diff --git a/src/nvim/cmdexpand.c b/src/nvim/cmdexpand.c
index acc6baf635..b4c576d2be 100644
--- a/src/nvim/cmdexpand.c
+++ b/src/nvim/cmdexpand.c
@@ -451,6 +451,16 @@ bool cmdline_compl_is_fuzzy(void)
   return xp != NULL && cmdline_fuzzy_completion_supported(xp);
 }
 
+/// Checks whether popup menu should be used for cmdline completion wildmenu.
+///
+/// @param wildmenu  whether wildmenu is needed by current 'wildmode' part
+bool cmdline_compl_use_pum(bool need_wildmenu)
+{
+  return ((need_wildmenu && (wop_flags & kOptWopFlagPum)
+           && !(ui_has(kUICmdline) && cmdline_win == NULL))
+          || ui_has(kUIWildmenu) || (ui_has(kUICmdline) && ui_has(kUIPopupmenu)));
+}
+
 /// Return the number of characters that should be skipped in the wildmenu
 /// These are backslashes used for escaping.  Do show backslashes in help tags
 /// and in search pattern completion matches.
@@ -748,7 +758,7 @@ static char *get_next_or_prev_match(int mode, expand_T *xp)
     if (compl_match_array) {
       compl_selected = findex;
       cmdline_pum_display(false);
-    } else if (wop_flags & kOptWopFlagPum) {
+    } else if (cmdline_compl_use_pum(true)) {
       if (cmdline_pum_create(get_cmdline_info(), xp, xp->xp_files,
                              xp->xp_numfiles, cmd_showtail, false) == EXPAND_OK) {
         compl_selected = findex;
@@ -1122,9 +1132,7 @@ int showmatches(expand_T *xp, bool display_wildmenu, bool display_list, bool nos
     showtail = cmd_showtail;
   }
 
-  if (((!ui_has(kUICmdline) || cmdline_win != NULL) && display_wildmenu && !display_list
-       && (wop_flags & kOptWopFlagPum))
-      || ui_has(kUIWildmenu) || (ui_has(kUICmdline) && ui_has(kUIPopupmenu))) {
+  if (cmdline_compl_use_pum(display_wildmenu && !display_list)) {
     int retval = cmdline_pum_create(ccline, xp, matches, numMatches, showtail, noselect);
     if (retval == EXPAND_OK) {
       compl_selected = noselect ? -1 : 0;
diff --git a/test/functional/ui/cmdline_spec.lua b/test/functional/ui/cmdline_spec.lua
index 69d1af7415..f573e586b6 100644
--- a/test/functional/ui/cmdline_spec.lua
+++ b/test/functional/ui/cmdline_spec.lua
@@ -454,7 +454,7 @@ local function test_cmdline(linegrid)
     }
   end)
 
-  it('works together with ext_popupmenu', function()
+  local function test_ext_cmdline_popupmenu()
     local expected = {
       { 'define', '', '', '' },
       { 'jump', '', '', '' },
@@ -557,19 +557,63 @@ local function test_cmdline(linegrid)
         {1:~                        }|*3
                                  |
       ]],
-      cmdline = {
-        {
-          content = { { 'e wildpum/Xnamedir/XdirA/' } },
-          firstc = ':',
-          pos = 25,
-        },
-      },
+      cmdline = { { content = { { 'e wildpum/Xnamedir/XdirA/' } }, firstc = ':', pos = 25 } },
       popupmenu = {
         anchor = { -1, 0, 19 },
         items = { { 'XdirA/', '', '', '' }, { 'XfileA', '', '', '' } },
         pos = 0,
       },
     }
+
+    feed('<Esc>')
+    command('set wildmode=longest,full')
+    feed(':sign u<tab>')
+    screen:expect {
+      grid = [[
+        ^                         |
+        {1:~                        }|*3
+                                 |
+      ]],
+      cmdline = { { content = { { 'sign un' } }, firstc = ':', pos = 7 } },
+    }
+
+    feed('<tab>')
+    local s_undefine_unplace_0 = {
+      grid = [[
+        ^                         |
+        {1:~                        }|*3
+                                 |
+      ]],
+      cmdline = { { content = { { 'sign undefine' } }, firstc = ':', pos = 13 } },
+      popupmenu = {
+        anchor = { -1, 0, 5 },
+        items = { { 'undefine', '', '', '' }, { 'unplace', '', '', '' } },
+        pos = 0,
+      },
+    }
+    screen:expect(s_undefine_unplace_0)
+
+    feed('<Esc>')
+    screen:expect([[
+      ^                         |
+      {1:~                        }|*3
+                               |
+    ]])
+
+    feed(':sign un<tab>')
+    screen:expect(s_undefine_unplace_0)
+  end
+
+  describe('works together with ext_popupmenu', function()
+    it('with wildoptions=pum', function()
+      command('set wildoptions=pum')
+      test_ext_cmdline_popupmenu()
+    end)
+
+    it('with wildoptions=', function()
+      command('set wildoptions=')
+      test_ext_cmdline_popupmenu()
+    end)
   end)
 
   it('ext_wildmenu takes precedence over ext_popupmenu', function()
diff --git a/test/functional/ui/wildmode_spec.lua b/test/functional/ui/wildmode_spec.lua
index 94710bfb74..a028bf0fce 100644
--- a/test/functional/ui/wildmode_spec.lua
+++ b/test/functional/ui/wildmode_spec.lua
@@ -593,7 +593,7 @@ describe('ui/ext_wildmenu', function()
     screen = Screen.new(25, 5, { rgb = true, ext_wildmenu = true })
   end)
 
-  it('works with :sign <tab>', function()
+  local function test_ext_wildmenu_sign_cmd()
     local expected = {
       'define',
       'jump',
@@ -650,12 +650,53 @@ describe('ui/ext_wildmenu', function()
     }
 
     feed('a')
-    screen:expect {
-      grid = [[
+    screen:expect([[
                                |
       {1:~                        }|*3
       :sign definea^            |
+    ]])
+
+    feed('<Esc>')
+    command('set wildmode=longest,full')
+    feed(':sign u<tab>')
+    screen:expect([[
+                               |
+      {1:~                        }|*3
+      :sign un^                 |
+    ]])
+
+    feed('<tab>')
+    local s_undefine_unplace_0 = {
+      grid = [[
+                               |
+      {1:~                        }|*3
+      :sign undefine^           |
     ]],
+      wildmenu_items = { 'undefine', 'unplace' },
+      wildmenu_pos = 0,
     }
+    screen:expect(s_undefine_unplace_0)
+
+    feed('<Esc>')
+    screen:expect([[
+      ^                         |
+      {1:~                        }|*3
+                               |
+    ]])
+
+    feed(':sign un<tab>')
+    screen:expect(s_undefine_unplace_0)
+  end
+
+  describe('works with :sign <tab>', function()
+    it('with wildoptions=pum', function()
+      command('set wildoptions=pum')
+      test_ext_wildmenu_sign_cmd()
+    end)
+
+    it('with wildoptions=', function()
+      command('set wildoptions=')
+      test_ext_wildmenu_sign_cmd()
+    end)
   end)
 end)