diff --git a/src/vs/workbench/browser/parts/panel/panelPart.ts b/src/vs/workbench/browser/parts/panel/panelPart.ts
index 666c59c185557..76c2205517bcc 100644
--- a/src/vs/workbench/browser/parts/panel/panelPart.ts
+++ b/src/vs/workbench/browser/parts/panel/panelPart.ts
@@ -320,7 +320,7 @@ export class PanelPart extends CompositePart<Panel> implements IPanelService {
 			const viewContainer = this.getViewContainer(panelDescriptor.id);
 			if (viewContainer?.hideIfEmpty) {
 				const viewDescriptors = this.viewDescriptorService.getViewDescriptors(viewContainer);
-				if (viewDescriptors.activeViewDescriptors.length === 0) {
+				if (viewDescriptors.activeViewDescriptors.length === 0 && this.compositeBar.getPinnedComposites().length > 1) {
 					this.hideComposite(panelDescriptor.id); // Update the composite bar by hiding
 				}
 			}