wip

assistant2: Don't scroll down if user has scrolled up (#27614 )
This caused undesirable and unnecessary scrolling, in that if you scroll up, then as new messages stream into the panel, they jump the scroll bar back down. @agu-z and I paired on this and we think this is unnecessary now that we don't see the Edit button in the UI, but @bennetbo we still see code for the button in there, so...maybe we do still want this? (If so, we can revert the second commit and go back to a more conditional way of scrolling. 😄) Release Notes: - N/A --------- Co-authored-by: Agus <agus@zed.dev>
2025-03-28 10:34:57 -04:00 · 2025-03-28 10:32:31 -04:00 · 2025-03-28 14:08:42 +00:00 · 2025-03-28 13:40:31 +00:00 · 2025-03-28 13:08:16 +00:00 · 2025-03-28 08:42:44 -04:00
448 changed files with 33249 additions and 19992 deletions
--- a/.git-blame-ignore-revs
+++ b/.git-blame-ignore-revs
@@ -19,6 +19,10 @@
 # https://github.com/zed-industries/zed/pull/2394
 eca93c124a488b4e538946cd2d313bd571aa2b86

+# 2024-02-15 Format YAML files
+# https://github.com/zed-industries/zed/pull/7887
+a161a7d0c95ca7505bf9218bfae640ee5444c88b
+
 # 2024-02-25 Format JSON files in assets/
 # https://github.com/zed-industries/zed/pull/8405
 ffdda588b41f7d9d270ffe76cab116f828ad545e
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -235,7 +235,7 @@ jobs:
          clean: false

      - name: Cache dependencies
-        uses: swatinem/rust-cache@f0deed1e0edfc6a9be95417288c0e1099b1eeec3 # v2
+        uses: swatinem/rust-cache@9d47c6ad4b02e050fd481d890b2ea34778fd09d6 # v2
        with:
          save-if: ${{ github.ref == 'refs/heads/main' }}
          cache-provider: "buildjet"
@@ -287,7 +287,7 @@ jobs:
          clean: false

      - name: Cache dependencies
-        uses: swatinem/rust-cache@f0deed1e0edfc6a9be95417288c0e1099b1eeec3 # v2
+        uses: swatinem/rust-cache@9d47c6ad4b02e050fd481d890b2ea34778fd09d6 # v2
        with:
          save-if: ${{ github.ref == 'refs/heads/main' }}
          cache-provider: "buildjet"
@@ -334,7 +334,7 @@ jobs:
          Copy-Item -Path "${{ github.workspace }}" -Destination "${{ env.ZED_WORKSPACE }}" -Recurse

      - name: Cache dependencies
-        uses: swatinem/rust-cache@f0deed1e0edfc6a9be95417288c0e1099b1eeec3 # v2
+        uses: swatinem/rust-cache@9d47c6ad4b02e050fd481d890b2ea34778fd09d6 # v2
        with:
          save-if: ${{ github.ref == 'refs/heads/main' }}
          workspaces: ${{ env.ZED_WORKSPACE }}
@@ -393,7 +393,7 @@ jobs:
          Copy-Item -Path "${{ github.workspace }}" -Destination "${{ env.ZED_WORKSPACE }}" -Recurse

      - name: Cache dependencies
-        uses: swatinem/rust-cache@f0deed1e0edfc6a9be95417288c0e1099b1eeec3 # v2
+        uses: swatinem/rust-cache@9d47c6ad4b02e050fd481d890b2ea34778fd09d6 # v2
        with:
          save-if: ${{ github.ref == 'refs/heads/main' }}
          workspaces: ${{ env.ZED_WORKSPACE }}
--- a/.github/workflows/community_close_stale_issues.yml
+++ b/.github/workflows/community_close_stale_issues.yml
@@ -1,7 +1,7 @@
 name: "Close Stale Issues"
 on:
  schedule:
-    - cron: "0 7,9,11 * * 2"
+    - cron: "0 7,9,11 * * 3"
  workflow_dispatch:

 jobs:
--- a/.github/workflows/publish_extension_cli.yml
+++ b/.github/workflows/publish_extension_cli.yml
@@ -22,7 +22,7 @@ jobs:
          clean: false

      - name: Cache dependencies
-        uses: swatinem/rust-cache@f0deed1e0edfc6a9be95417288c0e1099b1eeec3 # v2
+        uses: swatinem/rust-cache@9d47c6ad4b02e050fd481d890b2ea34778fd09d6 # v2
        with:
          save-if: ${{ github.ref == 'refs/heads/main' }}
          cache-provider: "github"
--- a/.github/workflows/release_nightly.yml
+++ b/.github/workflows/release_nightly.yml
@@ -182,8 +182,7 @@ jobs:
            runner: buildjet-16vcpu-ubuntu-2204
            install_nix: true
          - os: arm Mac
-            # TODO: once other macs are provisioned for nix, remove that constraint from the runner
-            runner: [macOS, ARM64, nix]
+            runner: [macOS, ARM64, test]
            install_nix: false
          - os: arm Linux
            runner: buildjet-16vcpu-ubuntu-2204-arm
--- a/Cargo.lock
+++ b/Cargo.lock
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -70,6 +70,7 @@ members = [
    "crates/html_to_markdown",
    "crates/http_client",
    "crates/http_client_tls",
+    "crates/icons",
    "crates/image_viewer",
    "crates/indexed_docs",
    "crates/inline_completion",
@@ -124,7 +125,6 @@ members = [
    "crates/rope",
    "crates/rpc",
    "crates/schema_generator",
-    "crates/scripting_tool",
    "crates/search",
    "crates/semantic_index",
    "crates/semantic_version",
@@ -171,6 +171,8 @@ members = [
    "crates/zed",
    "crates/zed_actions",
    "crates/zeta",
+    "crates/zlog",
+    "crates/zlog_settings",

    #
    # Extensions
@@ -273,6 +275,7 @@ gpui_tokio = { path = "crates/gpui_tokio" }
 html_to_markdown = { path = "crates/html_to_markdown" }
 http_client = { path = "crates/http_client" }
 http_client_tls = { path = "crates/http_client_tls" }
+icons = { path = "crates/icons" }
 image_viewer = { path = "crates/image_viewer" }
 indexed_docs = { path = "crates/indexed_docs" }
 inline_completion = { path = "crates/inline_completion" }
@@ -327,7 +330,6 @@ reqwest_client = { path = "crates/reqwest_client" }
 rich_text = { path = "crates/rich_text" }
 rope = { path = "crates/rope" }
 rpc = { path = "crates/rpc" }
-scripting_tool = { path = "crates/scripting_tool" }
 search = { path = "crates/search" }
 semantic_index = { path = "crates/semantic_index" }
 semantic_version = { path = "crates/semantic_version" }
@@ -374,6 +376,8 @@ worktree = { path = "crates/worktree" }
 zed = { path = "crates/zed" }
 zed_actions = { path = "crates/zed_actions" }
 zeta = { path = "crates/zeta" }
+zlog = { path = "crates/zlog" }
+zlog_settings = { path = "crates/zlog_settings" }

 #
 # External crates
@@ -466,6 +470,7 @@ mlua = { version = "0.10", features = ["lua54", "vendored", "async", "send"] }
 nanoid = "0.4"
 nbformat = { version = "0.10.0" }
 nix = "0.29"
+open = "5.0.0"
 num-format = "0.4.4"
 ordered-float = "2.1.1"
 palette = { version = "0.7.5", default-features = false, features = ["std"] }
@@ -609,7 +614,7 @@ features = [
 ]

 [workspace.dependencies.windows]
-version = "0.60"
+version = "0.61"
 features = [
    "Foundation_Collections",
    "Foundation_Numerics",
--- a/assets/icons/arrow_right_left.svg
+++ b/assets/icons/arrow_right_left.svg
@@ -0,0 +1 @@
+<svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-arrow-right-left"><path d="m16 3 4 4-4 4"/><path d="M20 7H4"/><path d="m8 21-4-4 4-4"/><path d="M4 17h16"/></svg>
--- a/assets/icons/arrow_up_right_alt.svg
+++ b/assets/icons/arrow_up_right_alt.svg
@@ -0,0 +1,3 @@
+<svg width="8" height="8" viewBox="0 0 8 8" fill="none" xmlns="http://www.w3.org/2000/svg">
+<path d="M5.4 2.6H5.75C5.75 2.50717 5.71312 2.41815 5.64749 2.35251C5.58185 2.28688 5.49283 2.25 5.4 2.25V2.6ZM2.6 2.25C2.4067 2.25 2.25 2.4067 2.25 2.6C2.25 2.7933 2.4067 2.95 2.6 2.95V2.25ZM5.05 5.4C5.05 5.5933 5.2067 5.75 5.4 5.75C5.5933 5.75 5.75 5.5933 5.75 5.4H5.05ZM2.35252 5.15251C2.21583 5.2892 2.21583 5.5108 2.35252 5.64748C2.4892 5.78417 2.7108 5.78417 2.84749 5.64748L2.35252 5.15251ZM5.4 2.25H2.6V2.95H5.4V2.25ZM5.05 2.6V5.4H5.75V2.6H5.05ZM5.15252 2.35251L2.35252 5.15251L2.84749 5.64748L5.64749 2.84748L5.15252 2.35251Z" fill="black"/>
+</svg>
--- a/assets/icons/brain.svg
+++ b/assets/icons/brain.svg
@@ -0,0 +1 @@
+<svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-brain"><path d="M12 5a3 3 0 1 0-5.997.125 4 4 0 0 0-2.526 5.77 4 4 0 0 0 .556 6.588A4 4 0 1 0 12 18Z"/><path d="M12 5a3 3 0 1 1 5.997.125 4 4 0 0 1 2.526 5.77 4 4 0 0 1-.556 6.588A4 4 0 1 1 12 18Z"/><path d="M15 13a4.5 4.5 0 0 1-3-4 4.5 4.5 0 0 1-3 4"/><path d="M17.599 6.5a3 3 0 0 0 .399-1.375"/><path d="M6.003 5.125A3 3 0 0 0 6.401 6.5"/><path d="M3.477 10.896a4 4 0 0 1 .585-.396"/><path d="M19.938 10.5a4 4 0 0 1 .585.396"/><path d="M6 18a4 4 0 0 1-1.967-.516"/><path d="M19.967 17.484A4 4 0 0 1 18 18"/></svg>
--- a/assets/icons/clipboard.svg
+++ b/assets/icons/clipboard.svg
@@ -0,0 +1 @@
+<svg xmlns="http://www.w3.org/2000/svg" width="16" height="16" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-clipboard"><rect width="8" height="4" x="8" y="2" rx="1" ry="1"/><path d="M16 4h2a2 2 0 0 1 2 2v14a2 2 0 0 1-2 2H6a2 2 0 0 1-2-2V6a2 2 0 0 1 2-2h2"/></svg>
--- a/assets/icons/cog.svg
+++ b/assets/icons/cog.svg
@@ -0,0 +1 @@
+<svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-cog"><path d="M12 20a8 8 0 1 0 0-16 8 8 0 0 0 0 16Z"/><path d="M12 14a2 2 0 1 0 0-4 2 2 0 0 0 0 4Z"/><path d="M12 2v2"/><path d="M12 22v-2"/><path d="m17 20.66-1-1.73"/><path d="M11 10.27 7 3.34"/><path d="m20.66 17-1.73-1"/><path d="m3.34 7 1.73 1"/><path d="M14 12h8"/><path d="M2 12h2"/><path d="m20.66 7-1.73 1"/><path d="m3.34 17 1.73-1"/><path d="m17 3.34-1 1.73"/><path d="m11 13.73-4 6.93"/></svg>
--- a/assets/icons/file_create.svg
+++ b/assets/icons/file_create.svg
@@ -0,0 +1,5 @@
+<svg width="16" height="16" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg">
+<path d="M10.0001 1.33334H4.00008C3.64646 1.33334 3.30732 1.47382 3.05727 1.72387C2.80722 1.97392 2.66675 2.31305 2.66675 2.66668V13.3333C2.66675 13.687 2.80722 14.0261 3.05727 14.2762C3.30732 14.5262 3.64646 14.6667 4.00008 14.6667H12.0001C12.3537 14.6667 12.6928 14.5262 12.9429 14.2762C13.1929 14.0261 13.3334 13.687 13.3334 13.3333V4.66668L10.0001 1.33334Z" stroke="black" stroke-width="1.33333" stroke-linecap="round" stroke-linejoin="round"/>
+<path d="M6 8H10" stroke="black" stroke-width="1.33333" stroke-linecap="round" stroke-linejoin="round"/>
+<path d="M8 10V6" stroke="black" stroke-width="1.33333" stroke-linecap="round" stroke-linejoin="round"/>
+</svg>
--- a/assets/icons/file_delete.svg
+++ b/assets/icons/file_delete.svg
@@ -0,0 +1,5 @@
+<svg width="16" height="16" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg">
+<path d="M10.0001 1.33334H4.00008C3.64646 1.33334 3.30732 1.47382 3.05727 1.72387C2.80722 1.97392 2.66675 2.31305 2.66675 2.66668V13.3333C2.66675 13.687 2.80722 14.0261 3.05727 14.2762C3.30732 14.5262 3.64646 14.6667 4.00008 14.6667H12.0001C12.3537 14.6667 12.6928 14.5262 12.9429 14.2762C13.1929 14.0261 13.3334 13.687 13.3334 13.3333V4.66668L10.0001 1.33334Z" stroke="black" stroke-width="1.33333" stroke-linecap="round" stroke-linejoin="round"/>
+<path d="M9.66659 6.5L6.33325 9.83333" stroke="black" stroke-width="1.33333" stroke-linecap="round" stroke-linejoin="round"/>
+<path d="M6.33325 6.5L9.66659 9.83333" stroke="black" stroke-width="1.33333" stroke-linecap="round" stroke-linejoin="round"/>
+</svg>
--- a/assets/icons/zed_assistant_2.svg
+++ b/assets/icons/zed_assistant_2.svg
@@ -1,5 +0,0 @@
-<svg width="14" height="14" viewBox="0 0 14 14" fill="none" xmlns="http://www.w3.org/2000/svg">
-<path d="M5.27772 1.38585L4.39187 4.07909C4.34653 4.21692 4.26946 4.34219 4.16685 4.44479C4.06425 4.5474 3.93898 4.62447 3.80115 4.66981L1.10791 5.55566L3.80115 6.44151C3.93898 6.48685 4.06425 6.56392 4.16685 6.66653C4.26946 6.76913 4.34653 6.8944 4.39187 7.03223L5.27772 9.72547L6.16357 7.03223C6.20891 6.8944 6.28598 6.76913 6.38859 6.66653C6.49119 6.56392 6.61646 6.48685 6.7543 6.44151L9.44753 5.55566L6.7543 4.66981C6.61646 4.62447 6.49119 4.5474 6.38859 4.44479C6.28598 4.34219 6.20891 4.21692 6.16357 4.07909L5.27772 1.38585Z" fill="black" fill-opacity="0.15" stroke="black" stroke-width="1.2" stroke-linecap="round" stroke-linejoin="round"/>
-<path d="M8.35938 12.3555C8.35938 12.0664 8.52734 11.8086 9.00781 11.3594L10.2031 10.2344C10.6094 9.85156 10.7891 9.60156 10.7891 9.34375C10.7891 9.05469 10.5781 8.85938 10.2734 8.85938C10.0391 8.85938 9.87109 8.95312 9.66406 9.21094C9.42578 9.50781 9.25391 9.60938 8.99219 9.60938C8.61719 9.60938 8.35156 9.35938 8.35156 9.01172C8.35156 8.25 9.26953 7.57812 10.3594 7.57812C11.4961 7.57812 12.3438 8.26172 12.3438 9.17969C12.3438 9.75391 12.0391 10.3008 11.418 10.8516L10.4961 11.6719V11.7344H11.8047C12.2578 11.7344 12.5391 11.9766 12.5391 12.3711C12.5391 12.7656 12.2656 13 11.8047 13H9.08203C8.65234 13 8.35938 12.7383 8.35938 12.3555Z" fill="black"/>
-<path d="M11.0834 1.38585V3.71918M9.91675 2.55248H12.2501" stroke="black" stroke-opacity="0.75" stroke-width="1.25" stroke-linecap="round" stroke-linejoin="round"/>
-</svg>
--- a/assets/keymaps/default-linux.json
+++ b/assets/keymaps/default-linux.json
@@ -195,7 +195,7 @@
      "ctrl-shift-g": "search::SelectPreviousMatch",
      "ctrl-alt-/": "assistant::ToggleModelSelector",
      "ctrl-k h": "assistant::DeployHistory",
-      "ctrl-k l": "assistant::DeployPromptLibrary",
+      "ctrl-k l": "assistant::OpenPromptLibrary",
      "new": "assistant::NewChat",
      "ctrl-t": "assistant::NewChat",
      "ctrl-n": "assistant::NewChat"
@@ -754,9 +754,11 @@
      "escape": "git_panel::ToggleFocus",
      "ctrl-enter": "git::Commit",
      "alt-enter": "menu::SecondaryConfirm",
-      "delete": "git::RestoreFile",
-      "shift-delete": "git::RestoreFile",
-      "backspace": "git::RestoreFile"
+      "delete": ["git::RestoreFile", { "skip_prompt": false }],
+      "backspace": ["git::RestoreFile", { "skip_prompt": false }],
+      "shift-delete": ["git::RestoreFile", { "skip_prompt": false }],
+      "ctrl-backspace": ["git::RestoreFile", { "skip_prompt": false }],
+      "ctrl-delete": ["git::RestoreFile", { "skip_prompt": false }]
    }
  },
  {
--- a/assets/keymaps/default-macos.json
+++ b/assets/keymaps/default-macos.json
@@ -241,7 +241,7 @@
      "cmd-shift-g": "search::SelectPreviousMatch",
      "cmd-alt-/": "assistant::ToggleModelSelector",
      "cmd-k h": "assistant::DeployHistory",
-      "cmd-k l": "assistant::DeployPromptLibrary",
+      "cmd-k l": "assistant::OpenPromptLibrary",
      "cmd-t": "assistant::NewChat",
      "cmd-n": "assistant::NewChat"
    }
@@ -287,7 +287,9 @@
    "context": "MessageEditor > Editor",
    "use_key_equivalents": true,
    "bindings": {
-      "enter": "assistant2::Chat"
+      "enter": "assistant2::Chat",
+      "cmd-g d": "git::Diff",
+      "shift-escape": "git::ExpandCommitEditor"
    }
  },
  {
@@ -801,9 +803,10 @@
      "shift-tab": "git_panel::FocusEditor",
      "escape": "git_panel::ToggleFocus",
      "cmd-enter": "git::Commit",
-      "delete": "git::RestoreFile",
-      "cmd-backspace": "git::RestoreFile",
-      "backspace": "git::RestoreFile"
+      "backspace": ["git::RestoreFile", { "skip_prompt": false }],
+      "delete": ["git::RestoreFile", { "skip_prompt": false }],
+      "cmd-backspace": ["git::RestoreFile", { "skip_prompt": true }],
+      "cmd-delete": ["git::RestoreFile", { "skip_prompt": true }]
    }
  },
  {
--- a/assets/prompts/assistant_system_prompt.hbs
+++ b/assets/prompts/assistant_system_prompt.hbs
@@ -8,11 +8,27 @@ It will be up to you to decide which of these you are doing based on what the us
 You should only perform actions that modify the user’s system if explicitly requested by the user:
 - If the user asks a question about how to accomplish a task, provide guidance or information, and use read-only tools (e.g., search) to assist. You may suggest potential actions, but do not directly modify the user’s system without explicit instruction.
 - If the user clearly requests that you perform an action, carry out the action directly without explaining why you are doing so.
+- The editing actions you perform might produce errors or warnings. At the end of your changes, check whether you introduced any problems, and fix them before providing a summary of the changes you made.
+- Do not fix errors unrelated to your changes unless the user explicitly asks you to do so.

 Be concise and direct in your responses.

-The user has opened a project that contains the following root directories/files:
+The user has opened a project that contains the following root directories/files. Whenever you specify a path in the project, it must be a relative path which begins with one of these root directories/files:

 {{#each worktrees}}
- {{root_name}} (absolute path: {{abs_path}})
+- `{{root_name}}` (absolute path: `{{abs_path}}`)
 {{/each}}
+{{#if has_rules}}
+
+There are rules that apply to these root directories:
+{{#each worktrees}}
+{{#if rules_file}}
+
+`{{root_name}}/{{rules_file.rel_path}}`:
+
+``````
+{{{rules_file.text}}}
+``````
+{{/if}}
+{{/each}}
+{{/if}}
--- a/assets/settings/default.json
+++ b/assets/settings/default.json
@@ -25,7 +25,7 @@
  // Features that can be globally enabled or disabled
  "features": {
    // Which edit prediction provider to use.
-    "edit_prediction_provider": "copilot"
+    "edit_prediction_provider": "zed"
  },
  // The name of a font to use for rendering text in the editor
  "buffer_font_family": "Zed Plex Mono",
@@ -155,6 +155,8 @@
  //
  // Default: not set, defaults to "bar"
  "cursor_shape": null,
+  // Determines whether the mouse cursor is hidden when typing in an editor or input box.
+  "hide_mouse_while_typing": true,
  // How to highlight the current line in the editor.
  //
  // 1. Don't highlight the current line:
@@ -184,6 +186,11 @@
  // Whether to show the signature help after completion or a bracket pair inserted.
  // If `auto_signature_help` is enabled, this setting will be treated as enabled also.
  "show_signature_help_after_edits": false,
+  // What to do when go to definition yields no results.
+  //
+  // 1. Do nothing: `none`
+  // 2. Find references for the same symbol: `find_all_references` (default)
+  "go_to_definition_fallback": "find_all_references",
  // Whether to show wrap guides (vertical rulers) in the editor.
  // Setting this to true will show a guide at the 'preferred_line_length' value
  // if 'soft_wrap' is set to 'preferred_line_length', and will show any
@@ -422,6 +429,8 @@
  "project_panel": {
    // Whether to show the project panel button in the status bar
    "button": true,
+    // Whether to hide the gitignore entries in the project panel.
+    "hide_gitignore": false,
    // Default width of the project panel.
    "default_width": 240,
    // Where to dock the project panel. Can be 'left' or 'right'.
@@ -614,7 +623,46 @@
      "provider": "zed.dev",
      // The model to use.
      "model": "claude-3-5-sonnet-latest"
-    }
+    },
+    "default_profile": "code-writer",
+    "profiles": {
+      "read-only": {
+        "name": "Read-only",
+        "tools": {
+          "diagnostics": true,
+          "fetch": true,
+          "list-directory": true,
+          "now": true,
+          "path-search": true,
+          "read-file": true,
+          "regex-search": true,
+          "thinking": true
+        }
+      },
+      "code-writer": {
+        "name": "Code Writer",
+        "tools": {
+          "bash": true,
+          "batch-tool": true,
+          "copy-path": true,
+          "create-file": true,
+          "delete-path": true,
+          "diagnostics": true,
+          "find-replace-file": true,
+          "edit-files": false,
+          "fetch": true,
+          "list-directory": true,
+          "move-path": true,
+          "now": true,
+          "path-search": true,
+          "read-file": true,
+          "regex-search": true,
+          "thinking": true
+        }
+      }
+    },
+    // Shows a notification when the agent needs confirmation before running an edit tool call or when that's concluded.
+    "notify_when_agent_waiting": true
  },
  // The settings for slash commands.
  "slash_commands": {
@@ -981,7 +1029,7 @@
    //         "alternate_scroll": "on",
    //  2. Default alternate scroll mode to off
    //         "alternate_scroll": "off",
-    "alternate_scroll": "off",
+    "alternate_scroll": "on",
    // Set whether the option key behaves as the meta key.
    // May take 2 values:
    //  1. Rely on default platform handling of option key, on macOS
@@ -1224,11 +1272,19 @@
        "allowed": true
      }
    },
+    "LaTeX": {
+      "format_on_save": "on",
+      "formatter": "language_server",
+      "language_servers": ["texlab", "..."],
+      "prettier": {
+        "allowed": false
+      }
+    },
    "Markdown": {
      "format_on_save": "off",
      "use_on_type_format": false,
      "allow_rewrap": "anywhere",
-      "soft_wrap": "bounded",
+      "soft_wrap": "editor_width",
      "prettier": {
        "allowed": true
      }
--- a/crates/anthropic/src/anthropic.rs
+++ b/crates/anthropic/src/anthropic.rs
@@ -24,6 +24,16 @@ pub struct AnthropicModelCacheConfiguration {
    pub max_cache_anchors: usize,
 }

+#[cfg_attr(feature = "schemars", derive(schemars::JsonSchema))]
+#[derive(Clone, Debug, Default, Serialize, Deserialize, PartialEq)]
+pub enum AnthropicModelMode {
+    #[default]
+    Default,
+    Thinking {
+        budget_tokens: Option<u32>,
+    },
+}
+
 #[cfg_attr(feature = "schemars", derive(schemars::JsonSchema))]
 #[derive(Clone, Debug, Default, Serialize, Deserialize, PartialEq, EnumIter)]
 pub enum Model {
@@ -32,6 +42,11 @@ pub enum Model {
    Claude3_5Sonnet,
    #[serde(rename = "claude-3-7-sonnet", alias = "claude-3-7-sonnet-latest")]
    Claude3_7Sonnet,
+    #[serde(
+        rename = "claude-3-7-sonnet-thinking",
+        alias = "claude-3-7-sonnet-thinking-latest"
+    )]
+    Claude3_7SonnetThinking,
    #[serde(rename = "claude-3-5-haiku", alias = "claude-3-5-haiku-latest")]
    Claude3_5Haiku,
    #[serde(rename = "claude-3-opus", alias = "claude-3-opus-latest")]
@@ -54,6 +69,8 @@ pub enum Model {
        default_temperature: Option<f32>,
        #[serde(default)]
        extra_beta_headers: Vec<String>,
+        #[serde(default)]
+        mode: AnthropicModelMode,
    },
 }

@@ -61,6 +78,8 @@ impl Model {
    pub fn from_id(id: &str) -> Result<Self> {
        if id.starts_with("claude-3-5-sonnet") {
            Ok(Self::Claude3_5Sonnet)
+        } else if id.starts_with("claude-3-7-sonnet-thinking") {
+            Ok(Self::Claude3_7SonnetThinking)
        } else if id.starts_with("claude-3-7-sonnet") {
            Ok(Self::Claude3_7Sonnet)
        } else if id.starts_with("claude-3-5-haiku") {
@@ -80,6 +99,20 @@ impl Model {
        match self {
            Model::Claude3_5Sonnet => "claude-3-5-sonnet-latest",
            Model::Claude3_7Sonnet => "claude-3-7-sonnet-latest",
+            Model::Claude3_7SonnetThinking => "claude-3-7-sonnet-thinking-latest",
+            Model::Claude3_5Haiku => "claude-3-5-haiku-latest",
+            Model::Claude3Opus => "claude-3-opus-latest",
+            Model::Claude3Sonnet => "claude-3-sonnet-20240229",
+            Model::Claude3Haiku => "claude-3-haiku-20240307",
+            Self::Custom { name, .. } => name,
+        }
+    }
+
+    /// The id of the model that should be used for making API requests
+    pub fn request_id(&self) -> &str {
+        match self {
+            Model::Claude3_5Sonnet => "claude-3-5-sonnet-latest",
+            Model::Claude3_7Sonnet | Model::Claude3_7SonnetThinking => "claude-3-7-sonnet-latest",
            Model::Claude3_5Haiku => "claude-3-5-haiku-latest",
            Model::Claude3Opus => "claude-3-opus-latest",
            Model::Claude3Sonnet => "claude-3-sonnet-20240229",
@@ -92,6 +125,7 @@ impl Model {
        match self {
            Self::Claude3_7Sonnet => "Claude 3.7 Sonnet",
            Self::Claude3_5Sonnet => "Claude 3.5 Sonnet",
+            Self::Claude3_7SonnetThinking => "Claude 3.7 Sonnet Thinking",
            Self::Claude3_5Haiku => "Claude 3.5 Haiku",
            Self::Claude3Opus => "Claude 3 Opus",
            Self::Claude3Sonnet => "Claude 3 Sonnet",
@@ -107,6 +141,7 @@ impl Model {
            Self::Claude3_5Sonnet
            | Self::Claude3_5Haiku
            | Self::Claude3_7Sonnet
+            | Self::Claude3_7SonnetThinking
            | Self::Claude3Haiku => Some(AnthropicModelCacheConfiguration {
                min_total_token: 2_048,
                should_speculate: true,
@@ -125,6 +160,7 @@ impl Model {
            Self::Claude3_5Sonnet
            | Self::Claude3_5Haiku
            | Self::Claude3_7Sonnet
+            | Self::Claude3_7SonnetThinking
            | Self::Claude3Opus
            | Self::Claude3Sonnet
            | Self::Claude3Haiku => 200_000,
@@ -135,7 +171,10 @@ impl Model {
    pub fn max_output_tokens(&self) -> u32 {
        match self {
            Self::Claude3Opus | Self::Claude3Sonnet | Self::Claude3Haiku => 4_096,
-            Self::Claude3_5Sonnet | Self::Claude3_7Sonnet | Self::Claude3_5Haiku => 8_192,
+            Self::Claude3_5Sonnet
+            | Self::Claude3_7Sonnet
+            | Self::Claude3_7SonnetThinking
+            | Self::Claude3_5Haiku => 8_192,
            Self::Custom {
                max_output_tokens, ..
            } => max_output_tokens.unwrap_or(4_096),
@@ -146,6 +185,7 @@ impl Model {
        match self {
            Self::Claude3_5Sonnet
            | Self::Claude3_7Sonnet
+            | Self::Claude3_7SonnetThinking
            | Self::Claude3_5Haiku
            | Self::Claude3Opus
            | Self::Claude3Sonnet
@@ -157,6 +197,21 @@ impl Model {
        }
    }

+    pub fn mode(&self) -> AnthropicModelMode {
+        match self {
+            Self::Claude3_5Sonnet
+            | Self::Claude3_7Sonnet
+            | Self::Claude3_5Haiku
+            | Self::Claude3Opus
+            | Self::Claude3Sonnet
+            | Self::Claude3Haiku => AnthropicModelMode::Default,
+            Self::Claude3_7SonnetThinking => AnthropicModelMode::Thinking {
+                budget_tokens: Some(4_096),
+            },
+            Self::Custom { mode, .. } => mode.clone(),
+        }
+    }
+
    pub const DEFAULT_BETA_HEADERS: &[&str] = &["prompt-caching-2024-07-31"];

    pub fn beta_headers(&self) -> String {
@@ -188,7 +243,7 @@ impl Model {
        {
            tool_override
        } else {
-            self.id()
+            self.request_id()
        }
    }
 }
@@ -409,6 +464,8 @@ pub async fn extract_tool_args_from_events(
            Err(error) => Some(Err(error)),
            Ok(Event::ContentBlockDelta { index, delta }) => match delta {
                ContentDelta::TextDelta { .. } => None,
+                ContentDelta::ThinkingDelta { .. } => None,
+                ContentDelta::SignatureDelta { .. } => None,
                ContentDelta::InputJsonDelta { partial_json } => {
                    if index == tool_use_index {
                        Some(Ok(partial_json))
@@ -487,6 +544,10 @@ pub enum RequestContent {
 pub enum ResponseContent {
    #[serde(rename = "text")]
    Text { text: String },
+    #[serde(rename = "thinking")]
+    Thinking { thinking: String },
+    #[serde(rename = "redacted_thinking")]
+    RedactedThinking { data: String },
    #[serde(rename = "tool_use")]
    ToolUse {
        id: String,
@@ -518,6 +579,19 @@ pub enum ToolChoice {
    Tool { name: String },
 }

+#[derive(Debug, Serialize, Deserialize)]
+#[serde(tag = "type", rename_all = "lowercase")]
+pub enum Thinking {
+    Enabled { budget_tokens: Option<u32> },
+}
+
+#[derive(Debug, Serialize, Deserialize)]
+#[serde(untagged)]
+pub enum StringOrContents {
+    String(String),
+    Content(Vec<RequestContent>),
+}
+
 #[derive(Debug, Serialize, Deserialize)]
 pub struct Request {
    pub model: String,
@@ -526,9 +600,11 @@ pub struct Request {
    #[serde(default, skip_serializing_if = "Vec::is_empty")]
    pub tools: Vec<Tool>,
    #[serde(default, skip_serializing_if = "Option::is_none")]
+    pub thinking: Option<Thinking>,
+    #[serde(default, skip_serializing_if = "Option::is_none")]
    pub tool_choice: Option<ToolChoice>,
    #[serde(default, skip_serializing_if = "Option::is_none")]
-    pub system: Option<String>,
+    pub system: Option<StringOrContents>,
    #[serde(default, skip_serializing_if = "Option::is_none")]
    pub metadata: Option<Metadata>,
    #[serde(default, skip_serializing_if = "Vec::is_empty")]
@@ -609,6 +685,10 @@ pub enum Event {
 pub enum ContentDelta {
    #[serde(rename = "text_delta")]
    TextDelta { text: String },
+    #[serde(rename = "thinking_delta")]
+    ThinkingDelta { thinking: String },
+    #[serde(rename = "signature_delta")]
+    SignatureDelta { signature: String },
    #[serde(rename = "input_json_delta")]
    InputJsonDelta { partial_json: String },
 }
--- a/crates/askpass/src/askpass.rs
+++ b/crates/askpass/src/askpass.rs
@@ -188,7 +188,7 @@ impl AskPassSession {
    }

    pub async fn run(&mut self) -> AskPassResult {
-        futures::FutureExt::fuse(smol::Timer::after(Duration::from_secs(10))).await;
+        futures::FutureExt::fuse(smol::Timer::after(Duration::from_secs(20))).await;
        AskPassResult::Timedout
    }
 }
--- a/crates/assistant/Cargo.toml
+++ b/crates/assistant/Cargo.toml
@@ -48,7 +48,6 @@ lsp.workspace = true
 menu.workspace = true
 multi_buffer.workspace = true
 parking_lot.workspace = true
-paths.workspace = true
 project.workspace = true
 prompt_library.workspace = true
 prompt_store.workspace = true
@@ -56,7 +55,6 @@ proto.workspace = true
 rope.workspace = true
 schemars.workspace = true
 search.workspace = true
-semantic_index.workspace = true
 serde.workspace = true
 settings.workspace = true
 smol.workspace = true
--- a/crates/assistant/src/assistant.rs
+++ b/crates/assistant/src/assistant.rs
@@ -10,17 +10,15 @@ use std::sync::Arc;

 use assistant_settings::AssistantSettings;
 use assistant_slash_command::SlashCommandRegistry;
-use assistant_slash_commands::{ProjectSlashCommandFeatureFlag, SearchSlashCommandFeatureFlag};
 use client::Client;
 use command_palette_hooks::CommandPaletteFilter;
 use feature_flags::FeatureFlagAppExt;
 use fs::Fs;
-use gpui::{actions, App, Global, UpdateGlobal};
+use gpui::{actions, App, Global, ReadGlobal, UpdateGlobal};
 use language_model::{
    LanguageModelId, LanguageModelProviderId, LanguageModelRegistry, LanguageModelResponseMessage,
 };
 use prompt_store::PromptBuilder;
-use semantic_index::{CloudEmbeddingProvider, SemanticDb};
 use serde::Deserialize;
 use settings::{Settings, SettingsStore};

@@ -86,6 +84,10 @@ impl Assistant {
            filter.show_namespace(Self::NAMESPACE);
        });
    }
+
+    pub fn enabled(cx: &App) -> bool {
+        Self::global(cx).enabled
+    }
 }

 pub fn init(
@@ -98,33 +100,6 @@ pub fn init(
    AssistantSettings::register(cx);
    SlashCommandSettings::register(cx);

-    cx.spawn({
-        let client = client.clone();
-        async move |cx| {
-            let is_search_slash_command_enabled = cx
-                .update(|cx| cx.wait_for_flag::<SearchSlashCommandFeatureFlag>())?
-                .await;
-            let is_project_slash_command_enabled = cx
-                .update(|cx| cx.wait_for_flag::<ProjectSlashCommandFeatureFlag>())?
-                .await;
-
-            if !is_search_slash_command_enabled && !is_project_slash_command_enabled {
-                return Ok(());
-            }
-
-            let embedding_provider = CloudEmbeddingProvider::new(client.clone());
-            let semantic_index = SemanticDb::new(
-                paths::embeddings_dir().join("semantic-index-db.0.mdb"),
-                Arc::new(embedding_provider),
-                cx,
-            )
-            .await?;
-
-            cx.update(|cx| cx.set_global(semantic_index))
-        }
-    })
-    .detach();
-
    assistant_context_editor::init(client.clone(), cx);
    prompt_library::init(cx);
    init_language_model_settings(cx);
@@ -133,7 +108,7 @@ pub fn init(
    assistant_panel::init(cx);
    context_server::init(cx);

-    register_slash_commands(Some(prompt_builder.clone()), cx);
+    register_slash_commands(cx);
    inline_assistant::init(
        fs.clone(),
        prompt_builder.clone(),
@@ -209,7 +184,7 @@ fn update_active_language_model_from_settings(cx: &mut App) {
    });
 }

-fn register_slash_commands(prompt_builder: Option<Arc<PromptBuilder>>, cx: &mut App) {
+fn register_slash_commands(cx: &mut App) {
    let slash_command_registry = SlashCommandRegistry::global(cx);

    slash_command_registry.register_command(assistant_slash_commands::FileSlashCommand, true);
@@ -227,33 +202,6 @@ fn register_slash_commands(prompt_builder: Option<Arc<PromptBuilder>>, cx: &mut
        .register_command(assistant_slash_commands::DiagnosticsSlashCommand, true);
    slash_command_registry.register_command(assistant_slash_commands::FetchSlashCommand, true);

-    if let Some(prompt_builder) = prompt_builder {
-        cx.observe_flag::<assistant_slash_commands::ProjectSlashCommandFeatureFlag, _>({
-            let slash_command_registry = slash_command_registry.clone();
-            move |is_enabled, _cx| {
-                if is_enabled {
-                    slash_command_registry.register_command(
-                        assistant_slash_commands::ProjectSlashCommand::new(prompt_builder.clone()),
-                        true,
-                    );
-                }
-            }
-        })
-        .detach();
-    }
-
-    cx.observe_flag::<assistant_slash_commands::AutoSlashCommandFeatureFlag, _>({
-        let slash_command_registry = slash_command_registry.clone();
-        move |is_enabled, _cx| {
-            if is_enabled {
-                // [#auto-staff-ship] TODO remove this when /auto is no longer staff-shipped
-                slash_command_registry
-                    .register_command(assistant_slash_commands::AutoCommand, true);
-            }
-        }
-    })
-    .detach();
-
    cx.observe_flag::<assistant_slash_commands::StreamingExampleSlashCommandFeatureFlag, _>({
        let slash_command_registry = slash_command_registry.clone();
        move |is_enabled, _cx| {
@@ -270,17 +218,6 @@ fn register_slash_commands(prompt_builder: Option<Arc<PromptBuilder>>, cx: &mut
    update_slash_commands_from_settings(cx);
    cx.observe_global::<SettingsStore>(update_slash_commands_from_settings)
        .detach();
-
-    cx.observe_flag::<assistant_slash_commands::SearchSlashCommandFeatureFlag, _>({
-        let slash_command_registry = slash_command_registry.clone();
-        move |is_enabled, _cx| {
-            if is_enabled {
-                slash_command_registry
-                    .register_command(assistant_slash_commands::SearchSlashCommand, true);
-            }
-        }
-    })
-    .detach();
 }

 fn update_slash_commands_from_settings(cx: &mut App) {
--- a/crates/assistant/src/assistant_panel.rs
+++ b/crates/assistant/src/assistant_panel.rs
@@ -1,4 +1,5 @@
 use crate::assistant_configuration::{ConfigurationView, ConfigurationViewEvent};
+use crate::Assistant;
 use crate::{
    terminal_inline_assistant::TerminalInlineAssistant, DeployHistory, InlineAssistant, NewChat,
 };
@@ -38,7 +39,7 @@ use workspace::{
    dock::{DockPosition, Panel, PanelEvent},
    pane, DraggedSelection, Pane, ShowConfiguration, ToggleZoom, Workspace,
 };
-use zed_actions::assistant::{DeployPromptLibrary, InlineAssist, ToggleFocus};
+use zed_actions::assistant::{InlineAssist, OpenPromptLibrary, ToggleFocus};

 pub fn init(cx: &mut App) {
    workspace::FollowableViewRegistry::register::<ContextEditor>(cx);
@@ -58,8 +59,7 @@ pub fn init(cx: &mut App) {

    cx.observe_new(
        |terminal_panel: &mut TerminalPanel, _, cx: &mut Context<TerminalPanel>| {
-            let settings = AssistantSettings::get_global(cx);
-            terminal_panel.set_assistant_enabled(settings.enabled, cx);
+            terminal_panel.set_assistant_enabled(Assistant::enabled(cx), cx);
        },
    )
    .detach();
@@ -259,7 +259,7 @@ impl AssistantPanel {
                                    menu.context(focus_handle.clone())
                                        .action("New Chat", Box::new(NewChat))
                                        .action("History", Box::new(DeployHistory))
-                                        .action("Prompt Library", Box::new(DeployPromptLibrary))
+                                        .action("Prompt Library", Box::new(OpenPromptLibrary))
                                        .action("Configure", Box::new(ShowConfiguration))
                                        .action(zoom_label, Box::new(ToggleZoom))
                                }))
@@ -342,12 +342,12 @@ impl AssistantPanel {
        window: &mut Window,
        cx: &mut Context<Workspace>,
    ) {
-        let settings = AssistantSettings::get_global(cx);
-        if !settings.enabled {
-            return;
+        if workspace
+            .panel::<Self>(cx)
+            .is_some_and(|panel| panel.read(cx).enabled(cx))
+        {
+            workspace.toggle_panel_focus::<Self>(window, cx);
        }
-
-        workspace.toggle_panel_focus::<Self>(window, cx);
    }

    fn watch_client_status(
@@ -595,12 +595,10 @@ impl AssistantPanel {
        window: &mut Window,
        cx: &mut Context<Workspace>,
    ) {
-        let settings = AssistantSettings::get_global(cx);
-        if !settings.enabled {
-            return;
-        }
-
-        let Some(assistant_panel) = workspace.panel::<AssistantPanel>(cx) else {
+        let Some(assistant_panel) = workspace
+            .panel::<AssistantPanel>(cx)
+            .filter(|panel| panel.read(cx).enabled(cx))
+        else {
            return;
        };

@@ -1028,7 +1026,7 @@ impl AssistantPanel {

    fn deploy_prompt_library(
        &mut self,
-        _: &DeployPromptLibrary,
+        _: &OpenPromptLibrary,
        _window: &mut Window,
        cx: &mut Context<Self>,
    ) {
@@ -1298,12 +1296,8 @@ impl Panel for AssistantPanel {
    }

    fn icon(&self, _: &Window, cx: &App) -> Option<IconName> {
-        let settings = AssistantSettings::get_global(cx);
-        if !settings.enabled || !settings.button {
-            return None;
-        }
-
-        Some(IconName::ZedAssistant)
+        (self.enabled(cx) && AssistantSettings::get_global(cx).button)
+            .then_some(IconName::ZedAssistant)
    }

    fn icon_tooltip(&self, _: &Window, _: &App) -> Option<&'static str> {
@@ -1317,6 +1311,10 @@ impl Panel for AssistantPanel {
    fn activation_priority(&self) -> u32 {
        4
    }
+
+    fn enabled(&self, cx: &App) -> bool {
+        Assistant::enabled(cx)
+    }
 }

 impl EventEmitter<PanelEvent> for AssistantPanel {}
--- a/crates/assistant/src/inline_assistant.rs
+++ b/crates/assistant/src/inline_assistant.rs
@@ -1,5 +1,6 @@
 use crate::{
-    AssistantPanel, AssistantPanelEvent, CycleNextInlineAssist, CyclePreviousInlineAssist,
+    Assistant, AssistantPanel, AssistantPanelEvent, CycleNextInlineAssist,
+    CyclePreviousInlineAssist,
 };
 use anyhow::{anyhow, Context as _, Result};
 use assistant_context_editor::{humanize_token_count, RequestType};
@@ -232,7 +233,7 @@ impl InlineAssistant {
    ) {
        let (snapshot, initial_selections) = editor.update(cx, |editor, cx| {
            (
-                editor.buffer().read(cx).snapshot(cx),
+                editor.snapshot(window, cx),
                editor.selections.all::<Point>(cx),
            )
        });
@@ -246,7 +247,37 @@ impl InlineAssistant {
                if selection.end.column == 0 {
                    selection.end.row -= 1;
                }
-                selection.end.column = snapshot.line_len(MultiBufferRow(selection.end.row));
+                selection.end.column = snapshot
+                    .buffer_snapshot
+                    .line_len(MultiBufferRow(selection.end.row));
+            } else if let Some(fold) =
+                snapshot.crease_for_buffer_row(MultiBufferRow(selection.end.row))
+            {
+                selection.start = fold.range().start;
+                selection.end = fold.range().end;
+                if MultiBufferRow(selection.end.row) < snapshot.buffer_snapshot.max_row() {
+                    let chars = snapshot
+                        .buffer_snapshot
+                        .chars_at(Point::new(selection.end.row + 1, 0));
+
+                    for c in chars {
+                        if c == '\n' {
+                            break;
+                        }
+                        if c.is_whitespace() {
+                            continue;
+                        }
+                        if snapshot
+                            .language_at(selection.end)
+                            .is_some_and(|language| language.config().brackets.is_closing_brace(c))
+                        {
+                            selection.end.row += 1;
+                            selection.end.column = snapshot
+                                .buffer_snapshot
+                                .line_len(MultiBufferRow(selection.end.row));
+                        }
+                    }
+                }
            }

            if let Some(prev_selection) = selections.last_mut() {
@@ -262,6 +293,7 @@ impl InlineAssistant {
            }
            selections.push(selection);
        }
+        let snapshot = &snapshot.buffer_snapshot;
        let newest_selection = newest_selection.unwrap();

        let mut codegen_ranges = Vec::new();
@@ -3524,7 +3556,7 @@ impl CodeActionProvider for AssistantCodeActionProvider {
        _: &mut Window,
        cx: &mut App,
    ) -> Task<Result<Vec<CodeAction>>> {
-        if !AssistantSettings::get_global(cx).enabled {
+        if !Assistant::enabled(cx) {
            return Task::ready(Ok(Vec::new()));
        }

@@ -3681,7 +3713,7 @@ mod tests {
        language_settings, tree_sitter_rust, Buffer, Language, LanguageConfig, LanguageMatcher,
        Point,
    };
-    use language_model::LanguageModelRegistry;
+    use language_model::{LanguageModelRegistry, TokenUsage};
    use rand::prelude::*;
    use serde::Serialize;
    use settings::SettingsStore;
@@ -4060,6 +4092,7 @@ mod tests {
                future::ready(Ok(LanguageModelTextStream {
                    message_id: None,
                    stream: chunks_rx.map(Ok).boxed(),
+                    last_token_usage: Arc::new(Mutex::new(TokenUsage::default())),
                })),
                cx,
            );
--- a/crates/assistant2/Cargo.toml
+++ b/crates/assistant2/Cargo.toml
@@ -31,6 +31,7 @@ clock.workspace = true
 collections.workspace = true
 command_palette_hooks.workspace = true
 context_server.workspace = true
+convert_case.workspace = true
 db.workspace = true
 editor.workspace = true
 feature_flags.workspace = true
@@ -44,6 +45,7 @@ gpui.workspace = true
 heed.workspace = true
 html_to_markdown.workspace = true
 http_client.workspace = true
+indexmap.workspace = true
 itertools.workspace = true
 language.workspace = true
 language_model.workspace = true
@@ -60,11 +62,12 @@ project.workspace = true
 prompt_library.workspace = true
 prompt_store.workspace = true
 proto.workspace = true
+release_channel.workspace = true
 rope.workspace = true
-scripting_tool.workspace = true
 serde.workspace = true
 serde_json.workspace = true
 settings.workspace = true
+smallvec.workspace = true
 smol.workspace = true
 streaming_diff.workspace = true
 telemetry.workspace = true
--- a/crates/assistant2/src/active_thread.rs
+++ b/crates/assistant2/src/active_thread.rs
--- a/crates/assistant2/src/agent_profile.rs
+++ b/crates/assistant2/src/agent_profile.rs
@@ -1,59 +0,0 @@
-use std::sync::Arc;
-
-use collections::HashMap;
-use gpui::SharedString;
-
-/// A profile for the Zed Agent that controls its behavior.
-#[derive(Debug, Clone)]
-pub struct AgentProfile {
-    /// The name of the profile.
-    pub name: SharedString,
-    pub tools: HashMap<Arc<str>, bool>,
-    #[allow(dead_code)]
-    pub context_servers: HashMap<Arc<str>, ContextServerPreset>,
-}
-
-#[derive(Debug, Clone)]
-pub struct ContextServerPreset {
-    #[allow(dead_code)]
-    pub tools: HashMap<Arc<str>, bool>,
-}
-
-impl AgentProfile {
-    pub fn read_only() -> Self {
-        Self {
-            name: "Read-only".into(),
-            tools: HashMap::from_iter([
-                ("diagnostics".into(), true),
-                ("fetch".into(), true),
-                ("list-directory".into(), true),
-                ("now".into(), true),
-                ("path-search".into(), true),
-                ("read-file".into(), true),
-                ("regex-search".into(), true),
-                ("thinking".into(), true),
-            ]),
-            context_servers: HashMap::default(),
-        }
-    }
-
-    pub fn code_writer() -> Self {
-        Self {
-            name: "Code Writer".into(),
-            tools: HashMap::from_iter([
-                ("bash".into(), true),
-                ("delete-path".into(), true),
-                ("diagnostics".into(), true),
-                ("edit-files".into(), true),
-                ("fetch".into(), true),
-                ("list-directory".into(), true),
-                ("now".into(), true),
-                ("path-search".into(), true),
-                ("read-file".into(), true),
-                ("regex-search".into(), true),
-                ("thinking".into(), true),
-            ]),
-            context_servers: HashMap::default(),
-        }
-    }
-}
--- a/crates/assistant2/src/assistant.rs
+++ b/crates/assistant2/src/assistant.rs
@@ -1,5 +1,4 @@
 mod active_thread;
-mod agent_profile;
 mod assistant_configuration;
 mod assistant_model_selector;
 mod assistant_panel;
@@ -12,12 +11,12 @@ mod history_store;
 mod inline_assistant;
 mod inline_prompt_editor;
 mod message_editor;
+mod profile_selector;
 mod terminal_codegen;
 mod terminal_inline_assistant;
 mod thread;
 mod thread_history;
 mod thread_store;
-mod tool_selector;
 mod tool_use;
 mod ui;

@@ -33,6 +32,7 @@ use prompt_store::PromptBuilder;
 use settings::Settings as _;

 pub use crate::active_thread::ActiveThread;
+use crate::assistant_configuration::{AddContextServerModal, ManageProfilesModal};
 pub use crate::assistant_panel::{AssistantPanel, ConcreteAssistantPanelDelegate};
 pub use crate::inline_assistant::InlineAssistant;
 pub use crate::thread::{Message, RequestKind, Thread, ThreadEvent};
@@ -47,6 +47,8 @@ actions!(
        RemoveAllContext,
        OpenHistory,
        OpenConfiguration,
+        ManageProfiles,
+        AddContextServer,
        RemoveSelectedThread,
        Chat,
        ChatMode,
@@ -87,6 +89,8 @@ pub fn init(
        client.telemetry().clone(),
        cx,
    );
+    cx.observe_new(AddContextServerModal::register).detach();
+    cx.observe_new(ManageProfilesModal::register).detach();

    feature_gate_assistant2_actions(cx);
 }
--- a/crates/assistant2/src/assistant_configuration.rs
+++ b/crates/assistant2/src/assistant_configuration.rs
@@ -1,3 +1,8 @@
+mod add_context_server_modal;
+mod manage_profiles_modal;
+mod profile_picker;
+mod tool_picker;
+
 use std::sync::Arc;

 use assistant_tool::{ToolSource, ToolWorkingSet};
@@ -5,13 +10,15 @@ use collections::HashMap;
 use context_server::manager::ContextServerManager;
 use gpui::{Action, AnyView, App, Entity, EventEmitter, FocusHandle, Focusable, Subscription};
 use language_model::{LanguageModelProvider, LanguageModelProviderId, LanguageModelRegistry};
-use ui::{
-    prelude::*, Disclosure, Divider, DividerColor, ElevationIndex, Indicator, Switch, Tooltip,
-};
+use ui::{prelude::*, Disclosure, Divider, DividerColor, ElevationIndex, Indicator, Switch};
 use util::ResultExt as _;
-use zed_actions::assistant::DeployPromptLibrary;
 use zed_actions::ExtensionCategoryFilter;

+pub(crate) use add_context_server_modal::AddContextServerModal;
+pub(crate) use manage_profiles_modal::ManageProfilesModal;
+
+use crate::AddContextServer;
+
 pub struct AssistantConfiguration {
    focus_handle: FocusHandle,
    configuration_views_by_provider: HashMap<LanguageModelProviderId, AnyView>,
@@ -170,7 +177,6 @@ impl AssistantConfiguration {

        v_flex()
            .p(DynamicSpacing::Base16.rems(cx))
-            .mt_1()
            .gap_2()
            .flex_1()
            .child(
@@ -195,6 +201,7 @@ impl AssistantConfiguration {
                let tool_count = tools.len();

                v_flex()
+                    .id(SharedString::from(context_server.id()))
                    .border_1()
                    .rounded_sm()
                    .border_color(cx.theme().colors().border)
@@ -308,8 +315,9 @@ impl AssistantConfiguration {
                                .icon(IconName::Plus)
                                .icon_size(IconSize::Small)
                                .icon_position(IconPosition::Start)
-                                .disabled(true)
-                                .tooltip(Tooltip::text("Not yet implemented")),
+                                .on_click(|_event, window, cx| {
+                                    window.dispatch_action(AddContextServer.boxed_clone(), cx)
+                                }),
                        ),
                    )
                    .child(
@@ -351,33 +359,6 @@ impl Render for AssistantConfiguration {
            .bg(cx.theme().colors().panel_background)
            .size_full()
            .overflow_y_scroll()
-            .child(
-                v_flex()
-                    .p(DynamicSpacing::Base16.rems(cx))
-                    .gap_2()
-                    .child(
-                        v_flex()
-                            .gap_0p5()
-                            .child(Headline::new("Prompt Library").size(HeadlineSize::Small))
-                            .child(
-                                Label::new("Create reusable prompts and tag which ones you want sent in every LLM interaction.")
-                                    .color(Color::Muted),
-                            ),
-                    )
-                    .child(
-                        Button::new("open-prompt-library", "Open Prompt Library")
-                            .style(ButtonStyle::Filled)
-                            .layer(ElevationIndex::ModalSurface)
-                            .full_width()
-                            .icon(IconName::Book)
-                            .icon_size(IconSize::Small)
-                            .icon_position(IconPosition::Start)
-                            .on_click(|_event, window, cx| {
-                                window.dispatch_action(DeployPromptLibrary.boxed_clone(), cx)
-                            }),
-                    ),
-            )
-            .child(Divider::horizontal().color(DividerColor::Border))
            .child(self.render_context_servers_section(cx))
            .child(Divider::horizontal().color(DividerColor::Border))
            .child(
--- a/crates/assistant2/src/assistant_configuration/add_context_server_modal.rs
+++ b/crates/assistant2/src/assistant_configuration/add_context_server_modal.rs
@@ -0,0 +1,164 @@
+use context_server::{ContextServerSettings, ServerCommand, ServerConfig};
+use editor::Editor;
+use gpui::{prelude::*, DismissEvent, Entity, EventEmitter, FocusHandle, Focusable, WeakEntity};
+use serde_json::json;
+use settings::update_settings_file;
+use ui::{prelude::*, Modal, ModalFooter, ModalHeader, Section, Tooltip};
+use workspace::{ModalView, Workspace};
+
+use crate::AddContextServer;
+
+pub struct AddContextServerModal {
+    workspace: WeakEntity<Workspace>,
+    name_editor: Entity<Editor>,
+    command_editor: Entity<Editor>,
+}
+
+impl AddContextServerModal {
+    pub fn register(
+        workspace: &mut Workspace,
+        _window: Option<&mut Window>,
+        _cx: &mut Context<Workspace>,
+    ) {
+        workspace.register_action(|workspace, _: &AddContextServer, window, cx| {
+            let workspace_handle = cx.entity().downgrade();
+            workspace.toggle_modal(window, cx, |window, cx| {
+                Self::new(workspace_handle, window, cx)
+            })
+        });
+    }
+
+    pub fn new(
+        workspace: WeakEntity<Workspace>,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> Self {
+        let name_editor = cx.new(|cx| Editor::single_line(window, cx));
+        let command_editor = cx.new(|cx| Editor::single_line(window, cx));
+
+        name_editor.update(cx, |editor, cx| {
+            editor.set_placeholder_text("Context server name", cx);
+        });
+
+        command_editor.update(cx, |editor, cx| {
+            editor.set_placeholder_text("Command to run the context server", cx);
+        });
+
+        Self {
+            name_editor,
+            command_editor,
+            workspace,
+        }
+    }
+
+    fn confirm(&mut self, cx: &mut Context<Self>) {
+        let name = self.name_editor.read(cx).text(cx).trim().to_string();
+        let command = self.command_editor.read(cx).text(cx).trim().to_string();
+
+        if name.is_empty() || command.is_empty() {
+            return;
+        }
+
+        let mut command_parts = command.split(' ').map(|part| part.trim().to_string());
+        let Some(path) = command_parts.next() else {
+            return;
+        };
+        let args = command_parts.collect::<Vec<_>>();
+
+        if let Some(workspace) = self.workspace.upgrade() {
+            workspace.update(cx, |workspace, cx| {
+                let fs = workspace.app_state().fs.clone();
+                update_settings_file::<ContextServerSettings>(fs.clone(), cx, |settings, _| {
+                    settings.context_servers.insert(
+                        name.into(),
+                        ServerConfig {
+                            command: Some(ServerCommand {
+                                path,
+                                args,
+                                env: None,
+                            }),
+                            settings: Some(json!({})),
+                        },
+                    );
+                });
+            });
+        }
+
+        cx.emit(DismissEvent);
+    }
+
+    fn cancel(&mut self, cx: &mut Context<Self>) {
+        cx.emit(DismissEvent);
+    }
+}
+
+impl ModalView for AddContextServerModal {}
+
+impl Focusable for AddContextServerModal {
+    fn focus_handle(&self, cx: &App) -> FocusHandle {
+        self.name_editor.focus_handle(cx).clone()
+    }
+}
+
+impl EventEmitter<DismissEvent> for AddContextServerModal {}
+
+impl Render for AddContextServerModal {
+    fn render(&mut self, _window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
+        let is_name_empty = self.name_editor.read(cx).text(cx).trim().is_empty();
+        let is_command_empty = self.command_editor.read(cx).text(cx).trim().is_empty();
+
+        div()
+            .elevation_3(cx)
+            .w(rems(34.))
+            .key_context("AddContextServerModal")
+            .on_action(cx.listener(|this, _: &menu::Cancel, _window, cx| this.cancel(cx)))
+            .on_action(cx.listener(|this, _: &menu::Confirm, _window, cx| this.confirm(cx)))
+            .capture_any_mouse_down(cx.listener(|this, _, window, cx| {
+                this.focus_handle(cx).focus(window);
+            }))
+            .on_mouse_down_out(cx.listener(|_this, _, _, cx| cx.emit(DismissEvent)))
+            .child(
+                Modal::new("add-context-server", None)
+                    .header(ModalHeader::new().headline("Add Context Server"))
+                    .section(
+                        Section::new()
+                            .child(
+                                v_flex()
+                                    .gap_1()
+                                    .child(Label::new("Name"))
+                                    .child(self.name_editor.clone()),
+                            )
+                            .child(
+                                v_flex()
+                                    .gap_1()
+                                    .child(Label::new("Command"))
+                                    .child(self.command_editor.clone()),
+                            ),
+                    )
+                    .footer(
+                        ModalFooter::new()
+                            .start_slot(
+                                Button::new("cancel", "Cancel").on_click(
+                                    cx.listener(|this, _event, _window, cx| this.cancel(cx)),
+                                ),
+                            )
+                            .end_slot(
+                                Button::new("add-server", "Add Server")
+                                    .disabled(is_name_empty || is_command_empty)
+                                    .map(|button| {
+                                        if is_name_empty {
+                                            button.tooltip(Tooltip::text("Name is required"))
+                                        } else if is_command_empty {
+                                            button.tooltip(Tooltip::text("Command is required"))
+                                        } else {
+                                            button
+                                        }
+                                    })
+                                    .on_click(
+                                        cx.listener(|this, _event, _window, cx| this.confirm(cx)),
+                                    ),
+                            ),
+                    ),
+            )
+    }
+}
--- a/crates/assistant2/src/assistant_configuration/manage_profiles_modal.rs
+++ b/crates/assistant2/src/assistant_configuration/manage_profiles_modal.rs
@@ -0,0 +1,464 @@
+mod profile_modal_header;
+
+use std::sync::Arc;
+
+use assistant_settings::{
+    AgentProfile, AgentProfileContent, AssistantSettings, AssistantSettingsContent,
+    ContextServerPresetContent, VersionedAssistantSettingsContent,
+};
+use assistant_tool::ToolWorkingSet;
+use convert_case::{Case, Casing as _};
+use editor::Editor;
+use fs::Fs;
+use gpui::{
+    prelude::*, DismissEvent, Entity, EventEmitter, FocusHandle, Focusable, Subscription,
+    WeakEntity,
+};
+use settings::{update_settings_file, Settings as _};
+use ui::{prelude::*, ListItem, ListItemSpacing, ListSeparator, Navigable, NavigableEntry};
+use workspace::{ModalView, Workspace};
+
+use crate::assistant_configuration::manage_profiles_modal::profile_modal_header::ProfileModalHeader;
+use crate::assistant_configuration::profile_picker::{ProfilePicker, ProfilePickerDelegate};
+use crate::assistant_configuration::tool_picker::{ToolPicker, ToolPickerDelegate};
+use crate::{AssistantPanel, ManageProfiles, ThreadStore};
+
+enum Mode {
+    ChooseProfile {
+        profile_picker: Entity<ProfilePicker>,
+        _subscription: Subscription,
+    },
+    NewProfile(NewProfileMode),
+    ViewProfile(ViewProfileMode),
+    ConfigureTools {
+        profile_id: Arc<str>,
+        tool_picker: Entity<ToolPicker>,
+        _subscription: Subscription,
+    },
+}
+
+impl Mode {
+    pub fn choose_profile(window: &mut Window, cx: &mut Context<ManageProfilesModal>) -> Self {
+        let this = cx.entity();
+
+        let profile_picker = cx.new(|cx| {
+            let delegate = ProfilePickerDelegate::new(
+                move |profile_id, window, cx| {
+                    this.update(cx, |this, cx| {
+                        this.view_profile(profile_id.clone(), window, cx);
+                    })
+                },
+                cx,
+            );
+            ProfilePicker::new(delegate, window, cx)
+        });
+        let dismiss_subscription = cx.subscribe_in(
+            &profile_picker,
+            window,
+            |_this, _profile_picker, _: &DismissEvent, _window, cx| {
+                cx.emit(DismissEvent);
+            },
+        );
+
+        Self::ChooseProfile {
+            profile_picker,
+            _subscription: dismiss_subscription,
+        }
+    }
+}
+
+#[derive(Clone)]
+pub struct ViewProfileMode {
+    profile_id: Arc<str>,
+    fork_profile: NavigableEntry,
+    configure_tools: NavigableEntry,
+}
+
+#[derive(Clone)]
+pub struct NewProfileMode {
+    name_editor: Entity<Editor>,
+    base_profile_id: Option<Arc<str>>,
+}
+
+pub struct ManageProfilesModal {
+    fs: Arc<dyn Fs>,
+    tools: Arc<ToolWorkingSet>,
+    thread_store: WeakEntity<ThreadStore>,
+    focus_handle: FocusHandle,
+    mode: Mode,
+}
+
+impl ManageProfilesModal {
+    pub fn register(
+        workspace: &mut Workspace,
+        _window: Option<&mut Window>,
+        _cx: &mut Context<Workspace>,
+    ) {
+        workspace.register_action(|workspace, _: &ManageProfiles, window, cx| {
+            if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
+                let fs = workspace.app_state().fs.clone();
+                let thread_store = panel.read(cx).thread_store();
+                let tools = thread_store.read(cx).tools();
+                let thread_store = thread_store.downgrade();
+                workspace.toggle_modal(window, cx, |window, cx| {
+                    Self::new(fs, tools, thread_store, window, cx)
+                })
+            }
+        });
+    }
+
+    pub fn new(
+        fs: Arc<dyn Fs>,
+        tools: Arc<ToolWorkingSet>,
+        thread_store: WeakEntity<ThreadStore>,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> Self {
+        let focus_handle = cx.focus_handle();
+
+        Self {
+            fs,
+            tools,
+            thread_store,
+            focus_handle,
+            mode: Mode::choose_profile(window, cx),
+        }
+    }
+
+    fn choose_profile(&mut self, window: &mut Window, cx: &mut Context<Self>) {
+        self.mode = Mode::choose_profile(window, cx);
+        self.focus_handle(cx).focus(window);
+    }
+
+    fn new_profile(
+        &mut self,
+        base_profile_id: Option<Arc<str>>,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) {
+        let name_editor = cx.new(|cx| Editor::single_line(window, cx));
+        name_editor.update(cx, |editor, cx| {
+            editor.set_placeholder_text("Profile name", cx);
+        });
+
+        self.mode = Mode::NewProfile(NewProfileMode {
+            name_editor,
+            base_profile_id,
+        });
+        self.focus_handle(cx).focus(window);
+    }
+
+    pub fn view_profile(
+        &mut self,
+        profile_id: Arc<str>,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) {
+        self.mode = Mode::ViewProfile(ViewProfileMode {
+            profile_id,
+            fork_profile: NavigableEntry::focusable(cx),
+            configure_tools: NavigableEntry::focusable(cx),
+        });
+        self.focus_handle(cx).focus(window);
+    }
+
+    fn configure_tools(
+        &mut self,
+        profile_id: Arc<str>,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) {
+        let settings = AssistantSettings::get_global(cx);
+        let Some(profile) = settings.profiles.get(&profile_id).cloned() else {
+            return;
+        };
+
+        let tool_picker = cx.new(|cx| {
+            let delegate = ToolPickerDelegate::new(
+                self.fs.clone(),
+                self.tools.clone(),
+                self.thread_store.clone(),
+                profile_id.clone(),
+                profile,
+                cx,
+            );
+            ToolPicker::new(delegate, window, cx)
+        });
+        let dismiss_subscription = cx.subscribe_in(&tool_picker, window, {
+            let profile_id = profile_id.clone();
+            move |this, _tool_picker, _: &DismissEvent, window, cx| {
+                this.view_profile(profile_id.clone(), window, cx);
+            }
+        });
+
+        self.mode = Mode::ConfigureTools {
+            profile_id,
+            tool_picker,
+            _subscription: dismiss_subscription,
+        };
+        self.focus_handle(cx).focus(window);
+    }
+
+    fn confirm(&mut self, window: &mut Window, cx: &mut Context<Self>) {
+        match &self.mode {
+            Mode::ChooseProfile { .. } => {}
+            Mode::NewProfile(mode) => {
+                let settings = AssistantSettings::get_global(cx);
+
+                let base_profile = mode
+                    .base_profile_id
+                    .as_ref()
+                    .and_then(|profile_id| settings.profiles.get(profile_id).cloned());
+
+                let name = mode.name_editor.read(cx).text(cx);
+                let profile_id: Arc<str> = name.to_case(Case::Kebab).into();
+
+                let profile = AgentProfile {
+                    name: name.into(),
+                    tools: base_profile
+                        .as_ref()
+                        .map(|profile| profile.tools.clone())
+                        .unwrap_or_default(),
+                    context_servers: base_profile
+                        .map(|profile| profile.context_servers)
+                        .unwrap_or_default(),
+                };
+
+                self.create_profile(profile_id.clone(), profile, cx);
+                self.view_profile(profile_id, window, cx);
+            }
+            Mode::ViewProfile(_) => {}
+            Mode::ConfigureTools { .. } => {}
+        }
+    }
+
+    fn cancel(&mut self, window: &mut Window, cx: &mut Context<Self>) {
+        match &self.mode {
+            Mode::ChooseProfile { .. } => {}
+            Mode::NewProfile(mode) => {
+                if let Some(profile_id) = mode.base_profile_id.clone() {
+                    self.view_profile(profile_id, window, cx);
+                } else {
+                    self.choose_profile(window, cx);
+                }
+            }
+            Mode::ViewProfile(_) => self.choose_profile(window, cx),
+            Mode::ConfigureTools { .. } => {}
+        }
+    }
+
+    fn create_profile(&self, profile_id: Arc<str>, profile: AgentProfile, cx: &mut Context<Self>) {
+        update_settings_file::<AssistantSettings>(self.fs.clone(), cx, {
+            move |settings, _cx| match settings {
+                AssistantSettingsContent::Versioned(VersionedAssistantSettingsContent::V2(
+                    settings,
+                )) => {
+                    let profiles = settings.profiles.get_or_insert_default();
+                    if profiles.contains_key(&profile_id) {
+                        log::error!("profile with ID '{profile_id}' already exists");
+                        return;
+                    }
+
+                    profiles.insert(
+                        profile_id,
+                        AgentProfileContent {
+                            name: profile.name.into(),
+                            tools: profile.tools,
+                            context_servers: profile
+                                .context_servers
+                                .into_iter()
+                                .map(|(server_id, preset)| {
+                                    (
+                                        server_id,
+                                        ContextServerPresetContent {
+                                            tools: preset.tools,
+                                        },
+                                    )
+                                })
+                                .collect(),
+                        },
+                    );
+                }
+                _ => {}
+            }
+        });
+    }
+}
+
+impl ModalView for ManageProfilesModal {}
+
+impl Focusable for ManageProfilesModal {
+    fn focus_handle(&self, cx: &App) -> FocusHandle {
+        match &self.mode {
+            Mode::ChooseProfile { profile_picker, .. } => profile_picker.focus_handle(cx),
+            Mode::NewProfile(mode) => mode.name_editor.focus_handle(cx),
+            Mode::ViewProfile(_) => self.focus_handle.clone(),
+            Mode::ConfigureTools { tool_picker, .. } => tool_picker.focus_handle(cx),
+        }
+    }
+}
+
+impl EventEmitter<DismissEvent> for ManageProfilesModal {}
+
+impl ManageProfilesModal {
+    fn render_new_profile(
+        &mut self,
+        mode: NewProfileMode,
+        _window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> impl IntoElement {
+        v_flex()
+            .id("new-profile")
+            .track_focus(&self.focus_handle(cx))
+            .child(h_flex().p_2().child(mode.name_editor.clone()))
+    }
+
+    fn render_view_profile(
+        &mut self,
+        mode: ViewProfileMode,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> impl IntoElement {
+        let settings = AssistantSettings::get_global(cx);
+
+        let profile_name = settings
+            .profiles
+            .get(&mode.profile_id)
+            .map(|profile| profile.name.clone())
+            .unwrap_or_else(|| "Unknown".into());
+
+        Navigable::new(
+            div()
+                .track_focus(&self.focus_handle(cx))
+                .size_full()
+                .child(ProfileModalHeader::new(
+                    profile_name,
+                    IconName::ZedAssistant,
+                ))
+                .child(
+                    v_flex()
+                        .pb_1()
+                        .child(ListSeparator)
+                        .child(
+                            div()
+                                .id("fork-profile")
+                                .track_focus(&mode.fork_profile.focus_handle)
+                                .on_action({
+                                    let profile_id = mode.profile_id.clone();
+                                    cx.listener(move |this, _: &menu::Confirm, window, cx| {
+                                        this.new_profile(Some(profile_id.clone()), window, cx);
+                                    })
+                                })
+                                .child(
+                                    ListItem::new("fork-profile")
+                                        .toggle_state(
+                                            mode.fork_profile
+                                                .focus_handle
+                                                .contains_focused(window, cx),
+                                        )
+                                        .inset(true)
+                                        .spacing(ListItemSpacing::Sparse)
+                                        .start_slot(Icon::new(IconName::GitBranch))
+                                        .child(Label::new("Fork Profile"))
+                                        .on_click({
+                                            let profile_id = mode.profile_id.clone();
+                                            cx.listener(move |this, _, window, cx| {
+                                                this.new_profile(
+                                                    Some(profile_id.clone()),
+                                                    window,
+                                                    cx,
+                                                );
+                                            })
+                                        }),
+                                ),
+                        )
+                        .child(
+                            div()
+                                .id("configure-tools")
+                                .track_focus(&mode.configure_tools.focus_handle)
+                                .on_action({
+                                    let profile_id = mode.profile_id.clone();
+                                    cx.listener(move |this, _: &menu::Confirm, window, cx| {
+                                        this.configure_tools(profile_id.clone(), window, cx);
+                                    })
+                                })
+                                .child(
+                                    ListItem::new("configure-tools")
+                                        .toggle_state(
+                                            mode.configure_tools
+                                                .focus_handle
+                                                .contains_focused(window, cx),
+                                        )
+                                        .inset(true)
+                                        .spacing(ListItemSpacing::Sparse)
+                                        .start_slot(Icon::new(IconName::Cog))
+                                        .child(Label::new("Configure Tools"))
+                                        .on_click({
+                                            let profile_id = mode.profile_id.clone();
+                                            cx.listener(move |this, _, window, cx| {
+                                                this.configure_tools(
+                                                    profile_id.clone(),
+                                                    window,
+                                                    cx,
+                                                );
+                                            })
+                                        }),
+                                ),
+                        ),
+                )
+                .into_any_element(),
+        )
+        .entry(mode.fork_profile)
+        .entry(mode.configure_tools)
+    }
+}
+
+impl Render for ManageProfilesModal {
+    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
+        let settings = AssistantSettings::get_global(cx);
+
+        div()
+            .elevation_3(cx)
+            .w(rems(34.))
+            .key_context("ManageProfilesModal")
+            .on_action(cx.listener(|this, _: &menu::Cancel, window, cx| this.cancel(window, cx)))
+            .on_action(cx.listener(|this, _: &menu::Confirm, window, cx| this.confirm(window, cx)))
+            .capture_any_mouse_down(cx.listener(|this, _, window, cx| {
+                this.focus_handle(cx).focus(window);
+            }))
+            .on_mouse_down_out(cx.listener(|_this, _, _, cx| cx.emit(DismissEvent)))
+            .child(match &self.mode {
+                Mode::ChooseProfile { profile_picker, .. } => div()
+                    .child(ProfileModalHeader::new("Profiles", IconName::ZedAssistant))
+                    .child(ListSeparator)
+                    .child(profile_picker.clone())
+                    .into_any_element(),
+                Mode::NewProfile(mode) => self
+                    .render_new_profile(mode.clone(), window, cx)
+                    .into_any_element(),
+                Mode::ViewProfile(mode) => self
+                    .render_view_profile(mode.clone(), window, cx)
+                    .into_any_element(),
+                Mode::ConfigureTools {
+                    profile_id,
+                    tool_picker,
+                    ..
+                } => {
+                    let profile_name = settings
+                        .profiles
+                        .get(profile_id)
+                        .map(|profile| profile.name.clone())
+                        .unwrap_or_else(|| "Unknown".into());
+
+                    div()
+                        .child(ProfileModalHeader::new(
+                            format!("{profile_name}: Configure Tools"),
+                            IconName::Cog,
+                        ))
+                        .child(ListSeparator)
+                        .child(tool_picker.clone())
+                        .into_any_element()
+                }
+            })
+    }
+}
--- a/crates/assistant2/src/assistant_configuration/manage_profiles_modal/profile_modal_header.rs
+++ b/crates/assistant2/src/assistant_configuration/manage_profiles_modal/profile_modal_header.rs
@@ -0,0 +1,38 @@
+use ui::prelude::*;
+
+#[derive(IntoElement)]
+pub struct ProfileModalHeader {
+    label: SharedString,
+    icon: IconName,
+}
+
+impl ProfileModalHeader {
+    pub fn new(label: impl Into<SharedString>, icon: IconName) -> Self {
+        Self {
+            label: label.into(),
+            icon,
+        }
+    }
+}
+
+impl RenderOnce for ProfileModalHeader {
+    fn render(self, _window: &mut Window, cx: &mut App) -> impl IntoElement {
+        h_flex()
+            .w_full()
+            .px(DynamicSpacing::Base12.rems(cx))
+            .pt(DynamicSpacing::Base08.rems(cx))
+            .pb(DynamicSpacing::Base04.rems(cx))
+            .rounded_t_sm()
+            .gap_1p5()
+            .child(Icon::new(self.icon).size(IconSize::XSmall))
+            .child(
+                h_flex().gap_1().overflow_x_hidden().child(
+                    div()
+                        .max_w_96()
+                        .overflow_x_hidden()
+                        .text_ellipsis()
+                        .child(Headline::new(self.label).size(HeadlineSize::XSmall)),
+                ),
+            )
+    }
+}
--- a/crates/assistant2/src/assistant_configuration/profile_picker.rs
+++ b/crates/assistant2/src/assistant_configuration/profile_picker.rs
@@ -0,0 +1,194 @@
+use std::sync::Arc;
+
+use assistant_settings::AssistantSettings;
+use fuzzy::{match_strings, StringMatch, StringMatchCandidate};
+use gpui::{
+    App, Context, DismissEvent, Entity, EventEmitter, Focusable, SharedString, Task, WeakEntity,
+    Window,
+};
+use picker::{Picker, PickerDelegate};
+use settings::Settings;
+use ui::{prelude::*, HighlightedLabel, ListItem, ListItemSpacing};
+use util::ResultExt as _;
+
+pub struct ProfilePicker {
+    picker: Entity<Picker<ProfilePickerDelegate>>,
+}
+
+impl ProfilePicker {
+    pub fn new(
+        delegate: ProfilePickerDelegate,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> Self {
+        let picker = cx.new(|cx| Picker::uniform_list(delegate, window, cx).modal(false));
+        Self { picker }
+    }
+}
+
+impl EventEmitter<DismissEvent> for ProfilePicker {}
+
+impl Focusable for ProfilePicker {
+    fn focus_handle(&self, cx: &App) -> gpui::FocusHandle {
+        self.picker.focus_handle(cx)
+    }
+}
+
+impl Render for ProfilePicker {
+    fn render(&mut self, _window: &mut Window, _cx: &mut Context<Self>) -> impl IntoElement {
+        v_flex().w(rems(34.)).child(self.picker.clone())
+    }
+}
+
+#[derive(Debug)]
+pub struct ProfileEntry {
+    pub id: Arc<str>,
+    pub name: SharedString,
+}
+
+pub struct ProfilePickerDelegate {
+    profile_picker: WeakEntity<ProfilePicker>,
+    profiles: Vec<ProfileEntry>,
+    matches: Vec<StringMatch>,
+    selected_index: usize,
+    on_confirm: Arc<dyn Fn(&Arc<str>, &mut Window, &mut App) + 'static>,
+}
+
+impl ProfilePickerDelegate {
+    pub fn new(
+        on_confirm: impl Fn(&Arc<str>, &mut Window, &mut App) + 'static,
+        cx: &mut Context<ProfilePicker>,
+    ) -> Self {
+        let settings = AssistantSettings::get_global(cx);
+
+        let profiles = settings
+            .profiles
+            .iter()
+            .map(|(id, profile)| ProfileEntry {
+                id: id.clone(),
+                name: profile.name.clone(),
+            })
+            .collect::<Vec<_>>();
+
+        Self {
+            profile_picker: cx.entity().downgrade(),
+            profiles,
+            matches: Vec::new(),
+            selected_index: 0,
+            on_confirm: Arc::new(on_confirm),
+        }
+    }
+}
+
+impl PickerDelegate for ProfilePickerDelegate {
+    type ListItem = ListItem;
+
+    fn match_count(&self) -> usize {
+        self.matches.len()
+    }
+
+    fn selected_index(&self) -> usize {
+        self.selected_index
+    }
+
+    fn set_selected_index(
+        &mut self,
+        ix: usize,
+        _window: &mut Window,
+        _cx: &mut Context<Picker<Self>>,
+    ) {
+        self.selected_index = ix;
+    }
+
+    fn placeholder_text(&self, _window: &mut Window, _cx: &mut App) -> Arc<str> {
+        "Search profiles…".into()
+    }
+
+    fn update_matches(
+        &mut self,
+        query: String,
+        window: &mut Window,
+        cx: &mut Context<Picker<Self>>,
+    ) -> Task<()> {
+        let background = cx.background_executor().clone();
+        let candidates = self
+            .profiles
+            .iter()
+            .enumerate()
+            .map(|(id, profile)| StringMatchCandidate::new(id, profile.name.as_ref()))
+            .collect::<Vec<_>>();
+
+        cx.spawn_in(window, async move |this, cx| {
+            let matches = if query.is_empty() {
+                candidates
+                    .into_iter()
+                    .enumerate()
+                    .map(|(index, candidate)| StringMatch {
+                        candidate_id: index,
+                        string: candidate.string,
+                        positions: Vec::new(),
+                        score: 0.,
+                    })
+                    .collect()
+            } else {
+                match_strings(
+                    &candidates,
+                    &query,
+                    false,
+                    100,
+                    &Default::default(),
+                    background,
+                )
+                .await
+            };
+
+            this.update(cx, |this, _cx| {
+                this.delegate.matches = matches;
+                this.delegate.selected_index = this
+                    .delegate
+                    .selected_index
+                    .min(this.delegate.matches.len().saturating_sub(1));
+            })
+            .log_err();
+        })
+    }
+
+    fn confirm(&mut self, _secondary: bool, window: &mut Window, cx: &mut Context<Picker<Self>>) {
+        if self.matches.is_empty() {
+            self.dismissed(window, cx);
+            return;
+        }
+
+        let candidate_id = self.matches[self.selected_index].candidate_id;
+        let profile = &self.profiles[candidate_id];
+
+        (self.on_confirm)(&profile.id, window, cx);
+    }
+
+    fn dismissed(&mut self, _window: &mut Window, cx: &mut Context<Picker<Self>>) {
+        self.profile_picker
+            .update(cx, |_this, cx| cx.emit(DismissEvent))
+            .log_err();
+    }
+
+    fn render_match(
+        &self,
+        ix: usize,
+        selected: bool,
+        _window: &mut Window,
+        _cx: &mut Context<Picker<Self>>,
+    ) -> Option<Self::ListItem> {
+        let profile_match = &self.matches[ix];
+
+        Some(
+            ListItem::new(ix)
+                .inset(true)
+                .spacing(ListItemSpacing::Sparse)
+                .toggle_state(selected)
+                .child(HighlightedLabel::new(
+                    profile_match.string.clone(),
+                    profile_match.positions.clone(),
+                )),
+        )
+    }
+}
--- a/crates/assistant2/src/assistant_configuration/tool_picker.rs
+++ b/crates/assistant2/src/assistant_configuration/tool_picker.rs
@@ -0,0 +1,299 @@
+use std::sync::Arc;
+
+use assistant_settings::{
+    AgentProfile, AgentProfileContent, AssistantSettings, AssistantSettingsContent,
+    ContextServerPresetContent, VersionedAssistantSettingsContent,
+};
+use assistant_tool::{ToolSource, ToolWorkingSet};
+use fs::Fs;
+use fuzzy::{match_strings, StringMatch, StringMatchCandidate};
+use gpui::{App, Context, DismissEvent, Entity, EventEmitter, Focusable, Task, WeakEntity, Window};
+use picker::{Picker, PickerDelegate};
+use settings::{update_settings_file, Settings as _};
+use ui::{prelude::*, HighlightedLabel, ListItem, ListItemSpacing};
+use util::ResultExt as _;
+
+use crate::ThreadStore;
+
+pub struct ToolPicker {
+    picker: Entity<Picker<ToolPickerDelegate>>,
+}
+
+impl ToolPicker {
+    pub fn new(delegate: ToolPickerDelegate, window: &mut Window, cx: &mut Context<Self>) -> Self {
+        let picker = cx.new(|cx| Picker::uniform_list(delegate, window, cx).modal(false));
+        Self { picker }
+    }
+}
+
+impl EventEmitter<DismissEvent> for ToolPicker {}
+
+impl Focusable for ToolPicker {
+    fn focus_handle(&self, cx: &App) -> gpui::FocusHandle {
+        self.picker.focus_handle(cx)
+    }
+}
+
+impl Render for ToolPicker {
+    fn render(&mut self, _window: &mut Window, _cx: &mut Context<Self>) -> impl IntoElement {
+        v_flex().w(rems(34.)).child(self.picker.clone())
+    }
+}
+
+#[derive(Debug, Clone)]
+pub struct ToolEntry {
+    pub name: Arc<str>,
+    pub source: ToolSource,
+}
+
+pub struct ToolPickerDelegate {
+    tool_picker: WeakEntity<ToolPicker>,
+    thread_store: WeakEntity<ThreadStore>,
+    fs: Arc<dyn Fs>,
+    tools: Vec<ToolEntry>,
+    profile_id: Arc<str>,
+    profile: AgentProfile,
+    matches: Vec<StringMatch>,
+    selected_index: usize,
+}
+
+impl ToolPickerDelegate {
+    pub fn new(
+        fs: Arc<dyn Fs>,
+        tool_set: Arc<ToolWorkingSet>,
+        thread_store: WeakEntity<ThreadStore>,
+        profile_id: Arc<str>,
+        profile: AgentProfile,
+        cx: &mut Context<ToolPicker>,
+    ) -> Self {
+        let mut tool_entries = Vec::new();
+
+        for (source, tools) in tool_set.tools_by_source(cx) {
+            tool_entries.extend(tools.into_iter().map(|tool| ToolEntry {
+                name: tool.name().into(),
+                source: source.clone(),
+            }));
+        }
+
+        Self {
+            tool_picker: cx.entity().downgrade(),
+            thread_store,
+            fs,
+            tools: tool_entries,
+            profile_id,
+            profile,
+            matches: Vec::new(),
+            selected_index: 0,
+        }
+    }
+}
+
+impl PickerDelegate for ToolPickerDelegate {
+    type ListItem = ListItem;
+
+    fn match_count(&self) -> usize {
+        self.matches.len()
+    }
+
+    fn selected_index(&self) -> usize {
+        self.selected_index
+    }
+
+    fn set_selected_index(
+        &mut self,
+        ix: usize,
+        _window: &mut Window,
+        _cx: &mut Context<Picker<Self>>,
+    ) {
+        self.selected_index = ix;
+    }
+
+    fn placeholder_text(&self, _window: &mut Window, _cx: &mut App) -> Arc<str> {
+        "Search tools…".into()
+    }
+
+    fn update_matches(
+        &mut self,
+        query: String,
+        window: &mut Window,
+        cx: &mut Context<Picker<Self>>,
+    ) -> Task<()> {
+        let background = cx.background_executor().clone();
+        let candidates = self
+            .tools
+            .iter()
+            .enumerate()
+            .map(|(id, profile)| StringMatchCandidate::new(id, profile.name.as_ref()))
+            .collect::<Vec<_>>();
+
+        cx.spawn_in(window, async move |this, cx| {
+            let matches = if query.is_empty() {
+                candidates
+                    .into_iter()
+                    .enumerate()
+                    .map(|(index, candidate)| StringMatch {
+                        candidate_id: index,
+                        string: candidate.string,
+                        positions: Vec::new(),
+                        score: 0.,
+                    })
+                    .collect()
+            } else {
+                match_strings(
+                    &candidates,
+                    &query,
+                    false,
+                    100,
+                    &Default::default(),
+                    background,
+                )
+                .await
+            };
+
+            this.update(cx, |this, _cx| {
+                this.delegate.matches = matches;
+                this.delegate.selected_index = this
+                    .delegate
+                    .selected_index
+                    .min(this.delegate.matches.len().saturating_sub(1));
+            })
+            .log_err();
+        })
+    }
+
+    fn confirm(&mut self, _secondary: bool, window: &mut Window, cx: &mut Context<Picker<Self>>) {
+        if self.matches.is_empty() {
+            self.dismissed(window, cx);
+            return;
+        }
+
+        let candidate_id = self.matches[self.selected_index].candidate_id;
+        let tool = &self.tools[candidate_id];
+
+        let is_enabled = match &tool.source {
+            ToolSource::Native => {
+                let is_enabled = self.profile.tools.entry(tool.name.clone()).or_default();
+                *is_enabled = !*is_enabled;
+                *is_enabled
+            }
+            ToolSource::ContextServer { id } => {
+                let preset = self
+                    .profile
+                    .context_servers
+                    .entry(id.clone().into())
+                    .or_default();
+                let is_enabled = preset.tools.entry(tool.name.clone()).or_default();
+                *is_enabled = !*is_enabled;
+                *is_enabled
+            }
+        };
+
+        let active_profile_id = &AssistantSettings::get_global(cx).default_profile;
+        if active_profile_id == &self.profile_id {
+            self.thread_store
+                .update(cx, |this, _cx| {
+                    this.load_profile(&self.profile);
+                })
+                .log_err();
+        }
+
+        update_settings_file::<AssistantSettings>(self.fs.clone(), cx, {
+            let profile_id = self.profile_id.clone();
+            let default_profile = self.profile.clone();
+            let tool = tool.clone();
+            move |settings, _cx| match settings {
+                AssistantSettingsContent::Versioned(VersionedAssistantSettingsContent::V2(
+                    settings,
+                )) => {
+                    let profiles = settings.profiles.get_or_insert_default();
+                    let profile =
+                        profiles
+                            .entry(profile_id)
+                            .or_insert_with(|| AgentProfileContent {
+                                name: default_profile.name.into(),
+                                tools: default_profile.tools,
+                                context_servers: default_profile
+                                    .context_servers
+                                    .into_iter()
+                                    .map(|(server_id, preset)| {
+                                        (
+                                            server_id,
+                                            ContextServerPresetContent {
+                                                tools: preset.tools,
+                                            },
+                                        )
+                                    })
+                                    .collect(),
+                            });
+
+                    match tool.source {
+                        ToolSource::Native => {
+                            *profile.tools.entry(tool.name).or_default() = is_enabled;
+                        }
+                        ToolSource::ContextServer { id } => {
+                            let preset = profile
+                                .context_servers
+                                .entry(id.clone().into())
+                                .or_default();
+                            *preset.tools.entry(tool.name.clone()).or_default() = is_enabled;
+                        }
+                    }
+                }
+                _ => {}
+            }
+        });
+    }
+
+    fn dismissed(&mut self, _window: &mut Window, cx: &mut Context<Picker<Self>>) {
+        self.tool_picker
+            .update(cx, |_this, cx| cx.emit(DismissEvent))
+            .log_err();
+    }
+
+    fn render_match(
+        &self,
+        ix: usize,
+        selected: bool,
+        _window: &mut Window,
+        _cx: &mut Context<Picker<Self>>,
+    ) -> Option<Self::ListItem> {
+        let tool_match = &self.matches[ix];
+        let tool = &self.tools[tool_match.candidate_id];
+
+        let is_enabled = match &tool.source {
+            ToolSource::Native => self.profile.tools.get(&tool.name).copied().unwrap_or(false),
+            ToolSource::ContextServer { id } => self
+                .profile
+                .context_servers
+                .get(id.as_ref())
+                .and_then(|preset| preset.tools.get(&tool.name))
+                .copied()
+                .unwrap_or(false),
+        };
+
+        Some(
+            ListItem::new(ix)
+                .inset(true)
+                .spacing(ListItemSpacing::Sparse)
+                .toggle_state(selected)
+                .child(
+                    h_flex()
+                        .gap_2()
+                        .child(HighlightedLabel::new(
+                            tool_match.string.clone(),
+                            tool_match.positions.clone(),
+                        ))
+                        .map(|parent| match &tool.source {
+                            ToolSource::Native => parent,
+                            ToolSource::ContextServer { id } => parent
+                                .child(Label::new(id).size(LabelSize::XSmall).color(Color::Muted)),
+                        }),
+                )
+                .end_slot::<Icon>(is_enabled.then(|| {
+                    Icon::new(IconName::Check)
+                        .size(IconSize::Small)
+                        .color(Color::Success)
+                })),
+        )
+    }
+}
--- a/crates/assistant2/src/assistant_panel.rs
+++ b/crates/assistant2/src/assistant_panel.rs
@@ -14,9 +14,9 @@ use client::zed_urls;
 use editor::{Editor, MultiBuffer};
 use fs::Fs;
 use gpui::{
-    prelude::*, Action, AnyElement, App, AsyncWindowContext, Corner, Entity, EventEmitter,
-    FocusHandle, Focusable, FontWeight, KeyContext, Pixels, Subscription, Task, UpdateGlobal,
-    WeakEntity,
+    action_with_deprecated_aliases, prelude::*, Action, AnyElement, App, AsyncWindowContext,
+    Corner, Entity, EventEmitter, FocusHandle, Focusable, FontWeight, KeyContext, Pixels,
+    Subscription, Task, UpdateGlobal, WeakEntity,
 };
 use language::LanguageRegistry;
 use language_model::{LanguageModelProviderTosView, LanguageModelRegistry};
@@ -29,7 +29,7 @@ use ui::{prelude::*, ContextMenu, KeyBinding, PopoverMenu, PopoverMenuHandle, Ta
 use util::ResultExt as _;
 use workspace::dock::{DockPosition, Panel, PanelEvent};
 use workspace::Workspace;
-use zed_actions::assistant::{DeployPromptLibrary, ToggleFocus};
+use zed_actions::assistant::ToggleFocus;

 use crate::active_thread::ActiveThread;
 use crate::assistant_configuration::{AssistantConfiguration, AssistantConfigurationEvent};
@@ -43,6 +43,12 @@ use crate::{
    OpenHistory,
 };

+action_with_deprecated_aliases!(
+    assistant,
+    OpenPromptLibrary,
+    ["assistant::DeployPromptLibrary"]
+);
+
 pub fn init(cx: &mut App) {
    cx.observe_new(
        |workspace: &mut Workspace, _window, _cx: &mut Context<Workspace>| {
@@ -65,6 +71,14 @@ pub fn init(cx: &mut App) {
                        panel.update(cx, |panel, cx| panel.new_prompt_editor(window, cx));
                    }
                })
+                .register_action(|workspace, _: &OpenPromptLibrary, window, cx| {
+                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
+                        workspace.focus_panel::<AssistantPanel>(window, cx);
+                        panel.update(cx, |panel, cx| {
+                            panel.deploy_prompt_library(&OpenPromptLibrary, window, cx)
+                        });
+                    }
+                })
                .register_action(|workspace, _: &OpenConfiguration, window, cx| {
                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
                        workspace.focus_panel::<AssistantPanel>(window, cx);
@@ -174,6 +188,7 @@ impl AssistantPanel {
                thread_store.clone(),
                language_registry.clone(),
                message_editor_context_store.clone(),
+                workspace.clone(),
                window,
                cx,
            )
@@ -210,12 +225,12 @@ impl AssistantPanel {
        window: &mut Window,
        cx: &mut Context<Workspace>,
    ) {
-        let settings = AssistantSettings::get_global(cx);
-        if !settings.enabled {
-            return;
+        if workspace
+            .panel::<Self>(cx)
+            .is_some_and(|panel| panel.read(cx).enabled(cx))
+        {
+            workspace.toggle_panel_focus::<Self>(window, cx);
        }
-
-        workspace.toggle_panel_focus::<Self>(window, cx);
    }

    pub(crate) fn local_timezone(&self) -> UtcOffset {
@@ -252,6 +267,7 @@ impl AssistantPanel {
                self.thread_store.clone(),
                self.language_registry.clone(),
                message_editor_context_store.clone(),
+                self.workspace.clone(),
                window,
                cx,
            )
@@ -301,7 +317,7 @@ impl AssistantPanel {

    fn deploy_prompt_library(
        &mut self,
-        _: &DeployPromptLibrary,
+        _: &OpenPromptLibrary,
        _window: &mut Window,
        cx: &mut Context<Self>,
    ) {
@@ -389,6 +405,7 @@ impl AssistantPanel {
                        this.thread_store.clone(),
                        this.language_registry.clone(),
                        message_editor_context_store.clone(),
+                        this.workspace.clone(),
                        window,
                        cx,
                    )
@@ -455,7 +472,7 @@ impl AssistantPanel {

            workspace.update_in(cx, |workspace, window, cx| {
                let thread = thread.read(cx);
-                let markdown = thread.to_markdown()?;
+                let markdown = thread.to_markdown(cx)?;
                let thread_summary = thread
                    .summary()
                    .map(|summary| summary.to_string())
@@ -620,12 +637,8 @@ impl Panel for AssistantPanel {
    }

    fn icon(&self, _window: &Window, cx: &App) -> Option<IconName> {
-        let settings = AssistantSettings::get_global(cx);
-        if !settings.enabled || !settings.button {
-            return None;
-        }
-
-        Some(IconName::ZedAssistant)
+        (self.enabled(cx) && AssistantSettings::get_global(cx).button)
+            .then_some(IconName::ZedAssistant)
    }

    fn icon_tooltip(&self, _window: &Window, _cx: &App) -> Option<&'static str> {
@@ -639,6 +652,10 @@ impl Panel for AssistantPanel {
    fn activation_priority(&self) -> u32 {
        3
    }
+
+    fn enabled(&self, cx: &App) -> bool {
+        AssistantSettings::get_global(cx).enabled
+    }
 }

 impl AssistantPanel {
@@ -922,8 +939,8 @@ impl AssistantPanel {
                    ThreadError::MaxMonthlySpendReached => {
                        self.render_max_monthly_spend_reached_error(cx)
                    }
-                    ThreadError::Message(error_message) => {
-                        self.render_error_message(&error_message, cx)
+                    ThreadError::Message { header, message } => {
+                        self.render_error_message(header, message, cx)
                    }
                })
                .into_any(),
@@ -1026,7 +1043,8 @@ impl AssistantPanel {

    fn render_error_message(
        &self,
-        error_message: &SharedString,
+        header: SharedString,
+        message: SharedString,
        cx: &mut Context<Self>,
    ) -> AnyElement {
        v_flex()
@@ -1036,17 +1054,14 @@ impl AssistantPanel {
                    .gap_1p5()
                    .items_center()
                    .child(Icon::new(IconName::XCircle).color(Color::Error))
-                    .child(
-                        Label::new("Error interacting with language model")
-                            .weight(FontWeight::MEDIUM),
-                    ),
+                    .child(Label::new(header).weight(FontWeight::MEDIUM)),
            )
            .child(
                div()
                    .id("error-message")
                    .max_h_32()
                    .overflow_y_scroll()
-                    .child(Label::new(error_message.clone())),
+                    .child(Label::new(message)),
            )
            .child(
                h_flex()
--- a/crates/assistant2/src/buffer_codegen.rs
+++ b/crates/assistant2/src/buffer_codegen.rs
@@ -482,11 +482,17 @@ impl CodegenAlternative {

        self.generation = cx.spawn(async move |codegen, cx| {
            let stream = stream.await;
+            let token_usage = stream
+                .as_ref()
+                .ok()
+                .map(|stream| stream.last_token_usage.clone());
            let message_id = stream
                .as_ref()
                .ok()
                .and_then(|stream| stream.message_id.clone());
            let generate = async {
+                let model_telemetry_id = model_telemetry_id.clone();
+                let model_provider_id = model_provider_id.clone();
                let (mut diff_tx, mut diff_rx) = mpsc::channel(1);
                let executor = cx.background_executor().clone();
                let message_id = message_id.clone();
@@ -596,7 +602,7 @@ impl CodegenAlternative {
                                kind: AssistantKind::Inline,
                                phase: AssistantPhase::Response,
                                model: model_telemetry_id,
-                                model_provider: model_provider_id.to_string(),
+                                model_provider: model_provider_id,
                                response_latency,
                                error_message,
                                language_name: language_name.map(|name| name.to_proto()),
@@ -677,6 +683,16 @@ impl CodegenAlternative {
                    }
                    this.elapsed_time = Some(elapsed_time);
                    this.completion = Some(completion.lock().clone());
+                    if let Some(usage) = token_usage {
+                        let usage = usage.lock();
+                        telemetry::event!(
+                            "Inline Assistant Completion",
+                            model = model_telemetry_id,
+                            model_provider = model_provider_id,
+                            input_tokens = usage.input_tokens,
+                            output_tokens = usage.output_tokens,
+                        )
+                    }
                    cx.emit(CodegenEvent::Finished);
                    cx.notify();
                })
@@ -1021,7 +1037,7 @@ mod tests {
        language_settings, tree_sitter_rust, Buffer, Language, LanguageConfig, LanguageMatcher,
        Point,
    };
-    use language_model::LanguageModelRegistry;
+    use language_model::{LanguageModelRegistry, TokenUsage};
    use rand::prelude::*;
    use serde::Serialize;
    use settings::SettingsStore;
@@ -1405,6 +1421,7 @@ mod tests {
                future::ready(Ok(LanguageModelTextStream {
                    message_id: None,
                    stream: chunks_rx.map(Ok).boxed(),
+                    last_token_usage: Arc::new(Mutex::new(TokenUsage::default())),
                })),
                cx,
            );
--- a/crates/assistant2/src/context_picker.rs
+++ b/crates/assistant2/src/context_picker.rs
@@ -1,19 +1,28 @@
+mod completion_provider;
 mod fetch_context_picker;
 mod file_context_picker;
 mod thread_context_picker;

+use std::ops::Range;
 use std::path::PathBuf;
 use std::sync::Arc;

 use anyhow::{anyhow, Result};
-use editor::Editor;
+use editor::display_map::{Crease, FoldId};
+use editor::{Anchor, AnchorRangeExt as _, Editor, ExcerptId, FoldPlaceholder, ToOffset};
 use file_context_picker::render_file_context_entry;
-use gpui::{App, DismissEvent, Entity, EventEmitter, FocusHandle, Focusable, Task, WeakEntity};
+use gpui::{
+    App, DismissEvent, Empty, Entity, EventEmitter, FocusHandle, Focusable, Task, WeakEntity,
+};
+use multi_buffer::MultiBufferRow;
 use project::ProjectPath;
 use thread_context_picker::{render_thread_context_entry, ThreadContextEntry};
-use ui::{prelude::*, ContextMenu, ContextMenuEntry, ContextMenuItem};
+use ui::{
+    prelude::*, ButtonLike, ContextMenu, ContextMenuEntry, ContextMenuItem, Disclosure, TintColor,
+};
 use workspace::{notifications::NotifyResultExt, Workspace};

+pub use crate::context_picker::completion_provider::ContextPickerCompletionProvider;
 use crate::context_picker::fetch_context_picker::FetchContextPicker;
 use crate::context_picker::file_context_picker::FileContextPicker;
 use crate::context_picker::thread_context_picker::ThreadContextPicker;
@@ -34,10 +43,31 @@ enum ContextPickerMode {
    Thread,
 }

+impl TryFrom<&str> for ContextPickerMode {
+    type Error = String;
+
+    fn try_from(value: &str) -> Result<Self, Self::Error> {
+        match value {
+            "file" => Ok(Self::File),
+            "fetch" => Ok(Self::Fetch),
+            "thread" => Ok(Self::Thread),
+            _ => Err(format!("Invalid context picker mode: {}", value)),
+        }
+    }
+}
+
 impl ContextPickerMode {
+    pub fn mention_prefix(&self) -> &'static str {
+        match self {
+            Self::File => "file",
+            Self::Fetch => "fetch",
+            Self::Thread => "thread",
+        }
+    }
+
    pub fn label(&self) -> &'static str {
        match self {
-            Self::File => "File/Directory",
+            Self::File => "Files & Directories",
            Self::Fetch => "Fetch",
            Self::Thread => "Thread",
        }
@@ -63,7 +93,6 @@ enum ContextPickerState {
 pub(super) struct ContextPicker {
    mode: ContextPickerState,
    workspace: WeakEntity<Workspace>,
-    editor: WeakEntity<Editor>,
    context_store: WeakEntity<ContextStore>,
    thread_store: Option<WeakEntity<ThreadStore>>,
    confirm_behavior: ConfirmBehavior,
@@ -74,7 +103,6 @@ impl ContextPicker {
        workspace: WeakEntity<Workspace>,
        thread_store: Option<WeakEntity<ThreadStore>>,
        context_store: WeakEntity<ContextStore>,
-        editor: WeakEntity<Editor>,
        confirm_behavior: ConfirmBehavior,
        window: &mut Window,
        cx: &mut Context<Self>,
@@ -88,7 +116,6 @@ impl ContextPicker {
            workspace,
            context_store,
            thread_store,
-            editor,
            confirm_behavior,
        }
    }
@@ -109,10 +136,7 @@ impl ContextPicker {
                .enumerate()
                .map(|(ix, entry)| self.recent_menu_item(context_picker.clone(), ix, entry));

-            let mut modes = vec![ContextPickerMode::File, ContextPickerMode::Fetch];
-            if self.allow_threads() {
-                modes.push(ContextPickerMode::Thread);
-            }
+            let modes = supported_context_picker_modes(&self.thread_store);

            let menu = menu
                .when(has_recent, |menu| {
@@ -174,7 +198,6 @@ impl ContextPicker {
                    FileContextPicker::new(
                        context_picker.clone(),
                        self.workspace.clone(),
-                        self.editor.clone(),
                        self.context_store.clone(),
                        self.confirm_behavior,
                        window,
@@ -278,7 +301,7 @@ impl ContextPicker {
        };

        let task = context_store.update(cx, |context_store, cx| {
-            context_store.add_file_from_path(project_path.clone(), cx)
+            context_store.add_file_from_path(project_path.clone(), true, cx)
        });

        cx.spawn_in(window, async move |_, cx| task.await.notify_async_err(cx))
@@ -308,7 +331,7 @@ impl ContextPicker {
        cx.spawn(async move |this, cx| {
            let thread = open_thread_task.await?;
            context_store.update(cx, |context_store, cx| {
-                context_store.add_thread(thread, cx);
+                context_store.add_thread(thread, true, cx);
            })?;

            this.update(cx, |_this, cx| cx.notify())
@@ -328,7 +351,7 @@ impl ContextPicker {

        let mut current_files = context_store.file_paths(cx);

-        if let Some(active_path) = Self::active_singleton_buffer_path(&workspace, cx) {
+        if let Some(active_path) = active_singleton_buffer_path(&workspace, cx) {
            current_files.insert(active_path);
        }

@@ -384,16 +407,6 @@ impl ContextPicker {

        recent
    }
-
-    fn active_singleton_buffer_path(workspace: &Workspace, cx: &App) -> Option<PathBuf> {
-        let active_item = workspace.active_item(cx)?;
-
-        let editor = active_item.to_any().downcast::<Editor>().ok()?.read(cx);
-        let buffer = editor.buffer().read(cx).as_singleton()?;
-
-        let path = buffer.read(cx).file()?.path().to_path_buf();
-        Some(path)
-    }
 }

 impl EventEmitter<DismissEvent> for ContextPicker {}
@@ -429,3 +442,212 @@ enum RecentEntry {
    },
    Thread(ThreadContextEntry),
 }
+
+fn supported_context_picker_modes(
+    thread_store: &Option<WeakEntity<ThreadStore>>,
+) -> Vec<ContextPickerMode> {
+    let mut modes = vec![ContextPickerMode::File, ContextPickerMode::Fetch];
+    if thread_store.is_some() {
+        modes.push(ContextPickerMode::Thread);
+    }
+    modes
+}
+
+fn active_singleton_buffer_path(workspace: &Workspace, cx: &App) -> Option<PathBuf> {
+    let active_item = workspace.active_item(cx)?;
+
+    let editor = active_item.to_any().downcast::<Editor>().ok()?.read(cx);
+    let buffer = editor.buffer().read(cx).as_singleton()?;
+
+    let path = buffer.read(cx).file()?.path().to_path_buf();
+    Some(path)
+}
+
+fn recent_context_picker_entries(
+    context_store: Entity<ContextStore>,
+    thread_store: Option<WeakEntity<ThreadStore>>,
+    workspace: Entity<Workspace>,
+    cx: &App,
+) -> Vec<RecentEntry> {
+    let mut recent = Vec::with_capacity(6);
+
+    let mut current_files = context_store.read(cx).file_paths(cx);
+
+    let workspace = workspace.read(cx);
+
+    if let Some(active_path) = active_singleton_buffer_path(workspace, cx) {
+        current_files.insert(active_path);
+    }
+
+    let project = workspace.project().read(cx);
+
+    recent.extend(
+        workspace
+            .recent_navigation_history_iter(cx)
+            .filter(|(path, _)| !current_files.contains(&path.path.to_path_buf()))
+            .take(4)
+            .filter_map(|(project_path, _)| {
+                project
+                    .worktree_for_id(project_path.worktree_id, cx)
+                    .map(|worktree| RecentEntry::File {
+                        project_path,
+                        path_prefix: worktree.read(cx).root_name().into(),
+                    })
+            }),
+    );
+
+    let mut current_threads = context_store.read(cx).thread_ids();
+
+    if let Some(active_thread) = workspace
+        .panel::<AssistantPanel>(cx)
+        .map(|panel| panel.read(cx).active_thread(cx))
+    {
+        current_threads.insert(active_thread.read(cx).id().clone());
+    }
+
+    if let Some(thread_store) = thread_store.and_then(|thread_store| thread_store.upgrade()) {
+        recent.extend(
+            thread_store
+                .read(cx)
+                .threads()
+                .into_iter()
+                .filter(|thread| !current_threads.contains(&thread.id))
+                .take(2)
+                .map(|thread| {
+                    RecentEntry::Thread(ThreadContextEntry {
+                        id: thread.id,
+                        summary: thread.summary,
+                    })
+                }),
+        );
+    }
+
+    recent
+}
+
+pub(crate) fn insert_crease_for_mention(
+    excerpt_id: ExcerptId,
+    crease_start: text::Anchor,
+    content_len: usize,
+    crease_label: SharedString,
+    crease_icon_path: SharedString,
+    editor_entity: Entity<Editor>,
+    window: &mut Window,
+    cx: &mut App,
+) {
+    editor_entity.update(cx, |editor, cx| {
+        let snapshot = editor.buffer().read(cx).snapshot(cx);
+
+        let Some(start) = snapshot.anchor_in_excerpt(excerpt_id, crease_start) else {
+            return;
+        };
+
+        let end = snapshot.anchor_before(start.to_offset(&snapshot) + content_len);
+
+        let placeholder = FoldPlaceholder {
+            render: render_fold_icon_button(
+                crease_icon_path,
+                crease_label,
+                editor_entity.downgrade(),
+            ),
+            ..Default::default()
+        };
+
+        let render_trailer =
+            move |_row, _unfold, _window: &mut Window, _cx: &mut App| Empty.into_any();
+
+        let crease = Crease::inline(
+            start..end,
+            placeholder.clone(),
+            fold_toggle("mention"),
+            render_trailer,
+        );
+
+        editor.insert_creases(vec![crease.clone()], cx);
+        editor.fold_creases(vec![crease], false, window, cx);
+    });
+}
+
+fn render_fold_icon_button(
+    icon_path: SharedString,
+    label: SharedString,
+    editor: WeakEntity<Editor>,
+) -> Arc<dyn Send + Sync + Fn(FoldId, Range<Anchor>, &mut App) -> AnyElement> {
+    Arc::new({
+        move |fold_id, fold_range, cx| {
+            let is_in_text_selection = editor.upgrade().is_some_and(|editor| {
+                editor.update(cx, |editor, cx| {
+                    let snapshot = editor
+                        .buffer()
+                        .update(cx, |multi_buffer, cx| multi_buffer.snapshot(cx));
+
+                    let is_in_pending_selection = || {
+                        editor
+                            .selections
+                            .pending
+                            .as_ref()
+                            .is_some_and(|pending_selection| {
+                                pending_selection
+                                    .selection
+                                    .range()
+                                    .includes(&fold_range, &snapshot)
+                            })
+                    };
+
+                    let mut is_in_complete_selection = || {
+                        editor
+                            .selections
+                            .disjoint_in_range::<usize>(fold_range.clone(), cx)
+                            .into_iter()
+                            .any(|selection| {
+                                // This is needed to cover a corner case, if we just check for an existing
+                                // selection in the fold range, having a cursor at the start of the fold
+                                // marks it as selected. Non-empty selections don't cause this.
+                                let length = selection.end - selection.start;
+                                length > 0
+                            })
+                    };
+
+                    is_in_pending_selection() || is_in_complete_selection()
+                })
+            });
+
+            ButtonLike::new(fold_id)
+                .style(ButtonStyle::Filled)
+                .selected_style(ButtonStyle::Tinted(TintColor::Accent))
+                .toggle_state(is_in_text_selection)
+                .child(
+                    h_flex()
+                        .gap_1()
+                        .child(
+                            Icon::from_path(icon_path.clone())
+                                .size(IconSize::Small)
+                                .color(Color::Muted),
+                        )
+                        .child(
+                            Label::new(label.clone())
+                                .size(LabelSize::Small)
+                                .single_line(),
+                        ),
+                )
+                .into_any_element()
+        }
+    })
+}
+
+fn fold_toggle(
+    name: &'static str,
+) -> impl Fn(
+    MultiBufferRow,
+    bool,
+    Arc<dyn Fn(bool, &mut Window, &mut App) + Send + Sync>,
+    &mut Window,
+    &mut App,
+) -> AnyElement {
+    move |row, is_folded, fold, _window, _cx| {
+        Disclosure::new((name, row.0 as u64), !is_folded)
+            .toggle_state(is_folded)
+            .on_click(move |_e, window, cx| fold(!is_folded, window, cx))
+            .into_any_element()
+    }
+}
--- a/crates/assistant2/src/context_picker/completion_provider.rs
+++ b/crates/assistant2/src/context_picker/completion_provider.rs
@@ -0,0 +1,966 @@
+use std::cell::RefCell;
+use std::ops::Range;
+use std::path::Path;
+use std::rc::Rc;
+use std::sync::atomic::AtomicBool;
+use std::sync::Arc;
+
+use anyhow::Result;
+use editor::{CompletionProvider, Editor, ExcerptId};
+use file_icons::FileIcons;
+use gpui::{App, Entity, Task, WeakEntity};
+use http_client::HttpClientWithUrl;
+use language::{Buffer, CodeLabel, HighlightId};
+use lsp::CompletionContext;
+use project::{Completion, CompletionIntent, ProjectPath, WorktreeId};
+use rope::Point;
+use text::{Anchor, ToPoint};
+use ui::prelude::*;
+use workspace::Workspace;
+
+use crate::context::AssistantContext;
+use crate::context_store::ContextStore;
+use crate::thread_store::ThreadStore;
+
+use super::fetch_context_picker::fetch_url_content;
+use super::thread_context_picker::ThreadContextEntry;
+use super::{recent_context_picker_entries, supported_context_picker_modes, ContextPickerMode};
+
+pub struct ContextPickerCompletionProvider {
+    workspace: WeakEntity<Workspace>,
+    context_store: WeakEntity<ContextStore>,
+    thread_store: Option<WeakEntity<ThreadStore>>,
+    editor: WeakEntity<Editor>,
+}
+
+impl ContextPickerCompletionProvider {
+    pub fn new(
+        workspace: WeakEntity<Workspace>,
+        context_store: WeakEntity<ContextStore>,
+        thread_store: Option<WeakEntity<ThreadStore>>,
+        editor: WeakEntity<Editor>,
+    ) -> Self {
+        Self {
+            workspace,
+            context_store,
+            thread_store,
+            editor,
+        }
+    }
+
+    fn default_completions(
+        excerpt_id: ExcerptId,
+        source_range: Range<Anchor>,
+        context_store: Entity<ContextStore>,
+        thread_store: Option<WeakEntity<ThreadStore>>,
+        editor: Entity<Editor>,
+        workspace: Entity<Workspace>,
+        cx: &App,
+    ) -> Vec<Completion> {
+        let mut completions = Vec::new();
+
+        completions.extend(
+            recent_context_picker_entries(
+                context_store.clone(),
+                thread_store.clone(),
+                workspace.clone(),
+                cx,
+            )
+            .iter()
+            .filter_map(|entry| match entry {
+                super::RecentEntry::File {
+                    project_path,
+                    path_prefix,
+                } => Some(Self::completion_for_path(
+                    project_path.clone(),
+                    path_prefix,
+                    true,
+                    false,
+                    excerpt_id,
+                    source_range.clone(),
+                    editor.clone(),
+                    context_store.clone(),
+                    cx,
+                )),
+                super::RecentEntry::Thread(thread_context_entry) => {
+                    let thread_store = thread_store
+                        .as_ref()
+                        .and_then(|thread_store| thread_store.upgrade())?;
+                    Some(Self::completion_for_thread(
+                        thread_context_entry.clone(),
+                        excerpt_id,
+                        source_range.clone(),
+                        true,
+                        editor.clone(),
+                        context_store.clone(),
+                        thread_store,
+                    ))
+                }
+            }),
+        );
+
+        completions.extend(
+            supported_context_picker_modes(&thread_store)
+                .iter()
+                .map(|mode| {
+                    Completion {
+                        old_range: source_range.clone(),
+                        new_text: format!("@{} ", mode.mention_prefix()),
+                        label: CodeLabel::plain(mode.label().to_string(), None),
+                        icon_path: Some(mode.icon().path().into()),
+                        documentation: None,
+                        source: project::CompletionSource::Custom,
+                        // This ensures that when a user accepts this completion, the
+                        // completion menu will still be shown after "@category " is
+                        // inserted
+                        confirm: Some(Arc::new(|_, _, _| true)),
+                    }
+                }),
+        );
+        completions
+    }
+
+    fn build_code_label_for_full_path(
+        file_name: &str,
+        directory: Option<&str>,
+        cx: &App,
+    ) -> CodeLabel {
+        let comment_id = cx.theme().syntax().highlight_id("comment").map(HighlightId);
+        let mut label = CodeLabel::default();
+
+        label.push_str(&file_name, None);
+        label.push_str(" ", None);
+
+        if let Some(directory) = directory {
+            label.push_str(&directory, comment_id);
+        }
+
+        label.filter_range = 0..label.text().len();
+
+        label
+    }
+
+    fn completion_for_thread(
+        thread_entry: ThreadContextEntry,
+        excerpt_id: ExcerptId,
+        source_range: Range<Anchor>,
+        recent: bool,
+        editor: Entity<Editor>,
+        context_store: Entity<ContextStore>,
+        thread_store: Entity<ThreadStore>,
+    ) -> Completion {
+        let icon_for_completion = if recent {
+            IconName::HistoryRerun
+        } else {
+            IconName::MessageCircle
+        };
+        let new_text = format!("@thread {}", thread_entry.summary);
+        let new_text_len = new_text.len();
+        Completion {
+            old_range: source_range.clone(),
+            new_text,
+            label: CodeLabel::plain(thread_entry.summary.to_string(), None),
+            documentation: None,
+            source: project::CompletionSource::Custom,
+            icon_path: Some(icon_for_completion.path().into()),
+            confirm: Some(confirm_completion_callback(
+                IconName::MessageCircle.path().into(),
+                thread_entry.summary.clone(),
+                excerpt_id,
+                source_range.start,
+                new_text_len,
+                editor.clone(),
+                move |cx| {
+                    let thread_id = thread_entry.id.clone();
+                    let context_store = context_store.clone();
+                    let thread_store = thread_store.clone();
+                    cx.spawn(async move |cx| {
+                        let thread = thread_store
+                            .update(cx, |thread_store, cx| {
+                                thread_store.open_thread(&thread_id, cx)
+                            })?
+                            .await?;
+                        context_store.update(cx, |context_store, cx| {
+                            context_store.add_thread(thread, false, cx)
+                        })
+                    })
+                    .detach_and_log_err(cx);
+                },
+            )),
+        }
+    }
+
+    fn completion_for_fetch(
+        source_range: Range<Anchor>,
+        url_to_fetch: SharedString,
+        excerpt_id: ExcerptId,
+        editor: Entity<Editor>,
+        context_store: Entity<ContextStore>,
+        http_client: Arc<HttpClientWithUrl>,
+    ) -> Completion {
+        let new_text = format!("@fetch {}", url_to_fetch);
+        let new_text_len = new_text.len();
+        Completion {
+            old_range: source_range.clone(),
+            new_text,
+            label: CodeLabel::plain(url_to_fetch.to_string(), None),
+            documentation: None,
+            source: project::CompletionSource::Custom,
+            icon_path: Some(IconName::Globe.path().into()),
+            confirm: Some(confirm_completion_callback(
+                IconName::Globe.path().into(),
+                url_to_fetch.clone(),
+                excerpt_id,
+                source_range.start,
+                new_text_len,
+                editor.clone(),
+                move |cx| {
+                    let context_store = context_store.clone();
+                    let http_client = http_client.clone();
+                    let url_to_fetch = url_to_fetch.clone();
+                    cx.spawn(async move |cx| {
+                        if context_store.update(cx, |context_store, _| {
+                            context_store.includes_url(&url_to_fetch).is_some()
+                        })? {
+                            return Ok(());
+                        }
+                        let content = cx
+                            .background_spawn(fetch_url_content(
+                                http_client,
+                                url_to_fetch.to_string(),
+                            ))
+                            .await?;
+                        context_store.update(cx, |context_store, _| {
+                            context_store.add_fetched_url(url_to_fetch.to_string(), content)
+                        })
+                    })
+                    .detach_and_log_err(cx);
+                },
+            )),
+        }
+    }
+
+    fn completion_for_path(
+        project_path: ProjectPath,
+        path_prefix: &str,
+        is_recent: bool,
+        is_directory: bool,
+        excerpt_id: ExcerptId,
+        source_range: Range<Anchor>,
+        editor: Entity<Editor>,
+        context_store: Entity<ContextStore>,
+        cx: &App,
+    ) -> Completion {
+        let (file_name, directory) = super::file_context_picker::extract_file_name_and_directory(
+            &project_path.path,
+            path_prefix,
+        );
+
+        let label = Self::build_code_label_for_full_path(
+            &file_name,
+            directory.as_ref().map(|s| s.as_ref()),
+            cx,
+        );
+        let full_path = if let Some(directory) = directory {
+            format!("{}{}", directory, file_name)
+        } else {
+            file_name.to_string()
+        };
+
+        let crease_icon_path = if is_directory {
+            FileIcons::get_folder_icon(false, cx).unwrap_or_else(|| IconName::Folder.path().into())
+        } else {
+            FileIcons::get_icon(Path::new(&full_path), cx)
+                .unwrap_or_else(|| IconName::File.path().into())
+        };
+        let completion_icon_path = if is_recent {
+            IconName::HistoryRerun.path().into()
+        } else {
+            crease_icon_path.clone()
+        };
+
+        let new_text = format!("@file {}", full_path);
+        let new_text_len = new_text.len();
+        Completion {
+            old_range: source_range.clone(),
+            new_text,
+            label,
+            documentation: None,
+            source: project::CompletionSource::Custom,
+            icon_path: Some(completion_icon_path),
+            confirm: Some(confirm_completion_callback(
+                crease_icon_path,
+                file_name,
+                excerpt_id,
+                source_range.start,
+                new_text_len,
+                editor,
+                move |cx| {
+                    context_store.update(cx, |context_store, cx| {
+                        let task = if is_directory {
+                            context_store.add_directory(project_path.clone(), false, cx)
+                        } else {
+                            context_store.add_file_from_path(project_path.clone(), false, cx)
+                        };
+                        task.detach_and_log_err(cx);
+                    })
+                },
+            )),
+        }
+    }
+}
+
+impl CompletionProvider for ContextPickerCompletionProvider {
+    fn completions(
+        &self,
+        excerpt_id: ExcerptId,
+        buffer: &Entity<Buffer>,
+        buffer_position: Anchor,
+        _trigger: CompletionContext,
+        _window: &mut Window,
+        cx: &mut Context<Editor>,
+    ) -> Task<Result<Option<Vec<Completion>>>> {
+        let state = buffer.update(cx, |buffer, _cx| {
+            let position = buffer_position.to_point(buffer);
+            let line_start = Point::new(position.row, 0);
+            let offset_to_line = buffer.point_to_offset(line_start);
+            let mut lines = buffer.text_for_range(line_start..position).lines();
+            let line = lines.next()?;
+            MentionCompletion::try_parse(line, offset_to_line)
+        });
+        let Some(state) = state else {
+            return Task::ready(Ok(None));
+        };
+
+        let Some(workspace) = self.workspace.upgrade() else {
+            return Task::ready(Ok(None));
+        };
+        let Some(context_store) = self.context_store.upgrade() else {
+            return Task::ready(Ok(None));
+        };
+
+        let snapshot = buffer.read(cx).snapshot();
+        let source_range = snapshot.anchor_after(state.source_range.start)
+            ..snapshot.anchor_before(state.source_range.end);
+
+        let thread_store = self.thread_store.clone();
+        let editor = self.editor.clone();
+        let http_client = workspace.read(cx).client().http_client().clone();
+
+        cx.spawn(async move |_, cx| {
+            let mut completions = Vec::new();
+
+            let MentionCompletion {
+                mode: category,
+                argument,
+                ..
+            } = state;
+
+            let query = argument.unwrap_or_else(|| "".to_string());
+            match category {
+                Some(ContextPickerMode::File) => {
+                    let path_matches = cx
+                        .update(|cx| {
+                            super::file_context_picker::search_paths(
+                                query,
+                                Arc::<AtomicBool>::default(),
+                                &workspace,
+                                cx,
+                            )
+                        })?
+                        .await;
+
+                    if let Some(editor) = editor.upgrade() {
+                        completions.reserve(path_matches.len());
+                        cx.update(|cx| {
+                            completions.extend(path_matches.iter().map(|mat| {
+                                Self::completion_for_path(
+                                    ProjectPath {
+                                        worktree_id: WorktreeId::from_usize(mat.worktree_id),
+                                        path: mat.path.clone(),
+                                    },
+                                    &mat.path_prefix,
+                                    false,
+                                    mat.is_dir,
+                                    excerpt_id,
+                                    source_range.clone(),
+                                    editor.clone(),
+                                    context_store.clone(),
+                                    cx,
+                                )
+                            }));
+                        })?;
+                    }
+                }
+                Some(ContextPickerMode::Fetch) => {
+                    if let Some(editor) = editor.upgrade() {
+                        if !query.is_empty() {
+                            completions.push(Self::completion_for_fetch(
+                                source_range.clone(),
+                                query.into(),
+                                excerpt_id,
+                                editor.clone(),
+                                context_store.clone(),
+                                http_client.clone(),
+                            ));
+                        }
+
+                        context_store.update(cx, |store, _| {
+                            let urls = store.context().iter().filter_map(|context| {
+                                if let AssistantContext::FetchedUrl(context) = context {
+                                    Some(context.url.clone())
+                                } else {
+                                    None
+                                }
+                            });
+                            for url in urls {
+                                completions.push(Self::completion_for_fetch(
+                                    source_range.clone(),
+                                    url,
+                                    excerpt_id,
+                                    editor.clone(),
+                                    context_store.clone(),
+                                    http_client.clone(),
+                                ));
+                            }
+                        })?;
+                    }
+                }
+                Some(ContextPickerMode::Thread) => {
+                    if let Some((thread_store, editor)) = thread_store
+                        .and_then(|thread_store| thread_store.upgrade())
+                        .zip(editor.upgrade())
+                    {
+                        let threads = cx
+                            .update(|cx| {
+                                super::thread_context_picker::search_threads(
+                                    query,
+                                    thread_store.clone(),
+                                    cx,
+                                )
+                            })?
+                            .await;
+                        for thread in threads {
+                            completions.push(Self::completion_for_thread(
+                                thread.clone(),
+                                excerpt_id,
+                                source_range.clone(),
+                                false,
+                                editor.clone(),
+                                context_store.clone(),
+                                thread_store.clone(),
+                            ));
+                        }
+                    }
+                }
+                None => {
+                    cx.update(|cx| {
+                        if let Some(editor) = editor.upgrade() {
+                            completions.extend(Self::default_completions(
+                                excerpt_id,
+                                source_range.clone(),
+                                context_store.clone(),
+                                thread_store.clone(),
+                                editor,
+                                workspace.clone(),
+                                cx,
+                            ));
+                        }
+                    })?;
+                }
+            }
+            Ok(Some(completions))
+        })
+    }
+
+    fn resolve_completions(
+        &self,
+        _buffer: Entity<Buffer>,
+        _completion_indices: Vec<usize>,
+        _completions: Rc<RefCell<Box<[Completion]>>>,
+        _cx: &mut Context<Editor>,
+    ) -> Task<Result<bool>> {
+        Task::ready(Ok(true))
+    }
+
+    fn is_completion_trigger(
+        &self,
+        buffer: &Entity<language::Buffer>,
+        position: language::Anchor,
+        _: &str,
+        _: bool,
+        cx: &mut Context<Editor>,
+    ) -> bool {
+        let buffer = buffer.read(cx);
+        let position = position.to_point(buffer);
+        let line_start = Point::new(position.row, 0);
+        let offset_to_line = buffer.point_to_offset(line_start);
+        let mut lines = buffer.text_for_range(line_start..position).lines();
+        if let Some(line) = lines.next() {
+            MentionCompletion::try_parse(line, offset_to_line)
+                .map(|completion| {
+                    completion.source_range.start <= offset_to_line + position.column as usize
+                        && completion.source_range.end >= offset_to_line + position.column as usize
+                })
+                .unwrap_or(false)
+        } else {
+            false
+        }
+    }
+
+    fn sort_completions(&self) -> bool {
+        false
+    }
+
+    fn filter_completions(&self) -> bool {
+        false
+    }
+}
+
+fn confirm_completion_callback(
+    crease_icon_path: SharedString,
+    crease_text: SharedString,
+    excerpt_id: ExcerptId,
+    start: Anchor,
+    content_len: usize,
+    editor: Entity<Editor>,
+    add_context_fn: impl Fn(&mut App) -> () + Send + Sync + 'static,
+) -> Arc<dyn Fn(CompletionIntent, &mut Window, &mut App) -> bool + Send + Sync> {
+    Arc::new(move |_, window, cx| {
+        add_context_fn(cx);
+
+        let crease_text = crease_text.clone();
+        let crease_icon_path = crease_icon_path.clone();
+        let editor = editor.clone();
+        window.defer(cx, move |window, cx| {
+            crate::context_picker::insert_crease_for_mention(
+                excerpt_id,
+                start,
+                content_len,
+                crease_text,
+                crease_icon_path,
+                editor,
+                window,
+                cx,
+            );
+        });
+        false
+    })
+}
+
+#[derive(Debug, Default, PartialEq)]
+struct MentionCompletion {
+    source_range: Range<usize>,
+    mode: Option<ContextPickerMode>,
+    argument: Option<String>,
+}
+
+impl MentionCompletion {
+    fn try_parse(line: &str, offset_to_line: usize) -> Option<Self> {
+        let last_mention_start = line.rfind('@')?;
+        if last_mention_start >= line.len() {
+            return Some(Self::default());
+        }
+        let rest_of_line = &line[last_mention_start + 1..];
+
+        let mut mode = None;
+        let mut argument = None;
+
+        let mut parts = rest_of_line.split_whitespace();
+        let mut end = last_mention_start + 1;
+        if let Some(mode_text) = parts.next() {
+            end += mode_text.len();
+            mode = ContextPickerMode::try_from(mode_text).ok();
+            match rest_of_line[mode_text.len()..].find(|c: char| !c.is_whitespace()) {
+                Some(whitespace_count) => {
+                    if let Some(argument_text) = parts.next() {
+                        argument = Some(argument_text.to_string());
+                        end += whitespace_count + argument_text.len();
+                    }
+                }
+                None => {
+                    // Rest of line is entirely whitespace
+                    end += rest_of_line.len() - mode_text.len();
+                }
+            }
+        }
+
+        Some(Self {
+            source_range: last_mention_start + offset_to_line..end + offset_to_line,
+            mode,
+            argument,
+        })
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use gpui::{Focusable, TestAppContext, VisualTestContext};
+    use project::{Project, ProjectPath};
+    use serde_json::json;
+    use settings::SettingsStore;
+    use std::{ops::Deref, path::PathBuf};
+    use util::{path, separator};
+    use workspace::AppState;
+
+    #[test]
+    fn test_mention_completion_parse() {
+        assert_eq!(MentionCompletion::try_parse("Lorem Ipsum", 0), None);
+
+        assert_eq!(
+            MentionCompletion::try_parse("Lorem @", 0),
+            Some(MentionCompletion {
+                source_range: 6..7,
+                mode: None,
+                argument: None,
+            })
+        );
+
+        assert_eq!(
+            MentionCompletion::try_parse("Lorem @file", 0),
+            Some(MentionCompletion {
+                source_range: 6..11,
+                mode: Some(ContextPickerMode::File),
+                argument: None,
+            })
+        );
+
+        assert_eq!(
+            MentionCompletion::try_parse("Lorem @file ", 0),
+            Some(MentionCompletion {
+                source_range: 6..12,
+                mode: Some(ContextPickerMode::File),
+                argument: None,
+            })
+        );
+
+        assert_eq!(
+            MentionCompletion::try_parse("Lorem @file main.rs", 0),
+            Some(MentionCompletion {
+                source_range: 6..19,
+                mode: Some(ContextPickerMode::File),
+                argument: Some("main.rs".to_string()),
+            })
+        );
+
+        assert_eq!(
+            MentionCompletion::try_parse("Lorem @file main.rs ", 0),
+            Some(MentionCompletion {
+                source_range: 6..19,
+                mode: Some(ContextPickerMode::File),
+                argument: Some("main.rs".to_string()),
+            })
+        );
+
+        assert_eq!(
+            MentionCompletion::try_parse("Lorem @file main.rs Ipsum", 0),
+            Some(MentionCompletion {
+                source_range: 6..19,
+                mode: Some(ContextPickerMode::File),
+                argument: Some("main.rs".to_string()),
+            })
+        );
+    }
+
+    #[gpui::test]
+    async fn test_context_completion_provider(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let app_state = cx.update(AppState::test);
+
+        cx.update(|cx| {
+            language::init(cx);
+            editor::init(cx);
+            workspace::init(app_state.clone(), cx);
+            Project::init_settings(cx);
+        });
+
+        app_state
+            .fs
+            .as_fake()
+            .insert_tree(
+                path!("/dir"),
+                json!({
+                    "editor": "",
+                    "a": {
+                        "one.txt": "",
+                        "two.txt": "",
+                        "three.txt": "",
+                        "four.txt": ""
+                    },
+                    "b": {
+                        "five.txt": "",
+                        "six.txt": "",
+                        "seven.txt": "",
+                    }
+                }),
+            )
+            .await;
+
+        let project = Project::test(app_state.fs.clone(), [path!("/dir").as_ref()], cx).await;
+        let window = cx.add_window(|window, cx| Workspace::test_new(project.clone(), window, cx));
+        let workspace = window.root(cx).unwrap();
+
+        let worktree = project.update(cx, |project, cx| {
+            let mut worktrees = project.worktrees(cx).collect::<Vec<_>>();
+            assert_eq!(worktrees.len(), 1);
+            worktrees.pop().unwrap()
+        });
+        let worktree_id = worktree.update(cx, |worktree, _| worktree.id());
+
+        let mut cx = VisualTestContext::from_window(*window.deref(), cx);
+
+        let paths = vec![
+            separator!("a/one.txt"),
+            separator!("a/two.txt"),
+            separator!("a/three.txt"),
+            separator!("a/four.txt"),
+            separator!("b/five.txt"),
+            separator!("b/six.txt"),
+            separator!("b/seven.txt"),
+        ];
+        for path in paths {
+            workspace
+                .update_in(&mut cx, |workspace, window, cx| {
+                    workspace.open_path(
+                        ProjectPath {
+                            worktree_id,
+                            path: Path::new(path).into(),
+                        },
+                        None,
+                        false,
+                        window,
+                        cx,
+                    )
+                })
+                .await
+                .unwrap();
+        }
+
+        let item = workspace
+            .update_in(&mut cx, |workspace, window, cx| {
+                workspace.open_path(
+                    ProjectPath {
+                        worktree_id,
+                        path: PathBuf::from("editor").into(),
+                    },
+                    None,
+                    true,
+                    window,
+                    cx,
+                )
+            })
+            .await
+            .expect("Could not open test file");
+
+        let editor = cx.update(|_, cx| {
+            item.act_as::<Editor>(cx)
+                .expect("Opened test file wasn't an editor")
+        });
+
+        let context_store = cx.new(|_| ContextStore::new(workspace.downgrade()));
+
+        let editor_entity = editor.downgrade();
+        editor.update_in(&mut cx, |editor, window, cx| {
+            window.focus(&editor.focus_handle(cx));
+            editor.set_completion_provider(Some(Box::new(ContextPickerCompletionProvider::new(
+                workspace.downgrade(),
+                context_store.downgrade(),
+                None,
+                editor_entity,
+            ))));
+        });
+
+        cx.simulate_input("Lorem ");
+
+        editor.update(&mut cx, |editor, cx| {
+            assert_eq!(editor.text(cx), "Lorem ");
+            assert!(!editor.has_visible_completions_menu());
+        });
+
+        cx.simulate_input("@");
+
+        editor.update(&mut cx, |editor, cx| {
+            assert_eq!(editor.text(cx), "Lorem @");
+            assert!(editor.has_visible_completions_menu());
+            assert_eq!(
+                current_completion_labels(editor),
+                &[
+                    "seven.txt dir/b/",
+                    "six.txt dir/b/",
+                    "five.txt dir/b/",
+                    "four.txt dir/a/",
+                    "Files & Directories",
+                    "Fetch"
+                ]
+            );
+        });
+
+        // Select and confirm "File"
+        editor.update_in(&mut cx, |editor, window, cx| {
+            assert!(editor.has_visible_completions_menu());
+            editor.context_menu_next(&editor::actions::ContextMenuNext, window, cx);
+            editor.context_menu_next(&editor::actions::ContextMenuNext, window, cx);
+            editor.context_menu_next(&editor::actions::ContextMenuNext, window, cx);
+            editor.context_menu_next(&editor::actions::ContextMenuNext, window, cx);
+            editor.confirm_completion(&editor::actions::ConfirmCompletion::default(), window, cx);
+        });
+
+        cx.run_until_parked();
+
+        editor.update(&mut cx, |editor, cx| {
+            assert_eq!(editor.text(cx), "Lorem @file ");
+            assert!(editor.has_visible_completions_menu());
+        });
+
+        cx.simulate_input("one");
+
+        editor.update(&mut cx, |editor, cx| {
+            assert_eq!(editor.text(cx), "Lorem @file one");
+            assert!(editor.has_visible_completions_menu());
+            assert_eq!(current_completion_labels(editor), vec!["one.txt dir/a/"]);
+        });
+
+        editor.update_in(&mut cx, |editor, window, cx| {
+            assert!(editor.has_visible_completions_menu());
+            editor.confirm_completion(&editor::actions::ConfirmCompletion::default(), window, cx);
+        });
+
+        editor.update(&mut cx, |editor, cx| {
+            assert_eq!(editor.text(cx), "Lorem @file dir/a/one.txt",);
+            assert!(!editor.has_visible_completions_menu());
+            assert_eq!(
+                crease_ranges(editor, cx),
+                vec![Point::new(0, 6)..Point::new(0, 25)]
+            );
+        });
+
+        cx.simulate_input(" ");
+
+        editor.update(&mut cx, |editor, cx| {
+            assert_eq!(editor.text(cx), "Lorem @file dir/a/one.txt ",);
+            assert!(!editor.has_visible_completions_menu());
+            assert_eq!(
+                crease_ranges(editor, cx),
+                vec![Point::new(0, 6)..Point::new(0, 25)]
+            );
+        });
+
+        cx.simulate_input("Ipsum ");
+
+        editor.update(&mut cx, |editor, cx| {
+            assert_eq!(editor.text(cx), "Lorem @file dir/a/one.txt Ipsum ",);
+            assert!(!editor.has_visible_completions_menu());
+            assert_eq!(
+                crease_ranges(editor, cx),
+                vec![Point::new(0, 6)..Point::new(0, 25)]
+            );
+        });
+
+        cx.simulate_input("@file ");
+
+        editor.update(&mut cx, |editor, cx| {
+            assert_eq!(editor.text(cx), "Lorem @file dir/a/one.txt Ipsum @file ",);
+            assert!(editor.has_visible_completions_menu());
+            assert_eq!(
+                crease_ranges(editor, cx),
+                vec![Point::new(0, 6)..Point::new(0, 25)]
+            );
+        });
+
+        editor.update_in(&mut cx, |editor, window, cx| {
+            editor.confirm_completion(&editor::actions::ConfirmCompletion::default(), window, cx);
+        });
+
+        cx.run_until_parked();
+
+        editor.update(&mut cx, |editor, cx| {
+            assert_eq!(
+                editor.text(cx),
+                "Lorem @file dir/a/one.txt Ipsum @file dir/b/seven.txt"
+            );
+            assert!(!editor.has_visible_completions_menu());
+            assert_eq!(
+                crease_ranges(editor, cx),
+                vec![
+                    Point::new(0, 6)..Point::new(0, 25),
+                    Point::new(0, 32)..Point::new(0, 53)
+                ]
+            );
+        });
+
+        cx.simulate_input("\n@");
+
+        editor.update(&mut cx, |editor, cx| {
+            assert_eq!(
+                editor.text(cx),
+                "Lorem @file dir/a/one.txt Ipsum @file dir/b/seven.txt\n@"
+            );
+            assert!(editor.has_visible_completions_menu());
+            assert_eq!(
+                crease_ranges(editor, cx),
+                vec![
+                    Point::new(0, 6)..Point::new(0, 25),
+                    Point::new(0, 32)..Point::new(0, 53)
+                ]
+            );
+        });
+
+        editor.update_in(&mut cx, |editor, window, cx| {
+            editor.confirm_completion(&editor::actions::ConfirmCompletion::default(), window, cx);
+        });
+
+        cx.run_until_parked();
+
+        editor.update(&mut cx, |editor, cx| {
+            assert_eq!(
+                editor.text(cx),
+                "Lorem @file dir/a/one.txt Ipsum @file dir/b/seven.txt\n@file dir/b/six.txt"
+            );
+            assert!(!editor.has_visible_completions_menu());
+            assert_eq!(
+                crease_ranges(editor, cx),
+                vec![
+                    Point::new(0, 6)..Point::new(0, 25),
+                    Point::new(0, 32)..Point::new(0, 53),
+                    Point::new(1, 0)..Point::new(1, 19)
+                ]
+            );
+        });
+    }
+
+    fn crease_ranges(editor: &Editor, cx: &mut App) -> Vec<Range<Point>> {
+        let snapshot = editor.buffer().read(cx).snapshot(cx);
+        editor.display_map.update(cx, |display_map, cx| {
+            display_map
+                .snapshot(cx)
+                .crease_snapshot
+                .crease_items_with_offsets(&snapshot)
+                .into_iter()
+                .map(|(_, range)| range)
+                .collect()
+        })
+    }
+
+    fn current_completion_labels(editor: &Editor) -> Vec<String> {
+        let completions = editor.current_completions().expect("Missing completions");
+        completions
+            .into_iter()
+            .map(|completion| completion.label.text.to_string())
+            .collect::<Vec<_>>()
+    }
+
+    pub(crate) fn init_test(cx: &mut TestAppContext) {
+        cx.update(|cx| {
+            let store = SettingsStore::test(cx);
+            cx.set_global(store);
+            theme::init(theme::LoadThemes::JustBase, cx);
+            client::init_settings(cx);
+            language::init(cx);
+            Project::init_settings(cx);
+            workspace::init_settings(cx);
+            editor::init_settings(cx);
+        });
+    }
+}
--- a/crates/assistant2/src/context_picker/fetch_context_picker.rs
+++ b/crates/assistant2/src/context_picker/fetch_context_picker.rs
@@ -81,77 +81,80 @@ impl FetchContextPickerDelegate {
            url: String::new(),
        }
    }
+}

-    async fn build_message(http_client: Arc<HttpClientWithUrl>, url: String) -> Result<String> {
-        let url = if !url.starts_with("https://") && !url.starts_with("http://") {
-            format!("https://{url}")
-        } else {
-            url
-        };
+pub(crate) async fn fetch_url_content(
+    http_client: Arc<HttpClientWithUrl>,
+    url: String,
+) -> Result<String> {
+    let url = if !url.starts_with("https://") && !url.starts_with("http://") {
+        format!("https://{url}")
+    } else {
+        url
+    };

-        let mut response = http_client.get(&url, AsyncBody::default(), true).await?;
+    let mut response = http_client.get(&url, AsyncBody::default(), true).await?;

-        let mut body = Vec::new();
-        response
-            .body_mut()
-            .read_to_end(&mut body)
-            .await
-            .context("error reading response body")?;
+    let mut body = Vec::new();
+    response
+        .body_mut()
+        .read_to_end(&mut body)
+        .await
+        .context("error reading response body")?;

-        if response.status().is_client_error() {
-            let text = String::from_utf8_lossy(body.as_slice());
-            bail!(
-                "status error {}, response: {text:?}",
-                response.status().as_u16()
-            );
+    if response.status().is_client_error() {
+        let text = String::from_utf8_lossy(body.as_slice());
+        bail!(
+            "status error {}, response: {text:?}",
+            response.status().as_u16()
+        );
+    }
+
+    let Some(content_type) = response.headers().get("content-type") else {
+        bail!("missing Content-Type header");
+    };
+    let content_type = content_type
+        .to_str()
+        .context("invalid Content-Type header")?;
+    let content_type = match content_type {
+        "text/html" => ContentType::Html,
+        "text/plain" => ContentType::Plaintext,
+        "application/json" => ContentType::Json,
+        _ => ContentType::Html,
+    };
+
+    match content_type {
+        ContentType::Html => {
+            let mut handlers: Vec<TagHandler> = vec![
+                Rc::new(RefCell::new(markdown::WebpageChromeRemover)),
+                Rc::new(RefCell::new(markdown::ParagraphHandler)),
+                Rc::new(RefCell::new(markdown::HeadingHandler)),
+                Rc::new(RefCell::new(markdown::ListHandler)),
+                Rc::new(RefCell::new(markdown::TableHandler::new())),
+                Rc::new(RefCell::new(markdown::StyledTextHandler)),
+            ];
+            if url.contains("wikipedia.org") {
+                use html_to_markdown::structure::wikipedia;
+
+                handlers.push(Rc::new(RefCell::new(wikipedia::WikipediaChromeRemover)));
+                handlers.push(Rc::new(RefCell::new(wikipedia::WikipediaInfoboxHandler)));
+                handlers.push(Rc::new(
+                    RefCell::new(wikipedia::WikipediaCodeHandler::new()),
+                ));
+            } else {
+                handlers.push(Rc::new(RefCell::new(markdown::CodeHandler)));
+            }
+
+            convert_html_to_markdown(&body[..], &mut handlers)
        }
+        ContentType::Plaintext => Ok(std::str::from_utf8(&body)?.to_owned()),
+        ContentType::Json => {
+            let json: serde_json::Value = serde_json::from_slice(&body)?;

-        let Some(content_type) = response.headers().get("content-type") else {
-            bail!("missing Content-Type header");
-        };
-        let content_type = content_type
-            .to_str()
-            .context("invalid Content-Type header")?;
-        let content_type = match content_type {
-            "text/html" => ContentType::Html,
-            "text/plain" => ContentType::Plaintext,
-            "application/json" => ContentType::Json,
-            _ => ContentType::Html,
-        };
-
-        match content_type {
-            ContentType::Html => {
-                let mut handlers: Vec<TagHandler> = vec![
-                    Rc::new(RefCell::new(markdown::WebpageChromeRemover)),
-                    Rc::new(RefCell::new(markdown::ParagraphHandler)),
-                    Rc::new(RefCell::new(markdown::HeadingHandler)),
-                    Rc::new(RefCell::new(markdown::ListHandler)),
-                    Rc::new(RefCell::new(markdown::TableHandler::new())),
-                    Rc::new(RefCell::new(markdown::StyledTextHandler)),
-                ];
-                if url.contains("wikipedia.org") {
-                    use html_to_markdown::structure::wikipedia;
-
-                    handlers.push(Rc::new(RefCell::new(wikipedia::WikipediaChromeRemover)));
-                    handlers.push(Rc::new(RefCell::new(wikipedia::WikipediaInfoboxHandler)));
-                    handlers.push(Rc::new(
-                        RefCell::new(wikipedia::WikipediaCodeHandler::new()),
-                    ));
-                } else {
-                    handlers.push(Rc::new(RefCell::new(markdown::CodeHandler)));
-                }
-
-                convert_html_to_markdown(&body[..], &mut handlers)
-            }
-            ContentType::Plaintext => Ok(std::str::from_utf8(&body)?.to_owned()),
-            ContentType::Json => {
-                let json: serde_json::Value = serde_json::from_slice(&body)?;
-
-                Ok(format!(
-                    "```json\n{}\n```",
-                    serde_json::to_string_pretty(&json)?
-                ))
-            }
+            Ok(format!(
+                "```json\n{}\n```",
+                serde_json::to_string_pretty(&json)?
+            ))
        }
    }
 }
@@ -208,7 +211,7 @@ impl PickerDelegate for FetchContextPickerDelegate {
        let confirm_behavior = self.confirm_behavior;
        cx.spawn_in(window, async move |this, cx| {
            let text = cx
-                .background_spawn(Self::build_message(http_client, url.clone()))
+                .background_spawn(fetch_url_content(http_client, url.clone()))
                .await?;

            this.update_in(cx, |this, window, cx| {
--- a/crates/assistant2/src/context_picker/file_context_picker.rs
+++ b/crates/assistant2/src/context_picker/file_context_picker.rs
@@ -1,25 +1,15 @@
-use std::collections::BTreeSet;
-use std::ops::Range;
 use std::path::Path;
 use std::sync::atomic::AtomicBool;
 use std::sync::Arc;

-use editor::actions::FoldAt;
-use editor::display_map::{Crease, FoldId};
-use editor::scroll::Autoscroll;
-use editor::{Anchor, AnchorRangeExt, Editor, FoldPlaceholder, ToPoint};
 use file_icons::FileIcons;
 use fuzzy::PathMatch;
 use gpui::{
-    AnyElement, App, AppContext, DismissEvent, Empty, Entity, FocusHandle, Focusable, Stateful,
-    Task, WeakEntity,
+    App, AppContext, DismissEvent, Entity, FocusHandle, Focusable, Stateful, Task, WeakEntity,
 };
-use multi_buffer::{MultiBufferPoint, MultiBufferRow};
 use picker::{Picker, PickerDelegate};
 use project::{PathMatchCandidateSet, ProjectPath, WorktreeId};
-use rope::Point;
-use text::SelectionGoal;
-use ui::{prelude::*, ButtonLike, Disclosure, ListItem, TintColor, Tooltip};
+use ui::{prelude::*, ListItem, Tooltip};
 use util::ResultExt as _;
 use workspace::{notifications::NotifyResultExt, Workspace};

@@ -34,7 +24,6 @@ impl FileContextPicker {
    pub fn new(
        context_picker: WeakEntity<ContextPicker>,
        workspace: WeakEntity<Workspace>,
-        editor: WeakEntity<Editor>,
        context_store: WeakEntity<ContextStore>,
        confirm_behavior: ConfirmBehavior,
        window: &mut Window,
@@ -43,7 +32,6 @@ impl FileContextPicker {
        let delegate = FileContextPickerDelegate::new(
            context_picker,
            workspace,
-            editor,
            context_store,
            confirm_behavior,
        );
@@ -68,7 +56,6 @@ impl Render for FileContextPicker {
 pub struct FileContextPickerDelegate {
    context_picker: WeakEntity<ContextPicker>,
    workspace: WeakEntity<Workspace>,
-    editor: WeakEntity<Editor>,
    context_store: WeakEntity<ContextStore>,
    confirm_behavior: ConfirmBehavior,
    matches: Vec<PathMatch>,
@@ -79,95 +66,18 @@ impl FileContextPickerDelegate {
    pub fn new(
        context_picker: WeakEntity<ContextPicker>,
        workspace: WeakEntity<Workspace>,
-        editor: WeakEntity<Editor>,
        context_store: WeakEntity<ContextStore>,
        confirm_behavior: ConfirmBehavior,
    ) -> Self {
        Self {
            context_picker,
            workspace,
-            editor,
            context_store,
            confirm_behavior,
            matches: Vec::new(),
            selected_index: 0,
        }
    }
-
-    fn search(
-        &mut self,
-        query: String,
-        cancellation_flag: Arc<AtomicBool>,
-        workspace: &Entity<Workspace>,
-        cx: &mut Context<Picker<Self>>,
-    ) -> Task<Vec<PathMatch>> {
-        if query.is_empty() {
-            let workspace = workspace.read(cx);
-            let project = workspace.project().read(cx);
-            let recent_matches = workspace
-                .recent_navigation_history(Some(10), cx)
-                .into_iter()
-                .filter_map(|(project_path, _)| {
-                    let worktree = project.worktree_for_id(project_path.worktree_id, cx)?;
-                    Some(PathMatch {
-                        score: 0.,
-                        positions: Vec::new(),
-                        worktree_id: project_path.worktree_id.to_usize(),
-                        path: project_path.path,
-                        path_prefix: worktree.read(cx).root_name().into(),
-                        distance_to_relative_ancestor: 0,
-                        is_dir: false,
-                    })
-                });
-
-            let file_matches = project.worktrees(cx).flat_map(|worktree| {
-                let worktree = worktree.read(cx);
-                let path_prefix: Arc<str> = worktree.root_name().into();
-                worktree.entries(false, 0).map(move |entry| PathMatch {
-                    score: 0.,
-                    positions: Vec::new(),
-                    worktree_id: worktree.id().to_usize(),
-                    path: entry.path.clone(),
-                    path_prefix: path_prefix.clone(),
-                    distance_to_relative_ancestor: 0,
-                    is_dir: entry.is_dir(),
-                })
-            });
-
-            Task::ready(recent_matches.chain(file_matches).collect())
-        } else {
-            let worktrees = workspace.read(cx).visible_worktrees(cx).collect::<Vec<_>>();
-            let candidate_sets = worktrees
-                .into_iter()
-                .map(|worktree| {
-                    let worktree = worktree.read(cx);
-
-                    PathMatchCandidateSet {
-                        snapshot: worktree.snapshot(),
-                        include_ignored: worktree
-                            .root_entry()
-                            .map_or(false, |entry| entry.is_ignored),
-                        include_root_name: true,
-                        candidates: project::Candidates::Entries,
-                    }
-                })
-                .collect::<Vec<_>>();
-
-            let executor = cx.background_executor().clone();
-            cx.foreground_executor().spawn(async move {
-                fuzzy::match_path_sets(
-                    candidate_sets.as_slice(),
-                    query.as_str(),
-                    None,
-                    false,
-                    100,
-                    &cancellation_flag,
-                    executor,
-                )
-                .await
-            })
-        }
-    }
 }

 impl PickerDelegate for FileContextPickerDelegate {
@@ -204,7 +114,7 @@ impl PickerDelegate for FileContextPickerDelegate {
            return Task::ready(());
        };

-        let search_task = self.search(query, Arc::<AtomicBool>::default(), &workspace, cx);
+        let search_task = search_paths(query, Arc::<AtomicBool>::default(), &workspace, cx);

        cx.spawn_in(window, async move |this, cx| {
            // TODO: This should be probably be run in the background.
@@ -222,14 +132,6 @@ impl PickerDelegate for FileContextPickerDelegate {
            return;
        };

-        let file_name = mat
-            .path
-            .file_name()
-            .map(|os_str| os_str.to_string_lossy().into_owned())
-            .unwrap_or(mat.path_prefix.to_string());
-
-        let full_path = mat.path.display().to_string();
-
        let project_path = ProjectPath {
            worktree_id: WorktreeId::from_usize(mat.worktree_id),
            path: mat.path.clone(),
@@ -237,106 +139,13 @@ impl PickerDelegate for FileContextPickerDelegate {

        let is_directory = mat.is_dir;

-        let Some(editor_entity) = self.editor.upgrade() else {
-            return;
-        };
-
-        editor_entity.update(cx, |editor, cx| {
-            editor.transact(window, cx, |editor, window, cx| {
-                // Move empty selections left by 1 column to select the `@`s, so they get overwritten when we insert.
-                {
-                    let mut selections = editor.selections.all::<MultiBufferPoint>(cx);
-
-                    for selection in selections.iter_mut() {
-                        if selection.is_empty() {
-                            let old_head = selection.head();
-                            let new_head = MultiBufferPoint::new(
-                                old_head.row,
-                                old_head.column.saturating_sub(1),
-                            );
-                            selection.set_head(new_head, SelectionGoal::None);
-                        }
-                    }
-
-                    editor.change_selections(Some(Autoscroll::fit()), window, cx, |s| {
-                        s.select(selections)
-                    });
-                }
-
-                let start_anchors = {
-                    let snapshot = editor.buffer().read(cx).snapshot(cx);
-                    editor
-                        .selections
-                        .all::<Point>(cx)
-                        .into_iter()
-                        .map(|selection| snapshot.anchor_before(selection.start))
-                        .collect::<Vec<_>>()
-                };
-
-                editor.insert(&full_path, window, cx);
-
-                let end_anchors = {
-                    let snapshot = editor.buffer().read(cx).snapshot(cx);
-                    editor
-                        .selections
-                        .all::<Point>(cx)
-                        .into_iter()
-                        .map(|selection| snapshot.anchor_after(selection.end))
-                        .collect::<Vec<_>>()
-                };
-
-                editor.insert("\n", window, cx); // Needed to end the fold
-
-                let file_icon = if is_directory {
-                    FileIcons::get_folder_icon(false, cx)
-                } else {
-                    FileIcons::get_icon(&Path::new(&full_path), cx)
-                }
-                .unwrap_or_else(|| SharedString::new(""));
-
-                let placeholder = FoldPlaceholder {
-                    render: render_fold_icon_button(
-                        file_icon,
-                        file_name.into(),
-                        editor_entity.downgrade(),
-                    ),
-                    ..Default::default()
-                };
-
-                let render_trailer =
-                    move |_row, _unfold, _window: &mut Window, _cx: &mut App| Empty.into_any();
-
-                let buffer = editor.buffer().read(cx).snapshot(cx);
-                let mut rows_to_fold = BTreeSet::new();
-                let crease_iter = start_anchors
-                    .into_iter()
-                    .zip(end_anchors)
-                    .map(|(start, end)| {
-                        rows_to_fold.insert(MultiBufferRow(start.to_point(&buffer).row));
-
-                        Crease::inline(
-                            start..end,
-                            placeholder.clone(),
-                            fold_toggle("tool-use"),
-                            render_trailer,
-                        )
-                    });
-
-                editor.insert_creases(crease_iter, cx);
-
-                for buffer_row in rows_to_fold {
-                    editor.fold_at(&FoldAt { buffer_row }, window, cx);
-                }
-            });
-        });
-
        let Some(task) = self
            .context_store
            .update(cx, |context_store, cx| {
                if is_directory {
-                    context_store.add_directory(project_path, cx)
+                    context_store.add_directory(project_path, true, cx)
                } else {
-                    context_store.add_file_from_path(project_path, cx)
+                    context_store.add_file_from_path(project_path, true, cx)
                }
            })
            .ok()
@@ -390,16 +199,93 @@ impl PickerDelegate for FileContextPickerDelegate {
    }
 }

-pub fn render_file_context_entry(
-    id: ElementId,
-    path: &Path,
-    path_prefix: &Arc<str>,
-    is_directory: bool,
-    context_store: WeakEntity<ContextStore>,
+pub(crate) fn search_paths(
+    query: String,
+    cancellation_flag: Arc<AtomicBool>,
+    workspace: &Entity<Workspace>,
    cx: &App,
-) -> Stateful<Div> {
-    let (file_name, directory) = if path == Path::new("") {
-        (SharedString::from(path_prefix.clone()), None)
+) -> Task<Vec<PathMatch>> {
+    if query.is_empty() {
+        let workspace = workspace.read(cx);
+        let project = workspace.project().read(cx);
+        let recent_matches = workspace
+            .recent_navigation_history(Some(10), cx)
+            .into_iter()
+            .filter_map(|(project_path, _)| {
+                let worktree = project.worktree_for_id(project_path.worktree_id, cx)?;
+                Some(PathMatch {
+                    score: 0.,
+                    positions: Vec::new(),
+                    worktree_id: project_path.worktree_id.to_usize(),
+                    path: project_path.path,
+                    path_prefix: worktree.read(cx).root_name().into(),
+                    distance_to_relative_ancestor: 0,
+                    is_dir: false,
+                })
+            });
+
+        let file_matches = project.worktrees(cx).flat_map(|worktree| {
+            let worktree = worktree.read(cx);
+            let path_prefix: Arc<str> = worktree.root_name().into();
+            worktree.entries(false, 0).map(move |entry| PathMatch {
+                score: 0.,
+                positions: Vec::new(),
+                worktree_id: worktree.id().to_usize(),
+                path: entry.path.clone(),
+                path_prefix: path_prefix.clone(),
+                distance_to_relative_ancestor: 0,
+                is_dir: entry.is_dir(),
+            })
+        });
+
+        Task::ready(recent_matches.chain(file_matches).collect())
+    } else {
+        let worktrees = workspace.read(cx).visible_worktrees(cx).collect::<Vec<_>>();
+        let candidate_sets = worktrees
+            .into_iter()
+            .map(|worktree| {
+                let worktree = worktree.read(cx);
+
+                PathMatchCandidateSet {
+                    snapshot: worktree.snapshot(),
+                    include_ignored: worktree
+                        .root_entry()
+                        .map_or(false, |entry| entry.is_ignored),
+                    include_root_name: true,
+                    candidates: project::Candidates::Entries,
+                }
+            })
+            .collect::<Vec<_>>();
+
+        let executor = cx.background_executor().clone();
+        cx.foreground_executor().spawn(async move {
+            fuzzy::match_path_sets(
+                candidate_sets.as_slice(),
+                query.as_str(),
+                None,
+                false,
+                100,
+                &cancellation_flag,
+                executor,
+            )
+            .await
+        })
+    }
+}
+
+pub fn extract_file_name_and_directory(
+    path: &Path,
+    path_prefix: &str,
+) -> (SharedString, Option<SharedString>) {
+    if path == Path::new("") {
+        (
+            SharedString::from(
+                path_prefix
+                    .trim_end_matches(std::path::MAIN_SEPARATOR)
+                    .to_string(),
+            ),
+            None,
+        )
    } else {
        let file_name = path
            .file_name()
@@ -408,15 +294,30 @@ pub fn render_file_context_entry(
            .to_string()
            .into();

-        let mut directory = format!("{}/", path_prefix);
-
+        let mut directory = path_prefix
+            .trim_end_matches(std::path::MAIN_SEPARATOR)
+            .to_string();
+        if !directory.ends_with('/') {
+            directory.push('/');
+        }
        if let Some(parent) = path.parent().filter(|parent| parent != &Path::new("")) {
            directory.push_str(&parent.to_string_lossy());
            directory.push('/');
        }

-        (file_name, Some(directory))
-    };
+        (file_name, Some(directory.into()))
+    }
+}
+
+pub fn render_file_context_entry(
+    id: ElementId,
+    path: &Path,
+    path_prefix: &Arc<str>,
+    is_directory: bool,
+    context_store: WeakEntity<ContextStore>,
+    cx: &App,
+) -> Stateful<Div> {
+    let (file_name, directory) = extract_file_name_and_directory(path, path_prefix);

    let added = context_store.upgrade().and_then(|context_store| {
        if is_directory {
@@ -484,85 +385,3 @@ pub fn render_file_context_entry(
            }
        })
 }
-
-fn render_fold_icon_button(
-    icon: SharedString,
-    label: SharedString,
-    editor: WeakEntity<Editor>,
-) -> Arc<dyn Send + Sync + Fn(FoldId, Range<Anchor>, &mut App) -> AnyElement> {
-    Arc::new(move |fold_id, fold_range, cx| {
-        let is_in_text_selection = editor.upgrade().is_some_and(|editor| {
-            editor.update(cx, |editor, cx| {
-                let snapshot = editor
-                    .buffer()
-                    .update(cx, |multi_buffer, cx| multi_buffer.snapshot(cx));
-
-                let is_in_pending_selection = || {
-                    editor
-                        .selections
-                        .pending
-                        .as_ref()
-                        .is_some_and(|pending_selection| {
-                            pending_selection
-                                .selection
-                                .range()
-                                .includes(&fold_range, &snapshot)
-                        })
-                };
-
-                let mut is_in_complete_selection = || {
-                    editor
-                        .selections
-                        .disjoint_in_range::<usize>(fold_range.clone(), cx)
-                        .into_iter()
-                        .any(|selection| {
-                            // This is needed to cover a corner case, if we just check for an existing
-                            // selection in the fold range, having a cursor at the start of the fold
-                            // marks it as selected. Non-empty selections don't cause this.
-                            let length = selection.end - selection.start;
-                            length > 0
-                        })
-                };
-
-                is_in_pending_selection() || is_in_complete_selection()
-            })
-        });
-
-        ButtonLike::new(fold_id)
-            .style(ButtonStyle::Filled)
-            .selected_style(ButtonStyle::Tinted(TintColor::Accent))
-            .toggle_state(is_in_text_selection)
-            .child(
-                h_flex()
-                    .gap_1()
-                    .child(
-                        Icon::from_path(icon.clone())
-                            .size(IconSize::Small)
-                            .color(Color::Muted),
-                    )
-                    .child(
-                        Label::new(label.clone())
-                            .size(LabelSize::Small)
-                            .single_line(),
-                    ),
-            )
-            .into_any_element()
-    })
-}
-
-fn fold_toggle(
-    name: &'static str,
-) -> impl Fn(
-    MultiBufferRow,
-    bool,
-    Arc<dyn Fn(bool, &mut Window, &mut App) + Send + Sync>,
-    &mut Window,
-    &mut App,
-) -> AnyElement {
-    move |row, is_folded, fold, _window, _cx| {
-        Disclosure::new((name, row.0 as u64), !is_folded)
-            .toggle_state(is_folded)
-            .on_click(move |_e, window, cx| fold(!is_folded, window, cx))
-            .into_any_element()
-    }
-}
--- a/crates/assistant2/src/context_picker/thread_context_picker.rs
+++ b/crates/assistant2/src/context_picker/thread_context_picker.rs
@@ -110,45 +110,11 @@ impl PickerDelegate for ThreadContextPickerDelegate {
        window: &mut Window,
        cx: &mut Context<Picker<Self>>,
    ) -> Task<()> {
-        let Ok(threads) = self.thread_store.update(cx, |this, _cx| {
-            this.threads()
-                .into_iter()
-                .map(|thread| ThreadContextEntry {
-                    id: thread.id,
-                    summary: thread.summary,
-                })
-                .collect::<Vec<_>>()
-        }) else {
+        let Some(threads) = self.thread_store.upgrade() else {
            return Task::ready(());
        };

-        let executor = cx.background_executor().clone();
-        let search_task = cx.background_spawn(async move {
-            if query.is_empty() {
-                threads
-            } else {
-                let candidates = threads
-                    .iter()
-                    .enumerate()
-                    .map(|(id, thread)| StringMatchCandidate::new(id, &thread.summary))
-                    .collect::<Vec<_>>();
-                let matches = fuzzy::match_strings(
-                    &candidates,
-                    &query,
-                    false,
-                    100,
-                    &Default::default(),
-                    executor,
-                )
-                .await;
-
-                matches
-                    .into_iter()
-                    .map(|mat| threads[mat.candidate_id].clone())
-                    .collect()
-            }
-        });
-
+        let search_task = search_threads(query, threads, cx);
        cx.spawn_in(window, async move |this, cx| {
            let matches = search_task.await;
            this.update(cx, |this, cx| {
@@ -176,7 +142,9 @@ impl PickerDelegate for ThreadContextPickerDelegate {
            this.update_in(cx, |this, window, cx| {
                this.delegate
                    .context_store
-                    .update(cx, |context_store, cx| context_store.add_thread(thread, cx))
+                    .update(cx, |context_store, cx| {
+                        context_store.add_thread(thread, true, cx)
+                    })
                    .ok();

                match this.delegate.confirm_behavior {
@@ -248,3 +216,46 @@ pub fn render_thread_context_entry(
            )
        })
 }
+
+pub(crate) fn search_threads(
+    query: String,
+    thread_store: Entity<ThreadStore>,
+    cx: &mut App,
+) -> Task<Vec<ThreadContextEntry>> {
+    let threads = thread_store.update(cx, |this, _cx| {
+        this.threads()
+            .into_iter()
+            .map(|thread| ThreadContextEntry {
+                id: thread.id,
+                summary: thread.summary,
+            })
+            .collect::<Vec<_>>()
+    });
+
+    let executor = cx.background_executor().clone();
+    cx.background_spawn(async move {
+        if query.is_empty() {
+            threads
+        } else {
+            let candidates = threads
+                .iter()
+                .enumerate()
+                .map(|(id, thread)| StringMatchCandidate::new(id, &thread.summary))
+                .collect::<Vec<_>>();
+            let matches = fuzzy::match_strings(
+                &candidates,
+                &query,
+                false,
+                100,
+                &Default::default(),
+                executor,
+            )
+            .await;
+
+            matches
+                .into_iter()
+                .map(|mat| threads[mat.candidate_id].clone())
+                .collect()
+        }
+    })
+}
--- a/crates/assistant2/src/context_store.rs
+++ b/crates/assistant2/src/context_store.rs
@@ -64,6 +64,7 @@ impl ContextStore {
    pub fn add_file_from_path(
        &mut self,
        project_path: ProjectPath,
+        remove_if_exists: bool,
        cx: &mut Context<Self>,
    ) -> Task<Result<()>> {
        let workspace = self.workspace.clone();
@@ -86,7 +87,9 @@ impl ContextStore {
            let already_included = this.update(cx, |this, _cx| {
                match this.will_include_buffer(buffer_id, &project_path.path) {
                    Some(FileInclusion::Direct(context_id)) => {
-                        this.remove_context(context_id);
+                        if remove_if_exists {
+                            this.remove_context(context_id);
+                        }
                        true
                    }
                    Some(FileInclusion::InDirectory(_)) => true,
@@ -157,6 +160,7 @@ impl ContextStore {
    pub fn add_directory(
        &mut self,
        project_path: ProjectPath,
+        remove_if_exists: bool,
        cx: &mut Context<Self>,
    ) -> Task<Result<()>> {
        let workspace = self.workspace.clone();
@@ -169,7 +173,9 @@ impl ContextStore {

        let already_included = if let Some(context_id) = self.includes_directory(&project_path.path)
        {
-            self.remove_context(context_id);
+            if remove_if_exists {
+                self.remove_context(context_id);
+            }
            true
        } else {
            false
@@ -256,9 +262,16 @@ impl ContextStore {
            )));
    }

-    pub fn add_thread(&mut self, thread: Entity<Thread>, cx: &mut Context<Self>) {
+    pub fn add_thread(
+        &mut self,
+        thread: Entity<Thread>,
+        remove_if_exists: bool,
+        cx: &mut Context<Self>,
+    ) {
        if let Some(context_id) = self.includes_thread(&thread.read(cx).id()) {
-            self.remove_context(context_id);
+            if remove_if_exists {
+                self.remove_context(context_id);
+            }
        } else {
            self.insert_thread(thread, cx);
        }
--- a/crates/assistant2/src/context_strip.rs
+++ b/crates/assistant2/src/context_strip.rs
@@ -39,7 +39,6 @@ impl ContextStrip {
    pub fn new(
        context_store: Entity<ContextStore>,
        workspace: WeakEntity<Workspace>,
-        editor: WeakEntity<Editor>,
        thread_store: Option<WeakEntity<ThreadStore>>,
        context_picker_menu_handle: PopoverMenuHandle<ContextPicker>,
        suggest_context_kind: SuggestContextKind,
@@ -51,7 +50,6 @@ impl ContextStrip {
                workspace.clone(),
                thread_store.clone(),
                context_store.downgrade(),
-                editor.clone(),
                ConfirmBehavior::KeepOpen,
                window,
                cx,
--- a/crates/assistant2/src/inline_assistant.rs
+++ b/crates/assistant2/src/inline_assistant.rs
@@ -324,7 +324,7 @@ impl InlineAssistant {
    ) {
        let (snapshot, initial_selections) = editor.update(cx, |editor, cx| {
            (
-                editor.buffer().read(cx).snapshot(cx),
+                editor.snapshot(window, cx),
                editor.selections.all::<Point>(cx),
            )
        });
@@ -338,7 +338,37 @@ impl InlineAssistant {
                if selection.end.column == 0 {
                    selection.end.row -= 1;
                }
-                selection.end.column = snapshot.line_len(MultiBufferRow(selection.end.row));
+                selection.end.column = snapshot
+                    .buffer_snapshot
+                    .line_len(MultiBufferRow(selection.end.row));
+            } else if let Some(fold) =
+                snapshot.crease_for_buffer_row(MultiBufferRow(selection.end.row))
+            {
+                selection.start = fold.range().start;
+                selection.end = fold.range().end;
+                if MultiBufferRow(selection.end.row) < snapshot.buffer_snapshot.max_row() {
+                    let chars = snapshot
+                        .buffer_snapshot
+                        .chars_at(Point::new(selection.end.row + 1, 0));
+
+                    for c in chars {
+                        if c == '\n' {
+                            break;
+                        }
+                        if c.is_whitespace() {
+                            continue;
+                        }
+                        if snapshot
+                            .language_at(selection.end)
+                            .is_some_and(|language| language.config().brackets.is_closing_brace(c))
+                        {
+                            selection.end.row += 1;
+                            selection.end.column = snapshot
+                                .buffer_snapshot
+                                .line_len(MultiBufferRow(selection.end.row));
+                        }
+                    }
+                }
            }

            if let Some(prev_selection) = selections.last_mut() {
@@ -354,6 +384,7 @@ impl InlineAssistant {
            }
            selections.push(selection);
        }
+        let snapshot = &snapshot.buffer_snapshot;
        let newest_selection = newest_selection.unwrap();

        let mut codegen_ranges = Vec::new();
--- a/crates/assistant2/src/inline_prompt_editor.rs
+++ b/crates/assistant2/src/inline_prompt_editor.rs
@@ -861,7 +861,6 @@ impl PromptEditor<BufferCodegen> {
            ContextStrip::new(
                context_store.clone(),
                workspace.clone(),
-                prompt_editor.downgrade(),
                thread_store.clone(),
                context_picker_menu_handle.clone(),
                SuggestContextKind::Thread,
@@ -1014,7 +1013,6 @@ impl PromptEditor<TerminalCodegen> {
            ContextStrip::new(
                context_store.clone(),
                workspace.clone(),
-                prompt_editor.downgrade(),
                thread_store.clone(),
                context_picker_menu_handle.clone(),
                SuggestContextKind::Thread,
--- a/crates/assistant2/src/message_editor.rs
+++ b/crates/assistant2/src/message_editor.rs
@@ -2,42 +2,39 @@ use std::sync::Arc;

 use collections::HashSet;
 use editor::actions::MoveUp;
-use editor::{Editor, EditorElement, EditorEvent, EditorStyle};
+use editor::{ContextMenuOptions, ContextMenuPlacement, Editor, EditorElement, EditorStyle};
 use fs::Fs;
 use git::ExpandCommitEditor;
 use git_ui::git_panel;
 use gpui::{
-    Animation, AnimationExt, App, DismissEvent, Entity, Focusable, Subscription, TextStyle,
+    point, Animation, AnimationExt, App, DismissEvent, Entity, Focusable, Subscription, TextStyle,
    WeakEntity,
 };
 use language_model::LanguageModelRegistry;
 use language_model_selector::ToggleModelSelector;
 use project::Project;
-use rope::Point;
 use settings::Settings;
 use std::time::Duration;
-use text::Bias;
 use theme::ThemeSettings;
 use ui::{
    prelude::*, ButtonLike, KeyBinding, PlatformStyle, PopoverMenu, PopoverMenuHandle, Tooltip,
 };
-use util::ResultExt;
 use vim_mode_setting::VimModeSetting;
-use workspace::notifications::{NotificationId, NotifyTaskExt};
-use workspace::{Toast, Workspace};
+use workspace::Workspace;

 use crate::assistant_model_selector::AssistantModelSelector;
-use crate::context_picker::{ConfirmBehavior, ContextPicker};
+use crate::context_picker::{ConfirmBehavior, ContextPicker, ContextPickerCompletionProvider};
 use crate::context_store::{refresh_context_store_text, ContextStore};
 use crate::context_strip::{ContextStrip, ContextStripEvent, SuggestContextKind};
+use crate::profile_selector::ProfileSelector;
 use crate::thread::{RequestKind, Thread};
 use crate::thread_store::ThreadStore;
-use crate::tool_selector::ToolSelector;
-use crate::{Chat, ChatMode, RemoveAllContext, ToggleContextPicker};
+use crate::{Chat, ChatMode, RemoveAllContext, ThreadEvent, ToggleContextPicker};

 pub struct MessageEditor {
    thread: Entity<Thread>,
    editor: Entity<Editor>,
+    #[allow(dead_code)]
    workspace: WeakEntity<Workspace>,
    project: Entity<Project>,
    context_store: Entity<ContextStore>,
@@ -46,7 +43,7 @@ pub struct MessageEditor {
    inline_context_picker: Entity<ContextPicker>,
    inline_context_picker_menu_handle: PopoverMenuHandle<ContextPicker>,
    model_selector: Entity<AssistantModelSelector>,
-    tool_selector: Entity<ToolSelector>,
+    profile_selector: Entity<ProfileSelector>,
    _subscriptions: Vec<Subscription>,
 }

@@ -60,7 +57,6 @@ impl MessageEditor {
        window: &mut Window,
        cx: &mut Context<Self>,
    ) -> Self {
-        let tools = thread.read(cx).tools().clone();
        let context_picker_menu_handle = PopoverMenuHandle::default();
        let inline_context_picker_menu_handle = PopoverMenuHandle::default();
        let model_selector_menu_handle = PopoverMenuHandle::default();
@@ -69,16 +65,30 @@ impl MessageEditor {
            let mut editor = Editor::auto_height(10, window, cx);
            editor.set_placeholder_text("Ask anything, @ to mention, ↑ to select", cx);
            editor.set_show_indent_guides(false, cx);
+            editor.set_context_menu_options(ContextMenuOptions {
+                min_entries_visible: 12,
+                max_entries_visible: 12,
+                placement: Some(ContextMenuPlacement::Above),
+            });

            editor
        });

+        let editor_entity = editor.downgrade();
+        editor.update(cx, |editor, _| {
+            editor.set_completion_provider(Some(Box::new(ContextPickerCompletionProvider::new(
+                workspace.clone(),
+                context_store.downgrade(),
+                Some(thread_store.clone()),
+                editor_entity,
+            ))));
+        });
+
        let inline_context_picker = cx.new(|cx| {
            ContextPicker::new(
                workspace.clone(),
                Some(thread_store.clone()),
                context_store.downgrade(),
-                editor.downgrade(),
                ConfirmBehavior::Close,
                window,
                cx,
@@ -89,7 +99,6 @@ impl MessageEditor {
            ContextStrip::new(
                context_store.clone(),
                workspace.clone(),
-                editor.downgrade(),
                Some(thread_store.clone()),
                context_picker_menu_handle.clone(),
                SuggestContextKind::File,
@@ -99,7 +108,6 @@ impl MessageEditor {
        });

        let subscriptions = vec![
-            cx.subscribe_in(&editor, window, Self::handle_editor_event),
            cx.subscribe_in(
                &inline_context_picker,
                window,
@@ -120,14 +128,14 @@ impl MessageEditor {
            inline_context_picker_menu_handle,
            model_selector: cx.new(|cx| {
                AssistantModelSelector::new(
-                    fs,
+                    fs.clone(),
                    model_selector_menu_handle,
                    editor.focus_handle(cx),
                    window,
                    cx,
                )
            }),
-            tool_selector: cx.new(|cx| ToolSelector::new(tools, cx)),
+            profile_selector: cx.new(|cx| ProfileSelector::new(fs, thread_store, cx)),
            _subscriptions: subscriptions,
        }
    }
@@ -144,7 +152,6 @@ impl MessageEditor {
    ) {
        self.context_picker_menu_handle.toggle(window, cx);
    }
-
    pub fn remove_all_context(
        &mut self,
        _: &RemoveAllContext,
@@ -206,13 +213,23 @@ impl MessageEditor {
        let refresh_task =
            refresh_context_store_text(self.context_store.clone(), &HashSet::default(), cx);

+        let system_prompt_context_task = self.thread.read(cx).load_system_prompt_context(cx);
+
        let thread = self.thread.clone();
        let context_store = self.context_store.clone();
-        let git_store = self.project.read(cx).git_store();
-        let checkpoint = git_store.read(cx).checkpoint(cx);
+        let checkpoint = self.project.read(cx).git_store().read(cx).checkpoint(cx);
        cx.spawn(async move |_, cx| {
+            let checkpoint = checkpoint.await.ok();
            refresh_task.await;
-            let checkpoint = checkpoint.await.log_err();
+            let (system_prompt_context, load_error) = system_prompt_context_task.await;
+            thread
+                .update(cx, |thread, cx| {
+                    thread.set_system_prompt_context(system_prompt_context);
+                    if let Some(load_error) = load_error {
+                        cx.emit(ThreadEvent::ShowError(load_error));
+                    }
+                })
+                .ok();
            thread
                .update(cx, |thread, cx| {
                    let context = context_store.read(cx).snapshot(cx).collect::<Vec<_>>();
@@ -224,34 +241,6 @@ impl MessageEditor {
        .detach();
    }

-    fn handle_editor_event(
-        &mut self,
-        editor: &Entity<Editor>,
-        event: &EditorEvent,
-        window: &mut Window,
-        cx: &mut Context<Self>,
-    ) {
-        match event {
-            EditorEvent::SelectionsChanged { .. } => {
-                editor.update(cx, |editor, cx| {
-                    let snapshot = editor.buffer().read(cx).snapshot(cx);
-                    let newest_cursor = editor.selections.newest::<Point>(cx).head();
-                    if newest_cursor.column > 0 {
-                        let behind_cursor = snapshot.clip_point(
-                            Point::new(newest_cursor.row, newest_cursor.column - 1),
-                            Bias::Left,
-                        );
-                        let char_behind_cursor = snapshot.chars_at(behind_cursor).next();
-                        if char_behind_cursor == Some('@') {
-                            self.inline_context_picker_menu_handle.show(window, cx);
-                        }
-                    }
-                });
-            }
-            _ => {}
-        }
-    }
-
    fn handle_inline_context_picker_event(
        &mut self,
        _inline_context_picker: &Entity<ContextPicker>,
@@ -290,34 +279,6 @@ impl MessageEditor {
            self.context_strip.focus_handle(cx).focus(window);
        }
    }
-
-    fn handle_feedback_click(
-        &mut self,
-        is_positive: bool,
-        window: &mut Window,
-        cx: &mut Context<Self>,
-    ) {
-        let workspace = self.workspace.clone();
-        let report = self
-            .thread
-            .update(cx, |thread, cx| thread.report_feedback(is_positive, cx));
-
-        cx.spawn(async move |_, cx| {
-            report.await?;
-            workspace.update(cx, |workspace, cx| {
-                let message = if is_positive {
-                    "Positive feedback recorded. Thank you!"
-                } else {
-                    "Negative feedback recorded. Thank you for helping us improve!"
-                };
-
-                struct ThreadFeedback;
-                let id = NotificationId::unique::<ThreadFeedback>();
-                workspace.show_toast(Toast::new(id, message).autohide(), cx)
-            })
-        })
-        .detach_and_notify_err(window, cx);
-    }
 }

 impl Focusable for MessageEditor {
@@ -330,9 +291,11 @@ impl Render for MessageEditor {
    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
        let font_size = TextSize::Default.rems(cx);
        let line_height = font_size.to_pixels(window.rem_size()) * 1.5;
+
        let focus_handle = self.editor.focus_handle(cx);
        let inline_context_picker = self.inline_context_picker.clone();
-        let bg_color = cx.theme().colors().editor_background;
+
+        let empty_thread = self.thread.read(cx).is_empty();
        let is_generating = self.thread.read(cx).is_generating();
        let is_model_selected = self.is_model_selected(cx);
        let is_editor_empty = self.is_editor_empty(cx);
@@ -354,11 +317,29 @@ impl Render for MessageEditor {

        let project = self.thread.read(cx).project();
        let changed_files = if let Some(repository) = project.read(cx).active_repository(cx) {
-            repository.read(cx).status().count()
+            repository.read(cx).cached_status().count()
        } else {
            0
        };

+        let border_color = cx.theme().colors().border;
+        let active_color = cx.theme().colors().element_selected;
+        let editor_bg_color = cx.theme().colors().editor_background;
+        let bg_edit_files_disclosure = editor_bg_color.blend(active_color.opacity(0.3));
+
+        let edit_files_container = || {
+            h_flex()
+                .mx_2()
+                .py_1()
+                .pl_2p5()
+                .pr_1()
+                .bg(bg_edit_files_disclosure)
+                .border_1()
+                .border_color(border_color)
+                .justify_between()
+                .flex_wrap()
+        };
+
        v_flex()
            .size_full()
            .when(is_generating, |parent| {
@@ -370,7 +351,7 @@ impl Render for MessageEditor {
                            .pl_2()
                            .pr_1()
                            .py_1()
-                            .bg(cx.theme().colors().editor_background)
+                            .bg(editor_bg_color)
                            .border_1()
                            .border_color(cx.theme().colors().border_variant)
                            .rounded_lg()
@@ -419,73 +400,163 @@ impl Render for MessageEditor {
                    ),
                )
            })
-            .when(changed_files > 0, |parent| {
-                parent.child(
-                    v_flex()
-                        .mx_2()
-                        .bg(cx.theme().colors().element_background)
-                        .border_1()
-                        .border_b_0()
-                        .border_color(cx.theme().colors().border)
-                        .rounded_t_md()
-                        .child(
-                            h_flex()
-                                .justify_between()
-                                .p_2()
-                                .child(
-                                    h_flex()
-                                        .gap_2()
-                                        .child(
-                                            IconButton::new(
-                                                "edits-disclosure",
-                                                IconName::GitBranchSmall,
-                                            )
-                                            .icon_size(IconSize::Small)
-                                            .on_click(
-                                                |_ev, _window, cx| {
-                                                    cx.defer(|cx| {
-                                                        cx.dispatch_action(&git_panel::ToggleFocus)
-                                                    });
-                                                },
-                                            ),
-                                        )
-                                        .child(
-                                            Label::new(format!(
-                                                "{} {} changed",
-                                                changed_files,
-                                                if changed_files == 1 { "file" } else { "files" }
-                                            ))
-                                            .size(LabelSize::XSmall)
-                                            .color(Color::Muted),
-                                        ),
-                                )
-                                .child(
-                                    h_flex()
-                                        .gap_2()
-                                        .child(
-                                            Button::new("review", "Review")
-                                                .label_size(LabelSize::XSmall)
-                                                .on_click(|_event, _window, cx| {
-                                                    cx.defer(|cx| {
-                                                        cx.dispatch_action(
-                                                            &git_ui::project_diff::Diff,
-                                                        );
-                                                    });
-                                                }),
-                                        )
-                                        .child(
-                                            Button::new("commit", "Commit")
-                                                .label_size(LabelSize::XSmall)
-                                                .on_click(|_event, _window, cx| {
-                                                    cx.defer(|cx| {
-                                                        cx.dispatch_action(&ExpandCommitEditor)
-                                                    });
-                                                }),
-                                        ),
-                                ),
-                        ),
-                )
-            })
+            .when(
+                changed_files > 0 && !is_generating && !empty_thread,
+                |parent| {
+                    parent.child(
+                        edit_files_container()
+                            .border_b_0()
+                            .rounded_t_md()
+                            .shadow(smallvec::smallvec![gpui::BoxShadow {
+                                color: gpui::black().opacity(0.15),
+                                offset: point(px(1.), px(-1.)),
+                                blur_radius: px(3.),
+                                spread_radius: px(0.),
+                            }])
+                            .child(
+                                h_flex()
+                                    .gap_2()
+                                    .child(Label::new("Edits").size(LabelSize::XSmall))
+                                    .child(div().size_1().rounded_full().bg(border_color))
+                                    .child(
+                                        Label::new(format!(
+                                            "{} {}",
+                                            changed_files,
+                                            if changed_files == 1 { "file" } else { "files" }
+                                        ))
+                                        .size(LabelSize::XSmall),
+                                    ),
+                            )
+                            .child(
+                                h_flex()
+                                    .gap_1()
+                                    .child(
+                                        Button::new("panel", "Open Git Panel")
+                                            .label_size(LabelSize::XSmall)
+                                            .key_binding({
+                                                let focus_handle = focus_handle.clone();
+                                                KeyBinding::for_action_in(
+                                                    &git_panel::ToggleFocus,
+                                                    &focus_handle,
+                                                    window,
+                                                    cx,
+                                                )
+                                                .map(|kb| kb.size(rems_from_px(10.)))
+                                            })
+                                            .on_click(|_ev, _window, cx| {
+                                                cx.defer(|cx| {
+                                                    cx.dispatch_action(&git_panel::ToggleFocus)
+                                                });
+                                            }),
+                                    )
+                                    .child(
+                                        Button::new("review", "Review Diff")
+                                            .label_size(LabelSize::XSmall)
+                                            .key_binding({
+                                                let focus_handle = focus_handle.clone();
+                                                KeyBinding::for_action_in(
+                                                    &git_ui::project_diff::Diff,
+                                                    &focus_handle,
+                                                    window,
+                                                    cx,
+                                                )
+                                                .map(|kb| kb.size(rems_from_px(10.)))
+                                            })
+                                            .on_click(|_event, _window, cx| {
+                                                cx.defer(|cx| {
+                                                    cx.dispatch_action(&git_ui::project_diff::Diff)
+                                                });
+                                            }),
+                                    )
+                                    .child(
+                                        Button::new("commit", "Commit Changes")
+                                            .label_size(LabelSize::XSmall)
+                                            .key_binding({
+                                                let focus_handle = focus_handle.clone();
+                                                KeyBinding::for_action_in(
+                                                    &ExpandCommitEditor,
+                                                    &focus_handle,
+                                                    window,
+                                                    cx,
+                                                )
+                                                .map(|kb| kb.size(rems_from_px(10.)))
+                                            })
+                                            .on_click(|_event, _window, cx| {
+                                                cx.defer(|cx| {
+                                                    cx.dispatch_action(&ExpandCommitEditor)
+                                                });
+                                            }),
+                                    ),
+                            ),
+                    )
+                },
+            )
+            .when(
+                changed_files > 0 && !is_generating && empty_thread,
+                |parent| {
+                    parent.child(
+                        edit_files_container()
+                            .mb_2()
+                            .rounded_md()
+                            .child(
+                                h_flex()
+                                    .gap_2()
+                                    .child(Label::new("Consider committing your changes before starting a fresh thread").size(LabelSize::XSmall))
+                                    .child(div().size_1().rounded_full().bg(border_color))
+                                    .child(
+                                        Label::new(format!(
+                                            "{} {}",
+                                            changed_files,
+                                            if changed_files == 1 { "file" } else { "files" }
+                                        ))
+                                        .size(LabelSize::XSmall),
+                                    ),
+                            )
+                            .child(
+                                h_flex()
+                                    .gap_1()
+                                    .child(
+                                        Button::new("review", "Review Diff")
+                                            .label_size(LabelSize::XSmall)
+                                            .key_binding({
+                                                let focus_handle = focus_handle.clone();
+                                                KeyBinding::for_action_in(
+                                                    &git_ui::project_diff::Diff,
+                                                    &focus_handle,
+                                                    window,
+                                                    cx,
+                                                )
+                                                .map(|kb| kb.size(rems_from_px(10.)))
+                                            })
+                                            .on_click(|_event, _window, cx| {
+                                                cx.defer(|cx| {
+                                                    cx.dispatch_action(&git_ui::project_diff::Diff)
+                                                });
+                                            }),
+                                    )
+                                    .child(
+                                        Button::new("commit", "Commit Changes")
+                                            .label_size(LabelSize::XSmall)
+                                            .key_binding({
+                                                let focus_handle = focus_handle.clone();
+                                                KeyBinding::for_action_in(
+                                                    &ExpandCommitEditor,
+                                                    &focus_handle,
+                                                    window,
+                                                    cx,
+                                                )
+                                                .map(|kb| kb.size(rems_from_px(10.)))
+                                            })
+                                            .on_click(|_event, _window, cx| {
+                                                cx.defer(|cx| {
+                                                    cx.dispatch_action(&ExpandCommitEditor)
+                                                });
+                                            }),
+                                    ),
+                            ),
+                    )
+                },
+            )
            .child(
                v_flex()
                    .key_context("MessageEditor")
@@ -500,48 +571,10 @@ impl Render for MessageEditor {
                    .on_action(cx.listener(Self::toggle_chat_mode))
                    .gap_2()
                    .p_2()
-                    .bg(bg_color)
+                    .bg(editor_bg_color)
                    .border_t_1()
                    .border_color(cx.theme().colors().border)
-                    .child(
-                        h_flex()
-                            .justify_between()
-                            .child(self.context_strip.clone())
-                            .when(!self.thread.read(cx).is_empty(), |this| {
-                                this.child(
-                                    h_flex()
-                                        .gap_2()
-                                        .child(
-                                            IconButton::new(
-                                                "feedback-thumbs-up",
-                                                IconName::ThumbsUp,
-                                            )
-                                            .style(ButtonStyle::Subtle)
-                                            .icon_size(IconSize::Small)
-                                            .tooltip(Tooltip::text("Helpful"))
-                                            .on_click(
-                                                cx.listener(|this, _, window, cx| {
-                                                    this.handle_feedback_click(true, window, cx);
-                                                }),
-                                            ),
-                                        )
-                                        .child(
-                                            IconButton::new(
-                                                "feedback-thumbs-down",
-                                                IconName::ThumbsDown,
-                                            )
-                                            .style(ButtonStyle::Subtle)
-                                            .icon_size(IconSize::Small)
-                                            .tooltip(Tooltip::text("Not Helpful"))
-                                            .on_click(
-                                                cx.listener(|this, _, window, cx| {
-                                                    this.handle_feedback_click(false, window, cx);
-                                                }),
-                                            ),
-                                        ),
-                                )
-                            }),
-                    )
+                    .child(h_flex().justify_between().child(self.context_strip.clone()))
                    .child(
                        v_flex()
                            .gap_5()
@@ -561,9 +594,10 @@ impl Render for MessageEditor {
                                EditorElement::new(
                                    &self.editor,
                                    EditorStyle {
-                                        background: bg_color,
+                                        background: editor_bg_color,
                                        local_player: cx.theme().players().local(),
                                        text: text_style,
+                                        syntax: cx.theme().syntax().clone(),
                                        ..Default::default()
                                    },
                                )
@@ -589,7 +623,7 @@ impl Render for MessageEditor {
                            .child(
                                h_flex()
                                    .justify_between()
-                                    .child(h_flex().gap_2().child(self.tool_selector.clone()))
+                                    .child(h_flex().gap_2().child(self.profile_selector.clone()))
                                    .child(
                                        h_flex().gap_1().child(self.model_selector.clone()).child(
                                            ButtonLike::new("submit-message")
--- a/crates/assistant2/src/profile_selector.rs
+++ b/crates/assistant2/src/profile_selector.rs
@@ -0,0 +1,121 @@
+use std::sync::Arc;
+
+use assistant_settings::{AgentProfile, AssistantSettings};
+use fs::Fs;
+use gpui::{prelude::*, Action, Entity, Subscription, WeakEntity};
+use indexmap::IndexMap;
+use settings::{update_settings_file, Settings as _, SettingsStore};
+use ui::{prelude::*, ContextMenu, ContextMenuEntry, PopoverMenu, Tooltip};
+use util::ResultExt as _;
+
+use crate::{ManageProfiles, ThreadStore};
+
+pub struct ProfileSelector {
+    profiles: IndexMap<Arc<str>, AgentProfile>,
+    fs: Arc<dyn Fs>,
+    thread_store: WeakEntity<ThreadStore>,
+    _subscriptions: Vec<Subscription>,
+}
+
+impl ProfileSelector {
+    pub fn new(
+        fs: Arc<dyn Fs>,
+        thread_store: WeakEntity<ThreadStore>,
+        cx: &mut Context<Self>,
+    ) -> Self {
+        let settings_subscription = cx.observe_global::<SettingsStore>(move |this, cx| {
+            this.refresh_profiles(cx);
+        });
+
+        let mut this = Self {
+            profiles: IndexMap::default(),
+            fs,
+            thread_store,
+            _subscriptions: vec![settings_subscription],
+        };
+        this.refresh_profiles(cx);
+
+        this
+    }
+
+    fn refresh_profiles(&mut self, cx: &mut Context<Self>) {
+        let settings = AssistantSettings::get_global(cx);
+
+        self.profiles = settings.profiles.clone();
+    }
+
+    fn build_context_menu(
+        &self,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> Entity<ContextMenu> {
+        ContextMenu::build(window, cx, |mut menu, _window, cx| {
+            let settings = AssistantSettings::get_global(cx);
+            let icon_position = IconPosition::Start;
+
+            menu = menu.header("Profiles");
+            for (profile_id, profile) in self.profiles.clone() {
+                menu = menu.toggleable_entry(
+                    profile.name.clone(),
+                    profile_id == settings.default_profile,
+                    icon_position,
+                    None,
+                    {
+                        let fs = self.fs.clone();
+                        let thread_store = self.thread_store.clone();
+                        move |_window, cx| {
+                            update_settings_file::<AssistantSettings>(fs.clone(), cx, {
+                                let profile_id = profile_id.clone();
+                                move |settings, _cx| {
+                                    settings.set_profile(profile_id.clone());
+                                }
+                            });
+
+                            thread_store
+                                .update(cx, |this, cx| {
+                                    this.load_profile_by_id(&profile_id, cx);
+                                })
+                                .log_err();
+                        }
+                    },
+                );
+            }
+
+            menu = menu.separator();
+            menu = menu.item(
+                ContextMenuEntry::new("Configure Profiles")
+                    .icon(IconName::Pencil)
+                    .icon_color(Color::Muted)
+                    .handler(move |window, cx| {
+                        window.dispatch_action(ManageProfiles.boxed_clone(), cx);
+                    }),
+            );
+
+            menu
+        })
+    }
+}
+
+impl Render for ProfileSelector {
+    fn render(&mut self, _window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
+        let settings = AssistantSettings::get_global(cx);
+        let profile = settings
+            .profiles
+            .get(&settings.default_profile)
+            .map(|profile| profile.name.clone())
+            .unwrap_or_else(|| "Unknown".into());
+
+        let this = cx.entity().clone();
+        PopoverMenu::new("tool-selector")
+            .menu(move |window, cx| {
+                Some(this.update(cx, |this, cx| this.build_context_menu(window, cx)))
+            })
+            .trigger_with_tooltip(
+                Button::new("profile-selector-button", profile)
+                    .style(ButtonStyle::Filled)
+                    .label_size(LabelSize::Small),
+                Tooltip::text("Change Profile"),
+            )
+            .anchor(gpui::Corner::BottomLeft)
+    }
+}
--- a/crates/assistant2/src/thread.rs
+++ b/crates/assistant2/src/thread.rs
--- a/crates/assistant2/src/thread_store.rs
+++ b/crates/assistant2/src/thread_store.rs
@@ -1,8 +1,10 @@
+use std::borrow::Cow;
 use std::path::PathBuf;
 use std::sync::Arc;

 use anyhow::{anyhow, Result};
-use assistant_tool::{ToolId, ToolWorkingSet};
+use assistant_settings::{AgentProfile, AssistantSettings};
+use assistant_tool::{ToolId, ToolSource, ToolWorkingSet};
 use chrono::{DateTime, Utc};
 use collections::HashMap;
 use context_server::manager::ContextServerManager;
@@ -12,15 +14,16 @@ use futures::FutureExt as _;
 use gpui::{
    prelude::*, App, BackgroundExecutor, Context, Entity, Global, ReadGlobal, SharedString, Task,
 };
-use heed::types::{SerdeBincode, SerdeJson};
+use heed::types::SerdeBincode;
 use heed::Database;
-use language_model::{LanguageModelToolUseId, Role};
+use language_model::{LanguageModelToolUseId, Role, TokenUsage};
 use project::Project;
 use prompt_store::PromptBuilder;
 use serde::{Deserialize, Serialize};
+use settings::Settings as _;
 use util::ResultExt as _;

-use crate::thread::{MessageId, ProjectSnapshot, Thread, ThreadId};
+use crate::thread::{MessageId, ProjectSnapshot, Thread, ThreadEvent, ThreadId};

 pub fn init(cx: &mut App) {
    ThreadsDatabase::init(cx);
@@ -56,6 +59,7 @@ impl ThreadStore {
                context_server_tool_ids: HashMap::default(),
                threads: Vec::new(),
            };
+            this.load_default_profile(cx);
            this.register_context_server_handlers(cx);
            this.reload(cx).detach_and_log_err(cx);

@@ -113,7 +117,7 @@ impl ThreadStore {
                .await?
                .ok_or_else(|| anyhow!("no thread found with ID: {id:?}"))?;

-            this.update(cx, |this, cx| {
+            let thread = this.update(cx, |this, cx| {
                cx.new(|cx| {
                    Thread::deserialize(
                        id.clone(),
@@ -124,7 +128,19 @@ impl ThreadStore {
                        cx,
                    )
                })
-            })
+            })?;
+
+            let (system_prompt_context, load_error) = thread
+                .update(cx, |thread, cx| thread.load_system_prompt_context(cx))?
+                .await;
+            thread.update(cx, |thread, cx| {
+                thread.set_system_prompt_context(system_prompt_context);
+                if let Some(load_error) = load_error {
+                    cx.emit(ThreadEvent::ShowError(load_error));
+                }
+            })?;
+
+            Ok(thread)
        })
    }

@@ -171,6 +187,45 @@ impl ThreadStore {
        })
    }

+    fn load_default_profile(&self, cx: &Context<Self>) {
+        let assistant_settings = AssistantSettings::get_global(cx);
+
+        self.load_profile_by_id(&assistant_settings.default_profile, cx);
+    }
+
+    pub fn load_profile_by_id(&self, profile_id: &Arc<str>, cx: &Context<Self>) {
+        let assistant_settings = AssistantSettings::get_global(cx);
+
+        if let Some(profile) = assistant_settings.profiles.get(profile_id) {
+            self.load_profile(profile);
+        }
+    }
+
+    pub fn load_profile(&self, profile: &AgentProfile) {
+        self.tools.disable_all_tools();
+        self.tools.enable(
+            ToolSource::Native,
+            &profile
+                .tools
+                .iter()
+                .filter_map(|(tool, enabled)| enabled.then(|| tool.clone()))
+                .collect::<Vec<_>>(),
+        );
+
+        for (context_server_id, preset) in &profile.context_servers {
+            self.tools.enable(
+                ToolSource::ContextServer {
+                    id: context_server_id.clone().into(),
+                },
+                &preset
+                    .tools
+                    .iter()
+                    .filter_map(|(tool, enabled)| enabled.then(|| tool.clone()))
+                    .collect::<Vec<_>>(),
+            )
+        }
+    }
+
    fn register_context_server_handlers(&self, cx: &mut Context<Self>) {
        cx.subscribe(
            &self.context_server_manager.clone(),
@@ -247,24 +302,65 @@ pub struct SerializedThreadMetadata {

 #[derive(Serialize, Deserialize)]
 pub struct SerializedThread {
+    pub version: String,
    pub summary: SharedString,
    pub updated_at: DateTime<Utc>,
    pub messages: Vec<SerializedMessage>,
    #[serde(default)]
    pub initial_project_snapshot: Option<Arc<ProjectSnapshot>>,
+    #[serde(default)]
+    pub cumulative_token_usage: TokenUsage,
+}
+
+impl SerializedThread {
+    pub const VERSION: &'static str = "0.1.0";
+
+    pub fn from_json(json: &[u8]) -> Result<Self> {
+        let saved_thread_json = serde_json::from_slice::<serde_json::Value>(json)?;
+        match saved_thread_json.get("version") {
+            Some(serde_json::Value::String(version)) => match version.as_str() {
+                SerializedThread::VERSION => Ok(serde_json::from_value::<SerializedThread>(
+                    saved_thread_json,
+                )?),
+                _ => Err(anyhow!(
+                    "unrecognized serialized thread version: {}",
+                    version
+                )),
+            },
+            None => {
+                let saved_thread =
+                    serde_json::from_value::<LegacySerializedThread>(saved_thread_json)?;
+                Ok(saved_thread.upgrade())
+            }
+            version => Err(anyhow!(
+                "unrecognized serialized thread version: {:?}",
+                version
+            )),
+        }
+    }
 }

 #[derive(Debug, Serialize, Deserialize)]
 pub struct SerializedMessage {
    pub id: MessageId,
    pub role: Role,
-    pub text: String,
+    #[serde(default)]
+    pub segments: Vec<SerializedMessageSegment>,
    #[serde(default)]
    pub tool_uses: Vec<SerializedToolUse>,
    #[serde(default)]
    pub tool_results: Vec<SerializedToolResult>,
 }

+#[derive(Debug, Serialize, Deserialize)]
+#[serde(tag = "type")]
+pub enum SerializedMessageSegment {
+    #[serde(rename = "text")]
+    Text { text: String },
+    #[serde(rename = "thinking")]
+    Thinking { text: String },
+}
+
 #[derive(Debug, Serialize, Deserialize)]
 pub struct SerializedToolUse {
    pub id: LanguageModelToolUseId,
@@ -279,6 +375,51 @@ pub struct SerializedToolResult {
    pub content: Arc<str>,
 }

+#[derive(Serialize, Deserialize)]
+struct LegacySerializedThread {
+    pub summary: SharedString,
+    pub updated_at: DateTime<Utc>,
+    pub messages: Vec<LegacySerializedMessage>,
+    #[serde(default)]
+    pub initial_project_snapshot: Option<Arc<ProjectSnapshot>>,
+}
+
+impl LegacySerializedThread {
+    pub fn upgrade(self) -> SerializedThread {
+        SerializedThread {
+            version: SerializedThread::VERSION.to_string(),
+            summary: self.summary,
+            updated_at: self.updated_at,
+            messages: self.messages.into_iter().map(|msg| msg.upgrade()).collect(),
+            initial_project_snapshot: self.initial_project_snapshot,
+            cumulative_token_usage: TokenUsage::default(),
+        }
+    }
+}
+
+#[derive(Debug, Serialize, Deserialize)]
+struct LegacySerializedMessage {
+    pub id: MessageId,
+    pub role: Role,
+    pub text: String,
+    #[serde(default)]
+    pub tool_uses: Vec<SerializedToolUse>,
+    #[serde(default)]
+    pub tool_results: Vec<SerializedToolResult>,
+}
+
+impl LegacySerializedMessage {
+    fn upgrade(self) -> SerializedMessage {
+        SerializedMessage {
+            id: self.id,
+            role: self.role,
+            segments: vec![SerializedMessageSegment::Text { text: self.text }],
+            tool_uses: self.tool_uses,
+            tool_results: self.tool_results,
+        }
+    }
+}
+
 struct GlobalThreadsDatabase(
    Shared<BoxFuture<'static, Result<Arc<ThreadsDatabase>, Arc<anyhow::Error>>>>,
 );
@@ -288,7 +429,25 @@ impl Global for GlobalThreadsDatabase {}
 pub(crate) struct ThreadsDatabase {
    executor: BackgroundExecutor,
    env: heed::Env,
-    threads: Database<SerdeBincode<ThreadId>, SerdeJson<SerializedThread>>,
+    threads: Database<SerdeBincode<ThreadId>, SerializedThread>,
+}
+
+impl heed::BytesEncode<'_> for SerializedThread {
+    type EItem = SerializedThread;
+
+    fn bytes_encode(item: &Self::EItem) -> Result<Cow<[u8]>, heed::BoxedError> {
+        serde_json::to_vec(item).map(Cow::Owned).map_err(Into::into)
+    }
+}
+
+impl<'a> heed::BytesDecode<'a> for SerializedThread {
+    type DItem = SerializedThread;
+
+    fn bytes_decode(bytes: &'a [u8]) -> Result<Self::DItem, heed::BoxedError> {
+        // We implement this type manually because we want to call `SerializedThread::from_json`,
+        // instead of the Deserialize trait implementation for `SerializedThread`.
+        SerializedThread::from_json(bytes).map_err(Into::into)
+    }
 }

 impl ThreadsDatabase {
--- a/crates/assistant2/src/tool_selector.rs
+++ b/crates/assistant2/src/tool_selector.rs
@@ -1,156 +0,0 @@
-use std::sync::Arc;
-
-use assistant_tool::{ToolSource, ToolWorkingSet};
-use gpui::Entity;
-use scripting_tool::ScriptingTool;
-use ui::{prelude::*, ContextMenu, PopoverMenu, Tooltip};
-
-use crate::agent_profile::AgentProfile;
-
-pub struct ToolSelector {
-    profiles: Vec<AgentProfile>,
-    tools: Arc<ToolWorkingSet>,
-}
-
-impl ToolSelector {
-    pub fn new(tools: Arc<ToolWorkingSet>, _cx: &mut Context<Self>) -> Self {
-        Self {
-            profiles: vec![AgentProfile::read_only(), AgentProfile::code_writer()],
-            tools,
-        }
-    }
-
-    fn build_context_menu(
-        &self,
-        window: &mut Window,
-        cx: &mut Context<Self>,
-    ) -> Entity<ContextMenu> {
-        let profiles = self.profiles.clone();
-        let tool_set = self.tools.clone();
-        ContextMenu::build_persistent(window, cx, move |mut menu, _window, cx| {
-            let icon_position = IconPosition::End;
-
-            menu = menu.header("Profiles");
-            for profile in profiles.clone() {
-                menu = menu.toggleable_entry(profile.name.clone(), false, icon_position, None, {
-                    let tools = tool_set.clone();
-                    move |_window, cx| {
-                        tools.disable_source(ToolSource::Native, cx);
-                        tools.enable(
-                            ToolSource::Native,
-                            &profile
-                                .tools
-                                .iter()
-                                .filter_map(|(tool, enabled)| enabled.then(|| tool.clone()))
-                                .collect::<Vec<_>>(),
-                        );
-                    }
-                });
-            }
-
-            menu = menu.separator();
-
-            let tools_by_source = tool_set.tools_by_source(cx);
-
-            let all_tools_enabled = tool_set.are_all_tools_enabled();
-            menu = menu.toggleable_entry("All Tools", all_tools_enabled, icon_position, None, {
-                let tools = tool_set.clone();
-                move |_window, cx| {
-                    if all_tools_enabled {
-                        tools.disable_all_tools(cx);
-                    } else {
-                        tools.enable_all_tools();
-                    }
-                }
-            });
-
-            for (source, tools) in tools_by_source {
-                let mut tools = tools
-                    .into_iter()
-                    .map(|tool| {
-                        let source = tool.source();
-                        let name = tool.name().into();
-                        let is_enabled = tool_set.is_enabled(&source, &name);
-
-                        (source, name, is_enabled)
-                    })
-                    .collect::<Vec<_>>();
-
-                if ToolSource::Native == source {
-                    tools.push((
-                        ToolSource::Native,
-                        ScriptingTool::NAME.into(),
-                        tool_set.is_scripting_tool_enabled(),
-                    ));
-                    tools.sort_by(|(_, name_a, _), (_, name_b, _)| name_a.cmp(name_b));
-                }
-
-                menu = match &source {
-                    ToolSource::Native => menu.separator().header("Zed Tools"),
-                    ToolSource::ContextServer { id } => {
-                        let all_tools_from_source_enabled =
-                            tool_set.are_all_tools_from_source_enabled(&source);
-
-                        menu.separator().header(id).toggleable_entry(
-                            "All Tools",
-                            all_tools_from_source_enabled,
-                            icon_position,
-                            None,
-                            {
-                                let tools = tool_set.clone();
-                                let source = source.clone();
-                                move |_window, cx| {
-                                    if all_tools_from_source_enabled {
-                                        tools.disable_source(source.clone(), cx);
-                                    } else {
-                                        tools.enable_source(&source);
-                                    }
-                                }
-                            },
-                        )
-                    }
-                };
-
-                for (source, name, is_enabled) in tools {
-                    menu = menu.toggleable_entry(name.clone(), is_enabled, icon_position, None, {
-                        let tools = tool_set.clone();
-                        move |_window, _cx| {
-                            if name.as_ref() == ScriptingTool::NAME {
-                                if is_enabled {
-                                    tools.disable_scripting_tool();
-                                } else {
-                                    tools.enable_scripting_tool();
-                                }
-                            } else {
-                                if is_enabled {
-                                    tools.disable(source.clone(), &[name.clone()]);
-                                } else {
-                                    tools.enable(source.clone(), &[name.clone()]);
-                                }
-                            }
-                        }
-                    });
-                }
-            }
-
-            menu
-        })
-    }
-}
-
-impl Render for ToolSelector {
-    fn render(&mut self, _window: &mut Window, cx: &mut Context<'_, Self>) -> impl IntoElement {
-        let this = cx.entity().clone();
-        PopoverMenu::new("tool-selector")
-            .menu(move |window, cx| {
-                Some(this.update(cx, |this, cx| this.build_context_menu(window, cx)))
-            })
-            .trigger_with_tooltip(
-                IconButton::new("tool-selector-button", IconName::SettingsAlt)
-                    .icon_size(IconSize::Small)
-                    .icon_color(Color::Muted),
-                Tooltip::text("Customize Tools"),
-            )
-            .anchor(gpui::Corner::BottomLeft)
-    }
-}
--- a/crates/assistant2/src/tool_use.rs
+++ b/crates/assistant2/src/tool_use.rs
@@ -1,14 +1,16 @@
 use std::sync::Arc;

 use anyhow::Result;
+use assistant_tool::{Tool, ToolWorkingSet};
 use collections::HashMap;
 use futures::future::Shared;
 use futures::FutureExt as _;
-use gpui::{SharedString, Task};
+use gpui::{App, SharedString, Task};
 use language_model::{
    LanguageModelRequestMessage, LanguageModelToolResult, LanguageModelToolUse,
    LanguageModelToolUseId, MessageContent, Role,
 };
+use ui::IconName;

 use crate::thread::MessageId;
 use crate::thread_store::SerializedMessage;
@@ -17,12 +19,15 @@ use crate::thread_store::SerializedMessage;
 pub struct ToolUse {
    pub id: LanguageModelToolUseId,
    pub name: SharedString,
+    pub ui_text: SharedString,
    pub status: ToolUseStatus,
    pub input: serde_json::Value,
+    pub icon: ui::IconName,
 }

 #[derive(Debug, Clone)]
 pub enum ToolUseStatus {
+    NeedsConfirmation,
    Pending,
    Running,
    Finished(SharedString),
@@ -30,6 +35,7 @@ pub enum ToolUseStatus {
 }

 pub struct ToolUseState {
+    tools: Arc<ToolWorkingSet>,
    tool_uses_by_assistant_message: HashMap<MessageId, Vec<LanguageModelToolUse>>,
    tool_uses_by_user_message: HashMap<MessageId, Vec<LanguageModelToolUseId>>,
    tool_results: HashMap<LanguageModelToolUseId, LanguageModelToolResult>,
@@ -37,8 +43,9 @@ pub struct ToolUseState {
 }

 impl ToolUseState {
-    pub fn new() -> Self {
+    pub fn new(tools: Arc<ToolWorkingSet>) -> Self {
        Self {
+            tools,
            tool_uses_by_assistant_message: HashMap::default(),
            tool_uses_by_user_message: HashMap::default(),
            tool_results: HashMap::default(),
@@ -50,10 +57,11 @@ impl ToolUseState {
    ///
    /// Accepts a function to filter the tools that should be used to populate the state.
    pub fn from_serialized_messages(
+        tools: Arc<ToolWorkingSet>,
        messages: &[SerializedMessage],
        mut filter_by_tool_name: impl FnMut(&str) -> bool,
    ) -> Self {
-        let mut this = Self::new();
+        let mut this = Self::new(tools);
        let mut tool_names_by_id = HashMap::default();

        for message in messages {
@@ -138,7 +146,7 @@ impl ToolUseState {
        self.pending_tool_uses_by_id.values().collect()
    }

-    pub fn tool_uses_for_message(&self, id: MessageId) -> Vec<ToolUse> {
+    pub fn tool_uses_for_message(&self, id: MessageId, cx: &App) -> Vec<ToolUse> {
        let Some(tool_uses_for_message) = &self.tool_uses_by_assistant_message.get(&id) else {
            return Vec::new();
        };
@@ -158,29 +166,53 @@ impl ToolUseState {
                }

                if let Some(pending_tool_use) = self.pending_tool_uses_by_id.get(&tool_use.id) {
-                    return match pending_tool_use.status {
+                    match pending_tool_use.status {
                        PendingToolUseStatus::Idle => ToolUseStatus::Pending,
+                        PendingToolUseStatus::NeedsConfirmation { .. } => {
+                            ToolUseStatus::NeedsConfirmation
+                        }
                        PendingToolUseStatus::Running { .. } => ToolUseStatus::Running,
                        PendingToolUseStatus::Error(ref err) => {
                            ToolUseStatus::Error(err.clone().into())
                        }
-                    };
+                    }
+                } else {
+                    ToolUseStatus::Pending
                }
-
-                ToolUseStatus::Pending
            })();

+            let icon = if let Some(tool) = self.tools.tool(&tool_use.name, cx) {
+                tool.icon()
+            } else {
+                IconName::Cog
+            };
+
            tool_uses.push(ToolUse {
                id: tool_use.id.clone(),
                name: tool_use.name.clone().into(),
+                ui_text: self.tool_ui_label(&tool_use.name, &tool_use.input, cx),
                input: tool_use.input.clone(),
                status,
+                icon,
            })
        }

        tool_uses
    }

+    pub fn tool_ui_label(
+        &self,
+        tool_name: &str,
+        input: &serde_json::Value,
+        cx: &App,
+    ) -> SharedString {
+        if let Some(tool) = self.tools.tool(tool_name, cx) {
+            tool.ui_text(input).into()
+        } else {
+            "Unknown tool".into()
+        }
+    }
+
    pub fn tool_results_for_message(&self, message_id: MessageId) -> Vec<&LanguageModelToolResult> {
        let empty = Vec::new();

@@ -209,6 +241,7 @@ impl ToolUseState {
        &mut self,
        assistant_message_id: MessageId,
        tool_use: LanguageModelToolUse,
+        cx: &App,
    ) {
        self.tool_uses_by_assistant_message
            .entry(assistant_message_id)
@@ -228,21 +261,52 @@ impl ToolUseState {
            PendingToolUse {
                assistant_message_id,
                id: tool_use.id,
-                name: tool_use.name,
+                name: tool_use.name.clone(),
+                ui_text: self
+                    .tool_ui_label(&tool_use.name, &tool_use.input, cx)
+                    .into(),
                input: tool_use.input,
                status: PendingToolUseStatus::Idle,
            },
        );
    }

-    pub fn run_pending_tool(&mut self, tool_use_id: LanguageModelToolUseId, task: Task<()>) {
+    pub fn run_pending_tool(
+        &mut self,
+        tool_use_id: LanguageModelToolUseId,
+        ui_text: SharedString,
+        task: Task<()>,
+    ) {
        if let Some(tool_use) = self.pending_tool_uses_by_id.get_mut(&tool_use_id) {
+            tool_use.ui_text = ui_text.into();
            tool_use.status = PendingToolUseStatus::Running {
                _task: task.shared(),
            };
        }
    }

+    pub fn confirm_tool_use(
+        &mut self,
+        tool_use_id: LanguageModelToolUseId,
+        ui_text: impl Into<Arc<str>>,
+        input: serde_json::Value,
+        messages: Arc<Vec<LanguageModelRequestMessage>>,
+        tool: Arc<dyn Tool>,
+    ) {
+        if let Some(tool_use) = self.pending_tool_uses_by_id.get_mut(&tool_use_id) {
+            let ui_text = ui_text.into();
+            tool_use.ui_text = ui_text.clone();
+            let confirmation = Confirmation {
+                tool_use_id,
+                input,
+                messages,
+                tool,
+                ui_text,
+            };
+            tool_use.status = PendingToolUseStatus::NeedsConfirmation(Arc::new(confirmation));
+        }
+    }
+
    pub fn insert_tool_output(
        &mut self,
        tool_use_id: LanguageModelToolUseId,
@@ -335,13 +399,24 @@ pub struct PendingToolUse {
    #[allow(unused)]
    pub assistant_message_id: MessageId,
    pub name: Arc<str>,
+    pub ui_text: Arc<str>,
    pub input: serde_json::Value,
    pub status: PendingToolUseStatus,
 }

+#[derive(Debug, Clone)]
+pub struct Confirmation {
+    pub tool_use_id: LanguageModelToolUseId,
+    pub input: serde_json::Value,
+    pub ui_text: Arc<str>,
+    pub messages: Arc<Vec<LanguageModelRequestMessage>>,
+    pub tool: Arc<dyn Tool>,
+}
+
 #[derive(Debug, Clone)]
 pub enum PendingToolUseStatus {
    Idle,
+    NeedsConfirmation(Arc<Confirmation>),
    Running { _task: Shared<Task<()>> },
    Error(#[allow(unused)] Arc<str>),
 }
@@ -354,4 +429,8 @@ impl PendingToolUseStatus {
    pub fn is_error(&self) -> bool {
        matches!(self, PendingToolUseStatus::Error(_))
    }
+
+    pub fn needs_confirmation(&self) -> bool {
+        matches!(self, PendingToolUseStatus::NeedsConfirmation { .. })
+    }
 }
--- a/crates/assistant2/src/ui.rs
+++ b/crates/assistant2/src/ui.rs
@@ -1,3 +1,5 @@
 mod context_pill;
+mod tool_ready_pop_up;

 pub use context_pill::*;
+pub use tool_ready_pop_up::*;
--- a/crates/assistant2/src/ui/tool_ready_pop_up.rs
+++ b/crates/assistant2/src/ui/tool_ready_pop_up.rs
@@ -0,0 +1,129 @@
+use gpui::{
+    point, App, Context, EventEmitter, IntoElement, PlatformDisplay, Size, Window,
+    WindowBackgroundAppearance, WindowBounds, WindowDecorations, WindowKind, WindowOptions,
+};
+use release_channel::ReleaseChannel;
+use std::rc::Rc;
+use theme;
+use ui::{prelude::*, Render};
+
+pub struct ToolReadyPopUp {
+    caption: SharedString,
+    icon: IconName,
+    icon_color: Color,
+}
+
+impl ToolReadyPopUp {
+    pub fn new(caption: impl Into<SharedString>, icon: IconName, icon_color: Color) -> Self {
+        Self {
+            caption: caption.into(),
+            icon,
+            icon_color,
+        }
+    }
+
+    pub fn window_options(screen: Rc<dyn PlatformDisplay>, cx: &App) -> WindowOptions {
+        let size = Size {
+            width: px(450.),
+            height: px(72.),
+        };
+
+        let notification_margin_width = px(16.);
+        let notification_margin_height = px(-48.);
+
+        let bounds = gpui::Bounds::<Pixels> {
+            origin: screen.bounds().top_right()
+                - point(
+                    size.width + notification_margin_width,
+                    notification_margin_height,
+                ),
+            size,
+        };
+
+        let app_id = ReleaseChannel::global(cx).app_id();
+
+        WindowOptions {
+            window_bounds: Some(WindowBounds::Windowed(bounds)),
+            titlebar: None,
+            focus: false,
+            show: true,
+            kind: WindowKind::PopUp,
+            is_movable: false,
+            display_id: Some(screen.id()),
+            window_background: WindowBackgroundAppearance::Transparent,
+            app_id: Some(app_id.to_owned()),
+            window_min_size: None,
+            window_decorations: Some(WindowDecorations::Client),
+        }
+    }
+}
+
+pub enum ToolReadyPopupEvent {
+    Accepted,
+    Dismissed,
+}
+
+impl EventEmitter<ToolReadyPopupEvent> for ToolReadyPopUp {}
+
+impl Render for ToolReadyPopUp {
+    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
+        let ui_font = theme::setup_ui_font(window, cx);
+        let line_height = window.line_height();
+
+        h_flex()
+            .size_full()
+            .p_3()
+            .gap_4()
+            .justify_between()
+            .elevation_3(cx)
+            .text_ui(cx)
+            .font(ui_font)
+            .border_color(cx.theme().colors().border)
+            .rounded_xl()
+            .child(
+                h_flex()
+                    .items_start()
+                    .gap_2()
+                    .child(
+                        h_flex().h(line_height).justify_center().child(
+                            Icon::new(self.icon)
+                                .color(self.icon_color)
+                                .size(IconSize::Small),
+                        ),
+                    )
+                    .child(
+                        v_flex()
+                            .child(
+                                div()
+                                    .text_size(px(16.))
+                                    .text_color(cx.theme().colors().text)
+                                    .child("Agent Panel"),
+                            )
+                            .child(
+                                div()
+                                    .text_size(px(14.))
+                                    .text_color(cx.theme().colors().text_muted)
+                                    .child(self.caption.clone()),
+                            ),
+                    ),
+            )
+            .child(
+                h_flex()
+                    .gap_0p5()
+                    .child(
+                        Button::new("open", "View Panel")
+                            .style(ButtonStyle::Tinted(ui::TintColor::Accent))
+                            .on_click({
+                                cx.listener(move |_this, _event, _, cx| {
+                                    cx.emit(ToolReadyPopupEvent::Accepted);
+                                })
+                            }),
+                    )
+                    .child(Button::new("dismiss", "Dismiss").on_click({
+                        cx.listener(move |_, _event, _, cx| {
+                            cx.emit(ToolReadyPopupEvent::Dismissed);
+                        })
+                    })),
+            )
+    }
+}
--- a/crates/assistant_context_editor/src/context.rs
+++ b/crates/assistant_context_editor/src/context.rs
@@ -162,6 +162,11 @@ pub enum ContextOperation {
        section: SlashCommandOutputSection<language::Anchor>,
        version: clock::Global,
    },
+    ThoughtProcessOutputSectionAdded {
+        timestamp: clock::Lamport,
+        section: ThoughtProcessOutputSection<language::Anchor>,
+        version: clock::Global,
+    },
    BufferOperation(language::Operation),
 }

@@ -259,6 +264,20 @@ impl ContextOperation {
                    version: language::proto::deserialize_version(&message.version),
                })
            }
+            proto::context_operation::Variant::ThoughtProcessOutputSectionAdded(message) => {
+                let section = message.section.context("missing section")?;
+                Ok(Self::ThoughtProcessOutputSectionAdded {
+                    timestamp: language::proto::deserialize_timestamp(
+                        message.timestamp.context("missing timestamp")?,
+                    ),
+                    section: ThoughtProcessOutputSection {
+                        range: language::proto::deserialize_anchor_range(
+                            section.range.context("invalid range")?,
+                        )?,
+                    },
+                    version: language::proto::deserialize_version(&message.version),
+                })
+            }
            proto::context_operation::Variant::BufferOperation(op) => Ok(Self::BufferOperation(
                language::proto::deserialize_operation(
                    op.operation.context("invalid buffer operation")?,
@@ -370,6 +389,27 @@ impl ContextOperation {
                    },
                )),
            },
+            Self::ThoughtProcessOutputSectionAdded {
+                timestamp,
+                section,
+                version,
+            } => proto::ContextOperation {
+                variant: Some(
+                    proto::context_operation::Variant::ThoughtProcessOutputSectionAdded(
+                        proto::context_operation::ThoughtProcessOutputSectionAdded {
+                            timestamp: Some(language::proto::serialize_timestamp(*timestamp)),
+                            section: Some({
+                                proto::ThoughtProcessOutputSection {
+                                    range: Some(language::proto::serialize_anchor_range(
+                                        section.range.clone(),
+                                    )),
+                                }
+                            }),
+                            version: language::proto::serialize_version(version),
+                        },
+                    ),
+                ),
+            },
            Self::BufferOperation(operation) => proto::ContextOperation {
                variant: Some(proto::context_operation::Variant::BufferOperation(
                    proto::context_operation::BufferOperation {
@@ -387,7 +427,8 @@ impl ContextOperation {
            Self::UpdateSummary { summary, .. } => summary.timestamp,
            Self::SlashCommandStarted { id, .. } => id.0,
            Self::SlashCommandOutputSectionAdded { timestamp, .. }
-            | Self::SlashCommandFinished { timestamp, .. } => *timestamp,
+            | Self::SlashCommandFinished { timestamp, .. }
+            | Self::ThoughtProcessOutputSectionAdded { timestamp, .. } => *timestamp,
            Self::BufferOperation(_) => {
                panic!("reading the timestamp of a buffer operation is not supported")
            }
@@ -402,7 +443,8 @@ impl ContextOperation {
            | Self::UpdateSummary { version, .. }
            | Self::SlashCommandStarted { version, .. }
            | Self::SlashCommandOutputSectionAdded { version, .. }
-            | Self::SlashCommandFinished { version, .. } => version,
+            | Self::SlashCommandFinished { version, .. }
+            | Self::ThoughtProcessOutputSectionAdded { version, .. } => version,
            Self::BufferOperation(_) => {
                panic!("reading the version of a buffer operation is not supported")
            }
@@ -418,6 +460,8 @@ pub enum ContextEvent {
    MessagesEdited,
    SummaryChanged,
    StreamedCompletion,
+    StartedThoughtProcess(Range<language::Anchor>),
+    EndedThoughtProcess(language::Anchor),
    PatchesUpdated {
        removed: Vec<Range<language::Anchor>>,
        updated: Vec<Range<language::Anchor>>,
@@ -498,6 +542,17 @@ impl MessageMetadata {
    }
 }

+#[derive(Clone, Debug, PartialEq, Eq, Serialize, Deserialize)]
+pub struct ThoughtProcessOutputSection<T> {
+    pub range: Range<T>,
+}
+
+impl ThoughtProcessOutputSection<language::Anchor> {
+    pub fn is_valid(&self, buffer: &language::TextBuffer) -> bool {
+        self.range.start.is_valid(buffer) && !self.range.to_offset(buffer).is_empty()
+    }
+}
+
 #[derive(Clone, Debug)]
 pub struct Message {
    pub offset_range: Range<usize>,
@@ -580,6 +635,7 @@ pub struct AssistantContext {
    edits_since_last_parse: language::Subscription,
    slash_commands: Arc<SlashCommandWorkingSet>,
    slash_command_output_sections: Vec<SlashCommandOutputSection<language::Anchor>>,
+    thought_process_output_sections: Vec<ThoughtProcessOutputSection<language::Anchor>>,
    message_anchors: Vec<MessageAnchor>,
    contents: Vec<Content>,
    messages_metadata: HashMap<MessageId, MessageMetadata>,
@@ -682,6 +738,7 @@ impl AssistantContext {
            parsed_slash_commands: Vec::new(),
            invoked_slash_commands: HashMap::default(),
            slash_command_output_sections: Vec::new(),
+            thought_process_output_sections: Vec::new(),
            edits_since_last_parse: edits_since_last_slash_command_parse,
            summary: None,
            pending_summary: Task::ready(None),
@@ -764,6 +821,18 @@ impl AssistantContext {
                    }
                })
                .collect(),
+            thought_process_output_sections: self
+                .thought_process_output_sections
+                .iter()
+                .filter_map(|section| {
+                    if section.is_valid(buffer) {
+                        let range = section.range.to_offset(buffer);
+                        Some(ThoughtProcessOutputSection { range })
+                    } else {
+                        None
+                    }
+                })
+                .collect(),
        }
    }

@@ -957,6 +1026,16 @@ impl AssistantContext {
                        cx.emit(ContextEvent::SlashCommandOutputSectionAdded { section });
                    }
                }
+                ContextOperation::ThoughtProcessOutputSectionAdded { section, .. } => {
+                    let buffer = self.buffer.read(cx);
+                    if let Err(ix) = self
+                        .thought_process_output_sections
+                        .binary_search_by(|probe| probe.range.cmp(&section.range, buffer))
+                    {
+                        self.thought_process_output_sections
+                            .insert(ix, section.clone());
+                    }
+                }
                ContextOperation::SlashCommandFinished {
                    id,
                    error_message,
@@ -1020,6 +1099,9 @@ impl AssistantContext {
            ContextOperation::SlashCommandOutputSectionAdded { section, .. } => {
                self.has_received_operations_for_anchor_range(section.range.clone(), cx)
            }
+            ContextOperation::ThoughtProcessOutputSectionAdded { section, .. } => {
+                self.has_received_operations_for_anchor_range(section.range.clone(), cx)
+            }
            ContextOperation::SlashCommandFinished { .. } => true,
            ContextOperation::BufferOperation(_) => {
                panic!("buffer operations should always be applied")
@@ -1128,6 +1210,12 @@ impl AssistantContext {
        &self.slash_command_output_sections
    }

+    pub fn thought_process_output_sections(
+        &self,
+    ) -> &[ThoughtProcessOutputSection<language::Anchor>] {
+        &self.thought_process_output_sections
+    }
+
    pub fn contains_files(&self, cx: &App) -> bool {
        let buffer = self.buffer.read(cx);
        self.slash_command_output_sections.iter().any(|section| {
@@ -2168,6 +2256,35 @@ impl AssistantContext {
        );
    }

+    fn insert_thought_process_output_section(
+        &mut self,
+        section: ThoughtProcessOutputSection<language::Anchor>,
+        cx: &mut Context<Self>,
+    ) {
+        let buffer = self.buffer.read(cx);
+        let insertion_ix = match self
+            .thought_process_output_sections
+            .binary_search_by(|probe| probe.range.cmp(&section.range, buffer))
+        {
+            Ok(ix) | Err(ix) => ix,
+        };
+        self.thought_process_output_sections
+            .insert(insertion_ix, section.clone());
+        // cx.emit(ContextEvent::ThoughtProcessOutputSectionAdded {
+        //     section: section.clone(),
+        // });
+        let version = self.version.clone();
+        let timestamp = self.next_timestamp();
+        self.push_op(
+            ContextOperation::ThoughtProcessOutputSectionAdded {
+                timestamp,
+                section,
+                version,
+            },
+            cx,
+        );
+    }
+
    pub fn completion_provider_changed(&mut self, cx: &mut Context<Self>) {
        self.count_remaining_tokens(cx);
    }
@@ -2220,6 +2337,10 @@ impl AssistantContext {
                    let request_start = Instant::now();
                    let mut events = stream.await?;
                    let mut stop_reason = StopReason::EndTurn;
+                    let mut thought_process_stack = Vec::new();
+
+                    const THOUGHT_PROCESS_START_MARKER: &str = "<think>\n";
+                    const THOUGHT_PROCESS_END_MARKER: &str = "\n</think>";

                    while let Some(event) = events.next().await {
                        if response_latency.is_none() {
@@ -2227,6 +2348,9 @@ impl AssistantContext {
                        }
                        let event = event?;

+                        let mut context_event = None;
+                        let mut thought_process_output_section = None;
+
                        this.update(cx, |this, cx| {
                            let message_ix = this
                                .message_anchors
@@ -2245,7 +2369,50 @@ impl AssistantContext {
                                    LanguageModelCompletionEvent::Stop(reason) => {
                                        stop_reason = reason;
                                    }
-                                    LanguageModelCompletionEvent::Text(chunk) => {
+                                    LanguageModelCompletionEvent::Thinking(chunk) => {
+                                        if thought_process_stack.is_empty() {
+                                            let start =
+                                                buffer.anchor_before(message_old_end_offset);
+                                            thought_process_stack.push(start);
+                                            let chunk =
+                                                format!("{THOUGHT_PROCESS_START_MARKER}{chunk}{THOUGHT_PROCESS_END_MARKER}");
+                                            let chunk_len = chunk.len();
+                                            buffer.edit(
+                                                [(
+                                                    message_old_end_offset..message_old_end_offset,
+                                                    chunk,
+                                                )],
+                                                None,
+                                                cx,
+                                            );
+                                            let end = buffer
+                                                .anchor_before(message_old_end_offset + chunk_len);
+                                            context_event = Some(
+                                                ContextEvent::StartedThoughtProcess(start..end),
+                                            );
+                                        } else {
+                                            // This ensures that all the thinking chunks are inserted inside the thinking tag
+                                            let insertion_position =
+                                                message_old_end_offset - THOUGHT_PROCESS_END_MARKER.len();
+                                            buffer.edit(
+                                                [(insertion_position..insertion_position, chunk)],
+                                                None,
+                                                cx,
+                                            );
+                                        }
+                                    }
+                                    LanguageModelCompletionEvent::Text(mut chunk) => {
+                                        if let Some(start) = thought_process_stack.pop() {
+                                            let end = buffer.anchor_before(message_old_end_offset);
+                                            context_event =
+                                                Some(ContextEvent::EndedThoughtProcess(end));
+                                            thought_process_output_section =
+                                                Some(ThoughtProcessOutputSection {
+                                                    range: start..end,
+                                                });
+                                            chunk.insert_str(0, "\n\n");
+                                        }
+
                                        buffer.edit(
                                            [(
                                                message_old_end_offset..message_old_end_offset,
@@ -2260,6 +2427,13 @@ impl AssistantContext {
                                }
                            });

+                            if let Some(section) = thought_process_output_section.take() {
+                                this.insert_thought_process_output_section(section, cx);
+                            }
+                            if let Some(context_event) = context_event.take() {
+                                cx.emit(context_event);
+                            }
+
                            cx.emit(ContextEvent::StreamedCompletion);

                            Some(())
@@ -3127,6 +3301,8 @@ pub struct SavedContext {
    pub summary: String,
    pub slash_command_output_sections:
        Vec<assistant_slash_command::SlashCommandOutputSection<usize>>,
+    #[serde(default)]
+    pub thought_process_output_sections: Vec<ThoughtProcessOutputSection<usize>>,
 }

 impl SavedContext {
@@ -3228,6 +3404,20 @@ impl SavedContext {
            version.observe(timestamp);
        }

+        for section in self.thought_process_output_sections {
+            let timestamp = next_timestamp.tick();
+            operations.push(ContextOperation::ThoughtProcessOutputSectionAdded {
+                timestamp,
+                section: ThoughtProcessOutputSection {
+                    range: buffer.anchor_after(section.range.start)
+                        ..buffer.anchor_before(section.range.end),
+                },
+                version: version.clone(),
+            });
+
+            version.observe(timestamp);
+        }
+
        let timestamp = next_timestamp.tick();
        operations.push(ContextOperation::UpdateSummary {
            summary: ContextSummary {
@@ -3302,6 +3492,7 @@ impl SavedContextV0_3_0 {
                .collect(),
            summary: self.summary,
            slash_command_output_sections: self.slash_command_output_sections,
+            thought_process_output_sections: Vec::new(),
        }
    }
 }
--- a/crates/assistant_context_editor/src/context_editor.rs
+++ b/crates/assistant_context_editor/src/context_editor.rs
@@ -13,7 +13,7 @@ use editor::{
        BlockContext, BlockId, BlockPlacement, BlockProperties, BlockStyle, Crease, CreaseMetadata,
        CustomBlockId, FoldId, RenderBlock, ToDisplayPoint,
    },
-    scroll::{Autoscroll, AutoscrollStrategy},
+    scroll::Autoscroll,
    Anchor, Editor, EditorEvent, MenuInlineCompletionsPolicy, ProposedChangeLocation,
    ProposedChangesEditor, RowExt, ToOffset as _, ToPoint,
 };
@@ -64,7 +64,10 @@ use workspace::{
    Workspace,
 };

-use crate::{slash_command::SlashCommandCompletionProvider, slash_command_picker};
+use crate::{
+    slash_command::SlashCommandCompletionProvider, slash_command_picker,
+    ThoughtProcessOutputSection,
+};
 use crate::{
    AssistantContext, AssistantPatch, AssistantPatchStatus, CacheStatus, Content, ContextEvent,
    ContextId, InvokedSlashCommandId, InvokedSlashCommandStatus, Message, MessageId,
@@ -120,6 +123,11 @@ enum AssistError {
    Message(SharedString),
 }

+pub enum ThoughtProcessStatus {
+    Pending,
+    Completed,
+}
+
 pub trait AssistantPanelDelegate {
    fn active_context_editor(
        &self,
@@ -178,6 +186,7 @@ pub struct ContextEditor {
    project: Entity<Project>,
    lsp_adapter_delegate: Option<Arc<dyn LspAdapterDelegate>>,
    editor: Entity<Editor>,
+    pending_thought_process: Option<(CreaseId, language::Anchor)>,
    blocks: HashMap<MessageId, (MessageHeader, CustomBlockId)>,
    image_blocks: HashSet<CustomBlockId>,
    scroll_position: Option<ScrollPosition>,
@@ -253,7 +262,8 @@ impl ContextEditor {
            cx.observe_global_in::<SettingsStore>(window, Self::settings_changed),
        ];

-        let sections = context.read(cx).slash_command_output_sections().to_vec();
+        let slash_command_sections = context.read(cx).slash_command_output_sections().to_vec();
+        let thought_process_sections = context.read(cx).thought_process_output_sections().to_vec();
        let patch_ranges = context.read(cx).patch_ranges().collect::<Vec<_>>();
        let slash_commands = context.read(cx).slash_commands().clone();
        let mut this = Self {
@@ -265,6 +275,7 @@ impl ContextEditor {
            image_blocks: Default::default(),
            scroll_position: None,
            remote_id: None,
+            pending_thought_process: None,
            fs: fs.clone(),
            workspace,
            project,
@@ -294,7 +305,14 @@ impl ContextEditor {
        };
        this.update_message_headers(cx);
        this.update_image_blocks(cx);
-        this.insert_slash_command_output_sections(sections, false, window, cx);
+        this.insert_slash_command_output_sections(slash_command_sections, false, window, cx);
+        this.insert_thought_process_output_sections(
+            thought_process_sections
+                .into_iter()
+                .map(|section| (section, ThoughtProcessStatus::Completed)),
+            window,
+            cx,
+        );
        this.patches_updated(&Vec::new(), &patch_ranges, window, cx);
        this
    }
@@ -396,12 +414,9 @@ impl ContextEditor {
                cursor..cursor
            };
            self.editor.update(cx, |editor, cx| {
-                editor.change_selections(
-                    Some(Autoscroll::Strategy(AutoscrollStrategy::Fit)),
-                    window,
-                    cx,
-                    |selections| selections.select_ranges([new_selection]),
-                );
+                editor.change_selections(Some(Autoscroll::fit()), window, cx, |selections| {
+                    selections.select_ranges([new_selection])
+                });
            });
            // Avoid scrolling to the new cursor position so the assistant's output is stable.
            cx.defer_in(window, |this, _, _| this.scroll_position = None);
@@ -599,6 +614,47 @@ impl ContextEditor {
                    context.save(Some(Duration::from_millis(500)), self.fs.clone(), cx);
                });
            }
+            ContextEvent::StartedThoughtProcess(range) => {
+                let creases = self.insert_thought_process_output_sections(
+                    [(
+                        ThoughtProcessOutputSection {
+                            range: range.clone(),
+                        },
+                        ThoughtProcessStatus::Pending,
+                    )],
+                    window,
+                    cx,
+                );
+                self.pending_thought_process = Some((creases[0], range.start));
+            }
+            ContextEvent::EndedThoughtProcess(end) => {
+                if let Some((crease_id, start)) = self.pending_thought_process.take() {
+                    self.editor.update(cx, |editor, cx| {
+                        let multi_buffer_snapshot = editor.buffer().read(cx).snapshot(cx);
+                        let (excerpt_id, _, _) = multi_buffer_snapshot.as_singleton().unwrap();
+                        let start_anchor = multi_buffer_snapshot
+                            .anchor_in_excerpt(*excerpt_id, start)
+                            .unwrap();
+
+                        editor.display_map.update(cx, |display_map, cx| {
+                            display_map.unfold_intersecting(
+                                vec![start_anchor..start_anchor],
+                                true,
+                                cx,
+                            );
+                        });
+                        editor.remove_creases(vec![crease_id], cx);
+                    });
+                    self.insert_thought_process_output_sections(
+                        [(
+                            ThoughtProcessOutputSection { range: start..*end },
+                            ThoughtProcessStatus::Completed,
+                        )],
+                        window,
+                        cx,
+                    );
+                }
+            }
            ContextEvent::StreamedCompletion => {
                self.editor.update(cx, |editor, cx| {
                    if let Some(scroll_position) = self.scroll_position {
@@ -946,6 +1002,62 @@ impl ContextEditor {
        self.update_active_patch(window, cx);
    }

+    fn insert_thought_process_output_sections(
+        &mut self,
+        sections: impl IntoIterator<
+            Item = (
+                ThoughtProcessOutputSection<language::Anchor>,
+                ThoughtProcessStatus,
+            ),
+        >,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> Vec<CreaseId> {
+        self.editor.update(cx, |editor, cx| {
+            let buffer = editor.buffer().read(cx).snapshot(cx);
+            let excerpt_id = *buffer.as_singleton().unwrap().0;
+            let mut buffer_rows_to_fold = BTreeSet::new();
+            let mut creases = Vec::new();
+            for (section, status) in sections {
+                let start = buffer
+                    .anchor_in_excerpt(excerpt_id, section.range.start)
+                    .unwrap();
+                let end = buffer
+                    .anchor_in_excerpt(excerpt_id, section.range.end)
+                    .unwrap();
+                let buffer_row = MultiBufferRow(start.to_point(&buffer).row);
+                buffer_rows_to_fold.insert(buffer_row);
+                creases.push(
+                    Crease::inline(
+                        start..end,
+                        FoldPlaceholder {
+                            render: render_thought_process_fold_icon_button(
+                                cx.entity().downgrade(),
+                                status,
+                            ),
+                            merge_adjacent: false,
+                            ..Default::default()
+                        },
+                        render_slash_command_output_toggle,
+                        |_, _, _, _| Empty.into_any_element(),
+                    )
+                    .with_metadata(CreaseMetadata {
+                        icon: IconName::Ai,
+                        label: "Thinking Process".into(),
+                    }),
+                );
+            }
+
+            let creases = editor.insert_creases(creases, cx);
+
+            for buffer_row in buffer_rows_to_fold.into_iter().rev() {
+                editor.fold_at(&FoldAt { buffer_row }, window, cx);
+            }
+
+            creases
+        })
+    }
+
    fn insert_slash_command_output_sections(
        &mut self,
        sections: impl IntoIterator<Item = SlashCommandOutputSection<language::Anchor>>,
@@ -2652,6 +2764,52 @@ fn find_surrounding_code_block(snapshot: &BufferSnapshot, offset: usize) -> Opti
    None
 }

+fn render_thought_process_fold_icon_button(
+    editor: WeakEntity<Editor>,
+    status: ThoughtProcessStatus,
+) -> Arc<dyn Send + Sync + Fn(FoldId, Range<Anchor>, &mut App) -> AnyElement> {
+    Arc::new(move |fold_id, fold_range, _cx| {
+        let editor = editor.clone();
+
+        let button = ButtonLike::new(fold_id).layer(ElevationIndex::ElevatedSurface);
+        let button = match status {
+            ThoughtProcessStatus::Pending => button
+                .child(
+                    Icon::new(IconName::Brain)
+                        .size(IconSize::Small)
+                        .color(Color::Muted),
+                )
+                .child(
+                    Label::new("Thinking…").color(Color::Muted).with_animation(
+                        "pulsating-label",
+                        Animation::new(Duration::from_secs(2))
+                            .repeat()
+                            .with_easing(pulsating_between(0.4, 0.8)),
+                        |label, delta| label.alpha(delta),
+                    ),
+                ),
+            ThoughtProcessStatus::Completed => button
+                .style(ButtonStyle::Filled)
+                .child(Icon::new(IconName::Brain).size(IconSize::Small))
+                .child(Label::new("Thought Process").single_line()),
+        };
+
+        button
+            .on_click(move |_, window, cx| {
+                editor
+                    .update(cx, |editor, cx| {
+                        let buffer_start = fold_range
+                            .start
+                            .to_point(&editor.buffer().read(cx).read(cx));
+                        let buffer_row = MultiBufferRow(buffer_start.row);
+                        editor.unfold_at(&UnfoldAt { buffer_row }, window, cx);
+                    })
+                    .ok();
+            })
+            .into_any_element()
+    })
+}
+
 fn render_fold_icon_button(
    editor: WeakEntity<Editor>,
    icon: IconName,
--- a/crates/assistant_context_editor/src/slash_command.rs
+++ b/crates/assistant_context_editor/src/slash_command.rs
@@ -2,7 +2,7 @@ use crate::context_editor::ContextEditor;
 use anyhow::Result;
 pub use assistant_slash_command::SlashCommand;
 use assistant_slash_command::{AfterCompletion, SlashCommandLine, SlashCommandWorkingSet};
-use editor::{CompletionProvider, Editor};
+use editor::{CompletionProvider, Editor, ExcerptId};
 use fuzzy::{match_strings, StringMatchCandidate};
 use gpui::{App, AppContext as _, Context, Entity, Task, WeakEntity, Window};
 use language::{Anchor, Buffer, ToPoint};
@@ -126,6 +126,7 @@ impl SlashCommandCompletionProvider {
                                )),
                                new_text,
                                label: command.label(cx),
+                                icon_path: None,
                                confirm,
                                source: CompletionSource::Custom,
                            })
@@ -223,6 +224,7 @@ impl SlashCommandCompletionProvider {
                                    last_argument_range.clone()
                                },
                                label: new_argument.label,
+                                icon_path: None,
                                new_text,
                                documentation: None,
                                confirm,
@@ -241,6 +243,7 @@ impl SlashCommandCompletionProvider {
 impl CompletionProvider for SlashCommandCompletionProvider {
    fn completions(
        &self,
+        _excerpt_id: ExcerptId,
        buffer: &Entity<Buffer>,
        buffer_position: Anchor,
        _: editor::CompletionContext,
--- a/crates/assistant_eval/Cargo.toml
+++ b/crates/assistant_eval/Cargo.toml
@@ -21,6 +21,7 @@ clap.workspace = true
 client.workspace = true
 collections.workspace = true
 context_server.workspace = true
+dap.workspace = true
 env_logger.workspace = true
 fs.workspace = true
 futures.workspace = true
--- a/crates/assistant_eval/src/eval.rs
+++ b/crates/assistant_eval/src/eval.rs
@@ -79,10 +79,25 @@ impl Eval {

            let start_time = std::time::SystemTime::now();

+            let (system_prompt_context, load_error) = cx
+                .update(|cx| {
+                    assistant
+                        .read(cx)
+                        .thread
+                        .read(cx)
+                        .load_system_prompt_context(cx)
+                })?
+                .await;
+
+            if let Some(load_error) = load_error {
+                return Err(anyhow!("{:?}", load_error));
+            };
+
            assistant.update(cx, |assistant, cx| {
                assistant.thread.update(cx, |thread, cx| {
                    let context = vec![];
                    thread.insert_user_message(self.user_prompt.clone(), context, None, cx);
+                    thread.set_system_prompt_context(system_prompt_context);
                    thread.send_to_model(model, RequestKind::Chat, cx);
                });
            })?;
@@ -105,7 +120,7 @@ impl Eval {
                    .count();
                Ok(EvalOutput {
                    diff,
-                    last_message: last_message.text.clone(),
+                    last_message: last_message.to_string(),
                    elapsed_time,
                    assistant_response_count,
                    tool_use_counts: assistant.tool_use_counts.clone(),
--- a/crates/assistant_eval/src/headless_assistant.rs
+++ b/crates/assistant_eval/src/headless_assistant.rs
@@ -3,6 +3,7 @@ use assistant2::{RequestKind, Thread, ThreadEvent, ThreadStore};
 use assistant_tool::ToolWorkingSet;
 use client::{Client, UserStore};
 use collections::HashMap;
+use dap::DapRegistry;
 use futures::StreamExt;
 use gpui::{prelude::*, App, AsyncApp, Entity, SemanticVersion, Subscription, Task};
 use language::LanguageRegistry;
@@ -50,6 +51,7 @@ impl HeadlessAssistant {
            app_state.node_runtime.clone(),
            app_state.user_store.clone(),
            app_state.languages.clone(),
+            Arc::new(DapRegistry::default()),
            app_state.fs.clone(),
            env,
            cx,
@@ -89,7 +91,7 @@ impl HeadlessAssistant {
            ThreadEvent::DoneStreaming => {
                let thread = thread.read(cx);
                if let Some(message) = thread.messages().last() {
-                    println!("Message: {}", message.text,);
+                    println!("Message: {}", message.to_string());
                }
                if thread.all_tools_finished() {
                    self.done_tx.send_blocking(Ok(())).unwrap()
@@ -128,12 +130,7 @@ impl HeadlessAssistant {
                    }
                }
            }
-            ThreadEvent::StreamedCompletion
-            | ThreadEvent::SummaryChanged
-            | ThreadEvent::StreamedAssistantText(_, _)
-            | ThreadEvent::MessageAdded(_)
-            | ThreadEvent::MessageEdited(_)
-            | ThreadEvent::MessageDeleted(_) => {}
+            _ => {}
        }
    }
 }
@@ -154,7 +151,10 @@ pub fn init(cx: &mut App) -> Arc<HeadlessAppState> {
    cx.set_http_client(client.http_client().clone());

    let git_binary_path = None;
-    let fs = Arc::new(RealFs::new(git_binary_path));
+    let fs = Arc::new(RealFs::new(
+        git_binary_path,
+        cx.background_executor().clone(),
+    ));

    let languages = Arc::new(LanguageRegistry::new(cx.background_executor().clone()));

--- a/crates/assistant_settings/Cargo.toml
+++ b/crates/assistant_settings/Cargo.toml
@@ -16,6 +16,7 @@ anthropic = { workspace = true, features = ["schemars"] }
 anyhow.workspace = true
 feature_flags.workspace = true
 gpui.workspace = true
+indexmap.workspace = true
 language_model.workspace = true
 lmstudio = { workspace = true, features = ["schemars"] }
 log.workspace = true
--- a/crates/assistant_settings/src/agent_profile.rs
+++ b/crates/assistant_settings/src/agent_profile.rs
@@ -0,0 +1,18 @@
+use std::sync::Arc;
+
+use gpui::SharedString;
+use indexmap::IndexMap;
+
+/// A profile for the Zed Agent that controls its behavior.
+#[derive(Debug, Clone)]
+pub struct AgentProfile {
+    /// The name of the profile.
+    pub name: SharedString,
+    pub tools: IndexMap<Arc<str>, bool>,
+    pub context_servers: IndexMap<Arc<str>, ContextServerPreset>,
+}
+
+#[derive(Debug, Clone, Default)]
+pub struct ContextServerPreset {
+    pub tools: IndexMap<Arc<str>, bool>,
+}
--- a/crates/assistant_settings/src/assistant_settings.rs
+++ b/crates/assistant_settings/src/assistant_settings.rs
@@ -1,3 +1,5 @@
+mod agent_profile;
+
 use std::sync::Arc;

 use ::open_ai::Model as OpenAiModel;
@@ -5,6 +7,7 @@ use anthropic::Model as AnthropicModel;
 use deepseek::Model as DeepseekModel;
 use feature_flags::FeatureFlagAppExt;
 use gpui::{App, Pixels};
+use indexmap::IndexMap;
 use language_model::{CloudModel, LanguageModel};
 use lmstudio::Model as LmStudioModel;
 use ollama::Model as OllamaModel;
@@ -12,6 +15,8 @@ use schemars::{schema::Schema, JsonSchema};
 use serde::{Deserialize, Serialize};
 use settings::{Settings, SettingsSources};

+pub use crate::agent_profile::*;
+
 #[derive(Copy, Clone, Default, Debug, Serialize, Deserialize, JsonSchema)]
 #[serde(rename_all = "snake_case")]
 pub enum AssistantDockPosition {
@@ -66,6 +71,10 @@ pub struct AssistantSettings {
    pub inline_alternatives: Vec<LanguageModelSelection>,
    pub using_outdated_settings_version: bool,
    pub enable_experimental_live_diffs: bool,
+    pub default_profile: Arc<str>,
+    pub profiles: IndexMap<Arc<str>, AgentProfile>,
+    pub always_allow_tool_actions: bool,
+    pub notify_when_agent_waiting: bool,
 }

 impl AssistantSettings {
@@ -166,6 +175,10 @@ impl AssistantSettingsContent {
                    editor_model: None,
                    inline_alternatives: None,
                    enable_experimental_live_diffs: None,
+                    default_profile: None,
+                    profiles: None,
+                    always_allow_tool_actions: None,
+                    notify_when_agent_waiting: None,
                },
                VersionedAssistantSettingsContent::V2(settings) => settings.clone(),
            },
@@ -187,6 +200,10 @@ impl AssistantSettingsContent {
                editor_model: None,
                inline_alternatives: None,
                enable_experimental_live_diffs: None,
+                default_profile: None,
+                profiles: None,
+                always_allow_tool_actions: None,
+                notify_when_agent_waiting: None,
            },
        }
    }
@@ -293,6 +310,18 @@ impl AssistantSettingsContent {
            }
        }
    }
+
+    pub fn set_profile(&mut self, profile_id: Arc<str>) {
+        match self {
+            AssistantSettingsContent::Versioned(settings) => match settings {
+                VersionedAssistantSettingsContent::V2(settings) => {
+                    settings.default_profile = Some(profile_id);
+                }
+                VersionedAssistantSettingsContent::V1(_) => {}
+            },
+            AssistantSettingsContent::Legacy(_) => {}
+        }
+    }
 }

 #[derive(Clone, Serialize, Deserialize, JsonSchema, Debug)]
@@ -316,6 +345,10 @@ impl Default for VersionedAssistantSettingsContent {
            editor_model: None,
            inline_alternatives: None,
            enable_experimental_live_diffs: None,
+            default_profile: None,
+            profiles: None,
+            always_allow_tool_actions: None,
+            notify_when_agent_waiting: None,
        })
    }
 }
@@ -352,6 +385,19 @@ pub struct AssistantSettingsContentV2 {
    ///
    /// Default: false
    enable_experimental_live_diffs: Option<bool>,
+    #[schemars(skip)]
+    default_profile: Option<Arc<str>>,
+    #[schemars(skip)]
+    pub profiles: Option<IndexMap<Arc<str>, AgentProfileContent>>,
+    /// Whenever a tool action would normally wait for your confirmation
+    /// that you allow it, always choose to allow it.
+    ///
+    /// Default: false
+    always_allow_tool_actions: Option<bool>,
+    /// Whether to show a popup notification when the agent is waiting for user input.
+    ///
+    /// Default: true
+    notify_when_agent_waiting: Option<bool>,
 }

 #[derive(Clone, Debug, Serialize, Deserialize, JsonSchema, PartialEq)]
@@ -388,6 +434,19 @@ impl Default for LanguageModelSelection {
    }
 }

+#[derive(Debug, PartialEq, Clone, Serialize, Deserialize, JsonSchema)]
+pub struct AgentProfileContent {
+    pub name: Arc<str>,
+    pub tools: IndexMap<Arc<str>, bool>,
+    #[serde(default)]
+    pub context_servers: IndexMap<Arc<str>, ContextServerPresetContent>,
+}
+
+#[derive(Debug, PartialEq, Clone, Default, Serialize, Deserialize, JsonSchema)]
+pub struct ContextServerPresetContent {
+    pub tools: IndexMap<Arc<str>, bool>,
+}
+
 #[derive(Clone, Serialize, Deserialize, JsonSchema, Debug)]
 pub struct AssistantSettingsContentV1 {
    /// Whether the Assistant is enabled.
@@ -482,6 +541,41 @@ impl Settings for AssistantSettings {
                &mut settings.enable_experimental_live_diffs,
                value.enable_experimental_live_diffs,
            );
+            merge(
+                &mut settings.always_allow_tool_actions,
+                value.always_allow_tool_actions,
+            );
+            merge(
+                &mut settings.notify_when_agent_waiting,
+                value.notify_when_agent_waiting,
+            );
+            merge(&mut settings.default_profile, value.default_profile);
+
+            if let Some(profiles) = value.profiles {
+                settings
+                    .profiles
+                    .extend(profiles.into_iter().map(|(id, profile)| {
+                        (
+                            id,
+                            AgentProfile {
+                                name: profile.name.into(),
+                                tools: profile.tools,
+                                context_servers: profile
+                                    .context_servers
+                                    .into_iter()
+                                    .map(|(context_server_id, preset)| {
+                                        (
+                                            context_server_id,
+                                            ContextServerPreset {
+                                                tools: preset.tools.clone(),
+                                            },
+                                        )
+                                    })
+                                    .collect(),
+                            },
+                        )
+                    }));
+            }
        }

        Ok(settings)
@@ -546,6 +640,10 @@ mod tests {
                            default_width: None,
                            default_height: None,
                            enable_experimental_live_diffs: None,
+                            default_profile: None,
+                            profiles: None,
+                            always_allow_tool_actions: None,
+                            notify_when_agent_waiting: None,
                        }),
                    )
                },
--- a/crates/assistant_slash_commands/Cargo.toml
+++ b/crates/assistant_slash_commands/Cargo.toml
@@ -29,13 +29,9 @@ html_to_markdown.workspace = true
 http_client.workspace = true
 indexed_docs.workspace = true
 language.workspace = true
-language_model.workspace = true
-log.workspace = true
 project.workspace = true
 prompt_store.workspace = true
 rope.workspace = true
-schemars.workspace = true
-semantic_index.workspace = true
 serde.workspace = true
 serde_json.workspace = true
 smol.workspace = true
--- a/crates/assistant_slash_commands/src/assistant_slash_commands.rs
+++ b/crates/assistant_slash_commands/src/assistant_slash_commands.rs
@@ -1,4 +1,3 @@
-mod auto_command;
 mod cargo_workspace_command;
 mod context_server_command;
 mod default_command;
@@ -8,9 +7,7 @@ mod docs_command;
 mod fetch_command;
 mod file_command;
 mod now_command;
-mod project_command;
 mod prompt_command;
-mod search_command;
 mod selection_command;
 mod streaming_example_command;
 mod symbols_command;
@@ -21,7 +18,6 @@ use gpui::App;
 use language::{CodeLabel, HighlightId};
 use ui::ActiveTheme as _;

-pub use crate::auto_command::*;
 pub use crate::cargo_workspace_command::*;
 pub use crate::context_server_command::*;
 pub use crate::default_command::*;
@@ -31,9 +27,7 @@ pub use crate::docs_command::*;
 pub use crate::fetch_command::*;
 pub use crate::file_command::*;
 pub use crate::now_command::*;
-pub use crate::project_command::*;
 pub use crate::prompt_command::*;
-pub use crate::search_command::*;
 pub use crate::selection_command::*;
 pub use crate::streaming_example_command::*;
 pub use crate::symbols_command::*;
--- a/crates/assistant_slash_commands/src/auto_command.rs
+++ b/crates/assistant_slash_commands/src/auto_command.rs
@@ -1,371 +0,0 @@
-use anyhow::{anyhow, Result};
-use assistant_slash_command::{
-    ArgumentCompletion, SlashCommand, SlashCommandOutput, SlashCommandOutputSection,
-    SlashCommandResult,
-};
-use feature_flags::FeatureFlag;
-use futures::StreamExt;
-use gpui::{App, AsyncApp, Task, WeakEntity, Window};
-use language::{CodeLabel, LspAdapterDelegate};
-use language_model::{
-    LanguageModelCompletionEvent, LanguageModelRegistry, LanguageModelRequest,
-    LanguageModelRequestMessage, Role,
-};
-use semantic_index::{FileSummary, SemanticDb};
-use smol::channel;
-use std::sync::{atomic::AtomicBool, Arc};
-use ui::{prelude::*, BorrowAppContext};
-use util::ResultExt;
-use workspace::Workspace;
-
-use crate::create_label_for_command;
-
-pub struct AutoSlashCommandFeatureFlag;
-
-impl FeatureFlag for AutoSlashCommandFeatureFlag {
-    const NAME: &'static str = "auto-slash-command";
-}
-
-pub struct AutoCommand;
-
-impl SlashCommand for AutoCommand {
-    fn name(&self) -> String {
-        "auto".into()
-    }
-
-    fn description(&self) -> String {
-        "Automatically infer what context to add".into()
-    }
-
-    fn icon(&self) -> IconName {
-        IconName::Wand
-    }
-
-    fn menu_text(&self) -> String {
-        self.description()
-    }
-
-    fn label(&self, cx: &App) -> CodeLabel {
-        create_label_for_command("auto", &["--prompt"], cx)
-    }
-
-    fn complete_argument(
-        self: Arc<Self>,
-        _arguments: &[String],
-        _cancel: Arc<AtomicBool>,
-        workspace: Option<WeakEntity<Workspace>>,
-        _window: &mut Window,
-        cx: &mut App,
-    ) -> Task<Result<Vec<ArgumentCompletion>>> {
-        // There's no autocomplete for a prompt, since it's arbitrary text.
-        // However, we can use this opportunity to kick off a drain of the backlog.
-        // That way, it can hopefully be done resummarizing by the time we've actually
-        // typed out our prompt. This re-runs on every keystroke during autocomplete,
-        // but in the future, we could instead do it only once, when /auto is first entered.
-        let Some(workspace) = workspace.and_then(|ws| ws.upgrade()) else {
-            log::warn!("workspace was dropped or unavailable during /auto autocomplete");
-
-            return Task::ready(Ok(Vec::new()));
-        };
-
-        let project = workspace.read(cx).project().clone();
-        let Some(project_index) =
-            cx.update_global(|index: &mut SemanticDb, cx| index.project_index(project, cx))
-        else {
-            return Task::ready(Err(anyhow!("No project indexer, cannot use /auto")));
-        };
-
-        let cx: &mut App = cx;
-
-        cx.spawn(async move |cx| {
-            let task = project_index.read_with(cx, |project_index, cx| {
-                project_index.flush_summary_backlogs(cx)
-            })?;
-
-            cx.background_spawn(task).await;
-
-            anyhow::Ok(Vec::new())
-        })
-    }
-
-    fn requires_argument(&self) -> bool {
-        true
-    }
-
-    fn run(
-        self: Arc<Self>,
-        arguments: &[String],
-        _context_slash_command_output_sections: &[SlashCommandOutputSection<language::Anchor>],
-        _context_buffer: language::BufferSnapshot,
-        workspace: WeakEntity<Workspace>,
-        _delegate: Option<Arc<dyn LspAdapterDelegate>>,
-        window: &mut Window,
-        cx: &mut App,
-    ) -> Task<SlashCommandResult> {
-        let Some(workspace) = workspace.upgrade() else {
-            return Task::ready(Err(anyhow::anyhow!("workspace was dropped")));
-        };
-        if arguments.is_empty() {
-            return Task::ready(Err(anyhow!("missing prompt")));
-        };
-        let argument = arguments.join(" ");
-        let original_prompt = argument.to_string();
-        let project = workspace.read(cx).project().clone();
-        let Some(project_index) =
-            cx.update_global(|index: &mut SemanticDb, cx| index.project_index(project, cx))
-        else {
-            return Task::ready(Err(anyhow!("no project indexer")));
-        };
-
-        let task = window.spawn(cx, async move |cx| {
-            let summaries = project_index
-                .read_with(cx, |project_index, cx| project_index.all_summaries(cx))?
-                .await?;
-
-            commands_for_summaries(&summaries, &original_prompt, &cx).await
-        });
-
-        // As a convenience, append /auto's argument to the end of the prompt
-        // so you don't have to write it again.
-        let original_prompt = argument.to_string();
-
-        cx.background_spawn(async move {
-            let commands = task.await?;
-            let mut prompt = String::new();
-
-            log::info!(
-                "Translating this response into slash-commands: {:?}",
-                commands
-            );
-
-            for command in commands {
-                prompt.push('/');
-                prompt.push_str(&command.name);
-                prompt.push(' ');
-                prompt.push_str(&command.arg);
-                prompt.push('\n');
-            }
-
-            prompt.push('\n');
-            prompt.push_str(&original_prompt);
-
-            Ok(SlashCommandOutput {
-                text: prompt,
-                sections: Vec::new(),
-                run_commands_in_text: true,
-            }
-            .to_event_stream())
-        })
-    }
-}
-
-const PROMPT_INSTRUCTIONS_BEFORE_SUMMARY: &str = include_str!("prompt_before_summary.txt");
-const PROMPT_INSTRUCTIONS_AFTER_SUMMARY: &str = include_str!("prompt_after_summary.txt");
-
-fn summaries_prompt(summaries: &[FileSummary], original_prompt: &str) -> String {
-    let json_summaries = serde_json::to_string(summaries).unwrap();
-
-    format!("{PROMPT_INSTRUCTIONS_BEFORE_SUMMARY}\n{json_summaries}\n{PROMPT_INSTRUCTIONS_AFTER_SUMMARY}\n{original_prompt}")
-}
-
-/// The slash commands that the model is told about, and which we look for in the inference response.
-const SUPPORTED_SLASH_COMMANDS: &[&str] = &["search", "file"];
-
-#[derive(Debug, Clone)]
-struct CommandToRun {
-    name: String,
-    arg: String,
-}
-
-/// Given the pre-indexed file summaries for this project, as well as the original prompt
-/// string passed to `/auto`, get a list of slash commands to run, along with their arguments.
-///
-/// The prompt's output does not include the slashes (to reduce the chance that it makes a mistake),
-/// so taking one of these returned Strings and turning it into a real slash-command-with-argument
-/// involves prepending a slash to it.
-///
-/// This function will validate that each of the returned lines begins with one of SUPPORTED_SLASH_COMMANDS.
-/// Any other lines it encounters will be discarded, with a warning logged.
-async fn commands_for_summaries(
-    summaries: &[FileSummary],
-    original_prompt: &str,
-    cx: &AsyncApp,
-) -> Result<Vec<CommandToRun>> {
-    if summaries.is_empty() {
-        log::warn!("Inferring no context because there were no summaries available.");
-        return Ok(Vec::new());
-    }
-
-    // Use the globally configured model to translate the summaries into slash-commands,
-    // because Qwen2-7B-Instruct has not done a good job at that task.
-    let Some(model) = cx.update(|cx| LanguageModelRegistry::read_global(cx).active_model())? else {
-        log::warn!("Can't infer context because there's no active model.");
-        return Ok(Vec::new());
-    };
-    // Only go up to 90% of the actual max token count, to reduce chances of
-    // exceeding the token count due to inaccuracies in the token counting heuristic.
-    let max_token_count = (model.max_token_count() * 9) / 10;
-
-    // Rather than recursing (which would require this async function use a pinned box),
-    // we use an explicit stack of arguments and answers for when we need to "recurse."
-    let mut stack = vec![summaries];
-    let mut final_response = Vec::new();
-    let mut prompts = Vec::new();
-
-    // TODO We only need to create multiple Requests because we currently
-    // don't have the ability to tell if a CompletionProvider::complete response
-    // was a "too many tokens in this request" error. If we had that, then
-    // we could try the request once, instead of having to make separate requests
-    // to check the token count and then afterwards to run the actual prompt.
-    let make_request = |prompt: String| LanguageModelRequest {
-        messages: vec![LanguageModelRequestMessage {
-            role: Role::User,
-            content: vec![prompt.into()],
-            // Nothing in here will benefit from caching
-            cache: false,
-        }],
-        tools: Vec::new(),
-        stop: Vec::new(),
-        temperature: None,
-    };
-
-    while let Some(current_summaries) = stack.pop() {
-        // The split can result in one slice being empty and the other having one element.
-        // Whenever that happens, skip the empty one.
-        if current_summaries.is_empty() {
-            continue;
-        }
-
-        log::info!(
-            "Inferring prompt context using {} file summaries",
-            current_summaries.len()
-        );
-
-        let prompt = summaries_prompt(&current_summaries, original_prompt);
-        let start = std::time::Instant::now();
-        // Per OpenAI, 1 token ~= 4 chars in English (we go with 4.5 to overestimate a bit, because failed API requests cost a lot of perf)
-        // Verifying this against an actual model.count_tokens() confirms that it's usually within ~5% of the correct answer, whereas
-        // getting the correct answer from tiktoken takes hundreds of milliseconds (compared to this arithmetic being ~free).
-        // source: https://help.openai.com/en/articles/4936856-what-are-tokens-and-how-to-count-them
-        let token_estimate = prompt.len() * 2 / 9;
-        let duration = start.elapsed();
-        log::info!(
-            "Time taken to count tokens for prompt of length {:?}B: {:?}",
-            prompt.len(),
-            duration
-        );
-
-        if token_estimate < max_token_count {
-            prompts.push(prompt);
-        } else if current_summaries.len() == 1 {
-            log::warn!("Inferring context for a single file's summary failed because the prompt's token length exceeded the model's token limit.");
-        } else {
-            log::info!(
-                "Context inference using file summaries resulted in a prompt containing {token_estimate} tokens, which exceeded the model's max of {max_token_count}. Retrying as two separate prompts, each including half the number of summaries.",
-            );
-            let (left, right) = current_summaries.split_at(current_summaries.len() / 2);
-            stack.push(right);
-            stack.push(left);
-        }
-    }
-
-    let all_start = std::time::Instant::now();
-
-    let (tx, rx) = channel::bounded(1024);
-
-    let completion_streams = prompts
-        .into_iter()
-        .map(|prompt| {
-            let request = make_request(prompt.clone());
-            let model = model.clone();
-            let tx = tx.clone();
-            let stream = model.stream_completion(request, &cx);
-
-            (stream, tx)
-        })
-        .collect::<Vec<_>>();
-
-    cx.background_spawn(async move {
-        let futures = completion_streams
-            .into_iter()
-            .enumerate()
-            .map(|(ix, (stream, tx))| async move {
-                let start = std::time::Instant::now();
-                let events = stream.await?;
-                log::info!("Time taken for awaiting /await chunk stream #{ix}: {:?}", start.elapsed());
-
-                let completion: String = events
-                    .filter_map(|event| async {
-                        if let Ok(LanguageModelCompletionEvent::Text(text)) = event {
-                            Some(text)
-                        } else {
-                            None
-                        }
-                    })
-                    .collect()
-                    .await;
-
-                log::info!("Time taken for all /auto chunks to come back for #{ix}: {:?}", start.elapsed());
-
-                for line in completion.split('\n') {
-                    if let Some(first_space) = line.find(' ') {
-                        let command = &line[..first_space].trim();
-                        let arg = &line[first_space..].trim();
-
-                        tx.send(CommandToRun {
-                            name: command.to_string(),
-                            arg: arg.to_string(),
-                        })
-                        .await?;
-                    } else if !line.trim().is_empty() {
-                        // All slash-commands currently supported in context inference need a space for the argument.
-                        log::warn!(
-                            "Context inference returned a non-blank line that contained no spaces (meaning no argument for the slash command): {:?}",
-                            line
-                        );
-                    }
-                }
-
-                anyhow::Ok(())
-            })
-            .collect::<Vec<_>>();
-
-        let _ = futures::future::try_join_all(futures).await.log_err();
-
-        let duration = all_start.elapsed();
-        eprintln!("All futures completed in {:?}", duration);
-    })
-        .await;
-
-    drop(tx); // Close the channel so that rx.collect() won't hang. This is safe because all futures have completed.
-    let results = rx.collect::<Vec<_>>().await;
-    eprintln!(
-        "Finished collecting from the channel with {} results",
-        results.len()
-    );
-    for command in results {
-        // Don't return empty or duplicate commands
-        if !command.name.is_empty()
-            && !final_response
-                .iter()
-                .any(|cmd: &CommandToRun| cmd.name == command.name && cmd.arg == command.arg)
-        {
-            if SUPPORTED_SLASH_COMMANDS
-                .iter()
-                .any(|supported| &command.name == supported)
-            {
-                final_response.push(command);
-            } else {
-                log::warn!(
-                    "Context inference returned an unrecognized slash command: {:?}",
-                    command
-                );
-            }
-        }
-    }
-
-    // Sort the commands by name (reversed just so that /search appears before /file)
-    final_response.sort_by(|cmd1, cmd2| cmd1.name.cmp(&cmd2.name).reverse());
-
-    Ok(final_response)
-}
--- a/crates/assistant_slash_commands/src/project_command.rs
+++ b/crates/assistant_slash_commands/src/project_command.rs
@@ -1,197 +0,0 @@
-use std::{
-    fmt::Write as _,
-    ops::DerefMut,
-    sync::{atomic::AtomicBool, Arc},
-};
-
-use anyhow::{anyhow, Result};
-use assistant_slash_command::{
-    ArgumentCompletion, SlashCommand, SlashCommandOutput, SlashCommandOutputSection,
-    SlashCommandResult,
-};
-use feature_flags::FeatureFlag;
-use gpui::{App, Task, WeakEntity};
-use language::{Anchor, CodeLabel, LspAdapterDelegate};
-use language_model::{LanguageModelRegistry, LanguageModelTool};
-use prompt_store::PromptBuilder;
-use schemars::JsonSchema;
-use semantic_index::SemanticDb;
-use serde::Deserialize;
-use ui::prelude::*;
-use workspace::Workspace;
-
-use super::{create_label_for_command, search_command::add_search_result_section};
-
-pub struct ProjectSlashCommandFeatureFlag;
-
-impl FeatureFlag for ProjectSlashCommandFeatureFlag {
-    const NAME: &'static str = "project-slash-command";
-}
-
-pub struct ProjectSlashCommand {
-    prompt_builder: Arc<PromptBuilder>,
-}
-
-impl ProjectSlashCommand {
-    pub fn new(prompt_builder: Arc<PromptBuilder>) -> Self {
-        Self { prompt_builder }
-    }
-}
-
-impl SlashCommand for ProjectSlashCommand {
-    fn name(&self) -> String {
-        "project".into()
-    }
-
-    fn label(&self, cx: &App) -> CodeLabel {
-        create_label_for_command("project", &[], cx)
-    }
-
-    fn description(&self) -> String {
-        "Generate a semantic search based on context".into()
-    }
-
-    fn icon(&self) -> IconName {
-        IconName::Folder
-    }
-
-    fn menu_text(&self) -> String {
-        self.description()
-    }
-
-    fn requires_argument(&self) -> bool {
-        false
-    }
-
-    fn complete_argument(
-        self: Arc<Self>,
-        _arguments: &[String],
-        _cancel: Arc<AtomicBool>,
-        _workspace: Option<WeakEntity<Workspace>>,
-        _window: &mut Window,
-        _cx: &mut App,
-    ) -> Task<Result<Vec<ArgumentCompletion>>> {
-        Task::ready(Ok(Vec::new()))
-    }
-
-    fn run(
-        self: Arc<Self>,
-        _arguments: &[String],
-        _context_slash_command_output_sections: &[SlashCommandOutputSection<Anchor>],
-        context_buffer: language::BufferSnapshot,
-        workspace: WeakEntity<Workspace>,
-        _delegate: Option<Arc<dyn LspAdapterDelegate>>,
-        window: &mut Window,
-        cx: &mut App,
-    ) -> Task<SlashCommandResult> {
-        let model_registry = LanguageModelRegistry::read_global(cx);
-        let current_model = model_registry.active_model();
-        let prompt_builder = self.prompt_builder.clone();
-
-        let Some(workspace) = workspace.upgrade() else {
-            return Task::ready(Err(anyhow::anyhow!("workspace was dropped")));
-        };
-        let project = workspace.read(cx).project().clone();
-        let fs = project.read(cx).fs().clone();
-        let Some(project_index) =
-            cx.update_global(|index: &mut SemanticDb, cx| index.project_index(project, cx))
-        else {
-            return Task::ready(Err(anyhow::anyhow!("no project indexer")));
-        };
-
-        window.spawn(cx, async move |cx| {
-            let current_model = current_model.ok_or_else(|| anyhow!("no model selected"))?;
-
-            let prompt =
-                prompt_builder.generate_project_slash_command_prompt(context_buffer.text())?;
-
-            let search_queries = current_model
-                .use_tool::<SearchQueries>(
-                    language_model::LanguageModelRequest {
-                        messages: vec![language_model::LanguageModelRequestMessage {
-                            role: language_model::Role::User,
-                            content: vec![language_model::MessageContent::Text(prompt)],
-                            cache: false,
-                        }],
-                        tools: vec![],
-                        stop: vec![],
-                        temperature: None,
-                    },
-                    cx.deref_mut(),
-                )
-                .await?
-                .search_queries;
-
-            let results = project_index
-                .read_with(cx, |project_index, cx| {
-                    project_index.search(search_queries.clone(), 25, cx)
-                })?
-                .await?;
-
-            let results = SemanticDb::load_results(results, &fs, &cx).await?;
-
-            cx.background_spawn(async move {
-                let mut output = "Project context:\n".to_string();
-                let mut sections = Vec::new();
-
-                for (ix, query) in search_queries.into_iter().enumerate() {
-                    let start_ix = output.len();
-                    writeln!(&mut output, "Results for {query}:").unwrap();
-                    let mut has_results = false;
-                    for result in &results {
-                        if result.query_index == ix {
-                            add_search_result_section(result, &mut output, &mut sections);
-                            has_results = true;
-                        }
-                    }
-                    if has_results {
-                        sections.push(SlashCommandOutputSection {
-                            range: start_ix..output.len(),
-                            icon: IconName::MagnifyingGlass,
-                            label: query.into(),
-                            metadata: None,
-                        });
-                        output.push('\n');
-                    } else {
-                        output.truncate(start_ix);
-                    }
-                }
-
-                sections.push(SlashCommandOutputSection {
-                    range: 0..output.len(),
-                    icon: IconName::Book,
-                    label: "Project context".into(),
-                    metadata: None,
-                });
-
-                Ok(SlashCommandOutput {
-                    text: output,
-                    sections,
-                    run_commands_in_text: true,
-                }
-                .to_event_stream())
-            })
-            .await
-        })
-    }
-}
-
-#[derive(JsonSchema, Deserialize)]
-struct SearchQueries {
-    /// An array of semantic search queries.
-    ///
-    /// These queries will be used to search the user's codebase.
-    /// The function can only accept 4 queries, otherwise it will error.
-    /// As such, it's important that you limit the length of the search_queries array to 5 queries or less.
-    search_queries: Vec<String>,
-}
-
-impl LanguageModelTool for SearchQueries {
-    fn name() -> String {
-        "search_queries".to_string()
-    }
-
-    fn description() -> String {
-        "Generate semantic search queries based on context".to_string()
-    }
-}
--- a/crates/assistant_slash_commands/src/prompt_after_summary.txt
+++ b/crates/assistant_slash_commands/src/prompt_after_summary.txt
@@ -1,24 +0,0 @@
-Actions have a cost, so only include actions that you think
-will be helpful to you in doing a great job answering the
-prompt in the future.
-
-You must respond ONLY with a list of actions you would like to
-perform. Each action should be on its own line, and followed by a space and then its parameter.
-
-Actions can be performed more than once with different parameters.
-Here is an example valid response:
-
-```
-file path/to/my/file.txt
-file path/to/another/file.txt
-search something to search for
-search something else to search for
-```
-
-Once again, do not forget: you must respond ONLY in the format of
-one action per line, and the action name should be followed by
-its parameter. Your response must not include anything other
-than a list of actions, with one action per line, in this format.
-It is extremely important that you do not deviate from this format even slightly!
-
-This is the end of my instructions for how to respond. The rest is the prompt:
--- a/crates/assistant_slash_commands/src/prompt_before_summary.txt
+++ b/crates/assistant_slash_commands/src/prompt_before_summary.txt
@@ -1,31 +0,0 @@
-I'm going to give you a prompt. I don't want you to respond
-to the prompt itself. I want you to figure out which of the following
-actions on my project, if any, would help you answer the prompt.
-
-Here are the actions:
-
-## file
-
-This action's parameter is a file path to one of the files
-in the project. If you ask for this action, I will tell you
-the full contents of the file, so you  can learn all the
-details of the file.
-
-## search
-
-This action's parameter is a string to do a semantic search for
-across the files in the project. (You will have a JSON summary
-of all the files in the project.) It will tell you which files this string
-(or similar strings; it is a semantic search) appear in,
-as well as some context of the lines surrounding each result.
-It's very important that you only use this action when you think
-that searching across the specific files in this project for the query
-in question will be useful. For example, don't use this command to search
-for queries you might put into a general Web search engine, because those
-will be too general to give useful results in this project-specific search.
-
---
-
-That was the end of the list of actions.
-
-Here is a JSON summary of each of the files in my project:
--- a/crates/assistant_slash_commands/src/search_command.rs
+++ b/crates/assistant_slash_commands/src/search_command.rs
@@ -1,181 +0,0 @@
-use anyhow::Result;
-use assistant_slash_command::{
-    ArgumentCompletion, SlashCommand, SlashCommandOutput, SlashCommandOutputSection,
-    SlashCommandResult,
-};
-use feature_flags::FeatureFlag;
-use gpui::{App, Task, WeakEntity};
-use language::{CodeLabel, LspAdapterDelegate};
-use semantic_index::{LoadedSearchResult, SemanticDb};
-use std::{
-    fmt::Write,
-    sync::{atomic::AtomicBool, Arc},
-};
-use ui::{prelude::*, IconName};
-use workspace::Workspace;
-
-use crate::create_label_for_command;
-use crate::file_command::{build_entry_output_section, codeblock_fence_for_path};
-
-pub struct SearchSlashCommandFeatureFlag;
-
-impl FeatureFlag for SearchSlashCommandFeatureFlag {
-    const NAME: &'static str = "search-slash-command";
-
-    fn enabled_for_staff() -> bool {
-        false
-    }
-}
-
-pub struct SearchSlashCommand;
-
-impl SlashCommand for SearchSlashCommand {
-    fn name(&self) -> String {
-        "search".into()
-    }
-
-    fn label(&self, cx: &App) -> CodeLabel {
-        create_label_for_command("search", &["--n"], cx)
-    }
-
-    fn description(&self) -> String {
-        "Search your project semantically".into()
-    }
-
-    fn icon(&self) -> IconName {
-        IconName::SearchCode
-    }
-
-    fn menu_text(&self) -> String {
-        self.description()
-    }
-
-    fn requires_argument(&self) -> bool {
-        true
-    }
-
-    fn complete_argument(
-        self: Arc<Self>,
-        _arguments: &[String],
-        _cancel: Arc<AtomicBool>,
-        _workspace: Option<WeakEntity<Workspace>>,
-        _window: &mut Window,
-        _cx: &mut App,
-    ) -> Task<Result<Vec<ArgumentCompletion>>> {
-        Task::ready(Ok(Vec::new()))
-    }
-
-    fn run(
-        self: Arc<Self>,
-        arguments: &[String],
-        _context_slash_command_output_sections: &[SlashCommandOutputSection<language::Anchor>],
-        _context_buffer: language::BufferSnapshot,
-        workspace: WeakEntity<Workspace>,
-        _delegate: Option<Arc<dyn LspAdapterDelegate>>,
-        window: &mut Window,
-        cx: &mut App,
-    ) -> Task<SlashCommandResult> {
-        let Some(workspace) = workspace.upgrade() else {
-            return Task::ready(Err(anyhow::anyhow!("workspace was dropped")));
-        };
-        if arguments.is_empty() {
-            return Task::ready(Err(anyhow::anyhow!("missing search query")));
-        };
-
-        let mut limit = None;
-        let mut query = String::new();
-        for part in arguments {
-            if let Some(parameter) = part.strip_prefix("--") {
-                if let Ok(count) = parameter.parse::<usize>() {
-                    limit = Some(count);
-                    continue;
-                }
-            }
-
-            query.push_str(part);
-            query.push(' ');
-        }
-        query.pop();
-
-        if query.is_empty() {
-            return Task::ready(Err(anyhow::anyhow!("missing search query")));
-        }
-
-        let project = workspace.read(cx).project().clone();
-        let fs = project.read(cx).fs().clone();
-        let Some(project_index) =
-            cx.update_global(|index: &mut SemanticDb, cx| index.project_index(project, cx))
-        else {
-            return Task::ready(Err(anyhow::anyhow!("no project indexer")));
-        };
-
-        window.spawn(cx, async move |cx| {
-            let results = project_index
-                .read_with(cx, |project_index, cx| {
-                    project_index.search(vec![query.clone()], limit.unwrap_or(5), cx)
-                })?
-                .await?;
-
-            let loaded_results = SemanticDb::load_results(results, &fs, &cx).await?;
-
-            let output = cx
-                .background_spawn(async move {
-                    let mut text = format!("Search results for {query}:\n");
-                    let mut sections = Vec::new();
-                    for loaded_result in &loaded_results {
-                        add_search_result_section(loaded_result, &mut text, &mut sections);
-                    }
-
-                    let query = SharedString::from(query);
-                    sections.push(SlashCommandOutputSection {
-                        range: 0..text.len(),
-                        icon: IconName::MagnifyingGlass,
-                        label: query,
-                        metadata: None,
-                    });
-
-                    SlashCommandOutput {
-                        text,
-                        sections,
-                        run_commands_in_text: false,
-                    }
-                    .to_event_stream()
-                })
-                .await;
-
-            Ok(output)
-        })
-    }
-}
-
-pub fn add_search_result_section(
-    loaded_result: &LoadedSearchResult,
-    text: &mut String,
-    sections: &mut Vec<SlashCommandOutputSection<usize>>,
-) {
-    let LoadedSearchResult {
-        path,
-        full_path,
-        excerpt_content,
-        row_range,
-        ..
-    } = loaded_result;
-    let section_start_ix = text.len();
-    text.push_str(&codeblock_fence_for_path(
-        Some(&path),
-        Some(row_range.clone()),
-    ));
-
-    text.push_str(&excerpt_content);
-    if !text.ends_with('\n') {
-        text.push('\n');
-    }
-    writeln!(text, "```\n").unwrap();
-    let section_end_ix = text.len() - 1;
-    sections.push(build_entry_output_section(
-        section_start_ix..section_end_ix,
-        Some(&full_path),
-        false,
-        Some(row_range.start() + 1..row_range.end() + 1),
-    ));
-}
--- a/crates/assistant_tool/Cargo.toml
+++ b/crates/assistant_tool/Cargo.toml
@@ -13,10 +13,11 @@ path = "src/assistant_tool.rs"

 [dependencies]
 anyhow.workspace = true
-collections.workspace = true
 clock.workspace = true
+collections.workspace = true
 derive_more.workspace = true
 gpui.workspace = true
+icons.workspace = true
 language.workspace = true
 language_model.workspace = true
 parking_lot.workspace = true
--- a/crates/assistant_tool/src/assistant_tool.rs
+++ b/crates/assistant_tool/src/assistant_tool.rs
@@ -1,12 +1,13 @@
 mod tool_registry;
 mod tool_working_set;

+use std::fmt::{self, Debug, Formatter};
 use std::sync::Arc;

 use anyhow::Result;
 use collections::{HashMap, HashSet};
-use gpui::Context;
-use gpui::{App, Entity, SharedString, Task};
+use gpui::{App, Context, Entity, SharedString, Task};
+use icons::IconName;
 use language::Buffer;
 use language_model::LanguageModelRequestMessage;
 use project::Project;
@@ -34,16 +35,26 @@ pub trait Tool: 'static + Send + Sync {
    /// Returns the description of the tool.
    fn description(&self) -> String;

+    /// Returns the icon for the tool.
+    fn icon(&self) -> IconName;
+
    /// Returns the source of the tool.
    fn source(&self) -> ToolSource {
        ToolSource::Native
    }

+    /// Returns true iff the tool needs the users's confirmation
+    /// before having permission to run.
+    fn needs_confirmation(&self) -> bool;
+
    /// Returns the JSON schema that describes the tool's input.
    fn input_schema(&self) -> serde_json::Value {
        serde_json::Value::Object(serde_json::Map::default())
    }

+    /// Returns markdown to be displayed in the UI for this tool.
+    fn ui_text(&self, input: &serde_json::Value) -> String;
+
    /// Runs the tool with the provided input.
    fn run(
        self: Arc<Self>,
@@ -55,6 +66,12 @@ pub trait Tool: 'static + Send + Sync {
    ) -> Task<Result<String>>;
 }

+impl Debug for dyn Tool {
+    fn fmt(&self, f: &mut Formatter<'_>) -> fmt::Result {
+        f.debug_struct("Tool").field("name", &self.name()).finish()
+    }
+}
+
 /// Tracks actions performed by tools in a thread
 #[derive(Debug)]
 pub struct ActionLog {
@@ -63,6 +80,8 @@ pub struct ActionLog {
    stale_buffers_in_context: HashSet<Entity<Buffer>>,
    /// Buffers that we want to notify the model about when they change.
    tracked_buffers: HashMap<Entity<Buffer>, TrackedBuffer>,
+    /// Has the model edited a file since it last checked diagnostics?
+    edited_since_project_diagnostics_check: bool,
 }

 #[derive(Debug, Default)]
@@ -76,6 +95,7 @@ impl ActionLog {
        Self {
            stale_buffers_in_context: HashSet::default(),
            tracked_buffers: HashMap::default(),
+            edited_since_project_diagnostics_check: false,
        }
    }

@@ -93,6 +113,12 @@ impl ActionLog {
        }

        self.stale_buffers_in_context.extend(buffers);
+        self.edited_since_project_diagnostics_check = true;
+    }
+
+    /// Notifies a diagnostics check
+    pub fn checked_project_diagnostics(&mut self) {
+        self.edited_since_project_diagnostics_check = false;
    }

    /// Iterate over buffers changed since last read or edited by the model
@@ -103,6 +129,11 @@ impl ActionLog {
            .map(|(buffer, _)| buffer)
    }

+    /// Returns true if any files have been edited since the last project diagnostics check
+    pub fn has_edited_files_since_project_diagnostics_check(&self) -> bool {
+        self.edited_since_project_diagnostics_check
+    }
+
    /// Takes and returns the set of buffers pending refresh, clearing internal state.
    pub fn take_stale_buffers_in_context(&mut self) -> HashSet<Entity<Buffer>> {
        std::mem::take(&mut self.stale_buffers_in_context)
--- a/crates/assistant_tool/src/tool_working_set.rs
+++ b/crates/assistant_tool/src/tool_working_set.rs
@@ -15,26 +15,14 @@ pub struct ToolWorkingSet {
    state: Mutex<WorkingSetState>,
 }

+#[derive(Default)]
 struct WorkingSetState {
    context_server_tools_by_id: HashMap<ToolId, Arc<dyn Tool>>,
    context_server_tools_by_name: HashMap<String, Arc<dyn Tool>>,
-    disabled_tools_by_source: HashMap<ToolSource, HashSet<Arc<str>>>,
-    is_scripting_tool_disabled: bool,
+    enabled_tools_by_source: HashMap<ToolSource, HashSet<Arc<str>>>,
    next_tool_id: ToolId,
 }

-impl Default for WorkingSetState {
-    fn default() -> Self {
-        Self {
-            context_server_tools_by_id: HashMap::default(),
-            context_server_tools_by_name: HashMap::default(),
-            disabled_tools_by_source: HashMap::default(),
-            is_scripting_tool_disabled: true,
-            next_tool_id: ToolId::default(),
-        }
-    }
-}
-
 impl ToolWorkingSet {
    pub fn tool(&self, name: &str, cx: &App) -> Option<Arc<dyn Tool>> {
        self.state
@@ -53,39 +41,23 @@ impl ToolWorkingSet {
        self.state.lock().tools_by_source(cx)
    }

-    pub fn are_all_tools_enabled(&self) -> bool {
-        let state = self.state.lock();
-        state.disabled_tools_by_source.is_empty() && !state.is_scripting_tool_disabled
-    }
-
-    pub fn are_all_tools_from_source_enabled(&self, source: &ToolSource) -> bool {
-        let state = self.state.lock();
-        !state.disabled_tools_by_source.contains_key(source)
-    }
-
    pub fn enabled_tools(&self, cx: &App) -> Vec<Arc<dyn Tool>> {
        self.state.lock().enabled_tools(cx)
    }

-    pub fn enable_all_tools(&self) {
+    pub fn disable_all_tools(&self) {
        let mut state = self.state.lock();
-        state.disabled_tools_by_source.clear();
-        state.enable_scripting_tool();
+        state.disable_all_tools();
    }

-    pub fn disable_all_tools(&self, cx: &App) {
+    pub fn enable_source(&self, source: ToolSource, cx: &App) {
        let mut state = self.state.lock();
-        state.disable_all_tools(cx);
+        state.enable_source(source, cx);
    }

-    pub fn enable_source(&self, source: &ToolSource) {
+    pub fn disable_source(&self, source: &ToolSource) {
        let mut state = self.state.lock();
-        state.enable_source(source);
-    }
-
-    pub fn disable_source(&self, source: ToolSource, cx: &App) {
-        let mut state = self.state.lock();
-        state.disable_source(source, cx);
+        state.disable_source(source);
    }

    pub fn insert(&self, tool: Arc<dyn Tool>) -> ToolId {
@@ -124,21 +96,6 @@ impl ToolWorkingSet {
            .retain(|id, _| !tool_ids_to_remove.contains(id));
        state.tools_changed();
    }
-
-    pub fn is_scripting_tool_enabled(&self) -> bool {
-        let state = self.state.lock();
-        !state.is_scripting_tool_disabled
-    }
-
-    pub fn enable_scripting_tool(&self) {
-        let mut state = self.state.lock();
-        state.enable_scripting_tool();
-    }
-
-    pub fn disable_scripting_tool(&self) {
-        let mut state = self.state.lock();
-        state.disable_scripting_tool();
-    }
 }

 impl WorkingSetState {
@@ -187,40 +144,36 @@ impl WorkingSetState {
    }

    fn is_enabled(&self, source: &ToolSource, name: &Arc<str>) -> bool {
-        !self.is_disabled(source, name)
+        self.enabled_tools_by_source
+            .get(source)
+            .map_or(false, |enabled_tools| enabled_tools.contains(name))
    }

    fn is_disabled(&self, source: &ToolSource, name: &Arc<str>) -> bool {
-        self.disabled_tools_by_source
-            .get(source)
-            .map_or(false, |disabled_tools| disabled_tools.contains(name))
+        !self.is_enabled(source, name)
    }

    fn enable(&mut self, source: ToolSource, tools_to_enable: &[Arc<str>]) {
-        self.disabled_tools_by_source
+        self.enabled_tools_by_source
            .entry(source)
            .or_default()
-            .retain(|name| !tools_to_enable.contains(name));
+            .extend(tools_to_enable.into_iter().cloned());
    }

    fn disable(&mut self, source: ToolSource, tools_to_disable: &[Arc<str>]) {
-        self.disabled_tools_by_source
+        self.enabled_tools_by_source
            .entry(source)
            .or_default()
-            .extend(tools_to_disable.into_iter().cloned());
+            .retain(|name| !tools_to_disable.contains(name));
    }

-    fn enable_source(&mut self, source: &ToolSource) {
-        self.disabled_tools_by_source.remove(source);
-    }
-
-    fn disable_source(&mut self, source: ToolSource, cx: &App) {
+    fn enable_source(&mut self, source: ToolSource, cx: &App) {
        let tools_by_source = self.tools_by_source(cx);
        let Some(tools) = tools_by_source.get(&source) else {
            return;
        };

-        self.disabled_tools_by_source.insert(
+        self.enabled_tools_by_source.insert(
            source,
            tools
                .into_iter()
@@ -229,26 +182,11 @@ impl WorkingSetState {
        );
    }

-    fn disable_all_tools(&mut self, cx: &App) {
-        let tools = self.tools_by_source(cx);
-
-        for (source, tools) in tools {
-            let tool_names = tools
-                .into_iter()
-                .map(|tool| tool.name().into())
-                .collect::<Vec<_>>();
-
-            self.disable(source, &tool_names);
-        }
-
-        self.disable_scripting_tool();
+    fn disable_source(&mut self, source: &ToolSource) {
+        self.enabled_tools_by_source.remove(source);
    }

-    fn enable_scripting_tool(&mut self) {
-        self.is_scripting_tool_disabled = false;
-    }
-
-    fn disable_scripting_tool(&mut self) {
-        self.is_scripting_tool_disabled = true;
+    fn disable_all_tools(&mut self) {
+        self.enabled_tools_by_source.clear();
    }
 }
--- a/crates/assistant_tools/Cargo.toml
+++ b/crates/assistant_tools/Cargo.toml
@@ -35,6 +35,7 @@ ui.workspace = true
 util.workspace = true
 workspace.workspace = true
 worktree.workspace = true
+open = { workspace = true }

 [dev-dependencies]
 collections = { workspace = true, features = ["test-support"] }
--- a/crates/assistant_tools/src/assistant_tools.rs
+++ b/crates/assistant_tools/src/assistant_tools.rs
@@ -1,28 +1,43 @@
 mod bash_tool;
+mod batch_tool;
+mod copy_path_tool;
+mod create_directory_tool;
+mod create_file_tool;
 mod delete_path_tool;
 mod diagnostics_tool;
 mod edit_files_tool;
 mod fetch_tool;
+mod find_replace_file_tool;
 mod list_directory_tool;
+mod move_path_tool;
 mod now_tool;
+mod open_tool;
 mod path_search_tool;
 mod read_file_tool;
 mod regex_search_tool;
+mod replace;
 mod thinking_tool;

 use std::sync::Arc;

 use assistant_tool::ToolRegistry;
+use copy_path_tool::CopyPathTool;
 use gpui::App;
 use http_client::HttpClientWithUrl;
+use move_path_tool::MovePathTool;

 use crate::bash_tool::BashTool;
+use crate::batch_tool::BatchTool;
+use crate::create_directory_tool::CreateDirectoryTool;
+use crate::create_file_tool::CreateFileTool;
 use crate::delete_path_tool::DeletePathTool;
 use crate::diagnostics_tool::DiagnosticsTool;
 use crate::edit_files_tool::EditFilesTool;
 use crate::fetch_tool::FetchTool;
+use crate::find_replace_file_tool::FindReplaceFileTool;
 use crate::list_directory_tool::ListDirectoryTool;
 use crate::now_tool::NowTool;
+use crate::open_tool::OpenTool;
 use crate::path_search_tool::PathSearchTool;
 use crate::read_file_tool::ReadFileTool;
 use crate::regex_search_tool::RegexSearchTool;
@@ -34,11 +49,18 @@ pub fn init(http_client: Arc<HttpClientWithUrl>, cx: &mut App) {

    let registry = ToolRegistry::global(cx);
    registry.register_tool(BashTool);
+    registry.register_tool(BatchTool);
+    registry.register_tool(CreateDirectoryTool);
+    registry.register_tool(CreateFileTool);
+    registry.register_tool(CopyPathTool);
    registry.register_tool(DeletePathTool);
+    registry.register_tool(FindReplaceFileTool);
+    registry.register_tool(MovePathTool);
    registry.register_tool(DiagnosticsTool);
    registry.register_tool(EditFilesTool);
    registry.register_tool(ListDirectoryTool);
    registry.register_tool(NowTool);
+    registry.register_tool(OpenTool);
    registry.register_tool(PathSearchTool);
    registry.register_tool(ReadFileTool);
    registry.register_tool(RegexSearchTool);
--- a/crates/assistant_tools/src/bash_tool.rs
+++ b/crates/assistant_tools/src/bash_tool.rs
@@ -5,8 +5,11 @@ use language_model::LanguageModelRequestMessage;
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
+use std::path::Path;
 use std::sync::Arc;
+use ui::IconName;
 use util::command::new_smol_command;
+use util::markdown::MarkdownString;

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct BashToolInput {
@@ -16,6 +19,41 @@ pub struct BashToolInput {
    cd: String,
 }

+/// Custom deserialization function for BashToolInput that handles missing "cd" field
+/// Returns a BashToolInput with the project's first worktree root as default "cd" if missing
+fn from_value_with_default_cd(value: serde_json::Value, project: Option<&Project>, cx: Option<&App>) -> Result<BashToolInput> {
+    // Try standard deserialization first
+    if let Ok(input) = serde_json::from_value::<BashToolInput>(value.clone()) {
+        return Ok(input);
+    }
+
+    // If that fails, check if it's because "cd" is missing
+    let mut obj = match value {
+        serde_json::Value::Object(obj) => obj,
+        _ => return Err(anyhow!("Expected object for BashToolInput")),
+    };
+
+    if !obj.contains_key("cd") {
+        // Find first worktree root to use as default if project context is available
+        if let (Some(project), Some(cx)) = (project, cx) {
+            if let Some(worktree) = project.worktrees(cx).next() {
+                let root_name = worktree.read(cx).root_name().to_string();
+                obj.insert("cd".to_string(), serde_json::Value::String(root_name));
+            } else {
+                // No worktrees available, use "." as fallback
+                obj.insert("cd".to_string(), serde_json::Value::String(".".to_string()));
+            }
+        } else {
+            // No project context, use "." as fallback
+            obj.insert("cd".to_string(), serde_json::Value::String(".".to_string()));
+        }
+    }
+
+    // Try to deserialize with the modified object
+    serde_json::from_value::<BashToolInput>(serde_json::Value::Object(obj))
+        .map_err(|e| anyhow!("Failed to deserialize BashToolInput: {}", e))
+}
+
 pub struct BashTool;

 impl Tool for BashTool {
@@ -23,15 +61,36 @@ impl Tool for BashTool {
        "bash".to_string()
    }

+    fn needs_confirmation(&self) -> bool {
+        true
+    }
+
    fn description(&self) -> String {
        include_str!("./bash_tool/description.md").to_string()
    }

+    fn icon(&self) -> IconName {
+        IconName::Terminal
+    }
+
    fn input_schema(&self) -> serde_json::Value {
        let schema = schemars::schema_for!(BashToolInput);
        serde_json::to_value(&schema).unwrap()
    }

+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match from_value_with_default_cd(input.clone(), None, None) {
+            Ok(input) => {
+                if input.command.contains('\n') {
+                    MarkdownString::code_block("bash", &input.command).0
+                } else {
+                    MarkdownString::inline_code(&input.command).0
+                }
+            }
+            Err(_) => "Run bash command".to_string(),
+        }
+    }
+
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
@@ -40,15 +99,49 @@ impl Tool for BashTool {
        _action_log: Entity<ActionLog>,
        cx: &mut App,
    ) -> Task<Result<String>> {
-        let input: BashToolInput = match serde_json::from_value(input) {
+        let input: BashToolInput = match from_value_with_default_cd(input, Some(&project.read(cx)), Some(cx)) {
            Ok(input) => input,
            Err(err) => return Task::ready(Err(anyhow!(err))),
        };

-        let Some(worktree) = project.read(cx).worktree_for_root_name(&input.cd, cx) else {
-            return Task::ready(Err(anyhow!("Working directory not found in the project")));
+        let project = project.read(cx);
+        let input_path = Path::new(&input.cd);
+        let working_dir = if input.cd == "." {
+            // Accept "." as meaning "the one worktree" if we only have one worktree.
+            let mut worktrees = project.worktrees(cx);
+
+            let only_worktree = match worktrees.next() {
+                Some(worktree) => worktree,
+                None => return Task::ready(Err(anyhow!("No worktrees found in the project"))),
+            };
+
+            if worktrees.next().is_some() {
+                return Task::ready(Err(anyhow!("'.' is ambiguous in multi-root workspaces. Please specify a root directory explicitly.")));
+            }
+
+            only_worktree.read(cx).abs_path()
+        } else if input_path.is_absolute() {
+            // Absolute paths are allowed, but only if they're in one of the project's worktrees.
+            if !project
+                .worktrees(cx)
+                .any(|worktree| input_path.starts_with(&worktree.read(cx).abs_path()))
+            {
+                return Task::ready(Err(anyhow!(
+                    "The absolute path must be within one of the project's worktrees"
+                )));
+            }
+
+            input_path.into()
+        } else {
+            let Some(worktree) = project.worktree_for_root_name(&input.cd, cx) else {
+                return Task::ready(Err(anyhow!(
+                    "`cd` directory {} not found in the project",
+                    &input.cd
+                )));
+            };
+
+            worktree.read(cx).abs_path()
        };
-        let working_directory = worktree.read(cx).abs_path();

        cx.spawn(async move |_| {
            // Add 2>&1 to merge stderr into stdout for proper interleaving.
@@ -57,7 +150,7 @@ impl Tool for BashTool {
            let output = new_smol_command("bash")
                .arg("-c")
                .arg(&command)
-                .current_dir(working_directory)
+                .current_dir(working_dir)
                .output()
                .await
                .context("Failed to execute bash command")?;
--- a/crates/assistant_tools/src/batch_tool.rs
+++ b/crates/assistant_tools/src/batch_tool.rs
@@ -0,0 +1,301 @@
+use anyhow::{anyhow, Result};
+use assistant_tool::{ActionLog, Tool, ToolWorkingSet};
+use futures::future::join_all;
+use gpui::{App, AppContext, Entity, Task};
+use language_model::LanguageModelRequestMessage;
+use project::Project;
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
+use std::sync::Arc;
+use ui::IconName;
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+pub struct ToolInvocation {
+    /// The name of the tool to invoke
+    pub name: String,
+
+    /// The input to the tool in JSON format
+    pub input: serde_json::Value,
+}
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+pub struct BatchToolInput {
+    /// The tool invocations to run as a batch. These tools will be run either sequentially
+    /// or concurrently depending on the `run_tools_concurrently` flag.
+    ///
+    /// <example>
+    /// Basic file operations (concurrent)
+    ///
+    /// ```json
+    /// {
+    ///   "invocations": [
+    ///     {
+    ///       "name": "read-file",
+    ///       "input": {
+    ///         "path": "src/main.rs"
+    ///       }
+    ///     },
+    ///     {
+    ///       "name": "list-directory",
+    ///       "input": {
+    ///         "path": "src/lib"
+    ///       }
+    ///     },
+    ///     {
+    ///       "name": "regex-search",
+    ///       "input": {
+    ///         "regex": "fn run\\("
+    ///       }
+    ///     }
+    ///   ],
+    ///   "run_tools_concurrently": true
+    /// }
+    /// ```
+    /// </example>
+    ///
+    /// <example>
+    /// Multiple find-replace operations on the same file (sequential)
+    ///
+    /// ```json
+    /// {
+    ///   "invocations": [
+    ///     {
+    ///       "name": "find-replace-file",
+    ///       "input": {
+    ///         "path": "src/config.rs",
+    ///         "display_description": "Update default timeout value",
+    ///         "find": "pub const DEFAULT_TIMEOUT: u64 = 30;\n\npub const MAX_RETRIES: u32 = 3;\n\npub const SERVER_URL: &str = \"https://api.example.com\";",
+    ///         "replace": "pub const DEFAULT_TIMEOUT: u64 = 60;\n\npub const MAX_RETRIES: u32 = 3;\n\npub const SERVER_URL: &str = \"https://api.example.com\";"
+    ///       }
+    ///     },
+    ///     {
+    ///       "name": "find-replace-file",
+    ///       "input": {
+    ///         "path": "src/config.rs",
+    ///         "display_description": "Update API endpoint URL",
+    ///         "find": "pub const MAX_RETRIES: u32 = 3;\n\npub const SERVER_URL: &str = \"https://api.example.com\";\n\npub const API_VERSION: &str = \"v1\";",
+    ///         "replace": "pub const MAX_RETRIES: u32 = 3;\n\npub const SERVER_URL: &str = \"https://api.newdomain.com\";\n\npub const API_VERSION: &str = \"v1\";"
+    ///       }
+    ///     }
+    ///   ],
+    ///   "run_tools_concurrently": false
+    /// }
+    /// ```
+    /// </example>
+    ///
+    /// <example>
+    /// Searching and analyzing code (concurrent)
+    ///
+    /// ```json
+    /// {
+    ///   "invocations": [
+    ///     {
+    ///       "name": "regex-search",
+    ///       "input": {
+    ///         "regex": "impl Database"
+    ///       }
+    ///     },
+    ///     {
+    ///       "name": "path-search",
+    ///       "input": {
+    ///         "glob": "**/*test*.rs"
+    ///       }
+    ///     }
+    ///   ],
+    ///   "run_tools_concurrently": true
+    /// }
+    /// ```
+    /// </example>
+    ///
+    /// <example>
+    /// Multi-file refactoring (concurrent)
+    ///
+    /// ```json
+    /// {
+    ///   "invocations": [
+    ///     {
+    ///       "name": "find-replace-file",
+    ///       "input": {
+    ///         "path": "src/models/user.rs",
+    ///         "display_description": "Add email field to User struct",
+    ///         "find": "pub struct User {\n    pub id: u64,\n    pub username: String,\n    pub created_at: DateTime<Utc>,\n}",
+    ///         "replace": "pub struct User {\n    pub id: u64,\n    pub username: String,\n    pub email: String,\n    pub created_at: DateTime<Utc>,\n}"
+    ///       }
+    ///     },
+    ///     {
+    ///       "name": "find-replace-file",
+    ///       "input": {
+    ///         "path": "src/db/queries.rs",
+    ///         "display_description": "Update user insertion query",
+    ///         "find": "pub async fn insert_user(conn: &mut Connection, user: &User) -> Result<(), DbError> {\n    conn.execute(\n        \"INSERT INTO users (id, username, created_at) VALUES ($1, $2, $3)\",\n        &[&user.id, &user.username, &user.created_at],\n    ).await?;\n    \n    Ok(())\n}",
+    ///         "replace": "pub async fn insert_user(conn: &mut Connection, user: &User) -> Result<(), DbError> {\n    conn.execute(\n        \"INSERT INTO users (id, username, email, created_at) VALUES ($1, $2, $3, $4)\",\n        &[&user.id, &user.username, &user.email, &user.created_at],\n    ).await?;\n    \n    Ok(())\n}"
+    ///       }
+    ///     }
+    ///   ],
+    ///   "run_tools_concurrently": true
+    /// }
+    /// ```
+    /// </example>
+    pub invocations: Vec<ToolInvocation>,
+
+    /// Whether to run the tools in this batch concurrently. If this is false (the default), the tools will run sequentially.
+    #[serde(default)]
+    pub run_tools_concurrently: bool,
+}
+
+pub struct BatchTool;
+
+impl Tool for BatchTool {
+    fn name(&self) -> String {
+        "batch-tool".into()
+    }
+
+    fn needs_confirmation(&self) -> bool {
+        true
+    }
+
+    fn description(&self) -> String {
+        include_str!("./batch_tool/description.md").into()
+    }
+
+    fn icon(&self) -> IconName {
+        IconName::Cog
+    }
+
+    fn input_schema(&self) -> serde_json::Value {
+        let schema = schemars::schema_for!(BatchToolInput);
+        serde_json::to_value(&schema).unwrap()
+    }
+
+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<BatchToolInput>(input.clone()) {
+            Ok(input) => {
+                let count = input.invocations.len();
+                let mode = if input.run_tools_concurrently {
+                    "concurrently"
+                } else {
+                    "sequentially"
+                };
+
+                let first_tool_name = input
+                    .invocations
+                    .first()
+                    .map(|inv| inv.name.clone())
+                    .unwrap_or_default();
+
+                let all_same = input
+                    .invocations
+                    .iter()
+                    .all(|invocation| invocation.name == first_tool_name);
+
+                if all_same {
+                    format!(
+                        "Run `{}` {} times {}",
+                        first_tool_name,
+                        input.invocations.len(),
+                        mode
+                    )
+                } else {
+                    format!("Run {} tools {}", count, mode)
+                }
+            }
+            Err(_) => "Batch tools".to_string(),
+        }
+    }
+
+    fn run(
+        self: Arc<Self>,
+        input: serde_json::Value,
+        messages: &[LanguageModelRequestMessage],
+        project: Entity<Project>,
+        action_log: Entity<ActionLog>,
+        cx: &mut App,
+    ) -> Task<Result<String>> {
+        let input = match serde_json::from_value::<BatchToolInput>(input) {
+            Ok(input) => input,
+            Err(err) => return Task::ready(Err(anyhow!(err))),
+        };
+
+        if input.invocations.is_empty() {
+            return Task::ready(Err(anyhow!("No tool invocations provided")));
+        }
+
+        let run_tools_concurrently = input.run_tools_concurrently;
+
+        let foreground_task = {
+            let working_set = ToolWorkingSet::default();
+            let invocations = input.invocations;
+            let messages = messages.to_vec();
+
+            cx.spawn(async move |cx| {
+                let mut tasks = Vec::new();
+                let mut tool_names = Vec::new();
+
+                for invocation in invocations {
+                    let tool_name = invocation.name.clone();
+                    tool_names.push(tool_name.clone());
+
+                    let tool = cx
+                        .update(|cx| working_set.tool(&tool_name, cx))
+                        .map_err(|err| {
+                            anyhow!("Failed to look up tool '{}': {}", tool_name, err)
+                        })?;
+
+                    let Some(tool) = tool else {
+                        return Err(anyhow!("Tool '{}' not found", tool_name));
+                    };
+
+                    let project = project.clone();
+                    let action_log = action_log.clone();
+                    let messages = messages.clone();
+                    let task = cx
+                        .update(|cx| tool.run(invocation.input, &messages, project, action_log, cx))
+                        .map_err(|err| anyhow!("Failed to start tool '{}': {}", tool_name, err))?;
+
+                    tasks.push(task);
+                }
+
+                Ok((tasks, tool_names))
+            })
+        };
+
+        cx.background_spawn(async move {
+            let (tasks, tool_names) = foreground_task.await?;
+            let mut results = Vec::with_capacity(tasks.len());
+
+            if run_tools_concurrently {
+                results.extend(join_all(tasks).await)
+            } else {
+                for task in tasks {
+                    results.push(task.await);
+                }
+            };
+
+            let mut formatted_results = String::new();
+            let mut error_occurred = false;
+
+            for (i, result) in results.into_iter().enumerate() {
+                let tool_name = &tool_names[i];
+
+                match result {
+                    Ok(output) => {
+                        formatted_results
+                            .push_str(&format!("Tool '{}' result:\n{}\n\n", tool_name, output));
+                    }
+                    Err(err) => {
+                        error_occurred = true;
+                        formatted_results
+                            .push_str(&format!("Tool '{}' error: {}\n\n", tool_name, err));
+                    }
+                }
+            }
+
+            if error_occurred {
+                formatted_results
+                    .push_str("Note: Some tool invocations failed. See individual results above.");
+            }
+
+            Ok(formatted_results.trim().to_string())
+        })
+    }
+}
--- a/crates/assistant_tools/src/batch_tool/description.md
+++ b/crates/assistant_tools/src/batch_tool/description.md
@@ -0,0 +1,9 @@
+Invoke multiple other tool calls either sequentially or concurrently.
+
+This tool is useful when you need to perform several operations at once, improving efficiency by reducing the number of back-and-forth interactions needed to complete complex tasks.
+
+If the tool calls are set to be run sequentially, then each tool call within the batch is executed in the order provided. If it's set to run concurrently, then they may run in a different order. Regardless, all tool calls will have the same permissions and context as if they were called individually.
+
+This tool should never be used to run a total of one tool. Instead, just run that one tool directly. You can run batches within batches if desired, which is a way you can mix concurrent and sequential tool call execution.
+
+When it's possible to run tools in a batch, you should run as many as possible in the batch, up to a maximum of 32. For example, don't run multiple consecutive batches of 10 when you could instead run one batch of 30.
--- a/crates/assistant_tools/src/copy_path_tool.rs
+++ b/crates/assistant_tools/src/copy_path_tool.rs
@@ -0,0 +1,120 @@
+use anyhow::{anyhow, Result};
+use assistant_tool::{ActionLog, Tool};
+use gpui::{App, AppContext, Entity, Task};
+use language_model::LanguageModelRequestMessage;
+use project::Project;
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
+use std::sync::Arc;
+use ui::IconName;
+use util::markdown::MarkdownString;
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+pub struct CopyPathToolInput {
+    /// The source path of the file or directory to copy.
+    /// If a directory is specified, its contents will be copied recursively (like `cp -r`).
+    ///
+    /// <example>
+    /// If the project has the following files:
+    ///
+    /// - directory1/a/something.txt
+    /// - directory2/a/things.txt
+    /// - directory3/a/other.txt
+    ///
+    /// You can copy the first file by providing a source_path of "directory1/a/something.txt"
+    /// </example>
+    pub source_path: String,
+
+    /// The destination path where the file or directory should be copied to.
+    ///
+    /// <example>
+    /// To copy "directory1/a/something.txt" to "directory2/b/copy.txt",
+    /// provide a destination_path of "directory2/b/copy.txt"
+    /// </example>
+    pub destination_path: String,
+}
+
+pub struct CopyPathTool;
+
+impl Tool for CopyPathTool {
+    fn name(&self) -> String {
+        "copy-path".into()
+    }
+
+    fn needs_confirmation(&self) -> bool {
+        true
+    }
+
+    fn description(&self) -> String {
+        include_str!("./copy_path_tool/description.md").into()
+    }
+
+    fn icon(&self) -> IconName {
+        IconName::Clipboard
+    }
+
+    fn input_schema(&self) -> serde_json::Value {
+        let schema = schemars::schema_for!(CopyPathToolInput);
+        serde_json::to_value(&schema).unwrap()
+    }
+
+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<CopyPathToolInput>(input.clone()) {
+            Ok(input) => {
+                let src = MarkdownString::inline_code(&input.source_path);
+                let dest = MarkdownString::inline_code(&input.destination_path);
+                format!("Copy {src} to {dest}")
+            }
+            Err(_) => "Copy path".to_string(),
+        }
+    }
+
+    fn run(
+        self: Arc<Self>,
+        input: serde_json::Value,
+        _messages: &[LanguageModelRequestMessage],
+        project: Entity<Project>,
+        _action_log: Entity<ActionLog>,
+        cx: &mut App,
+    ) -> Task<Result<String>> {
+        let input = match serde_json::from_value::<CopyPathToolInput>(input) {
+            Ok(input) => input,
+            Err(err) => return Task::ready(Err(anyhow!(err))),
+        };
+        let copy_task = project.update(cx, |project, cx| {
+            match project
+                .find_project_path(&input.source_path, cx)
+                .and_then(|project_path| project.entry_for_path(&project_path, cx))
+            {
+                Some(entity) => match project.find_project_path(&input.destination_path, cx) {
+                    Some(project_path) => {
+                        project.copy_entry(entity.id, None, project_path.path, cx)
+                    }
+                    None => Task::ready(Err(anyhow!(
+                        "Destination path {} was outside the project.",
+                        input.destination_path
+                    ))),
+                },
+                None => Task::ready(Err(anyhow!(
+                    "Source path {} was not found in the project.",
+                    input.source_path
+                ))),
+            }
+        });
+
+        cx.background_spawn(async move {
+            match copy_task.await {
+                Ok(_) => Ok(format!(
+                    "Copied {} to {}",
+                    input.source_path, input.destination_path
+                )),
+                Err(err) => Err(anyhow!(
+                    "Failed to copy {} to {}: {}",
+                    input.source_path,
+                    input.destination_path,
+                    err
+                )),
+            }
+        })
+    }
+}
--- a/crates/assistant_tools/src/copy_path_tool/description.md
+++ b/crates/assistant_tools/src/copy_path_tool/description.md
@@ -0,0 +1,6 @@
+Copies a file or directory in the project, and returns confirmation that the copy succeeded.
+Directory contents will be copied recursively (like `cp -r`).
+
+This tool should be used when it's desirable to create a copy of a file or directory without modifying the original.
+It's much more efficient than doing this by separately reading and then writing the file or directory's contents,
+so this tool should be preferred over that approach whenever copying is the goal.
--- a/crates/assistant_tools/src/create_directory_tool.rs
+++ b/crates/assistant_tools/src/create_directory_tool.rs
@@ -0,0 +1,92 @@
+use anyhow::{anyhow, Result};
+use assistant_tool::{ActionLog, Tool};
+use gpui::{App, Entity, Task};
+use language_model::LanguageModelRequestMessage;
+use project::Project;
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
+use std::sync::Arc;
+use ui::IconName;
+use util::markdown::MarkdownString;
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+pub struct CreateDirectoryToolInput {
+    /// The path of the new directory.
+    ///
+    /// <example>
+    /// If the project has the following structure:
+    ///
+    /// - directory1/
+    /// - directory2/
+    ///
+    /// You can create a new directory by providing a path of "directory1/new_directory"
+    /// </example>
+    pub path: String,
+}
+
+pub struct CreateDirectoryTool;
+
+impl Tool for CreateDirectoryTool {
+    fn name(&self) -> String {
+        "create-directory".into()
+    }
+
+    fn needs_confirmation(&self) -> bool {
+        true
+    }
+
+    fn description(&self) -> String {
+        include_str!("./create_directory_tool/description.md").into()
+    }
+
+    fn icon(&self) -> IconName {
+        IconName::Folder
+    }
+
+    fn input_schema(&self) -> serde_json::Value {
+        let schema = schemars::schema_for!(CreateDirectoryToolInput);
+        serde_json::to_value(&schema).unwrap()
+    }
+
+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<CreateDirectoryToolInput>(input.clone()) {
+            Ok(input) => {
+                format!(
+                    "Create directory {}",
+                    MarkdownString::inline_code(&input.path)
+                )
+            }
+            Err(_) => "Create directory".to_string(),
+        }
+    }
+
+    fn run(
+        self: Arc<Self>,
+        input: serde_json::Value,
+        _messages: &[LanguageModelRequestMessage],
+        project: Entity<Project>,
+        _action_log: Entity<ActionLog>,
+        cx: &mut App,
+    ) -> Task<Result<String>> {
+        let input = match serde_json::from_value::<CreateDirectoryToolInput>(input) {
+            Ok(input) => input,
+            Err(err) => return Task::ready(Err(anyhow!(err))),
+        };
+        let project_path = match project.read(cx).find_project_path(&input.path, cx) {
+            Some(project_path) => project_path,
+            None => return Task::ready(Err(anyhow!("Path to create was outside the project"))),
+        };
+        let destination_path: Arc<str> = input.path.as_str().into();
+
+        cx.spawn(async move |cx| {
+            project
+                .update(cx, |project, cx| {
+                    project.create_entry(project_path.clone(), true, cx)
+                })?
+                .await
+                .map_err(|err| anyhow!("Unable to create directory {destination_path}: {err}"))?;
+
+            Ok(format!("Created directory {destination_path}"))
+        })
+    }
+}
--- a/crates/assistant_tools/src/create_directory_tool/description.md
+++ b/crates/assistant_tools/src/create_directory_tool/description.md
@@ -0,0 +1,3 @@
+Creates a new directory at the specified path within the project. Returns confirmation that the directory was created.
+
+This tool creates a directory and all necessary parent directories (similar to `mkdir -p`). It should be used whenever you need to create new directories within the project.
--- a/crates/assistant_tools/src/create_file_tool.rs
+++ b/crates/assistant_tools/src/create_file_tool.rs
@@ -0,0 +1,112 @@
+use anyhow::{anyhow, Result};
+use assistant_tool::{ActionLog, Tool};
+use gpui::{App, Entity, Task};
+use language_model::LanguageModelRequestMessage;
+use project::Project;
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
+use std::sync::Arc;
+use ui::IconName;
+use util::markdown::MarkdownString;
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+pub struct CreateFileToolInput {
+    /// The path where the file should be created.
+    ///
+    /// <example>
+    /// If the project has the following structure:
+    ///
+    /// - directory1/
+    /// - directory2/
+    ///
+    /// You can create a new file by providing a path of "directory1/new_file.txt"
+    /// </example>
+    pub path: String,
+
+    /// The text contents of the file to create.
+    ///
+    /// <example>
+    /// To create a file with the text "Hello, World!", provide contents of "Hello, World!"
+    /// </example>
+    pub contents: String,
+}
+
+pub struct CreateFileTool;
+
+impl Tool for CreateFileTool {
+    fn name(&self) -> String {
+        "create-file".into()
+    }
+
+    fn needs_confirmation(&self) -> bool {
+        true
+    }
+
+    fn description(&self) -> String {
+        include_str!("./create_file_tool/description.md").into()
+    }
+
+    fn icon(&self) -> IconName {
+        IconName::FileCreate
+    }
+
+    fn input_schema(&self) -> serde_json::Value {
+        let schema = schemars::schema_for!(CreateFileToolInput);
+        serde_json::to_value(&schema).unwrap()
+    }
+
+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<CreateFileToolInput>(input.clone()) {
+            Ok(input) => {
+                let path = MarkdownString::inline_code(&input.path);
+                format!("Create file {path}")
+            }
+            Err(_) => "Create file".to_string(),
+        }
+    }
+
+    fn run(
+        self: Arc<Self>,
+        input: serde_json::Value,
+        _messages: &[LanguageModelRequestMessage],
+        project: Entity<Project>,
+        _action_log: Entity<ActionLog>,
+        cx: &mut App,
+    ) -> Task<Result<String>> {
+        let input = match serde_json::from_value::<CreateFileToolInput>(input) {
+            Ok(input) => input,
+            Err(err) => return Task::ready(Err(anyhow!(err))),
+        };
+        let project_path = match project.read(cx).find_project_path(&input.path, cx) {
+            Some(project_path) => project_path,
+            None => return Task::ready(Err(anyhow!("Path to create was outside the project"))),
+        };
+        let contents: Arc<str> = input.contents.as_str().into();
+        let destination_path: Arc<str> = input.path.as_str().into();
+
+        cx.spawn(async move |cx| {
+            project
+                .update(cx, |project, cx| {
+                    project.create_entry(project_path.clone(), false, cx)
+                })?
+                .await
+                .map_err(|err| anyhow!("Unable to create {destination_path}: {err}"))?;
+            let buffer = project
+                .update(cx, |project, cx| {
+                    project.open_buffer(project_path.clone(), cx)
+                })?
+                .await
+                .map_err(|err| anyhow!("Unable to open buffer for {destination_path}: {err}"))?;
+            buffer.update(cx, |buffer, cx| {
+                buffer.set_text(contents, cx);
+            })?;
+
+            project
+                .update(cx, |project, cx| project.save_buffer(buffer.clone(), cx))?
+                .await
+                .map_err(|err| anyhow!("Unable to save buffer for {destination_path}: {err}"))?;
+
+            Ok(format!("Created file {destination_path}"))
+        })
+    }
+}
--- a/crates/assistant_tools/src/create_file_tool/description.md
+++ b/crates/assistant_tools/src/create_file_tool/description.md
@@ -0,0 +1,3 @@
+Creates a new file at the specified path within the project, containing the given text content. Returns confirmation that the file was created.
+
+This tool is the most efficient way to create new files within the project, so it should always be chosen whenever it's necessary to create a new file in the project with specific text content, or whenever a file in the project needs such a drastic change that you would prefer to replace the entire thing instead of making individual edits. This tool should not be used when making changes to parts of an existing file but not all of it. In those cases, it's better to use another approach to edit the file.
--- a/crates/assistant_tools/src/delete_path_tool.rs
+++ b/crates/assistant_tools/src/delete_path_tool.rs
@@ -6,6 +6,7 @@ use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use std::sync::Arc;
+use ui::IconName;

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct DeletePathToolInput {
@@ -30,15 +31,30 @@ impl Tool for DeletePathTool {
        "delete-path".into()
    }

+    fn needs_confirmation(&self) -> bool {
+        true
+    }
+
    fn description(&self) -> String {
        include_str!("./delete_path_tool/description.md").into()
    }

+    fn icon(&self) -> IconName {
+        IconName::FileDelete
+    }
+
    fn input_schema(&self) -> serde_json::Value {
        let schema = schemars::schema_for!(DeletePathToolInput);
        serde_json::to_value(&schema).unwrap()
    }

+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<DeletePathToolInput>(input.clone()) {
+            Ok(input) => format!("Delete “`{}`”", input.path),
+            Err(_) => "Delete path".to_string(),
+        }
+    }
+
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
@@ -59,13 +75,12 @@ impl Tool for DeletePathTool {
        {
            Some(deletion_task) => cx.background_spawn(async move {
                match deletion_task.await {
-                    Ok(()) => Ok(format!("Deleted {}", &path_str)),
-                    Err(err) => Err(anyhow!("Failed to delete {}: {}", &path_str, err)),
+                    Ok(()) => Ok(format!("Deleted {path_str}")),
+                    Err(err) => Err(anyhow!("Failed to delete {path_str}: {err}")),
                }
            }),
            None => Task::ready(Err(anyhow!(
-                "Couldn't delete {} because that path isn't in this project.",
-                path_str
+                "Couldn't delete {path_str} because that path isn't in this project."
            ))),
        }
    }
--- a/crates/assistant_tools/src/diagnostics_tool.rs
+++ b/crates/assistant_tools/src/diagnostics_tool.rs
@@ -6,11 +6,9 @@ use language_model::LanguageModelRequestMessage;
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
-use std::{
-    fmt::Write,
-    path::{Path, PathBuf},
-    sync::Arc,
-};
+use std::{fmt::Write, path::Path, sync::Arc};
+use ui::IconName;
+use util::markdown::MarkdownString;

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct DiagnosticsToolInput {
@@ -27,7 +25,17 @@ pub struct DiagnosticsToolInput {
    ///
    /// If you wanna access diagnostics for `dolor.txt` in `ipsum`, you should use the path `ipsum/dolor.txt`.
    /// </example>
-    pub path: Option<PathBuf>,
+    #[serde(deserialize_with = "deserialize_path")]
+    pub path: Option<String>,
+}
+
+fn deserialize_path<'de, D>(deserializer: D) -> Result<Option<String>, D::Error>
+where
+    D: serde::Deserializer<'de>,
+{
+    let opt = Option::<String>::deserialize(deserializer)?;
+    // The model passes an empty string sometimes
+    Ok(opt.filter(|s| !s.is_empty()))
 }

 pub struct DiagnosticsTool;
@@ -37,91 +45,120 @@ impl Tool for DiagnosticsTool {
        "diagnostics".into()
    }

+    fn needs_confirmation(&self) -> bool {
+        false
+    }
+
    fn description(&self) -> String {
        include_str!("./diagnostics_tool/description.md").into()
    }

+    fn icon(&self) -> IconName {
+        IconName::Warning
+    }
+
    fn input_schema(&self) -> serde_json::Value {
        let schema = schemars::schema_for!(DiagnosticsToolInput);
        serde_json::to_value(&schema).unwrap()
    }

+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        if let Some(path) = serde_json::from_value::<DiagnosticsToolInput>(input.clone())
+            .ok()
+            .and_then(|input| match input.path {
+                Some(path) if !path.is_empty() => Some(MarkdownString::inline_code(&path)),
+                _ => None,
+            })
+        {
+            format!("Check diagnostics for {path}")
+        } else {
+            "Check project diagnostics".to_string()
+        }
+    }
+
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
        _messages: &[LanguageModelRequestMessage],
        project: Entity<Project>,
-        _action_log: Entity<ActionLog>,
+        action_log: Entity<ActionLog>,
        cx: &mut App,
    ) -> Task<Result<String>> {
-        let input = match serde_json::from_value::<DiagnosticsToolInput>(input) {
-            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))),
-        };
+        match serde_json::from_value::<DiagnosticsToolInput>(input)
+            .ok()
+            .and_then(|input| input.path)
+        {
+            Some(path) if !path.is_empty() => {
+                let Some(project_path) = project.read(cx).find_project_path(&path, cx) else {
+                    return Task::ready(Err(anyhow!("Could not find path {path} in project",)));
+                };

-        if let Some(path) = input.path {
-            let Some(project_path) = project.read(cx).find_project_path(&path, cx) else {
-                return Task::ready(Err(anyhow!("Could not find path in project")));
-            };
-            let buffer = project.update(cx, |project, cx| project.open_buffer(project_path, cx));
+                let buffer =
+                    project.update(cx, |project, cx| project.open_buffer(project_path, cx));

-            cx.spawn(async move |cx| {
-                let mut output = String::new();
-                let buffer = buffer.await?;
-                let snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot())?;
+                cx.spawn(async move |cx| {
+                    let mut output = String::new();
+                    let buffer = buffer.await?;
+                    let snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot())?;

-                for (_, group) in snapshot.diagnostic_groups(None) {
-                    let entry = &group.entries[group.primary_ix];
-                    let range = entry.range.to_point(&snapshot);
-                    let severity = match entry.diagnostic.severity {
-                        DiagnosticSeverity::ERROR => "error",
-                        DiagnosticSeverity::WARNING => "warning",
-                        _ => continue,
-                    };
+                    for (_, group) in snapshot.diagnostic_groups(None) {
+                        let entry = &group.entries[group.primary_ix];
+                        let range = entry.range.to_point(&snapshot);
+                        let severity = match entry.diagnostic.severity {
+                            DiagnosticSeverity::ERROR => "error",
+                            DiagnosticSeverity::WARNING => "warning",
+                            _ => continue,
+                        };

-                    writeln!(
-                        output,
-                        "{} at line {}: {}",
-                        severity,
-                        range.start.row + 1,
-                        entry.diagnostic.message
-                    )?;
-                }
+                        writeln!(
+                            output,
+                            "{} at line {}: {}",
+                            severity,
+                            range.start.row + 1,
+                            entry.diagnostic.message
+                        )?;
+                    }

-                if output.is_empty() {
-                    Ok("File doesn't have errors or warnings!".to_string())
-                } else {
-                    Ok(output)
-                }
-            })
-        } else {
-            let project = project.read(cx);
-            let mut output = String::new();
-            let mut has_diagnostics = false;
-
-            for (project_path, _, summary) in project.diagnostic_summaries(true, cx) {
-                if summary.error_count > 0 || summary.warning_count > 0 {
-                    let Some(worktree) = project.worktree_for_id(project_path.worktree_id, cx)
-                    else {
-                        continue;
-                    };
-
-                    has_diagnostics = true;
-                    output.push_str(&format!(
-                        "{}: {} error(s), {} warning(s)\n",
-                        Path::new(worktree.read(cx).root_name())
-                            .join(project_path.path)
-                            .display(),
-                        summary.error_count,
-                        summary.warning_count
-                    ));
-                }
+                    if output.is_empty() {
+                        Ok("File doesn't have errors or warnings!".to_string())
+                    } else {
+                        Ok(output)
+                    }
+                })
            }
+            _ => {
+                let project = project.read(cx);
+                let mut output = String::new();
+                let mut has_diagnostics = false;

-            if has_diagnostics {
-                Task::ready(Ok(output))
-            } else {
-                Task::ready(Ok("No errors or warnings found in the project.".to_string()))
+                for (project_path, _, summary) in project.diagnostic_summaries(true, cx) {
+                    if summary.error_count > 0 || summary.warning_count > 0 {
+                        let Some(worktree) = project.worktree_for_id(project_path.worktree_id, cx)
+                        else {
+                            continue;
+                        };
+
+                        has_diagnostics = true;
+                        output.push_str(&format!(
+                            "{}: {} error(s), {} warning(s)\n",
+                            Path::new(worktree.read(cx).root_name())
+                                .join(project_path.path)
+                                .display(),
+                            summary.error_count,
+                            summary.warning_count
+                        ));
+                    }
+                }
+
+                action_log.update(cx, |action_log, _cx| {
+                    action_log.checked_project_diagnostics();
+                });
+
+                if has_diagnostics {
+                    Task::ready(Ok(output))
+                } else {
+                    Task::ready(Ok("No errors or warnings found in the project.".to_string()))
+                }
            }
        }
    }
--- a/crates/assistant_tools/src/diagnostics_tool/description.md
+++ b/crates/assistant_tools/src/diagnostics_tool/description.md
@@ -14,3 +14,5 @@ To get diagnostics for a specific file:
 To get a project-wide diagnostic summary:
 {}
 </example>
+
+IMPORTANT: When you're done making changes, you **MUST** get the **project** diagnostics (input: `{}`) at the end of your edits so you can fix any problems you might have introduced. **DO NOT** tell the user you're done before doing this!
--- a/crates/assistant_tools/src/edit_files_tool.rs
+++ b/crates/assistant_tools/src/edit_files_tool.rs
@@ -1,33 +1,30 @@
 mod edit_action;
 pub mod log;
-mod replace;

+use crate::replace::{replace_exact, replace_with_flexible_indent};
 use anyhow::{anyhow, Context, Result};
 use assistant_tool::{ActionLog, Tool};
 use collections::HashSet;
 use edit_action::{EditAction, EditActionParser};
-use futures::StreamExt;
-use gpui::{App, AsyncApp, Entity, Task};
+use futures::{channel::mpsc, SinkExt, StreamExt};
+use gpui::{App, AppContext, AsyncApp, Entity, Task};
 use language_model::{
    LanguageModelRegistry, LanguageModelRequest, LanguageModelRequestMessage, MessageContent, Role,
 };
 use log::{EditToolLog, EditToolRequestId};
 use project::Project;
-use replace::{replace_exact, replace_with_flexible_indent};
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use std::fmt::Write;
 use std::sync::Arc;
+use ui::IconName;
 use util::ResultExt;

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct EditFilesToolInput {
    /// High-level edit instructions. These will be interpreted by a smaller
    /// model, so explain the changes you want that model to make and which
-    /// file paths need changing.
-    ///
-    /// The description should be concise and clear. We will show this
-    /// description to the user as well.
+    /// file paths need changing. The description should be concise and clear.
    ///
    /// WARNING: When specifying which file paths need changing, you MUST
    /// start each path with one of the project's root directories.
@@ -58,6 +55,21 @@ pub struct EditFilesToolInput {
    /// Notice how we never specify code snippets in the instructions!
    /// </example>
    pub edit_instructions: String,
+
+    /// A user-friendly description of what changes are being made.
+    /// This will be shown to the user in the UI to describe the edit operation. The screen real estate for this UI will be extremely
+    /// constrained, so make the description extremely terse.
+    ///
+    /// <example>
+    /// For fixing a broken authentication system:
+    /// "Fix auth bug in login flow"
+    /// </example>
+    ///
+    /// <example>
+    /// For adding unit tests to a module:
+    /// "Add tests for user profile logic"
+    /// </example>
+    pub display_description: String,
 }

 pub struct EditFilesTool;
@@ -67,15 +79,30 @@ impl Tool for EditFilesTool {
        "edit-files".into()
    }

+    fn needs_confirmation(&self) -> bool {
+        true
+    }
+
    fn description(&self) -> String {
        include_str!("./edit_files_tool/description.md").into()
    }

+    fn icon(&self) -> IconName {
+        IconName::Pencil
+    }
+
    fn input_schema(&self) -> serde_json::Value {
        let schema = schemars::schema_for!(EditFilesToolInput);
        serde_json::to_value(&schema).unwrap()
    }

+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<EditFilesToolInput>(input.clone()) {
+            Ok(input) => input.display_description,
+            Err(_) => "Edit files".to_string(),
+        }
+    }
+
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
@@ -126,24 +153,45 @@ impl Tool for EditFilesTool {

 struct EditToolRequest {
    parser: EditActionParser,
-    output: String,
-    changed_buffers: HashSet<Entity<language::Buffer>>,
-    bad_searches: Vec<BadSearch>,
+    editor_response: EditorResponse,
    project: Entity<Project>,
    action_log: Entity<ActionLog>,
    tool_log: Option<(Entity<EditToolLog>, EditToolRequestId)>,
 }

-#[derive(Debug)]
-enum DiffResult {
-    BadSearch(BadSearch),
-    Diff(language::Diff),
+enum EditorResponse {
+    /// The editor model hasn't produced any actions yet.
+    /// If we don't have any by the end, we'll return its message to the architect model.
+    Message(String),
+    /// The editor model produced at least one action.
+    Actions {
+        applied: Vec<AppliedAction>,
+        search_errors: Vec<SearchError>,
+    },
+}
+
+struct AppliedAction {
+    source: String,
+    buffer: Entity<language::Buffer>,
 }

 #[derive(Debug)]
-struct BadSearch {
-    file_path: String,
-    search: String,
+enum DiffResult {
+    Diff(language::Diff),
+    SearchError(SearchError),
+}
+
+#[derive(Debug)]
+enum SearchError {
+    NoMatch {
+        file_path: String,
+        search: String,
+    },
+    EmptyBuffer {
+        file_path: String,
+        search: String,
+        exists: bool,
+    },
 }

 impl EditToolRequest {
@@ -195,24 +243,36 @@ impl EditToolRequest {
                temperature: Some(0.0),
            };

+            let (mut tx, mut rx) = mpsc::channel::<String>(32);
            let stream = model.stream_completion_text(llm_request, &cx);
-            let mut chunks = stream.await?;
+            let reader_task = cx.background_spawn(async move {
+                let mut chunks = stream.await?;
+
+                while let Some(chunk) = chunks.stream.next().await {
+                    if let Some(chunk) = chunk.log_err() {
+                        // we don't process here because the API fails
+                        // if we take too long between reads
+                        tx.send(chunk).await?
+                    }
+                }
+                tx.close().await?;
+                anyhow::Ok(())
+            });

            let mut request = Self {
                parser: EditActionParser::new(),
-                // we start with the success header so we don't need to shift the output in the common case
-                output: Self::SUCCESS_OUTPUT_HEADER.to_string(),
-                changed_buffers: HashSet::default(),
-                bad_searches: Vec::new(),
+                editor_response: EditorResponse::Message(String::with_capacity(256)),
                action_log,
                project,
                tool_log,
            };

-            while let Some(chunk) = chunks.stream.next().await {
-                request.process_response_chunk(&chunk?, cx).await?;
+            while let Some(chunk) = rx.next().await {
+                request.process_response_chunk(&chunk, cx).await?;
            }

+            reader_task.await?;
+
            request.finalize(cx).await
        })
    }
@@ -220,6 +280,12 @@ impl EditToolRequest {
    async fn process_response_chunk(&mut self, chunk: &str, cx: &mut AsyncApp) -> Result<()> {
        let new_actions = self.parser.parse_chunk(chunk);

+        if let EditorResponse::Message(ref mut message) = self.editor_response {
+            if new_actions.is_empty() {
+                message.push_str(chunk);
+            }
+        }
+
        if let Some((ref log, req_id)) = self.tool_log {
            log.update(cx, |log, cx| {
                log.push_editor_response_chunk(req_id, chunk, &new_actions, cx)
@@ -270,18 +336,45 @@ impl EditToolRequest {
        }?;

        match result {
-            DiffResult::BadSearch(invalid_replace) => {
-                self.bad_searches.push(invalid_replace);
+            DiffResult::SearchError(error) => {
+                self.push_search_error(error);
            }
            DiffResult::Diff(diff) => {
                let _clock = buffer.update(cx, |buffer, cx| buffer.apply_diff(diff, cx))?;

-                write!(&mut self.output, "\n\n{}", source)?;
-                self.changed_buffers.insert(buffer);
+                self.push_applied_action(AppliedAction { source, buffer });
            }
        }

-        Ok(())
+        anyhow::Ok(())
+    }
+
+    fn push_search_error(&mut self, error: SearchError) {
+        match &mut self.editor_response {
+            EditorResponse::Message(_) => {
+                self.editor_response = EditorResponse::Actions {
+                    applied: Vec::new(),
+                    search_errors: vec![error],
+                };
+            }
+            EditorResponse::Actions { search_errors, .. } => {
+                search_errors.push(error);
+            }
+        }
+    }
+
+    fn push_applied_action(&mut self, action: AppliedAction) {
+        match &mut self.editor_response {
+            EditorResponse::Message(_) => {
+                self.editor_response = EditorResponse::Actions {
+                    applied: vec![action],
+                    search_errors: Vec::new(),
+                };
+            }
+            EditorResponse::Actions { applied, .. } => {
+                applied.push(action);
+            }
+        }
    }

    async fn replace_diff(
@@ -290,119 +383,171 @@ impl EditToolRequest {
        file_path: std::path::PathBuf,
        snapshot: language::BufferSnapshot,
    ) -> Result<DiffResult> {
-        let result =
+        if snapshot.is_empty() {
+            let exists = snapshot
+                .file()
+                .map_or(false, |file| file.disk_state().exists());
+
+            let error = SearchError::EmptyBuffer {
+                file_path: file_path.display().to_string(),
+                exists,
+                search: old,
+            };
+
+            return Ok(DiffResult::SearchError(error));
+        }
+
+        let replace_result =
            // Try to match exactly
            replace_exact(&old, &new, &snapshot)
            .await
            // If that fails, try being flexible about indentation
            .or_else(|| replace_with_flexible_indent(&old, &new, &snapshot));

-        let Some(diff) = result else {
-            return anyhow::Ok(DiffResult::BadSearch(BadSearch {
+        let Some(diff) = replace_result else {
+            let error = SearchError::NoMatch {
                search: old,
                file_path: file_path.display().to_string(),
-            }));
+            };
+
+            return Ok(DiffResult::SearchError(error));
        };

-        anyhow::Ok(DiffResult::Diff(diff))
+        Ok(DiffResult::Diff(diff))
    }

-    const SUCCESS_OUTPUT_HEADER: &str = "Successfully applied. Here's a list of changes:";
-    const ERROR_OUTPUT_HEADER_NO_EDITS: &str = "I couldn't apply any edits!";
-    const ERROR_OUTPUT_HEADER_WITH_EDITS: &str =
-        "Errors occurred. First, here's a list of the edits we managed to apply:";
-
    async fn finalize(self, cx: &mut AsyncApp) -> Result<String> {
-        let changed_buffer_count = self.changed_buffers.len();
+        match self.editor_response {
+            EditorResponse::Message(message) => Err(anyhow!(
+                "No edits were applied! You might need to provide more context.\n\n{}",
+                message
+            )),
+            EditorResponse::Actions {
+                applied,
+                search_errors,
+            } => {
+                let mut output = String::with_capacity(1024);

-        // Save each buffer once at the end
-        for buffer in &self.changed_buffers {
-            self.project
-                .update(cx, |project, cx| project.save_buffer(buffer.clone(), cx))?
-                .await?;
-        }
+                let parse_errors = self.parser.errors();
+                let has_errors = !search_errors.is_empty() || !parse_errors.is_empty();

-        self.action_log
-            .update(cx, |log, cx| log.buffer_edited(self.changed_buffers, cx))
-            .log_err();
+                if has_errors {
+                    let error_count = search_errors.len() + parse_errors.len();

-        let errors = self.parser.errors();
+                    if applied.is_empty() {
+                        writeln!(
+                            &mut output,
+                            "{} errors occurred! No edits were applied.",
+                            error_count,
+                        )?;
+                    } else {
+                        writeln!(
+                            &mut output,
+                            "{} errors occurred, but {} edits were correctly applied.",
+                            error_count,
+                            applied.len(),
+                        )?;

-        if errors.is_empty() && self.bad_searches.is_empty() {
-            if changed_buffer_count == 0 {
-                return Err(anyhow!(
-                    "The instructions didn't lead to any changes. You might need to consult the file contents first."
-                ));
-            }
-
-            Ok(self.output)
-        } else {
-            let mut output = self.output;
-
-            if output.is_empty() {
-                output.replace_range(
-                    0..Self::SUCCESS_OUTPUT_HEADER.len(),
-                    Self::ERROR_OUTPUT_HEADER_NO_EDITS,
-                );
-            } else {
-                output.replace_range(
-                    0..Self::SUCCESS_OUTPUT_HEADER.len(),
-                    Self::ERROR_OUTPUT_HEADER_WITH_EDITS,
-                );
-            }
-
-            if !self.bad_searches.is_empty() {
-                writeln!(
-                    &mut output,
-                    "\n\n# {} SEARCH/REPLACE block(s) failed to match:\n",
-                    self.bad_searches.len()
-                )?;
-
-                for replace in self.bad_searches {
-                    writeln!(
+                        writeln!(
+                            &mut output,
+                            "# {} SEARCH/REPLACE block(s) applied:\n\nDo not re-send these since they are already applied!\n",
+                            applied.len()
+                        )?;
+                    }
+                } else {
+                    write!(
                        &mut output,
-                        "## No exact match in: {}\n```\n{}\n```\n",
-                        replace.file_path, replace.search,
+                        "Successfully applied! Here's a list of applied edits:"
                    )?;
                }

-                write!(&mut output,
-                    "The SEARCH section must exactly match an existing block of lines including all white \
-                    space, comments, indentation, docstrings, etc."
-                )?;
-            }
+                let mut changed_buffers = HashSet::default();

-            if !errors.is_empty() {
-                writeln!(
-                    &mut output,
-                    "\n\n# {} SEARCH/REPLACE blocks failed to parse:",
-                    errors.len()
-                )?;
-
-                for error in errors {
-                    writeln!(&mut output, "- {}", error)?;
+                for action in applied {
+                    changed_buffers.insert(action.buffer);
+                    write!(&mut output, "\n\n{}", action.source)?;
                }
-            }

-            if changed_buffer_count > 0 {
-                writeln!(
-                    &mut output,
-                    "\n\nThe other SEARCH/REPLACE blocks were applied successfully. Do not re-send them!",
-                )?;
-            }
+                for buffer in &changed_buffers {
+                    self.project
+                        .update(cx, |project, cx| project.save_buffer(buffer.clone(), cx))?
+                        .await?;
+                }

-            writeln!(
-                &mut output,
-                "{}You can fix errors by running the tool again. You can include instructions, \
-                but errors are part of the conversation so you don't need to repeat them.",
-                if changed_buffer_count == 0 {
-                    "\n\n"
+                self.action_log
+                    .update(cx, |log, cx| log.buffer_edited(changed_buffers.clone(), cx))
+                    .log_err();
+
+                if !search_errors.is_empty() {
+                    writeln!(
+                        &mut output,
+                        "\n\n## {} SEARCH/REPLACE block(s) failed to match:\n",
+                        search_errors.len()
+                    )?;
+
+                    for error in search_errors {
+                        match error {
+                            SearchError::NoMatch { file_path, search } => {
+                                writeln!(
+                                    &mut output,
+                                    "### No exact match in: `{}`\n```\n{}\n```\n",
+                                    file_path, search,
+                                )?;
+                            }
+                            SearchError::EmptyBuffer {
+                                file_path,
+                                exists: true,
+                                search,
+                            } => {
+                                writeln!(
+                                    &mut output,
+                                    "### No match because `{}` is empty:\n```\n{}\n```\n",
+                                    file_path, search,
+                                )?;
+                            }
+                            SearchError::EmptyBuffer {
+                                file_path,
+                                exists: false,
+                                search,
+                            } => {
+                                writeln!(
+                                    &mut output,
+                                    "### No match because `{}` does not exist:\n```\n{}\n```\n",
+                                    file_path, search,
+                                )?;
+                            }
+                        }
+                    }
+
+                    write!(&mut output,
+                        "The SEARCH section must exactly match an existing block of lines including all white \
+                        space, comments, indentation, docstrings, etc."
+                    )?;
+                }
+
+                if !parse_errors.is_empty() {
+                    writeln!(
+                        &mut output,
+                        "\n\n## {} SEARCH/REPLACE blocks failed to parse:",
+                        parse_errors.len()
+                    )?;
+
+                    for error in parse_errors {
+                        writeln!(&mut output, "- {}", error)?;
+                    }
+                }
+
+                if has_errors {
+                    writeln!(&mut output,
+                        "\n\nYou can fix errors by running the tool again. You can include instructions, \
+                        but errors are part of the conversation so you don't need to repeat them.",
+                    )?;
+
+                    Err(anyhow!(output))
                } else {
-                    ""
+                    Ok(output)
                }
-            )?;
-
-            Err(anyhow!(output))
+            }
        }
    }
 }
--- a/crates/assistant_tools/src/edit_files_tool/description.md
+++ b/crates/assistant_tools/src/edit_files_tool/description.md
@@ -1,5 +1,11 @@
 Edit files in the current project by specifying instructions in natural language.

+IMPORTANT NOTE: If there is a find-replace tool, use that instead of this tool! This tool is only to be used as a fallback in case that tool is unavailable. Always prefer that tool if it is available.
+
 When using this tool, you should suggest one coherent edit that can be made to the codebase.

 When the set of edits you want to make is large or complex, feel free to invoke this tool multiple times, each time focusing on a specific change you wanna make.
+
+You should use this tool when you want to edit a subset of a file's contents, but not the entire file. You should not use this tool when you want to replace the entire contents of a file with completely different contents, and you absolutely must never use this tool to create new files from scratch. If you ever consider using this tool to create a new file from scratch, for any reason, instead you must reconsider and choose a different approach.
+
+DO NOT call this tool until the code to be edited appears in the conversation! You must use the `read-files` tool or ask the user to add it to context first.
--- a/crates/assistant_tools/src/edit_files_tool/edit_prompt.md
+++ b/crates/assistant_tools/src/edit_files_tool/edit_prompt.md
@@ -120,7 +120,7 @@ Break large *SEARCH/REPLACE* blocks into a series of smaller blocks that each ch
 Include just the changing lines, and a few surrounding lines if needed for uniqueness.
 Do not include long runs of unchanging lines in *SEARCH/REPLACE* blocks.

-Only create *SEARCH/REPLACE* blocks for files that the user has added to the chat!
+Only create *SEARCH/REPLACE* blocks for files that have been read! Even though the conversation includes `read-file` tool results, you *CANNOT* issue your own reads. If the conversation doesn't include the code you need to edit, ask for it to be read explicitly.

 To move code within a file, use 2 *SEARCH/REPLACE* blocks: 1 to delete it from its current location, 1 to insert it in the new location.

--- a/crates/assistant_tools/src/fetch_tool.rs
+++ b/crates/assistant_tools/src/fetch_tool.rs
@@ -12,6 +12,8 @@ use language_model::LanguageModelRequestMessage;
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
+use ui::IconName;
+use util::markdown::MarkdownString;

 #[derive(Debug, PartialEq, Eq, PartialOrd, Ord, Hash, Clone, Copy)]
 enum ContentType {
@@ -113,15 +115,30 @@ impl Tool for FetchTool {
        "fetch".to_string()
    }

+    fn needs_confirmation(&self) -> bool {
+        true
+    }
+
    fn description(&self) -> String {
        include_str!("./fetch_tool/description.md").to_string()
    }

+    fn icon(&self) -> IconName {
+        IconName::Globe
+    }
+
    fn input_schema(&self) -> serde_json::Value {
        let schema = schemars::schema_for!(FetchToolInput);
        serde_json::to_value(&schema).unwrap()
    }

+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<FetchToolInput>(input.clone()) {
+            Ok(input) => format!("Fetch {}", MarkdownString::escape(&input.url)),
+            Err(_) => "Fetch URL".to_string(),
+        }
+    }
+
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
--- a/crates/assistant_tools/src/find_replace_file_tool.rs
+++ b/crates/assistant_tools/src/find_replace_file_tool.rs
@@ -0,0 +1,229 @@
+use anyhow::{anyhow, Context as _, Result};
+use assistant_tool::{ActionLog, Tool};
+use gpui::{App, AppContext, Entity, Task};
+use language_model::LanguageModelRequestMessage;
+use project::Project;
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
+use std::{collections::HashSet, path::PathBuf, sync::Arc};
+use ui::IconName;
+
+use crate::replace::replace_exact;
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+pub struct FindReplaceFileToolInput {
+    /// The path of the file to modify.
+    ///
+    /// WARNING: When specifying which file path need changing, you MUST
+    /// start each path with one of the project's root directories.
+    ///
+    /// The following examples assume we have two root directories in the project:
+    /// - backend
+    /// - frontend
+    ///
+    /// <example>
+    /// `backend/src/main.rs`
+    ///
+    /// Notice how the file path starts with root-1. Without that, the path
+    /// would be ambiguous and the call would fail!
+    /// </example>
+    ///
+    /// <example>
+    /// `frontend/db.js`
+    /// </example>
+    pub path: PathBuf,
+
+    /// A user-friendly markdown description of what's being replaced. This will be shown in the UI.
+    ///
+    /// <example>Fix API endpoint URLs</example>
+    /// <example>Update copyright year in `page_footer`</example>
+    pub display_description: String,
+
+    /// The unique string to find in the file. This string cannot be empty;
+    /// if the string is empty, the tool call will fail. Remember, do not use this tool
+    /// to create new files from scratch, or to overwrite existing files! Use a different
+    /// approach if you want to do that.
+    ///
+    /// If this string appears more than once in the file, this tool call will fail,
+    /// so it is absolutely critical that you verify ahead of time that the string
+    /// is unique. You can search within the file to verify this.
+    ///
+    /// To make the string more likely to be unique, include a minimum of 3 lines of context
+    /// before the string you actually want to find, as well as a minimum of 3 lines of
+    /// context after the string you want to find. (These lines of context should appear
+    /// in the `replace` string as well.) If 3 lines of context is not enough to obtain
+    /// a string that appears only once in the file, then double the number of context lines
+    /// until the string becomes unique. (Start with 3 lines before and 3 lines after
+    /// though, because too much context is needlessly costly.)
+    ///
+    /// Do not alter the context lines of code in any way, and make sure to preserve all
+    /// whitespace and indentation for all lines of code. This string must be exactly as
+    /// it appears in the file, because this tool will do a literal find/replace, and if
+    /// even one character in this string is different in any way from how it appears
+    /// in the file, then the tool call will fail.
+    ///
+    /// <example>
+    /// If a file contains this code:
+    ///
+    /// ```rust
+    /// fn check_user_permissions(user_id: &str) -> Result<bool> {
+    ///     // Check if user exists first
+    ///     let user = database.find_user(user_id)?;
+    ///
+    ///     // This is the part we want to modify
+    ///     if user.role == "admin" {
+    ///         return Ok(true);
+    ///     }
+    ///
+    ///     // Check other permissions
+    ///     check_custom_permissions(user_id)
+    /// }
+    /// ```
+    ///
+    /// Your find string should include at least 3 lines of context before and after the part
+    /// you want to change:
+    ///
+    /// ```
+    /// fn check_user_permissions(user_id: &str) -> Result<bool> {
+    ///     // Check if user exists first
+    ///     let user = database.find_user(user_id)?;
+    ///
+    ///     // This is the part we want to modify
+    ///     if user.role == "admin" {
+    ///         return Ok(true);
+    ///     }
+    ///
+    ///     // Check other permissions
+    ///     check_custom_permissions(user_id)
+    /// }
+    /// ```
+    ///
+    /// And your replace string might look like:
+    ///
+    /// ```
+    /// fn check_user_permissions(user_id: &str) -> Result<bool> {
+    ///     // Check if user exists first
+    ///     let user = database.find_user(user_id)?;
+    ///
+    ///     // This is the part we want to modify
+    ///     if user.role == "admin" || user.role == "superuser" {
+    ///         return Ok(true);
+    ///     }
+    ///
+    ///     // Check other permissions
+    ///     check_custom_permissions(user_id)
+    /// }
+    /// ```
+    /// </example>
+    pub find: String,
+
+    /// The string to replace the one unique occurrence of the find string with.
+    pub replace: String,
+}
+
+pub struct FindReplaceFileTool;
+
+impl Tool for FindReplaceFileTool {
+    fn name(&self) -> String {
+        "find-replace-file".into()
+    }
+
+    fn needs_confirmation(&self) -> bool {
+        true
+    }
+
+    fn description(&self) -> String {
+        include_str!("find_replace_tool/description.md").to_string()
+    }
+
+    fn icon(&self) -> IconName {
+        IconName::Pencil
+    }
+
+    fn input_schema(&self) -> serde_json::Value {
+        let schema = schemars::schema_for!(FindReplaceFileToolInput);
+        serde_json::to_value(&schema).unwrap()
+    }
+
+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<FindReplaceFileToolInput>(input.clone()) {
+            Ok(input) => input.display_description,
+            Err(_) => "Edit file".to_string(),
+        }
+    }
+
+    fn run(
+        self: Arc<Self>,
+        input: serde_json::Value,
+        _messages: &[LanguageModelRequestMessage],
+        project: Entity<Project>,
+        action_log: Entity<ActionLog>,
+        cx: &mut App,
+    ) -> Task<Result<String>> {
+        let input = match serde_json::from_value::<FindReplaceFileToolInput>(input) {
+            Ok(input) => input,
+            Err(err) => return Task::ready(Err(anyhow!(err))),
+        };
+
+        cx.spawn(async move |cx| {
+            let project_path = project.read_with(cx, |project, cx| {
+                project
+                    .find_project_path(&input.path, cx)
+                    .context("Path not found in project")
+            })??;
+
+            let buffer = project
+                .update(cx, |project, cx| project.open_buffer(project_path, cx))?
+                .await?;
+
+            let snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot())?;
+
+            if input.find.is_empty() {
+                return Err(anyhow!("`find` string cannot be empty. Use a different tool if you want to create a file."));
+            }
+
+            let result = cx
+                .background_spawn(async move {
+                    replace_exact(&input.find, &input.replace, &snapshot).await
+                })
+                .await;
+
+            if let Some(diff) = result {
+                buffer.update(cx, |buffer, cx| {
+                    let _ = buffer.apply_diff(diff, cx);
+                })?;
+
+                project.update(cx, |project, cx| {
+                    project.save_buffer(buffer.clone(), cx)
+                })?.await?;
+
+                action_log.update(cx, |log, cx| {
+                    let mut buffers = HashSet::default();
+                    buffers.insert(buffer);
+                    log.buffer_edited(buffers, cx);
+                })?;
+
+                Ok(format!("Edited {}", input.path.display()))
+            } else {
+                let err = buffer.read_with(cx, |buffer, _cx| {
+                    let file_exists = buffer
+                        .file()
+                        .map_or(false, |file| file.disk_state().exists());
+
+                    if !file_exists {
+                        anyhow!("{} does not exist", input.path.display())
+                    } else if buffer.is_empty() {
+                        anyhow!(
+                            "{} is empty, so the provided `find` string wasn't found.",
+                            input.path.display()
+                        )
+                    } else {
+                        anyhow!("Failed to match the provided `find` string")
+                    }
+                })?;
+
+                Err(err)
+            }
+        })
+    }
+}
--- a/crates/assistant_tools/src/find_replace_tool/description.md
+++ b/crates/assistant_tools/src/find_replace_tool/description.md
@@ -0,0 +1,7 @@
+Find one unique part of a file in the project and replace that text with new text.
+
+This tool is the preferred way to make edits to files. If you have multiple edits to make, including edits across multiple files, then make a plan to respond with a single message containing multiple calls to this tool - one call for each find/replace operation.
+
+You should use this tool when you want to edit a subset of a file's contents, but not the entire file. You should not use this tool when you want to replace the entire contents of a file with completely different contents. You also should not use this tool when you want to move or rename a file. You absolutely must NEVER use this tool to create new files from scratch. If you ever consider using this tool to create a new file from scratch, for any reason, instead you must reconsider and choose a different approach.
+
+DO NOT call this tool until the code to be edited appears in the conversation! You must use another tool to read the file's contents into the conversation, or ask the user to add it to context first.
--- a/crates/assistant_tools/src/list_directory_tool.rs
+++ b/crates/assistant_tools/src/list_directory_tool.rs
@@ -6,6 +6,8 @@ use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use std::{fmt::Write, path::Path, sync::Arc};
+use ui::IconName;
+use util::markdown::MarkdownString;

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct ListDirectoryToolInput {
@@ -31,7 +33,7 @@ pub struct ListDirectoryToolInput {
    ///
    /// If you wanna list contents in the directory `foo/baz`, you should use the path `foo/baz`.
    /// </example>
-    pub path: Arc<Path>,
+    pub path: String,
 }

 pub struct ListDirectoryTool;
@@ -41,15 +43,33 @@ impl Tool for ListDirectoryTool {
        "list-directory".into()
    }

+    fn needs_confirmation(&self) -> bool {
+        false
+    }
+
    fn description(&self) -> String {
        include_str!("./list_directory_tool/description.md").into()
    }

+    fn icon(&self) -> IconName {
+        IconName::Folder
+    }
+
    fn input_schema(&self) -> serde_json::Value {
        let schema = schemars::schema_for!(ListDirectoryToolInput);
        serde_json::to_value(&schema).unwrap()
    }

+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<ListDirectoryToolInput>(input.clone()) {
+            Ok(input) => {
+                let path = MarkdownString::inline_code(&input.path);
+                format!("List the {path} directory's contents")
+            }
+            Err(_) => "List directory".to_string(),
+        }
+    }
+
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
@@ -63,8 +83,29 @@ impl Tool for ListDirectoryTool {
            Err(err) => return Task::ready(Err(anyhow!(err))),
        };

+        // Sometimes models will return these even though we tell it to give a path and not a glob.
+        // When this happens, just list the root worktree directories.
+        if matches!(input.path.as_str(), "." | "" | "./" | "*") {
+            let output = project
+                .read(cx)
+                .worktrees(cx)
+                .filter_map(|worktree| {
+                    worktree.read(cx).root_entry().and_then(|entry| {
+                        if entry.is_dir() {
+                            entry.path.to_str()
+                        } else {
+                            None
+                        }
+                    })
+                })
+                .collect::<Vec<_>>()
+                .join("\n");
+
+            return Task::ready(Ok(output));
+        }
+
        let Some(project_path) = project.read(cx).find_project_path(&input.path, cx) else {
-            return Task::ready(Err(anyhow!("Path not found in project")));
+            return Task::ready(Err(anyhow!("Path {} not found in project", input.path)));
        };
        let Some(worktree) = project
            .read(cx)
@@ -75,11 +116,11 @@ impl Tool for ListDirectoryTool {
        let worktree = worktree.read(cx);

        let Some(entry) = worktree.entry_for_path(&project_path.path) else {
-            return Task::ready(Err(anyhow!("Path not found: {}", input.path.display())));
+            return Task::ready(Err(anyhow!("Path not found: {}", input.path)));
        };

        if !entry.is_dir() {
-            return Task::ready(Err(anyhow!("{} is a file.", input.path.display())));
+            return Task::ready(Err(anyhow!("{} is not a directory.", input.path)));
        }

        let mut output = String::new();
@@ -92,7 +133,7 @@ impl Tool for ListDirectoryTool {
            .unwrap();
        }
        if output.is_empty() {
-            return Task::ready(Ok(format!("{} is empty.", input.path.display())));
+            return Task::ready(Ok(format!("{} is empty.", input.path)));
        }
        Task::ready(Ok(output))
    }
--- a/crates/assistant_tools/src/move_path_tool.rs
+++ b/crates/assistant_tools/src/move_path_tool.rs
@@ -0,0 +1,132 @@
+use anyhow::{anyhow, Result};
+use assistant_tool::{ActionLog, Tool};
+use gpui::{App, AppContext, Entity, Task};
+use language_model::LanguageModelRequestMessage;
+use project::Project;
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
+use std::{path::Path, sync::Arc};
+use ui::IconName;
+use util::markdown::MarkdownString;
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+pub struct MovePathToolInput {
+    /// The source path of the file or directory to move/rename.
+    ///
+    /// <example>
+    /// If the project has the following files:
+    ///
+    /// - directory1/a/something.txt
+    /// - directory2/a/things.txt
+    /// - directory3/a/other.txt
+    ///
+    /// You can move the first file by providing a source_path of "directory1/a/something.txt"
+    /// </example>
+    pub source_path: String,
+
+    /// The destination path where the file or directory should be moved/renamed to.
+    /// If the paths are the same except for the filename, then this will be a rename.
+    ///
+    /// <example>
+    /// To move "directory1/a/something.txt" to "directory2/b/renamed.txt",
+    /// provide a destination_path of "directory2/b/renamed.txt"
+    /// </example>
+    pub destination_path: String,
+}
+
+pub struct MovePathTool;
+
+impl Tool for MovePathTool {
+    fn name(&self) -> String {
+        "move-path".into()
+    }
+
+    fn needs_confirmation(&self) -> bool {
+        true
+    }
+
+    fn description(&self) -> String {
+        include_str!("./move_path_tool/description.md").into()
+    }
+
+    fn icon(&self) -> IconName {
+        IconName::ArrowRightLeft
+    }
+
+    fn input_schema(&self) -> serde_json::Value {
+        let schema = schemars::schema_for!(MovePathToolInput);
+        serde_json::to_value(&schema).unwrap()
+    }
+
+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<MovePathToolInput>(input.clone()) {
+            Ok(input) => {
+                let src = MarkdownString::inline_code(&input.source_path);
+                let dest = MarkdownString::inline_code(&input.destination_path);
+                let src_path = Path::new(&input.source_path);
+                let dest_path = Path::new(&input.destination_path);
+
+                match dest_path
+                    .file_name()
+                    .and_then(|os_str| os_str.to_os_string().into_string().ok())
+                {
+                    Some(filename) if src_path.parent() == dest_path.parent() => {
+                        let filename = MarkdownString::inline_code(&filename);
+                        format!("Rename {src} to {filename}")
+                    }
+                    _ => {
+                        format!("Move {src} to {dest}")
+                    }
+                }
+            }
+            Err(_) => "Move path".to_string(),
+        }
+    }
+
+    fn run(
+        self: Arc<Self>,
+        input: serde_json::Value,
+        _messages: &[LanguageModelRequestMessage],
+        project: Entity<Project>,
+        _action_log: Entity<ActionLog>,
+        cx: &mut App,
+    ) -> Task<Result<String>> {
+        let input = match serde_json::from_value::<MovePathToolInput>(input) {
+            Ok(input) => input,
+            Err(err) => return Task::ready(Err(anyhow!(err))),
+        };
+        let rename_task = project.update(cx, |project, cx| {
+            match project
+                .find_project_path(&input.source_path, cx)
+                .and_then(|project_path| project.entry_for_path(&project_path, cx))
+            {
+                Some(entity) => match project.find_project_path(&input.destination_path, cx) {
+                    Some(project_path) => project.rename_entry(entity.id, project_path.path, cx),
+                    None => Task::ready(Err(anyhow!(
+                        "Destination path {} was outside the project.",
+                        input.destination_path
+                    ))),
+                },
+                None => Task::ready(Err(anyhow!(
+                    "Source path {} was not found in the project.",
+                    input.source_path
+                ))),
+            }
+        });
+
+        cx.background_spawn(async move {
+            match rename_task.await {
+                Ok(_) => Ok(format!(
+                    "Moved {} to {}",
+                    input.source_path, input.destination_path
+                )),
+                Err(err) => Err(anyhow!(
+                    "Failed to move {} to {}: {}",
+                    input.source_path,
+                    input.destination_path,
+                    err
+                )),
+            }
+        })
+    }
+}
--- a/crates/assistant_tools/src/move_path_tool/description.md
+++ b/crates/assistant_tools/src/move_path_tool/description.md
@@ -0,0 +1,5 @@
+Moves or rename a file or directory in the project, and returns confirmation that the move succeeded.
+If the source and destination directories are the same, but the filename is different, this performs
+a rename. Otherwise, it performs a move.
+
+This tool should be used when it's desirable to move or rename a file or directory without changing its contents at all.
--- a/crates/assistant_tools/src/now_tool.rs
+++ b/crates/assistant_tools/src/now_tool.rs
@@ -8,6 +8,7 @@ use language_model::LanguageModelRequestMessage;
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
+use ui::IconName;

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 #[serde(rename_all = "snake_case")]
@@ -31,15 +32,27 @@ impl Tool for NowTool {
        "now".into()
    }

+    fn needs_confirmation(&self) -> bool {
+        false
+    }
+
    fn description(&self) -> String {
        "Returns the current datetime in RFC 3339 format. Only use this tool when the user specifically asks for it or the current task would benefit from knowing the current datetime.".into()
    }

+    fn icon(&self) -> IconName {
+        IconName::Info
+    }
+
    fn input_schema(&self) -> serde_json::Value {
        let schema = schemars::schema_for!(NowToolInput);
        serde_json::to_value(&schema).unwrap()
    }

+    fn ui_text(&self, _input: &serde_json::Value) -> String {
+        "Get current time".to_string()
+    }
+
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
--- a/crates/assistant_tools/src/open_tool.rs
+++ b/crates/assistant_tools/src/open_tool.rs
@@ -0,0 +1,68 @@
+use anyhow::{anyhow, Context as _, Result};
+use assistant_tool::{ActionLog, Tool};
+use gpui::{App, AppContext, Entity, Task};
+use language_model::LanguageModelRequestMessage;
+use project::Project;
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
+use std::sync::Arc;
+use ui::IconName;
+use util::markdown::MarkdownString;
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+pub struct OpenToolInput {
+    /// The path or URL to open with the default application.
+    path_or_url: String,
+}
+
+pub struct OpenTool;
+
+impl Tool for OpenTool {
+    fn name(&self) -> String {
+        "open".to_string()
+    }
+
+    fn needs_confirmation(&self) -> bool {
+        true
+    }
+
+    fn description(&self) -> String {
+        include_str!("./open_tool/description.md").to_string()
+    }
+
+    fn icon(&self) -> IconName {
+        IconName::ExternalLink
+    }
+
+    fn input_schema(&self) -> serde_json::Value {
+        let schema = schemars::schema_for!(OpenToolInput);
+        serde_json::to_value(&schema).unwrap()
+    }
+
+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<OpenToolInput>(input.clone()) {
+            Ok(input) => format!("Open `{}`", MarkdownString::escape(&input.path_or_url)),
+            Err(_) => "Open file or URL".to_string(),
+        }
+    }
+
+    fn run(
+        self: Arc<Self>,
+        input: serde_json::Value,
+        _messages: &[LanguageModelRequestMessage],
+        _project: Entity<Project>,
+        _action_log: Entity<ActionLog>,
+        cx: &mut App,
+    ) -> Task<Result<String>> {
+        let input: OpenToolInput = match serde_json::from_value(input) {
+            Ok(input) => input,
+            Err(err) => return Task::ready(Err(anyhow!(err))),
+        };
+
+        cx.background_spawn(async move {
+            open::that(&input.path_or_url).context("Failed to open URL or file path")?;
+
+            Ok(format!("Successfully opened {}", input.path_or_url))
+        })
+    }
+}
--- a/crates/assistant_tools/src/open_tool/description.md
+++ b/crates/assistant_tools/src/open_tool/description.md
@@ -0,0 +1,6 @@
+This tool opens a file or URL with the default application associated with it on the user's operating system:
+- On macOS, it's equivalent to the `open` command
+- On Windows, it's equivalent to `start`
+- On Linux, it uses something like `xdg-open`, `gio open`, `gnome-open`, `kde-open`, `wslview` as appropriate
+
+For example, it can open a web browser with a URL, open a PDF file with the default PDF viewer, etc.
--- a/crates/assistant_tools/src/path_search_tool.rs
+++ b/crates/assistant_tools/src/path_search_tool.rs
@@ -6,6 +6,7 @@ use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use std::{path::PathBuf, sync::Arc};
+use ui::IconName;
 use util::paths::PathMatcher;
 use worktree::Snapshot;

@@ -39,15 +40,30 @@ impl Tool for PathSearchTool {
        "path-search".into()
    }

+    fn needs_confirmation(&self) -> bool {
+        false
+    }
+
    fn description(&self) -> String {
        include_str!("./path_search_tool/description.md").into()
    }

+    fn icon(&self) -> IconName {
+        IconName::SearchCode
+    }
+
    fn input_schema(&self) -> serde_json::Value {
        let schema = schemars::schema_for!(PathSearchToolInput);
        serde_json::to_value(&schema).unwrap()
    }

+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<PathSearchToolInput>(input.clone()) {
+            Ok(input) => format!("Find paths matching “`{}`”", input.glob),
+            Err(_) => "Search paths".to_string(),
+        }
+    }
+
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
@@ -60,9 +76,13 @@ impl Tool for PathSearchTool {
            Ok(input) => (input.offset.unwrap_or(0), input.glob),
            Err(err) => return Task::ready(Err(anyhow!(err))),
        };
-        let path_matcher = match PathMatcher::new(&[glob.clone()]) {
+
+        let path_matcher = match PathMatcher::new([
+            // Sometimes models try to search for "". In this case, return all paths in the project.
+            if glob.is_empty() { "*" } else { &glob },
+        ]) {
            Ok(matcher) => matcher,
-            Err(err) => return Task::ready(Err(anyhow!("Invalid glob: {}", err))),
+            Err(err) => return Task::ready(Err(anyhow!("Invalid glob: {err}"))),
        };
        let snapshots: Vec<Snapshot> = project
            .read(cx)
--- a/Show More
+++ b/Show More
				`@@ -0,0 +1 @@`
				`<svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-arrow-right-left"><path d="m16 3 4 4-4 4"/><path d="M20 7H4"/><path d="m8 21-4-4 4-4"/><path d="M4 17h16"/></svg>`
				`@@ -0,0 +1 @@`
				<svg xmlns="http://www.w3.org/2000/svg" width="24" height="24" viewBox="0 0 24 24" fill="none" stroke="currentColor" stroke-width="2" stroke-linecap="round" stroke-linejoin="round" class="lucide lucide-brain"><path d="M12 5a3 3 0 1 0-5.997.125 4 4 0 0 0-2.526 5.77 4 4 0 0 0 .556 6.588A4 4 0 1 0 12 18Z"/><path d="M12 5a3 3 0 1 1 5.997.125 4 4 0 0 1 2.526 5.77 4 4 0 0 1-.556 6.588A4 4 0 1 1 12 18Z"/><path d="M15 13a4.5 4.5 0 0 1-3-4 4.5 4.5 0 0 1-3 4"/><path d="M17.599 6.5a3 3 0 0 0 .399-1.375"/><path d="M6.003 5.125A3 3 0 0 0 6.401 6.5"/><path d="M3.477 10.896a4 4 0 0 1 .585-.396"/><path d="M19.938 10.5a4 4 0 0 1 .585.396"/><path d="M6 18a4 4 0 0 1-1.967-.516"/><path d="M19.967 17.484A4 4 0 0 1 18 18"/></svg>