zed 0.186.9

Fix rejecting overwritten files if the agent previously edited them (cherry-pick #30744 ) (#30746 )
Cherry-picked Fix rejecting overwritten files if the agent previously edited them (#30744) Release Notes: - Fixed rejecting overwritten files if the agent had previously edited them. Co-authored-by: Antonio Scandurra <me@as-cii.com>
2025-05-15 12:43:57 +02:00 · 2025-05-15 11:48:24 +02:00 · 2025-05-14 16:15:56 +02:00 · 2025-05-14 15:59:24 +02:00 · 2025-05-14 15:58:54 +02:00 · 2025-05-14 15:56:14 +02:00
361 changed files with 14163 additions and 36729 deletions
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -162,13 +162,23 @@ jobs:
        working-directory: ./docs
        run: |
          pnpm dlx prettier@${PRETTIER_VERSION} . --check || {
-            echo "To fix, run from the root of the zed repo:"
+            echo "To fix, run from the root of the Zed repo:"
            echo "  cd docs && pnpm dlx prettier@${PRETTIER_VERSION} . --write && cd .."
            false
          }
        env:
          PRETTIER_VERSION: 3.5.0

+      - name: Prettier Check on default.json
+        run: |
+          pnpm dlx prettier@${PRETTIER_VERSION} assets/settings/default.json --check || {
+            echo "To fix, run from the root of the Zed repo:"
+            echo "  pnpm dlx prettier@${PRETTIER_VERSION} assets/settings/default.json --write"
+            false
+          }
+        env:
+          PRETTIER_VERSION: 3.5.0
+
      # To support writing comments that they will certainly be revisited.
      - name: Check for todo! and FIXME comments
        run: script/check-todos
--- 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/.prettierrc
+++ b/.prettierrc
@@ -0,0 +1,3 @@
+{
+  "printWidth": 120
+}
--- 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",
@@ -79,6 +79,7 @@ dependencies = [
 "heed",
 "html_to_markdown",
 "http_client",
+ "indexed_docs",
 "indoc",
 "itertools 0.14.0",
 "jsonschema",
@@ -471,68 +472,6 @@ 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"
@@ -547,7 +486,6 @@ dependencies = [
 "collections",
 "context_server",
 "editor",
- "feature_flags",
 "fs",
 "futures 0.3.31",
 "fuzzy",
@@ -595,8 +533,8 @@ version = "0.1.0"
 dependencies = [
 "anthropic",
 "anyhow",
+ "collections",
 "deepseek",
- "feature_flags",
 "fs",
 "gpui",
 "indexmap",
@@ -612,6 +550,7 @@ dependencies = [
 "serde_json_lenient",
 "settings",
 "workspace-hack",
+ "zed_llm_client",
 ]

 [[package]]
@@ -738,6 +677,7 @@ dependencies = [
 "language_models",
 "linkme",
 "log",
+ "markdown",
 "open",
 "paths",
 "portable-pty",
@@ -3003,8 +2943,8 @@ name = "collab"
 version = "0.44.0"
 dependencies = [
 "anyhow",
- "assistant",
 "assistant_context_editor",
+ "assistant_settings",
 "assistant_slash_command",
 "assistant_tool",
 "async-stripe",
@@ -3238,6 +3178,7 @@ dependencies = [
 "gpui",
 "linkme",
 "parking_lot",
+ "strum 0.27.1",
 "theme",
 "workspace-hack",
 ]
@@ -3393,6 +3334,7 @@ dependencies = [
 "http_client",
 "indoc",
 "inline_completion",
+ "itertools 0.14.0",
 "language",
 "log",
 "lsp",
@@ -3402,11 +3344,9 @@ dependencies = [
 "paths",
 "project",
 "rpc",
- "schemars",
 "serde",
 "serde_json",
 "settings",
- "strum 0.27.1",
 "task",
 "theme",
 "ui",
@@ -4100,6 +4040,7 @@ dependencies = [
 "anyhow",
 "async-trait",
 "dap",
+ "futures 0.3.31",
 "gpui",
 "language",
 "lsp-types",
@@ -4393,6 +4334,7 @@ dependencies = [
 "ctor",
 "editor",
 "env_logger 0.11.8",
+ "futures 0.3.31",
 "gpui",
 "indoc",
 "language",
@@ -7296,7 +7238,6 @@ dependencies = [
 "lsp",
 "paths",
 "project",
- "proto",
 "regex",
 "serde_json",
 "settings",
@@ -7304,7 +7245,6 @@ dependencies = [
 "telemetry",
 "theme",
 "ui",
- "util",
 "workspace",
 "workspace-hack",
 "zed_actions",
@@ -7858,9 +7798,12 @@ 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",
@@ -7901,6 +7844,7 @@ dependencies = [
 "partial-json-fixer",
 "project",
 "proto",
+ "release_channel",
 "schemars",
 "serde",
 "serde_json",
@@ -7981,6 +7925,7 @@ dependencies = [
 "log",
 "lsp",
 "node_runtime",
+ "parking_lot",
 "paths",
 "pet",
 "pet-conda",
@@ -14744,6 +14689,7 @@ dependencies = [
 "log",
 "project",
 "rand 0.8.5",
+ "regex",
 "schemars",
 "search",
 "serde",
@@ -15080,7 +15026,6 @@ dependencies = [
 "client",
 "collections",
 "db",
- "feature_flags",
 "gpui",
 "http_client",
 "notifications",
@@ -17086,18 +17031,22 @@ 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",
@@ -18149,6 +18098,7 @@ dependencies = [
 "itertools 0.14.0",
 "language",
 "log",
+ "menu",
 "node_runtime",
 "parking_lot",
 "postage",
@@ -18684,7 +18634,7 @@ dependencies = [

 [[package]]
 name = "zed"
-version = "0.185.8"
+version = "0.186.9"
 dependencies = [
 "activity_indicator",
 "agent",
@@ -18692,7 +18642,6 @@ dependencies = [
 "ashpd",
 "askpass",
 "assets",
- "assistant",
 "assistant_context_editor",
 "assistant_settings",
 "assistant_tools",
@@ -18874,9 +18823,9 @@ dependencies = [

 [[package]]
 name = "zed_llm_client"
-version = "0.7.5"
+version = "0.8.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "6fe0d60001c02d0d21a4114a13bee3a905fbb9e146ada80a90435c05fda18852"
+checksum = "a23b2fd00776b0c55072f389654910ceb501eb0083d7f78905ab0e5cc86949ec"
 dependencies = [
 "anyhow",
 "serde",
@@ -19084,6 +19033,7 @@ dependencies = [
 "paths",
 "postage",
 "project",
+ "proto",
 "regex",
 "release_channel",
 "reqwest_client",
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -6,7 +6,6 @@ members = [
    "crates/anthropic",
    "crates/askpass",
    "crates/assets",
-    "crates/assistant",
    "crates/assistant_context_editor",
    "crates/assistant_settings",
    "crates/assistant_slash_command",
@@ -214,7 +213,6 @@ 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" }
@@ -433,6 +431,7 @@ 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"
@@ -609,7 +608,7 @@ wasmtime-wasi = "29"
 which = "6.0.0"
 wit-component = "0.221"
 workspace-hack = "0.1.0"
-zed_llm_client = "0.7.5"
+zed_llm_client = "0.8.0"
 zstd = "0.11"

 [workspace.dependencies.async-stripe]
@@ -797,5 +796,6 @@ ignored = [
    "serde",
    "component",
    "linkme",
+    "documented",
    "workspace-hack",
 ]
--- a/assets/icons/debug_disconnect.svg
+++ b/assets/icons/debug_disconnect.svg
--- a/assets/icons/document_text.svg
+++ b/assets/icons/document_text.svg
@@ -0,0 +1,3 @@
+<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/load_circle.svg
+++ b/assets/icons/load_circle.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-loader-circle-icon lucide-loader-circle"><path d="M21 12a9 9 0 1 1-6.219-8.56"/></svg>
--- a/assets/icons/thumbs_down.svg
+++ b/assets/icons/thumbs_down.svg
@@ -1 +1,3 @@
-<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>
+<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>
--- a/assets/icons/thumbs_up.svg
+++ b/assets/icons/thumbs_up.svg
@@ -1 +1,3 @@
-<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>
+<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>
--- 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
@@ -213,21 +213,6 @@
      "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": {
@@ -237,11 +222,14 @@
      "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"
+      "alt-enter": "editor::Newline",
+      "ctrl-k c": "assistant::CopyCode",
+      "ctrl-g": "search::SelectNextMatch",
+      "ctrl-shift-g": "search::SelectPreviousMatch",
+      "ctrl-k l": "agent::OpenRulesLibrary"
    }
  },
  {
@@ -257,8 +245,9 @@
      "ctrl-shift-a": "agent::ToggleContextPicker",
      "ctrl-shift-o": "agent::ToggleNavigationMenu",
      "ctrl-shift-i": "agent::ToggleOptionsMenu",
-      "shift-escape": "agent::ExpandMessageEditor",
-      "ctrl-alt-e": "agent::RemoveAllContext"
+      "shift-alt-escape": "agent::ExpandMessageEditor",
+      "ctrl-alt-e": "agent::RemoveAllContext",
+      "ctrl-shift-e": "project_panel::ToggleFocus"
    }
  },
  {
@@ -709,8 +698,8 @@
  {
    "context": "PromptEditor",
    "bindings": {
-      "ctrl-[": "assistant::CyclePreviousInlineAssist",
-      "ctrl-]": "assistant::CycleNextInlineAssist",
+      "ctrl-[": "agent::CyclePreviousInlineAssist",
+      "ctrl-]": "agent::CycleNextInlineAssist",
      "ctrl-alt-e": "agent::RemoveAllContext"
    }
  },
@@ -979,5 +968,12 @@
      "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
@@ -258,21 +258,6 @@
      "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,
@@ -306,7 +291,7 @@
      "cmd-shift-a": "agent::ToggleContextPicker",
      "cmd-shift-o": "agent::ToggleNavigationMenu",
      "cmd-shift-i": "agent::ToggleOptionsMenu",
-      "shift-escape": "agent::ExpandMessageEditor",
+      "shift-alt-escape": "agent::ExpandMessageEditor",
      "cmd-alt-e": "agent::RemoveAllContext",
      "cmd-shift-e": "project_panel::ToggleFocus"
    }
@@ -780,8 +765,8 @@
      "cmd-shift-a": "agent::ToggleContextPicker",
      "cmd-alt-/": "agent::ToggleModelSelector",
      "cmd-alt-e": "agent::RemoveAllContext",
-      "ctrl-[": "assistant::CyclePreviousInlineAssist",
-      "ctrl-]": "assistant::CycleNextInlineAssist"
+      "ctrl-[": "agent::CyclePreviousInlineAssist",
+      "ctrl-]": "agent::CycleNextInlineAssist"
    }
  },
  {
@@ -1091,5 +1076,12 @@
      "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 +307,15 @@
    // 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 titlebar.
+    "show_branch_icon": false,
+    // Whether to show onboarding banners in the titlebar.
+    "show_onboarding_banner": true,
+    // Whether to show user picture in the titlebar.
+    "show_user_picture": true
+  },
  // Scrollbar related settings
  "scrollbar": {
    // When to show the scrollbar in the editor.
@@ -605,13 +614,11 @@
    //
    // 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.
      //
@@ -637,6 +644,8 @@
    "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'.
@@ -659,6 +668,28 @@
      // 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.
@@ -838,7 +869,20 @@
    //    "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.
@@ -890,6 +934,8 @@
  "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.
@@ -921,6 +967,11 @@
      // 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
@@ -1192,21 +1243,22 @@
    "JSONC": ["**/.zed/**/*.json", "**/zed/**/*.json", "**/Zed/**/*.json", "**/.vscode/**/*.json"],
    "Shell Script": [".env.*"]
  },
-  // By default use a recent system version of node, or install our own.
-  // You can override this to use a version of node that is not in $PATH with:
-  // {
-  //   "node": {
-  //     "path": "/path/to/node"
-  //     "npm_path": "/path/to/npm" (defaults to node_path/../npm)
-  //   }
-  // }
-  // or to ensure Zed always downloads and installs an isolated version of node:
-  // {
-  //   "node": {
-  //     "ignore_system_version": true,
-  //   }
-  // NOTE: changing this setting currently requires restarting Zed.
-  "node": {},
+  // Settings for which version of Node.js and NPM to use when installing
+  // language servers and Copilot.
+  //
+  // Note: changing this setting currently requires restarting Zed.
+  "node": {
+    // By default, Zed will look for `node` and `npm` on your `$PATH`, and use the
+    // existing executables if their version is recent enough. Set this to `true`
+    // to prevent this, and force Zed to always download and install its own
+    // version of Node.
+    "ignore_system_version": false,
+    // You can also specify alternative paths to Node and NPM. If you specify
+    // `path`, but not `npm_path`, Zed will assume that `npm` is located at
+    // `${path}/../npm`.
+    "path": null,
+    "npm_path": null
+  },
  // The extensions that Zed should automatically install on startup.
  //
  // If you don't want any of these extensions, add this field to your settings
@@ -1304,6 +1356,9 @@
    "Elixir": {
      "language_servers": ["elixir-ls", "!next-ls", "!lexical", "..."]
    },
+    "Elm": {
+      "tab_size": 4
+    },
    "Erlang": {
      "language_servers": ["erlang-ls", "!elp", "..."]
    },
@@ -1578,8 +1633,6 @@
  //   "W": "workspace::Save"
  // }
  "command_aliases": {},
-  // Whether to show user picture in titlebar.
-  "show_user_picture": true,
  // ssh_connections is an array of ssh connections.
  // You can configure these from `project: Open Remote` in the command palette.
  // Zed's ssh support will pull configuration from your ~/.ssh too.
--- a/crates/activity_indicator/src/activity_indicator.rs
+++ b/crates/activity_indicator/src/activity_indicator.rs
@@ -43,6 +43,7 @@ pub struct ActivityIndicator {
    context_menu_handle: PopoverMenuHandle<ContextMenu>,
 }

+#[derive(Debug)]
 struct ServerStatus {
    name: SharedString,
    status: BinaryStatus,
@@ -70,6 +71,7 @@ impl ActivityIndicator {
    ) -> Entity<ActivityIndicator> {
        let project = workspace.project().clone();
        let auto_updater = AutoUpdater::get(cx);
+        let workspace_handle = cx.entity();
        let this = cx.new(|cx| {
            let mut status_events = languages.language_server_binary_statuses();
            cx.spawn(async move |this, cx| {
@@ -84,17 +86,23 @@ 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(())
-            })
+            cx.subscribe_in(
+                &workspace_handle,
+                window,
+                |activity_indicator, _, event, window, cx| match event {
+                    workspace::Event::ClearActivityIndicator { .. } => {
+                        if activity_indicator.statuses.pop().is_some() {
+                            activity_indicator.dismiss_error_message(
+                                &DismissErrorMessage,
+                                window,
+                                cx,
+                            );
+                            cx.notify();
+                        }
+                    }
+                    _ => {}
+                },
+            )
            .detach();

            cx.subscribe(
@@ -128,7 +136,7 @@ impl ActivityIndicator {
            }

            Self {
-                statuses: Default::default(),
+                statuses: Vec::new(),
                project: project.clone(),
                auto_updater,
                context_menu_handle: Default::default(),
@@ -198,11 +206,8 @@ impl ActivityIndicator {
        cx: &mut Context<Self>,
    ) {
        if let Some(updater) = &self.auto_updater {
-            updater.update(cx, |updater, cx| {
-                updater.dismiss_error(cx);
-            });
+            updater.update(cx, |updater, cx| updater.dismiss_error(cx));
        }
-        cx.notify();
    }

    fn pending_language_server_work<'a>(
--- 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/assistant.rs"
+path = "src/agent.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
@@ -46,6 +46,7 @@ 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
@@ -1,11 +1,12 @@
-use crate::AssistantPanel;
+use crate::AgentPanel;
 use crate::context::{AgentContextHandle, RULES_ICON};
 use crate::context_picker::{ContextPicker, MentionLink};
 use crate::context_store::ContextStore;
 use crate::context_strip::{ContextStrip, ContextStripEvent, SuggestContextKind};
+use crate::message_editor::insert_message_creases;
 use crate::thread::{
-    LastRestoreCheckpoint, MessageId, MessageSegment, Thread, ThreadError, ThreadEvent,
-    ThreadFeedback,
+    LastRestoreCheckpoint, MessageCrease, MessageId, MessageSegment, Thread, ThreadError,
+    ThreadEvent, ThreadFeedback, ThreadSummary,
 };
 use crate::thread_store::{RulesLoadingError, TextThreadStore, ThreadStore};
 use crate::tool_use::{PendingToolUseStatus, ToolUse};
@@ -43,7 +44,6 @@ 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::*,
@@ -328,6 +328,7 @@ fn tool_use_markdown_style(window: &Window, cx: &mut App) -> MarkdownStyle {
    }
 }

+const CODEBLOCK_CONTAINER_GROUP: &str = "codeblock_container";
 const MAX_UNCOLLAPSED_LINES_IN_CODE_BLOCK: usize = 10;

 fn render_markdown_code_block(
@@ -486,12 +487,18 @@ fn render_markdown_code_block(
        .copied_code_block_ids
        .contains(&(message_id, ix));

-    let is_expanded = active_thread
-        .read(cx)
-        .expanded_code_blocks
-        .get(&(message_id, ix))
-        .copied()
-        .unwrap_or(true);
+    let can_expand = metadata.line_count > MAX_UNCOLLAPSED_LINES_IN_CODE_BLOCK;
+
+    let is_expanded = if can_expand {
+        active_thread
+            .read(cx)
+            .expanded_code_blocks
+            .get(&(message_id, ix))
+            .copied()
+            .unwrap_or(false)
+    } else {
+        false
+    };

    let codeblock_header_bg = cx
        .theme()
@@ -512,7 +519,7 @@ fn render_markdown_code_block(
        .children(label)
        .child(
            h_flex()
-                .visible_on_hover("codeblock_container")
+                .visible_on_hover(CODEBLOCK_CONTAINER_GROUP)
                .gap_1()
                .child(
                    IconButton::new(
@@ -554,45 +561,42 @@ fn render_markdown_code_block(
                        }
                    }),
                )
-                .when(
-                    metadata.line_count > MAX_UNCOLLAPSED_LINES_IN_CODE_BLOCK,
-                    |header| {
-                        header.child(
-                            IconButton::new(
-                                ("expand-collapse-code", ix),
-                                if is_expanded {
-                                    IconName::ChevronUp
-                                } else {
-                                    IconName::ChevronDown
-                                },
-                            )
-                            .icon_color(Color::Muted)
-                            .shape(ui::IconButtonShape::Square)
-                            .tooltip(Tooltip::text(if is_expanded {
-                                "Collapse Code"
+                .when(can_expand, |header| {
+                    header.child(
+                        IconButton::new(
+                            ("expand-collapse-code", ix),
+                            if is_expanded {
+                                IconName::ChevronUp
                            } else {
-                                "Expand Code"
-                            }))
-                            .on_click({
-                                let active_thread = active_thread.clone();
-                                move |_event, _window, cx| {
-                                    active_thread.update(cx, |this, cx| {
-                                        let is_expanded = this
-                                            .expanded_code_blocks
-                                            .entry((message_id, ix))
-                                            .or_insert(true);
-                                        *is_expanded = !*is_expanded;
-                                        cx.notify();
-                                    });
-                                }
-                            }),
+                                IconName::ChevronDown
+                            },
                        )
-                    },
-                ),
+                        .icon_color(Color::Muted)
+                        .shape(ui::IconButtonShape::Square)
+                        .tooltip(Tooltip::text(if is_expanded {
+                            "Collapse Code"
+                        } else {
+                            "Expand Code"
+                        }))
+                        .on_click({
+                            let active_thread = active_thread.clone();
+                            move |_event, _window, cx| {
+                                active_thread.update(cx, |this, cx| {
+                                    let is_expanded = this
+                                        .expanded_code_blocks
+                                        .entry((message_id, ix))
+                                        .or_insert(true);
+                                    *is_expanded = !*is_expanded;
+                                    cx.notify();
+                                });
+                            }
+                        }),
+                    )
+                }),
        );

    v_flex()
-        .group("codeblock_container")
+        .group(CODEBLOCK_CONTAINER_GROUP)
        .my_2()
        .overflow_hidden()
        .rounded_lg()
@@ -600,16 +604,7 @@ fn render_markdown_code_block(
        .border_color(cx.theme().colors().border.opacity(0.6))
        .bg(cx.theme().colors().editor_background)
        .child(codeblock_header)
-        .when(
-            metadata.line_count > MAX_UNCOLLAPSED_LINES_IN_CODE_BLOCK,
-            |this| {
-                if is_expanded {
-                    this.h_full()
-                } else {
-                    this.max_h_80()
-                }
-            },
-        )
+        .when(can_expand && !is_expanded, |this| this.max_h_80())
 }

 fn render_code_language(
@@ -713,7 +708,7 @@ 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::<AssistantPanel>(cx) {
+            if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
                panel.update(cx, |panel, cx| {
                    panel
                        .open_thread_by_id(&thread_id, window, cx)
@@ -722,7 +717,7 @@ fn open_markdown_link(
            }
        }),
        Some(MentionLink::TextThread(path)) => workspace.update(cx, |workspace, cx| {
-            if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
+            if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
                panel.update(cx, |panel, cx| {
                    panel
                        .open_saved_prompt_editor(path, window, cx)
@@ -828,12 +823,12 @@ impl ActiveThread {
        self.messages.is_empty()
    }

-    pub fn summary(&self, cx: &App) -> Option<SharedString> {
+    pub fn summary<'a>(&'a self, cx: &'a App) -> &'a ThreadSummary {
        self.thread.read(cx).summary()
    }

-    pub fn summary_or_default(&self, cx: &App) -> SharedString {
-        self.thread.read(cx).summary_or_default()
+    pub fn regenerate_summary(&self, cx: &mut App) {
+        self.thread.update(cx, |thread, cx| thread.summarize(cx))
    }

    pub fn cancel_last_completion(&mut self, window: &mut Window, cx: &mut App) -> bool {
@@ -1139,11 +1134,7 @@ impl ActiveThread {
            return;
        }

-        let title = self
-            .thread
-            .read(cx)
-            .summary()
-            .unwrap_or("Agent Panel".into());
+        let title = self.thread.read(cx).summary().unwrap_or("Agent Panel");

        match AssistantSettings::get_global(cx).notify_when_agent_waiting {
            NotifyWhenAgentWaiting::PrimaryScreen => {
@@ -1212,8 +1203,7 @@ impl ActiveThread {

                                            if let Some(workspace) = workspace_handle.upgrade() {
                                                workspace.update(_cx, |workspace, cx| {
-                                                    workspace
-                                                        .focus_panel::<AssistantPanel>(window, cx);
+                                                    workspace.focus_panel::<AgentPanel>(window, cx);
                                                });
                                            }
                                        })
@@ -1274,6 +1264,7 @@ impl ActiveThread {
        &mut self,
        message_id: MessageId,
        message_segments: &[MessageSegment],
+        message_creases: &[MessageCrease],
        window: &mut Window,
        cx: &mut Context<Self>,
    ) {
@@ -1283,9 +1274,6 @@ impl ActiveThread {
            return;
        };

-        // Cancel any ongoing streaming when user starts editing a previous message
-        self.cancel_last_completion(window, cx);
-
        let editor = crate::message_editor::create_editor(
            self.workspace.clone(),
            self.context_store.downgrade(),
@@ -1296,6 +1284,7 @@ impl ActiveThread {
        );
        editor.update(cx, |editor, cx| {
            editor.set_text(message_text.clone(), window, cx);
+            insert_message_creases(editor, message_creases, &self.context_store, window, cx);
            editor.focus_handle(cx).focus(window);
            editor.move_to_end(&editor::actions::MoveToEnd, window, cx);
        });
@@ -1416,8 +1405,12 @@ impl ActiveThread {
                        mode: None,
                        messages: vec![request_message],
                        tools: vec![],
+                        tool_choice: None,
                        stop: vec![],
-                        temperature: None,
+                        temperature: AssistantSettings::temperature_for_model(
+                            &configured_model.model,
+                            cx,
+                        ),
                    };

                    Some(configured_model.model.count_tokens(request, cx))
@@ -1746,6 +1739,7 @@ impl ActiveThread {
        let Some(message) = self.thread.read(cx).message(message_id) else {
            return Empty.into_any();
        };
+        let message_creases = message.creases.clone();

        let Some(rendered_message) = self.rendered_messages_by_id.get(&message_id) else {
            return Empty.into_any();
@@ -1781,8 +1775,7 @@ 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::FileCode)
-            .shape(ui::IconButtonShape::Square)
+        let open_as_markdown = IconButton::new(("open-as-markdown", ix), IconName::DocumentText)
            .icon_size(IconSize::XSmall)
            .icon_color(Color::Ignored)
            .tooltip(Tooltip::text("Open Thread as Markdown"))
@@ -1807,13 +1800,16 @@ impl ActiveThread {
            .mt_1()
            .py_2()
            .px(RESPONSE_PADDING_X)
-            .gap_1()
+            .mr_1()
+            .opacity(0.4)
+            .hover(|style| style.opacity(1.))
+            .gap_1p5()
            .flex_wrap()
            .justify_end();
        let feedback_items = match self.thread.read(cx).message_feedback(message_id) {
            Some(feedback) => feedback_container
                .child(
-                    div().mr_1().visible_on_hover("feedback_container").child(
+                    div().visible_on_hover("feedback_container").child(
                        Label::new(match feedback {
                            ThreadFeedback::Positive => "Thanks for your feedback!",
                            ThreadFeedback::Negative => {
@@ -1826,11 +1822,8 @@ 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,
@@ -1848,7 +1841,6 @@ 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 +1861,7 @@ impl ActiveThread {
                .into_any_element(),
            None => feedback_container
                .child(
-                    div().mr_1().visible_on_hover("feedback_container").child(
+                    div().visible_on_hover("feedback_container").child(
                        Label::new(
                            "Rating the thread sends all of your current conversation to the Zed team.",
                        )
@@ -1879,13 +1871,10 @@ 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(
@@ -1900,7 +1889,6 @@ 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(
@@ -2043,6 +2031,7 @@ impl ActiveThread {
                                this.start_editing_message(
                                    message_id,
                                    &message_segments,
+                                    &message_creases,
                                    window,
                                    cx,
                                );
@@ -2076,202 +2065,185 @@ impl ActiveThread {

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

-        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());
-                                        }
-                                    }
+        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 = 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()),
-                            )
-                        } 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())
+                    }
+
+                    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),
+                            )
+                            .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(
-                                            h_flex()
-                                                .gap_1()
-                                                .justify_end()
-                                                .child(
-                                                    Button::new(
-                                                        "dismiss-feedback-message",
-                                                        "Cancel",
+                                            Button::new("dismiss-feedback-message", "Cancel")
+                                                .label_size(LabelSize::Small)
+                                                .key_binding(
+                                                    KeyBinding::for_action_in(
+                                                        &menu::Cancel,
+                                                        &focus_handle,
+                                                        window,
+                                                        cx,
                                                    )
-                                                    .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();
-                                                        },
-                                                    )),
+                                                    .map(|kb| kb.size(rems_from_px(10.))),
                                                )
-                                                .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()
-                                                        },
-                                                    )),
-                                                ),
+                                                .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),
-                        )
-                    }),
-            )
+                    },
+                )
+            })
+            .when(after_editing_message, |parent| {
+                // Backdrop to dim out the whole thread below the editing user message
+                parent.relative().child(
+                    div()
+                        .stop_mouse_events_except_scroll()
+                        .absolute()
+                        .inset_0()
+                        .size_full()
+                        .bg(panel_background)
+                        .opacity(0.8),
+                )
+            })
            .into_any()
    }

@@ -2383,19 +2355,22 @@ impl ActiveThread {
                                            let editor_bg = cx.theme().colors().editor_background;

                                            move |el, range, metadata, _, cx| {
+                                                let can_expand = metadata.line_count
+                                                    > MAX_UNCOLLAPSED_LINES_IN_CODE_BLOCK;
+                                                if !can_expand {
+                                                    return el;
+                                                }
+
                                                let is_expanded = active_thread
                                                    .read(cx)
                                                    .expanded_code_blocks
                                                    .get(&(message_id, range.start))
                                                    .copied()
-                                                    .unwrap_or(true);
-
-                                                if is_expanded
-                                                    || metadata.line_count
-                                                        <= MAX_UNCOLLAPSED_LINES_IN_CODE_BLOCK
-                                                {
+                                                    .unwrap_or(false);
+                                                if is_expanded {
                                                    return el;
                                                }
+
                                                el.child(
                                                    div()
                                                        .absolute()
@@ -2421,6 +2396,7 @@ impl ActiveThread {
                                markdown_element.code_block_renderer(
                                    markdown::CodeBlockRenderer::Default {
                                        copy_button: false,
+                                        copy_button_on_hover: false,
                                        border: true,
                                    },
                                )
@@ -2740,6 +2716,7 @@ impl ActiveThread {
                                )
                                .code_block_renderer(markdown::CodeBlockRenderer::Default {
                                    copy_button: false,
+                                    copy_button_on_hover: false,
                                    border: false,
                                })
                                .on_url_click({
@@ -2770,6 +2747,7 @@ impl ActiveThread {
                                )
                                .code_block_renderer(markdown::CodeBlockRenderer::Default {
                                    copy_button: false,
+                                    copy_button_on_hover: false,
                                    border: false,
                                })
                                .on_url_click({
@@ -3276,15 +3254,18 @@ impl ActiveThread {
            .map(|tool_use| tool_use.status.clone())
        {
            self.thread.update(cx, |thread, 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,
-                );
+                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,
+                    );
+                }
            });
        }
    }
@@ -3457,12 +3438,14 @@ pub(crate) fn open_active_thread_as_markdown(
        workspace.update_in(cx, |workspace, window, cx| {
            let thread = thread.read(cx);
            let markdown = thread.to_markdown(cx)?;
-            let thread_summary = thread
-                .summary()
-                .map(|summary| summary.to_string())
-                .unwrap_or_else(|| "Thread".to_string());
+            let thread_summary = thread.summary().or_default().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)
            });
@@ -3540,7 +3523,7 @@ pub(crate) fn open_context(
        }

        AgentContextHandle::Thread(thread_context) => workspace.update(cx, |workspace, cx| {
-            if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
+            if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
                panel.update(cx, |panel, cx| {
                    panel.open_thread(thread_context.thread.clone(), window, cx);
                });
@@ -3549,7 +3532,7 @@ pub(crate) fn open_context(

        AgentContextHandle::TextThread(text_thread_context) => {
            workspace.update(cx, |workspace, cx| {
-                if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
+                if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
                    panel.update(cx, |panel, cx| {
                        panel.open_prompt_editor(text_thread_context.context.clone(), window, cx)
                    });
@@ -3593,152 +3576,3 @@ fn open_editor_at_position(
        }
    })
 }
-
-#[cfg(test)]
-mod tests {
-    use assistant_tool::{ToolRegistry, ToolWorkingSet};
-    use editor::EditorSettings;
-    use fs::FakeFs;
-    use gpui::{TestAppContext, VisualTestContext};
-    use language_model::{LanguageModel, fake_provider::FakeLanguageModel};
-    use project::Project;
-    use prompt_store::PromptBuilder;
-    use serde_json::json;
-    use settings::SettingsStore;
-    use util::path;
-
-    use crate::{ContextLoadResult, thread_store};
-
-    use super::*;
-
-    #[gpui::test]
-    async fn test_current_completion_cancelled_when_message_edited(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 (cx, active_thread, thread, model) = setup_test_environment(cx, project.clone()).await;
-
-        // Insert user message without any context (empty context vector)
-        let message = thread.update(cx, |thread, cx| {
-            let message_id = thread.insert_user_message(
-                "What is the best way to learn Rust?",
-                ContextLoadResult::default(),
-                None,
-                vec![],
-                cx,
-            );
-            thread
-                .message(message_id)
-                .expect("message should exist")
-                .clone()
-        });
-
-        // Stream response to user message
-        thread.update(cx, |thread, cx| {
-            let request = thread.to_completion_request(model.clone(), cx);
-            thread.stream_completion(request, model, cx.active_window(), cx)
-        });
-        let generating = thread.update(cx, |thread, _cx| thread.is_generating());
-        assert!(generating, "There should be one pending completion");
-
-        // Edit the previous message
-        active_thread.update_in(cx, |active_thread, window, cx| {
-            active_thread.start_editing_message(message.id, &message.segments, window, cx);
-        });
-
-        // Check that the stream was cancelled
-        let generating = thread.update(cx, |thread, _cx| thread.is_generating());
-        assert!(!generating, "The completion should have been cancelled");
-    }
-
-    fn init_test_settings(cx: &mut TestAppContext) {
-        cx.update(|cx| {
-            let settings_store = SettingsStore::test(cx);
-            cx.set_global(settings_store);
-            language::init(cx);
-            Project::init_settings(cx);
-            AssistantSettings::register(cx);
-            prompt_store::init(cx);
-            thread_store::init(cx);
-            workspace::init_settings(cx);
-            language_model::init_settings(cx);
-            ThemeSettings::register(cx);
-            EditorSettings::register(cx);
-            ToolRegistry::default_global(cx);
-        });
-    }
-
-    // Helper to create a test project with test files
-    async fn create_test_project(
-        cx: &mut TestAppContext,
-        files: serde_json::Value,
-    ) -> Entity<Project> {
-        let fs = FakeFs::new(cx.executor());
-        fs.insert_tree(path!("/test"), files).await;
-        Project::test(fs, [path!("/test").as_ref()], cx).await
-    }
-
-    async fn setup_test_environment(
-        cx: &mut TestAppContext,
-        project: Entity<Project>,
-    ) -> (
-        &mut VisualTestContext,
-        Entity<ActiveThread>,
-        Entity<Thread>,
-        Arc<dyn LanguageModel>,
-    ) {
-        let (workspace, cx) =
-            cx.add_window_view(|window, cx| Workspace::test_new(project.clone(), window, cx));
-
-        let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
-        let thread_store = cx
-            .update(|_, cx| {
-                ThreadStore::load(
-                    project.clone(),
-                    cx.new(|_| ToolWorkingSet::default()),
-                    None,
-                    prompt_builder.clone(),
-                    cx,
-                )
-            })
-            .await
-            .unwrap();
-        let text_thread_store = cx
-            .update(|_, cx| {
-                TextThreadStore::new(project.clone(), prompt_builder, Default::default(), cx)
-            })
-            .await
-            .unwrap();
-
-        let thread = thread_store.update(cx, |store, cx| store.create_thread(cx));
-        let context_store = cx.new(|_cx| ContextStore::new(project.downgrade(), None));
-
-        let model = FakeLanguageModel::default();
-        let model: Arc<dyn LanguageModel> = Arc::new(model);
-
-        let language_registry = LanguageRegistry::new(cx.executor());
-        let language_registry = Arc::new(language_registry);
-
-        let active_thread = cx.update(|window, cx| {
-            cx.new(|cx| {
-                ActiveThread::new(
-                    thread.clone(),
-                    thread_store.clone(),
-                    text_thread_store.clone(),
-                    context_store.clone(),
-                    language_registry.clone(),
-                    workspace.downgrade(),
-                    window,
-                    cx,
-                )
-            })
-        });
-
-        (cx, active_thread, thread, model)
-    }
-}
--- a/crates/assistant/src/assistant.rs
+++ b/crates/assistant/src/assistant.rs
@@ -1,102 +1,123 @@
-#![cfg_attr(target_os = "windows", allow(unused, dead_code))]
-
-mod assistant_configuration;
-pub mod assistant_panel;
+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;
 mod inline_assistant;
-pub mod slash_command_settings;
+mod inline_prompt_editor;
+mod message_editor;
+mod profile_selector;
+mod slash_command_settings;
+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::{AssistantSettings, LanguageModelSelection};
+use assistant_settings::{AgentProfileId, AssistantSettings, LanguageModelSelection};
 use assistant_slash_command::SlashCommandRegistry;
 use client::Client;
-use command_palette_hooks::CommandPaletteFilter;
-use feature_flags::FeatureFlagAppExt;
+use feature_flags::FeatureFlagAppExt as _;
 use fs::Fs;
-use gpui::{App, Global, ReadGlobal, UpdateGlobal, actions};
-use language_model::{
-    LanguageModelId, LanguageModelProviderId, LanguageModelRegistry, LanguageModelResponseMessage,
-};
+use gpui::{App, actions, impl_actions};
+use language::LanguageRegistry;
+use language_model::{LanguageModelId, LanguageModelProviderId, LanguageModelRegistry};
 use prompt_store::PromptBuilder;
+use schemars::JsonSchema;
 use serde::Deserialize;
-use settings::{Settings, SettingsStore};
+use settings::{Settings as _, SettingsStore};
+use thread::ThreadId;

-pub use crate::assistant_panel::{AssistantPanel, AssistantPanelEvent};
-pub(crate) use crate::inline_assistant::*;
+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;
 use crate::slash_command_settings::SlashCommandSettings;
+pub use crate::thread::{Message, MessageSegment, Thread, ThreadEvent};
+pub use crate::thread_store::{SerializedThread, TextThreadStore, ThreadStore};
+pub use agent_diff::{AgentDiffPane, AgentDiffToolbar};
+pub use context_store::ContextStore;
+pub use ui::preview::{all_agent_previews, get_agent_preview};

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

-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(Default, Clone, PartialEq, Deserialize, JsonSchema)]
+pub struct NewThread {
+    #[serde(default)]
+    from_thread_id: Option<ThreadId>,
 }

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

-/// 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;
+impl ManageProfiles {
+    pub fn customize_tools(profile_id: AgentProfileId) -> Self {
+        Self {
+            customize_tools: Some(profile_id),
        }
-
-        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);

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

    register_slash_commands(cx);
    inline_assistant::init(
@@ -121,22 +143,8 @@ pub fn init(
        cx,
    );
    indexed_docs::init(cx);
-
-    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();
+    cx.observe_new(AddContextServerModal::register).detach();
+    cx.observe_new(ManageProfilesModal::register).detach();
 }

 fn init_language_model_settings(cx: &mut App) {
@@ -163,7 +171,7 @@ 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.clone()),
+            provider: LanguageModelProviderId::from(selection.provider.0.clone()),
            model: LanguageModelId::from(selection.model.clone()),
        }
    }
@@ -250,11 +258,3 @@ 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/agent/src/assistant_configuration.rs
+++ b/crates/agent/src/assistant_configuration.rs
@@ -30,19 +30,20 @@ pub(crate) use manage_profiles_modal::ManageProfilesModal;

 use crate::AddContextServer;

-pub struct AssistantConfiguration {
+pub struct AgentConfiguration {
    fs: Arc<dyn Fs>,
    focus_handle: FocusHandle,
    configuration_views_by_provider: HashMap<LanguageModelProviderId, AnyView>,
    context_server_store: Entity<ContextServerStore>,
    expanded_context_server_tools: HashMap<ContextServerId, bool>,
+    expanded_provider_configurations: HashMap<LanguageModelProviderId, bool>,
    tools: Entity<ToolWorkingSet>,
    _registry_subscription: Subscription,
    scroll_handle: ScrollHandle,
    scrollbar_state: ScrollbarState,
 }

-impl AssistantConfiguration {
+impl AgentConfiguration {
    pub fn new(
        fs: Arc<dyn Fs>,
        context_server_store: Entity<ContextServerStore>,
@@ -78,6 +79,7 @@ impl AssistantConfiguration {
            configuration_views_by_provider: HashMap::default(),
            context_server_store,
            expanded_context_server_tools: HashMap::default(),
+            expanded_provider_configurations: HashMap::default(),
            tools,
            _registry_subscription: registry_subscription,
            scroll_handle,
@@ -96,6 +98,7 @@ impl AssistantConfiguration {

    fn remove_provider_configuration_view(&mut self, provider_id: &LanguageModelProviderId) {
        self.configuration_views_by_provider.remove(provider_id);
+        self.expanded_provider_configurations.remove(provider_id);
    }

    fn add_provider_configuration_view(
@@ -110,7 +113,7 @@ impl AssistantConfiguration {
    }
 }

-impl Focusable for AssistantConfiguration {
+impl Focusable for AgentConfiguration {
    fn focus_handle(&self, _: &App) -> FocusHandle {
        self.focus_handle.clone()
    }
@@ -120,9 +123,9 @@ pub enum AssistantConfigurationEvent {
    NewThread(Arc<dyn LanguageModelProvider>),
 }

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

-impl AssistantConfiguration {
+impl AgentConfiguration {
    fn render_provider_configuration_block(
        &mut self,
        provider: &Arc<dyn LanguageModelProvider>,
@@ -135,9 +138,14 @@ impl AssistantConfiguration {
            .get(&provider.id())
            .cloned();

+        let is_expanded = self
+            .expanded_provider_configurations
+            .get(&provider.id())
+            .copied()
+            .unwrap_or(true);
+
        v_flex()
            .pt_3()
-            .pb_1()
            .gap_1p5()
            .border_t_1()
            .border_color(cx.theme().colors().border.opacity(0.6))
@@ -152,32 +160,59 @@ impl AssistantConfiguration {
                                    .size(IconSize::Small)
                                    .color(Color::Muted),
                            )
-                            .child(Label::new(provider_name.clone()).size(LabelSize::Large)),
+                            .child(Label::new(provider_name.clone()).size(LabelSize::Large))
+                            .when(provider.is_authenticated(cx) && !is_expanded, |parent| {
+                                parent.child(Icon::new(IconName::Check).color(Color::Success))
+                            }),
                    )
-                    .when(provider.is_authenticated(cx), |parent| {
-                        parent.child(
-                            Button::new(
-                                SharedString::from(format!("new-thread-{provider_id}")),
-                                "Start New Thread",
-                            )
-                            .icon_position(IconPosition::Start)
-                            .icon(IconName::Plus)
-                            .icon_size(IconSize::Small)
-                            .style(ButtonStyle::Filled)
-                            .layer(ElevationIndex::ModalSurface)
-                            .label_size(LabelSize::Small)
-                            .on_click(cx.listener({
-                                let provider = provider.clone();
-                                move |_this, _event, _window, cx| {
-                                    cx.emit(AssistantConfigurationEvent::NewThread(
-                                        provider.clone(),
-                                    ))
-                                }
-                            })),
-                        )
-                    }),
+                    .child(
+                        h_flex()
+                            .gap_1()
+                            .when(provider.is_authenticated(cx), |parent| {
+                                parent.child(
+                                    Button::new(
+                                        SharedString::from(format!("new-thread-{provider_id}")),
+                                        "Start New Thread",
+                                    )
+                                    .icon_position(IconPosition::Start)
+                                    .icon(IconName::Plus)
+                                    .icon_size(IconSize::Small)
+                                    .layer(ElevationIndex::ModalSurface)
+                                    .label_size(LabelSize::Small)
+                                    .on_click(cx.listener({
+                                        let provider = provider.clone();
+                                        move |_this, _event, _window, cx| {
+                                            cx.emit(AssistantConfigurationEvent::NewThread(
+                                                provider.clone(),
+                                            ))
+                                        }
+                                    })),
+                                )
+                            })
+                            .child(
+                                Disclosure::new(
+                                    SharedString::from(format!(
+                                        "provider-disclosure-{provider_id}"
+                                    )),
+                                    is_expanded,
+                                )
+                                .opened_icon(IconName::ChevronUp)
+                                .closed_icon(IconName::ChevronDown)
+                                .on_click(cx.listener({
+                                    let provider_id = provider.id().clone();
+                                    move |this, _event, _window, _cx| {
+                                        let is_open = this
+                                            .expanded_provider_configurations
+                                            .entry(provider_id.clone())
+                                            .or_insert(true);
+
+                                        *is_open = !*is_open;
+                                    }
+                                })),
+                            ),
+                    ),
            )
-            .map(|parent| match configuration_view {
+            .when(is_expanded, |parent| match configuration_view {
                Some(configuration_view) => parent.child(configuration_view),
                None => parent.child(div().child(Label::new(format!(
                    "No configuration view for {provider_name}",
@@ -571,7 +606,7 @@ impl AssistantConfiguration {
    }
 }

-impl Render for AssistantConfiguration {
+impl Render for AgentConfiguration {
    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
@@ -147,47 +147,50 @@ impl Render for AddContextServerModal {
                        ),
                    )
                    .footer(
-                        ModalFooter::new()
-                            .start_slot(
-                                Button::new("cancel", "Cancel")
-                                    .key_binding(
-                                        KeyBinding::for_action_in(
-                                            &menu::Cancel,
-                                            &focus_handle,
-                                            window,
-                                            cx,
+                        ModalFooter::new().end_slot(
+                            h_flex()
+                                .gap_2()
+                                .child(
+                                    Button::new("cancel", "Cancel")
+                                        .key_binding(
+                                            KeyBinding::for_action_in(
+                                                &menu::Cancel,
+                                                &focus_handle,
+                                                window,
+                                                cx,
+                                            )
+                                            .map(|kb| kb.size(rems_from_px(12.))),
                                        )
-                                        .map(|kb| kb.size(rems_from_px(12.))),
-                                    )
-                                    .on_click(cx.listener(|this, _event, _window, cx| {
-                                        this.cancel(&menu::Cancel, cx)
-                                    })),
-                            )
-                            .end_slot(
-                                Button::new("add-server", "Add Server")
-                                    .disabled(is_name_empty || is_command_empty)
-                                    .key_binding(
-                                        KeyBinding::for_action_in(
-                                            &menu::Confirm,
-                                            &focus_handle,
-                                            window,
-                                            cx,
+                                        .on_click(cx.listener(|this, _event, _window, cx| {
+                                            this.cancel(&menu::Cancel, cx)
+                                        })),
+                                )
+                                .child(
+                                    Button::new("add-server", "Add Server")
+                                        .disabled(is_name_empty || is_command_empty)
+                                        .key_binding(
+                                            KeyBinding::for_action_in(
+                                                &menu::Confirm,
+                                                &focus_handle,
+                                                window,
+                                                cx,
+                                            )
+                                            .map(|kb| kb.size(rems_from_px(12.))),
                                        )
-                                        .map(|kb| kb.size(rems_from_px(12.))),
-                                    )
-                                    .map(|button| {
-                                        if is_name_empty {
-                                            button.tooltip(Tooltip::text("Name is required"))
-                                        } else if is_command_empty {
-                                            button.tooltip(Tooltip::text("Command is required"))
-                                        } else {
-                                            button
-                                        }
-                                    })
-                                    .on_click(cx.listener(|this, _event, _window, cx| {
-                                        this.confirm(&menu::Confirm, cx)
-                                    })),
-                            ),
+                                        .map(|button| {
+                                            if is_name_empty {
+                                                button.tooltip(Tooltip::text("Name is required"))
+                                            } else if is_command_empty {
+                                                button.tooltip(Tooltip::text("Command is required"))
+                                            } else {
+                                                button
+                                            }
+                                        })
+                                        .on_click(cx.listener(|this, _event, _window, cx| {
+                                            this.confirm(&menu::Confirm, cx)
+                                        })),
+                                ),
+                        ),
                    ),
            )
    }
--- a/crates/agent/src/assistant_configuration/configure_context_server_modal.rs
+++ b/crates/agent/src/assistant_configuration/configure_context_server_modal.rs
@@ -19,18 +19,24 @@ use project::{
 };
 use settings::{Settings as _, update_settings_file};
 use theme::ThemeSettings;
-use ui::{KeyBinding, Modal, ModalFooter, ModalHeader, Section, prelude::*};
+use ui::{KeyBinding, Modal, ModalFooter, ModalHeader, Section, Tooltip, prelude::*};
 use util::ResultExt;
 use workspace::{ModalView, Workspace};

 pub(crate) struct ConfigureContextServerModal {
    workspace: WeakEntity<Workspace>,
-    context_servers_to_setup: Vec<ConfigureContextServer>,
+    focus_handle: FocusHandle,
+    context_servers_to_setup: Vec<ContextServerSetup>,
    context_server_store: Entity<ContextServerStore>,
 }

-struct ConfigureContextServer {
-    id: ContextServerId,
+#[allow(clippy::large_enum_variant)]
+enum Configuration {
+    NotAvailable,
+    Required(ConfigurationRequiredState),
+}
+
+struct ConfigurationRequiredState {
    installation_instructions: Entity<markdown::Markdown>,
    settings_validator: Option<jsonschema::Validator>,
    settings_editor: Entity<Editor>,
@@ -38,64 +44,91 @@ struct ConfigureContextServer {
    waiting_for_context_server: bool,
 }

+struct ContextServerSetup {
+    id: ContextServerId,
+    repository_url: Option<SharedString>,
+    configuration: Configuration,
+}
+
 impl ConfigureContextServerModal {
    pub fn new(
-        configurations: impl Iterator<Item = (ContextServerId, extension::ContextServerConfiguration)>,
+        configurations: impl Iterator<Item = crate::context_server_configuration::Configuration>,
        context_server_store: Entity<ContextServerStore>,
        jsonc_language: Option<Arc<Language>>,
        language_registry: Arc<LanguageRegistry>,
        workspace: WeakEntity<Workspace>,
        window: &mut Window,
-        cx: &mut App,
-    ) -> Option<Self> {
+        cx: &mut Context<Self>,
+    ) -> Self {
        let context_servers_to_setup = configurations
-            .map(|(id, manifest)| {
-                let jsonc_language = jsonc_language.clone();
-                let settings_validator = jsonschema::validator_for(&manifest.settings_schema)
-                    .context("Failed to load JSON schema for context server settings")
-                    .log_err();
-                ConfigureContextServer {
-                    id: id.clone(),
-                    installation_instructions: cx.new(|cx| {
-                        Markdown::new(
-                            manifest.installation_instructions.clone().into(),
-                            Some(language_registry.clone()),
-                            None,
-                            cx,
-                        )
-                    }),
-                    settings_validator,
-                    settings_editor: cx.new(|cx| {
-                        let mut editor = Editor::auto_height(16, window, cx);
-                        editor.set_text(manifest.default_settings.trim(), window, cx);
-                        editor.set_show_gutter(false, cx);
-                        editor.set_soft_wrap_mode(language::language_settings::SoftWrap::None, cx);
-                        if let Some(buffer) = editor.buffer().read(cx).as_singleton() {
-                            buffer.update(cx, |buffer, cx| buffer.set_language(jsonc_language, cx))
-                        }
-                        editor
-                    }),
-                    waiting_for_context_server: false,
-                    last_error: None,
+            .map(|config| match config {
+                crate::context_server_configuration::Configuration::NotAvailable(
+                    context_server_id,
+                    repository_url,
+                ) => ContextServerSetup {
+                    id: context_server_id,
+                    repository_url,
+                    configuration: Configuration::NotAvailable,
+                },
+                crate::context_server_configuration::Configuration::Required(
+                    context_server_id,
+                    repository_url,
+                    config,
+                ) => {
+                    let jsonc_language = jsonc_language.clone();
+                    let settings_validator = jsonschema::validator_for(&config.settings_schema)
+                        .context("Failed to load JSON schema for context server settings")
+                        .log_err();
+                    let state = ConfigurationRequiredState {
+                        installation_instructions: cx.new(|cx| {
+                            Markdown::new(
+                                config.installation_instructions.clone().into(),
+                                Some(language_registry.clone()),
+                                None,
+                                cx,
+                            )
+                        }),
+                        settings_validator,
+                        settings_editor: cx.new(|cx| {
+                            let mut editor = Editor::auto_height(16, window, cx);
+                            editor.set_text(config.default_settings.trim(), window, cx);
+                            editor.set_show_gutter(false, cx);
+                            editor.set_soft_wrap_mode(
+                                language::language_settings::SoftWrap::None,
+                                cx,
+                            );
+                            if let Some(buffer) = editor.buffer().read(cx).as_singleton() {
+                                buffer.update(cx, |buffer, cx| {
+                                    buffer.set_language(jsonc_language, cx)
+                                })
+                            }
+                            editor
+                        }),
+                        waiting_for_context_server: false,
+                        last_error: None,
+                    };
+                    ContextServerSetup {
+                        id: context_server_id,
+                        repository_url,
+                        configuration: Configuration::Required(state),
+                    }
                }
            })
            .collect::<Vec<_>>();

-        if context_servers_to_setup.is_empty() {
-            return None;
-        }
-
-        Some(Self {
+        Self {
            workspace,
+            focus_handle: cx.focus_handle(),
            context_servers_to_setup,
            context_server_store,
-        })
+        }
    }
 }

 impl ConfigureContextServerModal {
    pub fn confirm(&mut self, cx: &mut Context<Self>) {
        if self.context_servers_to_setup.is_empty() {
+            self.dismiss(cx);
            return;
        }

@@ -103,7 +136,18 @@ impl ConfigureContextServerModal {
            return;
        };

-        let configuration = &mut self.context_servers_to_setup[0];
+        let id = self.context_servers_to_setup[0].id.clone();
+        let configuration = match &mut self.context_servers_to_setup[0].configuration {
+            Configuration::NotAvailable => {
+                self.context_servers_to_setup.remove(0);
+                if self.context_servers_to_setup.is_empty() {
+                    self.dismiss(cx);
+                }
+                return;
+            }
+            Configuration::Required(state) => state,
+        };
+
        configuration.last_error.take();
        if configuration.waiting_for_context_server {
            return;
@@ -127,7 +171,7 @@ impl ConfigureContextServerModal {
                return;
            }
        }
-        let id = configuration.id.clone();
+        let id = id.clone();

        let settings_changed = ProjectSettings::get_global(cx)
            .context_servers
@@ -156,9 +200,14 @@ impl ConfigureContextServerModal {
                        this.complete_setup(id, cx);
                    }
                    Err(err) => {
-                        if let Some(configuration) = this.context_servers_to_setup.get_mut(0) {
-                            configuration.last_error = Some(err.into());
-                            configuration.waiting_for_context_server = false;
+                        if let Some(setup) = this.context_servers_to_setup.get_mut(0) {
+                            match &mut setup.configuration {
+                                Configuration::NotAvailable => {}
+                                Configuration::Required(state) => {
+                                    state.last_error = Some(err.into());
+                                    state.waiting_for_context_server = false;
+                                }
+                            }
                        } else {
                            this.dismiss(cx);
                        }
@@ -267,8 +316,8 @@ fn wait_for_context_server(

 impl Render for ConfigureContextServerModal {
    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
-        let Some(configuration) = self.context_servers_to_setup.first() else {
-            return div().child("No context servers to setup");
+        let Some(setup) = self.context_servers_to_setup.first() else {
+            return div().into_any_element();
        };

        let focus_handle = self.focus_handle(cx);
@@ -277,6 +326,7 @@ impl Render for ConfigureContextServerModal {
            .elevation_3(cx)
            .w(rems(42.))
            .key_context("ConfigureContextServerModal")
+            .track_focus(&focus_handle)
            .on_action(cx.listener(|this, _: &menu::Confirm, _window, cx| this.confirm(cx)))
            .on_action(cx.listener(|this, _: &menu::Cancel, _window, cx| this.dismiss(cx)))
            .capture_any_mouse_down(cx.listener(|this, _, window, cx| {
@@ -284,9 +334,15 @@ impl Render for ConfigureContextServerModal {
            }))
            .child(
                Modal::new("configure-context-server", None)
-                    .header(ModalHeader::new().headline(format!("Configure {}", configuration.id)))
-                    .section(
-                        Section::new()
+                    .header(ModalHeader::new().headline(format!("Configure {}", setup.id)))
+                    .section(match &setup.configuration {
+                        Configuration::NotAvailable => Section::new().child(
+                            Label::new(
+                                "No configuration options available for this context server. Visit the Repository for any further instructions.",
+                            )
+                            .color(Color::Muted),
+                        ),
+                        Configuration::Required(configuration) => Section::new()
                            .child(div().pb_2().text_sm().child(MarkdownElement::new(
                                configuration.installation_instructions.clone(),
                                default_markdown_style(window, cx),
@@ -370,45 +426,84 @@ impl Render for ConfigureContextServerModal {
                                        ),
                                )
                            }),
-                    )
+                    })
                    .footer(
-                        ModalFooter::new().end_slot(
-                            h_flex()
-                                .gap_1()
-                                .child(
-                                    Button::new("cancel", "Cancel")
-                                        .key_binding(
-                                            KeyBinding::for_action_in(
-                                                &menu::Cancel,
-                                                &focus_handle,
-                                                window,
-                                                cx,
-                                            )
-                                            .map(|kb| kb.size(rems_from_px(12.))),
-                                        )
-                                        .on_click(cx.listener(|this, _event, _window, cx| {
-                                            this.dismiss(cx)
-                                        })),
+                        ModalFooter::new()
+                            .when_some(setup.repository_url.clone(), |this, repository_url| {
+                                this.start_slot(
+                                    h_flex().w_full().child(
+                                        Button::new("open-repository", "Open Repository")
+                                            .icon(IconName::ArrowUpRight)
+                                            .icon_color(Color::Muted)
+                                            .icon_size(IconSize::XSmall)
+                                            .tooltip({
+                                                let repository_url = repository_url.clone();
+                                                move |window, cx| {
+                                                    Tooltip::with_meta(
+                                                        "Open Repository",
+                                                        None,
+                                                        repository_url.clone(),
+                                                        window,
+                                                        cx,
+                                                    )
+                                                }
+                                            })
+                                            .on_click(move |_, _, cx| cx.open_url(&repository_url)),
+                                    ),
                                )
-                                .child(
-                                    Button::new("configure-server", "Configure MCP")
-                                        .disabled(configuration.waiting_for_context_server)
-                                        .key_binding(
-                                            KeyBinding::for_action_in(
-                                                &menu::Confirm,
-                                                &focus_handle,
-                                                window,
-                                                cx,
-                                            )
-                                            .map(|kb| kb.size(rems_from_px(12.))),
+                            })
+                            .end_slot(match &setup.configuration {
+                                Configuration::NotAvailable => Button::new("dismiss", "Dismiss")
+                                    .key_binding(
+                                        KeyBinding::for_action_in(
+                                            &menu::Cancel,
+                                            &focus_handle,
+                                            window,
+                                            cx,
                                        )
-                                        .on_click(cx.listener(|this, _event, _window, cx| {
-                                            this.confirm(cx)
-                                        })),
-                                ),
-                        ),
+                                        .map(|kb| kb.size(rems_from_px(12.))),
+                                    )
+                                    .on_click(
+                                        cx.listener(|this, _event, _window, cx| this.dismiss(cx)),
+                                    )
+                                    .into_any_element(),
+                                Configuration::Required(state) => h_flex()
+                                    .gap_2()
+                                    .child(
+                                        Button::new("cancel", "Cancel")
+                                            .key_binding(
+                                                KeyBinding::for_action_in(
+                                                    &menu::Cancel,
+                                                    &focus_handle,
+                                                    window,
+                                                    cx,
+                                                )
+                                                .map(|kb| kb.size(rems_from_px(12.))),
+                                            )
+                                            .on_click(cx.listener(|this, _event, _window, cx| {
+                                                this.dismiss(cx)
+                                            })),
+                                    )
+                                    .child(
+                                        Button::new("configure-server", "Configure MCP")
+                                            .disabled(state.waiting_for_context_server)
+                                            .key_binding(
+                                                KeyBinding::for_action_in(
+                                                    &menu::Confirm,
+                                                    &focus_handle,
+                                                    window,
+                                                    cx,
+                                                )
+                                                .map(|kb| kb.size(rems_from_px(12.))),
+                                            )
+                                            .on_click(cx.listener(|this, _event, _window, cx| {
+                                                this.confirm(cx)
+                                            })),
+                                    )
+                                    .into_any_element(),
+                            }),
                    ),
-            )
+            ).into_any_element()
    }
 }

@@ -446,9 +541,14 @@ impl EventEmitter<DismissEvent> for ConfigureContextServerModal {}
 impl Focusable for ConfigureContextServerModal {
    fn focus_handle(&self, cx: &App) -> FocusHandle {
        if let Some(current) = self.context_servers_to_setup.first() {
-            current.settings_editor.read(cx).focus_handle(cx)
+            match &current.configuration {
+                Configuration::NotAvailable => self.focus_handle.clone(),
+                Configuration::Required(configuration) => {
+                    configuration.settings_editor.read(cx).focus_handle(cx)
+                }
+            }
        } else {
-            cx.focus_handle()
+            self.focus_handle.clone()
        }
    }
 }
--- 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::assistant_configuration::manage_profiles_modal::profile_modal_header::ProfileModalHeader;
-use crate::assistant_configuration::tool_picker::{ToolPicker, ToolPickerDelegate};
-use crate::{AssistantPanel, ManageProfiles, ThreadStore};
+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 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::<AssistantPanel>(cx) {
+            if let Some(panel) = workspace.panel::<AgentPanel>(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_tools(profile_id, window, cx);
+                        this.configure_builtin_tools(profile_id, window, cx);
                    }

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

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

-    fn configure_tools(
+    fn configure_builtin_tools(
        &mut self,
        profile_id: AgentProfileId,
        window: &mut Window,
@@ -581,16 +581,20 @@ impl ManageProfilesModal {
                        )
                        .child(
                            div()
-                                .id("configure-tools")
+                                .id("configure-builtin-tools")
                                .track_focus(&mode.configure_tools.focus_handle)
                                .on_action({
                                    let profile_id = mode.profile_id.clone();
                                    cx.listener(move |this, _: &menu::Confirm, window, cx| {
-                                        this.configure_tools(profile_id.clone(), window, cx);
+                                        this.configure_builtin_tools(
+                                            profile_id.clone(),
+                                            window,
+                                            cx,
+                                        );
                                    })
                                })
                                .child(
-                                    ListItem::new("configure-tools")
+                                    ListItem::new("configure-builtin-tools-item")
                                        .toggle_state(
                                            mode.configure_tools
                                                .focus_handle
@@ -603,11 +607,11 @@ impl ManageProfilesModal {
                                                .size(IconSize::Small)
                                                .color(Color::Muted),
                                        )
-                                        .child(Label::new("Configure Tools"))
+                                        .child(Label::new("Configure Built-in Tools"))
                                        .on_click({
                                            let profile_id = mode.profile_id.clone();
                                            cx.listener(move |this, _, window, cx| {
-                                                this.configure_tools(
+                                                this.configure_builtin_tools(
                                                    profile_id.clone(),
                                                    window,
                                                    cx,
@@ -623,11 +627,11 @@ impl ManageProfilesModal {
                                .on_action({
                                    let profile_id = mode.profile_id.clone();
                                    cx.listener(move |this, _: &menu::Confirm, window, cx| {
-                                        this.configure_mcps(profile_id.clone(), window, cx);
+                                        this.configure_mcp_tools(profile_id.clone(), window, cx);
                                    })
                                })
                                .child(
-                                    ListItem::new("configure-mcps")
+                                    ListItem::new("configure-mcp-tools")
                                        .toggle_state(
                                            mode.configure_mcps
                                                .focus_handle
@@ -640,11 +644,15 @@ impl ManageProfilesModal {
                                                .size(IconSize::Small)
                                                .color(Color::Muted),
                                        )
-                                        .child(Label::new("Configure MCP Servers"))
+                                        .child(Label::new("Configure MCP Tools"))
                                        .on_click({
                                            let profile_id = mode.profile_id.clone();
                                            cx.listener(move |this, _, window, cx| {
-                                                this.configure_mcps(profile_id.clone(), window, cx);
+                                                this.configure_mcp_tools(
+                                                    profile_id.clone(),
+                                                    window,
+                                                    cx,
+                                                );
                                            })
                                        }),
                                ),
@@ -777,7 +785,7 @@ impl Render for ManageProfilesModal {
                    v_flex()
                        .pb_1()
                        .child(ProfileModalHeader::new(
-                            format!("{profile_name} — Configure Tools"),
+                            format!("{profile_name} — Configure Built-in Tools"),
                            Some(IconName::Cog),
                        ))
                        .child(ListSeparator)
@@ -800,7 +808,7 @@ impl Render for ManageProfilesModal {
                    v_flex()
                        .pb_1()
                        .child(ProfileModalHeader::new(
-                            format!("{profile_name} — Configure MCP Servers"),
+                            format!("{profile_name} — Configure MCP Tools"),
                            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 servers…",
+            ToolPickerMode::McpTools => "Search MCP tools…",
        }
        .into()
    }
--- a/crates/agent/src/agent_diff.rs
+++ b/crates/agent/src/agent_diff.rs
@@ -1,6 +1,4 @@
-use crate::{
-    Keep, KeepAll, OpenAgentDiff, Reject, RejectAll, Thread, ThreadEvent, ui::AnimatedLabel,
-};
+use crate::{Keep, KeepAll, OpenAgentDiff, Reject, RejectAll, Thread, ThreadEvent};
 use anyhow::Result;
 use assistant_settings::AssistantSettings;
 use buffer_diff::DiffHunkStatus;
@@ -11,8 +9,9 @@ use editor::{
    scroll::Autoscroll,
 };
 use gpui::{
-    Action, AnyElement, AnyView, App, AppContext, Empty, Entity, EventEmitter, FocusHandle,
-    Focusable, Global, SharedString, Subscription, Task, WeakEntity, Window, prelude::*,
+    Action, Animation, AnimationExt, AnyElement, AnyView, App, AppContext, Empty, Entity,
+    EventEmitter, FocusHandle, Focusable, Global, SharedString, Subscription, Task, Transformation,
+    WeakEntity, Window, percentage, prelude::*,
 };

 use language::{Buffer, Capability, DiskState, OffsetRangeExt, Point};
@@ -25,6 +24,7 @@ use std::{
    collections::hash_map::Entry,
    ops::Range,
    sync::Arc,
+    time::Duration,
 };
 use ui::{IconButtonShape, KeyBinding, Tooltip, prelude::*, vertical_divider};
 use util::ResultExt;
@@ -215,11 +215,7 @@ impl AgentDiffPane {
    }

    fn update_title(&mut self, cx: &mut Context<Self>) {
-        let new_title = self
-            .thread
-            .read(cx)
-            .summary()
-            .unwrap_or("Agent Changes".into());
+        let new_title = self.thread.read(cx).summary().unwrap_or("Agent Changes");
        if new_title != self.title {
            self.title = new_title;
            cx.emit(EditorEvent::TitleChanged);
@@ -469,11 +465,7 @@ impl Item for AgentDiffPane {
    }

    fn tab_content(&self, params: TabContentParams, _window: &Window, cx: &App) -> AnyElement {
-        let summary = self
-            .thread
-            .read(cx)
-            .summary()
-            .unwrap_or("Agent Changes".into());
+        let summary = self.thread.read(cx).summary().unwrap_or("Agent Changes");
        Label::new(format!("Review: {}", summary))
            .color(if params.selected {
                Color::Default
@@ -978,9 +970,20 @@ impl ToolbarItemView for AgentDiffToolbar {

 impl Render for AgentDiffToolbar {
    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
-        let generating_label = div()
-            .w(rems_from_px(110.)) // Arbitrary size so the label doesn't dance around
-            .child(AnimatedLabel::new("Generating"))
+        let spinner_icon = div()
+            .px_0p5()
+            .id("generating")
+            .tooltip(Tooltip::text("Generating Changes…"))
+            .child(
+                Icon::new(IconName::LoadCircle)
+                    .size(IconSize::Small)
+                    .color(Color::Accent)
+                    .with_animation(
+                        "load_circle",
+                        Animation::new(Duration::from_secs(3)).repeat(),
+                        |icon, delta| icon.transform(Transformation::rotate(percentage(delta))),
+                    ),
+            )
            .into_any();

        let Some(active_item) = self.active_item.as_ref() else {
@@ -997,7 +1000,7 @@ impl Render for AgentDiffToolbar {

                let content = match state {
                    EditorState::Idle => return Empty.into_any(),
-                    EditorState::Generating => vec![generating_label],
+                    EditorState::Generating => vec![spinner_icon],
                    EditorState::Reviewing => vec![
                        h_flex()
                            .child(
@@ -1115,7 +1118,7 @@ impl Render for AgentDiffToolbar {

                let is_generating = agent_diff.read(cx).thread.read(cx).is_generating();
                if is_generating {
-                    return div().px_2().child(generating_label).into_any();
+                    return div().px_2().child(spinner_icon).into_any();
                }

                let is_empty = agent_diff.read(cx).multibuffer.read(cx).is_empty();
--- 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 AssistantModelSelector {
+pub struct AgentModelSelector {
    selector: Entity<LanguageModelSelector>,
    menu_handle: PopoverMenuHandle<LanguageModelSelector>,
    focus_handle: FocusHandle,
 }

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

-impl Render for AssistantModelSelector {
+impl Render for AgentModelSelector {
    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
@@ -9,9 +9,9 @@ use serde::{Deserialize, Serialize};

 use anyhow::{Result, anyhow};
 use assistant_context_editor::{
-    AssistantContext, AssistantPanelDelegate, ConfigurationError, ContextEditor, ContextEvent,
-    SlashCommandCompletionProvider, humanize_token_count, make_lsp_adapter_delegate,
-    render_remaining_tokens,
+    AgentPanelDelegate, AssistantContext, ConfigurationError, ContextEditor, ContextEvent,
+    ContextSummary, SlashCommandCompletionProvider, humanize_token_count,
+    make_lsp_adapter_delegate, render_remaining_tokens,
 };
 use assistant_settings::{AssistantDockPosition, AssistantSettings};
 use assistant_slash_command::SlashCommandWorkingSet;
@@ -27,7 +27,9 @@ use gpui::{
    linear_gradient, prelude::*, pulsating_between,
 };
 use language::LanguageRegistry;
-use language_model::{LanguageModelProviderTosView, LanguageModelRegistry, RequestUsage};
+use language_model::{
+    LanguageModelProviderTosView, LanguageModelRegistry, RequestUsage, ZED_CLOUD_PROVIDER_ID,
+};
 use language_model_selector::ToggleModelSelector;
 use project::{Project, ProjectPath, Worktree};
 use prompt_store::{PromptBuilder, PromptStore, UserPromptId};
@@ -37,37 +39,41 @@ 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::*,
 };
 use util::{ResultExt as _, maybe};
 use workspace::dock::{DockPosition, Panel, PanelEvent};
-use workspace::{CollaboratorId, DraggedSelection, DraggedTab, ToolbarItemView, Workspace};
-use zed_actions::agent::OpenConfiguration;
+use workspace::{
+    CollaboratorId, DraggedSelection, DraggedTab, ToggleZoom, ToolbarItemView, Workspace,
+};
+use zed_actions::agent::{OpenConfiguration, OpenOnboardingModal, ResetOnboarding};
 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::history_store::{HistoryStore, RecentEntry};
 use crate::message_editor::{MessageEditor, MessageEditorEvent};
-use crate::thread::{Thread, ThreadError, ThreadId, TokenUsageRatio};
-use crate::thread_history::{PastContext, PastThread, ThreadHistory};
-use crate::thread_store::{TextThreadStore, ThreadStore};
+use crate::thread::{Thread, ThreadError, ThreadId, ThreadSummary, TokenUsageRatio};
+use crate::thread_history::{HistoryEntryElement, ThreadHistory};
+use crate::thread_store::ThreadStore;
+use crate::ui::AgentOnboardingModal;
 use crate::{
    AddContextServer, AgentDiffPane, ContextStore, DeleteRecentlyOpenThread, ExpandMessageEditor,
    Follow, InlineAssistant, NewTextThread, NewThread, OpenActiveThreadAsMarkdown, OpenAgentDiff,
-    OpenHistory, ResetTrialUpsell, ThreadEvent, ToggleContextPicker, ToggleNavigationMenu,
-    ToggleOptionsMenu,
+    OpenHistory, ResetTrialUpsell, TextThreadStore, ThreadEvent, ToggleContextPicker,
+    ToggleNavigationMenu, ToggleOptionsMenu,
 };

 const AGENT_PANEL_KEY: &str = "agent_panel";

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

@@ -76,40 +82,40 @@ 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::<AssistantPanel>(cx) {
+                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
                        panel.update(cx, |panel, cx| panel.new_thread(action, window, cx));
-                        workspace.focus_panel::<AssistantPanel>(window, cx);
+                        workspace.focus_panel::<AgentPanel>(window, cx);
                    }
                })
                .register_action(|workspace, _: &OpenHistory, window, cx| {
-                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
-                        workspace.focus_panel::<AssistantPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
+                        workspace.focus_panel::<AgentPanel>(window, cx);
                        panel.update(cx, |panel, cx| panel.open_history(window, cx));
                    }
                })
                .register_action(|workspace, _: &OpenConfiguration, window, cx| {
-                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
-                        workspace.focus_panel::<AssistantPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
+                        workspace.focus_panel::<AgentPanel>(window, cx);
                        panel.update(cx, |panel, cx| panel.open_configuration(window, cx));
                    }
                })
                .register_action(|workspace, _: &NewTextThread, window, cx| {
-                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
-                        workspace.focus_panel::<AssistantPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
+                        workspace.focus_panel::<AgentPanel>(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::<AssistantPanel>(cx) {
-                        workspace.focus_panel::<AssistantPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
+                        workspace.focus_panel::<AgentPanel>(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::<AssistantPanel>(cx) {
-                        workspace.focus_panel::<AssistantPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
+                        workspace.focus_panel::<AgentPanel>(window, cx);
                        let thread = panel.read(cx).thread.read(cx).thread().clone();
                        AgentDiffPane::deploy_in_workspace(thread, workspace, window, cx);
                    }
@@ -118,8 +124,8 @@ pub fn init(cx: &mut App) {
                    workspace.follow(CollaboratorId::Agent, window, cx);
                })
                .register_action(|workspace, _: &ExpandMessageEditor, window, cx| {
-                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
-                        workspace.focus_panel::<AssistantPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
+                        workspace.focus_panel::<AgentPanel>(window, cx);
                        panel.update(cx, |panel, cx| {
                            panel.message_editor.update(cx, |editor, cx| {
                                editor.expand_message_editor(&ExpandMessageEditor, window, cx);
@@ -128,21 +134,28 @@ pub fn init(cx: &mut App) {
                    }
                })
                .register_action(|workspace, _: &ToggleNavigationMenu, window, cx| {
-                    if let Some(panel) = workspace.panel::<AssistantPanel>(cx) {
-                        workspace.focus_panel::<AssistantPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
+                        workspace.focus_panel::<AgentPanel>(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::<AssistantPanel>(cx) {
-                        workspace.focus_panel::<AssistantPanel>(window, cx);
+                    if let Some(panel) = workspace.panel::<AgentPanel>(cx) {
+                        workspace.focus_panel::<AgentPanel>(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);
                });
@@ -167,9 +180,23 @@ 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();
+        let summary = thread.read(cx).summary().or_default();

        let editor = cx.new(|cx| {
            let mut editor = Editor::single_line(window, cx);
@@ -191,7 +218,7 @@ impl ActiveView {
                        }
                        EditorEvent::Blurred => {
                            if editor.read(cx).text(cx).is_empty() {
-                                let summary = thread.read(cx).summary_or_default();
+                                let summary = thread.read(cx).summary().or_default();

                                editor.update(cx, |editor, cx| {
                                    editor.set_text(summary, window, cx);
@@ -206,7 +233,7 @@ impl ActiveView {
                let editor = editor.clone();
                move |thread, event, window, cx| match event {
                    ThreadEvent::SummaryGenerated => {
-                        let summary = thread.read(cx).summary_or_default();
+                        let summary = thread.read(cx).summary().or_default();

                        editor.update(cx, |editor, cx| {
                            editor.set_text(summary, window, cx);
@@ -269,7 +296,8 @@ impl ActiveView {
                                    .read(cx)
                                    .context()
                                    .read(cx)
-                                    .summary_or_default();
+                                    .summary()
+                                    .or_default();

                                editor.update(cx, |editor, cx| {
                                    editor.set_text(summary, window, cx);
@@ -284,7 +312,7 @@ impl ActiveView {
                let editor = editor.clone();
                move |assistant_context, event, window, cx| match event {
                    ContextEvent::SummaryGenerated => {
-                        let summary = assistant_context.read(cx).summary_or_default();
+                        let summary = assistant_context.read(cx).summary().or_default();

                        editor.update(cx, |editor, cx| {
                            editor.set_text(summary, window, cx);
@@ -310,7 +338,7 @@ impl ActiveView {
    }
 }

-pub struct AssistantPanel {
+pub struct AgentPanel {
    workspace: WeakEntity<Workspace>,
    user_store: Entity<UserStore>,
    project: Entity<Project>,
@@ -324,31 +352,33 @@ pub struct AssistantPanel {
    context_store: Entity<TextThreadStore>,
    prompt_store: Option<Entity<PromptStore>>,
    inline_assist_context_store: Entity<crate::context_store::ContextStore>,
-    configuration: Option<Entity<AssistantConfiguration>>,
+    configuration: Option<Entity<AgentConfiguration>>,
    configuration_subscription: Option<Subscription>,
    local_timezone: UtcOffset,
    active_view: ActiveView,
    previous_view: Option<ActiveView>,
    history_store: Entity<HistoryStore>,
    history: Entity<ThreadHistory>,
+    hovered_recent_history_item: Option<usize>,
    assistant_dropdown_menu_handle: PopoverMenuHandle<ContextMenu>,
    assistant_navigation_menu_handle: PopoverMenuHandle<ContextMenu>,
    assistant_navigation_menu: Option<Entity<ContextMenu>>,
    width: Option<Pixels>,
    height: Option<Pixels>,
+    zoomed: bool,
    pending_serialization: Option<Task<Result<()>>>,
    hide_trial_upsell: bool,
    _trial_markdown: Entity<Markdown>,
 }

-impl AssistantPanel {
+impl AgentPanel {
    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(&SerializedAssistantPanel { width })?,
+                    serde_json::to_string(&SerializedAgentPanel { width })?,
                )
                .await?;
            anyhow::Ok(())
@@ -398,7 +428,7 @@ impl AssistantPanel {
                .log_err()
                .flatten()
            {
-                Some(serde_json::from_str::<SerializedAssistantPanel>(&panel)?)
+                Some(serde_json::from_str::<SerializedAgentPanel>(&panel)?)
            } else {
                None
            };
@@ -466,7 +496,6 @@ impl AssistantPanel {
                thread_store.downgrade(),
                context_store.downgrade(),
                thread.clone(),
-                agent_panel_dock_position(cx),
                window,
                cx,
            )
@@ -485,6 +514,7 @@ impl AssistantPanel {
                thread_store.clone(),
                context_store.clone(),
                [RecentEntry::Thread(thread_id, thread.clone())],
+                window,
                cx,
            )
        });
@@ -671,11 +701,13 @@ impl AssistantPanel {
            previous_view: None,
            history_store: history_store.clone(),
            history: cx.new(|cx| ThreadHistory::new(weak_self, history_store, window, cx)),
+            hovered_recent_history_item: None,
            assistant_dropdown_menu_handle: PopoverMenuHandle::default(),
            assistant_navigation_menu_handle: PopoverMenuHandle::default(),
            assistant_navigation_menu: None,
            width: None,
            height: None,
+            zoomed: false,
            pending_serialization: None,
            hide_trial_upsell: false,
            _trial_markdown: trial_markdown,
@@ -739,9 +771,9 @@ impl AssistantPanel {
        });

        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, cx));
+            let other_thread_task = self.thread_store.update(cx, |this, cx| {
+                this.open_thread(&other_thread_id, window, cx)
+            });

            cx.spawn({
                let context_store = context_store.clone();
@@ -796,7 +828,6 @@ impl AssistantPanel {
                self.thread_store.downgrade(),
                self.context_store.downgrade(),
                thread,
-                agent_panel_dock_position(cx),
                window,
                cx,
            )
@@ -942,7 +973,7 @@ impl AssistantPanel {
    ) -> Task<Result<()>> {
        let open_thread_task = self
            .thread_store
-            .update(cx, |this, cx| this.open_thread(thread_id, cx));
+            .update(cx, |this, cx| this.open_thread(thread_id, window, cx));
        cx.spawn_in(window, async move |this, cx| {
            let thread = open_thread_task.await?;
            this.update_in(cx, |this, window, cx| {
@@ -1005,7 +1036,6 @@ impl AssistantPanel {
                self.thread_store.downgrade(),
                self.context_store.downgrade(),
                thread,
-                agent_panel_dock_position(cx),
                window,
                cx,
            )
@@ -1062,7 +1092,7 @@ impl AssistantPanel {
        _: &mut Window,
        cx: &mut Context<Self>,
    ) {
-        self.adjust_font_size(action.persist, px(1.0), cx);
+        self.handle_font_size_action(action.persist, px(1.0), cx);
    }

    pub fn decrease_font_size(
@@ -1071,21 +1101,36 @@ impl AssistantPanel {
        _: &mut Window,
        cx: &mut Context<Self>,
    ) {
-        self.adjust_font_size(action.persist, px(-1.0), cx);
+        self.handle_font_size_action(action.persist, px(-1.0), cx);
    }

-    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;
-            });
+    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 => {}
        }
    }

@@ -1104,6 +1149,17 @@ impl AssistantPanel {
        }
    }

+    pub fn toggle_zoom(&mut self, _: &ToggleZoom, window: &mut Window, cx: &mut Context<Self>) {
+        if self.zoomed {
+            cx.emit(PanelEvent::ZoomOut);
+        } else {
+            if !self.focus_handle(cx).contains_focused(window, cx) {
+                cx.focus_self(window);
+            }
+            cx.emit(PanelEvent::ZoomIn);
+        }
+    }
+
    pub fn open_agent_diff(
        &mut self,
        _: &OpenAgentDiff,
@@ -1125,15 +1181,13 @@ impl AssistantPanel {

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

            configuration.focus_handle(cx).focus(window);
@@ -1163,9 +1217,9 @@ impl AssistantPanel {
            .detach_and_log_err(cx);
    }

-    fn handle_assistant_configuration_event(
+    fn handle_agent_configuration_event(
        &mut self,
-        _entity: &Entity<AssistantConfiguration>,
+        _entity: &Entity<AgentConfiguration>,
        event: &AssistantConfigurationEvent,
        window: &mut Window,
        cx: &mut Context<Self>,
@@ -1278,7 +1332,7 @@ impl AssistantPanel {
    }
 }

-impl Focusable for AssistantPanel {
+impl Focusable for AgentPanel {
    fn focus_handle(&self, cx: &App) -> FocusHandle {
        match &self.active_view {
            ActiveView::Thread { .. } => self.message_editor.focus_handle(cx),
@@ -1303,9 +1357,9 @@ fn agent_panel_dock_position(cx: &App) -> DockPosition {
    }
 }

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

-impl Panel for AssistantPanel {
+impl Panel for AgentPanel {
    fn persistent_name() -> &'static str {
        "AgentPanel"
    }
@@ -1319,10 +1373,6 @@ impl Panel for AssistantPanel {
    }

    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,
@@ -1382,9 +1432,18 @@ impl Panel for AssistantPanel {
    fn enabled(&self, cx: &App) -> bool {
        AssistantSettings::get_global(cx).enabled
    }
+
+    fn is_zoomed(&self, _window: &Window, _cx: &App) -> bool {
+        self.zoomed
+    }
+
+    fn set_zoomed(&mut self, zoomed: bool, _window: &mut Window, cx: &mut Context<Self>) {
+        self.zoomed = zoomed;
+        cx.notify();
+    }
 }

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

@@ -1394,23 +1453,45 @@ impl AssistantPanel {
                ..
            } => {
                let active_thread = self.thread.read(cx);
-                let is_empty = active_thread.is_empty();
-
-                let summary = active_thread.summary(cx);
-
-                if is_empty {
-                    Label::new(Thread::DEFAULT_SUMMARY.clone())
-                        .truncate()
-                        .into_any_element()
-                } else if summary.is_none() {
-                    Label::new(LOADING_SUMMARY_PLACEHOLDER)
-                        .truncate()
-                        .into_any_element()
+                let state = if active_thread.is_empty() {
+                    &ThreadSummary::Pending
                } else {
-                    div()
+                    active_thread.summary(cx)
+                };
+
+                match state {
+                    ThreadSummary::Pending => Label::new(ThreadSummary::DEFAULT.clone())
+                        .truncate()
+                        .into_any_element(),
+                    ThreadSummary::Generating => Label::new(LOADING_SUMMARY_PLACEHOLDER)
+                        .truncate()
+                        .into_any_element(),
+                    ThreadSummary::Ready(_) => div()
                        .w_full()
                        .child(change_title_editor.clone())
-                        .into_any_element()
+                        .into_any_element(),
+                    ThreadSummary::Error => h_flex()
+                        .w_full()
+                        .child(change_title_editor.clone())
+                        .child(
+                            ui::IconButton::new("retry-summary-generation", IconName::RotateCcw)
+                                .on_click({
+                                    let active_thread = self.thread.clone();
+                                    move |_, _window, cx| {
+                                        active_thread.update(cx, |thread, cx| {
+                                            thread.regenerate_summary(cx);
+                                        });
+                                    }
+                                })
+                                .tooltip(move |_window, cx| {
+                                    cx.new(|_| {
+                                        Tooltip::new("Failed to generate title")
+                                            .meta("Click to try again")
+                                    })
+                                    .into()
+                                }),
+                        )
+                        .into_any_element(),
                }
            }
            ActiveView::PromptEditor {
@@ -1418,14 +1499,13 @@ impl AssistantPanel {
                context_editor,
                ..
            } => {
-                let context_editor = context_editor.read(cx);
-                let summary = context_editor.context().read(cx).summary();
+                let summary = context_editor.read(cx).context().read(cx).summary();

                match summary {
-                    None => Label::new(AssistantContext::DEFAULT_SUMMARY.clone())
+                    ContextSummary::Pending => Label::new(ContextSummary::DEFAULT)
                        .truncate()
                        .into_any_element(),
-                    Some(summary) => {
+                    ContextSummary::Content(summary) => {
                        if summary.done {
                            div()
                                .w_full()
@@ -1437,6 +1517,28 @@ impl AssistantPanel {
                                .into_any_element()
                        }
                    }
+                    ContextSummary::Error => h_flex()
+                        .w_full()
+                        .child(title_editor.clone())
+                        .child(
+                            ui::IconButton::new("retry-summary-generation", IconName::RotateCcw)
+                                .on_click({
+                                    let context_editor = context_editor.clone();
+                                    move |_, _window, cx| {
+                                        context_editor.update(cx, |context_editor, cx| {
+                                            context_editor.regenerate_summary(cx);
+                                        });
+                                    }
+                                })
+                                .tooltip(move |_window, cx| {
+                                    cx.new(|_| {
+                                        Tooltip::new("Failed to generate title")
+                                            .meta("Click to try again")
+                                    })
+                                    .into()
+                                }),
+                        )
+                        .into_any_element(),
                }
            }
            ActiveView::History => Label::new("History").truncate().into_any_element(),
@@ -1460,6 +1562,7 @@ impl AssistantPanel {
        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()?;
@@ -1482,7 +1585,7 @@ impl AssistantPanel {
        let account_url = zed_urls::account_url(cx);

        let show_token_count = match &self.active_view {
-            ActiveView::Thread { .. } => !is_empty,
+            ActiveView::Thread { .. } => !is_empty || !editor_empty,
            ActiveView::PromptEditor { .. } => true,
            _ => false,
        };
@@ -1545,6 +1648,12 @@ impl AssistantPanel {
                }),
        );

+        let zoom_in_label = if self.is_zoomed(window, cx) {
+            "Zoom Out"
+        } else {
+            "Zoom In"
+        };
+
        let agent_extra_menu = PopoverMenu::new("agent-options-menu")
            .trigger_with_tooltip(
                IconButton::new("agent-options-menu", IconName::Ellipsis)
@@ -1631,7 +1740,8 @@ impl AssistantPanel {

                    menu = menu
                        .action("Rules…", Box::new(OpenRulesLibrary::default()))
-                        .action("Settings", Box::new(OpenConfiguration));
+                        .action("Settings", Box::new(OpenConfiguration))
+                        .action(zoom_in_label, Box::new(ToggleZoom));
                    menu
                }))
            });
@@ -1802,10 +1912,27 @@ impl AssistantPanel {
    }

    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;
        }

+        let is_using_zed_provider = self
+            .thread
+            .read(cx)
+            .thread()
+            .read(cx)
+            .configured_model()
+            .map_or(false, |model| {
+                model.provider.id().0 == ZED_CLOUD_PROVIDER_ID
+            });
+        if !is_using_zed_provider {
+            return false;
+        }
+
        let plan = self.user_store.read(cx).current_plan();
        if matches!(plan, Some(Plan::ZedPro | Plan::ZedProTrial)) {
            return false;
@@ -1925,9 +2052,9 @@ impl AssistantPanel {
                                                    .style(ButtonStyle::Transparent)
                                                    .color(Color::Muted)
                                                    .on_click({
-                                                        let assistant_panel = cx.entity();
+                                                        let agent_panel = cx.entity();
                                                        move |_, _, cx| {
-                                                            assistant_panel.update(
+                                                            agent_panel.update(
                                                                cx,
                                                                |this, cx| {
                                                                    let hidden =
@@ -2162,7 +2289,7 @@ impl AssistantPanel {
                            .border_b_1()
                            .border_color(cx.theme().colors().border_variant)
                            .child(
-                                Label::new("Past Interactions")
+                                Label::new("Recent")
                                    .size(LabelSize::Small)
                                    .color(Color::Muted),
                            )
@@ -2187,18 +2314,20 @@ impl AssistantPanel {
                        v_flex()
                            .gap_1()
                            .children(
-                                recent_history.into_iter().map(|entry| {
+                                recent_history.into_iter().enumerate().map(|(index, entry)| {
                                    // TODO: Add keyboard navigation.
-                                    match entry {
-                                        HistoryEntry::Thread(thread) => {
-                                            PastThread::new(thread, cx.entity().downgrade(), false, vec![])
-                                                .into_any_element()
-                                        }
-                                        HistoryEntry::Context(context) => {
-                                            PastContext::new(context, cx.entity().downgrade(), false, vec![])
-                                                .into_any_element()
-                                        }
-                                    }
+                                    let is_hovered = self.hovered_recent_history_item == Some(index);
+                                    HistoryEntryElement::new(entry.clone(), cx.entity().downgrade())
+                                        .hovered(is_hovered)
+                                        .on_hover(cx.listener(move |this, is_hovered, _window, cx| {
+                                            if *is_hovered {
+                                                this.hovered_recent_history_item = Some(index);
+                                            } else if this.hovered_recent_history_item == Some(index) {
+                                                this.hovered_recent_history_item = None;
+                                            }
+                                            cx.notify();
+                                        }))
+                                        .into_any_element()
                                }),
                            )
                    )
@@ -2286,14 +2415,13 @@ impl AssistantPanel {
            ""
        };

-        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(),
-        )
+        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())
    }

    fn render_last_error(&self, cx: &mut Context<Self>) -> Option<AnyElement> {
@@ -2532,6 +2660,46 @@ impl AssistantPanel {
            .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()
@@ -2653,9 +2821,18 @@ impl AssistantPanel {
    }
 }

-impl Render for AssistantPanel {
+impl Render for AgentPanel {
    fn render(&mut self, window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
-        v_flex()
+        // 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()
            .key_context(self.key_context())
            .justify_between()
            .size_full()
@@ -2678,62 +2855,40 @@ impl Render for AssistantPanel {
            .on_action(cx.listener(Self::increase_font_size))
            .on_action(cx.listener(Self::decrease_font_size))
            .on_action(cx.listener(Self::reset_font_size))
+            .on_action(cx.listener(Self::toggle_zoom))
            .child(self.render_toolbar(window, cx))
            .children(self.render_trial_upsell(window, cx))
            .map(|parent| match &self.active_view {
-                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::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::History => parent.child(self.history.clone()),
                ActiveView::PromptEditor {
                    context_editor,
                    buffer_search_bar,
                    ..
-                } => {
-                    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)),
-                    )
-                }
+                } => parent.child(self.render_prompt_editor(
+                    context_editor,
+                    buffer_search_bar,
+                    window,
+                    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(),
+        }
    }
 }

@@ -2782,28 +2937,26 @@ impl rules_library::InlineAssistDelegate for PromptLibraryInlineAssist {
        })
    }

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

 pub struct ConcreteAssistantPanelDelegate;

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

@@ -2814,7 +2967,7 @@ impl AssistantPanelDelegate for ConcreteAssistantPanelDelegate {
        window: &mut Window,
        cx: &mut Context<Workspace>,
    ) -> Task<Result<()>> {
-        let Some(panel) = workspace.panel::<AssistantPanel>(cx) else {
+        let Some(panel) = workspace.panel::<AgentPanel>(cx) else {
            return Task::ready(Err(anyhow!("Agent panel not found")));
        };

@@ -2841,12 +2994,12 @@ impl AssistantPanelDelegate for ConcreteAssistantPanelDelegate {
        window: &mut Window,
        cx: &mut Context<Workspace>,
    ) {
-        let Some(panel) = workspace.panel::<AssistantPanel>(cx) else {
+        let Some(panel) = workspace.panel::<AgentPanel>(cx) else {
            return;
        };

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

        panel.update(cx, |_, cx| {
--- a/crates/agent/src/assistant.rs
+++ b/crates/agent/src/assistant.rs
@@ -1,160 +0,0 @@
-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/buffer_codegen.rs
+++ b/crates/agent/src/buffer_codegen.rs
@@ -2,6 +2,7 @@ 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};
@@ -383,7 +384,7 @@ impl CodegenAlternative {
            if user_prompt.trim().to_lowercase() == "delete" {
                async { Ok(LanguageModelTextStream::default()) }.boxed_local()
            } else {
-                let request = self.build_request(user_prompt, cx)?;
+                let request = self.build_request(&model, user_prompt, cx)?;
                cx.spawn(async move |_, cx| model.stream_completion_text(request.await, &cx).await)
                    .boxed_local()
            };
@@ -393,6 +394,7 @@ impl CodegenAlternative {

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

+        let temperature = AssistantSettings::temperature_for_model(&model, cx);
+
        Ok(cx.spawn(async move |_cx| {
            let mut request_message = LanguageModelRequestMessage {
                role: Role::User,
@@ -462,8 +466,9 @@ impl CodegenAlternative {
                prompt_id: None,
                mode: None,
                tools: Vec::new(),
+                tool_choice: None,
                stop: Vec::new(),
-                temperature: None,
+                temperature,
                messages: vec![request_message],
            }
        }))
--- a/crates/agent/src/context.rs
+++ b/crates/agent/src/context.rs
@@ -586,10 +586,7 @@ impl ThreadContextHandle {
    }

    pub fn title(&self, cx: &App) -> SharedString {
-        self.thread
-            .read(cx)
-            .summary()
-            .unwrap_or_else(|| "New thread".into())
+        self.thread.read(cx).summary().or_default()
    }

    fn load(self, cx: &App) -> Task<Option<(AgentContext, Vec<Entity<Buffer>>)>> {
@@ -597,9 +594,7 @@ impl ThreadContextHandle {
            let text = Thread::wait_for_detailed_summary_or_text(&self.thread, cx).await?;
            let title = self
                .thread
-                .read_with(cx, |thread, _cx| {
-                    thread.summary().unwrap_or_else(|| "New thread".into())
-                })
+                .read_with(cx, |thread, _cx| thread.summary().or_default())
                .ok()?;
            let context = AgentContext::Thread(ThreadContext {
                title,
@@ -642,7 +637,7 @@ impl TextThreadContextHandle {
    }

    pub fn title(&self, cx: &App) -> SharedString {
-        self.context.read(cx).summary_or_default()
+        self.context.read(cx).summary().or_default()
    }

    fn load(self, cx: &App) -> Task<Option<(AgentContext, Vec<Entity<Buffer>>)>> {
@@ -830,23 +825,20 @@ pub fn load_context(
    prompt_store: &Option<Entity<PromptStore>>,
    cx: &mut App,
 ) -> Task<ContextLoadResult> {
-    let mut load_tasks = Vec::new();
-
-    for context in contexts.iter().cloned() {
-        match context {
-            AgentContextHandle::File(context) => load_tasks.push(context.load(cx)),
-            AgentContextHandle::Directory(context) => {
-                load_tasks.push(context.load(project.clone(), cx))
-            }
-            AgentContextHandle::Symbol(context) => load_tasks.push(context.load(cx)),
-            AgentContextHandle::Selection(context) => load_tasks.push(context.load(cx)),
-            AgentContextHandle::FetchedUrl(context) => load_tasks.push(context.load()),
-            AgentContextHandle::Thread(context) => load_tasks.push(context.load(cx)),
-            AgentContextHandle::TextThread(context) => load_tasks.push(context.load(cx)),
-            AgentContextHandle::Rules(context) => load_tasks.push(context.load(prompt_store, cx)),
-            AgentContextHandle::Image(context) => load_tasks.push(context.load(cx)),
-        }
-    }
+    let load_tasks: Vec<_> = contexts
+        .into_iter()
+        .map(|context| match context {
+            AgentContextHandle::File(context) => context.load(cx),
+            AgentContextHandle::Directory(context) => context.load(project.clone(), cx),
+            AgentContextHandle::Symbol(context) => context.load(cx),
+            AgentContextHandle::Selection(context) => context.load(cx),
+            AgentContextHandle::FetchedUrl(context) => context.load(),
+            AgentContextHandle::Thread(context) => context.load(cx),
+            AgentContextHandle::TextThread(context) => context.load(cx),
+            AgentContextHandle::Rules(context) => context.load(prompt_store, cx),
+            AgentContextHandle::Image(context) => context.load(cx),
+        })
+        .collect();

    cx.background_spawn(async move {
        let load_results = future::join_all(load_tasks).await;
--- 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::AssistantPanel;
+use crate::AgentPanel;
 use crate::context::RULES_ICON;
 use crate::context_store::ContextStore;
 use crate::thread::ThreadId;
@@ -381,6 +381,16 @@ impl ContextPicker {
        cx.focus_self(window);
    }

+    pub fn select_first(&mut self, window: &mut Window, cx: &mut Context<Self>) {
+        match &self.mode {
+            ContextPickerState::Default(entity) => entity.update(cx, |entity, cx| {
+                entity.select_first(&Default::default(), window, cx)
+            }),
+            // Other variants already select their first entry on open automatically
+            _ => {}
+        }
+    }
+
    fn recent_menu_item(
        &self,
        context_picker: Entity<ContextPicker>,
@@ -425,9 +435,9 @@ 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(), cx)
+                            this.add_recent_thread(thread.clone(), window, cx)
                                .detach_and_log_err(cx);
                        })
                    },
@@ -459,6 +469,7 @@ 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 {
@@ -476,7 +487,7 @@ impl ContextPicker {
                };

                let open_thread_task =
-                    thread_store.update(cx, |this, cx| this.open_thread(&id, cx));
+                    thread_store.update(cx, |this, cx| this.open_thread(&id, window, cx));
                cx.spawn(async move |this, cx| {
                    let thread = open_thread_task.await?;
                    context_store.update(cx, |context_store, cx| {
@@ -647,7 +658,7 @@ fn recent_context_picker_entries(
    let current_threads = context_store.read(cx).thread_ids();

    let active_thread_id = workspace
-        .panel::<AssistantPanel>(cx)
+        .panel::<AgentPanel>(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 |cx| match &thread_entry {
+                move |window, cx| match &thread_entry {
                    ThreadContextEntry::Thread { id, .. } => {
                        let thread_id = id.clone();
                        let context_store = context_store.clone();
                        let thread_store = thread_store.clone();
-                        cx.spawn::<_, Option<_>>(async move |cx| {
+                        window.spawn::<_, Option<_>>(cx, async move |cx| {
                            let thread: Entity<Thread> = thread_store
-                                .update(cx, |thread_store, cx| {
-                                    thread_store.open_thread(&thread_id, cx)
+                                .update_in(cx, |thread_store, window, cx| {
+                                    thread_store.open_thread(&thread_id, window, 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();
@@ -954,10 +954,13 @@ fn confirm_completion_callback(
    content_len: usize,
    editor: Entity<Editor>,
    context_store: Entity<ContextStore>,
-    add_context_fn: impl Fn(&mut App) -> Task<Option<AgentContextHandle>> + Send + Sync + 'static,
+    add_context_fn: impl Fn(&mut Window, &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(cx);
+        let context = add_context_fn(window, 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, cx));
+                    thread_store.update(cx, |this, cx| this.open_thread(&id, window, 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
@@ -2,14 +2,15 @@ use std::sync::Arc;

 use anyhow::Context as _;
 use context_server::ContextServerId;
-use extension::ExtensionManifest;
+use extension::{ContextServerConfiguration, ExtensionManifest};
+use gpui::Task;
 use language::LanguageRegistry;
 use project::context_server_store::registry::ContextServerDescriptorRegistry;
 use ui::prelude::*;
 use util::ResultExt;
 use workspace::Workspace;

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

 pub(crate) fn init(language_registry: Arc<LanguageRegistry>, cx: &mut App) {
    cx.observe_new(move |_: &mut Workspace, window, cx| {
@@ -54,6 +55,15 @@ pub(crate) fn init(language_registry: Arc<LanguageRegistry>, cx: &mut App) {
    .detach();
 }

+pub enum Configuration {
+    NotAvailable(ContextServerId, Option<SharedString>),
+    Required(
+        ContextServerId,
+        Option<SharedString>,
+        ContextServerConfiguration,
+    ),
+}
+
 fn show_configure_mcp_modal(
    language_registry: Arc<LanguageRegistry>,
    manifest: &Arc<ExtensionManifest>,
@@ -62,6 +72,7 @@ fn show_configure_mcp_modal(
    cx: &mut Context<'_, Workspace>,
 ) {
    let context_server_store = workspace.project().read(cx).context_server_store();
+    let repository: Option<SharedString> = manifest.repository.as_ref().map(|s| s.clone().into());

    let registry = ContextServerDescriptorRegistry::default_global(cx).read(cx);
    let worktree_store = workspace.project().read(cx).worktree_store();
@@ -69,21 +80,37 @@ fn show_configure_mcp_modal(
        .context_servers
        .keys()
        .cloned()
-        .filter_map({
+        .map({
            |key| {
-                let descriptor = registry.context_server_descriptor(&key)?;
-                Some(cx.spawn({
+                let Some(descriptor) = registry.context_server_descriptor(&key) else {
+                    return Task::ready(Configuration::NotAvailable(
+                        ContextServerId(key),
+                        repository.clone(),
+                    ));
+                };
+                cx.spawn({
+                    let repository_url = repository.clone();
                    let worktree_store = worktree_store.clone();
                    async move |_, cx| {
-                        descriptor
+                        let configuration = descriptor
                            .configuration(worktree_store.clone(), &cx)
                            .await
                            .context("Failed to resolve context server configuration")
                            .log_err()
-                            .flatten()
-                            .map(|config| (ContextServerId(key), config))
+                            .flatten();
+
+                        match configuration {
+                            Some(config) => Configuration::Required(
+                                ContextServerId(key),
+                                repository_url,
+                                config,
+                            ),
+                            None => {
+                                Configuration::NotAvailable(ContextServerId(key), repository_url)
+                            }
+                        }
                    }
-                }))
+                })
            }
        })
        .collect::<Vec<_>>();
@@ -91,22 +118,22 @@ fn show_configure_mcp_modal(
    let jsonc_language = language_registry.language_for_name("jsonc");

    cx.spawn_in(window, async move |this, cx| {
-        let descriptors = futures::future::join_all(configuration_tasks).await;
+        let configurations = futures::future::join_all(configuration_tasks).await;
        let jsonc_language = jsonc_language.await.ok();

        this.update_in(cx, |this, window, cx| {
-            let modal = ConfigureContextServerModal::new(
-                descriptors.into_iter().flatten(),
-                context_server_store,
-                jsonc_language,
-                language_registry,
-                cx.entity().downgrade(),
-                window,
-                cx,
-            );
-            if let Some(modal) = modal {
-                this.toggle_modal(window, cx, |_, _| modal);
-            }
+            let workspace = cx.entity().downgrade();
+            this.toggle_modal(window, cx, |window, cx| {
+                ConfigureContextServerModal::new(
+                    configurations.into_iter(),
+                    context_server_store,
+                    jsonc_language,
+                    language_registry,
+                    workspace,
+                    window,
+                    cx,
+                )
+            });
        })
    })
    .detach();
--- 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::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
 use project::{Project, context_server_store::ContextServerStore};
 use ui::IconName;

@@ -72,9 +72,10 @@ impl Tool for ContextServerTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _messages: &[LanguageModelRequestMessage],
+        _request: Arc<LanguageModelRequest>,
        _project: Entity<Project>,
        _action_log: Entity<ActionLog>,
+        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -115,7 +116,7 @@ impl Tool for ContextServerTool {
                        }
                    }
                }
-                Ok(result)
+                Ok(result.into())
            })
            .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, AssistantPanel, FocusDown, FocusLeft, FocusRight, FocusUp,
+    AcceptSuggestedContext, AgentPanel, FocusDown, FocusLeft, FocusRight, FocusUp,
    RemoveAllContext, RemoveFocusedContext, ToggleContextPicker,
 };

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

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

        if let Some(active_thread) = panel.active_thread() {
            let weak_active_thread = active_thread.downgrade();
@@ -160,7 +160,7 @@ impl ContextStrip {
            }

            Some(SuggestedContext::Thread {
-                name: active_thread.summary_or_default(),
+                name: active_thread.summary().or_default(),
                thread: weak_active_thread,
            })
        } else if let Some(active_context_editor) = panel.active_context_editor() {
@@ -174,7 +174,7 @@ impl ContextStrip {
            }

            Some(SuggestedContext::TextThread {
-                name: context.summary_or_default(),
+                name: context.summary().or_default(),
                context: weak_context,
            })
        } else {
@@ -420,12 +420,25 @@ impl Render for ContextStrip {
            })
            .child(
                PopoverMenu::new("context-picker")
-                    .menu(move |window, cx| {
-                        context_picker.update(cx, |this, cx| {
-                            this.init(window, cx);
-                        });
+                    .menu({
+                        let context_picker = context_picker.clone();
+                        move |window, cx| {
+                            context_picker.update(cx, |this, cx| {
+                                this.init(window, cx);
+                            });

-                        Some(context_picker.clone())
+                            Some(context_picker.clone())
+                        }
+                    })
+                    .on_open({
+                        let context_picker = context_picker.downgrade();
+                        Rc::new(move |window, cx| {
+                            context_picker
+                                .update(cx, |context_picker, cx| {
+                                    context_picker.select_first(window, cx);
+                                })
+                                .ok();
+                        })
                    })
                    .trigger_with_tooltip(
                        IconButton::new("add-context", IconName::Plus)
--- a/crates/agent/src/history_store.rs
+++ b/crates/agent/src/history_store.rs
@@ -1,4 +1,4 @@
-use std::{collections::VecDeque, path::Path};
+use std::{collections::VecDeque, path::Path, sync::Arc};

 use anyhow::{Context as _, anyhow};
 use assistant_context_editor::{AssistantContext, SavedContextMetadata};
@@ -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};
+use ui::{App, SharedString, Window};
 use util::ResultExt as _;

 use crate::{
@@ -34,6 +34,20 @@ impl HistoryEntry {
            HistoryEntry::Context(context) => context.mtime.to_utc(),
        }
    }
+
+    pub fn id(&self) -> HistoryEntryId {
+        match self {
+            HistoryEntry::Thread(thread) => HistoryEntryId::Thread(thread.id.clone()),
+            HistoryEntry::Context(context) => HistoryEntryId::Context(context.path.clone()),
+        }
+    }
+}
+
+/// Generic identifier for a history entry.
+#[derive(Clone, PartialEq, Eq)]
+pub enum HistoryEntryId {
+    Thread(ThreadId),
+    Context(Arc<Path>),
 }

 #[derive(Clone, Debug)]
@@ -57,8 +71,8 @@ impl Eq for RecentEntry {}
 impl RecentEntry {
    pub(crate) fn summary(&self, cx: &App) -> SharedString {
        match self {
-            RecentEntry::Thread(_, thread) => thread.read(cx).summary_or_default(),
-            RecentEntry::Context(context) => context.read(cx).summary_or_default(),
+            RecentEntry::Thread(_, thread) => thread.read(cx).summary().or_default(),
+            RecentEntry::Context(context) => context.read(cx).summary().or_default(),
        }
    }
 }
@@ -82,6 +96,7 @@ 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![
@@ -89,55 +104,62 @@ impl HistoryStore {
            cx.observe(&context_store, |_, _, cx| cx.notify()),
        ];

-        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
-                    .context("reading persisted agent panel navigation history")?;
-                let entries = serde_json::from_str::<Vec<SerializedRecentEntry>>(&contents)
-                    .context("deserializing persisted agent panel navigation history")?
-                    .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<_>>();
+        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<_>>();

-                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();

-                anyhow::Ok(())
-            }
-        })
-        .detach_and_log_err(cx);
+                    Some(())
+                }
+            })
+            .detach();

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

-use crate::AssistantPanel;
+use crate::AgentPanel;
 use crate::buffer_codegen::{BufferCodegen, CodegenAlternative, CodegenEvent};
 use crate::context_store::ContextStore;
 use crate::inline_prompt_editor::{CodegenStatus, InlineAssistId, PromptEditor, PromptEditorEvent};
@@ -66,15 +65,6 @@ 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();
 }
@@ -97,7 +87,6 @@ pub struct InlineAssistant {
    prompt_builder: Arc<PromptBuilder>,
    telemetry: Arc<Telemetry>,
    fs: Arc<dyn Fs>,
-    is_assistant2_enabled: bool,
 }

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

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

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

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

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

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

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

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

-        let context_editor = assistant_panel
+        let context_editor = agent_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::assistant_model_selector::{AssistantModelSelector, ModelType};
+use crate::agent_model_selector::{AgentModelSelector, 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<AssistantModelSelector>,
+    model_selector: Entity<AgentModelSelector>,
    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 assistant_panel_keybinding =
+        let agent_panel_keybinding =
            ui::text_for_action(&zed_actions::assistant::ToggleFocus, window, cx)
                .map(|keybinding| format!("{keybinding} to chat ― "))
                .unwrap_or_default();

-        format!("{action}… ({assistant_panel_keybinding}↓↑ for history)")
+        format!("{action}… ({agent_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| {
-                AssistantModelSelector::new(
+                AgentModelSelector::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| {
-                AssistantModelSelector::new(
+                AgentModelSelector::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
@@ -1,13 +1,14 @@
 use std::collections::BTreeMap;
 use std::sync::Arc;

-use crate::assistant_model_selector::{AssistantModelSelector, ModelType};
+use crate::agent_model_selector::{AgentModelSelector, 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};
@@ -16,7 +17,6 @@ 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;
@@ -26,7 +26,10 @@ use gpui::{
    Task, TextStyle, WeakEntity, linear_color_stop, linear_gradient, point, pulsating_between,
 };
 use language::{Buffer, Language};
-use language_model::{ConfiguredModel, LanguageModelRequestMessage, MessageContent, RequestUsage};
+use language_model::{
+    ConfiguredModel, LanguageModelRequestMessage, MessageContent, RequestUsage,
+    ZED_CLOUD_PROVIDER_ID,
+};
 use language_model_selector::ToggleModelSelector;
 use multi_buffer;
 use project::Project;
@@ -35,11 +38,9 @@ use proto::Plan;
 use settings::Settings;
 use std::time::Duration;
 use theme::ThemeSettings;
-use ui::{Disclosure, DocumentationSide, KeyBinding, PopoverMenuHandle, Tooltip, prelude::*};
+use ui::{Disclosure, 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;
@@ -64,7 +65,7 @@ pub struct MessageEditor {
    prompt_store: Option<Entity<PromptStore>>,
    context_strip: Entity<ContextStrip>,
    context_picker_menu_handle: PopoverMenuHandle<ContextPicker>,
-    model_selector: Entity<AssistantModelSelector>,
+    model_selector: Entity<AgentModelSelector>,
    last_loaded_context: Option<ContextLoadResult>,
    load_context_task: Option<Shared<Task<()>>>,
    profile_selector: Entity<ProfileSelector>,
@@ -131,14 +132,6 @@ 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>,
@@ -149,7 +142,6 @@ 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 {
@@ -197,7 +189,7 @@ impl MessageEditor {
        ];

        let model_selector = cx.new(|cx| {
-            AssistantModelSelector::new(
+            AgentModelSelector::new(
                fs.clone(),
                model_selector_menu_handle,
                editor.focus_handle(cx),
@@ -207,6 +199,16 @@ impl MessageEditor {
            )
        });

+        let profile_selector = cx.new(|cx| {
+            ProfileSelector::new(
+                fs,
+                thread.clone(),
+                thread_store,
+                editor.focus_handle(cx),
+                cx,
+            )
+        });
+
        Self {
            editor: editor.clone(),
            project: thread.read(cx).project().clone(),
@@ -223,15 +225,7 @@ impl MessageEditor {
            model_selector,
            edits_expanded: false,
            editor_is_expanded: false,
-            profile_selector: cx.new(|cx| {
-                ProfileSelector::new(
-                    fs,
-                    thread_store,
-                    editor.focus_handle(cx),
-                    documentation_side(dock_position),
-                    cx,
-                )
-            }),
+            profile_selector,
            last_estimated_token_count: None,
            update_token_count_task: None,
            _subscriptions: subscriptions,
@@ -312,6 +306,10 @@ 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
@@ -457,10 +455,6 @@ 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() {
@@ -635,7 +629,7 @@ impl MessageEditor {
                        this.h(vh(0.8, window)).justify_between()
                    })
                    .child(
-                        div()
+                        v_flex()
                            .min_h_16()
                            .when(is_editor_expanded, |this| this.h_full())
                            .child({
@@ -1067,7 +1061,14 @@ impl MessageEditor {
    }

    fn render_usage_callout(&self, line_height: Pixels, cx: &mut Context<Self>) -> Option<Div> {
-        if !cx.has_flag::<NewBillingFeatureFlag>() {
+        let is_using_zed_provider = self
+            .thread
+            .read(cx)
+            .configured_model()
+            .map_or(false, |model| {
+                model.provider.id().0 == ZED_CLOUD_PROVIDER_ID
+            });
+        if !is_using_zed_provider {
            return None;
        }

@@ -1121,10 +1122,6 @@ 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 {
@@ -1254,8 +1251,9 @@ impl MessageEditor {
                        mode: None,
                        messages: vec![request_message],
                        tools: vec![],
+                        tool_choice: None,
                        stop: vec![],
-                        temperature: None,
+                        temperature: AssistantSettings::temperature_for_model(&model.model, cx),
                    };

                    Some(model.model.count_tokens(request, cx))
@@ -1278,12 +1276,6 @@ 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(
@@ -1457,7 +1449,6 @@ 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
@@ -1,7 +1,8 @@
 use std::sync::Arc;

 use assistant_settings::{
-    AgentProfile, AgentProfileId, AssistantSettings, GroupedAgentProfiles, builtin_profiles,
+    AgentProfile, AgentProfileId, AssistantDockPosition, AssistantSettings, GroupedAgentProfiles,
+    builtin_profiles,
 };
 use fs::Fs;
 use gpui::{Action, Entity, FocusHandle, Subscription, WeakEntity, prelude::*};
@@ -13,24 +14,24 @@ use ui::{
 };
 use util::ResultExt as _;

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

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

 impl ProfileSelector {
    pub fn new(
        fs: Arc<dyn Fs>,
+        thread: Entity<Thread>,
        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| {
@@ -40,19 +41,14 @@ impl ProfileSelector {
        Self {
            profiles: GroupedAgentProfiles::from_settings(AssistantSettings::get_global(cx)),
            fs,
+            thread,
            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()
    }
@@ -69,8 +65,12 @@ 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));
+                menu = menu.item(self.menu_entry_for_profile(
+                    profile_id.clone(),
+                    profile,
+                    settings,
+                    cx,
+                ));
            }

            if !self.profiles.custom.is_empty() {
@@ -80,6 +80,7 @@ impl ProfileSelector {
                        profile_id.clone(),
                        profile,
                        settings,
+                        cx,
                    ));
                }
            }
@@ -100,6 +101,7 @@ 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."),
@@ -112,7 +114,7 @@ impl ProfileSelector {
            .toggleable(IconPosition::End, profile_id == settings.default_profile);

        let entry = if let Some(doc_text) = documentation {
-            entry.documentation_aside(self.documentation_side, move |_| {
+            entry.documentation_aside(documentation_side(settings.dock), move |_| {
                Label::new(doc_text).into_any_element()
            })
        } else {
@@ -151,51 +153,67 @@ impl Render for ProfileSelector {
            .map(|profile| profile.name.clone())
            .unwrap_or_else(|| "Unknown".into());

-        let model_registry = LanguageModelRegistry::read_global(cx);
-        let supports_tools = model_registry
-            .default_model()
-            .map_or(false, |default| default.model.supports_tools());
+        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 this = cx.entity().clone();
-        let focus_handle = self.focus_handle.clone();
-
-        let trigger_button = if supports_tools {
-            Button::new("profile-selector-model", selected_profile)
+        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)
                .label_size(LabelSize::Small)
                .color(Color::Muted)
                .icon(IconName::ChevronDown)
                .icon_size(IconSize::XSmall)
                .icon_position(IconPosition::End)
-                .icon_color(Color::Muted)
+                .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()
        } else {
-            Button::new("tools-not-supported-button", "No Tools")
+            Button::new("tools-not-supported-button", "Tools Unsupported")
                .disabled(true)
                .label_size(LabelSize::Small)
                .color(Color::Muted)
-                .tooltip(Tooltip::text("The current model does not support tools."))
-        };
-
-        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)))
-            })
+                .tooltip(Tooltip::text("This model does not support tools."))
+                .into_any_element()
+        }
+    }
+}
+
+fn documentation_side(position: AssistantDockPosition) -> DocumentationSide {
+    match position {
+        AssistantDockPosition::Left => DocumentationSide::Right,
+        AssistantDockPosition::Bottom => DocumentationSide::Left,
+        AssistantDockPosition::Right => DocumentationSide::Left,
    }
 }
--- a/crates/assistant/src/slash_command_settings.rs
+++ b/crates/assistant/src/slash_command_settings.rs
--- a/crates/agent/src/terminal_inline_assistant.rs
+++ b/crates/agent/src/terminal_inline_assistant.rs
@@ -6,6 +6,7 @@ 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};
@@ -266,6 +267,12 @@ 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,
@@ -286,8 +293,9 @@ impl TerminalInlineAssistant {
                mode: None,
                messages: vec![request_message],
                tools: Vec::new(),
+                tool_choice: None,
                stop: Vec::new(),
-                temperature: None,
+                temperature,
            }
        }))
    }
--- 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::AssistantSettings;
+use assistant_settings::{AssistantSettings, CompletionMode};
 use assistant_tool::{ActionLog, AnyToolCard, Tool, ToolWorkingSet};
 use chrono::{DateTime, Utc};
 use collections::HashMap;
@@ -35,9 +35,10 @@ use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use settings::Settings;
 use thiserror::Error;
-use util::{ResultExt as _, TryFutureExt as _, post_inc};
+use ui::Window;
+use util::{ResultExt as _, post_inc};
 use uuid::Uuid;
-use zed_llm_client::{CompletionMode, CompletionRequestStatus};
+use zed_llm_client::CompletionRequestStatus;

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

-#[derive(Default)]
+#[derive(Default, Debug)]
 pub struct TotalTokenUsage {
    pub total: usize,
    pub max: usize,
@@ -312,14 +313,6 @@ 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,
@@ -331,12 +324,12 @@ pub enum QueueState {
 pub struct Thread {
    id: ThreadId,
    updated_at: DateTime<Utc>,
-    summary: Option<SharedString>,
+    summary: ThreadSummary,
    pending_summary: Task<Option<()>>,
    detailed_summary_task: Task<Option<()>>,
    detailed_summary_tx: postage::watch::Sender<DetailedSummaryState>,
    detailed_summary_rx: postage::watch::Receiver<DetailedSummaryState>,
-    completion_mode: CompletionMode,
+    completion_mode: assistant_settings::CompletionMode,
    messages: Vec<Message>,
    next_message_id: MessageId,
    last_prompt_id: PromptId,
@@ -368,6 +361,33 @@ pub struct Thread {
    configured_model: Option<ConfiguredModel>,
 }

+#[derive(Clone, Debug, PartialEq, Eq)]
+pub enum ThreadSummary {
+    Pending,
+    Generating,
+    Ready(SharedString),
+    Error,
+}
+
+impl ThreadSummary {
+    pub const DEFAULT: SharedString = SharedString::new_static("New Thread");
+
+    pub fn or_default(&self) -> SharedString {
+        self.unwrap_or(Self::DEFAULT)
+    }
+
+    pub fn unwrap_or(&self, message: impl Into<SharedString>) -> SharedString {
+        self.ready().unwrap_or_else(|| message.into())
+    }
+
+    pub fn ready(&self) -> Option<SharedString> {
+        match self {
+            ThreadSummary::Ready(summary) => Some(summary.clone()),
+            ThreadSummary::Pending | ThreadSummary::Generating | ThreadSummary::Error => None,
+        }
+    }
+}
+
 #[derive(Debug, Clone, Serialize, Deserialize)]
 pub struct ExceededWindowError {
    /// Model used when last message exceeded context window
@@ -390,12 +410,12 @@ impl Thread {
        Self {
            id: ThreadId::new(),
            updated_at: Utc::now(),
-            summary: None,
+            summary: ThreadSummary::Pending,
            pending_summary: Task::ready(None),
            detailed_summary_task: Task::ready(None),
            detailed_summary_tx,
            detailed_summary_rx,
-            completion_mode: default_completion_mode(cx),
+            completion_mode: AssistantSettings::get_global(cx).preferred_completion_mode,
            messages: Vec::new(),
            next_message_id: MessageId(0),
            last_prompt_id: PromptId::new(),
@@ -438,6 +458,7 @@ impl Thread {
        tools: Entity<ToolWorkingSet>,
        prompt_builder: Arc<PromptBuilder>,
        project_context: SharedProjectContext,
+        window: Option<&mut Window>, // None in headless mode
        cx: &mut Context<Self>,
    ) -> Self {
        let next_message_id = MessageId(
@@ -447,7 +468,13 @@ impl Thread {
                .map(|message| message.id.0 + 1)
                .unwrap_or(0),
        );
-        let tool_use = ToolUseState::from_serialized_messages(tools.clone(), &serialized.messages);
+        let tool_use = ToolUseState::from_serialized_messages(
+            tools.clone(),
+            &serialized.messages,
+            project.clone(),
+            window,
+            cx,
+        );
        let (detailed_summary_tx, detailed_summary_rx) =
            postage::watch::channel_with(serialized.detailed_summary_state);

@@ -464,15 +491,19 @@ impl Thread {
                .or_else(|| registry.default_model())
        });

+        let completion_mode = serialized
+            .completion_mode
+            .unwrap_or_else(|| AssistantSettings::get_global(cx).preferred_completion_mode);
+
        Self {
            id,
            updated_at: serialized.updated_at,
-            summary: Some(serialized.summary),
+            summary: ThreadSummary::Ready(serialized.summary),
            pending_summary: Task::ready(None),
            detailed_summary_task: Task::ready(None),
            detailed_summary_tx,
            detailed_summary_rx,
-            completion_mode: default_completion_mode(cx),
+            completion_mode,
            messages: serialized
                .messages
                .into_iter()
@@ -568,10 +599,6 @@ impl Thread {
        self.last_prompt_id = PromptId::new();
    }

-    pub fn summary(&self) -> Option<SharedString> {
-        self.summary.clone()
-    }
-
    pub fn project_context(&self) -> SharedProjectContext {
        self.project_context.clone()
    }
@@ -592,26 +619,25 @@ impl Thread {
        cx.notify();
    }

-    pub const DEFAULT_SUMMARY: SharedString = SharedString::new_static("New Thread");
-
-    pub fn summary_or_default(&self) -> SharedString {
-        self.summary.clone().unwrap_or(Self::DEFAULT_SUMMARY)
+    pub fn summary(&self) -> &ThreadSummary {
+        &self.summary
    }

    pub fn set_summary(&mut self, new_summary: impl Into<SharedString>, cx: &mut Context<Self>) {
-        let Some(current_summary) = &self.summary else {
-            // Don't allow setting summary until generated
-            return;
+        let current_summary = match &self.summary {
+            ThreadSummary::Pending | ThreadSummary::Generating => return,
+            ThreadSummary::Ready(summary) => summary,
+            ThreadSummary::Error => &ThreadSummary::DEFAULT,
        };

        let mut new_summary = new_summary.into();

        if new_summary.is_empty() {
-            new_summary = Self::DEFAULT_SUMMARY;
+            new_summary = ThreadSummary::DEFAULT;
        }

        if current_summary != &new_summary {
-            self.summary = Some(new_summary);
+            self.summary = ThreadSummary::Ready(new_summary);
            cx.emit(ThreadEvent::SummaryChanged);
        }
    }
@@ -1025,7 +1051,7 @@ impl Thread {
            let initial_project_snapshot = initial_project_snapshot.await;
            this.read_with(cx, |this, cx| SerializedThread {
                version: SerializedThread::VERSION.to_string(),
-                summary: this.summary_or_default(),
+                summary: this.summary().or_default(),
                updated_at: this.updated_at(),
                messages: this
                    .messages()
@@ -1068,6 +1094,7 @@ 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(),
@@ -1095,6 +1122,7 @@ impl Thread {
                        provider: model.provider.id().0.to_string(),
                        model: model.model.id().0.to_string(),
                    }),
+                completion_mode: Some(this.completion_mode),
            })
        })
    }
@@ -1147,8 +1175,9 @@ impl Thread {
            mode: None,
            messages: vec![],
            tools: Vec::new(),
+            tool_choice: None,
            stop: Vec::new(),
-            temperature: None,
+            temperature: AssistantSettings::temperature_for_model(&model, cx),
        };

        let available_tools = self.available_tools(cx, model.clone());
@@ -1191,6 +1220,7 @@ impl Thread {
            }));
        }

+        let mut message_ix_to_cache = None;
        for message in &self.messages {
            let mut request_message = LanguageModelRequestMessage {
                role: message.role,
@@ -1227,42 +1257,86 @@ impl Thread {
                };
            }

-            self.tool_use
-                .attach_tool_uses(message.id, &mut request_message);
+            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
+                    );
+                }
+            }

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

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

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

        request
    }

-    fn to_summarize_request(&self, added_user_message: String) -> LanguageModelRequest {
+    fn to_summarize_request(
+        &self,
+        model: &Arc<dyn LanguageModel>,
+        added_user_message: String,
+        cx: &App,
+    ) -> 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: None,
+            temperature: AssistantSettings::temperature_for_model(model, cx),
        };

        for message in &self.messages {
@@ -1535,9 +1609,9 @@ impl Thread {
                                            completion.queue_state =  QueueState::Started;
                                        }
                                        CompletionRequestStatus::Failed {
-                                            code, message
+                                            code, message, request_id
                                        } => {
-                                            return Err(anyhow!("completion request failed. code: {code}, message: {message}"));
+                                            return Err(anyhow!("completion request failed. request_id: {request_id}, code: {code}, message: {message}"));
                                        }
                                        CompletionRequestStatus::UsageUpdated {
                                            amount, limit
@@ -1573,7 +1647,7 @@ impl Thread {

                    // If there is a response without tool use, summarize the message. Otherwise,
                    // allow two tool uses before summarizing.
-                    if thread.summary.is_none()
+                    if matches!(thread.summary, ThreadSummary::Pending)
                        && thread.messages.len() >= 2
                        && (!thread.has_pending_tool_uses() || thread.messages.len() >= 6)
                    {
@@ -1687,6 +1761,7 @@ impl Thread {

    pub fn summarize(&mut self, cx: &mut Context<Self>) {
        let Some(model) = LanguageModelRegistry::read_global(cx).thread_summary_model() else {
+            println!("No thread summary model");
            return;
        };

@@ -1699,15 +1774,19 @@ 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(added_user_message.into());
+        let request = self.to_summarize_request(&model.model, added_user_message.into(), cx);
+
+        self.summary = ThreadSummary::Generating;

        self.pending_summary = cx.spawn(async move |this, cx| {
-            async move {
+            let result = async {
                let mut messages = model.model.stream_completion(request, &cx).await?;

                let mut new_summary = String::new();
                while let Some(event) = messages.next().await {
-                    let event = event?;
+                    let Ok(event) = event else {
+                        continue;
+                    };
                    let text = match event {
                        LanguageModelCompletionEvent::Text(text) => text,
                        LanguageModelCompletionEvent::StatusUpdate(
@@ -1733,18 +1812,29 @@ impl Thread {
                    }
                }

-                this.update(cx, |this, cx| {
-                    if !new_summary.is_empty() {
-                        this.summary = Some(new_summary.into());
-                    }
-
-                    cx.emit(ThreadEvent::SummaryGenerated);
-                })?;
-
-                anyhow::Ok(())
+                anyhow::Ok(new_summary)
            }
-            .log_err()
-            .await
+            .await;
+
+            this.update(cx, |this, cx| {
+                match result {
+                    Ok(new_summary) => {
+                        if new_summary.is_empty() {
+                            this.summary = ThreadSummary::Error;
+                        } else {
+                            this.summary = ThreadSummary::Ready(new_summary.into());
+                        }
+                    }
+                    Err(err) => {
+                        this.summary = ThreadSummary::Error;
+                        log::error!("Failed to generate thread summary: {}", err);
+                    }
+                }
+                cx.emit(ThreadEvent::SummaryGenerated);
+            })
+            .log_err()?;
+
+            Some(())
        });
    }

@@ -1785,7 +1875,7 @@ 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(added_user_message.into());
+        let request = self.to_summarize_request(&model, added_user_message.into(), cx);

        *self.detailed_summary_tx.borrow_mut() = DetailedSummaryState::Generating {
            message_id: last_message_id,
@@ -1877,8 +1967,7 @@ impl Thread {
        model: Arc<dyn LanguageModel>,
    ) -> Vec<PendingToolUse> {
        self.auto_capture_telemetry(cx);
-        let request = self.to_completion_request(model, cx);
-        let messages = Arc::new(request.messages);
+        let request = Arc::new(self.to_completion_request(model.clone(), cx));
        let pending_tool_uses = self
            .tool_use
            .pending_tool_uses()
@@ -1896,7 +1985,7 @@ impl Thread {
                        tool_use.id.clone(),
                        tool_use.ui_text.clone(),
                        tool_use.input.clone(),
-                        messages.clone(),
+                        request.clone(),
                        tool,
                    );
                    cx.emit(ThreadEvent::ToolConfirmationNeeded);
@@ -1905,8 +1994,9 @@ impl Thread {
                        tool_use.id.clone(),
                        tool_use.ui_text.clone(),
                        tool_use.input.clone(),
-                        &messages,
+                        request.clone(),
                        tool,
+                        model.clone(),
                        window,
                        cx,
                    );
@@ -1999,12 +2089,14 @@ impl Thread {
        tool_use_id: LanguageModelToolUseId,
        ui_text: impl Into<SharedString>,
        input: serde_json::Value,
-        messages: &[LanguageModelRequestMessage],
+        request: Arc<LanguageModelRequest>,
        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(), messages, input, tool, window, cx);
+        let task =
+            self.spawn_tool_use(tool_use_id.clone(), request, input, tool, model, window, cx);
        self.tool_use
            .run_pending_tool(tool_use_id, ui_text.into(), task);
    }
@@ -2012,9 +2104,10 @@ impl Thread {
    fn spawn_tool_use(
        &mut self,
        tool_use_id: LanguageModelToolUseId,
-        messages: &[LanguageModelRequestMessage],
+        request: Arc<LanguageModelRequest>,
        input: serde_json::Value,
        tool: Arc<dyn Tool>,
+        model: Arc<dyn LanguageModel>,
        window: Option<AnyWindowHandle>,
        cx: &mut Context<Thread>,
    ) -> Task<()> {
@@ -2025,9 +2118,10 @@ impl Thread {
        } else {
            tool.run(
                input,
-                messages,
+                request,
                self.project.clone(),
                self.action_log.clone(),
+                model,
                window,
                cx,
            )
@@ -2307,7 +2401,7 @@ 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 {
@@ -2350,9 +2444,8 @@ impl Thread {
    pub fn to_markdown(&self, cx: &App) -> Result<String> {
        let mut markdown = Vec::new();

-        if let Some(summary) = self.summary() {
-            writeln!(markdown, "# {summary}\n")?;
-        };
+        let summary = self.summary().or_default();
+        writeln!(markdown, "# {summary}\n")?;

        for message in self.messages() {
            writeln!(
@@ -2410,6 +2503,13 @@ 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)?
+                    )?;
+                }
            }
        }

@@ -2658,11 +2758,11 @@ struct PendingCompletion {
 mod tests {
    use super::*;
    use crate::{ThreadStore, context::load_context, context_store::ContextStore, thread_store};
-    use assistant_settings::AssistantSettings;
+    use assistant_settings::{AssistantSettings, LanguageModelParameters};
    use assistant_tool::ToolRegistry;
    use editor::EditorSettings;
    use gpui::TestAppContext;
-    use language_model::fake_provider::FakeLanguageModel;
+    use language_model::fake_provider::{FakeLanguageModel, FakeLanguageModelProvider};
    use project::{FakeFs, Project};
    use prompt_store::PromptBuilder;
    use serde_json::json;
@@ -3069,6 +3169,290 @@ 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);
+    }
+
+    #[gpui::test]
+    async fn test_thread_summary(cx: &mut TestAppContext) {
+        init_test_settings(cx);
+
+        let project = create_test_project(cx, json!({})).await;
+
+        let (_, _thread_store, thread, _context_store, model) =
+            setup_test_environment(cx, project.clone()).await;
+
+        // Initial state should be pending
+        thread.read_with(cx, |thread, _| {
+            assert!(matches!(thread.summary(), ThreadSummary::Pending));
+            assert_eq!(thread.summary().or_default(), ThreadSummary::DEFAULT);
+        });
+
+        // Manually setting the summary should not be allowed in this state
+        thread.update(cx, |thread, cx| {
+            thread.set_summary("This should not work", cx);
+        });
+
+        thread.read_with(cx, |thread, _| {
+            assert!(matches!(thread.summary(), ThreadSummary::Pending));
+        });
+
+        // Send a message
+        thread.update(cx, |thread, cx| {
+            thread.insert_user_message("Hi!", ContextLoadResult::default(), None, vec![], cx);
+            thread.send_to_model(model.clone(), None, cx);
+        });
+
+        let fake_model = model.as_fake();
+        simulate_successful_response(&fake_model, cx);
+
+        // Should start generating summary when there are >= 2 messages
+        thread.read_with(cx, |thread, _| {
+            assert_eq!(*thread.summary(), ThreadSummary::Generating);
+        });
+
+        // Should not be able to set the summary while generating
+        thread.update(cx, |thread, cx| {
+            thread.set_summary("This should not work either", cx);
+        });
+
+        thread.read_with(cx, |thread, _| {
+            assert!(matches!(thread.summary(), ThreadSummary::Generating));
+            assert_eq!(thread.summary().or_default(), ThreadSummary::DEFAULT);
+        });
+
+        cx.run_until_parked();
+        fake_model.stream_last_completion_response("Brief".into());
+        fake_model.stream_last_completion_response(" Introduction".into());
+        fake_model.end_last_completion_stream();
+        cx.run_until_parked();
+
+        // Summary should be set
+        thread.read_with(cx, |thread, _| {
+            assert!(matches!(thread.summary(), ThreadSummary::Ready(_)));
+            assert_eq!(thread.summary().or_default(), "Brief Introduction");
+        });
+
+        // Now we should be able to set a summary
+        thread.update(cx, |thread, cx| {
+            thread.set_summary("Brief Intro", cx);
+        });
+
+        thread.read_with(cx, |thread, _| {
+            assert_eq!(thread.summary().or_default(), "Brief Intro");
+        });
+
+        // Test setting an empty summary (should default to DEFAULT)
+        thread.update(cx, |thread, cx| {
+            thread.set_summary("", cx);
+        });
+
+        thread.read_with(cx, |thread, _| {
+            assert!(matches!(thread.summary(), ThreadSummary::Ready(_)));
+            assert_eq!(thread.summary().or_default(), ThreadSummary::DEFAULT);
+        });
+    }
+
+    #[gpui::test]
+    async fn test_thread_summary_error_set_manually(cx: &mut TestAppContext) {
+        init_test_settings(cx);
+
+        let project = create_test_project(cx, json!({})).await;
+
+        let (_, _thread_store, thread, _context_store, model) =
+            setup_test_environment(cx, project.clone()).await;
+
+        test_summarize_error(&model, &thread, cx);
+
+        // Now we should be able to set a summary
+        thread.update(cx, |thread, cx| {
+            thread.set_summary("Brief Intro", cx);
+        });
+
+        thread.read_with(cx, |thread, _| {
+            assert!(matches!(thread.summary(), ThreadSummary::Ready(_)));
+            assert_eq!(thread.summary().or_default(), "Brief Intro");
+        });
+    }
+
+    #[gpui::test]
+    async fn test_thread_summary_error_retry(cx: &mut TestAppContext) {
+        init_test_settings(cx);
+
+        let project = create_test_project(cx, json!({})).await;
+
+        let (_, _thread_store, thread, _context_store, model) =
+            setup_test_environment(cx, project.clone()).await;
+
+        test_summarize_error(&model, &thread, cx);
+
+        // Sending another message should not trigger another summarize request
+        thread.update(cx, |thread, cx| {
+            thread.insert_user_message(
+                "How are you?",
+                ContextLoadResult::default(),
+                None,
+                vec![],
+                cx,
+            );
+            thread.send_to_model(model.clone(), None, cx);
+        });
+
+        let fake_model = model.as_fake();
+        simulate_successful_response(&fake_model, cx);
+
+        thread.read_with(cx, |thread, _| {
+            // State is still Error, not Generating
+            assert!(matches!(thread.summary(), ThreadSummary::Error));
+        });
+
+        // But the summarize request can be invoked manually
+        thread.update(cx, |thread, cx| {
+            thread.summarize(cx);
+        });
+
+        thread.read_with(cx, |thread, _| {
+            assert!(matches!(thread.summary(), ThreadSummary::Generating));
+        });
+
+        cx.run_until_parked();
+        fake_model.stream_last_completion_response("A successful summary".into());
+        fake_model.end_last_completion_stream();
+        cx.run_until_parked();
+
+        thread.read_with(cx, |thread, _| {
+            assert!(matches!(thread.summary(), ThreadSummary::Ready(_)));
+            assert_eq!(thread.summary().or_default(), "A successful summary");
+        });
+    }
+
+    fn test_summarize_error(
+        model: &Arc<dyn LanguageModel>,
+        thread: &Entity<Thread>,
+        cx: &mut TestAppContext,
+    ) {
+        thread.update(cx, |thread, cx| {
+            thread.insert_user_message("Hi!", ContextLoadResult::default(), None, vec![], cx);
+            thread.send_to_model(model.clone(), None, cx);
+        });
+
+        let fake_model = model.as_fake();
+        simulate_successful_response(&fake_model, cx);
+
+        thread.read_with(cx, |thread, _| {
+            assert!(matches!(thread.summary(), ThreadSummary::Generating));
+            assert_eq!(thread.summary().or_default(), ThreadSummary::DEFAULT);
+        });
+
+        // Simulate summary request ending
+        cx.run_until_parked();
+        fake_model.end_last_completion_stream();
+        cx.run_until_parked();
+
+        // State is set to Error and default message
+        thread.read_with(cx, |thread, _| {
+            assert!(matches!(thread.summary(), ThreadSummary::Error));
+            assert_eq!(thread.summary().or_default(), ThreadSummary::DEFAULT);
+        });
+    }
+
+    fn simulate_successful_response(fake_model: &FakeLanguageModel, cx: &mut TestAppContext) {
+        cx.run_until_parked();
+        fake_model.stream_last_completion_response("Assistant response".into());
+        fake_model.end_last_completion_stream();
+        cx.run_until_parked();
+    }
+
    fn init_test_settings(cx: &mut TestAppContext) {
        cx.update(|cx| {
            let settings_store = SettingsStore::test(cx);
@@ -3125,9 +3509,29 @@ fn main() {{
        let thread = thread_store.update(cx, |store, cx| store.create_thread(cx));
        let context_store = cx.new(|_cx| ContextStore::new(project.downgrade(), None));

-        let model = FakeLanguageModel::default();
+        let provider = Arc::new(FakeLanguageModelProvider);
+        let model = provider.test_model();
        let model: Arc<dyn LanguageModel> = Arc::new(model);

+        cx.update(|_, cx| {
+            LanguageModelRegistry::global(cx).update(cx, |registry, cx| {
+                registry.set_default_model(
+                    Some(ConfiguredModel {
+                        provider: provider.clone(),
+                        model: model.clone(),
+                    }),
+                    cx,
+                );
+                registry.set_thread_summary_model(
+                    Some(ConfiguredModel {
+                        provider,
+                        model: model.clone(),
+                    }),
+                    cx,
+                );
+            })
+        });
+
        (workspace, thread_store, thread, context_store, model)
    }

--- a/crates/agent/src/thread_history.rs
+++ b/crates/agent/src/thread_history.rs
--- 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};
+use assistant_settings::{AgentProfile, AgentProfileId, AssistantSettings, CompletionMode};
 use assistant_tool::{ToolId, ToolSource, ToolWorkingSet};
 use chrono::{DateTime, Utc};
 use collections::HashMap;
@@ -28,6 +28,7 @@ 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;
@@ -385,21 +386,42 @@ impl ThreadStore {
        })
    }

+    pub fn create_thread_from_serialized(
+        &mut self,
+        serialized: SerializedThread,
+        cx: &mut Context<Self>,
+    ) -> Entity<Thread> {
+        cx.new(|cx| {
+            Thread::deserialize(
+                ThreadId::new(),
+                serialized,
+                self.project.clone(),
+                self.tools.clone(),
+                self.prompt_builder.clone(),
+                self.project_context.clone(),
+                None,
+                cx,
+            )
+        })
+    }
+
    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);
-        cx.spawn(async move |this, cx| {
+        let this = cx.weak_entity();
+        window.spawn(cx, async move |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(cx, |this, cx| {
+            let thread = this.update_in(cx, |this, window, cx| {
                cx.new(|cx| {
                    Thread::deserialize(
                        id.clone(),
@@ -408,6 +430,7 @@ impl ThreadStore {
                        this.tools.clone(),
                        this.prompt_builder.clone(),
                        this.project_context.clone(),
+                        Some(window),
                        cx,
                    )
                })
@@ -651,6 +674,8 @@ pub struct SerializedThread {
    pub exceeded_window_error: Option<ExceededWindowError>,
    #[serde(default)]
    pub model: Option<SerializedLanguageModel>,
+    #[serde(default)]
+    pub completion_mode: Option<CompletionMode>,
 }

 #[derive(Serialize, Deserialize, Debug)]
@@ -770,6 +795,7 @@ 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)]
@@ -794,6 +820,7 @@ impl LegacySerializedThread {
            detailed_summary_state: DetailedSummaryState::default(),
            exceeded_window_error: None,
            model: None,
+            completion_mode: None,
        }
    }
 }
--- a/crates/agent/src/tool_use.rs
+++ b/crates/agent/src/tool_use.rs
@@ -1,16 +1,17 @@
 use std::sync::Arc;

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

 use crate::thread::{MessageId, PromptId, ThreadId};
@@ -51,12 +52,19 @@ impl ToolUseState {
    /// Constructs a [`ToolUseState`] from the given list of [`SerializedMessage`]s.
    ///
    /// Accepts a function to filter the tools that should be used to populate the state.
+    ///
+    /// If `window` is `None` (e.g., when in headless mode or when running evals),
+    /// tool cards won't be deserialized
    pub fn from_serialized_messages(
        tools: Entity<ToolWorkingSet>,
        messages: &[SerializedMessage],
+        project: Entity<Project>,
+        window: Option<&mut Window>, // None in headless mode
+        cx: &mut App,
    ) -> Self {
        let mut this = Self::new(tools);
        let mut tool_names_by_id = HashMap::default();
+        let mut window = window;

        for message in messages {
            match message.role {
@@ -93,12 +101,28 @@ impl ToolUseState {
                            this.tool_results.insert(
                                tool_use_id.clone(),
                                LanguageModelToolResult {
-                                    tool_use_id,
+                                    tool_use_id: tool_use_id.clone(),
                                    tool_name: tool_use.clone(),
                                    is_error: tool_result.is_error,
                                    content: tool_result.content.clone(),
+                                    output: tool_result.output.clone(),
                                },
                            );
+
+                            if let Some(window) = &mut window {
+                                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);
+                                        }
+                                    }
+                                }
+                            }
                        }
                    }
                }
@@ -110,20 +134,28 @@ impl ToolUseState {
    }

    pub fn cancel_pending(&mut self) -> Vec<PendingToolUse> {
-        let mut pending_tools = Vec::new();
-        for (tool_use_id, tool_use) in self.pending_tool_uses_by_id.drain() {
-            self.tool_results.insert(
-                tool_use_id.clone(),
-                LanguageModelToolResult {
-                    tool_use_id,
-                    tool_name: tool_use.name.clone(),
-                    content: "Tool canceled by user".into(),
-                    is_error: true,
-                },
-            );
-            pending_tools.push(tool_use.clone());
-        }
-        pending_tools
+        let mut cancelled_tool_uses = Vec::new();
+        self.pending_tool_uses_by_id
+            .retain(|tool_use_id, tool_use| {
+                if matches!(tool_use.status, PendingToolUseStatus::Error { .. }) {
+                    return true;
+                }
+
+                let content = "Tool canceled by user".into();
+                self.tool_results.insert(
+                    tool_use_id.clone(),
+                    LanguageModelToolResult {
+                        tool_use_id: tool_use_id.clone(),
+                        tool_name: tool_use.name.clone(),
+                        content,
+                        output: None,
+                        is_error: true,
+                    },
+                );
+                cancelled_tool_uses.push(tool_use.clone());
+                false
+            });
+        cancelled_tool_uses
    }

    pub fn pending_tool_uses(&self) -> Vec<&PendingToolUse> {
@@ -331,7 +363,7 @@ impl ToolUseState {
        tool_use_id: LanguageModelToolUseId,
        ui_text: impl Into<Arc<str>>,
        input: serde_json::Value,
-        messages: Arc<Vec<LanguageModelRequestMessage>>,
+        request: Arc<LanguageModelRequest>,
        tool: Arc<dyn Tool>,
    ) {
        if let Some(tool_use) = self.pending_tool_uses_by_id.get_mut(&tool_use_id) {
@@ -340,7 +372,7 @@ impl ToolUseState {
            let confirmation = Confirmation {
                tool_use_id,
                input,
-                messages,
+                request,
                tool,
                ui_text,
            };
@@ -352,7 +384,7 @@ impl ToolUseState {
        &mut self,
        tool_use_id: LanguageModelToolUseId,
        tool_name: Arc<str>,
-        output: Result<String>,
+        output: Result<ToolResultOutput>,
        configured_model: Option<&ConfiguredModel>,
    ) -> Option<PendingToolUse> {
        let metadata = self.tool_use_metadata_by_id.remove(&tool_use_id);
@@ -372,7 +404,8 @@ impl ToolUseState {
        );

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

                // Protect from clearly large output
@@ -399,6 +432,7 @@ impl ToolUseState {
                        tool_name,
                        content: tool_result.into(),
                        is_error: false,
+                        output: output.output,
                    },
                );
                self.pending_tool_uses_by_id.remove(&tool_use_id)
@@ -411,6 +445,7 @@ impl ToolUseState {
                        tool_name,
                        content: err.to_string().into(),
                        is_error: true,
+                        output: None,
                    },
                );

@@ -423,71 +458,20 @@ 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_message(
+    pub fn tool_results(
        &self,
        assistant_message_id: MessageId,
-    ) -> 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)
+    ) -> 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)))
    }
 }

@@ -508,7 +492,7 @@ pub struct Confirmation {
    pub tool_use_id: LanguageModelToolUseId,
    pub input: serde_json::Value,
    pub ui_text: Arc<str>,
-    pub messages: Arc<Vec<LanguageModelRequestMessage>>,
+    pub request: Arc<LanguageModelRequest>,
    pub tool: Arc<dyn Tool>,
 }

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

@@ -9,3 +10,4 @@ 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
@@ -0,0 +1,174 @@
+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
@@ -578,6 +578,7 @@ pub enum ToolChoice {
    Auto,
    Any,
    Tool { name: String },
+    None,
 }

 #[derive(Debug, Serialize, Deserialize)]
--- a/crates/assistant/LICENSE-GPL
+++ b/crates/assistant/LICENSE-GPL
--- a/crates/askpass/src/askpass.rs
+++ b/crates/askpass/src/askpass.rs
@@ -167,16 +167,20 @@ fn get_shell_safe_zed_path() -> anyhow::Result<String> {
        .to_string_lossy()
        .to_string();

-    // sanity check on unix systems that the path exists and is executable
-    // todo(windows): implement this check for windows (or just use `is-executable` crate)
-    use std::os::unix::fs::MetadataExt;
-    let metadata = std::fs::metadata(&zed_path)
-        .context("Failed to check metadata of Zed executable path for use in askpass")?;
-    let is_executable = metadata.is_file() && metadata.mode() & 0o111 != 0;
-    anyhow::ensure!(
-        is_executable,
-        "Failed to verify Zed executable path for use in askpass"
-    );
+    // NOTE: this was previously enabled, however, it caused errors when it shouldn't have
+    //       (see https://github.com/zed-industries/zed/issues/29819)
+    //       The zed path failing to execute within the askpass script results in very vague ssh
+    //       authentication failed errors, so this was done to try and surface a better error
+    //
+    // use std::os::unix::fs::MetadataExt;
+    // let metadata = std::fs::metadata(&zed_path)
+    //     .context("Failed to check metadata of Zed executable path for use in askpass")?;
+    // let is_executable = metadata.is_file() && metadata.mode() & 0o111 != 0;
+    // anyhow::ensure!(
+    //     is_executable,
+    //     "Failed to verify Zed executable path for use in askpass"
+    // );
+
    // As of writing, this can only be fail if the path contains a null byte, which shouldn't be possible
    // but shlex has annotated the error as #[non_exhaustive] so we can't make it a compile error if other
    // errors are introduced in the future :(
--- a/crates/assistant/Cargo.toml
+++ b/crates/assistant/Cargo.toml
@@ -1,88 +0,0 @@
-[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/src/assistant_configuration.rs
+++ b/crates/assistant/src/assistant_configuration.rs
@@ -1,199 +0,0 @@
-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/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
@@ -22,7 +22,6 @@ 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/assistant_context_editor.rs
+++ b/crates/assistant_context_editor/src/assistant_context_editor.rs
@@ -9,7 +9,8 @@ mod slash_command_picker;
 use std::sync::Arc;

 use client::Client;
-use gpui::App;
+use gpui::{App, Context};
+use workspace::Workspace;

 pub use crate::context::*;
 pub use crate::context_editor::*;
@@ -18,6 +19,18 @@ pub use crate::context_store::*;
 pub use crate::patch::*;
 pub use crate::slash_command::*;

-pub fn init(client: Arc<Client>, _cx: &mut App) {
+pub fn init(client: Arc<Client>, cx: &mut App) {
    context_store::init(&client.into());
+    workspace::FollowableViewRegistry::register::<ContextEditor>(cx);
+
+    cx.observe_new(
+        |workspace: &mut Workspace, _window, _cx: &mut Context<Workspace>| {
+            workspace
+                .register_action(ContextEditor::quote_selection)
+                .register_action(ContextEditor::insert_selection)
+                .register_action(ContextEditor::copy_code)
+                .register_action(ContextEditor::handle_insert_dragged_files);
+        },
+    )
+    .detach();
 }
--- a/crates/assistant_context_editor/src/context.rs
+++ b/crates/assistant_context_editor/src/context.rs
@@ -2,7 +2,8 @@
 mod context_tests;

 use crate::patch::{AssistantEdit, AssistantPatch, AssistantPatchStatus};
-use anyhow::{Context as _, Result, anyhow};
+use anyhow::{Context as _, Result, anyhow, bail};
+use assistant_settings::AssistantSettings;
 use assistant_slash_command::{
    SlashCommandContent, SlashCommandEvent, SlashCommandLine, SlashCommandOutputSection,
    SlashCommandResult, SlashCommandWorkingSet,
@@ -142,7 +143,7 @@ pub enum ContextOperation {
        version: clock::Global,
    },
    UpdateSummary {
-        summary: ContextSummary,
+        summary: ContextSummaryContent,
        version: clock::Global,
    },
    SlashCommandStarted {
@@ -212,7 +213,7 @@ impl ContextOperation {
                version: language::proto::deserialize_version(&update.version),
            }),
            proto::context_operation::Variant::UpdateSummary(update) => Ok(Self::UpdateSummary {
-                summary: ContextSummary {
+                summary: ContextSummaryContent {
                    text: update.summary,
                    done: update.done,
                    timestamp: language::proto::deserialize_timestamp(
@@ -480,11 +481,73 @@ pub enum ContextEvent {
    Operation(ContextOperation),
 }

-#[derive(Clone, Default, Debug)]
-pub struct ContextSummary {
+#[derive(Clone, Debug, Eq, PartialEq)]
+pub enum ContextSummary {
+    Pending,
+    Content(ContextSummaryContent),
+    Error,
+}
+
+#[derive(Default, Clone, Debug, Eq, PartialEq)]
+pub struct ContextSummaryContent {
    pub text: String,
    pub done: bool,
-    timestamp: clock::Lamport,
+    pub timestamp: clock::Lamport,
+}
+
+impl ContextSummary {
+    pub const DEFAULT: &str = "New Text Thread";
+
+    pub fn or_default(&self) -> SharedString {
+        self.unwrap_or(Self::DEFAULT)
+    }
+
+    pub fn unwrap_or(&self, message: impl Into<SharedString>) -> SharedString {
+        self.content()
+            .map_or_else(|| message.into(), |content| content.text.clone().into())
+    }
+
+    pub fn content(&self) -> Option<&ContextSummaryContent> {
+        match self {
+            ContextSummary::Content(content) => Some(content),
+            ContextSummary::Pending | ContextSummary::Error => None,
+        }
+    }
+
+    fn content_as_mut(&mut self) -> Option<&mut ContextSummaryContent> {
+        match self {
+            ContextSummary::Content(content) => Some(content),
+            ContextSummary::Pending | ContextSummary::Error => None,
+        }
+    }
+
+    fn content_or_set_empty(&mut self) -> &mut ContextSummaryContent {
+        match self {
+            ContextSummary::Content(content) => content,
+            ContextSummary::Pending | ContextSummary::Error => {
+                let content = ContextSummaryContent::default();
+                *self = ContextSummary::Content(content);
+                self.content_as_mut().unwrap()
+            }
+        }
+    }
+
+    pub fn is_pending(&self) -> bool {
+        matches!(self, ContextSummary::Pending)
+    }
+
+    fn timestamp(&self) -> Option<clock::Lamport> {
+        match self {
+            ContextSummary::Content(content) => Some(content.timestamp),
+            ContextSummary::Pending | ContextSummary::Error => None,
+        }
+    }
+}
+
+impl PartialOrd for ContextSummary {
+    fn partial_cmp(&self, other: &Self) -> Option<Ordering> {
+        self.timestamp().partial_cmp(&other.timestamp())
+    }
 }

 #[derive(Clone, Debug, Eq, PartialEq)]
@@ -640,7 +703,7 @@ pub struct AssistantContext {
    message_anchors: Vec<MessageAnchor>,
    contents: Vec<Content>,
    messages_metadata: HashMap<MessageId, MessageMetadata>,
-    summary: Option<ContextSummary>,
+    summary: ContextSummary,
    summary_task: Task<Option<()>>,
    completion_count: usize,
    pending_completions: Vec<PendingCompletion>,
@@ -741,7 +804,7 @@ impl AssistantContext {
            slash_command_output_sections: Vec::new(),
            thought_process_output_sections: Vec::new(),
            edits_since_last_parse: edits_since_last_slash_command_parse,
-            summary: None,
+            summary: ContextSummary::Pending,
            summary_task: Task::ready(None),
            completion_count: Default::default(),
            pending_completions: Default::default(),
@@ -802,7 +865,7 @@ impl AssistantContext {
                .collect(),
            summary: self
                .summary
-                .as_ref()
+                .content()
                .map(|summary| summary.text.clone())
                .unwrap_or_default(),
            slash_command_output_sections: self
@@ -988,12 +1051,10 @@ impl AssistantContext {
                    summary: new_summary,
                    ..
                } => {
-                    if self
-                        .summary
-                        .as_ref()
-                        .map_or(true, |summary| new_summary.timestamp > summary.timestamp)
-                    {
-                        self.summary = Some(new_summary);
+                    if self.summary.timestamp().map_or(true, |current_timestamp| {
+                        new_summary.timestamp > current_timestamp
+                    }) {
+                        self.summary = ContextSummary::Content(new_summary);
                        summary_generated = true;
                    }
                }
@@ -1151,8 +1212,8 @@ impl AssistantContext {
        self.path.as_ref()
    }

-    pub fn summary(&self) -> Option<&ContextSummary> {
-        self.summary.as_ref()
+    pub fn summary(&self) -> &ContextSummary {
+        &self.summary
    }

    pub fn patch_containing(&self, position: Point, cx: &App) -> Option<&AssistantPatch> {
@@ -1273,10 +1334,10 @@ 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 {
@@ -1422,7 +1483,7 @@ impl AssistantContext {
        }

        let request = {
-            let mut req = self.to_completion_request(RequestType::Chat, cx);
+            let mut req = self.to_completion_request(Some(&model), RequestType::Chat, cx);
            // Skip the last message because it's likely to change and
            // therefore would be a waste to cache.
            req.messages.pop();
@@ -2321,7 +2382,7 @@ 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(request_type, cx);
+        let request = self.to_completion_request(Some(&model), request_type, cx);

        let assistant_message = self
            .insert_message_after(last_message_id, Role::Assistant, MessageStatus::Pending, cx)
@@ -2561,6 +2622,7 @@ impl AssistantContext {

    pub fn to_completion_request(
        &self,
+        model: Option<&Arc<dyn LanguageModel>>,
        request_type: RequestType,
        cx: &App,
    ) -> LanguageModelRequest {
@@ -2583,8 +2645,10 @@ impl AssistantContext {
            mode: None,
            messages: Vec::new(),
            tools: Vec::new(),
+            tool_choice: None,
            stop: Vec::new(),
-            temperature: None,
+            temperature: model
+                .and_then(|model| AssistantSettings::temperature_for_model(model, cx)),
        };
        for message in self.messages(cx) {
            if message.status != MessageStatus::Done {
@@ -2976,12 +3040,12 @@ impl AssistantContext {
            return;
        };

-        if replace_old || (self.message_anchors.len() >= 2 && self.summary.is_none()) {
+        if replace_old || (self.message_anchors.len() >= 2 && self.summary.is_pending()) {
            if !model.provider.is_authenticated(cx) {
                return;
            }

-            let mut request = self.to_completion_request(RequestType::Chat, cx);
+            let mut request = self.to_completion_request(Some(&model.model), RequestType::Chat, cx);
            request.messages.push(LanguageModelRequestMessage {
                role: Role::User,
                content: vec![
@@ -2993,17 +3057,20 @@ impl AssistantContext {

            // If there is no summary, it is set with `done: false` so that "Loading Summary…" can
            // be displayed.
-            if self.summary.is_none() {
-                self.summary = Some(ContextSummary {
-                    text: "".to_string(),
-                    done: false,
-                    timestamp: clock::Lamport::default(),
-                });
-                replace_old = true;
+            match self.summary {
+                ContextSummary::Pending | ContextSummary::Error => {
+                    self.summary = ContextSummary::Content(ContextSummaryContent {
+                        text: "".to_string(),
+                        done: false,
+                        timestamp: clock::Lamport::default(),
+                    });
+                    replace_old = true;
+                }
+                ContextSummary::Content(_) => {}
            }

            self.summary_task = cx.spawn(async move |this, cx| {
-                async move {
+                let result = async {
                    let stream = model.model.stream_completion_text(request, &cx);
                    let mut messages = stream.await?;

@@ -3014,7 +3081,7 @@ impl AssistantContext {
                        this.update(cx, |this, cx| {
                            let version = this.version.clone();
                            let timestamp = this.next_timestamp();
-                            let summary = this.summary.get_or_insert(ContextSummary::default());
+                            let summary = this.summary.content_or_set_empty();
                            if !replaced && replace_old {
                                summary.text.clear();
                                replaced = true;
@@ -3036,10 +3103,19 @@ impl AssistantContext {
                        }
                    }

+                    this.read_with(cx, |this, _cx| {
+                        if let Some(summary) = this.summary.content() {
+                            if summary.text.is_empty() {
+                                bail!("Model generated an empty summary");
+                            }
+                        }
+                        Ok(())
+                    })??;
+
                    this.update(cx, |this, cx| {
                        let version = this.version.clone();
                        let timestamp = this.next_timestamp();
-                        if let Some(summary) = this.summary.as_mut() {
+                        if let Some(summary) = this.summary.content_as_mut() {
                            summary.done = true;
                            summary.timestamp = timestamp;
                            let operation = ContextOperation::UpdateSummary {
@@ -3054,8 +3130,18 @@ impl AssistantContext {

                    anyhow::Ok(())
                }
-                .log_err()
-                .await
+                .await;
+
+                if let Err(err) = result {
+                    this.update(cx, |this, cx| {
+                        this.summary = ContextSummary::Error;
+                        cx.emit(ContextEvent::SummaryChanged);
+                    })
+                    .log_err();
+                    log::error!("Error generating context summary: {}", err);
+                }
+
+                Some(())
            });
        }
    }
@@ -3169,7 +3255,7 @@ impl AssistantContext {

            let (old_path, summary) = this.read_with(cx, |this, _| {
                let path = this.path.clone();
-                let summary = if let Some(summary) = this.summary.as_ref() {
+                let summary = if let Some(summary) = this.summary.content() {
                    if summary.done {
                        Some(summary.text.clone())
                    } else {
@@ -3223,21 +3309,12 @@ impl AssistantContext {

    pub fn set_custom_summary(&mut self, custom_summary: String, cx: &mut Context<Self>) {
        let timestamp = self.next_timestamp();
-        let summary = self.summary.get_or_insert(ContextSummary::default());
+        let summary = self.summary.content_or_set_empty();
        summary.timestamp = timestamp;
        summary.done = true;
        summary.text = custom_summary;
        cx.emit(ContextEvent::SummaryChanged);
    }
-
-    pub const DEFAULT_SUMMARY: SharedString = SharedString::new_static("New Text Thread");
-
-    pub fn summary_or_default(&self) -> SharedString {
-        self.summary
-            .as_ref()
-            .map(|summary| summary.text.clone().into())
-            .unwrap_or(Self::DEFAULT_SUMMARY)
-    }
 }

 fn trimmed_text_in_range(buffer: &BufferSnapshot, range: Range<text::Anchor>) -> String {
@@ -3471,7 +3548,7 @@ impl SavedContext {

        let timestamp = next_timestamp.tick();
        operations.push(ContextOperation::UpdateSummary {
-            summary: ContextSummary {
+            summary: ContextSummaryContent {
                text: self.summary,
                done: true,
                timestamp,
--- a/crates/assistant_context_editor/src/context/context_tests.rs
+++ b/crates/assistant_context_editor/src/context/context_tests.rs
@@ -1,6 +1,7 @@
 use crate::{
    AssistantContext, AssistantEdit, AssistantEditKind, CacheStatus, ContextEvent, ContextId,
-    ContextOperation, InvokedSlashCommandId, MessageCacheMetadata, MessageId, MessageStatus,
+    ContextOperation, ContextSummary, InvokedSlashCommandId, MessageCacheMetadata, MessageId,
+    MessageStatus, RequestType,
 };
 use anyhow::Result;
 use assistant_slash_command::{
@@ -16,7 +17,10 @@ use futures::{
 };
 use gpui::{App, Entity, SharedString, Task, TestAppContext, WeakEntity, prelude::*};
 use language::{Buffer, BufferSnapshot, LanguageRegistry, LspAdapterDelegate};
-use language_model::{LanguageModelCacheConfiguration, LanguageModelRegistry, Role};
+use language_model::{
+    ConfiguredModel, LanguageModelCacheConfiguration, LanguageModelRegistry, Role,
+    fake_provider::{FakeLanguageModel, FakeLanguageModelProvider},
+};
 use parking_lot::Mutex;
 use pretty_assertions::assert_eq;
 use project::Project;
@@ -43,9 +47,8 @@ use workspace::Workspace;

 #[gpui::test]
 fn test_inserting_and_removing_messages(cx: &mut App) {
-    let settings_store = SettingsStore::test(cx);
-    LanguageModelRegistry::test(cx);
-    cx.set_global(settings_store);
+    init_test(cx);
+
    let registry = Arc::new(LanguageRegistry::test(cx.background_executor().clone()));
    let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
    let context = cx.new(|cx| {
@@ -182,9 +185,8 @@ fn test_inserting_and_removing_messages(cx: &mut App) {

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

    let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
@@ -285,9 +287,8 @@ fn test_message_splitting(cx: &mut App) {

 #[gpui::test]
 fn test_messages_for_offsets(cx: &mut App) {
-    let settings_store = SettingsStore::test(cx);
-    LanguageModelRegistry::test(cx);
-    cx.set_global(settings_store);
+    init_test(cx);
+
    let registry = Arc::new(LanguageRegistry::test(cx.background_executor().clone()));
    let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
    let context = cx.new(|cx| {
@@ -378,10 +379,8 @@ fn test_messages_for_offsets(cx: &mut App) {

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

    fs.insert_tree(
@@ -671,22 +670,19 @@ 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| {
-        settings_store
-            .set_user_settings(
-                r#"{ "assistant": { "enable_experimental_live_diffs": true } }"#,
-                cx,
-            )
-            .unwrap()
+        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()
+        })
    });
-    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()));

@@ -1069,9 +1065,8 @@ async fn test_workflow_step_parsing(cx: &mut TestAppContext) {

 #[gpui::test]
 async fn test_serialization(cx: &mut TestAppContext) {
-    let settings_store = cx.update(SettingsStore::test);
-    cx.set_global(settings_store);
-    cx.update(LanguageModelRegistry::test);
+    cx.update(init_test);
+
    let registry = Arc::new(LanguageRegistry::test(cx.executor()));
    let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
    let context = cx.new(|cx| {
@@ -1147,6 +1142,8 @@ 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);
@@ -1157,10 +1154,6 @@ 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);
@@ -1429,9 +1422,8 @@ async fn test_random_context_collaboration(cx: &mut TestAppContext, mut rng: Std

 #[gpui::test]
 fn test_mark_cache_anchors(cx: &mut App) {
-    let settings_store = SettingsStore::test(cx);
-    LanguageModelRegistry::test(cx);
-    cx.set_global(settings_store);
+    init_test(cx);
+
    let registry = Arc::new(LanguageRegistry::test(cx.background_executor().clone()));
    let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
    let context = cx.new(|cx| {
@@ -1587,6 +1579,187 @@ fn test_mark_cache_anchors(cx: &mut App) {
    );
 }

+#[gpui::test]
+async fn test_summarization(cx: &mut TestAppContext) {
+    let (context, fake_model) = setup_context_editor_with_fake_model(cx);
+
+    // Initial state should be pending
+    context.read_with(cx, |context, _| {
+        assert!(matches!(context.summary(), ContextSummary::Pending));
+        assert_eq!(context.summary().or_default(), ContextSummary::DEFAULT);
+    });
+
+    let message_1 = context.read_with(cx, |context, _cx| context.message_anchors[0].clone());
+    context.update(cx, |context, cx| {
+        context
+            .insert_message_after(message_1.id, Role::Assistant, MessageStatus::Done, cx)
+            .unwrap();
+    });
+
+    // Send a message
+    context.update(cx, |context, cx| {
+        context.assist(RequestType::Chat, cx);
+    });
+
+    simulate_successful_response(&fake_model, cx);
+
+    // Should start generating summary when there are >= 2 messages
+    context.read_with(cx, |context, _| {
+        assert!(!context.summary().content().unwrap().done);
+    });
+
+    cx.run_until_parked();
+    fake_model.stream_last_completion_response("Brief".into());
+    fake_model.stream_last_completion_response(" Introduction".into());
+    fake_model.end_last_completion_stream();
+    cx.run_until_parked();
+
+    // Summary should be set
+    context.read_with(cx, |context, _| {
+        assert_eq!(context.summary().or_default(), "Brief Introduction");
+    });
+
+    // We should be able to manually set a summary
+    context.update(cx, |context, cx| {
+        context.set_custom_summary("Brief Intro".into(), cx);
+    });
+
+    context.read_with(cx, |context, _| {
+        assert_eq!(context.summary().or_default(), "Brief Intro");
+    });
+}
+
+#[gpui::test]
+async fn test_thread_summary_error_set_manually(cx: &mut TestAppContext) {
+    let (context, fake_model) = setup_context_editor_with_fake_model(cx);
+
+    test_summarize_error(&fake_model, &context, cx);
+
+    // Now we should be able to set a summary
+    context.update(cx, |context, cx| {
+        context.set_custom_summary("Brief Intro".into(), cx);
+    });
+
+    context.read_with(cx, |context, _| {
+        assert_eq!(context.summary().or_default(), "Brief Intro");
+    });
+}
+
+#[gpui::test]
+async fn test_thread_summary_error_retry(cx: &mut TestAppContext) {
+    let (context, fake_model) = setup_context_editor_with_fake_model(cx);
+
+    test_summarize_error(&fake_model, &context, cx);
+
+    // Sending another message should not trigger another summarize request
+    context.update(cx, |context, cx| {
+        context.assist(RequestType::Chat, cx);
+    });
+
+    simulate_successful_response(&fake_model, cx);
+
+    context.read_with(cx, |context, _| {
+        // State is still Error, not Generating
+        assert!(matches!(context.summary(), ContextSummary::Error));
+    });
+
+    // But the summarize request can be invoked manually
+    context.update(cx, |context, cx| {
+        context.summarize(true, cx);
+    });
+
+    context.read_with(cx, |context, _| {
+        assert!(!context.summary().content().unwrap().done);
+    });
+
+    cx.run_until_parked();
+    fake_model.stream_last_completion_response("A successful summary".into());
+    fake_model.end_last_completion_stream();
+    cx.run_until_parked();
+
+    context.read_with(cx, |context, _| {
+        assert_eq!(context.summary().or_default(), "A successful summary");
+    });
+}
+
+fn test_summarize_error(
+    model: &Arc<FakeLanguageModel>,
+    context: &Entity<AssistantContext>,
+    cx: &mut TestAppContext,
+) {
+    let message_1 = context.read_with(cx, |context, _cx| context.message_anchors[0].clone());
+    context.update(cx, |context, cx| {
+        context
+            .insert_message_after(message_1.id, Role::Assistant, MessageStatus::Done, cx)
+            .unwrap();
+    });
+
+    // Send a message
+    context.update(cx, |context, cx| {
+        context.assist(RequestType::Chat, cx);
+    });
+
+    simulate_successful_response(&model, cx);
+
+    context.read_with(cx, |context, _| {
+        assert!(!context.summary().content().unwrap().done);
+    });
+
+    // Simulate summary request ending
+    cx.run_until_parked();
+    model.end_last_completion_stream();
+    cx.run_until_parked();
+
+    // State is set to Error and default message
+    context.read_with(cx, |context, _| {
+        assert_eq!(*context.summary(), ContextSummary::Error);
+        assert_eq!(context.summary().or_default(), ContextSummary::DEFAULT);
+    });
+}
+
+fn setup_context_editor_with_fake_model(
+    cx: &mut TestAppContext,
+) -> (Entity<AssistantContext>, Arc<FakeLanguageModel>) {
+    let registry = Arc::new(LanguageRegistry::test(cx.executor().clone()));
+
+    let fake_provider = Arc::new(FakeLanguageModelProvider);
+    let fake_model = Arc::new(fake_provider.test_model());
+
+    cx.update(|cx| {
+        init_test(cx);
+        LanguageModelRegistry::global(cx).update(cx, |registry, cx| {
+            registry.set_default_model(
+                Some(ConfiguredModel {
+                    provider: fake_provider.clone(),
+                    model: fake_model.clone(),
+                }),
+                cx,
+            )
+        })
+    });
+
+    let prompt_builder = Arc::new(PromptBuilder::new(None).unwrap());
+    let context = cx.new(|cx| {
+        AssistantContext::local(
+            registry,
+            None,
+            None,
+            prompt_builder.clone(),
+            Arc::new(SlashCommandWorkingSet::default()),
+            cx,
+        )
+    });
+
+    (context, fake_model)
+}
+
+fn simulate_successful_response(fake_model: &FakeLanguageModel, cx: &mut TestAppContext) {
+    cx.run_until_parked();
+    fake_model.stream_last_completion_response("Assistant response".into());
+    fake_model.end_last_completion_stream();
+    cx.run_until_parked();
+}
+
 fn messages(context: &Entity<AssistantContext>, cx: &App) -> Vec<(MessageId, Role, Range<usize>)> {
    context
        .read(cx)
@@ -1606,6 +1779,16 @@ 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
@@ -18,7 +18,6 @@ use editor::{
    scroll::Autoscroll,
 };
 use editor::{FoldPlaceholder, display_map::CreaseId};
-use feature_flags::{Assistant2FeatureFlag, FeatureFlagAppExt as _};
 use fs::Fs;
 use futures::FutureExt;
 use gpui::{
@@ -138,7 +137,7 @@ pub enum ThoughtProcessStatus {
    Completed,
 }

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

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

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

 impl Global for GlobalAssistantPanelDelegate {}

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

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

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

    pub fn quote_ranges(
@@ -2203,7 +2202,12 @@ impl ContextEditor {
    }

    pub fn title(&self, cx: &App) -> SharedString {
-        self.context.read(cx).summary_or_default()
+        self.context.read(cx).summary().or_default()
+    }
+
+    pub fn regenerate_summary(&mut self, cx: &mut Context<Self>) {
+        self.context
+            .update(cx, |context, cx| context.summarize(true, cx));
    }

    fn render_patch_block(
@@ -2395,19 +2399,11 @@ impl ContextEditor {
                            .on_click({
                                let focus_handle = self.focus_handle(cx).clone();
                                move |_event, 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,
-                                        );
-                                    };
+                                    focus_handle.dispatch_action(
+                                        &zed_actions::agent::OpenConfiguration,
+                                        window,
+                                        cx,
+                                    );
                                }
                            }),
                    )
@@ -3368,10 +3364,10 @@ impl FollowableItem for ContextEditor {
        let editor_state = state.editor?;

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

        let context_editor_task = workspace.update(cx, |workspace, cx| {
-            assistant_panel_delegate.open_remote_context(workspace, context_id, window, cx)
+            agent_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::{
-    AssistantPanelDelegate, ContextStore, DEFAULT_TAB_TITLE, RemoteContextMetadata,
+    AgentPanelDelegate, ContextStore, DEFAULT_TAB_TITLE, RemoteContextMetadata,
    SavedContextMetadata,
 };

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

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

        self.workspace
            .update(cx, |workspace, cx| match context {
                ContextMetadata::Remote(metadata) => {
-                    assistant_panel_delegate
+                    agent_panel_delegate
                        .open_remote_context(workspace, metadata.id.clone(), window, cx)
                        .detach_and_log_err(cx);
                }
                ContextMetadata::Saved(metadata) => {
-                    assistant_panel_delegate
+                    agent_panel_delegate
                        .open_saved_context(workspace, metadata.path.clone(), window, cx)
                        .detach_and_log_err(cx);
                }
--- a/crates/assistant_context_editor/src/context_store.rs
+++ b/crates/assistant_context_editor/src/context_store.rs
@@ -648,7 +648,10 @@ impl ContextStore {
                if context.replica_id() == ReplicaId::default() {
                    Some(proto::ContextMetadata {
                        context_id: context.id().to_proto(),
-                        summary: context.summary().map(|summary| summary.text.clone()),
+                        summary: context
+                            .summary()
+                            .content()
+                            .map(|summary| summary.text.clone()),
                    })
                } else {
                    None
--- 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
-feature_flags.workspace = true
+collections.workspace = true
 gpui.workspace = true
 indexmap.workspace = true
 language_model.workspace = true
@@ -27,6 +27,7 @@ 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
@@ -5,10 +5,9 @@ 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 feature_flags::{AgentStreamEditsFeatureFlag, Assistant2FeatureFlag, FeatureFlagAppExt};
-use gpui::{App, Pixels};
-use indexmap::IndexMap;
+use gpui::{App, Pixels, SharedString};
 use language_model::{CloudModel, LanguageModel};
 use lmstudio::Model as LmStudioModel;
 use ollama::Model as OllamaModel;
@@ -18,6 +17,10 @@ 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 {
@@ -89,31 +92,66 @@ 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 stream_edits(&self, cx: &App) -> bool {
-        cx.has_flag::<AgentStreamEditsFeatureFlag>() || self.stream_edits
+    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 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 are_live_diffs_enabled(&self, _cx: &App) -> bool {
+        false
    }

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

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

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

@@ -180,37 +218,37 @@ impl AssistantSettingsContent {
                        .and_then(|provider| match provider {
                            AssistantProviderContentV1::ZedDotDev { default_model } => {
                                default_model.map(|model| LanguageModelSelection {
-                                    provider: "zed.dev".to_string(),
+                                    provider: "zed.dev".into(),
                                    model: model.id().to_string(),
                                })
                            }
                            AssistantProviderContentV1::OpenAi { default_model, .. } => {
                                default_model.map(|model| LanguageModelSelection {
-                                    provider: "openai".to_string(),
+                                    provider: "openai".into(),
                                    model: model.id().to_string(),
                                })
                            }
                            AssistantProviderContentV1::Anthropic { default_model, .. } => {
                                default_model.map(|model| LanguageModelSelection {
-                                    provider: "anthropic".to_string(),
+                                    provider: "anthropic".into(),
                                    model: model.id().to_string(),
                                })
                            }
                            AssistantProviderContentV1::Ollama { default_model, .. } => {
                                default_model.map(|model| LanguageModelSelection {
-                                    provider: "ollama".to_string(),
+                                    provider: "ollama".into(),
                                    model: model.id().to_string(),
                                })
                            }
                            AssistantProviderContentV1::LmStudio { default_model, .. } => {
                                default_model.map(|model| LanguageModelSelection {
-                                    provider: "lmstudio".to_string(),
+                                    provider: "lmstudio".into(),
                                    model: model.id().to_string(),
                                })
                            }
                            AssistantProviderContentV1::DeepSeek { default_model, .. } => {
                                default_model.map(|model| LanguageModelSelection {
-                                    provider: "deepseek".to_string(),
+                                    provider: "deepseek".into(),
                                    model: model.id().to_string(),
                                })
                            }
@@ -226,6 +264,8 @@ 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(),
            },
@@ -236,7 +276,7 @@ impl AssistantSettingsContent {
                default_width: settings.default_width,
                default_height: settings.default_height,
                default_model: Some(LanguageModelSelection {
-                    provider: "openai".to_string(),
+                    provider: "openai".into(),
                    model: settings
                        .default_open_ai_model
                        .clone()
@@ -255,6 +295,8 @@ 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(),
        }
@@ -319,7 +361,7 @@ impl AssistantSettingsContent {
                                    &model,
                                    None,
                                    None,
-                                    language_model.supports_tools(),
+                                    Some(language_model.supports_tools()),
                                )),
                                api_url,
                            });
@@ -367,7 +409,10 @@ impl AssistantSettingsContent {
                    }
                }
                VersionedAssistantSettingsContent::V2(ref mut settings) => {
-                    settings.default_model = Some(LanguageModelSelection { provider, model });
+                    settings.default_model = Some(LanguageModelSelection {
+                        provider: provider.into(),
+                        model,
+                    });
                }
            },
            Some(AssistantSettingsContentInner::Legacy(settings)) => {
@@ -378,7 +423,10 @@ impl AssistantSettingsContent {
            None => {
                self.inner = Some(AssistantSettingsContentInner::for_v2(
                    AssistantSettingsContentV2 {
-                        default_model: Some(LanguageModelSelection { provider, model }),
+                        default_model: Some(LanguageModelSelection {
+                            provider: provider.into(),
+                            model,
+                        }),
                        ..Default::default()
                    },
                ));
@@ -388,7 +436,10 @@ 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, model });
+            setting.inline_assistant_model = Some(LanguageModelSelection {
+                provider: provider.into(),
+                model,
+            });
            Ok(())
        })
        .ok();
@@ -396,7 +447,10 @@ 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, model });
+            setting.commit_message_model = Some(LanguageModelSelection {
+                provider: provider.into(),
+                model,
+            });
            Ok(())
        })
        .ok();
@@ -424,7 +478,10 @@ 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, model });
+            setting.thread_summary_model = Some(LanguageModelSelection {
+                provider: provider.into(),
+                model,
+            });
            Ok(())
        })
        .ok();
@@ -520,6 +577,8 @@ impl Default for VersionedAssistantSettingsContent {
            notify_when_agent_waiting: None,
            stream_edits: None,
            single_file_review: None,
+            model_parameters: Vec::new(),
+            preferred_completion_mode: None,
        })
    }
 }
@@ -583,37 +642,88 @@ 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 {
-    #[schemars(schema_with = "providers_schema")]
-    pub provider: String,
+    pub provider: LanguageModelProviderSetting,
    pub model: 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()
+#[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())
    }
-    .into()
 }

 impl Default for LanguageModelSelection {
    fn default() -> Self {
        Self {
-            provider: "openai".to_string(),
+            provider: LanguageModelProviderSetting("openai".to_string()),
            model: "gpt-4".to_string(),
        }
    }
@@ -750,6 +860,14 @@ 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
@@ -883,6 +1001,8 @@ mod tests {
                                notify_when_agent_waiting: None,
                                stream_edits: None,
                                single_file_review: None,
+                                model_parameters: Vec::new(),
+                                preferred_completion_mode: None,
                            },
                        )),
                    }
@@ -945,7 +1065,7 @@ mod tests {
                        AssistantSettingsContentV2 {
                            enabled: Some(false),
                            default_model: Some(LanguageModelSelection {
-                                provider: "xai".to_owned(),
+                                provider: "xai".to_owned().into(),
                                model: "grok".to_owned(),
                            }),
                            ..Default::default()
--- a/crates/assistant_tool/src/action_log.rs
+++ b/crates/assistant_tool/src/action_log.rs
@@ -49,6 +49,37 @@ impl ActionLog {
        is_created: bool,
        cx: &mut Context<Self>,
    ) -> &mut TrackedBuffer {
+        let status = if is_created {
+            if let Some(tracked) = self.tracked_buffers.remove(&buffer) {
+                match tracked.status {
+                    TrackedBufferStatus::Created {
+                        existing_file_content,
+                    } => TrackedBufferStatus::Created {
+                        existing_file_content,
+                    },
+                    TrackedBufferStatus::Modified | TrackedBufferStatus::Deleted => {
+                        TrackedBufferStatus::Created {
+                            existing_file_content: Some(tracked.diff_base),
+                        }
+                    }
+                }
+            } else if buffer
+                .read(cx)
+                .file()
+                .map_or(false, |file| file.disk_state().exists())
+            {
+                TrackedBufferStatus::Created {
+                    existing_file_content: Some(buffer.read(cx).as_rope().clone()),
+                }
+            } else {
+                TrackedBufferStatus::Created {
+                    existing_file_content: None,
+                }
+            }
+        } else {
+            TrackedBufferStatus::Modified
+        };
+
        let tracked_buffer = self
            .tracked_buffers
            .entry(buffer.clone())
@@ -60,36 +91,21 @@ impl ActionLog {
                let text_snapshot = buffer.read(cx).text_snapshot();
                let diff = cx.new(|cx| BufferDiff::new(&text_snapshot, cx));
                let (diff_update_tx, diff_update_rx) = mpsc::unbounded();
-                let base_text;
-                let status;
+                let diff_base;
                let unreviewed_changes;
                if is_created {
-                    let existing_file_content = if buffer
-                        .read(cx)
-                        .file()
-                        .map_or(false, |file| file.disk_state().exists())
-                    {
-                        Some(text_snapshot.as_rope().clone())
-                    } else {
-                        None
-                    };
-
-                    base_text = Rope::default();
-                    status = TrackedBufferStatus::Created {
-                        existing_file_content,
-                    };
+                    diff_base = Rope::default();
                    unreviewed_changes = Patch::new(vec![Edit {
                        old: 0..1,
                        new: 0..text_snapshot.max_point().row + 1,
                    }])
                } else {
-                    base_text = buffer.read(cx).as_rope().clone();
-                    status = TrackedBufferStatus::Modified;
+                    diff_base = buffer.read(cx).as_rope().clone();
                    unreviewed_changes = Patch::default();
                }
                TrackedBuffer {
                    buffer: buffer.clone(),
-                    base_text,
+                    diff_base,
                    unreviewed_changes,
                    snapshot: text_snapshot.clone(),
                    status,
@@ -184,7 +200,7 @@ impl ActionLog {
                        .context("buffer not tracked")?;

                    let rebase = cx.background_spawn({
-                        let mut base_text = tracked_buffer.base_text.clone();
+                        let mut base_text = tracked_buffer.diff_base.clone();
                        let old_snapshot = tracked_buffer.snapshot.clone();
                        let new_snapshot = buffer_snapshot.clone();
                        let unreviewed_changes = tracked_buffer.unreviewed_changes.clone();
@@ -210,7 +226,7 @@ impl ActionLog {
                    ))
                })??;

-            let (new_base_text, new_base_text_rope) = rebase.await;
+            let (new_base_text, new_diff_base) = rebase.await;
            let diff_snapshot = BufferDiff::update_diff(
                diff.clone(),
                buffer_snapshot.clone(),
@@ -229,24 +245,23 @@ impl ActionLog {
                    .background_spawn({
                        let diff_snapshot = diff_snapshot.clone();
                        let buffer_snapshot = buffer_snapshot.clone();
-                        let new_base_text_rope = new_base_text_rope.clone();
+                        let new_diff_base = new_diff_base.clone();
                        async move {
                            let mut unreviewed_changes = Patch::default();
                            for hunk in diff_snapshot.hunks_intersecting_range(
                                Anchor::MIN..Anchor::MAX,
                                &buffer_snapshot,
                            ) {
-                                let old_range = new_base_text_rope
+                                let old_range = new_diff_base
                                    .offset_to_point(hunk.diff_base_byte_range.start)
-                                    ..new_base_text_rope
-                                        .offset_to_point(hunk.diff_base_byte_range.end);
+                                    ..new_diff_base.offset_to_point(hunk.diff_base_byte_range.end);
                                let new_range = hunk.range.start..hunk.range.end;
                                unreviewed_changes.push(point_to_row_edit(
                                    Edit {
                                        old: old_range,
                                        new: new_range,
                                    },
-                                    &new_base_text_rope,
+                                    &new_diff_base,
                                    &buffer_snapshot.as_rope(),
                                ));
                            }
@@ -264,7 +279,7 @@ impl ActionLog {
                    .tracked_buffers
                    .get_mut(&buffer)
                    .context("buffer not tracked")?;
-                tracked_buffer.base_text = new_base_text_rope;
+                tracked_buffer.diff_base = new_diff_base;
                tracked_buffer.snapshot = buffer_snapshot;
                tracked_buffer.unreviewed_changes = unreviewed_changes;
                cx.notify();
@@ -283,7 +298,6 @@ impl ActionLog {
    /// Mark a buffer as edited, so we can refresh it in the context
    pub fn buffer_created(&mut self, buffer: Entity<Buffer>, cx: &mut Context<Self>) {
        self.edited_since_project_diagnostics_check = true;
-        self.tracked_buffers.remove(&buffer);
        self.track_buffer_internal(buffer.clone(), true, cx);
    }

@@ -346,11 +360,11 @@ impl ActionLog {
                        true
                    } else {
                        let old_range = tracked_buffer
-                            .base_text
+                            .diff_base
                            .point_to_offset(Point::new(edit.old.start, 0))
-                            ..tracked_buffer.base_text.point_to_offset(cmp::min(
+                            ..tracked_buffer.diff_base.point_to_offset(cmp::min(
                                Point::new(edit.old.end, 0),
-                                tracked_buffer.base_text.max_point(),
+                                tracked_buffer.diff_base.max_point(),
                            ));
                        let new_range = tracked_buffer
                            .snapshot
@@ -359,7 +373,7 @@ impl ActionLog {
                                Point::new(edit.new.end, 0),
                                tracked_buffer.snapshot.max_point(),
                            ));
-                        tracked_buffer.base_text.replace(
+                        tracked_buffer.diff_base.replace(
                            old_range,
                            &tracked_buffer
                                .snapshot
@@ -417,7 +431,7 @@ impl ActionLog {
            }
            TrackedBufferStatus::Deleted => {
                buffer.update(cx, |buffer, cx| {
-                    buffer.set_text(tracked_buffer.base_text.to_string(), cx)
+                    buffer.set_text(tracked_buffer.diff_base.to_string(), cx)
                });
                let save = self
                    .project
@@ -464,14 +478,14 @@ impl ActionLog {

                        if revert {
                            let old_range = tracked_buffer
-                                .base_text
+                                .diff_base
                                .point_to_offset(Point::new(edit.old.start, 0))
-                                ..tracked_buffer.base_text.point_to_offset(cmp::min(
+                                ..tracked_buffer.diff_base.point_to_offset(cmp::min(
                                    Point::new(edit.old.end, 0),
-                                    tracked_buffer.base_text.max_point(),
+                                    tracked_buffer.diff_base.max_point(),
                                ));
                            let old_text = tracked_buffer
-                                .base_text
+                                .diff_base
                                .chunks_in_range(old_range)
                                .collect::<String>();
                            edits_to_revert.push((new_range, old_text));
@@ -492,7 +506,7 @@ impl ActionLog {
                TrackedBufferStatus::Deleted => false,
                _ => {
                    tracked_buffer.unreviewed_changes.clear();
-                    tracked_buffer.base_text = tracked_buffer.snapshot.as_rope().clone();
+                    tracked_buffer.diff_base = tracked_buffer.snapshot.as_rope().clone();
                    tracked_buffer.schedule_diff_update(ChangeAuthor::User, cx);
                    true
                }
@@ -655,7 +669,7 @@ enum TrackedBufferStatus {

 struct TrackedBuffer {
    buffer: Entity<Buffer>,
-    base_text: Rope,
+    diff_base: Rope,
    unreviewed_changes: Patch<u32>,
    status: TrackedBufferStatus,
    version: clock::Global,
@@ -1094,6 +1108,86 @@ mod tests {
        );
    }

+    #[gpui::test(iterations = 10)]
+    async fn test_overwriting_previously_edited_files(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.executor());
+        fs.insert_tree(
+            path!("/dir"),
+            json!({
+                "file1": "Lorem ipsum dolor"
+            }),
+        )
+        .await;
+        let project = Project::test(fs.clone(), [path!("/dir").as_ref()], cx).await;
+        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+        let file_path = project
+            .read_with(cx, |project, cx| project.find_project_path("dir/file1", cx))
+            .unwrap();
+
+        let buffer = project
+            .update(cx, |project, cx| project.open_buffer(file_path, cx))
+            .await
+            .unwrap();
+        cx.update(|cx| {
+            action_log.update(cx, |log, cx| log.buffer_read(buffer.clone(), cx));
+            buffer.update(cx, |buffer, cx| buffer.append(" sit amet consecteur", cx));
+            action_log.update(cx, |log, cx| log.buffer_edited(buffer.clone(), cx));
+        });
+        project
+            .update(cx, |project, cx| project.save_buffer(buffer.clone(), cx))
+            .await
+            .unwrap();
+        cx.run_until_parked();
+        assert_eq!(
+            unreviewed_hunks(&action_log, cx),
+            vec![(
+                buffer.clone(),
+                vec![HunkStatus {
+                    range: Point::new(0, 0)..Point::new(0, 37),
+                    diff_status: DiffHunkStatusKind::Modified,
+                    old_text: "Lorem ipsum dolor".into(),
+                }],
+            )]
+        );
+
+        cx.update(|cx| {
+            action_log.update(cx, |log, cx| log.buffer_created(buffer.clone(), cx));
+            buffer.update(cx, |buffer, cx| buffer.set_text("rewritten", cx));
+            action_log.update(cx, |log, cx| log.buffer_edited(buffer.clone(), cx));
+        });
+        project
+            .update(cx, |project, cx| project.save_buffer(buffer.clone(), cx))
+            .await
+            .unwrap();
+        cx.run_until_parked();
+        assert_eq!(
+            unreviewed_hunks(&action_log, cx),
+            vec![(
+                buffer.clone(),
+                vec![HunkStatus {
+                    range: Point::new(0, 0)..Point::new(0, 9),
+                    diff_status: DiffHunkStatusKind::Added,
+                    old_text: "".into(),
+                }],
+            )]
+        );
+
+        action_log
+            .update(cx, |log, cx| {
+                log.reject_edits_in_ranges(buffer.clone(), vec![2..5], cx)
+            })
+            .await
+            .unwrap();
+        cx.run_until_parked();
+        assert_eq!(unreviewed_hunks(&action_log, cx), vec![]);
+        assert_eq!(
+            buffer.read_with(cx, |buffer, _cx| buffer.text()),
+            "Lorem ipsum dolor"
+        );
+    }
+
    #[gpui::test(iterations = 10)]
    async fn test_deleting_files(cx: &mut TestAppContext) {
        init_test(cx);
@@ -1601,7 +1695,7 @@ mod tests {
            cx.run_until_parked();
            action_log.update(cx, |log, cx| {
                let tracked_buffer = log.tracked_buffers.get(&buffer).unwrap();
-                let mut old_text = tracked_buffer.base_text.clone();
+                let mut old_text = tracked_buffer.diff_base.clone();
                let new_text = buffer.read(cx).as_rope();
                for edit in tracked_buffer.unreviewed_changes.edits() {
                    let old_start = old_text.point_to_offset(Point::new(edit.new.start, 0));
--- a/crates/assistant_tool/src/assistant_tool.rs
+++ b/crates/assistant_tool/src/assistant_tool.rs
@@ -7,6 +7,7 @@ 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;
@@ -17,7 +18,8 @@ use gpui::IntoElement;
 use gpui::Window;
 use gpui::{App, Entity, SharedString, Task, WeakEntity};
 use icons::IconName;
-use language_model::LanguageModelRequestMessage;
+use language_model::LanguageModel;
+use language_model::LanguageModelRequest;
 use language_model::LanguageModelToolSchemaFormat;
 use project::Project;
 use workspace::Workspace;
@@ -61,11 +63,34 @@ 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<String>>,
+    pub output: Task<Result<ToolResultOutput>>,
    /// An optional view to present the output of the tool.
    pub card: Option<AnyToolCard>,
 }
@@ -128,9 +153,9 @@ impl AnyToolCard {
    }
 }

-impl From<Task<Result<String>>> for ToolResult {
+impl From<Task<Result<ToolResultOutput>>> for ToolResult {
    /// Convert from a task to a ToolResult with no card
-    fn from(output: Task<Result<String>>) -> Self {
+    fn from(output: Task<Result<ToolResultOutput>>) -> Self {
        Self { output, card: None }
    }
 }
@@ -181,12 +206,23 @@ pub trait Tool: 'static + Send + Sync {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        messages: &[LanguageModelRequestMessage],
+        request: Arc<LanguageModelRequest>,
        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
@@ -35,25 +35,17 @@ fn adapt_to_json_schema_subset(json: &mut Value) -> Result<()> {
            }
        }

-        const KEYS_TO_REMOVE: [&str; 4] = [
+        const KEYS_TO_REMOVE: [&str; 5] = [
            "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")
@@ -92,26 +84,6 @@ 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!({
@@ -157,7 +129,8 @@ mod tests {
            "format": "uint32",
            "exclusiveMinimum": 0,
            "exclusiveMaximum": 100,
-            "additionalProperties": false
+            "additionalProperties": false,
+            "optional": true
        });

        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_tool.workspace = true
 assistant_settings.workspace = true
+assistant_tool.workspace = true
 buffer_diff.workspace = true
 chrono.workspace = true
 collections.workspace = true
 component.workspace = true
-editor.workspace = true
 derive_more.workspace = true
+editor.workspace = true
 feature_flags.workspace = true
 futures.workspace = true
 gpui.workspace = true
@@ -35,8 +35,9 @@ indoc.workspace = true
 itertools.workspace = true
 language.workspace = true
 language_model.workspace = true
-log.workspace = true
 linkme.workspace = true
+log.workspace = true
+markdown.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
@@ -1,6 +1,5 @@
 mod copy_path_tool;
 mod create_directory_tool;
-mod create_file_tool;
 mod delete_path_tool;
 mod diagnostics_tool;
 mod edit_agent;
@@ -13,9 +12,7 @@ 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;
@@ -24,15 +21,12 @@ 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::*;
@@ -40,21 +34,19 @@ 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 create_file_tool::{CreateFileTool, CreateFileToolInput};
-pub use edit_file_tool::{EditFileTool, EditFileToolInput};
+pub use edit_file_tool::{EditFileMode, 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) {
@@ -75,12 +67,7 @@ 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));
-
-    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();
+    registry.register_tool(EditFileTool);

    register_web_search_tool(&LanguageModelRegistry::global(cx), cx);
    cx.subscribe(
@@ -107,29 +94,16 @@ 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::LanguageModelRequestMessage;
-use language_model::LanguageModelToolSchemaFormat;
+use language_model::LanguageModel;
+use language_model::{LanguageModelRequest, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -74,9 +74,10 @@ impl Tool for CopyPathTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _messages: &[LanguageModelRequestMessage],
+        _request: Arc<LanguageModelRequest>,
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
+        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -107,10 +108,9 @@ impl Tool for CopyPathTool {

        cx.background_spawn(async move {
            match copy_task.await {
-                Ok(_) => Ok(format!(
-                    "Copied {} to {}",
-                    input.source_path, input.destination_path
-                )),
+                Ok(_) => Ok(
+                    format!("Copied {} to {}", input.source_path, input.destination_path).into(),
+                ),
                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
@@ -3,8 +3,7 @@ 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 language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -62,9 +61,10 @@ impl Tool for CreateDirectoryTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _messages: &[LanguageModelRequestMessage],
+        _request: Arc<LanguageModelRequest>,
        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}"))
+            Ok(format!("Created directory {destination_path}").into())
        })
        .into()
    }
--- a/crates/assistant_tools/src/create_file_tool.rs
+++ b/crates/assistant_tools/src/create_file_tool.rs
@@ -1,195 +0,0 @@
-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
@@ -1,3 +0,0 @@
-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::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
 use project::{Project, ProjectPath};
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -59,9 +59,10 @@ impl Tool for DeletePathTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _messages: &[LanguageModelRequestMessage],
+        _request: Arc<LanguageModelRequest>,
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
+        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -127,7 +128,7 @@ impl Tool for DeletePathTool {

            match delete {
                Some(deletion_task) => match deletion_task.await {
-                    Ok(()) => Ok(format!("Deleted {path_str}")),
+                    Ok(()) => Ok(format!("Deleted {path_str}").into()),
                    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::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -79,9 +79,10 @@ impl Tool for DiagnosticsTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _messages: &[LanguageModelRequestMessage],
+        _request: Arc<LanguageModelRequest>,
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
+        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -122,9 +123,9 @@ impl Tool for DiagnosticsTool {
                    }

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

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

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

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

 #[derive(Clone)]
@@ -83,7 +84,7 @@ impl EditAgent {
        &self,
        buffer: Entity<Buffer>,
        edit_description: String,
-        previous_messages: Vec<LanguageModelRequestMessage>,
+        conversation: &LanguageModelRequest,
        cx: &mut AsyncApp,
    ) -> (
        Task<Result<EditAgentOutput>>,
@@ -91,6 +92,7 @@ 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))?;
@@ -99,7 +101,7 @@ impl EditAgent {
                edit_description,
            }
            .render(&this.templates)?;
-            let new_chunks = this.request(previous_messages, prompt, cx).await?;
+            let new_chunks = this.request(conversation, prompt, cx).await?;

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

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

@@ -194,7 +196,7 @@ impl EditAgent {
        &self,
        buffer: Entity<Buffer>,
        edit_description: String,
-        previous_messages: Vec<LanguageModelRequestMessage>,
+        conversation: &LanguageModelRequest,
        cx: &mut AsyncApp,
    ) -> (
        Task<Result<EditAgentOutput>>,
@@ -214,6 +216,7 @@ 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))?;
@@ -222,7 +225,7 @@ impl EditAgent {
                edit_description,
            }
            .render(&this.templates)?;
-            let edit_chunks = this.request(previous_messages, prompt, cx).await?;
+            let edit_chunks = this.request(conversation, prompt, cx).await?;

            let (output, mut inner_events) = this.apply_edit_chunks(buffer, edit_chunks, cx);
            while let Some(event) = inner_events.next().await {
@@ -269,6 +272,12 @@ impl EditAgent {
            let EditParserEvent::OldText(old_text_query) = edit_event? else {
                continue;
            };
+
+            // Skip edits with an empty old text.
+            if old_text_query.is_empty() {
+                continue;
+            }
+
            let old_text_query = SharedString::from(old_text_query);

            let (edits_tx, edits_rx) = mpsc::unbounded();
@@ -418,8 +427,8 @@ impl EditAgent {
                }
            }
            Ok(EditAgentOutput {
-                _raw_edits: raw_edits,
-                _parser_metrics: parser.finish(),
+                raw_edits,
+                parser_metrics: parser.finish(),
            })
        });
        (output, rx)
@@ -506,32 +515,67 @@ impl EditAgent {

    async fn request(
        &self,
-        mut messages: Vec<LanguageModelRequestMessage>,
+        mut conversation: LanguageModelRequest,
        prompt: String,
        cx: &mut AsyncApp,
    ) -> Result<BoxStream<'static, Result<String, LanguageModelCompletionError>>> {
-        let mut message_content = Vec::new();
-        if let Some(last_message) = messages.last_mut() {
+        let mut messages_iter = conversation.messages.iter_mut();
+        if let Some(last_message) = messages_iter.next_back() {
            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() {
-                    messages.pop();
+                    conversation.messages.pop();
                }
            }
        }
-        message_content.push(MessageContent::Text(prompt));
-        messages.push(LanguageModelRequestMessage {
+
+        conversation.messages.push(LanguageModelRequestMessage {
            role: Role::User,
-            content: message_content,
+            content: vec![MessageContent::Text(prompt)],
            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 {
-            messages,
-            ..Default::default()
+            thread_id: conversation.thread_id,
+            prompt_id: conversation.prompt_id,
+            mode: conversation.mode,
+            messages: conversation.messages,
+            tool_choice,
+            tools,
+            stop: Vec::new(),
+            temperature: None,
        };
+
        Ok(self.model.stream_completion_text(request, cx).await?.stream)
    }

@@ -742,6 +786,42 @@ mod tests {
    use unindent::Unindent;
    use util::test::{generate_marked_text, marked_text_ranges};

+    #[gpui::test(iterations = 100)]
+    async fn test_empty_old_text(cx: &mut TestAppContext, mut rng: StdRng) {
+        let agent = init_test(cx).await;
+        let buffer = cx.new(|cx| {
+            Buffer::local(
+                indoc! {"
+                    abc
+                    def
+                    ghi
+                "},
+                cx,
+            )
+        });
+        let raw_edits = simulate_llm_output(
+            indoc! {"
+                <old_text></old_text>
+                <new_text>jkl</new_text>
+                <old_text>def</old_text>
+                <new_text>DEF</new_text>
+            "},
+            &mut rng,
+            cx,
+        );
+        let (apply, _events) =
+            agent.apply_edit_chunks(buffer.clone(), raw_edits, &mut cx.to_async());
+        apply.await.unwrap();
+        pretty_assertions::assert_eq!(
+            buffer.read_with(cx, |buffer, _| buffer.snapshot().text()),
+            indoc! {"
+                abc
+                DEF
+                ghi
+            "}
+        );
+    }
+
    #[gpui::test(iterations = 100)]
    async fn test_indentation(cx: &mut TestAppContext, mut rng: StdRng) {
        let agent = init_test(cx).await;
--- a/crates/assistant_tools/src/edit_agent/edit_parser.rs
+++ b/crates/assistant_tools/src/edit_agent/edit_parser.rs
@@ -1,4 +1,6 @@
 use derive_more::{Add, AddAssign};
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
 use smallvec::SmallVec;
 use std::{cmp, mem, ops::Range};

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

-#[derive(Clone, Debug, Default, PartialEq, Eq, Add, AddAssign)]
+#[derive(
+    Clone, Debug, Default, PartialEq, Eq, Add, AddAssign, Serialize, Deserialize, JsonSchema,
+)]
 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
@@ -1,18 +1,21 @@
 use super::*;
 use crate::{
-    ReadFileToolInput, grep_tool::GrepToolInput,
-    streaming_edit_file_tool::StreamingEditFileToolInput,
+    ReadFileToolInput,
+    edit_file_tool::{EditFileMode, EditFileToolInput},
+    grep_tool::GrepToolInput,
 };
 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::indoc;
+use indoc::{formatdoc, indoc};
 use language_model::{
-    LanguageModelRegistry, LanguageModelToolResult, LanguageModelToolUse, LanguageModelToolUseId,
+    LanguageModelRegistry, LanguageModelRequestTool, LanguageModelToolResult, LanguageModelToolUse,
+    LanguageModelToolUseId,
 };
 use project::Project;
 use rand::prelude::*;
@@ -40,7 +43,7 @@ fn eval_extract_handle_command_output() {
            conversation: vec![
                message(
                    User,
-                    [text(indoc! {"
+                    [text(formatdoc! {"
                        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.
@@ -69,10 +72,10 @@ fn eval_extract_handle_command_output() {
                    [tool_use(
                        "tool_2",
                        "edit_file",
-                        StreamingEditFileToolInput {
+                        EditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
-                            create_or_overwrite: false,
+                            mode: EditFileMode::Edit,
                        },
                    )],
                ),
@@ -99,7 +102,7 @@ fn eval_delete_run_git_blame() {
            conversation: vec![
                message(
                    User,
-                    [text(indoc! {"
+                    [text(formatdoc! {"
                        Read the `{input_file_path}` file and delete `run_git_blame`. Just that
                        one function, not its usages.
                    "})],
@@ -125,10 +128,10 @@ fn eval_delete_run_git_blame() {
                    [tool_use(
                        "tool_2",
                        "edit_file",
-                        StreamingEditFileToolInput {
+                        EditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
-                            create_or_overwrite: false,
+                            mode: EditFileMode::Edit,
                        },
                    )],
                ),
@@ -141,6 +144,61 @@ 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(),
+                            mode: EditFileMode::Edit,
+                        },
+                    )],
+                ),
+            ],
+            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() {
@@ -155,7 +213,7 @@ fn eval_use_wasi_sdk_in_compile_parser_to_wasm() {
            conversation: vec![
                message(
                    User,
-                    [text(indoc! {"
+                    [text(formatdoc! {"
                        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.
@@ -163,7 +221,7 @@ 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
@@ -240,10 +298,10 @@ fn eval_use_wasi_sdk_in_compile_parser_to_wasm() {
                    [tool_use(
                        "tool_4",
                        "edit_file",
-                        StreamingEditFileToolInput {
+                        EditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
-                            create_or_overwrite: false,
+                            mode: EditFileMode::Edit,
                        },
                    )],
                ),
@@ -264,11 +322,10 @@ 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,
-        0.6, // TODO: make this eval better
+        0.95,
        EvalInput {
            conversation: vec![
                message(User, [text("Let's research how to cursor blinking works.")]),
@@ -316,10 +373,10 @@ fn eval_disable_cursor_blinking() {
                    [tool_use(
                        "tool_4",
                        "edit_file",
-                        StreamingEditFileToolInput {
+                        EditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
-                            create_or_overwrite: false,
+                            mode: EditFileMode::Edit,
                        },
                    )],
                ),
@@ -327,7 +384,11 @@ 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::assert_eq(output_file_content),
+            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
+            "}),
        },
    );
 }
@@ -506,10 +567,10 @@ fn eval_from_pixels_constructor() {
                    [tool_use(
                        "tool_5",
                        "edit_file",
-                        StreamingEditFileToolInput {
+                        EditFileToolInput {
                            display_description: edit_description.into(),
                            path: input_file_path.into(),
-                            create_or_overwrite: false,
+                            mode: EditFileMode::Edit,
                        },
                    )],
                ),
@@ -583,10 +644,10 @@ fn eval_zode() {
                        tool_use(
                            "tool_3",
                            "edit_file",
-                            StreamingEditFileToolInput {
+                            EditFileToolInput {
                                display_description: edit_description.into(),
                                path: input_file_path.into(),
-                                create_or_overwrite: true,
+                                mode: EditFileMode::Create,
                            },
                        ),
                    ],
@@ -828,10 +889,10 @@ fn eval_add_overwrite_test() {
                        tool_use(
                            "tool_5",
                            "edit_file",
-                            StreamingEditFileToolInput {
+                            EditFileToolInput {
                                display_description: edit_description.into(),
                                path: input_file_path.into(),
-                                create_or_overwrite: false,
+                                mode: EditFileMode::Edit,
                            },
                        ),
                    ],
@@ -895,6 +956,7 @@ fn tool_result(
        tool_name: name.into(),
        is_error: false,
        content: result.into(),
+        output: None,
    })
 }

@@ -1033,7 +1095,8 @@ impl EvalAssertion {

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

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

@@ -1050,7 +1113,6 @@ 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();
@@ -1058,7 +1120,7 @@ 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;
@@ -1075,7 +1137,7 @@ fn eval(iterations: usize, expected_pass_ratio: f32, mut eval: EvalInput) {
        }

        evaluated_count += 1;
-        report_progress(evaluated_count, iterations);
+        report_progress(evaluated_count, failed_count, iterations);
    }

    let actual_pass_ratio = (iterations - failed_count) as f32 / iterations as f32;
@@ -1139,15 +1201,26 @@ 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, iterations: usize) {
-    print!("\r\x1b[KEvaluated {}/{}", evaluated_count, iterations);
+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
+    };
+    print!(
+        "\r\x1b[KEvaluated {}/{} ({:.2}%)",
+        evaluated_count,
+        iterations,
+        passed_ratio * 100.0
+    );
    std::io::stdout().flush().unwrap();
 }

@@ -1160,25 +1233,30 @@ 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;
@@ -1227,12 +1305,32 @@ 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,
-                eval.conversation,
+                &conversation,
                &mut cx.to_async(),
            );
            edit_output.await?
@@ -1240,7 +1338,7 @@ impl EditAgentTest {
            let (edit_output, _) = self.agent.overwrite(
                buffer.clone(),
                eval.edit_description,
-                eval.conversation,
+                &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
@@ -0,0 +1,339 @@
+// 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
@@ -1,21 +1,27 @@
 use crate::{
-    replace::{replace_exact, replace_with_flexible_indent},
+    Templates,
+    edit_agent::{EditAgent, EditAgentOutput, EditAgentOutputEvent},
    schema::json_schema_for,
 };
-use anyhow::{Context as _, Result, anyhow};
-use assistant_tool::{ActionLog, AnyToolCard, Tool, ToolCard, ToolResult, ToolUseStatus};
-use buffer_diff::{BufferDiff, BufferDiffSnapshot};
-use editor::{Editor, EditorElement, EditorMode, EditorStyle, MultiBuffer, PathKey};
-use gpui::{
-    Animation, AnimationExt, AnyWindowHandle, App, AppContext, AsyncApp, Context, Entity, EntityId,
-    Task, TextStyle, WeakEntity, pulsating_between,
+use anyhow::{Result, anyhow};
+use assistant_tool::{
+    ActionLog, AnyToolCard, Tool, ToolCard, ToolResult, ToolResultOutput, ToolUseStatus,
 };
+use buffer_diff::{BufferDiff, BufferDiffSnapshot};
+use editor::{Editor, EditorMode, MultiBuffer, PathKey};
+use futures::StreamExt;
+use gpui::{
+    Animation, AnimationExt, AnyWindowHandle, App, AppContext, AsyncApp, Entity, EntityId, Task,
+    TextStyleRefinement, WeakEntity, pulsating_between,
+};
+use indoc::formatdoc;
 use language::{
    Anchor, Buffer, Capability, LanguageRegistry, LineEnding, OffsetRangeExt, Rope, TextBuffer,
    language_settings::SoftWrap,
 };
-use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
-use project::{AgentLocation, Project};
+use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use markdown::{Markdown, MarkdownElement, MarkdownStyle};
+use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use settings::Settings;
@@ -25,7 +31,7 @@ use std::{
    time::Duration,
 };
 use theme::ThemeSettings;
-use ui::{Disclosure, Tooltip, Window, prelude::*};
+use ui::{Disclosure, Tooltip, prelude::*};
 use util::ResultExt;
 use workspace::Workspace;

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

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct EditFileToolInput {
-    /// A user-friendly markdown description of what's being replaced. This will be shown in the UI.
+    /// 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>
@@ -42,7 +54,7 @@ pub struct EditFileToolInput {
    /// so that we can display it immediately.
    pub display_description: String,

-    /// The full path of the file to modify in the project.
+    /// 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.
@@ -63,11 +75,30 @@ pub struct EditFileToolInput {
    /// </example>
    pub path: PathBuf,

-    /// The text to replace.
-    pub old_string: String,
+    /// The mode of operation on the file. Possible values:
+    /// - 'edit': Make granular edits to an existing file.
+    /// - 'create': Create a new file if it doesn't exist.
+    /// - 'overwrite': Replace the entire contents of an existing file.
+    ///
+    /// When a file already exists or you just created it, prefer editing
+    /// it as opposed to recreating it from scratch.
+    pub mode: EditFileMode,
+}

-    /// The text to replace it with.
-    pub new_string: String,
+#[derive(Debug, Serialize, Deserialize, JsonSchema)]
+#[serde(rename_all = "lowercase")]
+pub enum EditFileMode {
+    Edit,
+    Create,
+    Overwrite,
+}
+
+#[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>,
 }

 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
@@ -76,10 +107,6 @@ 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";
@@ -131,9 +158,10 @@ impl Tool for EditFileTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _messages: &[LanguageModelRequestMessage],
+        request: Arc<LanguageModelRequest>,
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
+        model: Arc<dyn LanguageModel>,
        window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -142,6 +170,14 @@ 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| {
@@ -154,11 +190,7 @@ impl Tool for EditFileTool {

        let card_clone = card.clone();
        let task = cx.spawn(async move |cx: &mut AsyncApp| {
-            let project_path = project.read_with(cx, |project, cx| {
-                project
-                    .find_project_path(&input.path, cx)
-                    .context("Path not found in project")
-            })??;
+            let edit_agent = EditAgent::new(model, project.clone(), action_log, Templates::new());

            let buffer = project
                .update(cx, |project, cx| {
@@ -166,118 +198,93 @@ impl Tool for EditFileTool {
                })?
                .await?;

-            // 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 exists = buffer.read_with(cx, |buffer, _| {
+                buffer
+                    .file()
+                    .as_ref()
+                    .map_or(false, |file| file.disk_state().exists())
+            })?;
+            let create_or_overwrite = match input.mode {
+                EditFileMode::Create | EditFileMode::Overwrite => true,
+                _ => false,
+            };
+            if !create_or_overwrite && !exists {
+                return Err(anyhow!("{} not found", input.path.display()));
            }

-            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))
+            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 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 (output, mut events) = if 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 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 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,
                }
-
-                snapshot
-            })?;
+            }
+            let agent_output = output.await?;

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

-            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;
+            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),
+            };

            if let Some(card) = card_clone {
                card.update(cx, |card, cx| {
@@ -286,11 +293,23 @@ impl Tool for EditFileTool {
                .log_err();
            }

-            Ok(format!(
-                "Edited {}:\n\n```diff\n{}\n```",
-                input.path.display(),
-                diff_str
-            ))
+            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(),
+                })
+            }
        });

        ToolResult {
@@ -298,6 +317,32 @@ 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 {
@@ -307,7 +352,7 @@ pub struct EditFileToolCard {
    project: Entity<Project>,
    diff_task: Option<Task<Result<()>>>,
    preview_expanded: bool,
-    error_expanded: bool,
+    error_expanded: Option<Entity<Markdown>>,
    full_height_expanded: bool,
    total_lines: Option<u32>,
    editor_unique_id: EntityId,
@@ -350,7 +395,7 @@ impl EditFileToolCard {
            multibuffer,
            diff_task: None,
            preview_expanded: true,
-            error_expanded: false,
+            error_expanded: None,
            full_height_expanded: false,
            total_lines: None,
        }
@@ -407,9 +452,9 @@ impl ToolCard for EditFileToolCard {
        workspace: WeakEntity<Workspace>,
        cx: &mut Context<Self>,
    ) -> impl IntoElement {
-        let (failed, error_message) = match status {
-            ToolUseStatus::Error(err) => (true, Some(err.to_string())),
-            _ => (false, None),
+        let error_message = match status {
+            ToolUseStatus::Error(err) => Some(err),
+            _ => None,
        };

        let path_label_button = h_flex()
@@ -497,9 +542,11 @@ impl ToolCard for EditFileToolCard {
            .gap_1()
            .justify_between()
            .rounded_t_md()
-            .when(!failed, |header| header.bg(codeblock_header_bg))
+            .when(error_message.is_none(), |header| {
+                header.bg(codeblock_header_bg)
+            })
            .child(path_label_button)
-            .when(failed, |header| {
+            .when_some(error_message, |header, error_message| {
                header.child(
                    h_flex()
                        .gap_1()
@@ -511,19 +558,28 @@ impl ToolCard for EditFileToolCard {
                        .child(
                            Disclosure::new(
                                ("edit-file-error-disclosure", self.editor_unique_id),
-                                self.error_expanded,
+                                self.error_expanded.is_some(),
                            )
                            .opened_icon(IconName::ChevronUp)
                            .closed_icon(IconName::ChevronDown)
-                            .on_click(cx.listener(
-                                move |this, _event, _window, _cx| {
-                                    this.error_expanded = !this.error_expanded;
-                                },
-                            )),
+                            .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();
+                                }
+                            })),
                        ),
                )
            })
-            .when(!failed && self.has_diff(), |header| {
+            .when(error_message.is_none() && self.has_diff(), |header| {
                header.child(
                    Disclosure::new(
                        ("edit-file-disclosure", self.editor_unique_id),
@@ -545,33 +601,16 @@ impl ToolCard for EditFileToolCard {
                .map(|style| style.text.line_height_in_pixels(window.rem_size()))
                .unwrap_or_default();

-            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()
-                },
-            );
-
+            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);
            (element.into_any_element(), line_height)
        });

@@ -581,18 +620,18 @@ impl ToolCard for EditFileToolCard {
            (IconName::ChevronDown, "Expand Code Block")
        };

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

@@ -610,8 +649,9 @@ impl ToolCard for EditFileToolCard {

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

@@ -626,7 +666,7 @@ impl ToolCard for EditFileToolCard {
                    _ => div().w_1_2(),
                }
                .id("loading_div")
-                .h_2()
+                .h_1()
                .rounded_full()
                .bg(cx.theme().colors().element_active)
                .with_animation(
@@ -646,12 +686,12 @@ impl ToolCard for EditFileToolCard {
        v_flex()
            .mb_2()
            .border_1()
-            .when(failed, |card| card.border_dashed())
+            .when(error_message.is_some(), |card| card.border_dashed())
            .border_color(border_color)
-            .rounded_lg()
+            .rounded_md()
            .overflow_hidden()
            .child(codeblock_header)
-            .when(failed && self.error_expanded, |card| {
+            .when_some(self.error_expanded.as_ref(), |card, error_markdown| {
                card.child(
                    v_flex()
                        .p_2()
@@ -671,64 +711,81 @@ impl ToolCard for EditFileToolCard {
                                .rounded_md()
                                .text_ui_sm(cx)
                                .bg(cx.theme().colors().editor_background)
-                                .children(
-                                    error_message
-                                        .map(|error| div().child(error).into_any_element()),
-                                ),
+                                .child(MarkdownElement::new(
+                                    error_markdown.clone(),
+                                    markdown_style(window, cx),
+                                )),
                        ),
                )
            })
-            .when(!self.has_diff() && !failed, |card| {
+            .when(!self.has_diff() && error_message.is_none(), |card| {
                card.child(waiting_for_diff)
            })
-            .when(
-                !failed && self.preview_expanded && self.has_diff(),
-                |card| {
+            .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| {
                    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()
+                        h_flex()
+                            .id(("expand-button", self.editor_unique_id))
+                            .flex_none()
+                            .cursor_pointer()
+                            .h_5()
+                            .justify_center()
                            .border_t_1()
+                            .rounded_b_md()
                            .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),
-                            ),
+                            .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;
+                            })),
                    )
-                    .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;
-                                })),
-                        )
-                    })
-                },
-            )
+                })
+            })
+    }
+}
+
+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()
    }
 }

@@ -808,7 +865,48 @@ 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(),
+                    mode: EditFileMode::Edit,
+                })
+                .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() {
@@ -876,4 +974,13 @@ 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 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.
+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:

@@ -6,40 +6,3 @@ 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::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -142,9 +142,10 @@ impl Tool for FetchTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _messages: &[LanguageModelRequestMessage],
+        _request: Arc<LanguageModelRequest>,
        _project: Entity<Project>,
        _action_log: Entity<ActionLog>,
+        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -166,7 +167,7 @@ impl Tool for FetchTool {
                    bail!("no textual content found");
                }

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

            if matches.is_empty() {
-                Ok("No matches found".to_string())
+                Ok("No matches found".to_string().into())
            } else {
                let mut message = format!("Found {} total matches.", matches.len());
                if matches.len() > RESULTS_PER_PAGE {
@@ -113,7 +114,7 @@ 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)
+                Ok(message.into())
            }
        });

--- 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::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
 use project::{
    Project,
    search::{SearchQuery, SearchResult},
@@ -96,9 +96,10 @@ impl Tool for GrepTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _messages: &[LanguageModelRequestMessage],
+        _request: Arc<LanguageModelRequest>,
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
+        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -260,16 +261,16 @@ impl Tool for GrepTool {
            }

            if matches_found == 0 {
-                Ok("No matches found".to_string())
+                Ok("No matches found".to_string().into())
            } 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}"))
+                Ok(format!("Found {matches_found} matches:\n{output}").into())
            }
        }).into()
    }
@@ -281,6 +282,7 @@ 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;
@@ -743,14 +745,16 @@ mod tests {
    ) -> String {
        let tool = Arc::new(GrepTool);
        let action_log = cx.new(|_cx| ActionLog::new(project.clone()));
-        let task = cx.update(|cx| tool.run(input, &[], project, action_log, None, cx));
+        let model = Arc::new(FakeLanguageModel::default());
+        let task =
+            cx.update(|cx| tool.run(input, Arc::default(), project, action_log, model, None, cx));

        match task.output.await {
            Ok(result) => {
                if cfg!(windows) {
-                    result.replace("root\\", "root/")
+                    result.content.replace("root\\", "root/")
                } else {
-                    result
+                    result.content
                }
            }
            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::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -73,9 +73,10 @@ impl Tool for ListDirectoryTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _messages: &[LanguageModelRequestMessage],
+        _request: Arc<LanguageModelRequest>,
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
+        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -102,7 +103,7 @@ impl Tool for ListDirectoryTool {
                .collect::<Vec<_>>()
                .join("\n");

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

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

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

-        Task::ready(Ok(text)).into()
+        Task::ready(Ok(text.into())).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::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -49,9 +49,10 @@ impl Tool for OpenTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _messages: &[LanguageModelRequestMessage],
+        _request: Arc<LanguageModelRequest>,
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
+        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -70,7 +71,7 @@ impl Tool for OpenTool {
            }
            .context("Failed to open URL or file path")?;

-            Ok(format!("Successfully opened {}", input.path_or_url))
+            Ok(format!("Successfully opened {}", input.path_or_url).into())
        })
        .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::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
 use project::{AgentLocation, Project};
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -83,9 +83,10 @@ impl Tool for ReadFileTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _messages: &[LanguageModelRequestMessage],
+        _request: Arc<LanguageModelRequest>,
        project: Entity<Project>,
        action_log: Entity<ActionLog>,
+        _model: Arc<dyn LanguageModel>,
        _window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -97,27 +98,22 @@ 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(
@@ -145,9 +141,13 @@ 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()
+                        Itertools::intersperse(lines.take(count as usize), "\n")
+                            .collect::<String>()
+                            .into()
                    } else {
-                        Itertools::intersperse(lines, "\n").collect()
+                        Itertools::intersperse(lines, "\n")
+                            .collect::<String>()
+                            .into()
                    }
                })?;

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

-                    Ok(result)
+                    Ok(result.into())
                } 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."
-                    })
+                        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())
                }
            }
        })
@@ -205,6 +210,7 @@ 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;
@@ -218,13 +224,22 @@ 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, &[], project.clone(), action_log, None, cx)
+                    .run(
+                        input,
+                        Arc::default(),
+                        project.clone(),
+                        action_log,
+                        model,
+                        None,
+                        cx,
+                    )
                    .output
            })
            .await;
@@ -248,17 +263,26 @@ 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, &[], project.clone(), action_log, None, cx)
+                    .run(
+                        input,
+                        Arc::default(),
+                        project.clone(),
+                        action_log,
+                        model,
+                        None,
+                        cx,
+                    )
                    .output
            })
            .await;
-        assert_eq!(result.unwrap(), "This is a small file content");
+        assert_eq!(result.unwrap().content, "This is a small file content");
    }

    #[gpui::test]
@@ -277,6 +301,7 @@ 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| {
@@ -284,13 +309,21 @@ mod test {
                    "path": "root/large_file.rs"
                });
                Arc::new(ReadFileTool)
-                    .run(input, &[], project.clone(), action_log.clone(), None, cx)
+                    .run(
+                        input,
+                        Arc::default(),
+                        project.clone(),
+                        action_log.clone(),
+                        model.clone(),
+                        None,
+                        cx,
+                    )
                    .output
            })
            .await;
        let content = result.unwrap();
        assert_eq!(
-            content.lines().skip(2).take(6).collect::<Vec<_>>(),
+            content.lines().skip(4).take(6).collect::<Vec<_>>(),
            vec![
                "struct Test0 [L1-4]",
                " a [L2]",
@@ -308,7 +341,15 @@ mod test {
                    "offset": 1
                });
                Arc::new(ReadFileTool)
-                    .run(input, &[], project.clone(), action_log, None, cx)
+                    .run(
+                        input,
+                        Arc::default(),
+                        project.clone(),
+                        action_log,
+                        model,
+                        None,
+                        cx,
+                    )
                    .output
            })
            .await;
@@ -325,7 +366,7 @@ mod test {
        pretty_assertions::assert_eq!(
            content
                .lines()
-                .skip(2)
+                .skip(4)
                .take(expected_content.len())
                .collect::<Vec<_>>(),
            expected_content
@@ -346,6 +387,7 @@ 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!({
@@ -354,11 +396,19 @@ mod test {
                    "end_line": 4
                });
                Arc::new(ReadFileTool)
-                    .run(input, &[], project.clone(), action_log, None, cx)
+                    .run(
+                        input,
+                        Arc::default(),
+                        project.clone(),
+                        action_log,
+                        model,
+                        None,
+                        cx,
+                    )
                    .output
            })
            .await;
-        assert_eq!(result.unwrap(), "Line 2\nLine 3\nLine 4");
+        assert_eq!(result.unwrap().content, "Line 2\nLine 3\nLine 4");
    }

    #[gpui::test]
@@ -375,6 +425,7 @@ 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
@@ -385,11 +436,19 @@ mod test {
                    "end_line": 2
                });
                Arc::new(ReadFileTool)
-                    .run(input, &[], project.clone(), action_log.clone(), None, cx)
+                    .run(
+                        input,
+                        Arc::default(),
+                        project.clone(),
+                        action_log.clone(),
+                        model.clone(),
+                        None,
+                        cx,
+                    )
                    .output
            })
            .await;
-        assert_eq!(result.unwrap(), "Line 1\nLine 2");
+        assert_eq!(result.unwrap().content, "Line 1\nLine 2");

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

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

    fn init_test(cx: &mut TestAppContext) {
--- a/crates/assistant_tools/src/replace.rs
+++ b/crates/assistant_tools/src/replace.rs
@@ -1,872 +0,0 @@
-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
@@ -1,355 +0,0 @@
-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
@@ -1,8 +0,0 @@
-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
@@ -1,6 +1,4 @@
-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:
+You MUST respond with a series of edits to a file, using the following format:

 ```
 <edits>
@@ -51,3 +49,5 @@ 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
@@ -2,13 +2,18 @@ use crate::schema::json_schema_for;
 use anyhow::{Context as _, Result, anyhow, bail};
 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 gpui::{
+    AnyWindowHandle, App, AppContext, Empty, Entity, EntityId, Task, TextStyleRefinement,
+    WeakEntity, Window,
+};
 use language::LineEnding;
-use language_model::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
+use markdown::{Markdown, MarkdownElement, MarkdownStyle};
 use portable_pty::{CommandBuilder, PtySize, native_pty_system};
 use project::{Project, terminals::TerminalKind};
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
+use settings::Settings;
 use std::{
    env,
    path::{Path, PathBuf},
@@ -17,6 +22,7 @@ use std::{
    time::{Duration, Instant},
 };
 use terminal_view::TerminalView;
+use theme::ThemeSettings;
 use ui::{Disclosure, Tooltip, prelude::*};
 use util::{
    get_system_shell, markdown::MarkdownInlineCode, size::format_file_size,
@@ -107,9 +113,10 @@ impl Tool for TerminalTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _messages: &[LanguageModelRequestMessage],
+        _request: Arc<LanguageModelRequest>,
        project: Entity<Project>,
        _action_log: Entity<ActionLog>,
+        _model: Arc<dyn LanguageModel>,
        window: Option<AnyWindowHandle>,
        cx: &mut App,
    ) -> ToolResult {
@@ -178,7 +185,7 @@ impl Tool for TerminalTool {
                let exit_status = child.wait()?;
                let (processed_content, _) =
                    process_content(content, &input.command, Some(exit_status));
-                Ok(processed_content)
+                Ok(processed_content.into())
            });
            return ToolResult {
                output: task,
@@ -210,8 +217,21 @@ impl Tool for TerminalTool {
            }
        });

+        let command_markdown = cx.new(|cx| {
+            Markdown::new(
+                format!("```bash\n{}\n```", input.command).into(),
+                None,
+                None,
+                cx,
+            )
+        });
+
        let card = cx.new(|cx| {
-            TerminalToolCard::new(input.command.clone(), working_dir.clone(), cx.entity_id())
+            TerminalToolCard::new(
+                command_markdown.clone(),
+                working_dir.clone(),
+                cx.entity_id(),
+            )
        });

        let output = cx.spawn({
@@ -266,7 +286,7 @@ impl Tool for TerminalTool {
                    card.elapsed_time = Some(card.start_instant.elapsed());
                });

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

@@ -387,7 +407,7 @@ fn working_dir(
 }

 struct TerminalToolCard {
-    input_command: String,
+    input_command: Entity<Markdown>,
    working_dir: Option<PathBuf>,
    entity_id: EntityId,
    exit_status: Option<ExitStatus>,
@@ -403,7 +423,11 @@ struct TerminalToolCard {
 }

 impl TerminalToolCard {
-    pub fn new(input_command: String, working_dir: Option<PathBuf>, entity_id: EntityId) -> Self {
+    pub fn new(
+        input_command: Entity<Markdown>,
+        working_dir: Option<PathBuf>,
+        entity_id: EntityId,
+    ) -> Self {
        Self {
            input_command,
            working_dir,
@@ -426,7 +450,7 @@ impl ToolCard for TerminalToolCard {
    fn render(
        &mut self,
        status: &ToolUseStatus,
-        _window: &mut Window,
+        window: &mut Window,
        _workspace: WeakEntity<Workspace>,
        cx: &mut Context<Self>,
    ) -> impl IntoElement {
@@ -570,11 +594,25 @@ impl ToolCard for TerminalToolCard {
            .rounded_lg()
            .overflow_hidden()
            .child(
-                v_flex().p_2().gap_0p5().bg(header_bg).child(header).child(
-                    Label::new(self.input_command.clone())
-                        .buffer_font(cx)
-                        .size(LabelSize::Small),
-                ),
+                v_flex()
+                    .p_2()
+                    .gap_0p5()
+                    .bg(header_bg)
+                    .text_xs()
+                    .child(header)
+                    .child(
+                        MarkdownElement::new(
+                            self.input_command.clone(),
+                            markdown_style(window, cx),
+                        )
+                        .code_block_renderer(
+                            markdown::CodeBlockRenderer::Default {
+                                copy_button: false,
+                                copy_button_on_hover: true,
+                                border: false,
+                            },
+                        ),
+                    ),
            )
            .when(self.preview_expanded && !should_hide_terminal, |this| {
                this.child(
@@ -593,11 +631,33 @@ impl ToolCard for TerminalToolCard {
    }
 }

+fn markdown_style(window: &Window, cx: &App) -> MarkdownStyle {
+    let theme_settings = ThemeSettings::get_global(cx);
+    let buffer_font_size = TextSize::Default.rems(cx);
+    let mut text_style = window.text_style();
+
+    text_style.refine(&TextStyleRefinement {
+        font_family: Some(theme_settings.buffer_font.family.clone()),
+        font_fallbacks: theme_settings.buffer_font.fallbacks.clone(),
+        font_features: Some(theme_settings.buffer_font.features.clone()),
+        font_size: Some(buffer_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()
+    }
+}
+
 #[cfg(test)]
 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};
@@ -639,6 +699,7 @@ 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(),
@@ -653,15 +714,16 @@ 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();
+        let output = result.output.await.log_err().map(|output| output.content);
        assert_eq!(output, Some("Command executed successfully.".into()));
    }

@@ -681,19 +743,25 @@ 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();
+                let output = headless_result
+                    .output
+                    .await
+                    .log_err()
+                    .map(|output| output.content);
                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::{LanguageModelRequestMessage, LanguageModelToolSchemaFormat};
+use language_model::{LanguageModel, LanguageModelRequest, LanguageModelToolSchemaFormat};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
@@ -47,15 +47,16 @@ impl Tool for ThinkingTool {
    fn run(
        self: Arc<Self>,
        input: serde_json::Value,
-        _messages: &[LanguageModelRequestMessage],
+        _request: Arc<LanguageModelRequest>,
        _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()),
+            Ok(_input) => Ok("Finished thinking.".to_string().into()),
            Err(err) => Err(anyhow!(err)),
        })
        .into()
--- 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-loader-circle-icon lucide-loader-circle"><path d="M21 12a9 9 0 1 1-6.219-8.56"/></svg>`