diff --git a/src/PowerShellEditorServices/Services/TextDocument/Handlers/DocumentSymbolHandler.cs b/src/PowerShellEditorServices/Services/TextDocument/Handlers/DocumentSymbolHandler.cs
index 868d3af76..1be623782 100644
--- a/src/PowerShellEditorServices/Services/TextDocument/Handlers/DocumentSymbolHandler.cs
+++ b/src/PowerShellEditorServices/Services/TextDocument/Handlers/DocumentSymbolHandler.cs
@@ -21,12 +21,17 @@ internal class PsesDocumentSymbolHandler : DocumentSymbolHandlerBase
         private static readonly SymbolInformationOrDocumentSymbolContainer s_emptySymbolInformationOrDocumentSymbolContainer = new();
         private readonly ILogger _logger;
         private readonly WorkspaceService _workspaceService;
+        private readonly ConfigurationService _configurationService;
         private readonly IDocumentSymbolProvider[] _providers;
 
-        public PsesDocumentSymbolHandler(ILoggerFactory factory, WorkspaceService workspaceService)
+        public PsesDocumentSymbolHandler(
+            ILoggerFactory factory,
+            WorkspaceService workspaceService,
+            ConfigurationService configurationService)
         {
             _logger = factory.CreateLogger<PsesDocumentSymbolHandler>();
             _workspaceService = workspaceService;
+            _configurationService = configurationService;
             _providers = new IDocumentSymbolProvider[]
             {
                 new ScriptDocumentSymbolProvider(),
@@ -166,7 +171,13 @@ public override async Task<SymbolInformationOrDocumentSymbolContainer> Handle(Do
                 //
                 // TODO: We should also include function invocations that are part of DSLs (like
                 // Invoke-Build etc.).
-                if (!symbolReference.IsDeclaration || symbolReference.Type is SymbolType.Parameter)
+                if (!symbolReference.IsDeclaration)
+                {
+                    continue;
+                }
+
+                if (symbolReference.Type is SymbolType.Parameter &&
+                    !_configurationService.CurrentSettings.EnableParameterOutline)
                 {
                     continue;
                 }
diff --git a/src/PowerShellEditorServices/Services/Workspace/LanguageServerSettings.cs b/src/PowerShellEditorServices/Services/Workspace/LanguageServerSettings.cs
index d310903ae..377f415cb 100644
--- a/src/PowerShellEditorServices/Services/Workspace/LanguageServerSettings.cs
+++ b/src/PowerShellEditorServices/Services/Workspace/LanguageServerSettings.cs
@@ -24,7 +24,7 @@ internal class LanguageServerSettings
         public string Cwd { get; set; }
         public bool EnableReferencesCodeLens { get; set; } = true;
         public bool AnalyzeOpenDocumentsOnly { get; set; }
-
+        public bool EnableParameterOutline { get; set; }
         public LanguageServerSettings()
         {
             ScriptAnalysis = new ScriptAnalysisSettings();
@@ -50,6 +50,7 @@ public void Update(
                     Cwd = settings.Cwd;
                     EnableReferencesCodeLens = settings.EnableReferencesCodeLens;
                     AnalyzeOpenDocumentsOnly = settings.AnalyzeOpenDocumentsOnly;
+                    EnableParameterOutline = settings.EnableParameterOutline;
                 }
             }
         }
diff --git a/test/PowerShellEditorServices.Test.Shared/Symbols/DocumentSymbolParameters.ps1 b/test/PowerShellEditorServices.Test.Shared/Symbols/DocumentSymbolParameters.ps1
new file mode 100644
index 000000000..496d4a677
--- /dev/null
+++ b/test/PowerShellEditorServices.Test.Shared/Symbols/DocumentSymbolParameters.ps1
@@ -0,0 +1,6 @@
+function New-MyFunc {
+    param(
+        [string]$MyString,
+        $MyLooselyTypedParam
+    )
+}
diff --git a/test/PowerShellEditorServices.Test/Language/DocumentSymbolHandlerTests.cs b/test/PowerShellEditorServices.Test/Language/DocumentSymbolHandlerTests.cs
new file mode 100644
index 000000000..b790b9c68
--- /dev/null
+++ b/test/PowerShellEditorServices.Test/Language/DocumentSymbolHandlerTests.cs
@@ -0,0 +1,94 @@
+// Copyright (c) Microsoft Corporation.
+// Licensed under the MIT License.
+
+using System.Linq;
+using System.Threading;
+using System.Threading.Tasks;
+using Microsoft.Extensions.Logging.Abstractions;
+using Microsoft.PowerShell.EditorServices.Handlers;
+using Microsoft.PowerShell.EditorServices.Services;
+using Microsoft.PowerShell.EditorServices.Test.Shared;
+using OmniSharp.Extensions.LanguageServer.Protocol;
+using OmniSharp.Extensions.LanguageServer.Protocol.Models;
+using Xunit;
+
+namespace PowerShellEditorServices.Test.Language
+{
+    [Trait("Category", "Symbols")]
+    public class DocumentSymbolHandlerTests
+    {
+        private readonly WorkspaceService workspace;
+        private readonly ConfigurationService configuration;
+        private readonly PsesDocumentSymbolHandler documentSymbolHandler;
+
+        public DocumentSymbolHandlerTests()
+        {
+            workspace = new WorkspaceService(NullLoggerFactory.Instance);
+            configuration = new ConfigurationService();
+            documentSymbolHandler = new PsesDocumentSymbolHandler(
+                NullLoggerFactory.Instance,
+                workspace,
+                configuration);
+        }
+
+        [Fact]
+        public async Task ExcludesParametersWhenParameterOutlineIsDisabled()
+        {
+            configuration.CurrentSettings.EnableParameterOutline = false;
+
+            string filePath = TestUtilities.GetSharedPath(
+                "Symbols/DocumentSymbolParameters.ps1");
+
+            SymbolInformationOrDocumentSymbolContainer result =
+                await documentSymbolHandler.Handle(
+                    new DocumentSymbolParams
+                    {
+                        TextDocument = new TextDocumentIdentifier(
+                            DocumentUri.FromFileSystemPath(filePath))
+                    },
+                    CancellationToken.None);
+
+            DocumentSymbol function = result
+                .Select(symbol => symbol.DocumentSymbol)
+                .Single(symbol => symbol.Name.Contains("New-MyFunc"));
+
+            Assert.DoesNotContain(
+                function.Children,
+                symbol => symbol.Name.Contains("$MyString"));
+
+            Assert.DoesNotContain(
+                function.Children,
+                symbol => symbol.Name.Contains("$MyLooselyTypedParam"));
+        }
+
+        [Fact]
+        public async Task IncludesParametersWhenParameterOutlineIsEnabled()
+        {
+            configuration.CurrentSettings.EnableParameterOutline = true;
+
+            string filePath = TestUtilities.GetSharedPath(
+                "Symbols/DocumentSymbolParameters.ps1");
+
+            SymbolInformationOrDocumentSymbolContainer result =
+                await documentSymbolHandler.Handle(
+                    new DocumentSymbolParams
+                    {
+                        TextDocument = new TextDocumentIdentifier(
+                            DocumentUri.FromFileSystemPath(filePath))
+                    },
+                    CancellationToken.None);
+
+            DocumentSymbol function = result
+                .Select(symbol => symbol.DocumentSymbol)
+                .Single(symbol => symbol.Name.Contains("New-MyFunc"));
+
+            Assert.Contains(
+                function.Children,
+                symbol => symbol.Name.Contains("$MyString"));
+
+            Assert.Contains(
+                function.Children,
+                symbol => symbol.Name.Contains("$MyLooselyTypedParam"));
+        }
+    }
+}
\ No newline at end of file