diff --git a/src/vs/workbench/browser/layout.ts b/src/vs/workbench/browser/layout.ts
index 3c9343f4166..2e997f59f0b 100644
--- a/src/vs/workbench/browser/layout.ts
+++ b/src/vs/workbench/browser/layout.ts
@@ -9,8 +9,7 @@ import { EventType, addDisposableListener, getClientArea, Dimension, position, s
 import { onDidChangeFullscreen, isFullscreen } from 'vs/base/browser/browser';
 import { IWorkingCopyBackupService } from 'vs/workbench/services/workingCopy/common/workingCopyBackup';
 import { isWindows, isLinux, isMacintosh, isWeb, isNative, isIOS } from 'vs/base/common/platform';
-import { isResourceEditorInput, IUntypedEditorInput, pathsToEditors } from 'vs/workbench/common/editor';
-import { SideBySideEditorInput } from 'vs/workbench/common/editor/sideBySideEditorInput';
+import { EditorInputCapabilities, isResourceEditorInput, IUntypedEditorInput, pathsToEditors } from 'vs/workbench/common/editor';
 import { SidebarPart } from 'vs/workbench/browser/parts/sidebar/sidebarPart';
 import { PanelPart } from 'vs/workbench/browser/parts/panel/panelPart';
 import { Position, Parts, PanelOpensMaximizedOptions, IWorkbenchLayoutService, positionFromString, positionToString, panelOpensMaximizedFromString, PanelAlignment } from 'vs/workbench/services/layout/browser/layoutService';
@@ -1309,27 +1308,25 @@ export abstract class Layout extends Disposable implements IWorkbenchLayoutServi
 	centerEditorLayout(active: boolean, skipLayout?: boolean): void {
 		this.stateModel.setRuntimeValue(LayoutStateKeys.EDITOR_CENTERED, active);
 
-		let smartActive = active;
 		const activeEditor = this.editorService.activeEditor;
 
-		let isEditorSplit = false;
+		let isEditorComplex = false;
 		if (activeEditor instanceof DiffEditorInput) {
-			isEditorSplit = this.configurationService.getValue('diffEditor.renderSideBySide');
-		} else if (activeEditor instanceof SideBySideEditorInput) {
-			isEditorSplit = true;
+			isEditorComplex = this.configurationService.getValue('diffEditor.renderSideBySide');
+		} else if (activeEditor?.hasCapability(EditorInputCapabilities.MultipleEditors)) {
+			isEditorComplex = true;
 		}
 
 		const isCenteredLayoutAutoResizing = this.configurationService.getValue('workbench.editor.centeredLayoutAutoResize');
 		if (
 			isCenteredLayoutAutoResizing &&
-			(this.editorGroupService.groups.length > 1 || isEditorSplit)
+			(this.editorGroupService.groups.length > 1 || isEditorComplex)
 		) {
-			smartActive = false;
+			active = false; // disable centered layout for complex editors or when there is more than one group
 		}
 
-		// Enter Centered Editor Layout
-		if (this.editorGroupService.isLayoutCentered() !== smartActive) {
-			this.editorGroupService.centerLayout(smartActive);
+		if (this.editorGroupService.isLayoutCentered() !== active) {
+			this.editorGroupService.centerLayout(active);
 
 			if (!skipLayout) {
 				this.layout();
diff --git a/src/vs/workbench/common/editor.ts b/src/vs/workbench/common/editor.ts
index 8928ff0036f..6f6ab509248 100644
--- a/src/vs/workbench/common/editor.ts
+++ b/src/vs/workbench/common/editor.ts
@@ -733,6 +733,12 @@ export const enum EditorInputCapabilities {
 	 * editor by holding shift.
 	 */
 	CanDropIntoEditor = 1 << 7,
+
+	/**
+	 * Signals that the editor is composed of multiple editors
+	 * within.
+	 */
+	MultipleEditors = 1 << 8
 }
 
 export type IUntypedEditorInput = IResourceEditorInput | ITextResourceEditorInput | IUntitledTextResourceEditorInput | IResourceDiffEditorInput | IResourceSideBySideEditorInput | IResourceMergeEditorInput;
diff --git a/src/vs/workbench/common/editor/sideBySideEditorInput.ts b/src/vs/workbench/common/editor/sideBySideEditorInput.ts
index 4151bf90118..d36c91348a4 100644
--- a/src/vs/workbench/common/editor/sideBySideEditorInput.ts
+++ b/src/vs/workbench/common/editor/sideBySideEditorInput.ts
@@ -42,6 +42,9 @@ export class SideBySideEditorInput extends EditorInput implements ISideBySideEdi
 			capabilities |= EditorInputCapabilities.Singleton;
 		}
 
+		// Indicate we show more than one editor
+		capabilities |= EditorInputCapabilities.MultipleEditors;
+
 		return capabilities;
 	}
 
diff --git a/src/vs/workbench/contrib/mergeEditor/browser/mergeEditorInput.ts b/src/vs/workbench/contrib/mergeEditor/browser/mergeEditorInput.ts
index 7f5a2febdb7..9a4286f26b6 100644
--- a/src/vs/workbench/contrib/mergeEditor/browser/mergeEditorInput.ts
+++ b/src/vs/workbench/contrib/mergeEditor/browser/mergeEditorInput.ts
@@ -13,7 +13,7 @@ import { ConfirmResult, IDialogService } from 'vs/platform/dialogs/common/dialog
 import { IFileService } from 'vs/platform/files/common/files';
 import { IInstantiationService } from 'vs/platform/instantiation/common/instantiation';
 import { ILabelService } from 'vs/platform/label/common/label';
-import { IEditorIdentifier, IResourceMergeEditorInput, isResourceMergeEditorInput, IUntypedEditorInput } from 'vs/workbench/common/editor';
+import { EditorInputCapabilities, IEditorIdentifier, IResourceMergeEditorInput, isResourceMergeEditorInput, IUntypedEditorInput } from 'vs/workbench/common/editor';
 import { EditorInput, IEditorCloseHandler } from 'vs/workbench/common/editor/editorInput';
 import { AbstractTextResourceEditorInput } from 'vs/workbench/common/editor/textResourceEditorInput';
 import { EditorWorkerServiceDiffComputer } from 'vs/workbench/contrib/mergeEditor/browser/model/diffComputer';
@@ -84,6 +84,10 @@ export class MergeEditorInput extends AbstractTextResourceEditorInput implements
 		return MergeEditorInput.ID;
 	}
 
+	override get capabilities(): EditorInputCapabilities {
+		return super.capabilities | EditorInputCapabilities.MultipleEditors;
+	}
+
 	override getName(): string {
 		return localize('name', "Merging: {0}", super.getName());
 	}
diff --git a/src/vs/workbench/test/browser/parts/editor/editor.test.ts b/src/vs/workbench/test/browser/parts/editor/editor.test.ts
index 453705ac39f..df4f76fb26e 100644
--- a/src/vs/workbench/test/browser/parts/editor/editor.test.ts
+++ b/src/vs/workbench/test/browser/parts/editor/editor.test.ts
@@ -120,7 +120,7 @@ suite('Workbench editor utils', () => {
 		testInput2.capabilities = EditorInputCapabilities.None;
 
 		const sideBySideInput = instantiationService.createInstance(SideBySideEditorInput, 'name', undefined, testInput1, testInput2);
-		assert.strictEqual(sideBySideInput.hasCapability(EditorInputCapabilities.None), true);
+		assert.strictEqual(sideBySideInput.hasCapability(EditorInputCapabilities.MultipleEditors), true);
 		assert.strictEqual(sideBySideInput.hasCapability(EditorInputCapabilities.Readonly), false);
 		assert.strictEqual(sideBySideInput.hasCapability(EditorInputCapabilities.Untitled), false);
 		assert.strictEqual(sideBySideInput.hasCapability(EditorInputCapabilities.RequiresTrust), false);