diff --git a/crates/file_finder/src/file_finder.rs b/crates/file_finder/src/file_finder.rs
index 931561ac7315cf..984cf953f66cde 100644
--- a/crates/file_finder/src/file_finder.rs
+++ b/crates/file_finder/src/file_finder.rs
@@ -1484,10 +1484,12 @@ impl<'a> PathComponentSlice<'a> {
             let mut len_with_elision = self.path_str.len();
             let mut i = eligible_range.start;
             while i < eligible_range.end {
-                if pick_from_end {
-                    i = eligible_range.end - i + eligible_range.start - 1;
-                }
-                len_with_elision -= self.component_ranges[i]
+                let x = if pick_from_end {
+                    eligible_range.end - i + eligible_range.start - 1
+                } else {
+                    i
+                };
+                len_with_elision -= self.component_ranges[x]
                     .0
                     .as_os_str()
                     .as_encoded_bytes()
@@ -1501,9 +1503,11 @@ impl<'a> PathComponentSlice<'a> {
             if len_with_elision > budget {
                 return None;
             } else if pick_from_end {
-                i..eligible_range.end
+                let x = eligible_range.end - i + eligible_range.start - 1;
+                x..eligible_range.end
             } else {
-                eligible_range.start..i + 1
+                let x = i;
+                eligible_range.start..x + 1
             }
         };
 
diff --git a/crates/file_finder/src/file_finder_tests.rs b/crates/file_finder/src/file_finder_tests.rs
index 9efd5418dbe426..f54150df4bcb4e 100644
--- a/crates/file_finder/src/file_finder_tests.rs
+++ b/crates/file_finder/src/file_finder_tests.rs
@@ -19,31 +19,30 @@ fn init_logger() {
 #[test]
 fn test_path_component_slice() {
     #[track_caller]
-    fn check(path: &str, matches: impl IntoIterator<Item = usize>, expected: &str) {
+    fn check(path: &str, budget: usize, matches: impl IntoIterator<Item = usize>, expected: &str) {
         let mut path = path.to_owned();
         let slice = PathComponentSlice::new(&path);
         let matches = Vec::from_iter(matches);
-        // FIXME make it work again
-        if let Some(range) = slice.elision_range(0, &matches) {
+        if let Some(range) = slice.elision_range(budget - 1, &matches) {
             path.replace_range(range, "…");
         }
         assert_eq!(path, expected);
     }
 
-    check("p/a/b/c/d/", [], "p/…/d/");
-    check("p/a/b/c/d/", [2, 4, 6], "p/a/b/c/d/");
-    check("p/a/b/c/d/", [2, 6], "p/a/…/c/d/");
-    check("p/a/b/c/d/", [6], "p/…/c/d/");
+    check("p/a/b/c/d/", 6, [], "p/…/d/");
+    check("p/a/b/c/d/", 1, [2, 4, 6], "p/a/b/c/d/");
+    check("p/a/b/c/d/", 10, [2, 6], "p/a/…/c/d/");
+    check("p/a/b/c/d/", 8, [6], "p/…/c/d/");
 
-    check("p/a/b/c/d", [], "p/…/d");
-    check("p/a/b/c/d", [2, 4, 6], "p/a/b/c/d");
-    check("p/a/b/c/d", [2, 6], "p/a/…/c/d");
-    check("p/a/b/c/d", [6], "p/…/c/d");
+    check("p/a/b/c/d", 5, [], "p/…/d");
+    check("p/a/b/c/d", 9, [2, 4, 6], "p/a/b/c/d");
+    check("p/a/b/c/d", 9, [2, 6], "p/a/…/c/d");
+    check("p/a/b/c/d", 7, [6], "p/…/c/d");
 
-    check("/p/a/b/c/d/", [], "/p/…/d/");
-    check("/p/a/b/c/d/", [3, 5, 7], "/p/a/b/c/d/");
-    check("/p/a/b/c/d/", [3, 7], "/p/a/…/c/d/");
-    check("/p/a/b/c/d/", [7], "/p/…/c/d/");
+    check("/p/a/b/c/d/", 7, [], "/p/…/d/");
+    check("/p/a/b/c/d/", 11, [3, 5, 7], "/p/a/b/c/d/");
+    check("/p/a/b/c/d/", 11, [3, 7], "/p/a/…/c/d/");
+    check("/p/a/b/c/d/", 9, [7], "/p/…/c/d/");
 }
 
 #[test]