diff --git a/src/languageservice/services/yamlCompletion.ts b/src/languageservice/services/yamlCompletion.ts
index af89fbf5..b5e49beb 100644
--- a/src/languageservice/services/yamlCompletion.ts
+++ b/src/languageservice/services/yamlCompletion.ts
@@ -175,6 +175,15 @@ export class YamlCompletion {
     try {
       const schema = await this.schemaService.getSchemaForResource(document.uri, currentDoc);
       if (!schema || schema.errors.length) {
+        if (position.line === 0 && position.character === 0 && !textBuffer.getLineContent(0).includes('# yaml-language-server')) {
+          const inlineSchemaCompletion = {
+            kind: CompletionItemKind.Text,
+            label: 'Inline schema',
+            insertText: '# yaml-language-server: $schema=',
+            insertTextFormat: InsertTextFormat.PlainText,
+          };
+          result.items.push(inlineSchemaCompletion);
+        }
         return result;
       }
 
diff --git a/test/autoCompletion.test.ts b/test/autoCompletion.test.ts
index 857cfc44..2df434dd 100644
--- a/test/autoCompletion.test.ts
+++ b/test/autoCompletion.test.ts
@@ -1588,6 +1588,52 @@ describe('Auto Completion Tests', () => {
       });
       assert.strictEqual(result.items.length, 3, `Expecting 3 items in completion but found ${result.items.length}`);
     });
+
+    const inlineSchemaLabel = 'Inline schema';
+
+    it('should provide modeline completion on first character with no schema associated and no modeline yet', async () => {
+      const testTextDocument = setupSchemaIDTextDocument('', path.join(__dirname, 'test.yaml'));
+      yamlSettings.documents = new TextDocumentTestManager();
+      (yamlSettings.documents as TextDocumentTestManager).set(testTextDocument);
+      const result = await languageHandler.completionHandler({
+        position: testTextDocument.positionAt(0),
+        textDocument: testTextDocument,
+      });
+      assert.strictEqual(result.items.length, 1, `Expecting 1 item in completion but found ${result.items.length}`);
+      assert.strictEqual(result.items[0].label, inlineSchemaLabel);
+    });
+
+    it('should not provide modeline completion on first character when schema is associated', async () => {
+      const specificSchemaId = path.join(__dirname, 'test.yaml');
+      const testTextDocument = setupSchemaIDTextDocument('', specificSchemaId);
+      languageService.addSchema(specificSchemaId, {
+        type: 'object',
+        properties: {
+          name: {
+            type: 'string',
+          },
+        },
+      });
+      yamlSettings.documents = new TextDocumentTestManager();
+      (yamlSettings.documents as TextDocumentTestManager).set(testTextDocument);
+      const result = await languageHandler.completionHandler({
+        position: testTextDocument.positionAt(0),
+        textDocument: testTextDocument,
+      });
+      assert.strictEqual(result.items.length, 1, `Expecting 1 item in completion but found ${result.items.length}`);
+      assert.notStrictEqual(result.items[0].label, inlineSchemaLabel);
+    });
+
+    it('should not provide modeline completion on first character when modeline already present', async () => {
+      const testTextDocument = setupSchemaIDTextDocument('# yaml-language-server', path.join(__dirname, 'test.yaml'));
+      yamlSettings.documents = new TextDocumentTestManager();
+      (yamlSettings.documents as TextDocumentTestManager).set(testTextDocument);
+      const result = await languageHandler.completionHandler({
+        position: testTextDocument.positionAt(0),
+        textDocument: testTextDocument,
+      });
+      assert.strictEqual(result.items.length, 0, `Expecting 0 item in completion but found ${result.items.length}`);
+    });
   });
 
   describe('Configuration based indentation', () => {