3 files changed, 6 insertions, 5 deletions
diff --git a/src/nvim/edit.c b/src/nvim/edit.c
index ff1107db6c..18d5ea533d 100644
--- a/src/nvim/edit.c
+++ b/src/nvim/edit.c
@@ -462,6 +462,8 @@ static void insert_enter(InsertState *s)
     o_lnum = curwin->w_cursor.lnum;
   }
 
+  foldUpdateAll(curwin);
+  foldOpenCursor();
   if (s->cmdchar != 'r' && s->cmdchar != 'v') {
     apply_autocmds(EVENT_INSERTLEAVE, NULL, NULL, false, curbuf);
   }
diff --git a/src/nvim/fold.c b/src/nvim/fold.c
index a92ee86248..70030b8525 100644
--- a/src/nvim/fold.c
+++ b/src/nvim/fold.c
@@ -765,12 +765,8 @@ void foldUpdate(win_T *wp, linenr_T top, linenr_T bot)
     return;
   }
 
-  fold_T      *fp;
-  if (wp->w_buffer->terminal) {
-    return;
-  }
-
   // Mark all folds from top to bot as maybe-small.
+  fold_T *fp;
   (void)foldFind(&wp->w_folds, top, &fp);
   while (fp < (fold_T *)wp->w_folds.ga_data + wp->w_folds.ga_len
          && fp->fd_top < bot) {
diff --git a/src/nvim/normal.c b/src/nvim/normal.c
index 68ba9e399f..d0a9d3aca7 100644
--- a/src/nvim/normal.c
+++ b/src/nvim/normal.c
@@ -5924,6 +5924,9 @@ static void nv_replace(cmdarg_T *cap)
     curwin->w_set_curswant = true;
     set_last_insert(cap->nchar);
   }
+
+  foldUpdateAll(curwin);
+  foldOpenCursor();
 }
 
 /*