diff --git a/src/vs/workbench/contrib/notebook/browser/media/notebook.css b/src/vs/workbench/contrib/notebook/browser/media/notebook.css
index 0334bc126d324..b5d742ff80656 100644
--- a/src/vs/workbench/contrib/notebook/browser/media/notebook.css
+++ b/src/vs/workbench/contrib/notebook/browser/media/notebook.css
@@ -56,7 +56,8 @@
 }
 
 .monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row.focused .cell-drag-handle,
-.monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row:hover .cell-drag-handle {
+.monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row:hover .cell-drag-handle,
+.monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row.cell-output-hover .cell-drag-handle {
 	visibility: visible;
 }
 
@@ -152,11 +153,13 @@
 
 
 .monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row .menu.mouseover,
-.monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row:hover .menu {
+.monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row:hover .menu,
+.monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row.cell-output-hover .menu {
 	visibility: visible;
 }
 
-.monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row:hover {
+.monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row:hover,
+.monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row.cell-output-hover {
 	outline: none !important;
 }
 
@@ -253,7 +256,8 @@
 }
 
 .monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row:hover .cell.runnable .run-button-container .monaco-toolbar,
-.monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row.focused .cell.runnable .run-button-container .monaco-toolbar {
+.monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row.focused .cell.runnable .run-button-container .monaco-toolbar,
+.monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row.cell-output-hover .cell.runnable .run-button-container .monaco-toolbar {
 	visibility: visible;
 }
 
@@ -270,6 +274,7 @@
 }
 
 .monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row:hover .cell .run-button-container .execution-count-label,
+.monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row.cell-output-hover .cell .run-button-container .execution-count-label,
 .monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row.focused .cell .run-button-container .execution-count-label {
 	visibility: hidden;
 }
@@ -283,6 +288,7 @@
 }
 
 .monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row.focused .monaco-toolbar,
+.monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row.cell-output-hover .monaco-toolbar,
 .monaco-workbench .part.editor > .content .notebook-editor > .cell-list-container > .monaco-list > .monaco-scrollable-element > .monaco-list-rows > .monaco-list-row:hover .monaco-toolbar {
 	visibility: visible;
 }
@@ -307,6 +313,7 @@
 }
 
 .monaco-workbench .part.editor > .content .notebook-editor .monaco-list .monaco-list-row:hover .notebook-cell-focus-indicator,
+.monaco-workbench .part.editor > .content .notebook-editor .monaco-list .monaco-list-row.cell-output-hover .notebook-cell-focus-indicator,
 .monaco-workbench .part.editor > .content .notebook-editor .monaco-list .monaco-list-row.focused .notebook-cell-focus-indicator {
 	visibility: visible;
 }
diff --git a/src/vs/workbench/contrib/notebook/browser/notebookBrowser.ts b/src/vs/workbench/contrib/notebook/browser/notebookBrowser.ts
index e03d061b8699c..16c7c0d32d07a 100644
--- a/src/vs/workbench/contrib/notebook/browser/notebookBrowser.ts
+++ b/src/vs/workbench/contrib/notebook/browser/notebookBrowser.ts
@@ -463,6 +463,7 @@ export interface CellViewModelStateChangeEvent {
 	languageChanged?: boolean;
 	foldingStateChanged?: boolean;
 	contentChanged?: boolean;
+	outputIsHoveredChanged?: boolean;
 }
 
 /**
diff --git a/src/vs/workbench/contrib/notebook/browser/notebookEditor.ts b/src/vs/workbench/contrib/notebook/browser/notebookEditor.ts
index 6947fbbd0752d..7e64a1fafc9af 100644
--- a/src/vs/workbench/contrib/notebook/browser/notebookEditor.ts
+++ b/src/vs/workbench/contrib/notebook/browser/notebookEditor.ts
@@ -1022,7 +1022,8 @@ registerThemingParticipant((theme, collector) => {
 		collector.addRule(`.monaco-workbench .part.editor > .content .notebook-editor .cell-bottom-toolbar-container .seperator { background-color: ${cellToolbarSeperator} }`);
 		collector.addRule(`.monaco-workbench .part.editor > .content .notebook-editor .cell-bottom-toolbar-container .seperator-short { background-color: ${cellToolbarSeperator} }`);
 		collector.addRule(`.monaco-workbench .part.editor > .content .notebook-editor .monaco-list-row > .monaco-toolbar { border: solid 1px ${cellToolbarSeperator}; }`);
-		collector.addRule(`.monaco-workbench .part.editor > .content .notebook-editor .monaco-list-row:hover .notebook-cell-focus-indicator { border-color: ${cellToolbarSeperator}; }`);
+		collector.addRule(`.monaco-workbench .part.editor > .content .notebook-editor .monaco-list-row:hover .notebook-cell-focus-indicator,
+			.monaco-workbench .part.editor > .content .notebook-editor .monaco-list-row.cell-output-hover .notebook-cell-focus-indicator { border-color: ${cellToolbarSeperator}; }`);
 	}
 
 	const focusedCellIndicatorColor = theme.getColor(focusedCellIndicator);
diff --git a/src/vs/workbench/contrib/notebook/browser/view/renderers/backLayerWebView.ts b/src/vs/workbench/contrib/notebook/browser/view/renderers/backLayerWebView.ts
index 08304b85c0d67..8f57a4a8c1a7b 100644
--- a/src/vs/workbench/contrib/notebook/browser/view/renderers/backLayerWebView.ts
+++ b/src/vs/workbench/contrib/notebook/browser/view/renderers/backLayerWebView.ts
@@ -20,13 +20,25 @@ import { IOpenerService } from 'vs/platform/opener/common/opener';
 import { getPathFromAmdModule } from 'vs/base/common/amd';
 import { isWeb } from 'vs/base/common/platform';
 
-export interface IDimentionMessage {
+export interface IDimensionMessage {
 	__vscode_notebook_message: boolean;
 	type: 'dimension';
 	id: string;
 	data: DOM.Dimension;
 }
 
+export interface IMouseEnterMessage {
+	__vscode_notebook_message: boolean;
+	type: 'mouseenter';
+	id: string;
+}
+
+export interface IMouseLeaveMessage {
+	__vscode_notebook_message: boolean;
+	type: 'mouseleave';
+	id: string;
+}
+
 export interface IWheelMessage {
 	__vscode_notebook_message: boolean;
 	type: 'did-scroll-wheel';
@@ -80,7 +92,7 @@ export interface IUpdatePreloadResourceMessage {
 	resources: string[];
 }
 
-type IMessage = IDimentionMessage | IScrollAckMessage | IWheelMessage;
+type IMessage = IDimensionMessage | IScrollAckMessage | IWheelMessage | IMouseEnterMessage | IMouseLeaveMessage;
 
 let version = 0;
 export class BackLayerWebView extends Disposable {
@@ -279,6 +291,23 @@ ${loaderJs}
 						newElement.id = id;
 						document.getElementById('container').appendChild(newElement);
 						cellOutputContainer = newElement;
+
+						cellOutputContainer.addEventListener('mouseenter', () => {
+							vscode.postMessage({
+								__vscode_notebook_message: true,
+								type: 'mouseenter',
+								id: outputId,
+								data: { }
+							});
+						});
+						cellOutputContainer.addEventListener('mouseleave', () => {
+							vscode.postMessage({
+								__vscode_notebook_message: true,
+								type: 'mouseleave',
+								id: outputId,
+								data: { }
+							});
+						});
 					}
 
 					let outputNode = document.createElement('div');
@@ -362,6 +391,15 @@ ${loaderJs}
 `;
 	}
 
+	private resolveOutputId(id: string): { cell: CodeCellViewModel, output: IOutput } | undefined {
+		const output = this.reversedInsetMapping.get(id);
+		if (!output) {
+			return;
+		}
+
+		return { cell: this.insetMapping.get(output)!.cell, output };
+	}
+
 	initialize(content: string) {
 		this.webview = this._createInset(this.webviewService, content);
 		this.webview.mountTo(this.element);
@@ -373,21 +411,28 @@ ${loaderJs}
 		this._register(this.webview.onMessage((data: IMessage) => {
 			if (data.__vscode_notebook_message) {
 				if (data.type === 'dimension') {
-					let output = this.reversedInsetMapping.get(data.id);
-
-					if (!output) {
-						return;
-					}
-
-					let cell = this.insetMapping.get(output)!.cell;
 					let height = data.data.height;
 					let outputHeight = height;
 
-					if (cell) {
+					const info = this.resolveOutputId(data.id);
+					if (info) {
+						const { cell, output } = info;
 						let outputIndex = cell.outputs.indexOf(output);
 						cell.updateOutputHeight(outputIndex, outputHeight);
 						this.notebookEditor.layoutNotebookCell(cell, cell.layoutInfo.totalHeight);
 					}
+				} else if (data.type === 'mouseenter') {
+					const info = this.resolveOutputId(data.id);
+					if (info) {
+						const { cell } = info;
+						cell.outputIsHovered = true;
+					}
+				} else if (data.type === 'mouseleave') {
+					const info = this.resolveOutputId(data.id);
+					if (info) {
+						const { cell } = info;
+						cell.outputIsHovered = false;
+					}
 				} else if (data.type === 'scroll-ack') {
 					// const date = new Date();
 					// const top = data.data.top;
diff --git a/src/vs/workbench/contrib/notebook/browser/view/renderers/cellRenderer.ts b/src/vs/workbench/contrib/notebook/browser/view/renderers/cellRenderer.ts
index 8d184694f8cfc..186ea1e8ad4ef 100644
--- a/src/vs/workbench/contrib/notebook/browser/view/renderers/cellRenderer.ts
+++ b/src/vs/workbench/contrib/notebook/browser/view/renderers/cellRenderer.ts
@@ -722,6 +722,10 @@ export class CodeCellRenderer extends AbstractCellRenderer implements IListRende
 		}
 	}
 
+	private updateForHover(element: CodeCellViewModel, templateData: CodeCellRenderTemplate): void {
+		DOM.toggleClass(templateData.container, 'cell-output-hover', element.outputIsHovered);
+	}
+
 	renderElement(element: CodeCellViewModel, index: number, templateData: CodeCellRenderTemplate, height: number | undefined): void {
 		this.commonRenderElement(element, index, templateData);
 
@@ -762,6 +766,10 @@ export class CodeCellRenderer extends AbstractCellRenderer implements IListRende
 			if (e.metadataChanged) {
 				this.updateForMetadata(element, templateData, cellEditableKey);
 			}
+
+			if (e.outputIsHoveredChanged) {
+				this.updateForHover(element, templateData);
+			}
 		}));
 
 		this.setupCellToolbarActions(contextKeyService, templateData, elementDisposables);
diff --git a/src/vs/workbench/contrib/notebook/browser/viewModel/codeCellViewModel.ts b/src/vs/workbench/contrib/notebook/browser/viewModel/codeCellViewModel.ts
index e408207cfcb42..270552b74efaa 100644
--- a/src/vs/workbench/contrib/notebook/browser/viewModel/codeCellViewModel.ts
+++ b/src/vs/workbench/contrib/notebook/browser/viewModel/codeCellViewModel.ts
@@ -49,6 +49,16 @@ export class CodeCellViewModel extends BaseCellViewModel implements ICellViewMod
 		return this._editorHeight;
 	}
 
+	private _hoveringOutput: boolean = false;
+	public get outputIsHovered(): boolean {
+		return this._hoveringOutput;
+	}
+
+	public set outputIsHovered(v: boolean) {
+		this._hoveringOutput = v;
+		this._onDidChangeState.fire({ outputIsHoveredChanged: true });
+	}
+
 	private _layoutInfo: CodeCellLayoutInfo;
 
 	get layoutInfo() {