diff --git a/src/editors/automerge/livePreview/wikiLink.test.ts b/src/editors/automerge/livePreview/wikiLink.test.ts
index 1e4ab59..d4a74b3 100644
--- a/src/editors/automerge/livePreview/wikiLink.test.ts
+++ b/src/editors/automerge/livePreview/wikiLink.test.ts
@@ -174,6 +174,34 @@ describe('buildWikiLinkDecorations', () => {
     ]);
   });
 
+  it('leaves the `#` visible, so the name and heading stay separated', () => {
+    // Hiding it along with the brackets rendered `[[Foo#Head]]` as `FooHead`.
+    const state = makeState('x [[Foo#Head]]', 0, vaultOf(['Foo']));
+    const hidden = atomic(state, buildWikiLinkDecorations(state)).map(
+      (d) => d.text,
+    );
+    expect(hidden).toEqual(['[[', ']]']);
+  });
+
+  it('hides the `#` when an alias replaces the whole link part', () => {
+    const state = makeState('x [[Foo#Head|Alias]]', 0, vaultOf(['Foo']));
+    const hidden = atomic(state, buildWikiLinkDecorations(state)).map(
+      (d) => d.text,
+    );
+    expect(hidden).toContain('#');
+    expect(
+      withClass(decos(state, buildWikiLinkDecorations(state)), 'cm-wikilink'),
+    ).toMatchObject([{ text: 'Alias' }]);
+  });
+
+  it('shows `#Heading` for a same-document reference', () => {
+    const state = makeState('x [[#Head]]', 0, vaultOf([]));
+    const r = buildWikiLinkDecorations(state);
+    expect(withClass(decos(state, r), 'cm-wikilink')).toMatchObject([
+      { text: '#Head' },
+    ]);
+  });
+
   it('reveals the raw source when the cursor is inside', () => {
     const doc = 'see [[Foo]] here';
     const state = makeState(doc, doc.indexOf('Foo'), vaultOf(['Foo']));
diff --git a/src/editors/automerge/livePreview/wikiLinkDecoration.ts b/src/editors/automerge/livePreview/wikiLinkDecoration.ts
index 36d9b91..828059d 100644
--- a/src/editors/automerge/livePreview/wikiLinkDecoration.ts
+++ b/src/editors/automerge/livePreview/wikiLinkDecoration.ts
@@ -119,12 +119,18 @@ export function buildWikiLinkDecorations(
           vault.resolve(targetText)?.exists !== true;
         const mark = unresolved ? wikiLinkUnresolvedMark : wikiLinkMark;
 
-        // Display text: the alias when present, else target + `#` + anchor so
-        // `[[Note#Head]]` reads as `Note#Head`.
+        // Display text: the alias when present, otherwise the target, the `#`
+        // and the anchor together, so `[[Note#Head]]` reads as `Note#Head`.
+        // The `#` is deliberately part of it — without a separator the two run
+        // together as `NoteHead`.
+        const hashMark = anchor
+          ? (marks.find((m) => state.doc.sliceString(m.from, m.to) === '#') ??
+            null)
+          : null;
         if (alias) {
           out.push(alias.from, alias.to, mark);
         } else {
-          const start = target?.from ?? anchor?.from ?? null;
+          const start = target?.from ?? hashMark?.from ?? anchor?.from ?? null;
           const end = anchor?.to ?? target?.to ?? null;
           if (start != null && end != null && end > start) {
             out.push(start, end, mark);
@@ -136,6 +142,10 @@ export function buildWikiLinkDecorations(
         }
 
         for (const m of marks) {
+          // Keep the `#` — it is the visible separator between the note name
+          // and the heading. With an alias the whole link part is hidden
+          // anyway, so it goes with the rest.
+          if (!alias && m === hashMark) continue;
           out.push(m.from, m.to, inlineFormattingHiddenMark, true);
         }
         // With an alias, the target it stands in for is hidden too. (The `#`