Bump to 0.183.13 for @osiewicz

Revert "python: Enable subroot detection for pylsp and pyright (#27364 )" (cherry-pick #29658 ) (#29662 )
Cherry-picked Revert "python: Enable subroot detection for pylsp and pyright (#27364)" (#29658) This reverts commit e661a0afd6. Closes #ISSUE Release Notes: - Reverted changes to Python subroot detection which could have caused multiple python processes to be spawned when working in projects with multiple `pyproject.toml` files. Co-authored-by: Piotr Osiewicz <24362066+osiewicz@users.noreply.github.com>
2025-04-30 11:04:01 +00:00 · 2025-04-30 12:59:47 +02:00 · 2025-04-29 09:13:40 -04:00 · 2025-04-29 09:10:45 -04:00 · 2025-04-28 21:49:13 -04:00 · 2025-04-28 21:47:14 -04:00
241 changed files with 11045 additions and 4309 deletions
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -125,6 +125,7 @@ dependencies = [
 "workspace",
 "workspace-hack",
 "zed_actions",
+ "zed_llm_client",
 ]

 [[package]]
@@ -324,7 +325,7 @@ dependencies = [
 "schemars",
 "serde",
 "serde_json",
- "strum",
+ "strum 0.27.1",
 "thiserror 2.0.12",
 "workspace-hack",
 ]
@@ -567,7 +568,7 @@ dependencies = [
 "settings",
 "smallvec",
 "smol",
- "strum",
+ "strum 0.27.1",
 "telemetry_events",
 "text",
 "theme",
@@ -704,26 +705,35 @@ dependencies = [
 "assistant_tool",
 "chrono",
 "collections",
+ "component",
+ "feature_flags",
 "futures 0.3.31",
 "gpui",
 "html_to_markdown",
 "http_client",
+ "indoc",
 "itertools 0.14.0",
 "language",
 "language_model",
+ "linkme",
 "open",
+ "pretty_assertions",
 "project",
 "rand 0.8.5",
 "regex",
 "schemars",
 "serde",
 "serde_json",
+ "settings",
+ "tree-sitter-rust",
 "ui",
 "unindent",
 "util",
+ "web_search",
 "workspace",
 "workspace-hack",
 "worktree",
+ "zed_llm_client",
 ]

 [[package]]
@@ -1881,7 +1891,7 @@ dependencies = [
 "schemars",
 "serde",
 "serde_json",
- "strum",
+ "strum 0.27.1",
 "thiserror 2.0.12",
 "tokio",
 "workspace-hack",
@@ -3028,7 +3038,7 @@ dependencies = [
 "settings",
 "sha2",
 "sqlx",
- "strum",
+ "strum 0.27.1",
 "subtle",
 "supermaven_api",
 "telemetry_events",
@@ -3048,6 +3058,7 @@ dependencies = [
 "workspace",
 "workspace-hack",
 "worktree",
+ "zed_llm_client",
 ]

 [[package]]
@@ -3360,7 +3371,7 @@ dependencies = [
 "serde",
 "serde_json",
 "settings",
- "strum",
+ "strum 0.27.1",
 "task",
 "theme",
 "ui",
@@ -4477,7 +4488,7 @@ dependencies = [
 "optfield",
 "proc-macro2",
 "quote",
- "strum",
+ "strum 0.26.3",
 "syn 2.0.100",
 ]

@@ -4906,6 +4917,7 @@ dependencies = [
 "release_channel",
 "reqwest_client",
 "serde",
+ "serde_json",
 "settings",
 "shellexpand 2.1.2",
 "telemetry",
@@ -5122,7 +5134,7 @@ dependencies = [
 "serde",
 "settings",
 "smallvec",
- "strum",
+ "strum 0.27.1",
 "telemetry",
 "theme",
 "ui",
@@ -5973,7 +5985,7 @@ dependencies = [
 "serde_derive",
 "serde_json",
 "settings",
- "strum",
+ "strum 0.27.1",
 "telemetry",
 "theme",
 "time",
@@ -6066,7 +6078,7 @@ dependencies = [
 "schemars",
 "serde",
 "serde_json",
- "strum",
+ "strum 0.27.1",
 "workspace-hack",
 ]

@@ -6172,7 +6184,7 @@ dependencies = [
 "slotmap",
 "smallvec",
 "smol",
- "strum",
+ "strum 0.27.1",
 "sum_tree",
 "taffy",
 "thiserror 2.0.12",
@@ -6820,7 +6832,7 @@ name = "icons"
 version = "0.1.0"
 dependencies = [
 "serde",
- "strum",
+ "strum 0.27.1",
 "workspace-hack",
 ]

@@ -7088,7 +7100,7 @@ dependencies = [
 "paths",
 "pretty_assertions",
 "serde",
- "strum",
+ "strum 0.27.1",
 "util",
 "workspace-hack",
 ]
@@ -7666,7 +7678,6 @@ dependencies = [
 "http_client",
 "icons",
 "image",
- "log",
 "open_ai",
 "parking_lot",
 "proto",
@@ -7674,11 +7685,12 @@ dependencies = [
 "serde",
 "serde_json",
 "smol",
- "strum",
+ "strum 0.27.1",
 "telemetry_events",
 "thiserror 2.0.12",
 "util",
 "workspace-hack",
+ "zed_llm_client",
 ]

 [[package]]
@@ -7727,6 +7739,7 @@ dependencies = [
 "mistral",
 "ollama",
 "open_ai",
+ "partial-json-fixer",
 "project",
 "proto",
 "schemars",
@@ -7734,7 +7747,7 @@ dependencies = [
 "serde_json",
 "settings",
 "smol",
- "strum",
+ "strum 0.27.1",
 "theme",
 "thiserror 2.0.12",
 "tiktoken-rs",
@@ -7742,6 +7755,7 @@ dependencies = [
 "ui",
 "util",
 "workspace-hack",
+ "zed_llm_client",
 ]

 [[package]]
@@ -8706,7 +8720,7 @@ dependencies = [
 "schemars",
 "serde",
 "serde_json",
- "strum",
+ "strum 0.27.1",
 "workspace-hack",
 ]

@@ -9553,7 +9567,7 @@ dependencies = [
 "schemars",
 "serde",
 "serde_json",
- "strum",
+ "strum 0.27.1",
 "workspace-hack",
 ]

@@ -9841,6 +9855,12 @@ dependencies = [
 "windows-targets 0.52.6",
 ]

+[[package]]
+name = "partial-json-fixer"
+version = "0.5.3"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "35ffd90b3f3b6477db7478016b9efb1b7e9d38eafd095f0542fe0ec2ea884a13"
+
 [[package]]
 name = "password-hash"
 version = "0.4.2"
@@ -12132,7 +12152,7 @@ dependencies = [
 "serde",
 "serde_json",
 "sha2",
- "strum",
+ "strum 0.27.1",
 "tracing",
 "util",
 "workspace-hack",
@@ -12660,7 +12680,7 @@ dependencies = [
 "serde",
 "serde_json",
 "sqlx",
- "strum",
+ "strum 0.26.3",
 "thiserror 2.0.12",
 "time",
 "tracing",
@@ -13325,6 +13345,7 @@ dependencies = [
 "fs",
 "futures 0.3.31",
 "gpui",
+ "indoc",
 "parking_lot",
 "paths",
 "schemars",
@@ -13705,7 +13726,7 @@ dependencies = [
 "settings",
 "simplelog",
 "story",
- "strum",
+ "strum 0.27.1",
 "theme",
 "title_bar",
 "ui",
@@ -13787,7 +13808,16 @@ version = "0.26.3"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "8fec0f0aef304996cf250b31b5a10dee7980c85da9d759361292b8bca5a18f06"
 dependencies = [
- "strum_macros",
+ "strum_macros 0.26.4",
+]
+
+[[package]]
+name = "strum"
+version = "0.27.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "f64def088c51c9510a8579e3c5d67c65349dcf755e5479ad3d010aa6454e2c32"
+dependencies = [
+ "strum_macros 0.27.1",
 ]

 [[package]]
@@ -13803,6 +13833,19 @@ dependencies = [
 "syn 2.0.100",
 ]

+[[package]]
+name = "strum_macros"
+version = "0.27.1"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "c77a8c5abcaf0f9ce05d62342b7d298c346515365c36b673df4ebe3ced01fde8"
+dependencies = [
+ "heck 0.5.0",
+ "proc-macro2",
+ "quote",
+ "rustversion",
+ "syn 2.0.100",
+]
+
 [[package]]
 name = "subtle"
 version = "2.6.1"
@@ -14418,7 +14461,7 @@ dependencies = [
 "serde_json_lenient",
 "serde_repr",
 "settings",
- "strum",
+ "strum 0.27.1",
 "thiserror 2.0.12",
 "util",
 "uuid",
@@ -14452,7 +14495,7 @@ dependencies = [
 "serde_json",
 "serde_json_lenient",
 "simplelog",
- "strum",
+ "strum 0.27.1",
 "theme",
 "vscode_theme",
 "workspace-hack",
@@ -15453,7 +15496,7 @@ dependencies = [
 "settings",
 "smallvec",
 "story",
- "strum",
+ "strum 0.27.1",
 "theme",
 "ui_macros",
 "util",
@@ -16586,6 +16629,36 @@ dependencies = [
 "wasm-bindgen",
 ]

+[[package]]
+name = "web_search"
+version = "0.1.0"
+dependencies = [
+ "anyhow",
+ "collections",
+ "gpui",
+ "serde",
+ "workspace-hack",
+ "zed_llm_client",
+]
+
+[[package]]
+name = "web_search_providers"
+version = "0.1.0"
+dependencies = [
+ "anyhow",
+ "client",
+ "feature_flags",
+ "futures 0.3.31",
+ "gpui",
+ "http_client",
+ "language_model",
+ "serde",
+ "serde_json",
+ "web_search",
+ "workspace-hack",
+ "zed_llm_client",
+]
+
 [[package]]
 name = "webpki-root-certs"
 version = "0.26.8"
@@ -17624,7 +17697,7 @@ dependencies = [
 "settings",
 "smallvec",
 "sqlez",
- "strum",
+ "strum 0.27.1",
 "task",
 "telemetry",
 "tempfile",
@@ -17769,7 +17842,7 @@ dependencies = [
 "sqlx-macros-core",
 "sqlx-postgres",
 "sqlx-sqlite",
- "strum",
+ "strum 0.26.3",
 "subtle",
 "syn 1.0.109",
 "syn 2.0.100",
@@ -18141,7 +18214,7 @@ dependencies = [

 [[package]]
 name = "zed"
-version = "0.183.0"
+version = "0.183.13"
 dependencies = [
 "activity_indicator",
 "agent",
@@ -18264,6 +18337,8 @@ dependencies = [
 "uuid",
 "vim",
 "vim_mode_setting",
+ "web_search",
+ "web_search_providers",
 "welcome",
 "windows 0.61.1",
 "winresource",
@@ -18282,6 +18357,7 @@ dependencies = [
 "gpui",
 "schemars",
 "serde",
+ "uuid",
 "workspace-hack",
 ]

@@ -18328,12 +18404,14 @@ dependencies = [

 [[package]]
 name = "zed_llm_client"
-version = "0.4.1"
+version = "0.6.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "1bf21350eced858d129840589158a8f6895c4fa4327ae56dd8c7d6a98495bed4"
+checksum = "ad17428120f5ca776dc5195e2411a282f5150a26d5536671f8943c622c31274f"
 dependencies = [
+ "anyhow",
 "serde",
 "serde_json",
+ "strum 0.27.1",
 "uuid",
 ]

--- a/Cargo.toml
+++ b/Cargo.toml
@@ -165,6 +165,8 @@ members = [
    "crates/util_macros",
    "crates/vim",
    "crates/vim_mode_setting",
+    "crates/web_search",
+    "crates/web_search_providers",
    "crates/welcome",
    "crates/workspace",
    "crates/worktree",
@@ -370,6 +372,8 @@ util = { path = "crates/util" }
 util_macros = { path = "crates/util_macros" }
 vim = { path = "crates/vim" }
 vim_mode_setting = { path = "crates/vim_mode_setting" }
+web_search = { path = "crates/web_search" }
+web_search_providers = { path = "crates/web_search_providers" }
 welcome = { path = "crates/welcome" }
 workspace = { path = "crates/workspace" }
 worktree = { path = "crates/worktree" }
@@ -477,6 +481,7 @@ num-format = "0.4.4"
 ordered-float = "2.1.1"
 palette = { version = "0.7.5", default-features = false, features = ["std"] }
 parking_lot = "0.12.1"
+partial-json-fixer = "0.5.3"
 pathdiff = "0.2"
 pet = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "845945b830297a50de0e24020b980a65e4820559" }
 pet-fs = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "845945b830297a50de0e24020b980a65e4820559" }
@@ -536,7 +541,7 @@ smol = "2.0"
 sqlformat = "0.2"
 streaming-iterator = "0.1"
 strsim = "0.11"
-strum = { version = "0.26.0", features = ["derive"] }
+strum = { version = "0.27.0", features = ["derive"] }
 subtle = "2.5.0"
 syn = { version = "1.0.72", features = ["full", "extra-traits"] }
 sys-locale = "0.3.1"
@@ -601,7 +606,7 @@ wasmtime-wasi = "29"
 which = "6.0.0"
 wit-component = "0.221"
 workspace-hack = "0.1.0"
-zed_llm_client = "0.4"
+zed_llm_client = "0.6.1"
 zstd = "0.11"
 metal = "0.29"

--- a/assets/icons/image.svg
+++ b/assets/icons/image.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-image-icon lucide-image"><rect width="18" height="18" x="3" y="3" rx="2" ry="2"/><circle cx="9" cy="9" r="2"/><path d="m21 15-3.086-3.086a2 2 0 0 0-2.828 0L6 21"/></svg>
--- a/assets/keymaps/default-linux.json
+++ b/assets/keymaps/default-linux.json
@@ -49,15 +49,6 @@
      "down": "menu::SelectNext"
    }
  },
-  {
-    "context": "Prompt",
-    "bindings": {
-      "left": "menu::SelectPrevious",
-      "right": "menu::SelectNext",
-      "h": "menu::SelectPrevious",
-      "l": "menu::SelectNext"
-    }
-  },
  {
    "context": "Editor",
    "bindings": {
@@ -137,24 +128,6 @@
      "shift-f9": "editor::EditLogBreakpoint"
    }
  },
-  {
-    "context": "Editor && !agent_diff",
-    "bindings": {
-      "ctrl-k ctrl-r": "git::Restore",
-      "ctrl-alt-y": "git::ToggleStaged",
-      "alt-y": "git::StageAndNext",
-      "alt-shift-y": "git::UnstageAndNext"
-    }
-  },
-  {
-    "context": "AgentDiff",
-    "bindings": {
-      "ctrl-y": "agent::Keep",
-      "ctrl-n": "agent::Reject",
-      "ctrl-shift-y": "agent::KeepAll",
-      "ctrl-shift-n": "agent::RejectAll"
-    }
-  },
  {
    "context": "Editor && mode == full",
    "bindings": {
@@ -203,6 +176,31 @@
      "ctrl-c": "markdown::Copy"
    }
  },
+  {
+    "context": "Editor && jupyter && !ContextEditor",
+    "bindings": {
+      "ctrl-shift-enter": "repl::Run",
+      "ctrl-alt-enter": "repl::RunInPlace"
+    }
+  },
+  {
+    "context": "Editor && !agent_diff",
+    "bindings": {
+      "ctrl-k ctrl-r": "git::Restore",
+      "ctrl-alt-y": "git::ToggleStaged",
+      "alt-y": "git::StageAndNext",
+      "alt-shift-y": "git::UnstageAndNext"
+    }
+  },
+  {
+    "context": "AgentDiff",
+    "bindings": {
+      "ctrl-y": "agent::Keep",
+      "ctrl-n": "agent::Reject",
+      "ctrl-shift-y": "agent::KeepAll",
+      "ctrl-shift-n": "agent::RejectAll"
+    }
+  },
  {
    "context": "AssistantPanel",
    "bindings": {
@@ -218,6 +216,93 @@
      "ctrl-n": "assistant::NewChat"
    }
  },
+  {
+    "context": "ContextEditor > Editor",
+    "bindings": {
+      "ctrl-enter": "assistant::Assist",
+      "ctrl-shift-enter": "assistant::Edit",
+      "ctrl-s": "workspace::Save",
+      "save": "workspace::Save",
+      "ctrl->": "assistant::QuoteSelection",
+      "ctrl-<": "assistant::InsertIntoEditor",
+      "ctrl-alt-/": "assistant::ToggleModelSelector",
+      "shift-enter": "assistant::Split",
+      "ctrl-r": "assistant::CycleMessageRole",
+      "enter": "assistant::ConfirmCommand",
+      "alt-enter": "editor::Newline"
+    }
+  },
+  {
+    "context": "AgentPanel",
+    "bindings": {
+      "ctrl-n": "agent::NewThread",
+      "ctrl-alt-n": "agent::NewTextThread",
+      "ctrl-shift-h": "agent::OpenHistory",
+      "ctrl-alt-c": "agent::OpenConfiguration",
+      "ctrl-alt-p": "assistant::OpenPromptLibrary",
+      "ctrl-i": "agent::ToggleProfileSelector",
+      "ctrl-alt-/": "assistant::ToggleModelSelector",
+      "ctrl-shift-a": "agent::ToggleContextPicker",
+      "shift-escape": "agent::ExpandMessageEditor",
+      "ctrl-e": "agent::ChatMode",
+      "ctrl-alt-e": "agent::RemoveAllContext"
+    }
+  },
+  {
+    "context": "AgentPanel > Markdown",
+    "bindings": {
+      "copy": "markdown::CopyAsMarkdown",
+      "ctrl-c": "markdown::CopyAsMarkdown"
+    }
+  },
+  {
+    "context": "AgentPanel && prompt_editor",
+    "bindings": {
+      "cmd-n": "agent::NewTextThread",
+      "cmd-alt-t": "agent::NewThread"
+    }
+  },
+  {
+    "context": "MessageEditor > Editor",
+    "bindings": {
+      "enter": "agent::Chat",
+      "ctrl-i": "agent::ToggleProfileSelector",
+      "shift-ctrl-r": "agent::OpenAgentDiff"
+    }
+  },
+  {
+    "context": "EditMessageEditor > Editor",
+    "bindings": {
+      "escape": "menu::Cancel",
+      "enter": "menu::Confirm",
+      "alt-enter": "editor::Newline"
+    }
+  },
+  {
+    "context": "AgentFeedbackMessageEditor > Editor",
+    "bindings": {
+      "escape": "menu::Cancel",
+      "enter": "menu::Confirm",
+      "alt-enter": "editor::Newline"
+    }
+  },
+  {
+    "context": "ContextStrip",
+    "bindings": {
+      "up": "agent::FocusUp",
+      "right": "agent::FocusRight",
+      "left": "agent::FocusLeft",
+      "down": "agent::FocusDown",
+      "backspace": "agent::RemoveFocusedContext",
+      "enter": "agent::AcceptSuggestedContext"
+    }
+  },
+  {
+    "context": "ThreadHistory",
+    "bindings": {
+      "backspace": "agent::RemoveSelectedThread"
+    }
+  },
  {
    "context": "PromptLibrary",
    "bindings": {
@@ -588,7 +673,7 @@
    }
  },
  {
-    "context": "Editor && mode == full",
+    "context": "!ContextEditor > Editor && mode == full",
    "bindings": {
      "alt-enter": "editor::OpenExcerpts",
      "shift-enter": "editor::ExpandExcerpts",
@@ -600,99 +685,6 @@
      "ctrl-:": "editor::ToggleInlayHints"
    }
  },
-  {
-    "context": "Editor && jupyter && !ContextEditor",
-    "bindings": {
-      "ctrl-shift-enter": "repl::Run",
-      "ctrl-alt-enter": "repl::RunInPlace"
-    }
-  },
-  {
-    "context": "ContextEditor > Editor",
-    "bindings": {
-      "ctrl-enter": "assistant::Assist",
-      "ctrl-shift-enter": "assistant::Edit",
-      "ctrl-s": "workspace::Save",
-      "save": "workspace::Save",
-      "ctrl->": "assistant::QuoteSelection",
-      "ctrl-<": "assistant::InsertIntoEditor",
-      "ctrl-alt-/": "assistant::ToggleModelSelector",
-      "shift-enter": "assistant::Split",
-      "ctrl-r": "assistant::CycleMessageRole",
-      "enter": "assistant::ConfirmCommand",
-      "alt-enter": "editor::Newline"
-    }
-  },
-  {
-    "context": "AgentPanel",
-    "bindings": {
-      "ctrl-n": "agent::NewThread",
-      "ctrl-alt-n": "agent::NewTextThread",
-      "ctrl-shift-h": "agent::OpenHistory",
-      "ctrl-alt-c": "agent::OpenConfiguration",
-      "ctrl-i": "agent::ToggleProfileSelector",
-      "ctrl-alt-/": "assistant::ToggleModelSelector",
-      "ctrl-shift-a": "agent::ToggleContextPicker",
-      "shift-escape": "agent::ExpandMessageEditor",
-      "ctrl-e": "agent::ChatMode",
-      "ctrl-alt-e": "agent::RemoveAllContext"
-    }
-  },
-  {
-    "context": "AgentPanel > Markdown",
-    "bindings": {
-      "copy": "markdown::CopyAsMarkdown",
-      "ctrl-c": "markdown::CopyAsMarkdown"
-    }
-  },
-  {
-    "context": "AgentPanel && prompt_editor",
-    "bindings": {
-      "cmd-n": "agent::NewTextThread",
-      "cmd-alt-t": "agent::NewThread"
-    }
-  },
-  {
-    "context": "MessageEditor > Editor",
-    "bindings": {
-      "enter": "agent::Chat",
-      "ctrl-i": "agent::ToggleProfileSelector",
-      "shift-ctrl-r": "agent::OpenAgentDiff"
-    }
-  },
-  {
-    "context": "EditMessageEditor > Editor",
-    "bindings": {
-      "escape": "menu::Cancel",
-      "enter": "menu::Confirm",
-      "alt-enter": "editor::Newline"
-    }
-  },
-  {
-    "context": "AgentFeedbackMessageEditor > Editor",
-    "bindings": {
-      "escape": "menu::Cancel",
-      "enter": "menu::Confirm",
-      "alt-enter": "editor::Newline"
-    }
-  },
-  {
-    "context": "ContextStrip",
-    "bindings": {
-      "up": "agent::FocusUp",
-      "right": "agent::FocusRight",
-      "left": "agent::FocusLeft",
-      "down": "agent::FocusDown",
-      "backspace": "agent::RemoveFocusedContext",
-      "enter": "agent::AcceptSuggestedContext"
-    }
-  },
-  {
-    "context": "ThreadHistory",
-    "bindings": {
-      "backspace": "agent::RemoveSelectedThread"
-    }
-  },
  {
    "context": "PromptEditor",
    "bindings": {
@@ -701,6 +693,15 @@
      "ctrl-alt-e": "agent::RemoveAllContext"
    }
  },
+  {
+    "context": "Prompt",
+    "bindings": {
+      "left": "menu::SelectPrevious",
+      "right": "menu::SelectNext",
+      "h": "menu::SelectPrevious",
+      "l": "menu::SelectNext"
+    }
+  },
  {
    "context": "ProjectSearchBar && !in_replace",
    "bindings": {
--- a/assets/keymaps/default-macos.json
+++ b/assets/keymaps/default-macos.json
@@ -286,6 +286,7 @@
      "cmd-alt-n": "agent::NewTextThread",
      "cmd-shift-h": "agent::OpenHistory",
      "cmd-alt-c": "agent::OpenConfiguration",
+      "cmd-alt-p": "assistant::OpenPromptLibrary",
      "cmd-i": "agent::ToggleProfileSelector",
      "cmd-alt-/": "assistant::ToggleModelSelector",
      "cmd-shift-a": "agent::ToggleContextPicker",
@@ -735,7 +736,7 @@
    }
  },
  {
-    "context": "Editor && mode == full",
+    "context": "!ContextEditor > Editor && mode == full",
    "use_key_equivalents": true,
    "bindings": {
      "alt-enter": "editor::OpenExcerpts",
--- a/assets/keymaps/vim.json
+++ b/assets/keymaps/vim.json
@@ -830,5 +830,13 @@
      // and Windows.
      "alt-l": "editor::AcceptEditPrediction"
    }
+  },
+  {
+    // Fixes https://github.com/zed-industries/zed/issues/29095 by ensuring that
+    // the last binding for editor::ToggleComments is not ctrl-c.
+    "context": "hack_to_fix_ctrl-c",
+    "bindings": {
+      "g c": "editor::ToggleComments"
+    }
  }
 ]
--- a/assets/prompts/assistant_system_prompt.hbs
+++ b/assets/prompts/assistant_system_prompt.hbs
@@ -1,162 +1,71 @@
-You are an AI assistant integrated into a code editor. You have the programming ability of an expert programmer who takes pride in writing high-quality code and is driven to the point of obsession about solving problems effectively. Your goal is to do one of the following two things:
+You are a highly skilled software engineer with extensive knowledge in many programming languages, frameworks, design patterns, and best practices.

-1. Help users answer questions and perform tasks related to their codebase.
-2. Answer general-purpose questions unrelated to their particular codebase.
+## Communication

-It will be up to you to decide which of these you are doing based on what the user has told you. When unclear, ask clarifying questions to understand the user's intent before proceeding.
+1. Be conversational but professional.
+2. Refer to the USER in the second person and yourself in the first person.
+3. Format your responses in markdown. Use backticks to format file, directory, function, and class names.
+4. NEVER lie or make things up.
+5. Refrain from apologizing all the time when results are unexpected. Instead, just try your best to proceed or explain the circumstances to the user without apologizing.

-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.
+## Tool Use

-When answering questions, it's okay to give incomplete examples containing comments about what would go there in a real version. When being asked to directly perform tasks on the code base, you must ALWAYS make fully working code. You may never "simplify" the code by omitting or deleting functionality you know the user has requested, and you must NEVER write comments like "in a full version, this would..." - instead, you must actually implement the real version. Don't be lazy!
+1. Make sure to adhere to the tools schema.
+2. Provide every required argument.
+3. DO NOT use tools to access items that are already available in the context section.
+4. Use only the tools that are currently available.
+5. DO NOT use a tool that is not available just because it appears in the conversation. This means the user turned it off.

-Note that project files are automatically backed up. The user can always get them back later if anything goes wrong, so there's
-no need to create backup files (e.g. `.bak` files) because these files will just take up unnecessary space on the user's disk.
+## Searching and Reading

-When attempting to resolve issues around failing tests, never simply remove the failing tests. Unless the user explicitly asks you to remove tests, ALWAYS attempt to fix the code causing the tests to fail.
+If you are unsure how to fulfill the user's request, gather more information with tool calls and/or clarifying questions.

-Ignore "TODO"-type comments unless they're relevant to the user's explicit request or the user specifically asks you to address them. It is, however, okay to include them in codebase summaries.
-
-<style>
-Editing code:
- Make sure to take previous edits into account.
- The edits you perform might lead to 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.
- You may only attempt to fix these up to 3 times. If you have tried 3 times to fix them, and there are still problems remaining, you must not continue trying to fix them, and must instead tell the user that there are problems remaining - and ask if the user would like you to attempt to solve them further.
- Do not fix errors unrelated to your changes unless the user explicitly asks you to do so.
- Prefer to move files over recreating them. The move can be followed by minor edits if required.
- If you seem to be stuck, never go back and "simplify the implementation" by deleting the parts of the implementation you're stuck on and replacing them with comments. If you ever feel the urge to do this, instead immediately stop whatever you're doing (even if the code is in a broken state), report that you are stuck, explain what you're stuck on, and ask the user how to proceed.
-
-Tool use:
- Make sure to adhere to the tools schema.
- Provide every required argument.
- DO NOT use tools to access items that are already available in the context section.
- Use only the tools that are currently available.
- DO NOT use a tool that is not available just because it appears in the conversation. This means the user turned it off.
-
-Responding:
- Be concise and direct in your responses.
- Never apologize or thank the user.
- Don't comment that you have just realized or understood something.
- When you are going to make a tool call, tersely explain your reasoning for choosing to use that tool, with no flourishes or commentary beyond that information.
-    For example, rather than saying "You're absolutely right! Thank you for providing that context. Now I understand that we're missing a dependency, and I need to add it:" say "I'll add that missing dependency:" instead.
- Also, don't restate what a tool call is about to do (or just did).
-    For example, don't say "Now I'm going to check diagnostics to see if there are any warnings or errors," followed by running a tool which checks diagnostics and reports warnings or errors; instead, just request the tool call without saying anything.
- All tool results are provided to you automatically, so DO NOT thank the user when this happens.
-
-Whenever you mention a code block, you MUST use ONLY the following format:
-
-```language path/to/Something.blah#L123-456
-(code goes here)
-```
-
-The `#L123-456` means the line number range 123 through 456, and the path/to/Something.blah
-is a path in the project. (If there is no valid path in the project, then you can use
-/dev/null/path.extension for its path.) This is the ONLY valid way to format code blocks, because the Markdown parser
-does not understand the more common ```language syntax, or bare ``` blocks. It only
-understands this path-based syntax, and if the path is missing, then it will error and you will have to do it over again.
-
-Just to be really clear about this, if you ever find yourself writing three backticks followed by a language name, STOP!
-You have made a mistake. You can only ever put paths after triple backticks!
-
-<example>
-Based on all the information I've gathered, here's a summary of how this system works:
-1. The README file is loaded into the system.
-2. The system finds the first two headers, including everything in between. In this case, that would be:
-
-```path/to/README.md#L8-12
-# First Header
-
-This is the info under the first header.
-
-## Sub-header
-```
-
-3. Then the system finds the last header in the README:
-
-```path/to/README.md#L27-29
-## Last Header
-
-This is the last header in the README.
-```
-
-4. Finally, it passes this information on to the next process.
-</example>
-
-<example>
-In Markdown, hash marks signify headings. For example:
-
-```/dev/null/example.md#L1-3
-# Level 1 heading
-## Level 2 heading
-### Level 3 heading
-```
-</example>
-
-Here are examples of ways you must never render code blocks:
-
-<bad_example_do_not_do_this>
-In Markdown, hash marks signify headings. For example:
-
-```
-# Level 1 heading
-## Level 2 heading
-### Level 3 heading
-```
-</bad_example_do_not_do_this>
-
-This example is unacceptable because it does not include the path.
-
-<bad_example_do_not_do_this>
-In Markdown, hash marks signify headings. For example:
-
-```markdown
-# Level 1 heading
-## Level 2 heading
-### Level 3 heading
-```
-</bad_example_do_not_do_this>
-
-This example is unacceptable because it has the language instead of the path.
-
-<bad_example_do_not_do_this>
-In Markdown, hash marks signify headings. For example:
-
-    # Level 1 heading
-    ## Level 2 heading
-    ### Level 3 heading
-</bad_example_do_not_do_this>
-
-This example is unacceptable because it uses indentation to mark the code block
-instead of backticks with a path.
-
-<bad_example_do_not_do_this>
-In Markdown, hash marks signify headings. For example:
-
-```markdown
-/dev/null/example.md#L1-3
-# Level 1 heading
-## Level 2 heading
-### Level 3 heading
-```
-</bad_example_do_not_do_this>
-
-This example is unacceptable because the path is in the wrong place. The path must be directly after the opening backticks.
-</style>
-
-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:
+{{! TODO: If there are files, we should mention it but otherwise omit that fact }}
+If appropriate, use tool calls to explore the current project, which contains the following root directories:

 {{#each worktrees}}
- `{{root_name}}` (absolute path: `{{abs_path}}`)
+- `{{root_name}}`
 {{/each}}
-{{#if has_rules}}

-There are rules that apply to these root directories:
+- When providing paths to tools, the path should always begin with a path that starts with a project root directory listed above.
+- When looking for symbols in the project, prefer the `grep` tool.
+- As you learn about the structure of the project, use that information to scope `grep` searches to targeted subtrees of the project.
+- Bias towards not asking the user for help if you can find the answer yourself.
+
+## Fixing Diagnostics
+
+1. Make 1-2 attempts at fixing diagnostics, then defer to the user.
+2. Never simplify code you've written just to solve diagnostics. Complete, mostly correct code is more valuable than perfect code that doesn't solve the problem.
+
+## Debugging
+
+When debugging, only make code changes if you are certain that you can solve the problem.
+Otherwise, follow debugging best practices:
+1. Address the root cause instead of the symptoms.
+2. Add descriptive logging statements and error messages to track variable and code state.
+3. Add test functions and statements to isolate the problem.
+
+## Calling External APIs
+
+1. Unless explicitly requested by the user, use the best suited external APIs and packages to solve the task. There is no need to ask the user for permission.
+2. When selecting which version of an API or package to use, choose one that is compatible with the user's dependency management file. If no such file exists or if the package is not present, use the latest version that is in your training data.
+3. If an external API requires an API Key, be sure to point this out to the user. Adhere to best security practices (e.g. DO NOT hardcode an API key in a place where it can be exposed)
+
+## System Information
+
+Operating System: {{os}}
+Default Shell: {{shell}}
+
+{{#if (or has_rules has_default_user_rules)}}
+## User's Custom Instructions
+
+The following additional instructions are provided by the user, and should be followed to the best of your ability without interfering with the tool use guidelines.
+
+{{#if has_rules}}
+There are project rules that apply to these root directories:
 {{#each worktrees}}
 {{#if rules_file}}
-
 `{{root_name}}/{{rules_file.path_in_worktree}}`:
-
 ``````
 {{{rules_file.text}}}
 ``````
@@ -164,7 +73,16 @@ There are rules that apply to these root directories:
 {{/each}}
 {{/if}}

-<user_environment>
-Operating System: {{os}} ({{arch}})
-Shell: {{shell}}
-</user_environment>
+{{#if has_user_rules}}
+The user has specified the following rules that should be applied:
+{{#each user_rules}}
+
+{{#if title}}
+Rules title: {{title}}
+{{/if}}
+``````
+{{contents}}}
+``````
+{{/each}}
+{{/if}}
+{{/if}}
--- a/assets/settings/default.json
+++ b/assets/settings/default.json
@@ -181,8 +181,6 @@
  "current_line_highlight": "all",
  // Whether to highlight all occurrences of the selected text in an editor.
  "selection_highlight": true,
-  // The debounce delay before querying highlights based on the selected text.
-  "selection_highlight_debounce": 50,
  // The debounce delay before querying highlights from the language
  // server based on the current cursor location.
  "lsp_highlight_debounce": 75,
@@ -587,7 +585,6 @@
    //
    // Default: main
    "fallback_branch_name": "main",
-
    "scrollbar": {
      // When to show the scrollbar in the git panel.
      //
@@ -651,34 +648,36 @@
          "now": true,
          "path_search": true,
          "read_file": true,
-          "regex_search": true,
-          "thinking": true
+          "grep": true,
+          "thinking": true,
+          "web_search": true
        }
      },
      "write": {
        "name": "Write",
        "enable_all_context_servers": true,
        "tools": {
-          "terminal": true,
-          "batch_tool": true,
-          "code_actions": true,
-          "code_symbols": true,
-          "contents": true,
+          "batch_tool": false,
+          "code_actions": false,
+          "code_symbols": false,
+          "contents": false,
          "copy_path": false,
          "create_file": true,
          "delete_path": false,
          "diagnostics": true,
-          "find_replace_file": true,
+          "edit_file": true,
          "fetch": true,
-          "list_directory": false,
+          "list_directory": true,
          "move_path": false,
-          "now": true,
+          "now": false,
          "path_search": true,
          "read_file": true,
-          "regex_search": true,
-          "rename": true,
-          "symbol_info": true,
-          "thinking": true
+          "grep": true,
+          "rename": false,
+          "symbol_info": false,
+          "terminal": true,
+          "thinking": true,
+          "web_search": true
        }
      }
    },
@@ -1560,7 +1559,6 @@
  //   }
  // ]
  "ssh_connections": [],
-
  // Configures context servers for use in the Assistant.
  "context_servers": {},
  "debugger": {
--- a/crates/agent/Cargo.toml
+++ b/crates/agent/Cargo.toml
@@ -90,6 +90,7 @@ uuid.workspace = true
 workspace-hack.workspace = true
 workspace.workspace = true
 zed_actions.workspace = true
+zed_llm_client.workspace = true

 [dev-dependencies]
 buffer_diff = { workspace = true, features = ["test-support"] }
--- a/crates/agent/src/active_thread.rs
+++ b/crates/agent/src/active_thread.rs
--- a/crates/agent/src/agent_diff.rs
+++ b/crates/agent/src/agent_diff.rs
@@ -1,4 +1,4 @@
-use crate::{Keep, KeepAll, Reject, RejectAll, Thread, ThreadEvent};
+use crate::{Keep, KeepAll, Reject, RejectAll, Thread, ThreadEvent, ui::AnimatedLabel};
 use anyhow::Result;
 use buffer_diff::DiffHunkStatus;
 use collections::{HashMap, HashSet};
@@ -8,8 +8,8 @@ use editor::{
    scroll::Autoscroll,
 };
 use gpui::{
-    Action, AnyElement, AnyView, App, Entity, EventEmitter, FocusHandle, Focusable, SharedString,
-    Subscription, Task, WeakEntity, Window, prelude::*,
+    Action, AnyElement, AnyView, App, Empty, Entity, EventEmitter, FocusHandle, Focusable,
+    SharedString, Subscription, Task, WeakEntity, Window, prelude::*,
 };
 use language::{Capability, DiskState, OffsetRangeExt, Point};
 use multi_buffer::PathKey;
@@ -307,6 +307,10 @@ impl AgentDiff {
        window: &mut Window,
        cx: &mut Context<Self>,
    ) {
+        if self.thread.read(cx).is_generating() {
+            return;
+        }
+
        let snapshot = self.multibuffer.read(cx).snapshot(cx);
        let diff_hunks_in_ranges = self
            .editor
@@ -339,6 +343,10 @@ impl AgentDiff {
        window: &mut Window,
        cx: &mut Context<Self>,
    ) {
+        if self.thread.read(cx).is_generating() {
+            return;
+        }
+
        let snapshot = self.multibuffer.read(cx).snapshot(cx);
        let diff_hunks_in_ranges = self
            .editor
@@ -650,6 +658,11 @@ fn render_diff_hunk_controls(
    cx: &mut App,
 ) -> AnyElement {
    let editor = editor.clone();
+
+    if agent_diff.read(cx).thread.read(cx).is_generating() {
+        return Empty.into_any();
+    }
+
    h_flex()
        .h(line_height)
        .mr_0p5()
@@ -857,8 +870,14 @@ impl Render for AgentDiffToolbar {
            None => return div(),
        };

-        let is_empty = agent_diff.read(cx).multibuffer.read(cx).is_empty();
+        let is_generating = agent_diff.read(cx).thread.read(cx).is_generating();
+        if is_generating {
+            return div()
+                .w(rems(6.5625)) // Arbitrary 105px size—so the label doesn't dance around
+                .child(AnimatedLabel::new("Generating"));
+        }

+        let is_empty = agent_diff.read(cx).multibuffer.read(cx).is_empty();
        if is_empty {
            return div();
        }
@@ -922,6 +941,7 @@ mod tests {
            language::init(cx);
            Project::init_settings(cx);
            AssistantSettings::register(cx);
+            prompt_store::init(cx);
            thread_store::init(cx);
            workspace::init_settings(cx);
            ThemeSettings::register(cx);
@@ -951,7 +971,8 @@ mod tests {
                    cx,
                )
            })
-            .await;
+            .await
+            .unwrap();
        let thread = thread_store.update(cx, |store, cx| store.create_thread(cx));
        let action_log = thread.read_with(cx, |thread, _| thread.action_log().clone());

--- a/crates/agent/src/assistant.rs
+++ b/crates/agent/src/assistant.rs
@@ -40,7 +40,7 @@ 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};
+pub use crate::thread::{Message, Thread, ThreadEvent};
 pub use crate::thread_store::ThreadStore;
 pub use agent_diff::{AgentDiff, AgentDiffToolbar};

--- a/crates/agent/src/assistant_configuration.rs
+++ b/crates/agent/src/assistant_configuration.rs
@@ -16,7 +16,7 @@ use language_model::{LanguageModelProvider, LanguageModelProviderId, LanguageMod
 use settings::{Settings, update_settings_file};
 use ui::{
    Disclosure, Divider, DividerColor, ElevationIndex, Indicator, Scrollbar, ScrollbarState,
-    Switch, Tooltip, prelude::*,
+    Switch, SwitchColor, Tooltip, prelude::*,
 };
 use util::ResultExt as _;
 use zed_actions::ExtensionCategoryFilter;
@@ -132,7 +132,11 @@ impl AssistantConfiguration {
            .cloned();

        v_flex()
+            .pt_3()
+            .pb_1()
            .gap_1p5()
+            .border_t_1()
+            .border_color(cx.theme().colors().border.opacity(0.6))
            .child(
                h_flex()
                    .justify_between()
@@ -144,7 +148,7 @@ impl AssistantConfiguration {
                                    .size(IconSize::Small)
                                    .color(Color::Muted),
                            )
-                            .child(Label::new(provider_name.clone())),
+                            .child(Label::new(provider_name.clone()).size(LabelSize::Large)),
                    )
                    .when(provider.is_authenticated(cx), |parent| {
                        parent.child(
@@ -169,20 +173,12 @@ impl AssistantConfiguration {
                        )
                    }),
            )
-            .child(
-                div()
-                    .p(DynamicSpacing::Base08.rems(cx))
-                    .bg(cx.theme().colors().editor_background)
-                    .border_1()
-                    .border_color(cx.theme().colors().border)
-                    .rounded_sm()
-                    .map(|parent| match configuration_view {
-                        Some(configuration_view) => parent.child(configuration_view),
-                        None => parent.child(div().child(Label::new(format!(
-                            "No configuration view for {provider_name}",
-                        )))),
-                    }),
-            )
+            .map(|parent| match configuration_view {
+                Some(configuration_view) => parent.child(configuration_view),
+                None => parent.child(div().child(Label::new(format!(
+                    "No configuration view for {provider_name}",
+                )))),
+            })
    }

    fn render_provider_configuration_section(
@@ -199,7 +195,7 @@ impl AssistantConfiguration {
            .child(
                v_flex()
                    .gap_0p5()
-                    .child(Headline::new("LLM Providers").size(HeadlineSize::Small))
+                    .child(Headline::new("LLM Providers"))
                    .child(
                        Label::new("Add at least one provider to use AI-powered features.")
                            .color(Color::Muted),
@@ -215,21 +211,16 @@ impl AssistantConfiguration {
    fn render_command_permission(&mut self, cx: &mut Context<Self>) -> impl IntoElement {
        let always_allow_tool_actions = AssistantSettings::get_global(cx).always_allow_tool_actions;

-        const HEADING: &str = "Allow running tools without asking for confirmation";
+        const HEADING: &str = "Allow running editing tools without asking for confirmation";

        v_flex()
            .p(DynamicSpacing::Base16.rems(cx))
            .pr(DynamicSpacing::Base20.rems(cx))
            .gap_2()
            .flex_1()
-            .child(Headline::new("General Settings").size(HeadlineSize::Small))
+            .child(Headline::new("General Settings"))
            .child(
                h_flex()
-                    .p_2p5()
-                    .rounded_sm()
-                    .bg(cx.theme().colors().editor_background)
-                    .border_1()
-                    .border_color(cx.theme().colors().border)
                    .gap_4()
                    .justify_between()
                    .flex_wrap()
@@ -245,6 +236,7 @@ impl AssistantConfiguration {
                            "always-allow-tool-actions-switch",
                            always_allow_tool_actions.into(),
                        )
+                        .color(SwitchColor::Accent)
                        .on_click({
                            let fs = self.fs.clone();
                            move |state, _window, cx| {
@@ -277,10 +269,7 @@ impl AssistantConfiguration {
            .child(
                v_flex()
                    .gap_0p5()
-                    .child(
-                        Headline::new("Model Context Protocol (MCP) Servers")
-                            .size(HeadlineSize::Small),
-                    )
+                    .child(Headline::new("Model Context Protocol (MCP) Servers"))
                    .child(Label::new(SUBHEADING).color(Color::Muted)),
            )
            .children(context_servers.into_iter().map(|context_server| {
@@ -301,9 +290,9 @@ impl AssistantConfiguration {
                v_flex()
                    .id(SharedString::from(context_server.id()))
                    .border_1()
-                    .rounded_sm()
+                    .rounded_md()
                    .border_color(cx.theme().colors().border)
-                    .bg(cx.theme().colors().editor_background)
+                    .bg(cx.theme().colors().background.opacity(0.25))
                    .child(
                        h_flex()
                            .p_1()
@@ -344,41 +333,44 @@ impl AssistantConfiguration {
                                    ),
                            )
                            .child(
-                                Switch::new("context-server-switch", is_running.into()).on_click({
-                                    let context_server_manager =
-                                        self.context_server_manager.clone();
-                                    let context_server = context_server.clone();
-                                    move |state, _window, cx| match state {
-                                        ToggleState::Unselected | ToggleState::Indeterminate => {
-                                            context_server_manager.update(cx, |this, cx| {
-                                                this.stop_server(context_server.clone(), cx)
-                                                    .log_err();
-                                            });
-                                        }
-                                        ToggleState::Selected => {
-                                            cx.spawn({
-                                                let context_server_manager =
-                                                    context_server_manager.clone();
-                                                let context_server = context_server.clone();
-                                                async move |cx| {
-                                                    if let Some(start_server_task) =
-                                                        context_server_manager
-                                                            .update(cx, |this, cx| {
-                                                                this.start_server(
-                                                                    context_server,
-                                                                    cx,
-                                                                )
-                                                            })
-                                                            .log_err()
-                                                    {
-                                                        start_server_task.await.log_err();
+                                Switch::new("context-server-switch", is_running.into())
+                                    .color(SwitchColor::Accent)
+                                    .on_click({
+                                        let context_server_manager =
+                                            self.context_server_manager.clone();
+                                        let context_server = context_server.clone();
+                                        move |state, _window, cx| match state {
+                                            ToggleState::Unselected
+                                            | ToggleState::Indeterminate => {
+                                                context_server_manager.update(cx, |this, cx| {
+                                                    this.stop_server(context_server.clone(), cx)
+                                                        .log_err();
+                                                });
+                                            }
+                                            ToggleState::Selected => {
+                                                cx.spawn({
+                                                    let context_server_manager =
+                                                        context_server_manager.clone();
+                                                    let context_server = context_server.clone();
+                                                    async move |cx| {
+                                                        if let Some(start_server_task) =
+                                                            context_server_manager
+                                                                .update(cx, |this, cx| {
+                                                                    this.start_server(
+                                                                        context_server,
+                                                                        cx,
+                                                                    )
+                                                                })
+                                                                .log_err()
+                                                        {
+                                                            start_server_task.await.log_err();
+                                                        }
                                                    }
-                                                }
-                                            })
-                                            .detach();
+                                                })
+                                                .detach();
+                                            }
                                        }
-                                    }
-                                }),
+                                    }),
                            ),
                    )
                    .map(|parent| {
@@ -386,34 +378,28 @@ impl AssistantConfiguration {
                            return parent;
                        }

-                        parent.child(v_flex().children(tools.into_iter().enumerate().map(
-                            |(ix, tool)| {
+                        parent.child(v_flex().py_1p5().px_1().gap_1().children(
+                            tools.into_iter().enumerate().map(|(ix, tool)| {
                                h_flex()
-                                    .id("tool-item")
-                                    .pl_2()
-                                    .pr_1()
-                                    .py_1()
+                                    .id(("tool-item", ix))
+                                    .px_1()
                                    .gap_2()
                                    .justify_between()
-                                    .when(ix < tool_count - 1, |element| {
-                                        element
-                                            .border_b_1()
-                                            .border_color(cx.theme().colors().border_variant)
-                                    })
+                                    .hover(|style| style.bg(cx.theme().colors().element_hover))
+                                    .rounded_sm()
                                    .child(
                                        Label::new(tool.name())
                                            .buffer_font(cx)
                                            .size(LabelSize::Small),
                                    )
                                    .child(
-                                        IconButton::new(("tool-description", ix), IconName::Info)
-                                            .shape(ui::IconButtonShape::Square)
-                                            .icon_size(IconSize::Small)
-                                            .icon_color(Color::Ignored)
-                                            .tooltip(Tooltip::text(tool.description())),
+                                        Icon::new(IconName::Info)
+                                            .size(IconSize::Small)
+                                            .color(Color::Ignored),
                                    )
-                            },
-                        )))
+                                    .tooltip(Tooltip::text(tool.description()))
+                            }),
+                        ))
                    })
            }))
            .child(
@@ -422,7 +408,7 @@ impl AssistantConfiguration {
                    .gap_2()
                    .child(
                        h_flex().w_full().child(
-                            Button::new("add-context-server", "Add MCPs Directly")
+                            Button::new("add-context-server", "Add Custom Server")
                                .style(ButtonStyle::Filled)
                                .layer(ElevationIndex::ModalSurface)
                                .full_width()
--- a/crates/agent/src/assistant_configuration/add_context_server_modal.rs
+++ b/crates/agent/src/assistant_configuration/add_context_server_modal.rs
@@ -2,7 +2,7 @@ use context_server::{ContextServerSettings, ServerCommand, ServerConfig};
 use gpui::{DismissEvent, Entity, EventEmitter, FocusHandle, Focusable, WeakEntity, prelude::*};
 use serde_json::json;
 use settings::update_settings_file;
-use ui::{Modal, ModalFooter, ModalHeader, Section, Tooltip, prelude::*};
+use ui::{KeyBinding, Modal, ModalFooter, ModalHeader, Section, Tooltip, prelude::*};
 use ui_input::SingleLineInput;
 use workspace::{ModalView, Workspace};

@@ -34,9 +34,9 @@ impl AddContextServerModal {
        cx: &mut Context<Self>,
    ) -> Self {
        let name_editor =
-            cx.new(|cx| SingleLineInput::new(window, cx, "Your server name").label("Name"));
+            cx.new(|cx| SingleLineInput::new(window, cx, "my-custom-server").label("Name"));
        let command_editor = cx.new(|cx| {
-            SingleLineInput::new(window, cx, "Command").label("Command to run the context server")
+            SingleLineInput::new(window, cx, "Command").label("Command to run the MCP server")
        });

        Self {
@@ -46,7 +46,7 @@ impl AddContextServerModal {
        }
    }

-    fn confirm(&mut self, cx: &mut Context<Self>) {
+    fn confirm(&mut self, _: &menu::Confirm, cx: &mut Context<Self>) {
        let name = self
            .name_editor
            .read(cx)
@@ -96,7 +96,7 @@ impl AddContextServerModal {
        cx.emit(DismissEvent);
    }

-    fn cancel(&mut self, cx: &mut Context<Self>) {
+    fn cancel(&mut self, _: &menu::Cancel, cx: &mut Context<Self>) {
        cx.emit(DismissEvent);
    }
 }
@@ -112,38 +112,68 @@ impl Focusable for AddContextServerModal {
 impl EventEmitter<DismissEvent> for AddContextServerModal {}

 impl Render for AddContextServerModal {
-    fn render(&mut self, _window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
+    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
        let is_name_empty = self.name_editor.read(cx).is_empty(cx);
        let is_command_empty = self.command_editor.read(cx).is_empty(cx);

+        let focus_handle = self.focus_handle(cx);
+
        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)))
+            .on_action(
+                cx.listener(|this, _: &menu::Cancel, _window, cx| this.cancel(&menu::Cancel, cx)),
+            )
+            .on_action(
+                cx.listener(|this, _: &menu::Confirm, _window, cx| {
+                    this.confirm(&menu::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"))
+                    .header(ModalHeader::new().headline("Add MCP Server"))
                    .section(
-                        Section::new()
-                            .child(self.name_editor.clone())
-                            .child(self.command_editor.clone()),
+                        Section::new().child(
+                            v_flex()
+                                .gap_2()
+                                .child(self.name_editor.clone())
+                                .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)),
-                                ),
+                                Button::new("cancel", "Cancel")
+                                    .key_binding(
+                                        KeyBinding::for_action_in(
+                                            &menu::Cancel,
+                                            &focus_handle,
+                                            window,
+                                            cx,
+                                        )
+                                        .map(|kb| kb.size(rems_from_px(12.))),
+                                    )
+                                    .on_click(cx.listener(|this, _event, _window, cx| {
+                                        this.cancel(&menu::Cancel, cx)
+                                    })),
                            )
                            .end_slot(
                                Button::new("add-server", "Add Server")
                                    .disabled(is_name_empty || is_command_empty)
+                                    .key_binding(
+                                        KeyBinding::for_action_in(
+                                            &menu::Confirm,
+                                            &focus_handle,
+                                            window,
+                                            cx,
+                                        )
+                                        .map(|kb| kb.size(rems_from_px(12.))),
+                                    )
                                    .map(|button| {
                                        if is_name_empty {
                                            button.tooltip(Tooltip::text("Name is required"))
@@ -153,9 +183,9 @@ impl Render for AddContextServerModal {
                                            button
                                        }
                                    })
-                                    .on_click(
-                                        cx.listener(|this, _event, _window, cx| this.confirm(cx)),
-                                    ),
+                                    .on_click(cx.listener(|this, _event, _window, cx| {
+                                        this.confirm(&menu::Confirm, cx)
+                                    })),
                            ),
                    ),
            )
--- a/crates/agent/src/assistant_model_selector.rs
+++ b/crates/agent/src/assistant_model_selector.rs
@@ -1,7 +1,7 @@
 use assistant_settings::AssistantSettings;
 use fs::Fs;
 use gpui::{Entity, FocusHandle, SharedString};
-use language_model::LanguageModelRegistry;
+
 use language_model_selector::{
    LanguageModelSelector, LanguageModelSelectorPopoverMenu, ToggleModelSelector,
 };
@@ -9,17 +9,12 @@ use settings::update_settings_file;
 use std::sync::Arc;
 use ui::{ButtonLike, PopoverMenuHandle, Tooltip, prelude::*};

-#[derive(Clone, Copy)]
-pub enum ModelType {
-    Default,
-    InlineAssistant,
-}
+pub use language_model_selector::ModelType;

 pub struct AssistantModelSelector {
    selector: Entity<LanguageModelSelector>,
    menu_handle: PopoverMenuHandle<LanguageModelSelector>,
    focus_handle: FocusHandle,
-    model_type: ModelType,
 }

 impl AssistantModelSelector {
@@ -63,13 +58,13 @@ impl AssistantModelSelector {
                            }
                        }
                    },
+                    model_type,
                    window,
                    cx,
                )
            }),
            menu_handle,
            focus_handle,
-            model_type,
        }
    }

@@ -82,11 +77,7 @@ impl Render for AssistantModelSelector {
    fn render(&mut self, _window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
        let focus_handle = self.focus_handle.clone();

-        let model_registry = LanguageModelRegistry::read_global(cx);
-        let model = match self.model_type {
-            ModelType::Default => model_registry.default_model(),
-            ModelType::InlineAssistant => model_registry.inline_assistant_model(),
-        };
+        let model = self.selector.read(cx).active_model(cx);
        let (model_name, model_icon) = match model {
            Some(model) => (model.model.name().0, Some(model.provider.icon())),
            _ => (SharedString::from("No model selected"), None),
--- a/crates/agent/src/assistant_panel.rs
+++ b/crates/agent/src/assistant_panel.rs
@@ -1,3 +1,4 @@
+use std::ops::Range;
 use std::path::PathBuf;
 use std::sync::Arc;
 use std::time::Duration;
@@ -5,14 +6,14 @@ use std::time::Duration;
 use anyhow::{Result, anyhow};
 use assistant_context_editor::{
    AssistantPanelDelegate, ConfigurationError, ContextEditor, SlashCommandCompletionProvider,
-    make_lsp_adapter_delegate, render_remaining_tokens,
+    humanize_token_count, make_lsp_adapter_delegate, render_remaining_tokens,
 };
 use assistant_settings::{AssistantDockPosition, AssistantSettings};
 use assistant_slash_command::SlashCommandWorkingSet;
 use assistant_tool::ToolWorkingSet;

 use client::zed_urls;
-use editor::{Editor, EditorEvent, MultiBuffer};
+use editor::{Anchor, AnchorRangeExt as _, Editor, EditorEvent, MultiBuffer};
 use fs::Fs;
 use gpui::{
    Action, Animation, AnimationExt as _, AnyElement, App, AsyncWindowContext, Corner, Entity,
@@ -24,7 +25,8 @@ use language_model::{LanguageModelProviderTosView, LanguageModelRegistry};
 use language_model_selector::ToggleModelSelector;
 use project::Project;
 use prompt_library::{PromptLibrary, open_prompt_library};
-use prompt_store::PromptBuilder;
+use prompt_store::{PromptBuilder, PromptId, UserPromptId};
+use proto::Plan;
 use settings::{Settings, update_settings_file};
 use time::UtcOffset;
 use ui::{
@@ -36,15 +38,16 @@ use workspace::dock::{DockPosition, Panel, PanelEvent};
 use zed_actions::agent::OpenConfiguration;
 use zed_actions::assistant::{OpenPromptLibrary, ToggleFocus};

-use crate::active_thread::ActiveThread;
+use crate::active_thread::{ActiveThread, ActiveThreadEvent};
 use crate::assistant_configuration::{AssistantConfiguration, AssistantConfigurationEvent};
 use crate::history_store::{HistoryEntry, HistoryStore};
-use crate::message_editor::MessageEditor;
+use crate::message_editor::{MessageEditor, MessageEditorEvent};
 use crate::thread::{Thread, ThreadError, ThreadId, TokenUsageRatio};
 use crate::thread_history::{PastContext, PastThread, ThreadHistory};
 use crate::thread_store::ThreadStore;
+use crate::ui::UsageBanner;
 use crate::{
-    AgentDiff, ExpandMessageEditor, InlineAssistant, NewTextThread, NewThread,
+    AddContextServer, AgentDiff, ExpandMessageEditor, InlineAssistant, NewTextThread, NewThread,
    OpenActiveThreadAsMarkdown, OpenAgentDiff, OpenHistory, ThreadEvent, ToggleContextPicker,
 };

@@ -76,11 +79,11 @@ pub fn init(cx: &mut App) {
                        panel.update(cx, |panel, cx| panel.new_prompt_editor(window, cx));
                    }
                })
-                .register_action(|workspace, _: &OpenPromptLibrary, window, cx| {
+                .register_action(|workspace, action: &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)
+                            panel.deploy_prompt_library(action, window, cx)
                        });
                    }
                })
@@ -111,7 +114,9 @@ enum ActiveView {
        change_title_editor: Entity<Editor>,
        _subscriptions: Vec<gpui::Subscription>,
    },
-    PromptEditor,
+    PromptEditor {
+        context_editor: Entity<ContextEditor>,
+    },
    History,
    Configuration,
 }
@@ -180,10 +185,9 @@ pub struct AssistantPanel {
    language_registry: Arc<LanguageRegistry>,
    thread_store: Entity<ThreadStore>,
    thread: Entity<ActiveThread>,
-    _thread_subscription: Subscription,
    message_editor: Entity<MessageEditor>,
+    _active_thread_subscriptions: Vec<Subscription>,
    context_store: Entity<assistant_context_editor::ContextStore>,
-    context_editor: Option<Entity<ContextEditor>>,
    configuration: Option<Entity<AssistantConfiguration>>,
    configuration_subscription: Option<Subscription>,
    local_timezone: UtcOffset,
@@ -209,7 +213,7 @@ impl AssistantPanel {
                    let project = workspace.project().clone();
                    ThreadStore::load(project, tools.clone(), prompt_builder.clone(), cx)
                })?
-                .await;
+                .await?;

            let slash_commands = Arc::new(SlashCommandWorkingSet::default());
            let context_store = workspace
@@ -263,6 +267,13 @@ impl AssistantPanel {
            )
        });

+        let message_editor_subscription =
+            cx.subscribe(&message_editor, |_, _, event, cx| match event {
+                MessageEditorEvent::Changed | MessageEditorEvent::EstimatedTokenCount => {
+                    cx.notify();
+                }
+            });
+
        let history_store =
            cx.new(|cx| HistoryStore::new(thread_store.clone(), context_store.clone(), cx));

@@ -287,6 +298,12 @@ impl AssistantPanel {
            )
        });

+        let active_thread_subscription = cx.subscribe(&thread, |_, _, event, cx| match &event {
+            ActiveThreadEvent::EditingMessageTokenCountChanged => {
+                cx.notify();
+            }
+        });
+
        Self {
            active_view,
            workspace,
@@ -295,10 +312,13 @@ impl AssistantPanel {
            language_registry,
            thread_store: thread_store.clone(),
            thread,
-            _thread_subscription: thread_subscription,
            message_editor,
+            _active_thread_subscriptions: vec![
+                thread_subscription,
+                active_thread_subscription,
+                message_editor_subscription,
+            ],
            context_store,
-            context_editor: None,
            configuration: None,
            configuration_subscription: None,
            local_timezone: UtcOffset::from_whole_seconds(
@@ -381,6 +401,13 @@ impl AssistantPanel {
            .detach_and_log_err(cx);
        }

+        let thread_subscription = cx.subscribe(&thread, |_, _, event, cx| {
+            if let ThreadEvent::MessageAdded(_) = &event {
+                // needed to leave empty state
+                cx.notify();
+            }
+        });
+
        self.thread = cx.new(|cx| {
            ActiveThread::new(
                thread.clone(),
@@ -393,12 +420,12 @@ impl AssistantPanel {
            )
        });

-        self._thread_subscription = cx.subscribe(&thread, |_, _, event, cx| {
-            if let ThreadEvent::MessageAdded(_) = &event {
-                // needed to leave empty state
-                cx.notify();
-            }
-        });
+        let active_thread_subscription =
+            cx.subscribe(&self.thread, |_, _, event, cx| match &event {
+                ActiveThreadEvent::EditingMessageTokenCountChanged => {
+                    cx.notify();
+                }
+            });

        self.message_editor = cx.new(|cx| {
            MessageEditor::new(
@@ -412,11 +439,22 @@ impl AssistantPanel {
            )
        });
        self.message_editor.focus_handle(cx).focus(window);
+
+        let message_editor_subscription =
+            cx.subscribe(&self.message_editor, |_, _, event, cx| match event {
+                MessageEditorEvent::Changed | MessageEditorEvent::EstimatedTokenCount => {
+                    cx.notify();
+                }
+            });
+
+        self._active_thread_subscriptions = vec![
+            thread_subscription,
+            active_thread_subscription,
+            message_editor_subscription,
+        ];
    }

    fn new_prompt_editor(&mut self, window: &mut Window, cx: &mut Context<Self>) {
-        self.set_active_view(ActiveView::PromptEditor, window, cx);
-
        let context = self
            .context_store
            .update(cx, |context_store, cx| context_store.create(cx));
@@ -424,7 +462,7 @@ impl AssistantPanel {
            .log_err()
            .flatten();

-        self.context_editor = Some(cx.new(|cx| {
+        let context_editor = cx.new(|cx| {
            let mut editor = ContextEditor::for_context(
                context,
                self.fs.clone(),
@@ -436,16 +474,21 @@ impl AssistantPanel {
            );
            editor.insert_default_prompt(window, cx);
            editor
-        }));
+        });

-        if let Some(context_editor) = self.context_editor.as_ref() {
-            context_editor.focus_handle(cx).focus(window);
-        }
+        self.set_active_view(
+            ActiveView::PromptEditor {
+                context_editor: context_editor.clone(),
+            },
+            window,
+            cx,
+        );
+        context_editor.focus_handle(cx).focus(window);
    }

    fn deploy_prompt_library(
        &mut self,
-        _: &OpenPromptLibrary,
+        action: &OpenPromptLibrary,
        _window: &mut Window,
        cx: &mut Context<Self>,
    ) {
@@ -459,6 +502,9 @@ impl AssistantPanel {
                    None,
                ))
            }),
+            action.prompt_to_select.map(|uuid| PromptId::User {
+                uuid: UserPromptId(uuid),
+            }),
            cx,
        )
        .detach_and_log_err(cx);
@@ -507,8 +553,13 @@ impl AssistantPanel {
                        cx,
                    )
                });
-                this.set_active_view(ActiveView::PromptEditor, window, cx);
-                this.context_editor = Some(editor);
+                this.set_active_view(
+                    ActiveView::PromptEditor {
+                        context_editor: editor,
+                    },
+                    window,
+                    cx,
+                );

                anyhow::Ok(())
            })??;
@@ -537,6 +588,13 @@ impl AssistantPanel {
                        Some(this.thread_store.downgrade()),
                    )
                });
+                let thread_subscription = cx.subscribe(&thread, |_, _, event, cx| {
+                    if let ThreadEvent::MessageAdded(_) = &event {
+                        // needed to leave empty state
+                        cx.notify();
+                    }
+                });
+
                this.thread = cx.new(|cx| {
                    ActiveThread::new(
                        thread.clone(),
@@ -548,6 +606,14 @@ impl AssistantPanel {
                        cx,
                    )
                });
+
+                let active_thread_subscription =
+                    cx.subscribe(&this.thread, |_, _, event, cx| match &event {
+                        ActiveThreadEvent::EditingMessageTokenCountChanged => {
+                            cx.notify();
+                        }
+                    });
+
                this.message_editor = cx.new(|cx| {
                    MessageEditor::new(
                        this.fs.clone(),
@@ -560,6 +626,19 @@ impl AssistantPanel {
                    )
                });
                this.message_editor.focus_handle(cx).focus(window);
+
+                let message_editor_subscription =
+                    cx.subscribe(&this.message_editor, |_, _, event, cx| match event {
+                        MessageEditorEvent::Changed | MessageEditorEvent::EstimatedTokenCount => {
+                            cx.notify();
+                        }
+                    });
+
+                this._active_thread_subscriptions = vec![
+                    thread_subscription,
+                    active_thread_subscription,
+                    message_editor_subscription,
+                ];
            })
        })
    }
@@ -711,8 +790,15 @@ impl AssistantPanel {
            .update(cx, |this, cx| this.delete_thread(thread_id, cx))
    }

+    pub(crate) fn has_active_thread(&self) -> bool {
+        matches!(self.active_view, ActiveView::Thread { .. })
+    }
+
    pub(crate) fn active_context_editor(&self) -> Option<Entity<ContextEditor>> {
-        self.context_editor.clone()
+        match &self.active_view {
+            ActiveView::PromptEditor { context_editor } => Some(context_editor.clone()),
+            _ => None,
+        }
    }

    pub(crate) fn delete_context(
@@ -750,16 +836,10 @@ impl AssistantPanel {

 impl Focusable for AssistantPanel {
    fn focus_handle(&self, cx: &App) -> FocusHandle {
-        match self.active_view {
+        match &self.active_view {
            ActiveView::Thread { .. } => self.message_editor.focus_handle(cx),
            ActiveView::History => self.history.focus_handle(cx),
-            ActiveView::PromptEditor => {
-                if let Some(context_editor) = self.context_editor.as_ref() {
-                    context_editor.focus_handle(cx)
-                } else {
-                    cx.focus_handle()
-                }
-            }
+            ActiveView::PromptEditor { context_editor } => context_editor.focus_handle(cx),
            ActiveView::Configuration => {
                if let Some(configuration) = self.configuration.as_ref() {
                    configuration.focus_handle(cx)
@@ -852,7 +932,7 @@ impl Panel for AssistantPanel {
 }

 impl AssistantPanel {
-    fn render_title_view(&self, _window: &mut Window, cx: &mut Context<Self>) -> AnyElement {
+    fn render_title_view(&self, _window: &mut Window, cx: &Context<Self>) -> AnyElement {
        const LOADING_SUMMARY_PLACEHOLDER: &str = "Loading Summary…";

        let content = match &self.active_view {
@@ -883,15 +963,8 @@ impl AssistantPanel {
                        .into_any_element()
                }
            }
-            ActiveView::PromptEditor => {
-                let title = self
-                    .context_editor
-                    .as_ref()
-                    .map(|context_editor| {
-                        SharedString::from(context_editor.read(cx).title(cx).to_string())
-                    })
-                    .unwrap_or_else(|| SharedString::from(LOADING_SUMMARY_PLACEHOLDER));
-
+            ActiveView::PromptEditor { context_editor } => {
+                let title = SharedString::from(context_editor.read(cx).title(cx).to_string());
                Label::new(title).ml_2().truncate().into_any_element()
            }
            ActiveView::History => Label::new("History").truncate().into_any_element(),
@@ -912,21 +985,18 @@ impl AssistantPanel {
    fn render_toolbar(&self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
        let active_thread = self.thread.read(cx);
        let thread = active_thread.thread().read(cx);
-        let token_usage = thread.total_token_usage(cx);
        let thread_id = thread.id().clone();
-
-        let is_generating = thread.is_generating();
        let is_empty = active_thread.is_empty();
-        let focus_handle = self.focus_handle(cx);
-
        let is_history = matches!(self.active_view, ActiveView::History);

        let show_token_count = match &self.active_view {
            ActiveView::Thread { .. } => !is_empty,
-            ActiveView::PromptEditor => self.context_editor.is_some(),
+            ActiveView::PromptEditor { .. } => true,
            _ => false,
        };

+        let focus_handle = self.focus_handle(cx);
+
        let go_back_button = match &self.active_view {
            ActiveView::History | ActiveView::Configuration => Some(
                div().pl_1().child(
@@ -973,69 +1043,9 @@ impl AssistantPanel {
                h_flex()
                    .h_full()
                    .gap_2()
-                    .when(show_token_count, |parent| match self.active_view {
-                        ActiveView::Thread { .. } => {
-                            if token_usage.total == 0 {
-                                return parent;
-                            }
-
-                            let token_color = match token_usage.ratio {
-                                TokenUsageRatio::Normal => Color::Muted,
-                                TokenUsageRatio::Warning => Color::Warning,
-                                TokenUsageRatio::Exceeded => Color::Error,
-                            };
-
-                            parent.child(
-                                h_flex()
-                                    .flex_shrink_0()
-                                    .gap_0p5()
-                                    .child(
-                                        Label::new(assistant_context_editor::humanize_token_count(
-                                            token_usage.total,
-                                        ))
-                                        .size(LabelSize::Small)
-                                        .color(token_color)
-                                        .map(|label| {
-                                            if is_generating {
-                                                label
-                                                    .with_animation(
-                                                        "used-tokens-label",
-                                                        Animation::new(Duration::from_secs(2))
-                                                            .repeat()
-                                                            .with_easing(pulsating_between(
-                                                                0.6, 1.,
-                                                            )),
-                                                        |label, delta| label.alpha(delta),
-                                                    )
-                                                    .into_any()
-                                            } else {
-                                                label.into_any_element()
-                                            }
-                                        }),
-                                    )
-                                    .child(
-                                        Label::new("/").size(LabelSize::Small).color(Color::Muted),
-                                    )
-                                    .child(
-                                        Label::new(assistant_context_editor::humanize_token_count(
-                                            token_usage.max,
-                                        ))
-                                        .size(LabelSize::Small)
-                                        .color(Color::Muted),
-                                    ),
-                            )
-                        }
-                        ActiveView::PromptEditor => {
-                            let Some(editor) = self.context_editor.as_ref() else {
-                                return parent;
-                            };
-                            let Some(element) = render_remaining_tokens(editor, cx) else {
-                                return parent;
-                            };
-                            parent.child(element)
-                        }
-                        _ => parent,
-                    })
+                    .when(show_token_count, |parent|
+                        parent.children(self.render_token_count(&thread, cx))
+                    )
                    .child(
                        h_flex()
                            .h_full()
@@ -1112,17 +1122,19 @@ impl AssistantPanel {
                                                    "New Text Thread",
                                                    NewTextThread.boxed_clone(),
                                                )
-                                                .action("Settings", OpenConfiguration.boxed_clone())
+                                                .action("Prompt Library", Box::new(OpenPromptLibrary::default()))
+                                                .action("Settings", Box::new(OpenConfiguration))
                                                .separator()
+                                                .header("MCPs")
                                                .action(
-                                                    "Install MCPs",
-                                                    zed_actions::Extensions {
+                                                    "View Server Extensions",
+                                                    Box::new(zed_actions::Extensions {
                                                        category_filter: Some(
                                                            zed_actions::ExtensionCategoryFilter::ContextServers,
                                                        ),
-                                                    }
-                                                    .boxed_clone(),
+                                                        }),
                                                )
+                                                .action("Add Custom Server", Box::new(AddContextServer))
                                            },
                                        ))
                                    }),
@@ -1131,6 +1143,110 @@ impl AssistantPanel {
            )
    }

+    fn render_token_count(&self, thread: &Thread, cx: &App) -> Option<AnyElement> {
+        let is_generating = thread.is_generating();
+        let message_editor = self.message_editor.read(cx);
+
+        let conversation_token_usage = thread.total_token_usage(cx);
+        let (total_token_usage, is_estimating) = if let Some((editing_message_id, unsent_tokens)) =
+            self.thread.read(cx).editing_message_id()
+        {
+            let combined = thread
+                .token_usage_up_to_message(editing_message_id, cx)
+                .add(unsent_tokens);
+
+            (combined, unsent_tokens > 0)
+        } else {
+            let unsent_tokens = message_editor.last_estimated_token_count().unwrap_or(0);
+            let combined = conversation_token_usage.add(unsent_tokens);
+
+            (combined, unsent_tokens > 0)
+        };
+
+        let is_waiting_to_update_token_count = message_editor.is_waiting_to_update_token_count();
+
+        match &self.active_view {
+            ActiveView::Thread { .. } => {
+                if total_token_usage.total == 0 {
+                    return None;
+                }
+
+                let token_color = match total_token_usage.ratio() {
+                    TokenUsageRatio::Normal if is_estimating => Color::Default,
+                    TokenUsageRatio::Normal => Color::Muted,
+                    TokenUsageRatio::Warning => Color::Warning,
+                    TokenUsageRatio::Exceeded => Color::Error,
+                };
+
+                let token_count = h_flex()
+                    .id("token-count")
+                    .flex_shrink_0()
+                    .gap_0p5()
+                    .when(!is_generating && is_estimating, |parent| {
+                        parent
+                            .child(
+                                h_flex()
+                                    .mr_1()
+                                    .size_2p5()
+                                    .justify_center()
+                                    .rounded_full()
+                                    .bg(cx.theme().colors().text.opacity(0.1))
+                                    .child(
+                                        div().size_1().rounded_full().bg(cx.theme().colors().text),
+                                    ),
+                            )
+                            .tooltip(move |window, cx| {
+                                Tooltip::with_meta(
+                                    "Estimated New Token Count",
+                                    None,
+                                    format!(
+                                        "Current Conversation Tokens: {}",
+                                        humanize_token_count(conversation_token_usage.total)
+                                    ),
+                                    window,
+                                    cx,
+                                )
+                            })
+                    })
+                    .child(
+                        Label::new(humanize_token_count(total_token_usage.total))
+                            .size(LabelSize::Small)
+                            .color(token_color)
+                            .map(|label| {
+                                if is_generating || is_waiting_to_update_token_count {
+                                    label
+                                        .with_animation(
+                                            "used-tokens-label",
+                                            Animation::new(Duration::from_secs(2))
+                                                .repeat()
+                                                .with_easing(pulsating_between(0.6, 1.)),
+                                            |label, delta| label.alpha(delta),
+                                        )
+                                        .into_any()
+                                } else {
+                                    label.into_any_element()
+                                }
+                            }),
+                    )
+                    .child(Label::new("/").size(LabelSize::Small).color(Color::Muted))
+                    .child(
+                        Label::new(humanize_token_count(total_token_usage.max))
+                            .size(LabelSize::Small)
+                            .color(Color::Muted),
+                    )
+                    .into_any();
+
+                Some(token_count)
+            }
+            ActiveView::PromptEditor { context_editor } => {
+                let element = render_remaining_tokens(context_editor, cx)?;
+
+                Some(element.into_any_element())
+            }
+            _ => None,
+        }
+    }
+
    fn render_active_thread_or_empty_state(
        &self,
        window: &mut Window,
@@ -1431,6 +1547,12 @@ impl AssistantPanel {
            })
    }

+    fn render_usage_banner(&self, cx: &mut Context<Self>) -> Option<AnyElement> {
+        let usage = self.thread.read(cx).last_usage()?;
+
+        Some(UsageBanner::new(zed_llm_client::Plan::ZedProTrial, usage.amount).into_any_element())
+    }
+
    fn render_last_error(&self, cx: &mut Context<Self>) -> Option<AnyElement> {
        let last_error = self.thread.read(cx).last_error()?;

@@ -1449,6 +1571,9 @@ impl AssistantPanel {
                    ThreadError::MaxMonthlySpendReached => {
                        self.render_max_monthly_spend_reached_error(cx)
                    }
+                    ThreadError::ModelRequestLimitReached { plan } => {
+                        self.render_model_request_limit_reached_error(plan, cx)
+                    }
                    ThreadError::Message { header, message } => {
                        self.render_error_message(header, message, cx)
                    }
@@ -1551,6 +1676,71 @@ impl AssistantPanel {
            .into_any()
    }

+    fn render_model_request_limit_reached_error(
+        &self,
+        plan: Plan,
+        cx: &mut Context<Self>,
+    ) -> AnyElement {
+        let error_message = match plan {
+            Plan::ZedPro => {
+                "Model request limit reached. Upgrade to usage-based billing for more requests."
+            }
+            Plan::ZedProTrial => {
+                "Model request limit reached. Upgrade to Zed Pro for more requests."
+            }
+            Plan::Free => "Model request limit reached. Upgrade to Zed Pro for more requests.",
+        };
+        let call_to_action = match plan {
+            Plan::ZedPro => "Upgrade to usage-based billing",
+            Plan::ZedProTrial => "Upgrade to Zed Pro",
+            Plan::Free => "Upgrade to Zed Pro",
+        };
+
+        v_flex()
+            .gap_0p5()
+            .child(
+                h_flex()
+                    .gap_1p5()
+                    .items_center()
+                    .child(Icon::new(IconName::XCircle).color(Color::Error))
+                    .child(Label::new("Model Request Limit Reached").weight(FontWeight::MEDIUM)),
+            )
+            .child(
+                div()
+                    .id("error-message")
+                    .max_h_24()
+                    .overflow_y_scroll()
+                    .child(Label::new(error_message)),
+            )
+            .child(
+                h_flex()
+                    .justify_end()
+                    .mt_1()
+                    .child(
+                        Button::new("subscribe", call_to_action).on_click(cx.listener(
+                            |this, _, _, cx| {
+                                this.thread.update(cx, |this, _cx| {
+                                    this.clear_last_error();
+                                });
+
+                                cx.open_url(&zed_urls::account_url(cx));
+                                cx.notify();
+                            },
+                        )),
+                    )
+                    .child(Button::new("dismiss", "Dismiss").on_click(cx.listener(
+                        |this, _, _, cx| {
+                            this.thread.update(cx, |this, _cx| {
+                                this.clear_last_error();
+                            });
+
+                            cx.notify();
+                        },
+                    ))),
+            )
+            .into_any()
+    }
+
    fn render_error_message(
        &self,
        header: SharedString,
@@ -1593,7 +1783,7 @@ impl AssistantPanel {
    fn key_context(&self) -> KeyContext {
        let mut key_context = KeyContext::new_with_defaults();
        key_context.add("AgentPanel");
-        if matches!(self.active_view, ActiveView::PromptEditor) {
+        if matches!(self.active_view, ActiveView::PromptEditor { .. }) {
            key_context.add("prompt_editor");
        }
        key_context
@@ -1621,13 +1811,14 @@ impl Render for AssistantPanel {
            .on_action(cx.listener(Self::open_agent_diff))
            .on_action(cx.listener(Self::go_back))
            .child(self.render_toolbar(window, cx))
-            .map(|parent| match self.active_view {
+            .map(|parent| match &self.active_view {
                ActiveView::Thread { .. } => parent
                    .child(self.render_active_thread_or_empty_state(window, cx))
+                    .children(self.render_usage_banner(cx))
                    .child(h_flex().child(self.message_editor.clone()))
                    .children(self.render_last_error(cx)),
                ActiveView::History => parent.child(self.history.clone()),
-                ActiveView::PromptEditor => parent.children(self.context_editor.clone()),
+                ActiveView::PromptEditor { context_editor } => parent.child(context_editor.clone()),
                ActiveView::Configuration => parent.children(self.configuration.clone()),
            })
    }
@@ -1692,7 +1883,7 @@ impl AssistantPanelDelegate for ConcreteAssistantPanelDelegate {
        cx: &mut Context<Workspace>,
    ) -> Option<Entity<ContextEditor>> {
        let panel = workspace.panel::<AssistantPanel>(cx)?;
-        panel.update(cx, |panel, _cx| panel.context_editor.clone())
+        panel.read(cx).active_context_editor()
    }

    fn open_saved_context(
@@ -1723,10 +1914,61 @@ impl AssistantPanelDelegate for ConcreteAssistantPanelDelegate {

    fn quote_selection(
        &self,
-        _workspace: &mut Workspace,
-        _creases: Vec<(String, String)>,
-        _window: &mut Window,
-        _cx: &mut Context<Workspace>,
+        workspace: &mut Workspace,
+        selection_ranges: Vec<Range<Anchor>>,
+        buffer: Entity<MultiBuffer>,
+        window: &mut Window,
+        cx: &mut Context<Workspace>,
    ) {
+        let Some(panel) = workspace.panel::<AssistantPanel>(cx) else {
+            return;
+        };
+
+        if !panel.focus_handle(cx).contains_focused(window, cx) {
+            workspace.toggle_panel_focus::<AssistantPanel>(window, cx);
+        }
+
+        panel.update(cx, |_, cx| {
+            // Wait to create a new context until the workspace is no longer
+            // being updated.
+            cx.defer_in(window, move |panel, window, cx| {
+                if panel.has_active_thread() {
+                    panel.thread.update(cx, |thread, cx| {
+                        thread.context_store().update(cx, |store, cx| {
+                            let buffer = buffer.read(cx);
+                            let selection_ranges = selection_ranges
+                                .into_iter()
+                                .flat_map(|range| {
+                                    let (start_buffer, start) =
+                                        buffer.text_anchor_for_position(range.start, cx)?;
+                                    let (end_buffer, end) =
+                                        buffer.text_anchor_for_position(range.end, cx)?;
+                                    if start_buffer != end_buffer {
+                                        return None;
+                                    }
+                                    Some((start_buffer, start..end))
+                                })
+                                .collect::<Vec<_>>();
+
+                            for (buffer, range) in selection_ranges {
+                                store
+                                    .add_selection(buffer, range, cx)
+                                    .detach_and_log_err(cx);
+                            }
+                        })
+                    })
+                } else if let Some(context_editor) = panel.active_context_editor() {
+                    let snapshot = buffer.read(cx).snapshot(cx);
+                    let selection_ranges = selection_ranges
+                        .into_iter()
+                        .map(|range| range.to_point(&snapshot))
+                        .collect::<Vec<_>>();
+
+                    context_editor.update(cx, |context_editor, cx| {
+                        context_editor.quote_ranges(selection_ranges, snapshot, window, cx)
+                    });
+                }
+            });
+        });
    }
 }
--- a/crates/agent/src/buffer_codegen.rs
+++ b/crates/agent/src/buffer_codegen.rs
@@ -1,7 +1,7 @@
 use crate::context::attach_context_to_message;
 use crate::context_store::ContextStore;
 use crate::inline_prompt_editor::CodegenStatus;
-use anyhow::{Context as _, Result};
+use anyhow::Result;
 use client::telemetry::Telemetry;
 use collections::HashSet;
 use editor::{Anchor, AnchorRangeExt, MultiBuffer, MultiBufferSnapshot, ToOffset as _, ToPoint};
@@ -131,7 +131,12 @@ impl BufferCodegen {
        cx.notify();
    }

-    pub fn start(&mut self, user_prompt: String, cx: &mut Context<Self>) -> Result<()> {
+    pub fn start(
+        &mut self,
+        primary_model: Arc<dyn LanguageModel>,
+        user_prompt: String,
+        cx: &mut Context<Self>,
+    ) -> Result<()> {
        let alternative_models = LanguageModelRegistry::read_global(cx)
            .inline_alternative_models()
            .to_vec();
@@ -155,11 +160,6 @@ impl BufferCodegen {
            }));
        }

-        let primary_model = LanguageModelRegistry::read_global(cx)
-            .default_model()
-            .context("no active model")?
-            .model;
-
        for (model, alternative) in iter::once(primary_model)
            .chain(alternative_models)
            .zip(&self.alternatives)
@@ -425,6 +425,8 @@ impl CodegenAlternative {
        request_message.content.push(prompt.into());

        Ok(LanguageModelRequest {
+            thread_id: None,
+            prompt_id: None,
            tools: Vec::new(),
            stop: Vec::new(),
            temperature: None,
--- a/crates/agent/src/context.rs
+++ b/crates/agent/src/context.rs
@@ -1,9 +1,16 @@
-use std::{ops::Range, path::Path, sync::Arc};
+use std::{
+    ops::Range,
+    path::{Path, PathBuf},
+    sync::Arc,
+};

-use gpui::{App, Entity, SharedString};
-use language::{Buffer, File};
-use language_model::LanguageModelRequestMessage;
-use project::{ProjectPath, Worktree};
+use futures::{FutureExt, future::Shared};
+use gpui::{App, Entity, SharedString, Task};
+use language::Buffer;
+use language_model::{LanguageModelImage, LanguageModelRequestMessage};
+use project::{ProjectEntryId, ProjectPath, Worktree};
+use prompt_store::UserPromptId;
+use rope::Point;
 use serde::{Deserialize, Serialize};
 use text::{Anchor, BufferId};
 use ui::IconName;
@@ -11,6 +18,8 @@ use util::post_inc;

 use crate::thread::Thread;

+pub const RULES_ICON: IconName = IconName::Context;
+
 #[derive(Debug, PartialEq, Eq, PartialOrd, Ord, Hash, Clone, Copy, Serialize, Deserialize)]
 pub struct ContextId(pub(crate) usize);

@@ -19,12 +28,16 @@ impl ContextId {
        Self(post_inc(&mut self.0))
    }
 }
+
 pub enum ContextKind {
    File,
    Directory,
    Symbol,
+    Selection,
    FetchedUrl,
    Thread,
+    Rules,
+    Image,
 }

 impl ContextKind {
@@ -33,8 +46,11 @@ impl ContextKind {
            ContextKind::File => IconName::File,
            ContextKind::Directory => IconName::Folder,
            ContextKind::Symbol => IconName::Code,
+            ContextKind::Selection => IconName::Context,
            ContextKind::FetchedUrl => IconName::Globe,
            ContextKind::Thread => IconName::MessageBubbles,
+            ContextKind::Rules => RULES_ICON,
+            ContextKind::Image => IconName::Image,
        }
    }
 }
@@ -46,6 +62,9 @@ pub enum AssistantContext {
    Symbol(SymbolContext),
    FetchedUrl(FetchedUrlContext),
    Thread(ThreadContext),
+    Selection(SelectionContext),
+    Rules(RulesContext),
+    Image(ImageContext),
 }

 impl AssistantContext {
@@ -56,6 +75,9 @@ impl AssistantContext {
            Self::Symbol(symbol) => symbol.id,
            Self::FetchedUrl(url) => url.id,
            Self::Thread(thread) => thread.id,
+            Self::Selection(selection) => selection.id,
+            Self::Rules(rules) => rules.id,
+            Self::Image(image) => image.id,
        }
    }
 }
@@ -70,17 +92,25 @@ pub struct FileContext {
 pub struct DirectoryContext {
    pub id: ContextId,
    pub worktree: Entity<Worktree>,
-    pub path: Arc<Path>,
+    pub entry_id: ProjectEntryId,
+    pub last_path: Arc<Path>,
    /// Buffers of the files within the directory.
    pub context_buffers: Vec<ContextBuffer>,
 }

 impl DirectoryContext {
-    pub fn project_path(&self, cx: &App) -> ProjectPath {
-        ProjectPath {
-            worktree_id: self.worktree.read(cx).id(),
-            path: self.path.clone(),
-        }
+    pub fn entry<'a>(&self, cx: &'a App) -> Option<&'a project::Entry> {
+        self.worktree.read(cx).entry_for_id(self.entry_id)
+    }
+
+    pub fn project_path(&self, cx: &App) -> Option<ProjectPath> {
+        let worktree = self.worktree.read(cx);
+        worktree
+            .entry_for_id(self.entry_id)
+            .map(|entry| ProjectPath {
+                worktree_id: worktree.id(),
+                path: entry.path.clone(),
+            })
    }
 }

@@ -115,17 +145,51 @@ impl ThreadContext {
    }
 }

+#[derive(Debug, Clone)]
+pub struct ImageContext {
+    pub id: ContextId,
+    pub original_image: Arc<gpui::Image>,
+    pub image_task: Shared<Task<Option<LanguageModelImage>>>,
+}
+
+impl ImageContext {
+    pub fn image(&self) -> Option<LanguageModelImage> {
+        self.image_task.clone().now_or_never().flatten()
+    }
+
+    pub fn is_loading(&self) -> bool {
+        self.image_task.clone().now_or_never().is_none()
+    }
+
+    pub fn is_error(&self) -> bool {
+        self.image_task
+            .clone()
+            .now_or_never()
+            .map(|result| result.is_none())
+            .unwrap_or(false)
+    }
+}
+
 #[derive(Clone)]
 pub struct ContextBuffer {
    pub id: BufferId,
-    // TODO: Entity<Buffer> holds onto the thread even if the thread is deleted. Should probably be
+    // TODO: Entity<Buffer> holds onto the buffer even if the buffer is deleted. Should probably be
    // a WeakEntity and handle removal from the UI when it has dropped.
    pub buffer: Entity<Buffer>,
-    pub file: Arc<dyn File>,
+    pub last_full_path: Arc<Path>,
    pub version: clock::Global,
    pub text: SharedString,
 }

+impl ContextBuffer {
+    pub fn full_path(&self, cx: &App) -> PathBuf {
+        let file = self.buffer.read(cx).file();
+        // Note that in practice file can't be `None` because it is present when this is created and
+        // there's no way for buffers to go from having a file to not.
+        file.map_or(self.last_full_path.to_path_buf(), |file| file.full_path(cx))
+    }
+}
+
 impl std::fmt::Debug for ContextBuffer {
    fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
        f.debug_struct("ContextBuffer")
@@ -155,6 +219,22 @@ pub struct ContextSymbolId {
    pub range: Range<Anchor>,
 }

+#[derive(Debug, Clone)]
+pub struct SelectionContext {
+    pub id: ContextId,
+    pub range: Range<Anchor>,
+    pub line_range: Range<Point>,
+    pub context_buffer: ContextBuffer,
+}
+
+#[derive(Debug, Clone)]
+pub struct RulesContext {
+    pub id: ContextId,
+    pub prompt_id: UserPromptId,
+    pub title: SharedString,
+    pub text: SharedString,
+}
+
 /// Formats a collection of contexts into a string representation
 pub fn format_context_as_string<'a>(
    contexts: impl Iterator<Item = &'a AssistantContext>,
@@ -163,24 +243,31 @@ pub fn format_context_as_string<'a>(
    let mut file_context = Vec::new();
    let mut directory_context = Vec::new();
    let mut symbol_context = Vec::new();
+    let mut selection_context = Vec::new();
    let mut fetch_context = Vec::new();
    let mut thread_context = Vec::new();
+    let mut rules_context = Vec::new();

    for context in contexts {
        match context {
            AssistantContext::File(context) => file_context.push(context),
            AssistantContext::Directory(context) => directory_context.push(context),
            AssistantContext::Symbol(context) => symbol_context.push(context),
+            AssistantContext::Selection(context) => selection_context.push(context),
            AssistantContext::FetchedUrl(context) => fetch_context.push(context),
            AssistantContext::Thread(context) => thread_context.push(context),
+            AssistantContext::Rules(context) => rules_context.push(context),
+            AssistantContext::Image(_) => {}
        }
    }

    if file_context.is_empty()
        && directory_context.is_empty()
        && symbol_context.is_empty()
+        && selection_context.is_empty()
        && fetch_context.is_empty()
        && thread_context.is_empty()
+        && rules_context.is_empty()
    {
        return None;
    }
@@ -216,6 +303,15 @@ pub fn format_context_as_string<'a>(
        result.push_str("</symbols>\n");
    }

+    if !selection_context.is_empty() {
+        result.push_str("<selections>\n");
+        for context in selection_context {
+            result.push_str(&context.context_buffer.text);
+            result.push('\n');
+        }
+        result.push_str("</selections>\n");
+    }
+
    if !fetch_context.is_empty() {
        result.push_str("<fetched_urls>\n");
        for context in &fetch_context {
@@ -238,6 +334,18 @@ pub fn format_context_as_string<'a>(
        result.push_str("</conversation_threads>\n");
    }

+    if !rules_context.is_empty() {
+        result.push_str(
+            "<user_rules>\n\
+            The user has specified the following rules that should be applied:\n\n",
+        );
+        for context in &rules_context {
+            result.push_str(&context.text);
+            result.push('\n');
+        }
+        result.push_str("</user_rules>\n");
+    }
+
    result.push_str("</context>\n");
    Some(result)
 }
--- a/crates/agent/src/context_picker.rs
+++ b/crates/agent/src/context_picker.rs
@@ -1,6 +1,7 @@
 mod completion_provider;
 mod fetch_context_picker;
 mod file_context_picker;
+mod rules_context_picker;
 mod symbol_context_picker;
 mod thread_context_picker;

@@ -16,30 +17,91 @@ use gpui::{
    App, DismissEvent, Empty, Entity, EventEmitter, FocusHandle, Focusable, Subscription, Task,
    WeakEntity,
 };
+use language::Buffer;
 use multi_buffer::MultiBufferRow;
 use project::{Entry, ProjectPath};
+use prompt_store::UserPromptId;
+use rules_context_picker::RulesContextEntry;
 use symbol_context_picker::SymbolContextPicker;
 use thread_context_picker::{ThreadContextEntry, render_thread_context_entry};
 use ui::{
    ButtonLike, ContextMenu, ContextMenuEntry, ContextMenuItem, Disclosure, TintColor, prelude::*,
 };
+use uuid::Uuid;
 use workspace::{Workspace, notifications::NotifyResultExt};

 use crate::AssistantPanel;
+use crate::context::RULES_ICON;
 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::rules_context_picker::RulesContextPicker;
 use crate::context_picker::thread_context_picker::ThreadContextPicker;
 use crate::context_store::ContextStore;
 use crate::thread::ThreadId;
 use crate::thread_store::ThreadStore;

+#[derive(Debug, Clone, Copy, PartialEq, Eq)]
+enum ContextPickerEntry {
+    Mode(ContextPickerMode),
+    Action(ContextPickerAction),
+}
+
+impl ContextPickerEntry {
+    pub fn keyword(&self) -> &'static str {
+        match self {
+            Self::Mode(mode) => mode.keyword(),
+            Self::Action(action) => action.keyword(),
+        }
+    }
+
+    pub fn label(&self) -> &'static str {
+        match self {
+            Self::Mode(mode) => mode.label(),
+            Self::Action(action) => action.label(),
+        }
+    }
+
+    pub fn icon(&self) -> IconName {
+        match self {
+            Self::Mode(mode) => mode.icon(),
+            Self::Action(action) => action.icon(),
+        }
+    }
+}
+
 #[derive(Debug, Clone, Copy, PartialEq, Eq)]
 enum ContextPickerMode {
    File,
    Symbol,
    Fetch,
    Thread,
+    Rules,
+}
+
+#[derive(Debug, Clone, Copy, PartialEq, Eq)]
+enum ContextPickerAction {
+    AddSelections,
+}
+
+impl ContextPickerAction {
+    pub fn keyword(&self) -> &'static str {
+        match self {
+            Self::AddSelections => "selection",
+        }
+    }
+
+    pub fn label(&self) -> &'static str {
+        match self {
+            Self::AddSelections => "Selection",
+        }
+    }
+
+    pub fn icon(&self) -> IconName {
+        match self {
+            Self::AddSelections => IconName::Context,
+        }
+    }
 }

 impl TryFrom<&str> for ContextPickerMode {
@@ -51,18 +113,20 @@ impl TryFrom<&str> for ContextPickerMode {
            "symbol" => Ok(Self::Symbol),
            "fetch" => Ok(Self::Fetch),
            "thread" => Ok(Self::Thread),
+            "rules" => Ok(Self::Rules),
            _ => Err(format!("Invalid context picker mode: {}", value)),
        }
    }
 }

 impl ContextPickerMode {
-    pub fn mention_prefix(&self) -> &'static str {
+    pub fn keyword(&self) -> &'static str {
        match self {
            Self::File => "file",
            Self::Symbol => "symbol",
            Self::Fetch => "fetch",
            Self::Thread => "thread",
+            Self::Rules => "rules",
        }
    }

@@ -72,6 +136,7 @@ impl ContextPickerMode {
            Self::Symbol => "Symbols",
            Self::Fetch => "Fetch",
            Self::Thread => "Threads",
+            Self::Rules => "Rules",
        }
    }

@@ -81,6 +146,7 @@ impl ContextPickerMode {
            Self::Symbol => IconName::Code,
            Self::Fetch => IconName::Globe,
            Self::Thread => IconName::MessageBubbles,
+            Self::Rules => RULES_ICON,
        }
    }
 }
@@ -92,6 +158,7 @@ enum ContextPickerState {
    Symbol(Entity<SymbolContextPicker>),
    Fetch(Entity<FetchContextPicker>),
    Thread(Entity<ThreadContextPicker>),
+    Rules(Entity<RulesContextPicker>),
 }

 pub(super) struct ContextPicker {
@@ -155,7 +222,13 @@ impl ContextPicker {
                .enumerate()
                .map(|(ix, entry)| self.recent_menu_item(context_picker.clone(), ix, entry));

-            let modes = supported_context_picker_modes(&self.thread_store);
+            let entries = self
+                .workspace
+                .upgrade()
+                .map(|workspace| {
+                    available_context_picker_entries(&self.thread_store, &workspace, cx)
+                })
+                .unwrap_or_default();

            menu.when(has_recent, |menu| {
                menu.custom_row(|_, _| {
@@ -171,15 +244,15 @@ impl ContextPicker {
            })
            .extend(recent_entries)
            .when(has_recent, |menu| menu.separator())
-            .extend(modes.into_iter().map(|mode| {
+            .extend(entries.into_iter().map(|entry| {
                let context_picker = context_picker.clone();

-                ContextMenuEntry::new(mode.label())
-                    .icon(mode.icon())
+                ContextMenuEntry::new(entry.label())
+                    .icon(entry.icon())
                    .icon_size(IconSize::XSmall)
                    .icon_color(Color::Muted)
                    .handler(move |window, cx| {
-                        context_picker.update(cx, |this, cx| this.select_mode(mode, window, cx))
+                        context_picker.update(cx, |this, cx| this.select_entry(entry, window, cx))
                    })
            }))
            .keep_open_on_confirm()
@@ -198,61 +271,87 @@ impl ContextPicker {
        self.thread_store.is_some()
    }

-    fn select_mode(
+    fn select_entry(
        &mut self,
-        mode: ContextPickerMode,
+        entry: ContextPickerEntry,
        window: &mut Window,
        cx: &mut Context<Self>,
    ) {
        let context_picker = cx.entity().downgrade();

-        match mode {
-            ContextPickerMode::File => {
-                self.mode = ContextPickerState::File(cx.new(|cx| {
-                    FileContextPicker::new(
-                        context_picker.clone(),
-                        self.workspace.clone(),
-                        self.context_store.clone(),
-                        window,
-                        cx,
-                    )
-                }));
-            }
-            ContextPickerMode::Symbol => {
-                self.mode = ContextPickerState::Symbol(cx.new(|cx| {
-                    SymbolContextPicker::new(
-                        context_picker.clone(),
-                        self.workspace.clone(),
-                        self.context_store.clone(),
-                        window,
-                        cx,
-                    )
-                }));
-            }
-            ContextPickerMode::Fetch => {
-                self.mode = ContextPickerState::Fetch(cx.new(|cx| {
-                    FetchContextPicker::new(
-                        context_picker.clone(),
-                        self.workspace.clone(),
-                        self.context_store.clone(),
-                        window,
-                        cx,
-                    )
-                }));
-            }
-            ContextPickerMode::Thread => {
-                if let Some(thread_store) = self.thread_store.as_ref() {
-                    self.mode = ContextPickerState::Thread(cx.new(|cx| {
-                        ThreadContextPicker::new(
-                            thread_store.clone(),
+        match entry {
+            ContextPickerEntry::Mode(mode) => match mode {
+                ContextPickerMode::File => {
+                    self.mode = ContextPickerState::File(cx.new(|cx| {
+                        FileContextPicker::new(
                            context_picker.clone(),
+                            self.workspace.clone(),
                            self.context_store.clone(),
                            window,
                            cx,
                        )
                    }));
                }
-            }
+                ContextPickerMode::Symbol => {
+                    self.mode = ContextPickerState::Symbol(cx.new(|cx| {
+                        SymbolContextPicker::new(
+                            context_picker.clone(),
+                            self.workspace.clone(),
+                            self.context_store.clone(),
+                            window,
+                            cx,
+                        )
+                    }));
+                }
+                ContextPickerMode::Rules => {
+                    if let Some(thread_store) = self.thread_store.as_ref() {
+                        self.mode = ContextPickerState::Rules(cx.new(|cx| {
+                            RulesContextPicker::new(
+                                thread_store.clone(),
+                                context_picker.clone(),
+                                self.context_store.clone(),
+                                window,
+                                cx,
+                            )
+                        }));
+                    }
+                }
+                ContextPickerMode::Fetch => {
+                    self.mode = ContextPickerState::Fetch(cx.new(|cx| {
+                        FetchContextPicker::new(
+                            context_picker.clone(),
+                            self.workspace.clone(),
+                            self.context_store.clone(),
+                            window,
+                            cx,
+                        )
+                    }));
+                }
+                ContextPickerMode::Thread => {
+                    if let Some(thread_store) = self.thread_store.as_ref() {
+                        self.mode = ContextPickerState::Thread(cx.new(|cx| {
+                            ThreadContextPicker::new(
+                                thread_store.clone(),
+                                context_picker.clone(),
+                                self.context_store.clone(),
+                                window,
+                                cx,
+                            )
+                        }));
+                    }
+                }
+            },
+            ContextPickerEntry::Action(action) => match action {
+                ContextPickerAction::AddSelections => {
+                    if let Some((context_store, workspace)) =
+                        self.context_store.upgrade().zip(self.workspace.upgrade())
+                    {
+                        add_selections_as_context(&context_store, &workspace, cx);
+                    }
+
+                    cx.emit(DismissEvent);
+                }
+            },
        }

        cx.notify();
@@ -381,6 +480,7 @@ impl ContextPicker {
            ContextPickerState::Symbol(entity) => entity.update(cx, |_, cx| cx.notify()),
            ContextPickerState::Fetch(entity) => entity.update(cx, |_, cx| cx.notify()),
            ContextPickerState::Thread(entity) => entity.update(cx, |_, cx| cx.notify()),
+            ContextPickerState::Rules(entity) => entity.update(cx, |_, cx| cx.notify()),
        }
    }
 }
@@ -395,6 +495,7 @@ impl Focusable for ContextPicker {
            ContextPickerState::Symbol(symbol_picker) => symbol_picker.focus_handle(cx),
            ContextPickerState::Fetch(fetch_picker) => fetch_picker.focus_handle(cx),
            ContextPickerState::Thread(thread_picker) => thread_picker.focus_handle(cx),
+            ContextPickerState::Rules(user_rules_picker) => user_rules_picker.focus_handle(cx),
        }
    }
 }
@@ -410,6 +511,9 @@ impl Render for ContextPicker {
                ContextPickerState::Symbol(symbol_picker) => parent.child(symbol_picker.clone()),
                ContextPickerState::Fetch(fetch_picker) => parent.child(fetch_picker.clone()),
                ContextPickerState::Thread(thread_picker) => parent.child(thread_picker.clone()),
+                ContextPickerState::Rules(user_rules_picker) => {
+                    parent.child(user_rules_picker.clone())
+                }
            })
    }
 }
@@ -421,18 +525,37 @@ enum RecentEntry {
    Thread(ThreadContextEntry),
 }

-fn supported_context_picker_modes(
+fn available_context_picker_entries(
    thread_store: &Option<WeakEntity<ThreadStore>>,
-) -> Vec<ContextPickerMode> {
-    let mut modes = vec![
-        ContextPickerMode::File,
-        ContextPickerMode::Symbol,
-        ContextPickerMode::Fetch,
+    workspace: &Entity<Workspace>,
+    cx: &mut App,
+) -> Vec<ContextPickerEntry> {
+    let mut entries = vec![
+        ContextPickerEntry::Mode(ContextPickerMode::File),
+        ContextPickerEntry::Mode(ContextPickerMode::Symbol),
    ];
-    if thread_store.is_some() {
-        modes.push(ContextPickerMode::Thread);
+
+    let has_selection = workspace
+        .read(cx)
+        .active_item(cx)
+        .and_then(|item| item.downcast::<Editor>())
+        .map_or(false, |editor| {
+            editor.update(cx, |editor, cx| editor.has_non_empty_selection(cx))
+        });
+    if has_selection {
+        entries.push(ContextPickerEntry::Action(
+            ContextPickerAction::AddSelections,
+        ));
    }
-    modes
+
+    if thread_store.is_some() {
+        entries.push(ContextPickerEntry::Mode(ContextPickerMode::Thread));
+        entries.push(ContextPickerEntry::Mode(ContextPickerMode::Rules));
+    }
+
+    entries.push(ContextPickerEntry::Mode(ContextPickerMode::Fetch));
+
+    entries
 }

 fn recent_context_picker_entries(
@@ -491,6 +614,54 @@ fn recent_context_picker_entries(
    recent
 }

+fn add_selections_as_context(
+    context_store: &Entity<ContextStore>,
+    workspace: &Entity<Workspace>,
+    cx: &mut App,
+) {
+    let selection_ranges = selection_ranges(workspace, cx);
+    context_store.update(cx, |context_store, cx| {
+        for (buffer, range) in selection_ranges {
+            context_store
+                .add_selection(buffer, range, cx)
+                .detach_and_log_err(cx);
+        }
+    })
+}
+
+fn selection_ranges(
+    workspace: &Entity<Workspace>,
+    cx: &mut App,
+) -> Vec<(Entity<Buffer>, Range<text::Anchor>)> {
+    let Some(editor) = workspace
+        .read(cx)
+        .active_item(cx)
+        .and_then(|item| item.act_as::<Editor>(cx))
+    else {
+        return Vec::new();
+    };
+
+    editor.update(cx, |editor, cx| {
+        let selections = editor.selections.all_adjusted(cx);
+
+        let buffer = editor.buffer().clone().read(cx);
+        let snapshot = buffer.snapshot(cx);
+
+        selections
+            .into_iter()
+            .map(|s| snapshot.anchor_after(s.start)..snapshot.anchor_before(s.end))
+            .flat_map(|range| {
+                let (start_buffer, start) = buffer.text_anchor_for_position(range.start, cx)?;
+                let (end_buffer, end) = buffer.text_anchor_for_position(range.end, cx)?;
+                if start_buffer != end_buffer {
+                    return None;
+                }
+                Some((start_buffer, start..end))
+            })
+            .collect::<Vec<_>>()
+    })
+}
+
 pub(crate) fn insert_fold_for_mention(
    excerpt_id: ExcerptId,
    crease_start: text::Anchor,
@@ -510,24 +681,11 @@ pub(crate) fn insert_fold_for_mention(
        let start = start.bias_right(&snapshot);
        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(),
-            ),
-            merge_adjacent: false,
-            ..Default::default()
-        };
-
-        let render_trailer =
-            move |_row, _unfold, _window: &mut Window, _cx: &mut App| Empty.into_any();
-
-        let crease = Crease::inline(
+        let crease = crease_for_mention(
+            crease_label,
+            crease_icon_path,
            start..end,
-            placeholder.clone(),
-            fold_toggle("mention"),
-            render_trailer,
+            editor_entity.downgrade(),
        );

        editor.display_map.update(cx, |display_map, cx| {
@@ -536,6 +694,29 @@ pub(crate) fn insert_fold_for_mention(
    });
 }

+pub fn crease_for_mention(
+    label: SharedString,
+    icon_path: SharedString,
+    range: Range<Anchor>,
+    editor_entity: WeakEntity<Editor>,
+) -> Crease<Anchor> {
+    let placeholder = FoldPlaceholder {
+        render: render_fold_icon_button(icon_path, label, editor_entity),
+        merge_adjacent: false,
+        ..Default::default()
+    };
+
+    let render_trailer = move |_row, _unfold, _window: &mut Window, _cx: &mut App| Empty.into_any();
+
+    let crease = Crease::inline(
+        range,
+        placeholder.clone(),
+        fold_toggle("mention"),
+        render_trailer,
+    );
+    crease
+}
+
 fn render_fold_icon_button(
    icon_path: SharedString,
    label: SharedString,
@@ -624,15 +805,19 @@ fn fold_toggle(
 pub enum MentionLink {
    File(ProjectPath, Entry),
    Symbol(ProjectPath, String),
+    Selection(ProjectPath, Range<usize>),
    Fetch(String),
    Thread(ThreadId),
+    Rules(UserPromptId),
 }

 impl MentionLink {
    const FILE: &str = "@file";
    const SYMBOL: &str = "@symbol";
+    const SELECTION: &str = "@selection";
    const THREAD: &str = "@thread";
    const FETCH: &str = "@fetch";
+    const RULES: &str = "@rules";

    const SEPARATOR: &str = ":";

@@ -640,7 +825,9 @@ impl MentionLink {
        url.starts_with(Self::FILE)
            || url.starts_with(Self::SYMBOL)
            || url.starts_with(Self::FETCH)
+            || url.starts_with(Self::SELECTION)
            || url.starts_with(Self::THREAD)
+            || url.starts_with(Self::RULES)
    }

    pub fn for_file(file_name: &str, full_path: &str) -> String {
@@ -657,14 +844,31 @@ impl MentionLink {
        )
    }

-    pub fn for_fetch(url: &str) -> String {
-        format!("[@{}]({}:{})", url, Self::FETCH, url)
+    pub fn for_selection(file_name: &str, full_path: &str, line_range: Range<usize>) -> String {
+        format!(
+            "[@{} ({}-{})]({}:{}:{}-{})",
+            file_name,
+            line_range.start,
+            line_range.end,
+            Self::SELECTION,
+            full_path,
+            line_range.start,
+            line_range.end
+        )
    }

    pub fn for_thread(thread: &ThreadContextEntry) -> String {
        format!("[@{}]({}:{})", thread.summary, Self::THREAD, thread.id)
    }

+    pub fn for_fetch(url: &str) -> String {
+        format!("[@{}]({}:{})", url, Self::FETCH, url)
+    }
+
+    pub fn for_rules(rules: &RulesContextEntry) -> String {
+        format!("[@{}]({}:{})", rules.title, Self::RULES, rules.prompt_id.0)
+    }
+
    pub fn try_parse(link: &str, workspace: &Entity<Workspace>, cx: &App) -> Option<Self> {
        fn extract_project_path_from_link(
            path: &str,
@@ -701,11 +905,29 @@ impl MentionLink {
                let project_path = extract_project_path_from_link(path, workspace, cx)?;
                Some(MentionLink::Symbol(project_path, symbol.to_string()))
            }
+            Self::SELECTION => {
+                let (path, line_args) = argument.split_once(Self::SEPARATOR)?;
+                let project_path = extract_project_path_from_link(path, workspace, cx)?;
+
+                let line_range = {
+                    let (start, end) = line_args
+                        .trim_start_matches('(')
+                        .trim_end_matches(')')
+                        .split_once('-')?;
+                    start.parse::<usize>().ok()?..end.parse::<usize>().ok()?
+                };
+
+                Some(MentionLink::Selection(project_path, line_range))
+            }
            Self::THREAD => {
                let thread_id = ThreadId::from(argument);
                Some(MentionLink::Thread(thread_id))
            }
            Self::FETCH => Some(MentionLink::Fetch(argument.to_string())),
+            Self::RULES => {
+                let prompt_id = UserPromptId(Uuid::try_parse(argument).ok()?);
+                Some(MentionLink::Rules(prompt_id))
+            }
            _ => None,
        }
    }
--- a/crates/agent/src/context_picker/completion_provider.rs
+++ b/crates/agent/src/context_picker/completion_provider.rs
@@ -1,23 +1,27 @@
 use std::cell::RefCell;
 use std::ops::Range;
-use std::path::Path;
+use std::path::{Path, PathBuf};
 use std::rc::Rc;
 use std::sync::Arc;
 use std::sync::atomic::AtomicBool;

 use anyhow::Result;
-use editor::{CompletionProvider, Editor, ExcerptId};
+use editor::{CompletionProvider, Editor, ExcerptId, ToOffset as _};
 use file_icons::FileIcons;
+use fuzzy::{StringMatch, StringMatchCandidate};
 use gpui::{App, Entity, Task, WeakEntity};
 use http_client::HttpClientWithUrl;
+use itertools::Itertools;
 use language::{Buffer, CodeLabel, HighlightId};
 use lsp::CompletionContext;
 use project::{Completion, CompletionIntent, ProjectPath, Symbol, WorktreeId};
+use prompt_store::PromptId;
 use rope::Point;
-use text::{Anchor, ToPoint};
+use text::{Anchor, OffsetRangeExt, ToPoint};
 use ui::prelude::*;
 use workspace::Workspace;

+use crate::context::RULES_ICON;
 use crate::context_picker::file_context_picker::search_files;
 use crate::context_picker::symbol_context_picker::search_symbols;
 use crate::context_store::ContextStore;
@@ -25,11 +29,12 @@ use crate::thread_store::ThreadStore;

 use super::fetch_context_picker::fetch_url_content;
 use super::file_context_picker::FileMatch;
+use super::rules_context_picker::{RulesContextEntry, search_rules};
 use super::symbol_context_picker::SymbolMatch;
 use super::thread_context_picker::{ThreadContextEntry, ThreadMatch, search_threads};
 use super::{
-    ContextPickerMode, MentionLink, RecentEntry, recent_context_picker_entries,
-    supported_context_picker_modes,
+    ContextPickerAction, ContextPickerEntry, ContextPickerMode, MentionLink, RecentEntry,
+    available_context_picker_entries, recent_context_picker_entries, selection_ranges,
 };

 pub(crate) enum Match {
@@ -37,7 +42,26 @@ pub(crate) enum Match {
    File(FileMatch),
    Thread(ThreadMatch),
    Fetch(SharedString),
-    Mode(ContextPickerMode),
+    Rules(RulesContextEntry),
+    Entry(EntryMatch),
+}
+
+pub struct EntryMatch {
+    mat: Option<StringMatch>,
+    entry: ContextPickerEntry,
+}
+
+impl Match {
+    pub fn score(&self) -> f64 {
+        match self {
+            Match::File(file) => file.mat.score,
+            Match::Entry(mode) => mode.mat.as_ref().map(|mat| mat.score).unwrap_or(1.),
+            Match::Thread(_) => 1.,
+            Match::Symbol(_) => 1.,
+            Match::Fetch(_) => 1.,
+            Match::Rules(_) => 1.,
+        }
+    }
 }

 fn search(
@@ -94,6 +118,21 @@ fn search(
                Task::ready(Vec::new())
            }
        }
+        Some(ContextPickerMode::Rules) => {
+            if let Some(thread_store) = thread_store.as_ref().and_then(|t| t.upgrade()) {
+                let search_rules_task =
+                    search_rules(query.clone(), cancellation_flag.clone(), thread_store, cx);
+                cx.background_spawn(async move {
+                    search_rules_task
+                        .await
+                        .into_iter()
+                        .map(Match::Rules)
+                        .collect::<Vec<_>>()
+                })
+            } else {
+                Task::ready(Vec::new())
+            }
+        }
        None => {
            if query.is_empty() {
                let mut matches = recent_entries
@@ -124,21 +163,61 @@ fn search(
                    .collect::<Vec<_>>();

                matches.extend(
-                    supported_context_picker_modes(&thread_store)
+                    available_context_picker_entries(&thread_store, &workspace, cx)
                        .into_iter()
-                        .map(Match::Mode),
+                        .map(|mode| {
+                            Match::Entry(EntryMatch {
+                                entry: mode,
+                                mat: None,
+                            })
+                        }),
                );

                Task::ready(matches)
            } else {
+                let executor = cx.background_executor().clone();
+
                let search_files_task =
                    search_files(query.clone(), cancellation_flag.clone(), &workspace, cx);
+
+                let entries = available_context_picker_entries(&thread_store, &workspace, cx);
+                let entry_candidates = entries
+                    .iter()
+                    .enumerate()
+                    .map(|(ix, entry)| StringMatchCandidate::new(ix, entry.keyword()))
+                    .collect::<Vec<_>>();
+
                cx.background_spawn(async move {
-                    search_files_task
+                    let mut matches = search_files_task
                        .await
                        .into_iter()
                        .map(Match::File)
-                        .collect()
+                        .collect::<Vec<_>>();
+
+                    let entry_matches = fuzzy::match_strings(
+                        &entry_candidates,
+                        &query,
+                        false,
+                        100,
+                        &Arc::new(AtomicBool::default()),
+                        executor,
+                    )
+                    .await;
+
+                    matches.extend(entry_matches.into_iter().map(|mat| {
+                        Match::Entry(EntryMatch {
+                            entry: entries[mat.candidate_id],
+                            mat: Some(mat),
+                        })
+                    }));
+
+                    matches.sort_by(|a, b| {
+                        b.score()
+                            .partial_cmp(&a.score())
+                            .unwrap_or(std::cmp::Ordering::Equal)
+                    });
+
+                    matches
                })
            }
        }
@@ -167,19 +246,137 @@ impl ContextPickerCompletionProvider {
        }
    }

-    fn completion_for_mode(source_range: Range<Anchor>, mode: ContextPickerMode) -> Completion {
-        Completion {
-            replace_range: source_range.clone(),
-            new_text: format!("@{} ", mode.mention_prefix()),
-            label: CodeLabel::plain(mode.label().to_string(), None),
-            icon_path: Some(mode.icon().path().into()),
-            documentation: None,
-            source: project::CompletionSource::Custom,
-            insert_text_mode: None,
-            // This ensures that when a user accepts this completion, the
-            // completion menu will still be shown after "@category " is
-            // inserted
-            confirm: Some(Arc::new(|_, _, _| true)),
+    fn completion_for_entry(
+        entry: ContextPickerEntry,
+        excerpt_id: ExcerptId,
+        source_range: Range<Anchor>,
+        editor: Entity<Editor>,
+        context_store: Entity<ContextStore>,
+        workspace: &Entity<Workspace>,
+        cx: &mut App,
+    ) -> Option<Completion> {
+        match entry {
+            ContextPickerEntry::Mode(mode) => Some(Completion {
+                replace_range: source_range.clone(),
+                new_text: format!("@{} ", mode.keyword()),
+                label: CodeLabel::plain(mode.label().to_string(), None),
+                icon_path: Some(mode.icon().path().into()),
+                documentation: None,
+                source: project::CompletionSource::Custom,
+                insert_text_mode: None,
+                // This ensures that when a user accepts this completion, the
+                // completion menu will still be shown after "@category " is
+                // inserted
+                confirm: Some(Arc::new(|_, _, _| true)),
+            }),
+            ContextPickerEntry::Action(action) => {
+                let (new_text, on_action) = match action {
+                    ContextPickerAction::AddSelections => {
+                        let selections = selection_ranges(workspace, cx);
+
+                        let selection_infos = selections
+                            .iter()
+                            .map(|(buffer, range)| {
+                                let full_path = buffer
+                                    .read(cx)
+                                    .file()
+                                    .map(|file| file.full_path(cx))
+                                    .unwrap_or_else(|| PathBuf::from("untitled"));
+                                let file_name = full_path
+                                    .file_name()
+                                    .unwrap_or_default()
+                                    .to_string_lossy()
+                                    .to_string();
+                                let line_range = range.to_point(&buffer.read(cx).snapshot());
+
+                                let link = MentionLink::for_selection(
+                                    &file_name,
+                                    &full_path.to_string_lossy(),
+                                    line_range.start.row as usize..line_range.end.row as usize,
+                                );
+                                (file_name, link, line_range)
+                            })
+                            .collect::<Vec<_>>();
+
+                        let new_text = selection_infos.iter().map(|(_, link, _)| link).join(" ");
+
+                        let callback = Arc::new({
+                            let context_store = context_store.clone();
+                            let selections = selections.clone();
+                            let selection_infos = selection_infos.clone();
+                            move |_, _: &mut Window, cx: &mut App| {
+                                context_store.update(cx, |context_store, cx| {
+                                    for (buffer, range) in &selections {
+                                        context_store
+                                            .add_selection(buffer.clone(), range.clone(), cx)
+                                            .detach_and_log_err(cx)
+                                    }
+                                });
+
+                                let editor = editor.clone();
+                                let selection_infos = selection_infos.clone();
+                                cx.defer(move |cx| {
+                                    let mut current_offset = 0;
+                                    for (file_name, link, line_range) in selection_infos.iter() {
+                                        let snapshot =
+                                            editor.read(cx).buffer().read(cx).snapshot(cx);
+                                        let Some(start) = snapshot
+                                            .anchor_in_excerpt(excerpt_id, source_range.start)
+                                        else {
+                                            return;
+                                        };
+
+                                        let offset = start.to_offset(&snapshot) + current_offset;
+                                        let text_len = link.len();
+
+                                        let range = snapshot.anchor_after(offset)
+                                            ..snapshot.anchor_after(offset + text_len);
+
+                                        let crease = super::crease_for_mention(
+                                            format!(
+                                                "{} ({}-{})",
+                                                file_name,
+                                                line_range.start.row + 1,
+                                                line_range.end.row + 1
+                                            )
+                                            .into(),
+                                            IconName::Context.path().into(),
+                                            range,
+                                            editor.downgrade(),
+                                        );
+
+                                        editor.update(cx, |editor, cx| {
+                                            editor.display_map.update(cx, |display_map, cx| {
+                                                display_map.fold(vec![crease], cx);
+                                            });
+                                        });
+
+                                        current_offset += text_len + 1;
+                                    }
+                                });
+
+                                false
+                            }
+                        });
+
+                        (new_text, callback)
+                    }
+                };
+
+                Some(Completion {
+                    replace_range: source_range.clone(),
+                    new_text,
+                    label: CodeLabel::plain(action.label().to_string(), None),
+                    icon_path: Some(action.icon().path().into()),
+                    documentation: None,
+                    source: project::CompletionSource::Custom,
+                    insert_text_mode: None,
+                    // This ensures that when a user accepts this completion, the
+                    // completion menu will still be shown after "@category " is
+                    // inserted
+                    confirm: Some(on_action),
+                })
+            }
        }
    }

@@ -234,6 +431,60 @@ impl ContextPickerCompletionProvider {
        }
    }

+    fn completion_for_rules(
+        rules: RulesContextEntry,
+        excerpt_id: ExcerptId,
+        source_range: Range<Anchor>,
+        editor: Entity<Editor>,
+        context_store: Entity<ContextStore>,
+        thread_store: Entity<ThreadStore>,
+    ) -> Completion {
+        let new_text = MentionLink::for_rules(&rules);
+        let new_text_len = new_text.len();
+        Completion {
+            replace_range: source_range.clone(),
+            new_text,
+            label: CodeLabel::plain(rules.title.to_string(), None),
+            documentation: None,
+            insert_text_mode: None,
+            source: project::CompletionSource::Custom,
+            icon_path: Some(RULES_ICON.path().into()),
+            confirm: Some(confirm_completion_callback(
+                RULES_ICON.path().into(),
+                rules.title.clone(),
+                excerpt_id,
+                source_range.start,
+                new_text_len,
+                editor.clone(),
+                move |cx| {
+                    let prompt_uuid = rules.prompt_id;
+                    let prompt_id = PromptId::User { uuid: prompt_uuid };
+                    let context_store = context_store.clone();
+                    let Some(prompt_store) = thread_store.read(cx).prompt_store() else {
+                        log::error!("Can't add user rules as prompt store is missing.");
+                        return;
+                    };
+                    let prompt_store = prompt_store.read(cx);
+                    let Some(metadata) = prompt_store.metadata(prompt_id) else {
+                        return;
+                    };
+                    let Some(title) = metadata.title else {
+                        return;
+                    };
+                    let text_task = prompt_store.load(prompt_id, cx);
+
+                    cx.spawn(async move |cx| {
+                        let text = text_task.await?;
+                        context_store.update(cx, |context_store, cx| {
+                            context_store.add_rules(prompt_uuid, title, text, false, cx)
+                        })
+                    })
+                    .detach_and_log_err(cx);
+                },
+            )),
+        }
+    }
+
    fn completion_for_fetch(
        source_range: Range<Anchor>,
        url_to_fetch: SharedString,
@@ -540,6 +791,17 @@ impl CompletionProvider for ContextPickerCompletionProvider {
                                thread_store,
                            ))
                        }
+                        Match::Rules(user_rules) => {
+                            let thread_store = thread_store.as_ref().and_then(|t| t.upgrade())?;
+                            Some(Self::completion_for_rules(
+                                user_rules,
+                                excerpt_id,
+                                source_range.clone(),
+                                editor.clone(),
+                                context_store.clone(),
+                                thread_store,
+                            ))
+                        }
                        Match::Fetch(url) => Some(Self::completion_for_fetch(
                            source_range.clone(),
                            url,
@@ -548,9 +810,15 @@ impl CompletionProvider for ContextPickerCompletionProvider {
                            context_store.clone(),
                            http_client.clone(),
                        )),
-                        Match::Mode(mode) => {
-                            Some(Self::completion_for_mode(source_range.clone(), mode))
-                        }
+                        Match::Entry(EntryMatch { entry, .. }) => Self::completion_for_entry(
+                            entry,
+                            excerpt_id,
+                            source_range.clone(),
+                            editor.clone(),
+                            context_store.clone(),
+                            &workspace,
+                            cx,
+                        ),
                    })
                    .collect()
            })?))
--- a/crates/agent/src/context_picker/rules_context_picker.rs
+++ b/crates/agent/src/context_picker/rules_context_picker.rs
@@ -0,0 +1,248 @@
+use std::sync::Arc;
+use std::sync::atomic::AtomicBool;
+
+use anyhow::anyhow;
+use gpui::{App, DismissEvent, Entity, FocusHandle, Focusable, Task, WeakEntity};
+use picker::{Picker, PickerDelegate};
+use prompt_store::{PromptId, UserPromptId};
+use ui::{ListItem, prelude::*};
+
+use crate::context::RULES_ICON;
+use crate::context_picker::ContextPicker;
+use crate::context_store::{self, ContextStore};
+use crate::thread_store::ThreadStore;
+
+pub struct RulesContextPicker {
+    picker: Entity<Picker<RulesContextPickerDelegate>>,
+}
+
+impl RulesContextPicker {
+    pub fn new(
+        thread_store: WeakEntity<ThreadStore>,
+        context_picker: WeakEntity<ContextPicker>,
+        context_store: WeakEntity<context_store::ContextStore>,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> Self {
+        let delegate = RulesContextPickerDelegate::new(thread_store, context_picker, context_store);
+        let picker = cx.new(|cx| Picker::uniform_list(delegate, window, cx));
+
+        RulesContextPicker { picker }
+    }
+}
+
+impl Focusable for RulesContextPicker {
+    fn focus_handle(&self, cx: &App) -> FocusHandle {
+        self.picker.focus_handle(cx)
+    }
+}
+
+impl Render for RulesContextPicker {
+    fn render(&mut self, _window: &mut Window, _cx: &mut Context<Self>) -> impl IntoElement {
+        self.picker.clone()
+    }
+}
+
+#[derive(Debug, Clone)]
+pub struct RulesContextEntry {
+    pub prompt_id: UserPromptId,
+    pub title: SharedString,
+}
+
+pub struct RulesContextPickerDelegate {
+    thread_store: WeakEntity<ThreadStore>,
+    context_picker: WeakEntity<ContextPicker>,
+    context_store: WeakEntity<context_store::ContextStore>,
+    matches: Vec<RulesContextEntry>,
+    selected_index: usize,
+}
+
+impl RulesContextPickerDelegate {
+    pub fn new(
+        thread_store: WeakEntity<ThreadStore>,
+        context_picker: WeakEntity<ContextPicker>,
+        context_store: WeakEntity<context_store::ContextStore>,
+    ) -> Self {
+        RulesContextPickerDelegate {
+            thread_store,
+            context_picker,
+            context_store,
+            matches: Vec::new(),
+            selected_index: 0,
+        }
+    }
+}
+
+impl PickerDelegate for RulesContextPickerDelegate {
+    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 available rules…".into()
+    }
+
+    fn update_matches(
+        &mut self,
+        query: String,
+        window: &mut Window,
+        cx: &mut Context<Picker<Self>>,
+    ) -> Task<()> {
+        let Some(thread_store) = self.thread_store.upgrade() else {
+            return Task::ready(());
+        };
+
+        let search_task = search_rules(query, Arc::new(AtomicBool::default()), thread_store, cx);
+        cx.spawn_in(window, async move |this, cx| {
+            let matches = search_task.await;
+            this.update(cx, |this, cx| {
+                this.delegate.matches = matches;
+                this.delegate.selected_index = 0;
+                cx.notify();
+            })
+            .ok();
+        })
+    }
+
+    fn confirm(&mut self, _secondary: bool, _window: &mut Window, cx: &mut Context<Picker<Self>>) {
+        let Some(entry) = self.matches.get(self.selected_index) else {
+            return;
+        };
+
+        let Some(thread_store) = self.thread_store.upgrade() else {
+            return;
+        };
+
+        let prompt_id = entry.prompt_id;
+
+        let load_rules_task = thread_store.update(cx, |thread_store, cx| {
+            thread_store.load_rules(prompt_id, cx)
+        });
+
+        cx.spawn(async move |this, cx| {
+            let (metadata, text) = load_rules_task.await?;
+            let Some(title) = metadata.title else {
+                return Err(anyhow!("Encountered user rule with no title when attempting to add it to agent context."));
+            };
+            this.update(cx, |this, cx| {
+                this.delegate
+                    .context_store
+                    .update(cx, |context_store, cx| {
+                        context_store.add_rules(prompt_id, title, text, true, cx)
+                    })
+                    .ok();
+            })
+        })
+        .detach_and_log_err(cx);
+    }
+
+    fn dismissed(&mut self, _window: &mut Window, cx: &mut Context<Picker<Self>>) {
+        self.context_picker
+            .update(cx, |_, cx| {
+                cx.emit(DismissEvent);
+            })
+            .ok();
+    }
+
+    fn render_match(
+        &self,
+        ix: usize,
+        selected: bool,
+        _window: &mut Window,
+        cx: &mut Context<Picker<Self>>,
+    ) -> Option<Self::ListItem> {
+        let thread = &self.matches[ix];
+
+        Some(ListItem::new(ix).inset(true).toggle_state(selected).child(
+            render_thread_context_entry(thread, self.context_store.clone(), cx),
+        ))
+    }
+}
+
+pub fn render_thread_context_entry(
+    user_rules: &RulesContextEntry,
+    context_store: WeakEntity<ContextStore>,
+    cx: &mut App,
+) -> Div {
+    let added = context_store.upgrade().map_or(false, |ctx_store| {
+        ctx_store
+            .read(cx)
+            .includes_user_rules(&user_rules.prompt_id)
+            .is_some()
+    });
+
+    h_flex()
+        .gap_1p5()
+        .w_full()
+        .justify_between()
+        .child(
+            h_flex()
+                .gap_1p5()
+                .max_w_72()
+                .child(
+                    Icon::new(RULES_ICON)
+                        .size(IconSize::XSmall)
+                        .color(Color::Muted),
+                )
+                .child(Label::new(user_rules.title.clone()).truncate()),
+        )
+        .when(added, |el| {
+            el.child(
+                h_flex()
+                    .gap_1()
+                    .child(
+                        Icon::new(IconName::Check)
+                            .size(IconSize::Small)
+                            .color(Color::Success),
+                    )
+                    .child(Label::new("Added").size(LabelSize::Small)),
+            )
+        })
+}
+
+pub(crate) fn search_rules(
+    query: String,
+    cancellation_flag: Arc<AtomicBool>,
+    thread_store: Entity<ThreadStore>,
+    cx: &mut App,
+) -> Task<Vec<RulesContextEntry>> {
+    let Some(prompt_store) = thread_store.read(cx).prompt_store() else {
+        return Task::ready(vec![]);
+    };
+    let search_task = prompt_store.read(cx).search(query, cancellation_flag, cx);
+    cx.background_spawn(async move {
+        search_task
+            .await
+            .into_iter()
+            .flat_map(|metadata| {
+                // Default prompts are filtered out as they are automatically included.
+                if metadata.default {
+                    None
+                } else {
+                    match metadata.id {
+                        PromptId::EditWorkflow => None,
+                        PromptId::User { uuid } => Some(RulesContextEntry {
+                            prompt_id: uuid,
+                            title: metadata.title?,
+                        }),
+                    }
+                }
+            })
+            .collect::<Vec<_>>()
+    })
+}
--- a/crates/agent/src/context_picker/thread_context_picker.rs
+++ b/crates/agent/src/context_picker/thread_context_picker.rs
@@ -103,11 +103,11 @@ impl PickerDelegate for ThreadContextPickerDelegate {
        window: &mut Window,
        cx: &mut Context<Picker<Self>>,
    ) -> Task<()> {
-        let Some(threads) = self.thread_store.upgrade() else {
+        let Some(thread_store) = self.thread_store.upgrade() else {
            return Task::ready(());
        };

-        let search_task = search_threads(query, Arc::new(AtomicBool::default()), threads, cx);
+        let search_task = search_threads(query, Arc::new(AtomicBool::default()), thread_store, cx);
        cx.spawn_in(window, async move |this, cx| {
            let matches = search_task.await;
            this.update(cx, |this, cx| {
@@ -217,15 +217,15 @@ pub(crate) fn search_threads(
    thread_store: Entity<ThreadStore>,
    cx: &mut App,
 ) -> Task<Vec<ThreadMatch>> {
-    let threads = thread_store.update(cx, |this, _cx| {
-        this.threads()
-            .into_iter()
-            .map(|thread| ThreadContextEntry {
-                id: thread.id,
-                summary: thread.summary,
-            })
-            .collect::<Vec<_>>()
-    });
+    let threads = thread_store
+        .read(cx)
+        .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 {
--- a/crates/agent/src/context_store.rs
+++ b/crates/agent/src/context_store.rs
@@ -6,17 +6,20 @@ use anyhow::{Context as _, Result, anyhow};
 use collections::{BTreeMap, HashMap, HashSet};
 use futures::future::join_all;
 use futures::{self, Future, FutureExt, future};
-use gpui::{App, AppContext as _, Context, Entity, SharedString, Task, WeakEntity};
-use language::{Buffer, File};
-use project::{Project, ProjectItem, ProjectPath, Worktree};
-use rope::Rope;
+use gpui::{App, AppContext as _, Context, Entity, Image, SharedString, Task, WeakEntity};
+use language::Buffer;
+use language_model::LanguageModelImage;
+use project::{Project, ProjectEntryId, ProjectItem, ProjectPath, Worktree};
+use prompt_store::UserPromptId;
+use rope::{Point, Rope};
 use text::{Anchor, BufferId, OffsetRangeExt};
 use util::{ResultExt as _, maybe};

 use crate::ThreadStore;
 use crate::context::{
    AssistantContext, ContextBuffer, ContextId, ContextSymbol, ContextSymbolId, DirectoryContext,
-    FetchedUrlContext, FileContext, SymbolContext, ThreadContext,
+    FetchedUrlContext, FileContext, ImageContext, RulesContext, SelectionContext, SymbolContext,
+    ThreadContext,
 };
 use crate::context_strip::SuggestedContext;
 use crate::thread::{Thread, ThreadId};
@@ -25,7 +28,6 @@ pub struct ContextStore {
    project: WeakEntity<Project>,
    context: Vec<AssistantContext>,
    thread_store: Option<WeakEntity<ThreadStore>>,
-    // TODO: If an EntityId is used for all context types (like BufferId), can remove ContextId.
    next_context_id: ContextId,
    files: BTreeMap<BufferId, ContextId>,
    directories: HashMap<ProjectPath, ContextId>,
@@ -35,6 +37,7 @@ pub struct ContextStore {
    threads: HashMap<ThreadId, ContextId>,
    thread_summary_tasks: Vec<Task<()>>,
    fetched_urls: HashMap<String, ContextId>,
+    user_rules: HashMap<UserPromptId, ContextId>,
 }

 impl ContextStore {
@@ -55,6 +58,7 @@ impl ContextStore {
            threads: HashMap::default(),
            thread_summary_tasks: Vec::new(),
            fetched_urls: HashMap::default(),
+            user_rules: HashMap::default(),
        }
    }

@@ -72,6 +76,7 @@ impl ContextStore {
        self.directories.clear();
        self.threads.clear();
        self.fetched_urls.clear();
+        self.user_rules.clear();
    }

    pub fn add_file_from_path(
@@ -109,13 +114,12 @@ impl ContextStore {
                return anyhow::Ok(());
            }

-            let (buffer_info, text_task) =
-                this.update(cx, |_, cx| collect_buffer_info_and_text(buffer, None, cx))??;
-
-            let text = text_task.await;
+            let context_buffer = this
+                .update(cx, |_, cx| load_context_buffer(buffer, cx))??
+                .await;

            this.update(cx, |this, cx| {
-                this.insert_file(make_context_buffer(buffer_info, text), cx);
+                this.insert_file(context_buffer, cx);
            })?;

            anyhow::Ok(())
@@ -128,14 +132,11 @@ impl ContextStore {
        cx: &mut Context<Self>,
    ) -> Task<Result<()>> {
        cx.spawn(async move |this, cx| {
-            let (buffer_info, text_task) =
-                this.update(cx, |_, cx| collect_buffer_info_and_text(buffer, None, cx))??;
+            let context_buffer = this
+                .update(cx, |_, cx| load_context_buffer(buffer, cx))??
+                .await;

-            let text = text_task.await;
-
-            this.update(cx, |this, cx| {
-                this.insert_file(make_context_buffer(buffer_info, text), cx)
-            })?;
+            this.update(cx, |this, cx| this.insert_file(context_buffer, cx))?;

            anyhow::Ok(())
        })
@@ -159,6 +160,14 @@ impl ContextStore {
            return Task::ready(Err(anyhow!("failed to read project")));
        };

+        let Some(entry_id) = project
+            .read(cx)
+            .entry_for_path(&project_path, cx)
+            .map(|entry| entry.id)
+        else {
+            return Task::ready(Err(anyhow!("no entry found for directory context")));
+        };
+
        let already_included = match self.includes_directory(&project_path) {
            Some(FileInclusion::Direct(context_id)) => {
                if remove_if_exists {
@@ -200,27 +209,15 @@ impl ContextStore {

            let buffers = open_buffers_task.await;

-            let mut buffer_infos = Vec::new();
-            let mut text_tasks = Vec::new();
-            this.update(cx, |_, cx| {
-                // Skip all binary files and other non-UTF8 files
-                for buffer in buffers.into_iter().flatten() {
-                    if let Some((buffer_info, text_task)) =
-                        collect_buffer_info_and_text(buffer, None, cx).log_err()
-                    {
-                        buffer_infos.push(buffer_info);
-                        text_tasks.push(text_task);
-                    }
-                }
-                anyhow::Ok(())
-            })??;
+            let context_buffer_tasks = this.update(cx, |_, cx| {
+                buffers
+                    .into_iter()
+                    .flatten()
+                    .flat_map(move |buffer| load_context_buffer(buffer, cx).log_err())
+                    .collect::<Vec<_>>()
+            })?;

-            let buffer_texts = future::join_all(text_tasks).await;
-            let context_buffers = buffer_infos
-                .into_iter()
-                .zip(buffer_texts)
-                .map(|(info, text)| make_context_buffer(info, text))
-                .collect::<Vec<_>>();
+            let context_buffers = future::join_all(context_buffer_tasks).await;

            if context_buffers.is_empty() {
                let full_path = cx.update(|cx| worktree.read(cx).full_path(&project_path.path))?;
@@ -228,7 +225,7 @@ impl ContextStore {
            }

            this.update(cx, |this, cx| {
-                this.insert_directory(worktree, project_path, context_buffers, cx);
+                this.insert_directory(worktree, entry_id, project_path, context_buffers, cx);
            })?;

            anyhow::Ok(())
@@ -238,19 +235,21 @@ impl ContextStore {
    fn insert_directory(
        &mut self,
        worktree: Entity<Worktree>,
+        entry_id: ProjectEntryId,
        project_path: ProjectPath,
        context_buffers: Vec<ContextBuffer>,
        cx: &mut Context<Self>,
    ) {
        let id = self.next_context_id.post_inc();
-        let path = project_path.path.clone();
+        let last_path = project_path.path.clone();
        self.directories.insert(project_path, id);

        self.context
            .push(AssistantContext::Directory(DirectoryContext {
                id,
                worktree,
-                path,
+                entry_id,
+                last_path,
                context_buffers,
            }));
        cx.notify();
@@ -290,24 +289,23 @@ impl ContextStore {
            }
        }

-        let (buffer_info, collect_content_task) =
-            match collect_buffer_info_and_text(buffer, Some(symbol_enclosing_range.clone()), cx) {
-                Ok((buffer_info, collect_context_task)) => (buffer_info, collect_context_task),
+        let context_buffer_task =
+            match load_context_buffer_range(buffer, symbol_enclosing_range.clone(), cx) {
+                Ok((_line_range, context_buffer_task)) => context_buffer_task,
                Err(err) => return Task::ready(Err(err)),
            };

        cx.spawn(async move |this, cx| {
-            let content = collect_content_task.await;
+            let context_buffer = context_buffer_task.await;

            this.update(cx, |this, cx| {
                this.insert_symbol(
                    make_context_symbol(
-                        buffer_info,
+                        context_buffer,
                        project_path,
                        symbol_name,
                        symbol_range,
                        symbol_enclosing_range,
-                        content,
                    ),
                    cx,
                )
@@ -387,6 +385,42 @@ impl ContextStore {
        cx.notify();
    }

+    pub fn add_rules(
+        &mut self,
+        prompt_id: UserPromptId,
+        title: impl Into<SharedString>,
+        text: impl Into<SharedString>,
+        remove_if_exists: bool,
+        cx: &mut Context<ContextStore>,
+    ) {
+        if let Some(context_id) = self.includes_user_rules(&prompt_id) {
+            if remove_if_exists {
+                self.remove_context(context_id, cx);
+            }
+        } else {
+            self.insert_user_rules(prompt_id, title, text, cx);
+        }
+    }
+
+    pub fn insert_user_rules(
+        &mut self,
+        prompt_id: UserPromptId,
+        title: impl Into<SharedString>,
+        text: impl Into<SharedString>,
+        cx: &mut Context<ContextStore>,
+    ) {
+        let id = self.next_context_id.post_inc();
+
+        self.user_rules.insert(prompt_id, id);
+        self.context.push(AssistantContext::Rules(RulesContext {
+            id,
+            prompt_id,
+            title: title.into(),
+            text: text.into(),
+        }));
+        cx.notify();
+    }
+
    pub fn add_fetched_url(
        &mut self,
        url: String,
@@ -416,6 +450,71 @@ impl ContextStore {
        cx.notify();
    }

+    pub fn add_image(&mut self, image: Arc<Image>, cx: &mut Context<ContextStore>) {
+        let image_task = LanguageModelImage::from_image(image.clone(), cx).shared();
+        let id = self.next_context_id.post_inc();
+        self.context.push(AssistantContext::Image(ImageContext {
+            id,
+            original_image: image,
+            image_task,
+        }));
+        cx.notify();
+    }
+
+    pub fn wait_for_images(&self, cx: &App) -> Task<()> {
+        let tasks = self
+            .context
+            .iter()
+            .filter_map(|ctx| match ctx {
+                AssistantContext::Image(ctx) => Some(ctx.image_task.clone()),
+                _ => None,
+            })
+            .collect::<Vec<_>>();
+
+        cx.spawn(async move |_cx| {
+            join_all(tasks).await;
+        })
+    }
+
+    pub fn add_selection(
+        &mut self,
+        buffer: Entity<Buffer>,
+        range: Range<Anchor>,
+        cx: &mut Context<ContextStore>,
+    ) -> Task<Result<()>> {
+        cx.spawn(async move |this, cx| {
+            let (line_range, context_buffer_task) = this.update(cx, |_, cx| {
+                load_context_buffer_range(buffer, range.clone(), cx)
+            })??;
+
+            let context_buffer = context_buffer_task.await;
+
+            this.update(cx, |this, cx| {
+                this.insert_selection(context_buffer, range, line_range, cx)
+            })?;
+
+            anyhow::Ok(())
+        })
+    }
+
+    fn insert_selection(
+        &mut self,
+        context_buffer: ContextBuffer,
+        range: Range<Anchor>,
+        line_range: Range<Point>,
+        cx: &mut Context<Self>,
+    ) {
+        let id = self.next_context_id.post_inc();
+        self.context
+            .push(AssistantContext::Selection(SelectionContext {
+                id,
+                range,
+                line_range,
+                context_buffer,
+            }));
+        cx.notify();
+    }
+
    pub fn accept_suggested_context(
        &mut self,
        suggested: &SuggestedContext,
@@ -465,12 +564,17 @@ impl ContextStore {
                self.symbol_buffers.remove(&symbol.context_symbol.id);
                self.symbols.retain(|_, context_id| *context_id != id);
            }
+            AssistantContext::Selection(_) => {}
            AssistantContext::FetchedUrl(_) => {
                self.fetched_urls.retain(|_, context_id| *context_id != id);
            }
            AssistantContext::Thread(_) => {
                self.threads.retain(|_, context_id| *context_id != id);
            }
+            AssistantContext::Rules(RulesContext { prompt_id, .. }) => {
+                self.user_rules.remove(&prompt_id);
+            }
+            AssistantContext::Image(_) => {}
        }

        cx.notify();
@@ -567,6 +671,10 @@ impl ContextStore {
        self.threads.get(thread_id).copied()
    }

+    pub fn includes_user_rules(&self, prompt_id: &UserPromptId) -> Option<ContextId> {
+        self.user_rules.get(prompt_id).copied()
+    }
+
    pub fn includes_url(&self, url: &str) -> Option<ContextId> {
        self.fetched_urls.get(url).copied()
    }
@@ -592,8 +700,11 @@ impl ContextStore {
                }
                AssistantContext::Directory(_)
                | AssistantContext::Symbol(_)
+                | AssistantContext::Selection(_)
                | AssistantContext::FetchedUrl(_)
-                | AssistantContext::Thread(_) => None,
+                | AssistantContext::Thread(_)
+                | AssistantContext::Rules(_)
+                | AssistantContext::Image(_) => None,
            })
            .collect()
    }
@@ -608,76 +719,99 @@ pub enum FileInclusion {
    InDirectory(ProjectPath),
 }

-// ContextBuffer without text.
-struct BufferInfo {
-    id: BufferId,
-    buffer: Entity<Buffer>,
-    file: Arc<dyn File>,
-    version: clock::Global,
-}
-
-fn make_context_buffer(info: BufferInfo, text: SharedString) -> ContextBuffer {
-    ContextBuffer {
-        id: info.id,
-        buffer: info.buffer,
-        file: info.file,
-        version: info.version,
-        text,
-    }
-}
-
 fn make_context_symbol(
-    info: BufferInfo,
+    context_buffer: ContextBuffer,
    path: ProjectPath,
    name: SharedString,
    range: Range<Anchor>,
    enclosing_range: Range<Anchor>,
-    text: SharedString,
 ) -> ContextSymbol {
    ContextSymbol {
        id: ContextSymbolId { name, range, path },
-        buffer_version: info.version,
+        buffer_version: context_buffer.version,
        enclosing_range,
-        buffer: info.buffer,
-        text,
+        buffer: context_buffer.buffer,
+        text: context_buffer.text,
    }
 }

-fn collect_buffer_info_and_text(
+fn load_context_buffer_range(
    buffer: Entity<Buffer>,
-    range: Option<Range<Anchor>>,
+    range: Range<Anchor>,
    cx: &App,
-) -> Result<(BufferInfo, Task<SharedString>)> {
+) -> Result<(Range<Point>, Task<ContextBuffer>)> {
    let buffer_ref = buffer.read(cx);
-    let file = buffer_ref.file().context("file context must have a path")?;
+    let id = buffer_ref.remote_id();
+
+    let file = buffer_ref.file().context("context buffer missing path")?;
+    let full_path = file.full_path(cx);

    // Important to collect version at the same time as content so that staleness logic is correct.
    let version = buffer_ref.version();
-    let content = if let Some(range) = range {
-        buffer_ref.text_for_range(range).collect::<Rope>()
-    } else {
-        buffer_ref.as_rope().clone()
-    };
+    let content = buffer_ref.text_for_range(range.clone()).collect::<Rope>();
+    let line_range = range.to_point(&buffer_ref.snapshot());

-    let buffer_info = BufferInfo {
-        buffer,
-        id: buffer_ref.remote_id(),
-        file: file.clone(),
-        version,
-    };
+    // Build the text on a background thread.
+    let task = cx.background_spawn({
+        let line_range = line_range.clone();
+        async move {
+            let text = to_fenced_codeblock(&full_path, content, Some(line_range));
+            ContextBuffer {
+                id,
+                buffer,
+                last_full_path: full_path.into(),
+                version,
+                text,
+            }
+        }
+    });

-    let full_path = file.full_path(cx);
-    let text_task = cx.background_spawn(async move { to_fenced_codeblock(&full_path, content) });
-
-    Ok((buffer_info, text_task))
+    Ok((line_range, task))
 }

-fn to_fenced_codeblock(path: &Path, content: Rope) -> SharedString {
+fn load_context_buffer(buffer: Entity<Buffer>, cx: &App) -> Result<Task<ContextBuffer>> {
+    let buffer_ref = buffer.read(cx);
+    let id = buffer_ref.remote_id();
+
+    let file = buffer_ref.file().context("context buffer missing path")?;
+    let full_path = file.full_path(cx);
+
+    // Important to collect version at the same time as content so that staleness logic is correct.
+    let version = buffer_ref.version();
+    let content = buffer_ref.as_rope().clone();
+
+    // Build the text on a background thread.
+    Ok(cx.background_spawn(async move {
+        let text = to_fenced_codeblock(&full_path, content, None);
+        ContextBuffer {
+            id,
+            buffer,
+            last_full_path: full_path.into(),
+            version,
+            text,
+        }
+    }))
+}
+
+fn to_fenced_codeblock(
+    path: &Path,
+    content: Rope,
+    line_range: Option<Range<Point>>,
+) -> SharedString {
+    let line_range_text = line_range.map(|range| {
+        if range.start.row == range.end.row {
+            format!(":{}", range.start.row + 1)
+        } else {
+            format!(":{}-{}", range.start.row + 1, range.end.row + 1)
+        }
+    });
+
    let path_extension = path.extension().and_then(|ext| ext.to_str());
    let path_string = path.to_string_lossy();
    let capacity = 3
        + path_extension.map_or(0, |extension| extension.len() + 1)
        + path_string.len()
+        + line_range_text.as_ref().map_or(0, |text| text.len())
        + 1
        + content.len()
        + 5;
@@ -691,6 +825,10 @@ fn to_fenced_codeblock(path: &Path, content: Rope) -> SharedString {
    }
    buffer.push_str(&path_string);

+    if let Some(line_range_text) = line_range_text {
+        buffer.push_str(&line_range_text);
+    }
+
    buffer.push('\n');
    for chunk in content.chunks() {
        buffer.push_str(&chunk);
@@ -739,6 +877,7 @@ pub fn refresh_context_store_text(
        let task = maybe!({
            match context {
                AssistantContext::File(file_context) => {
+                    // TODO: Should refresh if the path has changed, as it's in the text.
                    if changed_buffers.is_empty()
                        || changed_buffers.contains(&file_context.context_buffer.buffer)
                    {
@@ -747,8 +886,9 @@ pub fn refresh_context_store_text(
                    }
                }
                AssistantContext::Directory(directory_context) => {
-                    let directory_path = directory_context.project_path(cx);
-                    let should_refresh = changed_buffers.is_empty()
+                    let directory_path = directory_context.project_path(cx)?;
+                    let should_refresh = directory_path.path != directory_context.last_path
+                        || changed_buffers.is_empty()
                        || changed_buffers.iter().any(|buffer| {
                            let Some(buffer_path) = buffer.read(cx).project_path(cx) else {
                                return false;
@@ -758,10 +898,16 @@ pub fn refresh_context_store_text(

                    if should_refresh {
                        let context_store = context_store.clone();
-                        return refresh_directory_text(context_store, directory_context, cx);
+                        return refresh_directory_text(
+                            context_store,
+                            directory_context,
+                            directory_path,
+                            cx,
+                        );
                    }
                }
                AssistantContext::Symbol(symbol_context) => {
+                    // TODO: Should refresh if the path has changed, as it's in the text.
                    if changed_buffers.is_empty()
                        || changed_buffers.contains(&symbol_context.context_symbol.buffer)
                    {
@@ -769,6 +915,15 @@ pub fn refresh_context_store_text(
                        return refresh_symbol_text(context_store, symbol_context, cx);
                    }
                }
+                AssistantContext::Selection(selection_context) => {
+                    // TODO: Should refresh if the path has changed, as it's in the text.
+                    if changed_buffers.is_empty()
+                        || changed_buffers.contains(&selection_context.context_buffer.buffer)
+                    {
+                        let context_store = context_store.clone();
+                        return refresh_selection_text(context_store, selection_context, cx);
+                    }
+                }
                AssistantContext::Thread(thread_context) => {
                    if changed_buffers.is_empty() {
                        let context_store = context_store.clone();
@@ -779,6 +934,11 @@ pub fn refresh_context_store_text(
                // and doing the caching properly could be tricky (unless it's already handled by
                // the HttpClient?).
                AssistantContext::FetchedUrl(_) => {}
+                AssistantContext::Rules(user_rules_context) => {
+                    let context_store = context_store.clone();
+                    return Some(refresh_user_rules(context_store, user_rules_context, cx));
+                }
+                AssistantContext::Image(_) => {}
            }

            None
@@ -817,6 +977,7 @@ fn refresh_file_text(
 fn refresh_directory_text(
    context_store: Entity<ContextStore>,
    directory_context: &DirectoryContext,
+    directory_path: ProjectPath,
    cx: &App,
 ) -> Option<Task<()>> {
    let mut stale = false;
@@ -841,7 +1002,8 @@ fn refresh_directory_text(

    let id = directory_context.id;
    let worktree = directory_context.worktree.clone();
-    let path = directory_context.path.clone();
+    let entry_id = directory_context.entry_id;
+    let last_path = directory_path.path;
    Some(cx.spawn(async move |cx| {
        let context_buffers = context_buffers.await;
        context_store
@@ -849,7 +1011,8 @@ fn refresh_directory_text(
                let new_directory_context = DirectoryContext {
                    id,
                    worktree,
-                    path,
+                    entry_id,
+                    last_path,
                    context_buffers,
                };
                context_store.replace_context(AssistantContext::Directory(new_directory_context));
@@ -880,6 +1043,35 @@ fn refresh_symbol_text(
    }
 }

+fn refresh_selection_text(
+    context_store: Entity<ContextStore>,
+    selection_context: &SelectionContext,
+    cx: &App,
+) -> Option<Task<()>> {
+    let id = selection_context.id;
+    let range = selection_context.range.clone();
+    let task = refresh_context_excerpt(&selection_context.context_buffer, range.clone(), cx);
+    if let Some(task) = task {
+        Some(cx.spawn(async move |cx| {
+            let (line_range, context_buffer) = task.await;
+            context_store
+                .update(cx, |context_store, _| {
+                    let new_selection_context = SelectionContext {
+                        id,
+                        range,
+                        line_range,
+                        context_buffer,
+                    };
+                    context_store
+                        .replace_context(AssistantContext::Selection(new_selection_context));
+                })
+                .ok();
+        }))
+    } else {
+        None
+    }
+}
+
 fn refresh_thread_text(
    context_store: Entity<ContextStore>,
    thread_context: &ThreadContext,
@@ -901,15 +1093,64 @@ fn refresh_thread_text(
    })
 }

-fn refresh_context_buffer(
-    context_buffer: &ContextBuffer,
+fn refresh_user_rules(
+    context_store: Entity<ContextStore>,
+    user_rules_context: &RulesContext,
    cx: &App,
-) -> Option<impl Future<Output = ContextBuffer> + use<>> {
+) -> Task<()> {
+    let id = user_rules_context.id;
+    let prompt_id = user_rules_context.prompt_id;
+    let Some(thread_store) = context_store.read(cx).thread_store.as_ref() else {
+        return Task::ready(());
+    };
+    let Ok(load_task) = thread_store.read_with(cx, |thread_store, cx| {
+        thread_store.load_rules(prompt_id, cx)
+    }) else {
+        return Task::ready(());
+    };
+    cx.spawn(async move |cx| {
+        if let Ok((metadata, text)) = load_task.await {
+            if let Some(title) = metadata.title.clone() {
+                context_store
+                    .update(cx, |context_store, _cx| {
+                        context_store.replace_context(AssistantContext::Rules(RulesContext {
+                            id,
+                            prompt_id,
+                            title,
+                            text: text.into(),
+                        }));
+                    })
+                    .ok();
+                return;
+            }
+        }
+        context_store
+            .update(cx, |context_store, cx| {
+                context_store.remove_context(id, cx);
+            })
+            .ok();
+    })
+}
+
+fn refresh_context_buffer(context_buffer: &ContextBuffer, cx: &App) -> Option<Task<ContextBuffer>> {
    let buffer = context_buffer.buffer.read(cx);
    if buffer.version.changed_since(&context_buffer.version) {
-        let (buffer_info, text_task) =
-            collect_buffer_info_and_text(context_buffer.buffer.clone(), None, cx).log_err()?;
-        Some(text_task.map(move |text| make_context_buffer(buffer_info, text)))
+        load_context_buffer(context_buffer.buffer.clone(), cx).log_err()
+    } else {
+        None
+    }
+}
+
+fn refresh_context_excerpt(
+    context_buffer: &ContextBuffer,
+    range: Range<Anchor>,
+    cx: &App,
+) -> Option<impl Future<Output = (Range<Point>, ContextBuffer)> + use<>> {
+    let buffer = context_buffer.buffer.read(cx);
+    if buffer.version.changed_since(&context_buffer.version) {
+        let (line_range, context_buffer_task) =
+            load_context_buffer_range(context_buffer.buffer.clone(), range, cx).log_err()?;
+        Some(context_buffer_task.map(move |context_buffer| (line_range, context_buffer)))
    } else {
        None
    }
@@ -922,24 +1163,17 @@ fn refresh_context_symbol(
    let buffer = context_symbol.buffer.read(cx);
    let project_path = buffer.project_path(cx)?;
    if buffer.version.changed_since(&context_symbol.buffer_version) {
-        let (buffer_info, text_task) = collect_buffer_info_and_text(
+        let (_line_range, context_buffer_task) = load_context_buffer_range(
            context_symbol.buffer.clone(),
-            Some(context_symbol.enclosing_range.clone()),
+            context_symbol.enclosing_range.clone(),
            cx,
        )
        .log_err()?;
        let name = context_symbol.id.name.clone();
        let range = context_symbol.id.range.clone();
        let enclosing_range = context_symbol.enclosing_range.clone();
-        Some(text_task.map(move |text| {
-            make_context_symbol(
-                buffer_info,
-                project_path,
-                name,
-                range,
-                enclosing_range,
-                text,
-            )
+        Some(context_buffer_task.map(move |context_buffer| {
+            make_context_symbol(context_buffer, project_path, name, range, enclosing_range)
        }))
    } else {
        None
--- a/crates/agent/src/inline_assistant.rs
+++ b/crates/agent/src/inline_assistant.rs
@@ -24,6 +24,7 @@ use gpui::{
    WeakEntity, Window, point,
 };
 use language::{Buffer, Point, Selection, TransactionId};
+use language_model::ConfiguredModel;
 use language_model::{LanguageModelRegistry, report_assistant_event};
 use multi_buffer::MultiBufferRow;
 use parking_lot::Mutex;
@@ -1221,9 +1222,15 @@ impl InlineAssistant {
            self.prompt_history.pop_front();
        }

+        let Some(ConfiguredModel { model, .. }) =
+            LanguageModelRegistry::read_global(cx).inline_assistant_model()
+        else {
+            return;
+        };
+
        assist
            .codegen
-            .update(cx, |codegen, cx| codegen.start(user_prompt, cx))
+            .update(cx, |codegen, cx| codegen.start(model, user_prompt, cx))
            .log_err();
    }

--- a/crates/agent/src/inline_prompt_editor.rs
+++ b/crates/agent/src/inline_prompt_editor.rs
@@ -1,4 +1,4 @@
-use crate::assistant_model_selector::{AssistantModelSelector, ModelType};
+use crate::assistant_model_selector::AssistantModelSelector;
 use crate::buffer_codegen::BufferCodegen;
 use crate::context_picker::ContextPicker;
 use crate::context_store::ContextStore;
@@ -20,7 +20,7 @@ use gpui::{
    Focusable, FontWeight, Subscription, TextStyle, WeakEntity, Window, anchored, deferred, point,
 };
 use language_model::{LanguageModel, LanguageModelRegistry};
-use language_model_selector::ToggleModelSelector;
+use language_model_selector::{ModelType, ToggleModelSelector};
 use parking_lot::Mutex;
 use settings::Settings;
 use std::cmp;
--- a/crates/agent/src/message_editor.rs
+++ b/crates/agent/src/message_editor.rs
@@ -2,22 +2,23 @@ use std::collections::BTreeMap;
 use std::sync::Arc;

 use crate::assistant_model_selector::ModelType;
+use crate::context::{AssistantContext, format_context_as_string};
 use crate::tool_compatibility::{IncompatibleToolsState, IncompatibleToolsTooltip};
 use buffer_diff::BufferDiff;
 use collections::HashSet;
-use editor::actions::MoveUp;
+use editor::actions::{MoveUp, Paste};
 use editor::{
-    ContextMenuOptions, ContextMenuPlacement, Editor, EditorElement, EditorMode, EditorStyle,
-    MultiBuffer,
+    ContextMenuOptions, ContextMenuPlacement, Editor, EditorElement, EditorEvent, EditorMode,
+    EditorStyle, MultiBuffer,
 };
 use file_icons::FileIcons;
 use fs::Fs;
 use gpui::{
-    Animation, AnimationExt, App, Entity, Focusable, Subscription, TextStyle, WeakEntity,
-    linear_color_stop, linear_gradient, point, pulsating_between,
+    Animation, AnimationExt, App, ClipboardEntry, Entity, EventEmitter, Focusable, Subscription,
+    Task, TextStyle, WeakEntity, linear_color_stop, linear_gradient, point, pulsating_between,
 };
 use language::{Buffer, Language};
-use language_model::{ConfiguredModel, LanguageModelRegistry};
+use language_model::{ConfiguredModel, LanguageModelRegistry, LanguageModelRequestMessage};
 use language_model_selector::ToggleModelSelector;
 use multi_buffer;
 use project::Project;
@@ -33,7 +34,7 @@ use crate::context_picker::{ContextPicker, ContextPickerCompletionProvider};
 use crate::context_store::{ContextStore, refresh_context_store_text};
 use crate::context_strip::{ContextStrip, ContextStripEvent, SuggestContextKind};
 use crate::profile_selector::ProfileSelector;
-use crate::thread::{RequestKind, Thread, TokenUsageRatio};
+use crate::thread::{Thread, TokenUsageRatio};
 use crate::thread_store::ThreadStore;
 use crate::{
    AgentDiff, Chat, ChatMode, ExpandMessageEditor, NewThread, OpenAgentDiff, RemoveAllContext,
@@ -55,6 +56,8 @@ pub struct MessageEditor {
    edits_expanded: bool,
    editor_is_expanded: bool,
    waiting_for_summaries_to_send: bool,
+    last_estimated_token_count: Option<usize>,
+    update_token_count_task: Option<Task<anyhow::Result<()>>>,
    _subscriptions: Vec<Subscription>,
 }

@@ -129,8 +132,18 @@ impl MessageEditor {
        let incompatible_tools =
            cx.new(|cx| IncompatibleToolsState::new(thread.read(cx).tools().clone(), cx));

-        let subscriptions =
-            vec![cx.subscribe_in(&context_strip, window, Self::handle_context_strip_event)];
+        let subscriptions = vec![
+            cx.subscribe_in(&context_strip, window, Self::handle_context_strip_event),
+            cx.subscribe(&editor, |this, _, event, cx| match event {
+                EditorEvent::BufferEdited => {
+                    this.message_or_context_changed(true, cx);
+                }
+                _ => {}
+            }),
+            cx.observe(&context_store, |this, _, cx| {
+                this.message_or_context_changed(false, cx);
+            }),
+        ];

        Self {
            editor: editor.clone(),
@@ -156,6 +169,8 @@ impl MessageEditor {
            waiting_for_summaries_to_send: false,
            profile_selector: cx
                .new(|cx| ProfileSelector::new(fs, thread_store, editor.focus_handle(cx), cx)),
+            last_estimated_token_count: None,
+            update_token_count_task: None,
            _subscriptions: subscriptions,
        }
    }
@@ -219,7 +234,7 @@ impl MessageEditor {
        }

        self.set_editor_is_expanded(false, cx);
-        self.send_to_model(RequestKind::Chat, window, cx);
+        self.send_to_model(window, cx);

        cx.notify();
    }
@@ -234,12 +249,7 @@ impl MessageEditor {
            .is_some()
    }

-    fn send_to_model(
-        &mut self,
-        request_kind: RequestKind,
-        window: &mut Window,
-        cx: &mut Context<Self>,
-    ) {
+    fn send_to_model(&mut self, window: &mut Window, cx: &mut Context<Self>) {
        let model_registry = LanguageModelRegistry::read_global(cx);
        let Some(ConfiguredModel { model, provider }) = model_registry.default_model() else {
            return;
@@ -256,8 +266,12 @@ impl MessageEditor {
            text
        });

+        self.last_estimated_token_count.take();
+        cx.emit(MessageEditorEvent::EstimatedTokenCount);
+
        let refresh_task =
            refresh_context_store_text(self.context_store.clone(), &HashSet::default(), cx);
+        let wait_for_images = self.context_store.read(cx).wait_for_images(cx);

        let thread = self.thread.clone();
        let context_store = self.context_store.clone();
@@ -267,6 +281,7 @@ impl MessageEditor {
        cx.spawn(async move |this, cx| {
            let checkpoint = checkpoint.await.ok();
            refresh_task.await;
+            wait_for_images.await;

            thread
                .update(cx, |thread, cx| {
@@ -275,6 +290,26 @@ impl MessageEditor {
                })
                .log_err();

+            context_store
+                .update(cx, |context_store, cx| {
+                    let excerpt_ids = context_store
+                        .context()
+                        .iter()
+                        .filter(|ctx| {
+                            matches!(
+                                ctx,
+                                AssistantContext::Selection(_) | AssistantContext::Image(_)
+                            )
+                        })
+                        .map(|ctx| ctx.id())
+                        .collect::<Vec<_>>();
+
+                    for id in excerpt_ids {
+                        context_store.remove_context(id, cx);
+                    }
+                })
+                .log_err();
+
            if let Some(wait_for_summaries) = context_store
                .update(cx, |context_store, cx| context_store.wait_for_summaries(cx))
                .log_err()
@@ -297,7 +332,8 @@ impl MessageEditor {
            // Send to model after summaries are done
            thread
                .update(cx, |thread, cx| {
-                    thread.send_to_model(model, request_kind, cx);
+                    thread.advance_prompt_id();
+                    thread.send_to_model(model, cx);
                })
                .log_err();
        })
@@ -311,7 +347,7 @@ impl MessageEditor {

        if cancelled {
            self.set_editor_is_expanded(false, cx);
-            self.send_to_model(RequestKind::Chat, window, cx);
+            self.send_to_model(window, cx);
        }
    }

@@ -341,8 +377,38 @@ impl MessageEditor {
        }
    }

-    fn handle_review_click(&self, window: &mut Window, cx: &mut Context<Self>) {
+    fn paste(&mut self, _: &Paste, _: &mut Window, cx: &mut Context<Self>) {
+        let images = cx
+            .read_from_clipboard()
+            .map(|item| {
+                item.into_entries()
+                    .filter_map(|entry| {
+                        if let ClipboardEntry::Image(image) = entry {
+                            Some(image)
+                        } else {
+                            None
+                        }
+                    })
+                    .collect::<Vec<_>>()
+            })
+            .unwrap_or_default();
+
+        if images.is_empty() {
+            return;
+        }
+        cx.stop_propagation();
+
+        self.context_store.update(cx, |store, cx| {
+            for image in images {
+                store.add_image(Arc::new(image), cx);
+            }
+        });
+    }
+
+    fn handle_review_click(&mut self, window: &mut Window, cx: &mut Context<Self>) {
+        self.edits_expanded = true;
        AgentDiff::deploy(self.thread.clone(), self.workspace.clone(), window, cx).log_err();
+        cx.notify();
    }

    fn handle_file_click(
@@ -416,6 +482,7 @@ impl MessageEditor {
            .on_action(cx.listener(Self::move_up))
            .on_action(cx.listener(Self::toggle_chat_mode))
            .on_action(cx.listener(Self::expand_message_editor))
+            .capture_action(cx.listener(Self::paste))
            .gap_2()
            .p_2()
            .bg(editor_bg_color)
@@ -937,6 +1004,82 @@ impl MessageEditor {
                    .label_size(LabelSize::Small),
            )
    }
+
+    pub fn last_estimated_token_count(&self) -> Option<usize> {
+        self.last_estimated_token_count
+    }
+
+    pub fn is_waiting_to_update_token_count(&self) -> bool {
+        self.update_token_count_task.is_some()
+    }
+
+    fn message_or_context_changed(&mut self, debounce: bool, cx: &mut Context<Self>) {
+        cx.emit(MessageEditorEvent::Changed);
+        self.update_token_count_task.take();
+
+        let Some(default_model) = LanguageModelRegistry::read_global(cx).default_model() else {
+            self.last_estimated_token_count.take();
+            return;
+        };
+
+        let context_store = self.context_store.clone();
+        let editor = self.editor.clone();
+        let thread = self.thread.clone();
+
+        self.update_token_count_task = Some(cx.spawn(async move |this, cx| {
+            if debounce {
+                cx.background_executor()
+                    .timer(Duration::from_millis(200))
+                    .await;
+            }
+
+            let token_count = if let Some(task) = cx.update(|cx| {
+                let context = context_store.read(cx).context().iter();
+                let new_context = thread.read(cx).filter_new_context(context);
+                let context_text =
+                    format_context_as_string(new_context, cx).unwrap_or(String::new());
+                let message_text = editor.read(cx).text(cx);
+
+                let content = context_text + &message_text;
+
+                if content.is_empty() {
+                    return None;
+                }
+
+                let request = language_model::LanguageModelRequest {
+                    thread_id: None,
+                    prompt_id: None,
+                    messages: vec![LanguageModelRequestMessage {
+                        role: language_model::Role::User,
+                        content: vec![content.into()],
+                        cache: false,
+                    }],
+                    tools: vec![],
+                    stop: vec![],
+                    temperature: None,
+                };
+
+                Some(default_model.model.count_tokens(request, cx))
+            })? {
+                task.await?
+            } else {
+                0
+            };
+
+            this.update(cx, |this, cx| {
+                this.last_estimated_token_count = Some(token_count);
+                cx.emit(MessageEditorEvent::EstimatedTokenCount);
+                this.update_token_count_task.take();
+            })
+        }));
+    }
+}
+
+impl EventEmitter<MessageEditorEvent> for MessageEditor {}
+
+pub enum MessageEditorEvent {
+    EstimatedTokenCount,
+    Changed,
 }

 impl Focusable for MessageEditor {
@@ -949,6 +1092,7 @@ impl Render for MessageEditor {
    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
        let thread = self.thread.read(cx);
        let total_token_usage = thread.total_token_usage(cx);
+        let token_usage_ratio = total_token_usage.ratio();

        let action_log = self.thread.read(cx).action_log();
        let changed_buffers = action_log.read(cx).changed_buffers(cx);
@@ -997,15 +1141,8 @@ impl Render for MessageEditor {
                parent.child(self.render_changed_buffers(&changed_buffers, window, cx))
            })
            .child(self.render_editor(font_size, line_height, window, cx))
-            .when(
-                total_token_usage.ratio != TokenUsageRatio::Normal,
-                |parent| {
-                    parent.child(self.render_token_limit_callout(
-                        line_height,
-                        total_token_usage.ratio,
-                        cx,
-                    ))
-                },
-            )
+            .when(token_usage_ratio != TokenUsageRatio::Normal, |parent| {
+                parent.child(self.render_token_limit_callout(line_height, token_usage_ratio, cx))
+            })
    }
 }
--- a/crates/agent/src/terminal_inline_assistant.rs
+++ b/crates/agent/src/terminal_inline_assistant.rs
@@ -261,6 +261,8 @@ impl TerminalInlineAssistant {
        request_message.content.push(prompt.into());

        Ok(LanguageModelRequest {
+            thread_id: None,
+            prompt_id: None,
            messages: vec![request_message],
            tools: Vec::new(),
            stop: Vec::new(),
--- a/crates/agent/src/thread.rs
+++ b/crates/agent/src/thread.rs
--- a/crates/agent/src/thread_store.rs
+++ b/crates/agent/src/thread_store.rs
@@ -12,8 +12,9 @@ use collections::HashMap;
 use context_server::manager::ContextServerManager;
 use context_server::{ContextServerFactoryRegistry, ContextServerTool};
 use fs::Fs;
-use futures::FutureExt as _;
+use futures::channel::{mpsc, oneshot};
 use futures::future::{self, BoxFuture, Shared};
+use futures::{FutureExt as _, StreamExt as _};
 use gpui::{
    App, BackgroundExecutor, Context, Entity, EventEmitter, Global, ReadGlobal, SharedString,
    Subscription, Task, prelude::*,
@@ -22,7 +23,10 @@ use heed::Database;
 use heed::types::SerdeBincode;
 use language_model::{LanguageModelToolUseId, Role, TokenUsage};
 use project::{Project, Worktree};
-use prompt_store::{ProjectContext, PromptBuilder, RulesFileContext, WorktreeContext};
+use prompt_store::{
+    ProjectContext, PromptBuilder, PromptId, PromptMetadata, PromptStore, PromptsUpdatedEvent,
+    RulesFileContext, UserPromptId, UserRulesContext, WorktreeContext,
+};
 use serde::{Deserialize, Serialize};
 use settings::{Settings as _, SettingsStore};
 use util::ResultExt as _;
@@ -58,10 +62,13 @@ pub struct ThreadStore {
    project: Entity<Project>,
    tools: Entity<ToolWorkingSet>,
    prompt_builder: Arc<PromptBuilder>,
+    prompt_store: Option<Entity<PromptStore>>,
    context_server_manager: Entity<ContextServerManager>,
    context_server_tool_ids: HashMap<Arc<str>, Vec<ToolId>>,
    threads: Vec<SerializedThreadMetadata>,
    project_context: SharedProjectContext,
+    reload_system_prompt_tx: mpsc::Sender<()>,
+    _reload_system_prompt_task: Task<()>,
    _subscriptions: Vec<Subscription>,
 }

@@ -77,12 +84,22 @@ impl ThreadStore {
        tools: Entity<ToolWorkingSet>,
        prompt_builder: Arc<PromptBuilder>,
        cx: &mut App,
-    ) -> Task<Entity<Self>> {
-        let thread_store = cx.new(|cx| Self::new(project, tools, prompt_builder, cx));
-        let reload = thread_store.update(cx, |store, cx| store.reload_system_prompt(cx));
-        cx.foreground_executor().spawn(async move {
-            reload.await;
-            thread_store
+    ) -> Task<Result<Entity<Self>>> {
+        let prompt_store = PromptStore::global(cx);
+        cx.spawn(async move |cx| {
+            let prompt_store = prompt_store.await.ok();
+            let (thread_store, ready_rx) = cx.update(|cx| {
+                let mut option_ready_rx = None;
+                let thread_store = cx.new(|cx| {
+                    let (thread_store, ready_rx) =
+                        Self::new(project, tools, prompt_builder, prompt_store, cx);
+                    option_ready_rx = Some(ready_rx);
+                    thread_store
+                });
+                (thread_store, option_ready_rx.take().unwrap())
+            })?;
+            ready_rx.await?;
+            Ok(thread_store)
        })
    }

@@ -90,43 +107,83 @@ impl ThreadStore {
        project: Entity<Project>,
        tools: Entity<ToolWorkingSet>,
        prompt_builder: Arc<PromptBuilder>,
+        prompt_store: Option<Entity<PromptStore>>,
        cx: &mut Context<Self>,
-    ) -> Self {
+    ) -> (Self, oneshot::Receiver<()>) {
        let context_server_factory_registry = ContextServerFactoryRegistry::default_global(cx);
        let context_server_manager = cx.new(|cx| {
            ContextServerManager::new(context_server_factory_registry, project.clone(), cx)
        });
-        let settings_subscription =
+
+        let mut subscriptions = vec![
            cx.observe_global::<SettingsStore>(move |this: &mut Self, cx| {
                this.load_default_profile(cx);
-            });
-        let project_subscription = cx.subscribe(&project, Self::handle_project_event);
+            }),
+            cx.subscribe(&project, Self::handle_project_event),
+        ];
+
+        if let Some(prompt_store) = prompt_store.as_ref() {
+            subscriptions.push(cx.subscribe(
+                prompt_store,
+                |this, _prompt_store, PromptsUpdatedEvent, _cx| {
+                    this.enqueue_system_prompt_reload();
+                },
+            ))
+        }
+
+        // This channel and task prevent concurrent and redundant loading of the system prompt.
+        let (reload_system_prompt_tx, mut reload_system_prompt_rx) = mpsc::channel(1);
+        let (ready_tx, ready_rx) = oneshot::channel();
+        let mut ready_tx = Some(ready_tx);
+        let reload_system_prompt_task = cx.spawn({
+            let prompt_store = prompt_store.clone();
+            async move |thread_store, cx| {
+                loop {
+                    let Some(reload_task) = thread_store
+                        .update(cx, |thread_store, cx| {
+                            thread_store.reload_system_prompt(prompt_store.clone(), cx)
+                        })
+                        .ok()
+                    else {
+                        return;
+                    };
+                    reload_task.await;
+                    if let Some(ready_tx) = ready_tx.take() {
+                        ready_tx.send(()).ok();
+                    }
+                    reload_system_prompt_rx.next().await;
+                }
+            }
+        });

        let this = Self {
            project,
            tools,
            prompt_builder,
+            prompt_store,
            context_server_manager,
            context_server_tool_ids: HashMap::default(),
            threads: Vec::new(),
            project_context: SharedProjectContext::default(),
-            _subscriptions: vec![settings_subscription, project_subscription],
+            reload_system_prompt_tx,
+            _reload_system_prompt_task: reload_system_prompt_task,
+            _subscriptions: subscriptions,
        };
        this.load_default_profile(cx);
        this.register_context_server_handlers(cx);
        this.reload(cx).detach_and_log_err(cx);
-        this
+        (this, ready_rx)
    }

    fn handle_project_event(
        &mut self,
        _project: Entity<Project>,
        event: &project::Event,
-        cx: &mut Context<Self>,
+        _cx: &mut Context<Self>,
    ) {
        match event {
            project::Event::WorktreeAdded(_) | project::Event::WorktreeRemoved(_) => {
-                self.reload_system_prompt(cx).detach();
+                self.enqueue_system_prompt_reload();
            }
            project::Event::WorktreeUpdatedEntries(_, items) => {
                if items.iter().any(|(path, _, _)| {
@@ -134,16 +191,25 @@ impl ThreadStore {
                        .iter()
                        .any(|name| path.as_ref() == Path::new(name))
                }) {
-                    self.reload_system_prompt(cx).detach();
+                    self.enqueue_system_prompt_reload();
                }
            }
            _ => {}
        }
    }

-    pub fn reload_system_prompt(&self, cx: &mut Context<Self>) -> Task<()> {
+    fn enqueue_system_prompt_reload(&mut self) {
+        self.reload_system_prompt_tx.try_send(()).ok();
+    }
+
+    // Note that this should only be called from `reload_system_prompt_task`.
+    fn reload_system_prompt(
+        &self,
+        prompt_store: Option<Entity<PromptStore>>,
+        cx: &mut Context<Self>,
+    ) -> Task<()> {
        let project = self.project.read(cx);
-        let tasks = project
+        let worktree_tasks = project
            .visible_worktrees(cx)
            .map(|worktree| {
                Self::load_worktree_info_for_system_prompt(
@@ -153,10 +219,23 @@ impl ThreadStore {
                )
            })
            .collect::<Vec<_>>();
+        let default_user_rules_task = match prompt_store {
+            None => Task::ready(vec![]),
+            Some(prompt_store) => prompt_store.read_with(cx, |prompt_store, cx| {
+                let prompts = prompt_store.default_prompt_metadata();
+                let load_tasks = prompts.into_iter().map(|prompt_metadata| {
+                    let contents = prompt_store.load(prompt_metadata.id, cx);
+                    async move { (contents.await, prompt_metadata) }
+                });
+                cx.background_spawn(future::join_all(load_tasks))
+            }),
+        };

        cx.spawn(async move |this, cx| {
-            let results = futures::future::join_all(tasks).await;
-            let worktrees = results
+            let (worktrees, default_user_rules) =
+                future::join(future::join_all(worktree_tasks), default_user_rules_task).await;
+
+            let worktrees = worktrees
                .into_iter()
                .map(|(worktree, rules_error)| {
                    if let Some(rules_error) = rules_error {
@@ -165,8 +244,33 @@ impl ThreadStore {
                    worktree
                })
                .collect::<Vec<_>>();
+
+            let default_user_rules = default_user_rules
+                .into_iter()
+                .flat_map(|(contents, prompt_metadata)| match contents {
+                    Ok(contents) => Some(UserRulesContext {
+                        uuid: match prompt_metadata.id {
+                            PromptId::User { uuid } => uuid,
+                            PromptId::EditWorkflow => return None,
+                        },
+                        title: prompt_metadata.title.map(|title| title.to_string()),
+                        contents,
+                    }),
+                    Err(err) => {
+                        this.update(cx, |_, cx| {
+                            cx.emit(RulesLoadingError {
+                                message: format!("{err:?}").into(),
+                            });
+                        })
+                        .ok();
+                        None
+                    }
+                })
+                .collect::<Vec<_>>();
+
            this.update(cx, |this, _cx| {
-                *this.project_context.0.borrow_mut() = Some(ProjectContext::new(worktrees));
+                *this.project_context.0.borrow_mut() =
+                    Some(ProjectContext::new(worktrees, default_user_rules));
            })
            .ok();
        })
@@ -178,14 +282,12 @@ impl ThreadStore {
        cx: &App,
    ) -> Task<(WorktreeContext, Option<RulesLoadingError>)> {
        let root_name = worktree.root_name().into();
-        let abs_path = worktree.abs_path();

        let rules_task = Self::load_worktree_rules_file(fs, worktree, cx);
        let Some(rules_task) = rules_task else {
            return Task::ready((
                WorktreeContext {
                    root_name,
-                    abs_path,
                    rules_file: None,
                },
                None,
@@ -204,7 +306,6 @@ impl ThreadStore {
            };
            let worktree_info = WorktreeContext {
                root_name,
-                abs_path,
                rules_file,
            };
            (worktree_info, rules_file_error)
@@ -248,6 +349,27 @@ impl ThreadStore {
        self.context_server_manager.clone()
    }

+    pub fn prompt_store(&self) -> Option<Entity<PromptStore>> {
+        self.prompt_store.clone()
+    }
+
+    pub fn load_rules(
+        &self,
+        prompt_id: UserPromptId,
+        cx: &App,
+    ) -> Task<Result<(PromptMetadata, String)>> {
+        let prompt_id = PromptId::User { uuid: prompt_id };
+        let Some(prompt_store) = self.prompt_store.as_ref() else {
+            return Task::ready(Err(anyhow!("Prompt store unexpectedly missing.")));
+        };
+        let prompt_store = prompt_store.read(cx);
+        let Some(metadata) = prompt_store.metadata(prompt_id) else {
+            return Task::ready(Err(anyhow!("User rules not found in library.")));
+        };
+        let text_task = prompt_store.load(prompt_id, cx);
+        cx.background_spawn(async move { Ok((metadata, text_task.await?)) })
+    }
+
    pub fn tools(&self) -> Entity<ToolWorkingSet> {
        self.tools.clone()
    }
@@ -509,6 +631,8 @@ pub struct SerializedThread {
    #[serde(default)]
    pub cumulative_token_usage: TokenUsage,
    #[serde(default)]
+    pub request_token_usage: Vec<TokenUsage>,
+    #[serde(default)]
    pub detailed_summary_state: DetailedSummaryState,
    #[serde(default)]
    pub exceeded_window_error: Option<ExceededWindowError>,
@@ -560,9 +684,18 @@ pub struct SerializedMessage {
 #[serde(tag = "type")]
 pub enum SerializedMessageSegment {
    #[serde(rename = "text")]
-    Text { text: String },
+    Text {
+        text: String,
+    },
    #[serde(rename = "thinking")]
-    Thinking { text: String },
+    Thinking {
+        text: String,
+        #[serde(skip_serializing_if = "Option::is_none")]
+        signature: Option<String>,
+    },
+    RedactedThinking {
+        data: Vec<u8>,
+    },
 }

 #[derive(Debug, Serialize, Deserialize)]
@@ -597,6 +730,7 @@ impl LegacySerializedThread {
            messages: self.messages.into_iter().map(|msg| msg.upgrade()).collect(),
            initial_project_snapshot: self.initial_project_snapshot,
            cumulative_token_usage: TokenUsage::default(),
+            request_token_usage: Vec::new(),
            detailed_summary_state: DetailedSummaryState::default(),
            exceeded_window_error: None,
        }
--- a/crates/agent/src/tool_compatibility.rs
+++ b/crates/agent/src/tool_compatibility.rs
@@ -1,6 +1,6 @@
 use std::sync::Arc;

-use assistant_tool::{Tool, ToolWorkingSet, ToolWorkingSetEvent};
+use assistant_tool::{Tool, ToolSource, ToolWorkingSet, ToolWorkingSetEvent};
 use collections::HashMap;
 use gpui::{App, Context, Entity, IntoElement, Render, Subscription, Window};
 use language_model::{LanguageModel, LanguageModelToolSchemaFormat};
@@ -73,7 +73,12 @@ impl Render for IncompatibleToolsTooltip {
                        .children(
                            self.incompatible_tools
                                .iter()
-                                .map(|tool| Label::new(tool.name()).size(LabelSize::Small).buffer_font(cx)),
+                                .map(|tool| h_flex().gap_4().child(Label::new(tool.name()).size(LabelSize::Small)).map(|parent|
+                                    match tool.source() {
+                                        ToolSource::Native => parent,
+                                        ToolSource::ContextServer { id } => parent.child(Label::new(id).size(LabelSize::Small).color(Color::Muted)),
+                                    }
+                                )),
                        ),
                )
                .child(Label::new("What To Do Instead").size(LabelSize::Small))
--- a/crates/agent/src/tool_use.rs
+++ b/crates/agent/src/tool_use.rs
@@ -1,19 +1,19 @@
 use std::sync::Arc;

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

-use crate::thread::MessageId;
+use crate::thread::{MessageId, PromptId, ThreadId};
 use crate::thread_store::SerializedMessage;

 #[derive(Debug)]
@@ -27,37 +27,16 @@ pub struct ToolUse {
    pub needs_confirmation: bool,
 }

-#[derive(Debug, Clone)]
-pub enum ToolUseStatus {
-    NeedsConfirmation,
-    Pending,
-    Running,
-    Finished(SharedString),
-    Error(SharedString),
-}
-
-impl ToolUseStatus {
-    pub fn text(&self) -> SharedString {
-        match self {
-            ToolUseStatus::NeedsConfirmation => "".into(),
-            ToolUseStatus::Pending => "".into(),
-            ToolUseStatus::Running => "".into(),
-            ToolUseStatus::Finished(out) => out.clone(),
-            ToolUseStatus::Error(out) => out.clone(),
-        }
-    }
-}
-
 pub struct ToolUseState {
    tools: Entity<ToolWorkingSet>,
    tool_uses_by_assistant_message: HashMap<MessageId, Vec<LanguageModelToolUse>>,
    tool_uses_by_user_message: HashMap<MessageId, Vec<LanguageModelToolUseId>>,
    tool_results: HashMap<LanguageModelToolUseId, LanguageModelToolResult>,
    pending_tool_uses_by_id: HashMap<LanguageModelToolUseId, PendingToolUse>,
+    tool_result_cards: HashMap<LanguageModelToolUseId, AnyToolCard>,
+    tool_use_metadata_by_id: HashMap<LanguageModelToolUseId, ToolUseMetadata>,
 }

-pub const USING_TOOL_MARKER: &str = "<using_tool>";
-
 impl ToolUseState {
    pub fn new(tools: Entity<ToolWorkingSet>) -> Self {
        Self {
@@ -66,6 +45,8 @@ impl ToolUseState {
            tool_uses_by_user_message: HashMap::default(),
            tool_results: HashMap::default(),
            pending_tool_uses_by_id: HashMap::default(),
+            tool_result_cards: HashMap::default(),
+            tool_use_metadata_by_id: HashMap::default(),
        }
    }

@@ -92,6 +73,7 @@ impl ToolUseState {
                                id: tool_use.id.clone(),
                                name: tool_use.name.clone().into(),
                                input: tool_use.input.clone(),
+                                is_input_complete: true,
                            })
                            .collect::<Vec<_>>();

@@ -193,6 +175,9 @@ impl ToolUseState {
                        PendingToolUseStatus::Error(ref err) => {
                            ToolUseStatus::Error(err.clone().into())
                        }
+                        PendingToolUseStatus::InputStillStreaming => {
+                            ToolUseStatus::InputStillStreaming
+                        }
                    }
                } else {
                    ToolUseStatus::Pending
@@ -209,7 +194,12 @@ impl ToolUseState {
            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),
+                ui_text: self.tool_ui_label(
+                    &tool_use.name,
+                    &tool_use.input,
+                    tool_use.is_input_complete,
+                    cx,
+                ),
                input: tool_use.input.clone(),
                status,
                icon,
@@ -224,10 +214,15 @@ impl ToolUseState {
        &self,
        tool_name: &str,
        input: &serde_json::Value,
+        is_input_complete: bool,
        cx: &App,
    ) -> SharedString {
        if let Some(tool) = self.tools.read(cx).tool(tool_name, cx) {
-            tool.ui_text(input).into()
+            if is_input_complete {
+                tool.ui_text(input).into()
+            } else {
+                tool.still_streaming_ui_text(input).into()
+            }
        } else {
            format!("Unknown tool {tool_name:?}").into()
        }
@@ -257,24 +252,68 @@ impl ToolUseState {
        self.tool_results.get(tool_use_id)
    }

+    pub fn tool_result_card(&self, tool_use_id: &LanguageModelToolUseId) -> Option<&AnyToolCard> {
+        self.tool_result_cards.get(tool_use_id)
+    }
+
+    pub fn insert_tool_result_card(
+        &mut self,
+        tool_use_id: LanguageModelToolUseId,
+        card: AnyToolCard,
+    ) {
+        self.tool_result_cards.insert(tool_use_id, card);
+    }
+
    pub fn request_tool_use(
        &mut self,
        assistant_message_id: MessageId,
        tool_use: LanguageModelToolUse,
+        metadata: ToolUseMetadata,
        cx: &App,
-    ) {
-        self.tool_uses_by_assistant_message
+    ) -> Arc<str> {
+        let tool_uses = self
+            .tool_uses_by_assistant_message
            .entry(assistant_message_id)
-            .or_default()
-            .push(tool_use.clone());
+            .or_default();

-        // The tool use is being requested by the Assistant, so we want to
-        // attach the tool results to the next user message.
-        let next_user_message_id = MessageId(assistant_message_id.0 + 1);
-        self.tool_uses_by_user_message
-            .entry(next_user_message_id)
-            .or_default()
-            .push(tool_use.id.clone());
+        let mut existing_tool_use_found = false;
+
+        for existing_tool_use in tool_uses.iter_mut() {
+            if existing_tool_use.id == tool_use.id {
+                *existing_tool_use = tool_use.clone();
+                existing_tool_use_found = true;
+            }
+        }
+
+        if !existing_tool_use_found {
+            tool_uses.push(tool_use.clone());
+        }
+
+        let status = if tool_use.is_input_complete {
+            self.tool_use_metadata_by_id
+                .insert(tool_use.id.clone(), metadata);
+
+            // The tool use is being requested by the Assistant, so we want to
+            // attach the tool results to the next user message.
+            let next_user_message_id = MessageId(assistant_message_id.0 + 1);
+            self.tool_uses_by_user_message
+                .entry(next_user_message_id)
+                .or_default()
+                .push(tool_use.id.clone());
+
+            PendingToolUseStatus::Idle
+        } else {
+            PendingToolUseStatus::InputStillStreaming
+        };
+
+        let ui_text: Arc<str> = self
+            .tool_ui_label(
+                &tool_use.name,
+                &tool_use.input,
+                tool_use.is_input_complete,
+                cx,
+            )
+            .into();

        self.pending_tool_uses_by_id.insert(
            tool_use.id.clone(),
@@ -282,13 +321,13 @@ impl ToolUseState {
                assistant_message_id,
                id: tool_use.id,
                name: tool_use.name.clone(),
-                ui_text: self
-                    .tool_ui_label(&tool_use.name, &tool_use.input, cx)
-                    .into(),
+                ui_text: ui_text.clone(),
                input: tool_use.input,
-                status: PendingToolUseStatus::Idle,
+                status,
            },
        );
+
+        ui_text
    }

    pub fn run_pending_tool(
@@ -334,7 +373,21 @@ impl ToolUseState {
        output: Result<String>,
        cx: &App,
    ) -> Option<PendingToolUse> {
-        telemetry::event!("Agent Tool Finished", tool_name, success = output.is_ok());
+        let metadata = self.tool_use_metadata_by_id.remove(&tool_use_id);
+
+        telemetry::event!(
+            "Agent Tool Finished",
+            model = metadata
+                .as_ref()
+                .map(|metadata| metadata.model.telemetry_id()),
+            model_provider = metadata
+                .as_ref()
+                .map(|metadata| metadata.model.provider_id().to_string()),
+            thread_id = metadata.as_ref().map(|metadata| metadata.thread_id.clone()),
+            prompt_id = metadata.as_ref().map(|metadata| metadata.prompt_id.clone()),
+            tool_name,
+            success = output.is_ok()
+        );

        match output {
            Ok(tool_result) => {
@@ -397,28 +450,8 @@ impl ToolUseState {
        request_message: &mut LanguageModelRequestMessage,
    ) {
        if let Some(tool_uses) = self.tool_uses_by_assistant_message.get(&message_id) {
-            let mut found_tool_use = false;
-
            for tool_use in tool_uses {
                if self.tool_results.contains_key(&tool_use.id) {
-                    if !found_tool_use {
-                        // The API fails if a message contains a tool use without any (non-whitespace) text around it
-                        match request_message.content.last_mut() {
-                            Some(MessageContent::Text(txt)) => {
-                                if txt.is_empty() {
-                                    txt.push_str(USING_TOOL_MARKER);
-                                }
-                            }
-                            None | Some(_) => {
-                                request_message
-                                    .content
-                                    .push(MessageContent::Text(USING_TOOL_MARKER.into()));
-                            }
-                        };
-                    }
-
-                    found_tool_use = true;
-
                    // Do not send tool uses until they are completed
                    request_message
                        .content
@@ -484,6 +517,7 @@ pub struct Confirmation {

 #[derive(Debug, Clone)]
 pub enum PendingToolUseStatus {
+    InputStillStreaming,
    Idle,
    NeedsConfirmation(Arc<Confirmation>),
    Running { _task: Shared<Task<()>> },
@@ -503,3 +537,10 @@ impl PendingToolUseStatus {
        matches!(self, PendingToolUseStatus::NeedsConfirmation { .. })
    }
 }
+
+#[derive(Clone)]
+pub struct ToolUseMetadata {
+    pub model: Arc<dyn LanguageModel>,
+    pub thread_id: ThreadId,
+    pub prompt_id: PromptId,
+}
--- a/crates/agent/src/ui.rs
+++ b/crates/agent/src/ui.rs
@@ -1,7 +1,9 @@
 mod agent_notification;
+mod animated_label;
 mod context_pill;
-mod user_spending;
+mod usage_banner;

 pub use agent_notification::*;
+pub use animated_label::*;
 pub use context_pill::*;
-// pub use user_spending::*;
+pub use usage_banner::*;
--- a/crates/agent/src/ui/agent_notification.rs
+++ b/crates/agent/src/ui/agent_notification.rs
@@ -12,6 +12,7 @@ pub struct AgentNotification {
    title: SharedString,
    caption: SharedString,
    icon: IconName,
+    project_name: Option<SharedString>,
 }

 impl AgentNotification {
@@ -19,11 +20,13 @@ impl AgentNotification {
        title: impl Into<SharedString>,
        caption: impl Into<SharedString>,
        icon: IconName,
+        project_name: Option<impl Into<SharedString>>,
    ) -> Self {
        Self {
            title: title.into(),
            caption: caption.into(),
            icon,
+            project_name: project_name.map(|name| name.into()),
        }
    }

@@ -130,11 +133,34 @@ impl Render for AgentNotification {
                                    .child(gradient_overflow()),
                            )
                            .child(
-                                div()
+                                h_flex()
                                    .relative()
+                                    .gap_1p5()
                                    .text_size(px(12.))
                                    .text_color(cx.theme().colors().text_muted)
                                    .truncate()
+                                    .when_some(
+                                        self.project_name.clone(),
+                                        |description, project_name| {
+                                            description.child(
+                                                h_flex()
+                                                    .gap_1p5()
+                                                    .child(
+                                                        div()
+                                                            .max_w_16()
+                                                            .truncate()
+                                                            .child(project_name),
+                                                    )
+                                                    .child(
+                                                        div().size(px(3.)).rounded_full().bg(cx
+                                                            .theme()
+                                                            .colors()
+                                                            .text
+                                                            .opacity(0.5)),
+                                                    ),
+                                            )
+                                        },
+                                    )
                                    .child(self.caption.clone())
                                    .child(gradient_overflow()),
                            ),
--- a/crates/agent/src/ui/animated_label.rs
+++ b/crates/agent/src/ui/animated_label.rs
@@ -0,0 +1,116 @@
+use gpui::{Animation, AnimationExt, FontWeight, pulsating_between};
+use std::time::Duration;
+use ui::prelude::*;
+
+#[derive(IntoElement)]
+pub struct AnimatedLabel {
+    base: Label,
+    text: SharedString,
+}
+
+impl AnimatedLabel {
+    pub fn new(text: impl Into<SharedString>) -> Self {
+        let text = text.into();
+        AnimatedLabel {
+            base: Label::new(text.clone()),
+            text,
+        }
+    }
+}
+
+impl LabelCommon for AnimatedLabel {
+    fn size(mut self, size: LabelSize) -> Self {
+        self.base = self.base.size(size);
+        self
+    }
+
+    fn weight(mut self, weight: FontWeight) -> Self {
+        self.base = self.base.weight(weight);
+        self
+    }
+
+    fn line_height_style(mut self, line_height_style: LineHeightStyle) -> Self {
+        self.base = self.base.line_height_style(line_height_style);
+        self
+    }
+
+    fn color(mut self, color: Color) -> Self {
+        self.base = self.base.color(color);
+        self
+    }
+
+    fn strikethrough(mut self) -> Self {
+        self.base = self.base.strikethrough();
+        self
+    }
+
+    fn italic(mut self) -> Self {
+        self.base = self.base.italic();
+        self
+    }
+
+    fn alpha(mut self, alpha: f32) -> Self {
+        self.base = self.base.alpha(alpha);
+        self
+    }
+
+    fn underline(mut self) -> Self {
+        self.base = self.base.underline();
+        self
+    }
+
+    fn truncate(mut self) -> Self {
+        self.base = self.base.truncate();
+        self
+    }
+
+    fn single_line(mut self) -> Self {
+        self.base = self.base.single_line();
+        self
+    }
+
+    fn buffer_font(mut self, cx: &App) -> Self {
+        self.base = self.base.buffer_font(cx);
+        self
+    }
+}
+
+impl RenderOnce for AnimatedLabel {
+    fn render(self, _window: &mut Window, _cx: &mut App) -> impl IntoElement {
+        let text = self.text.clone();
+
+        self.base
+            .color(Color::Muted)
+            .with_animations(
+                "animated-label",
+                vec![
+                    Animation::new(Duration::from_secs(1)),
+                    Animation::new(Duration::from_secs(1)).repeat(),
+                ],
+                move |mut label, animation_ix, delta| {
+                    match animation_ix {
+                        0 => {
+                            let chars_to_show = (delta * text.len() as f32).ceil() as usize;
+                            let text = SharedString::from(text[0..chars_to_show].to_string());
+                            label.set_text(text);
+                        }
+                        1 => match delta {
+                            d if d < 0.25 => label.set_text(text.clone()),
+                            d if d < 0.5 => label.set_text(format!("{}.", text)),
+                            d if d < 0.75 => label.set_text(format!("{}..", text)),
+                            _ => label.set_text(format!("{}...", text)),
+                        },
+                        _ => {}
+                    }
+                    label
+                },
+            )
+            .with_animation(
+                "pulsating-label",
+                Animation::new(Duration::from_secs(2))
+                    .repeat()
+                    .with_easing(pulsating_between(0.6, 1.)),
+                |label, delta| label.map_element(|label| label.alpha(delta)),
+            )
+    }
+}
--- a/crates/agent/src/ui/context_pill.rs
+++ b/crates/agent/src/ui/context_pill.rs
@@ -1,11 +1,14 @@
+use std::sync::Arc;
 use std::{rc::Rc, time::Duration};

 use file_icons::FileIcons;
-use gpui::ClickEvent;
-use gpui::{Animation, AnimationExt as _, pulsating_between};
-use ui::{IconButtonShape, Tooltip, prelude::*};
+use futures::FutureExt;
+use gpui::{Animation, AnimationExt as _, Image, MouseButton, pulsating_between};
+use gpui::{ClickEvent, Task};
+use language_model::LanguageModelImage;
+use ui::{IconButtonShape, Tooltip, prelude::*, tooltip_container};

-use crate::context::{AssistantContext, ContextId, ContextKind};
+use crate::context::{AssistantContext, ContextId, ContextKind, ImageContext};

 #[derive(IntoElement)]
 pub enum ContextPill {
@@ -120,117 +123,127 @@ impl RenderOnce for ContextPill {
                on_remove,
                focused,
                on_click,
-            } => base_pill
-                .bg(color.element_background)
-                .border_color(if *focused {
-                    color.border_focused
-                } else {
-                    color.border.opacity(0.5)
-                })
-                .pr(if on_remove.is_some() { px(2.) } else { px(4.) })
-                .child(
-                    h_flex()
-                        .id("context-data")
-                        .gap_1()
-                        .child(
-                            div().max_w_64().child(
-                                Label::new(context.name.clone())
-                                    .size(LabelSize::Small)
-                                    .truncate(),
-                            ),
-                        )
-                        .when_some(context.parent.as_ref(), |element, parent_name| {
-                            if *dupe_name {
-                                element.child(
-                                    Label::new(parent_name.clone())
-                                        .size(LabelSize::XSmall)
-                                        .color(Color::Muted),
-                                )
-                            } else {
-                                element
-                            }
-                        })
-                        .when_some(context.tooltip.as_ref(), |element, tooltip| {
-                            element.tooltip(Tooltip::text(tooltip.clone()))
-                        }),
-                )
-                .when_some(on_remove.as_ref(), |element, on_remove| {
-                    element.child(
-                        IconButton::new(("remove", context.id.0), IconName::Close)
-                            .shape(IconButtonShape::Square)
-                            .icon_size(IconSize::XSmall)
-                            .tooltip(Tooltip::text("Remove Context"))
-                            .on_click({
-                                let on_remove = on_remove.clone();
-                                move |event, window, cx| on_remove(event, window, cx)
+            } => {
+                let status_is_error = matches!(context.status, ContextStatus::Error { .. });
+
+                base_pill
+                    .pr(if on_remove.is_some() { px(2.) } else { px(4.) })
+                    .map(|pill| {
+                        if status_is_error {
+                            pill.bg(cx.theme().status().error_background)
+                                .border_color(cx.theme().status().error_border)
+                        } else if *focused {
+                            pill.bg(color.element_background)
+                                .border_color(color.border_focused)
+                        } else {
+                            pill.bg(color.element_background)
+                                .border_color(color.border.opacity(0.5))
+                        }
+                    })
+                    .child(
+                        h_flex()
+                            .id("context-data")
+                            .gap_1()
+                            .child(
+                                div().max_w_64().child(
+                                    Label::new(context.name.clone())
+                                        .size(LabelSize::Small)
+                                        .truncate(),
+                                ),
+                            )
+                            .when_some(context.parent.as_ref(), |element, parent_name| {
+                                if *dupe_name {
+                                    element.child(
+                                        Label::new(parent_name.clone())
+                                            .size(LabelSize::XSmall)
+                                            .color(Color::Muted),
+                                    )
+                                } else {
+                                    element
+                                }
+                            })
+                            .when_some(context.tooltip.as_ref(), |element, tooltip| {
+                                element.tooltip(Tooltip::text(tooltip.clone()))
+                            })
+                            .map(|element| match &context.status {
+                                ContextStatus::Ready => element
+                                    .when_some(
+                                        context.render_preview.as_ref(),
+                                        |element, render_preview| {
+                                            element.hoverable_tooltip({
+                                                let render_preview = render_preview.clone();
+                                                move |_, cx| {
+                                                    cx.new(|_| ContextPillPreview {
+                                                        render_preview: render_preview.clone(),
+                                                    })
+                                                    .into()
+                                                }
+                                            })
+                                        },
+                                    )
+                                    .into_any(),
+                                ContextStatus::Loading { message } => element
+                                    .tooltip(ui::Tooltip::text(message.clone()))
+                                    .with_animation(
+                                        "pulsating-ctx-pill",
+                                        Animation::new(Duration::from_secs(2))
+                                            .repeat()
+                                            .with_easing(pulsating_between(0.4, 0.8)),
+                                        |label, delta| label.opacity(delta),
+                                    )
+                                    .into_any_element(),
+                                ContextStatus::Error { message } => element
+                                    .tooltip(ui::Tooltip::text(message.clone()))
+                                    .into_any_element(),
                            }),
                    )
-                })
-                .when_some(on_click.as_ref(), |element, on_click| {
-                    let on_click = on_click.clone();
-                    element
-                        .cursor_pointer()
-                        .on_click(move |event, window, cx| on_click(event, window, cx))
-                })
-                .map(|element| {
-                    if context.summarizing {
+                    .when_some(on_remove.as_ref(), |element, on_remove| {
+                        element.child(
+                            IconButton::new(("remove", context.id.0), IconName::Close)
+                                .shape(IconButtonShape::Square)
+                                .icon_size(IconSize::XSmall)
+                                .tooltip(Tooltip::text("Remove Context"))
+                                .on_click({
+                                    let on_remove = on_remove.clone();
+                                    move |event, window, cx| on_remove(event, window, cx)
+                                }),
+                        )
+                    })
+                    .when_some(on_click.as_ref(), |element, on_click| {
+                        let on_click = on_click.clone();
                        element
-                            .tooltip(ui::Tooltip::text("Summarizing..."))
-                            .with_animation(
-                                "pulsating-ctx-pill",
-                                Animation::new(Duration::from_secs(2))
-                                    .repeat()
-                                    .with_easing(pulsating_between(0.4, 0.8)),
-                                |label, delta| label.opacity(delta),
-                            )
-                            .into_any_element()
-                    } else {
-                        element.into_any()
-                    }
-                }),
+                            .cursor_pointer()
+                            .on_click(move |event, window, cx| on_click(event, window, cx))
+                    })
+                    .into_any_element()
+            }
            ContextPill::Suggested {
                name,
                icon_path: _,
-                kind,
+                kind: _,
                focused,
                on_click,
            } => base_pill
                .cursor_pointer()
                .pr_1()
-                .when(*focused, |this| {
-                    this.bg(color.element_background.opacity(0.5))
-                })
                .border_dashed()
-                .border_color(if *focused {
-                    color.border_focused
-                } else {
-                    color.border
+                .map(|pill| {
+                    if *focused {
+                        pill.border_color(color.border_focused)
+                            .bg(color.element_background.opacity(0.5))
+                    } else {
+                        pill.border_color(color.border)
+                    }
                })
                .hover(|style| style.bg(color.element_hover.opacity(0.5)))
                .child(
-                    div().px_0p5().max_w_64().child(
+                    div().max_w_64().child(
                        Label::new(name.clone())
                            .size(LabelSize::Small)
                            .color(Color::Muted)
                            .truncate(),
                    ),
                )
-                .child(
-                    Label::new(match kind {
-                        ContextKind::File => "Active Tab",
-                        ContextKind::Thread
-                        | ContextKind::Directory
-                        | ContextKind::FetchedUrl
-                        | ContextKind::Symbol => "Active",
-                    })
-                    .size(LabelSize::XSmall)
-                    .color(Color::Muted),
-                )
-                .child(
-                    Icon::new(IconName::Plus)
-                        .size(IconSize::XSmall)
-                        .into_any_element(),
-                )
                .tooltip(|window, cx| {
                    Tooltip::with_meta("Suggested Context", None, "Click to add it", window, cx)
                })
@@ -243,6 +256,13 @@ impl RenderOnce for ContextPill {
    }
 }

+pub enum ContextStatus {
+    Ready,
+    Loading { message: SharedString },
+    Error { message: SharedString },
+}
+
+#[derive(RegisterComponent)]
 pub struct AddedContext {
    pub id: ContextId,
    pub kind: ContextKind,
@@ -250,14 +270,15 @@ pub struct AddedContext {
    pub parent: Option<SharedString>,
    pub tooltip: Option<SharedString>,
    pub icon_path: Option<SharedString>,
-    pub summarizing: bool,
+    pub status: ContextStatus,
+    pub render_preview: Option<Rc<dyn Fn(&mut Window, &mut App) -> AnyElement + 'static>>,
 }

 impl AddedContext {
    pub fn new(context: &AssistantContext, cx: &App) -> AddedContext {
        match context {
            AssistantContext::File(file_context) => {
-                let full_path = file_context.context_buffer.file.full_path(cx);
+                let full_path = file_context.context_buffer.full_path(cx);
                let full_path_string: SharedString =
                    full_path.to_string_lossy().into_owned().into();
                let name = full_path
@@ -275,15 +296,20 @@ impl AddedContext {
                    parent,
                    tooltip: Some(full_path_string),
                    icon_path: FileIcons::get_icon(&full_path, cx),
-                    summarizing: false,
+                    status: ContextStatus::Ready,
+                    render_preview: None,
                }
            }

            AssistantContext::Directory(directory_context) => {
-                let full_path = directory_context
-                    .worktree
-                    .read(cx)
-                    .full_path(&directory_context.path);
+                let worktree = directory_context.worktree.read(cx);
+                // If the directory no longer exists, use its last known path.
+                let full_path = worktree
+                    .entry_for_id(directory_context.entry_id)
+                    .map_or_else(
+                        || directory_context.last_path.clone(),
+                        |entry| worktree.full_path(&entry.path).into(),
+                    );
                let full_path_string: SharedString =
                    full_path.to_string_lossy().into_owned().into();
                let name = full_path
@@ -301,7 +327,8 @@ impl AddedContext {
                    parent,
                    tooltip: Some(full_path_string),
                    icon_path: None,
-                    summarizing: false,
+                    status: ContextStatus::Ready,
+                    render_preview: None,
                }
            }

@@ -312,9 +339,55 @@ impl AddedContext {
                parent: None,
                tooltip: None,
                icon_path: None,
-                summarizing: false,
+                status: ContextStatus::Ready,
+                render_preview: None,
            },

+            AssistantContext::Selection(selection_context) => {
+                let full_path = selection_context.context_buffer.full_path(cx);
+                let mut full_path_string = full_path.to_string_lossy().into_owned();
+                let mut name = full_path
+                    .file_name()
+                    .map(|n| n.to_string_lossy().into_owned())
+                    .unwrap_or_else(|| full_path_string.clone());
+
+                let line_range_text = format!(
+                    " ({}-{})",
+                    selection_context.line_range.start.row + 1,
+                    selection_context.line_range.end.row + 1
+                );
+
+                full_path_string.push_str(&line_range_text);
+                name.push_str(&line_range_text);
+
+                let parent = full_path
+                    .parent()
+                    .and_then(|p| p.file_name())
+                    .map(|n| n.to_string_lossy().into_owned().into());
+
+                AddedContext {
+                    id: selection_context.id,
+                    kind: ContextKind::Selection,
+                    name: name.into(),
+                    parent,
+                    tooltip: None,
+                    icon_path: FileIcons::get_icon(&full_path, cx),
+                    status: ContextStatus::Ready,
+                    render_preview: Some(Rc::new({
+                        let content = selection_context.context_buffer.text.clone();
+                        move |_, cx| {
+                            div()
+                                .id("context-pill-selection-preview")
+                                .overflow_scroll()
+                                .max_w_128()
+                                .max_h_96()
+                                .child(Label::new(content.clone()).buffer_font(cx))
+                                .into_any_element()
+                        }
+                    })),
+                }
+            }
+
            AssistantContext::FetchedUrl(fetched_url_context) => AddedContext {
                id: fetched_url_context.id,
                kind: ContextKind::FetchedUrl,
@@ -322,7 +395,8 @@ impl AddedContext {
                parent: None,
                tooltip: None,
                icon_path: None,
-                summarizing: false,
+                status: ContextStatus::Ready,
+                render_preview: None,
            },

            AssistantContext::Thread(thread_context) => AddedContext {
@@ -332,11 +406,143 @@ impl AddedContext {
                parent: None,
                tooltip: None,
                icon_path: None,
-                summarizing: thread_context
+                status: if thread_context
                    .thread
                    .read(cx)
-                    .is_generating_detailed_summary(),
+                    .is_generating_detailed_summary()
+                {
+                    ContextStatus::Loading {
+                        message: "Summarizing…".into(),
+                    }
+                } else {
+                    ContextStatus::Ready
+                },
+                render_preview: None,
+            },
+
+            AssistantContext::Rules(user_rules_context) => AddedContext {
+                id: user_rules_context.id,
+                kind: ContextKind::Rules,
+                name: user_rules_context.title.clone(),
+                parent: None,
+                tooltip: None,
+                icon_path: None,
+                status: ContextStatus::Ready,
+                render_preview: None,
+            },
+
+            AssistantContext::Image(image_context) => AddedContext {
+                id: image_context.id,
+                kind: ContextKind::Image,
+                name: "Image".into(),
+                parent: None,
+                tooltip: None,
+                icon_path: None,
+                status: if image_context.is_loading() {
+                    ContextStatus::Loading {
+                        message: "Loading…".into(),
+                    }
+                } else if image_context.is_error() {
+                    ContextStatus::Error {
+                        message: "Failed to load image".into(),
+                    }
+                } else {
+                    ContextStatus::Ready
+                },
+                render_preview: Some(Rc::new({
+                    let image = image_context.original_image.clone();
+                    move |_, _| {
+                        gpui::img(image.clone())
+                            .max_w_96()
+                            .max_h_96()
+                            .into_any_element()
+                    }
+                })),
            },
        }
    }
 }
+
+struct ContextPillPreview {
+    render_preview: Rc<dyn Fn(&mut Window, &mut App) -> AnyElement>,
+}
+
+impl Render for ContextPillPreview {
+    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
+        tooltip_container(window, cx, move |this, window, cx| {
+            this.occlude()
+                .on_mouse_move(|_, _, cx| cx.stop_propagation())
+                .on_mouse_down(MouseButton::Left, |_, _, cx| cx.stop_propagation())
+                .child((self.render_preview)(window, cx))
+        })
+    }
+}
+
+impl Component for AddedContext {
+    fn scope() -> ComponentScope {
+        ComponentScope::Agent
+    }
+
+    fn sort_name() -> &'static str {
+        "AddedContext"
+    }
+
+    fn preview(_window: &mut Window, cx: &mut App) -> Option<AnyElement> {
+        let image_ready = (
+            "Ready",
+            AddedContext::new(
+                &AssistantContext::Image(ImageContext {
+                    id: ContextId(0),
+                    original_image: Arc::new(Image::empty()),
+                    image_task: Task::ready(Some(LanguageModelImage::empty())).shared(),
+                }),
+                cx,
+            ),
+        );
+
+        let image_loading = (
+            "Loading",
+            AddedContext::new(
+                &AssistantContext::Image(ImageContext {
+                    id: ContextId(1),
+                    original_image: Arc::new(Image::empty()),
+                    image_task: cx
+                        .background_spawn(async move {
+                            smol::Timer::after(Duration::from_secs(60 * 5)).await;
+                            Some(LanguageModelImage::empty())
+                        })
+                        .shared(),
+                }),
+                cx,
+            ),
+        );
+
+        let image_error = (
+            "Error",
+            AddedContext::new(
+                &AssistantContext::Image(ImageContext {
+                    id: ContextId(2),
+                    original_image: Arc::new(Image::empty()),
+                    image_task: Task::ready(None).shared(),
+                }),
+                cx,
+            ),
+        );
+
+        Some(
+            v_flex()
+                .gap_6()
+                .children(
+                    vec![image_ready, image_loading, image_error]
+                        .into_iter()
+                        .map(|(text, context)| {
+                            single_example(
+                                text,
+                                ContextPill::added(context, false, false, None).into_any_element(),
+                            )
+                        }),
+                )
+                .into_any(),
+        )
+    }
+}
--- a/crates/agent/src/ui/usage_banner.rs
+++ b/crates/agent/src/ui/usage_banner.rs
@@ -0,0 +1,202 @@
+use client::zed_urls;
+use ui::{Banner, ProgressBar, Severity, prelude::*};
+use zed_llm_client::{Plan, UsageLimit};
+
+#[derive(IntoElement, RegisterComponent)]
+pub struct UsageBanner {
+    plan: Plan,
+    requests: i32,
+}
+
+impl UsageBanner {
+    pub fn new(plan: Plan, requests: i32) -> Self {
+        Self { plan, requests }
+    }
+}
+
+impl RenderOnce for UsageBanner {
+    fn render(self, _window: &mut Window, cx: &mut App) -> impl IntoElement {
+        let request_limit = self.plan.model_requests_limit();
+
+        let used_percentage = match request_limit {
+            UsageLimit::Limited(limit) => Some((self.requests as f32 / limit as f32) * 100.),
+            UsageLimit::Unlimited => None,
+        };
+
+        let (severity, message) = match request_limit {
+            UsageLimit::Limited(limit) => {
+                if self.requests >= limit {
+                    let message = match self.plan {
+                        Plan::ZedPro => "Monthly request limit reached",
+                        Plan::ZedProTrial => "Trial request limit reached",
+                        Plan::Free => "Free tier request limit reached",
+                    };
+
+                    (Severity::Error, message)
+                } else if (self.requests as f32 / limit as f32) >= 0.9 {
+                    (Severity::Warning, "Approaching request limit")
+                } else {
+                    let message = match self.plan {
+                        Plan::ZedPro => "Zed Pro",
+                        Plan::ZedProTrial => "Zed Pro (Trial)",
+                        Plan::Free => "Zed Free",
+                    };
+
+                    (Severity::Info, message)
+                }
+            }
+            UsageLimit::Unlimited => {
+                let message = match self.plan {
+                    Plan::ZedPro => "Zed Pro",
+                    Plan::ZedProTrial => "Zed Pro (Trial)",
+                    Plan::Free => "Zed Free",
+                };
+
+                (Severity::Info, message)
+            }
+        };
+
+        let action = match self.plan {
+            Plan::ZedProTrial | Plan::Free => {
+                Button::new("upgrade", "Upgrade").on_click(|_, _window, cx| {
+                    cx.open_url(&zed_urls::account_url(cx));
+                })
+            }
+            Plan::ZedPro => Button::new("manage", "Manage").on_click(|_, _window, cx| {
+                cx.open_url(&zed_urls::account_url(cx));
+            }),
+        };
+
+        Banner::new().severity(severity).children(
+            h_flex().flex_1().gap_1().child(Label::new(message)).child(
+                h_flex()
+                    .flex_1()
+                    .justify_end()
+                    .gap_1p5()
+                    .children(used_percentage.map(|percent| {
+                        h_flex()
+                            .items_center()
+                            .w_full()
+                            .max_w(px(180.))
+                            .child(ProgressBar::new("usage", percent, 100., cx))
+                    }))
+                    .child(
+                        Label::new(match request_limit {
+                            UsageLimit::Limited(limit) => {
+                                format!("{} / {limit}", self.requests)
+                            }
+                            UsageLimit::Unlimited => format!("{} / ∞", self.requests),
+                        })
+                        .size(LabelSize::Small)
+                        .color(Color::Muted),
+                    )
+                    // Note: This should go in the banner's `action_slot`, but doing that messes with the size of the
+                    // progress bar.
+                    .child(action),
+            ),
+        )
+    }
+}
+
+impl Component for UsageBanner {
+    fn sort_name() -> &'static str {
+        "AgentUsageBanner"
+    }
+
+    fn preview(_window: &mut Window, _cx: &mut App) -> Option<AnyElement> {
+        let trial_examples = vec![
+            single_example(
+                "Zed Pro Trial - New User",
+                div()
+                    .size_full()
+                    .child(UsageBanner::new(Plan::ZedProTrial, 10))
+                    .into_any_element(),
+            ),
+            single_example(
+                "Zed Pro Trial - Approaching Limit",
+                div()
+                    .size_full()
+                    .child(UsageBanner::new(Plan::ZedProTrial, 135))
+                    .into_any_element(),
+            ),
+            single_example(
+                "Zed Pro Trial - Request Limit Reached",
+                div()
+                    .size_full()
+                    .child(UsageBanner::new(Plan::ZedProTrial, 150))
+                    .into_any_element(),
+            ),
+        ];
+
+        let free_examples = vec![
+            single_example(
+                "Free - Normal Usage",
+                div()
+                    .size_full()
+                    .child(UsageBanner::new(Plan::Free, 25))
+                    .into_any_element(),
+            ),
+            single_example(
+                "Free - Approaching Limit",
+                div()
+                    .size_full()
+                    .child(UsageBanner::new(Plan::Free, 45))
+                    .into_any_element(),
+            ),
+            single_example(
+                "Free - Request Limit Reached",
+                div()
+                    .size_full()
+                    .child(UsageBanner::new(Plan::Free, 50))
+                    .into_any_element(),
+            ),
+        ];
+
+        let zed_pro_examples = vec![
+            single_example(
+                "Zed Pro - Normal Usage",
+                div()
+                    .size_full()
+                    .child(UsageBanner::new(Plan::ZedPro, 250))
+                    .into_any_element(),
+            ),
+            single_example(
+                "Zed Pro - Approaching Limit",
+                div()
+                    .size_full()
+                    .child(UsageBanner::new(Plan::ZedPro, 450))
+                    .into_any_element(),
+            ),
+            single_example(
+                "Zed Pro - Request Limit Reached",
+                div()
+                    .size_full()
+                    .child(UsageBanner::new(Plan::ZedPro, 500))
+                    .into_any_element(),
+            ),
+        ];
+
+        Some(
+            v_flex()
+                .gap_6()
+                .p_4()
+                .children(vec![
+                    Label::new("Trial Plan")
+                        .size(LabelSize::Large)
+                        .into_any_element(),
+                    example_group(trial_examples).vertical().into_any_element(),
+                    Label::new("Free Plan")
+                        .size(LabelSize::Large)
+                        .into_any_element(),
+                    example_group(free_examples).vertical().into_any_element(),
+                    Label::new("Pro Plan")
+                        .size(LabelSize::Large)
+                        .into_any_element(),
+                    example_group(zed_pro_examples)
+                        .vertical()
+                        .into_any_element(),
+                ])
+                .into_any_element(),
+        )
+    }
+}
--- a/crates/agent/src/ui/user_spending.rs
+++ b/crates/agent/src/ui/user_spending.rs
@@ -1,186 +0,0 @@
-use gpui::{Entity, Render};
-use ui::{ProgressBar, prelude::*};
-
-#[derive(RegisterComponent)]
-pub struct UserSpending {
-    free_tier_current: u32,
-    free_tier_cap: u32,
-    over_tier_current: u32,
-    over_tier_cap: u32,
-    free_tier_progress: Entity<ProgressBar>,
-    over_tier_progress: Entity<ProgressBar>,
-}
-
-impl UserSpending {
-    pub fn new(
-        free_tier_current: u32,
-        free_tier_cap: u32,
-        over_tier_current: u32,
-        over_tier_cap: u32,
-        cx: &mut App,
-    ) -> Self {
-        let free_tier_capped = free_tier_current == free_tier_cap;
-        let free_tier_near_capped =
-            free_tier_current as f32 / 100.0 >= free_tier_cap as f32 / 100.0 * 0.9;
-        let over_tier_capped = over_tier_current == over_tier_cap;
-        let over_tier_near_capped =
-            over_tier_current as f32 / 100.0 >= over_tier_cap as f32 / 100.0 * 0.9;
-
-        let free_tier_progress = cx.new(|cx| {
-            ProgressBar::new(
-                "free_tier",
-                free_tier_current as f32,
-                free_tier_cap as f32,
-                cx,
-            )
-        });
-        let over_tier_progress = cx.new(|cx| {
-            ProgressBar::new(
-                "over_tier",
-                over_tier_current as f32,
-                over_tier_cap as f32,
-                cx,
-            )
-        });
-
-        if free_tier_capped {
-            free_tier_progress.update(cx, |progress_bar, cx| {
-                progress_bar.fg_color(cx.theme().status().error);
-            });
-        } else if free_tier_near_capped {
-            free_tier_progress.update(cx, |progress_bar, cx| {
-                progress_bar.fg_color(cx.theme().status().warning);
-            });
-        }
-
-        if over_tier_capped {
-            over_tier_progress.update(cx, |progress_bar, cx| {
-                progress_bar.fg_color(cx.theme().status().error);
-            });
-        } else if over_tier_near_capped {
-            over_tier_progress.update(cx, |progress_bar, cx| {
-                progress_bar.fg_color(cx.theme().status().warning);
-            });
-        }
-
-        Self {
-            free_tier_current,
-            free_tier_cap,
-            over_tier_current,
-            over_tier_cap,
-            free_tier_progress,
-            over_tier_progress,
-        }
-    }
-}
-
-impl Render for UserSpending {
-    fn render(&mut self, _window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
-        let formatted_free_tier = format!(
-            "${} / ${}",
-            self.free_tier_current as f32 / 100.0,
-            self.free_tier_cap as f32 / 100.0
-        );
-        let formatted_over_tier = format!(
-            "${} / ${}",
-            self.over_tier_current as f32 / 100.0,
-            self.over_tier_cap as f32 / 100.0
-        );
-
-        v_group()
-            .elevation_2(cx)
-            .py_1p5()
-            .px_2p5()
-            .w(px(360.))
-            .child(
-                v_flex()
-                    .child(
-                        v_flex()
-                            .p_1p5()
-                            .gap_0p5()
-                            .child(
-                                h_flex()
-                                    .justify_between()
-                                    .child(Label::new("Free Tier Usage").size(LabelSize::Small))
-                                    .child(
-                                        Label::new(formatted_free_tier)
-                                            .size(LabelSize::Small)
-                                            .color(Color::Muted),
-                                    ),
-                            )
-                            .child(self.free_tier_progress.clone()),
-                    )
-                    .child(
-                        v_flex()
-                            .p_1p5()
-                            .gap_0p5()
-                            .child(
-                                h_flex()
-                                    .justify_between()
-                                    .child(Label::new("Current Spending").size(LabelSize::Small))
-                                    .child(
-                                        Label::new(formatted_over_tier)
-                                            .size(LabelSize::Small)
-                                            .color(Color::Muted),
-                                    ),
-                            )
-                            .child(self.over_tier_progress.clone()),
-                    ),
-            )
-    }
-}
-
-impl Component for UserSpending {
-    fn scope() -> ComponentScope {
-        ComponentScope::None
-    }
-
-    fn preview(_window: &mut Window, cx: &mut App) -> Option<AnyElement> {
-        let new_user = cx.new(|cx| UserSpending::new(0, 2000, 0, 2000, cx));
-        let free_capped = cx.new(|cx| UserSpending::new(2000, 2000, 0, 2000, cx));
-        let free_near_capped = cx.new(|cx| UserSpending::new(1800, 2000, 0, 2000, cx));
-        let over_near_capped = cx.new(|cx| UserSpending::new(2000, 2000, 1800, 2000, cx));
-        let over_capped = cx.new(|cx| UserSpending::new(1000, 2000, 2000, 2000, cx));
-
-        Some(
-            v_flex()
-                .gap_6()
-                .p_4()
-                .children(vec![example_group(vec![
-                    single_example(
-                        "New User",
-                        div().size_full().child(new_user.clone()).into_any_element(),
-                    ),
-                    single_example(
-                        "Free Tier Capped",
-                        div()
-                            .size_full()
-                            .child(free_capped.clone())
-                            .into_any_element(),
-                    ),
-                    single_example(
-                        "Free Tier Near Capped",
-                        div()
-                            .size_full()
-                            .child(free_near_capped.clone())
-                            .into_any_element(),
-                    ),
-                    single_example(
-                        "Over Tier Near Capped",
-                        div()
-                            .size_full()
-                            .child(over_near_capped.clone())
-                            .into_any_element(),
-                    ),
-                    single_example(
-                        "Over Tier Capped",
-                        div()
-                            .size_full()
-                            .child(over_capped.clone())
-                            .into_any_element(),
-                    ),
-                ])])
-                .into_any_element(),
-        )
-    }
-}
--- a/crates/anthropic/src/anthropic.rs
+++ b/crates/anthropic/src/anthropic.rs
@@ -74,6 +74,10 @@ pub enum Model {
 }

 impl Model {
+    pub fn default_fast() -> Self {
+        Self::Claude3_5Haiku
+    }
+
    pub fn from_id(id: &str) -> Result<Self> {
        if id.starts_with("claude-3-5-sonnet") {
            Ok(Self::Claude3_5Sonnet)
@@ -507,6 +511,15 @@ pub enum RequestContent {
        #[serde(skip_serializing_if = "Option::is_none")]
        cache_control: Option<CacheControl>,
    },
+    #[serde(rename = "thinking")]
+    Thinking {
+        thinking: String,
+        signature: String,
+        #[serde(skip_serializing_if = "Option::is_none")]
+        cache_control: Option<CacheControl>,
+    },
+    #[serde(rename = "redacted_thinking")]
+    RedactedThinking { data: String },
    #[serde(rename = "image")]
    Image {
        source: ImageSource,
--- a/crates/assistant/src/assistant.rs
+++ b/crates/assistant/src/assistant.rs
@@ -8,7 +8,7 @@ mod terminal_inline_assistant;

 use std::sync::Arc;

-use assistant_settings::AssistantSettings;
+use assistant_settings::{AssistantSettings, LanguageModelSelection};
 use assistant_slash_command::SlashCommandRegistry;
 use client::Client;
 use command_palette_hooks::CommandPaletteFilter;
@@ -161,71 +161,38 @@ fn init_language_model_settings(cx: &mut App) {

 fn update_active_language_model_from_settings(cx: &mut App) {
    let settings = AssistantSettings::get_global(cx);
-    // Default model - used as fallback
-    let active_model_provider_name =
-        LanguageModelProviderId::from(settings.default_model.provider.clone());
-    let active_model_id = LanguageModelId::from(settings.default_model.model.clone());

-    // Inline assistant model
-    let inline_assistant_model = settings
+    fn to_selected_model(selection: &LanguageModelSelection) -> language_model::SelectedModel {
+        language_model::SelectedModel {
+            provider: LanguageModelProviderId::from(selection.provider.clone()),
+            model: LanguageModelId::from(selection.model.clone()),
+        }
+    }
+
+    let default = to_selected_model(&settings.default_model);
+    let inline_assistant = settings
        .inline_assistant_model
        .as_ref()
-        .unwrap_or(&settings.default_model);
-    let inline_assistant_provider_name =
-        LanguageModelProviderId::from(inline_assistant_model.provider.clone());
-    let inline_assistant_model_id = LanguageModelId::from(inline_assistant_model.model.clone());
-
-    // Commit message model
-    let commit_message_model = settings
+        .map(to_selected_model);
+    let commit_message = settings
        .commit_message_model
        .as_ref()
-        .unwrap_or(&settings.default_model);
-    let commit_message_provider_name =
-        LanguageModelProviderId::from(commit_message_model.provider.clone());
-    let commit_message_model_id = LanguageModelId::from(commit_message_model.model.clone());
-
-    // Thread summary model
-    let thread_summary_model = settings
+        .map(to_selected_model);
+    let thread_summary = settings
        .thread_summary_model
        .as_ref()
-        .unwrap_or(&settings.default_model);
-    let thread_summary_provider_name =
-        LanguageModelProviderId::from(thread_summary_model.provider.clone());
-    let thread_summary_model_id = LanguageModelId::from(thread_summary_model.model.clone());
-
+        .map(to_selected_model);
    let inline_alternatives = settings
        .inline_alternatives
        .iter()
-        .map(|alternative| {
-            (
-                LanguageModelProviderId::from(alternative.provider.clone()),
-                LanguageModelId::from(alternative.model.clone()),
-            )
-        })
+        .map(to_selected_model)
        .collect::<Vec<_>>();

    LanguageModelRegistry::global(cx).update(cx, |registry, cx| {
-        // Set the default model
-        registry.select_default_model(&active_model_provider_name, &active_model_id, cx);
-
-        // Set the specific models
-        registry.select_inline_assistant_model(
-            &inline_assistant_provider_name,
-            &inline_assistant_model_id,
-            cx,
-        );
-        registry.select_commit_message_model(
-            &commit_message_provider_name,
-            &commit_message_model_id,
-            cx,
-        );
-        registry.select_thread_summary_model(
-            &thread_summary_provider_name,
-            &thread_summary_model_id,
-            cx,
-        );
-
-        // Set the alternatives
+        registry.select_default_model(Some(&default), cx);
+        registry.select_inline_assistant_model(inline_assistant.as_ref(), cx);
+        registry.select_commit_message_model(commit_message.as_ref(), cx);
+        registry.select_thread_summary_model(thread_summary.as_ref(), cx);
        registry.select_inline_alternative_models(inline_alternatives, cx);
    });
 }
--- a/crates/assistant/src/assistant_panel.rs
+++ b/crates/assistant/src/assistant_panel.rs
@@ -13,7 +13,7 @@ use assistant_context_editor::{
 use assistant_settings::{AssistantDockPosition, AssistantSettings};
 use assistant_slash_command::SlashCommandWorkingSet;
 use client::{Client, Status, proto};
-use editor::{Editor, EditorEvent};
+use editor::{Anchor, AnchorRangeExt as _, Editor, EditorEvent, MultiBuffer};
 use fs::Fs;
 use gpui::{
    Action, App, AsyncWindowContext, Entity, EventEmitter, ExternalPaths, FocusHandle, Focusable,
@@ -27,10 +27,13 @@ use language_model::{
 };
 use project::Project;
 use prompt_library::{PromptLibrary, open_prompt_library};
-use prompt_store::PromptBuilder;
+use prompt_store::{PromptBuilder, PromptId, UserPromptId};
+
 use search::{BufferSearchBar, buffer_search::DivRegistrar};
 use settings::{Settings, update_settings_file};
 use smol::stream::StreamExt;
+
+use std::ops::Range;
 use std::{ops::ControlFlow, path::PathBuf, sync::Arc};
 use terminal_view::{TerminalView, terminal_panel::TerminalPanel};
 use ui::{ContextMenu, PopoverMenu, Tooltip, prelude::*};
@@ -55,11 +58,11 @@ pub fn init(cx: &mut App) {
                .register_action(AssistantPanel::show_configuration)
                .register_action(AssistantPanel::create_new_context)
                .register_action(AssistantPanel::restart_context_servers)
-                .register_action(|workspace, _: &OpenPromptLibrary, window, cx| {
+                .register_action(|workspace, action: &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)
+                            panel.deploy_prompt_library(action, window, cx)
                        });
                    }
                });
@@ -269,7 +272,10 @@ impl AssistantPanel {
                                    menu.context(focus_handle.clone())
                                        .action("New Chat", Box::new(NewChat))
                                        .action("History", Box::new(DeployHistory))
-                                        .action("Prompt Library", Box::new(OpenPromptLibrary))
+                                        .action(
+                                            "Prompt Library",
+                                            Box::new(OpenPromptLibrary::default()),
+                                        )
                                        .action("Configure", Box::new(ShowConfiguration))
                                        .action(zoom_label, Box::new(ToggleZoom))
                                }))
@@ -1040,7 +1046,7 @@ impl AssistantPanel {

    fn deploy_prompt_library(
        &mut self,
-        _: &OpenPromptLibrary,
+        action: &OpenPromptLibrary,
        _window: &mut Window,
        cx: &mut Context<Self>,
    ) {
@@ -1054,6 +1060,9 @@ impl AssistantPanel {
                    None,
                ))
            }),
+            action.prompt_to_select.map(|uuid| PromptId::User {
+                uuid: UserPromptId(uuid),
+            }),
            cx,
        )
        .detach_and_log_err(cx);
@@ -1413,7 +1422,8 @@ impl AssistantPanelDelegate for ConcreteAssistantPanelDelegate {
    fn quote_selection(
        &self,
        workspace: &mut Workspace,
-        creases: Vec<(String, String)>,
+        selection_ranges: Vec<Range<Anchor>>,
+        buffer: Entity<MultiBuffer>,
        window: &mut Window,
        cx: &mut Context<Workspace>,
    ) {
@@ -1425,6 +1435,12 @@ impl AssistantPanelDelegate for ConcreteAssistantPanelDelegate {
            workspace.toggle_panel_focus::<AssistantPanel>(window, cx);
        }

+        let snapshot = buffer.read(cx).snapshot(cx);
+        let selection_ranges = selection_ranges
+            .into_iter()
+            .map(|range| range.to_point(&snapshot))
+            .collect::<Vec<_>>();
+
        panel.update(cx, |_, cx| {
            // Wait to create a new context until the workspace is no longer
            // being updated.
@@ -1433,7 +1449,9 @@ impl AssistantPanelDelegate for ConcreteAssistantPanelDelegate {
                    .active_context_editor(cx)
                    .or_else(|| panel.new_context(window, cx))
                {
-                    context.update(cx, |context, cx| context.quote_creases(creases, window, cx));
+                    context.update(cx, |context, cx| {
+                        context.quote_ranges(selection_ranges, snapshot, window, cx)
+                    });
                };
            });
        });
--- a/crates/assistant/src/inline_assistant.rs
+++ b/crates/assistant/src/inline_assistant.rs
@@ -37,7 +37,7 @@ use language_model::{
    ConfiguredModel, LanguageModel, LanguageModelRegistry, LanguageModelRequest,
    LanguageModelRequestMessage, LanguageModelTextStream, Role, report_assistant_event,
 };
-use language_model_selector::{LanguageModelSelector, LanguageModelSelectorPopoverMenu};
+use language_model_selector::{LanguageModelSelector, LanguageModelSelectorPopoverMenu, ModelType};
 use multi_buffer::MultiBufferRow;
 use parking_lot::Mutex;
 use project::{CodeAction, LspAction, ProjectTransaction};
@@ -1766,6 +1766,7 @@ impl PromptEditor {
                            move |settings, _| settings.set_model(model.clone()),
                        );
                    },
+                    ModelType::Default,
                    window,
                    cx,
                )
@@ -2978,6 +2979,8 @@ impl CodegenAlternative {
        });

        Ok(LanguageModelRequest {
+            thread_id: None,
+            prompt_id: None,
            messages,
            tools: Vec::new(),
            stop: Vec::new(),
--- a/crates/assistant/src/terminal_inline_assistant.rs
+++ b/crates/assistant/src/terminal_inline_assistant.rs
@@ -19,7 +19,7 @@ use language_model::{
    ConfiguredModel, LanguageModelRegistry, LanguageModelRequest, LanguageModelRequestMessage,
    Role, report_assistant_event,
 };
-use language_model_selector::{LanguageModelSelector, LanguageModelSelectorPopoverMenu};
+use language_model_selector::{LanguageModelSelector, LanguageModelSelectorPopoverMenu, ModelType};
 use prompt_store::PromptBuilder;
 use settings::{Settings, update_settings_file};
 use std::{
@@ -292,6 +292,8 @@ impl TerminalInlineAssistant {
        });

        Ok(LanguageModelRequest {
+            thread_id: None,
+            prompt_id: None,
            messages,
            tools: Vec::new(),
            stop: Vec::new(),
@@ -753,6 +755,7 @@ impl PromptEditor {
                            move |settings, _| settings.set_model(model.clone()),
                        );
                    },
+                    ModelType::Default,
                    window,
                    cx,
                )
--- a/crates/assistant_context_editor/src/context.rs
+++ b/crates/assistant_context_editor/src/context.rs
@@ -2373,7 +2373,7 @@ impl AssistantContext {
                                    LanguageModelCompletionEvent::Stop(reason) => {
                                        stop_reason = reason;
                                    }
-                                    LanguageModelCompletionEvent::Thinking(chunk) => {
+                                    LanguageModelCompletionEvent::Thinking { text: chunk, .. } => {
                                        if thought_process_stack.is_empty() {
                                            let start =
                                                buffer.anchor_before(message_old_end_offset);
@@ -2555,6 +2555,8 @@ impl AssistantContext {
        }

        let mut completion_request = LanguageModelRequest {
+            thread_id: None,
+            prompt_id: None,
            messages: Vec::new(),
            tools: Vec::new(),
            stop: Vec::new(),
@@ -2609,7 +2611,9 @@ impl AssistantContext {
                    .map(MessageContent::Text),
            );

-            completion_request.messages.push(request_message);
+            if !request_message.contents_empty() {
+                completion_request.messages.push(request_message);
+            }
        }

        if let RequestType::SuggestEdits = request_type {
--- a/crates/assistant_context_editor/src/context_editor.rs
+++ b/crates/assistant_context_editor/src/context_editor.rs
@@ -8,8 +8,8 @@ use assistant_slash_commands::{
 use client::{proto, zed_urls};
 use collections::{BTreeSet, HashMap, HashSet, hash_map};
 use editor::{
-    Anchor, Editor, EditorEvent, MenuInlineCompletionsPolicy, ProposedChangeLocation,
-    ProposedChangesEditor, RowExt, ToOffset as _, ToPoint,
+    Anchor, Editor, EditorEvent, MenuInlineCompletionsPolicy, MultiBuffer, MultiBufferSnapshot,
+    ProposedChangeLocation, ProposedChangesEditor, RowExt, ToOffset as _, ToPoint,
    actions::{MoveToEndOfLine, Newline, ShowCompletions},
    display_map::{
        BlockContext, BlockId, BlockPlacement, BlockProperties, BlockStyle, Crease, CreaseMetadata,
@@ -39,7 +39,7 @@ use language_model::{
    Role,
 };
 use language_model_selector::{
-    LanguageModelSelector, LanguageModelSelectorPopoverMenu, ToggleModelSelector,
+    LanguageModelSelector, LanguageModelSelectorPopoverMenu, ModelType, ToggleModelSelector,
 };
 use multi_buffer::MultiBufferRow;
 use picker::Picker;
@@ -155,7 +155,8 @@ pub trait AssistantPanelDelegate {
    fn quote_selection(
        &self,
        workspace: &mut Workspace,
-        creases: Vec<(String, String)>,
+        selection_ranges: Vec<Range<Anchor>>,
+        buffer: Entity<MultiBuffer>,
        window: &mut Window,
        cx: &mut Context<Workspace>,
    );
@@ -297,6 +298,7 @@ impl ContextEditor {
                            move |settings, _| settings.set_model(model.clone()),
                        );
                    },
+                    ModelType::Default,
                    window,
                    cx,
                )
@@ -1800,23 +1802,45 @@ impl ContextEditor {
            return;
        };

-        let Some(creases) = selections_creases(workspace, cx) else {
+        let Some((selections, buffer)) = maybe!({
+            let editor = workspace
+                .active_item(cx)
+                .and_then(|item| item.act_as::<Editor>(cx))?;
+
+            let buffer = editor.read(cx).buffer().clone();
+            let snapshot = buffer.read(cx).snapshot(cx);
+            let selections = editor.update(cx, |editor, cx| {
+                editor
+                    .selections
+                    .all_adjusted(cx)
+                    .into_iter()
+                    .filter_map(|s| {
+                        (!s.is_empty())
+                            .then(|| snapshot.anchor_after(s.start)..snapshot.anchor_before(s.end))
+                    })
+                    .collect::<Vec<_>>()
+            });
+            Some((selections, buffer))
+        }) else {
            return;
        };

-        if creases.is_empty() {
+        if selections.is_empty() {
            return;
        }

-        assistant_panel_delegate.quote_selection(workspace, creases, window, cx);
+        assistant_panel_delegate.quote_selection(workspace, selections, buffer, window, cx);
    }

-    pub fn quote_creases(
+    pub fn quote_ranges(
        &mut self,
-        creases: Vec<(String, String)>,
+        ranges: Vec<Range<Point>>,
+        snapshot: MultiBufferSnapshot,
        window: &mut Window,
        cx: &mut Context<Self>,
    ) {
+        let creases = selections_creases(ranges, snapshot, cx);
+
        self.editor.update(cx, |editor, cx| {
            editor.insert("\n", window, cx);
            for (text, crease_title) in creases {
@@ -2065,7 +2089,7 @@ impl ContextEditor {
                        continue;
                    };
                    let image_id = image.id();
-                    let image_task = LanguageModelImage::from_image(image, cx).shared();
+                    let image_task = LanguageModelImage::from_image(Arc::new(image), cx).shared();

                    for image_position in image_positions.iter() {
                        context.insert_content(
--- a/crates/assistant_slash_commands/src/default_command.rs
+++ b/crates/assistant_slash_commands/src/default_command.rs
@@ -54,9 +54,9 @@ impl SlashCommand for DefaultSlashCommand {
        cx: &mut App,
    ) -> Task<SlashCommandResult> {
        let store = PromptStore::global(cx);
-        cx.background_spawn(async move {
+        cx.spawn(async move |cx| {
            let store = store.await?;
-            let prompts = store.default_prompt_metadata();
+            let prompts = store.read_with(cx, |store, _cx| store.default_prompt_metadata())?;

            let mut text = String::new();
            text.push('\n');
--- a/crates/assistant_slash_commands/src/prompt_command.rs
+++ b/crates/assistant_slash_commands/src/prompt_command.rs
@@ -5,7 +5,7 @@ use assistant_slash_command::{
 };
 use gpui::{Task, WeakEntity};
 use language::{BufferSnapshot, LspAdapterDelegate};
-use prompt_store::PromptStore;
+use prompt_store::{PromptMetadata, PromptStore};
 use std::sync::{Arc, atomic::AtomicBool};
 use ui::prelude::*;
 use workspace::Workspace;
@@ -43,8 +43,12 @@ impl SlashCommand for PromptSlashCommand {
    ) -> Task<Result<Vec<ArgumentCompletion>>> {
        let store = PromptStore::global(cx);
        let query = arguments.to_owned().join(" ");
-        cx.background_spawn(async move {
-            let prompts = store.await?.search(query).await;
+        cx.spawn(async move |cx| {
+            let cancellation_flag = Arc::new(AtomicBool::default());
+            let prompts: Vec<PromptMetadata> = store
+                .await?
+                .read_with(cx, |store, cx| store.search(query, cancellation_flag, cx))?
+                .await;
            Ok(prompts
                .into_iter()
                .filter_map(|prompt| {
@@ -77,14 +81,18 @@ impl SlashCommand for PromptSlashCommand {

        let store = PromptStore::global(cx);
        let title = SharedString::from(title.clone());
-        let prompt = cx.background_spawn({
+        let prompt = cx.spawn({
            let title = title.clone();
-            async move {
+            async move |cx| {
                let store = store.await?;
-                let prompt_id = store
-                    .id_for_title(&title)
-                    .with_context(|| format!("no prompt found with title {:?}", title))?;
-                let body = store.load(prompt_id).await?;
+                let body = store
+                    .read_with(cx, |store, cx| {
+                        let prompt_id = store
+                            .id_for_title(&title)
+                            .with_context(|| format!("no prompt found with title {:?}", title))?;
+                        anyhow::Ok(store.load(prompt_id, cx))
+                    })??
+                    .await?;
                anyhow::Ok(body)
            }
        });
--- a/crates/assistant_slash_commands/src/selection_command.rs
+++ b/crates/assistant_slash_commands/src/selection_command.rs
@@ -3,10 +3,12 @@ use assistant_slash_command::{
    ArgumentCompletion, SlashCommand, SlashCommandContent, SlashCommandEvent,
    SlashCommandOutputSection, SlashCommandResult,
 };
-use editor::Editor;
+use editor::{Editor, MultiBufferSnapshot};
 use futures::StreamExt;
-use gpui::{App, Context, SharedString, Task, WeakEntity, Window};
+use gpui::{App, SharedString, Task, WeakEntity, Window};
 use language::{BufferSnapshot, CodeLabel, LspAdapterDelegate};
+use rope::Point;
+use std::ops::Range;
 use std::sync::Arc;
 use std::sync::atomic::AtomicBool;
 use ui::IconName;
@@ -69,7 +71,22 @@ impl SlashCommand for SelectionCommand {
        let mut events = vec![];

        let Some(creases) = workspace
-            .update(cx, selections_creases)
+            .update(cx, |workspace, cx| {
+                let editor = workspace
+                    .active_item(cx)
+                    .and_then(|item| item.act_as::<Editor>(cx))?;
+
+                editor.update(cx, |editor, cx| {
+                    let selection_ranges = editor
+                        .selections
+                        .all_adjusted(cx)
+                        .iter()
+                        .map(|selection| selection.range())
+                        .collect::<Vec<_>>();
+                    let snapshot = editor.buffer().read(cx).snapshot(cx);
+                    Some(selections_creases(selection_ranges, snapshot, cx))
+                })
+            })
            .unwrap_or_else(|e| {
                events.push(Err(e));
                None
@@ -102,94 +119,82 @@ impl SlashCommand for SelectionCommand {
 }

 pub fn selections_creases(
-    workspace: &mut workspace::Workspace,
-    cx: &mut Context<Workspace>,
-) -> Option<Vec<(String, String)>> {
-    let editor = workspace
-        .active_item(cx)
-        .and_then(|item| item.act_as::<Editor>(cx))?;
-
-    let mut creases = vec![];
-    editor.update(cx, |editor, cx| {
-        let selections = editor.selections.all_adjusted(cx);
-        let buffer = editor.buffer().read(cx).snapshot(cx);
-        for selection in selections {
-            let range = editor::ToOffset::to_offset(&selection.start, &buffer)
-                ..editor::ToOffset::to_offset(&selection.end, &buffer);
-            let selected_text = buffer.text_for_range(range.clone()).collect::<String>();
-            if selected_text.is_empty() {
-                continue;
-            }
-            let start_language = buffer.language_at(range.start);
-            let end_language = buffer.language_at(range.end);
-            let language_name = if start_language == end_language {
-                start_language.map(|language| language.code_fence_block_name())
-            } else {
-                None
-            };
-            let language_name = language_name.as_deref().unwrap_or("");
-            let filename = buffer
-                .file_at(selection.start)
-                .map(|file| file.full_path(cx));
-            let text = if language_name == "markdown" {
-                selected_text
-                    .lines()
-                    .map(|line| format!("> {}", line))
-                    .collect::<Vec<_>>()
-                    .join("\n")
-            } else {
-                let start_symbols = buffer
-                    .symbols_containing(selection.start, None)
-                    .map(|(_, symbols)| symbols);
-                let end_symbols = buffer
-                    .symbols_containing(selection.end, None)
-                    .map(|(_, symbols)| symbols);
-
-                let outline_text =
-                    if let Some((start_symbols, end_symbols)) = start_symbols.zip(end_symbols) {
-                        Some(
-                            start_symbols
-                                .into_iter()
-                                .zip(end_symbols)
-                                .take_while(|(a, b)| a == b)
-                                .map(|(a, _)| a.text)
-                                .collect::<Vec<_>>()
-                                .join(" > "),
-                        )
-                    } else {
-                        None
-                    };
-
-                let line_comment_prefix = start_language
-                    .and_then(|l| l.default_scope().line_comment_prefixes().first().cloned());
-
-                let fence = codeblock_fence_for_path(
-                    filename.as_deref(),
-                    Some(selection.start.row..=selection.end.row),
-                );
-
-                if let Some((line_comment_prefix, outline_text)) =
-                    line_comment_prefix.zip(outline_text)
-                {
-                    let breadcrumb = format!("{line_comment_prefix}Excerpt from: {outline_text}\n");
-                    format!("{fence}{breadcrumb}{selected_text}\n```")
-                } else {
-                    format!("{fence}{selected_text}\n```")
-                }
-            };
-            let crease_title = if let Some(path) = filename {
-                let start_line = selection.start.row + 1;
-                let end_line = selection.end.row + 1;
-                if start_line == end_line {
-                    format!("{}, Line {}", path.display(), start_line)
-                } else {
-                    format!("{}, Lines {} to {}", path.display(), start_line, end_line)
-                }
-            } else {
-                "Quoted selection".to_string()
-            };
-            creases.push((text, crease_title));
+    selection_ranges: Vec<Range<Point>>,
+    snapshot: MultiBufferSnapshot,
+    cx: &App,
+) -> Vec<(String, String)> {
+    let mut creases = Vec::new();
+    for range in selection_ranges {
+        let selected_text = snapshot.text_for_range(range.clone()).collect::<String>();
+        if selected_text.is_empty() {
+            continue;
        }
-    });
-    Some(creases)
+        let start_language = snapshot.language_at(range.start);
+        let end_language = snapshot.language_at(range.end);
+        let language_name = if start_language == end_language {
+            start_language.map(|language| language.code_fence_block_name())
+        } else {
+            None
+        };
+        let language_name = language_name.as_deref().unwrap_or("");
+        let filename = snapshot.file_at(range.start).map(|file| file.full_path(cx));
+        let text = if language_name == "markdown" {
+            selected_text
+                .lines()
+                .map(|line| format!("> {}", line))
+                .collect::<Vec<_>>()
+                .join("\n")
+        } else {
+            let start_symbols = snapshot
+                .symbols_containing(range.start, None)
+                .map(|(_, symbols)| symbols);
+            let end_symbols = snapshot
+                .symbols_containing(range.end, None)
+                .map(|(_, symbols)| symbols);
+
+            let outline_text =
+                if let Some((start_symbols, end_symbols)) = start_symbols.zip(end_symbols) {
+                    Some(
+                        start_symbols
+                            .into_iter()
+                            .zip(end_symbols)
+                            .take_while(|(a, b)| a == b)
+                            .map(|(a, _)| a.text)
+                            .collect::<Vec<_>>()
+                            .join(" > "),
+                    )
+                } else {
+                    None
+                };
+
+            let line_comment_prefix = start_language
+                .and_then(|l| l.default_scope().line_comment_prefixes().first().cloned());
+
+            let fence = codeblock_fence_for_path(
+                filename.as_deref(),
+                Some(range.start.row..=range.end.row),
+            );
+
+            if let Some((line_comment_prefix, outline_text)) = line_comment_prefix.zip(outline_text)
+            {
+                let breadcrumb = format!("{line_comment_prefix}Excerpt from: {outline_text}\n");
+                format!("{fence}{breadcrumb}{selected_text}\n```")
+            } else {
+                format!("{fence}{selected_text}\n```")
+            }
+        };
+        let crease_title = if let Some(path) = filename {
+            let start_line = range.start.row + 1;
+            let end_line = range.end.row + 1;
+            if start_line == end_line {
+                format!("{}, Line {}", path.display(), start_line)
+            } else {
+                format!("{}, Lines {} to {}", path.display(), start_line, end_line)
+            }
+        } else {
+            "Quoted selection".to_string()
+        };
+        creases.push((text, crease_title));
+    }
+    creases
 }
--- a/crates/assistant_tool/src/assistant_tool.rs
+++ b/crates/assistant_tool/src/assistant_tool.rs
@@ -9,6 +9,10 @@ use std::fmt::Formatter;
 use std::sync::Arc;

 use anyhow::Result;
+use gpui::AnyElement;
+use gpui::Context;
+use gpui::IntoElement;
+use gpui::Window;
 use gpui::{App, Entity, SharedString, Task};
 use icons::IconName;
 use language_model::LanguageModelRequestMessage;
@@ -24,16 +28,89 @@ pub fn init(cx: &mut App) {
    ToolRegistry::default_global(cx);
 }

-/// The result of running a tool
+#[derive(Debug, Clone)]
+pub enum ToolUseStatus {
+    InputStillStreaming,
+    NeedsConfirmation,
+    Pending,
+    Running,
+    Finished(SharedString),
+    Error(SharedString),
+}
+
+impl ToolUseStatus {
+    pub fn text(&self) -> SharedString {
+        match self {
+            ToolUseStatus::NeedsConfirmation => "".into(),
+            ToolUseStatus::InputStillStreaming => "".into(),
+            ToolUseStatus::Pending => "".into(),
+            ToolUseStatus::Running => "".into(),
+            ToolUseStatus::Finished(out) => out.clone(),
+            ToolUseStatus::Error(out) => out.clone(),
+        }
+    }
+}
+
+/// The result of running a tool, containing both the asynchronous output
+/// and an optional card view that can be rendered immediately.
 pub struct ToolResult {
    /// The asynchronous task that will eventually resolve to the tool's output
    pub output: Task<Result<String>>,
+    /// An optional view to present the output of the tool.
+    pub card: Option<AnyToolCard>,
+}
+
+pub trait ToolCard: 'static + Sized {
+    fn render(
+        &mut self,
+        status: &ToolUseStatus,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> impl IntoElement;
+}
+
+#[derive(Clone)]
+pub struct AnyToolCard {
+    entity: gpui::AnyEntity,
+    render: fn(
+        entity: gpui::AnyEntity,
+        status: &ToolUseStatus,
+        window: &mut Window,
+        cx: &mut App,
+    ) -> AnyElement,
+}
+
+impl<T: ToolCard> From<Entity<T>> for AnyToolCard {
+    fn from(entity: Entity<T>) -> Self {
+        fn downcast_render<T: ToolCard>(
+            entity: gpui::AnyEntity,
+            status: &ToolUseStatus,
+            window: &mut Window,
+            cx: &mut App,
+        ) -> AnyElement {
+            let entity = entity.downcast::<T>().unwrap();
+            entity.update(cx, |entity, cx| {
+                entity.render(status, window, cx).into_any_element()
+            })
+        }
+
+        Self {
+            entity: entity.into(),
+            render: downcast_render::<T>,
+        }
+    }
+}
+
+impl AnyToolCard {
+    pub fn render(&self, status: &ToolUseStatus, window: &mut Window, cx: &mut App) -> AnyElement {
+        (self.render)(self.entity.clone(), status, window, cx)
+    }
 }

 impl From<Task<Result<String>>> for ToolResult {
-    /// Convert from a task to a ToolResult
+    /// Convert from a task to a ToolResult with no card
    fn from(output: Task<Result<String>>) -> Self {
-        Self { output }
+        Self { output, card: None }
    }
 }

@@ -73,6 +150,12 @@ pub trait Tool: 'static + Send + Sync {
    /// Returns markdown to be displayed in the UI for this tool.
    fn ui_text(&self, input: &serde_json::Value) -> String;

+    /// Returns markdown to be displayed in the UI for this tool, while the input JSON is still streaming
+    /// (so information may be missing).
+    fn still_streaming_ui_text(&self, input: &serde_json::Value) -> String {
+        self.ui_text(input)
+    }
+
    /// Runs the tool with the provided input.
    fn run(
        self: Arc<Self>,
--- a/crates/assistant_tools/Cargo.toml
+++ b/crates/assistant_tools/Cargo.toml
@@ -16,13 +16,18 @@ anyhow.workspace = true
 assistant_tool.workspace = true
 chrono.workspace = true
 collections.workspace = true
+component.workspace = true
+feature_flags.workspace = true
 futures.workspace = true
 gpui.workspace = true
 html_to_markdown.workspace = true
 http_client.workspace = true
+indoc.workspace = true
 itertools.workspace = true
 language.workspace = true
 language_model.workspace = true
+linkme.workspace = true
+open.workspace = true
 project.workspace = true
 regex.workspace = true
 schemars.workspace = true
@@ -30,9 +35,10 @@ serde.workspace = true
 serde_json.workspace = true
 ui.workspace = true
 util.workspace = true
-worktree.workspace = true
-open = { workspace = true }
+web_search.workspace = true
 workspace-hack.workspace = true
+worktree.workspace = true
+zed_llm_client.workspace = true

 [dev-dependencies]
 collections = { workspace = true, features = ["test-support"] }
@@ -40,5 +46,8 @@ gpui = { workspace = true, features = ["test-support"] }
 language = { workspace = true, features = ["test-support"] }
 project = { workspace = true, features = ["test-support"] }
 rand.workspace = true
+pretty_assertions.workspace = true
+settings = { workspace = true, features = ["test-support"] }
+tree-sitter-rust.workspace = true
 workspace = { workspace = true, features = ["test-support"] }
 unindent.workspace = true
--- a/crates/assistant_tools/src/assistant_tools.rs
+++ b/crates/assistant_tools/src/assistant_tools.rs
@@ -7,29 +7,33 @@ mod create_directory_tool;
 mod create_file_tool;
 mod delete_path_tool;
 mod diagnostics_tool;
+mod edit_file_tool;
 mod fetch_tool;
-mod find_replace_file_tool;
+mod grep_tool;
 mod list_directory_tool;
 mod move_path_tool;
 mod now_tool;
 mod open_tool;
 mod path_search_tool;
 mod read_file_tool;
-mod regex_search_tool;
 mod rename_tool;
 mod replace;
 mod schema;
 mod symbol_info_tool;
 mod terminal_tool;
 mod thinking_tool;
+mod ui;
+mod web_search_tool;

 use std::sync::Arc;

 use assistant_tool::ToolRegistry;
 use copy_path_tool::CopyPathTool;
+use feature_flags::FeatureFlagAppExt;
 use gpui::App;
 use http_client::HttpClientWithUrl;
 use move_path_tool::MovePathTool;
+use web_search_tool::WebSearchTool;

 use crate::batch_tool::BatchTool;
 use crate::code_action_tool::CodeActionTool;
@@ -39,14 +43,14 @@ 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_file_tool::EditFileTool;
 use crate::fetch_tool::FetchTool;
-use crate::find_replace_file_tool::FindReplaceFileTool;
+use crate::grep_tool::GrepTool;
 use crate::list_directory_tool::ListDirectoryTool;
 use crate::now_tool::NowTool;
 use crate::open_tool::OpenTool;
 use crate::path_search_tool::PathSearchTool;
 use crate::read_file_tool::ReadFileTool;
-use crate::regex_search_tool::RegexSearchTool;
 use crate::rename_tool::RenameTool;
 use crate::symbol_info_tool::SymbolInfoTool;
 use crate::terminal_tool::TerminalTool;
@@ -62,7 +66,7 @@ pub fn init(http_client: Arc<HttpClientWithUrl>, cx: &mut App) {
    registry.register_tool(CreateFileTool);
    registry.register_tool(CopyPathTool);
    registry.register_tool(DeletePathTool);
-    registry.register_tool(FindReplaceFileTool);
+    registry.register_tool(EditFileTool);
    registry.register_tool(SymbolInfoTool);
    registry.register_tool(CodeActionTool);
    registry.register_tool(MovePathTool);
@@ -74,10 +78,21 @@ pub fn init(http_client: Arc<HttpClientWithUrl>, cx: &mut App) {
    registry.register_tool(ContentsTool);
    registry.register_tool(PathSearchTool);
    registry.register_tool(ReadFileTool);
-    registry.register_tool(RegexSearchTool);
+    registry.register_tool(GrepTool);
    registry.register_tool(RenameTool);
    registry.register_tool(ThinkingTool);
    registry.register_tool(FetchTool::new(http_client));
+
+    cx.observe_flag::<feature_flags::ZedProWebSearchTool, _>({
+        move |is_enabled, cx| {
+            if is_enabled {
+                ToolRegistry::global(cx).register_tool(WebSearchTool);
+            } else {
+                ToolRegistry::global(cx).unregister_tool(WebSearchTool);
+            }
+        }
+    })
+    .detach();
 }

 #[cfg(test)]
--- a/crates/assistant_tools/src/batch_tool.rs
+++ b/crates/assistant_tools/src/batch_tool.rs
@@ -43,7 +43,7 @@ pub struct BatchToolInput {
    ///       }
    ///     },
    ///     {
-    ///       "name": "regex_search",
+    ///       "name": "grep",
    ///       "input": {
    ///         "regex": "fn run\\("
    ///       }
@@ -91,7 +91,7 @@ pub struct BatchToolInput {
    /// {
    ///   "invocations": [
    ///     {
-    ///       "name": "regex_search",
+    ///       "name": "grep",
    ///       "input": {
    ///         "regex": "impl Database"
    ///       }
--- a/crates/assistant_tools/src/code_symbols_tool.rs
+++ b/crates/assistant_tools/src/code_symbols_tool.rs
@@ -147,7 +147,7 @@ impl Tool for CodeSymbolsTool {
        };

        cx.spawn(async move |cx| match input.path {
-            Some(path) => file_outline(project, path, action_log, regex, input.offset, cx).await,
+            Some(path) => file_outline(project, path, action_log, regex, cx).await,
            None => project_symbols(project, regex, input.offset, cx).await,
        })
        .into()
@@ -159,7 +159,6 @@ pub async fn file_outline(
    path: String,
    action_log: Entity<ActionLog>,
    regex: Option<Regex>,
-    offset: u32,
    cx: &mut AsyncApp,
 ) -> anyhow::Result<String> {
    let buffer = {
@@ -195,7 +194,8 @@ pub async fn file_outline(
            .into_iter()
            .map(|item| item.to_point(&snapshot)),
        regex,
-        offset,
+        0,
+        usize::MAX,
    )
    .await
 }
@@ -294,11 +294,10 @@ async fn project_symbols(
 async fn render_outline(
    items: impl IntoIterator<Item = OutlineItem<Point>>,
    regex: Option<Regex>,
-    offset: u32,
+    offset: usize,
+    results_per_page: usize,
 ) -> Result<String> {
-    const RESULTS_PER_PAGE_USIZE: usize = RESULTS_PER_PAGE as usize;
-
-    let mut items = items.into_iter().skip(offset as usize);
+    let mut items = items.into_iter().skip(offset);

    let entries = items
        .by_ref()
@@ -307,7 +306,7 @@ async fn render_outline(
                .as_ref()
                .is_none_or(|regex| regex.is_match(&item.text))
        })
-        .take(RESULTS_PER_PAGE_USIZE)
+        .take(results_per_page)
        .collect::<Vec<_>>();
    let has_more = items.next().is_some();

@@ -338,7 +337,10 @@ async fn render_outline(
    Ok(output)
 }

-fn render_entries(output: &mut String, items: impl IntoIterator<Item = OutlineItem<Point>>) -> u32 {
+fn render_entries(
+    output: &mut String,
+    items: impl IntoIterator<Item = OutlineItem<Point>>,
+) -> usize {
    let mut entries_rendered = 0;

    for item in items {
--- a/crates/assistant_tools/src/contents_tool.rs
+++ b/crates/assistant_tools/src/contents_tool.rs
@@ -228,7 +228,7 @@ impl Tool for ContentsTool {
                    } else {
                        // File is too big, so return its outline and a suggestion to
                        // read again with a line number range specified.
-                        let outline = file_outline(project, file_path, action_log, None, 0, cx).await?;
+                        let outline = file_outline(project, file_path, action_log, None, cx).await?;

                        Ok(format!("This file was too big to read all at once. Here is an outline of its symbols:\n\n{outline}\n\nUsing the line numbers in this outline, you can call this tool again while specifying the start and end fields to see the implementations of symbols in the outline."))
                    }
--- a/crates/assistant_tools/src/create_file_tool.rs
+++ b/crates/assistant_tools/src/create_file_tool.rs
@@ -33,8 +33,18 @@ pub struct CreateFileToolInput {
    pub contents: String,
 }

+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+struct PartialInput {
+    #[serde(default)]
+    path: String,
+    #[serde(default)]
+    contents: String,
+}
+
 pub struct CreateFileTool;

+const DEFAULT_UI_TEXT: &str = "Create file";
+
 impl Tool for CreateFileTool {
    fn name(&self) -> String {
        "create_file".into()
@@ -62,7 +72,14 @@ impl Tool for CreateFileTool {
                let path = MarkdownString::inline_code(&input.path);
                format!("Create file {path}")
            }
-            Err(_) => "Create file".to_string(),
+            Err(_) => DEFAULT_UI_TEXT.to_string(),
+        }
+    }
+
+    fn still_streaming_ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<PartialInput>(input.clone()).ok() {
+            Some(input) if !input.path.is_empty() => input.path,
+            _ => DEFAULT_UI_TEXT.to_string(),
        }
    }

@@ -111,3 +128,60 @@ impl Tool for CreateFileTool {
        .into()
    }
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use serde_json::json;
+
+    #[test]
+    fn still_streaming_ui_text_with_path() {
+        let tool = CreateFileTool;
+        let input = json!({
+            "path": "src/main.rs",
+            "contents": "fn main() {\n    println!(\"Hello, world!\");\n}"
+        });
+
+        assert_eq!(tool.still_streaming_ui_text(&input), "src/main.rs");
+    }
+
+    #[test]
+    fn still_streaming_ui_text_without_path() {
+        let tool = CreateFileTool;
+        let input = json!({
+            "path": "",
+            "contents": "fn main() {\n    println!(\"Hello, world!\");\n}"
+        });
+
+        assert_eq!(tool.still_streaming_ui_text(&input), DEFAULT_UI_TEXT);
+    }
+
+    #[test]
+    fn still_streaming_ui_text_with_null() {
+        let tool = CreateFileTool;
+        let input = serde_json::Value::Null;
+
+        assert_eq!(tool.still_streaming_ui_text(&input), DEFAULT_UI_TEXT);
+    }
+
+    #[test]
+    fn ui_text_with_valid_input() {
+        let tool = CreateFileTool;
+        let input = json!({
+            "path": "src/main.rs",
+            "contents": "fn main() {\n    println!(\"Hello, world!\");\n}"
+        });
+
+        assert_eq!(tool.ui_text(&input), "Create file `src/main.rs`");
+    }
+
+    #[test]
+    fn ui_text_with_invalid_input() {
+        let tool = CreateFileTool;
+        let input = json!({
+            "invalid": "field"
+        });
+
+        assert_eq!(tool.ui_text(&input), DEFAULT_UI_TEXT);
+    }
+}
--- a/crates/assistant_tools/src/diagnostics_tool/description.md
+++ b/crates/assistant_tools/src/diagnostics_tool/description.md
@@ -15,6 +15,7 @@ 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!
-
-You may only attempt to fix these up to 3 times. If you have tried 3 times to fix them, and there are still problems remaining, you must not continue trying to fix them, and must instead tell the user that there are problems remaining - and ask if the user would like you to attempt to solve them further.
+<guidelines>
+- If you think you can fix a diagnostic, make 1-2 attempts and then give up.
+- Don't remove code you've generated just because you can't fix an error. The user can help you fix it.
+</guidelines>
--- a/crates/assistant_tools/src/edit_file_tool.rs
+++ b/crates/assistant_tools/src/edit_file_tool.rs
@@ -0,0 +1,279 @@
+use crate::{replace::replace_with_flexible_indent, schema::json_schema_for};
+use anyhow::{Context as _, Result, anyhow};
+use assistant_tool::{ActionLog, Tool, ToolResult};
+use gpui::{App, AppContext, AsyncApp, Entity, Task};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use project::Project;
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
+use std::{path::PathBuf, sync::Arc};
+use ui::IconName;
+
+use crate::replace::replace_exact;
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+pub struct EditFileToolInput {
+    /// The full path of the file to modify in the project.
+    ///
+    /// 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 text to replace.
+    pub old_string: String,
+
+    /// The text to replace it with.
+    pub new_string: String,
+}
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+struct PartialInput {
+    #[serde(default)]
+    path: String,
+    #[serde(default)]
+    display_description: String,
+    #[serde(default)]
+    old_string: String,
+    #[serde(default)]
+    new_string: String,
+}
+
+pub struct EditFileTool;
+
+const DEFAULT_UI_TEXT: &str = "Editing file";
+
+impl Tool for EditFileTool {
+    fn name(&self) -> String {
+        "edit_file".into()
+    }
+
+    fn needs_confirmation(&self, _: &serde_json::Value, _: &App) -> bool {
+        false
+    }
+
+    fn description(&self) -> String {
+        include_str!("edit_file_tool/description.md").to_string()
+    }
+
+    fn icon(&self) -> IconName {
+        IconName::Pencil
+    }
+
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
+        json_schema_for::<EditFileToolInput>(format)
+    }
+
+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<EditFileToolInput>(input.clone()) {
+            Ok(input) => input.display_description,
+            Err(_) => "Editing file".to_string(),
+        }
+    }
+
+    fn still_streaming_ui_text(&self, input: &serde_json::Value) -> String {
+        if let Some(input) = serde_json::from_value::<PartialInput>(input.clone()).ok() {
+            let description = input.display_description.trim();
+            if !description.is_empty() {
+                return description.to_string();
+            }
+
+            let path = input.path.trim();
+            if !path.is_empty() {
+                return path.to_string();
+            }
+        }
+
+        DEFAULT_UI_TEXT.to_string()
+    }
+
+    fn run(
+        self: Arc<Self>,
+        input: serde_json::Value,
+        _messages: &[LanguageModelRequestMessage],
+        project: Entity<Project>,
+        action_log: Entity<ActionLog>,
+        cx: &mut App,
+    ) -> ToolResult {
+        let input = match serde_json::from_value::<EditFileToolInput>(input) {
+            Ok(input) => input,
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
+        };
+
+        cx.spawn(async move |cx: &mut AsyncApp| {
+            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.old_string.is_empty() {
+                return Err(anyhow!("`old_string` cannot be empty. Use a different tool if you want to create a file."));
+            }
+
+            if input.old_string == input.new_string {
+                return Err(anyhow!("The `old_string` and `new_string` are identical, so no changes would be made."));
+            }
+
+            let result = cx
+                .background_spawn(async move {
+                    // Try to match exactly
+                    let diff = replace_exact(&input.old_string, &input.new_string, &snapshot)
+                    .await
+                    // If that fails, try being flexible about indentation
+                    .or_else(|| replace_with_flexible_indent(&input.old_string, &input.new_string, &snapshot))?;
+
+                    if diff.edits.is_empty() {
+                        return None;
+                    }
+
+                    let old_text = snapshot.text();
+
+                    Some((old_text, diff))
+                })
+                .await;
+
+            let Some((old_text, diff)) = result 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 `old_string` wasn't found.",
+                            input.path.display()
+                        )
+                    } else {
+                        anyhow!("Failed to match the provided `old_string`")
+                    }
+                })?;
+
+                return Err(err)
+            };
+
+            let snapshot = cx.update(|cx| {
+                action_log.update(cx, |log, cx| {
+                    log.buffer_read(buffer.clone(), cx)
+                });
+                let snapshot = buffer.update(cx, |buffer, cx| {
+                    buffer.finalize_last_transaction();
+                    buffer.apply_diff(diff, cx);
+                    buffer.finalize_last_transaction();
+                    buffer.snapshot()
+                });
+                action_log.update(cx, |log, cx| {
+                    log.buffer_edited(buffer.clone(), cx)
+                });
+                snapshot
+            })?;
+
+            project.update( cx, |project, cx| {
+                project.save_buffer(buffer, cx)
+            })?.await?;
+
+            let diff_str = cx.background_spawn(async move {
+                let new_text = snapshot.text();
+                language::unified_diff(&old_text, &new_text)
+            }).await;
+
+
+            Ok(format!("Edited {}:\n\n```diff\n{}\n```", input.path.display(), diff_str))
+
+        }).into()
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use serde_json::json;
+
+    #[test]
+    fn still_streaming_ui_text_with_path() {
+        let tool = EditFileTool;
+        let input = json!({
+            "path": "src/main.rs",
+            "display_description": "",
+            "old_string": "old code",
+            "new_string": "new code"
+        });
+
+        assert_eq!(tool.still_streaming_ui_text(&input), "src/main.rs");
+    }
+
+    #[test]
+    fn still_streaming_ui_text_with_description() {
+        let tool = EditFileTool;
+        let input = json!({
+            "path": "",
+            "display_description": "Fix error handling",
+            "old_string": "old code",
+            "new_string": "new code"
+        });
+
+        assert_eq!(tool.still_streaming_ui_text(&input), "Fix error handling");
+    }
+
+    #[test]
+    fn still_streaming_ui_text_with_path_and_description() {
+        let tool = EditFileTool;
+        let input = json!({
+            "path": "src/main.rs",
+            "display_description": "Fix error handling",
+            "old_string": "old code",
+            "new_string": "new code"
+        });
+
+        assert_eq!(tool.still_streaming_ui_text(&input), "Fix error handling");
+    }
+
+    #[test]
+    fn still_streaming_ui_text_no_path_or_description() {
+        let tool = EditFileTool;
+        let input = json!({
+            "path": "",
+            "display_description": "",
+            "old_string": "old code",
+            "new_string": "new code"
+        });
+
+        assert_eq!(tool.still_streaming_ui_text(&input), DEFAULT_UI_TEXT);
+    }
+
+    #[test]
+    fn still_streaming_ui_text_with_null() {
+        let tool = EditFileTool;
+        let input = serde_json::Value::Null;
+
+        assert_eq!(tool.still_streaming_ui_text(&input), DEFAULT_UI_TEXT);
+    }
+}
--- a/crates/assistant_tools/src/edit_file_tool/description.md
+++ b/crates/assistant_tools/src/edit_file_tool/description.md
@@ -0,0 +1,45 @@
+This is a tool for editing files. For moving or renaming files, you should generally use the `terminal` tool with the 'mv' command instead. For larger edits, use the `create_file` tool to overwrite files.
+
+Before using this tool:
+
+1. Use the `read_file` tool to understand the file's contents and context
+
+2. Verify the directory path is correct (only applicable when creating new files):
+   - Use the `list_directory` tool to verify the parent directory exists and is the correct location
+
+To make a file edit, provide the following:
+1. path: The full path to the file you wish to modify in the project. This path must include the root directory in the project.
+2. old_string: The text to replace (must be unique within the file, and must match the file contents exactly, including all whitespace and indentation)
+3. new_string: The edited text, which will replace the old_string in the file.
+
+The tool will replace ONE occurrence of old_string with new_string in the specified file.
+
+CRITICAL REQUIREMENTS FOR USING THIS TOOL:
+
+1. UNIQUENESS: The old_string MUST uniquely identify the specific instance you want to change. This means:
+   - Include AT LEAST 3-5 lines of context BEFORE the change point
+   - Include AT LEAST 3-5 lines of context AFTER the change point
+   - Include all whitespace, indentation, and surrounding code exactly as it appears in the file
+
+2. SINGLE INSTANCE: This tool can only change ONE instance at a time. If you need to change multiple instances:
+   - Make separate calls to this tool for each instance
+   - Each call must uniquely identify its specific instance using extensive context
+
+3. VERIFICATION: Before using this tool:
+   - Check how many instances of the target text exist in the file
+   - If multiple instances exist, gather enough context to uniquely identify each one
+   - Plan separate tool calls for each instance
+
+WARNING: If you do not follow these requirements:
+   - The tool will fail if old_string matches multiple locations
+   - The tool will fail if old_string doesn't match exactly (including whitespace)
+   - You may change the wrong instance if you don't include enough context
+
+When making edits:
+   - Ensure the edit results in idiomatic, correct code
+   - Do not leave the code in a broken state
+   - Always use fully-qualified project paths (starting with the name of one of the project's root directories)
+
+If you want to create a new file, use the `create_file` tool instead of this tool. Don't pass an empty `old_string`.
+
+Remember: when making multiple file edits in a row to the same file, you should prefer to send all edits in a single message with multiple calls to this tool, rather than multiple messages with a single call each.
--- a/crates/assistant_tools/src/find_replace_file_tool.rs
+++ b/crates/assistant_tools/src/find_replace_file_tool.rs
@@ -1,268 +0,0 @@
-use crate::{replace::replace_with_flexible_indent, schema::json_schema_for};
-use anyhow::{Context as _, Result, anyhow};
-use assistant_tool::{ActionLog, Tool, ToolResult};
-use gpui::{App, AppContext, AsyncApp, Entity, Task};
-use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
-use project::Project;
-use schemars::JsonSchema;
-use serde::{Deserialize, Serialize};
-use std::{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.
-    ///
-    /// If you get an error that the `find` string was not found, this means that either
-    /// you made a mistake, or that the file has changed since you last looked at it.
-    /// Either way, when this happens, you should retry doing this tool call until it
-    /// succeeds, up to 3 times. Each time you retry, you should take another look at
-    /// the exact text of the file in question, to make sure that you are searching for
-    /// exactly the right string. Regardless of whether it was because you made a mistake
-    /// or because the file changed since you last looked at it, you should be extra
-    /// careful when retrying in this way. It's a bad experience for the user if
-    /// this `find` string isn't found, so be super careful to get it exactly right!
-    ///
-    /// <example>
-    /// If a file contains this code:
-    ///
-    /// ```ignore
-    /// 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:
-    ///
-    /// ```ignore
-    /// 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:
-    ///
-    /// ```ignore
-    /// 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, _: &serde_json::Value, _: &App) -> bool {
-        false
-    }
-
-    fn description(&self) -> String {
-        include_str!("find_replace_tool/description.md").to_string()
-    }
-
-    fn icon(&self) -> IconName {
-        IconName::Pencil
-    }
-
-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
-        json_schema_for::<FindReplaceFileToolInput>(format)
-    }
-
-    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,
-    ) -> ToolResult {
-        let input = match serde_json::from_value::<FindReplaceFileToolInput>(input) {
-            Ok(input) => input,
-            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
-        };
-
-        cx.spawn(async move |cx: &mut AsyncApp| {
-            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."));
-            }
-
-            if input.find == input.replace {
-                return Err(anyhow!("The `find` and `replace` strings are identical, so no changes would be made."));
-            }
-
-            let result = cx
-                .background_spawn(async move {
-                    // Try to match exactly
-                    let diff = replace_exact(&input.find, &input.replace, &snapshot)
-                    .await
-                    // If that fails, try being flexible about indentation
-                    .or_else(|| replace_with_flexible_indent(&input.find, &input.replace, &snapshot))?;
-
-                    if diff.edits.is_empty() {
-                        return None;
-                    }
-
-                    let old_text = snapshot.text();
-
-                    Some((old_text, diff))
-                })
-                .await;
-
-            let Some((old_text, diff)) = result 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")
-                    }
-                })?;
-
-                return Err(err)
-            };
-
-            let snapshot = cx.update(|cx| {
-                action_log.update(cx, |log, cx| {
-                    log.buffer_read(buffer.clone(), cx)
-                });
-                let snapshot = buffer.update(cx, |buffer, cx| {
-                    buffer.finalize_last_transaction();
-                    buffer.apply_diff(diff, cx);
-                    buffer.finalize_last_transaction();
-                    buffer.snapshot()
-                });
-                action_log.update(cx, |log, cx| {
-                    log.buffer_edited(buffer.clone(), cx)
-                });
-                snapshot
-            })?;
-
-            project.update( cx, |project, cx| {
-                project.save_buffer(buffer, cx)
-            })?.await?;
-
-            let diff_str = cx.background_spawn(async move {
-                let new_text = snapshot.text();
-                language::unified_diff(&old_text, &new_text)
-            }).await;
-
-
-            Ok(format!("Edited {}:\n\n```diff\n{}\n```", input.path.display(), diff_str))
-
-        }).into()
-    }
-}
--- a/crates/assistant_tools/src/grep_tool.rs
+++ b/crates/assistant_tools/src/grep_tool.rs
@@ -0,0 +1,424 @@
+use crate::schema::json_schema_for;
+use anyhow::{Result, anyhow};
+use assistant_tool::{ActionLog, Tool, ToolResult};
+use futures::StreamExt;
+use gpui::{App, Entity, Task};
+use language::OffsetRangeExt;
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use project::{
+    Project,
+    search::{SearchQuery, SearchResult},
+};
+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)]
+pub struct GrepToolInput {
+    /// A regex pattern to search for in the entire project. Note that the regex
+    /// will be parsed by the Rust `regex` crate.
+    pub regex: String,
+
+    /// A glob pattern for the paths of files to include in the search.
+    /// Supports standard glob patterns like "**/*.rs" or "src/**/*.ts".
+    /// If omitted, all files in the project will be searched.
+    pub include_pattern: Option<String>,
+
+    /// Optional starting position for paginated results (0-based).
+    /// When not provided, starts from the beginning.
+    #[serde(default)]
+    pub offset: u32,
+
+    /// Whether the regex is case-sensitive. Defaults to false (case-insensitive).
+    #[serde(default)]
+    pub case_sensitive: bool,
+}
+
+impl GrepToolInput {
+    /// Which page of search results this is.
+    pub fn page(&self) -> u32 {
+        1 + (self.offset / RESULTS_PER_PAGE)
+    }
+}
+
+const RESULTS_PER_PAGE: u32 = 20;
+
+pub struct GrepTool;
+
+impl Tool for GrepTool {
+    fn name(&self) -> String {
+        "grep".into()
+    }
+
+    fn needs_confirmation(&self, _: &serde_json::Value, _: &App) -> bool {
+        false
+    }
+
+    fn description(&self) -> String {
+        include_str!("./grep_tool/description.md").into()
+    }
+
+    fn icon(&self) -> IconName {
+        IconName::Regex
+    }
+
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
+        json_schema_for::<GrepToolInput>(format)
+    }
+
+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<GrepToolInput>(input.clone()) {
+            Ok(input) => {
+                let page = input.page();
+                let regex_str = MarkdownString::inline_code(&input.regex);
+                let case_info = if input.case_sensitive {
+                    " (case-sensitive)"
+                } else {
+                    ""
+                };
+
+                if page > 1 {
+                    format!("Get page {page} of search results for regex {regex_str}{case_info}")
+                } else {
+                    format!("Search files for regex {regex_str}{case_info}")
+                }
+            }
+            Err(_) => "Search with regex".to_string(),
+        }
+    }
+
+    fn run(
+        self: Arc<Self>,
+        input: serde_json::Value,
+        _messages: &[LanguageModelRequestMessage],
+        project: Entity<Project>,
+        _action_log: Entity<ActionLog>,
+        cx: &mut App,
+    ) -> ToolResult {
+        const CONTEXT_LINES: u32 = 2;
+
+        let input = match serde_json::from_value::<GrepToolInput>(input) {
+            Ok(input) => input,
+            Err(error) => {
+                return Task::ready(Err(anyhow!("Failed to parse input: {}", error))).into();
+            }
+        };
+
+        let include_matcher = match PathMatcher::new(
+            input
+                .include_pattern
+                .as_ref()
+                .into_iter()
+                .collect::<Vec<_>>(),
+        ) {
+            Ok(matcher) => matcher,
+            Err(error) => {
+                return Task::ready(Err(anyhow!("invalid include glob pattern: {}", error))).into();
+            }
+        };
+
+        let query = match SearchQuery::regex(
+            &input.regex,
+            false,
+            input.case_sensitive,
+            false,
+            false,
+            include_matcher,
+            PathMatcher::default(), // For now, keep it simple and don't enable an exclude pattern.
+            true, // Always match file include pattern against *full project paths* that start with a project root.
+            None,
+        ) {
+            Ok(query) => query,
+            Err(error) => return Task::ready(Err(error)).into(),
+        };
+
+        let results = project.update(cx, |project, cx| project.search(query, cx));
+
+        cx.spawn(async move|cx|  {
+            futures::pin_mut!(results);
+
+            let mut output = String::new();
+            let mut skips_remaining = input.offset;
+            let mut matches_found = 0;
+            let mut has_more_matches = false;
+
+            while let Some(SearchResult::Buffer { buffer, ranges }) = results.next().await {
+                if ranges.is_empty() {
+                    continue;
+                }
+
+                buffer.read_with(cx, |buffer, cx| -> Result<(), anyhow::Error> {
+                    if let Some(path) = buffer.file().map(|file| file.full_path(cx)) {
+                        let mut file_header_written = false;
+                        let mut ranges = ranges
+                            .into_iter()
+                            .map(|range| {
+                                let mut point_range = range.to_point(buffer);
+                                point_range.start.row =
+                                    point_range.start.row.saturating_sub(CONTEXT_LINES);
+                                point_range.start.column = 0;
+                                point_range.end.row = cmp::min(
+                                    buffer.max_point().row,
+                                    point_range.end.row + CONTEXT_LINES,
+                                );
+                                point_range.end.column = buffer.line_len(point_range.end.row);
+                                point_range
+                            })
+                            .peekable();
+
+                        while let Some(mut range) = ranges.next() {
+                            if skips_remaining > 0 {
+                                skips_remaining -= 1;
+                                continue;
+                            }
+
+                            // We'd already found a full page of matches, and we just found one more.
+                            if matches_found >= RESULTS_PER_PAGE {
+                                has_more_matches = true;
+                                return Ok(());
+                            }
+
+                            while let Some(next_range) = ranges.peek() {
+                                if range.end.row >= next_range.start.row {
+                                    range.end = next_range.end;
+                                    ranges.next();
+                                } else {
+                                    break;
+                                }
+                            }
+
+                            if !file_header_written {
+                                writeln!(output, "\n## Matches in {}", path.display())?;
+                                file_header_written = true;
+                            }
+
+                            let start_line = range.start.row + 1;
+                            let end_line = range.end.row + 1;
+                            writeln!(output, "\n### Lines {start_line}-{end_line}\n```")?;
+                            output.extend(buffer.text_for_range(range));
+                            output.push_str("\n```\n");
+
+                            matches_found += 1;
+                        }
+                    }
+
+                    Ok(())
+                })??;
+            }
+
+            if matches_found == 0 {
+                Ok("No matches found".to_string())
+            } else if has_more_matches {
+                Ok(format!(
+                    "Showing matches {}-{} (there were more matches found; use offset: {} to see next page):\n{output}",
+                    input.offset + 1,
+                    input.offset + matches_found,
+                    input.offset + RESULTS_PER_PAGE,
+                ))
+            } else {
+                Ok(format!("Found {matches_found} matches:\n{output}"))
+            }
+        }).into()
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use assistant_tool::Tool;
+    use gpui::{AppContext, TestAppContext};
+    use project::{FakeFs, Project};
+    use settings::SettingsStore;
+    use util::path;
+
+    #[gpui::test]
+    async fn test_grep_tool_with_include_pattern(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.executor().clone());
+        fs.insert_tree(
+            "/root",
+            serde_json::json!({
+                "src": {
+                    "main.rs": "fn main() {\n    println!(\"Hello, world!\");\n}",
+                    "utils": {
+                        "helper.rs": "fn helper() {\n    println!(\"I'm a helper!\");\n}",
+                    },
+                },
+                "tests": {
+                    "test_main.rs": "fn test_main() {\n    assert!(true);\n}",
+                }
+            }),
+        )
+        .await;
+
+        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
+
+        // Test with include pattern for Rust files inside the root of the project
+        let input = serde_json::to_value(GrepToolInput {
+            regex: "println".to_string(),
+            include_pattern: Some("root/**/*.rs".to_string()),
+            offset: 0,
+            case_sensitive: false,
+        })
+        .unwrap();
+
+        let result = run_grep_tool(input, project.clone(), cx).await;
+        assert!(result.contains("main.rs"), "Should find matches in main.rs");
+        assert!(
+            result.contains("helper.rs"),
+            "Should find matches in helper.rs"
+        );
+        assert!(
+            !result.contains("test_main.rs"),
+            "Should not include test_main.rs even though it's a .rs file (because it doesn't have the pattern)"
+        );
+
+        // Test with include pattern for src directory only
+        let input = serde_json::to_value(GrepToolInput {
+            regex: "fn".to_string(),
+            include_pattern: Some("root/**/src/**".to_string()),
+            offset: 0,
+            case_sensitive: false,
+        })
+        .unwrap();
+
+        let result = run_grep_tool(input, project.clone(), cx).await;
+        assert!(
+            result.contains("main.rs"),
+            "Should find matches in src/main.rs"
+        );
+        assert!(
+            result.contains("helper.rs"),
+            "Should find matches in src/utils/helper.rs"
+        );
+        assert!(
+            !result.contains("test_main.rs"),
+            "Should not include test_main.rs as it's not in src directory"
+        );
+
+        // Test with empty include pattern (should default to all files)
+        let input = serde_json::to_value(GrepToolInput {
+            regex: "fn".to_string(),
+            include_pattern: None,
+            offset: 0,
+            case_sensitive: false,
+        })
+        .unwrap();
+
+        let result = run_grep_tool(input, project.clone(), cx).await;
+        assert!(result.contains("main.rs"), "Should find matches in main.rs");
+        assert!(
+            result.contains("helper.rs"),
+            "Should find matches in helper.rs"
+        );
+        assert!(
+            result.contains("test_main.rs"),
+            "Should include test_main.rs"
+        );
+    }
+
+    #[gpui::test]
+    async fn test_grep_tool_with_case_sensitivity(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.executor().clone());
+        fs.insert_tree(
+            "/root",
+            serde_json::json!({
+                "case_test.txt": "This file has UPPERCASE and lowercase text.\nUPPERCASE patterns should match only with case_sensitive: true",
+            }),
+        )
+        .await;
+
+        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
+
+        // Test case-insensitive search (default)
+        let input = serde_json::to_value(GrepToolInput {
+            regex: "uppercase".to_string(),
+            include_pattern: Some("**/*.txt".to_string()),
+            offset: 0,
+            case_sensitive: false,
+        })
+        .unwrap();
+
+        let result = run_grep_tool(input, project.clone(), cx).await;
+        assert!(
+            result.contains("UPPERCASE"),
+            "Case-insensitive search should match uppercase"
+        );
+
+        // Test case-sensitive search
+        let input = serde_json::to_value(GrepToolInput {
+            regex: "uppercase".to_string(),
+            include_pattern: Some("**/*.txt".to_string()),
+            offset: 0,
+            case_sensitive: true,
+        })
+        .unwrap();
+
+        let result = run_grep_tool(input, project.clone(), cx).await;
+        assert!(
+            !result.contains("UPPERCASE"),
+            "Case-sensitive search should not match uppercase"
+        );
+
+        // Test case-sensitive search
+        let input = serde_json::to_value(GrepToolInput {
+            regex: "LOWERCASE".to_string(),
+            include_pattern: Some("**/*.txt".to_string()),
+            offset: 0,
+            case_sensitive: true,
+        })
+        .unwrap();
+
+        let result = run_grep_tool(input, project.clone(), cx).await;
+
+        assert!(
+            !result.contains("lowercase"),
+            "Case-sensitive search should match lowercase"
+        );
+
+        // Test case-sensitive search for lowercase pattern
+        let input = serde_json::to_value(GrepToolInput {
+            regex: "lowercase".to_string(),
+            include_pattern: Some("**/*.txt".to_string()),
+            offset: 0,
+            case_sensitive: true,
+        })
+        .unwrap();
+
+        let result = run_grep_tool(input, project.clone(), cx).await;
+        assert!(
+            result.contains("lowercase"),
+            "Case-sensitive search should match lowercase text"
+        );
+    }
+
+    async fn run_grep_tool(
+        input: serde_json::Value,
+        project: Entity<Project>,
+        cx: &mut TestAppContext,
+    ) -> String {
+        let tool = Arc::new(GrepTool);
+        let action_log = cx.new(|_cx| ActionLog::new(project.clone()));
+        let task = cx.update(|cx| tool.run(input, &[], project, action_log, cx));
+
+        match task.output.await {
+            Ok(result) => result,
+            Err(e) => panic!("Failed to run grep tool: {}", e),
+        }
+    }
+
+    fn init_test(cx: &mut TestAppContext) {
+        cx.update(|cx| {
+            let settings_store = SettingsStore::test(cx);
+            cx.set_global(settings_store);
+            language::init(cx);
+            Project::init_settings(cx);
+        });
+    }
+}
--- a/crates/assistant_tools/src/grep_tool/description.md
+++ b/crates/assistant_tools/src/grep_tool/description.md
@@ -0,0 +1,8 @@
+Searches the contents of files in the project with a regular expression
+
+- Prefer this tool to path search when searching for symbols in the project, because you won't need to guess what path it's in.
+- Supports full regex syntax (eg. "log.*Error", "function\\s+\\w+", etc.)
+- Pass an `include_pattern` if you know how to narrow your search on the files system
+- Never use this tool to search for paths. Only search file contents with this tool.
+- Use this tool when you need to find files containing specific patterns
+- Results are paginated with 20 matches per page. Use the optional 'offset' parameter to request subsequent pages.
--- a/crates/assistant_tools/src/list_directory_tool.rs
+++ b/crates/assistant_tools/src/list_directory_tool.rs
@@ -12,7 +12,7 @@ use util::markdown::MarkdownString;

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct ListDirectoryToolInput {
-    /// The relative path of the directory to list.
+    /// The fully-qualified path of the directory to list in the project.
    ///
    /// This path should never be absolute, and the first component
    /// of the path should always be a root directory in a project.
--- a/crates/assistant_tools/src/list_directory_tool/description.md
+++ b/crates/assistant_tools/src/list_directory_tool/description.md
@@ -1 +1 @@
-Lists files and directories in a given path.
+Lists files and directories in a given path. Prefer the `grep` or `path_search` tools when searching the codebase.
--- a/crates/assistant_tools/src/path_search_tool.rs
+++ b/crates/assistant_tools/src/path_search_tool.rs
@@ -6,14 +6,14 @@ use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat}
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
-use std::{path::PathBuf, sync::Arc};
+use std::{cmp, fmt::Write as _, path::PathBuf, sync::Arc};
 use ui::IconName;
 use util::paths::PathMatcher;
 use worktree::Snapshot;

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct PathSearchToolInput {
-    /// The glob to search all project paths for.
+    /// The glob to match against every path in the project.
    ///
    /// <example>
    /// If the project has the following root directories:
@@ -76,66 +76,125 @@ impl Tool for PathSearchTool {
            Ok(input) => (input.offset, input.glob),
            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };
-
-        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}"))).into(),
-        };
-        let snapshots: Vec<Snapshot> = project
-            .read(cx)
-            .worktrees(cx)
-            .map(|worktree| worktree.read(cx).snapshot())
-            .collect();
-
+        let offset = offset as usize;
+        let task = search_paths(&glob, project, cx);
        cx.background_spawn(async move {
-            let mut matches = Vec::new();
-
-            for worktree in snapshots {
-                let root_name = worktree.root_name();
-
-                // Don't consider ignored entries.
-                for entry in worktree.entries(false, 0) {
-                    if path_matcher.is_match(&entry.path) {
-                        matches.push(
-                            PathBuf::from(root_name)
-                                .join(&entry.path)
-                                .to_string_lossy()
-                                .to_string(),
-                        );
-                    }
-                }
-            }
+            let matches = task.await?;
+            let paginated_matches = &matches[cmp::min(offset, matches.len())
+                ..cmp::min(offset + RESULTS_PER_PAGE, matches.len())];

            if matches.is_empty() {
-                Ok(format!("No paths in the project matched the glob {glob:?}"))
+                Ok("No matches found".to_string())
            } else {
-                // Sort to group entries in the same directory together.
-                matches.sort();
-
-                let total_matches = matches.len();
-                let response = if total_matches > RESULTS_PER_PAGE + offset as usize {
-                let paginated_matches: Vec<_> = matches
-                      .into_iter()
-                      .skip(offset as usize)
-                      .take(RESULTS_PER_PAGE)
-                      .collect();
-
-                    format!(
-                        "Found {} total matches. Showing results {}-{} (provide 'offset' parameter for more results):\n\n{}",
-                        total_matches,
+                let mut message = format!("Found {} total matches.", matches.len());
+                if matches.len() > RESULTS_PER_PAGE {
+                    write!(
+                        &mut message,
+                        "\nShowing results {}-{} (provide 'offset' parameter for more results):",
                        offset + 1,
-                        offset as usize + paginated_matches.len(),
-                        paginated_matches.join("\n")
+                        offset + paginated_matches.len()
                    )
-                } else {
-                    matches.join("\n")
-                };
-
-                Ok(response)
+                    .unwrap();
+                }
+                for mat in matches.into_iter().skip(offset).take(RESULTS_PER_PAGE) {
+                    write!(&mut message, "\n{}", mat.display()).unwrap();
+                }
+                Ok(message)
            }
-        }).into()
+        })
+        .into()
+    }
+}
+
+fn search_paths(glob: &str, project: Entity<Project>, cx: &mut App) -> Task<Result<Vec<PathBuf>>> {
+    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}"))),
+    };
+    let snapshots: Vec<Snapshot> = project
+        .read(cx)
+        .worktrees(cx)
+        .map(|worktree| worktree.read(cx).snapshot())
+        .collect();
+
+    cx.background_spawn(async move {
+        Ok(snapshots
+            .iter()
+            .flat_map(|snapshot| {
+                let root_name = PathBuf::from(snapshot.root_name());
+                snapshot
+                    .entries(false, 0)
+                    .map(move |entry| root_name.join(&entry.path))
+                    .filter(|path| path_matcher.is_match(&path))
+            })
+            .collect())
+    })
+}
+
+#[cfg(test)]
+mod test {
+    use super::*;
+    use gpui::TestAppContext;
+    use project::{FakeFs, Project};
+    use settings::SettingsStore;
+    use util::path;
+
+    #[gpui::test]
+    async fn test_path_search_tool(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.executor());
+        fs.insert_tree(
+            "/root",
+            serde_json::json!({
+                "apple": {
+                    "banana": {
+                        "carrot": "1",
+                    },
+                    "bandana": {
+                        "carbonara": "2",
+                    },
+                    "endive": "3"
+                }
+            }),
+        )
+        .await;
+        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
+
+        let matches = cx
+            .update(|cx| search_paths("root/**/car*", project.clone(), cx))
+            .await
+            .unwrap();
+        assert_eq!(
+            matches,
+            &[
+                PathBuf::from("root/apple/banana/carrot"),
+                PathBuf::from("root/apple/bandana/carbonara")
+            ]
+        );
+
+        let matches = cx
+            .update(|cx| search_paths("**/car*", project.clone(), cx))
+            .await
+            .unwrap();
+        assert_eq!(
+            matches,
+            &[
+                PathBuf::from("root/apple/banana/carrot"),
+                PathBuf::from("root/apple/bandana/carbonara")
+            ]
+        );
+    }
+
+    fn init_test(cx: &mut TestAppContext) {
+        cx.update(|cx| {
+            let settings_store = SettingsStore::test(cx);
+            cx.set_global(settings_store);
+            language::init(cx);
+            Project::init_settings(cx);
+        });
    }
 }
--- a/crates/assistant_tools/src/path_search_tool/description.md
+++ b/crates/assistant_tools/src/path_search_tool/description.md
@@ -1,3 +1,7 @@
-Returns paths in the project which match the given glob.
+Fast file pattern matching tool that works with any codebase size

-Results are paginated with 50 matches per page. Use the optional 'offset' parameter to request subsequent pages.
+- Supports glob patterns like "**/*.js" or "src/**/*.ts"
+- Returns matching file paths sorted alphabetically
+- Prefer the `grep` tool to this tool when searching for symbols unless you have specific information about paths.
+- Use this tool when you need to find files by name patterns
+- Results are paginated with 50 matches per page. Use the optional 'offset' parameter to request subsequent pages.
--- a/crates/assistant_tools/src/read_file_tool.rs
+++ b/crates/assistant_tools/src/read_file_tool.rs
@@ -1,14 +1,14 @@
-use std::sync::Arc;
-
 use crate::{code_symbols_tool::file_outline, schema::json_schema_for};
 use anyhow::{Result, anyhow};
 use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{App, Entity, Task};
+use indoc::formatdoc;
 use itertools::Itertools;
 use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
+use std::sync::Arc;
 use ui::IconName;
 use util::markdown::MarkdownString;

@@ -95,11 +95,24 @@ 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", &input.path,))).into();
+            return Task::ready(Err(anyhow!("Path {} not found in project", &input.path))).into();
        };
+        let Some(worktree) = project
+            .read(cx)
+            .worktree_for_id(project_path.worktree_id, cx)
+        else {
+            return Task::ready(Err(anyhow!("Worktree not found for project path"))).into();
+        };
+        let exists = worktree.update(cx, |worktree, cx| {
+            worktree.file_exists(&project_path.path, cx)
+        });

        let file_path = input.path.clone();
        cx.spawn(async move |cx| {
+            if !exists.await? {
+                return Err(anyhow!("{} not found", file_path))
+            }
+
            let buffer = cx
                .update(|cx| {
                    project.update(cx, |project, cx| project.open_buffer(project_path, cx))
@@ -141,11 +154,231 @@ impl Tool for ReadFileTool {
                } else {
                    // File is too big, so return an error with the outline
                    // and a suggestion to read again with line numbers.
-                    let outline = file_outline(project, file_path, action_log, None, 0, cx).await?;
+                    let outline = file_outline(project, file_path, action_log, None, cx).await?;
+                    Ok(formatdoc! {"
+                        This file was too big to read all at once. Here is an outline of its symbols:

-                    Ok(format!("This file was too big to read all at once. Here is an outline of its symbols:\n\n{outline}\n\nUsing the line numbers in this outline, you can call this tool again while specifying the start_line and end_line fields to see the implementations of symbols in the outline."))
+                        {outline}
+
+                        Using the line numbers in this outline, you can call this tool again while specifying
+                        the start_line and end_line fields to see the implementations of symbols in the outline."
+                    })
                }
            }
        }).into()
    }
 }
+
+#[cfg(test)]
+mod test {
+    use super::*;
+    use gpui::{AppContext, TestAppContext};
+    use language::{Language, LanguageConfig, LanguageMatcher};
+    use project::{FakeFs, Project};
+    use serde_json::json;
+    use settings::SettingsStore;
+    use util::path;
+
+    #[gpui::test]
+    async fn test_read_nonexistent_file(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.executor());
+        fs.insert_tree("/root", json!({})).await;
+        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
+        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+        let result = cx
+            .update(|cx| {
+                let input = json!({
+                    "path": "root/nonexistent_file.txt"
+                });
+                Arc::new(ReadFileTool)
+                    .run(input, &[], project.clone(), action_log, cx)
+                    .output
+            })
+            .await;
+        assert_eq!(
+            result.unwrap_err().to_string(),
+            "root/nonexistent_file.txt not found"
+        );
+    }
+
+    #[gpui::test]
+    async fn test_read_small_file(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.executor());
+        fs.insert_tree(
+            "/root",
+            json!({
+                "small_file.txt": "This is a small file content"
+            }),
+        )
+        .await;
+        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
+        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+        let result = cx
+            .update(|cx| {
+                let input = json!({
+                    "path": "root/small_file.txt"
+                });
+                Arc::new(ReadFileTool)
+                    .run(input, &[], project.clone(), action_log, cx)
+                    .output
+            })
+            .await;
+        assert_eq!(result.unwrap(), "This is a small file content");
+    }
+
+    #[gpui::test]
+    async fn test_read_large_file(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.executor());
+        fs.insert_tree(
+            "/root",
+            json!({
+                "large_file.rs": (0..1000).map(|i| format!("struct Test{} {{\n    a: u32,\n    b: usize,\n}}", i)).collect::<Vec<_>>().join("\n")
+            }),
+        )
+        .await;
+        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
+        let language_registry = project.read_with(cx, |project, _| project.languages().clone());
+        language_registry.add(Arc::new(rust_lang()));
+        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+
+        let result = cx
+            .update(|cx| {
+                let input = json!({
+                    "path": "root/large_file.rs"
+                });
+                Arc::new(ReadFileTool)
+                    .run(input, &[], project.clone(), action_log.clone(), cx)
+                    .output
+            })
+            .await;
+        let content = result.unwrap();
+        assert_eq!(
+            content.lines().skip(2).take(6).collect::<Vec<_>>(),
+            vec![
+                "struct Test0 [L1-4]",
+                " a [L2]",
+                " b [L3]",
+                "struct Test1 [L5-8]",
+                " a [L6]",
+                " b [L7]",
+            ]
+        );
+
+        let result = cx
+            .update(|cx| {
+                let input = json!({
+                    "path": "root/large_file.rs",
+                    "offset": 1
+                });
+                Arc::new(ReadFileTool)
+                    .run(input, &[], project.clone(), action_log, cx)
+                    .output
+            })
+            .await;
+        let content = result.unwrap();
+        let expected_content = (0..1000)
+            .flat_map(|i| {
+                vec![
+                    format!("struct Test{} [L{}-{}]", i, i * 4 + 1, i * 4 + 4),
+                    format!(" a [L{}]", i * 4 + 2),
+                    format!(" b [L{}]", i * 4 + 3),
+                ]
+            })
+            .collect::<Vec<_>>();
+        pretty_assertions::assert_eq!(
+            content
+                .lines()
+                .skip(2)
+                .take(expected_content.len())
+                .collect::<Vec<_>>(),
+            expected_content
+        );
+    }
+
+    #[gpui::test]
+    async fn test_read_file_with_line_range(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.executor());
+        fs.insert_tree(
+            "/root",
+            json!({
+                "multiline.txt": "Line 1\nLine 2\nLine 3\nLine 4\nLine 5"
+            }),
+        )
+        .await;
+        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
+        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+        let result = cx
+            .update(|cx| {
+                let input = json!({
+                    "path": "root/multiline.txt",
+                    "start_line": 2,
+                    "end_line": 4
+                });
+                Arc::new(ReadFileTool)
+                    .run(input, &[], project.clone(), action_log, cx)
+                    .output
+            })
+            .await;
+        assert_eq!(result.unwrap(), "Line 2\nLine 3");
+    }
+
+    fn init_test(cx: &mut TestAppContext) {
+        cx.update(|cx| {
+            let settings_store = SettingsStore::test(cx);
+            cx.set_global(settings_store);
+            language::init(cx);
+            Project::init_settings(cx);
+        });
+    }
+
+    fn rust_lang() -> Language {
+        Language::new(
+            LanguageConfig {
+                name: "Rust".into(),
+                matcher: LanguageMatcher {
+                    path_suffixes: vec!["rs".to_string()],
+                    ..Default::default()
+                },
+                ..Default::default()
+            },
+            Some(tree_sitter_rust::LANGUAGE.into()),
+        )
+        .with_outline_query(
+            r#"
+            (line_comment) @annotation
+
+            (struct_item
+                "struct" @context
+                name: (_) @name) @item
+            (enum_item
+                "enum" @context
+                name: (_) @name) @item
+            (enum_variant
+                name: (_) @name) @item
+            (field_declaration
+                name: (_) @name) @item
+            (impl_item
+                "impl" @context
+                trait: (_)? @name
+                "for"? @context
+                type: (_) @name
+                body: (_ "{" (_)* "}")) @item
+            (function_item
+                "fn" @context
+                name: (_) @name) @item
+            (mod_item
+                "mod" @context
+                name: (_) @name) @item
+            "#,
+        )
+        .unwrap()
+    }
+}
--- a/crates/assistant_tools/src/read_file_tool/description.md
+++ b/crates/assistant_tools/src/read_file_tool/description.md
@@ -1,6 +1,3 @@
 Reads the content of the given file in the project.

-If the file is too big to read all at once, and neither a start line
-nor an end line was specified, then this returns an outline of the
-file's symbols (with line numbers) instead of the file's contents,
-so that it can be called again with line ranges.
+- Never attempt to read a path that hasn't been previously mentioned.
--- a/crates/assistant_tools/src/regex_search_tool.rs
+++ b/crates/assistant_tools/src/regex_search_tool.rs
@@ -1,206 +0,0 @@
-use crate::schema::json_schema_for;
-use anyhow::{Result, anyhow};
-use assistant_tool::{ActionLog, Tool, ToolResult};
-use futures::StreamExt;
-use gpui::{App, Entity, Task};
-use language::OffsetRangeExt;
-use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
-use project::{
-    Project,
-    search::{SearchQuery, SearchResult},
-};
-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)]
-pub struct RegexSearchToolInput {
-    /// A regex pattern to search for in the entire project. Note that the regex
-    /// will be parsed by the Rust `regex` crate.
-    pub regex: String,
-
-    /// Optional starting position for paginated results (0-based).
-    /// When not provided, starts from the beginning.
-    #[serde(default)]
-    pub offset: u32,
-
-    /// Whether the regex is case-sensitive. Defaults to false (case-insensitive).
-    #[serde(default)]
-    pub case_sensitive: bool,
-}
-
-impl RegexSearchToolInput {
-    /// Which page of search results this is.
-    pub fn page(&self) -> u32 {
-        1 + (self.offset / RESULTS_PER_PAGE)
-    }
-}
-
-const RESULTS_PER_PAGE: u32 = 20;
-
-pub struct RegexSearchTool;
-
-impl Tool for RegexSearchTool {
-    fn name(&self) -> String {
-        "regex_search".into()
-    }
-
-    fn needs_confirmation(&self, _: &serde_json::Value, _: &App) -> bool {
-        false
-    }
-
-    fn description(&self) -> String {
-        include_str!("./regex_search_tool/description.md").into()
-    }
-
-    fn icon(&self) -> IconName {
-        IconName::Regex
-    }
-
-    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
-        json_schema_for::<RegexSearchToolInput>(format)
-    }
-
-    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_str = MarkdownString::inline_code(&input.regex);
-                let case_info = if input.case_sensitive {
-                    " (case-sensitive)"
-                } else {
-                    ""
-                };
-
-                if page > 1 {
-                    format!("Get page {page} of search results for regex {regex_str}{case_info}")
-                } else {
-                    format!("Search files for regex {regex_str}{case_info}")
-                }
-            }
-            Err(_) => "Search with regex".to_string(),
-        }
-    }
-
-    fn run(
-        self: Arc<Self>,
-        input: serde_json::Value,
-        _messages: &[LanguageModelRequestMessage],
-        project: Entity<Project>,
-        _action_log: Entity<ActionLog>,
-        cx: &mut App,
-    ) -> ToolResult {
-        const CONTEXT_LINES: u32 = 2;
-
-        let (offset, regex, case_sensitive) =
-            match serde_json::from_value::<RegexSearchToolInput>(input) {
-                Ok(input) => (input.offset, input.regex, input.case_sensitive),
-                Err(err) => return Task::ready(Err(anyhow!(err))).into(),
-            };
-
-        let query = match SearchQuery::regex(
-            &regex,
-            false,
-            case_sensitive,
-            false,
-            false,
-            PathMatcher::default(),
-            PathMatcher::default(),
-            None,
-        ) {
-            Ok(query) => query,
-            Err(error) => return Task::ready(Err(error)).into(),
-        };
-
-        let results = project.update(cx, |project, cx| project.search(query, cx));
-
-        cx.spawn(async move|cx|  {
-            futures::pin_mut!(results);
-
-            let mut output = String::new();
-            let mut skips_remaining = offset;
-            let mut matches_found = 0;
-            let mut has_more_matches = false;
-
-            while let Some(SearchResult::Buffer { buffer, ranges }) = results.next().await {
-                if ranges.is_empty() {
-                    continue;
-                }
-
-                buffer.read_with(cx, |buffer, cx| -> Result<(), anyhow::Error> {
-                    if let Some(path) = buffer.file().map(|file| file.full_path(cx)) {
-                        let mut file_header_written = false;
-                        let mut ranges = ranges
-                            .into_iter()
-                            .map(|range| {
-                                let mut point_range = range.to_point(buffer);
-                                point_range.start.row =
-                                    point_range.start.row.saturating_sub(CONTEXT_LINES);
-                                point_range.start.column = 0;
-                                point_range.end.row = cmp::min(
-                                    buffer.max_point().row,
-                                    point_range.end.row + CONTEXT_LINES,
-                                );
-                                point_range.end.column = buffer.line_len(point_range.end.row);
-                                point_range
-                            })
-                            .peekable();
-
-                        while let Some(mut range) = ranges.next() {
-                            if skips_remaining > 0 {
-                                skips_remaining -= 1;
-                                continue;
-                            }
-
-                            // We'd already found a full page of matches, and we just found one more.
-                            if matches_found >= RESULTS_PER_PAGE {
-                                has_more_matches = true;
-                                return Ok(());
-                            }
-
-                            while let Some(next_range) = ranges.peek() {
-                                if range.end.row >= next_range.start.row {
-                                    range.end = next_range.end;
-                                    ranges.next();
-                                } else {
-                                    break;
-                                }
-                            }
-
-                            if !file_header_written {
-                                writeln!(output, "\n## Matches in {}", path.display())?;
-                                file_header_written = true;
-                            }
-
-                            let start_line = range.start.row + 1;
-                            let end_line = range.end.row + 1;
-                            writeln!(output, "\n### Lines {start_line}-{end_line}\n```")?;
-                            output.extend(buffer.text_for_range(range));
-                            output.push_str("\n```\n");
-
-                            matches_found += 1;
-                        }
-                    }
-
-                    Ok(())
-                })??;
-            }
-
-            if matches_found == 0 {
-                Ok("No matches found".to_string())
-            } else if has_more_matches {
-                Ok(format!(
-                    "Showing matches {}-{} (there were more matches found; use offset: {} to see next page):\n{output}",
-                    offset + 1,
-                    offset + matches_found,
-                    offset + RESULTS_PER_PAGE,
-                ))
-            } else {
-                Ok(format!("Found {matches_found} matches:\n{output}"))
-            }
-        }).into()
-    }
-}
--- a/crates/assistant_tools/src/regex_search_tool/description.md
+++ b/crates/assistant_tools/src/regex_search_tool/description.md
@@ -1,7 +0,0 @@
-Searches the entire project for the given regular expression.
-
-Returns a list of paths that matched the query. For each path, it returns some excerpts of the matched text.
-
-Results are paginated with 20 matches per page. Use the optional 'offset' parameter to request subsequent pages.
-
-This tool is not aware of semantics and does not use any information from language servers, so it should only be used when no available semantic tool (e.g. one that uses language servers) could fit a particular use case instead.
--- a/crates/assistant_tools/src/replace.rs
+++ b/crates/assistant_tools/src/replace.rs
@@ -14,6 +14,7 @@ pub async fn replace_exact(old: &str, new: &str, snapshot: &BufferSnapshot) -> O
        true,
        PathMatcher::new(iter::empty::<&str>()).ok()?,
        PathMatcher::new(iter::empty::<&str>()).ok()?,
+        false,
        None,
    )
    .log_err()?;
@@ -58,10 +59,8 @@ pub fn replace_with_flexible_indent(old: &str, new: &str, buffer: &BufferSnapsho

    let max_row = buffer.max_point().row;

-    'windows: for start_row in 0..max_row.saturating_sub(old_lines.len() as u32 - 1) {
-        let mut common_leading = None;
-
-        let end_row = start_row + old_lines.len() as u32 - 1;
+    'windows: for start_row in 0..max_row + 1 {
+        let end_row = start_row + old_lines.len().saturating_sub(1) as u32;

        if end_row > max_row {
            // The buffer ends before fully matching the pattern
@@ -76,6 +75,14 @@ pub fn replace_with_flexible_indent(old: &str, new: &str, buffer: &BufferSnapsho
        let mut window_lines = window_text.lines();
        let mut old_lines_iter = old_lines.iter();

+        let mut common_mismatch = None;
+
+        #[derive(Eq, PartialEq)]
+        enum Mismatch {
+            OverIndented(String),
+            UnderIndented(String),
+        }
+
        while let (Some(window_line), Some(old_line)) = (window_lines.next(), old_lines_iter.next())
        {
            let line_trimmed = window_line.trim_start();
@@ -88,18 +95,24 @@ pub fn replace_with_flexible_indent(old: &str, new: &str, buffer: &BufferSnapsho
                continue;
            }

-            let line_leading = &window_line[..window_line.len() - old_line.len()];
+            let line_mismatch = if window_line.len() > old_line.len() {
+                let prefix = window_line[..window_line.len() - old_line.len()].to_string();
+                Mismatch::UnderIndented(prefix)
+            } else {
+                let prefix = old_line[..old_line.len() - window_line.len()].to_string();
+                Mismatch::OverIndented(prefix)
+            };

-            match &common_leading {
-                Some(common_leading) if common_leading != line_leading => {
+            match &common_mismatch {
+                Some(common_mismatch) if common_mismatch != &line_mismatch => {
                    continue 'windows;
                }
                Some(_) => (),
-                None => common_leading = Some(line_leading.to_string()),
+                None => common_mismatch = Some(line_mismatch),
            }
        }

-        if let Some(common_leading) = common_leading {
+        if let Some(common_mismatch) = &common_mismatch {
            let line_ending = buffer.line_ending();
            let replacement = new_lines
                .iter()
@@ -107,7 +120,13 @@ pub fn replace_with_flexible_indent(old: &str, new: &str, buffer: &BufferSnapsho
                    if new_line.trim().is_empty() {
                        new_line.to_string()
                    } else {
-                        common_leading.to_string() + new_line
+                        match common_mismatch {
+                            Mismatch::UnderIndented(prefix) => prefix.to_string() + new_line,
+                            Mismatch::OverIndented(prefix) => new_line
+                                .strip_prefix(prefix)
+                                .unwrap_or(new_line)
+                                .to_string(),
+                        }
                    }
                })
                .collect::<Vec<_>>()
@@ -149,14 +168,123 @@ fn lines_with_min_indent(input: &str) -> (Vec<&str>, usize) {
 }

 #[cfg(test)]
-mod tests {
+mod replace_exact_tests {
+    use super::*;
+    use gpui::TestAppContext;
+    use gpui::prelude::*;
+
+    #[gpui::test]
+    async fn basic(cx: &mut TestAppContext) {
+        let result = test_replace_exact(cx, "let x = 41;", "let x = 41;", "let x = 42;").await;
+        assert_eq!(result, Some("let x = 42;".to_string()));
+    }
+
+    #[gpui::test]
+    async fn no_match(cx: &mut TestAppContext) {
+        let result = test_replace_exact(cx, "let x = 41;", "let y = 42;", "let y = 43;").await;
+        assert_eq!(result, None);
+    }
+
+    #[gpui::test]
+    async fn multi_line(cx: &mut TestAppContext) {
+        let whole = "fn example() {\n    let x = 41;\n    println!(\"x = {}\", x);\n}";
+        let old_text = "    let x = 41;\n    println!(\"x = {}\", x);";
+        let new_text = "    let x = 42;\n    println!(\"x = {}\", x);";
+        let result = test_replace_exact(cx, whole, old_text, new_text).await;
+        assert_eq!(
+            result,
+            Some("fn example() {\n    let x = 42;\n    println!(\"x = {}\", x);\n}".to_string())
+        );
+    }
+
+    #[gpui::test]
+    async fn multiple_occurrences(cx: &mut TestAppContext) {
+        let whole = "let x = 41;\nlet y = 41;\nlet z = 41;";
+        let result = test_replace_exact(cx, whole, "let x = 41;", "let x = 42;").await;
+        assert_eq!(
+            result,
+            Some("let x = 42;\nlet y = 41;\nlet z = 41;".to_string())
+        );
+    }
+
+    #[gpui::test]
+    async fn empty_buffer(cx: &mut TestAppContext) {
+        let result = test_replace_exact(cx, "", "let x = 41;", "let x = 42;").await;
+        assert_eq!(result, None);
+    }
+
+    #[gpui::test]
+    async fn partial_match(cx: &mut TestAppContext) {
+        let whole = "let x = 41; let y = 42;";
+        let result = test_replace_exact(cx, whole, "let x = 41", "let x = 42").await;
+        assert_eq!(result, Some("let x = 42; let y = 42;".to_string()));
+    }
+
+    #[gpui::test]
+    async fn whitespace_sensitive(cx: &mut TestAppContext) {
+        let result = test_replace_exact(cx, "let x = 41;", " let x = 41;", "let x = 42;").await;
+        assert_eq!(result, None);
+    }
+
+    #[gpui::test]
+    async fn entire_buffer(cx: &mut TestAppContext) {
+        let result = test_replace_exact(cx, "let x = 41;", "let x = 41;", "let x = 42;").await;
+        assert_eq!(result, Some("let x = 42;".to_string()));
+    }
+
+    async fn test_replace_exact(
+        cx: &mut TestAppContext,
+        whole: &str,
+        old: &str,
+        new: &str,
+    ) -> Option<String> {
+        let buffer = cx.new(|cx| language::Buffer::local(whole, cx));
+
+        let buffer_snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot());
+
+        let diff = replace_exact(old, new, &buffer_snapshot).await;
+        diff.map(|diff| {
+            buffer.update(cx, |buffer, cx| {
+                let _ = buffer.apply_diff(diff, cx);
+                buffer.text()
+            })
+        })
+    }
+}
+
+#[cfg(test)]
+mod flexible_indent_tests {
    use super::*;
    use gpui::TestAppContext;
    use gpui::prelude::*;
    use unindent::Unindent;

    #[gpui::test]
-    fn test_replace_consistent_indentation(cx: &mut TestAppContext) {
+    fn test_underindented_single_line(cx: &mut TestAppContext) {
+        let cur = "        let a = 41;".to_string();
+        let old = "    let a = 41;".to_string();
+        let new = "    let a = 42;".to_string();
+        let exp = "        let a = 42;".to_string();
+
+        let result = test_replace_with_flexible_indent(cx, &cur, &old, &new);
+
+        assert_eq!(result, Some(exp.to_string()))
+    }
+
+    #[gpui::test]
+    fn test_overindented_single_line(cx: &mut TestAppContext) {
+        let cur = "    let a = 41;".to_string();
+        let old = "        let a = 41;".to_string();
+        let new = "        let a = 42;".to_string();
+        let exp = "    let a = 42;".to_string();
+
+        let result = test_replace_with_flexible_indent(cx, &cur, &old, &new);
+
+        assert_eq!(result, Some(exp.to_string()))
+    }
+
+    #[gpui::test]
+    fn test_underindented_multi_line(cx: &mut TestAppContext) {
        let whole = r#"
            fn test() {
                let x = 5;
@@ -193,6 +321,33 @@ mod tests {
        );
    }

+    #[gpui::test]
+    fn test_overindented_multi_line(cx: &mut TestAppContext) {
+        let cur = r#"
+            fn foo() {
+                let a = 41;
+                let b = 3.13;
+            }
+        "#
+        .unindent();
+
+        // 6 space indent instead of 4
+        let old = "      let a = 41;\n      let b = 3.13;";
+        let new = "      let a = 42;\n      let b = 3.14;";
+
+        let expected = r#"
+            fn foo() {
+                let a = 42;
+                let b = 3.14;
+            }
+        "#
+        .unindent();
+
+        let result = test_replace_with_flexible_indent(cx, &cur, &old, &new);
+
+        assert_eq!(result, Some(expected.to_string()))
+    }
+
    #[gpui::test]
    fn test_replace_inconsistent_indentation(cx: &mut TestAppContext) {
        let whole = r#"
@@ -265,7 +420,6 @@ mod tests {

    #[gpui::test]
    fn test_replace_no_match(cx: &mut TestAppContext) {
-        // Test with no match
        let whole = r#"
            fn test() {
                let x = 5;
@@ -316,6 +470,71 @@ mod tests {
        );
    }

+    #[gpui::test]
+    fn test_replace_whole_is_shorter_than_old(cx: &mut TestAppContext) {
+        let whole = r#"
+            let x = 5;
+        "#
+        .unindent();
+
+        let old = r#"
+            let x = 5;
+            let y = 10;
+        "#
+        .unindent();
+
+        let new = r#"
+            let x = 5;
+            let y = 20;
+        "#
+        .unindent();
+
+        assert_eq!(
+            test_replace_with_flexible_indent(cx, &whole, &old, &new),
+            None
+        );
+    }
+
+    #[gpui::test]
+    fn test_replace_old_is_empty(cx: &mut TestAppContext) {
+        let whole = r#"
+            fn test() {
+                let x = 5;
+            }
+        "#
+        .unindent();
+
+        let old = "";
+        let new = r#"
+            let y = 10;
+        "#
+        .unindent();
+
+        assert_eq!(
+            test_replace_with_flexible_indent(cx, &whole, &old, &new),
+            None
+        );
+    }
+
+    #[gpui::test]
+    fn test_replace_whole_is_empty(cx: &mut TestAppContext) {
+        let whole = "";
+        let old = r#"
+            let x = 5;
+        "#
+        .unindent();
+
+        let new = r#"
+            let x = 10;
+        "#
+        .unindent();
+
+        assert_eq!(
+            test_replace_with_flexible_indent(cx, &whole, &old, &new),
+            None
+        );
+    }
+
    #[test]
    fn test_lines_with_min_indent() {
        // Empty string
@@ -503,6 +722,133 @@ mod tests {
        );
    }

+    #[gpui::test]
+    async fn test_replace_exact_basic(cx: &mut TestAppContext) {
+        let buffer = cx.new(|cx| language::Buffer::local("let x = 41;", cx));
+        let snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot());
+
+        let diff = replace_exact("let x = 41;", "let x = 42;", &snapshot).await;
+        assert!(diff.is_some());
+
+        let diff = diff.unwrap();
+        assert_eq!(diff.edits.len(), 1);
+
+        let result = buffer.update(cx, |buffer, cx| {
+            let _ = buffer.apply_diff(diff, cx);
+            buffer.text()
+        });
+
+        assert_eq!(result, "let x = 42;");
+    }
+
+    #[gpui::test]
+    async fn test_replace_exact_no_match(cx: &mut TestAppContext) {
+        let buffer = cx.new(|cx| language::Buffer::local("let x = 41;", cx));
+        let snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot());
+
+        let diff = replace_exact("let y = 42;", "let y = 43;", &snapshot).await;
+        assert!(diff.is_none());
+    }
+
+    #[gpui::test]
+    async fn test_replace_exact_multi_line(cx: &mut TestAppContext) {
+        let buffer = cx.new(|cx| {
+            language::Buffer::local(
+                "fn example() {\n    let x = 41;\n    println!(\"x = {}\", x);\n}",
+                cx,
+            )
+        });
+        let snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot());
+
+        let old_text = "    let x = 41;\n    println!(\"x = {}\", x);";
+        let new_text = "    let x = 42;\n    println!(\"x = {}\", x);";
+        let diff = replace_exact(old_text, new_text, &snapshot).await;
+        assert!(diff.is_some());
+
+        let diff = diff.unwrap();
+        let result = buffer.update(cx, |buffer, cx| {
+            let _ = buffer.apply_diff(diff, cx);
+            buffer.text()
+        });
+
+        assert_eq!(
+            result,
+            "fn example() {\n    let x = 42;\n    println!(\"x = {}\", x);\n}"
+        );
+    }
+
+    #[gpui::test]
+    async fn test_replace_exact_multiple_occurrences(cx: &mut TestAppContext) {
+        let buffer =
+            cx.new(|cx| language::Buffer::local("let x = 41;\nlet y = 41;\nlet z = 41;", cx));
+        let snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot());
+
+        // Should replace only the first occurrence
+        let diff = replace_exact("let x = 41;", "let x = 42;", &snapshot).await;
+        assert!(diff.is_some());
+
+        let diff = diff.unwrap();
+        let result = buffer.update(cx, |buffer, cx| {
+            let _ = buffer.apply_diff(diff, cx);
+            buffer.text()
+        });
+
+        assert_eq!(result, "let x = 42;\nlet y = 41;\nlet z = 41;");
+    }
+
+    #[gpui::test]
+    async fn test_replace_exact_empty_buffer(cx: &mut TestAppContext) {
+        let buffer = cx.new(|cx| language::Buffer::local("", cx));
+        let snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot());
+
+        let diff = replace_exact("let x = 41;", "let x = 42;", &snapshot).await;
+        assert!(diff.is_none());
+    }
+
+    #[gpui::test]
+    async fn test_replace_exact_partial_match(cx: &mut TestAppContext) {
+        let buffer = cx.new(|cx| language::Buffer::local("let x = 41; let y = 42;", cx));
+        let snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot());
+
+        // Verify substring replacement actually works
+        let diff = replace_exact("let x = 41", "let x = 42", &snapshot).await;
+        assert!(diff.is_some());
+
+        let diff = diff.unwrap();
+        let result = buffer.update(cx, |buffer, cx| {
+            let _ = buffer.apply_diff(diff, cx);
+            buffer.text()
+        });
+
+        assert_eq!(result, "let x = 42; let y = 42;");
+    }
+
+    #[gpui::test]
+    async fn test_replace_exact_whitespace_sensitive(cx: &mut TestAppContext) {
+        let buffer = cx.new(|cx| language::Buffer::local("let x = 41;", cx));
+        let snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot());
+
+        let diff = replace_exact(" let x = 41;", "let x = 42;", &snapshot).await;
+        assert!(diff.is_none());
+    }
+
+    #[gpui::test]
+    async fn test_replace_exact_entire_buffer(cx: &mut TestAppContext) {
+        let buffer = cx.new(|cx| language::Buffer::local("let x = 41;", cx));
+        let snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot());
+
+        let diff = replace_exact("let x = 41;", "let x = 42;", &snapshot).await;
+        assert!(diff.is_some());
+
+        let diff = diff.unwrap();
+        let result = buffer.update(cx, |buffer, cx| {
+            let _ = buffer.apply_diff(diff, cx);
+            buffer.text()
+        });
+
+        assert_eq!(result, "let x = 42;");
+    }
+
    fn test_replace_with_flexible_indent(
        cx: &mut TestAppContext,
        whole: &str,
--- a/crates/assistant_tools/src/ui.rs
+++ b/crates/assistant_tools/src/ui.rs
@@ -0,0 +1,3 @@
+mod tool_call_card_header;
+
+pub use tool_call_card_header::*;
--- a/crates/assistant_tools/src/ui/tool_call_card_header.rs
+++ b/crates/assistant_tools/src/ui/tool_call_card_header.rs
@@ -0,0 +1,102 @@
+use gpui::{Animation, AnimationExt, App, IntoElement, pulsating_between};
+use std::time::Duration;
+use ui::{Tooltip, prelude::*};
+
+/// A reusable header component for tool call cards.
+#[derive(IntoElement)]
+pub struct ToolCallCardHeader {
+    icon: IconName,
+    primary_text: SharedString,
+    secondary_text: Option<SharedString>,
+    is_loading: bool,
+    error: Option<String>,
+}
+
+impl ToolCallCardHeader {
+    pub fn new(icon: IconName, primary_text: impl Into<SharedString>) -> Self {
+        Self {
+            icon,
+            primary_text: primary_text.into(),
+            secondary_text: None,
+            is_loading: false,
+            error: None,
+        }
+    }
+
+    pub fn with_secondary_text(mut self, text: impl Into<SharedString>) -> Self {
+        self.secondary_text = Some(text.into());
+        self
+    }
+
+    pub fn loading(mut self) -> Self {
+        self.is_loading = true;
+        self
+    }
+
+    pub fn with_error(mut self, error: impl Into<String>) -> Self {
+        self.error = Some(error.into());
+        self
+    }
+}
+
+impl RenderOnce for ToolCallCardHeader {
+    fn render(self, window: &mut Window, cx: &mut App) -> impl IntoElement {
+        let font_size = rems(0.8125);
+        let secondary_text = self.secondary_text;
+
+        h_flex()
+            .id("tool-label-container")
+            .gap_1p5()
+            .max_w_full()
+            .overflow_x_scroll()
+            .opacity(0.8)
+            .child(
+                h_flex().h(window.line_height()).justify_center().child(
+                    Icon::new(self.icon)
+                        .size(IconSize::XSmall)
+                        .color(Color::Muted),
+                ),
+            )
+            .child(
+                h_flex()
+                    .h(window.line_height())
+                    .gap_1p5()
+                    .text_size(font_size)
+                    .map(|this| {
+                        if let Some(error) = &self.error {
+                            this.child(format!("{} failed", self.primary_text)).child(
+                                IconButton::new("error_info", IconName::Warning)
+                                    .shape(ui::IconButtonShape::Square)
+                                    .icon_size(IconSize::XSmall)
+                                    .icon_color(Color::Warning)
+                                    .tooltip(Tooltip::text(error.clone())),
+                            )
+                        } else {
+                            this.child(self.primary_text.clone())
+                        }
+                    })
+                    .when_some(secondary_text, |this, secondary_text| {
+                        this.child(
+                            div()
+                                .size(px(3.))
+                                .rounded_full()
+                                .bg(cx.theme().colors().text),
+                        )
+                        .child(div().text_size(font_size).child(secondary_text.clone()))
+                    })
+                    .with_animation(
+                        "loading-label",
+                        Animation::new(Duration::from_secs(2))
+                            .repeat()
+                            .with_easing(pulsating_between(0.6, 1.)),
+                        move |this, delta| {
+                            if self.is_loading {
+                                this.opacity(delta)
+                            } else {
+                                this
+                            }
+                        },
+                    ),
+            )
+    }
+}
--- a/crates/assistant_tools/src/web_search_tool.rs
+++ b/crates/assistant_tools/src/web_search_tool.rs
@@ -0,0 +1,289 @@
+use std::{sync::Arc, time::Duration};
+
+use crate::schema::json_schema_for;
+use crate::ui::ToolCallCardHeader;
+use anyhow::{Context as _, Result, anyhow};
+use assistant_tool::{ActionLog, Tool, ToolCard, ToolResult, ToolUseStatus};
+use futures::{Future, FutureExt, TryFutureExt};
+use gpui::{App, AppContext, Context, Entity, IntoElement, Task, Window};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use project::Project;
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
+use ui::{IconName, Tooltip, prelude::*};
+use web_search::WebSearchRegistry;
+use zed_llm_client::{WebSearchCitation, WebSearchResponse};
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+pub struct WebSearchToolInput {
+    /// The search term or question to query on the web.
+    query: String,
+}
+
+#[derive(RegisterComponent)]
+pub struct WebSearchTool;
+
+impl Tool for WebSearchTool {
+    fn name(&self) -> String {
+        "web_search".into()
+    }
+
+    fn needs_confirmation(&self, _: &serde_json::Value, _: &App) -> bool {
+        false
+    }
+
+    fn description(&self) -> String {
+        "Search the web for information using your query. Use this when you need real-time information, facts, or data that might not be in your training. Results will include snippets and links from relevant web pages.".into()
+    }
+
+    fn icon(&self) -> IconName {
+        IconName::Globe
+    }
+
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
+        json_schema_for::<WebSearchToolInput>(format)
+    }
+
+    fn ui_text(&self, _input: &serde_json::Value) -> String {
+        "Searching the Web".to_string()
+    }
+
+    fn run(
+        self: Arc<Self>,
+        input: serde_json::Value,
+        _messages: &[LanguageModelRequestMessage],
+        _project: Entity<Project>,
+        _action_log: Entity<ActionLog>,
+        cx: &mut App,
+    ) -> ToolResult {
+        let input = match serde_json::from_value::<WebSearchToolInput>(input) {
+            Ok(input) => input,
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
+        };
+        let Some(provider) = WebSearchRegistry::read_global(cx).active_provider() else {
+            return Task::ready(Err(anyhow!("Web search is not available."))).into();
+        };
+
+        let search_task = provider.search(input.query, cx).map_err(Arc::new).shared();
+        let output = cx.background_spawn({
+            let search_task = search_task.clone();
+            async move {
+                let response = search_task.await.map_err(|err| anyhow!(err))?;
+                serde_json::to_string(&response).context("Failed to serialize search results")
+            }
+        });
+
+        ToolResult {
+            output,
+            card: Some(cx.new(|cx| WebSearchToolCard::new(search_task, cx)).into()),
+        }
+    }
+}
+
+struct WebSearchToolCard {
+    response: Option<Result<WebSearchResponse>>,
+    _task: Task<()>,
+}
+
+impl WebSearchToolCard {
+    fn new(
+        search_task: impl 'static + Future<Output = Result<WebSearchResponse, Arc<anyhow::Error>>>,
+        cx: &mut Context<Self>,
+    ) -> Self {
+        let _task = cx.spawn(async move |this, cx| {
+            let response = search_task.await.map_err(|err| anyhow!(err));
+            this.update(cx, |this, cx| {
+                this.response = Some(response);
+                cx.notify();
+            })
+            .ok();
+        });
+
+        Self {
+            response: None,
+            _task,
+        }
+    }
+}
+
+impl ToolCard for WebSearchToolCard {
+    fn render(
+        &mut self,
+        _status: &ToolUseStatus,
+        _window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> impl IntoElement {
+        let header = match self.response.as_ref() {
+            Some(Ok(response)) => {
+                let text: SharedString = if response.citations.len() == 1 {
+                    "1 result".into()
+                } else {
+                    format!("{} results", response.citations.len()).into()
+                };
+                ToolCallCardHeader::new(IconName::Globe, "Searched the Web")
+                    .with_secondary_text(text)
+            }
+            Some(Err(error)) => {
+                ToolCallCardHeader::new(IconName::Globe, "Web Search").with_error(error.to_string())
+            }
+            None => ToolCallCardHeader::new(IconName::Globe, "Searching the Web").loading(),
+        };
+
+        let content =
+            self.response.as_ref().and_then(|response| match response {
+                Ok(response) => {
+                    Some(
+                        v_flex()
+                            .overflow_hidden()
+                            .ml_1p5()
+                            .pl(px(5.))
+                            .border_l_1()
+                            .border_color(cx.theme().colors().border_variant)
+                            .gap_1()
+                            .children(response.citations.iter().enumerate().map(
+                                |(index, citation)| {
+                                    let title = citation.title.clone();
+                                    let url = citation.url.clone();
+
+                                    Button::new(("citation", index), title)
+                                        .label_size(LabelSize::Small)
+                                        .color(Color::Muted)
+                                        .icon(IconName::ArrowUpRight)
+                                        .icon_size(IconSize::XSmall)
+                                        .icon_position(IconPosition::End)
+                                        .truncate(true)
+                                        .tooltip({
+                                            let url = url.clone();
+                                            move |window, cx| {
+                                                Tooltip::with_meta(
+                                                    "Citation Link",
+                                                    None,
+                                                    url.clone(),
+                                                    window,
+                                                    cx,
+                                                )
+                                            }
+                                        })
+                                        .on_click({
+                                            let url = url.clone();
+                                            move |_, _, cx| cx.open_url(&url)
+                                        })
+                                },
+                            ))
+                            .into_any(),
+                    )
+                }
+                Err(_) => None,
+            });
+
+        v_flex().mb_3().gap_1().child(header).children(content)
+    }
+}
+
+impl Component for WebSearchTool {
+    fn scope() -> ComponentScope {
+        ComponentScope::Agent
+    }
+
+    fn sort_name() -> &'static str {
+        "ToolWebSearch"
+    }
+
+    fn preview(window: &mut Window, cx: &mut App) -> Option<AnyElement> {
+        let in_progress_search = cx.new(|cx| WebSearchToolCard {
+            response: None,
+            _task: cx.spawn(async move |_this, cx| {
+                loop {
+                    cx.background_executor()
+                        .timer(Duration::from_secs(60))
+                        .await
+                }
+            }),
+        });
+
+        let successful_search = cx.new(|_cx| WebSearchToolCard {
+            response: Some(Ok(example_search_response())),
+            _task: Task::ready(()),
+        });
+
+        let error_search = cx.new(|_cx| WebSearchToolCard {
+            response: Some(Err(anyhow!("Failed to resolve https://google.com"))),
+            _task: Task::ready(()),
+        });
+
+        Some(
+            v_flex()
+                .gap_6()
+                .children(vec![example_group(vec![
+                    single_example(
+                        "In Progress",
+                        div()
+                            .size_full()
+                            .child(in_progress_search.update(cx, |tool, cx| {
+                                tool.render(&ToolUseStatus::Pending, window, cx)
+                                    .into_any_element()
+                            }))
+                            .into_any_element(),
+                    ),
+                    single_example(
+                        "Successful",
+                        div()
+                            .size_full()
+                            .child(successful_search.update(cx, |tool, cx| {
+                                tool.render(&ToolUseStatus::Finished("".into()), window, cx)
+                                    .into_any_element()
+                            }))
+                            .into_any_element(),
+                    ),
+                    single_example(
+                        "Error",
+                        div()
+                            .size_full()
+                            .child(error_search.update(cx, |tool, cx| {
+                                tool.render(&ToolUseStatus::Error("".into()), window, cx)
+                                    .into_any_element()
+                            }))
+                            .into_any_element(),
+                    ),
+                ])])
+                .into_any_element(),
+        )
+    }
+}
+
+fn example_search_response() -> WebSearchResponse {
+    WebSearchResponse {
+        summary: r#"Toronto boasts a vibrant culinary scene with a diverse array of..."#
+            .to_string(),
+        citations: vec![
+            WebSearchCitation {
+                title: "Alo".to_string(),
+                url: "https://www.google.com/maps/search/Alo%2C+Toronto%2C+Canada".to_string(),
+                range: Some(147..213),
+            },
+            WebSearchCitation {
+                title: "Edulis".to_string(),
+                url: "https://www.google.com/maps/search/Edulis%2C+Toronto%2C+Canada".to_string(),
+                range: Some(447..519),
+            },
+            WebSearchCitation {
+                title: "Sushi Masaki Saito".to_string(),
+                url: "https://www.google.com/maps/search/Sushi+Masaki+Saito%2C+Toronto%2C+Canada"
+                    .to_string(),
+                range: Some(776..872),
+            },
+            WebSearchCitation {
+                title: "Shoushin".to_string(),
+                url: "https://www.google.com/maps/search/Shoushin%2C+Toronto%2C+Canada".to_string(),
+                range: Some(1072..1148),
+            },
+            WebSearchCitation {
+                title: "Restaurant 20 Victoria".to_string(),
+                url:
+                    "https://www.google.com/maps/search/Restaurant+20+Victoria%2C+Toronto%2C+Canada"
+                        .to_string(),
+                range: Some(1291..1395),
+            },
+        ],
+    }
+}
--- a/crates/bedrock/src/models.rs
+++ b/crates/bedrock/src/models.rs
@@ -84,6 +84,10 @@ pub enum Model {
 }

 impl Model {
+    pub fn default_fast() -> Self {
+        Self::Claude3_5Haiku
+    }
+
    pub fn from_id(id: &str) -> anyhow::Result<Self> {
        if id.starts_with("claude-3-5-sonnet-v2") {
            Ok(Self::Claude3_5SonnetV2)
--- a/crates/collab/Cargo.toml
+++ b/crates/collab/Cargo.toml
@@ -75,6 +75,7 @@ tracing-subscriber = { version = "0.3.18", features = ["env-filter", "json", "re
 util.workspace = true
 uuid.workspace = true
 workspace-hack.workspace = true
+zed_llm_client.workspace = true

 [dev-dependencies]
 assistant = { workspace = true, features = ["test-support"] }
--- a/crates/collab/migrations_llm/20250416181354_add_plan_to_subscription_usages.sql
+++ b/crates/collab/migrations_llm/20250416181354_add_plan_to_subscription_usages.sql
@@ -0,0 +1,4 @@
+alter table subscription_usages
+    add column plan text not null;
+
+create index ix_subscription_usages_on_plan on subscription_usages (plan);
--- a/crates/collab/src/api/billing.rs
+++ b/crates/collab/src/api/billing.rs
@@ -330,8 +330,10 @@ async fn create_billing_subscription(
                .await?
        }
        None => {
-            let default_model =
-                llm_db.model(rpc::LanguageModelProvider::Anthropic, "claude-3-7-sonnet")?;
+            let default_model = llm_db.model(
+                zed_llm_client::LanguageModelProvider::Anthropic,
+                "claude-3-7-sonnet",
+            )?;
            let stripe_model = stripe_billing.register_model(default_model).await?;
            stripe_billing
                .checkout(customer_id, &user.github_login, &stripe_model, &success_url)
@@ -1018,8 +1020,20 @@ async fn get_current_usage(
        return Ok(Json(empty_usage));
    };

-    let model_requests_limit = Some(500);
-    let edit_prediction_limit = Some(2000);
+    let plan = match usage.plan {
+        SubscriptionKind::ZedPro => zed_llm_client::Plan::ZedPro,
+        SubscriptionKind::ZedProTrial => zed_llm_client::Plan::ZedProTrial,
+        SubscriptionKind::ZedFree => zed_llm_client::Plan::Free,
+    };
+
+    let model_requests_limit = match plan.model_requests_limit() {
+        zed_llm_client::UsageLimit::Limited(limit) => Some(limit),
+        zed_llm_client::UsageLimit::Unlimited => None,
+    };
+    let edit_prediction_limit = match plan.edit_predictions_limit() {
+        zed_llm_client::UsageLimit::Limited(limit) => Some(limit),
+        zed_llm_client::UsageLimit::Unlimited => None,
+    };

    Ok(Json(GetCurrentUsageResponse {
        model_requests: UsageCounts {
--- a/crates/collab/src/llm/db.rs
+++ b/crates/collab/src/llm/db.rs
@@ -8,9 +8,9 @@ mod tests;

 use collections::HashMap;
 pub use ids::*;
-use rpc::LanguageModelProvider;
 pub use seed::*;
 pub use tables::*;
+use zed_llm_client::LanguageModelProvider;

 #[cfg(test)]
 pub use tests::TestLlmDb;
--- a/crates/collab/src/llm/db/tables/subscription_usage.rs
+++ b/crates/collab/src/llm/db/tables/subscription_usage.rs
@@ -1,4 +1,5 @@
 use crate::db::UserId;
+use crate::db::billing_subscription::SubscriptionKind;
 use sea_orm::entity::prelude::*;
 use time::PrimitiveDateTime;

@@ -10,6 +11,7 @@ pub struct Model {
    pub user_id: UserId,
    pub period_start_at: PrimitiveDateTime,
    pub period_end_at: PrimitiveDateTime,
+    pub plan: SubscriptionKind,
    pub model_requests: i32,
    pub edit_predictions: i32,
 }
--- a/crates/collab/src/llm/db/tests/provider_tests.rs
+++ b/crates/collab/src/llm/db/tests/provider_tests.rs
@@ -1,5 +1,5 @@
 use pretty_assertions::assert_eq;
-use rpc::LanguageModelProvider;
+use zed_llm_client::LanguageModelProvider;

 use crate::llm::db::LlmDatabase;
 use crate::test_llm_db;
--- a/crates/collab/src/llm/token.rs
+++ b/crates/collab/src/llm/token.rs
@@ -10,6 +10,7 @@ use std::time::Duration;
 use thiserror::Error;
 use util::maybe;
 use uuid::Uuid;
+use zed_llm_client::Plan;

 #[derive(Clone, Debug, Default, Serialize, Deserialize)]
 #[serde(rename_all = "camelCase")]
@@ -29,7 +30,7 @@ pub struct LlmTokenClaims {
    pub has_llm_subscription: bool,
    pub max_monthly_spend_in_cents: u32,
    pub custom_llm_monthly_allowance_in_cents: Option<u32>,
-    pub plan: rpc::proto::Plan,
+    pub plan: Plan,
    #[serde(default)]
    pub subscription_period: Option<(NaiveDateTime, NaiveDateTime)>,
 }
@@ -81,7 +82,11 @@ impl LlmTokenClaims {
            custom_llm_monthly_allowance_in_cents: user
                .custom_llm_monthly_allowance_in_cents
                .map(|allowance| allowance as u32),
-            plan,
+            plan: match plan {
+                rpc::proto::Plan::Free => Plan::Free,
+                rpc::proto::Plan::ZedPro => Plan::ZedPro,
+                rpc::proto::Plan::ZedProTrial => Plan::ZedProTrial,
+            },
            subscription_period: maybe!({
                let subscription = subscription?;
                let period_start_at = subscription.current_period_start_at()?;
--- a/crates/collab/src/rpc.rs
+++ b/crates/collab/src/rpc.rs
@@ -3707,7 +3707,9 @@ async fn count_language_model_tokens(

    let rate_limit: Box<dyn RateLimit> = match session.current_plan(&session.db().await).await? {
        proto::Plan::ZedPro => Box::new(ZedProCountLanguageModelTokensRateLimit),
-        proto::Plan::Free => Box::new(FreeCountLanguageModelTokensRateLimit),
+        proto::Plan::Free | proto::Plan::ZedProTrial => {
+            Box::new(FreeCountLanguageModelTokensRateLimit)
+        }
    };

    session
@@ -3827,7 +3829,7 @@ async fn compute_embeddings(

    let rate_limit: Box<dyn RateLimit> = match session.current_plan(&session.db().await).await? {
        proto::Plan::ZedPro => Box::new(ZedProComputeEmbeddingsRateLimit),
-        proto::Plan::Free => Box::new(FreeComputeEmbeddingsRateLimit),
+        proto::Plan::Free | proto::Plan::ZedProTrial => Box::new(FreeComputeEmbeddingsRateLimit),
    };

    session
--- a/crates/collab/src/tests/editor_tests.rs
+++ b/crates/collab/src/tests/editor_tests.rs
@@ -694,15 +694,7 @@ async fn test_collaborating_with_code_actions(
    // Confirming the code action will trigger a resolve request.
    let confirm_action = editor_b
        .update_in(cx_b, |editor, window, cx| {
-            Editor::confirm_code_action(
-                editor,
-                &ConfirmCodeAction {
-                    item_ix: Some(0),
-                    from_mouse_context_menu: false,
-                },
-                window,
-                cx,
-            )
+            Editor::confirm_code_action(editor, &ConfirmCodeAction { item_ix: Some(0) }, window, cx)
        })
        .unwrap();
    fake_language_server.set_request_handler::<lsp::request::CodeActionResolveRequest, _, _>(
--- a/crates/collab/src/tests/following_tests.rs
+++ b/crates/collab/src/tests/following_tests.rs
@@ -6,17 +6,18 @@ use collab_ui::{
    channel_view::ChannelView,
    notifications::project_shared_notification::ProjectSharedNotification,
 };
-use editor::{Editor, ExcerptRange, MultiBuffer};
+use editor::{Editor, MultiBuffer, PathKey};
 use gpui::{
    AppContext as _, BackgroundExecutor, BorrowAppContext, Entity, SharedString, TestAppContext,
-    VisualTestContext, point,
+    VisualContext, VisualTestContext, point,
 };
 use language::Capability;
 use project::WorktreeSettings;
 use rpc::proto::PeerId;
 use serde_json::json;
 use settings::SettingsStore;
-use util::path;
+use text::{Point, ToPoint};
+use util::{path, test::sample_text};
 use workspace::{SplitDirection, Workspace, item::ItemHandle as _};

 use super::TestClient;
@@ -295,8 +296,20 @@ async fn test_basic_following(
                .unwrap()
        });
        let mut result = MultiBuffer::new(Capability::ReadWrite);
-        result.push_excerpts(buffer_a1, [ExcerptRange::new(0..3)], cx);
-        result.push_excerpts(buffer_a2, [ExcerptRange::new(4..7)], cx);
+        result.set_excerpts_for_path(
+            PathKey::for_buffer(&buffer_a1, cx),
+            buffer_a1,
+            [Point::row_range(1..2)],
+            1,
+            cx,
+        );
+        result.set_excerpts_for_path(
+            PathKey::for_buffer(&buffer_a2, cx),
+            buffer_a2,
+            [Point::row_range(5..6)],
+            1,
+            cx,
+        );
        result
    });
    let multibuffer_editor_a = workspace_a.update_in(cx_a, |workspace, window, cx| {
@@ -2070,6 +2083,83 @@ async fn share_workspace(
        .await
 }

+#[gpui::test]
+async fn test_following_after_replacement(cx_a: &mut TestAppContext, cx_b: &mut TestAppContext) {
+    let (_server, client_a, client_b, channel) = TestServer::start2(cx_a, cx_b).await;
+
+    let (workspace, cx_a) = client_a.build_test_workspace(cx_a).await;
+    join_channel(channel, &client_a, cx_a).await.unwrap();
+    share_workspace(&workspace, cx_a).await.unwrap();
+    let buffer = workspace.update(cx_a, |workspace, cx| {
+        workspace.project().update(cx, |project, cx| {
+            project.create_local_buffer(&sample_text(26, 5, 'a'), None, cx)
+        })
+    });
+    let multibuffer = cx_a.new(|cx| {
+        let mut mb = MultiBuffer::new(Capability::ReadWrite);
+        mb.set_excerpts_for_path(
+            PathKey::for_buffer(&buffer, cx),
+            buffer.clone(),
+            [Point::row_range(1..1), Point::row_range(5..5)],
+            1,
+            cx,
+        );
+        mb
+    });
+    let snapshot = buffer.update(cx_a, |buffer, _| buffer.snapshot());
+    let editor: Entity<Editor> = cx_a.new_window_entity(|window, cx| {
+        Editor::for_multibuffer(
+            multibuffer.clone(),
+            Some(workspace.read(cx).project().clone()),
+            window,
+            cx,
+        )
+    });
+    workspace.update_in(cx_a, |workspace, window, cx| {
+        workspace.add_item_to_center(Box::new(editor.clone()) as _, window, cx)
+    });
+    editor.update_in(cx_a, |editor, window, cx| {
+        editor.change_selections(None, window, cx, |s| {
+            s.select_ranges([Point::row_range(4..4)]);
+        })
+    });
+    let positions = editor.update(cx_a, |editor, _| {
+        editor
+            .selections
+            .disjoint_anchor_ranges()
+            .map(|range| range.start.text_anchor.to_point(&snapshot))
+            .collect::<Vec<_>>()
+    });
+    multibuffer.update(cx_a, |multibuffer, cx| {
+        multibuffer.set_excerpts_for_path(
+            PathKey::for_buffer(&buffer, cx),
+            buffer,
+            [Point::row_range(1..5)],
+            1,
+            cx,
+        );
+    });
+
+    let (workspace_b, cx_b) = client_b.join_workspace(channel, cx_b).await;
+    cx_b.run_until_parked();
+    let editor_b = workspace_b
+        .update(cx_b, |workspace, cx| {
+            workspace
+                .active_item(cx)
+                .and_then(|item| item.downcast::<Editor>())
+        })
+        .unwrap();
+
+    let new_positions = editor_b.update(cx_b, |editor, _| {
+        editor
+            .selections
+            .disjoint_anchor_ranges()
+            .map(|range| range.start.text_anchor.to_point(&snapshot))
+            .collect::<Vec<_>>()
+    });
+    assert_eq!(positions, new_positions);
+}
+
 #[gpui::test]
 async fn test_following_to_channel_notes_other_workspace(
    cx_a: &mut TestAppContext,
--- a/crates/collab/src/tests/integration_tests.rs
+++ b/crates/collab/src/tests/integration_tests.rs
@@ -5091,6 +5091,7 @@ async fn test_project_search(
                false,
                Default::default(),
                Default::default(),
+                false,
                None,
            )
            .unwrap(),
--- a/crates/collab/src/tests/random_project_collaboration_tests.rs
+++ b/crates/collab/src/tests/random_project_collaboration_tests.rs
@@ -882,6 +882,7 @@ impl RandomizedTest for ProjectCollaborationTest {
                            false,
                            Default::default(),
                            Default::default(),
+                            false,
                            None,
                        )
                        .unwrap(),
--- a/crates/collab_ui/src/chat_panel/message_editor.rs
+++ b/crates/collab_ui/src/chat_panel/message_editor.rs
@@ -37,6 +37,7 @@ static MENTIONS_SEARCH: LazyLock<SearchQuery> = LazyLock::new(|| {
        false,
        Default::default(),
        Default::default(),
+        false,
        None,
    )
    .unwrap()
--- a/crates/component/src/component.rs
+++ b/crates/component/src/component.rs
@@ -201,6 +201,7 @@ pub fn components() -> AllComponents {

 #[derive(Debug, Clone, PartialEq, Eq, Hash)]
 pub enum ComponentScope {
+    Agent,
    Collaboration,
    DataDisplay,
    Editor,
@@ -220,6 +221,7 @@ pub enum ComponentScope {
 impl Display for ComponentScope {
    fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
        match self {
+            ComponentScope::Agent => write!(f, "Agent"),
            ComponentScope::Collaboration => write!(f, "Collaboration"),
            ComponentScope::DataDisplay => write!(f, "Data Display"),
            ComponentScope::Editor => write!(f, "Editor"),
--- a/crates/copilot/src/copilot_chat.rs
+++ b/crates/copilot/src/copilot_chat.rs
@@ -41,6 +41,10 @@ pub enum Model {
    O1,
    #[serde(alias = "o1-mini", rename = "o3-mini")]
    O3Mini,
+    #[serde(alias = "o3", rename = "o3")]
+    O3,
+    #[serde(alias = "o4-mini", rename = "o4-mini")]
+    O4Mini,
    #[serde(alias = "claude-3-5-sonnet", rename = "claude-3.5-sonnet")]
    Claude3_5Sonnet,
    #[serde(alias = "claude-3-7-sonnet", rename = "claude-3.7-sonnet")]
@@ -57,12 +61,18 @@ pub enum Model {
 }

 impl Model {
+    pub fn default_fast() -> Self {
+        Self::Claude3_7Sonnet
+    }
+
    pub fn uses_streaming(&self) -> bool {
        match self {
            Self::Gpt4o
            | Self::Gpt4
            | Self::Gpt4_1
            | Self::Gpt3_5Turbo
+            | Self::O3
+            | Self::O4Mini
            | Self::Claude3_5Sonnet
            | Self::Claude3_7Sonnet
            | Self::Claude3_7SonnetThinking => true,
@@ -78,6 +88,8 @@ impl Model {
            "gpt-3.5-turbo" => Ok(Self::Gpt3_5Turbo),
            "o1" => Ok(Self::O1),
            "o3-mini" => Ok(Self::O3Mini),
+            "o3" => Ok(Self::O3),
+            "o4-mini" => Ok(Self::O4Mini),
            "claude-3-5-sonnet" => Ok(Self::Claude3_5Sonnet),
            "claude-3-7-sonnet" => Ok(Self::Claude3_7Sonnet),
            "claude-3.7-sonnet-thought" => Ok(Self::Claude3_7SonnetThinking),
@@ -95,6 +107,8 @@ impl Model {
            Self::Gpt4o => "gpt-4o",
            Self::O3Mini => "o3-mini",
            Self::O1 => "o1",
+            Self::O3 => "o3",
+            Self::O4Mini => "o4-mini",
            Self::Claude3_5Sonnet => "claude-3-5-sonnet",
            Self::Claude3_7Sonnet => "claude-3-7-sonnet",
            Self::Claude3_7SonnetThinking => "claude-3.7-sonnet-thought",
@@ -111,6 +125,8 @@ impl Model {
            Self::Gpt4o => "GPT-4o",
            Self::O3Mini => "o3-mini",
            Self::O1 => "o1",
+            Self::O3 => "o3",
+            Self::O4Mini => "o4-mini",
            Self::Claude3_5Sonnet => "Claude 3.5 Sonnet",
            Self::Claude3_7Sonnet => "Claude 3.7 Sonnet",
            Self::Claude3_7SonnetThinking => "Claude 3.7 Sonnet Thinking",
@@ -123,10 +139,12 @@ impl Model {
        match self {
            Self::Gpt4o => 64_000,
            Self::Gpt4 => 32_768,
-            Self::Gpt4_1 => 1_047_576,
+            Self::Gpt4_1 => 128_000,
            Self::Gpt3_5Turbo => 12_288,
            Self::O3Mini => 64_000,
            Self::O1 => 20_000,
+            Self::O3 => 128_000,
+            Self::O4Mini => 128_000,
            Self::Claude3_5Sonnet => 200_000,
            Self::Claude3_7Sonnet => 90_000,
            Self::Claude3_7SonnetThinking => 90_000,
--- a/crates/deepseek/src/deepseek.rs
+++ b/crates/deepseek/src/deepseek.rs
@@ -64,6 +64,10 @@ pub enum Model {
 }

 impl Model {
+    pub fn default_fast() -> Self {
+        Model::Chat
+    }
+
    pub fn from_id(id: &str) -> Result<Self> {
        match id {
            "deepseek-chat" => Ok(Self::Chat),
--- a/crates/diagnostics/src/diagnostics.rs
+++ b/crates/diagnostics/src/diagnostics.rs
@@ -46,7 +46,8 @@ use workspace::{

 actions!(diagnostics, [Deploy, ToggleWarnings]);

-struct IncludeWarnings(bool);
+#[derive(Default)]
+pub(crate) struct IncludeWarnings(bool);
 impl Global for IncludeWarnings {}

 pub fn init(cx: &mut App) {
@@ -379,7 +380,6 @@ impl ProjectDiagnosticsEditor {
                    Point::zero()..buffer_snapshot.max_point(),
                    false,
                )
-                .filter(|d| !(d.diagnostic.is_primary && d.diagnostic.is_unnecessary))
                .collect::<Vec<_>>();
            let unchanged = this.update(cx, |this, _| {
                if this.diagnostics.get(&buffer_id).is_some_and(|existing| {
--- a/crates/diagnostics/src/diagnostics_tests.rs
+++ b/crates/diagnostics/src/diagnostics_tests.rs
@@ -1,9 +1,9 @@
 use super::*;
 use collections::{HashMap, HashSet};
 use editor::{
-    DisplayPoint,
+    DisplayPoint, InlayId,
    actions::{GoToDiagnostic, GoToPreviousDiagnostic, MoveToBeginning},
-    display_map::DisplayRow,
+    display_map::{DisplayRow, Inlay},
    test::{editor_content_with_blocks, editor_test_context::EditorTestContext},
 };
 use gpui::{TestAppContext, VisualTestContext};
@@ -620,7 +620,7 @@ async fn test_diagnostics_multiple_servers(cx: &mut TestAppContext) {
 }

 #[gpui::test(iterations = 20)]
-async fn test_random_diagnostics(cx: &mut TestAppContext, mut rng: StdRng) {
+async fn test_random_diagnostics_blocks(cx: &mut TestAppContext, mut rng: StdRng) {
    init_test(cx);

    let operations = env::var("OPERATIONS")
@@ -779,6 +779,162 @@ async fn test_random_diagnostics(cx: &mut TestAppContext, mut rng: StdRng) {
    }
 }

+// similar to above, but with inlays. Used to find panics when mixing diagnostics and inlays.
+#[gpui::test]
+async fn test_random_diagnostics_with_inlays(cx: &mut TestAppContext, mut rng: StdRng) {
+    init_test(cx);
+
+    let operations = env::var("OPERATIONS")
+        .map(|i| i.parse().expect("invalid `OPERATIONS` variable"))
+        .unwrap_or(10);
+
+    let fs = FakeFs::new(cx.executor());
+    fs.insert_tree(path!("/test"), json!({})).await;
+
+    let project = Project::test(fs.clone(), [path!("/test").as_ref()], cx).await;
+    let lsp_store = project.read_with(cx, |project, _| project.lsp_store());
+    let window = cx.add_window(|window, cx| Workspace::test_new(project.clone(), window, cx));
+    let cx = &mut VisualTestContext::from_window(*window, cx);
+    let workspace = window.root(cx).unwrap();
+
+    let mutated_diagnostics = window.build_entity(cx, |window, cx| {
+        ProjectDiagnosticsEditor::new(true, project.clone(), workspace.downgrade(), window, cx)
+    });
+
+    workspace.update_in(cx, |workspace, window, cx| {
+        workspace.add_item_to_center(Box::new(mutated_diagnostics.clone()), window, cx);
+    });
+    mutated_diagnostics.update_in(cx, |diagnostics, window, _cx| {
+        assert!(diagnostics.focus_handle.is_focused(window));
+    });
+
+    let mut next_id = 0;
+    let mut next_filename = 0;
+    let mut language_server_ids = vec![LanguageServerId(0)];
+    let mut updated_language_servers = HashSet::default();
+    let mut current_diagnostics: HashMap<(PathBuf, LanguageServerId), Vec<lsp::Diagnostic>> =
+        Default::default();
+    let mut next_inlay_id = 0;
+
+    for _ in 0..operations {
+        match rng.gen_range(0..100) {
+            // language server completes its diagnostic check
+            0..=20 if !updated_language_servers.is_empty() => {
+                let server_id = *updated_language_servers.iter().choose(&mut rng).unwrap();
+                log::info!("finishing diagnostic check for language server {server_id}");
+                lsp_store.update(cx, |lsp_store, cx| {
+                    lsp_store.disk_based_diagnostics_finished(server_id, cx)
+                });
+
+                if rng.gen_bool(0.5) {
+                    cx.run_until_parked();
+                }
+            }
+
+            21..=50 => mutated_diagnostics.update_in(cx, |diagnostics, window, cx| {
+                diagnostics.editor.update(cx, |editor, cx| {
+                    let snapshot = editor.snapshot(window, cx);
+                    if snapshot.buffer_snapshot.len() > 0 {
+                        let position = rng.gen_range(0..snapshot.buffer_snapshot.len());
+                        let position = snapshot.buffer_snapshot.clip_offset(position, Bias::Left);
+                        log::info!(
+                            "adding inlay at {position}/{}: {:?}",
+                            snapshot.buffer_snapshot.len(),
+                            snapshot.buffer_snapshot.text(),
+                        );
+
+                        editor.splice_inlays(
+                            &[],
+                            vec![Inlay {
+                                id: InlayId::InlineCompletion(post_inc(&mut next_inlay_id)),
+                                position: snapshot.buffer_snapshot.anchor_before(position),
+                                text: Rope::from(format!("Test inlay {next_inlay_id}")),
+                            }],
+                            cx,
+                        );
+                    }
+                });
+            }),
+
+            // language server updates diagnostics
+            _ => {
+                let (path, server_id, diagnostics) =
+                    match current_diagnostics.iter_mut().choose(&mut rng) {
+                        // update existing set of diagnostics
+                        Some(((path, server_id), diagnostics)) if rng.gen_bool(0.5) => {
+                            (path.clone(), *server_id, diagnostics)
+                        }
+
+                        // insert a set of diagnostics for a new path
+                        _ => {
+                            let path: PathBuf =
+                                format!(path!("/test/{}.rs"), post_inc(&mut next_filename)).into();
+                            let len = rng.gen_range(128..256);
+                            let content =
+                                RandomCharIter::new(&mut rng).take(len).collect::<String>();
+                            fs.insert_file(&path, content.into_bytes()).await;
+
+                            let server_id = match language_server_ids.iter().choose(&mut rng) {
+                                Some(server_id) if rng.gen_bool(0.5) => *server_id,
+                                _ => {
+                                    let id = LanguageServerId(language_server_ids.len());
+                                    language_server_ids.push(id);
+                                    id
+                                }
+                            };
+
+                            (
+                                path.clone(),
+                                server_id,
+                                current_diagnostics.entry((path, server_id)).or_default(),
+                            )
+                        }
+                    };
+
+                updated_language_servers.insert(server_id);
+
+                lsp_store.update(cx, |lsp_store, cx| {
+                    log::info!("updating diagnostics. language server {server_id} path {path:?}");
+                    randomly_update_diagnostics_for_path(
+                        &fs,
+                        &path,
+                        diagnostics,
+                        &mut next_id,
+                        &mut rng,
+                    );
+                    lsp_store
+                        .update_diagnostics(
+                            server_id,
+                            lsp::PublishDiagnosticsParams {
+                                uri: lsp::Url::from_file_path(&path).unwrap_or_else(|_| {
+                                    lsp::Url::parse("file:///test/fallback.rs").unwrap()
+                                }),
+                                diagnostics: diagnostics.clone(),
+                                version: None,
+                            },
+                            &[],
+                            cx,
+                        )
+                        .unwrap()
+                });
+                cx.executor()
+                    .advance_clock(DIAGNOSTICS_UPDATE_DELAY + Duration::from_millis(10));
+
+                cx.run_until_parked();
+            }
+        }
+    }
+
+    log::info!("updating mutated diagnostics view");
+    mutated_diagnostics.update_in(cx, |diagnostics, window, cx| {
+        diagnostics.update_stale_excerpts(window, cx)
+    });
+
+    cx.executor()
+        .advance_clock(DIAGNOSTICS_UPDATE_DELAY + Duration::from_millis(10));
+    cx.run_until_parked();
+}
+
 #[gpui::test]
 async fn active_diagnostics_dismiss_after_invalidation(cx: &mut TestAppContext) {
    init_test(cx);
--- a/crates/diagnostics/src/items.rs
+++ b/crates/diagnostics/src/items.rs
@@ -9,7 +9,7 @@ use language::Diagnostic;
 use ui::{Button, ButtonLike, Color, Icon, IconName, Label, Tooltip, h_flex, prelude::*};
 use workspace::{StatusItemView, ToolbarItemEvent, Workspace, item::ItemHandle};

-use crate::{Deploy, ProjectDiagnosticsEditor};
+use crate::{Deploy, IncludeWarnings, ProjectDiagnosticsEditor};

 pub struct DiagnosticIndicator {
    summary: project::DiagnosticSummary,
@@ -94,6 +94,11 @@ impl Render for DiagnosticIndicator {
                    })
                    .on_click(cx.listener(|this, _, window, cx| {
                        if let Some(workspace) = this.workspace.upgrade() {
+                            if this.summary.error_count == 0 && this.summary.warning_count > 0 {
+                                cx.update_default_global(
+                                    |show_warnings: &mut IncludeWarnings, _| show_warnings.0 = true,
+                                );
+                            }
                            workspace.update(cx, |workspace, cx| {
                                ProjectDiagnosticsEditor::deploy(
                                    workspace,
--- a/crates/editor/src/actions.rs
+++ b/crates/editor/src/actions.rs
@@ -99,9 +99,6 @@ pub struct ComposeCompletion {
 pub struct ConfirmCodeAction {
    #[serde(default)]
    pub item_ix: Option<usize>,
-    #[serde(default)]
-    #[serde(skip)]
-    pub from_mouse_context_menu: bool,
 }

 #[derive(PartialEq, Clone, Deserialize, Default, JsonSchema)]
--- a/crates/editor/src/code_context_menus.rs
+++ b/crates/editor/src/code_context_menus.rs
@@ -632,6 +632,7 @@ impl CompletionsMenu {
                    MarkdownElement::new(markdown.clone(), hover_markdown_style(window, cx))
                        .code_block_renderer(markdown::CodeBlockRenderer::Default {
                            copy_button: false,
+                            border: false,
                        })
                        .on_url_click(open_markdown_url),
                )
@@ -774,13 +775,36 @@ pub struct AvailableCodeAction {
    pub provider: Rc<dyn CodeActionProvider>,
 }

-#[derive(Clone, Default)]
+#[derive(Clone)]
 pub struct CodeActionContents {
-    pub tasks: Option<Rc<ResolvedTasks>>,
-    pub actions: Option<Rc<[AvailableCodeAction]>>,
+    tasks: Option<Rc<ResolvedTasks>>,
+    pub(crate) actions: Option<Rc<[AvailableCodeAction]>>,
 }

 impl CodeActionContents {
+    pub fn new(
+        mut tasks: Option<ResolvedTasks>,
+        actions: Option<Rc<[AvailableCodeAction]>>,
+        cx: &App,
+    ) -> Self {
+        if !cx.has_flag::<Debugger>() {
+            if let Some(tasks) = &mut tasks {
+                tasks
+                    .templates
+                    .retain(|(_, task)| !matches!(task.task_type(), task::TaskType::Debug(_)));
+            }
+        }
+
+        Self {
+            tasks: tasks.map(Rc::new),
+            actions,
+        }
+    }
+
+    pub fn tasks(&self) -> Option<&ResolvedTasks> {
+        self.tasks.as_deref()
+    }
+
    fn len(&self) -> usize {
        match (&self.tasks, &self.actions) {
            (Some(tasks), Some(actions)) => actions.len() + tasks.templates.len(),
@@ -790,7 +814,7 @@ impl CodeActionContents {
        }
    }

-    pub fn is_empty(&self) -> bool {
+    fn is_empty(&self) -> bool {
        match (&self.tasks, &self.actions) {
            (Some(tasks), Some(actions)) => actions.is_empty() && tasks.templates.is_empty(),
            (Some(tasks), None) => tasks.templates.is_empty(),
@@ -799,7 +823,7 @@ impl CodeActionContents {
        }
    }

-    pub fn iter(&self) -> impl Iterator<Item = CodeActionsItem> + '_ {
+    fn iter(&self) -> impl Iterator<Item = CodeActionsItem> + '_ {
        self.tasks
            .iter()
            .flat_map(|tasks| {
@@ -867,14 +891,14 @@ pub enum CodeActionsItem {
 }

 impl CodeActionsItem {
-    pub fn as_task(&self) -> Option<&ResolvedTask> {
+    fn as_task(&self) -> Option<&ResolvedTask> {
        let Self::Task(_, task) = self else {
            return None;
        };
        Some(task)
    }

-    pub fn as_code_action(&self) -> Option<&CodeAction> {
+    fn as_code_action(&self) -> Option<&CodeAction> {
        let Self::CodeAction { action, .. } = self else {
            return None;
        };
@@ -988,17 +1012,6 @@ impl CodeActionsMenu {
                    .iter()
                    .skip(range.start)
                    .take(range.end - range.start)
-                    .filter(|action| {
-                        if action
-                            .as_task()
-                            .map(|task| matches!(task.task_type(), task::TaskType::Debug(_)))
-                            .unwrap_or(false)
-                        {
-                            cx.has_flag::<Debugger>()
-                        } else {
-                            true
-                        }
-                    })
                    .enumerate()
                    .map(|(ix, action)| {
                        let item_ix = range.start + ix;
@@ -1014,7 +1027,6 @@ impl CodeActionsMenu {
                                        if let Some(task) = editor.confirm_code_action(
                                            &ConfirmCodeAction {
                                                item_ix: Some(item_ix),
-                                                from_mouse_context_menu: false,
                                            },
                                            window,
                                            cx,
@@ -1040,7 +1052,6 @@ impl CodeActionsMenu {
                                        if let Some(task) = editor.confirm_code_action(
                                            &ConfirmCodeAction {
                                                item_ix: Some(item_ix),
-                                                from_mouse_context_menu: false,
                                            },
                                            window,
                                            cx,
--- a/crates/editor/src/display_map.rs
+++ b/crates/editor/src/display_map.rs
@@ -49,8 +49,8 @@ use language::{
 };
 use lsp::DiagnosticSeverity;
 use multi_buffer::{
-    Anchor, AnchorRangeExt, MultiBuffer, MultiBufferPoint, MultiBufferRow, MultiBufferSnapshot,
-    RowInfo, ToOffset, ToPoint,
+    Anchor, AnchorRangeExt, ExcerptId, MultiBuffer, MultiBufferPoint, MultiBufferRow,
+    MultiBufferSnapshot, RowInfo, ToOffset, ToPoint,
 };
 use serde::Deserialize;
 use std::{
@@ -574,6 +574,21 @@ impl DisplayMap {
        self.block_map.read(snapshot, edits);
    }

+    pub fn remove_inlays_for_excerpts(&mut self, excerpts_removed: &[ExcerptId]) {
+        let to_remove = self
+            .inlay_map
+            .current_inlays()
+            .filter_map(|inlay| {
+                if excerpts_removed.contains(&inlay.position.excerpt_id) {
+                    Some(inlay.id)
+                } else {
+                    None
+                }
+            })
+            .collect::<Vec<_>>();
+        self.inlay_map.splice(&to_remove, Vec::new());
+    }
+
    fn tab_size(buffer: &Entity<MultiBuffer>, cx: &App) -> NonZeroU32 {
        let buffer = buffer.read(cx).as_singleton().map(|buffer| buffer.read(cx));
        let language = buffer
--- a/crates/editor/src/display_map/inlay_map.rs
+++ b/crates/editor/src/display_map/inlay_map.rs
@@ -36,7 +36,7 @@ enum Transform {

 #[derive(Debug, Clone)]
 pub struct Inlay {
-    pub(crate) id: InlayId,
+    pub id: InlayId,
    pub position: Anchor,
    pub text: text::Rope,
 }
@@ -482,6 +482,9 @@ impl InlayMap {
                };

                for inlay in &self.inlays[start_ix..] {
+                    if !inlay.position.is_valid(&buffer_snapshot) {
+                        continue;
+                    }
                    let buffer_offset = inlay.position.to_offset(&buffer_snapshot);
                    if buffer_offset > buffer_edit.new.end {
                        break;
@@ -494,9 +497,7 @@ impl InlayMap {
                        buffer_snapshot.text_summary_for_range(prefix_start..prefix_end),
                    );

-                    if inlay.position.is_valid(&buffer_snapshot) {
-                        new_transforms.push(Transform::Inlay(inlay.clone()), &());
-                    }
+                    new_transforms.push(Transform::Inlay(inlay.clone()), &());
                }

                // Apply the rest of the edit.
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -215,6 +215,7 @@ const MAX_SELECTION_HISTORY_LEN: usize = 1024;
 pub(crate) const CURSORS_VISIBLE_FOR: Duration = Duration::from_millis(2000);
 #[doc(hidden)]
 pub const CODE_ACTIONS_DEBOUNCE_TIMEOUT: Duration = Duration::from_millis(250);
+const SELECTION_HIGHLIGHT_DEBOUNCE_TIMEOUT: Duration = Duration::from_millis(100);

 pub(crate) const CODE_ACTION_TIMEOUT: Duration = Duration::from_secs(5);
 pub(crate) const FORMAT_TIMEOUT: Duration = Duration::from_secs(5);
@@ -765,7 +766,8 @@ pub struct Editor {
    next_completion_id: CompletionId,
    available_code_actions: Option<(Location, Rc<[AvailableCodeAction]>)>,
    code_actions_task: Option<Task<Result<()>>>,
-    selection_highlight_task: Option<Task<()>>,
+    quick_selection_highlight_task: Option<(Range<Anchor>, Task<()>)>,
+    debounced_selection_highlight_task: Option<(Range<Anchor>, Task<()>)>,
    document_highlights_task: Option<Task<()>>,
    linked_editing_range_task: Option<Task<Option<()>>>,
    linked_edit_ranges: linked_editing_ranges::LinkedEditingRanges,
@@ -1543,7 +1545,8 @@ impl Editor {
            code_action_providers,
            available_code_actions: Default::default(),
            code_actions_task: Default::default(),
-            selection_highlight_task: Default::default(),
+            quick_selection_highlight_task: Default::default(),
+            debounced_selection_highlight_task: Default::default(),
            document_highlights_task: Default::default(),
            linked_editing_range_task: Default::default(),
            pending_rename: Default::default(),
@@ -1715,9 +1718,9 @@ impl Editor {
        cx: &mut Context<Self>,
    ) {
        self.mouse_context_menu = Some(MouseContextMenu::new(
+            self,
            crate::mouse_context_menu::MenuPosition::PinnedToScreen(position),
            context_menu,
-            None,
            window,
            cx,
        ));
@@ -3032,6 +3035,13 @@ impl Editor {
        cx.notify();
    }

+    pub fn has_non_empty_selection(&self, cx: &mut App) -> bool {
+        self.selections
+            .all_adjusted(cx)
+            .iter()
+            .any(|selection| !selection.is_empty())
+    }
+
    pub fn has_pending_nonempty_selection(&self) -> bool {
        let pending_nonempty_selection = match self.selections.pending_anchor() {
            Some(Selection { start, end, .. }) => start != end,
@@ -4170,10 +4180,13 @@ impl Editor {
                if let Some(InlaySplice {
                    to_remove,
                    to_insert,
-                }) = self.inlay_hint_cache.remove_excerpts(excerpts_removed)
+                }) = self.inlay_hint_cache.remove_excerpts(&excerpts_removed)
                {
                    self.splice_inlays(&to_remove, to_insert, cx);
                }
+                self.display_map.update(cx, |display_map, _| {
+                    display_map.remove_inlays_for_excerpts(&excerpts_removed)
+                });
                return;
            }
            InlayHintRefreshReason::NewLinesShown => (InvalidationStrategy::None, None),
@@ -4741,19 +4754,18 @@ impl Editor {
        let suffix = &old_text[lookbehind.min(old_text.len())..];

        let selections = self.selections.all::<usize>(cx);
-        let mut edits = Vec::new();
+        let mut ranges = Vec::new();
        let mut linked_edits = HashMap::<_, Vec<_>>::default();

        for selection in &selections {
-            let edit = if selection.id == newest_anchor.id {
-                (replace_range_multibuffer.clone(), new_text.as_str())
+            let range = if selection.id == newest_anchor.id {
+                replace_range_multibuffer.clone()
            } else {
                let mut range = selection.range();
-                let mut text = new_text.as_str();

                // if prefix is present, don't duplicate it
                if snapshot.contains_str_at(range.start.saturating_sub(lookbehind), prefix) {
-                    text = &new_text[lookbehind.min(new_text.len())..];
+                    range.start = range.start.saturating_sub(lookbehind);

                    // if suffix is also present, mimic the newest cursor and replace it
                    if selection.id != newest_anchor.id
@@ -4762,10 +4774,10 @@ impl Editor {
                        range.end += lookahead;
                    }
                }
-                (range, text)
+                range
            };

-            edits.push(edit);
+            ranges.push(range);

            if !self.linked_edit_ranges.is_empty() {
                let start_anchor = snapshot.anchor_before(selection.head());
@@ -4791,19 +4803,14 @@ impl Editor {
        self.transact(window, cx, |this, window, cx| {
            if let Some(mut snippet) = snippet {
                snippet.text = new_text.to_string();
-                let ranges = edits
-                    .iter()
-                    .map(|(range, _)| range.clone())
-                    .collect::<Vec<_>>();
                this.insert_snippet(&ranges, snippet, window, cx).log_err();
            } else {
                this.buffer.update(cx, |buffer, cx| {
-                    let auto_indent = if completion.insert_text_mode == Some(InsertTextMode::AS_IS)
-                    {
-                        None
-                    } else {
-                        this.autoindent_mode.clone()
+                    let auto_indent = match completion.insert_text_mode {
+                        Some(InsertTextMode::AS_IS) => None,
+                        _ => this.autoindent_mode.clone(),
                    };
+                    let edits = ranges.into_iter().map(|range| (range, new_text.as_str()));
                    buffer.edit(edits, auto_indent, cx);
                });
            }
@@ -4857,89 +4864,6 @@ impl Editor {
        }))
    }

-    fn prepare_code_actions_task(
-        &mut self,
-        action: &ToggleCodeActions,
-        window: &mut Window,
-        cx: &mut Context<Self>,
-    ) -> Task<Option<(Entity<Buffer>, CodeActionContents)>> {
-        let snapshot = self.snapshot(window, cx);
-        let multibuffer_point = action
-            .deployed_from_indicator
-            .map(|row| DisplayPoint::new(row, 0).to_point(&snapshot))
-            .unwrap_or_else(|| self.selections.newest::<Point>(cx).head());
-
-        let Some((buffer, buffer_row)) = snapshot
-            .buffer_snapshot
-            .buffer_line_for_row(MultiBufferRow(multibuffer_point.row))
-            .and_then(|(buffer_snapshot, range)| {
-                self.buffer
-                    .read(cx)
-                    .buffer(buffer_snapshot.remote_id())
-                    .map(|buffer| (buffer, range.start.row))
-            })
-        else {
-            return Task::ready(None);
-        };
-
-        let (_, code_actions) = self
-            .available_code_actions
-            .clone()
-            .and_then(|(location, code_actions)| {
-                let snapshot = location.buffer.read(cx).snapshot();
-                let point_range = location.range.to_point(&snapshot);
-                let point_range = point_range.start.row..=point_range.end.row;
-                if point_range.contains(&buffer_row) {
-                    Some((location, code_actions))
-                } else {
-                    None
-                }
-            })
-            .unzip();
-
-        let buffer_id = buffer.read(cx).remote_id();
-        let tasks = self
-            .tasks
-            .get(&(buffer_id, buffer_row))
-            .map(|t| Arc::new(t.to_owned()));
-
-        if tasks.is_none() && code_actions.is_none() {
-            return Task::ready(None);
-        }
-
-        self.completion_tasks.clear();
-        self.discard_inline_completion(false, cx);
-
-        let task_context = tasks
-            .as_ref()
-            .zip(self.project.clone())
-            .map(|(tasks, project)| {
-                Self::build_tasks_context(&project, &buffer, buffer_row, tasks, cx)
-            });
-
-        cx.spawn_in(window, async move |_, _| {
-            let task_context = match task_context {
-                Some(task_context) => task_context.await,
-                None => None,
-            };
-            let resolved_tasks = tasks.zip(task_context).map(|(tasks, task_context)| {
-                Rc::new(ResolvedTasks {
-                    templates: tasks.resolve(&task_context).collect(),
-                    position: snapshot
-                        .buffer_snapshot
-                        .anchor_before(Point::new(multibuffer_point.row, tasks.column)),
-                })
-            });
-            Some((
-                buffer,
-                CodeActionContents {
-                    actions: code_actions,
-                    tasks: resolved_tasks,
-                },
-            ))
-        })
-    }
-
    pub fn toggle_code_actions(
        &mut self,
        action: &ToggleCodeActions,
@@ -4960,58 +4884,114 @@ impl Editor {
            }
        }
        drop(context_menu);
-
+        let snapshot = self.snapshot(window, cx);
        let deployed_from_indicator = action.deployed_from_indicator;
        let mut task = self.code_actions_task.take();
        let action = action.clone();
-
        cx.spawn_in(window, async move |editor, cx| {
            while let Some(prev_task) = task {
                prev_task.await.log_err();
                task = editor.update(cx, |this, _| this.code_actions_task.take())?;
            }

-            let context_menu_task = editor.update_in(cx, |editor, window, cx| {
-                if !editor.focus_handle.is_focused(window) {
-                    return Some(Task::ready(Ok(())));
-                }
-                let debugger_flag = cx.has_flag::<Debugger>();
-                let code_actions_task = editor.prepare_code_actions_task(&action, window, cx);
-                Some(cx.spawn_in(window, async move |editor, cx| {
-                    if let Some((buffer, code_action_contents)) = code_actions_task.await {
-                        let spawn_straight_away =
-                            code_action_contents.tasks.as_ref().map_or(false, |tasks| {
-                                tasks
-                                    .templates
-                                    .iter()
-                                    .filter(|task| {
-                                        if matches!(task.1.task_type(), task::TaskType::Debug(_)) {
-                                            debugger_flag
-                                        } else {
-                                            true
-                                        }
-                                    })
-                                    .count()
-                                    == 1
-                            }) && code_action_contents
-                                .actions
-                                .as_ref()
-                                .map_or(true, |actions| actions.is_empty());
+            let spawned_test_task = editor.update_in(cx, |editor, window, cx| {
+                if editor.focus_handle.is_focused(window) {
+                    let multibuffer_point = action
+                        .deployed_from_indicator
+                        .map(|row| DisplayPoint::new(row, 0).to_point(&snapshot))
+                        .unwrap_or_else(|| editor.selections.newest::<Point>(cx).head());
+                    let (buffer, buffer_row) = snapshot
+                        .buffer_snapshot
+                        .buffer_line_for_row(MultiBufferRow(multibuffer_point.row))
+                        .and_then(|(buffer_snapshot, range)| {
+                            editor
+                                .buffer
+                                .read(cx)
+                                .buffer(buffer_snapshot.remote_id())
+                                .map(|buffer| (buffer, range.start.row))
+                        })?;
+                    let (_, code_actions) = editor
+                        .available_code_actions
+                        .clone()
+                        .and_then(|(location, code_actions)| {
+                            let snapshot = location.buffer.read(cx).snapshot();
+                            let point_range = location.range.to_point(&snapshot);
+                            let point_range = point_range.start.row..=point_range.end.row;
+                            if point_range.contains(&buffer_row) {
+                                Some((location, code_actions))
+                            } else {
+                                None
+                            }
+                        })
+                        .unzip();
+                    let buffer_id = buffer.read(cx).remote_id();
+                    let tasks = editor
+                        .tasks
+                        .get(&(buffer_id, buffer_row))
+                        .map(|t| Arc::new(t.to_owned()));
+                    if tasks.is_none() && code_actions.is_none() {
+                        return None;
+                    }
+
+                    editor.completion_tasks.clear();
+                    editor.discard_inline_completion(false, cx);
+                    let task_context =
+                        tasks
+                            .as_ref()
+                            .zip(editor.project.clone())
+                            .map(|(tasks, project)| {
+                                Self::build_tasks_context(&project, &buffer, buffer_row, tasks, cx)
+                            });
+
+                    let debugger_flag = cx.has_flag::<Debugger>();
+
+                    Some(cx.spawn_in(window, async move |editor, cx| {
+                        let task_context = match task_context {
+                            Some(task_context) => task_context.await,
+                            None => None,
+                        };
+                        let resolved_tasks =
+                            tasks
+                                .zip(task_context)
+                                .map(|(tasks, task_context)| ResolvedTasks {
+                                    templates: tasks.resolve(&task_context).collect(),
+                                    position: snapshot.buffer_snapshot.anchor_before(Point::new(
+                                        multibuffer_point.row,
+                                        tasks.column,
+                                    )),
+                                });
+                        let spawn_straight_away = resolved_tasks.as_ref().map_or(false, |tasks| {
+                            tasks
+                                .templates
+                                .iter()
+                                .filter(|task| {
+                                    if matches!(task.1.task_type(), task::TaskType::Debug(_)) {
+                                        debugger_flag
+                                    } else {
+                                        true
+                                    }
+                                })
+                                .count()
+                                == 1
+                        }) && code_actions
+                            .as_ref()
+                            .map_or(true, |actions| actions.is_empty());
                        if let Ok(task) = editor.update_in(cx, |editor, window, cx| {
                            *editor.context_menu.borrow_mut() =
                                Some(CodeContextMenu::CodeActions(CodeActionsMenu {
                                    buffer,
-                                    actions: code_action_contents,
+                                    actions: CodeActionContents::new(
+                                        resolved_tasks,
+                                        code_actions,
+                                        cx,
+                                    ),
                                    selected_item: Default::default(),
                                    scroll_handle: UniformListScrollHandle::default(),
                                    deployed_from_indicator,
                                }));
                            if spawn_straight_away {
                                if let Some(task) = editor.confirm_code_action(
-                                    &ConfirmCodeAction {
-                                        item_ix: Some(0),
-                                        from_mouse_context_menu: false,
-                                    },
+                                    &ConfirmCodeAction { item_ix: Some(0) },
                                    window,
                                    cx,
                                ) {
@@ -5026,12 +5006,12 @@ impl Editor {
                        } else {
                            Ok(())
                        }
-                    } else {
-                        Ok(())
-                    }
-                }))
+                    }))
+                } else {
+                    Some(Task::ready(Ok(())))
+                }
            })?;
-            if let Some(task) = context_menu_task {
+            if let Some(task) = spawned_test_task {
                task.await?;
            }

@@ -5048,27 +5028,17 @@ impl Editor {
    ) -> Option<Task<Result<()>>> {
        self.hide_mouse_cursor(&HideMouseCursorOrigin::TypingAction);

-        let (action, buffer) = if action.from_mouse_context_menu {
-            if let Some(menu) = self.mouse_context_menu.take() {
-                let code_action = menu.code_action?;
-                let index = action.item_ix?;
-                let action = code_action.actions.get(index)?;
-                (action, code_action.buffer)
-            } else {
-                return None;
-            }
-        } else {
+        let actions_menu =
            if let CodeContextMenu::CodeActions(menu) = self.hide_context_menu(window, cx)? {
-                let action_ix = action.item_ix.unwrap_or(menu.selected_item);
-                let action = menu.actions.get(action_ix)?;
-                let buffer = menu.buffer;
-                (action, buffer)
+                menu
            } else {
                return None;
-            }
-        };
+            };

+        let action_ix = action.item_ix.unwrap_or(actions_menu.selected_item);
+        let action = actions_menu.actions.get(action_ix)?;
        let title = action.label();
+        let buffer = actions_menu.buffer;
        let workspace = self.workspace()?;

        match action {
@@ -5443,111 +5413,169 @@ impl Editor {
        None
    }

-    pub fn refresh_selected_text_highlights(
+    fn prepare_highlight_query_from_selection(
        &mut self,
-        window: &mut Window,
        cx: &mut Context<Editor>,
-    ) {
+    ) -> Option<(String, Range<Anchor>)> {
        if matches!(self.mode, EditorMode::SingleLine { .. }) {
-            return;
+            return None;
        }
-        self.selection_highlight_task.take();
        if !EditorSettings::get_global(cx).selection_highlight {
-            self.clear_background_highlights::<SelectedTextHighlight>(cx);
-            return;
+            return None;
        }
        if self.selections.count() != 1 || self.selections.line_mode {
-            self.clear_background_highlights::<SelectedTextHighlight>(cx);
-            return;
+            return None;
        }
        let selection = self.selections.newest::<Point>(cx);
        if selection.is_empty() || selection.start.row != selection.end.row {
-            self.clear_background_highlights::<SelectedTextHighlight>(cx);
-            return;
+            return None;
        }
-        let debounce = EditorSettings::get_global(cx).selection_highlight_debounce;
-        self.selection_highlight_task = Some(cx.spawn_in(window, async move |editor, cx| {
-            cx.background_executor()
-                .timer(Duration::from_millis(debounce))
-                .await;
-            let Some(Some(matches_task)) = editor
-                .update_in(cx, |editor, _, cx| {
-                    if editor.selections.count() != 1 || editor.selections.line_mode {
-                        editor.clear_background_highlights::<SelectedTextHighlight>(cx);
-                        return None;
-                    }
-                    let selection = editor.selections.newest::<Point>(cx);
-                    if selection.is_empty() || selection.start.row != selection.end.row {
-                        editor.clear_background_highlights::<SelectedTextHighlight>(cx);
-                        return None;
-                    }
-                    let buffer = editor.buffer().read(cx).snapshot(cx);
-                    let query = buffer.text_for_range(selection.range()).collect::<String>();
-                    if query.trim().is_empty() {
-                        editor.clear_background_highlights::<SelectedTextHighlight>(cx);
-                        return None;
-                    }
-                    Some(cx.background_spawn(async move {
-                        let mut ranges = Vec::new();
-                        let selection_anchors = selection.range().to_anchors(&buffer);
-                        for range in [buffer.anchor_before(0)..buffer.anchor_after(buffer.len())] {
-                            for (search_buffer, search_range, excerpt_id) in
-                                buffer.range_to_buffer_ranges(range)
-                            {
-                                ranges.extend(
-                                    project::search::SearchQuery::text(
-                                        query.clone(),
-                                        false,
-                                        false,
-                                        false,
-                                        Default::default(),
-                                        Default::default(),
-                                        None,
-                                    )
-                                    .unwrap()
-                                    .search(search_buffer, Some(search_range.clone()))
-                                    .await
-                                    .into_iter()
-                                    .filter_map(
-                                        |match_range| {
-                                            let start = search_buffer.anchor_after(
-                                                search_range.start + match_range.start,
-                                            );
-                                            let end = search_buffer.anchor_before(
-                                                search_range.start + match_range.end,
-                                            );
-                                            let range = Anchor::range_in_buffer(
-                                                excerpt_id,
-                                                search_buffer.remote_id(),
-                                                start..end,
-                                            );
-                                            (range != selection_anchors).then_some(range)
-                                        },
-                                    ),
-                                );
-                            }
-                        }
-                        ranges
-                    }))
-                })
-                .log_err()
-            else {
-                return;
-            };
-            let matches = matches_task.await;
+        let multi_buffer_snapshot = self.buffer().read(cx).snapshot(cx);
+        let selection_anchor_range = selection.range().to_anchors(&multi_buffer_snapshot);
+        let query = multi_buffer_snapshot
+            .text_for_range(selection_anchor_range.clone())
+            .collect::<String>();
+        if query.trim().is_empty() {
+            return None;
+        }
+        Some((query, selection_anchor_range))
+    }
+
+    fn update_selection_occurrence_highlights(
+        &mut self,
+        query_text: String,
+        query_range: Range<Anchor>,
+        multi_buffer_range_to_query: Range<Point>,
+        use_debounce: bool,
+        window: &mut Window,
+        cx: &mut Context<Editor>,
+    ) -> Task<()> {
+        let multi_buffer_snapshot = self.buffer().read(cx).snapshot(cx);
+        cx.spawn_in(window, async move |editor, cx| {
+            if use_debounce {
+                cx.background_executor()
+                    .timer(SELECTION_HIGHLIGHT_DEBOUNCE_TIMEOUT)
+                    .await;
+            }
+            let match_task = cx.background_spawn(async move {
+                let buffer_ranges = multi_buffer_snapshot
+                    .range_to_buffer_ranges(multi_buffer_range_to_query)
+                    .into_iter()
+                    .filter(|(_, excerpt_visible_range, _)| !excerpt_visible_range.is_empty());
+                let mut match_ranges = Vec::new();
+                for (buffer_snapshot, search_range, excerpt_id) in buffer_ranges {
+                    match_ranges.extend(
+                        project::search::SearchQuery::text(
+                            query_text.clone(),
+                            false,
+                            false,
+                            false,
+                            Default::default(),
+                            Default::default(),
+                            false,
+                            None,
+                        )
+                        .unwrap()
+                        .search(&buffer_snapshot, Some(search_range.clone()))
+                        .await
+                        .into_iter()
+                        .filter_map(|match_range| {
+                            let match_start = buffer_snapshot
+                                .anchor_after(search_range.start + match_range.start);
+                            let match_end =
+                                buffer_snapshot.anchor_before(search_range.start + match_range.end);
+                            let match_anchor_range = Anchor::range_in_buffer(
+                                excerpt_id,
+                                buffer_snapshot.remote_id(),
+                                match_start..match_end,
+                            );
+                            (match_anchor_range != query_range).then_some(match_anchor_range)
+                        }),
+                    );
+                }
+                match_ranges
+            });
+            let match_ranges = match_task.await;
            editor
                .update_in(cx, |editor, _, cx| {
                    editor.clear_background_highlights::<SelectedTextHighlight>(cx);
-                    if !matches.is_empty() {
+                    if !match_ranges.is_empty() {
                        editor.highlight_background::<SelectedTextHighlight>(
-                            &matches,
+                            &match_ranges,
                            |theme| theme.editor_document_highlight_bracket_background,
                            cx,
                        )
                    }
                })
                .log_err();
-        }));
+        })
+    }
+
+    fn refresh_selected_text_highlights(&mut self, window: &mut Window, cx: &mut Context<Editor>) {
+        let Some((query_text, query_range)) = self.prepare_highlight_query_from_selection(cx)
+        else {
+            self.clear_background_highlights::<SelectedTextHighlight>(cx);
+            self.quick_selection_highlight_task.take();
+            self.debounced_selection_highlight_task.take();
+            return;
+        };
+        let multi_buffer_snapshot = self.buffer().read(cx).snapshot(cx);
+        if self
+            .quick_selection_highlight_task
+            .as_ref()
+            .map_or(true, |(prev_anchor_range, _)| {
+                prev_anchor_range != &query_range
+            })
+        {
+            let multi_buffer_visible_start = self
+                .scroll_manager
+                .anchor()
+                .anchor
+                .to_point(&multi_buffer_snapshot);
+            let multi_buffer_visible_end = multi_buffer_snapshot.clip_point(
+                multi_buffer_visible_start
+                    + Point::new(self.visible_line_count().unwrap_or(0.).ceil() as u32, 0),
+                Bias::Left,
+            );
+            let multi_buffer_visible_range = multi_buffer_visible_start..multi_buffer_visible_end;
+            self.quick_selection_highlight_task = Some((
+                query_range.clone(),
+                self.update_selection_occurrence_highlights(
+                    query_text.clone(),
+                    query_range.clone(),
+                    multi_buffer_visible_range,
+                    false,
+                    window,
+                    cx,
+                ),
+            ));
+        }
+        if self
+            .debounced_selection_highlight_task
+            .as_ref()
+            .map_or(true, |(prev_anchor_range, _)| {
+                prev_anchor_range != &query_range
+            })
+        {
+            let multi_buffer_start = multi_buffer_snapshot
+                .anchor_before(0)
+                .to_point(&multi_buffer_snapshot);
+            let multi_buffer_end = multi_buffer_snapshot
+                .anchor_after(multi_buffer_snapshot.len())
+                .to_point(&multi_buffer_snapshot);
+            let multi_buffer_full_range = multi_buffer_start..multi_buffer_end;
+            self.debounced_selection_highlight_task = Some((
+                query_range.clone(),
+                self.update_selection_occurrence_highlights(
+                    query_text,
+                    query_range,
+                    multi_buffer_full_range,
+                    true,
+                    window,
+                    cx,
+                ),
+            ));
+        }
    }

    pub fn refresh_inline_completion(
@@ -8865,7 +8893,6 @@ impl Editor {
            self,
            source,
            clicked_point,
-            None,
            context_menu,
            window,
            cx,
@@ -10125,11 +10152,19 @@ impl Editor {
                                ..Point::new(row.0, buffer.line_len(row)),
                        );
                        for row in start.row + 1..=end.row {
+                            let mut line_len = buffer.line_len(MultiBufferRow(row));
+                            if row == end.row {
+                                line_len = end.column;
+                            }
+                            if line_len == 0 {
+                                trimmed_selections
+                                    .push(Point::new(row, 0)..Point::new(row, line_len));
+                                continue;
+                            }
                            let row_indent_size = buffer.indent_size_for_line(MultiBufferRow(row));
                            if row_indent_size.len >= first_indent.len {
                                trimmed_selections.push(
-                                    Point::new(row, first_indent.len)
-                                        ..Point::new(row, buffer.line_len(MultiBufferRow(row))),
+                                    Point::new(row, first_indent.len)..Point::new(row, line_len),
                                );
                            } else {
                                trimmed_selections.clear();
@@ -12519,6 +12554,45 @@ impl Editor {
            .iter()
            .map(|selection| {
                let old_range = selection.start..selection.end;
+
+                if let Some((node, _)) = buffer.syntax_ancestor(old_range.clone()) {
+                    // manually select word at selection
+                    if ["string_content", "inline"].contains(&node.kind()) {
+                        let word_range = {
+                            let display_point = buffer
+                                .offset_to_point(old_range.start)
+                                .to_display_point(&display_map);
+                            let Range { start, end } =
+                                movement::surrounding_word(&display_map, display_point);
+                            start.to_point(&display_map).to_offset(&buffer)
+                                ..end.to_point(&display_map).to_offset(&buffer)
+                        };
+                        // ignore if word is already selected
+                        if !word_range.is_empty() && old_range != word_range {
+                            let last_word_range = {
+                                let display_point = buffer
+                                    .offset_to_point(old_range.end)
+                                    .to_display_point(&display_map);
+                                let Range { start, end } =
+                                    movement::surrounding_word(&display_map, display_point);
+                                start.to_point(&display_map).to_offset(&buffer)
+                                    ..end.to_point(&display_map).to_offset(&buffer)
+                            };
+                            // only select word if start and end point belongs to same word
+                            if word_range == last_word_range {
+                                selected_larger_node = true;
+                                return Selection {
+                                    id: selection.id,
+                                    start: word_range.start,
+                                    end: word_range.end,
+                                    goal: SelectionGoal::None,
+                                    reversed: selection.reversed,
+                                };
+                            }
+                        }
+                    }
+                }
+
                let mut new_range = old_range.clone();
                let mut new_node = None;
                while let Some((node, containing_range)) = buffer.syntax_ancestor(new_range.clone())
--- a/crates/editor/src/editor_settings.rs
+++ b/crates/editor/src/editor_settings.rs
@@ -10,7 +10,6 @@ pub struct EditorSettings {
    pub cursor_shape: Option<CursorShape>,
    pub current_line_highlight: CurrentLineHighlight,
    pub selection_highlight: bool,
-    pub selection_highlight_debounce: u64,
    pub lsp_highlight_debounce: u64,
    pub hover_popover_enabled: bool,
    pub hover_popover_delay: u64,
@@ -263,10 +262,6 @@ pub struct EditorSettingsContent {
    ///
    /// Default: true
    pub selection_highlight: Option<bool>,
-    /// The debounce delay before querying highlights based on the selected text.
-    ///
-    /// Default: 75
-    pub selection_highlight_debounce: Option<u64>,
    /// The debounce delay before querying highlights from the language
    /// server based on the current cursor location.
    ///
--- a/crates/editor/src/editor_tests.rs
+++ b/crates/editor/src/editor_tests.rs
@@ -5121,6 +5121,36 @@ if is_entire_line {
        ),
        "When selecting past the indent, nothing is trimmed"
    );
+
+    cx.set_state(
+        r#"            «for selection in selections.iter() {
+            let mut start = selection.start;
+
+            let mut end = selection.end;
+            let is_entire_line = selection.is_empty();
+            if is_entire_line {
+                start = Point::new(start.row, 0);
+ˇ»                end = cmp::min(max_point, Point::new(end.row + 1, 0));
+            }
+        "#,
+    );
+    cx.update_editor(|e, window, cx| e.copy_and_trim(&CopyAndTrim, window, cx));
+    assert_eq!(
+        cx.read_from_clipboard()
+            .and_then(|item| item.text().as_deref().map(str::to_string)),
+        Some(
+            "for selection in selections.iter() {
+let mut start = selection.start;
+
+let mut end = selection.end;
+let is_entire_line = selection.is_empty();
+if is_entire_line {
+    start = Point::new(start.row, 0);
+"
+            .to_string()
+        ),
+        "Copying with stripping should ignore empty lines"
+    );
 }

 #[gpui::test]
@@ -6309,7 +6339,187 @@ async fn test_select_larger_smaller_syntax_node(cx: &mut TestAppContext) {
                use mod1::mod2::«{mod3, mod4}ˇ»;

                fn fn_1«ˇ(param1: bool, param2: &str)» {
-                    «ˇlet var1 = "text";»
+                    let var1 = "«ˇtext»";
+                }
+            "#},
+            cx,
+        );
+    });
+}
+
+#[gpui::test]
+async fn test_select_larger_smaller_syntax_node_for_string(cx: &mut TestAppContext) {
+    init_test(cx, |_| {});
+
+    let language = Arc::new(Language::new(
+        LanguageConfig::default(),
+        Some(tree_sitter_rust::LANGUAGE.into()),
+    ));
+
+    let text = r#"
+        use mod1::mod2::{mod3, mod4};
+
+        fn fn_1(param1: bool, param2: &str) {
+            let var1 = "hello world";
+        }
+    "#
+    .unindent();
+
+    let buffer = cx.new(|cx| Buffer::local(text, cx).with_language(language, cx));
+    let buffer = cx.new(|cx| MultiBuffer::singleton(buffer, cx));
+    let (editor, cx) = cx.add_window_view(|window, cx| build_editor(buffer, window, cx));
+
+    editor
+        .condition::<crate::EditorEvent>(cx, |editor, cx| !editor.buffer.read(cx).is_parsing(cx))
+        .await;
+
+    // Test 1: Cursor on a letter of a string word
+    editor.update_in(cx, |editor, window, cx| {
+        editor.change_selections(None, window, cx, |s| {
+            s.select_display_ranges([
+                DisplayPoint::new(DisplayRow(3), 17)..DisplayPoint::new(DisplayRow(3), 17)
+            ]);
+        });
+    });
+    editor.update_in(cx, |editor, window, cx| {
+        assert_text_with_selections(
+            editor,
+            indoc! {r#"
+                use mod1::mod2::{mod3, mod4};
+
+                fn fn_1(param1: bool, param2: &str) {
+                    let var1 = "hˇello world";
+                }
+            "#},
+            cx,
+        );
+        editor.select_larger_syntax_node(&SelectLargerSyntaxNode, window, cx);
+        assert_text_with_selections(
+            editor,
+            indoc! {r#"
+                use mod1::mod2::{mod3, mod4};
+
+                fn fn_1(param1: bool, param2: &str) {
+                    let var1 = "«ˇhello» world";
+                }
+            "#},
+            cx,
+        );
+    });
+
+    // Test 2: Partial selection within a word
+    editor.update_in(cx, |editor, window, cx| {
+        editor.change_selections(None, window, cx, |s| {
+            s.select_display_ranges([
+                DisplayPoint::new(DisplayRow(3), 17)..DisplayPoint::new(DisplayRow(3), 19)
+            ]);
+        });
+    });
+    editor.update_in(cx, |editor, window, cx| {
+        assert_text_with_selections(
+            editor,
+            indoc! {r#"
+                use mod1::mod2::{mod3, mod4};
+
+                fn fn_1(param1: bool, param2: &str) {
+                    let var1 = "h«elˇ»lo world";
+                }
+            "#},
+            cx,
+        );
+        editor.select_larger_syntax_node(&SelectLargerSyntaxNode, window, cx);
+        assert_text_with_selections(
+            editor,
+            indoc! {r#"
+                use mod1::mod2::{mod3, mod4};
+
+                fn fn_1(param1: bool, param2: &str) {
+                    let var1 = "«ˇhello» world";
+                }
+            "#},
+            cx,
+        );
+    });
+
+    // Test 3: Complete word already selected
+    editor.update_in(cx, |editor, window, cx| {
+        editor.change_selections(None, window, cx, |s| {
+            s.select_display_ranges([
+                DisplayPoint::new(DisplayRow(3), 16)..DisplayPoint::new(DisplayRow(3), 21)
+            ]);
+        });
+    });
+    editor.update_in(cx, |editor, window, cx| {
+        assert_text_with_selections(
+            editor,
+            indoc! {r#"
+                use mod1::mod2::{mod3, mod4};
+
+                fn fn_1(param1: bool, param2: &str) {
+                    let var1 = "«helloˇ» world";
+                }
+            "#},
+            cx,
+        );
+        editor.select_larger_syntax_node(&SelectLargerSyntaxNode, window, cx);
+        assert_text_with_selections(
+            editor,
+            indoc! {r#"
+                use mod1::mod2::{mod3, mod4};
+
+                fn fn_1(param1: bool, param2: &str) {
+                    let var1 = "«hello worldˇ»";
+                }
+            "#},
+            cx,
+        );
+    });
+
+    // Test 4: Selection spanning across words
+    editor.update_in(cx, |editor, window, cx| {
+        editor.change_selections(None, window, cx, |s| {
+            s.select_display_ranges([
+                DisplayPoint::new(DisplayRow(3), 19)..DisplayPoint::new(DisplayRow(3), 24)
+            ]);
+        });
+    });
+    editor.update_in(cx, |editor, window, cx| {
+        assert_text_with_selections(
+            editor,
+            indoc! {r#"
+                use mod1::mod2::{mod3, mod4};
+
+                fn fn_1(param1: bool, param2: &str) {
+                    let var1 = "hel«lo woˇ»rld";
+                }
+            "#},
+            cx,
+        );
+        editor.select_larger_syntax_node(&SelectLargerSyntaxNode, window, cx);
+        assert_text_with_selections(
+            editor,
+            indoc! {r#"
+                use mod1::mod2::{mod3, mod4};
+
+                fn fn_1(param1: bool, param2: &str) {
+                    let var1 = "«ˇhello world»";
+                }
+            "#},
+            cx,
+        );
+    });
+
+    // Test 5: Expansion beyond string
+    editor.update_in(cx, |editor, window, cx| {
+        editor.select_larger_syntax_node(&SelectLargerSyntaxNode, window, cx);
+        editor.select_larger_syntax_node(&SelectLargerSyntaxNode, window, cx);
+        assert_text_with_selections(
+            editor,
+            indoc! {r#"
+                use mod1::mod2::{mod3, mod4};
+
+                fn fn_1(param1: bool, param2: &str) {
+                    «ˇlet var1 = "hello world";»
                }
            "#},
            cx,
@@ -9924,7 +10134,7 @@ async fn test_completion_with_mode_specified_by_action(cx: &mut TestAppContext)
 }

 #[gpui::test]
-async fn test_completion_replacing_suffix_in_multicursors(cx: &mut TestAppContext) {
+async fn test_completion_replacing_surrounding_text_with_multicursors(cx: &mut TestAppContext) {
    init_test(cx, |_| {});
    let mut cx = EditorLspTestContext::new_rust(
        lsp::ServerCapabilities {
@@ -9938,6 +10148,8 @@ async fn test_completion_replacing_suffix_in_multicursors(cx: &mut TestAppContex
    )
    .await;

+    // scenario: surrounding text matches completion text
+    let completion_text = "to_offset";
    let initial_state = indoc! {"
        1. buf.to_offˇsuffix
        2. buf.to_offˇsuf
@@ -9968,7 +10180,6 @@ async fn test_completion_replacing_suffix_in_multicursors(cx: &mut TestAppContex

        buf.<to_off|suffix>  // newest cursor
    "};
-    let completion_text = "to_offset";
    let expected = indoc! {"
        1. buf.to_offsetˇ
        2. buf.to_offsetˇsuf
@@ -9984,24 +10195,122 @@ async fn test_completion_replacing_suffix_in_multicursors(cx: &mut TestAppContex

        buf.to_offsetˇ  // newest cursor
    "};
-
    cx.set_state(initial_state);
    cx.update_editor(|editor, window, cx| {
        editor.show_completions(&ShowCompletions { trigger: None }, window, cx);
    });
-
-    let counter = Arc::new(AtomicUsize::new(0));
    handle_completion_request_with_insert_and_replace(
        &mut cx,
        completion_marked_buffer,
        vec![completion_text],
-        counter.clone(),
+        Arc::new(AtomicUsize::new(0)),
    )
    .await;
    cx.condition(|editor, _| editor.context_menu_visible())
        .await;
-    assert_eq!(counter.load(atomic::Ordering::Acquire), 1);
+    let apply_additional_edits = cx.update_editor(|editor, window, cx| {
+        editor
+            .confirm_completion_replace(&ConfirmCompletionReplace, window, cx)
+            .unwrap()
+    });
+    cx.assert_editor_state(expected);
+    handle_resolve_completion_request(&mut cx, None).await;
+    apply_additional_edits.await.unwrap();

+    // scenario: surrounding text matches surroundings of newest cursor, inserting at the end
+    let completion_text = "foo_and_bar";
+    let initial_state = indoc! {"
+        1. ooanbˇ
+        2. zooanbˇ
+        3. ooanbˇz
+        4. zooanbˇz
+        5. ooanˇ
+        6. oanbˇ
+
+        ooanbˇ
+    "};
+    let completion_marked_buffer = indoc! {"
+        1. ooanb
+        2. zooanb
+        3. ooanbz
+        4. zooanbz
+        5. ooan
+        6. oanb
+
+        <ooanb|>
+    "};
+    let expected = indoc! {"
+        1. foo_and_barˇ
+        2. zfoo_and_barˇ
+        3. foo_and_barˇz
+        4. zfoo_and_barˇz
+        5. ooanfoo_and_barˇ
+        6. oanbfoo_and_barˇ
+
+        foo_and_barˇ
+    "};
+    cx.set_state(initial_state);
+    cx.update_editor(|editor, window, cx| {
+        editor.show_completions(&ShowCompletions { trigger: None }, window, cx);
+    });
+    handle_completion_request_with_insert_and_replace(
+        &mut cx,
+        completion_marked_buffer,
+        vec![completion_text],
+        Arc::new(AtomicUsize::new(0)),
+    )
+    .await;
+    cx.condition(|editor, _| editor.context_menu_visible())
+        .await;
+    let apply_additional_edits = cx.update_editor(|editor, window, cx| {
+        editor
+            .confirm_completion_replace(&ConfirmCompletionReplace, window, cx)
+            .unwrap()
+    });
+    cx.assert_editor_state(expected);
+    handle_resolve_completion_request(&mut cx, None).await;
+    apply_additional_edits.await.unwrap();
+
+    // scenario: surrounding text matches surroundings of newest cursor, inserted at the middle
+    // (expects the same as if it was inserted at the end)
+    let completion_text = "foo_and_bar";
+    let initial_state = indoc! {"
+        1. ooˇanb
+        2. zooˇanb
+        3. ooˇanbz
+        4. zooˇanbz
+
+        ooˇanb
+    "};
+    let completion_marked_buffer = indoc! {"
+        1. ooanb
+        2. zooanb
+        3. ooanbz
+        4. zooanbz
+
+        <oo|anb>
+    "};
+    let expected = indoc! {"
+        1. foo_and_barˇ
+        2. zfoo_and_barˇ
+        3. foo_and_barˇz
+        4. zfoo_and_barˇz
+
+        foo_and_barˇ
+    "};
+    cx.set_state(initial_state);
+    cx.update_editor(|editor, window, cx| {
+        editor.show_completions(&ShowCompletions { trigger: None }, window, cx);
+    });
+    handle_completion_request_with_insert_and_replace(
+        &mut cx,
+        completion_marked_buffer,
+        vec![completion_text],
+        Arc::new(AtomicUsize::new(0)),
+    )
+    .await;
+    cx.condition(|editor, _| editor.context_menu_visible())
+        .await;
    let apply_additional_edits = cx.update_editor(|editor, window, cx| {
        editor
            .confirm_completion_replace(&ConfirmCompletionReplace, window, cx)
@@ -12390,19 +12699,22 @@ async fn test_following_with_multiple_excerpts(cx: &mut TestAppContext) {
    // Insert some excerpts.
    leader.update(cx, |leader, cx| {
        leader.buffer.update(cx, |multibuffer, cx| {
-            let excerpt_ids = multibuffer.push_excerpts(
+            multibuffer.set_excerpts_for_path(
+                PathKey::namespaced(1, Arc::from(Path::new("b.txt"))),
                buffer_1.clone(),
-                [
-                    ExcerptRange::new(1..6),
-                    ExcerptRange::new(12..15),
-                    ExcerptRange::new(0..3),
+                vec![
+                    Point::row_range(0..3),
+                    Point::row_range(1..6),
+                    Point::row_range(12..15),
                ],
+                0,
                cx,
            );
-            multibuffer.insert_excerpts_after(
-                excerpt_ids[0],
+            multibuffer.set_excerpts_for_path(
+                PathKey::namespaced(1, Arc::from(Path::new("a.txt"))),
                buffer_2.clone(),
-                [ExcerptRange::new(8..12), ExcerptRange::new(0..6)],
+                vec![Point::row_range(0..6), Point::row_range(8..12)],
+                0,
                cx,
            );
        });
--- a/crates/editor/src/element.rs
+++ b/crates/editor/src/element.rs
@@ -2093,8 +2093,7 @@ impl EditorElement {
                })) = editor.context_menu.borrow().as_ref()
                {
                    actions
-                        .tasks
-                        .as_ref()
+                        .tasks()
                        .map(|tasks| tasks.position.to_display_point(snapshot).row())
                        .or(*deployed_from_indicator)
                } else {
--- 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-image-icon lucide-image"><rect width="18" height="18" x="3" y="3" rx="2" ry="2"/><circle cx="9" cy="9" r="2"/><path d="m21 15-3.086-3.086a2 2 0 0 0-2.828 0L6 21"/></svg>`