diff --git a/app/gui/integration-test/project-view/collapsingAndEntering.spec.ts b/app/gui/integration-test/project-view/collapsingAndEntering.spec.ts
index 20ce3cdc97ae..a38ec0f5ff97 100644
--- a/app/gui/integration-test/project-view/collapsingAndEntering.spec.ts
+++ b/app/gui/integration-test/project-view/collapsingAndEntering.spec.ts
@@ -2,7 +2,7 @@ import { test, type Page } from '@playwright/test'
 import * as actions from './actions'
 import { expect } from './customExpect'
 import { mockCollapsedFunctionInfo } from './expressionUpdates'
-import { CONTROL_KEY } from './keyboard'
+import { CONTROL_KEY, DELETE_KEY } from './keyboard'
 import * as locate from './locate'
 import { edgesFromNode, edgesToNode } from './locate'
 import { mockSuggestion } from './suggestionUpdates'
@@ -200,6 +200,37 @@ test('Input node is not collapsed', async ({ page }) => {
   await expect(locate.outputNode(page)).toHaveCount(1)
 })
 
+test('Collapsed call shows argument placeholders', async ({ page }) => {
+  await actions.goToGraph(page)
+  await mockCollapsedFunctionInfo(page, 'final', 'func1', [0])
+  await mockSuggestion(page, {
+    type: 'method',
+    module: 'local.Mock_Project.Main',
+    name: 'func1',
+    arguments: [
+      {
+        name: 'arg1',
+        reprType: 'Standard.Base.Any.Any',
+        isSuspended: false,
+        hasDefault: false,
+        defaultValue: null as any,
+        tagValues: null as any,
+      },
+    ],
+    selfType: 'local.Mock_Project.Main',
+    returnType: 'Standard.Base.Any.Any',
+    isStatic: true,
+    documentation: '',
+    annotations: [],
+  })
+  const collapsedCallComponent = locate.graphNodeByBinding(page, 'final')
+  await locate.graphNodeByBinding(page, 'prod').click()
+  await page.keyboard.press(DELETE_KEY)
+  await expect(await edgesToNode(page, collapsedCallComponent)).toHaveCount(0)
+  await expect(locate.selectedNodes(page)).toHaveCount(0)
+  await expect(collapsedCallComponent.locator('.WidgetArgumentName .name')).toHaveText('arg1')
+})
+
 async function expectInsideMain(page: Page) {
   await actions.expectNodePositionsInitialized(page, -16)
   await expect(locate.graphNode(page)).toHaveCount(MAIN_FILE_NODES)
diff --git a/app/gui/integration-test/project-view/expressionUpdates.ts b/app/gui/integration-test/project-view/expressionUpdates.ts
index 5846ef888f14..733c9896037f 100644
--- a/app/gui/integration-test/project-view/expressionUpdates.ts
+++ b/app/gui/integration-test/project-view/expressionUpdates.ts
@@ -8,6 +8,7 @@ export async function mockCollapsedFunctionInfo(
   page: Page,
   expression: ExpressionLocator,
   functionName: string,
+  notAppliedArguments: number[] = [],
 ) {
   await mockMethodCallInfo(page, expression, {
     methodPointer: {
@@ -15,7 +16,7 @@ export async function mockCollapsedFunctionInfo(
       definedOnType: 'local.Mock_Project.Main',
       name: functionName,
     },
-    notAppliedArguments: [],
+    notAppliedArguments,
   })
 }
 
diff --git a/app/gui/src/project-view/util/callTree.ts b/app/gui/src/project-view/util/callTree.ts
index 087ded4b9163..af374226c358 100644
--- a/app/gui/src/project-view/util/callTree.ts
+++ b/app/gui/src/project-view/util/callTree.ts
@@ -120,9 +120,13 @@ export class ArgumentPlaceholder extends Argument {
     return this.argInfo.defaultValue
   }
 
-  /** TODO: Add docs */
+  /** Whether the argument should be hidden when the component isn't currently focused for editing. */
   override get hideByDefault(): boolean {
-    return !isRequiredArgument(this.argInfo) && this.dynamicConfig?.display !== DisplayMode.Always
+    return (
+      this.argInfo.hasDefault &&
+      !isRequiredArgument(this.argInfo) &&
+      this.dynamicConfig?.display !== DisplayMode.Always
+    )
   }
 }