diff --git a/src/vs/editor/common/cursor/cursorTypeEditOperations.ts b/src/vs/editor/common/cursor/cursorTypeEditOperations.ts
index d1290a3e651db..f63abde46a772 100644
--- a/src/vs/editor/common/cursor/cursorTypeEditOperations.ts
+++ b/src/vs/editor/common/cursor/cursorTypeEditOperations.ts
@@ -262,6 +262,23 @@ export class AutoClosingOpenCharTypeOperation {
 			if (!pair.shouldAutoClose(scopedLineTokens, beforeColumn - scopedLineTokens.firstCharOffset)) {
 				return null;
 			}
+			// If the cursor is inside an embedded language region (e.g. LaTeX
+			// embedded inside a markdown `$...$` math block), honor the
+			// embedded language's auto-closing pair configuration. Without
+			// this, the outer language's pairs (e.g. markdown's `<>`) would
+			// leak into regions where they are not meaningful.
+			// See https://github.com/microsoft/vscode/issues/272922 and the
+			// parent issue https://github.com/microsoft/vscode/issues/133397.
+			if (scopedLineTokens.languageId !== config.languageId) {
+				const embeddedConfig = config.languageConfigurationService.getLanguageConfiguration(scopedLineTokens.languageId);
+				const embeddedCandidates = embeddedConfig.getAutoClosingPairs().autoClosingPairsOpenByEnd.get(ch);
+				const hasMatchingEmbeddedPair = embeddedCandidates
+					? embeddedCandidates.some(c => c.open === pair.open && c.close === pair.close)
+					: false;
+				if (!hasMatchingEmbeddedPair) {
+					return null;
+				}
+			}
 			// Typing for example a quote could either start a new string, in which case auto-closing is desirable
 			// or it could end a previously started string, in which case auto-closing is not desirable
 			//
diff --git a/src/vs/editor/common/cursorCommon.ts b/src/vs/editor/common/cursorCommon.ts
index 4b03cf57d26fc..782b96456fae3 100644
--- a/src/vs/editor/common/cursorCommon.ts
+++ b/src/vs/editor/common/cursorCommon.ts
@@ -84,6 +84,10 @@ export class CursorConfiguration {
 	private readonly _languageId: string;
 	private _electricChars: { [key: string]: boolean } | null;
 
+	public get languageId(): string {
+		return this._languageId;
+	}
+
 	public static shouldRecreate(e: ConfigurationChangedEvent): boolean {
 		return (
 			e.hasChanged(EditorOption.layoutInfo)