diff --git a/binder/environment.yml b/binder/environment.yml
index 6e8ecd0b1d6..5ce8931ca5d 100644
--- a/binder/environment.yml
+++ b/binder/environment.yml
@@ -15,6 +15,7 @@ dependencies:
 - intervaltree >=3.0.2
 - ipython >=7.6.0
 - jedi >=0.17.2,<0.19.0
+- jellyfish >=0.7
 - jsonschema >=3.2.0
 - keyring >=17.0.0
 - nbconvert >=4.0
diff --git a/requirements/conda.txt b/requirements/conda.txt
index f159accc689..93a0b15132f 100644
--- a/requirements/conda.txt
+++ b/requirements/conda.txt
@@ -11,6 +11,7 @@ diff-match-patch >=20181111
 intervaltree >=3.0.2
 IPython >=7.6.0
 jedi >=0.17.2,<0.19.0
+jellyfish >=0.7
 jsonschema >=3.2.0
 keyring >=17.0.0
 nbconvert >=4.0
diff --git a/setup.py b/setup.py
index c45817dfe6b..f81c314df28 100644
--- a/setup.py
+++ b/setup.py
@@ -210,6 +210,7 @@ def run(self):
     'intervaltree>=3.0.2',
     'ipython>=7.6.0',
     'jedi>=0.17.2,<0.19.0',
+    'jellyfish>=0.7',
     'jsonschema>=3.2.0',
     'keyring>=17.0.0',
     'nbconvert>=4.0',
diff --git a/spyder/dependencies.py b/spyder/dependencies.py
index 8e3af788e6d..61576fd8242 100644
--- a/spyder/dependencies.py
+++ b/spyder/dependencies.py
@@ -41,6 +41,7 @@
 INTERVALTREE_REQVER = None if is_pynsist() else '>=3.0.2'
 IPYTHON_REQVER = ">=7.6.0"
 JEDI_REQVER = '>=0.17.2;<0.19.0'
+JELLYFISH_REQVER = '>=0.7'
 JSONSCHEMA_REQVER = '>=3.2.0'
 KEYRING_REQVER = '>=17.0.0'
 NBCONVERT_REQVER = '>=4.0'
@@ -127,6 +128,10 @@
      'package_name': "jedi",
      'features': _("Main backend for the Python Language Server"),
      'required_version': JEDI_REQVER},
+    {'modname': "jellyfish",
+     'package_name': "jellyfish",
+     'features': _("Optimize algorithms for folding"),
+     'required_version': JELLYFISH_REQVER},
     {'modname': 'jsonschema',
      'package_name': 'jsonschema',
      'features': _('Verify if snippets files are valid'),
diff --git a/spyder/plugins/editor/panels/utils.py b/spyder/plugins/editor/panels/utils.py
index aff64782e2e..9f058b25f4a 100644
--- a/spyder/plugins/editor/panels/utils.py
+++ b/spyder/plugins/editor/panels/utils.py
@@ -157,7 +157,7 @@ def merge_folding(ranges, current_tree, root):
     while deleted_entry is not None and changed_entry is not None:
         deleted_entry_i = deleted_entry.data
         changed_entry_i = changed_entry.data
-        dist = textdistance.jaccard.normalized_similarity(
+        dist = textdistance.hamming.normalized_similarity(
             deleted_entry_i.text, changed_entry_i.text)
 
         if dist >= 0.80: