diff --git a/src/mode/modeHandler.ts b/src/mode/modeHandler.ts
index e73d16cd505..d076f036bb8 100644
--- a/src/mode/modeHandler.ts
+++ b/src/mode/modeHandler.ts
@@ -63,7 +63,7 @@ export class ModeHandler implements vscode.Disposable, IModeHandler {
 
   public focusChanged = false;
 
-  private searchDecorationCacheKey: { searchString: string; documentVersion: number } | undefined;
+  private searchDecorationCacheKey: { searchString: string; matchIndex: number | undefined } | undefined;
 
   private readonly disposables: vscode.Disposable[] = [];
   private readonly handlerMap: IModeHandlerMap;
@@ -1190,19 +1190,27 @@ export class ModeHandler implements vscode.Disposable, IModeHandler {
         if (
           cacheKey &&
           cacheKey.searchString === globalState.searchState.searchString &&
-          cacheKey.documentVersion === this.vimState.document.version
+          cacheKey.matchIndex === globalState.searchState.nextMatchIndex
         ) {
           // The decorations are fine as-is, don't waste time re-calculating
           this.searchDecorationCacheKey = cacheKey;
           return;
         }
-        // If there are no decorations from the command line, get decorations for previous SearchState
-        decorations = getDecorationsForSearchMatchRanges(
-          globalState.searchState.getMatchRanges(this.vimState),
-        );
+        // Update decorations highlighting the current match
+        if (globalState.searchState.nextMatchIndex !== undefined) {
+          decorations = getDecorationsForSearchMatchRanges(
+            globalState.searchState.getMatchRanges(this.vimState),
+            globalState.searchState.nextMatchIndex
+          );
+        } else {
+          // No next match defined, update decorations without a currentMatchIndex
+          decorations = getDecorationsForSearchMatchRanges(
+            globalState.searchState.getMatchRanges(this.vimState),
+          );
+        }
         this.searchDecorationCacheKey = {
           searchString: globalState.searchState.searchString,
-          documentVersion: this.vimState.document.version,
+          matchIndex: globalState.searchState.nextMatchIndex,
         };
       }
     }
diff --git a/src/state/searchState.ts b/src/state/searchState.ts
index 280413ad104..1a6851b9fec 100644
--- a/src/state/searchState.ts
+++ b/src/state/searchState.ts
@@ -42,6 +42,7 @@ export class SearchState {
 
     this.cursorStartPosition = startPosition;
     this.ignoreSmartcase = ignoreSmartcase;
+    this._nextMatchIndex = undefined;
   }
 
   private _searchString: string;
@@ -49,6 +50,11 @@ export class SearchState {
   private offset?: SearchOffset;
 
   public readonly cursorStartPosition: Position;
+  private _nextMatchIndex: number | undefined;
+
+  public get nextMatchIndex(): number | undefined {
+    return this._nextMatchIndex;
+  }
 
   public get searchString(): string {
     return this._searchString;
@@ -136,6 +142,7 @@ export class SearchState {
       return undefined;
     }
     const { range, index } = nextMatch;
+    this._nextMatchIndex = nextMatch.index;
 
     return { pos: this.offset ? this.offset.apply(range) : range.start, index };
   }