diff --git a/src/nvim/drawline.c b/src/nvim/drawline.c
index b5baf6f646..c8935e0118 100644
--- a/src/nvim/drawline.c
+++ b/src/nvim/drawline.c
@@ -1951,11 +1951,15 @@ int win_line(win_T *wp, linenr_T lnum, int startrow, int endrow, int col_rows, b
       ptr = line + v;
     }
 
-    if (draw_folded && wlv.n_extra == 0 && wlv.col < view_width && (has_foldtext || *ptr == NUL)) {
+    // Draw 'fold' fillchar after 'foldtext', or after 'eol' listchar for transparent 'foldtext'.
+    if (draw_folded && wlv.n_extra == 0 && wlv.col < view_width
+        && (has_foldtext || (*ptr == NUL && (!wp->w_p_list || !lcs_eol_todo || lcs_eol == NUL)))) {
       // Fill rest of line with 'fold'.
       wlv.sc_extra = wp->w_p_fcs_chars.fold;
       wlv.sc_final = NUL;
       wlv.n_extra = view_width - wlv.col;
+      // Don't continue search highlighting past the first filler char.
+      search_attr = 0;
     }
 
     if (draw_folded && wlv.n_extra != 0 && wlv.col >= view_width) {
@@ -2712,7 +2716,7 @@ int win_line(win_T *wp, linenr_T lnum, int startrow, int endrow, int col_rows, b
           // Add a blank character to highlight.
           linebuf_char[wlv.off] = schar_from_ascii(' ');
         }
-        if (area_attr == 0 && !has_foldtext) {
+        if (area_attr == 0 && !has_fold) {
           // Use attributes from match with highest priority among
           // 'search_hl' and the match list.
           get_search_match_hl(wp,
diff --git a/test/functional/ui/fold_spec.lua b/test/functional/ui/fold_spec.lua
index 249ea86e3e..76772b9081 100644
--- a/test/functional/ui/fold_spec.lua
+++ b/test/functional/ui/fold_spec.lua
@@ -56,6 +56,7 @@ describe('folded lines', function()
         [20] = { background = Screen.colors.Red, bold = true, foreground = Screen.colors.Blue },
         [21] = { background = Screen.colors.LightGrey, foreground = Screen.colors.Green },
         [22] = { background = Screen.colors.Red, foreground = Screen.colors.Green },
+        [23] = { foreground = Screen.colors.Blue1, bold = true, background = Screen.colors.Yellow },
       })
     end)
 
@@ -2829,6 +2830,195 @@ describe('folded lines', function()
         ]])
       end
     end)
+
+    it('transparent foldtext filler text search highlighting', function()
+      screen:try_resize(30, 7)
+      insert(content1)
+      api.nvim_set_option_value('foldtext', '', {})
+
+      command("3,4fold | let v:hlsearch = 1 | let @/ = '.'")
+      if multigrid then
+        screen:expect({
+          grid = [[
+          ## grid 1
+            [2:------------------------------]|*6
+            [3:------------------------------]|
+          ## grid 2
+            {6:This is a}                     |
+            {6:valid English}                 |
+            {19:sentence composed by}{5:··········}|
+            {6:in his cave.}                  |
+            ^                              |
+            {1:~                             }|
+          ## grid 3
+                                          |
+          ]],
+        })
+      else
+        screen:expect([[
+          {6:This is a}                     |
+          {6:valid English}                 |
+          {19:sentence composed by}{5:··········}|
+          {6:in his cave.}                  |
+          ^                              |
+          {1:~                             }|
+                                        |
+        ]])
+      end
+
+      command("let @/ = '$'")
+      if multigrid then
+        screen:expect({
+          grid = [[
+          ## grid 1
+            [2:------------------------------]|*6
+            [3:------------------------------]|
+          ## grid 2
+            This is a{6: }                    |
+            valid English{6: }                |
+            {5:sentence composed by}{19:·}{5:·········}|
+            in his cave.{6: }                 |
+            {6:^ }                             |
+            {1:~                             }|
+          ## grid 3
+                                          |
+          ]],
+        })
+      else
+        screen:expect([[
+          This is a{6: }                    |
+          valid English{6: }                |
+          {5:sentence composed by}{19:·}{5:·········}|
+          in his cave.{6: }                 |
+          {6:^ }                             |
+          {1:~                             }|
+                                        |
+        ]])
+      end
+
+      command("let @/ = '.\\?'")
+      if multigrid then
+        screen:expect({
+          grid = [[
+          ## grid 1
+            [2:------------------------------]|*6
+            [3:------------------------------]|
+          ## grid 2
+            {6:This is a }                    |
+            {6:valid English }                |
+            {19:sentence composed by·}{5:·········}|
+            {6:in his cave. }                 |
+            {6:^ }                             |
+            {1:~                             }|
+          ## grid 3
+                                          |
+          ]],
+        })
+      else
+        screen:expect([[
+          {6:This is a }                    |
+          {6:valid English }                |
+          {19:sentence composed by·}{5:·········}|
+          {6:in his cave. }                 |
+          {6:^ }                             |
+          {1:~                             }|
+                                        |
+        ]])
+      end
+
+      command('set list')
+      screen:expect_unchanged() -- No "eol" set for &listchars yet.
+
+      command("set listchars+=eol:& | let @/ = '.'")
+      if multigrid then
+        screen:expect({
+          grid = [[
+          ## grid 1
+            [2:------------------------------]|*6
+            [3:------------------------------]|
+          ## grid 2
+            {6:This is a}{1:&}                    |
+            {6:valid English}{1:&}                |
+            {19:sentence composed by}{18:&}{5:·········}|
+            {6:in his cave.}{1:&}                 |
+            {1:^&}                             |
+            {1:~                             }|
+          ## grid 3
+                                          |
+          ]],
+        })
+      else
+        screen:expect([[
+          {6:This is a}{1:&}                    |
+          {6:valid English}{1:&}                |
+          {19:sentence composed by}{18:&}{5:·········}|
+          {6:in his cave.}{1:&}                 |
+          {1:^&}                             |
+          {1:~                             }|
+                                        |
+        ]])
+      end
+
+      command("let @/ = '$'")
+      if multigrid then
+        screen:expect({
+          grid = [[
+          ## grid 1
+            [2:------------------------------]|*6
+            [3:------------------------------]|
+          ## grid 2
+            This is a{23:&}                    |
+            valid English{23:&}                |
+            {5:sentence composed by}{23:&}{5:·········}|
+            in his cave.{23:&}                 |
+            {23:^&}                             |
+            {1:~                             }|
+          ## grid 3
+                                          |
+          ]],
+        })
+      else
+        screen:expect([[
+          This is a{23:&}                    |
+          valid English{23:&}                |
+          {5:sentence composed by}{23:&}{5:·········}|
+          in his cave.{23:&}                 |
+          {23:^&}                             |
+          {1:~                             }|
+                                        |
+        ]])
+      end
+
+      command("let @/ = '.\\?'")
+      if multigrid then
+        screen:expect({
+          grid = [[
+          ## grid 1
+            [2:------------------------------]|*6
+            [3:------------------------------]|
+          ## grid 2
+            {6:This is a}{23:&}                    |
+            {6:valid English}{23:&}                |
+            {19:sentence composed by}{23:&}{5:·········}|
+            {6:in his cave.}{23:&}                 |
+            {23:^&}                             |
+            {1:~                             }|
+          ## grid 3
+                                          |
+          ]],
+        })
+      else
+        screen:expect([[
+          {6:This is a}{23:&}                    |
+          {6:valid English}{23:&}                |
+          {19:sentence composed by}{23:&}{5:·········}|
+          {6:in his cave.}{23:&}                 |
+          {23:^&}                             |
+          {1:~                             }|
+                                        |
+        ]])
+      end
+    end)
   end
 
   describe('with ext_multigrid', function()