diff --git a/src/resources/rmd/execute.R b/src/resources/rmd/execute.R
index 42c2f479469..98ccc440cd0 100644
--- a/src/resources/rmd/execute.R
+++ b/src/resources/rmd/execute.R
@@ -142,36 +142,51 @@ execute <- function(input, format, tempDir, libDir, dependencies, cwd, params, r
     df_print = df_print
   )
 
-  # we need ojs only if markdown has ojs code cells
-  # inspect code cells for spaces after line breaks
-
-  needs_ojs <- grepl("(\n|^)[[:space:]]*```+\\{ojs[^}]*\\}", markdown)
-  # FIXME this test isn't failing in shiny mode, but it doesn't look to be
-  # breaking quarto-shiny-ojs. We should make sure this is right.
-  if (
-    !is_shiny_prerendered(knitr::opts_knit$get("rmarkdown.runtime")) &&
-      needs_ojs
-  ) {
-    local({
-      # create a hidden environment to store specific objects
-      .quarto_tools_env <- attach(NULL, name = "tools:quarto")
-      # source ojs_define() function and save it in the tools environment
-      source(file.path(resourceDir, "rmd", "ojs_static.R"), local = TRUE)
-      assign("ojs_define", ojs_define, envir = .quarto_tools_env)
-    })
+  # create a hidden environment to store specific objects
+  # Beware to use non conflicted name as this will be in second position right after globalenv.
+  .quarto_tools_env <- attach(NULL, name = "tools:quarto")
+  .quarto_tools_env$.assignToQuartoToolsEnv <- function(name, value) {
+    assign(name, value, envir = .quarto_tools_env)
+  }
+  .quarto_tools_env$.getFromQuartoToolsEnv <- function(name) {
+    get0(name, envir = .quarto_tools_env)
+  }
+  .quarto_tools_env$.rmFromQuartoToolsEnv <- function(name) {
+    if (exists(name, envir = .quarto_tools_env)) {
+      rm(list = c(name), envir = .quarto_tools_env)
+    }
   }
 
-  env <- globalenv()
-  env$.QuartoInlineRender <- function(v) {
+  # special internal function for rendering inline code using Quarto syntax
+  .assignToQuartoToolsEnv(".QuartoInlineRender",  function(v) { # nolint: object_usage_linter, line_length_linter.
     if (is.null(v)) {
       "NULL"
     } else if (inherits(v, "AsIs")) {
       v
     } else if (is.character(v)) {
-      gsub(pattern="(\\[|\\]|[`*_{}()>#+-.!])", x=v, replacement="\\\\\\1")
+      gsub(
+        pattern = "(\\[|\\]|[`*_{}()>#+-.!])",
+        x = v, replacement = "\\\\\\1"
+      )
     } else {
       v
     }
+  })
+
+  # we need ojs only if markdown has ojs code cells
+  # inspect code cells for spaces after line breaks
+  needs_ojs <- grepl("(\n|^)[[:space:]]*```+\\{ojs[^}]*\\}", markdown)
+  # FIXME this test isn't failing in shiny mode, but it doesn't look to be
+  # breaking quarto-shiny-ojs. We should make sure this is right.
+  if (
+    !is_shiny_prerendered(knitr::opts_knit$get("rmarkdown.runtime")) &&
+      needs_ojs
+  ) {
+    # source ojs_define() function into the tools environment
+    source(
+      file = file.path(resourceDir, "rmd", "ojs_static.R"),
+      local = .quarto_tools_env
+    )
   }
 
   render_output <- rmarkdown::render(
@@ -180,7 +195,7 @@ execute <- function(input, format, tempDir, libDir, dependencies, cwd, params, r
     knit_root_dir = knit_root_dir,
     params = params,
     run_pandoc = FALSE,
-    envir = env
+    envir = globalenv()
   )
   knit_meta <-  attr(render_output, "knit_meta")
   files_dir <- attr(render_output, "files_dir")
diff --git a/src/resources/rmd/hooks.R b/src/resources/rmd/hooks.R
index 530cbd11b35..a1f5afd53c1 100644
--- a/src/resources/rmd/hooks.R
+++ b/src/resources/rmd/hooks.R
@@ -165,6 +165,16 @@ knitr_hooks <- function(format, resourceDir, handledLanguages) {
   }
   delegating_output_hook = function(type, classes) {
     delegating_hook(type, function(x, options) {
+      ### START Knitr hack:
+      # since knitr 1.49, we can detect if output: asis
+      # was set by an R function itself (not cell option)
+      # We save the information for our other processing 
+      # after output hook (i.e after sew method is called)
+      if (identical(options[["results"]], "asis")) {
+        .assignToQuartoToolsEnv("cell_options", list(asis_output = TRUE)) # nolint: object_usage_linter, line_length_linter.
+      }
+      ### END
+
       if (identical(options[["results"]], "asis") ||
           isTRUE(options[["collapse"]])) {
         x
@@ -182,6 +192,16 @@ knitr_hooks <- function(format, resourceDir, handledLanguages) {
   # entire chunk
   knit_hooks$chunk <- delegating_hook("chunk", function(x, options) {
 
+    ## START knitr hack:
+    ## catch knit_asis output from save output hook state 
+    asis_output <- .getFromQuartoToolsEnv("cell_options")$asis_output # nolint: object_usage_linter, line_length_linter.
+    if (isTRUE(asis_output)) {
+      options[["results"]] <- "asis"
+    }
+    # chunk hook is called last and we can clean the cell storage
+    on.exit(.rmFromQuartoToolsEnv("cell_options"), add = TRUE) # nolint: object_usage_linter, line_length_linter.
+    ## END
+
     # Do nothing more for some specific chunk content -----
 
     # Quarto language handler
@@ -400,7 +420,7 @@ knitr_hooks <- function(format, resourceDir, handledLanguages) {
     # if there is a label, additional classes, a forwardAttr, or a cell.cap 
     # then the user is deemed to have implicitly overridden results = "asis"
     # (as those features don't work w/o an enclosing div)
-    needCell <- isTRUE(nzchar(label)) || 
+    needCell <- isTRUE(nzchar(label)) ||
                 length(classes) > 1 ||
                 isTRUE(nzchar(forwardAttr)) ||
                 isTRUE(nzchar(cell.cap))
@@ -409,7 +429,8 @@ knitr_hooks <- function(format, resourceDir, handledLanguages) {
     } else {
       paste0(
         options[["indent"]], "::: {", 
-        labelId(label), paste(classes, collapse = " ") ,forwardAttr, "}\n", x, "\n", cell.cap ,
+        labelId(label), paste(classes, collapse = " "),
+        forwardAttr, "}\n", x, "\n", cell.cap,
         options[["indent"]], ":::"
       )
     }
diff --git a/src/resources/rmd/patch.R b/src/resources/rmd/patch.R
index addf5c8af06..fdcd714e848 100644
--- a/src/resources/rmd/patch.R
+++ b/src/resources/rmd/patch.R
@@ -103,7 +103,7 @@ wrap_asis_output <- function(options, x) {
   if (identical(options[["html-table-processing"]], "none")) {
     attrs <- paste(attrs, "html-table-processing=none")
   }
-  
+
   # if this is an html table then wrap it further in ```{=html}
   # (necessary b/c we no longer do this by overriding kable_html,
   # which is in turn necessary to allow kableExtra to parse
@@ -112,9 +112,17 @@ wrap_asis_output <- function(options, x) {
       !grepl('^<div class="kable-table">', x)) {
     x <- paste0("`````{=html}\n", x, "\n`````")
   }
-  
-  # If asis output, don't include the output div
-  if (identical(options[["results"]], "asis")) return(x)
+
+  # If asis output, don't include the output div,
+  # unless a feature requiring it is used
+  # if there additional classes, some added attr,
+  # then the user is deemed to have implicitly overridden results = "asis"
+  # (as those features don't work w/o an enclosing div)
+  needCell <- length(classes) > 1 || isTRUE(nzchar(attrs)) # nolint: object_name_linter, line_length_linter.
+
+  if (identical(options[["results"]], "asis") && !needCell) {
+    return(x)
+  }
 
   output_div(x, output_label_placeholder(options), classes, attrs)
 }
@@ -152,6 +160,13 @@ if (utils::packageVersion("knitr") >= "1.32.8") {
       } else {
         knitr:::sew.knit_asis(x, options, ...)
       }
+      ## START knitr hack: 
+      ## catch knit_asis output from save output hook state
+      asis_output <- .getFromQuartoToolsEnv("cell_options")$asis_output # nolint: object_usage_linter, line_length_linter
+      if (isTRUE(asis_output)) {
+        options[["results"]] <- "asis"
+      }
+      ## END
 
       # if it's an html widget then it was already wrapped
       # by add_html_caption
diff --git a/tests/docs/smoke-all/inline-execution/inline-jupyter.md.snapshot b/tests/docs/smoke-all/inline-execution/inline-jupyter.md.snapshot
new file mode 100644
index 00000000000..e123435acd2
--- /dev/null
+++ b/tests/docs/smoke-all/inline-execution/inline-jupyter.md.snapshot
@@ -0,0 +1,38 @@
+---
+_quarto: {}
+title: inline jupyter expressions
+toc-title: Table of contents
+---
+
+::: {.cell execution_count="1"}
+``` {.python .cell-code}
+from IPython.display import Markdown
+x = 1
+y = "foo"
+z = '"foo"'
+a = '"foo'
+b = '*foo*'
+c = "*foo*"
+d = "'foo"
+e = "1"
+f = False
+g = True
+h = None
+i = Markdown("*foo*")
+```
+:::
+
+Here's inline output:
+
+-   1
+-   foo
+-   "foo"
+-   "foo
+-   \*foo\*
+-   \*foo\*
+-   'foo
+-   1
+-   False
+-   True
+-   None
+-   *foo*
diff --git a/tests/docs/smoke-all/inline-execution/inline-jupyter.qmd b/tests/docs/smoke-all/inline-execution/inline-jupyter.qmd
index 3872ba5d0cc..2df26e8f07b 100644
--- a/tests/docs/smoke-all/inline-execution/inline-jupyter.qmd
+++ b/tests/docs/smoke-all/inline-execution/inline-jupyter.qmd
@@ -1,6 +1,11 @@
 ---
 title: "inline jupyter expressions"
+format: markdown
 engine: jupyter
+_quarto:
+  tests:
+    markdown:
+      ensureSnapshotMatches: true
 ---
 
 ```{python}
diff --git a/tests/docs/smoke-all/inline-execution/inline-knitr.md.snapshot b/tests/docs/smoke-all/inline-execution/inline-knitr.md.snapshot
new file mode 100644
index 00000000000..06b4ce9751f
--- /dev/null
+++ b/tests/docs/smoke-all/inline-execution/inline-knitr.md.snapshot
@@ -0,0 +1,38 @@
+---
+_quarto: {}
+title: inline knitr expressions
+toc-title: Table of contents
+---
+
+::: cell
+``` {.r .cell-code}
+x = 1
+y = "foo"
+z = '"foo"'
+a = '"foo'
+b = '*foo*'
+c = "*foo*"
+d = "'foo"
+e = "1"
+f = FALSE
+g = TRUE
+h = NULL
+i = "*foo*"
+class(i) <- c("character", "asis")
+```
+:::
+
+Here's inline output:
+
+-   1
+-   foo
+-   "foo"
+-   "foo
+-   \*foo\*
+-   \*foo\*
+-   'foo
+-   1
+-   FALSE
+-   TRUE
+-   NULL
+-   \*foo\*
diff --git a/tests/docs/smoke-all/inline-execution/inline-knitr.qmd b/tests/docs/smoke-all/inline-execution/inline-knitr.qmd
index 62804b069ce..06b4ce9751f 100644
--- a/tests/docs/smoke-all/inline-execution/inline-knitr.qmd
+++ b/tests/docs/smoke-all/inline-execution/inline-knitr.qmd
@@ -1,9 +1,11 @@
 ---
-title: "inline knitr expressions"
-engine: knitr
+_quarto: {}
+title: inline knitr expressions
+toc-title: Table of contents
 ---
 
-```{r}
+::: cell
+``` {.r .cell-code}
 x = 1
 y = "foo"
 z = '"foo"'
@@ -18,19 +20,19 @@ h = NULL
 i = "*foo*"
 class(i) <- c("character", "asis")
 ```
+:::
 
-Here's inline output: 
-
-- `{r} x`
-- `{r} y`
-- `{r} z`
-- `{r} a`
-- `{r} b`
-- `{r} c`
-- `{r} d`
-- `{r} e`
-- `{r} f`
-- `{r} g`
-- `{r} h`
-- `{r} i`
+Here's inline output:
 
+-   1
+-   foo
+-   "foo"
+-   "foo
+-   \*foo\*
+-   \*foo\*
+-   'foo
+-   1
+-   FALSE
+-   TRUE
+-   NULL
+-   \*foo\*