Combine duplicated code in both if and else branches

Handle 502 errors from Anthropic
Update Rust crate log to v0.4.27 (#27540 )
2025-03-27 09:43:24 -04:00 · 2025-03-27 07:30:36 -04:00 · 2025-03-27 10:10:54 +00:00 · 2025-03-27 09:54:09 +00:00 · 2025-03-27 09:46:31 +00:00 · 2025-03-27 11:37:20 +02:00
381 changed files with 30339 additions and 17795 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
@@ -609,7 +613,7 @@ 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/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 +623,44 @@
      "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,
+          "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
+        }
+      }
+    },
+    "notify_when_agent_waiting": true
  },
  // The settings for slash commands.
  "slash_commands": {
@@ -981,7 +1027,7 @@
    //         "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 +1270,19 @@
        "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
@@ -1,6 +1,6 @@
 mod supported_countries;

-use std::{pin::Pin, str::FromStr};
+use std::{fmt::Display, pin::Pin, str};

 use anyhow::{anyhow, Context as _, Result};
 use chrono::{DateTime, Utc};
@@ -8,7 +8,7 @@ use futures::{io::BufReader, stream::BoxStream, AsyncBufReadExt, AsyncReadExt, S
 use http_client::http::{HeaderMap, HeaderValue};
 use http_client::{AsyncBody, HttpClient, Method, Request as HttpRequest};
 use serde::{Deserialize, Serialize};
-use strum::{EnumIter, EnumString};
+use strum::{EnumIter, EnumString, FromRepr};
 use thiserror::Error;
 use util::ResultExt as _;

@@ -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()
        }
    }
 }
@@ -221,30 +276,21 @@ pub async fn complete(
        .send(request)
        .await
        .context("failed to send request to Anthropic")?;
-    if response.status().is_success() {
-        let mut body = Vec::new();
-        response
-            .body_mut()
-            .read_to_end(&mut body)
-            .await
-            .context("failed to read response body")?;
+    let status = response.status();
+    let mut body = Vec::new();
+    response
+        .body_mut()
+        .read_to_end(&mut body)
+        .await
+        .context("failed to read response body")?;
+
+    if status.is_success() {
        let response_message: Response =
            serde_json::from_slice(&body).context("failed to deserialize response body")?;
        Ok(response_message)
    } else {
-        let mut body = Vec::new();
-        response
-            .body_mut()
-            .read_to_end(&mut body)
-            .await
-            .context("failed to read response body")?;
-        let body_str =
-            std::str::from_utf8(&body).context("failed to parse response body as UTF-8")?;
-        Err(AnthropicError::Other(anyhow!(
-            "Failed to connect to API: {} {}",
-            response.status(),
-            body_str
-        )))
+        let body_str = str::from_utf8(&body).context("failed to parse response body as UTF-8")?;
+        Err(AnthropicError::from_response(status.as_u16(), body_str))
    }
 }

@@ -338,7 +384,8 @@ pub async fn stream_completion_with_rate_limit_info(
        .send(request)
        .await
        .context("failed to send request to Anthropic")?;
-    if response.status().is_success() {
+    let status = response.status();
+    if status.is_success() {
        let rate_limits = RateLimitInfo::from_headers(response.headers());
        let reader = BufReader::new(response.into_body());
        let stream = reader
@@ -365,20 +412,8 @@ pub async fn stream_completion_with_rate_limit_info(
            .await
            .context("failed to read response body")?;

-        let body_str =
-            std::str::from_utf8(&body).context("failed to parse response body as UTF-8")?;
-
-        match serde_json::from_str::<Event>(body_str) {
-            Ok(Event::Error { error }) => Err(AnthropicError::ApiError(error)),
-            Ok(_) => Err(AnthropicError::Other(anyhow!(
-                "Unexpected success response while expecting an error: '{body_str}'",
-            ))),
-            Err(_) => Err(AnthropicError::Other(anyhow!(
-                "Failed to connect to API: {} {}",
-                response.status(),
-                body_str,
-            ))),
-        }
+        let body_str = str::from_utf8(&body).context("failed to parse response body as UTF-8")?;
+        Err(AnthropicError::from_response(status.as_u16(), body_str))
    }
 }

@@ -409,6 +444,8 @@ 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 +524,10 @@ 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 +559,12 @@ 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)]
 pub struct Request {
    pub model: String,
@@ -526,6 +573,8 @@ 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>,
@@ -609,6 +658,10 @@ 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 },
 }
@@ -621,48 +674,72 @@ pub struct MessageDelta {

 #[derive(Error, Debug)]
 pub enum AnthropicError {
-    #[error("an error occurred while interacting with the Anthropic API: {error_type}: {message}", error_type = .0.error_type, message = .0.message)]
+    #[error("an error occurred while interacting with the Anthropic API: {error_code}: {message}", error_code = .0.code, message = .0.message)]
    ApiError(ApiError),
    #[error("{0}")]
    Other(#[from] anyhow::Error),
 }

+impl AnthropicError {
+    pub fn from_response(status: u16, body: &str) -> Self {
+        let error = match serde_json::from_str::<Event>(body) {
+            Ok(Event::Error { error }) => Self::ApiError(error),
+            result => match ApiErrorCode::from_repr(status) {
+                Some(error_code) => Self::ApiError(ApiError {
+                    code: error_code,
+                    message: body.into(),
+                }),
+                None => {
+                    if result.is_ok() {
+                        Self::Other(anyhow!(
+                            "Unexpected success response while expecting an error: '{body}'",
+                        ))
+                    } else {
+                        Self::Other(anyhow!("Failed to connect to API: {status} {body}",))
+                    }
+                }
+            },
+        };
+        error
+    }
+}
+
 #[derive(Debug, Serialize, Deserialize)]
 pub struct ApiError {
    #[serde(rename = "type")]
-    pub error_type: String,
+    pub code: ApiErrorCode,
    pub message: String,
 }

 /// An Anthropic API error code.
 /// <https://docs.anthropic.com/en/api/errors#http-errors>
-#[derive(Debug, PartialEq, Eq, Clone, Copy, EnumString)]
+#[derive(Debug, PartialEq, Eq, Clone, Copy, EnumString, Serialize, Deserialize, FromRepr)]
+#[serde(rename_all = "snake_case")]
+#[repr(u16)]
 #[strum(serialize_all = "snake_case")]
 pub enum ApiErrorCode {
    /// 400 - `invalid_request_error`: There was an issue with the format or content of your request.
-    InvalidRequestError,
+    InvalidRequestError = 400,
    /// 401 - `authentication_error`: There's an issue with your API key.
-    AuthenticationError,
+    AuthenticationError = 401,
    /// 403 - `permission_error`: Your API key does not have permission to use the specified resource.
-    PermissionError,
+    PermissionError = 403,
    /// 404 - `not_found_error`: The requested resource was not found.
-    NotFoundError,
+    NotFoundError = 404,
    /// 413 - `request_too_large`: Request exceeds the maximum allowed number of bytes.
-    RequestTooLarge,
+    RequestTooLarge = 413,
    /// 429 - `rate_limit_error`: Your account has hit a rate limit.
-    RateLimitError,
+    RateLimitError = 429,
    /// 500 - `api_error`: An unexpected error has occurred internal to Anthropic's systems.
-    ApiError,
+    ApiError = 500,
+    /// 502 - Bad Gateway. This is not in Anthropic's docs, but we have seen it in the wild.
+    BadGateway = 502,
    /// 529 - `overloaded_error`: Anthropic's API is temporarily overloaded.
-    OverloadedError,
+    OverloadedError = 529,
 }

-impl ApiError {
-    pub fn code(&self) -> Option<ApiErrorCode> {
-        ApiErrorCode::from_str(&self.error_type).ok()
-    }
-
-    pub fn is_rate_limit_error(&self) -> bool {
-        matches!(self.error_type.as_str(), "rate_limit_error")
+impl Display for ApiErrorCode {
+    fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
+        write!(f, "HTTP {}", *self as u16)
    }
 }
--- 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/src/assistant_panel.rs
+++ b/crates/assistant/src/assistant_panel.rs
@@ -38,7 +38,7 @@ 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);
@@ -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))
                                }))
@@ -1028,7 +1028,7 @@ impl AssistantPanel {

    fn deploy_prompt_library(
        &mut self,
-        _: &DeployPromptLibrary,
+        _: &OpenPromptLibrary,
        _window: &mut Window,
        cx: &mut Context<Self>,
    ) {
--- a/crates/assistant/src/inline_assistant.rs
+++ b/crates/assistant/src/inline_assistant.rs
@@ -232,7 +232,7 @@ 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 +246,37 @@ 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 +292,7 @@ impl InlineAssistant {
            }
            selections.push(selection);
        }
+        let snapshot = &snapshot.buffer_snapshot;
        let newest_selection = newest_selection.unwrap();

        let mut codegen_ranges = Vec::new();
@@ -3681,7 +3712,7 @@ 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 +4091,7 @@ 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
@@ -44,6 +44,7 @@ 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 +61,12 @@ 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 +1,201 @@
+use std::sync::Arc;
+
+use assistant_settings::AssistantSettings;
+use assistant_tool::ToolWorkingSet;
+use fs::Fs;
+use gpui::{prelude::*, DismissEvent, Entity, EventEmitter, FocusHandle, Focusable};
+use settings::Settings as _;
+use ui::{prelude::*, ListItem, ListItemSpacing, Navigable, NavigableEntry};
+use workspace::{ModalView, Workspace};
+
+use crate::assistant_configuration::profile_picker::{ProfilePicker, ProfilePickerDelegate};
+use crate::assistant_configuration::tool_picker::{ToolPicker, ToolPickerDelegate};
+use crate::{AssistantPanel, ManageProfiles};
+
+enum Mode {
+    ChooseProfile(Entity<ProfilePicker>),
+    ViewProfile(ViewProfileMode),
+    ConfigureTools(Entity<ToolPicker>),
+}
+
+#[derive(Clone)]
+pub struct ViewProfileMode {
+    profile_id: Arc<str>,
+    configure_tools: NavigableEntry,
+}
+
+pub struct ManageProfilesModal {
+    fs: Arc<dyn Fs>,
+    tools: Arc<ToolWorkingSet>,
+    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().read(cx);
+                let tools = thread_store.tools();
+                workspace.toggle_modal(window, cx, |window, cx| Self::new(fs, tools, window, cx))
+            }
+        });
+    }
+
+    pub fn new(
+        fs: Arc<dyn Fs>,
+        tools: Arc<ToolWorkingSet>,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> Self {
+        let focus_handle = cx.focus_handle();
+        let handle = cx.entity();
+
+        Self {
+            fs,
+            tools,
+            focus_handle,
+            mode: Mode::ChooseProfile(cx.new(|cx| {
+                let delegate = ProfilePickerDelegate::new(
+                    move |profile_id, window, cx| {
+                        handle.update(cx, |this, cx| {
+                            this.view_profile(profile_id.clone(), window, cx);
+                        })
+                    },
+                    cx,
+                );
+                ProfilePicker::new(delegate, window, cx)
+            })),
+        }
+    }
+
+    pub fn view_profile(
+        &mut self,
+        profile_id: Arc<str>,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) {
+        self.mode = Mode::ViewProfile(ViewProfileMode {
+            profile_id,
+            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;
+        };
+
+        self.mode = Mode::ConfigureTools(cx.new(|cx| {
+            let delegate = ToolPickerDelegate::new(
+                self.fs.clone(),
+                self.tools.clone(),
+                profile_id,
+                profile,
+                cx,
+            );
+            ToolPicker::new(delegate, window, cx)
+        }));
+        self.focus_handle(cx).focus(window);
+    }
+
+    fn confirm(&mut self, _window: &mut Window, _cx: &mut Context<Self>) {}
+
+    fn cancel(&mut self, _window: &mut Window, _cx: &mut Context<Self>) {}
+}
+
+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::ConfigureTools(tool_picker) => tool_picker.focus_handle(cx),
+            Mode::ViewProfile(_) => self.focus_handle.clone(),
+        }
+    }
+}
+
+impl EventEmitter<DismissEvent> for ManageProfilesModal {}
+
+impl ManageProfilesModal {
+    fn render_view_profile(
+        &mut self,
+        mode: ViewProfileMode,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> impl IntoElement {
+        Navigable::new(
+            div()
+                .track_focus(&self.focus_handle(cx))
+                .size_full()
+                .child(
+                    v_flex().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.configure_tools)
+    }
+}
+
+impl Render for ManageProfilesModal {
+    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
+        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) => profile_picker.clone().into_any_element(),
+                Mode::ViewProfile(mode) => self
+                    .render_view_profile(mode.clone(), window, cx)
+                    .into_any_element(),
+                Mode::ConfigureTools(tool_picker) => tool_picker.clone().into_any_element(),
+            })
+    }
+}
--- 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));
+        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 +1,267 @@
+use std::sync::Arc;
+
+use assistant_settings::{
+    AgentProfile, AssistantSettings, AssistantSettingsContent, 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;
+use ui::{prelude::*, HighlightedLabel, ListItem, ListItemSpacing};
+use util::ResultExt as _;
+
+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));
+        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>,
+    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>,
+        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(),
+            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
+            }
+        };
+
+        update_settings_file::<AssistantSettings>(self.fs.clone(), cx, {
+            let profile_id = self.profile_id.clone();
+            let tool = tool.clone();
+            move |settings, _cx| match settings {
+                AssistantSettingsContent::Versioned(VersionedAssistantSettingsContent::V2(
+                    settings,
+                )) => {
+                    if let Some(profiles) = &mut settings.profiles {
+                        if let Some(profile) = profiles.get_mut(&profile_id) {
+                            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,
            )
@@ -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())
@@ -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
--- 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()
@@ -390,6 +199,80 @@ impl PickerDelegate for FileContextPickerDelegate {
    }
 }

+pub(crate) fn search_paths(
+    query: String,
+    cancellation_flag: Arc<AtomicBool>,
+    workspace: &Entity<Workspace>,
+    cx: &App,
+) -> 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 render_file_context_entry(
    id: ElementId,
    path: &Path,
@@ -399,7 +282,10 @@ pub fn render_file_context_entry(
    cx: &App,
 ) -> Stateful<Div> {
    let (file_name, directory) = if path == Path::new("") {
-        (SharedString::from(path_prefix.clone()), None)
+        (
+            SharedString::from(path_prefix.trim_end_matches('/').to_string()),
+            None,
+        )
    } else {
        let file_name = path
            .file_name()
@@ -408,8 +294,10 @@ pub fn render_file_context_entry(
            .to_string()
            .into();

-        let mut directory = format!("{}/", path_prefix);
-
+        let mut directory = path_prefix.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('/');
@@ -484,85 +372,3 @@ 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 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(),
@@ -247,6 +302,7 @@ pub struct SerializedThreadMetadata {

 #[derive(Serialize, Deserialize)]
 pub struct SerializedThread {
+    pub version: String,
    pub summary: SharedString,
    pub updated_at: DateTime<Utc>,
    pub messages: Vec<SerializedMessage>,
@@ -254,17 +310,55 @@ pub struct SerializedThread {
    pub initial_project_snapshot: Option<Arc<ProjectSnapshot>>,
 }

+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 +373,50 @@ 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,
+        }
+    }
+}
+
+#[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 +426,25 @@ 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 +1,119 @@
+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(440.),
+            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(Headline::new("Agent Panel").size(HeadlineSize::XSmall))
+                            .child(Label::new(self.caption.clone()).color(Color::Muted)),
+                    ),
+            )
+            .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/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
@@ -89,7 +89,7 @@ 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 +128,7 @@ impl HeadlessAssistant {
                    }
                }
            }
-            ThreadEvent::StreamedCompletion
-            | ThreadEvent::SummaryChanged
-            | ThreadEvent::StreamedAssistantText(_, _)
-            | ThreadEvent::MessageAdded(_)
-            | ThreadEvent::MessageEdited(_)
-            | ThreadEvent::MessageDeleted(_) => {}
+            _ => {}
        }
    }
 }
@@ -154,7 +149,10 @@ 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_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/src/assistant_tools.rs
+++ b/crates/assistant_tools/src/assistant_tools.rs
@@ -1,26 +1,37 @@
 mod bash_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 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::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::path_search_tool::PathSearchTool;
@@ -34,7 +45,12 @@ pub fn init(http_client: Arc<HttpClientWithUrl>, cx: &mut App) {

    let registry = ToolRegistry::global(cx);
    registry.register_tool(BashTool);
+    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);
--- a/crates/assistant_tools/src/bash_tool.rs
+++ b/crates/assistant_tools/src/bash_tool.rs
@@ -6,7 +6,9 @@ use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 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 {
@@ -23,15 +25,36 @@ 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 serde_json::from_value::<BashToolInput>(input.clone()) {
+            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,
--- 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
@@ -3,3 +3,7 @@ Edit files in the current project by specifying instructions in natural language
 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/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/crates/assistant_tools/src/read_file_tool.rs
+++ b/crates/assistant_tools/src/read_file_tool.rs
@@ -9,6 +9,8 @@ use language_model::LanguageModelRequestMessage;
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
+use ui::IconName;
+use util::markdown::MarkdownString;

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct ReadFileToolInput {
@@ -44,15 +46,33 @@ impl Tool for ReadFileTool {
        "read-file".into()
    }

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

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

+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<ReadFileToolInput>(input.clone()) {
+            Ok(input) => {
+                let path = MarkdownString::inline_code(&input.path.display().to_string());
+                format!("Read file {path}")
+            }
+            Err(_) => "Read file".to_string(),
+        }
+    }
+
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
@@ -67,7 +87,10 @@ impl Tool for ReadFileTool {
        };

        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.display()
+            )));
        };

        cx.spawn(async move |cx| {
--- a/crates/assistant_tools/src/regex_search_tool.rs
+++ b/crates/assistant_tools/src/regex_search_tool.rs
@@ -11,6 +11,8 @@ use project::{
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use std::{cmp, fmt::Write, sync::Arc};
+use ui::IconName;
+use util::markdown::MarkdownString;
 use util::paths::PathMatcher;

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
@@ -22,10 +24,17 @@ pub struct RegexSearchToolInput {
    /// Optional starting position for paginated results (0-based).
    /// When not provided, starts from the beginning.
    #[serde(default)]
-    pub offset: Option<usize>,
+    pub offset: Option<u32>,
 }

-const RESULTS_PER_PAGE: usize = 20;
+impl RegexSearchToolInput {
+    /// Which page of search results this is.
+    pub fn page(&self) -> u32 {
+        1 + (self.offset.unwrap_or(0) / RESULTS_PER_PAGE)
+    }
+}
+
+const RESULTS_PER_PAGE: u32 = 20;

 pub struct RegexSearchTool;

@@ -34,15 +43,39 @@ impl Tool for RegexSearchTool {
        "regex-search".into()
    }

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

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

+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<RegexSearchToolInput>(input.clone()) {
+            Ok(input) => {
+                let page = input.page();
+                let regex = MarkdownString::inline_code(&input.regex);
+
+                if page > 1 {
+                    format!("Get page {page} of search results for regex “{regex}”")
+                } else {
+                    format!("Search files for regex “{regex}”")
+                }
+            }
+            Err(_) => "Search with regex".to_string(),
+        }
+    }
+
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
@@ -154,7 +187,7 @@ impl Tool for RegexSearchTool {
                    offset + matches_found,
                    offset + RESULTS_PER_PAGE,
                ))
-          } else {
+            } else {
                Ok(format!("Found {matches_found} matches:\n{output}"))
            }
        })
--- a/crates/assistant_tools/src/edit_files_tool/replace.rs
+++ b/crates/assistant_tools/src/edit_files_tool/replace.rs
@@ -1,5 +1,6 @@
 use language::{BufferSnapshot, Diff, Point, ToOffset};
 use project::search::SearchQuery;
+use std::iter;
 use util::{paths::PathMatcher, ResultExt as _};

 /// Performs an exact string replacement in a buffer, requiring precise character-for-character matching.
@@ -11,8 +12,8 @@ pub async fn replace_exact(old: &str, new: &str, snapshot: &BufferSnapshot) -> O
        false,
        true,
        true,
-        PathMatcher::new(&[]).ok()?,
-        PathMatcher::new(&[]).ok()?,
+        PathMatcher::new(iter::empty::<&str>()).ok()?,
+        PathMatcher::new(iter::empty::<&str>()).ok()?,
        None,
    )
    .log_err()?;
--- a/crates/assistant_tools/src/thinking_tool.rs
+++ b/crates/assistant_tools/src/thinking_tool.rs
@@ -7,6 +7,7 @@ use language_model::LanguageModelRequestMessage;
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
+use ui::IconName;

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct ThinkingToolInput {
@@ -22,15 +23,27 @@ impl Tool for ThinkingTool {
        "thinking".to_string()
    }

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

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

+    fn ui_text(&self, _input: &serde_json::Value) -> String {
+        "Thinking".to_string()
+    }
+
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
--- a/crates/buffer_diff/src/buffer_diff.rs
+++ b/crates/buffer_diff/src/buffer_diff.rs
@@ -3,12 +3,9 @@ use git2::{DiffLineType as GitDiffLineType, DiffOptions as GitOptions, Patch as
 use gpui::{App, AppContext as _, AsyncApp, Context, Entity, EventEmitter, Task};
 use language::{Language, LanguageRegistry};
 use rope::Rope;
-use std::cmp::Ordering;
-use std::mem;
-use std::{future::Future, iter, ops::Range, sync::Arc};
+use std::{cmp::Ordering, future::Future, iter, mem, ops::Range, sync::Arc};
 use sum_tree::SumTree;
-use text::{Anchor, Bias, BufferId, OffsetRangeExt, Point};
-use text::{AnchorRangeExt, ToOffset as _};
+use text::{Anchor, Bias, BufferId, OffsetRangeExt, Point, ToOffset as _};
 use util::ResultExt;

 pub struct BufferDiff {
@@ -189,14 +186,14 @@ impl BufferDiffSnapshot {

 impl BufferDiffInner {
    /// Returns the new index text and new pending hunks.
-    fn stage_or_unstage_hunks(
+    fn stage_or_unstage_hunks_impl(
        &mut self,
        unstaged_diff: &Self,
        stage: bool,
        hunks: &[DiffHunk],
        buffer: &text::BufferSnapshot,
        file_exists: bool,
-    ) -> (Option<Rope>, SumTree<PendingHunk>) {
+    ) -> Option<Rope> {
        let head_text = self
            .base_text_exists
            .then(|| self.base_text.as_rope().clone());
@@ -209,7 +206,7 @@ impl BufferDiffInner {
        let (index_text, head_text) = match (index_text, head_text) {
            (Some(index_text), Some(head_text)) if file_exists || !stage => (index_text, head_text),
            (index_text, head_text) => {
-                let (rope, new_status) = if stage {
+                let (new_index_text, new_status) = if stage {
                    log::debug!("stage all");
                    (
                        file_exists.then(|| buffer.as_rope().clone()),
@@ -229,18 +226,13 @@ impl BufferDiffInner {
                    buffer_version: buffer.version().clone(),
                    new_status,
                };
-                let tree = SumTree::from_item(hunk, buffer);
-                return (rope, tree);
+                self.pending_hunks = SumTree::from_item(hunk, buffer);
+                return new_index_text;
            }
        };

-        let mut unstaged_hunk_cursor = unstaged_diff.hunks.cursor::<DiffHunkSummary>(buffer);
-        unstaged_hunk_cursor.next(buffer);
-
        let mut pending_hunks = SumTree::new(buffer);
-        let mut old_pending_hunks = unstaged_diff
-            .pending_hunks
-            .cursor::<DiffHunkSummary>(buffer);
+        let mut old_pending_hunks = self.pending_hunks.cursor::<DiffHunkSummary>(buffer);

        // first, merge new hunks into pending_hunks
        for DiffHunk {
@@ -252,22 +244,19 @@ impl BufferDiffInner {
        {
            let preceding_pending_hunks =
                old_pending_hunks.slice(&buffer_range.start, Bias::Left, buffer);
-
            pending_hunks.append(preceding_pending_hunks, buffer);

-            // skip all overlapping old pending hunks
-            while old_pending_hunks
-                .item()
-                .is_some_and(|preceding_pending_hunk_item| {
-                    preceding_pending_hunk_item
-                        .buffer_range
-                        .overlaps(&buffer_range, buffer)
-                })
-            {
+            // Skip all overlapping or adjacent old pending hunks
+            while old_pending_hunks.item().is_some_and(|old_hunk| {
+                old_hunk
+                    .buffer_range
+                    .start
+                    .cmp(&buffer_range.end, buffer)
+                    .is_le()
+            }) {
                old_pending_hunks.next(buffer);
            }

-            // merge into pending hunks
            if (stage && secondary_status == DiffHunkSecondaryStatus::NoSecondaryHunk)
                || (!stage && secondary_status == DiffHunkSecondaryStatus::HasSecondaryHunk)
            {
@@ -291,56 +280,74 @@ impl BufferDiffInner {
        // append the remainder
        pending_hunks.append(old_pending_hunks.suffix(buffer), buffer);

-        let mut prev_unstaged_hunk_buffer_offset = 0;
-        let mut prev_unstaged_hunk_base_text_offset = 0;
-        let mut edits = Vec::<(Range<usize>, String)>::new();
+        let mut unstaged_hunk_cursor = unstaged_diff.hunks.cursor::<DiffHunkSummary>(buffer);
+        unstaged_hunk_cursor.next(buffer);

        // then, iterate over all pending hunks (both new ones and the existing ones) and compute the edits
-        for PendingHunk {
+        let mut prev_unstaged_hunk_buffer_end = 0;
+        let mut prev_unstaged_hunk_base_text_end = 0;
+        let mut edits = Vec::<(Range<usize>, String)>::new();
+        let mut pending_hunks_iter = pending_hunks.iter().cloned().peekable();
+        while let Some(PendingHunk {
            buffer_range,
            diff_base_byte_range,
            ..
-        } in pending_hunks.iter().cloned()
+        }) = pending_hunks_iter.next()
        {
-            let skipped_hunks = unstaged_hunk_cursor.slice(&buffer_range.start, Bias::Left, buffer);
+            // Advance unstaged_hunk_cursor to skip unstaged hunks before current hunk
+            let skipped_unstaged =
+                unstaged_hunk_cursor.slice(&buffer_range.start, Bias::Left, buffer);

-            if let Some(secondary_hunk) = skipped_hunks.last() {
-                prev_unstaged_hunk_base_text_offset = secondary_hunk.diff_base_byte_range.end;
-                prev_unstaged_hunk_buffer_offset =
-                    secondary_hunk.buffer_range.end.to_offset(buffer);
+            if let Some(unstaged_hunk) = skipped_unstaged.last() {
+                prev_unstaged_hunk_base_text_end = unstaged_hunk.diff_base_byte_range.end;
+                prev_unstaged_hunk_buffer_end = unstaged_hunk.buffer_range.end.to_offset(buffer);
            }

+            // Find where this hunk is in the index if it doesn't overlap
            let mut buffer_offset_range = buffer_range.to_offset(buffer);
-            let start_overshoot = buffer_offset_range.start - prev_unstaged_hunk_buffer_offset;
-            let mut index_start = prev_unstaged_hunk_base_text_offset + start_overshoot;
+            let start_overshoot = buffer_offset_range.start - prev_unstaged_hunk_buffer_end;
+            let mut index_start = prev_unstaged_hunk_base_text_end + start_overshoot;

-            while let Some(unstaged_hunk) = unstaged_hunk_cursor.item().filter(|item| {
-                item.buffer_range
-                    .start
-                    .cmp(&buffer_range.end, buffer)
-                    .is_le()
-            }) {
-                let unstaged_hunk_offset_range = unstaged_hunk.buffer_range.to_offset(buffer);
-                prev_unstaged_hunk_base_text_offset = unstaged_hunk.diff_base_byte_range.end;
-                prev_unstaged_hunk_buffer_offset = unstaged_hunk_offset_range.end;
+            loop {
+                // Merge this hunk with any overlapping unstaged hunks.
+                if let Some(unstaged_hunk) = unstaged_hunk_cursor.item() {
+                    let unstaged_hunk_offset_range = unstaged_hunk.buffer_range.to_offset(buffer);
+                    if unstaged_hunk_offset_range.start <= buffer_offset_range.end {
+                        prev_unstaged_hunk_base_text_end = unstaged_hunk.diff_base_byte_range.end;
+                        prev_unstaged_hunk_buffer_end = unstaged_hunk_offset_range.end;

-                index_start = index_start.min(unstaged_hunk.diff_base_byte_range.start);
-                buffer_offset_range.start = buffer_offset_range
-                    .start
-                    .min(unstaged_hunk_offset_range.start);
+                        index_start = index_start.min(unstaged_hunk.diff_base_byte_range.start);
+                        buffer_offset_range.start = buffer_offset_range
+                            .start
+                            .min(unstaged_hunk_offset_range.start);
+                        buffer_offset_range.end =
+                            buffer_offset_range.end.max(unstaged_hunk_offset_range.end);

-                unstaged_hunk_cursor.next(buffer);
+                        unstaged_hunk_cursor.next(buffer);
+                        continue;
+                    }
+                }
+
+                // If any unstaged hunks were merged, then subsequent pending hunks may
+                // now overlap this hunk. Merge them.
+                if let Some(next_pending_hunk) = pending_hunks_iter.peek() {
+                    let next_pending_hunk_offset_range =
+                        next_pending_hunk.buffer_range.to_offset(buffer);
+                    if next_pending_hunk_offset_range.start <= buffer_offset_range.end {
+                        buffer_offset_range.end = next_pending_hunk_offset_range.end;
+                        pending_hunks_iter.next();
+                        continue;
+                    }
+                }
+
+                break;
            }

            let end_overshoot = buffer_offset_range
                .end
-                .saturating_sub(prev_unstaged_hunk_buffer_offset);
-            let index_end = prev_unstaged_hunk_base_text_offset + end_overshoot;
-
-            let index_range = index_start..index_end;
-            buffer_offset_range.end = buffer_offset_range
-                .end
-                .max(prev_unstaged_hunk_buffer_offset);
+                .saturating_sub(prev_unstaged_hunk_buffer_end);
+            let index_end = prev_unstaged_hunk_base_text_end + end_overshoot;
+            let index_byte_range = index_start..index_end;

            let replacement_text = if stage {
                log::debug!("stage hunk {:?}", buffer_offset_range);
@@ -354,10 +361,19 @@ impl BufferDiffInner {
                    .collect::<String>()
            };

-            edits.push((index_range, replacement_text));
+            edits.push((index_byte_range, replacement_text));
        }
+        drop(pending_hunks_iter);
+        drop(old_pending_hunks);
+        self.pending_hunks = pending_hunks;

-        debug_assert!(edits.iter().is_sorted_by_key(|(range, _)| range.start));
+        #[cfg(debug_assertions)] // invariants: non-overlapping and sorted
+        {
+            for window in edits.windows(2) {
+                let (range_a, range_b) = (&window[0].0, &window[1].0);
+                debug_assert!(range_a.end < range_b.start);
+            }
+        }

        let mut new_index_text = Rope::new();
        let mut index_cursor = index_text.cursor(0);
@@ -368,7 +384,7 @@ impl BufferDiffInner {
            new_index_text.push(&replacement_text);
        }
        new_index_text.append(index_cursor.suffix());
-        (Some(new_index_text), pending_hunks)
+        Some(new_index_text)
    }

    fn hunks_intersecting_range<'a>(
@@ -405,15 +421,14 @@ impl BufferDiffInner {
            ]
        });

+        let mut pending_hunks_cursor = self.pending_hunks.cursor::<DiffHunkSummary>(buffer);
+        pending_hunks_cursor.next(buffer);
+
        let mut secondary_cursor = None;
-        let mut pending_hunks_cursor = None;
        if let Some(secondary) = secondary.as_ref() {
            let mut cursor = secondary.hunks.cursor::<DiffHunkSummary>(buffer);
            cursor.next(buffer);
            secondary_cursor = Some(cursor);
-            let mut cursor = secondary.pending_hunks.cursor::<DiffHunkSummary>(buffer);
-            cursor.next(buffer);
-            pending_hunks_cursor = Some(cursor);
        }

        let max_point = buffer.max_point();
@@ -435,29 +450,27 @@ impl BufferDiffInner {
            let mut secondary_status = DiffHunkSecondaryStatus::NoSecondaryHunk;

            let mut has_pending = false;
-            if let Some(pending_cursor) = pending_hunks_cursor.as_mut() {
-                if start_anchor
-                    .cmp(&pending_cursor.start().buffer_range.start, buffer)
-                    .is_gt()
-                {
-                    pending_cursor.seek_forward(&start_anchor, Bias::Left, buffer);
+            if start_anchor
+                .cmp(&pending_hunks_cursor.start().buffer_range.start, buffer)
+                .is_gt()
+            {
+                pending_hunks_cursor.seek_forward(&start_anchor, Bias::Left, buffer);
+            }
+
+            if let Some(pending_hunk) = pending_hunks_cursor.item() {
+                let mut pending_range = pending_hunk.buffer_range.to_point(buffer);
+                if pending_range.end.column > 0 {
+                    pending_range.end.row += 1;
+                    pending_range.end.column = 0;
                }

-                if let Some(pending_hunk) = pending_cursor.item() {
-                    let mut pending_range = pending_hunk.buffer_range.to_point(buffer);
-                    if pending_range.end.column > 0 {
-                        pending_range.end.row += 1;
-                        pending_range.end.column = 0;
-                    }
-
-                    if pending_range == (start_point..end_point) {
-                        if !buffer.has_edits_since_in_range(
-                            &pending_hunk.buffer_version,
-                            start_anchor..end_anchor,
-                        ) {
-                            has_pending = true;
-                            secondary_status = pending_hunk.new_status;
-                        }
+                if pending_range == (start_point..end_point) {
+                    if !buffer.has_edits_since_in_range(
+                        &pending_hunk.buffer_version,
+                        start_anchor..end_anchor,
+                    ) {
+                        has_pending = true;
+                        secondary_status = pending_hunk.new_status;
                    }
                }
            }
@@ -836,10 +849,8 @@ impl BufferDiff {
    }

    pub fn clear_pending_hunks(&mut self, cx: &mut Context<Self>) {
-        if let Some(secondary_diff) = &self.secondary_diff {
-            secondary_diff.update(cx, |diff, _| {
-                diff.inner.pending_hunks = SumTree::from_summary(DiffHunkSummary::default());
-            });
+        if self.secondary_diff.is_some() {
+            self.inner.pending_hunks = SumTree::from_summary(DiffHunkSummary::default());
            cx.emit(BufferDiffEvent::DiffChanged {
                changed_range: Some(Anchor::MIN..Anchor::MAX),
            });
@@ -854,7 +865,7 @@ impl BufferDiff {
        file_exists: bool,
        cx: &mut Context<Self>,
    ) -> Option<Rope> {
-        let (new_index_text, new_pending_hunks) = self.inner.stage_or_unstage_hunks(
+        let new_index_text = self.inner.stage_or_unstage_hunks_impl(
            &self.secondary_diff.as_ref()?.read(cx).inner,
            stage,
            &hunks,
@@ -862,11 +873,6 @@ impl BufferDiff {
            file_exists,
        );

-        if let Some(unstaged_diff) = &self.secondary_diff {
-            unstaged_diff.update(cx, |diff, _| {
-                diff.inner.pending_hunks = new_pending_hunks;
-            });
-        }
        cx.emit(BufferDiffEvent::HunksStagedOrUnstaged(
            new_index_text.clone(),
        ));
@@ -1240,13 +1246,13 @@ impl DiffHunkStatus {
    }
 }

-/// Range (crossing new lines), old, new
 #[cfg(any(test, feature = "test-support"))]
 #[track_caller]
 pub fn assert_hunks<ExpectedText, HunkIter>(
    diff_hunks: HunkIter,
    buffer: &text::BufferSnapshot,
    diff_base: &str,
+    // Line range, deleted, added, status
    expected_hunks: &[(Range<u32>, ExpectedText, ExpectedText, DiffHunkStatus)],
 ) where
    HunkIter: Iterator<Item = DiffHunk>,
@@ -1267,11 +1273,11 @@ pub fn assert_hunks<ExpectedText, HunkIter>(

    let expected_hunks: Vec<_> = expected_hunks
        .iter()
-        .map(|(r, old_text, new_text, status)| {
+        .map(|(line_range, deleted_text, added_text, status)| {
            (
-                Point::new(r.start, 0)..Point::new(r.end, 0),
-                old_text.as_ref(),
-                new_text.as_ref().to_string(),
+                Point::new(line_range.start, 0)..Point::new(line_range.end, 0),
+                deleted_text.as_ref(),
+                added_text.as_ref().to_string(),
                *status,
            )
        })
@@ -1286,6 +1292,7 @@ mod tests {

    use super::*;
    use gpui::TestAppContext;
+    use pretty_assertions::{assert_eq, assert_ne};
    use rand::{rngs::StdRng, Rng as _};
    use text::{Buffer, BufferId, Rope};
    use unindent::Unindent as _;
@@ -1645,6 +1652,75 @@ mod tests {
                "
                .unindent(),
            },
+            Example {
+                name: "one unstaged hunk that contains two uncommitted hunks",
+                head_text: "
+                    one
+                    two
+
+                    three
+                    four
+                "
+                .unindent(),
+                index_text: "
+                    one
+                    two
+                    three
+                    four
+                "
+                .unindent(),
+                buffer_marked_text: "
+                    «one
+
+                    three // modified
+                    four»
+                "
+                .unindent(),
+                final_index_text: "
+                    one
+
+                    three // modified
+                    four
+                "
+                .unindent(),
+            },
+            Example {
+                name: "one uncommitted hunk that contains two unstaged hunks",
+                head_text: "
+                    one
+                    two
+                    three
+                    four
+                    five
+                "
+                .unindent(),
+                index_text: "
+                    ZERO
+                    one
+                    TWO
+                    THREE
+                    FOUR
+                    five
+                "
+                .unindent(),
+                buffer_marked_text: "
+                    «one
+                    TWO_HUNDRED
+                    THREE
+                    FOUR_HUNDRED
+                    five»
+                "
+                .unindent(),
+                final_index_text: "
+                    ZERO
+                    one
+                    TWO_HUNDRED
+                    THREE
+                    FOUR_HUNDRED
+                    five
+                "
+                .unindent(),
+            },
        ];

        for example in table {
@@ -1705,6 +1781,66 @@ mod tests {
        }
    }

+    #[gpui::test]
+    async fn test_toggling_stage_and_unstage_same_hunk(cx: &mut TestAppContext) {
+        let head_text = "
+            one
+            two
+            three
+        "
+        .unindent();
+        let index_text = head_text.clone();
+        let buffer_text = "
+            one
+            three
+        "
+        .unindent();
+
+        let buffer = Buffer::new(0, BufferId::new(1).unwrap(), buffer_text.clone());
+        let unstaged = BufferDiff::build_sync(buffer.clone(), index_text, cx);
+        let uncommitted = BufferDiff::build_sync(buffer.clone(), head_text.clone(), cx);
+        let unstaged_diff = cx.new(|cx| {
+            let mut diff = BufferDiff::new(&buffer, cx);
+            diff.set_state(unstaged, &buffer);
+            diff
+        });
+        let uncommitted_diff = cx.new(|cx| {
+            let mut diff = BufferDiff::new(&buffer, cx);
+            diff.set_state(uncommitted, &buffer);
+            diff.set_secondary_diff(unstaged_diff.clone());
+            diff
+        });
+
+        uncommitted_diff.update(cx, |diff, cx| {
+            let hunk = diff.hunks(&buffer, cx).next().unwrap();
+
+            let new_index_text = diff
+                .stage_or_unstage_hunks(true, &[hunk.clone()], &buffer, true, cx)
+                .unwrap()
+                .to_string();
+            assert_eq!(new_index_text, buffer_text);
+
+            let hunk = diff.hunks(&buffer, &cx).next().unwrap();
+            assert_eq!(
+                hunk.secondary_status,
+                DiffHunkSecondaryStatus::SecondaryHunkRemovalPending
+            );
+
+            let index_text = diff
+                .stage_or_unstage_hunks(false, &[hunk], &buffer, true, cx)
+                .unwrap()
+                .to_string();
+            assert_eq!(index_text, head_text);
+
+            let hunk = diff.hunks(&buffer, &cx).next().unwrap();
+            // optimistically unstaged (fine, could also be HasSecondaryHunk)
+            assert_eq!(
+                hunk.secondary_status,
+                DiffHunkSecondaryStatus::SecondaryHunkAdditionPending
+            );
+        });
+    }
+
    #[gpui::test]
    async fn test_buffer_diff_compare(cx: &mut TestAppContext) {
        let base_text = "
--- a/crates/call/Cargo.toml
+++ b/crates/call/Cargo.toml
@@ -43,10 +43,10 @@ telemetry.workspace = true
 util.workspace = true

 [target.'cfg(target_os = "macos")'.dependencies]
-livekit_client_macos = { workspace = true }
+livekit_client_macos.workspace = true

 [target.'cfg(not(target_os = "macos"))'.dependencies]
-livekit_client = { workspace = true }
+livekit_client.workspace = true

 [dev-dependencies]
 client = { workspace = true, features = ["test-support"] }
--- a/crates/call/src/cross_platform/room.rs
+++ b/crates/call/src/cross_platform/room.rs
@@ -469,18 +469,25 @@ impl Room {
                let project = handle.read(cx);
                if let Some(project_id) = project.remote_id() {
                    projects.insert(project_id, handle.clone());
+                    let mut worktrees = Vec::new();
+                    let mut repositories = Vec::new();
+                    for worktree in project.worktrees(cx) {
+                        let worktree = worktree.read(cx);
+                        worktrees.push(proto::RejoinWorktree {
+                            id: worktree.id().to_proto(),
+                            scan_id: worktree.completed_scan_id() as u64,
+                        });
+                        for repository in worktree.repositories().iter() {
+                            repositories.push(proto::RejoinRepository {
+                                id: repository.work_directory_id().to_proto(),
+                                scan_id: worktree.completed_scan_id() as u64,
+                            });
+                        }
+                    }
                    rejoined_projects.push(proto::RejoinProject {
                        id: project_id,
-                        worktrees: project
-                            .worktrees(cx)
-                            .map(|worktree| {
-                                let worktree = worktree.read(cx);
-                                proto::RejoinWorktree {
-                                    id: worktree.id().to_proto(),
-                                    scan_id: worktree.completed_scan_id() as u64,
-                                }
-                            })
-                            .collect(),
+                        worktrees,
+                        repositories,
                    });
                }
                return true;
--- a/crates/call/src/macos/room.rs
+++ b/crates/call/src/macos/room.rs
@@ -524,18 +524,27 @@ impl Room {
                let project = handle.read(cx);
                if let Some(project_id) = project.remote_id() {
                    projects.insert(project_id, handle.clone());
+                    let mut worktrees = Vec::new();
+                    let mut repositories = Vec::new();
+                    for worktree in project.worktrees(cx) {
+                        let worktree = worktree.read(cx);
+                        worktrees.push(proto::RejoinWorktree {
+                            id: worktree.id().to_proto(),
+                            scan_id: worktree.completed_scan_id() as u64,
+                        });
+                    }
+                    for (entry_id, repository) in project.repositories(cx) {
+                        let repository = repository.read(cx);
+                        repositories.push(proto::RejoinRepository {
+                            id: entry_id.to_proto(),
+                            scan_id: repository.completed_scan_id as u64,
+                        });
+                    }
+
                    rejoined_projects.push(proto::RejoinProject {
                        id: project_id,
-                        worktrees: project
-                            .worktrees(cx)
-                            .map(|worktree| {
-                                let worktree = worktree.read(cx);
-                                proto::RejoinWorktree {
-                                    id: worktree.id().to_proto(),
-                                    scan_id: worktree.completed_scan_id() as u64,
-                                }
-                            })
-                            .collect(),
+                        worktrees,
+                        repositories,
                    });
                }
                return true;
--- a/crates/cli/src/main.rs
+++ b/crates/cli/src/main.rs
@@ -27,6 +27,7 @@ trait InstalledApp {
    fn zed_version_string(&self) -> String;
    fn launch(&self, ipc_url: String) -> anyhow::Result<()>;
    fn run_foreground(&self, ipc_url: String) -> io::Result<ExitStatus>;
+    fn path(&self) -> PathBuf;
 }

 #[derive(Parser, Debug)]
@@ -73,6 +74,10 @@ struct Args {
    /// Run zed in dev-server mode
    #[arg(long)]
    dev_server_token: Option<String>,
+    /// Not supported in Zed CLI, only supported on Zed binary
+    /// Will attempt to give the correct command to run
+    #[arg(long)]
+    system_specs: bool,
    /// Uninstall Zed from user system
    #[cfg(all(
        any(target_os = "linux", target_os = "macos"),
@@ -140,6 +145,16 @@ fn main() -> Result<()> {
        return Ok(());
    }

+    if args.system_specs {
+        let path = app.path();
+        let msg = [
+            "The `--system-specs` argument is not supported in the Zed CLI, only on Zed binary.",
+            "To retrieve the system specs on the command line, run the following command:",
+            &format!("{} --system-specs", path.display()),
+        ];
+        return Err(anyhow::anyhow!(msg.join("\n")));
+    }
+
    #[cfg(all(
        any(target_os = "linux", target_os = "macos"),
        not(feature = "no-bundled-uninstall")
@@ -437,6 +452,10 @@ mod linux {
                .arg(ipc_url)
                .status()
        }
+
+        fn path(&self) -> PathBuf {
+            self.0.clone()
+        }
    }

    impl App {
@@ -674,6 +693,10 @@ mod windows {
                .spawn()?
                .wait()
        }
+
+        fn path(&self) -> PathBuf {
+            self.0.clone()
+        }
    }

    impl Detect {
@@ -876,6 +899,13 @@ mod mac_os {

            std::process::Command::new(path).arg(ipc_url).status()
        }
+
+        fn path(&self) -> PathBuf {
+            match self {
+                Bundle::App { app_bundle, .. } => app_bundle.join("Contents/MacOS/zed").clone(),
+                Bundle::LocalPath { executable, .. } => executable.clone(),
+            }
+        }
    }

    impl Bundle {
--- a/crates/collab/Cargo.toml
+++ b/crates/collab/Cargo.toml
@@ -115,7 +115,7 @@ notifications = { workspace = true, features = ["test-support"] }
 pretty_assertions.workspace = true
 project = { workspace = true, features = ["test-support"] }
 prompt_store.workspace = true
-recent_projects = { workspace = true }
+recent_projects.workspace = true
 release_channel.workspace = true
 remote = { workspace = true, features = ["test-support"] }
 remote_server.workspace = true
--- a/crates/collab/migrations.sqlite/20221109000000_test_schema.sql
+++ b/crates/collab/migrations.sqlite/20221109000000_test_schema.sql
@@ -15,9 +15,13 @@ CREATE TABLE "users" (
    "github_user_created_at" TIMESTAMP WITHOUT TIME ZONE,
    "custom_llm_monthly_allowance_in_cents" INTEGER
 );
+
 CREATE UNIQUE INDEX "index_users_github_login" ON "users" ("github_login");
+
 CREATE UNIQUE INDEX "index_invite_code_users" ON "users" ("invite_code");
+
 CREATE INDEX "index_users_on_email_address" ON "users" ("email_address");
+
 CREATE UNIQUE INDEX "index_users_on_github_user_id" ON "users" ("github_user_id");

 CREATE TABLE "access_tokens" (
@@ -26,6 +30,7 @@ CREATE TABLE "access_tokens" (
    "impersonated_user_id" INTEGER REFERENCES users (id),
    "hash" VARCHAR(128)
 );
+
 CREATE INDEX "index_access_tokens_user_id" ON "access_tokens" ("user_id");

 CREATE TABLE "contacts" (
@@ -36,7 +41,9 @@ CREATE TABLE "contacts" (
    "should_notify" BOOLEAN NOT NULL,
    "accepted" BOOLEAN NOT NULL
 );
+
 CREATE UNIQUE INDEX "index_contacts_user_ids" ON "contacts" ("user_id_a", "user_id_b");
+
 CREATE INDEX "index_contacts_user_id_b" ON "contacts" ("user_id_b");

 CREATE TABLE "rooms" (
@@ -45,6 +52,7 @@ CREATE TABLE "rooms" (
    "environment" VARCHAR,
    "channel_id" INTEGER REFERENCES channels (id) ON DELETE CASCADE
 );
+
 CREATE UNIQUE INDEX "index_rooms_on_channel_id" ON "rooms" ("channel_id");

 CREATE TABLE "projects" (
@@ -55,7 +63,9 @@ CREATE TABLE "projects" (
    "host_connection_server_id" INTEGER REFERENCES servers (id) ON DELETE CASCADE,
    "unregistered" BOOLEAN NOT NULL DEFAULT FALSE
 );
+
 CREATE INDEX "index_projects_on_host_connection_server_id" ON "projects" ("host_connection_server_id");
+
 CREATE INDEX "index_projects_on_host_connection_id_and_host_connection_server_id" ON "projects" ("host_connection_id", "host_connection_server_id");

 CREATE TABLE "worktrees" (
@@ -67,8 +77,9 @@ CREATE TABLE "worktrees" (
    "scan_id" INTEGER NOT NULL,
    "is_complete" BOOL NOT NULL DEFAULT FALSE,
    "completed_scan_id" INTEGER NOT NULL,
-    PRIMARY KEY(project_id, id)
+    PRIMARY KEY (project_id, id)
 );
+
 CREATE INDEX "index_worktrees_on_project_id" ON "worktrees" ("project_id");

 CREATE TABLE "worktree_entries" (
@@ -87,32 +98,33 @@ CREATE TABLE "worktree_entries" (
    "is_deleted" BOOL NOT NULL,
    "git_status" INTEGER,
    "is_fifo" BOOL NOT NULL,
-    PRIMARY KEY(project_id, worktree_id, id),
-    FOREIGN KEY(project_id, worktree_id) REFERENCES worktrees (project_id, id) ON DELETE CASCADE
+    PRIMARY KEY (project_id, worktree_id, id),
+    FOREIGN KEY (project_id, worktree_id) REFERENCES worktrees (project_id, id) ON DELETE CASCADE
 );
+
 CREATE INDEX "index_worktree_entries_on_project_id" ON "worktree_entries" ("project_id");
+
 CREATE INDEX "index_worktree_entries_on_project_id_and_worktree_id" ON "worktree_entries" ("project_id", "worktree_id");

-CREATE TABLE "worktree_repositories" (
+CREATE TABLE "project_repositories" (
    "project_id" INTEGER NOT NULL,
-    "worktree_id" INTEGER NOT NULL,
-    "work_directory_id" INTEGER NOT NULL,
+    "abs_path" VARCHAR,
+    "id" INTEGER NOT NULL,
+    "entry_ids" VARCHAR,
+    "legacy_worktree_id" INTEGER,
    "branch" VARCHAR,
    "scan_id" INTEGER NOT NULL,
    "is_deleted" BOOL NOT NULL,
    "current_merge_conflicts" VARCHAR,
    "branch_summary" VARCHAR,
-    PRIMARY KEY(project_id, worktree_id, work_directory_id),
-    FOREIGN KEY(project_id, worktree_id) REFERENCES worktrees (project_id, id) ON DELETE CASCADE,
-    FOREIGN KEY(project_id, worktree_id, work_directory_id) REFERENCES worktree_entries (project_id, worktree_id, id) ON DELETE CASCADE
+    PRIMARY KEY (project_id, id)
 );
-CREATE INDEX "index_worktree_repositories_on_project_id" ON "worktree_repositories" ("project_id");
-CREATE INDEX "index_worktree_repositories_on_project_id_and_worktree_id" ON "worktree_repositories" ("project_id", "worktree_id");

-CREATE TABLE "worktree_repository_statuses" (
+CREATE INDEX "index_project_repositories_on_project_id" ON "project_repositories" ("project_id");
+
+CREATE TABLE "project_repository_statuses" (
    "project_id" INTEGER NOT NULL,
-    "worktree_id" INT8 NOT NULL,
-    "work_directory_id" INT8 NOT NULL,
+    "repository_id" INTEGER NOT NULL,
    "repo_path" VARCHAR NOT NULL,
    "status" INT8 NOT NULL,
    "status_kind" INT4 NOT NULL,
@@ -120,13 +132,12 @@ CREATE TABLE "worktree_repository_statuses" (
    "second_status" INT4 NULL,
    "scan_id" INT8 NOT NULL,
    "is_deleted" BOOL NOT NULL,
-    PRIMARY KEY(project_id, worktree_id, work_directory_id, repo_path),
-    FOREIGN KEY(project_id, worktree_id) REFERENCES worktrees (project_id, id) ON DELETE CASCADE,
-    FOREIGN KEY(project_id, worktree_id, work_directory_id) REFERENCES worktree_entries (project_id, worktree_id, id) ON DELETE CASCADE
+    PRIMARY KEY (project_id, repository_id, repo_path)
 );
-CREATE INDEX "index_wt_repos_statuses_on_project_id" ON "worktree_repository_statuses" ("project_id");
-CREATE INDEX "index_wt_repos_statuses_on_project_id_and_wt_id" ON "worktree_repository_statuses" ("project_id", "worktree_id");
-CREATE INDEX "index_wt_repos_statuses_on_project_id_and_wt_id_and_wd_id" ON "worktree_repository_statuses" ("project_id", "worktree_id", "work_directory_id");
+
+CREATE INDEX "index_project_repos_statuses_on_project_id" ON "project_repository_statuses" ("project_id");
+
+CREATE INDEX "index_project_repos_statuses_on_project_id_and_repo_id" ON "project_repository_statuses" ("project_id", "repository_id");

 CREATE TABLE "worktree_settings_files" (
    "project_id" INTEGER NOT NULL,
@@ -134,10 +145,12 @@ CREATE TABLE "worktree_settings_files" (
    "path" VARCHAR NOT NULL,
    "content" TEXT,
    "kind" VARCHAR,
-    PRIMARY KEY(project_id, worktree_id, path),
-    FOREIGN KEY(project_id, worktree_id) REFERENCES worktrees (project_id, id) ON DELETE CASCADE
+    PRIMARY KEY (project_id, worktree_id, path),
+    FOREIGN KEY (project_id, worktree_id) REFERENCES worktrees (project_id, id) ON DELETE CASCADE
 );
+
 CREATE INDEX "index_worktree_settings_files_on_project_id" ON "worktree_settings_files" ("project_id");
+
 CREATE INDEX "index_worktree_settings_files_on_project_id_and_worktree_id" ON "worktree_settings_files" ("project_id", "worktree_id");

 CREATE TABLE "worktree_diagnostic_summaries" (
@@ -147,18 +160,21 @@ CREATE TABLE "worktree_diagnostic_summaries" (
    "language_server_id" INTEGER NOT NULL,
    "error_count" INTEGER NOT NULL,
    "warning_count" INTEGER NOT NULL,
-    PRIMARY KEY(project_id, worktree_id, path),
-    FOREIGN KEY(project_id, worktree_id) REFERENCES worktrees (project_id, id) ON DELETE CASCADE
+    PRIMARY KEY (project_id, worktree_id, path),
+    FOREIGN KEY (project_id, worktree_id) REFERENCES worktrees (project_id, id) ON DELETE CASCADE
 );
+
 CREATE INDEX "index_worktree_diagnostic_summaries_on_project_id" ON "worktree_diagnostic_summaries" ("project_id");
+
 CREATE INDEX "index_worktree_diagnostic_summaries_on_project_id_and_worktree_id" ON "worktree_diagnostic_summaries" ("project_id", "worktree_id");

 CREATE TABLE "language_servers" (
    "id" INTEGER NOT NULL,
    "project_id" INTEGER NOT NULL REFERENCES projects (id) ON DELETE CASCADE,
    "name" VARCHAR NOT NULL,
-    PRIMARY KEY(project_id, id)
+    PRIMARY KEY (project_id, id)
 );
+
 CREATE INDEX "index_language_servers_on_project_id" ON "language_servers" ("project_id");

 CREATE TABLE "project_collaborators" (
@@ -170,11 +186,20 @@ CREATE TABLE "project_collaborators" (
    "replica_id" INTEGER NOT NULL,
    "is_host" BOOLEAN NOT NULL
 );
+
 CREATE INDEX "index_project_collaborators_on_project_id" ON "project_collaborators" ("project_id");
+
 CREATE UNIQUE INDEX "index_project_collaborators_on_project_id_and_replica_id" ON "project_collaborators" ("project_id", "replica_id");
+
 CREATE INDEX "index_project_collaborators_on_connection_server_id" ON "project_collaborators" ("connection_server_id");
+
 CREATE INDEX "index_project_collaborators_on_connection_id" ON "project_collaborators" ("connection_id");
-CREATE UNIQUE INDEX "index_project_collaborators_on_project_id_connection_id_and_server_id" ON "project_collaborators" ("project_id", "connection_id", "connection_server_id");
+
+CREATE UNIQUE INDEX "index_project_collaborators_on_project_id_connection_id_and_server_id" ON "project_collaborators" (
+    "project_id",
+    "connection_id",
+    "connection_server_id"
+);

 CREATE TABLE "room_participants" (
    "id" INTEGER PRIMARY KEY AUTOINCREMENT,
@@ -193,12 +218,21 @@ CREATE TABLE "room_participants" (
    "role" TEXT,
    "in_call" BOOLEAN NOT NULL DEFAULT FALSE
 );
+
 CREATE UNIQUE INDEX "index_room_participants_on_user_id" ON "room_participants" ("user_id");
+
 CREATE INDEX "index_room_participants_on_room_id" ON "room_participants" ("room_id");
+
 CREATE INDEX "index_room_participants_on_answering_connection_server_id" ON "room_participants" ("answering_connection_server_id");
+
 CREATE INDEX "index_room_participants_on_calling_connection_server_id" ON "room_participants" ("calling_connection_server_id");
+
 CREATE INDEX "index_room_participants_on_answering_connection_id" ON "room_participants" ("answering_connection_id");
-CREATE UNIQUE INDEX "index_room_participants_on_answering_connection_id_and_answering_connection_server_id" ON "room_participants" ("answering_connection_id", "answering_connection_server_id");
+
+CREATE UNIQUE INDEX "index_room_participants_on_answering_connection_id_and_answering_connection_server_id" ON "room_participants" (
+    "answering_connection_id",
+    "answering_connection_server_id"
+);

 CREATE TABLE "servers" (
    "id" INTEGER PRIMARY KEY AUTOINCREMENT,
@@ -214,9 +248,15 @@ CREATE TABLE "followers" (
    "follower_connection_server_id" INTEGER NOT NULL REFERENCES servers (id) ON DELETE CASCADE,
    "follower_connection_id" INTEGER NOT NULL
 );
-CREATE UNIQUE INDEX
-    "index_followers_on_project_id_and_leader_connection_server_id_and_leader_connection_id_and_follower_connection_server_id_and_follower_connection_id"
-ON "followers" ("project_id", "leader_connection_server_id", "leader_connection_id", "follower_connection_server_id", "follower_connection_id");
+
+CREATE UNIQUE INDEX "index_followers_on_project_id_and_leader_connection_server_id_and_leader_connection_id_and_follower_connection_server_id_and_follower_connection_id" ON "followers" (
+    "project_id",
+    "leader_connection_server_id",
+    "leader_connection_id",
+    "follower_connection_server_id",
+    "follower_connection_id"
+);
+
 CREATE INDEX "index_followers_on_room_id" ON "followers" ("room_id");

 CREATE TABLE "channels" (
@@ -237,6 +277,7 @@ CREATE TABLE IF NOT EXISTS "channel_chat_participants" (
    "connection_id" INTEGER NOT NULL,
    "connection_server_id" INTEGER NOT NULL REFERENCES servers (id) ON DELETE CASCADE
 );
+
 CREATE INDEX "index_channel_chat_participants_on_channel_id" ON "channel_chat_participants" ("channel_id");

 CREATE TABLE IF NOT EXISTS "channel_messages" (
@@ -249,7 +290,9 @@ CREATE TABLE IF NOT EXISTS "channel_messages" (
    "nonce" BLOB NOT NULL,
    "reply_to_message_id" INTEGER DEFAULT NULL
 );
+
 CREATE INDEX "index_channel_messages_on_channel_id" ON "channel_messages" ("channel_id");
+
 CREATE UNIQUE INDEX "index_channel_messages_on_sender_id_nonce" ON "channel_messages" ("sender_id", "nonce");

 CREATE TABLE "channel_message_mentions" (
@@ -257,7 +300,7 @@ CREATE TABLE "channel_message_mentions" (
    "start_offset" INTEGER NOT NULL,
    "end_offset" INTEGER NOT NULL,
    "user_id" INTEGER NOT NULL REFERENCES users (id) ON DELETE CASCADE,
-    PRIMARY KEY(message_id, start_offset)
+    PRIMARY KEY (message_id, start_offset)
 );

 CREATE TABLE "channel_members" (
@@ -288,7 +331,7 @@ CREATE TABLE "buffer_operations" (
    "replica_id" INTEGER NOT NULL,
    "lamport_timestamp" INTEGER NOT NULL,
    "value" BLOB NOT NULL,
-    PRIMARY KEY(buffer_id, epoch, lamport_timestamp, replica_id)
+    PRIMARY KEY (buffer_id, epoch, lamport_timestamp, replica_id)
 );

 CREATE TABLE "buffer_snapshots" (
@@ -296,7 +339,7 @@ CREATE TABLE "buffer_snapshots" (
    "epoch" INTEGER NOT NULL,
    "text" TEXT NOT NULL,
    "operation_serialization_version" INTEGER NOT NULL,
-    PRIMARY KEY(buffer_id, epoch)
+    PRIMARY KEY (buffer_id, epoch)
 );

 CREATE TABLE "channel_buffer_collaborators" (
@@ -310,11 +353,18 @@ CREATE TABLE "channel_buffer_collaborators" (
 );

 CREATE INDEX "index_channel_buffer_collaborators_on_channel_id" ON "channel_buffer_collaborators" ("channel_id");
-CREATE UNIQUE INDEX "index_channel_buffer_collaborators_on_channel_id_and_replica_id" ON "channel_buffer_collaborators" ("channel_id", "replica_id");
-CREATE INDEX "index_channel_buffer_collaborators_on_connection_server_id" ON "channel_buffer_collaborators" ("connection_server_id");
-CREATE INDEX "index_channel_buffer_collaborators_on_connection_id" ON "channel_buffer_collaborators" ("connection_id");
-CREATE UNIQUE INDEX "index_channel_buffer_collaborators_on_channel_id_connection_id_and_server_id" ON "channel_buffer_collaborators" ("channel_id", "connection_id", "connection_server_id");

+CREATE UNIQUE INDEX "index_channel_buffer_collaborators_on_channel_id_and_replica_id" ON "channel_buffer_collaborators" ("channel_id", "replica_id");
+
+CREATE INDEX "index_channel_buffer_collaborators_on_connection_server_id" ON "channel_buffer_collaborators" ("connection_server_id");
+
+CREATE INDEX "index_channel_buffer_collaborators_on_connection_id" ON "channel_buffer_collaborators" ("connection_id");
+
+CREATE UNIQUE INDEX "index_channel_buffer_collaborators_on_channel_id_connection_id_and_server_id" ON "channel_buffer_collaborators" (
+    "channel_id",
+    "connection_id",
+    "connection_server_id"
+);

 CREATE TABLE "feature_flags" (
    "id" INTEGER PRIMARY KEY AUTOINCREMENT,
@@ -324,7 +374,6 @@ CREATE TABLE "feature_flags" (

 CREATE INDEX "index_feature_flags" ON "feature_flags" ("id");

-
 CREATE TABLE "user_features" (
    "user_id" INTEGER NOT NULL REFERENCES users (id) ON DELETE CASCADE,
    "feature_id" INTEGER NOT NULL REFERENCES feature_flags (id) ON DELETE CASCADE,
@@ -332,9 +381,10 @@ CREATE TABLE "user_features" (
 );

 CREATE UNIQUE INDEX "index_user_features_user_id_and_feature_id" ON "user_features" ("user_id", "feature_id");
-CREATE INDEX "index_user_features_on_user_id" ON "user_features" ("user_id");
-CREATE INDEX "index_user_features_on_feature_id" ON "user_features" ("feature_id");

+CREATE INDEX "index_user_features_on_user_id" ON "user_features" ("user_id");
+
+CREATE INDEX "index_user_features_on_feature_id" ON "user_features" ("feature_id");

 CREATE TABLE "observed_buffer_edits" (
    "user_id" INTEGER NOT NULL REFERENCES users (id) ON DELETE CASCADE,
@@ -374,13 +424,10 @@ CREATE TABLE "notifications" (
    "response" BOOLEAN
 );

-CREATE INDEX
-    "index_notifications_on_recipient_id_is_read_kind_entity_id"
-    ON "notifications"
-    ("recipient_id", "is_read", "kind", "entity_id");
+CREATE INDEX "index_notifications_on_recipient_id_is_read_kind_entity_id" ON "notifications" ("recipient_id", "is_read", "kind", "entity_id");

 CREATE TABLE contributors (
-    user_id INTEGER REFERENCES users(id),
+    user_id INTEGER REFERENCES users (id),
    signed_at TIMESTAMP NOT NULL DEFAULT CURRENT_TIMESTAMP,
    PRIMARY KEY (user_id)
 );
@@ -394,7 +441,7 @@ CREATE TABLE extensions (
 );

 CREATE TABLE extension_versions (
-    extension_id INTEGER REFERENCES extensions(id),
+    extension_id INTEGER REFERENCES extensions (id),
    version TEXT NOT NULL,
    published_at TIMESTAMP NOT NULL DEFAULT CURRENT_TIMESTAMP,
    authors TEXT NOT NULL,
@@ -416,6 +463,7 @@ CREATE TABLE extension_versions (
 );

 CREATE UNIQUE INDEX "index_extensions_external_id" ON "extensions" ("external_id");
+
 CREATE INDEX "index_extensions_total_download_count" ON "extensions" ("total_download_count");

 CREATE TABLE rate_buckets (
@@ -424,14 +472,15 @@ CREATE TABLE rate_buckets (
    token_count INT NOT NULL,
    last_refill TIMESTAMP WITHOUT TIME ZONE NOT NULL,
    PRIMARY KEY (user_id, rate_limit_name),
-    FOREIGN KEY (user_id) REFERENCES users(id)
+    FOREIGN KEY (user_id) REFERENCES users (id)
 );
+
 CREATE INDEX idx_user_id_rate_limit ON rate_buckets (user_id, rate_limit_name);

 CREATE TABLE IF NOT EXISTS billing_preferences (
    id INTEGER PRIMARY KEY AUTOINCREMENT,
    created_at TIMESTAMP NOT NULL DEFAULT CURRENT_TIMESTAMP,
-    user_id INTEGER NOT NULL REFERENCES users(id),
+    user_id INTEGER NOT NULL REFERENCES users (id),
    max_monthly_llm_usage_spending_in_cents INTEGER NOT NULL
 );

@@ -440,18 +489,19 @@ CREATE UNIQUE INDEX "uix_billing_preferences_on_user_id" ON billing_preferences
 CREATE TABLE IF NOT EXISTS billing_customers (
    id INTEGER PRIMARY KEY AUTOINCREMENT,
    created_at TIMESTAMP NOT NULL DEFAULT CURRENT_TIMESTAMP,
-    user_id INTEGER NOT NULL REFERENCES users(id),
+    user_id INTEGER NOT NULL REFERENCES users (id),
    has_overdue_invoices BOOLEAN NOT NULL DEFAULT FALSE,
    stripe_customer_id TEXT NOT NULL
 );

 CREATE UNIQUE INDEX "uix_billing_customers_on_user_id" ON billing_customers (user_id);
+
 CREATE UNIQUE INDEX "uix_billing_customers_on_stripe_customer_id" ON billing_customers (stripe_customer_id);

 CREATE TABLE IF NOT EXISTS billing_subscriptions (
    id INTEGER PRIMARY KEY AUTOINCREMENT,
    created_at TIMESTAMP NOT NULL DEFAULT CURRENT_TIMESTAMP,
-    billing_customer_id INTEGER NOT NULL REFERENCES billing_customers(id),
+    billing_customer_id INTEGER NOT NULL REFERENCES billing_customers (id),
    stripe_subscription_id TEXT NOT NULL,
    stripe_subscription_status TEXT NOT NULL,
    stripe_cancel_at TIMESTAMP,
@@ -459,6 +509,7 @@ CREATE TABLE IF NOT EXISTS billing_subscriptions (
 );

 CREATE INDEX "ix_billing_subscriptions_on_billing_customer_id" ON billing_subscriptions (billing_customer_id);
+
 CREATE UNIQUE INDEX "uix_billing_subscriptions_on_stripe_subscription_id" ON billing_subscriptions (stripe_subscription_id);

 CREATE TABLE IF NOT EXISTS processed_stripe_events (
@@ -479,4 +530,5 @@ CREATE TABLE IF NOT EXISTS "breakpoints" (
    "path" TEXT NOT NULL,
    "kind" VARCHAR NOT NULL
 );
+
 CREATE INDEX "index_breakpoints_on_project_id" ON "breakpoints" ("project_id");
--- a/crates/collab/migrations/20250319182812_create_project_repositories.sql
+++ b/crates/collab/migrations/20250319182812_create_project_repositories.sql
@@ -0,0 +1,32 @@
+CREATE TABLE "project_repositories" (
+    "project_id" INTEGER NOT NULL,
+    "abs_path" VARCHAR,
+    "id" INT8 NOT NULL,
+    "legacy_worktree_id" INT8,
+    "entry_ids" VARCHAR,
+    "branch" VARCHAR,
+    "scan_id" INT8 NOT NULL,
+    "is_deleted" BOOL NOT NULL,
+    "current_merge_conflicts" VARCHAR,
+    "branch_summary" VARCHAR,
+    PRIMARY KEY (project_id, id)
+);
+
+CREATE INDEX "index_project_repositories_on_project_id" ON "project_repositories" ("project_id");
+
+CREATE TABLE "project_repository_statuses" (
+    "project_id" INTEGER NOT NULL,
+    "repository_id" INT8 NOT NULL,
+    "repo_path" VARCHAR NOT NULL,
+    "status" INT8 NOT NULL,
+    "status_kind" INT4 NOT NULL,
+    "first_status" INT4 NULL,
+    "second_status" INT4 NULL,
+    "scan_id" INT8 NOT NULL,
+    "is_deleted" BOOL NOT NULL,
+    PRIMARY KEY (project_id, repository_id, repo_path)
+);
+
+CREATE INDEX "index_project_repos_statuses_on_project_id" ON "project_repository_statuses" ("project_id");
+
+CREATE INDEX "index_project_repos_statuses_on_project_id_and_repo_id" ON "project_repository_statuses" ("project_id", "repository_id");
--- a/crates/collab/src/db.rs
+++ b/crates/collab/src/db.rs
@@ -9,6 +9,7 @@ use anyhow::anyhow;
 use collections::{BTreeMap, BTreeSet, HashMap, HashSet};
 use dashmap::DashMap;
 use futures::StreamExt;
+use project_repository_statuses::StatusKind;
 use rand::{prelude::StdRng, Rng, SeedableRng};
 use rpc::ExtensionProvides;
 use rpc::{
@@ -36,7 +37,6 @@ use std::{
 };
 use time::PrimitiveDateTime;
 use tokio::sync::{Mutex, OwnedMutexGuard};
-use worktree_repository_statuses::StatusKind;
 use worktree_settings_file::LocalSettingsKind;

 #[cfg(test)]
@@ -658,6 +658,8 @@ pub struct RejoinedProject {
    pub old_connection_id: ConnectionId,
    pub collaborators: Vec<ProjectCollaborator>,
    pub worktrees: Vec<RejoinedWorktree>,
+    pub updated_repositories: Vec<proto::UpdateRepository>,
+    pub removed_repositories: Vec<u64>,
    pub language_servers: Vec<proto::LanguageServer>,
 }

@@ -726,6 +728,7 @@ pub struct Project {
    pub role: ChannelRole,
    pub collaborators: Vec<ProjectCollaborator>,
    pub worktrees: BTreeMap<u64, Worktree>,
+    pub repositories: Vec<proto::UpdateRepository>,
    pub language_servers: Vec<proto::LanguageServer>,
 }

@@ -760,7 +763,7 @@ pub struct Worktree {
    pub root_name: String,
    pub visible: bool,
    pub entries: Vec<proto::Entry>,
-    pub repository_entries: BTreeMap<u64, proto::RepositoryEntry>,
+    pub legacy_repository_entries: BTreeMap<u64, proto::RepositoryEntry>,
    pub diagnostic_summaries: Vec<proto::DiagnosticSummary>,
    pub settings_files: Vec<WorktreeSettingsFile>,
    pub scan_id: u64,
@@ -810,7 +813,7 @@ impl LocalSettingsKind {
 }

 fn db_status_to_proto(
-    entry: worktree_repository_statuses::Model,
+    entry: project_repository_statuses::Model,
 ) -> anyhow::Result<proto::StatusEntry> {
    use proto::git_file_status::{Tracked, Unmerged, Variant};

--- a/crates/collab/src/db/queries/projects.rs
+++ b/crates/collab/src/db/queries/projects.rs
@@ -324,119 +324,135 @@ impl Database {
                    .await?;
            }

-            if !update.updated_repositories.is_empty() {
-                worktree_repository::Entity::insert_many(update.updated_repositories.iter().map(
-                    |repository| {
-                        worktree_repository::ActiveModel {
-                            project_id: ActiveValue::set(project_id),
-                            worktree_id: ActiveValue::set(worktree_id),
-                            work_directory_id: ActiveValue::set(
-                                repository.work_directory_id as i64,
-                            ),
-                            scan_id: ActiveValue::set(update.scan_id as i64),
-                            branch: ActiveValue::set(repository.branch.clone()),
-                            is_deleted: ActiveValue::set(false),
-                            branch_summary: ActiveValue::Set(
-                                repository
-                                    .branch_summary
-                                    .as_ref()
-                                    .map(|summary| serde_json::to_string(summary).unwrap()),
-                            ),
-                            current_merge_conflicts: ActiveValue::Set(Some(
-                                serde_json::to_string(&repository.current_merge_conflicts).unwrap(),
-                            )),
-                        }
-                    },
-                ))
-                .on_conflict(
-                    OnConflict::columns([
-                        worktree_repository::Column::ProjectId,
-                        worktree_repository::Column::WorktreeId,
-                        worktree_repository::Column::WorkDirectoryId,
-                    ])
-                    .update_columns([
-                        worktree_repository::Column::ScanId,
-                        worktree_repository::Column::Branch,
-                        worktree_repository::Column::BranchSummary,
-                        worktree_repository::Column::CurrentMergeConflicts,
-                    ])
-                    .to_owned(),
-                )
-                .exec(&*tx)
-                .await?;
+            // Backward-compatibility for old Zed clients.
+            //
+            // Remove this block when Zed 1.80 stable has been out for a week.
+            {
+                if !update.updated_repositories.is_empty() {
+                    project_repository::Entity::insert_many(
+                        update.updated_repositories.iter().map(|repository| {
+                            project_repository::ActiveModel {
+                                project_id: ActiveValue::set(project_id),
+                                legacy_worktree_id: ActiveValue::set(Some(worktree_id)),
+                                id: ActiveValue::set(repository.work_directory_id as i64),
+                                scan_id: ActiveValue::set(update.scan_id as i64),
+                                is_deleted: ActiveValue::set(false),
+                                branch_summary: ActiveValue::Set(
+                                    repository
+                                        .branch_summary
+                                        .as_ref()
+                                        .map(|summary| serde_json::to_string(summary).unwrap()),
+                                ),
+                                current_merge_conflicts: ActiveValue::Set(Some(
+                                    serde_json::to_string(&repository.current_merge_conflicts)
+                                        .unwrap(),
+                                )),

-                let has_any_statuses = update
-                    .updated_repositories
-                    .iter()
-                    .any(|repository| !repository.updated_statuses.is_empty());
-
-                if has_any_statuses {
-                    worktree_repository_statuses::Entity::insert_many(
-                        update.updated_repositories.iter().flat_map(
-                            |repository: &proto::RepositoryEntry| {
-                                repository.updated_statuses.iter().map(|status_entry| {
-                                    let (repo_path, status_kind, first_status, second_status) =
-                                        proto_status_to_db(status_entry.clone());
-                                    worktree_repository_statuses::ActiveModel {
-                                        project_id: ActiveValue::set(project_id),
-                                        worktree_id: ActiveValue::set(worktree_id),
-                                        work_directory_id: ActiveValue::set(
-                                            repository.work_directory_id as i64,
-                                        ),
-                                        scan_id: ActiveValue::set(update.scan_id as i64),
-                                        is_deleted: ActiveValue::set(false),
-                                        repo_path: ActiveValue::set(repo_path),
-                                        status: ActiveValue::set(0),
-                                        status_kind: ActiveValue::set(status_kind),
-                                        first_status: ActiveValue::set(first_status),
-                                        second_status: ActiveValue::set(second_status),
-                                    }
-                                })
-                            },
-                        ),
+                                // Old clients do not use abs path or entry ids.
+                                abs_path: ActiveValue::set(String::new()),
+                                entry_ids: ActiveValue::set("[]".into()),
+                            }
+                        }),
                    )
                    .on_conflict(
                        OnConflict::columns([
-                            worktree_repository_statuses::Column::ProjectId,
-                            worktree_repository_statuses::Column::WorktreeId,
-                            worktree_repository_statuses::Column::WorkDirectoryId,
-                            worktree_repository_statuses::Column::RepoPath,
+                            project_repository::Column::ProjectId,
+                            project_repository::Column::Id,
                        ])
                        .update_columns([
-                            worktree_repository_statuses::Column::ScanId,
-                            worktree_repository_statuses::Column::StatusKind,
-                            worktree_repository_statuses::Column::FirstStatus,
-                            worktree_repository_statuses::Column::SecondStatus,
+                            project_repository::Column::ScanId,
+                            project_repository::Column::BranchSummary,
+                            project_repository::Column::CurrentMergeConflicts,
                        ])
                        .to_owned(),
                    )
                    .exec(&*tx)
                    .await?;
+
+                    let has_any_statuses = update
+                        .updated_repositories
+                        .iter()
+                        .any(|repository| !repository.updated_statuses.is_empty());
+
+                    if has_any_statuses {
+                        project_repository_statuses::Entity::insert_many(
+                            update.updated_repositories.iter().flat_map(
+                                |repository: &proto::RepositoryEntry| {
+                                    repository.updated_statuses.iter().map(|status_entry| {
+                                        let (repo_path, status_kind, first_status, second_status) =
+                                            proto_status_to_db(status_entry.clone());
+                                        project_repository_statuses::ActiveModel {
+                                            project_id: ActiveValue::set(project_id),
+                                            repository_id: ActiveValue::set(
+                                                repository.work_directory_id as i64,
+                                            ),
+                                            scan_id: ActiveValue::set(update.scan_id as i64),
+                                            is_deleted: ActiveValue::set(false),
+                                            repo_path: ActiveValue::set(repo_path),
+                                            status: ActiveValue::set(0),
+                                            status_kind: ActiveValue::set(status_kind),
+                                            first_status: ActiveValue::set(first_status),
+                                            second_status: ActiveValue::set(second_status),
+                                        }
+                                    })
+                                },
+                            ),
+                        )
+                        .on_conflict(
+                            OnConflict::columns([
+                                project_repository_statuses::Column::ProjectId,
+                                project_repository_statuses::Column::RepositoryId,
+                                project_repository_statuses::Column::RepoPath,
+                            ])
+                            .update_columns([
+                                project_repository_statuses::Column::ScanId,
+                                project_repository_statuses::Column::StatusKind,
+                                project_repository_statuses::Column::FirstStatus,
+                                project_repository_statuses::Column::SecondStatus,
+                            ])
+                            .to_owned(),
+                        )
+                        .exec(&*tx)
+                        .await?;
+                    }
+
+                    for repo in &update.updated_repositories {
+                        if !repo.removed_statuses.is_empty() {
+                            project_repository_statuses::Entity::update_many()
+                                .filter(
+                                    project_repository_statuses::Column::ProjectId
+                                        .eq(project_id)
+                                        .and(
+                                            project_repository_statuses::Column::RepositoryId
+                                                .eq(repo.work_directory_id),
+                                        )
+                                        .and(
+                                            project_repository_statuses::Column::RepoPath
+                                                .is_in(repo.removed_statuses.iter()),
+                                        ),
+                                )
+                                .set(project_repository_statuses::ActiveModel {
+                                    is_deleted: ActiveValue::Set(true),
+                                    scan_id: ActiveValue::Set(update.scan_id as i64),
+                                    ..Default::default()
+                                })
+                                .exec(&*tx)
+                                .await?;
+                        }
+                    }
                }

-                let has_any_removed_statuses = update
-                    .updated_repositories
-                    .iter()
-                    .any(|repository| !repository.removed_statuses.is_empty());
-
-                if has_any_removed_statuses {
-                    worktree_repository_statuses::Entity::update_many()
+                if !update.removed_repositories.is_empty() {
+                    project_repository::Entity::update_many()
                        .filter(
-                            worktree_repository_statuses::Column::ProjectId
+                            project_repository::Column::ProjectId
                                .eq(project_id)
-                                .and(
-                                    worktree_repository_statuses::Column::WorktreeId
-                                        .eq(worktree_id),
-                                )
-                                .and(
-                                    worktree_repository_statuses::Column::RepoPath.is_in(
-                                        update.updated_repositories.iter().flat_map(|repository| {
-                                            repository.removed_statuses.iter()
-                                        }),
-                                    ),
-                                ),
+                                .and(project_repository::Column::LegacyWorktreeId.eq(worktree_id))
+                                .and(project_repository::Column::Id.is_in(
+                                    update.removed_repositories.iter().map(|id| *id as i64),
+                                )),
                        )
-                        .set(worktree_repository_statuses::ActiveModel {
+                        .set(project_repository::ActiveModel {
                            is_deleted: ActiveValue::Set(true),
                            scan_id: ActiveValue::Set(update.scan_id as i64),
                            ..Default::default()
@@ -446,18 +462,109 @@ impl Database {
                }
            }

-            if !update.removed_repositories.is_empty() {
-                worktree_repository::Entity::update_many()
+            let connection_ids = self.project_guest_connection_ids(project_id, &tx).await?;
+            Ok(connection_ids)
+        })
+        .await
+    }
+
+    pub async fn update_repository(
+        &self,
+        update: &proto::UpdateRepository,
+        _connection: ConnectionId,
+    ) -> Result<TransactionGuard<Vec<ConnectionId>>> {
+        let project_id = ProjectId::from_proto(update.project_id);
+        let repository_id = update.id as i64;
+        self.project_transaction(project_id, |tx| async move {
+            project_repository::Entity::insert(project_repository::ActiveModel {
+                project_id: ActiveValue::set(project_id),
+                id: ActiveValue::set(repository_id),
+                legacy_worktree_id: ActiveValue::set(None),
+                abs_path: ActiveValue::set(update.abs_path.clone()),
+                entry_ids: ActiveValue::Set(serde_json::to_string(&update.entry_ids).unwrap()),
+                scan_id: ActiveValue::set(update.scan_id as i64),
+                is_deleted: ActiveValue::set(false),
+                branch_summary: ActiveValue::Set(
+                    update
+                        .branch_summary
+                        .as_ref()
+                        .map(|summary| serde_json::to_string(summary).unwrap()),
+                ),
+                current_merge_conflicts: ActiveValue::Set(Some(
+                    serde_json::to_string(&update.current_merge_conflicts).unwrap(),
+                )),
+            })
+            .on_conflict(
+                OnConflict::columns([
+                    project_repository::Column::ProjectId,
+                    project_repository::Column::Id,
+                ])
+                .update_columns([
+                    project_repository::Column::ScanId,
+                    project_repository::Column::BranchSummary,
+                    project_repository::Column::EntryIds,
+                    project_repository::Column::AbsPath,
+                    project_repository::Column::CurrentMergeConflicts,
+                ])
+                .to_owned(),
+            )
+            .exec(&*tx)
+            .await?;
+
+            let has_any_statuses = !update.updated_statuses.is_empty();
+
+            if has_any_statuses {
+                project_repository_statuses::Entity::insert_many(
+                    update.updated_statuses.iter().map(|status_entry| {
+                        let (repo_path, status_kind, first_status, second_status) =
+                            proto_status_to_db(status_entry.clone());
+                        project_repository_statuses::ActiveModel {
+                            project_id: ActiveValue::set(project_id),
+                            repository_id: ActiveValue::set(repository_id),
+                            scan_id: ActiveValue::set(update.scan_id as i64),
+                            is_deleted: ActiveValue::set(false),
+                            repo_path: ActiveValue::set(repo_path),
+                            status: ActiveValue::set(0),
+                            status_kind: ActiveValue::set(status_kind),
+                            first_status: ActiveValue::set(first_status),
+                            second_status: ActiveValue::set(second_status),
+                        }
+                    }),
+                )
+                .on_conflict(
+                    OnConflict::columns([
+                        project_repository_statuses::Column::ProjectId,
+                        project_repository_statuses::Column::RepositoryId,
+                        project_repository_statuses::Column::RepoPath,
+                    ])
+                    .update_columns([
+                        project_repository_statuses::Column::ScanId,
+                        project_repository_statuses::Column::StatusKind,
+                        project_repository_statuses::Column::FirstStatus,
+                        project_repository_statuses::Column::SecondStatus,
+                    ])
+                    .to_owned(),
+                )
+                .exec(&*tx)
+                .await?;
+            }
+
+            let has_any_removed_statuses = !update.removed_statuses.is_empty();
+
+            if has_any_removed_statuses {
+                project_repository_statuses::Entity::update_many()
                    .filter(
-                        worktree_repository::Column::ProjectId
+                        project_repository_statuses::Column::ProjectId
                            .eq(project_id)
-                            .and(worktree_repository::Column::WorktreeId.eq(worktree_id))
                            .and(
-                                worktree_repository::Column::WorkDirectoryId
-                                    .is_in(update.removed_repositories.iter().map(|id| *id as i64)),
+                                project_repository_statuses::Column::RepositoryId.eq(repository_id),
+                            )
+                            .and(
+                                project_repository_statuses::Column::RepoPath
+                                    .is_in(update.removed_statuses.iter()),
                            ),
                    )
-                    .set(worktree_repository::ActiveModel {
+                    .set(project_repository_statuses::ActiveModel {
                        is_deleted: ActiveValue::Set(true),
                        scan_id: ActiveValue::Set(update.scan_id as i64),
                        ..Default::default()
@@ -472,6 +579,34 @@ impl Database {
        .await
    }

+    pub async fn remove_repository(
+        &self,
+        remove: &proto::RemoveRepository,
+        _connection: ConnectionId,
+    ) -> Result<TransactionGuard<Vec<ConnectionId>>> {
+        let project_id = ProjectId::from_proto(remove.project_id);
+        let repository_id = remove.id as i64;
+        self.project_transaction(project_id, |tx| async move {
+            project_repository::Entity::update_many()
+                .filter(
+                    project_repository::Column::ProjectId
+                        .eq(project_id)
+                        .and(project_repository::Column::Id.eq(repository_id)),
+                )
+                .set(project_repository::ActiveModel {
+                    is_deleted: ActiveValue::Set(true),
+                    // scan_id: ActiveValue::Set(update.scan_id as i64),
+                    ..Default::default()
+                })
+                .exec(&*tx)
+                .await?;
+
+            let connection_ids = self.project_guest_connection_ids(project_id, &tx).await?;
+            Ok(connection_ids)
+        })
+        .await
+    }
+
    /// Updates the diagnostic summary for the given connection.
    pub async fn update_diagnostic_summary(
        &self,
@@ -703,11 +838,11 @@ impl Database {
                        root_name: db_worktree.root_name,
                        visible: db_worktree.visible,
                        entries: Default::default(),
-                        repository_entries: Default::default(),
                        diagnostic_summaries: Default::default(),
                        settings_files: Default::default(),
                        scan_id: db_worktree.scan_id as u64,
                        completed_scan_id: db_worktree.completed_scan_id as u64,
+                        legacy_repository_entries: Default::default(),
                    },
                )
            })
@@ -750,65 +885,77 @@ impl Database {
        }

        // Populate repository entries.
+        let mut repositories = Vec::new();
        {
-            let db_repository_entries = worktree_repository::Entity::find()
+            let db_repository_entries = project_repository::Entity::find()
                .filter(
                    Condition::all()
-                        .add(worktree_repository::Column::ProjectId.eq(project.id))
-                        .add(worktree_repository::Column::IsDeleted.eq(false)),
+                        .add(project_repository::Column::ProjectId.eq(project.id))
+                        .add(project_repository::Column::IsDeleted.eq(false)),
                )
                .all(tx)
                .await?;
            for db_repository_entry in db_repository_entries {
-                if let Some(worktree) = worktrees.get_mut(&(db_repository_entry.worktree_id as u64))
-                {
-                    let mut repository_statuses = worktree_repository_statuses::Entity::find()
-                        .filter(
-                            Condition::all()
-                                .add(worktree_repository_statuses::Column::ProjectId.eq(project.id))
-                                .add(
-                                    worktree_repository_statuses::Column::WorktreeId
-                                        .eq(worktree.id),
-                                )
-                                .add(
-                                    worktree_repository_statuses::Column::WorkDirectoryId
-                                        .eq(db_repository_entry.work_directory_id),
-                                )
-                                .add(worktree_repository_statuses::Column::IsDeleted.eq(false)),
-                        )
-                        .stream(tx)
-                        .await?;
-                    let mut updated_statuses = Vec::new();
-                    while let Some(status_entry) = repository_statuses.next().await {
-                        let status_entry: worktree_repository_statuses::Model = status_entry?;
-                        updated_statuses.push(db_status_to_proto(status_entry)?);
+                let mut repository_statuses = project_repository_statuses::Entity::find()
+                    .filter(
+                        Condition::all()
+                            .add(project_repository_statuses::Column::ProjectId.eq(project.id))
+                            .add(
+                                project_repository_statuses::Column::RepositoryId
+                                    .eq(db_repository_entry.id),
+                            )
+                            .add(project_repository_statuses::Column::IsDeleted.eq(false)),
+                    )
+                    .stream(tx)
+                    .await?;
+                let mut updated_statuses = Vec::new();
+                while let Some(status_entry) = repository_statuses.next().await {
+                    let status_entry = status_entry?;
+                    updated_statuses.push(db_status_to_proto(status_entry)?);
+                }
+
+                let current_merge_conflicts = db_repository_entry
+                    .current_merge_conflicts
+                    .as_ref()
+                    .map(|conflicts| serde_json::from_str(&conflicts))
+                    .transpose()?
+                    .unwrap_or_default();
+
+                let branch_summary = db_repository_entry
+                    .branch_summary
+                    .as_ref()
+                    .map(|branch_summary| serde_json::from_str(&branch_summary))
+                    .transpose()?
+                    .unwrap_or_default();
+
+                let entry_ids = serde_json::from_str(&db_repository_entry.entry_ids)
+                    .context("failed to deserialize repository's entry ids")?;
+
+                if let Some(worktree_id) = db_repository_entry.legacy_worktree_id {
+                    if let Some(worktree) = worktrees.get_mut(&(worktree_id as u64)) {
+                        worktree.legacy_repository_entries.insert(
+                            db_repository_entry.id as u64,
+                            proto::RepositoryEntry {
+                                work_directory_id: db_repository_entry.id as u64,
+                                updated_statuses,
+                                removed_statuses: Vec::new(),
+                                current_merge_conflicts,
+                                branch_summary,
+                            },
+                        );
                    }
-
-                    let current_merge_conflicts = db_repository_entry
-                        .current_merge_conflicts
-                        .as_ref()
-                        .map(|conflicts| serde_json::from_str(&conflicts))
-                        .transpose()?
-                        .unwrap_or_default();
-
-                    let branch_summary = db_repository_entry
-                        .branch_summary
-                        .as_ref()
-                        .map(|branch_summary| serde_json::from_str(&branch_summary))
-                        .transpose()?
-                        .unwrap_or_default();
-
-                    worktree.repository_entries.insert(
-                        db_repository_entry.work_directory_id as u64,
-                        proto::RepositoryEntry {
-                            work_directory_id: db_repository_entry.work_directory_id as u64,
-                            branch: db_repository_entry.branch,
-                            updated_statuses,
-                            removed_statuses: Vec::new(),
-                            current_merge_conflicts,
-                            branch_summary,
-                        },
-                    );
+                } else {
+                    repositories.push(proto::UpdateRepository {
+                        project_id: db_repository_entry.project_id.0 as u64,
+                        id: db_repository_entry.id as u64,
+                        abs_path: db_repository_entry.abs_path,
+                        entry_ids,
+                        updated_statuses,
+                        removed_statuses: Vec::new(),
+                        current_merge_conflicts,
+                        branch_summary,
+                        scan_id: db_repository_entry.scan_id as u64,
+                    });
                }
            }
        }
@@ -871,6 +1018,7 @@ impl Database {
                })
                .collect(),
            worktrees,
+            repositories,
            language_servers: language_servers
                .into_iter()
                .map(|language_server| proto::LanguageServer {
--- a/crates/collab/src/db/queries/rooms.rs
+++ b/crates/collab/src/db/queries/rooms.rs
@@ -1,3 +1,5 @@
+use anyhow::Context as _;
+
 use super::*;

 impl Database {
@@ -606,6 +608,11 @@ impl Database {

        let mut worktrees = Vec::new();
        let db_worktrees = project.find_related(worktree::Entity).all(tx).await?;
+        let db_repos = project
+            .find_related(project_repository::Entity)
+            .all(tx)
+            .await?;
+
        for db_worktree in db_worktrees {
            let mut worktree = RejoinedWorktree {
                id: db_worktree.id as u64,
@@ -673,96 +680,112 @@ impl Database {
                }
            }

-            // Repository Entries
-            {
-                let repository_entry_filter = if let Some(rejoined_worktree) = rejoined_worktree {
-                    worktree_repository::Column::ScanId.gt(rejoined_worktree.scan_id)
+            worktrees.push(worktree);
+        }
+
+        let mut removed_repositories = Vec::new();
+        let mut updated_repositories = Vec::new();
+        for db_repo in db_repos {
+            let rejoined_repository = rejoined_project
+                .repositories
+                .iter()
+                .find(|repo| repo.id == db_repo.id as u64);
+
+            let repository_filter = if let Some(rejoined_repository) = rejoined_repository {
+                project_repository::Column::ScanId.gt(rejoined_repository.scan_id)
+            } else {
+                project_repository::Column::IsDeleted.eq(false)
+            };
+
+            let db_repositories = project_repository::Entity::find()
+                .filter(
+                    Condition::all()
+                        .add(project_repository::Column::ProjectId.eq(project.id))
+                        .add(repository_filter),
+                )
+                .all(tx)
+                .await?;
+
+            for db_repository in db_repositories.into_iter() {
+                if db_repository.is_deleted {
+                    removed_repositories.push(db_repository.id as u64);
                } else {
-                    worktree_repository::Column::IsDeleted.eq(false)
-                };
-
-                let db_repositories = worktree_repository::Entity::find()
-                    .filter(
-                        Condition::all()
-                            .add(worktree_repository::Column::ProjectId.eq(project.id))
-                            .add(worktree_repository::Column::WorktreeId.eq(worktree.id))
-                            .add(repository_entry_filter),
-                    )
-                    .all(tx)
-                    .await?;
-
-                for db_repository in db_repositories.into_iter() {
-                    if db_repository.is_deleted {
-                        worktree
-                            .removed_repositories
-                            .push(db_repository.work_directory_id as u64);
+                    let status_entry_filter = if let Some(rejoined_repository) = rejoined_repository
+                    {
+                        project_repository_statuses::Column::ScanId.gt(rejoined_repository.scan_id)
                    } else {
-                        let status_entry_filter = if let Some(rejoined_worktree) = rejoined_worktree
-                        {
-                            worktree_repository_statuses::Column::ScanId
-                                .gt(rejoined_worktree.scan_id)
+                        project_repository_statuses::Column::IsDeleted.eq(false)
+                    };
+
+                    let mut db_statuses = project_repository_statuses::Entity::find()
+                        .filter(
+                            Condition::all()
+                                .add(project_repository_statuses::Column::ProjectId.eq(project.id))
+                                .add(
+                                    project_repository_statuses::Column::RepositoryId
+                                        .eq(db_repository.id),
+                                )
+                                .add(status_entry_filter),
+                        )
+                        .stream(tx)
+                        .await?;
+                    let mut removed_statuses = Vec::new();
+                    let mut updated_statuses = Vec::new();
+
+                    while let Some(db_status) = db_statuses.next().await {
+                        let db_status: project_repository_statuses::Model = db_status?;
+                        if db_status.is_deleted {
+                            removed_statuses.push(db_status.repo_path);
                        } else {
-                            worktree_repository_statuses::Column::IsDeleted.eq(false)
-                        };
-
-                        let mut db_statuses = worktree_repository_statuses::Entity::find()
-                            .filter(
-                                Condition::all()
-                                    .add(
-                                        worktree_repository_statuses::Column::ProjectId
-                                            .eq(project.id),
-                                    )
-                                    .add(
-                                        worktree_repository_statuses::Column::WorktreeId
-                                            .eq(worktree.id),
-                                    )
-                                    .add(
-                                        worktree_repository_statuses::Column::WorkDirectoryId
-                                            .eq(db_repository.work_directory_id),
-                                    )
-                                    .add(status_entry_filter),
-                            )
-                            .stream(tx)
-                            .await?;
-                        let mut removed_statuses = Vec::new();
-                        let mut updated_statuses = Vec::new();
-
-                        while let Some(db_status) = db_statuses.next().await {
-                            let db_status: worktree_repository_statuses::Model = db_status?;
-                            if db_status.is_deleted {
-                                removed_statuses.push(db_status.repo_path);
-                            } else {
-                                updated_statuses.push(db_status_to_proto(db_status)?);
-                            }
+                            updated_statuses.push(db_status_to_proto(db_status)?);
                        }
+                    }

-                        let current_merge_conflicts = db_repository
-                            .current_merge_conflicts
-                            .as_ref()
-                            .map(|conflicts| serde_json::from_str(&conflicts))
-                            .transpose()?
-                            .unwrap_or_default();
+                    let current_merge_conflicts = db_repository
+                        .current_merge_conflicts
+                        .as_ref()
+                        .map(|conflicts| serde_json::from_str(&conflicts))
+                        .transpose()?
+                        .unwrap_or_default();

-                        let branch_summary = db_repository
-                            .branch_summary
-                            .as_ref()
-                            .map(|branch_summary| serde_json::from_str(&branch_summary))
-                            .transpose()?
-                            .unwrap_or_default();
+                    let branch_summary = db_repository
+                        .branch_summary
+                        .as_ref()
+                        .map(|branch_summary| serde_json::from_str(&branch_summary))
+                        .transpose()?
+                        .unwrap_or_default();

-                        worktree.updated_repositories.push(proto::RepositoryEntry {
-                            work_directory_id: db_repository.work_directory_id as u64,
-                            branch: db_repository.branch,
+                    let entry_ids = serde_json::from_str(&db_repository.entry_ids)
+                        .context("failed to deserialize repository's entry ids")?;
+
+                    if let Some(legacy_worktree_id) = db_repository.legacy_worktree_id {
+                        if let Some(worktree) = worktrees
+                            .iter_mut()
+                            .find(|worktree| worktree.id as i64 == legacy_worktree_id)
+                        {
+                            worktree.updated_repositories.push(proto::RepositoryEntry {
+                                work_directory_id: db_repository.id as u64,
+                                updated_statuses,
+                                removed_statuses,
+                                current_merge_conflicts,
+                                branch_summary,
+                            });
+                        }
+                    } else {
+                        updated_repositories.push(proto::UpdateRepository {
+                            entry_ids,
                            updated_statuses,
                            removed_statuses,
                            current_merge_conflicts,
                            branch_summary,
+                            project_id: project_id.to_proto(),
+                            id: db_repository.id as u64,
+                            abs_path: db_repository.abs_path,
+                            scan_id: db_repository.scan_id as u64,
                        });
                    }
                }
            }
-
-            worktrees.push(worktree);
        }

        let language_servers = project
@@ -832,6 +855,8 @@ impl Database {
            id: project_id,
            old_connection_id,
            collaborators,
+            updated_repositories,
+            removed_repositories,
            worktrees,
            language_servers,
        }))
--- a/crates/collab/src/db/tables.rs
+++ b/crates/collab/src/db/tables.rs
@@ -26,6 +26,8 @@ pub mod observed_channel_messages;
 pub mod processed_stripe_event;
 pub mod project;
 pub mod project_collaborator;
+pub mod project_repository;
+pub mod project_repository_statuses;
 pub mod rate_buckets;
 pub mod room;
 pub mod room_participant;
@@ -36,6 +38,4 @@ pub mod user_feature;
 pub mod worktree;
 pub mod worktree_diagnostic_summary;
 pub mod worktree_entry;
-pub mod worktree_repository;
-pub mod worktree_repository_statuses;
 pub mod worktree_settings_file;
--- a/crates/collab/src/db/tables/project.rs
+++ b/crates/collab/src/db/tables/project.rs
@@ -45,6 +45,8 @@ pub enum Relation {
    Room,
    #[sea_orm(has_many = "super::worktree::Entity")]
    Worktrees,
+    #[sea_orm(has_many = "super::project_repository::Entity")]
+    Repositories,
    #[sea_orm(has_many = "super::project_collaborator::Entity")]
    Collaborators,
    #[sea_orm(has_many = "super::language_server::Entity")]
@@ -69,6 +71,12 @@ impl Related<super::worktree::Entity> for Entity {
    }
 }

+impl Related<super::project_repository::Entity> for Entity {
+    fn to() -> RelationDef {
+        Relation::Repositories.def()
+    }
+}
+
 impl Related<super::project_collaborator::Entity> for Entity {
    fn to() -> RelationDef {
        Relation::Collaborators.def()
--- 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>