diff --git a/src/vs/editor/contrib/placeholderText/browser/placeholderText.css b/src/vs/editor/contrib/placeholderText/browser/placeholderText.css
new file mode 100644
index 0000000000000..c42b21a3ba28c
--- /dev/null
+++ b/src/vs/editor/contrib/placeholderText/browser/placeholderText.css
@@ -0,0 +1,8 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+.monaco-editor .placeholder-text {
+	color: var(--vscode-editorGhostText-foreground) !important;
+}
diff --git a/src/vs/editor/contrib/placeholderText/browser/placeholderTextContribution.ts b/src/vs/editor/contrib/placeholderText/browser/placeholderTextContribution.ts
new file mode 100644
index 0000000000000..52c0edd1cb8c3
--- /dev/null
+++ b/src/vs/editor/contrib/placeholderText/browser/placeholderTextContribution.ts
@@ -0,0 +1,66 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { structuralEquals } from 'vs/base/common/equals';
+import { Disposable } from 'vs/base/common/lifecycle';
+import { derived, derivedOpts, observableValue } from 'vs/base/common/observable';
+import 'vs/css!./placeholderText';
+import { ICodeEditor } from 'vs/editor/browser/editorBrowser';
+import { EditorContributionInstantiation, registerEditorContribution } from 'vs/editor/browser/editorExtensions';
+import { obsCodeEditor } from 'vs/editor/browser/observableUtilities';
+import { Range } from 'vs/editor/common/core/range';
+import { IEditorContribution } from 'vs/editor/common/editorCommon';
+import { IModelDeltaDecoration, InjectedTextCursorStops } from 'vs/editor/common/model';
+
+export class PlaceholderTextContribution extends Disposable implements IEditorContribution {
+	public static get(editor: ICodeEditor): PlaceholderTextContribution {
+		return editor.getContribution<PlaceholderTextContribution>(PlaceholderTextContribution.ID)!;
+	}
+
+	public static readonly ID = 'editor.contrib.placeholderText';
+	private readonly _editorObs = obsCodeEditor(this._editor);
+
+	private readonly _placeholderText = observableValue<string | undefined>(this, undefined);
+
+	private readonly _decorationOptions = derivedOpts<{ placeholder: string } | undefined>({ owner: this, equalsFn: structuralEquals }, reader => {
+		const p = this._placeholderText.read(reader);
+		if (!p) { return undefined; }
+		if (!this._editorObs.valueIsEmpty.read(reader)) { return undefined; }
+
+		return { placeholder: p };
+	});
+
+	private readonly _decorations = derived<IModelDeltaDecoration[]>(this, (reader) => {
+		const options = this._decorationOptions.read(reader);
+		if (!options) { return []; }
+
+		return [{
+			range: new Range(1, 1, 1, 1),
+			options: {
+				description: 'placeholder',
+				showIfCollapsed: true,
+				after: {
+					content: options.placeholder,
+					cursorStops: InjectedTextCursorStops.None,
+					inlineClassName: 'placeholder-text'
+				}
+			}
+		}];
+	});
+
+	constructor(
+		private readonly _editor: ICodeEditor,
+	) {
+		super();
+
+		this._register(this._editorObs.setDecorations(this._decorations));
+	}
+
+	public setPlaceholderText(placeholder: string): void {
+		this._placeholderText.set(placeholder, undefined);
+	}
+}
+
+registerEditorContribution(PlaceholderTextContribution.ID, PlaceholderTextContribution, EditorContributionInstantiation.Lazy);