diff --git a/src/vs/workbench/contrib/notebook/browser/contrib/breakpoints/notebookBreakpoints.ts b/src/vs/workbench/contrib/notebook/browser/contrib/breakpoints/notebookBreakpoints.ts
index f1836653a29c9..fad21ea33924b 100644
--- a/src/vs/workbench/contrib/notebook/browser/contrib/breakpoints/notebookBreakpoints.ts
+++ b/src/vs/workbench/contrib/notebook/browser/contrib/breakpoints/notebookBreakpoints.ts
@@ -4,6 +4,7 @@
  *--------------------------------------------------------------------------------------------*/
 
 
+import { RunOnceScheduler } from 'vs/base/common/async';
 import { Disposable, IDisposable } from 'vs/base/common/lifecycle';
 import { ResourceMap } from 'vs/base/common/map';
 import { Schemas } from 'vs/base/common/network';
@@ -133,22 +134,30 @@ Registry.as<IWorkbenchContributionsRegistry>(WorkbenchExtensions.Workbench).regi
 class NotebookCellPausing extends Disposable implements IWorkbenchContribution {
 	private readonly _pausedCells = new Set<string>();
 
+	private _scheduler: RunOnceScheduler;
+
 	constructor(
 		@IDebugService private readonly _debugService: IDebugService,
 		@INotebookExecutionStateService private readonly _notebookExecutionStateService: INotebookExecutionStateService,
 	) {
 		super();
 
-		this._register(_debugService.getModel().onDidChangeCallStack(() => this.onDidChangeCallStack()));
+		this._register(_debugService.getModel().onDidChangeCallStack(() => {
+			// First update using the stale callstack if the real callstack is empty, to reduce blinking while stepping.
+			// After not pausing for 2s, update again with the latest callstack.
+			this.onDidChangeCallStack(true);
+			this._scheduler.schedule();
+		}));
+		this._scheduler = this._register(new RunOnceScheduler(() => this.onDidChangeCallStack(false), 2000));
 	}
 
-	private async onDidChangeCallStack(): Promise<void> {
+	private async onDidChangeCallStack(fallBackOnStaleCallstack: boolean): Promise<void> {
 		const newPausedCells = new Set<string>();
 
 		for (const session of this._debugService.getModel().getSessions()) {
 			for (const thread of session.getAllThreads()) {
 				let callStack = thread.getCallStack();
-				if (!callStack.length) {
+				if (fallBackOnStaleCallstack && !callStack.length) {
 					callStack = (thread as Thread).getStaleCallStack();
 				}
 
@@ -174,12 +183,13 @@ class NotebookCellPausing extends Disposable implements IWorkbenchContribution {
 
 	private editIsPaused(cellUri: URI, isPaused: boolean) {
 		const parsed = CellUri.parse(cellUri);
-		if (parsed && isPaused) {
+		if (parsed) {
 			const exeState = this._notebookExecutionStateService.getCellExecutionState(cellUri);
-			if (exeState) {
+			if (exeState && (exeState.isPaused !== isPaused || !exeState.didPause)) {
 				this._notebookExecutionStateService.updateNotebookCellExecution(parsed.notebook, parsed.handle, [{
 					editType: CellExecutionUpdateType.ExecutionState,
-					didPause: true
+					didPause: true,
+					isPaused
 				}]);
 			}
 		}
diff --git a/src/vs/workbench/contrib/notebook/browser/contrib/cellStatusBar/executionStatusBarItemController.ts b/src/vs/workbench/contrib/notebook/browser/contrib/cellStatusBar/executionStatusBarItemController.ts
index 5728406b05fac..20d2dace2b6ee 100644
--- a/src/vs/workbench/contrib/notebook/browser/contrib/cellStatusBar/executionStatusBarItemController.ts
+++ b/src/vs/workbench/contrib/notebook/browser/contrib/cellStatusBar/executionStatusBarItemController.ts
@@ -112,7 +112,7 @@ class ExecutionStateCellStatusBarItem extends Disposable {
 	 */
 	private _getItemsForCell(): INotebookCellStatusBarItem[] | undefined {
 		const runState = this._executionStateService.getCellExecutionState(this._cell.uri);
-		if (this._currentExecutingStateTimer && !runState?.didPause) {
+		if (this._currentExecutingStateTimer && !runState?.isPaused) {
 			return;
 		}
 
@@ -159,7 +159,7 @@ class ExecutionStateCellStatusBarItem extends Disposable {
 				priority: Number.MAX_SAFE_INTEGER
 			};
 		} else if (state === NotebookCellExecutionState.Executing) {
-			const icon = runState?.didPause ?
+			const icon = runState?.isPaused ?
 				executingStateIcon :
 				ThemeIcon.modify(executingStateIcon, 'spin');
 			return <INotebookCellStatusBarItem>{
diff --git a/src/vs/workbench/contrib/notebook/browser/contrib/execute/executionEditorProgress.ts b/src/vs/workbench/contrib/notebook/browser/contrib/execute/executionEditorProgress.ts
index 696b46f725d1a..9b2e3da9d46d2 100644
--- a/src/vs/workbench/contrib/notebook/browser/contrib/execute/executionEditorProgress.ts
+++ b/src/vs/workbench/contrib/notebook/browser/contrib/execute/executionEditorProgress.ts
@@ -51,7 +51,7 @@ export class ExecutionEditorProgressController extends Disposable implements INo
 
 			return false;
 		};
-		if (!executing.length || executing.some(executionIsVisible) || executing.some(e => e.didPause)) {
+		if (!executing.length || executing.some(executionIsVisible) || executing.some(e => e.isPaused)) {
 			this._notebookEditor.hideProgress();
 		} else {
 			this._notebookEditor.showProgress();
diff --git a/src/vs/workbench/contrib/notebook/browser/contrib/outline/notebookOutline.ts b/src/vs/workbench/contrib/notebook/browser/contrib/outline/notebookOutline.ts
index d97a5fa61b37d..c1b45cbff6cb5 100644
--- a/src/vs/workbench/contrib/notebook/browser/contrib/outline/notebookOutline.ts
+++ b/src/vs/workbench/contrib/notebook/browser/contrib/outline/notebookOutline.ts
@@ -448,7 +448,7 @@ export class NotebookCellOutline extends Disposable implements IOutline<OutlineE
 				}
 
 				const exeState = !isMarkdown && this._notebookExecutionStateService.getCellExecutionState(cell.uri);
-				entries.push(new OutlineEntry(entries.length, 7, cell, preview, !!exeState, exeState ? exeState.didPause : false));
+				entries.push(new OutlineEntry(entries.length, 7, cell, preview, !!exeState, exeState ? exeState.isPaused : false));
 			}
 
 			if (cell.handle === focused) {
diff --git a/src/vs/workbench/contrib/notebook/browser/notebookExecutionStateServiceImpl.ts b/src/vs/workbench/contrib/notebook/browser/notebookExecutionStateServiceImpl.ts
index 7941b1c40581b..54c9d9be4cc17 100644
--- a/src/vs/workbench/contrib/notebook/browser/notebookExecutionStateServiceImpl.ts
+++ b/src/vs/workbench/contrib/notebook/browser/notebookExecutionStateServiceImpl.ts
@@ -13,7 +13,7 @@ import { ILogService } from 'vs/platform/log/common/log';
 import { NotebookTextModel } from 'vs/workbench/contrib/notebook/common/model/notebookTextModel';
 import { CellEditType, CellUri, ICellEditOperation, NotebookCellExecutionState, NotebookCellInternalMetadata, NotebookTextModelWillAddRemoveEvent } from 'vs/workbench/contrib/notebook/common/notebookCommon';
 import { CellExecutionUpdateType, INotebookExecutionService } from 'vs/workbench/contrib/notebook/common/notebookExecutionService';
-import { ICellExecuteUpdate, ICellExecutionComplete, ICellExecutionEntry, ICellExecutionStateChangedEvent, INotebookExecutionStateService } from 'vs/workbench/contrib/notebook/common/notebookExecutionStateService';
+import { ICellExecuteUpdate, ICellExecutionComplete, ICellExecutionEntry, ICellExecutionStateChangedEvent, ICellExecutionStateUpdate, INotebookExecutionStateService } from 'vs/workbench/contrib/notebook/common/notebookExecutionStateService';
 import { INotebookKernelService } from 'vs/workbench/contrib/notebook/common/notebookKernelService';
 import { INotebookService } from 'vs/workbench/contrib/notebook/common/notebookService';
 
@@ -300,6 +300,11 @@ class CellExecution implements ICellExecutionEntry {
 		return this._didPause;
 	}
 
+	private _isPaused = false;
+	get isPaused() {
+		return this._isPaused;
+	}
+
 	constructor(
 		readonly cellHandle: number,
 		private readonly _notebookModel: NotebookTextModel,
@@ -327,6 +332,11 @@ class CellExecution implements ICellExecutionEntry {
 			this._didPause = true;
 		}
 
+		const lastIsPausedUpdate = [...updates].reverse().find(u => u.editType === CellExecutionUpdateType.ExecutionState && typeof u.isPaused === 'boolean');
+		if (lastIsPausedUpdate) {
+			this._isPaused = (lastIsPausedUpdate as ICellExecutionStateUpdate).isPaused!;
+		}
+
 		const edits = updates.map(update => updateToEdit(update, this.cellHandle));
 		this._applyExecutionEdits(edits);
 	}
diff --git a/src/vs/workbench/contrib/notebook/browser/view/cellParts/cellProgressBar.ts b/src/vs/workbench/contrib/notebook/browser/view/cellParts/cellProgressBar.ts
index c43e9993fa632..f11d53b183836 100644
--- a/src/vs/workbench/contrib/notebook/browser/view/cellParts/cellProgressBar.ts
+++ b/src/vs/workbench/contrib/notebook/browser/view/cellParts/cellProgressBar.ts
@@ -66,7 +66,7 @@ export class CellProgressBar extends CellPart {
 	private _updateForExecutionState(element: ICellViewModel, e?: ICellExecutionStateChangedEvent): void {
 		const exeState = e?.changed ?? this._notebookExecutionStateService.getCellExecutionState(element.uri);
 		const progressBar = element.isInputCollapsed ? this._collapsedProgressBar : this._progressBar;
-		if (exeState?.state === NotebookCellExecutionState.Executing && !exeState.didPause) {
+		if (exeState?.state === NotebookCellExecutionState.Executing && !exeState.isPaused) {
 			showProgressBar(progressBar);
 		} else {
 			progressBar.hide();
diff --git a/src/vs/workbench/contrib/notebook/common/notebookExecutionStateService.ts b/src/vs/workbench/contrib/notebook/common/notebookExecutionStateService.ts
index 0acf45d3bc0e3..4a969429c8455 100644
--- a/src/vs/workbench/contrib/notebook/common/notebookExecutionStateService.ts
+++ b/src/vs/workbench/contrib/notebook/common/notebookExecutionStateService.ts
@@ -16,6 +16,7 @@ export interface ICellExecutionStateUpdate {
 	executionOrder?: number;
 	runStartTime?: number;
 	didPause?: boolean;
+	isPaused?: boolean;
 }
 
 export interface ICellExecutionComplete {
@@ -28,6 +29,7 @@ export interface ICellExecutionEntry {
 	cellHandle: number;
 	state: NotebookCellExecutionState;
 	didPause: boolean;
+	isPaused: boolean;
 }
 
 export interface ICellExecutionStateChangedEvent {