diff --git a/crates/tools/src/text.rs b/crates/tools/src/text.rs
index db0e6e3f3..ca84e0d23 100644
--- a/crates/tools/src/text.rs
+++ b/crates/tools/src/text.rs
@@ -826,7 +826,11 @@ impl Tool for TypeTool {
     fn overlays(&self, cx: &ToolContext) -> Vec<Overlay> {
         let mut o = self.snap.guides().to_vec();
         if let (Some((_, s)), Some(d)) = (self.press, self.drag) {
-            o.push(Overlay::Marquee(Rect::from_points(s, d)));
+            let r = Rect::from_points(s, d);
+            o.push(Overlay::Marquee(r));
+            if cx.measurement_labels {
+                o.push(Overlay::Measure { p: d, text: cx.size_label(r.width(), r.height()) });
+            }
         }
         // Overflow markers on selected text.
         for id in &cx.selection.objects {
diff --git a/crates/tools/src/text_tests.rs b/crates/tools/src/text_tests.rs
index 2ca919654..7554851cd 100644
--- a/crates/tools/src/text_tests.rs
+++ b/crates/tools/src/text_tests.rs
@@ -559,6 +559,20 @@ fn new_type_snaps_to_smart_guides() {
     assert!(acts.iter().any(|a| matches!(a, Action::Exec(cmd, v) if cmd == "text.create" && v["x"] == 100.0 && v["area"] == area)), "{acts:?}");
 }
 
+#[test]
+fn area_type_drag_measure_labels_honor_preference() {
+    let (d, _) = crate::testutil::doc_with_rect();
+    let (sel, p) = (Selection::default(), paint());
+    let on = ToolContext { measurement_labels: true, ..cx(&d, &sel, &p) };
+    let off = ToolContext { measurement_labels: false, ..cx(&d, &sel, &p) };
+    let mut tool = TypeTool::new("type");
+    tool.pointer(&on, &PointerEvent::new(PointerKind::Down, 100.0, 100.0));
+    tool.pointer(&on, &PointerEvent::new(PointerKind::Drag, 200.0, 150.0));
+    let want = on.size_label(100.0, 50.0);
+    assert!(tool.overlays(&on).iter().any(|o| matches!(o, Overlay::Measure { text, .. } if text == &want)));
+    assert!(!tool.overlays(&off).iter().any(|o| matches!(o, Overlay::Measure { .. })));
+}
+
 #[test]
 fn layout_cache_follows_fonts_added_later() {
     // Other tests can load system fonts; this assertion needs its own process-wide database.