diff --git a/src/vs/workbench/browser/labels.ts b/src/vs/workbench/browser/labels.ts
index 9db4979a3aaa82ae36c74588135340de0c703671..7216a12b82f5b7aefe00620509d5b94321af8a58 100644
--- a/src/vs/workbench/browser/labels.ts
+++ b/src/vs/workbench/browser/labels.ts
@@ -317,40 +317,31 @@ class ResourceLabelWidget extends IconLabel {
 	}
 
 	notifyFormattersChange(): void {
-		if (this.label && this.label.resource) {
-			this.setFile(this.label.resource, this.options);
-		}
 		this.render(false);
 	}
 
 	setResource(label: IResourceLabelProps, options?: IResourceLabelOptions): void {
-		const hasResourceChanged = this.hasResourceChanged(label, options);
-
 		this.label = label;
 		this.options = options;
 
-		if (hasResourceChanged) {
+		if (this.hasPathLabelChanged(label, options)) {
 			this.computedPathLabel = undefined; // reset path label due to resource change
 		}
 
-		this.render(hasResourceChanged);
+		this.render(this.clearIconCache(label, options));
 	}
 
-	private hasResourceChanged(label: IResourceLabelProps, options?: IResourceLabelOptions): boolean {
-		const newResource = label ? label.resource : undefined;
+	private clearIconCache(newLabel: IResourceLabelProps, newOptions?: IResourceLabelOptions): boolean {
+		const newResource = newLabel ? newLabel.resource : undefined;
 		const oldResource = this.label ? this.label.resource : undefined;
 
-		const newFileKind = options ? options.fileKind : undefined;
+		const newFileKind = newOptions ? newOptions.fileKind : undefined;
 		const oldFileKind = this.options ? this.options.fileKind : undefined;
 
 		if (newFileKind !== oldFileKind) {
 			return true; // same resource but different kind (file, folder)
 		}
 
-		if (newResource && this.computedPathLabel !== this.labelService.getUriLabel(newResource)) {
-			return true;
-		}
-
 		if (newResource && oldResource) {
 			return newResource.toString() !== oldResource.toString();
 		}
@@ -362,6 +353,12 @@ class ResourceLabelWidget extends IconLabel {
 		return true;
 	}
 
+	private hasPathLabelChanged(newLabel: IResourceLabelProps, newOptions?: IResourceLabelOptions): boolean {
+		const newResource = newLabel ? newLabel.resource : undefined;
+
+		return !!newResource && this.computedPathLabel !== this.labelService.getUriLabel(newResource);
+	}
+
 	setEditor(editor: IEditorInput, options?: IResourceLabelOptions): void {
 		this.setResource({
 			resource: toResource(editor, { supportSideBySide: SideBySideEditor.MASTER }),