diff --git a/news/2 Fixes/7905.md b/news/2 Fixes/7905.md
new file mode 100644
index 000000000000..096640f862c8
--- /dev/null
+++ b/news/2 Fixes/7905.md	
@@ -0,0 +1 @@
+When automatically opening the `Notebook Editor`, then ignore uris that do not have a `file` scheme
diff --git a/src/client/datascience/interactive-ipynb/nativeEditorProvider.ts b/src/client/datascience/interactive-ipynb/nativeEditorProvider.ts
index f1b46c22a73a..aed3f1efd005 100644
--- a/src/client/datascience/interactive-ipynb/nativeEditorProvider.ts
+++ b/src/client/datascience/interactive-ipynb/nativeEditorProvider.ts
@@ -200,6 +200,9 @@ export class NativeEditorProvider implements INotebookEditorProvider, IAsyncDisp
     }
 
     private isNotebook(document: TextDocument) {
-        return document.languageId === JUPYTER_LANGUAGE || path.extname(document.fileName).toLocaleLowerCase() === '.ipynb';
+        // Only support file uris (we don't want to automatically open any other ipynb file from another resource as a notebook).
+        // E.g. when opening a document for comparison, the scheme is `git`, in live share the scheme is `vsls`.
+        const validUriScheme = document.uri.scheme === 'file' || document.uri.scheme === 'vsls';
+        return validUriScheme && (document.languageId === JUPYTER_LANGUAGE || path.extname(document.fileName).toLocaleLowerCase() === '.ipynb');
     }
 }
diff --git a/src/test/datascience/interactive-ipynb/nativeEditorProvider.unit.test.ts b/src/test/datascience/interactive-ipynb/nativeEditorProvider.unit.test.ts
new file mode 100644
index 000000000000..5b015329e447
--- /dev/null
+++ b/src/test/datascience/interactive-ipynb/nativeEditorProvider.unit.test.ts
@@ -0,0 +1,118 @@
+// Copyright (c) Microsoft Corporation. All rights reserved.
+// Licensed under the MIT License.
+
+'use strict';
+
+// tslint:disable: no-any
+
+import { expect } from 'chai';
+import { instance, mock, when } from 'ts-mockito';
+import * as typemoq from 'typemoq';
+import { EventEmitter, TextDocument, Uri } from 'vscode';
+import { CommandManager } from '../../../client/common/application/commandManager';
+import { DocumentManager } from '../../../client/common/application/documentManager';
+import { ICommandManager, IDocumentManager, IWorkspaceService } from '../../../client/common/application/types';
+import { WorkspaceService } from '../../../client/common/application/workspace';
+import { AsyncDisposableRegistry } from '../../../client/common/asyncDisposableRegistry';
+import { ConfigurationService } from '../../../client/common/configuration/service';
+import { FileSystem } from '../../../client/common/platform/fileSystem';
+import { IFileSystem } from '../../../client/common/platform/types';
+import { IConfigurationService } from '../../../client/common/types';
+import { DataScienceErrorHandler } from '../../../client/datascience/errorHandler/errorHandler';
+import { NativeEditorProvider } from '../../../client/datascience/interactive-ipynb/nativeEditorProvider';
+import { IDataScienceErrorHandler, INotebookEditor } from '../../../client/datascience/types';
+import { ServiceContainer } from '../../../client/ioc/container';
+import { IServiceContainer } from '../../../client/ioc/types';
+import { sleep } from '../../core';
+
+// tslint:disable: max-func-body-length
+suite('Data Science - Native Editor Provider', () => {
+    let workspace: IWorkspaceService;
+    let configService: IConfigurationService;
+    let fileSystem: IFileSystem;
+    let doctManager: IDocumentManager;
+    let dsErrorHandler: IDataScienceErrorHandler;
+    let cmdManager: ICommandManager;
+    let svcContainer: IServiceContainer;
+
+    setup(() => {
+        svcContainer = mock(ServiceContainer);
+        configService = mock(ConfigurationService);
+        fileSystem = mock(FileSystem);
+        doctManager = mock(DocumentManager);
+        dsErrorHandler = mock(DataScienceErrorHandler);
+        cmdManager = mock(CommandManager);
+        workspace = mock(WorkspaceService);
+    });
+
+    function createNotebookProvider() {
+        return new NativeEditorProvider(
+            instance(svcContainer),
+            instance(mock(AsyncDisposableRegistry)),
+            [],
+            instance(workspace),
+            instance(configService),
+            instance(fileSystem),
+            instance(doctManager),
+            instance(cmdManager),
+            instance(dsErrorHandler)
+        );
+    }
+    function createTextDocument(uri: Uri, content: string) {
+        const textDocument = typemoq.Mock.ofType<TextDocument>();
+        textDocument.setup(t => t.uri).returns(() => uri);
+        textDocument.setup(t => t.fileName).returns(() => uri.fsPath);
+        textDocument.setup(t => t.getText()).returns(() => content);
+        return textDocument.object;
+    }
+    async function testAutomaticallyOpeningNotebookEditorWhenOpeningFiles(uri: Uri, shouldOpenNotebookEditor: boolean) {
+        const eventEmitter = new EventEmitter<TextDocument>();
+        const editor = typemoq.Mock.ofType<INotebookEditor>();
+        when(configService.getSettings()).thenReturn({ datascience: { useNotebookEditor: true } } as any);
+        when(doctManager.onDidOpenTextDocument).thenReturn(eventEmitter.event);
+        editor.setup(e => e.closed).returns(() => new EventEmitter<INotebookEditor>().event);
+        editor.setup(e => e.executed).returns(() => new EventEmitter<INotebookEditor>().event);
+        editor.setup(e => (e as any).then).returns(() => undefined);
+        when(svcContainer.get<INotebookEditor>(INotebookEditor)).thenReturn(editor.object);
+
+        // Ensure the editor is created and the load and show methods are invoked.
+        const invocationCount = shouldOpenNotebookEditor ? 1 : 0;
+        editor
+            .setup(e => e.load(typemoq.It.isAny(), typemoq.It.isAny()))
+            .returns(() => Promise.resolve())
+            .verifiable(typemoq.Times.exactly(invocationCount));
+        editor
+            .setup(e => e.show())
+            .returns(() => Promise.resolve())
+            .verifiable(typemoq.Times.exactly(invocationCount));
+
+        const notebookEditor = createNotebookProvider();
+
+        // Open a text document.
+        const textDoc = createTextDocument(uri, 'hello');
+        eventEmitter.fire(textDoc);
+
+        // wait for callbacks to get executed.
+        await sleep(1);
+
+        // If we're to open the notebook, then there must be 1, else 0.
+        expect(notebookEditor.editors).to.be.lengthOf(shouldOpenNotebookEditor ? 1 : 0);
+        editor.verifyAll();
+    }
+
+    test('Open the notebook editor when an ipynb file is opened', async () => {
+        await testAutomaticallyOpeningNotebookEditorWhenOpeningFiles(Uri.file('some file.ipynb'), true);
+    });
+    test('Do not open the notebook editor when a txt file is opened', async () => {
+        await testAutomaticallyOpeningNotebookEditorWhenOpeningFiles(Uri.file('some text file.txt'), false);
+    });
+    test('Open the notebook editor when an ipynb file is opened with a file scheme', async () => {
+        await testAutomaticallyOpeningNotebookEditorWhenOpeningFiles(Uri.parse('file:///some file.ipynb'), true);
+    });
+    test('Open the notebook editor when an ipynb file is opened with a vsls scheme (live share)', async () => {
+        await testAutomaticallyOpeningNotebookEditorWhenOpeningFiles(Uri.parse('vsls:///some file.ipynb'), true);
+    });
+    test('Do not open the notebook editor when an ipynb file is opened with a git scheme (comparing staged/modified files)', async () => {
+        await testAutomaticallyOpeningNotebookEditorWhenOpeningFiles(Uri.parse('git://some//text file.txt'), false);
+    });
+});
diff --git a/uitests/wow.ipynb b/uitests/wow.ipynb
new file mode 100644
index 000000000000..e69de29bb2d1