diff --git a/src/nvim/drawline.c b/src/nvim/drawline.c
index 42188b52fb..a903c148a9 100644
--- a/src/nvim/drawline.c
+++ b/src/nvim/drawline.c
@@ -486,26 +486,37 @@ static void draw_foldcolumn(win_T *wp, winlinevars_T *wlv)
   int fdc = compute_foldcolumn(wp, 0);
   if (fdc > 0) {
     int attr = win_hl_attr(wp, use_cursor_line_highlight(wp, wlv->lnum) ? HLF_CLF : HLF_FC);
-    // Only draw 'foldcolumn' for filler line if lnum is inside a fold that
-    // starts higher up. We don't want to show 'foldopen' or 'foldclose' twice.
-    foldinfo_T fi;
-    if (wlv->filler_todo <= 0 || wlv->foldinfo.fi_lnum < wlv->lnum) {
-      fi = wlv->foldinfo;
-    } else {
-      fi = (foldinfo_T){ 0 };
-    }
-    fill_foldcolumn(wp, fi, wlv->lnum, attr, fdc, &wlv->off, NULL, NULL);
+    bool is_virt = wlv->filler_todo > 0;
+    fill_foldcolumn(wp, wlv->foldinfo, wlv->lnum, attr, fdc, is_virt, &wlv->off, NULL, NULL);
+  }
+}
+
+/// Get foldcolumn char based on line fold level and column, either `foldsep`, `foldinner`,
+/// or an overflow indicator. `foldopen` and `foldclosed` are set in `fill_foldcolumn`.
+/// @param first_level Lowest fold level displayed on line
+/// @param i Column index
+static inline schar_T foldcolumn_sep_char(int first_level, int i, win_T *wp)
+{
+  if (first_level == 1) {
+    return wp->w_p_fcs_chars.foldsep;
+  } else if (wp->w_p_fcs_chars.foldinner != NUL) {
+    return wp->w_p_fcs_chars.foldinner;
+  } else if (first_level + i <= 9) {
+    return schar_from_ascii('0' + first_level + i);
+  } else {
+    return schar_from_ascii('>');
   }
 }
 
 /// Draw the foldcolumn or fill "out_buffer". Assume monocell characters.
 ///
 /// @param fdc  Current width of the foldcolumn
+/// @param is_virt Whether the line is a filler line (diff or virtual)
 /// @param[out] wlv_off  Pointer to linebuf offset, incremented for default column
 /// @param[out] out_buffer  Char array to fill, only used for 'statuscolumn'
 /// @param[out] out_vcol  vcol array to fill, only used for 'statuscolumn'
-void fill_foldcolumn(win_T *wp, foldinfo_T foldinfo, linenr_T lnum, int attr, int fdc, int *wlv_off,
-                     colnr_T *out_vcol, schar_T *out_buffer)
+void fill_foldcolumn(win_T *wp, foldinfo_T foldinfo, linenr_T lnum, int attr, int fdc, bool is_virt,
+                     int *wlv_off, colnr_T *out_vcol, schar_T *out_buffer)
 {
   bool closed = foldinfo.fi_level != 0 && foldinfo.fi_lines > 0;
   int level = foldinfo.fi_level;
@@ -523,14 +534,20 @@ void fill_foldcolumn(win_T *wp, foldinfo_T foldinfo, linenr_T lnum, int attr, in
       symbol = wp->w_p_fcs_chars.foldclosed;
     } else if (foldinfo.fi_lnum == lnum && first_level + i >= foldinfo.fi_low_level) {
       symbol = wp->w_p_fcs_chars.foldopen;
-    } else if (first_level == 1) {
-      symbol = wp->w_p_fcs_chars.foldsep;
-    } else if (wp->w_p_fcs_chars.foldinner != NUL) {
-      symbol = wp->w_p_fcs_chars.foldinner;
-    } else if (first_level + i <= 9) {
-      symbol = schar_from_ascii('0' + first_level + i);
     } else {
-      symbol = schar_from_ascii('>');
+      symbol = foldcolumn_sep_char(first_level, i, wp);
+    }
+
+    // We don't want to show `foldopen` or `foldclose` twice, so we compute
+    // the fold level of `lnum - 1` and reuse the logic from above.
+    if (is_virt && foldinfo.fi_level != 0 && foldinfo.fi_lnum == lnum) {
+      int outer_level = MAX(foldinfo.fi_low_level - 1, 0);
+      int outer_first_level = MAX(outer_level - fdc + 1, 1);
+      if (i >= outer_level) {
+        symbol = schar_from_ascii(' ');
+      } else {
+        symbol = foldcolumn_sep_char(outer_first_level, i, wp);
+      }
     }
 
     int vcol = i >= level ? -1 : (i == closedcol - 1 && closed) ? -2 : -3;
@@ -1354,6 +1371,7 @@ int win_line(win_T *wp, linenr_T lnum, int startrow, int endrow, int col_rows, b
     // Draw the 'statuscolumn' if option is set.
     statuscol.draw = true;
     statuscol.sattrs = wlv.sattrs;
+    statuscol.lnum = lnum;
     statuscol.foldinfo = foldinfo;
     statuscol.width = win_col_off(wp) - (wp == cmdwin_win);
     statuscol.sign_cul_id = use_cursor_line_highlight(wp, lnum) ? wlv.sign_cul_attr : 0;
diff --git a/src/nvim/statusline.c b/src/nvim/statusline.c
index 9e5361927f..1ac013f43b 100644
--- a/src/nvim/statusline.c
+++ b/src/nvim/statusline.c
@@ -19,6 +19,7 @@
 #include "nvim/eval.h"
 #include "nvim/eval/typval_defs.h"
 #include "nvim/eval/vars.h"
+#include "nvim/eval_defs.h"
 #include "nvim/gettext_defs.h"
 #include "nvim/globals.h"
 #include "nvim/grid.h"
@@ -1595,7 +1596,8 @@ stcsign:
 
       if (fdc > 0) {
         schar_T fold_buf[9];
-        fill_foldcolumn(wp, stcp->foldinfo, lnum, 0, fdc, NULL, stcp->fold_vcol, fold_buf);
+        fill_foldcolumn(wp, stcp->foldinfo, stcp->lnum, 0, fdc, get_vim_var_nr(VV_VIRTNUM) < 0,
+                        NULL, stcp->fold_vcol, fold_buf);
         stl_items[curitem].minwid = -(use_cursor_line_highlight(wp, lnum) ? HLF_CLF : HLF_FC);
         size_t buflen = 0;
         // TODO(bfredl): this is very backwards. we must support schar_T
diff --git a/src/nvim/statusline_defs.h b/src/nvim/statusline_defs.h
index ff55845669..c76dbfb3df 100644
--- a/src/nvim/statusline_defs.h
+++ b/src/nvim/statusline_defs.h
@@ -3,6 +3,7 @@
 #include <stdbool.h>
 
 #include "nvim/fold_defs.h"
+#include "nvim/pos_defs.h"
 #include "nvim/sign_defs.h"
 
 /// 'statusline' item flags
@@ -101,6 +102,7 @@ struct stl_item {
 /// Struct to hold info for 'statuscolumn'
 typedef struct {
   int width;                           ///< width of the status column
+  linenr_T lnum;                       ///< buffer line being drawn
   int sign_cul_id;                     ///< cursorline sign highlight id
   bool draw;                           ///< whether to draw the statuscolumn
   stl_hlrec_t *hlrec;                  ///< highlight groups
diff --git a/test/functional/ui/fold_spec.lua b/test/functional/ui/fold_spec.lua
index 3b25f7cb7f..70e005f37f 100644
--- a/test/functional/ui/fold_spec.lua
+++ b/test/functional/ui/fold_spec.lua
@@ -2304,6 +2304,10 @@ describe('folded lines', function()
                                                        |
         ]])
       end
+
+      -- `foldcolumn` in `statuscolumn` should be identical
+      command('set statuscolumn=%C')
+      screen:expect_unchanged()
     end)
 
     it('foldcolumn is not interrupted when virt_lines are inside a fold', function()
@@ -2353,6 +2357,129 @@ describe('folded lines', function()
                                                        |
         ]])
       end
+
+      command('set statuscolumn=%C')
+      screen:expect_unchanged()
+    end)
+
+    it('foldcolumn for a virt_line above a nested fold shows correct fold level', function()
+      fn.setline(1, 'line 1')
+      fn.setline(2, 'line 2')
+      fn.setline(3, 'line 3')
+      fn.setline(4, 'line 4')
+
+      local ns = api.nvim_create_namespace('ns')
+      api.nvim_buf_set_extmark(0, ns, 1, 0, { virt_lines = { { { 'below line 2', '' } } } })
+      api.nvim_buf_set_extmark(
+        0,
+        ns,
+        2,
+        0,
+        { virt_lines_above = true, virt_lines = { { { 'above line 3', '' } } } }
+      )
+
+      command('1,4fold | 1,4foldopen')
+      command('3,4fold | 3,4foldopen ')
+      command('set foldcolumn=1')
+      if multigrid then
+        screen:expect([[
+        ## grid 1
+          [2:---------------------------------------------]|*7
+          [3:---------------------------------------------]|
+        ## grid 2
+          {7:-}^line 1                                      |
+          {7:│}line 2                                      |
+          {7:│}below line 2                                |
+          {7:│}above line 3                                |
+          {7:-}line 3                                      |
+          {7:2}line 4                                      |
+          {1:~                                            }|
+        ## grid 3
+                                                       |
+        ]])
+      else
+        screen:expect([[
+          {7:-}^line 1                                      |
+          {7:│}line 2                                      |
+          {7:│}below line 2                                |
+          {7:│}above line 3                                |
+          {7:-}line 3                                      |
+          {7:2}line 4                                      |
+          {1:~                                            }|
+                                                       |
+        ]])
+      end
+
+      command('set statuscolumn=%C')
+      screen:expect_unchanged()
+      command('set statuscolumn=')
+
+      command('set foldcolumn=2')
+      if multigrid then
+        screen:expect([[
+        ## grid 1
+          [2:---------------------------------------------]|*7
+          [3:---------------------------------------------]|
+        ## grid 2
+          {7:- }^line 1                                     |
+          {7:│ }line 2                                     |
+          {7:│ }below line 2                               |
+          {7:│ }above line 3                               |
+          {7:│-}line 3                                     |
+          {7:││}line 4                                     |
+          {1:~                                            }|
+        ## grid 3
+                                                       |
+        ]])
+      else
+        screen:expect([[
+          {7:- }^line 1                                     |
+          {7:│ }line 2                                     |
+          {7:│ }below line 2                               |
+          {7:│ }above line 3                               |
+          {7:│-}line 3                                     |
+          {7:││}line 4                                     |
+          {1:~                                            }|
+                                                       |
+        ]])
+      end
+
+      command('set statuscolumn=%C')
+      screen:expect_unchanged()
+      command('set statuscolumn=')
+
+      command('2,4fold | 2,4foldopen')
+      if multigrid then
+        screen:expect([[
+        ## grid 1
+          [2:---------------------------------------------]|*7
+          [3:---------------------------------------------]|
+        ## grid 2
+          {7:- }^line 1                                     |
+          {7:│-}line 2                                     |
+          {7:││}below line 2                               |
+          {7:││}above line 3                               |
+          {7:2-}line 3                                     |
+          {7:23}line 4                                     |
+          {1:~                                            }|
+        ## grid 3
+                                                       |
+        ]])
+      else
+        screen:expect([[
+          {7:- }^line 1                                     |
+          {7:│-}line 2                                     |
+          {7:││}below line 2                               |
+          {7:││}above line 3                               |
+          {7:2-}line 3                                     |
+          {7:23}line 4                                     |
+          {1:~                                            }|
+                                                       |
+        ]])
+      end
+
+      command('set statuscolumn=%C')
+      screen:expect_unchanged()
     end)
 
     it('Folded and Visual highlights are combined #19691', function()