diff --git a/src/sql/workbench/contrib/editorReplacement/common/editorReplacerContribution.ts b/src/sql/workbench/contrib/editorReplacement/common/editorReplacerContribution.ts
index 34f8e72072..bf24e9f5c2 100644
--- a/src/sql/workbench/contrib/editorReplacement/common/editorReplacerContribution.ts
+++ b/src/sql/workbench/contrib/editorReplacement/common/editorReplacerContribution.ts
@@ -19,6 +19,7 @@ import { UntitledTextEditorInput } from 'vs/workbench/services/untitled/common/u
 import { isThenable } from 'vs/base/common/async';
 import { withNullAsUndefined } from 'vs/base/common/types';
 import { DiffEditorInput } from 'vs/workbench/common/editor/diffEditorInput';
+import { mixin } from 'vs/base/common/objects';
 
 const languageAssociationRegistry = Registry.as<ILanguageAssociationRegistry>(LanguageAssociationExtensions.LanguageAssociations);
 
@@ -69,7 +70,16 @@ export class EditorReplacementContribution implements IWorkbenchContribution {
 				editor.setMode(defaultInputCreator[0]);
 				const newInput = defaultInputCreator[1].convertInput(editor);
 				if (newInput) {
-					return { override: isThenable(newInput) ? newInput.then(input => this.editorService.openEditor(input ?? editor, options, group)) : this.editorService.openEditor(newInput, options, group) };
+					return {
+						// If the new input is a thenable which resolves to undefined (no input to convert)
+						// then don't allow further overriding since otherwise we could get in an infinite loop
+						// (openEditor calls onEditorOpening handler and we keep repeating this process). This
+						// is replicating the behavior for the non-Thenable returns where we just let the openEditor
+						// continue on
+						override: isThenable(newInput) ?
+							newInput.then(input => this.editorService.openEditor(input ?? editor, mixin(options, { override: input ? options?.override : false }), group)) :
+							this.editorService.openEditor(newInput, options, group)
+					};
 				}
 			}
 		} else {
@@ -77,7 +87,16 @@ export class EditorReplacementContribution implements IWorkbenchContribution {
 			if (inputCreator) {
 				const newInput = inputCreator.convertInput(editor);
 				if (newInput) {
-					return { override: isThenable(newInput) ? newInput.then(input => this.editorService.openEditor(input ?? editor, options, group)) : this.editorService.openEditor(newInput, options, group) };
+					return {
+						// If the new input is a thenable which resolves to undefined (no input to convert)
+						// then don't allow further overriding since otherwise we could get in an infinite loop
+						// (openEditor calls onEditorOpening handler and we keep repeating this process). This
+						// is replicating the behavior for the non-Thenable returns where we just let the openEditor
+						// continue on
+						override: isThenable(newInput) ?
+							newInput.then(input => this.editorService.openEditor(input ?? editor, mixin(options, { override: input ? options?.override : false }), group))
+							: this.editorService.openEditor(newInput, options, group)
+					};
 				}
 			}
 		}