WIP

Avoid panicking when edit agent emits an empty old_text tag (#30030 )
Release Notes: - Fixed a panic that could sometimes occur when the agent applies edits. Co-authored-by: Nathan <nathan@zed.dev>
2025-05-06 20:25:59 +02:00 · 2025-05-06 18:20:10 +00:00 · 2025-05-06 20:16:41 +02:00 · 2025-05-06 18:07:25 +00:00 · 2025-05-06 17:53:00 +00:00 · 2025-05-06 17:50:26 +00:00
324 changed files with 38967 additions and 6855 deletions
--- a/.github/workflows/eval.yml
+++ b/.github/workflows/eval.yml
@@ -69,7 +69,7 @@ jobs:
        run: cargo build --package=eval

      - name: Run eval
-        run: cargo run --package=eval -- --repetitions=3 --concurrency=1
+        run: cargo run --package=eval -- --repetitions=8 --concurrency=1

      # Even the Linux runner is not stateful, in theory there is no need to do this cleanup.
      # But, to avoid potential issues in the future if we choose to use a stateful Linux runner and forget to add code
--- a/.zed/settings.json
+++ b/.zed/settings.json
@@ -46,5 +46,17 @@
  "formatter": "auto",
  "remove_trailing_whitespace_on_save": true,
  "ensure_final_newline_on_save": true,
-  "file_scan_exclusions": ["crates/eval/worktrees/", "crates/eval/repos/"]
+  "file_scan_exclusions": [
+    "crates/eval/worktrees/",
+    "crates/eval/repos/",
+    "**/.git",
+    "**/.svn",
+    "**/.hg",
+    "**/.jj",
+    "**/CVS",
+    "**/.DS_Store",
+    "**/Thumbs.db",
+    "**/.classpath",
+    "**/.settings"
+  ]
 }
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -56,13 +56,13 @@ dependencies = [
 "assistant_context_editor",
 "assistant_settings",
 "assistant_slash_command",
- "assistant_slash_commands",
 "assistant_tool",
 "async-watch",
 "buffer_diff",
 "chrono",
 "client",
 "collections",
+ "command_palette_hooks",
 "component",
 "context_server",
 "convert_case 0.8.0",
@@ -79,7 +79,6 @@ dependencies = [
 "heed",
 "html_to_markdown",
 "http_client",
- "indexed_docs",
 "indoc",
 "itertools 0.14.0",
 "jsonschema",
@@ -472,6 +471,68 @@ dependencies = [
 "workspace-hack",
 ]

+[[package]]
+name = "assistant"
+version = "0.1.0"
+dependencies = [
+ "anyhow",
+ "assistant_context_editor",
+ "assistant_settings",
+ "assistant_slash_command",
+ "assistant_slash_commands",
+ "assistant_tool",
+ "async-watch",
+ "client",
+ "collections",
+ "command_palette_hooks",
+ "ctor",
+ "db",
+ "editor",
+ "env_logger 0.11.8",
+ "feature_flags",
+ "fs",
+ "futures 0.3.31",
+ "gpui",
+ "indexed_docs",
+ "indoc",
+ "language",
+ "language_model",
+ "language_model_selector",
+ "languages",
+ "log",
+ "lsp",
+ "menu",
+ "multi_buffer",
+ "parking_lot",
+ "pretty_assertions",
+ "project",
+ "prompt_store",
+ "proto",
+ "rand 0.8.5",
+ "rope",
+ "rules_library",
+ "schemars",
+ "search",
+ "serde",
+ "serde_json_lenient",
+ "settings",
+ "smol",
+ "streaming_diff",
+ "telemetry",
+ "telemetry_events",
+ "terminal",
+ "terminal_view",
+ "text",
+ "theme",
+ "tree-sitter-md",
+ "ui",
+ "unindent",
+ "util",
+ "workspace",
+ "workspace-hack",
+ "zed_actions",
+]
+
 [[package]]
 name = "assistant_context_editor"
 version = "0.1.0"
@@ -486,6 +547,7 @@ dependencies = [
 "collections",
 "context_server",
 "editor",
+ "feature_flags",
 "fs",
 "futures 0.3.31",
 "fuzzy",
@@ -533,8 +595,8 @@ version = "0.1.0"
 dependencies = [
 "anthropic",
 "anyhow",
- "collections",
 "deepseek",
+ "feature_flags",
 "fs",
 "gpui",
 "indexmap",
@@ -550,7 +612,6 @@ dependencies = [
 "serde_json_lenient",
 "settings",
 "workspace-hack",
- "zed_llm_client",
 ]

 [[package]]
@@ -677,7 +738,6 @@ dependencies = [
 "language_models",
 "linkme",
 "log",
- "markdown",
 "open",
 "paths",
 "portable-pty",
@@ -2943,8 +3003,8 @@ name = "collab"
 version = "0.44.0"
 dependencies = [
 "anyhow",
+ "assistant",
 "assistant_context_editor",
- "assistant_settings",
 "assistant_slash_command",
 "assistant_tool",
 "async-stripe",
@@ -3178,6 +3238,7 @@ dependencies = [
 "gpui",
 "linkme",
 "parking_lot",
+ "strum 0.27.1",
 "theme",
 "workspace-hack",
 ]
@@ -4040,6 +4101,7 @@ dependencies = [
 "anyhow",
 "async-trait",
 "dap",
+ "futures 0.3.31",
 "gpui",
 "language",
 "lsp-types",
@@ -4333,6 +4395,7 @@ dependencies = [
 "ctor",
 "editor",
 "env_logger 0.11.8",
+ "futures 0.3.31",
 "gpui",
 "indoc",
 "language",
@@ -7798,12 +7861,9 @@ version = "0.1.0"
 dependencies = [
 "collections",
 "feature_flags",
- "futures 0.3.31",
- "fuzzy",
 "gpui",
 "language_model",
 "log",
- "ordered-float 2.10.1",
 "picker",
 "proto",
 "ui",
@@ -7844,7 +7904,6 @@ dependencies = [
 "partial-json-fixer",
 "project",
 "proto",
- "release_channel",
 "schemars",
 "serde",
 "serde_json",
@@ -7925,6 +7984,7 @@ dependencies = [
 "log",
 "lsp",
 "node_runtime",
+ "parking_lot",
 "paths",
 "pet",
 "pet-conda",
@@ -14688,6 +14748,7 @@ dependencies = [
 "log",
 "project",
 "rand 0.8.5",
+ "regex",
 "schemars",
 "search",
 "serde",
@@ -15024,6 +15085,7 @@ dependencies = [
 "client",
 "collections",
 "db",
+ "feature_flags",
 "gpui",
 "http_client",
 "notifications",
@@ -17029,18 +17091,22 @@ version = "0.1.0"
 dependencies = [
 "anyhow",
 "client",
+ "component",
 "db",
+ "documented",
 "editor",
 "fuzzy",
 "gpui",
 "install_cli",
 "language",
+ "linkme",
 "picker",
 "project",
 "schemars",
 "serde",
 "settings",
 "telemetry",
+ "theme",
 "ui",
 "util",
 "vim_mode_setting",
@@ -18092,6 +18158,7 @@ dependencies = [
 "itertools 0.14.0",
 "language",
 "log",
+ "menu",
 "node_runtime",
 "parking_lot",
 "postage",
@@ -18627,7 +18694,7 @@ dependencies = [

 [[package]]
 name = "zed"
-version = "0.185.14"
+version = "0.186.0"
 dependencies = [
 "activity_indicator",
 "agent",
@@ -18635,6 +18702,7 @@ dependencies = [
 "ashpd",
 "askpass",
 "assets",
+ "assistant",
 "assistant_context_editor",
 "assistant_settings",
 "assistant_tools",
@@ -18816,9 +18884,9 @@ dependencies = [

 [[package]]
 name = "zed_llm_client"
-version = "0.8.0"
+version = "0.7.5"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "a23b2fd00776b0c55072f389654910ceb501eb0083d7f78905ab0e5cc86949ec"
+checksum = "6fe0d60001c02d0d21a4114a13bee3a905fbb9e146ada80a90435c05fda18852"
 dependencies = [
 "anyhow",
 "serde",
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -6,6 +6,7 @@ members = [
    "crates/anthropic",
    "crates/askpass",
    "crates/assets",
+    "crates/assistant",
    "crates/assistant_context_editor",
    "crates/assistant_settings",
    "crates/assistant_slash_command",
@@ -213,6 +214,7 @@ ai = { path = "crates/ai" }
 anthropic = { path = "crates/anthropic" }
 askpass = { path = "crates/askpass" }
 assets = { path = "crates/assets" }
+assistant = { path = "crates/assistant" }
 assistant_context_editor = { path = "crates/assistant_context_editor" }
 assistant_settings = { path = "crates/assistant_settings" }
 assistant_slash_command = { path = "crates/assistant_slash_command" }
@@ -431,6 +433,7 @@ dap-types = { git = "https://github.com/zed-industries/dap-types", rev = "be69a0
 dashmap = "6.0"
 derive_more = "0.99.17"
 dirs = "4.0"
+documented = "0.9.1"
 dotenv = "0.15.0"
 ec4rs = "1.1"
 emojis = "0.6.1"
@@ -607,7 +610,7 @@ wasmtime-wasi = "29"
 which = "6.0.0"
 wit-component = "0.221"
 workspace-hack = "0.1.0"
-zed_llm_client = "0.8.0"
+zed_llm_client = "0.7.5"
 zstd = "0.11"

 [workspace.dependencies.async-stripe]
@@ -795,5 +798,6 @@ ignored = [
    "serde",
    "component",
    "linkme",
+    "documented",
    "workspace-hack",
 ]
--- a/assets/icons/document_text.svg
+++ b/assets/icons/document_text.svg
@@ -1,3 +0,0 @@
-<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 20 20" fill="currentColor" class="size-5">
-  <path fill-rule="evenodd" d="M4.5 2A1.5 1.5 0 0 0 3 3.5v13A1.5 1.5 0 0 0 4.5 18h11a1.5 1.5 0 0 0 1.5-1.5V7.621a1.5 1.5 0 0 0-.44-1.06l-4.12-4.122A1.5 1.5 0 0 0 11.378 2H4.5Zm2.25 8.5a.75.75 0 0 0 0 1.5h6.5a.75.75 0 0 0 0-1.5h-6.5Zm0 3a.75.75 0 0 0 0 1.5h6.5a.75.75 0 0 0 0-1.5h-6.5Z" clip-rule="evenodd" />
-</svg>
--- a/assets/icons/thumbs_down.svg
+++ b/assets/icons/thumbs_down.svg
@@ -1,3 +1 @@
-<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 20 20" fill="currentColor" class="size-5">
-  <path d="M18.905 12.75a1.25 1.25 0 1 1-2.5 0v-7.5a1.25 1.25 0 0 1 2.5 0v7.5ZM8.905 17v1.3c0 .268-.14.526-.395.607A2 2 0 0 1 5.905 17c0-.995.182-1.948.514-2.826.204-.54-.166-1.174-.744-1.174h-2.52c-1.243 0-2.261-1.01-2.146-2.247.193-2.08.651-4.082 1.341-5.974C2.752 3.678 3.833 3 5.005 3h3.192a3 3 0 0 1 1.341.317l2.734 1.366A3 3 0 0 0 13.613 5h1.292v7h-.963c-.685 0-1.258.482-1.612 1.068a4.01 4.01 0 0 1-2.166 1.73c-.432.143-.853.386-1.011.814-.16.432-.248.9-.248 1.388Z" />
-</svg>
+<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-thumbs-down"><path d="M17 14V2"/><path d="M9 18.12 10 14H4.17a2 2 0 0 1-1.92-2.56l2.33-8A2 2 0 0 1 6.5 2H20a2 2 0 0 1 2 2v8a2 2 0 0 1-2 2h-2.76a2 2 0 0 0-1.79 1.11L12 22a3.13 3.13 0 0 1-3-3.88Z"/></svg>
--- a/assets/icons/thumbs_up.svg
+++ b/assets/icons/thumbs_up.svg
@@ -1,3 +1 @@
-<svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 20 20" fill="currentColor" class="size-5">
-  <path d="M1 8.25a1.25 1.25 0 1 1 2.5 0v7.5a1.25 1.25 0 1 1-2.5 0v-7.5ZM11 3V1.7c0-.268.14-.526.395-.607A2 2 0 0 1 14 3c0 .995-.182 1.948-.514 2.826-.204.54.166 1.174.744 1.174h2.52c1.243 0 2.261 1.01 2.146 2.247a23.864 23.864 0 0 1-1.341 5.974C17.153 16.323 16.072 17 14.9 17h-3.192a3 3 0 0 1-1.341-.317l-2.734-1.366A3 3 0 0 0 6.292 15H5V8h.963c.685 0 1.258-.483 1.612-1.068a4.011 4.011 0 0 1 2.166-1.73c.432-.143.853-.386 1.011-.814.16-.432.248-.9.248-1.388Z" />
-</svg>
+<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-thumbs-up"><path d="M7 10v12"/><path d="M15 5.88 14 10h5.83a2 2 0 0 1 1.92 2.56l-2.33 8A2 2 0 0 1 17.5 22H4a2 2 0 0 1-2-2v-8a2 2 0 0 1 2-2h2.76a2 2 0 0 0 1.79-1.11L12 2a3.13 3.13 0 0 1 3 3.88Z"/></svg>
--- a/assets/icons/user_check.svg
+++ b/assets/icons/user_check.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-user-round-check-icon lucide-user-round-check"><path d="M2 21a8 8 0 0 1 13.292-6"/><circle cx="10" cy="8" r="5"/><path d="m16 19 2 2 4-4"/></svg>
--- a/assets/keymaps/default-linux.json
+++ b/assets/keymaps/default-linux.json
@@ -213,6 +213,21 @@
      "ctrl-shift-n": "agent::RejectAll"
    }
  },
+  {
+    "context": "AssistantPanel",
+    "bindings": {
+      "ctrl-k c": "assistant::CopyCode",
+      "ctrl-shift-e": "project_panel::ToggleFocus",
+      "ctrl-g": "search::SelectNextMatch",
+      "ctrl-shift-g": "search::SelectPreviousMatch",
+      "ctrl-alt-/": "agent::ToggleModelSelector",
+      "ctrl-k h": "assistant::DeployHistory",
+      "ctrl-k l": "agent::OpenRulesLibrary",
+      "new": "assistant::NewChat",
+      "ctrl-t": "assistant::NewChat",
+      "ctrl-n": "assistant::NewChat"
+    }
+  },
  {
    "context": "ContextEditor > Editor",
    "bindings": {
@@ -222,14 +237,11 @@
      "save": "workspace::Save",
      "ctrl->": "assistant::QuoteSelection",
      "ctrl-<": "assistant::InsertIntoEditor",
+      "ctrl-alt-/": "agent::ToggleModelSelector",
      "shift-enter": "assistant::Split",
      "ctrl-r": "assistant::CycleMessageRole",
      "enter": "assistant::ConfirmCommand",
-      "alt-enter": "editor::Newline",
-      "ctrl-k c": "assistant::CopyCode",
-      "ctrl-g": "search::SelectNextMatch",
-      "ctrl-shift-g": "search::SelectPreviousMatch",
-      "ctrl-k l": "agent::OpenRulesLibrary"
+      "alt-enter": "editor::Newline"
    }
  },
  {
@@ -246,8 +258,7 @@
      "ctrl-shift-o": "agent::ToggleNavigationMenu",
      "ctrl-shift-i": "agent::ToggleOptionsMenu",
      "shift-escape": "agent::ExpandMessageEditor",
-      "ctrl-alt-e": "agent::RemoveAllContext",
-      "ctrl-shift-e": "project_panel::ToggleFocus"
+      "ctrl-alt-e": "agent::RemoveAllContext"
    }
  },
  {
@@ -698,8 +709,8 @@
  {
    "context": "PromptEditor",
    "bindings": {
-      "ctrl-[": "agent::CyclePreviousInlineAssist",
-      "ctrl-]": "agent::CycleNextInlineAssist",
+      "ctrl-[": "assistant::CyclePreviousInlineAssist",
+      "ctrl-]": "assistant::CycleNextInlineAssist",
      "ctrl-alt-e": "agent::RemoveAllContext"
    }
  },
@@ -968,5 +979,12 @@
      "enter": "editor::Newline",
      "ctrl-enter": "menu::Confirm"
    }
+  },
+  {
+    "context": "Diagnostics",
+    "use_key_equivalents": true,
+    "bindings": {
+      "ctrl-r": "diagnostics::ToggleDiagnosticsRefresh"
+    }
  }
 ]
--- a/assets/keymaps/default-macos.json
+++ b/assets/keymaps/default-macos.json
@@ -258,6 +258,21 @@
      "shift-ctrl-r": "agent::OpenAgentDiff"
    }
  },
+  {
+    "context": "AssistantPanel",
+    "use_key_equivalents": true,
+    "bindings": {
+      "cmd-k c": "assistant::CopyCode",
+      "cmd-shift-e": "project_panel::ToggleFocus",
+      "cmd-g": "search::SelectNextMatch",
+      "cmd-shift-g": "search::SelectPreviousMatch",
+      "cmd-alt-/": "agent::ToggleModelSelector",
+      "cmd-k h": "assistant::DeployHistory",
+      "cmd-k l": "agent::OpenRulesLibrary",
+      "cmd-t": "assistant::NewChat",
+      "cmd-n": "assistant::NewChat"
+    }
+  },
  {
    "context": "ContextEditor > Editor",
    "use_key_equivalents": true,
@@ -765,8 +780,8 @@
      "cmd-shift-a": "agent::ToggleContextPicker",
      "cmd-alt-/": "agent::ToggleModelSelector",
      "cmd-alt-e": "agent::RemoveAllContext",
-      "ctrl-[": "agent::CyclePreviousInlineAssist",
-      "ctrl-]": "agent::CycleNextInlineAssist"
+      "ctrl-[": "assistant::CyclePreviousInlineAssist",
+      "ctrl-]": "assistant::CycleNextInlineAssist"
    }
  },
  {
@@ -1076,5 +1091,12 @@
      "enter": "editor::Newline",
      "cmd-enter": "menu::Confirm"
    }
+  },
+  {
+    "context": "Diagnostics",
+    "use_key_equivalents": true,
+    "bindings": {
+      "ctrl-r": "diagnostics::ToggleDiagnosticsRefresh"
+    }
  }
 ]
--- a/assets/settings/default.json
+++ b/assets/settings/default.json
@@ -307,6 +307,11 @@
    // Whether to show agent review buttons in the editor toolbar.
    "agent_review": true
  },
+  // Titlebar related settings
+  "title_bar": {
+    // Whether to show the branch icon beside branch switcher in the title bar.
+    "show_branch_icon": false
+  },
  // Scrollbar related settings
  "scrollbar": {
    // When to show the scrollbar in the editor.
@@ -605,11 +610,13 @@
    //
    // Default: main
    "fallback_branch_name": "main",
+
    // Whether to sort entries in the panel by path
    // or by status (the default).
    //
    // Default: false
    "sort_by_path": false,
+
    "scrollbar": {
      // When to show the scrollbar in the git panel.
      //
@@ -635,8 +642,6 @@
    "version": "2",
    // Whether the agent is enabled.
    "enabled": true,
-    /// What completion mode to start new threads in, if available. Can be 'normal' or 'max'.
-    "preferred_completion_mode": "normal",
    // Whether to show the agent panel button in the status bar.
    "button": true,
    // Where to dock the agent panel. Can be 'left', 'right' or 'bottom'.
@@ -659,28 +664,6 @@
      // The model to use.
      "model": "claude-3-7-sonnet-latest"
    },
-    // Additional parameters for language model requests. When making a request to a model, parameters will be taken
-    // from the last entry in this list that matches the model's provider and name. In each entry, both provider
-    // and model are optional, so that you can specify parameters for either one.
-    "model_parameters": [
-      // To set parameters for all requests to OpenAI models:
-      // {
-      //   "provider": "openai",
-      //   "temperature": 0.5
-      // }
-      //
-      // To set parameters for all requests in general:
-      // {
-      //   "temperature": 0
-      // }
-      //
-      // To set parameters for a specific provider and model:
-      // {
-      //   "provider": "zed.dev",
-      //   "model": "claude-3-7-sonnet-latest",
-      //   "temperature": 1.0
-      // }
-    ],
    // When enabled, the agent can run potentially destructive actions without asking for your confirmation.
    "always_allow_tool_actions": false,
    // When enabled, the agent will stream edits.
@@ -860,7 +843,20 @@
    //    "modal_max_width": "full"
    //
    // Default: small
-    "modal_max_width": "small"
+    "modal_max_width": "small",
+    // Determines whether the file finder should skip focus for the active file in search results.
+    // There are 2 possible values:
+    //
+    // 1. true: When searching for files, if the currently active file appears as the first result,
+    //    auto-focus will skip it and focus the second result instead.
+    //    "skip_focus_for_active_in_search": true
+    //
+    // 2. false: When searching for files, the first result will always receive focus,
+    //    even if it's the currently active file.
+    //    "skip_focus_for_active_in_search": false
+    //
+    // Default: true
+    "skip_focus_for_active_in_search": true
  },
  // Whether or not to remove any trailing whitespace from lines of a buffer
  // before saving it.
@@ -912,6 +908,8 @@
  "hard_tabs": false,
  // How many columns a tab should occupy.
  "tab_size": 4,
+  // What debuggers are preferred by default for all languages.
+  "debuggers": [],
  // Control what info is collected by Zed.
  "telemetry": {
    // Send debug info like crash reports.
@@ -943,6 +941,11 @@
      // The minimum severity of the diagnostics to show inline.
      // Shows all diagnostics when not specified.
      "max_severity": null
+    },
+    "cargo": {
+      // When enabled, Zed disables rust-analyzer's check on save and starts to query
+      // Cargo diagnostics separately.
+      "fetch_cargo_diagnostics": false
    }
  },
  // Files or globs of files that will be excluded by Zed entirely. They will be skipped during file
@@ -1326,6 +1329,9 @@
    "Elixir": {
      "language_servers": ["elixir-ls", "!next-ls", "!lexical", "..."]
    },
+    "Elm": {
+      "tab_size": 4
+    },
    "Erlang": {
      "language_servers": ["erlang-ls", "!elp", "..."]
    },
--- a/crates/activity_indicator/src/activity_indicator.rs
+++ b/crates/activity_indicator/src/activity_indicator.rs
@@ -84,19 +84,6 @@ impl ActivityIndicator {
            })
            .detach();

-            let mut status_events = languages.dap_server_binary_statuses();
-            cx.spawn(async move |this, cx| {
-                while let Some((name, status)) = status_events.next().await {
-                    this.update(cx, |this, cx| {
-                        this.statuses.retain(|s| s.name != name);
-                        this.statuses.push(ServerStatus { name, status });
-                        cx.notify();
-                    })?;
-                }
-                anyhow::Ok(())
-            })
-            .detach();
-
            cx.subscribe(
                &project.read(cx).lsp_store(),
                |_, _, event, cx| match event {
--- a/crates/agent/Cargo.toml
+++ b/crates/agent/Cargo.toml
@@ -9,7 +9,7 @@ license = "GPL-3.0-or-later"
 workspace = true

 [lib]
-path = "src/agent.rs"
+path = "src/assistant.rs"
 doctest = false

 [features]
@@ -23,13 +23,13 @@ anyhow.workspace = true
 assistant_context_editor.workspace = true
 assistant_settings.workspace = true
 assistant_slash_command.workspace = true
-assistant_slash_commands.workspace = true
 assistant_tool.workspace = true
 async-watch.workspace = true
 buffer_diff.workspace = true
 chrono.workspace = true
 client.workspace = true
 collections.workspace = true
+command_palette_hooks.workspace = true
 component.workspace = true
 context_server.workspace = true
 convert_case.workspace = true
@@ -46,7 +46,6 @@ gpui.workspace = true
 heed.workspace = true
 html_to_markdown.workspace = true
 http_client.workspace = true
-indexed_docs.workspace = true
 itertools.workspace = true
 jsonschema.workspace = true
 language.workspace = true
--- a/crates/agent/src/active_thread.rs
+++ b/crates/agent/src/active_thread.rs
@@ -1,4 +1,4 @@
-use crate::AgentPanel;
+use crate::AssistantPanel;
 use crate::context::{AgentContextHandle, RULES_ICON};
 use crate::context_picker::{ContextPicker, MentionLink};
 use crate::context_store::ContextStore;
@@ -43,6 +43,7 @@ use std::sync::Arc;
 use std::time::Duration;
 use text::ToPoint;
 use theme::ThemeSettings;
+use ui::utils::WithRemSize;
 use ui::{
    Disclosure, IconButton, KeyBinding, PopoverMenuHandle, Scrollbar, ScrollbarState, TextSize,
    Tooltip, prelude::*,
@@ -712,7 +713,7 @@ fn open_markdown_link(
                .detach_and_log_err(cx);
        }
        Some(MentionLink::Thread(thread_id)) => workspace.update(cx, |workspace, cx| {
-            if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
+            if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
                panel.update(cx, |panel, cx| {
                    panel
                        .open_thread_by_id(&thread_id, window, cx)
@@ -721,7 +722,7 @@ fn open_markdown_link(
            }
        }),
        Some(MentionLink::TextThread(path)) => workspace.update(cx, |workspace, cx| {
-            if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
+            if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
                panel.update(cx, |panel, cx| {
                    panel
                        .open_saved_prompt_editor(path, window, cx)
@@ -1211,7 +1212,8 @@ impl ActiveThread {

                                            if let Some(workspace) = workspace_handle.upgrade() {
                                                workspace.update(_cx, |workspace, cx| {
-                                                    workspace.focus_panel::<AgentPanel>(window, cx);
+                                                    workspace
+                                                        .focus_panel::<AssistantPanel>(window, cx);
                                                });
                                            }
                                        })
@@ -1414,12 +1416,8 @@ impl ActiveThread {
                        mode: None,
                        messages: vec![request_message],
                        tools: vec![],
-                        tool_choice: None,
                        stop: vec![],
-                        temperature: AssistantSettings::temperature_for_model(
-                            &configured_model.model,
-                            cx,
-                        ),
+                        temperature: None,
                    };

                    Some(configured_model.model.count_tokens(request, cx))
@@ -1783,7 +1781,8 @@ impl ActiveThread {
        let colors = cx.theme().colors();
        let editor_bg_color = colors.editor_background;

-        let open_as_markdown = IconButton::new(("open-as-markdown", ix), IconName::DocumentText)
+        let open_as_markdown = IconButton::new(("open-as-markdown", ix), IconName::FileCode)
+            .shape(ui::IconButtonShape::Square)
            .icon_size(IconSize::XSmall)
            .icon_color(Color::Ignored)
            .tooltip(Tooltip::text("Open Thread as Markdown"))
@@ -1808,16 +1807,13 @@ impl ActiveThread {
            .mt_1()
            .py_2()
            .px(RESPONSE_PADDING_X)
-            .mr_1()
-            .opacity(0.4)
-            .hover(|style| style.opacity(1.))
-            .gap_1p5()
+            .gap_1()
            .flex_wrap()
            .justify_end();
        let feedback_items = match self.thread.read(cx).message_feedback(message_id) {
            Some(feedback) => feedback_container
                .child(
-                    div().visible_on_hover("feedback_container").child(
+                    div().mr_1().visible_on_hover("feedback_container").child(
                        Label::new(match feedback {
                            ThreadFeedback::Positive => "Thanks for your feedback!",
                            ThreadFeedback::Negative => {
@@ -1830,8 +1826,11 @@ impl ActiveThread {
                )
                .child(
                    h_flex()
+                        .pr_1()
+                        .gap_1()
                        .child(
                            IconButton::new(("feedback-thumbs-up", ix), IconName::ThumbsUp)
+                                .shape(ui::IconButtonShape::Square)
                                .icon_size(IconSize::XSmall)
                                .icon_color(match feedback {
                                    ThreadFeedback::Positive => Color::Accent,
@@ -1849,6 +1848,7 @@ impl ActiveThread {
                        )
                        .child(
                            IconButton::new(("feedback-thumbs-down", ix), IconName::ThumbsDown)
+                                .shape(ui::IconButtonShape::Square)
                                .icon_size(IconSize::XSmall)
                                .icon_color(match feedback {
                                    ThreadFeedback::Positive => Color::Ignored,
@@ -1869,7 +1869,7 @@ impl ActiveThread {
                .into_any_element(),
            None => feedback_container
                .child(
-                    div().visible_on_hover("feedback_container").child(
+                    div().mr_1().visible_on_hover("feedback_container").child(
                        Label::new(
                            "Rating the thread sends all of your current conversation to the Zed team.",
                        )
@@ -1879,10 +1879,13 @@ impl ActiveThread {
                )
                .child(
                    h_flex()
+                        .pr_1()
+                        .gap_1()
                        .child(
                            IconButton::new(("feedback-thumbs-up", ix), IconName::ThumbsUp)
                                .icon_size(IconSize::XSmall)
                                .icon_color(Color::Ignored)
+                                .shape(ui::IconButtonShape::Square)
                                .tooltip(Tooltip::text("Helpful Response"))
                                .on_click(cx.listener(move |this, _, window, cx| {
                                    this.handle_feedback_click(
@@ -1897,6 +1900,7 @@ impl ActiveThread {
                            IconButton::new(("feedback-thumbs-down", ix), IconName::ThumbsDown)
                                .icon_size(IconSize::XSmall)
                                .icon_color(Color::Ignored)
+                                .shape(ui::IconButtonShape::Square)
                                .tooltip(Tooltip::text("Not Helpful"))
                                .on_click(cx.listener(move |this, _, window, cx| {
                                    this.handle_feedback_click(
@@ -2072,185 +2076,202 @@ impl ActiveThread {

        let panel_background = cx.theme().colors().panel_background;

-        v_flex()
-            .w_full()
-            .map(|parent| {
-                if let Some(checkpoint) = checkpoint.filter(|_| !is_generating) {
-                    let mut is_pending = false;
-                    let mut error = None;
-                    if let Some(last_restore_checkpoint) =
-                        self.thread.read(cx).last_restore_checkpoint()
-                    {
-                        if last_restore_checkpoint.message_id() == message_id {
-                            match last_restore_checkpoint {
-                                LastRestoreCheckpoint::Pending { .. } => is_pending = true,
-                                LastRestoreCheckpoint::Error { error: err, .. } => {
-                                    error = Some(err.clone());
+        WithRemSize::new(ThemeSettings::get_global(cx).agent_font_size(cx))
+            .size_full()
+            .child(
+                v_flex()
+                    .w_full()
+                    .map(|parent| {
+                        if let Some(checkpoint) = checkpoint.filter(|_| !is_generating) {
+                            let mut is_pending = false;
+                            let mut error = None;
+                            if let Some(last_restore_checkpoint) =
+                                self.thread.read(cx).last_restore_checkpoint()
+                            {
+                                if last_restore_checkpoint.message_id() == message_id {
+                                    match last_restore_checkpoint {
+                                        LastRestoreCheckpoint::Pending { .. } => is_pending = true,
+                                        LastRestoreCheckpoint::Error { error: err, .. } => {
+                                            error = Some(err.clone());
+                                        }
+                                    }
                                }
                            }
-                        }
-                    }

-                    let restore_checkpoint_button =
-                        Button::new(("restore-checkpoint", ix), "Restore Checkpoint")
-                            .icon(if error.is_some() {
-                                IconName::XCircle
-                            } else {
-                                IconName::Undo
-                            })
-                            .icon_size(IconSize::XSmall)
-                            .icon_position(IconPosition::Start)
-                            .icon_color(if error.is_some() {
-                                Some(Color::Error)
-                            } else {
-                                None
-                            })
-                            .label_size(LabelSize::XSmall)
-                            .disabled(is_pending)
-                            .on_click(cx.listener(move |this, _, _window, cx| {
-                                this.thread.update(cx, |thread, cx| {
-                                    thread
-                                        .restore_checkpoint(checkpoint.clone(), cx)
-                                        .detach_and_log_err(cx);
-                                });
-                            }));
+                            let restore_checkpoint_button =
+                                Button::new(("restore-checkpoint", ix), "Restore Checkpoint")
+                                    .icon(if error.is_some() {
+                                        IconName::XCircle
+                                    } else {
+                                        IconName::Undo
+                                    })
+                                    .icon_size(IconSize::XSmall)
+                                    .icon_position(IconPosition::Start)
+                                    .icon_color(if error.is_some() {
+                                        Some(Color::Error)
+                                    } else {
+                                        None
+                                    })
+                                    .label_size(LabelSize::XSmall)
+                                    .disabled(is_pending)
+                                    .on_click(cx.listener(move |this, _, _window, cx| {
+                                        this.thread.update(cx, |thread, cx| {
+                                            thread
+                                                .restore_checkpoint(checkpoint.clone(), cx)
+                                                .detach_and_log_err(cx);
+                                        });
+                                    }));

-                    let restore_checkpoint_button = if is_pending {
-                        restore_checkpoint_button
-                            .with_animation(
-                                ("pulsating-restore-checkpoint-button", ix),
-                                Animation::new(Duration::from_secs(2))
-                                    .repeat()
-                                    .with_easing(pulsating_between(0.6, 1.)),
-                                |label, delta| label.alpha(delta),
+                            let restore_checkpoint_button = if is_pending {
+                                restore_checkpoint_button
+                                    .with_animation(
+                                        ("pulsating-restore-checkpoint-button", ix),
+                                        Animation::new(Duration::from_secs(2))
+                                            .repeat()
+                                            .with_easing(pulsating_between(0.6, 1.)),
+                                        |label, delta| label.alpha(delta),
+                                    )
+                                    .into_any_element()
+                            } else if let Some(error) = error {
+                                restore_checkpoint_button
+                                    .tooltip(Tooltip::text(error.to_string()))
+                                    .into_any_element()
+                            } else {
+                                restore_checkpoint_button.into_any_element()
+                            };
+
+                            parent.child(
+                                h_flex()
+                                    .pt_2p5()
+                                    .px_2p5()
+                                    .w_full()
+                                    .gap_1()
+                                    .child(ui::Divider::horizontal())
+                                    .child(restore_checkpoint_button)
+                                    .child(ui::Divider::horizontal()),
                            )
-                            .into_any_element()
-                    } else if let Some(error) = error {
-                        restore_checkpoint_button
-                            .tooltip(Tooltip::text(error.to_string()))
-                            .into_any_element()
-                    } else {
-                        restore_checkpoint_button.into_any_element()
-                    };
-
-                    parent.child(
-                        h_flex()
-                            .pt_2p5()
-                            .px_2p5()
-                            .w_full()
-                            .gap_1()
-                            .child(ui::Divider::horizontal())
-                            .child(restore_checkpoint_button)
-                            .child(ui::Divider::horizontal()),
-                    )
-                } else {
-                    parent
-                }
-            })
-            .when(is_first_message, |parent| {
-                parent.child(self.render_rules_item(cx))
-            })
-            .child(styled_message)
-            .when(is_generating && is_last_message, |this| {
-                this.child(
-                    h_flex()
-                        .h_8()
-                        .mt_2()
-                        .mb_4()
-                        .ml_4()
-                        .py_1p5()
-                        .when_some(loading_dots, |this, loading_dots| this.child(loading_dots)),
-                )
-            })
-            .when(show_feedback, move |parent| {
-                parent.child(feedback_items).when_some(
-                    self.open_feedback_editors.get(&message_id),
-                    move |parent, feedback_editor| {
-                        let focus_handle = feedback_editor.focus_handle(cx);
-                        parent.child(
-                            v_flex()
-                                .key_context("AgentFeedbackMessageEditor")
-                                .on_action(cx.listener(move |this, _: &menu::Cancel, _, cx| {
-                                    this.open_feedback_editors.remove(&message_id);
-                                    cx.notify();
-                                }))
-                                .on_action(cx.listener(move |this, _: &menu::Confirm, _, cx| {
-                                    this.submit_feedback_message(message_id, cx);
-                                    cx.notify();
-                                }))
-                                .on_action(cx.listener(Self::confirm_editing_message))
-                                .mb_2()
-                                .mx_4()
-                                .p_2()
-                                .rounded_md()
-                                .border_1()
-                                .border_color(cx.theme().colors().border)
-                                .bg(cx.theme().colors().editor_background)
-                                .child(feedback_editor.clone())
-                                .child(
-                                    h_flex()
-                                        .gap_1()
-                                        .justify_end()
-                                        .child(
-                                            Button::new("dismiss-feedback-message", "Cancel")
-                                                .label_size(LabelSize::Small)
-                                                .key_binding(
-                                                    KeyBinding::for_action_in(
-                                                        &menu::Cancel,
-                                                        &focus_handle,
-                                                        window,
-                                                        cx,
-                                                    )
-                                                    .map(|kb| kb.size(rems_from_px(10.))),
-                                                )
-                                                .on_click(cx.listener(
-                                                    move |this, _, _window, cx| {
-                                                        this.open_feedback_editors
-                                                            .remove(&message_id);
-                                                        cx.notify();
-                                                    },
-                                                )),
-                                        )
-                                        .child(
-                                            Button::new(
-                                                "submit-feedback-message",
-                                                "Share Feedback",
-                                            )
-                                            .style(ButtonStyle::Tinted(ui::TintColor::Accent))
-                                            .label_size(LabelSize::Small)
-                                            .key_binding(
-                                                KeyBinding::for_action_in(
-                                                    &menu::Confirm,
-                                                    &focus_handle,
-                                                    window,
-                                                    cx,
-                                                )
-                                                .map(|kb| kb.size(rems_from_px(10.))),
-                                            )
-                                            .on_click(
-                                                cx.listener(move |this, _, _window, cx| {
-                                                    this.submit_feedback_message(message_id, cx);
-                                                    cx.notify()
-                                                }),
-                                            ),
-                                        ),
-                                ),
+                        } else {
+                            parent
+                        }
+                    })
+                    .when(is_first_message, |parent| {
+                        parent.child(self.render_rules_item(cx))
+                    })
+                    .child(styled_message)
+                    .when(is_generating && is_last_message, |this| {
+                        this.child(
+                            h_flex()
+                                .h_8()
+                                .mt_2()
+                                .mb_4()
+                                .ml_4()
+                                .py_1p5()
+                                .when_some(loading_dots, |this, loading_dots| {
+                                    this.child(loading_dots)
+                                }),
                        )
-                    },
-                )
-            })
-            .when(after_editing_message, |parent| {
-                // Backdrop to dim out the whole thread below the editing user message
-                parent.relative().child(
-                    div()
-                        .occlude()
-                        .absolute()
-                        .inset_0()
-                        .size_full()
-                        .bg(panel_background)
-                        .opacity(0.8),
-                )
-            })
+                    })
+                    .when(show_feedback, move |parent| {
+                        parent.child(feedback_items).when_some(
+                            self.open_feedback_editors.get(&message_id),
+                            move |parent, feedback_editor| {
+                                let focus_handle = feedback_editor.focus_handle(cx);
+                                parent.child(
+                                    v_flex()
+                                        .key_context("AgentFeedbackMessageEditor")
+                                        .on_action(cx.listener(
+                                            move |this, _: &menu::Cancel, _, cx| {
+                                                this.open_feedback_editors.remove(&message_id);
+                                                cx.notify();
+                                            },
+                                        ))
+                                        .on_action(cx.listener(
+                                            move |this, _: &menu::Confirm, _, cx| {
+                                                this.submit_feedback_message(message_id, cx);
+                                                cx.notify();
+                                            },
+                                        ))
+                                        .on_action(cx.listener(Self::confirm_editing_message))
+                                        .mb_2()
+                                        .mx_4()
+                                        .p_2()
+                                        .rounded_md()
+                                        .border_1()
+                                        .border_color(cx.theme().colors().border)
+                                        .bg(cx.theme().colors().editor_background)
+                                        .child(feedback_editor.clone())
+                                        .child(
+                                            h_flex()
+                                                .gap_1()
+                                                .justify_end()
+                                                .child(
+                                                    Button::new(
+                                                        "dismiss-feedback-message",
+                                                        "Cancel",
+                                                    )
+                                                    .label_size(LabelSize::Small)
+                                                    .key_binding(
+                                                        KeyBinding::for_action_in(
+                                                            &menu::Cancel,
+                                                            &focus_handle,
+                                                            window,
+                                                            cx,
+                                                        )
+                                                        .map(|kb| kb.size(rems_from_px(10.))),
+                                                    )
+                                                    .on_click(cx.listener(
+                                                        move |this, _, _window, cx| {
+                                                            this.open_feedback_editors
+                                                                .remove(&message_id);
+                                                            cx.notify();
+                                                        },
+                                                    )),
+                                                )
+                                                .child(
+                                                    Button::new(
+                                                        "submit-feedback-message",
+                                                        "Share Feedback",
+                                                    )
+                                                    .style(ButtonStyle::Tinted(
+                                                        ui::TintColor::Accent,
+                                                    ))
+                                                    .label_size(LabelSize::Small)
+                                                    .key_binding(
+                                                        KeyBinding::for_action_in(
+                                                            &menu::Confirm,
+                                                            &focus_handle,
+                                                            window,
+                                                            cx,
+                                                        )
+                                                        .map(|kb| kb.size(rems_from_px(10.))),
+                                                    )
+                                                    .on_click(cx.listener(
+                                                        move |this, _, _window, cx| {
+                                                            this.submit_feedback_message(
+                                                                message_id, cx,
+                                                            );
+                                                            cx.notify()
+                                                        },
+                                                    )),
+                                                ),
+                                        ),
+                                )
+                            },
+                        )
+                    })
+                    .when(after_editing_message, |parent| {
+                        // Backdrop to dim out the whole thread below the editing user message
+                        parent.relative().child(
+                            div()
+                                .occlude()
+                                .absolute()
+                                .inset_0()
+                                .size_full()
+                                .bg(panel_background)
+                                .opacity(0.8),
+                        )
+                    }),
+            )
            .into_any()
    }

@@ -3255,18 +3276,15 @@ impl ActiveThread {
            .map(|tool_use| tool_use.status.clone())
        {
            self.thread.update(cx, |thread, cx| {
-                if let Some(configured) = thread.get_or_init_configured_model(cx) {
-                    thread.run_tool(
-                        c.tool_use_id.clone(),
-                        c.ui_text.clone(),
-                        c.input.clone(),
-                        c.request.clone(),
-                        c.tool.clone(),
-                        configured.model,
-                        Some(window.window_handle()),
-                        cx,
-                    );
-                }
+                thread.run_tool(
+                    c.tool_use_id.clone(),
+                    c.ui_text.clone(),
+                    c.input.clone(),
+                    &c.messages,
+                    c.tool.clone(),
+                    Some(window.window_handle()),
+                    cx,
+                );
            });
        }
    }
@@ -3445,11 +3463,6 @@ pub(crate) fn open_active_thread_as_markdown(
                .unwrap_or_else(|| "Thread".to_string());

            let project = workspace.project().clone();
-
-            if !project.read(cx).is_local() {
-                anyhow::bail!("failed to open active thread as markdown in remote project");
-            }
-
            let buffer = project.update(cx, |project, cx| {
                project.create_local_buffer(&markdown, Some(markdown_language), cx)
            });
@@ -3527,7 +3540,7 @@ pub(crate) fn open_context(
        }

        AgentContextHandle::Thread(thread_context) => workspace.update(cx, |workspace, cx| {
-            if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
+            if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
                panel.update(cx, |panel, cx| {
                    panel.open_thread(thread_context.thread.clone(), window, cx);
                });
@@ -3536,7 +3549,7 @@ pub(crate) fn open_context(

        AgentContextHandle::TextThread(text_thread_context) => {
            workspace.update(cx, |workspace, cx| {
-                if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
+                if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
                    panel.update(cx, |panel, cx| {
                        panel.open_prompt_editor(text_thread_context.context.clone(), window, cx)
                    });
--- a/crates/agent/src/assistant.rs
+++ b/crates/agent/src/assistant.rs
@@ -0,0 +1,160 @@
+mod active_thread;
+mod agent_diff;
+mod assistant_configuration;
+mod assistant_model_selector;
+mod assistant_panel;
+mod buffer_codegen;
+mod context;
+mod context_picker;
+mod context_server_configuration;
+mod context_server_tool;
+mod context_store;
+mod context_strip;
+mod debug;
+mod history_store;
+mod inline_assistant;
+mod inline_prompt_editor;
+mod message_editor;
+mod profile_selector;
+mod terminal_codegen;
+mod terminal_inline_assistant;
+mod thread;
+mod thread_history;
+mod thread_store;
+mod tool_compatibility;
+mod tool_use;
+mod ui;
+
+use std::sync::Arc;
+
+use assistant_settings::{AgentProfileId, AssistantSettings};
+use client::Client;
+use command_palette_hooks::CommandPaletteFilter;
+use feature_flags::{Assistant2FeatureFlag, FeatureFlagAppExt};
+use fs::Fs;
+use gpui::{App, actions, impl_actions};
+use language::LanguageRegistry;
+use prompt_store::PromptBuilder;
+use schemars::JsonSchema;
+use serde::Deserialize;
+use settings::Settings as _;
+use thread::ThreadId;
+
+pub use crate::active_thread::ActiveThread;
+use crate::assistant_configuration::{AddContextServerModal, ManageProfilesModal};
+pub use crate::assistant_panel::{AssistantPanel, ConcreteAssistantPanelDelegate};
+pub use crate::context::{ContextLoadResult, LoadedContext};
+pub use crate::inline_assistant::InlineAssistant;
+pub use crate::thread::{Message, MessageSegment, Thread, ThreadEvent};
+pub use crate::thread_store::{TextThreadStore, ThreadStore};
+pub use agent_diff::{AgentDiffPane, AgentDiffToolbar};
+pub use context_store::ContextStore;
+pub use ui::preview::{all_agent_previews, get_agent_preview};
+
+actions!(
+    agent,
+    [
+        NewTextThread,
+        ToggleContextPicker,
+        ToggleNavigationMenu,
+        ToggleOptionsMenu,
+        DeleteRecentlyOpenThread,
+        ToggleProfileSelector,
+        RemoveAllContext,
+        ExpandMessageEditor,
+        OpenHistory,
+        AddContextServer,
+        RemoveSelectedThread,
+        Chat,
+        CycleNextInlineAssist,
+        CyclePreviousInlineAssist,
+        FocusUp,
+        FocusDown,
+        FocusLeft,
+        FocusRight,
+        RemoveFocusedContext,
+        AcceptSuggestedContext,
+        OpenActiveThreadAsMarkdown,
+        OpenAgentDiff,
+        Keep,
+        Reject,
+        RejectAll,
+        KeepAll,
+        Follow,
+        ResetTrialUpsell,
+    ]
+);
+
+#[derive(Default, Clone, PartialEq, Deserialize, JsonSchema)]
+pub struct NewThread {
+    #[serde(default)]
+    from_thread_id: Option<ThreadId>,
+}
+
+#[derive(PartialEq, Clone, Default, Debug, Deserialize, JsonSchema)]
+pub struct ManageProfiles {
+    #[serde(default)]
+    pub customize_tools: Option<AgentProfileId>,
+}
+
+impl ManageProfiles {
+    pub fn customize_tools(profile_id: AgentProfileId) -> Self {
+        Self {
+            customize_tools: Some(profile_id),
+        }
+    }
+}
+
+impl_actions!(agent, [NewThread, ManageProfiles]);
+
+const NAMESPACE: &str = "agent";
+
+/// Initializes the `agent` crate.
+pub fn init(
+    fs: Arc<dyn Fs>,
+    client: Arc<Client>,
+    prompt_builder: Arc<PromptBuilder>,
+    language_registry: Arc<LanguageRegistry>,
+    cx: &mut App,
+) {
+    AssistantSettings::register(cx);
+    thread_store::init(cx);
+    assistant_panel::init(cx);
+    context_server_configuration::init(language_registry, cx);
+
+    inline_assistant::init(
+        fs.clone(),
+        prompt_builder.clone(),
+        client.telemetry().clone(),
+        cx,
+    );
+    terminal_inline_assistant::init(
+        fs.clone(),
+        prompt_builder.clone(),
+        client.telemetry().clone(),
+        cx,
+    );
+    cx.observe_new(AddContextServerModal::register).detach();
+    cx.observe_new(ManageProfilesModal::register).detach();
+
+    feature_gate_agent_actions(cx);
+}
+
+fn feature_gate_agent_actions(cx: &mut App) {
+    CommandPaletteFilter::update_global(cx, |filter, _cx| {
+        filter.hide_namespace(NAMESPACE);
+    });
+
+    cx.observe_flag::<Assistant2FeatureFlag, _>(move |is_enabled, cx| {
+        if is_enabled {
+            CommandPaletteFilter::update_global(cx, |filter, _cx| {
+                filter.show_namespace(NAMESPACE);
+            });
+        } else {
+            CommandPaletteFilter::update_global(cx, |filter, _cx| {
+                filter.hide_namespace(NAMESPACE);
+            });
+        }
+    })
+    .detach();
+}
--- a/crates/agent/src/assistant_configuration.rs
+++ b/crates/agent/src/assistant_configuration.rs
@@ -30,7 +30,7 @@ pub(crate) use manage_profiles_modal::ManageProfilesModal;

 use crate::AddContextServer;

-pub struct AgentConfiguration {
+pub struct AssistantConfiguration {
    fs: Arc<dyn Fs>,
    focus_handle: FocusHandle,
    configuration_views_by_provider: HashMap<LanguageModelProviderId, AnyView>,
@@ -42,7 +42,7 @@ pub struct AgentConfiguration {
    scrollbar_state: ScrollbarState,
 }

-impl AgentConfiguration {
+impl AssistantConfiguration {
    pub fn new(
        fs: Arc<dyn Fs>,
        context_server_store: Entity<ContextServerStore>,
@@ -110,7 +110,7 @@ impl AgentConfiguration {
    }
 }

-impl Focusable for AgentConfiguration {
+impl Focusable for AssistantConfiguration {
    fn focus_handle(&self, _: &App) -> FocusHandle {
        self.focus_handle.clone()
    }
@@ -120,9 +120,9 @@ pub enum AssistantConfigurationEvent {
    NewThread(Arc<dyn LanguageModelProvider>),
 }

-impl EventEmitter<AssistantConfigurationEvent> for AgentConfiguration {}
+impl EventEmitter<AssistantConfigurationEvent> for AssistantConfiguration {}

-impl AgentConfiguration {
+impl AssistantConfiguration {
    fn render_provider_configuration_block(
        &mut self,
        provider: &Arc<dyn LanguageModelProvider>,
@@ -571,7 +571,7 @@ impl AgentConfiguration {
    }
 }

-impl Render for AgentConfiguration {
+impl Render for AssistantConfiguration {
    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
        v_flex()
            .id("assistant-configuration")
--- a/crates/agent/src/assistant_configuration/add_context_server_modal.rs
+++ b/crates/agent/src/assistant_configuration/add_context_server_modal.rs
--- a/crates/agent/src/assistant_configuration/configure_context_server_modal.rs
+++ b/crates/agent/src/assistant_configuration/configure_context_server_modal.rs
--- a/crates/agent/src/assistant_configuration/manage_profiles_modal.rs
+++ b/crates/agent/src/assistant_configuration/manage_profiles_modal.rs
@@ -18,9 +18,9 @@ use ui::{
 use util::ResultExt as _;
 use workspace::{ModalView, Workspace};

-use crate::agent_configuration::manage_profiles_modal::profile_modal_header::ProfileModalHeader;
-use crate::agent_configuration::tool_picker::{ToolPicker, ToolPickerDelegate};
-use crate::{AgentPanel, ManageProfiles, ThreadStore};
+use crate::assistant_configuration::manage_profiles_modal::profile_modal_header::ProfileModalHeader;
+use crate::assistant_configuration::tool_picker::{ToolPicker, ToolPickerDelegate};
+use crate::{AssistantPanel, ManageProfiles, ThreadStore};

 use super::tool_picker::ToolPickerMode;

@@ -115,7 +115,7 @@ impl ManageProfilesModal {
        _cx: &mut Context<Workspace>,
    ) {
        workspace.register_action(|workspace, action: &ManageProfiles, window, cx| {
-            if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
+            if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
                let fs = workspace.app_state().fs.clone();
                let thread_store = panel.read(cx).thread_store();
                let tools = thread_store.read(cx).tools();
@@ -124,7 +124,7 @@ impl ManageProfilesModal {
                    let mut this = Self::new(fs, tools, thread_store, window, cx);

                    if let Some(profile_id) = action.customize_tools.clone() {
-                        this.configure_builtin_tools(profile_id, window, cx);
+                        this.configure_tools(profile_id, window, cx);
                    }

                    this
@@ -190,7 +190,7 @@ impl ManageProfilesModal {
        self.focus_handle(cx).focus(window);
    }

-    fn configure_mcp_tools(
+    fn configure_mcps(
        &mut self,
        profile_id: AgentProfileId,
        window: &mut Window,
@@ -228,7 +228,7 @@ impl ManageProfilesModal {
        self.focus_handle(cx).focus(window);
    }

-    fn configure_builtin_tools(
+    fn configure_tools(
        &mut self,
        profile_id: AgentProfileId,
        window: &mut Window,
@@ -581,20 +581,16 @@ impl ManageProfilesModal {
                        )
                        .child(
                            div()
-                                .id("configure-builtin-tools")
+                                .id("configure-tools")
                                .track_focus(&mode.configure_tools.focus_handle)
                                .on_action({
                                    let profile_id = mode.profile_id.clone();
                                    cx.listener(move |this, _: &menu::Confirm, window, cx| {
-                                        this.configure_builtin_tools(
-                                            profile_id.clone(),
-                                            window,
-                                            cx,
-                                        );
+                                        this.configure_tools(profile_id.clone(), window, cx);
                                    })
                                })
                                .child(
-                                    ListItem::new("configure-builtin-tools-item")
+                                    ListItem::new("configure-tools")
                                        .toggle_state(
                                            mode.configure_tools
                                                .focus_handle
@@ -607,11 +603,11 @@ impl ManageProfilesModal {
                                                .size(IconSize::Small)
                                                .color(Color::Muted),
                                        )
-                                        .child(Label::new("Configure Built-in Tools"))
+                                        .child(Label::new("Configure Tools"))
                                        .on_click({
                                            let profile_id = mode.profile_id.clone();
                                            cx.listener(move |this, _, window, cx| {
-                                                this.configure_builtin_tools(
+                                                this.configure_tools(
                                                    profile_id.clone(),
                                                    window,
                                                    cx,
@@ -627,11 +623,11 @@ impl ManageProfilesModal {
                                .on_action({
                                    let profile_id = mode.profile_id.clone();
                                    cx.listener(move |this, _: &menu::Confirm, window, cx| {
-                                        this.configure_mcp_tools(profile_id.clone(), window, cx);
+                                        this.configure_mcps(profile_id.clone(), window, cx);
                                    })
                                })
                                .child(
-                                    ListItem::new("configure-mcp-tools")
+                                    ListItem::new("configure-mcps")
                                        .toggle_state(
                                            mode.configure_mcps
                                                .focus_handle
@@ -644,15 +640,11 @@ impl ManageProfilesModal {
                                                .size(IconSize::Small)
                                                .color(Color::Muted),
                                        )
-                                        .child(Label::new("Configure MCP Tools"))
+                                        .child(Label::new("Configure MCP Servers"))
                                        .on_click({
                                            let profile_id = mode.profile_id.clone();
                                            cx.listener(move |this, _, window, cx| {
-                                                this.configure_mcp_tools(
-                                                    profile_id.clone(),
-                                                    window,
-                                                    cx,
-                                                );
+                                                this.configure_mcps(profile_id.clone(), window, cx);
                                            })
                                        }),
                                ),
@@ -785,7 +777,7 @@ impl Render for ManageProfilesModal {
                    v_flex()
                        .pb_1()
                        .child(ProfileModalHeader::new(
-                            format!("{profile_name} — Configure Built-in Tools"),
+                            format!("{profile_name} — Configure Tools"),
                            Some(IconName::Cog),
                        ))
                        .child(ListSeparator)
@@ -808,7 +800,7 @@ impl Render for ManageProfilesModal {
                    v_flex()
                        .pb_1()
                        .child(ProfileModalHeader::new(
-                            format!("{profile_name} — Configure MCP Tools"),
+                            format!("{profile_name} — Configure MCP Servers"),
                            Some(IconName::Hammer),
                        ))
                        .child(ListSeparator)
--- a/crates/agent/src/assistant_configuration/manage_profiles_modal/profile_modal_header.rs
+++ b/crates/agent/src/assistant_configuration/manage_profiles_modal/profile_modal_header.rs
--- a/crates/agent/src/assistant_configuration/tool_picker.rs
+++ b/crates/agent/src/assistant_configuration/tool_picker.rs
@@ -176,7 +176,7 @@ impl PickerDelegate for ToolPickerDelegate {
    fn placeholder_text(&self, _window: &mut Window, _cx: &mut App) -> Arc<str> {
        match self.mode {
            ToolPickerMode::BuiltinTools => "Search built-in tools…",
-            ToolPickerMode::McpTools => "Search MCP tools…",
+            ToolPickerMode::McpTools => "Search MCP servers…",
        }
        .into()
    }
--- a/crates/agent/src/assistant_model_selector.rs
+++ b/crates/agent/src/assistant_model_selector.rs
@@ -17,13 +17,13 @@ pub enum ModelType {
    InlineAssistant,
 }

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

-impl AgentModelSelector {
+impl AssistantModelSelector {
    pub(crate) fn new(
        fs: Arc<dyn Fs>,
        menu_handle: PopoverMenuHandle<LanguageModelSelector>,
@@ -99,7 +99,7 @@ impl AgentModelSelector {
    }
 }

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

--- a/crates/agent/src/assistant_panel.rs
+++ b/crates/agent/src/assistant_panel.rs
@@ -9,7 +9,7 @@ use serde::{Deserialize, Serialize};

 use anyhow::{Result, anyhow};
 use assistant_context_editor::{
-    AgentPanelDelegate, AssistantContext, ConfigurationError, ContextEditor, ContextEvent,
+    AssistantContext, AssistantPanelDelegate, ConfigurationError, ContextEditor, ContextEvent,
    SlashCommandCompletionProvider, humanize_token_count, make_lsp_adapter_delegate,
    render_remaining_tokens,
 };
@@ -39,7 +39,6 @@ use search::{BufferSearchBar, buffer_search};
 use settings::{Settings, update_settings_file};
 use theme::ThemeSettings;
 use time::UtcOffset;
-use ui::utils::WithRemSize;
 use ui::{
    Banner, CheckboxWithLabel, ContextMenu, KeyBinding, PopoverMenu, PopoverMenuHandle,
    ProgressBar, Tab, Tooltip, Vector, VectorName, prelude::*,
@@ -47,20 +46,19 @@ use ui::{
 use util::{ResultExt as _, maybe};
 use workspace::dock::{DockPosition, Panel, PanelEvent};
 use workspace::{CollaboratorId, DraggedSelection, DraggedTab, ToolbarItemView, Workspace};
-use zed_actions::agent::{OpenConfiguration, OpenOnboardingModal, ResetOnboarding};
+use zed_actions::agent::OpenConfiguration;
 use zed_actions::assistant::{OpenRulesLibrary, ToggleFocus};
 use zed_actions::{DecreaseBufferFontSize, IncreaseBufferFontSize, ResetBufferFontSize};
 use zed_llm_client::UsageLimit;

 use crate::active_thread::{self, ActiveThread, ActiveThreadEvent};
-use crate::agent_configuration::{AgentConfiguration, AssistantConfigurationEvent};
 use crate::agent_diff::AgentDiff;
+use crate::assistant_configuration::{AssistantConfiguration, AssistantConfigurationEvent};
 use crate::history_store::{HistoryEntry, HistoryStore, RecentEntry};
 use crate::message_editor::{MessageEditor, MessageEditorEvent};
 use crate::thread::{Thread, ThreadError, ThreadId, TokenUsageRatio};
 use crate::thread_history::{EntryTimeFormat, PastContext, PastThread, ThreadHistory};
 use crate::thread_store::ThreadStore;
-use crate::ui::AgentOnboardingModal;
 use crate::{
    AddContextServer, AgentDiffPane, ContextStore, DeleteRecentlyOpenThread, ExpandMessageEditor,
    Follow, InlineAssistant, NewTextThread, NewThread, OpenActiveThreadAsMarkdown, OpenAgentDiff,
@@ -71,7 +69,7 @@ use crate::{
 const AGENT_PANEL_KEY: &str = "agent_panel";

 #[derive(Serialize, Deserialize)]
-struct SerializedAgentPanel {
+struct SerializedAssistantPanel {
    width: Option<Pixels>,
 }

@@ -80,40 +78,40 @@ pub fn init(cx: &mut App) {
        |workspace: &mut Workspace, _window, _cx: &mut Context<Workspace>| {
            workspace
                .register_action(|workspace, action: &NewThread, window, cx| {
-                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
+                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
                        panel.update(cx, |panel, cx| panel.new_thread(action, window, cx));
-                        workspace.focus_panel::<AgentPanel>(window, cx);
+                        workspace.focus_panel::<AssistantPanel>(window, cx);
                    }
                })
                .register_action(|workspace, _: &OpenHistory, window, cx| {
-                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
-                        workspace.focus_panel::<AgentPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
+                        workspace.focus_panel::<AssistantPanel>(window, cx);
                        panel.update(cx, |panel, cx| panel.open_history(window, cx));
                    }
                })
                .register_action(|workspace, _: &OpenConfiguration, window, cx| {
-                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
-                        workspace.focus_panel::<AgentPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
+                        workspace.focus_panel::<AssistantPanel>(window, cx);
                        panel.update(cx, |panel, cx| panel.open_configuration(window, cx));
                    }
                })
                .register_action(|workspace, _: &NewTextThread, window, cx| {
-                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
-                        workspace.focus_panel::<AgentPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
+                        workspace.focus_panel::<AssistantPanel>(window, cx);
                        panel.update(cx, |panel, cx| panel.new_prompt_editor(window, cx));
                    }
                })
                .register_action(|workspace, action: &OpenRulesLibrary, window, cx| {
-                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
-                        workspace.focus_panel::<AgentPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
+                        workspace.focus_panel::<AssistantPanel>(window, cx);
                        panel.update(cx, |panel, cx| {
                            panel.deploy_rules_library(action, window, cx)
                        });
                    }
                })
                .register_action(|workspace, _: &OpenAgentDiff, window, cx| {
-                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
-                        workspace.focus_panel::<AgentPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
+                        workspace.focus_panel::<AssistantPanel>(window, cx);
                        let thread = panel.read(cx).thread.read(cx).thread().clone();
                        AgentDiffPane::deploy_in_workspace(thread, workspace, window, cx);
                    }
@@ -122,8 +120,8 @@ pub fn init(cx: &mut App) {
                    workspace.follow(CollaboratorId::Agent, window, cx);
                })
                .register_action(|workspace, _: &ExpandMessageEditor, window, cx| {
-                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
-                        workspace.focus_panel::<AgentPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
+                        workspace.focus_panel::<AssistantPanel>(window, cx);
                        panel.update(cx, |panel, cx| {
                            panel.message_editor.update(cx, |editor, cx| {
                                editor.expand_message_editor(&ExpandMessageEditor, window, cx);
@@ -132,28 +130,21 @@ pub fn init(cx: &mut App) {
                    }
                })
                .register_action(|workspace, _: &ToggleNavigationMenu, window, cx| {
-                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
-                        workspace.focus_panel::<AgentPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
+                        workspace.focus_panel::<AssistantPanel>(window, cx);
                        panel.update(cx, |panel, cx| {
                            panel.toggle_navigation_menu(&ToggleNavigationMenu, window, cx);
                        });
                    }
                })
                .register_action(|workspace, _: &ToggleOptionsMenu, window, cx| {
-                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
-                        workspace.focus_panel::<AgentPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
+                        workspace.focus_panel::<AssistantPanel>(window, cx);
                        panel.update(cx, |panel, cx| {
                            panel.toggle_options_menu(&ToggleOptionsMenu, window, cx);
                        });
                    }
                })
-                .register_action(|workspace, _: &OpenOnboardingModal, window, cx| {
-                    AgentOnboardingModal::toggle(workspace, window, cx)
-                })
-                .register_action(|_workspace, _: &ResetOnboarding, window, cx| {
-                    window.dispatch_action(workspace::RestoreBanner.boxed_clone(), cx);
-                    window.refresh();
-                })
                .register_action(|_workspace, _: &ResetTrialUpsell, _window, cx| {
                    set_trial_upsell_dismissed(false, cx);
                });
@@ -178,21 +169,7 @@ enum ActiveView {
    Configuration,
 }

-enum WhichFontSize {
-    AgentFont,
-    BufferFont,
-    None,
-}
-
 impl ActiveView {
-    pub fn which_font_size_used(&self) -> WhichFontSize {
-        match self {
-            ActiveView::Thread { .. } | ActiveView::History => WhichFontSize::AgentFont,
-            ActiveView::PromptEditor { .. } => WhichFontSize::BufferFont,
-            ActiveView::Configuration => WhichFontSize::None,
-        }
-    }
-
    pub fn thread(thread: Entity<Thread>, window: &mut Window, cx: &mut App) -> Self {
        let summary = thread.read(cx).summary_or_default();

@@ -335,7 +312,7 @@ impl ActiveView {
    }
 }

-pub struct AgentPanel {
+pub struct AssistantPanel {
    workspace: WeakEntity<Workspace>,
    user_store: Entity<UserStore>,
    project: Entity<Project>,
@@ -349,7 +326,7 @@ pub struct AgentPanel {
    context_store: Entity<TextThreadStore>,
    prompt_store: Option<Entity<PromptStore>>,
    inline_assist_context_store: Entity<crate::context_store::ContextStore>,
-    configuration: Option<Entity<AgentConfiguration>>,
+    configuration: Option<Entity<AssistantConfiguration>>,
    configuration_subscription: Option<Subscription>,
    local_timezone: UtcOffset,
    active_view: ActiveView,
@@ -366,14 +343,14 @@ pub struct AgentPanel {
    _trial_markdown: Entity<Markdown>,
 }

-impl AgentPanel {
+impl AssistantPanel {
    fn serialize(&mut self, cx: &mut Context<Self>) {
        let width = self.width;
        self.pending_serialization = Some(cx.background_spawn(async move {
            KEY_VALUE_STORE
                .write_kvp(
                    AGENT_PANEL_KEY.into(),
-                    serde_json::to_string(&SerializedAgentPanel { width })?,
+                    serde_json::to_string(&SerializedAssistantPanel { width })?,
                )
                .await?;
            anyhow::Ok(())
@@ -423,7 +400,7 @@ impl AgentPanel {
                .log_err()
                .flatten()
            {
-                Some(serde_json::from_str::<SerializedAgentPanel>(&panel)?)
+                Some(serde_json::from_str::<SerializedAssistantPanel>(&panel)?)
            } else {
                None
            };
@@ -491,6 +468,7 @@ impl AgentPanel {
                thread_store.downgrade(),
                context_store.downgrade(),
                thread.clone(),
+                agent_panel_dock_position(cx),
                window,
                cx,
            )
@@ -509,7 +487,6 @@ impl AgentPanel {
                thread_store.clone(),
                context_store.clone(),
                [RecentEntry::Thread(thread_id, thread.clone())],
-                window,
                cx,
            )
        });
@@ -764,9 +741,9 @@ impl AgentPanel {
        });

        if let Some(other_thread_id) = action.from_thread_id.clone() {
-            let other_thread_task = self.thread_store.update(cx, |this, cx| {
-                this.open_thread(&other_thread_id, window, cx)
-            });
+            let other_thread_task = self
+                .thread_store
+                .update(cx, |this, cx| this.open_thread(&other_thread_id, cx));

            cx.spawn({
                let context_store = context_store.clone();
@@ -821,6 +798,7 @@ impl AgentPanel {
                self.thread_store.downgrade(),
                self.context_store.downgrade(),
                thread,
+                agent_panel_dock_position(cx),
                window,
                cx,
            )
@@ -966,7 +944,7 @@ impl AgentPanel {
    ) -> Task<Result<()>> {
        let open_thread_task = self
            .thread_store
-            .update(cx, |this, cx| this.open_thread(thread_id, window, cx));
+            .update(cx, |this, cx| this.open_thread(thread_id, cx));
        cx.spawn_in(window, async move |this, cx| {
            let thread = open_thread_task.await?;
            this.update_in(cx, |this, window, cx| {
@@ -1029,6 +1007,7 @@ impl AgentPanel {
                self.thread_store.downgrade(),
                self.context_store.downgrade(),
                thread,
+                agent_panel_dock_position(cx),
                window,
                cx,
            )
@@ -1085,7 +1064,7 @@ impl AgentPanel {
        _: &mut Window,
        cx: &mut Context<Self>,
    ) {
-        self.handle_font_size_action(action.persist, px(1.0), cx);
+        self.adjust_font_size(action.persist, px(1.0), cx);
    }

    pub fn decrease_font_size(
@@ -1094,36 +1073,21 @@ impl AgentPanel {
        _: &mut Window,
        cx: &mut Context<Self>,
    ) {
-        self.handle_font_size_action(action.persist, px(-1.0), cx);
+        self.adjust_font_size(action.persist, px(-1.0), cx);
    }

-    fn handle_font_size_action(&mut self, persist: bool, delta: Pixels, cx: &mut Context<Self>) {
-        match self.active_view.which_font_size_used() {
-            WhichFontSize::AgentFont => {
-                if persist {
-                    update_settings_file::<ThemeSettings>(
-                        self.fs.clone(),
-                        cx,
-                        move |settings, cx| {
-                            let agent_font_size =
-                                ThemeSettings::get_global(cx).agent_font_size(cx) + delta;
-                            let _ = settings
-                                .agent_font_size
-                                .insert(theme::clamp_font_size(agent_font_size).0);
-                        },
-                    );
-                } else {
-                    theme::adjust_agent_font_size(cx, |size| {
-                        *size += delta;
-                    });
-                }
-            }
-            WhichFontSize::BufferFont => {
-                // Prompt editor uses the buffer font size, so allow the action to propagate to the
-                // default handler that changes that font size.
-                cx.propagate();
-            }
-            WhichFontSize::None => {}
+    fn adjust_font_size(&mut self, persist: bool, delta: Pixels, cx: &mut Context<Self>) {
+        if persist {
+            update_settings_file::<ThemeSettings>(self.fs.clone(), cx, move |settings, cx| {
+                let agent_font_size = ThemeSettings::get_global(cx).agent_font_size(cx) + delta;
+                let _ = settings
+                    .agent_font_size
+                    .insert(theme::clamp_font_size(agent_font_size).0);
+            });
+        } else {
+            theme::adjust_agent_font_size(cx, |size| {
+                *size += delta;
+            });
        }
    }

@@ -1163,13 +1127,15 @@ impl AgentPanel {

        self.set_active_view(ActiveView::Configuration, window, cx);
        self.configuration =
-            Some(cx.new(|cx| AgentConfiguration::new(fs, context_server_store, tools, window, cx)));
+            Some(cx.new(|cx| {
+                AssistantConfiguration::new(fs, context_server_store, tools, window, cx)
+            }));

        if let Some(configuration) = self.configuration.as_ref() {
            self.configuration_subscription = Some(cx.subscribe_in(
                configuration,
                window,
-                Self::handle_agent_configuration_event,
+                Self::handle_assistant_configuration_event,
            ));

            configuration.focus_handle(cx).focus(window);
@@ -1199,9 +1165,9 @@ impl AgentPanel {
            .detach_and_log_err(cx);
    }

-    fn handle_agent_configuration_event(
+    fn handle_assistant_configuration_event(
        &mut self,
-        _entity: &Entity<AgentConfiguration>,
+        _entity: &Entity<AssistantConfiguration>,
        event: &AssistantConfigurationEvent,
        window: &mut Window,
        cx: &mut Context<Self>,
@@ -1314,7 +1280,7 @@ impl AgentPanel {
    }
 }

-impl Focusable for AgentPanel {
+impl Focusable for AssistantPanel {
    fn focus_handle(&self, cx: &App) -> FocusHandle {
        match &self.active_view {
            ActiveView::Thread { .. } => self.message_editor.focus_handle(cx),
@@ -1339,9 +1305,9 @@ fn agent_panel_dock_position(cx: &App) -> DockPosition {
    }
 }

-impl EventEmitter<PanelEvent> for AgentPanel {}
+impl EventEmitter<PanelEvent> for AssistantPanel {}

-impl Panel for AgentPanel {
+impl Panel for AssistantPanel {
    fn persistent_name() -> &'static str {
        "AgentPanel"
    }
@@ -1355,6 +1321,10 @@ impl Panel for AgentPanel {
    }

    fn set_position(&mut self, position: DockPosition, _: &mut Window, cx: &mut Context<Self>) {
+        self.message_editor.update(cx, |message_editor, cx| {
+            message_editor.set_dock_position(position, cx);
+        });
+
        settings::update_settings_file::<AssistantSettings>(
            self.fs.clone(),
            cx,
@@ -1416,7 +1386,7 @@ impl Panel for AgentPanel {
    }
 }

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

@@ -1492,7 +1462,6 @@ impl AgentPanel {
        let thread = active_thread.thread().read(cx);
        let thread_id = thread.id().clone();
        let is_empty = active_thread.is_empty();
-        let editor_empty = self.message_editor.read(cx).is_editor_fully_empty(cx);
        let last_usage = active_thread.thread().read(cx).last_usage().or_else(|| {
            maybe!({
                let amount = user_store.model_request_usage_amount()?;
@@ -1515,7 +1484,7 @@ impl AgentPanel {
        let account_url = zed_urls::account_url(cx);

        let show_token_count = match &self.active_view {
-            ActiveView::Thread { .. } => !is_empty || !editor_empty,
+            ActiveView::Thread { .. } => !is_empty,
            ActiveView::PromptEditor { .. } => true,
            _ => false,
        };
@@ -1835,10 +1804,6 @@ impl AgentPanel {
    }

    fn should_render_upsell(&self, cx: &mut Context<Self>) -> bool {
-        if !matches!(self.active_view, ActiveView::Thread { .. }) {
-            return false;
-        }
-
        if self.hide_trial_upsell || dismissed_trial_upsell() {
            return false;
        }
@@ -1975,9 +1940,9 @@ impl AgentPanel {
                                                    .style(ButtonStyle::Transparent)
                                                    .color(Color::Muted)
                                                    .on_click({
-                                                        let agent_panel = cx.entity();
+                                                        let assistant_panel = cx.entity();
                                                        move |_, _, cx| {
-                                                            agent_panel.update(
+                                                            assistant_panel.update(
                                                                cx,
                                                                |this, cx| {
                                                                    let hidden =
@@ -2336,13 +2301,14 @@ impl AgentPanel {
            ""
        };

-        let banner = Banner::new()
-            .severity(ui::Severity::Info)
-            .child(h_flex().child(Label::new(format!(
-                "Consecutive tool use limit reached.{max_mode_upsell}"
-            ))));
-
-        Some(div().px_2().pb_2().child(banner).into_any_element())
+        Some(
+            Banner::new()
+                .severity(ui::Severity::Info)
+                .child(h_flex().child(Label::new(format!(
+                    "Consecutive tool use limit reached.{max_mode_upsell}"
+                ))))
+                .into_any_element(),
+        )
    }

    fn render_last_error(&self, cx: &mut Context<Self>) -> Option<AnyElement> {
@@ -2581,46 +2547,6 @@ impl AgentPanel {
            .into_any()
    }

-    fn render_prompt_editor(
-        &self,
-        context_editor: &Entity<ContextEditor>,
-        buffer_search_bar: &Entity<BufferSearchBar>,
-        window: &mut Window,
-        cx: &mut Context<Self>,
-    ) -> Div {
-        let mut registrar = buffer_search::DivRegistrar::new(
-            |this, _, _cx| match &this.active_view {
-                ActiveView::PromptEditor {
-                    buffer_search_bar, ..
-                } => Some(buffer_search_bar.clone()),
-                _ => None,
-            },
-            cx,
-        );
-        BufferSearchBar::register(&mut registrar);
-        registrar
-            .into_div()
-            .size_full()
-            .relative()
-            .map(|parent| {
-                buffer_search_bar.update(cx, |buffer_search_bar, cx| {
-                    if buffer_search_bar.is_dismissed() {
-                        return parent;
-                    }
-                    parent.child(
-                        div()
-                            .p(DynamicSpacing::Base08.rems(cx))
-                            .border_b_1()
-                            .border_color(cx.theme().colors().border_variant)
-                            .bg(cx.theme().colors().editor_background)
-                            .child(buffer_search_bar.render(window, cx)),
-                    )
-                })
-            })
-            .child(context_editor.clone())
-            .child(self.render_drag_target(cx))
-    }
-
    fn render_drag_target(&self, cx: &Context<Self>) -> Div {
        let is_local = self.project.read(cx).is_local();
        div()
@@ -2742,18 +2668,9 @@ impl AgentPanel {
    }
 }

-impl Render for AgentPanel {
+impl Render for AssistantPanel {
    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
-        // WARNING: Changes to this element hierarchy can have
-        // non-obvious implications to the layout of children.
-        //
-        // If you need to change it, please confirm:
-        // - The message editor expands (⌘esc) correctly
-        // - When expanded, the buttons at the bottom of the panel are displayed correctly
-        // - Font size works as expected and can be changed with ⌘+/⌘-
-        // - Scrolling in all views works as expected
-        // - Files can be dropped into the panel
-        let content = v_flex()
+        v_flex()
            .key_context(self.key_context())
            .justify_between()
            .size_full()
@@ -2779,36 +2696,59 @@ impl Render for AgentPanel {
            .child(self.render_toolbar(window, cx))
            .children(self.render_trial_upsell(window, cx))
            .map(|parent| match &self.active_view {
-                ActiveView::Thread { .. } => parent
-                    .relative()
-                    .child(self.render_active_thread_or_empty_state(window, cx))
-                    .children(self.render_tool_use_limit_reached(cx))
-                    .child(h_flex().child(self.message_editor.clone()))
-                    .children(self.render_last_error(cx))
-                    .child(self.render_drag_target(cx)),
+                ActiveView::Thread { .. } => parent.child(
+                    v_flex()
+                        .relative()
+                        .justify_between()
+                        .size_full()
+                        .child(self.render_active_thread_or_empty_state(window, cx))
+                        .children(self.render_tool_use_limit_reached(cx))
+                        .child(h_flex().child(self.message_editor.clone()))
+                        .children(self.render_last_error(cx))
+                        .child(self.render_drag_target(cx)),
+                ),
                ActiveView::History => parent.child(self.history.clone()),
                ActiveView::PromptEditor {
                    context_editor,
                    buffer_search_bar,
                    ..
-                } => parent.child(self.render_prompt_editor(
-                    context_editor,
-                    buffer_search_bar,
-                    window,
-                    cx,
-                )),
+                } => {
+                    let mut registrar = buffer_search::DivRegistrar::new(
+                        |this, _, _cx| match &this.active_view {
+                            ActiveView::PromptEditor {
+                                buffer_search_bar, ..
+                            } => Some(buffer_search_bar.clone()),
+                            _ => None,
+                        },
+                        cx,
+                    );
+                    BufferSearchBar::register(&mut registrar);
+                    parent.child(
+                        registrar
+                            .into_div()
+                            .size_full()
+                            .relative()
+                            .map(|parent| {
+                                buffer_search_bar.update(cx, |buffer_search_bar, cx| {
+                                    if buffer_search_bar.is_dismissed() {
+                                        return parent;
+                                    }
+                                    parent.child(
+                                        div()
+                                            .p(DynamicSpacing::Base08.rems(cx))
+                                            .border_b_1()
+                                            .border_color(cx.theme().colors().border_variant)
+                                            .bg(cx.theme().colors().editor_background)
+                                            .child(buffer_search_bar.render(window, cx)),
+                                    )
+                                })
+                            })
+                            .child(context_editor.clone())
+                            .child(self.render_drag_target(cx)),
+                    )
+                }
                ActiveView::Configuration => parent.children(self.configuration.clone()),
-            });
-
-        match self.active_view.which_font_size_used() {
-            WhichFontSize::AgentFont => {
-                WithRemSize::new(ThemeSettings::get_global(cx).agent_font_size(cx))
-                    .size_full()
-                    .child(content)
-                    .into_any()
-            }
-            _ => content.into_any(),
-        }
+            })
    }
 }

@@ -2857,26 +2797,28 @@ impl rules_library::InlineAssistDelegate for PromptLibraryInlineAssist {
        })
    }

-    fn focus_agent_panel(
+    fn focus_assistant_panel(
        &self,
        workspace: &mut Workspace,
        window: &mut Window,
        cx: &mut Context<Workspace>,
    ) -> bool {
-        workspace.focus_panel::<AgentPanel>(window, cx).is_some()
+        workspace
+            .focus_panel::<AssistantPanel>(window, cx)
+            .is_some()
    }
 }

 pub struct ConcreteAssistantPanelDelegate;

-impl AgentPanelDelegate for ConcreteAssistantPanelDelegate {
+impl AssistantPanelDelegate for ConcreteAssistantPanelDelegate {
    fn active_context_editor(
        &self,
        workspace: &mut Workspace,
        _window: &mut Window,
        cx: &mut Context<Workspace>,
    ) -> Option<Entity<ContextEditor>> {
-        let panel = workspace.panel::<AgentPanel>(cx)?;
+        let panel = workspace.panel::<AssistantPanel>(cx)?;
        panel.read(cx).active_context_editor()
    }

@@ -2887,7 +2829,7 @@ impl AgentPanelDelegate for ConcreteAssistantPanelDelegate {
        window: &mut Window,
        cx: &mut Context<Workspace>,
    ) -> Task<Result<()>> {
-        let Some(panel) = workspace.panel::<AgentPanel>(cx) else {
+        let Some(panel) = workspace.panel::<AssistantPanel>(cx) else {
            return Task::ready(Err(anyhow!("Agent panel not found")));
        };

@@ -2914,12 +2856,12 @@ impl AgentPanelDelegate for ConcreteAssistantPanelDelegate {
        window: &mut Window,
        cx: &mut Context<Workspace>,
    ) {
-        let Some(panel) = workspace.panel::<AgentPanel>(cx) else {
+        let Some(panel) = workspace.panel::<AssistantPanel>(cx) else {
            return;
        };

        if !panel.focus_handle(cx).contains_focused(window, cx) {
-            workspace.toggle_panel_focus::<AgentPanel>(window, cx);
+            workspace.toggle_panel_focus::<AssistantPanel>(window, cx);
        }

        panel.update(cx, |_, cx| {
--- a/crates/agent/src/buffer_codegen.rs
+++ b/crates/agent/src/buffer_codegen.rs
@@ -2,7 +2,6 @@ use crate::context::ContextLoadResult;
 use crate::inline_prompt_editor::CodegenStatus;
 use crate::{context::load_context, context_store::ContextStore};
 use anyhow::Result;
-use assistant_settings::AssistantSettings;
 use client::telemetry::Telemetry;
 use collections::HashSet;
 use editor::{Anchor, AnchorRangeExt, MultiBuffer, MultiBufferSnapshot, ToOffset as _, ToPoint};
@@ -384,7 +383,7 @@ impl CodegenAlternative {
            if user_prompt.trim().to_lowercase() == "delete" {
                async { Ok(LanguageModelTextStream::default()) }.boxed_local()
            } else {
-                let request = self.build_request(&model, user_prompt, cx)?;
+                let request = self.build_request(user_prompt, cx)?;
                cx.spawn(async move |_, cx| model.stream_completion_text(request.await, &cx).await)
                    .boxed_local()
            };
@@ -394,7 +393,6 @@ impl CodegenAlternative {

    fn build_request(
        &self,
-        model: &Arc<dyn LanguageModel>,
        user_prompt: String,
        cx: &mut App,
    ) -> Result<Task<LanguageModelRequest>> {
@@ -443,8 +441,6 @@ impl CodegenAlternative {
            }
        });

-        let temperature = AssistantSettings::temperature_for_model(&model, cx);
-
        Ok(cx.spawn(async move |_cx| {
            let mut request_message = LanguageModelRequestMessage {
                role: Role::User,
@@ -466,9 +462,8 @@ impl CodegenAlternative {
                prompt_id: None,
                mode: None,
                tools: Vec::new(),
-                tool_choice: None,
                stop: Vec::new(),
-                temperature,
+                temperature: None,
                messages: vec![request_message],
            }
        }))
--- a/crates/agent/src/context_picker.rs
+++ b/crates/agent/src/context_picker.rs
@@ -36,7 +36,7 @@ use ui::{
 use uuid::Uuid;
 use workspace::{Workspace, notifications::NotifyResultExt};

-use crate::AgentPanel;
+use crate::AssistantPanel;
 use crate::context::RULES_ICON;
 use crate::context_store::ContextStore;
 use crate::thread::ThreadId;
@@ -425,9 +425,9 @@ impl ContextPicker {
                        render_thread_context_entry(&view_thread, context_store.clone(), cx)
                            .into_any()
                    },
-                    move |window, cx| {
+                    move |_window, cx| {
                        context_picker.update(cx, |this, cx| {
-                            this.add_recent_thread(thread.clone(), window, cx)
+                            this.add_recent_thread(thread.clone(), cx)
                                .detach_and_log_err(cx);
                        })
                    },
@@ -459,7 +459,6 @@ impl ContextPicker {
    fn add_recent_thread(
        &self,
        entry: ThreadContextEntry,
-        window: &mut Window,
        cx: &mut Context<Self>,
    ) -> Task<Result<()>> {
        let Some(context_store) = self.context_store.upgrade() else {
@@ -477,7 +476,7 @@ impl ContextPicker {
                };

                let open_thread_task =
-                    thread_store.update(cx, |this, cx| this.open_thread(&id, window, cx));
+                    thread_store.update(cx, |this, cx| this.open_thread(&id, cx));
                cx.spawn(async move |this, cx| {
                    let thread = open_thread_task.await?;
                    context_store.update(cx, |context_store, cx| {
@@ -648,7 +647,7 @@ fn recent_context_picker_entries(
    let current_threads = context_store.read(cx).thread_ids();

    let active_thread_id = workspace
-        .panel::<AgentPanel>(cx)
+        .panel::<AssistantPanel>(cx)
        .and_then(|panel| Some(panel.read(cx).active_thread()?.read(cx).id()));

    if let Some((thread_store, text_thread_store)) = thread_store
--- a/crates/agent/src/context_picker/completion_provider.rs
+++ b/crates/agent/src/context_picker/completion_provider.rs
@@ -438,15 +438,15 @@ impl ContextPickerCompletionProvider {
                new_text_len,
                editor.clone(),
                context_store.clone(),
-                move |window, cx| match &thread_entry {
+                move |cx| match &thread_entry {
                    ThreadContextEntry::Thread { id, .. } => {
                        let thread_id = id.clone();
                        let context_store = context_store.clone();
                        let thread_store = thread_store.clone();
-                        window.spawn::<_, Option<_>>(cx, async move |cx| {
+                        cx.spawn::<_, Option<_>>(async move |cx| {
                            let thread: Entity<Thread> = thread_store
-                                .update_in(cx, |thread_store, window, cx| {
-                                    thread_store.open_thread(&thread_id, window, cx)
+                                .update(cx, |thread_store, cx| {
+                                    thread_store.open_thread(&thread_id, cx)
                                })
                                .ok()?
                                .await
@@ -507,7 +507,7 @@ impl ContextPickerCompletionProvider {
                new_text_len,
                editor.clone(),
                context_store.clone(),
-                move |_, cx| {
+                move |cx| {
                    let user_prompt_id = rules.prompt_id;
                    let context = context_store.update(cx, |context_store, cx| {
                        context_store.add_rules(user_prompt_id, false, cx)
@@ -544,7 +544,7 @@ impl ContextPickerCompletionProvider {
                new_text_len,
                editor.clone(),
                context_store.clone(),
-                move |_, cx| {
+                move |cx| {
                    let context_store = context_store.clone();
                    let http_client = http_client.clone();
                    let url_to_fetch = url_to_fetch.clone();
@@ -629,7 +629,7 @@ impl ContextPickerCompletionProvider {
                new_text_len,
                editor,
                context_store.clone(),
-                move |_, cx| {
+                move |cx| {
                    if is_directory {
                        Task::ready(
                            context_store
@@ -700,7 +700,7 @@ impl ContextPickerCompletionProvider {
                new_text_len,
                editor.clone(),
                context_store.clone(),
-                move |_, cx| {
+                move |cx| {
                    let symbol = symbol.clone();
                    let context_store = context_store.clone();
                    let workspace = workspace.clone();
@@ -954,13 +954,10 @@ fn confirm_completion_callback(
    content_len: usize,
    editor: Entity<Editor>,
    context_store: Entity<ContextStore>,
-    add_context_fn: impl Fn(&mut Window, &mut App) -> Task<Option<AgentContextHandle>>
-    + Send
-    + Sync
-    + 'static,
+    add_context_fn: impl Fn(&mut App) -> Task<Option<AgentContextHandle>> + Send + Sync + 'static,
 ) -> Arc<dyn Fn(CompletionIntent, &mut Window, &mut App) -> bool + Send + Sync> {
    Arc::new(move |_, window, cx| {
-        let context = add_context_fn(window, cx);
+        let context = add_context_fn(cx);

        let crease_text = crease_text.clone();
        let crease_icon_path = crease_icon_path.clone();
--- a/crates/agent/src/context_picker/thread_context_picker.rs
+++ b/crates/agent/src/context_picker/thread_context_picker.rs
@@ -154,7 +154,7 @@ impl PickerDelegate for ThreadContextPickerDelegate {
        })
    }

-    fn confirm(&mut self, _secondary: bool, window: &mut Window, cx: &mut Context<Picker<Self>>) {
+    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;
        };
@@ -165,7 +165,7 @@ impl PickerDelegate for ThreadContextPickerDelegate {
                    return;
                };
                let open_thread_task =
-                    thread_store.update(cx, |this, cx| this.open_thread(&id, window, cx));
+                    thread_store.update(cx, |this, cx| this.open_thread(&id, cx));

                cx.spawn(async move |this, cx| {
                    let thread = open_thread_task.await?;
--- a/crates/agent/src/context_server_configuration.rs
+++ b/crates/agent/src/context_server_configuration.rs
@@ -10,7 +10,7 @@ use ui::prelude::*;
 use util::ResultExt;
 use workspace::Workspace;

-use crate::agent_configuration::ConfigureContextServerModal;
+use crate::assistant_configuration::ConfigureContextServerModal;

 pub(crate) fn init(language_registry: Arc<LanguageRegistry>, cx: &mut App) {
    cx.observe_new(move |_: &mut Workspace, window, cx| {
--- a/crates/agent/src/context_server_tool.rs
+++ b/crates/agent/src/context_server_tool.rs
@@ -4,7 +4,7 @@ use anyhow::{Result, anyhow, bail};
 use assistant_tool::{ActionLog, Tool, ToolResult, ToolSource};
 use context_server::{ContextServerId, types};
 use gpui::{AnyWindowHandle, App, Entity, Task};
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::{Project, context_server_store::ContextServerStore};
 use ui::IconName;

@@ -72,10 +72,9 @@ impl Tool for ContextServerTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        _project: Entity<Project>,
        _action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -116,7 +115,7 @@ impl Tool for ContextServerTool {
                        }
                    }
                }
-                Ok(result.into())
+                Ok(result)
            })
            .into()
        } else {
--- a/crates/agent/src/context_strip.rs
+++ b/crates/agent/src/context_strip.rs
@@ -22,7 +22,7 @@ use crate::thread::Thread;
 use crate::thread_store::{TextThreadStore, ThreadStore};
 use crate::ui::{AddedContext, ContextPill};
 use crate::{
-    AcceptSuggestedContext, AgentPanel, FocusDown, FocusLeft, FocusRight, FocusUp,
+    AcceptSuggestedContext, AssistantPanel, FocusDown, FocusLeft, FocusRight, FocusUp,
    RemoveAllContext, RemoveFocusedContext, ToggleContextPicker,
 };

@@ -144,7 +144,7 @@ impl ContextStrip {
        }

        let workspace = self.workspace.upgrade()?;
-        let panel = workspace.read(cx).panel::<AgentPanel>(cx)?.read(cx);
+        let panel = workspace.read(cx).panel::<AssistantPanel>(cx)?.read(cx);

        if let Some(active_thread) = panel.active_thread() {
            let weak_active_thread = active_thread.downgrade();
--- a/crates/agent/src/history_store.rs
+++ b/crates/agent/src/history_store.rs
@@ -8,7 +8,7 @@ use gpui::{Entity, Task, prelude::*};
 use serde::{Deserialize, Serialize};
 use smol::future::FutureExt;
 use std::time::Duration;
-use ui::{App, SharedString, Window};
+use ui::{App, SharedString};
 use util::ResultExt as _;

 use crate::{
@@ -82,7 +82,6 @@ impl HistoryStore {
        thread_store: Entity<ThreadStore>,
        context_store: Entity<assistant_context_editor::ContextStore>,
        initial_recent_entries: impl IntoIterator<Item = RecentEntry>,
-        window: &mut Window,
        cx: &mut Context<Self>,
    ) -> Self {
        let subscriptions = vec![
@@ -90,62 +89,56 @@ impl HistoryStore {
            cx.observe(&context_store, |_, _, cx| cx.notify()),
        ];

-        window
-            .spawn(cx, {
-                let thread_store = thread_store.downgrade();
-                let context_store = context_store.downgrade();
-                let this = cx.weak_entity();
-                async move |cx| {
-                    let path = paths::data_dir().join(NAVIGATION_HISTORY_PATH);
-                    let contents = cx
-                        .background_spawn(async move { std::fs::read_to_string(path) })
-                        .await
-                        .ok()?;
-                    let entries = serde_json::from_str::<Vec<SerializedRecentEntry>>(&contents)
-                        .context("deserializing persisted agent panel navigation history")
-                        .log_err()?
-                        .into_iter()
-                        .take(MAX_RECENTLY_OPENED_ENTRIES)
-                        .map(|serialized| match serialized {
-                            SerializedRecentEntry::Thread(id) => thread_store
-                                .update_in(cx, |thread_store, window, cx| {
-                                    let thread_id = ThreadId::from(id.as_str());
-                                    thread_store
-                                        .open_thread(&thread_id, window, cx)
-                                        .map_ok(|thread| RecentEntry::Thread(thread_id, thread))
-                                        .boxed()
-                                })
-                                .unwrap_or_else(|_| {
-                                    async { Err(anyhow!("no thread store")) }.boxed()
-                                }),
-                            SerializedRecentEntry::Context(id) => context_store
-                                .update(cx, |context_store, cx| {
-                                    context_store
-                                        .open_local_context(Path::new(&id).into(), cx)
-                                        .map_ok(RecentEntry::Context)
-                                        .boxed()
-                                })
-                                .unwrap_or_else(|_| {
-                                    async { Err(anyhow!("no context store")) }.boxed()
-                                }),
-                        });
-                    let entries = join_all(entries)
-                        .await
-                        .into_iter()
-                        .filter_map(|result| result.log_err())
-                        .collect::<VecDeque<_>>();
+        cx.spawn({
+            let thread_store = thread_store.downgrade();
+            let context_store = context_store.downgrade();
+            async move |this, cx| {
+                let path = paths::data_dir().join(NAVIGATION_HISTORY_PATH);
+                let contents = cx
+                    .background_spawn(async move { std::fs::read_to_string(path) })
+                    .await
+                    .ok()?;
+                let entries = serde_json::from_str::<Vec<SerializedRecentEntry>>(&contents)
+                    .context("deserializing persisted agent panel navigation history")
+                    .log_err()?
+                    .into_iter()
+                    .take(MAX_RECENTLY_OPENED_ENTRIES)
+                    .map(|serialized| match serialized {
+                        SerializedRecentEntry::Thread(id) => thread_store
+                            .update(cx, |thread_store, cx| {
+                                let thread_id = ThreadId::from(id.as_str());
+                                thread_store
+                                    .open_thread(&thread_id, cx)
+                                    .map_ok(|thread| RecentEntry::Thread(thread_id, thread))
+                                    .boxed()
+                            })
+                            .unwrap_or_else(|_| async { Err(anyhow!("no thread store")) }.boxed()),
+                        SerializedRecentEntry::Context(id) => context_store
+                            .update(cx, |context_store, cx| {
+                                context_store
+                                    .open_local_context(Path::new(&id).into(), cx)
+                                    .map_ok(RecentEntry::Context)
+                                    .boxed()
+                            })
+                            .unwrap_or_else(|_| async { Err(anyhow!("no context store")) }.boxed()),
+                    });
+                let entries = join_all(entries)
+                    .await
+                    .into_iter()
+                    .filter_map(|result| result.log_err())
+                    .collect::<VecDeque<_>>();

-                    this.update(cx, |this, _| {
-                        this.recently_opened_entries.extend(entries);
-                        this.recently_opened_entries
-                            .truncate(MAX_RECENTLY_OPENED_ENTRIES);
-                    })
-                    .ok();
+                this.update(cx, |this, _| {
+                    this.recently_opened_entries.extend(entries);
+                    this.recently_opened_entries
+                        .truncate(MAX_RECENTLY_OPENED_ENTRIES);
+                })
+                .ok();

-                    Some(())
-                }
-            })
-            .detach();
+                Some(())
+            }
+        })
+        .detach();

        Self {
            thread_store,
--- a/crates/agent/src/inline_assistant.rs
+++ b/crates/agent/src/inline_assistant.rs
@@ -17,6 +17,7 @@ use editor::{
        ToDisplayPoint,
    },
 };
+use feature_flags::{Assistant2FeatureFlag, FeatureFlagViewExt as _};
 use fs::Fs;
 use gpui::{
    App, Context, Entity, Focusable, Global, HighlightStyle, Subscription, Task, UpdateGlobal,
@@ -42,7 +43,7 @@ use util::ResultExt;
 use workspace::{ItemHandle, Toast, Workspace, dock::Panel, notifications::NotificationId};
 use zed_actions::agent::OpenConfiguration;

-use crate::AgentPanel;
+use crate::AssistantPanel;
 use crate::buffer_codegen::{BufferCodegen, CodegenAlternative, CodegenEvent};
 use crate::context_store::ContextStore;
 use crate::inline_prompt_editor::{CodegenStatus, InlineAssistId, PromptEditor, PromptEditorEvent};
@@ -65,6 +66,15 @@ pub fn init(
        InlineAssistant::update_global(cx, |inline_assistant, cx| {
            inline_assistant.register_workspace(&workspace, window, cx)
        });
+
+        cx.observe_flag::<Assistant2FeatureFlag, _>(window, {
+            |is_assistant2_enabled, _workspace, _window, cx| {
+                InlineAssistant::update_global(cx, |inline_assistant, _cx| {
+                    inline_assistant.is_assistant2_enabled = is_assistant2_enabled;
+                });
+            }
+        })
+        .detach();
    })
    .detach();
 }
@@ -87,6 +97,7 @@ pub struct InlineAssistant {
    prompt_builder: Arc<PromptBuilder>,
    telemetry: Arc<Telemetry>,
    fs: Arc<dyn Fs>,
+    is_assistant2_enabled: bool,
 }

 impl Global for InlineAssistant {}
@@ -108,6 +119,7 @@ impl InlineAssistant {
            prompt_builder,
            telemetry,
            fs,
+            is_assistant2_enabled: false,
        }
    }

@@ -176,17 +188,18 @@ impl InlineAssistant {
        window: &mut Window,
        cx: &mut App,
    ) {
-        let is_assistant2_enabled = true;
+        let is_assistant2_enabled = self.is_assistant2_enabled;

        if let Some(editor) = item.act_as::<Editor>(cx) {
            editor.update(cx, |editor, cx| {
                if is_assistant2_enabled {
-                    let panel = workspace.read(cx).panel::<AgentPanel>(cx);
+                    let panel = workspace.read(cx).panel::<AssistantPanel>(cx);
                    let thread_store = panel
                        .as_ref()
-                        .map(|agent_panel| agent_panel.read(cx).thread_store().downgrade());
-                    let text_thread_store = panel
-                        .map(|agent_panel| agent_panel.read(cx).text_thread_store().downgrade());
+                        .map(|assistant_panel| assistant_panel.read(cx).thread_store().downgrade());
+                    let text_thread_store = panel.map(|assistant_panel| {
+                        assistant_panel.read(cx).text_thread_store().downgrade()
+                    });

                    editor.add_code_action_provider(
                        Rc::new(AssistantCodeActionProvider {
@@ -225,7 +238,7 @@ impl InlineAssistant {

        let Some(inline_assist_target) = Self::resolve_inline_assist_target(
            workspace,
-            workspace.panel::<AgentPanel>(cx),
+            workspace.panel::<AssistantPanel>(cx),
            window,
            cx,
        ) else {
@@ -238,15 +251,15 @@ impl InlineAssistant {
                .map_or(false, |model| model.provider.is_authenticated(cx))
        };

-        let Some(agent_panel) = workspace.panel::<AgentPanel>(cx) else {
+        let Some(assistant_panel) = workspace.panel::<AssistantPanel>(cx) else {
            return;
        };
-        let agent_panel = agent_panel.read(cx);
+        let assistant_panel = assistant_panel.read(cx);

-        let prompt_store = agent_panel.prompt_store().as_ref().cloned();
-        let thread_store = Some(agent_panel.thread_store().downgrade());
-        let text_thread_store = Some(agent_panel.text_thread_store().downgrade());
-        let context_store = agent_panel.inline_assist_context_store().clone();
+        let prompt_store = assistant_panel.prompt_store().as_ref().cloned();
+        let thread_store = Some(assistant_panel.thread_store().downgrade());
+        let text_thread_store = Some(assistant_panel.text_thread_store().downgrade());
+        let context_store = assistant_panel.inline_assist_context_store().clone();

        let handle_assist =
            |window: &mut Window, cx: &mut Context<Workspace>| match inline_assist_target {
@@ -1449,7 +1462,7 @@ impl InlineAssistant {

    fn resolve_inline_assist_target(
        workspace: &mut Workspace,
-        agent_panel: Option<Entity<AgentPanel>>,
+        assistant_panel: Option<Entity<AssistantPanel>>,
        window: &mut Window,
        cx: &mut App,
    ) -> Option<InlineAssistTarget> {
@@ -1469,7 +1482,7 @@ impl InlineAssistant {
            }
        }

-        let context_editor = agent_panel
+        let context_editor = assistant_panel
            .and_then(|panel| panel.read(cx).active_context_editor())
            .and_then(|editor| {
                let editor = &editor.read(cx).editor().clone();
--- a/crates/agent/src/inline_prompt_editor.rs
+++ b/crates/agent/src/inline_prompt_editor.rs
@@ -1,4 +1,4 @@
-use crate::agent_model_selector::{AgentModelSelector, ModelType};
+use crate::assistant_model_selector::{AssistantModelSelector, ModelType};
 use crate::buffer_codegen::BufferCodegen;
 use crate::context::ContextCreasesAddon;
 use crate::context_picker::{ContextPicker, ContextPickerCompletionProvider};
@@ -42,7 +42,7 @@ pub struct PromptEditor<T> {
    context_store: Entity<ContextStore>,
    context_strip: Entity<ContextStrip>,
    context_picker_menu_handle: PopoverMenuHandle<ContextPicker>,
-    model_selector: Entity<AgentModelSelector>,
+    model_selector: Entity<AssistantModelSelector>,
    edited_since_done: bool,
    prompt_history: VecDeque<String>,
    prompt_history_ix: Option<usize>,
@@ -284,12 +284,12 @@ impl<T: 'static> PromptEditor<T> {
            PromptEditorMode::Terminal { .. } => "Generate",
        };

-        let agent_panel_keybinding =
+        let assistant_panel_keybinding =
            ui::text_for_action(&zed_actions::assistant::ToggleFocus, window, cx)
                .map(|keybinding| format!("{keybinding} to chat ― "))
                .unwrap_or_default();

-        format!("{action}… ({agent_panel_keybinding}↓↑ for history)")
+        format!("{action}… ({assistant_panel_keybinding}↓↑ for history)")
    }

    pub fn prompt(&self, cx: &App) -> String {
@@ -921,7 +921,7 @@ impl PromptEditor<BufferCodegen> {
            context_strip,
            context_picker_menu_handle,
            model_selector: cx.new(|cx| {
-                AgentModelSelector::new(
+                AssistantModelSelector::new(
                    fs,
                    model_selector_menu_handle,
                    prompt_editor.focus_handle(cx),
@@ -1094,7 +1094,7 @@ impl PromptEditor<TerminalCodegen> {
            context_strip,
            context_picker_menu_handle,
            model_selector: cx.new(|cx| {
-                AgentModelSelector::new(
+                AssistantModelSelector::new(
                    fs,
                    model_selector_menu_handle.clone(),
                    prompt_editor.focus_handle(cx),
--- a/crates/agent/src/message_editor.rs
+++ b/crates/agent/src/message_editor.rs
@@ -1,14 +1,13 @@
 use std::collections::BTreeMap;
 use std::sync::Arc;

-use crate::agent_model_selector::{AgentModelSelector, ModelType};
+use crate::assistant_model_selector::{AssistantModelSelector, ModelType};
 use crate::context::{AgentContextKey, ContextCreasesAddon, ContextLoadResult, load_context};
 use crate::tool_compatibility::{IncompatibleToolsState, IncompatibleToolsTooltip};
 use crate::ui::{
    AnimatedLabel, MaxModeTooltip,
    preview::{AgentPreview, UsageCallout},
 };
-use assistant_settings::{AssistantSettings, CompletionMode};
 use buffer_diff::BufferDiff;
 use client::UserStore;
 use collections::{HashMap, HashSet};
@@ -17,6 +16,7 @@ use editor::{
    AnchorRangeExt, ContextMenuOptions, ContextMenuPlacement, Editor, EditorElement, EditorEvent,
    EditorMode, EditorStyle, MultiBuffer,
 };
+use feature_flags::{FeatureFlagAppExt, NewBillingFeatureFlag};
 use file_icons::FileIcons;
 use fs::Fs;
 use futures::future::Shared;
@@ -38,9 +38,11 @@ use proto::Plan;
 use settings::Settings;
 use std::time::Duration;
 use theme::ThemeSettings;
-use ui::{Disclosure, KeyBinding, PopoverMenuHandle, Tooltip, prelude::*};
+use ui::{Disclosure, DocumentationSide, KeyBinding, PopoverMenuHandle, Tooltip, prelude::*};
 use util::{ResultExt as _, maybe};
+use workspace::dock::DockPosition;
 use workspace::{CollaboratorId, Workspace};
+use zed_llm_client::CompletionMode;

 use crate::context_picker::{ContextPicker, ContextPickerCompletionProvider, crease_for_mention};
 use crate::context_store::ContextStore;
@@ -65,7 +67,7 @@ pub struct MessageEditor {
    prompt_store: Option<Entity<PromptStore>>,
    context_strip: Entity<ContextStrip>,
    context_picker_menu_handle: PopoverMenuHandle<ContextPicker>,
-    model_selector: Entity<AgentModelSelector>,
+    model_selector: Entity<AssistantModelSelector>,
    last_loaded_context: Option<ContextLoadResult>,
    load_context_task: Option<Shared<Task<()>>>,
    profile_selector: Entity<ProfileSelector>,
@@ -132,6 +134,14 @@ pub(crate) fn create_editor(
    editor
 }

+fn documentation_side(position: DockPosition) -> DocumentationSide {
+    match position {
+        DockPosition::Left => DocumentationSide::Right,
+        DockPosition::Bottom => DocumentationSide::Left,
+        DockPosition::Right => DocumentationSide::Left,
+    }
+}
+
 impl MessageEditor {
    pub fn new(
        fs: Arc<dyn Fs>,
@@ -142,6 +152,7 @@ impl MessageEditor {
        thread_store: WeakEntity<ThreadStore>,
        text_thread_store: WeakEntity<TextThreadStore>,
        thread: Entity<Thread>,
+        dock_position: DockPosition,
        window: &mut Window,
        cx: &mut Context<Self>,
    ) -> Self {
@@ -189,7 +200,7 @@ impl MessageEditor {
        ];

        let model_selector = cx.new(|cx| {
-            AgentModelSelector::new(
+            AssistantModelSelector::new(
                fs.clone(),
                model_selector_menu_handle,
                editor.focus_handle(cx),
@@ -199,10 +210,6 @@ impl MessageEditor {
            )
        });

-        let profile_selector = cx.new(|cx| {
-            ProfileSelector::new(thread.clone(), thread_store, editor.focus_handle(cx), cx)
-        });
-
        Self {
            editor: editor.clone(),
            project: thread.read(cx).project().clone(),
@@ -219,7 +226,15 @@ impl MessageEditor {
            model_selector,
            edits_expanded: false,
            editor_is_expanded: false,
-            profile_selector,
+            profile_selector: cx.new(|cx| {
+                ProfileSelector::new(
+                    fs,
+                    thread_store,
+                    editor.focus_handle(cx),
+                    documentation_side(dock_position),
+                    cx,
+                )
+            }),
            last_estimated_token_count: None,
            update_token_count_task: None,
            _subscriptions: subscriptions,
@@ -300,10 +315,6 @@ impl MessageEditor {
        self.editor.read(cx).text(cx).trim().is_empty()
    }

-    pub fn is_editor_fully_empty(&self, cx: &App) -> bool {
-        self.editor.read(cx).is_empty(cx)
-    }
-
    fn send_to_model(&mut self, window: &mut Window, cx: &mut Context<Self>) {
        let Some(ConfiguredModel { model, provider }) = self
            .thread
@@ -449,6 +460,10 @@ impl MessageEditor {
    }

    fn render_max_mode_toggle(&self, cx: &mut Context<Self>) -> Option<AnyElement> {
+        if !cx.has_flag::<NewBillingFeatureFlag>() {
+            return None;
+        }
+
        let thread = self.thread.read(cx);
        let model = thread.configured_model();
        if !model?.model.supports_max_mode() {
@@ -623,7 +638,7 @@ impl MessageEditor {
                        this.h(vh(0.8, window)).justify_between()
                    })
                    .child(
-                        v_flex()
+                        div()
                            .min_h_16()
                            .when(is_editor_expanded, |this| this.h_full())
                            .child({
@@ -1055,6 +1070,10 @@ impl MessageEditor {
    }

    fn render_usage_callout(&self, line_height: Pixels, cx: &mut Context<Self>) -> Option<Div> {
+        if !cx.has_flag::<NewBillingFeatureFlag>() {
+            return None;
+        }
+
        let is_using_zed_provider = self
            .thread
            .read(cx)
@@ -1116,6 +1135,10 @@ impl MessageEditor {
        token_usage_ratio: TokenUsageRatio,
        cx: &mut Context<Self>,
    ) -> Option<Div> {
+        if !cx.has_flag::<NewBillingFeatureFlag>() {
+            return None;
+        }
+
        let title = if token_usage_ratio == TokenUsageRatio::Exceeded {
            "Thread reached the token limit"
        } else {
@@ -1245,9 +1268,8 @@ impl MessageEditor {
                        mode: None,
                        messages: vec![request_message],
                        tools: vec![],
-                        tool_choice: None,
                        stop: vec![],
-                        temperature: AssistantSettings::temperature_for_model(&model.model, cx),
+                        temperature: None,
                    };

                    Some(model.model.count_tokens(request, cx))
@@ -1270,6 +1292,12 @@ impl MessageEditor {
            .ok();
        }));
    }
+
+    pub fn set_dock_position(&mut self, position: DockPosition, cx: &mut Context<Self>) {
+        self.profile_selector.update(cx, |profile_selector, cx| {
+            profile_selector.set_documentation_side(documentation_side(position), cx)
+        });
+    }
 }

 pub fn extract_message_creases(
@@ -1443,6 +1471,7 @@ impl AgentPreview for MessageEditor {
                    thread_store.downgrade(),
                    text_thread_store.downgrade(),
                    thread,
+                    DockPosition::Left,
                    window,
                    cx,
                )
--- a/crates/agent/src/profile_selector.rs
+++ b/crates/agent/src/profile_selector.rs
@@ -1,32 +1,36 @@
+use std::sync::Arc;
+
 use assistant_settings::{
-    AgentProfile, AgentProfileId, AssistantDockPosition, AssistantSettings, GroupedAgentProfiles,
-    builtin_profiles,
+    AgentProfile, AgentProfileId, AssistantSettings, GroupedAgentProfiles, builtin_profiles,
 };
+use fs::Fs;
 use gpui::{Action, Entity, FocusHandle, Subscription, WeakEntity, prelude::*};
 use language_model::LanguageModelRegistry;
-use settings::{Settings as _, SettingsStore};
+use settings::{Settings as _, SettingsStore, update_settings_file};
 use ui::{
    ContextMenu, ContextMenuEntry, DocumentationSide, PopoverMenu, PopoverMenuHandle, Tooltip,
    prelude::*,
 };
 use util::ResultExt as _;

-use crate::{ManageProfiles, Thread, ThreadStore, ToggleProfileSelector};
+use crate::{ManageProfiles, ThreadStore, ToggleProfileSelector};

 pub struct ProfileSelector {
    profiles: GroupedAgentProfiles,
-    thread: Entity<Thread>,
+    fs: Arc<dyn Fs>,
    thread_store: WeakEntity<ThreadStore>,
    menu_handle: PopoverMenuHandle<ContextMenu>,
    focus_handle: FocusHandle,
    _subscriptions: Vec<Subscription>,
+    documentation_side: DocumentationSide,
 }

 impl ProfileSelector {
    pub fn new(
-        thread: Entity<Thread>,
+        fs: Arc<dyn Fs>,
        thread_store: WeakEntity<ThreadStore>,
        focus_handle: FocusHandle,
+        documentation_side: DocumentationSide,
        cx: &mut Context<Self>,
    ) -> Self {
        let settings_subscription = cx.observe_global::<SettingsStore>(move |this, cx| {
@@ -35,14 +39,20 @@ impl ProfileSelector {

        Self {
            profiles: GroupedAgentProfiles::from_settings(AssistantSettings::get_global(cx)),
-            thread,
+            fs,
            thread_store,
            menu_handle: PopoverMenuHandle::default(),
            focus_handle,
            _subscriptions: vec![settings_subscription],
+            documentation_side,
        }
    }

+    pub fn set_documentation_side(&mut self, side: DocumentationSide, cx: &mut Context<Self>) {
+        self.documentation_side = side;
+        cx.notify();
+    }
+
    pub fn menu_handle(&self) -> PopoverMenuHandle<ContextMenu> {
        self.menu_handle.clone()
    }
@@ -59,12 +69,8 @@ impl ProfileSelector {
        ContextMenu::build(window, cx, |mut menu, _window, cx| {
            let settings = AssistantSettings::get_global(cx);
            for (profile_id, profile) in self.profiles.builtin.iter() {
-                menu = menu.item(self.menu_entry_for_profile(
-                    profile_id.clone(),
-                    profile,
-                    settings,
-                    cx,
-                ));
+                menu =
+                    menu.item(self.menu_entry_for_profile(profile_id.clone(), profile, settings));
            }

            if !self.profiles.custom.is_empty() {
@@ -74,7 +80,6 @@ impl ProfileSelector {
                        profile_id.clone(),
                        profile,
                        settings,
-                        cx,
                    ));
                }
            }
@@ -95,7 +100,6 @@ impl ProfileSelector {
        profile_id: AgentProfileId,
        profile: &AgentProfile,
        settings: &AssistantSettings,
-        cx: &App,
    ) -> ContextMenuEntry {
        let documentation = match profile.name.to_lowercase().as_str() {
            builtin_profiles::WRITE => Some("Get help to write anything."),
@@ -104,15 +108,11 @@ impl ProfileSelector {
            _ => None,
        };

-        let current_profile_id = self.thread.read(cx).configured_profile_id();
-
-        let entry = ContextMenuEntry::new(profile.name.clone()).toggleable(
-            IconPosition::End,
-            Some(profile_id.clone()) == current_profile_id,
-        );
+        let entry = ContextMenuEntry::new(profile.name.clone())
+            .toggleable(IconPosition::End, profile_id == settings.default_profile);

        let entry = if let Some(doc_text) = documentation {
-            entry.documentation_aside(documentation_side(settings.dock), move |_| {
+            entry.documentation_aside(self.documentation_side, move |_| {
                Label::new(doc_text).into_any_element()
            })
        } else {
@@ -120,13 +120,15 @@ impl ProfileSelector {
        };

        entry.handler({
+            let fs = self.fs.clone();
            let thread_store = self.thread_store.clone();
            let profile_id = profile_id.clone();
-            let thread = self.thread.clone();
-
            move |_window, cx| {
-                thread.update(cx, |thread, cx| {
-                    thread.set_configured_profile_id(Some(profile_id.clone()), cx);
+                update_settings_file::<AssistantSettings>(fs.clone(), cx, {
+                    let profile_id = profile_id.clone();
+                    move |settings, _cx| {
+                        settings.set_profile(profile_id.clone());
+                    }
                });

                thread_store
@@ -142,78 +144,58 @@ impl ProfileSelector {
 impl Render for ProfileSelector {
    fn render(&mut self, _window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
        let settings = AssistantSettings::get_global(cx);
-        let profile_id = self
-            .thread
-            .read(cx)
-            .configured_profile_id()
-            .unwrap_or(settings.default_profile.clone());
-        let profile = settings.profiles.get(&profile_id).cloned();
+        let profile_id = &settings.default_profile;
+        let profile = settings.profiles.get(profile_id);

        let selected_profile = profile
            .map(|profile| profile.name.clone())
            .unwrap_or_else(|| "Unknown".into());

-        let configured_model = self
-            .thread
-            .read_with(cx, |thread, _cx| thread.configured_model())
-            .or_else(|| {
-                let model_registry = LanguageModelRegistry::read_global(cx);
-                model_registry.default_model()
-            });
-        let supports_tools =
-            configured_model.map_or(false, |default| default.model.supports_tools());
+        let model_registry = LanguageModelRegistry::read_global(cx);
+        let supports_tools = model_registry
+            .default_model()
+            .map_or(false, |default| default.model.supports_tools());

-        if supports_tools {
-            let this = cx.entity().clone();
-            let focus_handle = self.focus_handle.clone();
-            let trigger_button = Button::new("profile-selector-model", selected_profile)
+        let this = cx.entity().clone();
+        let focus_handle = self.focus_handle.clone();
+
+        let trigger_button = if supports_tools {
+            Button::new("profile-selector-model", selected_profile)
                .label_size(LabelSize::Small)
                .color(Color::Muted)
                .icon(IconName::ChevronDown)
                .icon_size(IconSize::XSmall)
                .icon_position(IconPosition::End)
-                .icon_color(Color::Muted);
-
-            PopoverMenu::new("profile-selector")
-                .trigger_with_tooltip(trigger_button, {
-                    let focus_handle = focus_handle.clone();
-                    move |window, cx| {
-                        Tooltip::for_action_in(
-                            "Toggle Profile Menu",
-                            &ToggleProfileSelector,
-                            &focus_handle,
-                            window,
-                            cx,
-                        )
-                    }
-                })
-                .anchor(
-                    if documentation_side(settings.dock) == DocumentationSide::Left {
-                        gpui::Corner::BottomRight
-                    } else {
-                        gpui::Corner::BottomLeft
-                    },
-                )
-                .with_handle(self.menu_handle.clone())
-                .menu(move |window, cx| {
-                    Some(this.update(cx, |this, cx| this.build_context_menu(window, cx)))
-                })
-                .into_any_element()
+                .icon_color(Color::Muted)
        } else {
-            Button::new("tools-not-supported-button", "Tools Unsupported")
+            Button::new("tools-not-supported-button", "No Tools")
                .disabled(true)
                .label_size(LabelSize::Small)
                .color(Color::Muted)
-                .tooltip(Tooltip::text("This model does not support tools."))
-                .into_any_element()
-        }
-    }
-}
+                .tooltip(Tooltip::text("The current model does not support tools."))
+        };

-fn documentation_side(position: AssistantDockPosition) -> DocumentationSide {
-    match position {
-        AssistantDockPosition::Left => DocumentationSide::Right,
-        AssistantDockPosition::Bottom => DocumentationSide::Left,
-        AssistantDockPosition::Right => DocumentationSide::Left,
+        PopoverMenu::new("profile-selector")
+            .trigger_with_tooltip(trigger_button, {
+                let focus_handle = focus_handle.clone();
+                move |window, cx| {
+                    Tooltip::for_action_in(
+                        "Toggle Profile Menu",
+                        &ToggleProfileSelector,
+                        &focus_handle,
+                        window,
+                        cx,
+                    )
+                }
+            })
+            .anchor(if self.documentation_side == DocumentationSide::Left {
+                gpui::Corner::BottomRight
+            } else {
+                gpui::Corner::BottomLeft
+            })
+            .with_handle(self.menu_handle.clone())
+            .menu(move |window, cx| {
+                Some(this.update(cx, |this, cx| this.build_context_menu(window, cx)))
+            })
    }
 }
--- a/crates/agent/src/terminal_inline_assistant.rs
+++ b/crates/agent/src/terminal_inline_assistant.rs
@@ -6,7 +6,6 @@ use crate::inline_prompt_editor::{
 use crate::terminal_codegen::{CLEAR_INPUT, CodegenEvent, TerminalCodegen};
 use crate::thread_store::{TextThreadStore, ThreadStore};
 use anyhow::{Context as _, Result};
-use assistant_settings::AssistantSettings;
 use client::telemetry::Telemetry;
 use collections::{HashMap, VecDeque};
 use editor::{MultiBuffer, actions::SelectAll};
@@ -267,12 +266,6 @@ impl TerminalInlineAssistant {
            load_context(contexts, project, &assist.prompt_store, cx)
        })?;

-        let ConfiguredModel { model, .. } = LanguageModelRegistry::read_global(cx)
-            .inline_assistant_model()
-            .context("No inline assistant model")?;
-
-        let temperature = AssistantSettings::temperature_for_model(&model, cx);
-
        Ok(cx.background_spawn(async move {
            let mut request_message = LanguageModelRequestMessage {
                role: Role::User,
@@ -293,9 +286,8 @@ impl TerminalInlineAssistant {
                mode: None,
                messages: vec![request_message],
                tools: Vec::new(),
-                tool_choice: None,
                stop: Vec::new(),
-                temperature,
+                temperature: None,
            }
        }))
    }
--- a/crates/agent/src/thread.rs
+++ b/crates/agent/src/thread.rs
@@ -5,7 +5,7 @@ use std::sync::Arc;
 use std::time::Instant;

 use anyhow::{Result, anyhow};
-use assistant_settings::{AgentProfileId, AssistantSettings, CompletionMode};
+use assistant_settings::AssistantSettings;
 use assistant_tool::{ActionLog, AnyToolCard, Tool, ToolWorkingSet};
 use chrono::{DateTime, Utc};
 use collections::HashMap;
@@ -35,10 +35,9 @@ use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use settings::Settings;
 use thiserror::Error;
-use ui::Window;
 use util::{ResultExt as _, TryFutureExt as _, post_inc};
 use uuid::Uuid;
-use zed_llm_client::CompletionRequestStatus;
+use zed_llm_client::{CompletionMode, CompletionRequestStatus};

 use crate::ThreadStore;
 use crate::context::{AgentContext, AgentContextHandle, ContextLoadResult, LoadedContext};
@@ -268,7 +267,7 @@ impl DetailedSummaryState {
    }
 }

-#[derive(Default, Debug)]
+#[derive(Default)]
 pub struct TotalTokenUsage {
    pub total: usize,
    pub max: usize,
@@ -313,6 +312,14 @@ pub enum TokenUsageRatio {
    Exceeded,
 }

+fn default_completion_mode(cx: &App) -> CompletionMode {
+    if cx.is_staff() {
+        CompletionMode::Max
+    } else {
+        CompletionMode::Normal
+    }
+}
+
 #[derive(Debug, Clone, Copy)]
 pub enum QueueState {
    Sending,
@@ -329,7 +336,7 @@ pub struct Thread {
    detailed_summary_task: Task<Option<()>>,
    detailed_summary_tx: postage::watch::Sender<DetailedSummaryState>,
    detailed_summary_rx: postage::watch::Receiver<DetailedSummaryState>,
-    completion_mode: assistant_settings::CompletionMode,
+    completion_mode: CompletionMode,
    messages: Vec<Message>,
    next_message_id: MessageId,
    last_prompt_id: PromptId,
@@ -359,7 +366,6 @@ pub struct Thread {
    >,
    remaining_turns: u32,
    configured_model: Option<ConfiguredModel>,
-    configured_profile_id: Option<AgentProfileId>,
 }

 #[derive(Debug, Clone, Serialize, Deserialize)]
@@ -380,8 +386,6 @@ impl Thread {
    ) -> Self {
        let (detailed_summary_tx, detailed_summary_rx) = postage::watch::channel();
        let configured_model = LanguageModelRegistry::read_global(cx).default_model();
-        let assistant_settings = AssistantSettings::get_global(cx);
-        let configured_profile_id = assistant_settings.default_profile.clone();

        Self {
            id: ThreadId::new(),
@@ -391,7 +395,7 @@ impl Thread {
            detailed_summary_task: Task::ready(None),
            detailed_summary_tx,
            detailed_summary_rx,
-            completion_mode: AssistantSettings::get_global(cx).preferred_completion_mode,
+            completion_mode: default_completion_mode(cx),
            messages: Vec::new(),
            next_message_id: MessageId(0),
            last_prompt_id: PromptId::new(),
@@ -424,7 +428,6 @@ impl Thread {
            request_callback: None,
            remaining_turns: u32::MAX,
            configured_model,
-            configured_profile_id: Some(configured_profile_id),
        }
    }

@@ -435,7 +438,6 @@ impl Thread {
        tools: Entity<ToolWorkingSet>,
        prompt_builder: Arc<PromptBuilder>,
        project_context: SharedProjectContext,
-        window: &mut Window,
        cx: &mut Context<Self>,
    ) -> Self {
        let next_message_id = MessageId(
@@ -445,13 +447,7 @@ impl Thread {
                .map(|message| message.id.0 + 1)
                .unwrap_or(0),
        );
-        let tool_use = ToolUseState::from_serialized_messages(
-            tools.clone(),
-            &serialized.messages,
-            project.clone(),
-            window,
-            cx,
-        );
+        let tool_use = ToolUseState::from_serialized_messages(tools.clone(), &serialized.messages);
        let (detailed_summary_tx, detailed_summary_rx) =
            postage::watch::channel_with(serialized.detailed_summary_state);

@@ -468,12 +464,6 @@ impl Thread {
                .or_else(|| registry.default_model())
        });

-        let completion_mode = serialized
-            .completion_mode
-            .unwrap_or_else(|| AssistantSettings::get_global(cx).preferred_completion_mode);
-
-        let configured_profile_id = serialized.profile.clone();
-
        Self {
            id,
            updated_at: serialized.updated_at,
@@ -482,7 +472,7 @@ impl Thread {
            detailed_summary_task: Task::ready(None),
            detailed_summary_tx,
            detailed_summary_rx,
-            completion_mode,
+            completion_mode: default_completion_mode(cx),
            messages: serialized
                .messages
                .into_iter()
@@ -547,7 +537,6 @@ impl Thread {
            request_callback: None,
            remaining_turns: u32::MAX,
            configured_model,
-            configured_profile_id,
        }
    }

@@ -603,19 +592,6 @@ impl Thread {
        cx.notify();
    }

-    pub fn configured_profile_id(&self) -> Option<AgentProfileId> {
-        self.configured_profile_id.clone()
-    }
-
-    pub fn set_configured_profile_id(
-        &mut self,
-        id: Option<AgentProfileId>,
-        cx: &mut Context<Self>,
-    ) {
-        self.configured_profile_id = id;
-        cx.notify();
-    }
-
    pub const DEFAULT_SUMMARY: SharedString = SharedString::new_static("New Thread");

    pub fn summary_or_default(&self) -> SharedString {
@@ -1092,7 +1068,6 @@ impl Thread {
                                tool_use_id: tool_result.tool_use_id.clone(),
                                is_error: tool_result.is_error,
                                content: tool_result.content.clone(),
-                                output: tool_result.output.clone(),
                            })
                            .collect(),
                        context: message.loaded_context.text.clone(),
@@ -1120,8 +1095,6 @@ impl Thread {
                        provider: model.provider.id().0.to_string(),
                        model: model.model.id().0.to_string(),
                    }),
-                profile: this.configured_profile_id.clone(),
-                completion_mode: Some(this.completion_mode),
            })
        })
    }
@@ -1174,9 +1147,8 @@ impl Thread {
            mode: None,
            messages: vec![],
            tools: Vec::new(),
-            tool_choice: None,
            stop: Vec::new(),
-            temperature: AssistantSettings::temperature_for_model(&model, cx),
+            temperature: None,
        };

        let available_tools = self.available_tools(cx, model.clone());
@@ -1219,7 +1191,6 @@ impl Thread {
            }));
        }

-        let mut message_ix_to_cache = None;
        for message in &self.messages {
            let mut request_message = LanguageModelRequestMessage {
                role: message.role,
@@ -1256,86 +1227,42 @@ impl Thread {
                };
            }

-            let mut cache_message = true;
-            let mut tool_results_message = LanguageModelRequestMessage {
-                role: Role::User,
-                content: Vec::new(),
-                cache: false,
-            };
-            for (tool_use, tool_result) in self.tool_use.tool_results(message.id) {
-                if let Some(tool_result) = tool_result {
-                    request_message
-                        .content
-                        .push(MessageContent::ToolUse(tool_use.clone()));
-                    tool_results_message
-                        .content
-                        .push(MessageContent::ToolResult(LanguageModelToolResult {
-                            tool_use_id: tool_use.id.clone(),
-                            tool_name: tool_result.tool_name.clone(),
-                            is_error: tool_result.is_error,
-                            content: if tool_result.content.is_empty() {
-                                // Surprisingly, the API fails if we return an empty string here.
-                                // It thinks we are sending a tool use without a tool result.
-                                "<Tool returned an empty string>".into()
-                            } else {
-                                tool_result.content.clone()
-                            },
-                            output: None,
-                        }));
-                } else {
-                    cache_message = false;
-                    log::debug!(
-                        "skipped tool use {:?} because it is still pending",
-                        tool_use
-                    );
-                }
-            }
+            self.tool_use
+                .attach_tool_uses(message.id, &mut request_message);

-            if cache_message {
-                message_ix_to_cache = Some(request.messages.len());
-            }
            request.messages.push(request_message);

-            if !tool_results_message.content.is_empty() {
-                if cache_message {
-                    message_ix_to_cache = Some(request.messages.len());
-                }
+            if let Some(tool_results_message) = self.tool_use.tool_results_message(message.id) {
                request.messages.push(tool_results_message);
            }
        }

        // https://docs.anthropic.com/en/docs/build-with-claude/prompt-caching
-        if let Some(message_ix_to_cache) = message_ix_to_cache {
-            request.messages[message_ix_to_cache].cache = true;
+        if let Some(last) = request.messages.last_mut() {
+            last.cache = true;
        }

        self.attached_tracked_files_state(&mut request.messages, cx);

        request.tools = available_tools;
        request.mode = if model.supports_max_mode() {
-            Some(self.completion_mode.into())
+            Some(self.completion_mode)
        } else {
-            Some(CompletionMode::Normal.into())
+            Some(CompletionMode::Normal)
        };

        request
    }

-    fn to_summarize_request(
-        &self,
-        model: &Arc<dyn LanguageModel>,
-        added_user_message: String,
-        cx: &App,
-    ) -> LanguageModelRequest {
+    fn to_summarize_request(&self, added_user_message: String) -> LanguageModelRequest {
        let mut request = LanguageModelRequest {
            thread_id: None,
            prompt_id: None,
            mode: None,
            messages: vec![],
            tools: Vec::new(),
-            tool_choice: None,
            stop: Vec::new(),
-            temperature: AssistantSettings::temperature_for_model(model, cx),
+            temperature: None,
        };

        for message in &self.messages {
@@ -1608,9 +1535,9 @@ impl Thread {
                                            completion.queue_state =  QueueState::Started;
                                        }
                                        CompletionRequestStatus::Failed {
-                                            code, message, request_id
+                                            code, message
                                        } => {
-                                            return Err(anyhow!("completion request failed. request_id: {request_id}, code: {code}, message: {message}"));
+                                            return Err(anyhow!("completion request failed. code: {code}, message: {message}"));
                                        }
                                        CompletionRequestStatus::UsageUpdated {
                                            amount, limit
@@ -1772,7 +1699,7 @@ impl Thread {
            If the conversation is about a specific subject, include it in the title. \
            Be descriptive. DO NOT speak in the first person.";

-        let request = self.to_summarize_request(&model.model, added_user_message.into(), cx);
+        let request = self.to_summarize_request(added_user_message.into());

        self.pending_summary = cx.spawn(async move |this, cx| {
            async move {
@@ -1858,7 +1785,7 @@ impl Thread {
             4. Any action items or next steps if any\n\
             Format it in Markdown with headings and bullet points.";

-        let request = self.to_summarize_request(&model, added_user_message.into(), cx);
+        let request = self.to_summarize_request(added_user_message.into());

        *self.detailed_summary_tx.borrow_mut() = DetailedSummaryState::Generating {
            message_id: last_message_id,
@@ -1950,7 +1877,8 @@ impl Thread {
        model: Arc<dyn LanguageModel>,
    ) -> Vec<PendingToolUse> {
        self.auto_capture_telemetry(cx);
-        let request = Arc::new(self.to_completion_request(model.clone(), cx));
+        let request = self.to_completion_request(model, cx);
+        let messages = Arc::new(request.messages);
        let pending_tool_uses = self
            .tool_use
            .pending_tool_uses()
@@ -1968,7 +1896,7 @@ impl Thread {
                        tool_use.id.clone(),
                        tool_use.ui_text.clone(),
                        tool_use.input.clone(),
-                        request.clone(),
+                        messages.clone(),
                        tool,
                    );
                    cx.emit(ThreadEvent::ToolConfirmationNeeded);
@@ -1977,9 +1905,8 @@ impl Thread {
                        tool_use.id.clone(),
                        tool_use.ui_text.clone(),
                        tool_use.input.clone(),
-                        request.clone(),
+                        &messages,
                        tool,
-                        model.clone(),
                        window,
                        cx,
                    );
@@ -2072,14 +1999,12 @@ impl Thread {
        tool_use_id: LanguageModelToolUseId,
        ui_text: impl Into<SharedString>,
        input: serde_json::Value,
-        request: Arc<LanguageModelRequest>,
+        messages: &[LanguageModelRequestMessage],
        tool: Arc<dyn Tool>,
-        model: Arc<dyn LanguageModel>,
        window: Option<AnyWindowHandle>,
        cx: &mut Context<Thread>,
    ) {
-        let task =
-            self.spawn_tool_use(tool_use_id.clone(), request, input, tool, model, window, cx);
+        let task = self.spawn_tool_use(tool_use_id.clone(), messages, input, tool, window, cx);
        self.tool_use
            .run_pending_tool(tool_use_id, ui_text.into(), task);
    }
@@ -2087,10 +2012,9 @@ impl Thread {
    fn spawn_tool_use(
        &mut self,
        tool_use_id: LanguageModelToolUseId,
-        request: Arc<LanguageModelRequest>,
+        messages: &[LanguageModelRequestMessage],
        input: serde_json::Value,
        tool: Arc<dyn Tool>,
-        model: Arc<dyn LanguageModel>,
        window: Option<AnyWindowHandle>,
        cx: &mut Context<Thread>,
    ) -> Task<()> {
@@ -2101,10 +2025,9 @@ impl Thread {
        } else {
            tool.run(
                input,
-                request,
+                messages,
                self.project.clone(),
                self.action_log.clone(),
-                model,
                window,
                cx,
            )
@@ -2384,7 +2307,7 @@ impl Thread {
                .map(|repo| {
                    repo.update(cx, |repo, _| {
                        let current_branch =
-                            repo.branch.as_ref().map(|branch| branch.name.to_string());
+                            repo.branch.as_ref().map(|branch| branch.name().to_owned());
                        repo.send_job(None, |state, _| async move {
                            let RepositoryState::Local { backend, .. } = state else {
                                return GitState {
@@ -2487,13 +2410,6 @@ impl Thread {

                writeln!(markdown, "**\n")?;
                writeln!(markdown, "{}", tool_result.content)?;
-                if let Some(output) = tool_result.output.as_ref() {
-                    writeln!(
-                        markdown,
-                        "\n\nDebug Output:\n\n```json\n{}\n```\n",
-                        serde_json::to_string_pretty(output)?
-                    )?;
-                }
            }
        }

@@ -2742,7 +2658,7 @@ struct PendingCompletion {
 mod tests {
    use super::*;
    use crate::{ThreadStore, context::load_context, context_store::ContextStore, thread_store};
-    use assistant_settings::{AssistantSettings, LanguageModelParameters};
+    use assistant_settings::AssistantSettings;
    use assistant_tool::ToolRegistry;
    use editor::EditorSettings;
    use gpui::TestAppContext;
@@ -3153,100 +3069,6 @@ fn main() {{
        );
    }

-    #[gpui::test]
-    async fn test_temperature_setting(cx: &mut TestAppContext) {
-        init_test_settings(cx);
-
-        let project = create_test_project(
-            cx,
-            json!({"code.rs": "fn main() {\n    println!(\"Hello, world!\");\n}"}),
-        )
-        .await;
-
-        let (_workspace, _thread_store, thread, _context_store, model) =
-            setup_test_environment(cx, project.clone()).await;
-
-        // Both model and provider
-        cx.update(|cx| {
-            AssistantSettings::override_global(
-                AssistantSettings {
-                    model_parameters: vec![LanguageModelParameters {
-                        provider: Some(model.provider_id().0.to_string().into()),
-                        model: Some(model.id().0.clone()),
-                        temperature: Some(0.66),
-                    }],
-                    ..AssistantSettings::get_global(cx).clone()
-                },
-                cx,
-            );
-        });
-
-        let request = thread.update(cx, |thread, cx| {
-            thread.to_completion_request(model.clone(), cx)
-        });
-        assert_eq!(request.temperature, Some(0.66));
-
-        // Only model
-        cx.update(|cx| {
-            AssistantSettings::override_global(
-                AssistantSettings {
-                    model_parameters: vec![LanguageModelParameters {
-                        provider: None,
-                        model: Some(model.id().0.clone()),
-                        temperature: Some(0.66),
-                    }],
-                    ..AssistantSettings::get_global(cx).clone()
-                },
-                cx,
-            );
-        });
-
-        let request = thread.update(cx, |thread, cx| {
-            thread.to_completion_request(model.clone(), cx)
-        });
-        assert_eq!(request.temperature, Some(0.66));
-
-        // Only provider
-        cx.update(|cx| {
-            AssistantSettings::override_global(
-                AssistantSettings {
-                    model_parameters: vec![LanguageModelParameters {
-                        provider: Some(model.provider_id().0.to_string().into()),
-                        model: None,
-                        temperature: Some(0.66),
-                    }],
-                    ..AssistantSettings::get_global(cx).clone()
-                },
-                cx,
-            );
-        });
-
-        let request = thread.update(cx, |thread, cx| {
-            thread.to_completion_request(model.clone(), cx)
-        });
-        assert_eq!(request.temperature, Some(0.66));
-
-        // Same model name, different provider
-        cx.update(|cx| {
-            AssistantSettings::override_global(
-                AssistantSettings {
-                    model_parameters: vec![LanguageModelParameters {
-                        provider: Some("anthropic".into()),
-                        model: Some(model.id().0.clone()),
-                        temperature: Some(0.66),
-                    }],
-                    ..AssistantSettings::get_global(cx).clone()
-                },
-                cx,
-            );
-        });
-
-        let request = thread.update(cx, |thread, cx| {
-            thread.to_completion_request(model.clone(), cx)
-        });
-        assert_eq!(request.temperature, None);
-    }
-
    fn init_test_settings(cx: &mut TestAppContext) {
        cx.update(|cx| {
            let settings_store = SettingsStore::test(cx);
--- a/crates/agent/src/thread_history.rs
+++ b/crates/agent/src/thread_history.rs
@@ -3,7 +3,7 @@ use std::ops::Range;
 use std::sync::Arc;

 use assistant_context_editor::SavedContextMetadata;
-use chrono::{Datelike as _, Local, NaiveDate, TimeDelta};
+use chrono::{Datelike as _, NaiveDate, TimeDelta, Utc};
 use editor::{Editor, EditorEvent};
 use fuzzy::{StringMatch, StringMatchCandidate};
 use gpui::{
@@ -19,10 +19,10 @@ use util::ResultExt;

 use crate::history_store::{HistoryEntry, HistoryStore};
 use crate::thread_store::SerializedThreadMetadata;
-use crate::{AgentPanel, RemoveSelectedThread};
+use crate::{AssistantPanel, RemoveSelectedThread};

 pub struct ThreadHistory {
-    agent_panel: WeakEntity<AgentPanel>,
+    assistant_panel: WeakEntity<AssistantPanel>,
    history_store: Entity<HistoryStore>,
    scroll_handle: UniformListScrollHandle,
    selected_index: usize,
@@ -31,8 +31,6 @@ pub struct ThreadHistory {
    // When the search is empty, we display date separators between history entries
    // This vector contains an enum of either a separator or an actual entry
    separated_items: Vec<HistoryListItem>,
-    // Maps entry indexes to list item indexes
-    separated_item_indexes: Vec<u32>,
    _separated_items_task: Option<Task<()>>,
    search_state: SearchState,
    scrollbar_visibility: bool,
@@ -71,7 +69,7 @@ impl HistoryListItem {

 impl ThreadHistory {
    pub(crate) fn new(
-        agent_panel: WeakEntity<AgentPanel>,
+        assistant_panel: WeakEntity<AssistantPanel>,
        history_store: Entity<HistoryStore>,
        window: &mut Window,
        cx: &mut Context<Self>,
@@ -98,14 +96,13 @@ impl ThreadHistory {
        let scrollbar_state = ScrollbarState::new(scroll_handle.clone());

        let mut this = Self {
-            agent_panel,
+            assistant_panel,
            history_store,
            scroll_handle,
            selected_index: 0,
            search_state: SearchState::Empty,
            all_entries: Default::default(),
            separated_items: Default::default(),
-            separated_item_indexes: Default::default(),
            search_editor,
            scrollbar_visibility: true,
            scrollbar_state,
@@ -122,7 +119,7 @@ impl ThreadHistory {
            .update(cx, |store, cx| store.entries(cx))
            .into();

-        self.set_selected_entry_index(0, cx);
+        self.set_selected_index(0, cx);
        self.update_separated_items(cx);

        match &self.search_state {
@@ -136,47 +133,35 @@ impl ThreadHistory {

    fn update_separated_items(&mut self, cx: &mut Context<Self>) {
        self._separated_items_task.take();
-        let all_entries = self.all_entries.clone();

-        let mut items = std::mem::take(&mut self.separated_items);
-        let mut indexes = std::mem::take(&mut self.separated_item_indexes);
-        items.clear();
-        indexes.clear();
-        // We know there's going to be at least one bucket separator
-        items.reserve(all_entries.len() + 1);
-        indexes.reserve(all_entries.len() + 1);
+        let mut separated_items = std::mem::take(&mut self.separated_items);
+        separated_items.clear();
+        let all_entries = self.all_entries.clone();

        let bg_task = cx.background_spawn(async move {
            let mut bucket = None;
-            let today = Local::now().naive_local().date();
+            let today = Utc::now().naive_local().date();

            for (index, entry) in all_entries.iter().enumerate() {
-                let entry_date = entry
-                    .updated_at()
-                    .with_timezone(&Local)
-                    .naive_local()
-                    .date();
+                let entry_date = entry.updated_at().naive_local().date();
                let entry_bucket = TimeBucket::from_dates(today, entry_date);

                if Some(entry_bucket) != bucket {
                    bucket = Some(entry_bucket);
-                    items.push(HistoryListItem::BucketSeparator(entry_bucket));
+                    separated_items.push(HistoryListItem::BucketSeparator(entry_bucket));
                }
-
-                indexes.push(items.len() as u32);
-                items.push(HistoryListItem::Entry {
+                separated_items.push(HistoryListItem::Entry {
                    index,
                    format: entry_bucket.into(),
                });
            }
-            (items, indexes)
+            separated_items
        });

        let task = cx.spawn(async move |this, cx| {
-            let (items, indexes) = bg_task.await;
+            let separated_items = bg_task.await;
            this.update(cx, |this, cx| {
-                this.separated_items = items;
-                this.separated_item_indexes = indexes;
+                this.separated_items = separated_items;
                cx.notify();
            })
            .log_err();
@@ -244,7 +229,7 @@ impl ThreadHistory {
                            matches,
                        };

-                        this.set_selected_entry_index(0, cx);
+                        this.set_selected_index(0, cx);
                        cx.notify();
                    };
                })
@@ -267,14 +252,6 @@ impl ThreadHistory {
        }
    }

-    fn list_item_count(&self) -> usize {
-        match &self.search_state {
-            SearchState::Empty => self.separated_items.len(),
-            SearchState::Searching { .. } => 0,
-            SearchState::Searched { matches, .. } => matches.len(),
-        }
-    }
-
    fn search_produced_no_matches(&self) -> bool {
        match &self.search_state {
            SearchState::Empty => false,
@@ -302,9 +279,9 @@ impl ThreadHistory {
        let count = self.matched_count();
        if count > 0 {
            if self.selected_index == 0 {
-                self.set_selected_entry_index(count - 1, cx);
+                self.set_selected_index(count - 1, cx);
            } else {
-                self.set_selected_entry_index(self.selected_index - 1, cx);
+                self.set_selected_index(self.selected_index - 1, cx);
            }
        }
    }
@@ -318,9 +295,9 @@ impl ThreadHistory {
        let count = self.matched_count();
        if count > 0 {
            if self.selected_index == count - 1 {
-                self.set_selected_entry_index(0, cx);
+                self.set_selected_index(0, cx);
            } else {
-                self.set_selected_entry_index(self.selected_index + 1, cx);
+                self.set_selected_index(self.selected_index + 1, cx);
            }
        }
    }
@@ -333,32 +310,21 @@ impl ThreadHistory {
    ) {
        let count = self.matched_count();
        if count > 0 {
-            self.set_selected_entry_index(0, cx);
+            self.set_selected_index(0, cx);
        }
    }

    fn select_last(&mut self, _: &menu::SelectLast, _window: &mut Window, cx: &mut Context<Self>) {
        let count = self.matched_count();
        if count > 0 {
-            self.set_selected_entry_index(count - 1, cx);
+            self.set_selected_index(count - 1, cx);
        }
    }

-    fn set_selected_entry_index(&mut self, entry_index: usize, cx: &mut Context<Self>) {
-        self.selected_index = entry_index;
-
-        let scroll_ix = match self.search_state {
-            SearchState::Empty | SearchState::Searching { .. } => self
-                .separated_item_indexes
-                .get(entry_index)
-                .map(|ix| *ix as usize)
-                .unwrap_or(entry_index + 1),
-            SearchState::Searched { .. } => entry_index,
-        };
-
+    fn set_selected_index(&mut self, index: usize, cx: &mut Context<Self>) {
+        self.selected_index = index;
        self.scroll_handle
-            .scroll_to_item(scroll_ix, ScrollStrategy::Top);
-
+            .scroll_to_item(index, ScrollStrategy::Top);
        cx.notify();
    }

@@ -402,12 +368,14 @@ impl ThreadHistory {
    fn confirm(&mut self, _: &menu::Confirm, window: &mut Window, cx: &mut Context<Self>) {
        if let Some(entry) = self.get_match(self.selected_index) {
            let task_result = match entry {
-                HistoryEntry::Thread(thread) => self.agent_panel.update(cx, move |this, cx| {
+                HistoryEntry::Thread(thread) => self.assistant_panel.update(cx, move |this, cx| {
                    this.open_thread_by_id(&thread.id, window, cx)
                }),
-                HistoryEntry::Context(context) => self.agent_panel.update(cx, move |this, cx| {
-                    this.open_saved_prompt_editor(context.path.clone(), window, cx)
-                }),
+                HistoryEntry::Context(context) => {
+                    self.assistant_panel.update(cx, move |this, cx| {
+                        this.open_saved_prompt_editor(context.path.clone(), window, cx)
+                    })
+                }
            };

            if let Some(task) = task_result.log_err() {
@@ -427,10 +395,10 @@ impl ThreadHistory {
        if let Some(entry) = self.get_match(self.selected_index) {
            let task_result = match entry {
                HistoryEntry::Thread(thread) => self
-                    .agent_panel
+                    .assistant_panel
                    .update(cx, |this, cx| this.delete_thread(&thread.id, cx)),
                HistoryEntry::Context(context) => self
-                    .agent_panel
+                    .assistant_panel
                    .update(cx, |this, cx| this.delete_context(context.path.clone(), cx)),
            };

@@ -526,7 +494,7 @@ impl ThreadHistory {
        match entry {
            HistoryEntry::Thread(thread) => PastThread::new(
                thread.clone(),
-                self.agent_panel.clone(),
+                self.assistant_panel.clone(),
                is_active,
                highlight_positions,
                format,
@@ -534,7 +502,7 @@ impl ThreadHistory {
            .into_any_element(),
            HistoryEntry::Context(context) => PastContext::new(
                context.clone(),
-                self.agent_panel.clone(),
+                self.assistant_panel.clone(),
                is_active,
                highlight_positions,
                format,
@@ -607,7 +575,7 @@ impl Render for ThreadHistory {
                            uniform_list(
                                cx.entity().clone(),
                                "thread-history",
-                                self.list_item_count(),
+                                self.matched_count(),
                                Self::list_items,
                            )
                            .p_1()
@@ -625,7 +593,7 @@ impl Render for ThreadHistory {
 #[derive(IntoElement)]
 pub struct PastThread {
    thread: SerializedThreadMetadata,
-    agent_panel: WeakEntity<AgentPanel>,
+    assistant_panel: WeakEntity<AssistantPanel>,
    selected: bool,
    highlight_positions: Vec<usize>,
    timestamp_format: EntryTimeFormat,
@@ -634,14 +602,14 @@ pub struct PastThread {
 impl PastThread {
    pub fn new(
        thread: SerializedThreadMetadata,
-        agent_panel: WeakEntity<AgentPanel>,
+        assistant_panel: WeakEntity<AssistantPanel>,
        selected: bool,
        highlight_positions: Vec<usize>,
        timestamp_format: EntryTimeFormat,
    ) -> Self {
        Self {
            thread,
-            agent_panel,
+            assistant_panel,
            selected,
            highlight_positions,
            timestamp_format,
@@ -654,7 +622,7 @@ impl RenderOnce for PastThread {
        let summary = self.thread.summary;

        let thread_timestamp = self.timestamp_format.format_timestamp(
-            &self.agent_panel,
+            &self.assistant_panel,
            self.thread.updated_at.timestamp(),
            cx,
        );
@@ -687,10 +655,10 @@ impl RenderOnce for PastThread {
                                Tooltip::for_action("Delete", &RemoveSelectedThread, window, cx)
                            })
                            .on_click({
-                                let agent_panel = self.agent_panel.clone();
+                                let assistant_panel = self.assistant_panel.clone();
                                let id = self.thread.id.clone();
                                move |_event, _window, cx| {
-                                    agent_panel
+                                    assistant_panel
                                        .update(cx, |this, cx| {
                                            this.delete_thread(&id, cx).detach_and_log_err(cx);
                                        })
@@ -700,10 +668,10 @@ impl RenderOnce for PastThread {
                    ),
            )
            .on_click({
-                let agent_panel = self.agent_panel.clone();
+                let assistant_panel = self.assistant_panel.clone();
                let id = self.thread.id.clone();
                move |_event, window, cx| {
-                    agent_panel
+                    assistant_panel
                        .update(cx, |this, cx| {
                            this.open_thread_by_id(&id, window, cx)
                                .detach_and_log_err(cx);
@@ -717,7 +685,7 @@ impl RenderOnce for PastThread {
 #[derive(IntoElement)]
 pub struct PastContext {
    context: SavedContextMetadata,
-    agent_panel: WeakEntity<AgentPanel>,
+    assistant_panel: WeakEntity<AssistantPanel>,
    selected: bool,
    highlight_positions: Vec<usize>,
    timestamp_format: EntryTimeFormat,
@@ -726,14 +694,14 @@ pub struct PastContext {
 impl PastContext {
    pub fn new(
        context: SavedContextMetadata,
-        agent_panel: WeakEntity<AgentPanel>,
+        assistant_panel: WeakEntity<AssistantPanel>,
        selected: bool,
        highlight_positions: Vec<usize>,
        timestamp_format: EntryTimeFormat,
    ) -> Self {
        Self {
            context,
-            agent_panel,
+            assistant_panel,
            selected,
            highlight_positions,
            timestamp_format,
@@ -745,7 +713,7 @@ impl RenderOnce for PastContext {
    fn render(self, _window: &mut Window, cx: &mut App) -> impl IntoElement {
        let summary = self.context.title;
        let context_timestamp = self.timestamp_format.format_timestamp(
-            &self.agent_panel,
+            &self.assistant_panel,
            self.context.mtime.timestamp(),
            cx,
        );
@@ -780,10 +748,10 @@ impl RenderOnce for PastContext {
                            Tooltip::for_action("Delete", &RemoveSelectedThread, window, cx)
                        })
                        .on_click({
-                            let agent_panel = self.agent_panel.clone();
+                            let assistant_panel = self.assistant_panel.clone();
                            let path = self.context.path.clone();
                            move |_event, _window, cx| {
-                                agent_panel
+                                assistant_panel
                                    .update(cx, |this, cx| {
                                        this.delete_context(path.clone(), cx)
                                            .detach_and_log_err(cx);
@@ -794,10 +762,10 @@ impl RenderOnce for PastContext {
                ),
        )
        .on_click({
-            let agent_panel = self.agent_panel.clone();
+            let assistant_panel = self.assistant_panel.clone();
            let path = self.context.path.clone();
            move |_event, window, cx| {
-                agent_panel
+                assistant_panel
                    .update(cx, |this, cx| {
                        this.open_saved_prompt_editor(path.clone(), window, cx)
                            .detach_and_log_err(cx);
@@ -817,12 +785,12 @@ pub enum EntryTimeFormat {
 impl EntryTimeFormat {
    fn format_timestamp(
        &self,
-        agent_panel: &WeakEntity<AgentPanel>,
+        assistant_panel: &WeakEntity<AssistantPanel>,
        timestamp: i64,
        cx: &App,
    ) -> String {
        let timestamp = OffsetDateTime::from_unix_timestamp(timestamp).unwrap();
-        let timezone = agent_panel
+        let timezone = assistant_panel
            .read_with(cx, |this, _cx| this.local_timezone())
            .unwrap_or(UtcOffset::UTC);

--- a/crates/agent/src/thread_store.rs
+++ b/crates/agent/src/thread_store.rs
@@ -5,7 +5,7 @@ use std::rc::Rc;
 use std::sync::Arc;

 use anyhow::{Context as _, Result, anyhow};
-use assistant_settings::{AgentProfile, AgentProfileId, AssistantSettings, CompletionMode};
+use assistant_settings::{AgentProfile, AgentProfileId, AssistantSettings};
 use assistant_tool::{ToolId, ToolSource, ToolWorkingSet};
 use chrono::{DateTime, Utc};
 use collections::HashMap;
@@ -28,7 +28,6 @@ use prompt_store::{
 };
 use serde::{Deserialize, Serialize};
 use settings::{Settings as _, SettingsStore};
-use ui::Window;
 use util::ResultExt as _;

 use crate::context_server_tool::ContextServerTool;
@@ -389,20 +388,18 @@ impl ThreadStore {
    pub fn open_thread(
        &self,
        id: &ThreadId,
-        window: &mut Window,
        cx: &mut Context<Self>,
    ) -> Task<Result<Entity<Thread>>> {
        let id = id.clone();
        let database_future = ThreadsDatabase::global_future(cx);
-        let this = cx.weak_entity();
-        window.spawn(cx, async move |cx| {
+        cx.spawn(async move |this, cx| {
            let database = database_future.await.map_err(|err| anyhow!(err))?;
            let thread = database
                .try_find_thread(id.clone())
                .await?
                .ok_or_else(|| anyhow!("no thread found with ID: {id:?}"))?;

-            let thread = this.update_in(cx, |this, window, cx| {
+            let thread = this.update(cx, |this, cx| {
                cx.new(|cx| {
                    Thread::deserialize(
                        id.clone(),
@@ -411,7 +408,6 @@ impl ThreadStore {
                        this.tools.clone(),
                        this.prompt_builder.clone(),
                        this.project_context.clone(),
-                        window,
                        cx,
                    )
                })
@@ -655,10 +651,6 @@ pub struct SerializedThread {
    pub exceeded_window_error: Option<ExceededWindowError>,
    #[serde(default)]
    pub model: Option<SerializedLanguageModel>,
-    #[serde(default)]
-    pub completion_mode: Option<CompletionMode>,
-    #[serde(default)]
-    pub profile: Option<AgentProfileId>,
 }

 #[derive(Serialize, Deserialize, Debug)]
@@ -778,7 +770,6 @@ pub struct SerializedToolResult {
    pub tool_use_id: LanguageModelToolUseId,
    pub is_error: bool,
    pub content: Arc<str>,
-    pub output: Option<serde_json::Value>,
 }

 #[derive(Serialize, Deserialize)]
@@ -803,8 +794,6 @@ impl LegacySerializedThread {
            detailed_summary_state: DetailedSummaryState::default(),
            exceeded_window_error: None,
            model: None,
-            completion_mode: None,
-            profile: None,
        }
    }
 }
--- a/crates/agent/src/tool_use.rs
+++ b/crates/agent/src/tool_use.rs
@@ -1,17 +1,16 @@
 use std::sync::Arc;

 use anyhow::Result;
-use assistant_tool::{AnyToolCard, Tool, ToolResultOutput, ToolUseStatus, 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::{
-    ConfiguredModel, LanguageModel, LanguageModelRequest, LanguageModelToolResult,
-    LanguageModelToolUse, LanguageModelToolUseId, Role,
+    ConfiguredModel, LanguageModel, LanguageModelRequestMessage, LanguageModelToolResult,
+    LanguageModelToolUse, LanguageModelToolUseId, MessageContent, Role,
 };
-use project::Project;
-use ui::{IconName, Window};
+use ui::IconName;
 use util::truncate_lines_to_byte_limit;

 use crate::thread::{MessageId, PromptId, ThreadId};
@@ -55,9 +54,6 @@ impl ToolUseState {
    pub fn from_serialized_messages(
        tools: Entity<ToolWorkingSet>,
        messages: &[SerializedMessage],
-        project: Entity<Project>,
-        window: &mut Window,
-        cx: &mut App,
    ) -> Self {
        let mut this = Self::new(tools);
        let mut tool_names_by_id = HashMap::default();
@@ -97,23 +93,12 @@ impl ToolUseState {
                            this.tool_results.insert(
                                tool_use_id.clone(),
                                LanguageModelToolResult {
-                                    tool_use_id: tool_use_id.clone(),
+                                    tool_use_id,
                                    tool_name: tool_use.clone(),
                                    is_error: tool_result.is_error,
                                    content: tool_result.content.clone(),
-                                    output: tool_result.output.clone(),
                                },
                            );
-
-                            if let Some(tool) = this.tools.read(cx).tool(tool_use, cx) {
-                                if let Some(output) = tool_result.output.clone() {
-                                    if let Some(card) =
-                                        tool.deserialize_card(output, project.clone(), window, cx)
-                                    {
-                                        this.tool_result_cards.insert(tool_use_id, card);
-                                    }
-                                }
-                            }
                        }
                    }
                }
@@ -139,7 +124,6 @@ impl ToolUseState {
                        tool_use_id: tool_use_id.clone(),
                        tool_name: tool_use.name.clone(),
                        content,
-                        output: None,
                        is_error: true,
                    },
                );
@@ -354,7 +338,7 @@ impl ToolUseState {
        tool_use_id: LanguageModelToolUseId,
        ui_text: impl Into<Arc<str>>,
        input: serde_json::Value,
-        request: Arc<LanguageModelRequest>,
+        messages: Arc<Vec<LanguageModelRequestMessage>>,
        tool: Arc<dyn Tool>,
    ) {
        if let Some(tool_use) = self.pending_tool_uses_by_id.get_mut(&tool_use_id) {
@@ -363,7 +347,7 @@ impl ToolUseState {
            let confirmation = Confirmation {
                tool_use_id,
                input,
-                request,
+                messages,
                tool,
                ui_text,
            };
@@ -375,7 +359,7 @@ impl ToolUseState {
        &mut self,
        tool_use_id: LanguageModelToolUseId,
        tool_name: Arc<str>,
-        output: Result<ToolResultOutput>,
+        output: Result<String>,
        configured_model: Option<&ConfiguredModel>,
    ) -> Option<PendingToolUse> {
        let metadata = self.tool_use_metadata_by_id.remove(&tool_use_id);
@@ -395,8 +379,7 @@ impl ToolUseState {
        );

        match output {
-            Ok(output) => {
-                let tool_result = output.content;
+            Ok(tool_result) => {
                const BYTES_PER_TOKEN_ESTIMATE: usize = 3;

                // Protect from clearly large output
@@ -423,7 +406,6 @@ impl ToolUseState {
                        tool_name,
                        content: tool_result.into(),
                        is_error: false,
-                        output: output.output,
                    },
                );
                self.pending_tool_uses_by_id.remove(&tool_use_id)
@@ -436,7 +418,6 @@ impl ToolUseState {
                        tool_name,
                        content: err.to_string().into(),
                        is_error: true,
-                        output: None,
                    },
                );

@@ -449,20 +430,71 @@ impl ToolUseState {
        }
    }

+    pub fn attach_tool_uses(
+        &self,
+        message_id: MessageId,
+        request_message: &mut LanguageModelRequestMessage,
+    ) {
+        if let Some(tool_uses) = self.tool_uses_by_assistant_message.get(&message_id) {
+            for tool_use in tool_uses {
+                if self.tool_results.contains_key(&tool_use.id) {
+                    // Do not send tool uses until they are completed
+                    request_message
+                        .content
+                        .push(MessageContent::ToolUse(tool_use.clone()));
+                } else {
+                    log::debug!(
+                        "skipped tool use {:?} because it is still pending",
+                        tool_use
+                    );
+                }
+            }
+        }
+    }
+
    pub fn has_tool_results(&self, assistant_message_id: MessageId) -> bool {
        self.tool_uses_by_assistant_message
            .contains_key(&assistant_message_id)
    }

-    pub fn tool_results(
+    pub fn tool_results_message(
        &self,
        assistant_message_id: MessageId,
-    ) -> impl Iterator<Item = (&LanguageModelToolUse, Option<&LanguageModelToolResult>)> {
-        self.tool_uses_by_assistant_message
-            .get(&assistant_message_id)
-            .into_iter()
-            .flatten()
-            .map(|tool_use| (tool_use, self.tool_results.get(&tool_use.id)))
+    ) -> Option<LanguageModelRequestMessage> {
+        let tool_uses = self
+            .tool_uses_by_assistant_message
+            .get(&assistant_message_id)?;
+
+        if tool_uses.is_empty() {
+            return None;
+        }
+
+        let mut request_message = LanguageModelRequestMessage {
+            role: Role::User,
+            content: vec![],
+            cache: false,
+        };
+
+        for tool_use in tool_uses {
+            if let Some(tool_result) = self.tool_results.get(&tool_use.id) {
+                request_message
+                    .content
+                    .push(MessageContent::ToolResult(LanguageModelToolResult {
+                        tool_use_id: tool_use.id.clone(),
+                        tool_name: tool_result.tool_name.clone(),
+                        is_error: tool_result.is_error,
+                        content: if tool_result.content.is_empty() {
+                            // Surprisingly, the API fails if we return an empty string here.
+                            // It thinks we are sending a tool use without a tool result.
+                            "<Tool returned an empty string>".into()
+                        } else {
+                            tool_result.content.clone()
+                        },
+                    }));
+            }
+        }
+
+        Some(request_message)
    }
 }

@@ -483,7 +515,7 @@ pub struct Confirmation {
    pub tool_use_id: LanguageModelToolUseId,
    pub input: serde_json::Value,
    pub ui_text: Arc<str>,
-    pub request: Arc<LanguageModelRequest>,
+    pub messages: Arc<Vec<LanguageModelRequestMessage>>,
    pub tool: Arc<dyn Tool>,
 }

--- a/crates/agent/src/ui.rs
+++ b/crates/agent/src/ui.rs
@@ -2,7 +2,6 @@ mod agent_notification;
 mod animated_label;
 mod context_pill;
 mod max_mode_tooltip;
-mod onboarding_modal;
 pub mod preview;
 mod upsell;

@@ -10,4 +9,3 @@ pub use agent_notification::*;
 pub use animated_label::*;
 pub use context_pill::*;
 pub use max_mode_tooltip::*;
-pub use onboarding_modal::*;
--- a/crates/agent/src/ui/onboarding_modal.rs
+++ b/crates/agent/src/ui/onboarding_modal.rs
@@ -1,174 +0,0 @@
-use gpui::{
-    ClickEvent, DismissEvent, Entity, EventEmitter, FocusHandle, Focusable, MouseDownEvent, Render,
-};
-use ui::{TintColor, Vector, VectorName, prelude::*};
-use workspace::{ModalView, Workspace};
-
-use crate::agent_panel::AgentPanel;
-
-macro_rules! agent_onboarding_event {
-    ($name:expr) => {
-        telemetry::event!($name, source = "Agent Onboarding");
-    };
-    ($name:expr, $($key:ident $(= $value:expr)?),+ $(,)?) => {
-        telemetry::event!($name, source = "Agent Onboarding", $($key $(= $value)?),+);
-    };
-}
-
-pub struct AgentOnboardingModal {
-    focus_handle: FocusHandle,
-    workspace: Entity<Workspace>,
-}
-
-impl AgentOnboardingModal {
-    pub fn toggle(workspace: &mut Workspace, window: &mut Window, cx: &mut Context<Workspace>) {
-        let workspace_entity = cx.entity();
-        workspace.toggle_modal(window, cx, |_window, cx| Self {
-            workspace: workspace_entity,
-            focus_handle: cx.focus_handle(),
-        });
-    }
-
-    fn open_panel(&mut self, _: &ClickEvent, window: &mut Window, cx: &mut Context<Self>) {
-        self.workspace.update(cx, |workspace, cx| {
-            workspace.focus_panel::<AgentPanel>(window, cx);
-        });
-
-        cx.emit(DismissEvent);
-
-        agent_onboarding_event!("Open Panel Clicked");
-    }
-
-    fn view_blog(&mut self, _: &ClickEvent, _: &mut Window, cx: &mut Context<Self>) {
-        cx.open_url("http://zed.dev/blog/fastest-ai-code-editor");
-        cx.notify();
-
-        agent_onboarding_event!("Blog Link Clicked");
-    }
-
-    fn cancel(&mut self, _: &menu::Cancel, _: &mut Window, cx: &mut Context<Self>) {
-        cx.emit(DismissEvent);
-    }
-}
-
-impl EventEmitter<DismissEvent> for AgentOnboardingModal {}
-
-impl Focusable for AgentOnboardingModal {
-    fn focus_handle(&self, _cx: &App) -> FocusHandle {
-        self.focus_handle.clone()
-    }
-}
-
-impl ModalView for AgentOnboardingModal {}
-
-impl Render for AgentOnboardingModal {
-    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
-        let window_height = window.viewport_size().height;
-        let max_height = window_height - px(200.);
-
-        let base = v_flex()
-            .id("agent-onboarding")
-            .key_context("AgentOnboardingModal")
-            .relative()
-            .w(px(450.))
-            .h_full()
-            .max_h(max_height)
-            .p_4()
-            .gap_2()
-            .elevation_3(cx)
-            .track_focus(&self.focus_handle(cx))
-            .overflow_hidden()
-            .on_action(cx.listener(Self::cancel))
-            .on_action(cx.listener(|_, _: &menu::Cancel, _window, cx| {
-                agent_onboarding_event!("Canceled", trigger = "Action");
-                cx.emit(DismissEvent);
-            }))
-            .on_any_mouse_down(cx.listener(|this, _: &MouseDownEvent, window, _cx| {
-                this.focus_handle.focus(window);
-            }))
-            .child(
-                div()
-                    .absolute()
-                    .top_0()
-                    .right(px(-1.0))
-                    .w(px(441.))
-                    .h(px(240.))
-                    .child(
-                        Vector::new(VectorName::Grid, rems_from_px(441.), rems_from_px(240.))
-                            .color(ui::Color::Custom(cx.theme().colors().text.alpha(0.05))),
-                    ),
-            )
-            .child(
-                div()
-                    .absolute()
-                    .top(px(-8.0))
-                    .right_0()
-                    .w(px(400.))
-                    .h(px(92.))
-                    .child(
-                        Vector::new(VectorName::AiGrid, rems_from_px(400.), rems_from_px(92.))
-                            .color(ui::Color::Custom(cx.theme().colors().text.alpha(0.32))),
-                    ),
-            )
-            .child(
-                div()
-                    .absolute()
-                    .inset_0()
-                    .size_full()
-                    .bg(gpui::linear_gradient(
-                        175.,
-                        gpui::linear_color_stop(
-                            cx.theme().colors().elevated_surface_background,
-                            0.,
-                        ),
-                        gpui::linear_color_stop(
-                            cx.theme().colors().elevated_surface_background.opacity(0.),
-                            0.8,
-                        ),
-                    )),
-            )
-            .child(
-                v_flex()
-                    .w_full()
-                    .gap_1()
-                    .child(
-                        Label::new("Introducing")
-                            .size(LabelSize::Small)
-                            .color(Color::Muted),
-                    )
-                    .child(Headline::new("Agentic Editing in Zed").size(HeadlineSize::Large)),
-            )
-            .child(h_flex().absolute().top_2().right_2().child(
-                IconButton::new("cancel", IconName::X).on_click(cx.listener(
-                    |_, _: &ClickEvent, _window, cx| {
-                        agent_onboarding_event!("Cancelled", trigger = "X click");
-                        cx.emit(DismissEvent);
-                    },
-                )),
-            ));
-
-        let open_panel_button = Button::new("open-panel", "Get Started with the Agent Panel")
-            .icon_size(IconSize::Indicator)
-            .style(ButtonStyle::Tinted(TintColor::Accent))
-            .full_width()
-            .on_click(cx.listener(Self::open_panel));
-
-        let blog_post_button = Button::new("view-blog", "Check out the Blog Post")
-            .icon(IconName::ArrowUpRight)
-            .icon_size(IconSize::Indicator)
-            .icon_color(Color::Muted)
-            .full_width()
-            .on_click(cx.listener(Self::view_blog));
-
-        let copy = "Zed now natively supports agentic editing, enabling fluid collaboration between humans and AI.";
-
-        base.child(Label::new(copy).color(Color::Muted)).child(
-            v_flex()
-                .w_full()
-                .mt_2()
-                .gap_2()
-                .child(open_panel_button)
-                .child(blog_post_button),
-        )
-    }
-}
--- a/crates/anthropic/src/anthropic.rs
+++ b/crates/anthropic/src/anthropic.rs
@@ -578,7 +578,6 @@ pub enum ToolChoice {
    Auto,
    Any,
    Tool { name: String },
-    None,
 }

 #[derive(Debug, Serialize, Deserialize)]
--- a/crates/reqwest_client/LICENSE-GPL
+++ b/crates/reqwest_client/LICENSE-GPL
--- a/crates/assistant/Cargo.toml
+++ b/crates/assistant/Cargo.toml
@@ -0,0 +1,88 @@
+[package]
+name = "assistant"
+version = "0.1.0"
+edition.workspace = true
+publish.workspace = true
+license = "GPL-3.0-or-later"
+
+[lints]
+workspace = true
+
+[lib]
+path = "src/assistant.rs"
+doctest = false
+
+[features]
+test-support = [
+    "editor/test-support",
+    "language/test-support",
+    "project/test-support",
+    "text/test-support",
+]
+
+[dependencies]
+anyhow.workspace = true
+assistant_context_editor.workspace = true
+assistant_settings.workspace = true
+assistant_slash_command.workspace = true
+assistant_slash_commands.workspace = true
+assistant_tool.workspace = true
+async-watch.workspace = true
+client.workspace = true
+collections.workspace = true
+command_palette_hooks.workspace = true
+db.workspace = true
+editor.workspace = true
+feature_flags.workspace = true
+fs.workspace = true
+futures.workspace = true
+gpui.workspace = true
+indexed_docs.workspace = true
+indoc.workspace = true
+language.workspace = true
+language_model.workspace = true
+language_model_selector.workspace = true
+log.workspace = true
+lsp.workspace = true
+menu.workspace = true
+multi_buffer.workspace = true
+parking_lot.workspace = true
+project.workspace = true
+rules_library.workspace = true
+prompt_store.workspace = true
+proto.workspace = true
+rope.workspace = true
+schemars.workspace = true
+search.workspace = true
+serde.workspace = true
+settings.workspace = true
+smol.workspace = true
+streaming_diff.workspace = true
+telemetry.workspace = true
+telemetry_events.workspace = true
+terminal.workspace = true
+terminal_view.workspace = true
+text.workspace = true
+theme.workspace = true
+ui.workspace = true
+util.workspace = true
+workspace.workspace = true
+zed_actions.workspace = true
+workspace-hack.workspace = true
+
+[dev-dependencies]
+ctor.workspace = true
+editor = { workspace = true, features = ["test-support"] }
+env_logger.workspace = true
+language = { workspace = true, features = ["test-support"] }
+language_model = { workspace = true, features = ["test-support"] }
+languages = { workspace = true, features = ["test-support"] }
+log.workspace = true
+pretty_assertions.workspace = true
+project = { workspace = true, features = ["test-support"] }
+rand.workspace = true
+serde_json_lenient.workspace = true
+terminal_view = { workspace = true, features = ["test-support"] }
+text = { workspace = true, features = ["test-support"] }
+tree-sitter-md.workspace = true
+unindent.workspace = true
--- a/crates/assistant/LICENSE-GPL
+++ b/crates/assistant/LICENSE-GPL
@@ -0,0 +1 @@
+../../LICENSE-GPL
--- a/crates/assistant/src/assistant.rs
+++ b/crates/assistant/src/assistant.rs
@@ -1,123 +1,102 @@
-mod active_thread;
-mod agent_configuration;
-mod agent_diff;
-mod agent_model_selector;
-mod agent_panel;
-mod buffer_codegen;
-mod context;
-mod context_picker;
-mod context_server_configuration;
-mod context_server_tool;
-mod context_store;
-mod context_strip;
-mod debug;
-mod history_store;
+#![cfg_attr(target_os = "windows", allow(unused, dead_code))]
+
+mod assistant_configuration;
+pub mod assistant_panel;
 mod inline_assistant;
-mod inline_prompt_editor;
-mod message_editor;
-mod profile_selector;
-mod slash_command_settings;
-mod terminal_codegen;
+pub mod slash_command_settings;
 mod terminal_inline_assistant;
-mod thread;
-mod thread_history;
-mod thread_store;
-mod tool_compatibility;
-mod tool_use;
-mod ui;

 use std::sync::Arc;

-use assistant_settings::{AgentProfileId, AssistantSettings, LanguageModelSelection};
+use assistant_settings::{AssistantSettings, LanguageModelSelection};
 use assistant_slash_command::SlashCommandRegistry;
 use client::Client;
-use feature_flags::FeatureFlagAppExt as _;
+use command_palette_hooks::CommandPaletteFilter;
+use feature_flags::FeatureFlagAppExt;
 use fs::Fs;
-use gpui::{App, actions, impl_actions};
-use language::LanguageRegistry;
-use language_model::{LanguageModelId, LanguageModelProviderId, LanguageModelRegistry};
+use gpui::{App, Global, ReadGlobal, UpdateGlobal, actions};
+use language_model::{
+    LanguageModelId, LanguageModelProviderId, LanguageModelRegistry, LanguageModelResponseMessage,
+};
 use prompt_store::PromptBuilder;
-use schemars::JsonSchema;
 use serde::Deserialize;
-use settings::{Settings as _, SettingsStore};
-use thread::ThreadId;
+use settings::{Settings, SettingsStore};

-pub use crate::active_thread::ActiveThread;
-use crate::agent_configuration::{AddContextServerModal, ManageProfilesModal};
-pub use crate::agent_panel::{AgentPanel, ConcreteAssistantPanelDelegate};
-pub use crate::context::{ContextLoadResult, LoadedContext};
-pub use crate::inline_assistant::InlineAssistant;
+pub use crate::assistant_panel::{AssistantPanel, AssistantPanelEvent};
+pub(crate) use crate::inline_assistant::*;
 use crate::slash_command_settings::SlashCommandSettings;
-pub use crate::thread::{Message, MessageSegment, Thread, ThreadEvent};
-pub use crate::thread_store::{TextThreadStore, ThreadStore};
-pub use agent_diff::{AgentDiffPane, AgentDiffToolbar};
-pub use context_store::ContextStore;
-pub use ui::preview::{all_agent_previews, get_agent_preview};

 actions!(
-    agent,
+    assistant,
    [
-        NewTextThread,
-        ToggleContextPicker,
-        ToggleNavigationMenu,
-        ToggleOptionsMenu,
-        DeleteRecentlyOpenThread,
-        ToggleProfileSelector,
-        RemoveAllContext,
-        ExpandMessageEditor,
-        OpenHistory,
-        AddContextServer,
-        RemoveSelectedThread,
-        Chat,
+        InsertActivePrompt,
+        DeployHistory,
+        NewChat,
        CycleNextInlineAssist,
-        CyclePreviousInlineAssist,
-        FocusUp,
-        FocusDown,
-        FocusLeft,
-        FocusRight,
-        RemoveFocusedContext,
-        AcceptSuggestedContext,
-        OpenActiveThreadAsMarkdown,
-        OpenAgentDiff,
-        Keep,
-        Reject,
-        RejectAll,
-        KeepAll,
-        Follow,
-        ResetTrialUpsell,
+        CyclePreviousInlineAssist
    ]
 );

-#[derive(Default, Clone, PartialEq, Deserialize, JsonSchema)]
-pub struct NewThread {
-    #[serde(default)]
-    from_thread_id: Option<ThreadId>,
+const DEFAULT_CONTEXT_LINES: usize = 50;
+
+#[derive(Deserialize, Debug)]
+pub struct LanguageModelUsage {
+    pub prompt_tokens: u32,
+    pub completion_tokens: u32,
+    pub total_tokens: u32,
 }

-#[derive(PartialEq, Clone, Default, Debug, Deserialize, JsonSchema)]
-pub struct ManageProfiles {
-    #[serde(default)]
-    pub customize_tools: Option<AgentProfileId>,
+#[derive(Deserialize, Debug)]
+pub struct LanguageModelChoiceDelta {
+    pub index: u32,
+    pub delta: LanguageModelResponseMessage,
+    pub finish_reason: Option<String>,
 }

-impl ManageProfiles {
-    pub fn customize_tools(profile_id: AgentProfileId) -> Self {
-        Self {
-            customize_tools: Some(profile_id),
+/// The state pertaining to the Assistant.
+#[derive(Default)]
+struct Assistant {
+    /// Whether the Assistant is enabled.
+    enabled: bool,
+}
+
+impl Global for Assistant {}
+
+impl Assistant {
+    const NAMESPACE: &'static str = "assistant";
+
+    fn set_enabled(&mut self, enabled: bool, cx: &mut App) {
+        if self.enabled == enabled {
+            return;
        }
+
+        self.enabled = enabled;
+
+        if !enabled {
+            CommandPaletteFilter::update_global(cx, |filter, _cx| {
+                filter.hide_namespace(Self::NAMESPACE);
+            });
+
+            return;
+        }
+
+        CommandPaletteFilter::update_global(cx, |filter, _cx| {
+            filter.show_namespace(Self::NAMESPACE);
+        });
+    }
+
+    pub fn enabled(cx: &App) -> bool {
+        Self::global(cx).enabled
    }
 }

-impl_actions!(agent, [NewThread, ManageProfiles]);
-
-/// Initializes the `agent` crate.
 pub fn init(
    fs: Arc<dyn Fs>,
    client: Arc<Client>,
    prompt_builder: Arc<PromptBuilder>,
-    language_registry: Arc<LanguageRegistry>,
    cx: &mut App,
 ) {
+    cx.set_global(Assistant::default());
    AssistantSettings::register(cx);
    SlashCommandSettings::register(cx);

@@ -125,9 +104,8 @@ pub fn init(
    rules_library::init(cx);
    init_language_model_settings(cx);
    assistant_slash_command::init(cx);
-    thread_store::init(cx);
-    agent_panel::init(cx);
-    context_server_configuration::init(language_registry, cx);
+    assistant_tool::init(cx);
+    assistant_panel::init(cx);

    register_slash_commands(cx);
    inline_assistant::init(
@@ -143,8 +121,22 @@ pub fn init(
        cx,
    );
    indexed_docs::init(cx);
-    cx.observe_new(AddContextServerModal::register).detach();
-    cx.observe_new(ManageProfilesModal::register).detach();
+
+    CommandPaletteFilter::update_global(cx, |filter, _cx| {
+        filter.hide_namespace(Assistant::NAMESPACE);
+    });
+    Assistant::update_global(cx, |assistant, cx| {
+        let settings = AssistantSettings::get_global(cx);
+
+        assistant.set_enabled(settings.enabled, cx);
+    });
+    cx.observe_global::<SettingsStore>(|cx| {
+        Assistant::update_global(cx, |assistant, cx| {
+            let settings = AssistantSettings::get_global(cx);
+            assistant.set_enabled(settings.enabled, cx);
+        });
+    })
+    .detach();
 }

 fn init_language_model_settings(cx: &mut App) {
@@ -171,7 +163,7 @@ fn update_active_language_model_from_settings(cx: &mut App) {

    fn to_selected_model(selection: &LanguageModelSelection) -> language_model::SelectedModel {
        language_model::SelectedModel {
-            provider: LanguageModelProviderId::from(selection.provider.0.clone()),
+            provider: LanguageModelProviderId::from(selection.provider.clone()),
            model: LanguageModelId::from(selection.model.clone()),
        }
    }
@@ -258,3 +250,11 @@ fn update_slash_commands_from_settings(cx: &mut App) {
            .unregister_command(assistant_slash_commands::CargoWorkspaceSlashCommand);
    }
 }
+
+#[cfg(test)]
+#[ctor::ctor]
+fn init_logger() {
+    if std::env::var("RUST_LOG").is_ok() {
+        env_logger::init();
+    }
+}
--- a/crates/assistant/src/assistant_configuration.rs
+++ b/crates/assistant/src/assistant_configuration.rs
@@ -0,0 +1,199 @@
+use std::sync::Arc;
+
+use collections::HashMap;
+use gpui::{AnyView, App, EventEmitter, FocusHandle, Focusable, Subscription, canvas};
+use language_model::{LanguageModelProvider, LanguageModelProviderId, LanguageModelRegistry};
+use ui::{ElevationIndex, prelude::*};
+use workspace::Item;
+
+pub struct ConfigurationView {
+    focus_handle: FocusHandle,
+    configuration_views: HashMap<LanguageModelProviderId, AnyView>,
+    _registry_subscription: Subscription,
+}
+
+impl ConfigurationView {
+    pub fn new(window: &mut Window, cx: &mut Context<Self>) -> Self {
+        let focus_handle = cx.focus_handle();
+
+        let registry_subscription = cx.subscribe_in(
+            &LanguageModelRegistry::global(cx),
+            window,
+            |this, _, event: &language_model::Event, window, cx| match event {
+                language_model::Event::AddedProvider(provider_id) => {
+                    let provider = LanguageModelRegistry::read_global(cx).provider(provider_id);
+                    if let Some(provider) = provider {
+                        this.add_configuration_view(&provider, window, cx);
+                    }
+                }
+                language_model::Event::RemovedProvider(provider_id) => {
+                    this.remove_configuration_view(provider_id);
+                }
+                _ => {}
+            },
+        );
+
+        let mut this = Self {
+            focus_handle,
+            configuration_views: HashMap::default(),
+            _registry_subscription: registry_subscription,
+        };
+        this.build_configuration_views(window, cx);
+        this
+    }
+
+    fn build_configuration_views(&mut self, window: &mut Window, cx: &mut Context<Self>) {
+        let providers = LanguageModelRegistry::read_global(cx).providers();
+        for provider in providers {
+            self.add_configuration_view(&provider, window, cx);
+        }
+    }
+
+    fn remove_configuration_view(&mut self, provider_id: &LanguageModelProviderId) {
+        self.configuration_views.remove(provider_id);
+    }
+
+    fn add_configuration_view(
+        &mut self,
+        provider: &Arc<dyn LanguageModelProvider>,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) {
+        let configuration_view = provider.configuration_view(window, cx);
+        self.configuration_views
+            .insert(provider.id(), configuration_view);
+    }
+
+    fn render_provider_view(
+        &mut self,
+        provider: &Arc<dyn LanguageModelProvider>,
+        cx: &mut Context<Self>,
+    ) -> Div {
+        let provider_id = provider.id().0.clone();
+        let provider_name = provider.name().0.clone();
+        let configuration_view = self.configuration_views.get(&provider.id()).cloned();
+
+        let open_new_context = cx.listener({
+            let provider = provider.clone();
+            move |_, _, _window, cx| {
+                cx.emit(ConfigurationViewEvent::NewProviderContextEditor(
+                    provider.clone(),
+                ))
+            }
+        });
+
+        v_flex()
+            .gap_2()
+            .child(
+                h_flex()
+                    .justify_between()
+                    .child(Headline::new(provider_name.clone()).size(HeadlineSize::Small))
+                    .when(provider.is_authenticated(cx), move |this| {
+                        this.child(
+                            h_flex().justify_end().child(
+                                Button::new(
+                                    SharedString::from(format!("new-context-{provider_id}")),
+                                    "Open New Chat",
+                                )
+                                .icon_position(IconPosition::Start)
+                                .icon(IconName::Plus)
+                                .style(ButtonStyle::Filled)
+                                .layer(ElevationIndex::ModalSurface)
+                                .on_click(open_new_context),
+                            ),
+                        )
+                    }),
+            )
+            .child(
+                div()
+                    .p(DynamicSpacing::Base08.rems(cx))
+                    .bg(cx.theme().colors().surface_background)
+                    .border_1()
+                    .border_color(cx.theme().colors().border_variant)
+                    .rounded_sm()
+                    .when(configuration_view.is_none(), |this| {
+                        this.child(div().child(Label::new(format!(
+                            "No configuration view for {}",
+                            provider_name
+                        ))))
+                    })
+                    .when_some(configuration_view, |this, configuration_view| {
+                        this.child(configuration_view)
+                    }),
+            )
+    }
+}
+
+impl Render for ConfigurationView {
+    fn render(&mut self, _window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
+        let providers = LanguageModelRegistry::read_global(cx).providers();
+        let provider_views = providers
+            .into_iter()
+            .map(|provider| self.render_provider_view(&provider, cx))
+            .collect::<Vec<_>>();
+
+        let mut element = v_flex()
+            .id("assistant-configuration-view")
+            .track_focus(&self.focus_handle(cx))
+            .bg(cx.theme().colors().editor_background)
+            .size_full()
+            .overflow_y_scroll()
+            .child(
+                v_flex()
+                    .p(DynamicSpacing::Base16.rems(cx))
+                    .border_b_1()
+                    .border_color(cx.theme().colors().border)
+                    .gap_1()
+                    .child(Headline::new("Configure your Assistant").size(HeadlineSize::Medium))
+                    .child(
+                        Label::new(
+                            "At least one LLM provider must be configured to use the Assistant.",
+                        )
+                        .color(Color::Muted),
+                    ),
+            )
+            .child(
+                v_flex()
+                    .p(DynamicSpacing::Base16.rems(cx))
+                    .mt_1()
+                    .gap_6()
+                    .flex_1()
+                    .children(provider_views),
+            )
+            .into_any();
+
+        // We use a canvas here to get scrolling to work in the ConfigurationView. It's a workaround
+        // because we couldn't the element to take up the size of the parent.
+        canvas(
+            move |bounds, window, cx| {
+                element.prepaint_as_root(bounds.origin, bounds.size.into(), window, cx);
+                element
+            },
+            |_, mut element, window, cx| {
+                element.paint(window, cx);
+            },
+        )
+        .flex_1()
+        .w_full()
+    }
+}
+
+pub enum ConfigurationViewEvent {
+    NewProviderContextEditor(Arc<dyn LanguageModelProvider>),
+}
+
+impl EventEmitter<ConfigurationViewEvent> for ConfigurationView {}
+
+impl Focusable for ConfigurationView {
+    fn focus_handle(&self, _: &App) -> FocusHandle {
+        self.focus_handle.clone()
+    }
+}
+
+impl Item for ConfigurationView {
+    type Event = ConfigurationViewEvent;
+
+    fn tab_content_text(&self, _detail: usize, _cx: &App) -> SharedString {
+        "Configuration".into()
+    }
+}
--- a/crates/assistant/src/assistant_panel.rs
+++ b/crates/assistant/src/assistant_panel.rs
--- a/crates/assistant/src/inline_assistant.rs
+++ b/crates/assistant/src/inline_assistant.rs
--- a/crates/assistant/src/slash_command_settings.rs
+++ b/crates/assistant/src/slash_command_settings.rs
--- a/crates/assistant/src/terminal_inline_assistant.rs
+++ b/crates/assistant/src/terminal_inline_assistant.rs
--- a/crates/assistant_context_editor/Cargo.toml
+++ b/crates/assistant_context_editor/Cargo.toml
@@ -22,6 +22,7 @@ clock.workspace = true
 collections.workspace = true
 context_server.workspace = true
 editor.workspace = true
+feature_flags.workspace = true
 fs.workspace = true
 futures.workspace = true
 fuzzy.workspace = true
--- a/crates/assistant_context_editor/src/context.rs
+++ b/crates/assistant_context_editor/src/context.rs
@@ -3,7 +3,6 @@ mod context_tests;

 use crate::patch::{AssistantEdit, AssistantPatch, AssistantPatchStatus};
 use anyhow::{Context as _, Result, anyhow};
-use assistant_settings::AssistantSettings;
 use assistant_slash_command::{
    SlashCommandContent, SlashCommandEvent, SlashCommandLine, SlashCommandOutputSection,
    SlashCommandResult, SlashCommandWorkingSet,
@@ -1274,10 +1273,10 @@ impl AssistantContext {
    pub(crate) fn count_remaining_tokens(&mut self, cx: &mut Context<Self>) {
        // Assume it will be a Chat request, even though that takes fewer tokens (and risks going over the limit),
        // because otherwise you see in the UI that your empty message has a bunch of tokens already used.
+        let request = self.to_completion_request(RequestType::Chat, cx);
        let Some(model) = LanguageModelRegistry::read_global(cx).default_model() else {
            return;
        };
-        let request = self.to_completion_request(Some(&model.model), RequestType::Chat, cx);
        let debounce = self.token_count.is_some();
        self.pending_token_count = cx.spawn(async move |this, cx| {
            async move {
@@ -1423,7 +1422,7 @@ impl AssistantContext {
        }

        let request = {
-            let mut req = self.to_completion_request(Some(&model), RequestType::Chat, cx);
+            let mut req = self.to_completion_request(RequestType::Chat, cx);
            // Skip the last message because it's likely to change and
            // therefore would be a waste to cache.
            req.messages.pop();
@@ -2322,7 +2321,7 @@ impl AssistantContext {
        // Compute which messages to cache, including the last one.
        self.mark_cache_anchors(&model.cache_configuration(), false, cx);

-        let request = self.to_completion_request(Some(&model), request_type, cx);
+        let request = self.to_completion_request(request_type, cx);

        let assistant_message = self
            .insert_message_after(last_message_id, Role::Assistant, MessageStatus::Pending, cx)
@@ -2562,7 +2561,6 @@ impl AssistantContext {

    pub fn to_completion_request(
        &self,
-        model: Option<&Arc<dyn LanguageModel>>,
        request_type: RequestType,
        cx: &App,
    ) -> LanguageModelRequest {
@@ -2585,10 +2583,8 @@ impl AssistantContext {
            mode: None,
            messages: Vec::new(),
            tools: Vec::new(),
-            tool_choice: None,
            stop: Vec::new(),
-            temperature: model
-                .and_then(|model| AssistantSettings::temperature_for_model(model, cx)),
+            temperature: None,
        };
        for message in self.messages(cx) {
            if message.status != MessageStatus::Done {
@@ -2985,7 +2981,7 @@ impl AssistantContext {
                return;
            }

-            let mut request = self.to_completion_request(Some(&model.model), RequestType::Chat, cx);
+            let mut request = self.to_completion_request(RequestType::Chat, cx);
            request.messages.push(LanguageModelRequestMessage {
                role: Role::User,
                content: vec![
--- a/crates/assistant_context_editor/src/context/context_tests.rs
+++ b/crates/assistant_context_editor/src/context/context_tests.rs
@@ -43,8 +43,9 @@ use workspace::Workspace;

 #[gpui::test]
 fn test_inserting_and_removing_messages(cx: &mut App) {
-    init_test(cx);
-
+    let settings_store = SettingsStore::test(cx);
+    LanguageModelRegistry::test(cx);
+    cx.set_global(settings_store);
    let registry = Arc::new(LanguageRegistry::test(cx.background_executor().clone()));
    let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
    let context = cx.new(|cx| {
@@ -181,8 +182,9 @@ fn test_inserting_and_removing_messages(cx: &mut App) {

 #[gpui::test]
 fn test_message_splitting(cx: &mut App) {
-    init_test(cx);
-
+    let settings_store = SettingsStore::test(cx);
+    cx.set_global(settings_store);
+    LanguageModelRegistry::test(cx);
    let registry = Arc::new(LanguageRegistry::test(cx.background_executor().clone()));

    let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
@@ -283,8 +285,9 @@ fn test_message_splitting(cx: &mut App) {

 #[gpui::test]
 fn test_messages_for_offsets(cx: &mut App) {
-    init_test(cx);
-
+    let settings_store = SettingsStore::test(cx);
+    LanguageModelRegistry::test(cx);
+    cx.set_global(settings_store);
    let registry = Arc::new(LanguageRegistry::test(cx.background_executor().clone()));
    let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
    let context = cx.new(|cx| {
@@ -375,8 +378,10 @@ fn test_messages_for_offsets(cx: &mut App) {

 #[gpui::test]
 async fn test_slash_commands(cx: &mut TestAppContext) {
-    cx.update(init_test);
-
+    let settings_store = cx.update(SettingsStore::test);
+    cx.set_global(settings_store);
+    cx.update(LanguageModelRegistry::test);
+    cx.update(Project::init_settings);
    let fs = FakeFs::new(cx.background_executor.clone());

    fs.insert_tree(
@@ -666,19 +671,22 @@ async fn test_slash_commands(cx: &mut TestAppContext) {

 #[gpui::test]
 async fn test_workflow_step_parsing(cx: &mut TestAppContext) {
+    cx.update(prompt_store::init);
+    let mut settings_store = cx.update(SettingsStore::test);
    cx.update(|cx| {
-        init_test(cx);
-        cx.update_global(|settings_store: &mut SettingsStore, cx| {
-            settings_store
-                .set_user_settings(
-                    r#"{ "assistant": { "enable_experimental_live_diffs": true } }"#,
-                    cx,
-                )
-                .unwrap()
-        })
+        settings_store
+            .set_user_settings(
+                r#"{ "assistant": { "enable_experimental_live_diffs": true } }"#,
+                cx,
+            )
+            .unwrap()
    });
+    cx.set_global(settings_store);
+    cx.update(language::init);
+    cx.update(Project::init_settings);
    let fs = FakeFs::new(cx.executor());
    let project = Project::test(fs, [Path::new("/root")], cx).await;
+    cx.update(LanguageModelRegistry::test);

    let registry = Arc::new(LanguageRegistry::test(cx.executor()));

@@ -1061,8 +1069,9 @@ async fn test_workflow_step_parsing(cx: &mut TestAppContext) {

 #[gpui::test]
 async fn test_serialization(cx: &mut TestAppContext) {
-    cx.update(init_test);
-
+    let settings_store = cx.update(SettingsStore::test);
+    cx.set_global(settings_store);
+    cx.update(LanguageModelRegistry::test);
    let registry = Arc::new(LanguageRegistry::test(cx.executor()));
    let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
    let context = cx.new(|cx| {
@@ -1138,8 +1147,6 @@ async fn test_serialization(cx: &mut TestAppContext) {

 #[gpui::test(iterations = 100)]
 async fn test_random_context_collaboration(cx: &mut TestAppContext, mut rng: StdRng) {
-    cx.update(init_test);
-
    let min_peers = env::var("MIN_PEERS")
        .map(|i| i.parse().expect("invalid `MIN_PEERS` variable"))
        .unwrap_or(2);
@@ -1150,6 +1157,10 @@ async fn test_random_context_collaboration(cx: &mut TestAppContext, mut rng: Std
        .map(|i| i.parse().expect("invalid `OPERATIONS` variable"))
        .unwrap_or(50);

+    let settings_store = cx.update(SettingsStore::test);
+    cx.set_global(settings_store);
+    cx.update(LanguageModelRegistry::test);
+
    let slash_commands = cx.update(SlashCommandRegistry::default_global);
    slash_commands.register_command(FakeSlashCommand("cmd-1".into()), false);
    slash_commands.register_command(FakeSlashCommand("cmd-2".into()), false);
@@ -1418,8 +1429,9 @@ async fn test_random_context_collaboration(cx: &mut TestAppContext, mut rng: Std

 #[gpui::test]
 fn test_mark_cache_anchors(cx: &mut App) {
-    init_test(cx);
-
+    let settings_store = SettingsStore::test(cx);
+    LanguageModelRegistry::test(cx);
+    cx.set_global(settings_store);
    let registry = Arc::new(LanguageRegistry::test(cx.background_executor().clone()));
    let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
    let context = cx.new(|cx| {
@@ -1594,16 +1606,6 @@ fn messages_cache(
        .collect()
 }

-fn init_test(cx: &mut App) {
-    let settings_store = SettingsStore::test(cx);
-    prompt_store::init(cx);
-    LanguageModelRegistry::test(cx);
-    cx.set_global(settings_store);
-    language::init(cx);
-    assistant_settings::init(cx);
-    Project::init_settings(cx);
-}
-
 #[derive(Clone)]
 struct FakeSlashCommand(String);

--- a/crates/assistant_context_editor/src/context_editor.rs
+++ b/crates/assistant_context_editor/src/context_editor.rs
@@ -18,6 +18,7 @@ use editor::{
    scroll::Autoscroll,
 };
 use editor::{FoldPlaceholder, display_map::CreaseId};
+use feature_flags::{Assistant2FeatureFlag, FeatureFlagAppExt as _};
 use fs::Fs;
 use futures::FutureExt;
 use gpui::{
@@ -137,7 +138,7 @@ pub enum ThoughtProcessStatus {
    Completed,
 }

-pub trait AgentPanelDelegate {
+pub trait AssistantPanelDelegate {
    fn active_context_editor(
        &self,
        workspace: &mut Workspace,
@@ -171,7 +172,7 @@ pub trait AgentPanelDelegate {
    );
 }

-impl dyn AgentPanelDelegate {
+impl dyn AssistantPanelDelegate {
    /// Returns the global [`AssistantPanelDelegate`], if it exists.
    pub fn try_global(cx: &App) -> Option<Arc<Self>> {
        cx.try_global::<GlobalAssistantPanelDelegate>()
@@ -184,7 +185,7 @@ impl dyn AgentPanelDelegate {
    }
 }

-struct GlobalAssistantPanelDelegate(Arc<dyn AgentPanelDelegate>);
+struct GlobalAssistantPanelDelegate(Arc<dyn AssistantPanelDelegate>);

 impl Global for GlobalAssistantPanelDelegate {}

@@ -1665,11 +1666,11 @@ impl ContextEditor {
        window: &mut Window,
        cx: &mut Context<Workspace>,
    ) {
-        let Some(agent_panel_delegate) = <dyn AgentPanelDelegate>::try_global(cx) else {
+        let Some(assistant_panel_delegate) = <dyn AssistantPanelDelegate>::try_global(cx) else {
            return;
        };
        let Some(context_editor_view) =
-            agent_panel_delegate.active_context_editor(workspace, window, cx)
+            assistant_panel_delegate.active_context_editor(workspace, window, cx)
        else {
            return;
        };
@@ -1695,9 +1696,9 @@ impl ContextEditor {
        cx: &mut Context<Workspace>,
    ) {
        let result = maybe!({
-            let agent_panel_delegate = <dyn AgentPanelDelegate>::try_global(cx)?;
+            let assistant_panel_delegate = <dyn AssistantPanelDelegate>::try_global(cx)?;
            let context_editor_view =
-                agent_panel_delegate.active_context_editor(workspace, window, cx)?;
+                assistant_panel_delegate.active_context_editor(workspace, window, cx)?;
            Self::get_selection_or_code_block(&context_editor_view, cx)
        });
        let Some((text, is_code_block)) = result else {
@@ -1730,11 +1731,11 @@ impl ContextEditor {
        window: &mut Window,
        cx: &mut Context<Workspace>,
    ) {
-        let Some(agent_panel_delegate) = <dyn AgentPanelDelegate>::try_global(cx) else {
+        let Some(assistant_panel_delegate) = <dyn AssistantPanelDelegate>::try_global(cx) else {
            return;
        };
        let Some(context_editor_view) =
-            agent_panel_delegate.active_context_editor(workspace, window, cx)
+            assistant_panel_delegate.active_context_editor(workspace, window, cx)
        else {
            return;
        };
@@ -1820,7 +1821,7 @@ impl ContextEditor {
        window: &mut Window,
        cx: &mut Context<Workspace>,
    ) {
-        let Some(agent_panel_delegate) = <dyn AgentPanelDelegate>::try_global(cx) else {
+        let Some(assistant_panel_delegate) = <dyn AssistantPanelDelegate>::try_global(cx) else {
            return;
        };

@@ -1851,7 +1852,7 @@ impl ContextEditor {
            return;
        }

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

    pub fn quote_ranges(
@@ -2394,11 +2395,19 @@ impl ContextEditor {
                            .on_click({
                                let focus_handle = self.focus_handle(cx).clone();
                                move |_event, window, cx| {
-                                    focus_handle.dispatch_action(
-                                        &zed_actions::agent::OpenConfiguration,
-                                        window,
-                                        cx,
-                                    );
+                                    if cx.has_flag::<Assistant2FeatureFlag>() {
+                                        focus_handle.dispatch_action(
+                                            &zed_actions::agent::OpenConfiguration,
+                                            window,
+                                            cx,
+                                        );
+                                    } else {
+                                        focus_handle.dispatch_action(
+                                            &zed_actions::assistant::ShowConfiguration,
+                                            window,
+                                            cx,
+                                        );
+                                    };
                                }
                            }),
                    )
@@ -3359,10 +3368,10 @@ impl FollowableItem for ContextEditor {
        let editor_state = state.editor?;

        let project = workspace.read(cx).project().clone();
-        let agent_panel_delegate = <dyn AgentPanelDelegate>::try_global(cx)?;
+        let assistant_panel_delegate = <dyn AssistantPanelDelegate>::try_global(cx)?;

        let context_editor_task = workspace.update(cx, |workspace, cx| {
-            agent_panel_delegate.open_remote_context(workspace, context_id, window, cx)
+            assistant_panel_delegate.open_remote_context(workspace, context_id, window, cx)
        });

        Some(window.spawn(cx, async move |cx| {
--- a/crates/assistant_context_editor/src/context_history.rs
+++ b/crates/assistant_context_editor/src/context_history.rs
@@ -8,7 +8,7 @@ use ui::{Avatar, ListItem, ListItemSpacing, prelude::*};
 use workspace::{Item, Workspace};

 use crate::{
-    AgentPanelDelegate, ContextStore, DEFAULT_TAB_TITLE, RemoteContextMetadata,
+    AssistantPanelDelegate, ContextStore, DEFAULT_TAB_TITLE, RemoteContextMetadata,
    SavedContextMetadata,
 };

@@ -70,19 +70,19 @@ impl ContextHistory {
    ) {
        let SavedContextPickerEvent::Confirmed(context) = event;

-        let Some(agent_panel_delegate) = <dyn AgentPanelDelegate>::try_global(cx) else {
+        let Some(assistant_panel_delegate) = <dyn AssistantPanelDelegate>::try_global(cx) else {
            return;
        };

        self.workspace
            .update(cx, |workspace, cx| match context {
                ContextMetadata::Remote(metadata) => {
-                    agent_panel_delegate
+                    assistant_panel_delegate
                        .open_remote_context(workspace, metadata.id.clone(), window, cx)
                        .detach_and_log_err(cx);
                }
                ContextMetadata::Saved(metadata) => {
-                    agent_panel_delegate
+                    assistant_panel_delegate
                        .open_saved_context(workspace, metadata.path.clone(), window, cx)
                        .detach_and_log_err(cx);
                }
--- a/crates/assistant_settings/Cargo.toml
+++ b/crates/assistant_settings/Cargo.toml
@@ -14,7 +14,7 @@ path = "src/assistant_settings.rs"
 [dependencies]
 anthropic = { workspace = true, features = ["schemars"] }
 anyhow.workspace = true
-collections.workspace = true
+feature_flags.workspace = true
 gpui.workspace = true
 indexmap.workspace = true
 language_model.workspace = true
@@ -27,7 +27,6 @@ schemars.workspace = true
 serde.workspace = true
 settings.workspace = true
 workspace-hack.workspace = true
-zed_llm_client.workspace = true

 [dev-dependencies]
 fs.workspace = true
--- a/crates/assistant_settings/src/agent_profile.rs
+++ b/crates/assistant_settings/src/agent_profile.rs
@@ -1,7 +1,7 @@
 use std::sync::Arc;

-use collections::IndexMap;
 use gpui::SharedString;
+use indexmap::IndexMap;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};

--- a/crates/assistant_settings/src/assistant_settings.rs
+++ b/crates/assistant_settings/src/assistant_settings.rs
@@ -5,9 +5,10 @@ use std::sync::Arc;
 use ::open_ai::Model as OpenAiModel;
 use anthropic::Model as AnthropicModel;
 use anyhow::{Result, bail};
-use collections::IndexMap;
 use deepseek::Model as DeepseekModel;
-use gpui::{App, Pixels, SharedString};
+use feature_flags::{AgentStreamEditsFeatureFlag, Assistant2FeatureFlag, FeatureFlagAppExt};
+use gpui::{App, Pixels};
+use indexmap::IndexMap;
 use language_model::{CloudModel, LanguageModel};
 use lmstudio::Model as LmStudioModel;
 use ollama::Model as OllamaModel;
@@ -17,10 +18,6 @@ use settings::{Settings, SettingsSources};

 pub use crate::agent_profile::*;

-pub fn init(cx: &mut App) {
-    AssistantSettings::register(cx);
-}
-
 #[derive(Copy, Clone, Default, Debug, Serialize, Deserialize, JsonSchema)]
 #[serde(rename_all = "snake_case")]
 pub enum AssistantDockPosition {
@@ -92,66 +89,31 @@ pub struct AssistantSettings {
    pub notify_when_agent_waiting: NotifyWhenAgentWaiting,
    pub stream_edits: bool,
    pub single_file_review: bool,
-    pub model_parameters: Vec<LanguageModelParameters>,
-    pub preferred_completion_mode: CompletionMode,
 }

 impl AssistantSettings {
-    pub fn temperature_for_model(model: &Arc<dyn LanguageModel>, cx: &App) -> Option<f32> {
-        let settings = Self::get_global(cx);
-        settings
-            .model_parameters
-            .iter()
-            .rfind(|setting| setting.matches(model))
-            .and_then(|m| m.temperature)
+    pub fn stream_edits(&self, cx: &App) -> bool {
+        cx.has_flag::<AgentStreamEditsFeatureFlag>() || self.stream_edits
    }

-    pub fn are_live_diffs_enabled(&self, _cx: &App) -> bool {
-        false
+    pub fn are_live_diffs_enabled(&self, cx: &App) -> bool {
+        if cx.has_flag::<Assistant2FeatureFlag>() {
+            return false;
+        }
+
+        cx.is_staff() || self.enable_experimental_live_diffs
    }

    pub fn set_inline_assistant_model(&mut self, provider: String, model: String) {
-        self.inline_assistant_model = Some(LanguageModelSelection {
-            provider: provider.into(),
-            model,
-        });
+        self.inline_assistant_model = Some(LanguageModelSelection { provider, model });
    }

    pub fn set_commit_message_model(&mut self, provider: String, model: String) {
-        self.commit_message_model = Some(LanguageModelSelection {
-            provider: provider.into(),
-            model,
-        });
+        self.commit_message_model = Some(LanguageModelSelection { provider, model });
    }

    pub fn set_thread_summary_model(&mut self, provider: String, model: String) {
-        self.thread_summary_model = Some(LanguageModelSelection {
-            provider: provider.into(),
-            model,
-        });
-    }
-}
-
-#[derive(Clone, Debug, Serialize, Deserialize, JsonSchema, PartialEq)]
-pub struct LanguageModelParameters {
-    pub provider: Option<LanguageModelProviderSetting>,
-    pub model: Option<SharedString>,
-    pub temperature: Option<f32>,
-}
-
-impl LanguageModelParameters {
-    pub fn matches(&self, model: &Arc<dyn LanguageModel>) -> bool {
-        if let Some(provider) = &self.provider {
-            if provider.0 != model.provider_id().0 {
-                return false;
-            }
-        }
-        if let Some(setting_model) = &self.model {
-            if *setting_model != model.id().0 {
-                return false;
-            }
-        }
-        true
+        self.thread_summary_model = Some(LanguageModelSelection { provider, model });
    }
 }

@@ -218,37 +180,37 @@ impl AssistantSettingsContent {
                        .and_then(|provider| match provider {
                            AssistantProviderContentV1::ZedDotDev { default_model } => {
                                default_model.map(|model| LanguageModelSelection {
-                                    provider: "zed.dev".into(),
+                                    provider: "zed.dev".to_string(),
                                    model: model.id().to_string(),
                                })
                            }
                            AssistantProviderContentV1::OpenAi { default_model, .. } => {
                                default_model.map(|model| LanguageModelSelection {
-                                    provider: "openai".into(),
+                                    provider: "openai".to_string(),
                                    model: model.id().to_string(),
                                })
                            }
                            AssistantProviderContentV1::Anthropic { default_model, .. } => {
                                default_model.map(|model| LanguageModelSelection {
-                                    provider: "anthropic".into(),
+                                    provider: "anthropic".to_string(),
                                    model: model.id().to_string(),
                                })
                            }
                            AssistantProviderContentV1::Ollama { default_model, .. } => {
                                default_model.map(|model| LanguageModelSelection {
-                                    provider: "ollama".into(),
+                                    provider: "ollama".to_string(),
                                    model: model.id().to_string(),
                                })
                            }
                            AssistantProviderContentV1::LmStudio { default_model, .. } => {
                                default_model.map(|model| LanguageModelSelection {
-                                    provider: "lmstudio".into(),
+                                    provider: "lmstudio".to_string(),
                                    model: model.id().to_string(),
                                })
                            }
                            AssistantProviderContentV1::DeepSeek { default_model, .. } => {
                                default_model.map(|model| LanguageModelSelection {
-                                    provider: "deepseek".into(),
+                                    provider: "deepseek".to_string(),
                                    model: model.id().to_string(),
                                })
                            }
@@ -264,8 +226,6 @@ impl AssistantSettingsContent {
                    notify_when_agent_waiting: None,
                    stream_edits: None,
                    single_file_review: None,
-                    model_parameters: Vec::new(),
-                    preferred_completion_mode: None,
                },
                VersionedAssistantSettingsContent::V2(ref settings) => settings.clone(),
            },
@@ -276,7 +236,7 @@ impl AssistantSettingsContent {
                default_width: settings.default_width,
                default_height: settings.default_height,
                default_model: Some(LanguageModelSelection {
-                    provider: "openai".into(),
+                    provider: "openai".to_string(),
                    model: settings
                        .default_open_ai_model
                        .clone()
@@ -295,8 +255,6 @@ impl AssistantSettingsContent {
                notify_when_agent_waiting: None,
                stream_edits: None,
                single_file_review: None,
-                model_parameters: Vec::new(),
-                preferred_completion_mode: None,
            },
            None => AssistantSettingsContentV2::default(),
        }
@@ -361,7 +319,7 @@ impl AssistantSettingsContent {
                                    &model,
                                    None,
                                    None,
-                                    Some(language_model.supports_tools()),
+                                    language_model.supports_tools(),
                                )),
                                api_url,
                            });
@@ -409,10 +367,7 @@ impl AssistantSettingsContent {
                    }
                }
                VersionedAssistantSettingsContent::V2(ref mut settings) => {
-                    settings.default_model = Some(LanguageModelSelection {
-                        provider: provider.into(),
-                        model,
-                    });
+                    settings.default_model = Some(LanguageModelSelection { provider, model });
                }
            },
            Some(AssistantSettingsContentInner::Legacy(settings)) => {
@@ -423,10 +378,7 @@ impl AssistantSettingsContent {
            None => {
                self.inner = Some(AssistantSettingsContentInner::for_v2(
                    AssistantSettingsContentV2 {
-                        default_model: Some(LanguageModelSelection {
-                            provider: provider.into(),
-                            model,
-                        }),
+                        default_model: Some(LanguageModelSelection { provider, model }),
                        ..Default::default()
                    },
                ));
@@ -436,10 +388,7 @@ impl AssistantSettingsContent {

    pub fn set_inline_assistant_model(&mut self, provider: String, model: String) {
        self.v2_setting(|setting| {
-            setting.inline_assistant_model = Some(LanguageModelSelection {
-                provider: provider.into(),
-                model,
-            });
+            setting.inline_assistant_model = Some(LanguageModelSelection { provider, model });
            Ok(())
        })
        .ok();
@@ -447,10 +396,7 @@ impl AssistantSettingsContent {

    pub fn set_commit_message_model(&mut self, provider: String, model: String) {
        self.v2_setting(|setting| {
-            setting.commit_message_model = Some(LanguageModelSelection {
-                provider: provider.into(),
-                model,
-            });
+            setting.commit_message_model = Some(LanguageModelSelection { provider, model });
            Ok(())
        })
        .ok();
@@ -478,10 +424,7 @@ impl AssistantSettingsContent {

    pub fn set_thread_summary_model(&mut self, provider: String, model: String) {
        self.v2_setting(|setting| {
-            setting.thread_summary_model = Some(LanguageModelSelection {
-                provider: provider.into(),
-                model,
-            });
+            setting.thread_summary_model = Some(LanguageModelSelection { provider, model });
            Ok(())
        })
        .ok();
@@ -577,8 +520,6 @@ impl Default for VersionedAssistantSettingsContent {
            notify_when_agent_waiting: None,
            stream_edits: None,
            single_file_review: None,
-            model_parameters: Vec::new(),
-            preferred_completion_mode: None,
        })
    }
 }
@@ -642,88 +583,37 @@ pub struct AssistantSettingsContentV2 {
    ///
    /// Default: true
    single_file_review: Option<bool>,
-    /// Additional parameters for language model requests. When making a request
-    /// to a model, parameters will be taken from the last entry in this list
-    /// that matches the model's provider and name. In each entry, both provider
-    /// and model are optional, so that you can specify parameters for either
-    /// one.
-    ///
-    /// Default: []
-    #[serde(default)]
-    model_parameters: Vec<LanguageModelParameters>,
-
-    /// What completion mode to enable for new threads
-    ///
-    /// Default: normal
-    preferred_completion_mode: Option<CompletionMode>,
-}
-
-#[derive(Clone, Copy, Debug, Serialize, Deserialize, JsonSchema, PartialEq, Default)]
-#[serde(rename_all = "snake_case")]
-pub enum CompletionMode {
-    #[default]
-    Normal,
-    Max,
-}
-
-impl From<CompletionMode> for zed_llm_client::CompletionMode {
-    fn from(value: CompletionMode) -> Self {
-        match value {
-            CompletionMode::Normal => zed_llm_client::CompletionMode::Normal,
-            CompletionMode::Max => zed_llm_client::CompletionMode::Max,
-        }
-    }
 }

 #[derive(Clone, Debug, Serialize, Deserialize, JsonSchema, PartialEq)]
 pub struct LanguageModelSelection {
-    pub provider: LanguageModelProviderSetting,
+    #[schemars(schema_with = "providers_schema")]
+    pub provider: String,
    pub model: String,
 }

-#[derive(Clone, Debug, Serialize, Deserialize, PartialEq)]
-pub struct LanguageModelProviderSetting(pub String);
-
-impl JsonSchema for LanguageModelProviderSetting {
-    fn schema_name() -> String {
-        "LanguageModelProviderSetting".into()
-    }
-
-    fn json_schema(_: &mut schemars::r#gen::SchemaGenerator) -> Schema {
-        schemars::schema::SchemaObject {
-            enum_values: Some(vec![
-                "anthropic".into(),
-                "bedrock".into(),
-                "google".into(),
-                "lmstudio".into(),
-                "ollama".into(),
-                "openai".into(),
-                "zed.dev".into(),
-                "copilot_chat".into(),
-                "deepseek".into(),
-            ]),
-            ..Default::default()
-        }
-        .into()
-    }
-}
-
-impl From<String> for LanguageModelProviderSetting {
-    fn from(provider: String) -> Self {
-        Self(provider)
-    }
-}
-
-impl From<&str> for LanguageModelProviderSetting {
-    fn from(provider: &str) -> Self {
-        Self(provider.to_string())
+fn providers_schema(_: &mut schemars::r#gen::SchemaGenerator) -> schemars::schema::Schema {
+    schemars::schema::SchemaObject {
+        enum_values: Some(vec![
+            "anthropic".into(),
+            "bedrock".into(),
+            "google".into(),
+            "lmstudio".into(),
+            "ollama".into(),
+            "openai".into(),
+            "zed.dev".into(),
+            "copilot_chat".into(),
+            "deepseek".into(),
+        ]),
+        ..Default::default()
    }
+    .into()
 }

 impl Default for LanguageModelSelection {
    fn default() -> Self {
        Self {
-            provider: LanguageModelProviderSetting("openai".to_string()),
+            provider: "openai".to_string(),
            model: "gpt-4".to_string(),
        }
    }
@@ -860,14 +750,6 @@ impl Settings for AssistantSettings {
            merge(&mut settings.stream_edits, value.stream_edits);
            merge(&mut settings.single_file_review, value.single_file_review);
            merge(&mut settings.default_profile, value.default_profile);
-            merge(
-                &mut settings.preferred_completion_mode,
-                value.preferred_completion_mode,
-            );
-
-            settings
-                .model_parameters
-                .extend_from_slice(&value.model_parameters);

            if let Some(profiles) = value.profiles {
                settings
@@ -1001,8 +883,6 @@ mod tests {
                                notify_when_agent_waiting: None,
                                stream_edits: None,
                                single_file_review: None,
-                                model_parameters: Vec::new(),
-                                preferred_completion_mode: None,
                            },
                        )),
                    }
@@ -1065,7 +945,7 @@ mod tests {
                        AssistantSettingsContentV2 {
                            enabled: Some(false),
                            default_model: Some(LanguageModelSelection {
-                                provider: "xai".to_owned().into(),
+                                provider: "xai".to_owned(),
                                model: "grok".to_owned(),
                            }),
                            ..Default::default()
--- a/crates/assistant_tool/src/assistant_tool.rs
+++ b/crates/assistant_tool/src/assistant_tool.rs
@@ -7,7 +7,6 @@ mod tool_working_set;
 use std::fmt;
 use std::fmt::Debug;
 use std::fmt::Formatter;
-use std::ops::Deref;
 use std::sync::Arc;

 use anyhow::Result;
@@ -18,8 +17,7 @@ use gpui::IntoElement;
 use gpui::Window;
 use gpui::{App, Entity, SharedString, Task, WeakEntity};
 use icons::IconName;
-use language_model::LanguageModel;
-use language_model::LanguageModelRequest;
+use language_model::LanguageModelRequestMessage;
 use language_model::LanguageModelToolSchemaFormat;
 use project::Project;
 use workspace::Workspace;
@@ -63,34 +61,11 @@ impl ToolUseStatus {
    }
 }

-#[derive(Debug)]
-pub struct ToolResultOutput {
-    pub content: String,
-    pub output: Option<serde_json::Value>,
-}
-
-impl From<String> for ToolResultOutput {
-    fn from(value: String) -> Self {
-        ToolResultOutput {
-            content: value,
-            output: None,
-        }
-    }
-}
-
-impl Deref for ToolResultOutput {
-    type Target = String;
-
-    fn deref(&self) -> &Self::Target {
-        &self.content
-    }
-}
-
 /// 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<ToolResultOutput>>,
+    pub output: Task<Result<String>>,
    /// An optional view to present the output of the tool.
    pub card: Option<AnyToolCard>,
 }
@@ -153,9 +128,9 @@ impl AnyToolCard {
    }
 }

-impl From<Task<Result<ToolResultOutput>>> for ToolResult {
+impl From<Task<Result<String>>> for ToolResult {
    /// Convert from a task to a ToolResult with no card
-    fn from(output: Task<Result<ToolResultOutput>>) -> Self {
+    fn from(output: Task<Result<String>>) -> Self {
        Self { output, card: None }
    }
 }
@@ -206,23 +181,12 @@ pub trait Tool: 'static + Send + Sync {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        request: Arc<LanguageModelRequest>,
+        messages: &[LanguageModelRequestMessage],
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
-        model: Arc<dyn LanguageModel>,
        window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult;
-
-    fn deserialize_card(
-        self: Arc<Self>,
-        _output: serde_json::Value,
-        _project: Entity<Project>,
-        _window: &mut Window,
-        _cx: &mut App,
-    ) -> Option<AnyToolCard> {
-        None
-    }
 }

 impl Debug for dyn Tool {
--- a/crates/assistant_tool/src/tool_schema.rs
+++ b/crates/assistant_tool/src/tool_schema.rs
@@ -35,17 +35,25 @@ fn adapt_to_json_schema_subset(json: &mut Value) -> Result<()> {
            }
        }

-        const KEYS_TO_REMOVE: [&str; 5] = [
+        const KEYS_TO_REMOVE: [&str; 4] = [
            "format",
            "additionalProperties",
            "exclusiveMinimum",
            "exclusiveMaximum",
-            "optional",
        ];
        for key in KEYS_TO_REMOVE {
            obj.remove(key);
        }

+        if let Some(default) = obj.get("default") {
+            let is_null = default.is_null();
+            // Default is not supported, so we need to remove it
+            obj.remove("default");
+            if is_null {
+                obj.insert("nullable".to_string(), Value::Bool(true));
+            }
+        }
+
        // If a type is not specified for an input parameter, add a default type
        if matches!(obj.get("description"), Some(Value::String(_)))
            && !obj.contains_key("type")
@@ -84,6 +92,26 @@ mod tests {
    use super::*;
    use serde_json::json;

+    #[test]
+    fn test_transform_default_null_to_nullable() {
+        let mut json = json!({
+            "description": "A test field",
+            "type": "string",
+            "default": null
+        });
+
+        adapt_to_json_schema_subset(&mut json).unwrap();
+
+        assert_eq!(
+            json,
+            json!({
+                "description": "A test field",
+                "type": "string",
+                "nullable": true
+            })
+        );
+    }
+
    #[test]
    fn test_transform_adds_type_when_missing() {
        let mut json = json!({
@@ -129,8 +157,7 @@ mod tests {
            "format": "uint32",
            "exclusiveMinimum": 0,
            "exclusiveMaximum": 100,
-            "additionalProperties": false,
-            "optional": true
+            "additionalProperties": false
        });

        adapt_to_json_schema_subset(&mut json).unwrap();
--- a/crates/assistant_tools/Cargo.toml
+++ b/crates/assistant_tools/Cargo.toml
@@ -17,14 +17,14 @@ eval = []
 [dependencies]
 aho-corasick.workspace = true
 anyhow.workspace = true
-assistant_settings.workspace = true
 assistant_tool.workspace = true
+assistant_settings.workspace = true
 buffer_diff.workspace = true
 chrono.workspace = true
 collections.workspace = true
 component.workspace = true
-derive_more.workspace = true
 editor.workspace = true
+derive_more.workspace = true
 feature_flags.workspace = true
 futures.workspace = true
 gpui.workspace = true
@@ -35,9 +35,8 @@ indoc.workspace = true
 itertools.workspace = true
 language.workspace = true
 language_model.workspace = true
-linkme.workspace = true
 log.workspace = true
-markdown.workspace = true
+linkme.workspace = true
 open.workspace = true
 paths.workspace = true
 portable-pty.workspace = true
--- a/crates/assistant_tools/src/assistant_tools.rs
+++ b/crates/assistant_tools/src/assistant_tools.rs
@@ -1,5 +1,6 @@
 mod copy_path_tool;
 mod create_directory_tool;
+mod create_file_tool;
 mod delete_path_tool;
 mod diagnostics_tool;
 mod edit_agent;
@@ -12,7 +13,9 @@ mod move_path_tool;
 mod now_tool;
 mod open_tool;
 mod read_file_tool;
+mod replace;
 mod schema;
+mod streaming_edit_file_tool;
 mod templates;
 mod terminal_tool;
 mod thinking_tool;
@@ -21,12 +24,15 @@ mod web_search_tool;

 use std::sync::Arc;

+use assistant_settings::AssistantSettings;
 use assistant_tool::ToolRegistry;
 use copy_path_tool::CopyPathTool;
+use feature_flags::{AgentStreamEditsFeatureFlag, FeatureFlagAppExt};
 use gpui::{App, Entity};
 use http_client::HttpClientWithUrl;
 use language_model::LanguageModelRegistry;
 use move_path_tool::MovePathTool;
+use settings::{Settings, SettingsStore};
 use web_search_tool::WebSearchTool;

 pub(crate) use templates::*;
@@ -34,19 +40,21 @@ pub(crate) use templates::*;
 use crate::create_directory_tool::CreateDirectoryTool;
 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_path_tool::FindPathTool;
 use crate::grep_tool::GrepTool;
 use crate::list_directory_tool::ListDirectoryTool;
 use crate::now_tool::NowTool;
 use crate::read_file_tool::ReadFileTool;
+use crate::streaming_edit_file_tool::StreamingEditFileTool;
 use crate::thinking_tool::ThinkingTool;

-pub use edit_file_tool::EditFileToolInput;
+pub use create_file_tool::{CreateFileTool, CreateFileToolInput};
+pub use edit_file_tool::{EditFileTool, EditFileToolInput};
 pub use find_path_tool::FindPathToolInput;
 pub use open_tool::OpenTool;
 pub use read_file_tool::ReadFileToolInput;
+pub use streaming_edit_file_tool::StreamingEditFileToolInput;
 pub use terminal_tool::TerminalTool;

 pub fn init(http_client: Arc<HttpClientWithUrl>, cx: &mut App) {
@@ -67,7 +75,12 @@ pub fn init(http_client: Arc<HttpClientWithUrl>, cx: &mut App) {
    registry.register_tool(GrepTool);
    registry.register_tool(ThinkingTool);
    registry.register_tool(FetchTool::new(http_client));
-    registry.register_tool(EditFileTool);
+
+    register_edit_file_tool(cx);
+    cx.observe_flag::<AgentStreamEditsFeatureFlag, _>(|_, cx| register_edit_file_tool(cx))
+        .detach();
+    cx.observe_global::<SettingsStore>(register_edit_file_tool)
+        .detach();

    register_web_search_tool(&LanguageModelRegistry::global(cx), cx);
    cx.subscribe(
@@ -94,16 +107,29 @@ fn register_web_search_tool(registry: &Entity<LanguageModelRegistry>, cx: &mut A
    }
 }

+fn register_edit_file_tool(cx: &mut App) {
+    let registry = ToolRegistry::global(cx);
+
+    registry.unregister_tool(CreateFileTool);
+    registry.unregister_tool(EditFileTool);
+    registry.unregister_tool(StreamingEditFileTool);
+
+    if AssistantSettings::get_global(cx).stream_edits(cx) {
+        registry.register_tool(StreamingEditFileTool);
+    } else {
+        registry.register_tool(CreateFileTool);
+        registry.register_tool(EditFileTool);
+    }
+}
+
 #[cfg(test)]
 mod tests {
    use super::*;
-    use assistant_settings::AssistantSettings;
    use client::Client;
    use clock::FakeSystemClock;
    use http_client::FakeHttpClient;
    use schemars::JsonSchema;
    use serde::Serialize;
-    use settings::Settings;

    #[test]
    fn test_json_schema() {
--- a/crates/assistant_tools/src/copy_path_tool.rs
+++ b/crates/assistant_tools/src/copy_path_tool.rs
@@ -3,8 +3,8 @@ use anyhow::{Result, anyhow};
 use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::AnyWindowHandle;
 use gpui::{App, AppContext, Entity, Task};
-use language_model::LanguageModel;
-use language_model::{LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::LanguageModelRequestMessage;
+use language_model::LanguageModelToolSchemaFormat;
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -74,10 +74,9 @@ impl Tool for CopyPathTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -108,9 +107,10 @@ impl Tool for CopyPathTool {

        cx.background_spawn(async move {
            match copy_task.await {
-                Ok(_) => Ok(
-                    format!("Copied {} to {}", input.source_path, input.destination_path).into(),
-                ),
+                Ok(_) => Ok(format!(
+                    "Copied {} to {}",
+                    input.source_path, input.destination_path
+                )),
                Err(err) => Err(anyhow!(
                    "Failed to copy {} to {}: {}",
                    input.source_path,
--- a/crates/assistant_tools/src/create_directory_tool.rs
+++ b/crates/assistant_tools/src/create_directory_tool.rs
@@ -3,7 +3,8 @@ use anyhow::{Result, anyhow};
 use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::AnyWindowHandle;
 use gpui::{App, Entity, Task};
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::LanguageModelRequestMessage;
+use language_model::LanguageModelToolSchemaFormat;
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -61,10 +62,9 @@ impl Tool for CreateDirectoryTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -88,7 +88,7 @@ impl Tool for CreateDirectoryTool {
                .await
                .map_err(|err| anyhow!("Unable to create directory {destination_path}: {err}"))?;

-            Ok(format!("Created directory {destination_path}").into())
+            Ok(format!("Created directory {destination_path}"))
        })
        .into()
    }
--- a/crates/assistant_tools/src/create_file_tool.rs
+++ b/crates/assistant_tools/src/create_file_tool.rs
@@ -0,0 +1,195 @@
+use crate::schema::json_schema_for;
+use anyhow::{Result, anyhow};
+use assistant_tool::{ActionLog, Tool, ToolResult};
+use gpui::AnyWindowHandle;
+use gpui::{App, Entity, Task};
+use language_model::LanguageModelRequestMessage;
+use language_model::LanguageModelToolSchemaFormat;
+use project::Project;
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
+use std::sync::Arc;
+use ui::IconName;
+use util::markdown::MarkdownInlineCode;
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+pub struct CreateFileToolInput {
+    /// The path where the file should be created.
+    ///
+    /// <example>
+    /// If the project has the following structure:
+    ///
+    /// - directory1/
+    /// - directory2/
+    ///
+    /// You can create a new file by providing a path of "directory1/new_file.txt"
+    /// </example>
+    ///
+    /// Make sure to include this field before the `contents` field in the input object
+    /// so that we can display it immediately.
+    pub path: String,
+
+    /// The text contents of the file to create.
+    ///
+    /// <example>
+    /// To create a file with the text "Hello, World!", provide contents of "Hello, World!"
+    /// </example>
+    pub contents: String,
+}
+
+#[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()
+    }
+
+    fn needs_confirmation(&self, _: &serde_json::Value, _: &App) -> bool {
+        false
+    }
+
+    fn description(&self) -> String {
+        include_str!("./create_file_tool/description.md").into()
+    }
+
+    fn icon(&self) -> IconName {
+        IconName::FileCreate
+    }
+
+    fn input_schema(&self, format: LanguageModelToolSchemaFormat) -> Result<serde_json::Value> {
+        json_schema_for::<CreateFileToolInput>(format)
+    }
+
+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<CreateFileToolInput>(input.clone()) {
+            Ok(input) => {
+                let path = MarkdownInlineCode(&input.path);
+                format!("Create file {path}")
+            }
+            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(),
+        }
+    }
+
+    fn run(
+        self: Arc<Self>,
+        input: serde_json::Value,
+        _messages: &[LanguageModelRequestMessage],
+        project: Entity<Project>,
+        action_log: Entity<ActionLog>,
+        _window: Option<AnyWindowHandle>,
+        cx: &mut App,
+    ) -> ToolResult {
+        let input = match serde_json::from_value::<CreateFileToolInput>(input) {
+            Ok(input) => input,
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
+        };
+        let project_path = match project.read(cx).find_project_path(&input.path, cx) {
+            Some(project_path) => project_path,
+            None => {
+                return Task::ready(Err(anyhow!("Path to create was outside the project"))).into();
+            }
+        };
+        let contents: Arc<str> = input.contents.as_str().into();
+        let destination_path: Arc<str> = input.path.as_str().into();
+
+        cx.spawn(async move |cx| {
+            let buffer = project
+                .update(cx, |project, cx| {
+                    project.open_buffer(project_path.clone(), cx)
+                })?
+                .await
+                .map_err(|err| anyhow!("Unable to open buffer for {destination_path}: {err}"))?;
+            cx.update(|cx| {
+                action_log.update(cx, |action_log, cx| {
+                    action_log.buffer_created(buffer.clone(), cx)
+                });
+                buffer.update(cx, |buffer, cx| buffer.set_text(contents, cx));
+                action_log.update(cx, |action_log, cx| {
+                    action_log.buffer_edited(buffer.clone(), cx)
+                });
+            })?;
+
+            project
+                .update(cx, |project, cx| project.save_buffer(buffer, cx))?
+                .await
+                .map_err(|err| anyhow!("Unable to save buffer for {destination_path}: {err}"))?;
+
+            Ok(format!("Created file {destination_path}"))
+        })
+        .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/create_file_tool/description.md
+++ b/crates/assistant_tools/src/create_file_tool/description.md
@@ -0,0 +1,3 @@
+Creates a new file at the specified path within the project, containing the given text content. Returns confirmation that the file was created.
+
+This tool is the most efficient way to create new files within the project, so it should always be chosen whenever it's necessary to create a new file in the project with specific text content, or whenever a file in the project needs such a drastic change that you would prefer to replace the entire thing instead of making individual edits. This tool should not be used when making changes to parts of an existing file but not all of it. In those cases, it's better to use another approach to edit the file.
--- a/crates/assistant_tools/src/delete_path_tool.rs
+++ b/crates/assistant_tools/src/delete_path_tool.rs
@@ -3,7 +3,7 @@ use anyhow::{Result, anyhow};
 use assistant_tool::{ActionLog, Tool, ToolResult};
 use futures::{SinkExt, StreamExt, channel::mpsc};
 use gpui::{AnyWindowHandle, App, AppContext, Entity, Task};
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::{Project, ProjectPath};
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -59,10 +59,9 @@ impl Tool for DeletePathTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -128,7 +127,7 @@ impl Tool for DeletePathTool {

            match delete {
                Some(deletion_task) => match deletion_task.await {
-                    Ok(()) => Ok(format!("Deleted {path_str}").into()),
+                    Ok(()) => Ok(format!("Deleted {path_str}")),
                    Err(err) => Err(anyhow!("Failed to delete {path_str}: {err}")),
                },
                None => Err(anyhow!(
--- a/crates/assistant_tools/src/diagnostics_tool.rs
+++ b/crates/assistant_tools/src/diagnostics_tool.rs
@@ -3,7 +3,7 @@ use anyhow::{Result, anyhow};
 use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{AnyWindowHandle, App, Entity, Task};
 use language::{DiagnosticSeverity, OffsetRangeExt};
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -79,10 +79,9 @@ impl Tool for DiagnosticsTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -123,9 +122,9 @@ impl Tool for DiagnosticsTool {
                    }

                    if output.is_empty() {
-                        Ok("File doesn't have errors or warnings!".to_string().into())
+                        Ok("File doesn't have errors or warnings!".to_string())
                    } else {
-                        Ok(output.into())
+                        Ok(output)
                    }
                })
                .into()
@@ -159,12 +158,10 @@ impl Tool for DiagnosticsTool {
                });

                if has_diagnostics {
-                    Task::ready(Ok(output.into())).into()
+                    Task::ready(Ok(output)).into()
                } else {
-                    Task::ready(Ok("No errors or warnings found in the project."
-                        .to_string()
-                        .into()))
-                    .into()
+                    Task::ready(Ok("No errors or warnings found in the project.".to_string()))
+                        .into()
                }
            }
        }
--- a/crates/assistant_tools/src/edit_agent.rs
+++ b/crates/assistant_tools/src/edit_agent.rs
@@ -17,11 +17,10 @@ use gpui::{AppContext, AsyncApp, Entity, SharedString, Task};
 use language::{Bias, Buffer, BufferSnapshot, LineIndent, Point};
 use language_model::{
    LanguageModel, LanguageModelCompletionError, LanguageModelRequest, LanguageModelRequestMessage,
-    LanguageModelToolChoice, MessageContent, Role,
+    MessageContent, Role,
 };
 use project::{AgentLocation, Project};
-use schemars::JsonSchema;
-use serde::{Deserialize, Serialize};
+use serde::Serialize;
 use std::{cmp, iter, mem, ops::Range, path::PathBuf, sync::Arc, task::Poll};
 use streaming_diff::{CharOperation, StreamingDiff};

@@ -51,10 +50,10 @@ pub enum EditAgentOutputEvent {
    OldTextNotFound(SharedString),
 }

-#[derive(Clone, Debug, Serialize, Deserialize, JsonSchema)]
+#[derive(Clone, Debug)]
 pub struct EditAgentOutput {
-    pub raw_edits: String,
-    pub parser_metrics: EditParserMetrics,
+    pub _raw_edits: String,
+    pub _parser_metrics: EditParserMetrics,
 }

 #[derive(Clone)]
@@ -84,7 +83,7 @@ impl EditAgent {
        &self,
        buffer: Entity<Buffer>,
        edit_description: String,
-        conversation: &LanguageModelRequest,
+        previous_messages: Vec<LanguageModelRequestMessage>,
        cx: &mut AsyncApp,
    ) -> (
        Task<Result<EditAgentOutput>>,
@@ -92,7 +91,6 @@ impl EditAgent {
    ) {
        let this = self.clone();
        let (events_tx, events_rx) = mpsc::unbounded();
-        let conversation = conversation.clone();
        let output = cx.spawn(async move |cx| {
            let snapshot = buffer.read_with(cx, |buffer, _| buffer.snapshot())?;
            let path = cx.update(|cx| snapshot.resolve_file_path(cx, true))?;
@@ -101,7 +99,7 @@ impl EditAgent {
                edit_description,
            }
            .render(&this.templates)?;
-            let new_chunks = this.request(conversation, prompt, cx).await?;
+            let new_chunks = this.request(previous_messages, prompt, cx).await?;

            let (output, mut inner_events) = this.overwrite_with_chunks(buffer, new_chunks, cx);
            while let Some(event) = inner_events.next().await {
@@ -187,8 +185,8 @@ impl EditAgent {
        }

        Ok(EditAgentOutput {
-            raw_edits,
-            parser_metrics: EditParserMetrics::default(),
+            _raw_edits: raw_edits,
+            _parser_metrics: EditParserMetrics::default(),
        })
    }

@@ -196,7 +194,7 @@ impl EditAgent {
        &self,
        buffer: Entity<Buffer>,
        edit_description: String,
-        conversation: &LanguageModelRequest,
+        previous_messages: Vec<LanguageModelRequestMessage>,
        cx: &mut AsyncApp,
    ) -> (
        Task<Result<EditAgentOutput>>,
@@ -216,7 +214,6 @@ impl EditAgent {

        let this = self.clone();
        let (events_tx, events_rx) = mpsc::unbounded();
-        let conversation = conversation.clone();
        let output = cx.spawn(async move |cx| {
            let snapshot = buffer.read_with(cx, |buffer, _| buffer.snapshot())?;
            let path = cx.update(|cx| snapshot.resolve_file_path(cx, true))?;
@@ -225,7 +222,7 @@ impl EditAgent {
                edit_description,
            }
            .render(&this.templates)?;
-            let edit_chunks = this.request(conversation, prompt, cx).await?;
+            let edit_chunks = this.request(previous_messages, prompt, cx).await?;

            let (output, mut inner_events) = this.apply_edit_chunks(buffer, edit_chunks, cx);
            while let Some(event) = inner_events.next().await {
@@ -427,8 +424,8 @@ impl EditAgent {
                }
            }
            Ok(EditAgentOutput {
-                raw_edits,
-                parser_metrics: parser.finish(),
+                _raw_edits: raw_edits,
+                _parser_metrics: parser.finish(),
            })
        });
        (output, rx)
@@ -515,67 +512,33 @@ impl EditAgent {

    async fn request(
        &self,
-        mut conversation: LanguageModelRequest,
+        mut messages: Vec<LanguageModelRequestMessage>,
        prompt: String,
        cx: &mut AsyncApp,
    ) -> Result<BoxStream<'static, Result<String, LanguageModelCompletionError>>> {
-        let mut messages_iter = conversation.messages.iter_mut();
-        if let Some(last_message) = messages_iter.next_back() {
+        let mut message_content = Vec::new();
+        if let Some(last_message) = messages.last_mut() {
            if last_message.role == Role::Assistant {
-                let old_content_len = last_message.content.len();
                last_message
                    .content
                    .retain(|content| !matches!(content, MessageContent::ToolUse(_)));
-                let new_content_len = last_message.content.len();
-
-                // We just removed pending tool uses from the content of the
-                // last message, so it doesn't make sense to cache it anymore
-                // (e.g., the message will look very different on the next
-                // request). Thus, we move the flag to the message prior to it,
-                // as it will still be a valid prefix of the conversation.
-                if old_content_len != new_content_len && last_message.cache {
-                    if let Some(prev_message) = messages_iter.next_back() {
-                        last_message.cache = false;
-                        prev_message.cache = true;
-                    }
-                }
-
                if last_message.content.is_empty() {
-                    conversation.messages.pop();
+                    messages.pop();
                }
            }
        }
-
-        conversation.messages.push(LanguageModelRequestMessage {
+        message_content.push(MessageContent::Text(prompt));
+        messages.push(LanguageModelRequestMessage {
            role: Role::User,
-            content: vec![MessageContent::Text(prompt)],
+            content: message_content,
            cache: false,
        });

-        // Include tools in the request so that we can take advantage of
-        // caching when ToolChoice::None is supported.
-        let mut tool_choice = None;
-        let mut tools = Vec::new();
-        if !conversation.tools.is_empty()
-            && self
-                .model
-                .supports_tool_choice(LanguageModelToolChoice::None)
-        {
-            tool_choice = Some(LanguageModelToolChoice::None);
-            tools = conversation.tools.clone();
-        }
-
        let request = LanguageModelRequest {
-            thread_id: conversation.thread_id,
-            prompt_id: conversation.prompt_id,
-            mode: conversation.mode,
-            messages: conversation.messages,
-            tool_choice,
-            tools,
-            stop: Vec::new(),
-            temperature: None,
+            messages,
+            // temperature: Some(0.5),
+            ..Default::default()
        };
-
        Ok(self.model.stream_completion_text(request, cx).await?.stream)
    }

--- a/crates/assistant_tools/src/edit_agent/edit_parser.rs
+++ b/crates/assistant_tools/src/edit_agent/edit_parser.rs
@@ -1,6 +1,4 @@
 use derive_more::{Add, AddAssign};
-use schemars::JsonSchema;
-use serde::{Deserialize, Serialize};
 use smallvec::SmallVec;
 use std::{cmp, mem, ops::Range};

@@ -15,9 +13,7 @@ pub enum EditParserEvent {
    NewTextChunk { chunk: String, done: bool },
 }

-#[derive(
-    Clone, Debug, Default, PartialEq, Eq, Add, AddAssign, Serialize, Deserialize, JsonSchema,
-)]
+#[derive(Clone, Debug, Default, PartialEq, Eq, Add, AddAssign)]
 pub struct EditParserMetrics {
    pub tags: usize,
    pub mismatched_tags: usize,
--- a/crates/assistant_tools/src/edit_agent/evals.rs
+++ b/crates/assistant_tools/src/edit_agent/evals.rs
@@ -1,17 +1,18 @@
 use super::*;
-use crate::{ReadFileToolInput, edit_file_tool::EditFileToolInput, grep_tool::GrepToolInput};
+use crate::{
+    ReadFileToolInput, grep_tool::GrepToolInput,
+    streaming_edit_file_tool::StreamingEditFileToolInput,
+};
 use Role::*;
 use anyhow::anyhow;
-use assistant_tool::ToolRegistry;
 use client::{Client, UserStore};
 use collections::HashMap;
 use fs::FakeFs;
 use futures::{FutureExt, future::LocalBoxFuture};
 use gpui::{AppContext, TestAppContext};
-use indoc::{formatdoc, indoc};
+use indoc::indoc;
 use language_model::{
-    LanguageModelRegistry, LanguageModelRequestTool, LanguageModelToolResult, LanguageModelToolUse,
-    LanguageModelToolUseId,
+    LanguageModelRegistry, LanguageModelToolResult, LanguageModelToolUse, LanguageModelToolUseId,
 };
 use project::Project;
 use rand::prelude::*;
@@ -39,7 +40,7 @@ fn eval_extract_handle_command_output() {
            conversation: vec![
                message(
                    User,
-                    [text(formatdoc! {"
+                    [text(indoc! {"
                        Read the `{input_file_path}` file and extract a method in
                        the final stanza of `run_git_blame` to deal with command failures,
                        call it `handle_command_output` and take the std::process::Output as the only parameter.
@@ -68,7 +69,7 @@ fn eval_extract_handle_command_output() {
                    [tool_use(
                        "tool_2",
                        "edit_file",
-                        EditFileToolInput {
+                        StreamingEditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
                            create_or_overwrite: false,
@@ -98,7 +99,7 @@ fn eval_delete_run_git_blame() {
            conversation: vec![
                message(
                    User,
-                    [text(formatdoc! {"
+                    [text(indoc! {"
                        Read the `{input_file_path}` file and delete `run_git_blame`. Just that
                        one function, not its usages.
                    "})],
@@ -124,7 +125,7 @@ fn eval_delete_run_git_blame() {
                    [tool_use(
                        "tool_2",
                        "edit_file",
-                        EditFileToolInput {
+                        StreamingEditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
                            create_or_overwrite: false,
@@ -140,61 +141,6 @@ fn eval_delete_run_git_blame() {
    );
 }

-#[test]
-#[cfg_attr(not(feature = "eval"), ignore)]
-fn eval_translate_doc_comments() {
-    let input_file_path = "root/canvas.rs";
-    let input_file_content = include_str!("evals/fixtures/translate_doc_comments/before.rs");
-    let edit_description = "Translate all doc comments to Italian";
-    eval(
-        200,
-        1.,
-        EvalInput {
-            conversation: vec![
-                message(
-                    User,
-                    [text(formatdoc! {"
-                        Read the {input_file_path} file and edit it (without overwriting it),
-                        translating all the doc comments to italian.
-                    "})],
-                ),
-                message(
-                    Assistant,
-                    [tool_use(
-                        "tool_1",
-                        "read_file",
-                        ReadFileToolInput {
-                            path: input_file_path.into(),
-                            start_line: None,
-                            end_line: None,
-                        },
-                    )],
-                ),
-                message(
-                    User,
-                    [tool_result("tool_1", "read_file", input_file_content)],
-                ),
-                message(
-                    Assistant,
-                    [tool_use(
-                        "tool_2",
-                        "edit_file",
-                        EditFileToolInput {
-                            display_description: edit_description.into(),
-                            path: input_file_path.into(),
-                            create_or_overwrite: false,
-                        },
-                    )],
-                ),
-            ],
-            input_path: input_file_path.into(),
-            input_content: Some(input_file_content.into()),
-            edit_description: edit_description.into(),
-            assertion: EvalAssertion::judge_diff("Doc comments were translated to Italian"),
-        },
-    );
-}
-
 #[test]
 #[cfg_attr(not(feature = "eval"), ignore)]
 fn eval_use_wasi_sdk_in_compile_parser_to_wasm() {
@@ -209,7 +155,7 @@ fn eval_use_wasi_sdk_in_compile_parser_to_wasm() {
            conversation: vec![
                message(
                    User,
-                    [text(formatdoc! {"
+                    [text(indoc! {"
                        Read the `{input_file_path}` file and change `compile_parser_to_wasm` to use `wasi-sdk` instead of emscripten.
                        Use `ureq` to download the SDK for the current platform and architecture.
                        Extract the archive into a sibling of `lib` inside the `tree-sitter` directory in the cache_dir.
@@ -217,7 +163,7 @@ fn eval_use_wasi_sdk_in_compile_parser_to_wasm() {
                        that's inside of the archive.
                        Don't re-download the SDK if that executable already exists.

-                        Use these clang flags: -fPIC -shared -Os -Wl,--export=tree_sitter_{{language_name}}
+                        Use these clang flags: -fPIC -shared -Os -Wl,--export=tree_sitter_{language_name}

                        Here are the available wasi-sdk assets:
                        - wasi-sdk-25.0-x86_64-macos.tar.gz
@@ -294,7 +240,7 @@ fn eval_use_wasi_sdk_in_compile_parser_to_wasm() {
                    [tool_use(
                        "tool_4",
                        "edit_file",
-                        EditFileToolInput {
+                        StreamingEditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
                            create_or_overwrite: false,
@@ -318,10 +264,11 @@ fn eval_use_wasi_sdk_in_compile_parser_to_wasm() {
 fn eval_disable_cursor_blinking() {
    let input_file_path = "root/editor.rs";
    let input_file_content = include_str!("evals/fixtures/disable_cursor_blinking/before.rs");
+    let output_file_content = include_str!("evals/fixtures/disable_cursor_blinking/after.rs");
    let edit_description = "Comment out the call to `BlinkManager::enable`";
    eval(
        200,
-        0.95,
+        0.6, // TODO: make this eval better
        EvalInput {
            conversation: vec![
                message(User, [text("Let's research how to cursor blinking works.")]),
@@ -369,7 +316,7 @@ fn eval_disable_cursor_blinking() {
                    [tool_use(
                        "tool_4",
                        "edit_file",
-                        EditFileToolInput {
+                        StreamingEditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
                            create_or_overwrite: false,
@@ -380,11 +327,7 @@ fn eval_disable_cursor_blinking() {
            input_path: input_file_path.into(),
            input_content: Some(input_file_content.into()),
            edit_description: edit_description.into(),
-            assertion: EvalAssertion::judge_diff(indoc! {"
-                - Calls to BlinkManager in `observe_window_activation` were commented out
-                - The call to `blink_manager.enable` above the call to show_cursor_names was commented out
-                - All the edits have valid indentation
-            "}),
+            assertion: EvalAssertion::assert_eq(output_file_content),
        },
    );
 }
@@ -563,7 +506,7 @@ fn eval_from_pixels_constructor() {
                    [tool_use(
                        "tool_5",
                        "edit_file",
-                        EditFileToolInput {
+                        StreamingEditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
                            create_or_overwrite: false,
@@ -640,7 +583,7 @@ fn eval_zode() {
                        tool_use(
                            "tool_3",
                            "edit_file",
-                            EditFileToolInput {
+                            StreamingEditFileToolInput {
                                display_description: edit_description.into(),
                                path: input_file_path.into(),
                                create_or_overwrite: true,
@@ -885,7 +828,7 @@ fn eval_add_overwrite_test() {
                        tool_use(
                            "tool_5",
                            "edit_file",
-                            EditFileToolInput {
+                            StreamingEditFileToolInput {
                                display_description: edit_description.into(),
                                path: input_file_path.into(),
                                create_or_overwrite: false,
@@ -952,7 +895,6 @@ fn tool_result(
        tool_name: name.into(),
        is_error: false,
        content: result.into(),
-        output: None,
    })
 }

@@ -1091,8 +1033,7 @@ impl EvalAssertion {

 fn eval(iterations: usize, expected_pass_ratio: f32, mut eval: EvalInput) {
    let mut evaluated_count = 0;
-    let mut failed_count = 0;
-    report_progress(evaluated_count, failed_count, iterations);
+    report_progress(evaluated_count, 0, iterations);

    let (tx, rx) = mpsc::channel();

@@ -1109,6 +1050,7 @@ fn eval(iterations: usize, expected_pass_ratio: f32, mut eval: EvalInput) {
    }
    drop(tx);

+    let mut failed_count = 0;
    let mut failed_evals = HashMap::default();
    let mut errored_evals = HashMap::default();
    let mut eval_outputs = Vec::new();
@@ -1116,7 +1058,7 @@ fn eval(iterations: usize, expected_pass_ratio: f32, mut eval: EvalInput) {
    while let Ok(output) = rx.recv() {
        match output {
            Ok(output) => {
-                cumulative_parser_metrics += output.sample.edit_output.parser_metrics.clone();
+                cumulative_parser_metrics += output.sample.edit_output._parser_metrics.clone();
                eval_outputs.push(output.clone());
                if output.assertion.score < 80 {
                    failed_count += 1;
@@ -1197,25 +1139,19 @@ impl Display for EvalOutput {
        writeln!(
            f,
            "Parser Metrics:\n{:#?}",
-            self.sample.edit_output.parser_metrics
+            self.sample.edit_output._parser_metrics
        )?;
-        writeln!(f, "Raw Edits:\n{}", self.sample.edit_output.raw_edits)?;
+        writeln!(f, "Raw Edits:\n{}", self.sample.edit_output._raw_edits)?;
        Ok(())
    }
 }

 fn report_progress(evaluated_count: usize, failed_count: usize, iterations: usize) {
-    let passed_count = evaluated_count - failed_count;
-    let passed_ratio = if evaluated_count == 0 {
-        0.0
-    } else {
-        passed_count as f64 / evaluated_count as f64
-    };
+    let failing_rate = failed_count as f32 / evaluated_count as f32;
+    let passing_rate = ((1. - failing_rate) * 100.).round() as usize;
    print!(
-        "\r\x1b[KEvaluated {}/{} ({:.2}%)",
-        evaluated_count,
-        iterations,
-        passed_ratio * 100.0
+        "\r\x1b[KEvaluated {}/{} ({}% passing)",
+        evaluated_count, iterations, passing_rate
    );
    std::io::stdout().flush().unwrap();
 }
@@ -1229,30 +1165,25 @@ struct EditAgentTest {
 impl EditAgentTest {
    async fn new(cx: &mut TestAppContext) -> Self {
        cx.executor().allow_parking();
+        cx.update(settings::init);
+        cx.update(Project::init_settings);
+        cx.update(language::init);
+        cx.update(gpui_tokio::init);
+        cx.update(client::init_settings);

        let fs = FakeFs::new(cx.executor().clone());
-        cx.update(|cx| {
-            settings::init(cx);
-            gpui_tokio::init(cx);
-            let http_client = Arc::new(ReqwestClient::user_agent("agent tests").unwrap());
-            cx.set_http_client(http_client);
-
-            client::init_settings(cx);
-            let client = Client::production(cx);
-            let user_store = cx.new(|cx| UserStore::new(client.clone(), cx));
-
-            settings::init(cx);
-            Project::init_settings(cx);
-            language::init(cx);
-            language_model::init(client.clone(), cx);
-            language_models::init(user_store.clone(), client.clone(), fs.clone(), cx);
-            crate::init(client.http_client(), cx);
-        });
-
        fs.insert_tree("/root", json!({})).await;
        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
        let (agent_model, judge_model) = cx
            .update(|cx| {
+                let http_client = ReqwestClient::user_agent("agent tests").unwrap();
+                cx.set_http_client(Arc::new(http_client));
+
+                let client = Client::production(cx);
+                let user_store = cx.new(|cx| UserStore::new(client.clone(), cx));
+                language_model::init(client.clone(), cx);
+                language_models::init(user_store.clone(), client.clone(), fs.clone(), cx);
+
                cx.spawn(async move |cx| {
                    let agent_model =
                        Self::load_model("anthropic", "claude-3-7-sonnet-latest", cx).await;
@@ -1301,32 +1232,12 @@ impl EditAgentTest {
            .update(cx, |project, cx| project.open_buffer(path, cx))
            .await
            .unwrap();
-        let conversation = LanguageModelRequest {
-            messages: eval.conversation,
-            tools: cx.update(|cx| {
-                ToolRegistry::default_global(cx)
-                    .tools()
-                    .into_iter()
-                    .filter_map(|tool| {
-                        let input_schema = tool
-                            .input_schema(self.agent.model.tool_input_format())
-                            .ok()?;
-                        Some(LanguageModelRequestTool {
-                            name: tool.name(),
-                            description: tool.description(),
-                            input_schema,
-                        })
-                    })
-                    .collect()
-            }),
-            ..Default::default()
-        };
        let edit_output = if let Some(input_content) = eval.input_content.as_deref() {
            buffer.update(cx, |buffer, cx| buffer.set_text(input_content, cx));
            let (edit_output, _) = self.agent.edit(
                buffer.clone(),
                eval.edit_description,
-                &conversation,
+                eval.conversation,
                &mut cx.to_async(),
            );
            edit_output.await?
@@ -1334,7 +1245,7 @@ impl EditAgentTest {
            let (edit_output, _) = self.agent.overwrite(
                buffer.clone(),
                eval.edit_description,
-                &conversation,
+                eval.conversation,
                &mut cx.to_async(),
            );
            edit_output.await?
--- a/crates/assistant_tools/src/edit_agent/evals/fixtures/disable_cursor_blinking/after.rs
+++ b/crates/assistant_tools/src/edit_agent/evals/fixtures/disable_cursor_blinking/after.rs
--- a/crates/assistant_tools/src/edit_agent/evals/fixtures/translate_doc_comments/before.rs
+++ b/crates/assistant_tools/src/edit_agent/evals/fixtures/translate_doc_comments/before.rs
@@ -1,339 +0,0 @@
-// font-kit/src/canvas.rs
-//
-// Copyright © 2018 The Pathfinder Project Developers.
-//
-// Licensed under the Apache License, Version 2.0 <LICENSE-APACHE or
-// http://www.apache.org/licenses/LICENSE-2.0> or the MIT license
-// <LICENSE-MIT or http://opensource.org/licenses/MIT>, at your
-// option. This file may not be copied, modified, or distributed
-// except according to those terms.
-
-//! An in-memory bitmap surface for glyph rasterization.
-
-use lazy_static::lazy_static;
-use pathfinder_geometry::rect::RectI;
-use pathfinder_geometry::vector::Vector2I;
-use std::cmp;
-use std::fmt;
-
-use crate::utils;
-
-lazy_static! {
-    static ref BITMAP_1BPP_TO_8BPP_LUT: [[u8; 8]; 256] = {
-        let mut lut = [[0; 8]; 256];
-        for byte in 0..0x100 {
-            let mut value = [0; 8];
-            for bit in 0..8 {
-                if (byte & (0x80 >> bit)) != 0 {
-                    value[bit] = 0xff;
-                }
-            }
-            lut[byte] = value
-        }
-        lut
-    };
-}
-
-/// An in-memory bitmap surface for glyph rasterization.
-pub struct Canvas {
-    /// The raw pixel data.
-    pub pixels: Vec<u8>,
-    /// The size of the buffer, in pixels.
-    pub size: Vector2I,
-    /// The number of *bytes* between successive rows.
-    pub stride: usize,
-    /// The image format of the canvas.
-    pub format: Format,
-}
-
-impl Canvas {
-    /// Creates a new blank canvas with the given pixel size and format.
-    ///
-    /// Stride is automatically calculated from width.
-    ///
-    /// The canvas is initialized with transparent black (all values 0).
-    #[inline]
-    pub fn new(size: Vector2I, format: Format) -> Canvas {
-        Canvas::with_stride(
-            size,
-            size.x() as usize * format.bytes_per_pixel() as usize,
-            format,
-        )
-    }
-
-    /// Creates a new blank canvas with the given pixel size, stride (number of bytes between
-    /// successive rows), and format.
-    ///
-    /// The canvas is initialized with transparent black (all values 0).
-    pub fn with_stride(size: Vector2I, stride: usize, format: Format) -> Canvas {
-        Canvas {
-            pixels: vec![0; stride * size.y() as usize],
-            size,
-            stride,
-            format,
-        }
-    }
-
-    #[allow(dead_code)]
-    pub(crate) fn blit_from_canvas(&mut self, src: &Canvas) {
-        self.blit_from(
-            Vector2I::default(),
-            &src.pixels,
-            src.size,
-            src.stride,
-            src.format,
-        )
-    }
-
-    /// Blits to a rectangle with origin at `dst_point` and size according to `src_size`.
-    /// If the target area overlaps the boundaries of the canvas, only the drawable region is blitted.
-    /// `dst_point` and `src_size` are specified in pixels. `src_stride` is specified in bytes.
-    /// `src_stride` must be equal or larger than the actual data length.
-    #[allow(dead_code)]
-    pub(crate) fn blit_from(
-        &mut self,
-        dst_point: Vector2I,
-        src_bytes: &[u8],
-        src_size: Vector2I,
-        src_stride: usize,
-        src_format: Format,
-    ) {
-        assert_eq!(
-            src_stride * src_size.y() as usize,
-            src_bytes.len(),
-            "Number of pixels in src_bytes does not match stride and size."
-        );
-        assert!(
-            src_stride >= src_size.x() as usize * src_format.bytes_per_pixel() as usize,
-            "src_stride must be >= than src_size.x()"
-        );
-
-        let dst_rect = RectI::new(dst_point, src_size);
-        let dst_rect = dst_rect.intersection(RectI::new(Vector2I::default(), self.size));
-        let dst_rect = match dst_rect {
-            Some(dst_rect) => dst_rect,
-            None => return,
-        };
-
-        match (self.format, src_format) {
-            (Format::A8, Format::A8)
-            | (Format::Rgb24, Format::Rgb24)
-            | (Format::Rgba32, Format::Rgba32) => {
-                self.blit_from_with::<BlitMemcpy>(dst_rect, src_bytes, src_stride, src_format)
-            }
-            (Format::A8, Format::Rgb24) => {
-                self.blit_from_with::<BlitRgb24ToA8>(dst_rect, src_bytes, src_stride, src_format)
-            }
-            (Format::Rgb24, Format::A8) => {
-                self.blit_from_with::<BlitA8ToRgb24>(dst_rect, src_bytes, src_stride, src_format)
-            }
-            (Format::Rgb24, Format::Rgba32) => self
-                .blit_from_with::<BlitRgba32ToRgb24>(dst_rect, src_bytes, src_stride, src_format),
-            (Format::Rgba32, Format::Rgb24) => self
-                .blit_from_with::<BlitRgb24ToRgba32>(dst_rect, src_bytes, src_stride, src_format),
-            (Format::Rgba32, Format::A8) | (Format::A8, Format::Rgba32) => unimplemented!(),
-        }
-    }
-
-    #[allow(dead_code)]
-    pub(crate) fn blit_from_bitmap_1bpp(
-        &mut self,
-        dst_point: Vector2I,
-        src_bytes: &[u8],
-        src_size: Vector2I,
-        src_stride: usize,
-    ) {
-        if self.format != Format::A8 {
-            unimplemented!()
-        }
-
-        let dst_rect = RectI::new(dst_point, src_size);
-        let dst_rect = dst_rect.intersection(RectI::new(Vector2I::default(), self.size));
-        let dst_rect = match dst_rect {
-            Some(dst_rect) => dst_rect,
-            None => return,
-        };
-
-        let size = dst_rect.size();
-
-        let dest_bytes_per_pixel = self.format.bytes_per_pixel() as usize;
-        let dest_row_stride = size.x() as usize * dest_bytes_per_pixel;
-        let src_row_stride = utils::div_round_up(size.x() as usize, 8);
-
-        for y in 0..size.y() {
-            let (dest_row_start, src_row_start) = (
-                (y + dst_rect.origin_y()) as usize * self.stride
-                    + dst_rect.origin_x() as usize * dest_bytes_per_pixel,
-                y as usize * src_stride,
-            );
-            let dest_row_end = dest_row_start + dest_row_stride;
-            let src_row_end = src_row_start + src_row_stride;
-            let dest_row_pixels = &mut self.pixels[dest_row_start..dest_row_end];
-            let src_row_pixels = &src_bytes[src_row_start..src_row_end];
-            for x in 0..src_row_stride {
-                let pattern = &BITMAP_1BPP_TO_8BPP_LUT[src_row_pixels[x] as usize];
-                let dest_start = x * 8;
-                let dest_end = cmp::min(dest_start + 8, dest_row_stride);
-                let src = &pattern[0..(dest_end - dest_start)];
-                dest_row_pixels[dest_start..dest_end].clone_from_slice(src);
-            }
-        }
-    }
-
-    /// Blits to area `rect` using the data given in the buffer `src_bytes`.
-    /// `src_stride` must be specified in bytes.
-    /// The dimensions of `rect` must be in pixels.
-    fn blit_from_with<B: Blit>(
-        &mut self,
-        rect: RectI,
-        src_bytes: &[u8],
-        src_stride: usize,
-        src_format: Format,
-    ) {
-        let src_bytes_per_pixel = src_format.bytes_per_pixel() as usize;
-        let dest_bytes_per_pixel = self.format.bytes_per_pixel() as usize;
-
-        for y in 0..rect.height() {
-            let (dest_row_start, src_row_start) = (
-                (y + rect.origin_y()) as usize * self.stride
-                    + rect.origin_x() as usize * dest_bytes_per_pixel,
-                y as usize * src_stride,
-            );
-            let dest_row_end = dest_row_start + rect.width() as usize * dest_bytes_per_pixel;
-            let src_row_end = src_row_start + rect.width() as usize * src_bytes_per_pixel;
-            let dest_row_pixels = &mut self.pixels[dest_row_start..dest_row_end];
-            let src_row_pixels = &src_bytes[src_row_start..src_row_end];
-            B::blit(dest_row_pixels, src_row_pixels)
-        }
-    }
-}
-
-impl fmt::Debug for Canvas {
-    fn fmt(&self, f: &mut fmt::Formatter) -> fmt::Result {
-        f.debug_struct("Canvas")
-            .field("pixels", &self.pixels.len()) // Do not dump a vector content.
-            .field("size", &self.size)
-            .field("stride", &self.stride)
-            .field("format", &self.format)
-            .finish()
-    }
-}
-
-/// The image format for the canvas.
-#[derive(Clone, Copy, Debug, PartialEq)]
-pub enum Format {
-    /// Premultiplied R8G8B8A8, little-endian.
-    Rgba32,
-    /// R8G8B8, little-endian.
-    Rgb24,
-    /// A8.
-    A8,
-}
-
-impl Format {
-    /// Returns the number of bits per pixel that this image format corresponds to.
-    #[inline]
-    pub fn bits_per_pixel(self) -> u8 {
-        match self {
-            Format::Rgba32 => 32,
-            Format::Rgb24 => 24,
-            Format::A8 => 8,
-        }
-    }
-
-    /// Returns the number of color channels per pixel that this image format corresponds to.
-    #[inline]
-    pub fn components_per_pixel(self) -> u8 {
-        match self {
-            Format::Rgba32 => 4,
-            Format::Rgb24 => 3,
-            Format::A8 => 1,
-        }
-    }
-
-    /// Returns the number of bits per color channel that this image format contains.
-    #[inline]
-    pub fn bits_per_component(self) -> u8 {
-        self.bits_per_pixel() / self.components_per_pixel()
-    }
-
-    /// Returns the number of bytes per pixel that this image format corresponds to.
-    #[inline]
-    pub fn bytes_per_pixel(self) -> u8 {
-        self.bits_per_pixel() / 8
-    }
-}
-
-/// The antialiasing strategy that should be used when rasterizing glyphs.
-#[derive(Clone, Copy, Debug, PartialEq)]
-pub enum RasterizationOptions {
-    /// "Black-and-white" rendering. Each pixel is either entirely on or off.
-    Bilevel,
-    /// Grayscale antialiasing. Only one channel is used.
-    GrayscaleAa,
-    /// Subpixel RGB antialiasing, for LCD screens.
-    SubpixelAa,
-}
-
-trait Blit {
-    fn blit(dest: &mut [u8], src: &[u8]);
-}
-
-struct BlitMemcpy;
-
-impl Blit for BlitMemcpy {
-    #[inline]
-    fn blit(dest: &mut [u8], src: &[u8]) {
-        dest.clone_from_slice(src)
-    }
-}
-
-struct BlitRgb24ToA8;
-
-impl Blit for BlitRgb24ToA8 {
-    #[inline]
-    fn blit(dest: &mut [u8], src: &[u8]) {
-        // TODO(pcwalton): SIMD.
-        for (dest, src) in dest.iter_mut().zip(src.chunks(3)) {
-            *dest = src[1]
-        }
-    }
-}
-
-struct BlitA8ToRgb24;
-
-impl Blit for BlitA8ToRgb24 {
-    #[inline]
-    fn blit(dest: &mut [u8], src: &[u8]) {
-        for (dest, src) in dest.chunks_mut(3).zip(src.iter()) {
-            dest[0] = *src;
-            dest[1] = *src;
-            dest[2] = *src;
-        }
-    }
-}
-
-struct BlitRgba32ToRgb24;
-
-impl Blit for BlitRgba32ToRgb24 {
-    #[inline]
-    fn blit(dest: &mut [u8], src: &[u8]) {
-        // TODO(pcwalton): SIMD.
-        for (dest, src) in dest.chunks_mut(3).zip(src.chunks(4)) {
-            dest.copy_from_slice(&src[0..3])
-        }
-    }
-}
-
-struct BlitRgb24ToRgba32;
-
-impl Blit for BlitRgb24ToRgba32 {
-    fn blit(dest: &mut [u8], src: &[u8]) {
-        for (dest, src) in dest.chunks_mut(4).zip(src.chunks(3)) {
-            dest[0] = src[0];
-            dest[1] = src[1];
-            dest[2] = src[2];
-            dest[3] = 255;
-        }
-    }
-}
--- a/crates/assistant_tools/src/edit_file_tool.rs
+++ b/crates/assistant_tools/src/edit_file_tool.rs
@@ -1,27 +1,21 @@
 use crate::{
-    Templates,
-    edit_agent::{EditAgent, EditAgentOutput, EditAgentOutputEvent},
+    replace::{replace_exact, replace_with_flexible_indent},
    schema::json_schema_for,
 };
-use anyhow::{Result, anyhow};
-use assistant_tool::{
-    ActionLog, AnyToolCard, Tool, ToolCard, ToolResult, ToolResultOutput, ToolUseStatus,
-};
+use anyhow::{Context as _, Result, anyhow};
+use assistant_tool::{ActionLog, AnyToolCard, Tool, ToolCard, ToolResult, ToolUseStatus};
 use buffer_diff::{BufferDiff, BufferDiffSnapshot};
-use editor::{Editor, EditorMode, MultiBuffer, PathKey};
-use futures::StreamExt;
+use editor::{Editor, EditorElement, EditorMode, EditorStyle, MultiBuffer, PathKey};
 use gpui::{
-    Animation, AnimationExt, AnyWindowHandle, App, AppContext, AsyncApp, Entity, EntityId, Task,
-    TextStyleRefinement, WeakEntity, pulsating_between,
+    Animation, AnimationExt, AnyWindowHandle, App, AppContext, AsyncApp, Context, Entity, EntityId,
+    Task, TextStyle, WeakEntity, pulsating_between,
 };
-use indoc::formatdoc;
 use language::{
    Anchor, Buffer, Capability, LanguageRegistry, LineEnding, OffsetRangeExt, Rope, TextBuffer,
    language_settings::SoftWrap,
 };
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
-use markdown::{Markdown, MarkdownElement, MarkdownStyle};
-use project::Project;
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use project::{AgentLocation, Project};
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use settings::Settings;
@@ -31,7 +25,7 @@ use std::{
    time::Duration,
 };
 use theme::ThemeSettings;
-use ui::{Disclosure, Tooltip, prelude::*};
+use ui::{Disclosure, Tooltip, Window, prelude::*};
 use util::ResultExt;
 use workspace::Workspace;

@@ -39,13 +33,7 @@ pub struct EditFileTool;

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct EditFileToolInput {
-    /// A one-line, user-friendly markdown description of the edit. This will be
-    /// shown in the UI and also passed to another model to perform the edit.
-    ///
-    /// Be terse, but also descriptive in what you want to achieve with this
-    /// edit. Avoid generic instructions.
-    ///
-    /// NEVER mention the file path in this description.
+    /// 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>
@@ -54,7 +42,7 @@ pub struct EditFileToolInput {
    /// so that we can display it immediately.
    pub display_description: String,

-    /// The full path of the file to create or modify in the project.
+    /// 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.
@@ -75,20 +63,11 @@ pub struct EditFileToolInput {
    /// </example>
    pub path: PathBuf,

-    /// If true, this tool will recreate the file from scratch.
-    /// If false, this tool will produce granular edits to an existing file.
-    ///
-    /// When a file already exists or you just created it, always prefer editing
-    /// it as opposed to recreating it from scratch.
-    pub create_or_overwrite: bool,
-}
+    /// The text to replace.
+    pub old_string: String,

-#[derive(Debug, Serialize, Deserialize, JsonSchema)]
-pub struct EditFileToolOutput {
-    pub original_path: PathBuf,
-    pub new_text: String,
-    pub old_text: String,
-    pub raw_output: Option<EditAgentOutput>,
+    /// The text to replace it with.
+    pub new_string: String,
 }

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
@@ -97,6 +76,10 @@ struct PartialInput {
    path: String,
    #[serde(default)]
    display_description: String,
+    #[serde(default)]
+    old_string: String,
+    #[serde(default)]
+    new_string: String,
 }

 const DEFAULT_UI_TEXT: &str = "Editing file";
@@ -148,10 +131,9 @@ impl Tool for EditFileTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
-        model: Arc<dyn LanguageModel>,
        window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -160,14 +142,6 @@ impl Tool for EditFileTool {
            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
        };

-        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.display()
-            )))
-            .into();
-        };
-
        let card = window.and_then(|window| {
            window
                .update(cx, |_, window, cx| {
@@ -180,7 +154,11 @@ impl Tool for EditFileTool {

        let card_clone = card.clone();
        let task = cx.spawn(async move |cx: &mut AsyncApp| {
-            let edit_agent = EditAgent::new(model, project.clone(), action_log, Templates::new());
+            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| {
@@ -188,89 +166,118 @@ impl Tool for EditFileTool {
                })?
                .await?;

-            let exists = buffer.read_with(cx, |buffer, _| {
-                buffer
-                    .file()
-                    .as_ref()
-                    .map_or(false, |file| file.disk_state().exists())
-            })?;
-            if !input.create_or_overwrite && !exists {
-                return Err(anyhow!("{} not found", input.path.display()));
+            // Set the agent's location to the top of the file
+            project
+                .update(cx, |project, cx| {
+                    project.set_agent_location(
+                        Some(AgentLocation {
+                            buffer: buffer.downgrade(),
+                            position: language::Anchor::MIN,
+                        }),
+                        cx,
+                    );
+                })
+                .ok();
+
+            let snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot())?;
+
+            if input.old_string.is_empty() {
+                return Err(anyhow!(
+                    "`old_string` can't be empty, use another tool if you want to create a file."
+                ));
            }

-            let old_snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot())?;
-            let old_text = cx
-                .background_spawn({
-                    let old_snapshot = old_snapshot.clone();
-                    async move { old_snapshot.text() }
+            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 (output, mut events) = if input.create_or_overwrite {
-                edit_agent.overwrite(
-                    buffer.clone(),
-                    input.display_description.clone(),
-                    &request,
-                    cx,
-                )
-            } else {
-                edit_agent.edit(
-                    buffer.clone(),
-                    input.display_description.clone(),
-                    &request,
-                    cx,
-                )
+            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 mut hallucinated_old_text = false;
-            while let Some(event) = events.next().await {
-                match event {
-                    EditAgentOutputEvent::Edited => {
-                        if let Some(card) = card_clone.as_ref() {
-                            let new_snapshot =
-                                buffer.read_with(cx, |buffer, _cx| buffer.snapshot())?;
-                            let new_text = cx
-                                .background_spawn({
-                                    let new_snapshot = new_snapshot.clone();
-                                    async move { new_snapshot.text() }
-                                })
-                                .await;
-                            card.update(cx, |card, cx| {
-                                card.set_diff(
-                                    project_path.path.clone(),
-                                    old_text.clone(),
-                                    new_text,
-                                    cx,
-                                );
-                            })
-                            .log_err();
-                        }
-                    }
-                    EditAgentOutputEvent::OldTextNotFound(_) => hallucinated_old_text = true,
+            let snapshot = cx.update(|cx| {
+                action_log.update(cx, |log, cx| log.buffer_read(buffer.clone(), cx));
+                let base_version = diff.base_version.clone();
+                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));
+
+                // Set the agent's location to the position of the first edit
+                if let Some(first_edit) = snapshot.edits_since::<usize>(&base_version).next() {
+                    let position = snapshot.anchor_before(first_edit.new.start);
+                    project.update(cx, |project, cx| {
+                        project.set_agent_location(
+                            Some(AgentLocation {
+                                buffer: buffer.downgrade(),
+                                position,
+                            }),
+                            cx,
+                        );
+                    })
                }
-            }
-            let agent_output = output.await?;
+
+                snapshot
+            })?;

            project
-                .update(cx, |project, cx| project.save_buffer(buffer.clone(), cx))?
+                .update(cx, |project, cx| project.save_buffer(buffer, cx))?
                .await?;

-            let new_snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot())?;
-            let new_text = cx.background_spawn({
-                let new_snapshot = new_snapshot.clone();
-                async move { new_snapshot.text() }
-            });
-            let diff = cx.background_spawn(async move {
-                language::unified_diff(&old_snapshot.text(), &new_snapshot.text())
-            });
-            let (new_text, diff) = futures::join!(new_text, diff);
-
-            let output = EditFileToolOutput {
-                original_path: project_path.path.to_path_buf(),
-                new_text: new_text.clone(),
-                old_text: old_text.clone(),
-                raw_output: Some(agent_output),
-            };
+            let new_text = snapshot.text();
+            let diff_str = cx
+                .background_spawn({
+                    let old_text = old_text.clone();
+                    let new_text = new_text.clone();
+                    async move { language::unified_diff(&old_text, &new_text) }
+                })
+                .await;

            if let Some(card) = card_clone {
                card.update(cx, |card, cx| {
@@ -279,23 +286,11 @@ impl Tool for EditFileTool {
                .log_err();
            }

-            let input_path = input.path.display();
-            if diff.is_empty() {
-                if hallucinated_old_text {
-                    Err(anyhow!(formatdoc! {"
-                        Some edits were produced but none of them could be applied.
-                        Read the relevant sections of {input_path} again so that
-                        I can perform the requested edits.
-                    "}))
-                } else {
-                    Ok("No edits were made.".to_string().into())
-                }
-            } else {
-                Ok(ToolResultOutput {
-                    content: format!("Edited {}:\n\n```diff\n{}\n```", input_path, diff),
-                    output: serde_json::to_value(output).ok(),
-                })
-            }
+            Ok(format!(
+                "Edited {}:\n\n```diff\n{}\n```",
+                input.path.display(),
+                diff_str
+            ))
        });

        ToolResult {
@@ -303,32 +298,6 @@ impl Tool for EditFileTool {
            card: card.map(AnyToolCard::from),
        }
    }
-
-    fn deserialize_card(
-        self: Arc<Self>,
-        output: serde_json::Value,
-        project: Entity<Project>,
-        window: &mut Window,
-        cx: &mut App,
-    ) -> Option<AnyToolCard> {
-        let output = match serde_json::from_value::<EditFileToolOutput>(output) {
-            Ok(output) => output,
-            Err(_) => return None,
-        };
-
-        let card = cx.new(|cx| {
-            let mut card = EditFileToolCard::new(output.original_path.clone(), project, window, cx);
-            card.set_diff(
-                output.original_path.into(),
-                output.old_text,
-                output.new_text,
-                cx,
-            );
-            card
-        });
-
-        Some(card.into())
-    }
 }

 pub struct EditFileToolCard {
@@ -338,7 +307,7 @@ pub struct EditFileToolCard {
    project: Entity<Project>,
    diff_task: Option<Task<Result<()>>>,
    preview_expanded: bool,
-    error_expanded: Option<Entity<Markdown>>,
+    error_expanded: bool,
    full_height_expanded: bool,
    total_lines: Option<u32>,
    editor_unique_id: EntityId,
@@ -381,7 +350,7 @@ impl EditFileToolCard {
            multibuffer,
            diff_task: None,
            preview_expanded: true,
-            error_expanded: None,
+            error_expanded: false,
            full_height_expanded: false,
            total_lines: None,
        }
@@ -438,9 +407,9 @@ impl ToolCard for EditFileToolCard {
        workspace: WeakEntity<Workspace>,
        cx: &mut Context<Self>,
    ) -> impl IntoElement {
-        let error_message = match status {
-            ToolUseStatus::Error(err) => Some(err),
-            _ => None,
+        let (failed, error_message) = match status {
+            ToolUseStatus::Error(err) => (true, Some(err.to_string())),
+            _ => (false, None),
        };

        let path_label_button = h_flex()
@@ -528,11 +497,9 @@ impl ToolCard for EditFileToolCard {
            .gap_1()
            .justify_between()
            .rounded_t_md()
-            .when(error_message.is_none(), |header| {
-                header.bg(codeblock_header_bg)
-            })
+            .when(!failed, |header| header.bg(codeblock_header_bg))
            .child(path_label_button)
-            .when_some(error_message, |header, error_message| {
+            .when(failed, |header| {
                header.child(
                    h_flex()
                        .gap_1()
@@ -544,28 +511,19 @@ impl ToolCard for EditFileToolCard {
                        .child(
                            Disclosure::new(
                                ("edit-file-error-disclosure", self.editor_unique_id),
-                                self.error_expanded.is_some(),
+                                self.error_expanded,
                            )
                            .opened_icon(IconName::ChevronUp)
                            .closed_icon(IconName::ChevronDown)
-                            .on_click(cx.listener({
-                                let error_message = error_message.clone();
-
-                                move |this, _event, _window, cx| {
-                                    if this.error_expanded.is_some() {
-                                        this.error_expanded.take();
-                                    } else {
-                                        this.error_expanded = Some(cx.new(|cx| {
-                                            Markdown::new(error_message.clone(), None, None, cx)
-                                        }))
-                                    }
-                                    cx.notify();
-                                }
-                            })),
+                            .on_click(cx.listener(
+                                move |this, _event, _window, _cx| {
+                                    this.error_expanded = !this.error_expanded;
+                                },
+                            )),
                        ),
                )
            })
-            .when(error_message.is_none() && self.has_diff(), |header| {
+            .when(!failed && self.has_diff(), |header| {
                header.child(
                    Disclosure::new(
                        ("edit-file-disclosure", self.editor_unique_id),
@@ -587,16 +545,33 @@ impl ToolCard for EditFileToolCard {
                .map(|style| style.text.line_height_in_pixels(window.rem_size()))
                .unwrap_or_default();

-            editor.set_text_style_refinement(TextStyleRefinement {
-                font_size: Some(
-                    TextSize::Small
-                        .rems(cx)
-                        .to_pixels(ThemeSettings::get_global(cx).agent_font_size(cx))
-                        .into(),
-                ),
-                ..TextStyleRefinement::default()
-            });
-            let element = editor.render(window, cx);
+            let settings = ThemeSettings::get_global(cx);
+            let element = EditorElement::new(
+                &cx.entity(),
+                EditorStyle {
+                    background: cx.theme().colors().editor_background,
+                    horizontal_padding: rems(0.25).to_pixels(window.rem_size()),
+                    local_player: cx.theme().players().local(),
+                    text: TextStyle {
+                        color: cx.theme().colors().editor_foreground,
+                        font_family: settings.buffer_font.family.clone(),
+                        font_features: settings.buffer_font.features.clone(),
+                        font_fallbacks: settings.buffer_font.fallbacks.clone(),
+                        font_size: TextSize::Small
+                            .rems(cx)
+                            .to_pixels(settings.agent_font_size(cx))
+                            .into(),
+                        font_weight: settings.buffer_font.weight,
+                        line_height: relative(settings.buffer_line_height.value()),
+                        ..Default::default()
+                    },
+                    scrollbar_width: EditorElement::SCROLLBAR_WIDTH,
+                    syntax: cx.theme().syntax().clone(),
+                    status: cx.theme().status().clone(),
+                    ..Default::default()
+                },
+            );
+
            (element.into_any_element(), line_height)
        });

@@ -606,18 +581,18 @@ impl ToolCard for EditFileToolCard {
            (IconName::ChevronDown, "Expand Code Block")
        };

-        let gradient_overlay =
-            div()
-                .absolute()
-                .bottom_0()
-                .left_0()
-                .w_full()
-                .h_2_5()
-                .bg(gpui::linear_gradient(
-                    0.,
-                    gpui::linear_color_stop(cx.theme().colors().editor_background, 0.),
-                    gpui::linear_color_stop(cx.theme().colors().editor_background.opacity(0.), 1.),
-                ));
+        let gradient_overlay = div()
+            .absolute()
+            .bottom_0()
+            .left_0()
+            .w_full()
+            .h_2_5()
+            .rounded_b_lg()
+            .bg(gpui::linear_gradient(
+                0.,
+                gpui::linear_color_stop(cx.theme().colors().editor_background, 0.),
+                gpui::linear_color_stop(cx.theme().colors().editor_background.opacity(0.), 1.),
+            ));

        let border_color = cx.theme().colors().border.opacity(0.6);

@@ -635,9 +610,8 @@ impl ToolCard for EditFileToolCard {

            let mut container = v_flex()
                .p_3()
-                .gap_1()
+                .gap_1p5()
                .border_t_1()
-                .rounded_md()
                .border_color(border_color)
                .bg(cx.theme().colors().editor_background);

@@ -652,7 +626,7 @@ impl ToolCard for EditFileToolCard {
                    _ => div().w_1_2(),
                }
                .id("loading_div")
-                .h_1()
+                .h_2()
                .rounded_full()
                .bg(cx.theme().colors().element_active)
                .with_animation(
@@ -672,12 +646,12 @@ impl ToolCard for EditFileToolCard {
        v_flex()
            .mb_2()
            .border_1()
-            .when(error_message.is_some(), |card| card.border_dashed())
+            .when(failed, |card| card.border_dashed())
            .border_color(border_color)
-            .rounded_md()
+            .rounded_lg()
            .overflow_hidden()
            .child(codeblock_header)
-            .when_some(self.error_expanded.as_ref(), |card, error_markdown| {
+            .when(failed && self.error_expanded, |card| {
                card.child(
                    v_flex()
                        .p_2()
@@ -697,81 +671,64 @@ impl ToolCard for EditFileToolCard {
                                .rounded_md()
                                .text_ui_sm(cx)
                                .bg(cx.theme().colors().editor_background)
-                                .child(MarkdownElement::new(
-                                    error_markdown.clone(),
-                                    markdown_style(window, cx),
-                                )),
+                                .children(
+                                    error_message
+                                        .map(|error| div().child(error).into_any_element()),
+                                ),
                        ),
                )
            })
-            .when(!self.has_diff() && error_message.is_none(), |card| {
+            .when(!self.has_diff() && !failed, |card| {
                card.child(waiting_for_diff)
            })
-            .when(self.preview_expanded && self.has_diff(), |card| {
-                card.child(
-                    v_flex()
-                        .relative()
-                        .h_full()
-                        .when(!self.full_height_expanded, |editor_container| {
-                            editor_container
-                                .max_h(DEFAULT_COLLAPSED_LINES as f32 * editor_line_height)
-                        })
-                        .overflow_hidden()
-                        .border_t_1()
-                        .border_color(border_color)
-                        .bg(cx.theme().colors().editor_background)
-                        .child(editor)
-                        .when(
-                            !self.full_height_expanded && is_collapsible,
-                            |editor_container| editor_container.child(gradient_overlay),
-                        ),
-                )
-                .when(is_collapsible, |card| {
+            .when(
+                !failed && self.preview_expanded && self.has_diff(),
+                |card| {
                    card.child(
-                        h_flex()
-                            .id(("expand-button", self.editor_unique_id))
-                            .flex_none()
-                            .cursor_pointer()
-                            .h_5()
-                            .justify_center()
+                        v_flex()
+                            .relative()
+                            .h_full()
+                            .when(!self.full_height_expanded, |editor_container| {
+                                editor_container
+                                    .max_h(DEFAULT_COLLAPSED_LINES as f32 * editor_line_height)
+                            })
+                            .overflow_hidden()
                            .border_t_1()
-                            .rounded_b_md()
                            .border_color(border_color)
                            .bg(cx.theme().colors().editor_background)
-                            .hover(|style| style.bg(cx.theme().colors().element_hover.opacity(0.1)))
-                            .child(
-                                Icon::new(full_height_icon)
-                                    .size(IconSize::Small)
-                                    .color(Color::Muted),
-                            )
-                            .tooltip(Tooltip::text(full_height_tooltip_label))
-                            .on_click(cx.listener(move |this, _event, _window, _cx| {
-                                this.full_height_expanded = !this.full_height_expanded;
-                            })),
+                            .child(editor)
+                            .when(
+                                !self.full_height_expanded && is_collapsible,
+                                |editor_container| editor_container.child(gradient_overlay),
+                            ),
                    )
-                })
-            })
-    }
-}
-
-fn markdown_style(window: &Window, cx: &App) -> MarkdownStyle {
-    let theme_settings = ThemeSettings::get_global(cx);
-    let ui_font_size = TextSize::Default.rems(cx);
-    let mut text_style = window.text_style();
-
-    text_style.refine(&TextStyleRefinement {
-        font_family: Some(theme_settings.ui_font.family.clone()),
-        font_fallbacks: theme_settings.ui_font.fallbacks.clone(),
-        font_features: Some(theme_settings.ui_font.features.clone()),
-        font_size: Some(ui_font_size.into()),
-        color: Some(cx.theme().colors().text),
-        ..Default::default()
-    });
-
-    MarkdownStyle {
-        base_text_style: text_style.clone(),
-        selection_background_color: cx.theme().players().local().selection,
-        ..Default::default()
+                    .when(is_collapsible, |editor_container| {
+                        editor_container.child(
+                            h_flex()
+                                .id(("expand-button", self.editor_unique_id))
+                                .flex_none()
+                                .cursor_pointer()
+                                .h_5()
+                                .justify_center()
+                                .border_t_1()
+                                .border_color(border_color)
+                                .bg(cx.theme().colors().editor_background)
+                                .hover(|style| {
+                                    style.bg(cx.theme().colors().element_hover.opacity(0.1))
+                                })
+                                .child(
+                                    Icon::new(full_height_icon)
+                                        .size(IconSize::Small)
+                                        .color(Color::Muted),
+                                )
+                                .tooltip(Tooltip::text(full_height_tooltip_label))
+                                .on_click(cx.listener(move |this, _event, _window, _cx| {
+                                    this.full_height_expanded = !this.full_height_expanded;
+                                })),
+                        )
+                    })
+                },
+            )
    }
 }

@@ -851,48 +808,7 @@ async fn build_buffer_diff(
 #[cfg(test)]
 mod tests {
    use super::*;
-    use fs::FakeFs;
-    use gpui::TestAppContext;
-    use language_model::fake_provider::FakeLanguageModel;
    use serde_json::json;
-    use settings::SettingsStore;
-    use util::path;
-
-    #[gpui::test]
-    async fn test_edit_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 model = Arc::new(FakeLanguageModel::default());
-        let result = cx
-            .update(|cx| {
-                let input = serde_json::to_value(EditFileToolInput {
-                    display_description: "Some edit".into(),
-                    path: "root/nonexistent_file.txt".into(),
-                    create_or_overwrite: false,
-                })
-                .unwrap();
-                Arc::new(EditFileTool)
-                    .run(
-                        input,
-                        Arc::default(),
-                        project.clone(),
-                        action_log,
-                        model,
-                        None,
-                        cx,
-                    )
-                    .output
-            })
-            .await;
-        assert_eq!(
-            result.unwrap_err().to_string(),
-            "root/nonexistent_file.txt not found"
-        );
-    }

    #[test]
    fn still_streaming_ui_text_with_path() {
@@ -960,13 +876,4 @@ mod tests {
            DEFAULT_UI_TEXT,
        );
    }
-
-    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/edit_file_tool/description.md
+++ b/crates/assistant_tools/src/edit_file_tool/description.md
@@ -1,4 +1,4 @@
-This is a tool for creating a new file or editing an existing file. For moving or renaming files, you should generally use the `terminal` tool with the 'mv' command instead.
+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:

@@ -6,3 +6,40 @@ Before using this tool:

 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/fetch_tool.rs
+++ b/crates/assistant_tools/src/fetch_tool.rs
@@ -9,7 +9,7 @@ use futures::AsyncReadExt as _;
 use gpui::{AnyWindowHandle, App, AppContext as _, Entity, Task};
 use html_to_markdown::{TagHandler, convert_html_to_markdown, markdown};
 use http_client::{AsyncBody, HttpClientWithUrl};
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -142,10 +142,9 @@ impl Tool for FetchTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        _project: Entity<Project>,
        _action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -167,7 +166,7 @@ impl Tool for FetchTool {
                    bail!("no textual content found");
                }

-                Ok(text.into())
+                Ok(text)
            })
            .into()
    }
--- a/crates/assistant_tools/src/find_path_tool.rs
+++ b/crates/assistant_tools/src/find_path_tool.rs
@@ -7,7 +7,7 @@ use gpui::{
    AnyWindowHandle, App, AppContext, Context, Entity, IntoElement, Task, WeakEntity, Window,
 };
 use language;
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -73,10 +73,9 @@ impl Tool for FindPathTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -99,7 +98,7 @@ impl Tool for FindPathTool {
            sender.send(paginated_matches.to_vec()).log_err();

            if matches.is_empty() {
-                Ok("No matches found".to_string().into())
+                Ok("No matches found".to_string())
            } else {
                let mut message = format!("Found {} total matches.", matches.len());
                if matches.len() > RESULTS_PER_PAGE {
@@ -114,7 +113,7 @@ impl Tool for FindPathTool {
                for mat in matches.into_iter().skip(offset).take(RESULTS_PER_PAGE) {
                    write!(&mut message, "\n{}", mat.display()).unwrap();
                }
-                Ok(message.into())
+                Ok(message)
            }
        });

--- a/crates/assistant_tools/src/grep_tool.rs
+++ b/crates/assistant_tools/src/grep_tool.rs
@@ -4,7 +4,7 @@ use assistant_tool::{ActionLog, Tool, ToolResult};
 use futures::StreamExt;
 use gpui::{AnyWindowHandle, App, Entity, Task};
 use language::{OffsetRangeExt, ParseStatus, Point};
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::{
    Project,
    search::{SearchQuery, SearchResult},
@@ -96,10 +96,9 @@ impl Tool for GrepTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -261,16 +260,16 @@ impl Tool for GrepTool {
            }

            if matches_found == 0 {
-                Ok("No matches found".to_string().into())
+                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,
-                ).into())
+                ))
            } else {
-                Ok(format!("Found {matches_found} matches:\n{output}").into())
+                Ok(format!("Found {matches_found} matches:\n{output}"))
            }
        }).into()
    }
@@ -282,7 +281,6 @@ mod tests {
    use assistant_tool::Tool;
    use gpui::{AppContext, TestAppContext};
    use language::{Language, LanguageConfig, LanguageMatcher};
-    use language_model::fake_provider::FakeLanguageModel;
    use project::{FakeFs, Project};
    use settings::SettingsStore;
    use unindent::Unindent;
@@ -745,16 +743,14 @@ mod tests {
    ) -> String {
        let tool = Arc::new(GrepTool);
        let action_log = cx.new(|_cx| ActionLog::new(project.clone()));
-        let model = Arc::new(FakeLanguageModel::default());
-        let task =
-            cx.update(|cx| tool.run(input, Arc::default(), project, action_log, model, None, cx));
+        let task = cx.update(|cx| tool.run(input, &[], project, action_log, None, cx));

        match task.output.await {
            Ok(result) => {
                if cfg!(windows) {
-                    result.content.replace("root\\", "root/")
+                    result.replace("root\\", "root/")
                } else {
-                    result.content
+                    result
                }
            }
            Err(e) => panic!("Failed to run grep tool: {}", e),
--- a/crates/assistant_tools/src/list_directory_tool.rs
+++ b/crates/assistant_tools/src/list_directory_tool.rs
@@ -2,7 +2,7 @@ use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
 use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{AnyWindowHandle, App, Entity, Task};
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -73,10 +73,9 @@ impl Tool for ListDirectoryTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -103,7 +102,7 @@ impl Tool for ListDirectoryTool {
                .collect::<Vec<_>>()
                .join("\n");

-            return Task::ready(Ok(output.into())).into();
+            return Task::ready(Ok(output)).into();
        }

        let Some(project_path) = project.read(cx).find_project_path(&input.path, cx) else {
@@ -135,8 +134,8 @@ impl Tool for ListDirectoryTool {
            .unwrap();
        }
        if output.is_empty() {
-            return Task::ready(Ok(format!("{} is empty.", input.path).into())).into();
+            return Task::ready(Ok(format!("{} is empty.", input.path))).into();
        }
-        Task::ready(Ok(output.into())).into()
+        Task::ready(Ok(output)).into()
    }
 }
--- a/crates/assistant_tools/src/move_path_tool.rs
+++ b/crates/assistant_tools/src/move_path_tool.rs
@@ -2,7 +2,7 @@ use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
 use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{AnyWindowHandle, App, AppContext, Entity, Task};
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -86,10 +86,9 @@ impl Tool for MovePathTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -118,9 +117,10 @@ impl Tool for MovePathTool {

        cx.background_spawn(async move {
            match rename_task.await {
-                Ok(_) => {
-                    Ok(format!("Moved {} to {}", input.source_path, input.destination_path).into())
-                }
+                Ok(_) => Ok(format!(
+                    "Moved {} to {}",
+                    input.source_path, input.destination_path
+                )),
                Err(err) => Err(anyhow!(
                    "Failed to move {} to {}: {}",
                    input.source_path,
--- a/crates/assistant_tools/src/now_tool.rs
+++ b/crates/assistant_tools/src/now_tool.rs
@@ -5,7 +5,7 @@ use anyhow::{Result, anyhow};
 use assistant_tool::{ActionLog, Tool, ToolResult};
 use chrono::{Local, Utc};
 use gpui::{AnyWindowHandle, App, Entity, Task};
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -56,10 +56,9 @@ impl Tool for NowTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        _project: Entity<Project>,
        _action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        _cx: &mut App,
    ) -> ToolResult {
@@ -74,6 +73,6 @@ impl Tool for NowTool {
        };
        let text = format!("The current datetime is {now}.");

-        Task::ready(Ok(text.into())).into()
+        Task::ready(Ok(text)).into()
    }
 }
--- a/crates/assistant_tools/src/open_tool.rs
+++ b/crates/assistant_tools/src/open_tool.rs
@@ -2,7 +2,7 @@ use crate::schema::json_schema_for;
 use anyhow::{Context as _, Result, anyhow};
 use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{AnyWindowHandle, App, AppContext, Entity, Task};
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -49,10 +49,9 @@ impl Tool for OpenTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -71,7 +70,7 @@ impl Tool for OpenTool {
            }
            .context("Failed to open URL or file path")?;

-            Ok(format!("Successfully opened {}", input.path_or_url).into())
+            Ok(format!("Successfully opened {}", input.path_or_url))
        })
        .into()
    }
--- a/crates/assistant_tools/src/read_file_tool.rs
+++ b/crates/assistant_tools/src/read_file_tool.rs
@@ -7,7 +7,7 @@ use gpui::{AnyWindowHandle, App, Entity, Task};
 use indoc::formatdoc;
 use itertools::Itertools;
 use language::{Anchor, Point};
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::{AgentLocation, Project};
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -83,10 +83,9 @@ impl Tool for ReadFileTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -98,22 +97,27 @@ 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();
        };
+        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))
                })?
                .await?;
-            if buffer.read_with(cx, |buffer, _| {
-                buffer
-                    .file()
-                    .as_ref()
-                    .map_or(true, |file| !file.disk_state().exists())
-            })? {
-                return Err(anyhow!("{} not found", file_path));
-            }

            project.update(cx, |project, cx| {
                project.set_agent_location(
@@ -141,13 +145,9 @@ impl Tool for ReadFileTool {
                    let lines = text.split('\n').skip(start_row as usize);
                    if let Some(end) = input.end_line {
                        let count = end.saturating_sub(start).saturating_add(1); // Ensure at least 1 line
-                        Itertools::intersperse(lines.take(count as usize), "\n")
-                            .collect::<String>()
-                            .into()
+                        Itertools::intersperse(lines.take(count as usize), "\n").collect()
                    } else {
-                        Itertools::intersperse(lines, "\n")
-                            .collect::<String>()
-                            .into()
+                        Itertools::intersperse(lines, "\n").collect()
                    }
                })?;

@@ -180,24 +180,19 @@ impl Tool for ReadFileTool {
                        log.buffer_read(buffer, cx);
                    })?;

-                    Ok(result.into())
+                    Ok(result)
                } else {
                    // File is too big, so return the outline
                    // and a suggestion to read again with line numbers.
-                    let outline =
-                        outline::file_outline(project, file_path, action_log, None, cx).await?;
+                    let outline = 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:
+                        This file was too big to read all at once. Here is an outline of its symbols:

                        {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())
+                        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."
+                    })
                }
            }
        })
@@ -210,7 +205,6 @@ mod test {
    use super::*;
    use gpui::{AppContext, TestAppContext};
    use language::{Language, LanguageConfig, LanguageMatcher};
-    use language_model::fake_provider::FakeLanguageModel;
    use project::{FakeFs, Project};
    use serde_json::json;
    use settings::SettingsStore;
@@ -224,22 +218,13 @@ mod test {
        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 model = Arc::new(FakeLanguageModel::default());
        let result = cx
            .update(|cx| {
                let input = json!({
                    "path": "root/nonexistent_file.txt"
                });
                Arc::new(ReadFileTool)
-                    .run(
-                        input,
-                        Arc::default(),
-                        project.clone(),
-                        action_log,
-                        model,
-                        None,
-                        cx,
-                    )
+                    .run(input, &[], project.clone(), action_log, None, cx)
                    .output
            })
            .await;
@@ -263,26 +248,17 @@ mod test {
        .await;
        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
        let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let model = Arc::new(FakeLanguageModel::default());
        let result = cx
            .update(|cx| {
                let input = json!({
                    "path": "root/small_file.txt"
                });
                Arc::new(ReadFileTool)
-                    .run(
-                        input,
-                        Arc::default(),
-                        project.clone(),
-                        action_log,
-                        model,
-                        None,
-                        cx,
-                    )
+                    .run(input, &[], project.clone(), action_log, None, cx)
                    .output
            })
            .await;
-        assert_eq!(result.unwrap().content, "This is a small file content");
+        assert_eq!(result.unwrap(), "This is a small file content");
    }

    #[gpui::test]
@@ -301,7 +277,6 @@ mod test {
        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 model = Arc::new(FakeLanguageModel::default());

        let result = cx
            .update(|cx| {
@@ -309,21 +284,13 @@ mod test {
                    "path": "root/large_file.rs"
                });
                Arc::new(ReadFileTool)
-                    .run(
-                        input,
-                        Arc::default(),
-                        project.clone(),
-                        action_log.clone(),
-                        model.clone(),
-                        None,
-                        cx,
-                    )
+                    .run(input, &[], project.clone(), action_log.clone(), None, cx)
                    .output
            })
            .await;
        let content = result.unwrap();
        assert_eq!(
-            content.lines().skip(4).take(6).collect::<Vec<_>>(),
+            content.lines().skip(2).take(6).collect::<Vec<_>>(),
            vec![
                "struct Test0 [L1-4]",
                " a [L2]",
@@ -341,15 +308,7 @@ mod test {
                    "offset": 1
                });
                Arc::new(ReadFileTool)
-                    .run(
-                        input,
-                        Arc::default(),
-                        project.clone(),
-                        action_log,
-                        model,
-                        None,
-                        cx,
-                    )
+                    .run(input, &[], project.clone(), action_log, None, cx)
                    .output
            })
            .await;
@@ -366,7 +325,7 @@ mod test {
        pretty_assertions::assert_eq!(
            content
                .lines()
-                .skip(4)
+                .skip(2)
                .take(expected_content.len())
                .collect::<Vec<_>>(),
            expected_content
@@ -387,7 +346,6 @@ mod test {
        .await;
        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
        let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let model = Arc::new(FakeLanguageModel::default());
        let result = cx
            .update(|cx| {
                let input = json!({
@@ -396,19 +354,11 @@ mod test {
                    "end_line": 4
                });
                Arc::new(ReadFileTool)
-                    .run(
-                        input,
-                        Arc::default(),
-                        project.clone(),
-                        action_log,
-                        model,
-                        None,
-                        cx,
-                    )
+                    .run(input, &[], project.clone(), action_log, None, cx)
                    .output
            })
            .await;
-        assert_eq!(result.unwrap().content, "Line 2\nLine 3\nLine 4");
+        assert_eq!(result.unwrap(), "Line 2\nLine 3\nLine 4");
    }

    #[gpui::test]
@@ -425,7 +375,6 @@ mod test {
        .await;
        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
        let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let model = Arc::new(FakeLanguageModel::default());

        // start_line of 0 should be treated as 1
        let result = cx
@@ -436,19 +385,11 @@ mod test {
                    "end_line": 2
                });
                Arc::new(ReadFileTool)
-                    .run(
-                        input,
-                        Arc::default(),
-                        project.clone(),
-                        action_log.clone(),
-                        model.clone(),
-                        None,
-                        cx,
-                    )
+                    .run(input, &[], project.clone(), action_log.clone(), None, cx)
                    .output
            })
            .await;
-        assert_eq!(result.unwrap().content, "Line 1\nLine 2");
+        assert_eq!(result.unwrap(), "Line 1\nLine 2");

        // end_line of 0 should result in at least 1 line
        let result = cx
@@ -459,19 +400,11 @@ mod test {
                    "end_line": 0
                });
                Arc::new(ReadFileTool)
-                    .run(
-                        input,
-                        Arc::default(),
-                        project.clone(),
-                        action_log.clone(),
-                        model.clone(),
-                        None,
-                        cx,
-                    )
+                    .run(input, &[], project.clone(), action_log.clone(), None, cx)
                    .output
            })
            .await;
-        assert_eq!(result.unwrap().content, "Line 1");
+        assert_eq!(result.unwrap(), "Line 1");

        // when start_line > end_line, should still return at least 1 line
        let result = cx
@@ -482,19 +415,11 @@ mod test {
                    "end_line": 2
                });
                Arc::new(ReadFileTool)
-                    .run(
-                        input,
-                        Arc::default(),
-                        project.clone(),
-                        action_log,
-                        model,
-                        None,
-                        cx,
-                    )
+                    .run(input, &[], project.clone(), action_log, None, cx)
                    .output
            })
            .await;
-        assert_eq!(result.unwrap().content, "Line 3");
+        assert_eq!(result.unwrap(), "Line 3");
    }

    fn init_test(cx: &mut TestAppContext) {
--- a/crates/assistant_tools/src/replace.rs
+++ b/crates/assistant_tools/src/replace.rs
@@ -0,0 +1,872 @@
+use language::{BufferSnapshot, Diff, Point, ToOffset};
+use project::search::SearchQuery;
+use std::iter;
+use util::{ResultExt as _, paths::PathMatcher};
+
+/// Performs an exact string replacement in a buffer, requiring precise character-for-character matching.
+/// Uses the search functionality to locate the first occurrence of the exact string.
+/// Returns None if no exact match is found in the buffer.
+pub async fn replace_exact(old: &str, new: &str, snapshot: &BufferSnapshot) -> Option<Diff> {
+    let query = SearchQuery::text(
+        old,
+        false,
+        true,
+        true,
+        PathMatcher::new(iter::empty::<&str>()).ok()?,
+        PathMatcher::new(iter::empty::<&str>()).ok()?,
+        false,
+        None,
+    )
+    .log_err()?;
+
+    let matches = query.search(&snapshot, None).await;
+
+    if matches.is_empty() {
+        return None;
+    }
+
+    let edit_range = matches[0].clone();
+    let diff = language::text_diff(&old, &new);
+
+    let edits = diff
+        .into_iter()
+        .map(|(old_range, text)| {
+            let start = edit_range.start + old_range.start;
+            let end = edit_range.start + old_range.end;
+            (start..end, text)
+        })
+        .collect::<Vec<_>>();
+
+    let diff = language::Diff {
+        base_version: snapshot.version().clone(),
+        line_ending: snapshot.line_ending(),
+        edits,
+    };
+
+    Some(diff)
+}
+
+/// Performs a replacement that's indentation-aware - matches text content ignoring leading whitespace differences.
+/// When replacing, preserves the indentation level found in the buffer at each matching line.
+/// Returns None if no match found or if indentation is offset inconsistently across matched lines.
+pub fn replace_with_flexible_indent(old: &str, new: &str, buffer: &BufferSnapshot) -> Option<Diff> {
+    let (old_lines, old_min_indent) = lines_with_min_indent(old);
+    let (new_lines, new_min_indent) = lines_with_min_indent(new);
+    let min_indent = old_min_indent.min(new_min_indent);
+
+    let old_lines = drop_lines_prefix(&old_lines, min_indent);
+    let new_lines = drop_lines_prefix(&new_lines, min_indent);
+
+    let max_row = buffer.max_point().row;
+
+    '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
+            return None;
+        }
+
+        let start_point = Point::new(start_row, 0);
+        let end_point = Point::new(end_row, buffer.line_len(end_row));
+        let range = start_point.to_offset(buffer)..end_point.to_offset(buffer);
+
+        let window_text = buffer.text_for_range(range.clone());
+        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();
+
+            if line_trimmed != old_line.trim_start() {
+                continue 'windows;
+            }
+
+            if line_trimmed.is_empty() {
+                continue;
+            }
+
+            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_mismatch {
+                Some(common_mismatch) if common_mismatch != &line_mismatch => {
+                    continue 'windows;
+                }
+                Some(_) => (),
+                None => common_mismatch = Some(line_mismatch),
+            }
+        }
+
+        if let Some(common_mismatch) = &common_mismatch {
+            let line_ending = buffer.line_ending();
+            let replacement = new_lines
+                .iter()
+                .map(|new_line| {
+                    if new_line.trim().is_empty() {
+                        new_line.to_string()
+                    } else {
+                        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<_>>()
+                .join(line_ending.as_str());
+
+            let diff = Diff {
+                base_version: buffer.version().clone(),
+                line_ending,
+                edits: vec![(range, replacement.into())],
+            };
+
+            return Some(diff);
+        }
+    }
+
+    None
+}
+
+fn drop_lines_prefix<'a>(lines: &'a [&str], prefix_len: usize) -> Vec<&'a str> {
+    lines
+        .iter()
+        .map(|line| line.get(prefix_len..).unwrap_or(""))
+        .collect()
+}
+
+fn lines_with_min_indent(input: &str) -> (Vec<&str>, usize) {
+    let mut lines = Vec::new();
+    let mut min_indent: Option<usize> = None;
+
+    for line in input.lines() {
+        lines.push(line);
+        if !line.trim().is_empty() {
+            let indent = line.len() - line.trim_start().len();
+            min_indent = Some(min_indent.map_or(indent, |m| m.min(indent)));
+        }
+    }
+
+    (lines, min_indent.unwrap_or(0))
+}
+
+#[cfg(test)]
+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_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;
+                println!("x = {}", x);
+                let y = 10;
+            }
+        "#
+        .unindent();
+
+        let old = r#"
+            let x = 5;
+            println!("x = {}", x);
+        "#
+        .unindent();
+
+        let new = r#"
+            let x = 42;
+            println!("New value: {}", x);
+        "#
+        .unindent();
+
+        let expected = r#"
+            fn test() {
+                let x = 42;
+                println!("New value: {}", x);
+                let y = 10;
+            }
+        "#
+        .unindent();
+
+        assert_eq!(
+            test_replace_with_flexible_indent(cx, &whole, &old, &new),
+            Some(expected.to_string())
+        );
+    }
+
+    #[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#"
+            fn test() {
+                if condition {
+                    println!("{}", 43);
+                }
+            }
+        "#
+        .unindent();
+
+        let old = r#"
+            if condition {
+            println!("{}", 43);
+        "#
+        .unindent();
+
+        let new = r#"
+            if condition {
+            println!("{}", 42);
+        "#
+        .unindent();
+
+        assert_eq!(
+            test_replace_with_flexible_indent(cx, &whole, &old, &new),
+            None
+        );
+    }
+
+    #[gpui::test]
+    fn test_replace_with_empty_lines(cx: &mut TestAppContext) {
+        // Test with empty lines
+        let whole = r#"
+            fn test() {
+                let x = 5;
+
+                println!("x = {}", x);
+            }
+        "#
+        .unindent();
+
+        let old = r#"
+            let x = 5;
+
+            println!("x = {}", x);
+        "#
+        .unindent();
+
+        let new = r#"
+            let x = 10;
+
+            println!("New x: {}", x);
+        "#
+        .unindent();
+
+        let expected = r#"
+            fn test() {
+                let x = 10;
+
+                println!("New x: {}", x);
+            }
+        "#
+        .unindent();
+
+        assert_eq!(
+            test_replace_with_flexible_indent(cx, &whole, &old, &new),
+            Some(expected.to_string())
+        );
+    }
+
+    #[gpui::test]
+    fn test_replace_no_match(cx: &mut TestAppContext) {
+        let whole = r#"
+            fn test() {
+                let x = 5;
+            }
+        "#
+        .unindent();
+
+        let old = r#"
+            let y = 10;
+        "#
+        .unindent();
+
+        let new = r#"
+            let y = 20;
+        "#
+        .unindent();
+
+        assert_eq!(
+            test_replace_with_flexible_indent(cx, &whole, &old, &new),
+            None
+        );
+    }
+
+    #[gpui::test]
+    fn test_replace_whole_ends_before_matching_old(cx: &mut TestAppContext) {
+        let whole = r#"
+            fn test() {
+                let x = 5;
+        "#
+        .unindent();
+
+        let old = r#"
+            let x = 5;
+            println!("x = {}", x);
+        "#
+        .unindent();
+
+        let new = r#"
+            let x = 10;
+            println!("x = {}", x);
+        "#
+        .unindent();
+
+        // Should return None because whole doesn't fully contain the old text
+        assert_eq!(
+            test_replace_with_flexible_indent(cx, &whole, &old, &new),
+            None
+        );
+    }
+
+    #[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
+        assert_eq!(lines_with_min_indent(""), (vec![], 0));
+
+        // Single line without indentation
+        assert_eq!(lines_with_min_indent("hello"), (vec!["hello"], 0));
+
+        // Multiple lines with no indentation
+        assert_eq!(
+            lines_with_min_indent("line1\nline2\nline3"),
+            (vec!["line1", "line2", "line3"], 0)
+        );
+
+        // Multiple lines with consistent indentation
+        assert_eq!(
+            lines_with_min_indent("  line1\n  line2\n  line3"),
+            (vec!["  line1", "  line2", "  line3"], 2)
+        );
+
+        // Multiple lines with varying indentation
+        assert_eq!(
+            lines_with_min_indent("    line1\n  line2\n      line3"),
+            (vec!["    line1", "  line2", "      line3"], 2)
+        );
+
+        // Lines with mixed indentation and empty lines
+        assert_eq!(
+            lines_with_min_indent("    line1\n\n  line2"),
+            (vec!["    line1", "", "  line2"], 2)
+        );
+    }
+
+    #[gpui::test]
+    fn test_replace_with_missing_indent_uneven_match(cx: &mut TestAppContext) {
+        let whole = r#"
+            fn test() {
+                if true {
+                        let x = 5;
+                        println!("x = {}", x);
+                }
+            }
+        "#
+        .unindent();
+
+        let old = r#"
+            let x = 5;
+            println!("x = {}", x);
+        "#
+        .unindent();
+
+        let new = r#"
+            let x = 42;
+            println!("x = {}", x);
+        "#
+        .unindent();
+
+        let expected = r#"
+            fn test() {
+                if true {
+                        let x = 42;
+                        println!("x = {}", x);
+                }
+            }
+        "#
+        .unindent();
+
+        assert_eq!(
+            test_replace_with_flexible_indent(cx, &whole, &old, &new),
+            Some(expected.to_string())
+        );
+    }
+
+    #[gpui::test]
+    fn test_replace_big_example(cx: &mut TestAppContext) {
+        let whole = r#"
+            #[cfg(test)]
+            mod tests {
+                use super::*;
+
+                #[test]
+                fn test_is_valid_age() {
+                    assert!(is_valid_age(0));
+                    assert!(!is_valid_age(151));
+                }
+            }
+        "#
+        .unindent();
+
+        let old = r#"
+            #[test]
+            fn test_is_valid_age() {
+                assert!(is_valid_age(0));
+                assert!(!is_valid_age(151));
+            }
+        "#
+        .unindent();
+
+        let new = r#"
+            #[test]
+            fn test_is_valid_age() {
+                assert!(is_valid_age(0));
+                assert!(!is_valid_age(151));
+            }
+
+            #[test]
+            fn test_group_people_by_age() {
+                let people = vec![
+                    Person::new("Young One", 5, "young@example.com").unwrap(),
+                    Person::new("Teen One", 15, "teen@example.com").unwrap(),
+                    Person::new("Teen Two", 18, "teen2@example.com").unwrap(),
+                    Person::new("Adult One", 25, "adult@example.com").unwrap(),
+                ];
+
+                let groups = group_people_by_age(&people);
+
+                assert_eq!(groups.get(&0).unwrap().len(), 1);  // One person in 0-9
+                assert_eq!(groups.get(&10).unwrap().len(), 2); // Two people in 10-19
+                assert_eq!(groups.get(&20).unwrap().len(), 1); // One person in 20-29
+            }
+        "#
+        .unindent();
+        let expected = r#"
+            #[cfg(test)]
+            mod tests {
+                use super::*;
+
+                #[test]
+                fn test_is_valid_age() {
+                    assert!(is_valid_age(0));
+                    assert!(!is_valid_age(151));
+                }
+
+                #[test]
+                fn test_group_people_by_age() {
+                    let people = vec![
+                        Person::new("Young One", 5, "young@example.com").unwrap(),
+                        Person::new("Teen One", 15, "teen@example.com").unwrap(),
+                        Person::new("Teen Two", 18, "teen2@example.com").unwrap(),
+                        Person::new("Adult One", 25, "adult@example.com").unwrap(),
+                    ];
+
+                    let groups = group_people_by_age(&people);
+
+                    assert_eq!(groups.get(&0).unwrap().len(), 1);  // One person in 0-9
+                    assert_eq!(groups.get(&10).unwrap().len(), 2); // Two people in 10-19
+                    assert_eq!(groups.get(&20).unwrap().len(), 1); // One person in 20-29
+                }
+            }
+        "#
+        .unindent();
+        assert_eq!(
+            test_replace_with_flexible_indent(cx, &whole, &old, &new),
+            Some(expected.to_string())
+        );
+    }
+
+    #[test]
+    fn test_drop_lines_prefix() {
+        // Empty array
+        assert_eq!(drop_lines_prefix(&[], 2), Vec::<&str>::new());
+
+        // Zero prefix length
+        assert_eq!(
+            drop_lines_prefix(&["line1", "line2"], 0),
+            vec!["line1", "line2"]
+        );
+
+        // Normal prefix drop
+        assert_eq!(
+            drop_lines_prefix(&["  line1", "  line2"], 2),
+            vec!["line1", "line2"]
+        );
+
+        // Prefix longer than some lines
+        assert_eq!(drop_lines_prefix(&["  line1", "a"], 2), vec!["line1", ""]);
+
+        // Prefix longer than all lines
+        assert_eq!(drop_lines_prefix(&["a", "b"], 5), vec!["", ""]);
+
+        // Mixed length lines
+        assert_eq!(
+            drop_lines_prefix(&["    line1", "  line2", "      line3"], 2),
+            vec!["  line1", "line2", "    line3"]
+        );
+    }
+
+    #[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,
+        old: &str,
+        new: &str,
+    ) -> Option<String> {
+        // Create a local buffer with the test content
+        let buffer = cx.new(|cx| language::Buffer::local(whole, cx));
+
+        // Get the buffer snapshot
+        let buffer_snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot());
+
+        // Call replace_flexible and transform the result
+        replace_with_flexible_indent(old, new, &buffer_snapshot).map(|diff| {
+            buffer.update(cx, |buffer, cx| {
+                let _ = buffer.apply_diff(diff, cx);
+                buffer.text()
+            })
+        })
+    }
+}
--- a/crates/assistant_tools/src/streaming_edit_file_tool.rs
+++ b/crates/assistant_tools/src/streaming_edit_file_tool.rs
@@ -0,0 +1,355 @@
+use crate::{
+    Templates,
+    edit_agent::{EditAgent, EditAgentOutputEvent},
+    edit_file_tool::EditFileToolCard,
+    schema::json_schema_for,
+};
+use anyhow::{Context as _, Result, anyhow};
+use assistant_tool::{ActionLog, AnyToolCard, Tool, ToolResult};
+use futures::StreamExt;
+use gpui::{AnyWindowHandle, App, AppContext, AsyncApp, Entity, Task};
+use indoc::formatdoc;
+use language_model::{
+    LanguageModelRegistry, LanguageModelRequestMessage, LanguageModelToolSchemaFormat,
+};
+use project::Project;
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
+use std::{path::PathBuf, sync::Arc};
+use ui::prelude::*;
+use util::ResultExt;
+
+pub struct StreamingEditFileTool;
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+pub struct StreamingEditFileToolInput {
+    /// A one-line, user-friendly markdown description of the edit. This will be
+    /// shown in the UI and also passed to another model to perform the edit.
+    ///
+    /// Be terse, but also descriptive in what you want to achieve with this
+    /// edit. Avoid generic instructions.
+    ///
+    /// NEVER mention the file path in this description.
+    ///
+    /// <example>Fix API endpoint URLs</example>
+    /// <example>Update copyright year in `page_footer`</example>
+    ///
+    /// Make sure to include this field before all the others in the input object
+    /// so that we can display it immediately.
+    pub display_description: String,
+
+    /// The full path of the file to create or 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,
+
+    /// If true, this tool will recreate the file from scratch.
+    /// If false, this tool will produce granular edits to an existing file.
+    ///
+    /// When a file already exists or you just created it, always prefer editing
+    /// it as opposed to recreating it from scratch.
+    pub create_or_overwrite: bool,
+}
+
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+struct PartialInput {
+    #[serde(default)]
+    path: String,
+    #[serde(default)]
+    display_description: String,
+}
+
+const DEFAULT_UI_TEXT: &str = "Editing file";
+
+impl Tool for StreamingEditFileTool {
+    fn name(&self) -> String {
+        "edit_file".into()
+    }
+
+    fn needs_confirmation(&self, _: &serde_json::Value, _: &App) -> bool {
+        false
+    }
+
+    fn description(&self) -> String {
+        include_str!("streaming_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::<StreamingEditFileToolInput>(format)
+    }
+
+    fn ui_text(&self, input: &serde_json::Value) -> String {
+        match serde_json::from_value::<StreamingEditFileToolInput>(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>,
+        window: Option<AnyWindowHandle>,
+        cx: &mut App,
+    ) -> ToolResult {
+        let input = match serde_json::from_value::<StreamingEditFileToolInput>(input) {
+            Ok(input) => input,
+            Err(err) => return Task::ready(Err(anyhow!(err))).into(),
+        };
+
+        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.display()
+            )))
+            .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 card = window.and_then(|window| {
+            window
+                .update(cx, |_, window, cx| {
+                    cx.new(|cx| {
+                        EditFileToolCard::new(input.path.clone(), project.clone(), window, cx)
+                    })
+                })
+                .ok()
+        });
+
+        let card_clone = card.clone();
+        let messages = messages.to_vec();
+        let task = cx.spawn(async move |cx: &mut AsyncApp| {
+            if !input.create_or_overwrite && !exists.await? {
+                return Err(anyhow!("{} not found", input.path.display()));
+            }
+
+            let model = cx
+                .update(|cx| LanguageModelRegistry::read_global(cx).default_model())?
+                .context("default model not set")?
+                .model;
+            let edit_agent = EditAgent::new(model, project.clone(), action_log, Templates::new());
+
+            let buffer = project
+                .update(cx, |project, cx| {
+                    project.open_buffer(project_path.clone(), cx)
+                })?
+                .await?;
+
+            let old_snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot())?;
+            let old_text = cx
+                .background_spawn({
+                    let old_snapshot = old_snapshot.clone();
+                    async move { old_snapshot.text() }
+                })
+                .await;
+
+            let (output, mut events) = if input.create_or_overwrite {
+                edit_agent.overwrite(
+                    buffer.clone(),
+                    input.display_description.clone(),
+                    messages,
+                    cx,
+                )
+            } else {
+                edit_agent.edit(
+                    buffer.clone(),
+                    input.display_description.clone(),
+                    messages,
+                    cx,
+                )
+            };
+
+            let mut hallucinated_old_text = false;
+            while let Some(event) = events.next().await {
+                match event {
+                    EditAgentOutputEvent::Edited => {
+                        if let Some(card) = card_clone.as_ref() {
+                            let new_snapshot =
+                                buffer.read_with(cx, |buffer, _cx| buffer.snapshot())?;
+                            let new_text = cx
+                                .background_spawn({
+                                    let new_snapshot = new_snapshot.clone();
+                                    async move { new_snapshot.text() }
+                                })
+                                .await;
+                            card.update(cx, |card, cx| {
+                                card.set_diff(
+                                    project_path.path.clone(),
+                                    old_text.clone(),
+                                    new_text,
+                                    cx,
+                                );
+                            })
+                            .log_err();
+                        }
+                    }
+                    EditAgentOutputEvent::OldTextNotFound(_) => hallucinated_old_text = true,
+                }
+            }
+            output.await?;
+
+            project
+                .update(cx, |project, cx| project.save_buffer(buffer.clone(), cx))?
+                .await?;
+
+            let new_snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot())?;
+            let new_text = cx.background_spawn({
+                let new_snapshot = new_snapshot.clone();
+                async move { new_snapshot.text() }
+            });
+            let diff = cx.background_spawn(async move {
+                language::unified_diff(&old_snapshot.text(), &new_snapshot.text())
+            });
+            let (new_text, diff) = futures::join!(new_text, diff);
+
+            if let Some(card) = card_clone {
+                card.update(cx, |card, cx| {
+                    card.set_diff(project_path.path.clone(), old_text, new_text, cx);
+                })
+                .log_err();
+            }
+
+            let input_path = input.path.display();
+            if diff.is_empty() {
+                if hallucinated_old_text {
+                    Err(anyhow!(formatdoc! {"
+                        Some edits were produced but none of them could be applied.
+                        Read the relevant sections of {input_path} again so that
+                        I can perform the requested edits.
+                    "}))
+                } else {
+                    Ok("No edits were made.".to_string())
+                }
+            } else {
+                Ok(format!("Edited {}:\n\n```diff\n{}\n```", input_path, diff))
+            }
+        });
+
+        ToolResult {
+            output: task,
+            card: card.map(AnyToolCard::from),
+        }
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use serde_json::json;
+
+    #[test]
+    fn still_streaming_ui_text_with_path() {
+        let input = json!({
+            "path": "src/main.rs",
+            "display_description": "",
+            "old_string": "old code",
+            "new_string": "new code"
+        });
+
+        assert_eq!(
+            StreamingEditFileTool.still_streaming_ui_text(&input),
+            "src/main.rs"
+        );
+    }
+
+    #[test]
+    fn still_streaming_ui_text_with_description() {
+        let input = json!({
+            "path": "",
+            "display_description": "Fix error handling",
+            "old_string": "old code",
+            "new_string": "new code"
+        });
+
+        assert_eq!(
+            StreamingEditFileTool.still_streaming_ui_text(&input),
+            "Fix error handling",
+        );
+    }
+
+    #[test]
+    fn still_streaming_ui_text_with_path_and_description() {
+        let input = json!({
+            "path": "src/main.rs",
+            "display_description": "Fix error handling",
+            "old_string": "old code",
+            "new_string": "new code"
+        });
+
+        assert_eq!(
+            StreamingEditFileTool.still_streaming_ui_text(&input),
+            "Fix error handling",
+        );
+    }
+
+    #[test]
+    fn still_streaming_ui_text_no_path_or_description() {
+        let input = json!({
+            "path": "",
+            "display_description": "",
+            "old_string": "old code",
+            "new_string": "new code"
+        });
+
+        assert_eq!(
+            StreamingEditFileTool.still_streaming_ui_text(&input),
+            DEFAULT_UI_TEXT,
+        );
+    }
+
+    #[test]
+    fn still_streaming_ui_text_with_null() {
+        let input = serde_json::Value::Null;
+
+        assert_eq!(
+            StreamingEditFileTool.still_streaming_ui_text(&input),
+            DEFAULT_UI_TEXT,
+        );
+    }
+}
--- a/crates/assistant_tools/src/streaming_edit_file_tool/description.md
+++ b/crates/assistant_tools/src/streaming_edit_file_tool/description.md
@@ -0,0 +1,8 @@
+This is a tool for creating a new file or editing an existing file. For moving or renaming files, you should generally use the `terminal` tool with the 'mv' command instead.
+
+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
--- a/crates/assistant_tools/src/templates/edit_file_prompt.hbs
+++ b/crates/assistant_tools/src/templates/edit_file_prompt.hbs
@@ -1,4 +1,6 @@
-You MUST respond with a series of edits to a file, using the following format:
+You are an expert text editor and your task is to produce a series of edits to a file given a description of the changes you need to make.
+
+You MUST respond with a series of edits to that one file in the following format:

 ```
 <edits>
@@ -49,5 +51,3 @@ Rules for editing:
 <edit_description>
 {{edit_description}}
 </edit_description>
-
-Tool calls have been disabled. You MUST start your response with <edits>.
--- a/crates/assistant_tools/src/terminal_tool.rs
+++ b/crates/assistant_tools/src/terminal_tool.rs
@@ -4,7 +4,7 @@ use assistant_tool::{ActionLog, Tool, ToolCard, ToolResult, ToolUseStatus};
 use futures::{FutureExt as _, future::Shared};
 use gpui::{AnyWindowHandle, App, AppContext, Empty, Entity, EntityId, Task, WeakEntity, Window};
 use language::LineEnding;
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use portable_pty::{CommandBuilder, PtySize, native_pty_system};
 use project::{Project, terminals::TerminalKind};
 use schemars::JsonSchema;
@@ -107,10 +107,9 @@ impl Tool for TerminalTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -179,7 +178,7 @@ impl Tool for TerminalTool {
                let exit_status = child.wait()?;
                let (processed_content, _) =
                    process_content(content, &input.command, Some(exit_status));
-                Ok(processed_content.into())
+                Ok(processed_content)
            });
            return ToolResult {
                output: task,
@@ -267,7 +266,7 @@ impl Tool for TerminalTool {
                    card.elapsed_time = Some(card.start_instant.elapsed());
                });

-                Ok(processed_content.into())
+                Ok(processed_content)
            }
        });

@@ -599,7 +598,6 @@ mod tests {
    use editor::EditorSettings;
    use fs::RealFs;
    use gpui::{BackgroundExecutor, TestAppContext};
-    use language_model::fake_provider::FakeLanguageModel;
    use pretty_assertions::assert_eq;
    use serde_json::json;
    use settings::{Settings, SettingsStore};
@@ -641,7 +639,6 @@ mod tests {
        let project: Entity<Project> =
            Project::test(fs, [tree.path().join("project").as_path()], cx).await;
        let action_log = cx.update(|cx| cx.new(|_| ActionLog::new(project.clone())));
-        let model = Arc::new(FakeLanguageModel::default());

        let input = TerminalToolInput {
            command: "cat".to_owned(),
@@ -656,16 +653,15 @@ mod tests {
            TerminalTool::run(
                Arc::new(TerminalTool::new(cx)),
                serde_json::to_value(input).unwrap(),
-                Arc::default(),
+                &[],
                project.clone(),
                action_log.clone(),
-                model,
                None,
                cx,
            )
        });

-        let output = result.output.await.log_err().map(|output| output.content);
+        let output = result.output.await.log_err();
        assert_eq!(output, Some("Command executed successfully.".into()));
    }

@@ -685,25 +681,19 @@ mod tests {
        let project: Entity<Project> =
            Project::test(fs, [tree.path().join("project").as_path()], cx).await;
        let action_log = cx.update(|cx| cx.new(|_| ActionLog::new(project.clone())));
-        let model = Arc::new(FakeLanguageModel::default());

        let check = |input, expected, cx: &mut App| {
            let headless_result = TerminalTool::run(
                Arc::new(TerminalTool::new(cx)),
                serde_json::to_value(input).unwrap(),
-                Arc::default(),
+                &[],
                project.clone(),
                action_log.clone(),
-                model.clone(),
                None,
                cx,
            );
            cx.spawn(async move |_| {
-                let output = headless_result
-                    .output
-                    .await
-                    .log_err()
-                    .map(|output| output.content);
+                let output = headless_result.output.await.log_err();
                assert_eq!(output, expected);
            })
        };
--- a/crates/assistant_tools/src/thinking_tool.rs
+++ b/crates/assistant_tools/src/thinking_tool.rs
@@ -4,7 +4,7 @@ use crate::schema::json_schema_for;
 use anyhow::{Result, anyhow};
 use assistant_tool::{ActionLog, Tool, ToolResult};
 use gpui::{AnyWindowHandle, App, Entity, Task};
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -47,16 +47,15 @@ impl Tool for ThinkingTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        _project: Entity<Project>,
        _action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        _cx: &mut App,
    ) -> ToolResult {
        // This tool just "thinks out loud" and doesn't perform any actions.
        Task::ready(match serde_json::from_value::<ThinkingToolInput>(input) {
-            Ok(_input) => Ok("Finished thinking.".to_string().into()),
+            Ok(_input) => Ok("Finished thinking.".to_string()),
            Err(err) => Err(anyhow!(err)),
        })
        .into()
--- a/crates/assistant_tools/src/web_search_tool.rs
+++ b/crates/assistant_tools/src/web_search_tool.rs
@@ -8,7 +8,7 @@ use futures::{Future, FutureExt, TryFutureExt};
 use gpui::{
    AnyWindowHandle, App, AppContext, Context, Entity, IntoElement, Task, WeakEntity, Window,
 };
-use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -53,10 +53,9 @@ impl Tool for WebSearchTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _request: Arc<LanguageModelRequest>,
+        _messages: &[LanguageModelRequestMessage],
        _project: Entity<Project>,
        _action_log: Entity<ActionLog>,
-        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -73,9 +72,7 @@ impl Tool for WebSearchTool {
            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")
-                    .map(Into::into)
+                serde_json::to_string(&response).context("Failed to serialize search results")
            }
        });

--- a/crates/bedrock/src/bedrock.rs
+++ b/crates/bedrock/src/bedrock.rs
@@ -7,10 +7,9 @@ use anyhow::{Error, Result, anyhow};
 use aws_sdk_bedrockruntime as bedrock;
 pub use aws_sdk_bedrockruntime as bedrock_client;
 pub use aws_sdk_bedrockruntime::types::{
-    AnyToolChoice as BedrockAnyToolChoice, AutoToolChoice as BedrockAutoToolChoice,
-    ContentBlock as BedrockInnerContent, Tool as BedrockTool, ToolChoice as BedrockToolChoice,
-    ToolConfiguration as BedrockToolConfig, ToolInputSchema as BedrockToolInputSchema,
-    ToolSpecification as BedrockToolSpec,
+    AutoToolChoice as BedrockAutoToolChoice, ContentBlock as BedrockInnerContent,
+    Tool as BedrockTool, ToolChoice as BedrockToolChoice, ToolConfiguration as BedrockToolConfig,
+    ToolInputSchema as BedrockToolInputSchema, ToolSpecification as BedrockToolSpec,
 };
 pub use aws_smithy_types::Blob as BedrockBlob;
 use aws_smithy_types::{Document, Number as AwsNumber};
--- a/crates/client/src/client.rs
+++ b/crates/client/src/client.rs
@@ -47,6 +47,7 @@ use std::{
 };
 use telemetry::Telemetry;
 use thiserror::Error;
+use tokio::net::TcpStream;
 use url::Url;
 use util::{ResultExt, TryFutureExt};

@@ -1127,7 +1128,10 @@ impl Client {
            let stream = {
                let handle = cx.update(|cx| gpui_tokio::Tokio::handle(cx)).ok().unwrap();
                let _guard = handle.enter();
-                connect_socks_proxy_stream(proxy.as_ref(), rpc_host).await?
+                match proxy {
+                    Some(proxy) => connect_socks_proxy_stream(&proxy, rpc_host).await?,
+                    None => Box::new(TcpStream::connect(rpc_host).await?),
+                }
            };

            log::info!("connected to rpc endpoint {}", rpc_url);
--- a/crates/client/src/socks.rs
+++ b/crates/client/src/socks.rs
@@ -1,61 +1,98 @@
 //! socks proxy
-use anyhow::{Result, anyhow};
+use anyhow::{Context, Result, anyhow};
 use http_client::Url;
 use tokio_socks::tcp::{Socks4Stream, Socks5Stream};

-pub(crate) async fn connect_socks_proxy_stream(
-    proxy: Option<&Url>,
-    rpc_host: (&str, u16),
-) -> Result<Box<dyn AsyncReadWrite>> {
-    let stream = match parse_socks_proxy(proxy) {
-        Some((socks_proxy, SocksVersion::V4)) => {
-            let stream = Socks4Stream::connect_with_socket(
-                tokio::net::TcpStream::connect(socks_proxy).await?,
-                rpc_host,
-            )
-            .await
-            .map_err(|err| anyhow!("error connecting to socks {}", err))?;
-            Box::new(stream) as Box<dyn AsyncReadWrite>
-        }
-        Some((socks_proxy, SocksVersion::V5)) => Box::new(
-            Socks5Stream::connect_with_socket(
-                tokio::net::TcpStream::connect(socks_proxy).await?,
-                rpc_host,
-            )
-            .await
-            .map_err(|err| anyhow!("error connecting to socks {}", err))?,
-        ) as Box<dyn AsyncReadWrite>,
-        None => {
-            Box::new(tokio::net::TcpStream::connect(rpc_host).await?) as Box<dyn AsyncReadWrite>
-        }
-    };
-    Ok(stream)
+/// Identification to a Socks V4 Proxy
+struct Socks4Identification<'a> {
+    user_id: &'a str,
 }

-fn parse_socks_proxy(proxy: Option<&Url>) -> Option<((String, u16), SocksVersion)> {
-    let proxy_url = proxy?;
-    let scheme = proxy_url.scheme();
+/// Authorization to a Socks V5 Proxy
+struct Socks5Authorization<'a> {
+    username: &'a str,
+    password: &'a str,
+}
+
+/// Socks Proxy Protocol Version
+///
+/// V4 allows idenfication using a user_id
+/// V5 allows authorization using a username and password
+enum SocksVersion<'a> {
+    V4(Option<Socks4Identification<'a>>),
+    V5(Option<Socks5Authorization<'a>>),
+}
+
+pub(crate) async fn connect_socks_proxy_stream(
+    proxy: &Url,
+    rpc_host: (&str, u16),
+) -> Result<Box<dyn AsyncReadWrite>> {
+    let Some((socks_proxy, version)) = parse_socks_proxy(proxy) else {
+        // If parsing the proxy URL fails, we must avoid falling back to an insecure connection.
+        // SOCKS proxies are often used in contexts where security and privacy are critical,
+        // so any fallback could expose users to significant risks.
+        return Err(anyhow!("Parsing proxy url failed"));
+    };
+
+    // Connect to proxy and wrap protocol later
+    let stream = tokio::net::TcpStream::connect(socks_proxy)
+        .await
+        .context("Failed to connect to socks proxy")?;
+
+    let socks: Box<dyn AsyncReadWrite> = match version {
+        SocksVersion::V4(None) => {
+            let socks = Socks4Stream::connect_with_socket(stream, rpc_host)
+                .await
+                .context("error connecting to socks")?;
+            Box::new(socks)
+        }
+        SocksVersion::V4(Some(Socks4Identification { user_id })) => {
+            let socks = Socks4Stream::connect_with_userid_and_socket(stream, rpc_host, user_id)
+                .await
+                .context("error connecting to socks")?;
+            Box::new(socks)
+        }
+        SocksVersion::V5(None) => {
+            let socks = Socks5Stream::connect_with_socket(stream, rpc_host)
+                .await
+                .context("error connecting to socks")?;
+            Box::new(socks)
+        }
+        SocksVersion::V5(Some(Socks5Authorization { username, password })) => {
+            let socks = Socks5Stream::connect_with_password_and_socket(
+                stream, rpc_host, username, password,
+            )
+            .await
+            .context("error connecting to socks")?;
+            Box::new(socks)
+        }
+    };
+
+    Ok(socks)
+}
+
+fn parse_socks_proxy(proxy: &Url) -> Option<((String, u16), SocksVersion<'_>)> {
+    let scheme = proxy.scheme();
    let socks_version = if scheme.starts_with("socks4") {
-        // socks4
-        SocksVersion::V4
+        let identification = match proxy.username() {
+            "" => None,
+            username => Some(Socks4Identification { user_id: username }),
+        };
+        SocksVersion::V4(identification)
    } else if scheme.starts_with("socks") {
-        // socks, socks5
-        SocksVersion::V5
+        let authorization = proxy.password().map(|password| Socks5Authorization {
+            username: proxy.username(),
+            password,
+        });
+        SocksVersion::V5(authorization)
    } else {
        return None;
    };
-    if let Some((host, port)) = proxy_url.host().zip(proxy_url.port_or_known_default()) {
-        Some(((host.to_string(), port), socks_version))
-    } else {
-        None
-    }
-}

-// private helper structs and traits
+    let host = proxy.host()?.to_string();
+    let port = proxy.port_or_known_default()?;

-enum SocksVersion {
-    V4,
-    V5,
+    Some(((host, port), socks_version))
 }

 pub(crate) trait AsyncReadWrite:
@@ -66,3 +103,74 @@ impl<T: tokio::io::AsyncRead + tokio::io::AsyncWrite + Unpin + Send + 'static> A
    for T
 {
 }
+
+#[cfg(test)]
+mod tests {
+    use url::Url;
+
+    use super::*;
+
+    #[test]
+    fn parse_socks4() {
+        let proxy = Url::parse("socks4://proxy.example.com:1080").unwrap();
+
+        let ((host, port), version) = parse_socks_proxy(&proxy).unwrap();
+        assert_eq!(host, "proxy.example.com");
+        assert_eq!(port, 1080);
+        assert!(matches!(version, SocksVersion::V4(None)))
+    }
+
+    #[test]
+    fn parse_socks4_with_identification() {
+        let proxy = Url::parse("socks4://userid@proxy.example.com:1080").unwrap();
+
+        let ((host, port), version) = parse_socks_proxy(&proxy).unwrap();
+        assert_eq!(host, "proxy.example.com");
+        assert_eq!(port, 1080);
+        assert!(matches!(
+            version,
+            SocksVersion::V4(Some(Socks4Identification { user_id: "userid" }))
+        ))
+    }
+
+    #[test]
+    fn parse_socks5() {
+        let proxy = Url::parse("socks5://proxy.example.com:1080").unwrap();
+
+        let ((host, port), version) = parse_socks_proxy(&proxy).unwrap();
+        assert_eq!(host, "proxy.example.com");
+        assert_eq!(port, 1080);
+        assert!(matches!(version, SocksVersion::V5(None)))
+    }
+
+    #[test]
+    fn parse_socks5_with_authorization() {
+        let proxy = Url::parse("socks5://username:password@proxy.example.com:1080").unwrap();
+
+        let ((host, port), version) = parse_socks_proxy(&proxy).unwrap();
+        assert_eq!(host, "proxy.example.com");
+        assert_eq!(port, 1080);
+        assert!(matches!(
+            version,
+            SocksVersion::V5(Some(Socks5Authorization {
+                username: "username",
+                password: "password"
+            }))
+        ))
+    }
+
+    /// If parsing the proxy URL fails, we must avoid falling back to an insecure connection.
+    /// SOCKS proxies are often used in contexts where security and privacy are critical,
+    /// so any fallback could expose users to significant risks.
+    #[tokio::test]
+    async fn fails_on_bad_proxy() {
+        // Should fail connecting because http is not a valid Socks proxy scheme
+        let proxy = Url::parse("http://localhost:2313").unwrap();
+
+        let result = connect_socks_proxy_stream(&proxy, ("test", 1080)).await;
+        match result {
+            Err(e) => assert_eq!(e.to_string(), "Parsing proxy url failed"),
+            Ok(_) => panic!("Connecting on bad proxy should fail"),
+        };
+    }
+}
--- a/crates/client/src/user.rs
+++ b/crates/client/src/user.rs
@@ -11,7 +11,7 @@ use postage::{sink::Sink, watch};
 use rpc::proto::{RequestMessage, UsersResponse};
 use std::sync::{Arc, Weak};
 use text::ReplicaId;
-use util::{TryFutureExt as _, maybe};
+use util::TryFutureExt as _;

 pub type UserId = u64;

@@ -101,7 +101,6 @@ pub struct UserStore {
    participant_indices: HashMap<u64, ParticipantIndex>,
    update_contacts_tx: mpsc::UnboundedSender<UpdateContacts>,
    current_plan: Option<proto::Plan>,
-    subscription_period: Option<(DateTime<Utc>, DateTime<Utc>)>,
    trial_started_at: Option<DateTime<Utc>>,
    model_request_usage_amount: Option<u32>,
    model_request_usage_limit: Option<proto::UsageLimit>,
@@ -167,7 +166,6 @@ impl UserStore {
            by_github_login: Default::default(),
            current_user: current_user_rx,
            current_plan: None,
-            subscription_period: None,
            trial_started_at: None,
            model_request_usage_amount: None,
            model_request_usage_limit: None,
@@ -335,13 +333,6 @@ impl UserStore {
    ) -> Result<()> {
        this.update(&mut cx, |this, cx| {
            this.current_plan = Some(message.payload.plan());
-            this.subscription_period = maybe!({
-                let period = message.payload.subscription_period?;
-                let started_at = DateTime::from_timestamp(period.started_at as i64, 0)?;
-                let ended_at = DateTime::from_timestamp(period.ended_at as i64, 0)?;
-
-                Some((started_at, ended_at))
-            });
            this.trial_started_at = message
                .payload
                .trial_started_at
@@ -722,10 +713,6 @@ impl UserStore {
        self.current_plan
    }

-    pub fn subscription_period(&self) -> Option<(DateTime<Utc>, DateTime<Utc>)> {
-        self.subscription_period
-    }
-
    pub fn trial_started_at(&self) -> Option<DateTime<Utc>> {
        self.trial_started_at
    }
--- a/crates/collab/Cargo.toml
+++ b/crates/collab/Cargo.toml
@@ -76,8 +76,8 @@ workspace-hack.workspace = true
 zed_llm_client.workspace = true

 [dev-dependencies]
+assistant = { workspace = true, features = ["test-support"] }
 assistant_context_editor.workspace = true
-assistant_settings.workspace = true
 assistant_slash_command.workspace = true
 assistant_tool.workspace = true
 async-trait.workspace = true
--- a/crates/collab/migrations_llm/20250503162708_add_v2_subscription_usage_and_meter_tables.sql
+++ b/crates/collab/migrations_llm/20250503162708_add_v2_subscription_usage_and_meter_tables.sql
@@ -0,0 +1,23 @@
+create table subscription_usages_v2 (
+    id uuid primary key,
+    user_id integer not null,
+    period_start_at timestamp without time zone not null,
+    period_end_at timestamp without time zone not null,
+    plan text not null,
+    model_requests int not null default 0,
+    edit_predictions int not null default 0
+);
+
+create unique index uix_subscription_usages_v2_on_user_id_start_at_end_at on subscription_usages_v2 (user_id, period_start_at, period_end_at);
+
+create index ix_subscription_usages_v2_on_plan on subscription_usages_v2 (plan);
+
+create table subscription_usage_meters_v2 (
+    id uuid primary key,
+    subscription_usage_id uuid not null references subscription_usages_v2 (id) on delete cascade,
+    model_id integer not null references models (id) on delete cascade,
+    mode text not null,
+    requests integer not null default 0
+);
+
+create unique index uix_subscription_usage_meters_v2_on_usage_model_mode on subscription_usage_meters_v2 (subscription_usage_id, model_id, mode);
--- a/crates/collab/migrations_llm/20250504132836_drop_legacy_subscription_usage_and_meter_tables.sql
+++ b/crates/collab/migrations_llm/20250504132836_drop_legacy_subscription_usage_and_meter_tables.sql
@@ -0,0 +1,2 @@
+drop table subscription_usage_meters;
+drop table subscription_usages;
--- a/crates/collab/src/api/billing.rs
+++ b/crates/collab/src/api/billing.rs
@@ -27,7 +27,9 @@ use crate::db::billing_subscription::{
    StripeCancellationReason, StripeSubscriptionStatus, SubscriptionKind,
 };
 use crate::llm::db::subscription_usage_meter::CompletionMode;
-use crate::llm::{DEFAULT_MAX_MONTHLY_SPEND, FREE_TIER_MONTHLY_SPENDING_LIMIT};
+use crate::llm::{
+    AGENT_EXTENDED_TRIAL_FEATURE_FLAG, DEFAULT_MAX_MONTHLY_SPEND, FREE_TIER_MONTHLY_SPENDING_LIMIT,
+};
 use crate::rpc::{ResultExt as _, Server};
 use crate::{AppState, Cents, Error, Result};
 use crate::{db::UserId, llm::db::LlmDatabase};
@@ -54,6 +56,10 @@ pub fn router() -> Router {
            "/billing/subscriptions/manage",
            post(manage_billing_subscription),
        )
+        .route(
+            "/billing/subscriptions/migrate",
+            post(migrate_to_new_billing),
+        )
        .route("/billing/monthly_spend", get(get_monthly_spend))
        .route("/billing/usage", get(get_current_usage))
 }
@@ -256,6 +262,7 @@ async fn list_billing_subscriptions(
 enum ProductCode {
    ZedPro,
    ZedProTrial,
+    ZedFree,
 }

 #[derive(Debug, Deserialize)]
@@ -362,12 +369,7 @@ async fn create_billing_subscription(
    let checkout_session_url = match body.product {
        Some(ProductCode::ZedPro) => {
            stripe_billing
-                .checkout_with_price(
-                    app.config.zed_pro_price_id()?,
-                    customer_id,
-                    &user.github_login,
-                    &success_url,
-                )
+                .checkout_with_zed_pro(customer_id, &user.github_login, &success_url)
                .await?
        }
        Some(ProductCode::ZedProTrial) => {
@@ -384,7 +386,6 @@ async fn create_billing_subscription(

            stripe_billing
                .checkout_with_zed_pro_trial(
-                    app.config.zed_pro_price_id()?,
                    customer_id,
                    &user.github_login,
                    feature_flags,
@@ -392,6 +393,11 @@ async fn create_billing_subscription(
                )
                .await?
        }
+        Some(ProductCode::ZedFree) => {
+            stripe_billing
+                .checkout_with_zed_free(customer_id, &user.github_login, &success_url)
+                .await?
+        }
        None => {
            let default_model = llm_db.model(
                zed_llm_client::LanguageModelProvider::Anthropic,
@@ -458,6 +464,14 @@ async fn manage_billing_subscription(
        ))?
    };

+    let Some(stripe_billing) = app.stripe_billing.clone() else {
+        log::error!("failed to retrieve Stripe billing object");
+        Err(Error::http(
+            StatusCode::NOT_IMPLEMENTED,
+            "not supported".into(),
+        ))?
+    };
+
    let customer = app
        .db
        .get_billing_customer_by_user_id(user.id)
@@ -508,8 +522,8 @@ async fn manage_billing_subscription(
    let flow = match body.intent {
        ManageSubscriptionIntent::ManageSubscription => None,
        ManageSubscriptionIntent::UpgradeToPro => {
-            let zed_pro_price_id = app.config.zed_pro_price_id()?;
-            let zed_free_price_id = app.config.zed_free_price_id()?;
+            let zed_pro_price_id = stripe_billing.zed_pro_price_id().await?;
+            let zed_free_price_id = stripe_billing.zed_free_price_id().await?;

            let stripe_subscription =
                Subscription::retrieve(&stripe_client, &subscription_id, &[]).await?;
@@ -602,6 +616,86 @@ async fn manage_billing_subscription(
    }))
 }

+#[derive(Debug, Deserialize)]
+struct MigrateToNewBillingBody {
+    github_user_id: i32,
+}
+
+#[derive(Debug, Serialize)]
+struct MigrateToNewBillingResponse {
+    /// The ID of the subscription that was canceled.
+    canceled_subscription_id: Option<String>,
+}
+
+async fn migrate_to_new_billing(
+    Extension(app): Extension<Arc<AppState>>,
+    extract::Json(body): extract::Json<MigrateToNewBillingBody>,
+) -> Result<Json<MigrateToNewBillingResponse>> {
+    let Some(stripe_client) = app.stripe_client.clone() else {
+        log::error!("failed to retrieve Stripe client");
+        Err(Error::http(
+            StatusCode::NOT_IMPLEMENTED,
+            "not supported".into(),
+        ))?
+    };
+
+    let user = app
+        .db
+        .get_user_by_github_user_id(body.github_user_id)
+        .await?
+        .ok_or_else(|| anyhow!("user not found"))?;
+
+    let old_billing_subscriptions_by_user = app
+        .db
+        .get_active_billing_subscriptions(HashSet::from_iter([user.id]))
+        .await?;
+
+    let canceled_subscription_id = if let Some((_billing_customer, billing_subscription)) =
+        old_billing_subscriptions_by_user.get(&user.id)
+    {
+        let stripe_subscription_id = billing_subscription
+            .stripe_subscription_id
+            .parse::<stripe::SubscriptionId>()
+            .context("failed to parse Stripe subscription ID from database")?;
+
+        Subscription::cancel(
+            &stripe_client,
+            &stripe_subscription_id,
+            stripe::CancelSubscription {
+                invoice_now: Some(true),
+                ..Default::default()
+            },
+        )
+        .await?;
+
+        Some(stripe_subscription_id)
+    } else {
+        None
+    };
+
+    let all_feature_flags = app.db.list_feature_flags().await?;
+    let user_feature_flags = app.db.get_user_flags(user.id).await?;
+
+    for feature_flag in ["new-billing", "assistant2"] {
+        let already_in_feature_flag = user_feature_flags.iter().any(|flag| flag == feature_flag);
+        if already_in_feature_flag {
+            continue;
+        }
+
+        let feature_flag = all_feature_flags
+            .iter()
+            .find(|flag| flag.flag == feature_flag)
+            .context("failed to find feature flag: {feature_flag:?}")?;
+
+        app.db.add_user_flag(user.id, feature_flag.id).await?;
+    }
+
+    Ok(Json(MigrateToNewBillingResponse {
+        canceled_subscription_id: canceled_subscription_id
+            .map(|subscription_id| subscription_id.to_string()),
+    }))
+}
+
 /// The amount of time we wait in between each poll of Stripe events.
 ///
 /// This value should strike a balance between:
@@ -856,9 +950,11 @@ async fn handle_customer_subscription_event(

    log::info!("handling Stripe {} event: {}", event.type_, event.id);

-    let subscription_kind = maybe!({
-        let zed_pro_price_id = app.config.zed_pro_price_id().ok()?;
-        let zed_free_price_id = app.config.zed_free_price_id().ok()?;
+    let subscription_kind = maybe!(async {
+        let stripe_billing = app.stripe_billing.clone()?;
+
+        let zed_pro_price_id = stripe_billing.zed_pro_price_id().await.ok()?;
+        let zed_free_price_id = stripe_billing.zed_free_price_id().await.ok()?;

        subscription.items.data.iter().find_map(|item| {
            let price = item.price.as_ref()?;
@@ -875,7 +971,8 @@ async fn handle_customer_subscription_event(
                None
            }
        })
-    });
+    })
+    .await;

    let billing_customer =
        find_or_create_billing_customer(app, stripe_client, subscription.customer)
@@ -943,6 +1040,7 @@ async fn handle_customer_subscription_event(
                billing_customer.user_id,
                &existing_subscription,
                subscription_kind,
+                subscription.status.into(),
                new_period_start_at,
                new_period_end_at,
            )
@@ -1091,11 +1189,25 @@ struct UsageCounts {
 }

 #[derive(Debug, Serialize)]
-struct GetCurrentUsageResponse {
+struct ModelRequestUsage {
+    pub model: String,
+    pub mode: CompletionMode,
+    pub requests: i32,
+}
+
+#[derive(Debug, Serialize)]
+struct CurrentUsage {
    pub model_requests: UsageCounts,
+    pub model_request_usage: Vec<ModelRequestUsage>,
    pub edit_predictions: UsageCounts,
 }

+#[derive(Debug, Default, Serialize)]
+struct GetCurrentUsageResponse {
+    pub plan: String,
+    pub current_usage: Option<CurrentUsage>,
+}
+
 async fn get_current_usage(
    Extension(app): Extension<Arc<AppState>>,
    Query(params): Query<GetCurrentUsageParams>,
@@ -1106,6 +1218,11 @@ async fn get_current_usage(
        .await?
        .ok_or_else(|| anyhow!("user not found"))?;

+    let feature_flags = app.db.get_user_flags(user.id).await?;
+    let has_extended_trial = feature_flags
+        .iter()
+        .any(|flag| flag == AGENT_EXTENDED_TRIAL_FEATURE_FLAG);
+
    let Some(llm_db) = app.llm_db.clone() else {
        return Err(Error::http(
            StatusCode::NOT_IMPLEMENTED,
@@ -1113,21 +1230,8 @@ async fn get_current_usage(
        ));
    };

-    let empty_usage = GetCurrentUsageResponse {
-        model_requests: UsageCounts {
-            used: 0,
-            limit: Some(0),
-            remaining: Some(0),
-        },
-        edit_predictions: UsageCounts {
-            used: 0,
-            limit: Some(0),
-            remaining: Some(0),
-        },
-    };
-
    let Some(subscription) = app.db.get_active_billing_subscription(user.id).await? else {
-        return Ok(Json(empty_usage));
+        return Ok(Json(GetCurrentUsageResponse::default()));
    };

    let subscription_period = maybe!({
@@ -1138,42 +1242,93 @@ async fn get_current_usage(
    });

    let Some((period_start_at, period_end_at)) = subscription_period else {
-        return Ok(Json(empty_usage));
+        return Ok(Json(GetCurrentUsageResponse::default()));
    };

    let usage = llm_db
        .get_subscription_usage_for_period(user.id, period_start_at, period_end_at)
        .await?;
-    let Some(usage) = usage else {
-        return Ok(Json(empty_usage));
-    };

-    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 plan = usage
+        .as_ref()
+        .map(|usage| usage.plan.into())
+        .unwrap_or_else(|| {
+            subscription
+                .kind
+                .map(Into::into)
+                .unwrap_or(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::Limited(limit) => {
+            let limit = if plan == zed_llm_client::Plan::ZedProTrial && has_extended_trial {
+                1_000
+            } else {
+                limit
+            };
+
+            Some(limit)
+        }
        zed_llm_client::UsageLimit::Unlimited => None,
    };
-    let edit_prediction_limit = match plan.edit_predictions_limit() {
+
+    let edit_predictions_limit = match plan.edit_predictions_limit() {
        zed_llm_client::UsageLimit::Limited(limit) => Some(limit),
        zed_llm_client::UsageLimit::Unlimited => None,
    };

+    let Some(usage) = usage else {
+        return Ok(Json(GetCurrentUsageResponse {
+            plan: plan.as_str().to_string(),
+            current_usage: Some(CurrentUsage {
+                model_requests: UsageCounts {
+                    used: 0,
+                    limit: model_requests_limit,
+                    remaining: model_requests_limit,
+                },
+                model_request_usage: Vec::new(),
+                edit_predictions: UsageCounts {
+                    used: 0,
+                    limit: edit_predictions_limit,
+                    remaining: edit_predictions_limit,
+                },
+            }),
+        }));
+    };
+
+    let subscription_usage_meters = llm_db
+        .get_current_subscription_usage_meters_for_user(user.id, Utc::now())
+        .await?;
+
+    let model_request_usage = subscription_usage_meters
+        .into_iter()
+        .filter_map(|(usage_meter, _usage)| {
+            let model = llm_db.model_by_id(usage_meter.model_id).ok()?;
+
+            Some(ModelRequestUsage {
+                model: model.name.clone(),
+                mode: usage_meter.mode,
+                requests: usage_meter.requests,
+            })
+        })
+        .collect::<Vec<_>>();
+
    Ok(Json(GetCurrentUsageResponse {
-        model_requests: UsageCounts {
-            used: usage.model_requests,
-            limit: model_requests_limit,
-            remaining: model_requests_limit.map(|limit| (limit - usage.model_requests).max(0)),
-        },
-        edit_predictions: UsageCounts {
-            used: usage.edit_predictions,
-            limit: edit_prediction_limit,
-            remaining: edit_prediction_limit.map(|limit| (limit - usage.edit_predictions).max(0)),
-        },
+        plan: plan.as_str().to_string(),
+        current_usage: Some(CurrentUsage {
+            model_requests: UsageCounts {
+                used: usage.model_requests,
+                limit: model_requests_limit,
+                remaining: model_requests_limit.map(|limit| (limit - usage.model_requests).max(0)),
+            },
+            model_request_usage,
+            edit_predictions: UsageCounts {
+                used: usage.edit_predictions,
+                limit: edit_predictions_limit,
+                remaining: edit_predictions_limit
+                    .map(|limit| (limit - usage.edit_predictions).max(0)),
+            },
+        }),
    }))
 }

@@ -1358,9 +1513,19 @@ async fn sync_model_request_usage_with_stripe(
    llm_db: &Arc<LlmDatabase>,
    stripe_billing: &Arc<StripeBilling>,
 ) -> anyhow::Result<()> {
+    let staff_users = app.db.get_staff_users().await?;
+    let staff_user_ids = staff_users
+        .iter()
+        .map(|user| user.id)
+        .collect::<HashSet<UserId>>();
+
    let usage_meters = llm_db
        .get_current_subscription_usage_meters(Utc::now())
        .await?;
+    let usage_meters = usage_meters
+        .into_iter()
+        .filter(|(_, usage)| !staff_user_ids.contains(&usage.user_id))
+        .collect::<Vec<_>>();
    let user_ids = usage_meters
        .iter()
        .map(|(_, usage)| usage.user_id)
@@ -1402,12 +1567,12 @@ async fn sync_model_request_usage_with_stripe(

            let model = llm_db.model_by_id(usage_meter.model_id)?;

-            let (price_id, meter_event_name) = match model.name.as_str() {
-                "claude-3-5-sonnet" => (&claude_3_5_sonnet.id, "claude_3_5_sonnet/requests"),
+            let (price, meter_event_name) = match model.name.as_str() {
+                "claude-3-5-sonnet" => (&claude_3_5_sonnet, "claude_3_5_sonnet/requests"),
                "claude-3-7-sonnet" => match usage_meter.mode {
-                    CompletionMode::Normal => (&claude_3_7_sonnet.id, "claude_3_7_sonnet/requests"),
+                    CompletionMode::Normal => (&claude_3_7_sonnet, "claude_3_7_sonnet/requests"),
                    CompletionMode::Max => {
-                        (&claude_3_7_sonnet_max.id, "claude_3_7_sonnet/requests/max")
+                        (&claude_3_7_sonnet_max, "claude_3_7_sonnet/requests/max")
                    }
                },
                model_name => {
@@ -1416,7 +1581,7 @@ async fn sync_model_request_usage_with_stripe(
            };

            stripe_billing
-                .subscribe_to_price(&stripe_subscription_id, price_id)
+                .subscribe_to_price(&stripe_subscription_id, price)
                .await?;
            stripe_billing
                .bill_model_request_usage(
--- 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-user-round-check-icon lucide-user-round-check"><path d="M2 21a8 8 0 0 1 13.292-6"/><circle cx="10" cy="8" r="5"/><path d="m16 19 2 2 4-4"/></svg>`