),
-                    |el| {
-                        el.on_action(cx.listener(Self::undo))
-                            .on_action(cx.listener(Self::redo))
-                    },
-                )
                 .when(!project.is_read_only(cx), |el| {
                     el.on_action(cx.listener(Self::new_file))
                         .on_action(cx.listener(Self::new_directory))
@@ -7031,6 +7025,10 @@ impl Render for ProjectPanel {
                         .on_action(cx.listener(Self::add_to_gitignore))
                         .on_action(cx.listener(Self::add_to_git_info_exclude))
                         .when(!is_collab, |el| el.on_action(cx.listener(Self::trash)))
+                        .when(!is_collab && supports_undo, |el| {
+                            el.on_action(cx.listener(Self::undo))
+                                .on_action(cx.listener(Self::redo))
+                        })
                 })
                 .when(
                     project.is_local() || project.is_via_wsl_with_host_interop(cx),
diff --git a/crates/project_panel/src/tests/undo.rs b/crates/project_panel/src/tests/undo.rs
index 774a71b6d0..9f607d9c07 100644
--- a/crates/project_panel/src/tests/undo.rs
+++ b/crates/project_panel/src/tests/undo.rs
@@ -1,5 +1,6 @@
 #![cfg(test)]
 
+use client::proto;
 use collections::HashSet;
 use fs::{FakeFs, Fs};
 use gpui::{Entity, VisualTestContext};
@@ -240,6 +241,12 @@ impl TestContext {
             .unwrap();
         let mut cx = VisualTestContext::from_window(window.into(), cx);
         let panel = workspace.update_in(&mut cx, ProjectPanel::new);
+
+        workspace.update_in(&mut cx, |workspace, window, cx| {
+            workspace.add_panel(panel.clone(), window, cx);
+            workspace.focus_panel::<ProjectPanel>(window, cx);
+        });
+
         cx.run_until_parked();
 
         TestContext { panel, fs, cx }
@@ -458,3 +465,37 @@ async fn record_via_collab(cx: &mut gpui::TestAppContext) {
     cx.redo().await;
     cx.assert_fs_state_is(&["b.txt", "renamed.txt"]);
 }
+
+#[gpui::test]
+async fn undo_redo_unavailable_for_read_only_collab_guest(cx: &mut gpui::TestAppContext) {
+    let mut cx = TestContext::new(cx).await;
+    let focus_handle = cx
+        .panel
+        .read_with(&cx.cx, |panel, _| panel.focus_handle.clone());
+
+    cx.cx.update(|window, _cx| {
+        assert!(window.is_action_available_in(&crate::Undo, &focus_handle));
+        assert!(window.is_action_available_in(&crate::Redo, &focus_handle));
+    });
+
+    // In order to simulate a read-only project, we mark it both as a collab
+    // session as well as being a guest, which only has read access.
+    // This is currently a bit redundant, seeing as these actions are already
+    // disabled in collab either way. However, we'll want to enable undo/redo in
+    // collab in the future and this test will ensure that, at that point, we
+    // continue to not allow undo/redo in read-only projects.
+    cx.panel.update(&mut cx.cx, |panel, cx| {
+        panel.project.update(cx, |project, cx| {
+            project.mark_as_collab_for_testing();
+            project.set_role(proto::ChannelRole::Guest, cx);
+        });
+
+        assert!(panel.project.read(cx).is_read_only(cx));
+        cx.notify();
+    });
+
+    cx.cx.update(|window, _cx| {
+        assert!(!window.is_action_available_in(&crate::Undo, &focus_handle));
+        assert!(!window.is_action_available_in(&crate::Redo, &focus_handle));
+    });
+}