diff --git a/Cargo.lock b/Cargo.lock
index eaf1cf3bb1..581df52c41 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -13082,6 +13082,7 @@ dependencies = [
  "language",
  "log",
  "parking_lot",
+ "paths",
  "postage",
  "pretty_assertions",
  "rand 0.8.5",
diff --git a/crates/paths/src/paths.rs b/crates/paths/src/paths.rs
index a556cb5879..8f24873a8a 100644
--- a/crates/paths/src/paths.rs
+++ b/crates/paths/src/paths.rs
@@ -224,6 +224,12 @@ pub fn default_prettier_dir() -> &'static PathBuf {
     DEFAULT_PRETTIER_DIR.get_or_init(|| support_dir().join("prettier"))
 }
 
+/// Returns the relative path to a `.zed` folder within a project.
+pub fn local_settings_folder_relative_path() -> &'static Path {
+    static LOCAL_SETTINGS_FOLDER_RELATIVE_PATH: OnceLock<&Path> = OnceLock::new();
+    LOCAL_SETTINGS_FOLDER_RELATIVE_PATH.get_or_init(|| Path::new(".zed"))
+}
+
 /// Returns the relative path to a `settings.json` file within a project.
 pub fn local_settings_file_relative_path() -> &'static Path {
     static LOCAL_SETTINGS_FILE_RELATIVE_PATH: OnceLock<&Path> = OnceLock::new();
diff --git a/crates/worktree/Cargo.toml b/crates/worktree/Cargo.toml
index 75136352fc..cbb353b9d3 100644
--- a/crates/worktree/Cargo.toml
+++ b/crates/worktree/Cargo.toml
@@ -34,6 +34,7 @@ ignore.workspace = true
 language.workspace = true
 log.workspace = true
 parking_lot.workspace = true
+paths.workspace = true
 postage.workspace = true
 rpc.workspace = true
 schemars.workspace = true
diff --git a/crates/worktree/src/worktree.rs b/crates/worktree/src/worktree.rs
index ca8465d914..7aeae0a065 100644
--- a/crates/worktree/src/worktree.rs
+++ b/crates/worktree/src/worktree.rs
@@ -31,6 +31,7 @@ use gpui::{
 };
 use ignore::IgnoreStack;
 use parking_lot::Mutex;
+use paths::local_settings_folder_relative_path;
 use postage::{
     barrier,
     prelude::{Sink as _, Stream as _},
@@ -2589,6 +2590,7 @@ impl BackgroundScannerState {
     fn should_scan_directory(&self, entry: &Entry) -> bool {
         (!entry.is_external && !entry.is_ignored)
             || entry.path.file_name() == Some(*DOT_GIT)
+            || entry.path.file_name() == Some(local_settings_folder_relative_path().as_os_str())
             || self.scanned_dirs.contains(&entry.id) // If we've ever scanned it, keep scanning
             || self
                 .paths_to_scan