diff --git a/CHANGELOG.md b/CHANGELOG.md
index 79354153f311..a49058b3ce26 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -98,6 +98,8 @@
    ([#10971](https://github.com/Microsoft/vscode-python/issues/10971))
 1. Fix problem with opening a notebook in jupyter after saving in VS code.
    ([#11151](https://github.com/Microsoft/vscode-python/issues/11151))   
+1. Fix CTRL+Z and Z for undo on notebooks.
+   ([#11160](https://github.com/Microsoft/vscode-python/issues/11160))
 
 
 ### Code Health
diff --git a/src/client/datascience/data-viewing/dataViewer.ts b/src/client/datascience/data-viewing/dataViewer.ts
index 77350b95d575..e71a68255533 100644
--- a/src/client/datascience/data-viewing/dataViewer.ts
+++ b/src/client/datascience/data-viewing/dataViewer.ts
@@ -8,7 +8,7 @@ import * as path from 'path';
 import { ViewColumn } from 'vscode';
 
 import { IApplicationShell, IWebPanelProvider, IWorkspaceService } from '../../common/application/types';
-import { EXTENSION_ROOT_DIR } from '../../common/constants';
+import { EXTENSION_ROOT_DIR, UseCustomEditorApi } from '../../common/constants';
 import { WebHostNotebook } from '../../common/experimentGroups';
 import { traceError } from '../../common/logger';
 import { IConfigurationService, IDisposable, IExperimentsManager, Resource } from '../../common/types';
@@ -39,7 +39,8 @@ export class DataViewer extends WebViewHost<IDataViewerMapping> implements IData
         @inject(IWorkspaceService) workspaceService: IWorkspaceService,
         @inject(IJupyterVariables) private variableManager: IJupyterVariables,
         @inject(IApplicationShell) private applicationShell: IApplicationShell,
-        @inject(IExperimentsManager) experimentsManager: IExperimentsManager
+        @inject(IExperimentsManager) experimentsManager: IExperimentsManager,
+        @inject(UseCustomEditorApi) useCustomEditorApi: boolean
     ) {
         super(
             configuration,
@@ -52,7 +53,8 @@ export class DataViewer extends WebViewHost<IDataViewerMapping> implements IData
             [path.join(dataExplorereDir, 'commons.initial.bundle.js'), path.join(dataExplorereDir, 'dataExplorer.js')],
             localize.DataScience.dataExplorerTitle(),
             ViewColumn.One,
-            experimentsManager.inExperiment(WebHostNotebook.experiment)
+            experimentsManager.inExperiment(WebHostNotebook.experiment),
+            useCustomEditorApi
         );
 
         // Load the web panel using our current directory as we don't expect to load any other files
diff --git a/src/client/datascience/interactive-common/interactiveBase.ts b/src/client/datascience/interactive-common/interactiveBase.ts
index 7112f7806f1d..20798c17f491 100644
--- a/src/client/datascience/interactive-common/interactiveBase.ts
+++ b/src/client/datascience/interactive-common/interactiveBase.ts
@@ -150,7 +150,8 @@ export abstract class InteractiveBase extends WebViewHost<IInteractiveWindowMapp
         @unmanaged() viewColumn: ViewColumn,
         @unmanaged() experimentsManager: IExperimentsManager,
         @unmanaged() private switcher: KernelSwitcher,
-        @unmanaged() private readonly notebookProvider: INotebookProvider
+        @unmanaged() private readonly notebookProvider: INotebookProvider,
+        @unmanaged() useCustomEditorApi: boolean
     ) {
         super(
             configuration,
@@ -163,7 +164,8 @@ export abstract class InteractiveBase extends WebViewHost<IInteractiveWindowMapp
             scripts,
             title,
             viewColumn,
-            experimentsManager.inExperiment(WebHostNotebook.experiment)
+            experimentsManager.inExperiment(WebHostNotebook.experiment),
+            useCustomEditorApi
         );
 
         // Create our unique id. We use this to skip messages we send to other interactive windows
diff --git a/src/client/datascience/interactive-ipynb/nativeEditor.ts b/src/client/datascience/interactive-ipynb/nativeEditor.ts
index fc104cc53f84..2995f1729a9d 100644
--- a/src/client/datascience/interactive-ipynb/nativeEditor.ts
+++ b/src/client/datascience/interactive-ipynb/nativeEditor.ts
@@ -90,7 +90,7 @@ import { nbformat } from '@jupyterlab/coreutils';
 import cloneDeep = require('lodash/cloneDeep');
 import { concatMultilineStringInput } from '../../../datascience-ui/common';
 import { ServerStatus } from '../../../datascience-ui/interactive-common/mainState';
-import { isTestExecution } from '../../common/constants';
+import { isTestExecution, UseCustomEditorApi } from '../../common/constants';
 import { KernelSwitcher } from '../jupyter/kernels/kernelSwitcher';
 
 const nativeEditorDir = path.join(EXTENSION_ROOT_DIR, 'out', 'datascience-ui', 'notebook');
@@ -177,7 +177,8 @@ export class NativeEditor extends InteractiveBase implements INotebookEditor {
         @inject(IExperimentsManager) experimentsManager: IExperimentsManager,
         @inject(IAsyncDisposableRegistry) asyncRegistry: IAsyncDisposableRegistry,
         @inject(KernelSwitcher) switcher: KernelSwitcher,
-        @inject(INotebookProvider) notebookProvider: INotebookProvider
+        @inject(INotebookProvider) notebookProvider: INotebookProvider,
+        @inject(UseCustomEditorApi) useCustomEditorApi: boolean
     ) {
         super(
             listeners,
@@ -212,7 +213,8 @@ export class NativeEditor extends InteractiveBase implements INotebookEditor {
             ViewColumn.Active,
             experimentsManager,
             switcher,
-            notebookProvider
+            notebookProvider,
+            useCustomEditorApi
         );
         asyncRegistry.push(this);
 
diff --git a/src/client/datascience/interactive-ipynb/nativeEditorOldWebView.ts b/src/client/datascience/interactive-ipynb/nativeEditorOldWebView.ts
index 16b78f21a4bf..f4850b79997c 100644
--- a/src/client/datascience/interactive-ipynb/nativeEditorOldWebView.ts
+++ b/src/client/datascience/interactive-ipynb/nativeEditorOldWebView.ts
@@ -15,6 +15,7 @@ import {
     IWebPanelProvider,
     IWorkspaceService
 } from '../../common/application/types';
+import { UseCustomEditorApi } from '../../common/constants';
 import { traceError } from '../../common/logger';
 import { IFileSystem } from '../../common/platform/types';
 import {
@@ -95,7 +96,8 @@ export class NativeEditorOldWebView extends NativeEditor {
         @inject(IExperimentsManager) experimentsManager: IExperimentsManager,
         @inject(IAsyncDisposableRegistry) asyncRegistry: IAsyncDisposableRegistry,
         @inject(KernelSwitcher) switcher: KernelSwitcher,
-        @inject(INotebookProvider) notebookProvider: INotebookProvider
+        @inject(INotebookProvider) notebookProvider: INotebookProvider,
+        @inject(UseCustomEditorApi) useCustomEditorApi: boolean
     ) {
         super(
             listeners,
@@ -124,7 +126,8 @@ export class NativeEditorOldWebView extends NativeEditor {
             experimentsManager,
             asyncRegistry,
             switcher,
-            notebookProvider
+            notebookProvider,
+            useCustomEditorApi
         );
         asyncRegistry.push(this);
         // No ui syncing in old notebooks.
diff --git a/src/client/datascience/interactive-window/interactiveWindow.ts b/src/client/datascience/interactive-window/interactiveWindow.ts
index 56b84e0bfafa..78742b71d466 100644
--- a/src/client/datascience/interactive-window/interactiveWindow.ts
+++ b/src/client/datascience/interactive-window/interactiveWindow.ts
@@ -13,6 +13,7 @@ import {
     IWebPanelProvider,
     IWorkspaceService
 } from '../../common/application/types';
+import { UseCustomEditorApi } from '../../common/constants';
 import { ContextKey } from '../../common/contextKey';
 import '../../common/extensions';
 import { traceError } from '../../common/logger';
@@ -108,7 +109,8 @@ export class InteractiveWindow extends InteractiveBase implements IInteractiveWi
         @inject(IMemento) @named(GLOBAL_MEMENTO) globalStorage: Memento,
         @inject(IExperimentsManager) experimentsManager: IExperimentsManager,
         @inject(KernelSwitcher) switcher: KernelSwitcher,
-        @inject(INotebookProvider) notebookProvider: INotebookProvider
+        @inject(INotebookProvider) notebookProvider: INotebookProvider,
+        @inject(UseCustomEditorApi) useCustomEditorApi: boolean
     ) {
         super(
             listeners,
@@ -143,7 +145,8 @@ export class InteractiveWindow extends InteractiveBase implements IInteractiveWi
             ViewColumn.Two,
             experimentsManager,
             switcher,
-            notebookProvider
+            notebookProvider,
+            useCustomEditorApi
         );
 
         // Send a telemetry event to indicate window is opening
diff --git a/src/client/datascience/plotting/plotViewer.ts b/src/client/datascience/plotting/plotViewer.ts
index 826ce491adb9..986079ff467e 100644
--- a/src/client/datascience/plotting/plotViewer.ts
+++ b/src/client/datascience/plotting/plotViewer.ts
@@ -10,7 +10,7 @@ import { Event, EventEmitter, ViewColumn } from 'vscode';
 import { traceInfo } from '../../../client/common/logger';
 import { createDeferred } from '../../../client/common/utils/async';
 import { IApplicationShell, IWebPanelProvider, IWorkspaceService } from '../../common/application/types';
-import { EXTENSION_ROOT_DIR } from '../../common/constants';
+import { EXTENSION_ROOT_DIR, UseCustomEditorApi } from '../../common/constants';
 import { WebHostNotebook } from '../../common/experimentGroups';
 import { traceError } from '../../common/logger';
 import { IFileSystem } from '../../common/platform/types';
@@ -35,7 +35,8 @@ export class PlotViewer extends WebViewHost<IPlotViewerMapping> implements IPlot
         @inject(IWorkspaceService) workspaceService: IWorkspaceService,
         @inject(IApplicationShell) private applicationShell: IApplicationShell,
         @inject(IFileSystem) private fileSystem: IFileSystem,
-        @inject(IExperimentsManager) experimentsManager: IExperimentsManager
+        @inject(IExperimentsManager) experimentsManager: IExperimentsManager,
+        @inject(UseCustomEditorApi) useCustomEditorApi: boolean
     ) {
         super(
             configuration,
@@ -48,7 +49,8 @@ export class PlotViewer extends WebViewHost<IPlotViewerMapping> implements IPlot
             [path.join(plotDir, 'commons.initial.bundle.js'), path.join(plotDir, 'plotViewer.js')],
             localize.DataScience.plotViewerTitle(),
             ViewColumn.One,
-            experimentsManager.inExperiment(WebHostNotebook.experiment)
+            experimentsManager.inExperiment(WebHostNotebook.experiment),
+            useCustomEditorApi
         );
         // Load the web panel using our current directory as we don't expect to load any other files
         super.loadWebPanel(process.cwd()).catch(traceError);
diff --git a/src/client/datascience/types.ts b/src/client/datascience/types.ts
index d8b2bf1c4150..4fc71ebb8d10 100644
--- a/src/client/datascience/types.ts
+++ b/src/client/datascience/types.ts
@@ -652,6 +652,7 @@ export interface IDataScienceExtraSettings extends IDataScienceSettings {
             fontFamily: string;
         };
         theme: string;
+        useCustomEditorApi: boolean;
     };
     intellisenseOptions: {
         quickSuggestions: {
diff --git a/src/client/datascience/webViewHost.ts b/src/client/datascience/webViewHost.ts
index a4bd0bc4622f..4138f779e1f9 100644
--- a/src/client/datascience/webViewHost.ts
+++ b/src/client/datascience/webViewHost.ts
@@ -50,7 +50,8 @@ export abstract class WebViewHost<IMapping> implements IDisposable {
         @unmanaged() private scripts: string[],
         @unmanaged() private title: string,
         @unmanaged() private viewColumn: ViewColumn,
-        @unmanaged() private readonly useWebViewServer: boolean
+        @unmanaged() private readonly useWebViewServer: boolean,
+        @unmanaged() protected readonly useCustomEditorApi: boolean
     ) {
         // Create our message listener for our web panel.
         this.messageListener = messageListenerCtor(
@@ -193,7 +194,8 @@ export abstract class WebViewHost<IMapping> implements IDisposable {
                     fontSize: this.getValue(editor, 'fontSize', 14),
                     fontFamily: this.getValue(editor, 'fontFamily', "Consolas, 'Courier New', monospace")
                 },
-                theme: theme
+                theme: theme,
+                useCustomEditorApi: this.useCustomEditorApi
             },
             intellisenseOptions: {
                 quickSuggestions: {
diff --git a/src/datascience-ui/native-editor/nativeCell.tsx b/src/datascience-ui/native-editor/nativeCell.tsx
index 409054dd7ec9..07ff608fd009 100644
--- a/src/datascience-ui/native-editor/nativeCell.tsx
+++ b/src/datascience-ui/native-editor/nativeCell.tsx
@@ -19,7 +19,7 @@ import { CellOutput } from '../interactive-common/cellOutput';
 import { ExecutionCount } from '../interactive-common/executionCount';
 import { InformationMessages } from '../interactive-common/informationMessages';
 import { CursorPos, ICellViewModel, IFont } from '../interactive-common/mainState';
-import { getOSType, UseCustomEditor } from '../react-common/constants';
+import { getOSType } from '../react-common/constants';
 import { IKeyboardEvent } from '../react-common/event';
 import { Image, ImageName } from '../react-common/image';
 import { ImageButton } from '../react-common/imageButton';
@@ -51,6 +51,7 @@ interface INativeCellBaseProps {
     themeMatplotlibPlots: boolean | undefined;
     focusPending: number;
     busy: boolean;
+    useCustomEditorApi: boolean;
 }
 
 type INativeCellProps = INativeCellBaseProps & typeof actionCreators;
@@ -356,7 +357,7 @@ export class NativeCell extends React.Component<INativeCellProps> {
                 break;
             case 'z':
             case 'Z':
-                if (!this.isFocused() && !UseCustomEditor.enabled) {
+                if (!this.isFocused() && !this.props.useCustomEditorApi) {
                     if (e.shiftKey && !e.ctrlKey && !e.altKey) {
                         e.stopPropagation();
                         this.props.redo();
@@ -657,7 +658,7 @@ export class NativeCell extends React.Component<INativeCellProps> {
                         keyDown={this.keyDownInput}
                         showLineNumbers={this.props.cellVM.showLineNumbers}
                         font={this.props.font}
-                        disableUndoStack={UseCustomEditor.enabled}
+                        disableUndoStack={this.props.useCustomEditorApi}
                         codeVersion={this.props.cellVM.codeVersion ? this.props.cellVM.codeVersion : 1}
                         focusPending={this.props.focusPending}
                     />
diff --git a/src/datascience-ui/native-editor/nativeEditor.tsx b/src/datascience-ui/native-editor/nativeEditor.tsx
index 20f8bb0be0e6..0f4b1979f8db 100644
--- a/src/datascience-ui/native-editor/nativeEditor.tsx
+++ b/src/datascience-ui/native-editor/nativeEditor.tsx
@@ -11,7 +11,7 @@ import { handleLinkClick } from '../interactive-common/handlers';
 import { getSelectedAndFocusedInfo, ICellViewModel, IMainState } from '../interactive-common/mainState';
 import { IMainWithVariables, IStore } from '../interactive-common/redux/store';
 import { IVariablePanelProps, VariablePanel } from '../interactive-common/variablePanel';
-import { getOSType, UseCustomEditor } from '../react-common/constants';
+import { getOSType } from '../react-common/constants';
 import { ErrorBoundary } from '../react-common/errorBoundary';
 import { getLocString } from '../react-common/locReactSide';
 import { Progress } from '../react-common/progress';
@@ -193,7 +193,10 @@ ${buildSettingsCss(this.props.settings)}`}</style>
             }
             case 'z':
             case 'Z':
-                if (!getSelectedAndFocusedInfo(this.props).focusedCellId && !UseCustomEditor.enabled) {
+                if (
+                    !getSelectedAndFocusedInfo(this.props).focusedCellId &&
+                    !this.props.settings?.extraSettings.useCustomEditorApi
+                ) {
                     if (event.shiftKey && !event.ctrlKey && !event.altKey) {
                         event.stopPropagation();
                         this.props.redo();
@@ -283,6 +286,7 @@ ${buildSettingsCss(this.props.settings)}`}</style>
                         // Focus pending does not apply to native editor.
                         focusPending={0}
                         busy={this.props.busy}
+                        useCustomEditorApi={this.props.settings?.extraSettings.useCustomEditorApi}
                     />
                 </ErrorBoundary>
                 {lastLine}
diff --git a/src/datascience-ui/react-common/constants.ts b/src/datascience-ui/react-common/constants.ts
index 9ee4d2026375..c7bd757316d7 100644
--- a/src/datascience-ui/react-common/constants.ts
+++ b/src/datascience-ui/react-common/constants.ts
@@ -23,5 +23,3 @@ export function getOSType() {
         return OSType.Unknown;
     }
 }
-
-export const UseCustomEditor = { enabled: true };
diff --git a/src/datascience-ui/react-common/settingsReactSide.ts b/src/datascience-ui/react-common/settingsReactSide.ts
index 0a3436e30ada..6f40ee0d6782 100644
--- a/src/datascience-ui/react-common/settingsReactSide.ts
+++ b/src/datascience-ui/react-common/settingsReactSide.ts
@@ -46,7 +46,8 @@ export function getDefaultSettings() {
                 fontSize: 14,
                 fontFamily: "Consolas, 'Courier New', monospace"
             },
-            theme: 'Default Dark+'
+            theme: 'Default Dark+',
+            useCustomEditorApi: false
         },
         intellisenseOptions: {
             quickSuggestions: {
diff --git a/src/test/datascience/nativeEditor.functional.test.tsx b/src/test/datascience/nativeEditor.functional.test.tsx
index 4bdd5d71ce8a..f7e03064e321 100644
--- a/src/test/datascience/nativeEditor.functional.test.tsx
+++ b/src/test/datascience/nativeEditor.functional.test.tsx
@@ -38,7 +38,6 @@ import { ExecutionCount } from '../../datascience-ui/interactive-common/executio
 import { CommonActionType } from '../../datascience-ui/interactive-common/redux/reducers/types';
 import { NativeCell } from '../../datascience-ui/native-editor/nativeCell';
 import { NativeEditor } from '../../datascience-ui/native-editor/nativeEditor';
-import { UseCustomEditor } from '../../datascience-ui/react-common/constants';
 import { IKeyboardEvent } from '../../datascience-ui/react-common/event';
 import { ImageButton } from '../../datascience-ui/react-common/imageButton';
 import { IMonacoEditorState, MonacoEditor } from '../../datascience-ui/react-common/monacoEditor';
@@ -130,7 +129,6 @@ suite('DataScience Native Editor', () => {
                 };
 
                 setup(async () => {
-                    UseCustomEditor.enabled = useCustomEditorApi;
                     ioc = new DataScienceIocContainer();
                     ioc.registerDataScienceTypes(useCustomEditorApi);
                     await ioc.activate();
@@ -906,7 +904,6 @@ df.head()`;
                     cleanupCallback: Function;
                 };
                 function initIoc() {
-                    UseCustomEditor.enabled = useCustomEditorApi;
                     ioc = new DataScienceIocContainer();
                     ioc.registerDataScienceTypes(useCustomEditorApi);
                     return ioc.activate();
diff --git a/src/test/datascience/uiTests/ipywidget.ui.functional.test.ts b/src/test/datascience/uiTests/ipywidget.ui.functional.test.ts
index 8c7a0e2bf632..3e006dfc1c53 100644
--- a/src/test/datascience/uiTests/ipywidget.ui.functional.test.ts
+++ b/src/test/datascience/uiTests/ipywidget.ui.functional.test.ts
@@ -14,7 +14,6 @@ import * as path from 'path';
 import * as sinon from 'sinon';
 import { Disposable } from 'vscode';
 import { EXTENSION_ROOT_DIR } from '../../../client/constants';
-import { UseCustomEditor } from '../../../datascience-ui/react-common/constants';
 import { retryIfFail as retryIfFailOriginal } from '../../common';
 import { mockedVSCodeNamespaces } from '../../vscode-mock';
 import { DataScienceIocContainer } from '../dataScienceIocContainer';
@@ -37,7 +36,6 @@ use(chaiAsPromised);
 
         suiteSetup(function () {
             // These are UI tests, hence nothing to do with platforms.
-            UseCustomEditor.enabled = useCustomEditorApi;
             this.timeout(30_000); // UI Tests, need time to start jupyter.
             if (!process.env.VSCODE_PYTHON_ROLLING) {
                 // Skip all tests unless using real jupyter
@@ -45,7 +43,6 @@ use(chaiAsPromised);
             }
         });
         setup(async () => {
-            UseCustomEditor.enabled = useCustomEditorApi;
             ioc = new DataScienceIocContainer(true);
             ioc.registerDataScienceTypes(useCustomEditorApi);
             await ioc.activate();