fix include text

fix sync kind
store document selector
2025-08-25 19:19:49 +05:30 · 2025-08-25 19:07:44 +05:30 · 2025-08-25 18:49:50 +05:30 · 2025-08-25 17:58:50 +05:30 · 2025-08-25 17:58:01 +05:30 · 2025-08-25 17:02:23 +05:30
763 changed files with 28125 additions and 18881 deletions
--- a/.github/actionlint.yml
+++ b/.github/actionlint.yml
@@ -19,14 +19,27 @@ self-hosted-runner:
    - namespace-profile-16x32-ubuntu-2004-arm
    - namespace-profile-32x64-ubuntu-2004-arm
    # Namespace Ubuntu 22.04 (Everything else)
-    - namespace-profile-2x4-ubuntu-2204
    - namespace-profile-4x8-ubuntu-2204
    - namespace-profile-8x16-ubuntu-2204
    - namespace-profile-16x32-ubuntu-2204
    - namespace-profile-32x64-ubuntu-2204
+    # Namespace Ubuntu 24.04 (like ubuntu-latest)
+    - namespace-profile-2x4-ubuntu-2404
    # Namespace Limited Preview
    - namespace-profile-8x16-ubuntu-2004-arm-m4
    - namespace-profile-8x32-ubuntu-2004-arm-m4
    # Self Hosted Runners
    - self-mini-macos
    - self-32vcpu-windows-2022
+
+# Disable shellcheck because it doesn't like powershell
+# This should have been triggered with initial rollout of actionlint
+# but https://github.com/zed-industries/zed/pull/36693
+# somehow caused actionlint to actually check those windows jobs
+# where previously they were being skipped. Likely caused by an
+# unknown bug in actionlint where parsing of `runs-on: [ ]`
+# breaks something else. (yuck)
+paths:
+  .github/workflows/{ci,release_nightly}.yml:
+    ignore:
+      - "shellcheck"
--- a/.github/actions/run_tests_windows/action.yml
+++ b/.github/actions/run_tests_windows/action.yml
@@ -56,7 +56,6 @@ runs:
        $env:COMPlus_CreateDumpDiagnostics = "1"

        cargo nextest run --workspace --no-fail-fast
-      continue-on-error: true

    - name: Analyze crash dumps
      if: always()
--- a/.github/workflows/bump_collab_staging.yml
+++ b/.github/workflows/bump_collab_staging.yml
@@ -8,7 +8,7 @@ on:
 jobs:
  update-collab-staging-tag:
    if: github.repository_owner == 'zed-industries'
-    runs-on: ubuntu-latest
+    runs-on: namespace-profile-2x4-ubuntu-2404
    steps:
      - name: Checkout repository
        uses: actions/checkout@11bd71901bbe5b1630ceea73d27597364c9af683 # v4
--- a/.github/workflows/ci.yml
+++ b/.github/workflows/ci.yml
@@ -37,7 +37,7 @@ jobs:
      run_nix: ${{ steps.filter.outputs.run_nix }}
      run_actionlint: ${{ steps.filter.outputs.run_actionlint }}
    runs-on:
-      - ubuntu-latest
+      - namespace-profile-2x4-ubuntu-2404
    steps:
      - name: Checkout repo
        uses: actions/checkout@11bd71901bbe5b1630ceea73d27597364c9af683 # v4
@@ -237,7 +237,7 @@ jobs:
        uses: ./.github/actions/build_docs

  actionlint:
-    runs-on: ubuntu-latest
+    runs-on: namespace-profile-2x4-ubuntu-2404
    if: github.repository_owner == 'zed-industries' && needs.job_spec.outputs.run_actionlint == 'true'
    needs: [job_spec]
    steps:
@@ -418,7 +418,7 @@ jobs:
    if: |
      github.repository_owner == 'zed-industries' &&
      needs.job_spec.outputs.run_tests == 'true'
-    runs-on: [self-hosted, Windows, X64]
+    runs-on: [self-32vcpu-windows-2022]
    steps:
      - name: Environment Setup
        run: |
@@ -458,7 +458,7 @@ jobs:

  tests_pass:
    name: Tests Pass
-    runs-on: ubuntu-latest
+    runs-on: namespace-profile-2x4-ubuntu-2404
    needs:
      - job_spec
      - style
@@ -784,7 +784,7 @@ jobs:
  bundle-windows-x64:
    timeout-minutes: 120
    name: Create a Windows installer
-    runs-on: [self-hosted, Windows, X64]
+    runs-on: [self-32vcpu-windows-2022]
    if: contains(github.event.pull_request.labels.*.name, 'run-bundling')
    # if: (startsWith(github.ref, 'refs/tags/v') || contains(github.event.pull_request.labels.*.name, 'run-bundling'))
    needs: [windows_tests]
--- a/.github/workflows/danger.yml
+++ b/.github/workflows/danger.yml
@@ -12,7 +12,7 @@ on:
 jobs:
  danger:
    if: github.repository_owner == 'zed-industries'
-    runs-on: ubuntu-latest
+    runs-on: namespace-profile-2x4-ubuntu-2404

    steps:
      - uses: actions/checkout@11bd71901bbe5b1630ceea73d27597364c9af683 # v4
--- a/.github/workflows/release_nightly.yml
+++ b/.github/workflows/release_nightly.yml
@@ -59,7 +59,7 @@ jobs:
    timeout-minutes: 60
    name: Run tests on Windows
    if: github.repository_owner == 'zed-industries'
-    runs-on: [self-hosted, Windows, X64]
+    runs-on: [self-32vcpu-windows-2022]
    steps:
      - name: Checkout repo
        uses: actions/checkout@11bd71901bbe5b1630ceea73d27597364c9af683 # v4
@@ -206,9 +206,6 @@ jobs:
    runs-on: github-8vcpu-ubuntu-2404
    needs: tests
    name: Build Zed on FreeBSD
-    # env:
-    #   MYTOKEN : ${{ secrets.MYTOKEN }}
-    #   MYTOKEN2: "value2"
    steps:
      - uses: actions/checkout@v4
      - name: Build FreeBSD remote-server
@@ -243,7 +240,6 @@ jobs:

  bundle-nix:
    name: Build and cache Nix package
-    if: false
    needs: tests
    secrets: inherit
    uses: ./.github/workflows/nix.yml
@@ -252,7 +248,7 @@ jobs:
    timeout-minutes: 60
    name: Create a Windows installer
    if: github.repository_owner == 'zed-industries'
-    runs-on: [self-hosted, Windows, X64]
+    runs-on: [self-32vcpu-windows-2022]
    needs: windows-tests
    env:
      AZURE_TENANT_ID: ${{ secrets.AZURE_SIGNING_TENANT_ID }}
@@ -294,7 +290,7 @@ jobs:
  update-nightly-tag:
    name: Update nightly tag
    if: github.repository_owner == 'zed-industries'
-    runs-on: ubuntu-latest
+    runs-on: namespace-profile-2x4-ubuntu-2404
    needs:
      - bundle-mac
      - bundle-linux-x86
--- a/.github/workflows/script_checks.yml
+++ b/.github/workflows/script_checks.yml
@@ -12,7 +12,7 @@ jobs:
  shellcheck:
    name: "ShellCheck Scripts"
    if: github.repository_owner == 'zed-industries'
-    runs-on: ubuntu-latest
+    runs-on: namespace-profile-2x4-ubuntu-2404

    steps:
      - uses: actions/checkout@11bd71901bbe5b1630ceea73d27597364c9af683 # v4
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -7,7 +7,6 @@ name = "acp_thread"
 version = "0.1.0"
 dependencies = [
 "action_log",
- "agent",
 "agent-client-protocol",
 "anyhow",
 "buffer_diff",
@@ -40,6 +39,26 @@ dependencies = [
 "workspace-hack",
 ]

+[[package]]
+name = "acp_tools"
+version = "0.1.0"
+dependencies = [
+ "agent-client-protocol",
+ "collections",
+ "gpui",
+ "language",
+ "markdown",
+ "project",
+ "serde",
+ "serde_json",
+ "settings",
+ "theme",
+ "ui",
+ "util",
+ "workspace",
+ "workspace-hack",
+]
+
 [[package]]
 name = "action_log"
 version = "0.1.0"
@@ -131,7 +150,6 @@ dependencies = [
 "component",
 "context_server",
 "convert_case 0.8.0",
- "feature_flags",
 "fs",
 "futures 0.3.31",
 "git",
@@ -173,11 +191,12 @@ dependencies = [

 [[package]]
 name = "agent-client-protocol"
-version = "0.0.26"
+version = "0.0.31"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "160971bb53ca0b2e70ebc857c21e24eb448745f1396371015f4c59e9a9e51ed0"
+checksum = "289eb34ee17213dadcca47eedadd386a5e7678094095414e475965d1bcca2860"
 dependencies = [
 "anyhow",
+ "async-broadcast",
 "futures 0.3.31",
 "log",
 "parking_lot",
@@ -192,10 +211,12 @@ version = "0.1.0"
 dependencies = [
 "acp_thread",
 "action_log",
+ "agent",
 "agent-client-protocol",
 "agent_servers",
 "agent_settings",
 "anyhow",
+ "assistant_context",
 "assistant_tool",
 "assistant_tools",
 "chrono",
@@ -205,10 +226,12 @@ dependencies = [
 "collections",
 "context_server",
 "ctor",
+ "db",
 "editor",
 "env_logger 0.11.8",
 "fs",
 "futures 0.3.31",
+ "git",
 "gpui",
 "gpui_tokio",
 "handlebars 4.5.0",
@@ -222,6 +245,7 @@ dependencies = [
 "log",
 "lsp",
 "open",
+ "parking_lot",
 "paths",
 "portable-pty",
 "pretty_assertions",
@@ -234,11 +258,14 @@ dependencies = [
 "serde_json",
 "settings",
 "smol",
+ "sqlez",
 "task",
+ "telemetry",
 "tempfile",
 "terminal",
 "text",
 "theme",
+ "thiserror 2.0.12",
 "tree-sitter-rust",
 "ui",
 "unindent",
@@ -250,6 +277,7 @@ dependencies = [
 "workspace-hack",
 "worktree",
 "zlog",
+ "zstd",
 ]

 [[package]]
@@ -257,15 +285,19 @@ name = "agent_servers"
 version = "0.1.0"
 dependencies = [
 "acp_thread",
+ "acp_tools",
+ "action_log",
 "agent-client-protocol",
 "agent_settings",
- "agentic-coding-protocol",
 "anyhow",
+ "client",
 "collections",
 "context_server",
 "env_logger 0.11.8",
+ "fs",
 "futures 0.3.31",
 "gpui",
+ "gpui_tokio",
 "indoc",
 "itertools 0.14.0",
 "language",
@@ -277,7 +309,9 @@ dependencies = [
 "paths",
 "project",
 "rand 0.8.5",
+ "reqwest_client",
 "schemars",
+ "semver",
 "serde",
 "serde_json",
 "settings",
@@ -369,6 +403,7 @@ dependencies = [
 "parking_lot",
 "paths",
 "picker",
+ "postage",
 "pretty_assertions",
 "project",
 "prompt_store",
@@ -408,24 +443,6 @@ dependencies = [
 "zed_actions",
 ]

-[[package]]
-name = "agentic-coding-protocol"
-version = "0.0.10"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "a3e6ae951b36fa2f8d9dd6e1af6da2fcaba13d7c866cf6a9e65deda9dc6c5fe4"
-dependencies = [
- "anyhow",
- "chrono",
- "derive_more 2.0.1",
- "futures 0.3.31",
- "log",
- "parking_lot",
- "schemars",
- "semver",
- "serde",
- "serde_json",
-]
-
 [[package]]
 name = "ahash"
 version = "0.7.8"
@@ -841,7 +858,7 @@ dependencies = [
 "anyhow",
 "async-trait",
 "collections",
- "derive_more 0.99.19",
+ "derive_more",
 "extension",
 "futures 0.3.31",
 "gpui",
@@ -904,7 +921,7 @@ dependencies = [
 "clock",
 "collections",
 "ctor",
- "derive_more 0.99.19",
+ "derive_more",
 "gpui",
 "icons",
 "indoc",
@@ -941,7 +958,7 @@ dependencies = [
 "cloud_llm_client",
 "collections",
 "component",
- "derive_more 0.99.19",
+ "derive_more",
 "diffy",
 "editor",
 "feature_flags",
@@ -1367,10 +1384,11 @@ version = "0.1.0"
 dependencies = [
 "anyhow",
 "collections",
- "derive_more 0.99.19",
 "gpui",
- "parking_lot",
 "rodio",
+ "schemars",
+ "serde",
+ "settings",
 "util",
 "workspace-hack",
 ]
@@ -3053,7 +3071,7 @@ dependencies = [
 "cocoa 0.26.0",
 "collections",
 "credentials_provider",
- "derive_more 0.99.19",
+ "derive_more",
 "feature_flags",
 "fs",
 "futures 0.3.31",
@@ -3485,7 +3503,7 @@ name = "command_palette_hooks"
 version = "0.1.0"
 dependencies = [
 "collections",
- "derive_more 0.99.19",
+ "derive_more",
 "gpui",
 "workspace-hack",
 ]
@@ -3866,7 +3884,7 @@ dependencies = [
 "jni",
 "js-sys",
 "libc",
- "mach2",
+ "mach2 0.4.2",
 "ndk",
 "ndk-context",
 "num-derive",
@@ -4016,7 +4034,7 @@ checksum = "031ed29858d90cfdf27fe49fae28028a1f20466db97962fa2f4ea34809aeebf3"
 dependencies = [
 "cfg-if",
 "libc",
- "mach2",
+ "mach2 0.4.2",
 ]

 [[package]]
@@ -4028,7 +4046,7 @@ dependencies = [
 "cfg-if",
 "crash-context",
 "libc",
- "mach2",
+ "mach2 0.4.2",
 "parking_lot",
 ]

@@ -4036,14 +4054,17 @@ dependencies = [
 name = "crashes"
 version = "0.1.0"
 dependencies = [
+ "bincode",
 "crash-handler",
 "log",
+ "mach2 0.5.0",
 "minidumper",
 "paths",
 "release_channel",
 "serde",
 "serde_json",
 "smol",
+ "system_specs",
 "workspace-hack",
 ]

@@ -4645,27 +4666,6 @@ dependencies = [
 "syn 2.0.101",
 ]

-[[package]]
-name = "derive_more"
-version = "2.0.1"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "093242cf7570c207c83073cf82f79706fe7b8317e98620a47d5be7c3d8497678"
-dependencies = [
- "derive_more-impl",
-]
-
-[[package]]
-name = "derive_more-impl"
-version = "2.0.1"
-source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "bda628edc44c4bb645fbe0f758797143e4e07926f7ebf4e9bdfbd3d2ce621df3"
-dependencies = [
- "proc-macro2",
- "quote",
- "syn 2.0.101",
- "unicode-xid",
-]
-
 [[package]]
 name = "derive_refineable"
 version = "0.1.0"
@@ -4686,7 +4686,6 @@ dependencies = [
 "component",
 "ctor",
 "editor",
- "futures 0.3.31",
 "gpui",
 "indoc",
 "language",
@@ -5723,14 +5722,10 @@ dependencies = [
 name = "feedback"
 version = "0.1.0"
 dependencies = [
- "client",
 "editor",
 "gpui",
- "human_bytes",
 "menu",
- "release_channel",
- "serde",
- "sysinfo",
+ "system_specs",
 "ui",
 "urlencoding",
 "util",
@@ -6406,7 +6401,7 @@ dependencies = [
 "askpass",
 "async-trait",
 "collections",
- "derive_more 0.99.19",
+ "derive_more",
 "futures 0.3.31",
 "git2",
 "gpui",
@@ -7436,7 +7431,7 @@ dependencies = [
 "core-video",
 "cosmic-text",
 "ctor",
- "derive_more 0.99.19",
+ "derive_more",
 "embed-resource",
 "env_logger 0.11.8",
 "etagere",
@@ -7524,6 +7519,7 @@ dependencies = [
 name = "gpui_tokio"
 version = "0.1.0"
 dependencies = [
+ "anyhow",
 "gpui",
 "tokio",
 "util",
@@ -7960,7 +7956,7 @@ version = "0.1.0"
 dependencies = [
 "anyhow",
 "bytes 1.10.1",
- "derive_more 0.99.19",
+ "derive_more",
 "futures 0.3.31",
 "http 1.3.1",
 "http-body 1.0.1",
@@ -9608,6 +9604,7 @@ version = "0.1.0"
 dependencies = [
 "anyhow",
 "async-trait",
+ "audio",
 "collections",
 "core-foundation 0.10.0",
 "core-video",
@@ -9630,6 +9627,7 @@ dependencies = [
 "scap",
 "serde",
 "serde_json",
+ "settings",
 "sha2",
 "simplelog",
 "smallvec",
@@ -9860,6 +9858,15 @@ dependencies = [
 "libc",
 ]

+[[package]]
+name = "mach2"
+version = "0.5.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "6a1b95cd5421ec55b445b5ae102f5ea0e768de1f82bd3001e11f426c269c3aea"
+dependencies = [
+ "libc",
+]
+
 [[package]]
 name = "malloc_buf"
 version = "0.0.6"
@@ -10196,7 +10203,7 @@ dependencies = [
 "goblin",
 "libc",
 "log",
- "mach2",
+ "mach2 0.4.2",
 "memmap2",
 "memoffset",
 "minidump-common",
@@ -11607,6 +11614,12 @@ dependencies = [
 "hmac",
 ]

+[[package]]
+name = "pciid-parser"
+version = "0.8.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "0008e816fcdaf229cdd540e9b6ca2dc4a10d65c31624abb546c6420a02846e61"
+
 [[package]]
 name = "pem"
 version = "3.0.5"
@@ -14346,12 +14359,10 @@ version = "1.0.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "fe8c9d1c68d67dd9f97ecbc6f932b60eb289c5dbddd8aa1405484a8fd2fcd984"
 dependencies = [
- "chrono",
 "dyn-clone",
 "indexmap",
 "ref-cast",
 "schemars_derive",
- "semver",
 "serde",
 "serde_json",
 ]
@@ -16127,6 +16138,21 @@ dependencies = [
 "winx",
 ]

+[[package]]
+name = "system_specs"
+version = "0.1.0"
+dependencies = [
+ "anyhow",
+ "client",
+ "gpui",
+ "human_bytes",
+ "pciid-parser",
+ "release_channel",
+ "serde",
+ "sysinfo",
+ "workspace-hack",
+]
+
 [[package]]
 name = "tab_switcher"
 version = "0.1.0"
@@ -16420,7 +16446,7 @@ version = "0.1.0"
 dependencies = [
 "anyhow",
 "collections",
- "derive_more 0.99.19",
+ "derive_more",
 "fs",
 "futures 0.3.31",
 "gpui",
@@ -18286,7 +18312,7 @@ dependencies = [
 "indexmap",
 "libc",
 "log",
- "mach2",
+ "mach2 0.4.2",
 "memfd",
 "object",
 "once_cell",
@@ -19761,7 +19787,6 @@ dependencies = [
 "any_vec",
 "anyhow",
 "async-recursion",
- "bincode",
 "call",
 "client",
 "clock",
@@ -19780,6 +19805,7 @@ dependencies = [
 "node_runtime",
 "parking_lot",
 "postage",
+ "pretty_assertions",
 "project",
 "remote",
 "schemars",
@@ -19935,7 +19961,6 @@ dependencies = [
 "rustix 1.0.7",
 "rustls 0.23.26",
 "rustls-webpki 0.103.1",
- "schemars",
 "scopeguard",
 "sea-orm",
 "sea-query-binder",
@@ -20369,8 +20394,9 @@ dependencies = [

 [[package]]
 name = "zed"
-version = "0.201.0"
+version = "0.202.0"
 dependencies = [
+ "acp_tools",
 "activity_indicator",
 "agent",
 "agent_servers",
@@ -20386,6 +20412,7 @@ dependencies = [
 "auto_update",
 "auto_update_ui",
 "backtrace",
+ "bincode",
 "breadcrumbs",
 "call",
 "channel",
@@ -20484,6 +20511,7 @@ dependencies = [
 "supermaven",
 "svg_preview",
 "sysinfo",
+ "system_specs",
 "tab_switcher",
 "task",
 "tasks_ui",
--- a/Cargo.toml
+++ b/Cargo.toml
@@ -1,6 +1,7 @@
 [workspace]
 resolver = "2"
 members = [
+    "crates/acp_tools",
    "crates/acp_thread",
    "crates/action_log",
    "crates/activity_indicator",
@@ -155,6 +156,7 @@ members = [
    "crates/streaming_diff",
    "crates/sum_tree",
    "crates/supermaven",
+    "crates/system_specs",
    "crates/supermaven_api",
    "crates/svg_preview",
    "crates/tab_switcher",
@@ -226,6 +228,7 @@ edition = "2024"
 # Workspace member crates
 #

+acp_tools = { path = "crates/acp_tools" }
 acp_thread = { path = "crates/acp_thread" }
 action_log = { path = "crates/action_log" }
 agent = { path = "crates/agent" }
@@ -381,6 +384,7 @@ streaming_diff = { path = "crates/streaming_diff" }
 sum_tree = { path = "crates/sum_tree" }
 supermaven = { path = "crates/supermaven" }
 supermaven_api = { path = "crates/supermaven_api" }
+system_specs = { path = "crates/system_specs" }
 tab_switcher = { path = "crates/tab_switcher" }
 task = { path = "crates/task" }
 tasks_ui = { path = "crates/tasks_ui" }
@@ -422,8 +426,7 @@ zlog_settings = { path = "crates/zlog_settings" }
 # External crates
 #

-agentic-coding-protocol = "0.0.10"
-agent-client-protocol = "0.0.26"
+agent-client-protocol = "0.0.31"
 aho-corasick = "1.1"
 alacritty_terminal = { git = "https://github.com/zed-industries/alacritty.git", branch = "add-hush-login-flag" }
 any_vec = "0.14"
@@ -450,6 +453,7 @@ aws-sdk-bedrockruntime = { version = "1.80.0", features = [
 aws-smithy-runtime-api = { version = "1.7.4", features = ["http-1x", "client"] }
 aws-smithy-types = { version = "1.3.0", features = ["http-body-1-x"] }
 base64 = "0.22"
+bincode = "1.2.1"
 bitflags = "2.6.0"
 blade-graphics = { git = "https://github.com/kvark/blade", rev = "e0ec4e720957edd51b945b64dd85605ea54bcfe5" }
 blade-macros = { git = "https://github.com/kvark/blade", rev = "e0ec4e720957edd51b945b64dd85605ea54bcfe5" }
@@ -493,6 +497,7 @@ handlebars = "4.3"
 heck = "0.5"
 heed = { version = "0.21.0", features = ["read-txn-no-tls"] }
 hex = "0.4.3"
+human_bytes = "0.4.1"
 html5ever = "0.27.0"
 http = "1.1"
 http-body = "1.0"
@@ -515,6 +520,7 @@ libsqlite3-sys = { version = "0.30.1", features = ["bundled"] }
 linkify = "0.10.0"
 log = { version = "0.4.16", features = ["kv_unstable_serde", "serde"] }
 lsp-types = { git = "https://github.com/zed-industries/lsp-types", rev = "39f629bdd03d59abd786ed9fc27e8bca02c0c0ec" }
+mach2 = "0.5"
 markup5ever_rcdom = "0.3.0"
 metal = "0.29"
 minidumper = "0.8"
@@ -531,6 +537,7 @@ palette = { version = "0.7.5", default-features = false, features = ["std"] }
 parking_lot = "0.12.1"
 partial-json-fixer = "0.5.3"
 parse_int = "0.9"
+pciid-parser = "0.8.0"
 pathdiff = "0.2"
 pet = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "845945b830297a50de0e24020b980a65e4820559" }
 pet-conda = { git = "https://github.com/microsoft/python-environment-tools.git", rev = "845945b830297a50de0e24020b980a65e4820559" }
@@ -801,47 +808,33 @@ unexpected_cfgs = { level = "allow" }
 dbg_macro = "deny"
 todo = "deny"

+# This is not a style lint, see https://github.com/rust-lang/rust-clippy/pull/15454
+# Remove when the lint gets promoted to `suspicious`.
+declare_interior_mutable_const = "deny"
+
+redundant_clone = "deny"
+
+# We currently do not restrict any style rules
+# as it slows down shipping code to Zed.
+#
+# Running ./script/clippy can take several minutes, and so it's
+# common to skip that step and let CI do it. Any unexpected failures
+# (which also take minutes to discover) thus require switching back
+# to an old branch, manual fixing, and re-pushing.
+#
+# In the future we could improve this by either making sure
+# Zed can surface clippy errors in diagnostics (in addition to the
+# rust-analyzer errors), or by having CI fix style nits automatically.
+style = { level = "allow", priority = -1 }
+
+# Individual rules that have violations in the codebase:
+type_complexity = "allow"
+let_underscore_future = "allow"
+
 # Motivation: We use `vec![a..b]` a lot when dealing with ranges in text, so
 # warning on this rule produces a lot of noise.
 single_range_in_vec_init = "allow"

-# These are all of the rules that currently have violations in the Zed
-# codebase.
-#
-# We'll want to drive this list down by either:
-# 1. fixing violations of the rule and begin enforcing it
-# 2. deciding we want to allow the rule permanently, at which point
-#    we should codify that separately above.
-#
-# This list shouldn't be added to; it should only get shorter.
-# =============================================================================
-
-# There are a bunch of rules currently failing in the `style` group, so
-# allow all of those, for now.
-style = { level = "allow", priority = -1 }
-
-# Temporary list of style lints that we've fixed so far.
-iter_cloned_collect = "warn"
-iter_next_slice = "warn"
-iter_nth = "warn"
-iter_nth_zero = "warn"
-iter_skip_next = "warn"
-module_inception = { level = "deny" }
-question_mark = { level = "deny" }
-redundant_closure = { level = "deny" }
-declare_interior_mutable_const = { level = "deny" }
-needless_borrow = { level = "warn"}
-# Individual rules that have violations in the codebase:
-type_complexity = "allow"
-# We often return trait objects from `new` functions.
-new_ret_no_self = { level = "allow" }
-# We have a few `next` functions that differ in lifetimes
-# compared to Iterator::next. Yet, clippy complains about those.
-should_implement_trait = { level = "allow" }
-let_underscore_future = "allow"
-# It doesn't make sense to implement `Default` unilaterally.
-new_without_default = "allow"
-
 # in Rust it can be very tedious to reduce argument count without
 # running afoul of the borrow checker.
 too_many_arguments = "allow"
--- a/Procfile.web
+++ b/Procfile.web
@@ -0,0 +1,2 @@
+postgrest_llm: postgrest crates/collab/postgrest_llm.conf
+website: cd ../zed.dev; npm run dev -- --port=3000
--- a/assets/icons/attach.svg
+++ b/assets/icons/attach.svg
@@ -0,0 +1,3 @@
+<svg width="16" height="16" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg">
+<path d="M7.37288 4.48506L7.43539 10.6638C7.43539 10.9365 7.54373 11.1981 7.73655 11.3909C7.92938 11.5837 8.19092 11.6921 8.46362 11.6921C8.73632 11.6921 8.99785 11.5837 9.19068 11.3909C9.38351 11.1981 9.49184 10.9366 9.49184 10.6638L9.42933 4.48506C9.42933 3.93975 9.2127 3.41678 8.82711 3.03119C8.44152 2.6456 7.91855 2.42898 7.37324 2.42898C6.82794 2.42898 6.30496 2.6456 5.91937 3.03119C5.53378 3.41678 5.31716 3.93975 5.31716 4.48506L5.37968 10.6384C5.37636 11.0455 5.45368 11.4492 5.60718 11.8263C5.76067 12.2034 5.98731 12.5463 6.27401 12.8354C6.56071 13.1244 6.9018 13.3538 7.27761 13.5104C7.65341 13.667 8.0565 13.7476 8.46362 13.7476C8.87073 13.7476 9.27382 13.667 9.64963 13.5104C10.0254 13.3538 10.3665 13.1244 10.6532 12.8354C10.9399 12.5463 11.1666 12.2034 11.3201 11.8263C11.4736 11.4492 11.5509 11.0455 11.5476 10.6384L11.485 4.48506" stroke="black" stroke-width="1.2" stroke-linecap="round" stroke-linejoin="round"/>
+</svg>
--- a/assets/icons/menu_alt.svg
+++ b/assets/icons/menu_alt.svg
@@ -1 +1,3 @@
-<svg xmlns="http://www.w3.org/2000/svg" width="16" height="16" fill="none"><path stroke="#000" stroke-linecap="round" stroke-linejoin="round" stroke-width="1.2" d="M2.667 8h8M2.667 4h10.666M2.667 12H8"/></svg>
+<svg width="16" height="16" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg">
+<path d="M2.66699 8H10.667M2.66699 4H13.333M2.66699 12H7.99999" stroke="black" stroke-width="1.25" stroke-linecap="round" stroke-linejoin="round"/>
+</svg>
--- a/assets/icons/menu_alt_temp.svg
+++ b/assets/icons/menu_alt_temp.svg
@@ -0,0 +1,3 @@
+<svg width="16" height="16" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg">
+<path d="M13.333 10H8M13.333 6H2.66701" stroke="black" stroke-width="1.25" stroke-linecap="round" stroke-linejoin="round"/>
+</svg>
--- a/assets/icons/pencil_unavailable.svg
+++ b/assets/icons/pencil_unavailable.svg
@@ -0,0 +1,6 @@
+<svg width="16" height="16" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg">
+<path d="M8.5 5.50621L10.5941 3.41227C10.8585 3.14798 11.217 2.99953 11.5908 2.99957C11.9646 2.99962 12.3231 3.14816 12.5874 3.41252C12.8517 3.67688 13.0001 4.03541 13.0001 4.40922C13.0001 4.78304 12.8515 5.14152 12.5872 5.40582L10.493 7.5" stroke="black" stroke-width="1.2" stroke-linecap="round" stroke-linejoin="round"/>
+<path d="M5.50789 8.5L3.92098 10.0869C3.80488 10.2027 3.71903 10.3452 3.67097 10.5019L3.01047 12.678C2.99754 12.7212 2.99657 12.7672 3.00764 12.8109C3.01872 12.8547 3.04143 12.8946 3.07337 12.9265C3.1053 12.9584 3.14528 12.981 3.18905 12.992C3.23282 13.003 3.27875 13.002 3.32197 12.989L5.49849 12.329C5.65508 12.2813 5.79758 12.196 5.91349 12.0805L7.49184 10.5019" stroke="black" stroke-width="1.2" stroke-linecap="round" stroke-linejoin="round"/>
+<path d="M9 5L11 7" stroke="black" stroke-width="1.2" stroke-linecap="round" stroke-linejoin="round"/>
+<path d="M3 3L13 13" stroke="black" stroke-width="1.2" stroke-linecap="round" stroke-linejoin="round"/>
+</svg>
--- a/assets/icons/tool_think.svg
+++ b/assets/icons/tool_think.svg
@@ -1,3 +1,3 @@
 <svg width="16" height="16" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg">
-<path d="M9.95231 10.2159C10.0803 9.58974 9.95231 9.57261 10.9111 8.46959C11.4686 7.82822 11.8699 7.09214 11.8699 6.27818C11.8699 5.28184 11.4658 4.32631 10.7467 3.62179C10.0275 2.91728 9.05201 2.52148 8.03492 2.52148C7.01782 2.52148 6.04239 2.91728 5.32319 3.62179C4.604 4.32631 4.19995 5.28184 4.19995 6.27818C4.19995 6.9043 4.32779 7.65565 5.1587 8.46959C6.11744 9.59098 5.98965 9.58974 6.11748 10.2159M9.95231 10.2159V12.2989C9.95231 12.9504 9.41327 13.4786 8.7482 13.4786H7.32165C6.65658 13.4786 6.11744 12.9504 6.11744 12.2989L6.11748 10.2159M9.95231 10.2159H8.03492H6.11748" stroke="black" stroke-width="1.2" stroke-linecap="round" stroke-linejoin="round"/>
+<path d="M9.9526 10.2625C10.0833 9.62316 9.9526 9.60566 10.9315 8.47946C11.5008 7.82461 11.9105 7.07306 11.9105 6.242C11.9105 5.22472 11.4979 4.2491 10.7637 3.52978C10.0294 2.81046 9.03338 2.40634 7.99491 2.40634C6.95644 2.40634 5.96051 2.81046 5.22619 3.52978C4.49189 4.2491 4.07935 5.22472 4.07935 6.242C4.07935 6.88128 4.20987 7.64842 5.05825 8.47946C6.03714 9.62442 5.90666 9.62316 6.03718 10.2625M9.9526 10.2625V12.3893C9.9526 13.0544 9.40223 13.5937 8.72319 13.5937H7.26665C6.58761 13.5937 6.03714 13.0544 6.03714 12.3893L6.03718 10.2625M9.9526 10.2625H7.99491H6.03718" stroke="black" stroke-width="1.2" stroke-linecap="round" stroke-linejoin="round"/>
 </svg>
--- a/assets/icons/x_circle_filled.svg
+++ b/assets/icons/x_circle_filled.svg
@@ -0,0 +1,3 @@
+<svg width="16" height="16" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg">
+<path d="M8 2C11.3137 2 14 4.68629 14 8C14 11.3137 11.3137 14 8 14C4.68629 14 2 11.3137 2 8C2 4.68629 4.68629 2 8 2ZM10.4238 5.57617C10.1895 5.34187 9.81049 5.3419 9.57617 5.57617L8 7.15234L6.42383 5.57617C6.18953 5.34187 5.81049 5.3419 5.57617 5.57617C5.34186 5.81049 5.34186 6.18951 5.57617 6.42383L7.15234 8L5.57617 9.57617C5.34186 9.81049 5.34186 10.1895 5.57617 10.4238C5.81049 10.6581 6.18954 10.6581 6.42383 10.4238L8 8.84766L9.57617 10.4238C9.81049 10.6581 10.1895 10.6581 10.4238 10.4238C10.6581 10.1895 10.658 9.81048 10.4238 9.57617L8.84766 8L10.4238 6.42383C10.6581 6.18954 10.658 5.81048 10.4238 5.57617Z" fill="black"/>
+</svg>
--- a/assets/icons/zed_agent.svg
+++ b/assets/icons/zed_agent.svg
@@ -0,0 +1,27 @@
+<svg width="16" height="16" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg">
+<path d="M11 8.75V10.5C8.93097 10.5 8.06903 10.5 6 10.5V10L11 6V5.5H6V7.25" stroke="black" stroke-width="1.5"/>
+<path d="M2 8.5C2.27614 8.5 2.5 8.27614 2.5 8C2.5 7.72386 2.27614 7.5 2 7.5C1.72386 7.5 1.5 7.72386 1.5 8C1.5 8.27614 1.72386 8.5 2 8.5Z" fill="black"/>
+<path opacity="0.6" d="M2.99976 6.33002C3.2759 6.33002 3.49976 6.10616 3.49976 5.83002C3.49976 5.55387 3.2759 5.33002 2.99976 5.33002C2.72361 5.33002 2.49976 5.55387 2.49976 5.83002C2.49976 6.10616 2.72361 6.33002 2.99976 6.33002Z" fill="black"/>
+<path opacity="0.6" d="M2.99976 10.66C3.2759 10.66 3.49976 10.4361 3.49976 10.16C3.49976 9.88383 3.2759 9.65997 2.99976 9.65997C2.72361 9.65997 2.49976 9.88383 2.49976 10.16C2.49976 10.4361 2.72361 10.66 2.99976 10.66Z" fill="black"/>
+<path d="M15 8.5C15.2761 8.5 15.5 8.27614 15.5 8C15.5 7.72386 15.2761 7.5 15 7.5C14.7239 7.5 14.5 7.72386 14.5 8C14.5 8.27614 14.7239 8.5 15 8.5Z" fill="black"/>
+<path opacity="0.6" d="M14 6.33002C14.2761 6.33002 14.5 6.10616 14.5 5.83002C14.5 5.55387 14.2761 5.33002 14 5.33002C13.7239 5.33002 13.5 5.55387 13.5 5.83002C13.5 6.10616 13.7239 6.33002 14 6.33002Z" fill="black"/>
+<path opacity="0.6" d="M14 10.66C14.2761 10.66 14.5 10.4361 14.5 10.16C14.5 9.88383 14.2761 9.65997 14 9.65997C13.7239 9.65997 13.5 9.88383 13.5 10.16C13.5 10.4361 13.7239 10.66 14 10.66Z" fill="black"/>
+<path d="M8.49219 2C8.76833 2 8.99219 1.77614 8.99219 1.5C8.99219 1.22386 8.76833 1 8.49219 1C8.21605 1 7.99219 1.22386 7.99219 1.5C7.99219 1.77614 8.21605 2 8.49219 2Z" fill="black"/>
+<path opacity="0.6" d="M6 3C6.27614 3 6.5 2.77614 6.5 2.5C6.5 2.22386 6.27614 2 6 2C5.72386 2 5.5 2.22386 5.5 2.5C5.5 2.77614 5.72386 3 6 3Z" fill="black"/>
+<path d="M4 4C4.27614 4 4.5 3.77614 4.5 3.5C4.5 3.22386 4.27614 3 4 3C3.72386 3 3.5 3.22386 3.5 3.5C3.5 3.77614 3.72386 4 4 4Z" fill="black"/>
+<path d="M3.99976 13C4.2759 13 4.49976 12.7761 4.49976 12.5C4.49976 12.2239 4.2759 12 3.99976 12C3.72361 12 3.49976 12.2239 3.49976 12.5C3.49976 12.7761 3.72361 13 3.99976 13Z" fill="black"/>
+<path opacity="0.2" d="M2 12.5C2.27614 12.5 2.5 12.2761 2.5 12C2.5 11.7239 2.27614 11.5 2 11.5C1.72386 11.5 1.5 11.7239 1.5 12C1.5 12.2761 1.72386 12.5 2 12.5Z" fill="black"/>
+<path opacity="0.2" d="M2 4.5C2.27614 4.5 2.5 4.27614 2.5 4C2.5 3.72386 2.27614 3.5 2 3.5C1.72386 3.5 1.5 3.72386 1.5 4C1.5 4.27614 1.72386 4.5 2 4.5Z" fill="black"/>
+<path opacity="0.2" d="M15 12.5C15.2761 12.5 15.5 12.2761 15.5 12C15.5 11.7239 15.2761 11.5 15 11.5C14.7239 11.5 14.5 11.7239 14.5 12C14.5 12.2761 14.7239 12.5 15 12.5Z" fill="black"/>
+<path opacity="0.2" d="M15 4.5C15.2761 4.5 15.5 4.27614 15.5 4C15.5 3.72386 15.2761 3.5 15 3.5C14.7239 3.5 14.5 3.72386 14.5 4C14.5 4.27614 14.7239 4.5 15 4.5Z" fill="black"/>
+<path opacity="0.5" d="M3.99976 15C4.2759 15 4.49976 14.7761 4.49976 14.5C4.49976 14.2239 4.2759 14 3.99976 14C3.72361 14 3.49976 14.2239 3.49976 14.5C3.49976 14.7761 3.72361 15 3.99976 15Z" fill="black"/>
+<path opacity="0.5" d="M4 2C4.27614 2 4.5 1.77614 4.5 1.5C4.5 1.22386 4.27614 1 4 1C3.72386 1 3.5 1.22386 3.5 1.5C3.5 1.77614 3.72386 2 4 2Z" fill="black"/>
+<path opacity="0.5" d="M13 15C13.2761 15 13.5 14.7761 13.5 14.5C13.5 14.2239 13.2761 14 13 14C12.7239 14 12.5 14.2239 12.5 14.5C12.5 14.7761 12.7239 15 13 15Z" fill="black"/>
+<path opacity="0.5" d="M13 2C13.2761 2 13.5 1.77614 13.5 1.5C13.5 1.22386 13.2761 1 13 1C12.7239 1 12.5 1.22386 12.5 1.5C12.5 1.77614 12.7239 2 13 2Z" fill="black"/>
+<path d="M13 4C13.2761 4 13.5 3.77614 13.5 3.5C13.5 3.22386 13.2761 3 13 3C12.7239 3 12.5 3.22386 12.5 3.5C12.5 3.77614 12.7239 4 13 4Z" fill="black"/>
+<path d="M13 13C13.2761 13 13.5 12.7761 13.5 12.5C13.5 12.2239 13.2761 12 13 12C12.7239 12 12.5 12.2239 12.5 12.5C12.5 12.7761 12.7239 13 13 13Z" fill="black"/>
+<path opacity="0.6" d="M11 3C11.2761 3 11.5 2.77614 11.5 2.5C11.5 2.22386 11.2761 2 11 2C10.7239 2 10.5 2.22386 10.5 2.5C10.5 2.77614 10.7239 3 11 3Z" fill="black"/>
+<path d="M8.5 15C8.77614 15 9 14.7761 9 14.5C9 14.2239 8.77614 14 8.5 14C8.22386 14 8 14.2239 8 14.5C8 14.7761 8.22386 15 8.5 15Z" fill="black"/>
+<path opacity="0.6" d="M6 14C6.27614 14 6.5 13.7761 6.5 13.5C6.5 13.2239 6.27614 13 6 13C5.72386 13 5.5 13.2239 5.5 13.5C5.5 13.7761 5.72386 14 6 14Z" fill="black"/>
+<path opacity="0.6" d="M11 14C11.2761 14 11.5 13.7761 11.5 13.5C11.5 13.2239 11.2761 13 11 13C10.7239 13 10.5 13.2239 10.5 13.5C10.5 13.7761 10.7239 14 11 14Z" fill="black"/>
+</svg>
--- a/assets/icons/zed_assistant.svg
+++ b/assets/icons/zed_assistant.svg
@@ -1,5 +1,5 @@
 <svg width="16" height="16" viewBox="0 0 16 16" fill="none" xmlns="http://www.w3.org/2000/svg">
 <path d="M8 2.93652L6.9243 6.20697C6.86924 6.37435 6.77565 6.52646 6.65105 6.65105C6.52646 6.77565 6.37435 6.86924 6.20697 6.9243L2.93652 8L6.20697 9.0757C6.37435 9.13076 6.52646 9.22435 6.65105 9.34895C6.77565 9.47354 6.86924 9.62565 6.9243 9.79306L8 13.0635L9.0757 9.79306C9.13076 9.62565 9.22435 9.47354 9.34895 9.34895C9.47354 9.22435 9.62565 9.13076 9.79306 9.0757L13.0635 8L9.79306 6.9243C9.62565 6.86924 9.47354 6.77565 9.34895 6.65105C9.22435 6.52646 9.13076 6.37435 9.0757 6.20697L8 2.93652Z" fill="black" fill-opacity="0.15" stroke="black" stroke-width="1.2" stroke-linecap="round" stroke-linejoin="round"/>
-<path d="M3.33334 2V4.66666M2 3.33334H4.66666" stroke="black" stroke-opacity="0.75" stroke-width="1.25" stroke-linecap="round" stroke-linejoin="round"/>
-<path d="M12.6665 11.3333V14M11.3333 12.6666H13.9999" stroke="black" stroke-opacity="0.75" stroke-width="1.25" stroke-linecap="round" stroke-linejoin="round"/>
+<path d="M3.33334 2V4.66666M2 3.33334H4.66666" stroke="black" stroke-opacity="0.75" stroke-width="1.2" stroke-linecap="round" stroke-linejoin="round"/>
+<path d="M12.6665 11.3333V14M11.3333 12.6666H13.9999" stroke="black" stroke-opacity="0.75" stroke-width="1.2" stroke-linecap="round" stroke-linejoin="round"/>
 </svg>
--- a/assets/keymaps/default-linux.json
+++ b/assets/keymaps/default-linux.json
@@ -16,7 +16,6 @@
      "up": "menu::SelectPrevious",
      "enter": "menu::Confirm",
      "ctrl-enter": "menu::SecondaryConfirm",
-      "ctrl-escape": "menu::Cancel",
      "ctrl-c": "menu::Cancel",
      "escape": "menu::Cancel",
      "alt-shift-enter": "menu::Restart",
@@ -138,7 +137,7 @@
      "find": "buffer_search::Deploy",
      "ctrl-f": "buffer_search::Deploy",
      "ctrl-h": "buffer_search::DeployReplace",
-      "ctrl->": "assistant::QuoteSelection",
+      "ctrl->": "agent::QuoteSelection",
      "ctrl-<": "assistant::InsertIntoEditor",
      "ctrl-alt-e": "editor::SelectEnclosingSymbol",
      "ctrl-shift-backspace": "editor::GoToPreviousChange",
@@ -241,7 +240,7 @@
      "ctrl-shift-i": "agent::ToggleOptionsMenu",
      "ctrl-alt-shift-n": "agent::ToggleNewThreadMenu",
      "shift-alt-escape": "agent::ExpandMessageEditor",
-      "ctrl->": "assistant::QuoteSelection",
+      "ctrl->": "agent::QuoteSelection",
      "ctrl-alt-e": "agent::RemoveAllContext",
      "ctrl-shift-e": "project_panel::ToggleFocus",
      "ctrl-shift-enter": "agent::ContinueThread",
@@ -327,7 +326,7 @@
    }
  },
  {
-    "context": "AcpThread > Editor",
+    "context": "AcpThread > Editor && !use_modifier_to_send",
    "use_key_equivalents": true,
    "bindings": {
      "enter": "agent::Chat",
@@ -336,6 +335,16 @@
      "ctrl-shift-n": "agent::RejectAll"
    }
  },
+  {
+    "context": "AcpThread > Editor && use_modifier_to_send",
+    "use_key_equivalents": true,
+    "bindings": {
+      "ctrl-enter": "agent::Chat",
+      "shift-ctrl-r": "agent::OpenAgentDiff",
+      "ctrl-shift-y": "agent::KeepAll",
+      "ctrl-shift-n": "agent::RejectAll"
+    }
+  },
  {
    "context": "ThreadHistory",
    "bindings": {
@@ -846,7 +855,7 @@
      "ctrl-backspace": ["project_panel::Delete", { "skip_prompt": false }],
      "ctrl-delete": ["project_panel::Delete", { "skip_prompt": false }],
      "alt-ctrl-r": "project_panel::RevealInFileManager",
-      "ctrl-shift-enter": "project_panel::OpenWithSystem",
+      "ctrl-shift-enter": "workspace::OpenWithSystem",
      "alt-d": "project_panel::CompareMarkedFiles",
      "shift-find": "project_panel::NewSearchInDirectory",
      "ctrl-alt-shift-f": "project_panel::NewSearchInDirectory",
@@ -1185,9 +1194,16 @@
      "ctrl-1": "onboarding::ActivateBasicsPage",
      "ctrl-2": "onboarding::ActivateEditingPage",
      "ctrl-3": "onboarding::ActivateAISetupPage",
-      "ctrl-escape": "onboarding::Finish",
-      "alt-tab": "onboarding::SignIn",
+      "ctrl-enter": "onboarding::Finish",
+      "alt-shift-l": "onboarding::SignIn",
      "alt-shift-a": "onboarding::OpenAccount"
    }
+  },
+  {
+    "context": "InvalidBuffer",
+    "use_key_equivalents": true,
+    "bindings": {
+      "ctrl-shift-enter": "workspace::OpenWithSystem"
+    }
  }
 ]
--- a/assets/keymaps/default-macos.json
+++ b/assets/keymaps/default-macos.json
@@ -162,7 +162,7 @@
      "cmd-alt-f": "buffer_search::DeployReplace",
      "cmd-alt-l": ["buffer_search::Deploy", { "selection_search_enabled": true }],
      "cmd-e": ["buffer_search::Deploy", { "focus": false }],
-      "cmd->": "assistant::QuoteSelection",
+      "cmd->": "agent::QuoteSelection",
      "cmd-<": "assistant::InsertIntoEditor",
      "cmd-alt-e": "editor::SelectEnclosingSymbol",
      "alt-enter": "editor::OpenSelectionsInMultibuffer"
@@ -281,7 +281,7 @@
      "cmd-shift-i": "agent::ToggleOptionsMenu",
      "cmd-alt-shift-n": "agent::ToggleNewThreadMenu",
      "shift-alt-escape": "agent::ExpandMessageEditor",
-      "cmd->": "assistant::QuoteSelection",
+      "cmd->": "agent::QuoteSelection",
      "cmd-alt-e": "agent::RemoveAllContext",
      "cmd-shift-e": "project_panel::ToggleFocus",
      "cmd-ctrl-b": "agent::ToggleBurnMode",
@@ -379,7 +379,7 @@
    }
  },
  {
-    "context": "AcpThread > Editor",
+    "context": "AcpThread > Editor && !use_modifier_to_send",
    "use_key_equivalents": true,
    "bindings": {
      "enter": "agent::Chat",
@@ -388,6 +388,16 @@
      "cmd-shift-n": "agent::RejectAll"
    }
  },
+  {
+    "context": "AcpThread > Editor && use_modifier_to_send",
+    "use_key_equivalents": true,
+    "bindings": {
+      "cmd-enter": "agent::Chat",
+      "shift-ctrl-r": "agent::OpenAgentDiff",
+      "cmd-shift-y": "agent::KeepAll",
+      "cmd-shift-n": "agent::RejectAll"
+    }
+  },
  {
    "context": "ThreadHistory",
    "bindings": {
@@ -905,7 +915,7 @@
      "cmd-backspace": ["project_panel::Trash", { "skip_prompt": true }],
      "cmd-delete": ["project_panel::Delete", { "skip_prompt": false }],
      "alt-cmd-r": "project_panel::RevealInFileManager",
-      "ctrl-shift-enter": "project_panel::OpenWithSystem",
+      "ctrl-shift-enter": "workspace::OpenWithSystem",
      "alt-d": "project_panel::CompareMarkedFiles",
      "cmd-alt-backspace": ["project_panel::Delete", { "skip_prompt": false }],
      "cmd-alt-shift-f": "project_panel::NewSearchInDirectory",
@@ -1291,5 +1301,12 @@
      "alt-tab": "onboarding::SignIn",
      "alt-shift-a": "onboarding::OpenAccount"
    }
+  },
+  {
+    "context": "InvalidBuffer",
+    "use_key_equivalents": true,
+    "bindings": {
+      "ctrl-shift-enter": "workspace::OpenWithSystem"
+    }
  }
 ]
--- a/assets/keymaps/linux/cursor.json
+++ b/assets/keymaps/linux/cursor.json
@@ -17,8 +17,8 @@
    "bindings": {
      "ctrl-i": "agent::ToggleFocus",
      "ctrl-shift-i": "agent::ToggleFocus",
-      "ctrl-shift-l": "assistant::QuoteSelection", // In cursor uses "Ask" mode
-      "ctrl-l": "assistant::QuoteSelection", // In cursor uses "Agent" mode
+      "ctrl-shift-l": "agent::QuoteSelection", // In cursor uses "Ask" mode
+      "ctrl-l": "agent::QuoteSelection", // In cursor uses "Agent" mode
      "ctrl-k": "assistant::InlineAssist",
      "ctrl-shift-k": "assistant::InsertIntoEditor"
    }
--- a/assets/keymaps/macos/cursor.json
+++ b/assets/keymaps/macos/cursor.json
@@ -17,8 +17,8 @@
    "bindings": {
      "cmd-i": "agent::ToggleFocus",
      "cmd-shift-i": "agent::ToggleFocus",
-      "cmd-shift-l": "assistant::QuoteSelection", // In cursor uses "Ask" mode
-      "cmd-l": "assistant::QuoteSelection", // In cursor uses "Agent" mode
+      "cmd-shift-l": "agent::QuoteSelection", // In cursor uses "Ask" mode
+      "cmd-l": "agent::QuoteSelection", // In cursor uses "Agent" mode
      "cmd-k": "assistant::InlineAssist",
      "cmd-shift-k": "assistant::InsertIntoEditor"
    }
--- a/assets/keymaps/vim.json
+++ b/assets/keymaps/vim.json
@@ -819,7 +819,7 @@
      "v": "project_panel::OpenPermanent",
      "p": "project_panel::Open",
      "x": "project_panel::RevealInFileManager",
-      "s": "project_panel::OpenWithSystem",
+      "s": "workspace::OpenWithSystem",
      "z d": "project_panel::CompareMarkedFiles",
      "] c": "project_panel::SelectNextGitEntry",
      "[ c": "project_panel::SelectPrevGitEntry",
--- a/assets/settings/default.json
+++ b/assets/settings/default.json
@@ -717,7 +717,7 @@
    // Can be 'never', 'always', or 'when_in_call',
    // or a boolean (interpreted as 'never'/'always').
    "button": "when_in_call",
-    // Where to the chat panel. Can be 'left' or 'right'.
+    // Where to dock the chat panel. Can be 'left' or 'right'.
    "dock": "right",
    // Default width of the chat panel.
    "default_width": 240
@@ -725,7 +725,7 @@
  "git_panel": {
    // Whether to show the git panel button in the status bar.
    "button": true,
-    // Where to show the git panel. Can be 'left' or 'right'.
+    // Where to dock the git panel. Can be 'left' or 'right'.
    "dock": "left",
    // Default width of the git panel.
    "default_width": 360,
@@ -1133,11 +1133,6 @@
      // The minimum severity of the diagnostics to show inline.
      // Inherits editor's diagnostics' max severity settings when `null`.
      "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
@@ -1503,6 +1498,11 @@
    //
    // Default: fallback
    "words": "fallback",
+    // Minimum number of characters required to automatically trigger word-based completions.
+    // Before that value, it's still possible to trigger the words-based completion manually with the corresponding editor command.
+    //
+    // Default: 3
+    "words_min_length": 3,
    // Whether to fetch LSP completions or not.
    //
    // Default: true
@@ -1642,9 +1642,6 @@
      "use_on_type_format": false,
      "allow_rewrap": "anywhere",
      "soft_wrap": "editor_width",
-      "completions": {
-        "words": "disabled"
-      },
      "prettier": {
        "allowed": true
      }
@@ -1658,9 +1655,6 @@
      }
    },
    "Plain Text": {
-      "completions": {
-        "words": "disabled"
-      },
      "allow_rewrap": "anywhere"
    },
    "Python": {
--- a/assets/themes/ayu/ayu.json
+++ b/assets/themes/ayu/ayu.json
@@ -93,7 +93,7 @@
        "terminal.ansi.bright_cyan": "#4c806fff",
        "terminal.ansi.dim_cyan": "#cbf2e4ff",
        "terminal.ansi.white": "#bfbdb6ff",
-        "terminal.ansi.bright_white": "#bfbdb6ff",
+        "terminal.ansi.bright_white": "#fafafaff",
        "terminal.ansi.dim_white": "#787876ff",
        "link_text.hover": "#5ac1feff",
        "conflict": "#feb454ff",
@@ -479,7 +479,7 @@
        "terminal.ansi.bright_cyan": "#ace0cbff",
        "terminal.ansi.dim_cyan": "#2a5f4aff",
        "terminal.ansi.white": "#fcfcfcff",
-        "terminal.ansi.bright_white": "#fcfcfcff",
+        "terminal.ansi.bright_white": "#ffffffff",
        "terminal.ansi.dim_white": "#bcbec0ff",
        "link_text.hover": "#3b9ee5ff",
        "conflict": "#f1ad49ff",
@@ -865,7 +865,7 @@
        "terminal.ansi.bright_cyan": "#4c806fff",
        "terminal.ansi.dim_cyan": "#cbf2e4ff",
        "terminal.ansi.white": "#cccac2ff",
-        "terminal.ansi.bright_white": "#cccac2ff",
+        "terminal.ansi.bright_white": "#fafafaff",
        "terminal.ansi.dim_white": "#898a8aff",
        "link_text.hover": "#72cffeff",
        "conflict": "#fecf72ff",
--- a/assets/themes/gruvbox/gruvbox.json
+++ b/assets/themes/gruvbox/gruvbox.json
@@ -94,7 +94,7 @@
        "terminal.ansi.bright_cyan": "#45603eff",
        "terminal.ansi.dim_cyan": "#c7dfbdff",
        "terminal.ansi.white": "#fbf1c7ff",
-        "terminal.ansi.bright_white": "#fbf1c7ff",
+        "terminal.ansi.bright_white": "#ffffffff",
        "terminal.ansi.dim_white": "#b0a189ff",
        "link_text.hover": "#83a598ff",
        "version_control.added": "#b7bb26ff",
@@ -494,7 +494,7 @@
        "terminal.ansi.bright_cyan": "#45603eff",
        "terminal.ansi.dim_cyan": "#c7dfbdff",
        "terminal.ansi.white": "#fbf1c7ff",
-        "terminal.ansi.bright_white": "#fbf1c7ff",
+        "terminal.ansi.bright_white": "#ffffffff",
        "terminal.ansi.dim_white": "#b0a189ff",
        "link_text.hover": "#83a598ff",
        "version_control.added": "#b7bb26ff",
@@ -894,7 +894,7 @@
        "terminal.ansi.bright_cyan": "#45603eff",
        "terminal.ansi.dim_cyan": "#c7dfbdff",
        "terminal.ansi.white": "#fbf1c7ff",
-        "terminal.ansi.bright_white": "#fbf1c7ff",
+        "terminal.ansi.bright_white": "#ffffffff",
        "terminal.ansi.dim_white": "#b0a189ff",
        "link_text.hover": "#83a598ff",
        "version_control.added": "#b7bb26ff",
@@ -1294,7 +1294,7 @@
        "terminal.ansi.bright_cyan": "#9fbca8ff",
        "terminal.ansi.dim_cyan": "#253e2eff",
        "terminal.ansi.white": "#fbf1c7ff",
-        "terminal.ansi.bright_white": "#fbf1c7ff",
+        "terminal.ansi.bright_white": "#ffffffff",
        "terminal.ansi.dim_white": "#b0a189ff",
        "link_text.hover": "#0b6678ff",
        "version_control.added": "#797410ff",
@@ -1694,7 +1694,7 @@
        "terminal.ansi.bright_cyan": "#9fbca8ff",
        "terminal.ansi.dim_cyan": "#253e2eff",
        "terminal.ansi.white": "#f9f5d7ff",
-        "terminal.ansi.bright_white": "#f9f5d7ff",
+        "terminal.ansi.bright_white": "#ffffffff",
        "terminal.ansi.dim_white": "#b0a189ff",
        "link_text.hover": "#0b6678ff",
        "version_control.added": "#797410ff",
@@ -2094,7 +2094,7 @@
        "terminal.ansi.bright_cyan": "#9fbca8ff",
        "terminal.ansi.dim_cyan": "#253e2eff",
        "terminal.ansi.white": "#f2e5bcff",
-        "terminal.ansi.bright_white": "#f2e5bcff",
+        "terminal.ansi.bright_white": "#ffffffff",
        "terminal.ansi.dim_white": "#b0a189ff",
        "link_text.hover": "#0b6678ff",
        "version_control.added": "#797410ff",
--- a/assets/themes/one/one.json
+++ b/assets/themes/one/one.json
@@ -93,7 +93,7 @@
        "terminal.ansi.bright_cyan": "#3a565bff",
        "terminal.ansi.dim_cyan": "#b9d9dfff",
        "terminal.ansi.white": "#dce0e5ff",
-        "terminal.ansi.bright_white": "#dce0e5ff",
+        "terminal.ansi.bright_white": "#fafafaff",
        "terminal.ansi.dim_white": "#575d65ff",
        "link_text.hover": "#74ade8ff",
        "version_control.added": "#27a657ff",
@@ -468,7 +468,7 @@
        "terminal.bright_foreground": "#242529ff",
        "terminal.dim_foreground": "#fafafaff",
        "terminal.ansi.black": "#242529ff",
-        "terminal.ansi.bright_black": "#242529ff",
+        "terminal.ansi.bright_black": "#747579ff",
        "terminal.ansi.dim_black": "#97979aff",
        "terminal.ansi.red": "#d36151ff",
        "terminal.ansi.bright_red": "#f0b0a4ff",
@@ -489,7 +489,7 @@
        "terminal.ansi.bright_cyan": "#a3bedaff",
        "terminal.ansi.dim_cyan": "#254058ff",
        "terminal.ansi.white": "#fafafaff",
-        "terminal.ansi.bright_white": "#fafafaff",
+        "terminal.ansi.bright_white": "#ffffffff",
        "terminal.ansi.dim_white": "#aaaaaaff",
        "link_text.hover": "#5c78e2ff",
        "version_control.added": "#27a657ff",
--- a/crates/acp_thread/Cargo.toml
+++ b/crates/acp_thread/Cargo.toml
@@ -18,7 +18,6 @@ test-support = ["gpui/test-support", "project/test-support", "dep:parking_lot"]
 [dependencies]
 action_log.workspace = true
 agent-client-protocol.workspace = true
-agent.workspace = true
 anyhow.workspace = true
 buffer_diff.workspace = true
 collections.workspace = true
--- a/crates/acp_thread/src/acp_thread.rs
+++ b/crates/acp_thread/src/acp_thread.rs
@@ -3,9 +3,13 @@ mod diff;
 mod mention;
 mod terminal;

+use collections::HashSet;
 pub use connection::*;
 pub use diff::*;
+use language::language_settings::FormatOnSave;
 pub use mention::*;
+use project::lsp_store::{FormatTrigger, LspFormatTarget};
+use serde::{Deserialize, Serialize};
 pub use terminal::*;

 use action_log::ActionLog;
@@ -24,6 +28,7 @@ use std::fmt::{Formatter, Write};
 use std::ops::Range;
 use std::process::ExitStatus;
 use std::rc::Rc;
+use std::time::{Duration, Instant};
 use std::{fmt::Display, mem, path::PathBuf, sync::Arc};
 use ui::App;
 use util::ResultExt;
@@ -48,7 +53,7 @@ impl UserMessage {
        if self
            .checkpoint
            .as_ref()
-            .map_or(false, |checkpoint| checkpoint.show)
+            .is_some_and(|checkpoint| checkpoint.show)
        {
            writeln!(markdown, "## User (checkpoint)").unwrap();
        } else {
@@ -233,10 +238,21 @@ impl ToolCall {
        }

        if let Some(content) = content {
-            self.content = content
-                .into_iter()
-                .map(|chunk| ToolCallContent::from_acp(chunk, language_registry.clone(), cx))
-                .collect();
+            let new_content_len = content.len();
+            let mut content = content.into_iter();
+
+            // Reuse existing content if we can
+            for (old, new) in self.content.iter_mut().zip(content.by_ref()) {
+                old.update_from_acp(new, language_registry.clone(), cx);
+            }
+            for new in content {
+                self.content.push(ToolCallContent::from_acp(
+                    new,
+                    language_registry.clone(),
+                    cx,
+                ))
+            }
+            self.content.truncate(new_content_len);
        }

        if let Some(locations) = locations {
@@ -248,14 +264,13 @@ impl ToolCall {
        }

        if let Some(raw_output) = raw_output {
-            if self.content.is_empty() {
-                if let Some(markdown) = markdown_for_raw_output(&raw_output, &language_registry, cx)
-                {
-                    self.content
-                        .push(ToolCallContent::ContentBlock(ContentBlock::Markdown {
-                            markdown,
-                        }));
-                }
+            if self.content.is_empty()
+                && let Some(markdown) = markdown_for_raw_output(&raw_output, &language_registry, cx)
+            {
+                self.content
+                    .push(ToolCallContent::ContentBlock(ContentBlock::Markdown {
+                        markdown,
+                    }));
            }
            self.raw_output = Some(raw_output);
        }
@@ -297,11 +312,9 @@ impl ToolCall {
    ) -> Option<AgentLocation> {
        let buffer = project
            .update(cx, |project, cx| {
-                if let Some(path) = project.project_path_for_absolute_path(&location.path, cx) {
-                    Some(project.open_buffer(path, cx))
-                } else {
-                    None
-                }
+                project
+                    .project_path_for_absolute_path(&location.path, cx)
+                    .map(|path| project.open_buffer(path, cx))
            })
            .ok()??;
        let buffer = buffer.await.log_err()?;
@@ -429,11 +442,11 @@ impl ContentBlock {
        language_registry: &Arc<LanguageRegistry>,
        cx: &mut App,
    ) {
-        if matches!(self, ContentBlock::Empty) {
-            if let acp::ContentBlock::ResourceLink(resource_link) = block {
-                *self = ContentBlock::ResourceLink { resource_link };
-                return;
-            }
+        if matches!(self, ContentBlock::Empty)
+            && let acp::ContentBlock::ResourceLink(resource_link) = block
+        {
+            *self = ContentBlock::ResourceLink { resource_link };
+            return;
        }

        let new_content = self.block_string_contents(block);
@@ -467,7 +480,7 @@ impl ContentBlock {

    fn block_string_contents(&self, block: acp::ContentBlock) -> String {
        match block {
-            acp::ContentBlock::Text(text_content) => text_content.text.clone(),
+            acp::ContentBlock::Text(text_content) => text_content.text,
            acp::ContentBlock::ResourceLink(resource_link) => {
                Self::resource_link_md(&resource_link.uri)
            }
@@ -537,9 +550,37 @@ impl ToolCallContent {
            acp::ToolCallContent::Content { content } => {
                Self::ContentBlock(ContentBlock::new(content, &language_registry, cx))
            }
-            acp::ToolCallContent::Diff { diff } => {
-                Self::Diff(cx.new(|cx| Diff::from_acp(diff, language_registry, cx)))
+            acp::ToolCallContent::Diff { diff } => Self::Diff(cx.new(|cx| {
+                Diff::finalized(
+                    diff.path,
+                    diff.old_text,
+                    diff.new_text,
+                    language_registry,
+                    cx,
+                )
+            })),
+        }
+    }
+
+    pub fn update_from_acp(
+        &mut self,
+        new: acp::ToolCallContent,
+        language_registry: Arc<LanguageRegistry>,
+        cx: &mut App,
+    ) {
+        let needs_update = match (&self, &new) {
+            (Self::Diff(old_diff), acp::ToolCallContent::Diff { diff: new_diff }) => {
+                old_diff.read(cx).needs_update(
+                    new_diff.old_text.as_deref().unwrap_or(""),
+                    &new_diff.new_text,
+                    cx,
+                )
            }
+            _ => true,
+        };
+
+        if needs_update {
+            *self = Self::from_acp(new, language_registry, cx);
        }
    }

@@ -658,6 +699,52 @@ impl PlanEntry {
    }
 }

+#[derive(Debug, Clone, PartialEq, Eq, Serialize, Deserialize)]
+pub struct TokenUsage {
+    pub max_tokens: u64,
+    pub used_tokens: u64,
+}
+
+impl TokenUsage {
+    pub fn ratio(&self) -> TokenUsageRatio {
+        #[cfg(debug_assertions)]
+        let warning_threshold: f32 = std::env::var("ZED_THREAD_WARNING_THRESHOLD")
+            .unwrap_or("0.8".to_string())
+            .parse()
+            .unwrap();
+        #[cfg(not(debug_assertions))]
+        let warning_threshold: f32 = 0.8;
+
+        // When the maximum is unknown because there is no selected model,
+        // avoid showing the token limit warning.
+        if self.max_tokens == 0 {
+            TokenUsageRatio::Normal
+        } else if self.used_tokens >= self.max_tokens {
+            TokenUsageRatio::Exceeded
+        } else if self.used_tokens as f32 / self.max_tokens as f32 >= warning_threshold {
+            TokenUsageRatio::Warning
+        } else {
+            TokenUsageRatio::Normal
+        }
+    }
+}
+
+#[derive(Debug, Clone, PartialEq, Eq)]
+pub enum TokenUsageRatio {
+    Normal,
+    Warning,
+    Exceeded,
+}
+
+#[derive(Debug, Clone)]
+pub struct RetryStatus {
+    pub last_error: SharedString,
+    pub attempt: usize,
+    pub max_attempts: usize,
+    pub started_at: Instant,
+    pub duration: Duration,
+}
+
 pub struct AcpThread {
    title: SharedString,
    entries: Vec<AgentThreadEntry>,
@@ -668,17 +755,21 @@ pub struct AcpThread {
    send_task: Option<Task<()>>,
    connection: Rc<dyn AgentConnection>,
    session_id: acp::SessionId,
+    token_usage: Option<TokenUsage>,
 }

 #[derive(Debug)]
 pub enum AcpThreadEvent {
    NewEntry,
+    TitleUpdated,
+    TokenUsageUpdated,
    EntryUpdated(usize),
    EntriesRemoved(Range<usize>),
    ToolAuthorizationRequired,
+    Retry(RetryStatus),
    Stopped,
    Error,
-    ServerExited(ExitStatus),
+    LoadError(LoadError),
 }

 impl EventEmitter<AcpThreadEvent> for AcpThread {}
@@ -692,20 +783,30 @@ pub enum ThreadStatus {

 #[derive(Debug, Clone)]
 pub enum LoadError {
+    NotInstalled {
+        error_message: SharedString,
+        install_message: SharedString,
+        install_command: String,
+    },
    Unsupported {
        error_message: SharedString,
        upgrade_message: SharedString,
        upgrade_command: String,
    },
-    Exited(i32),
+    Exited {
+        status: ExitStatus,
+    },
    Other(SharedString),
 }

 impl Display for LoadError {
    fn fmt(&self, f: &mut Formatter<'_>) -> std::fmt::Result {
        match self {
-            LoadError::Unsupported { error_message, .. } => write!(f, "{}", error_message),
-            LoadError::Exited(status) => write!(f, "Server exited with status {}", status),
+            LoadError::NotInstalled { error_message, .. }
+            | LoadError::Unsupported { error_message, .. } => {
+                write!(f, "{error_message}")
+            }
+            LoadError::Exited { status } => write!(f, "Server exited with status {status}"),
            LoadError::Other(msg) => write!(f, "{}", msg),
        }
    }
@@ -718,11 +819,9 @@ impl AcpThread {
        title: impl Into<SharedString>,
        connection: Rc<dyn AgentConnection>,
        project: Entity<Project>,
+        action_log: Entity<ActionLog>,
        session_id: acp::SessionId,
-        cx: &mut Context<Self>,
    ) -> Self {
-        let action_log = cx.new(|_| ActionLog::new(project.clone()));
-
        Self {
            action_log,
            shared_buffers: Default::default(),
@@ -733,6 +832,7 @@ impl AcpThread {
            send_task: None,
            connection,
            session_id,
+            token_usage: None,
        }
    }

@@ -772,6 +872,10 @@ impl AcpThread {
        }
    }

+    pub fn token_usage(&self) -> Option<&TokenUsage> {
+        self.token_usage.as_ref()
+    }
+
    pub fn has_pending_edit_tool_calls(&self) -> bool {
        for entry in self.entries.iter().rev() {
            match entry {
@@ -916,6 +1020,30 @@ impl AcpThread {
        cx.emit(AcpThreadEvent::NewEntry);
    }

+    pub fn can_set_title(&mut self, cx: &mut Context<Self>) -> bool {
+        self.connection.set_title(&self.session_id, cx).is_some()
+    }
+
+    pub fn set_title(&mut self, title: SharedString, cx: &mut Context<Self>) -> Task<Result<()>> {
+        if title != self.title {
+            self.title = title.clone();
+            cx.emit(AcpThreadEvent::TitleUpdated);
+            if let Some(set_title) = self.connection.set_title(&self.session_id, cx) {
+                return set_title.run(title, cx);
+            }
+        }
+        Task::ready(Ok(()))
+    }
+
+    pub fn update_token_usage(&mut self, usage: Option<TokenUsage>, cx: &mut Context<Self>) {
+        self.token_usage = usage;
+        cx.emit(AcpThreadEvent::TokenUsageUpdated);
+    }
+
+    pub fn update_retry_status(&mut self, status: RetryStatus, cx: &mut Context<Self>) {
+        cx.emit(AcpThreadEvent::Retry(status));
+    }
+
    pub fn update_tool_call(
        &mut self,
        update: impl Into<ToolCallUpdate>,
@@ -932,7 +1060,7 @@ impl AcpThread {
                let location_updated = update.fields.locations.is_some();
                current_call.update_fields(update.fields, languages, cx);
                if location_updated {
-                    self.resolve_locations(update.id.clone(), cx);
+                    self.resolve_locations(update.id, cx);
                }
            }
            ToolCallUpdate::UpdateDiff(update) => {
@@ -1007,6 +1135,22 @@ impl AcpThread {
            })
    }

+    pub fn tool_call(&mut self, id: &acp::ToolCallId) -> Option<(usize, &ToolCall)> {
+        self.entries
+            .iter()
+            .enumerate()
+            .rev()
+            .find_map(|(index, tool_call)| {
+                if let AgentThreadEntry::ToolCall(tool_call) = tool_call
+                    && &tool_call.id == id
+                {
+                    Some((index, tool_call))
+                } else {
+                    None
+                }
+            })
+    }
+
    pub fn resolve_locations(&mut self, id: acp::ToolCallId, cx: &mut Context<Self>) {
        let project = self.project.clone();
        let Some((_, tool_call)) = self.tool_call_mut(&id) else {
@@ -1191,11 +1335,7 @@ impl AcpThread {
        };
        let git_store = self.project.read(cx).git_store().clone();

-        let message_id = if self
-            .connection
-            .session_editor(&self.session_id, cx)
-            .is_some()
-        {
+        let message_id = if self.connection.truncate(&self.session_id, cx).is_some() {
            Some(UserMessageId::new())
        } else {
            None
@@ -1267,6 +1407,8 @@ impl AcpThread {
                .await?;

            this.update(cx, |this, cx| {
+                this.project
+                    .update(cx, |project, cx| project.set_agent_location(None, cx));
                match response {
                    Ok(Err(e)) => {
                        this.send_task.take();
@@ -1277,7 +1419,7 @@ impl AcpThread {
                        let canceled = matches!(
                            result,
                            Ok(Ok(acp::PromptResponse {
-                                stop_reason: acp::StopReason::Canceled
+                                stop_reason: acp::StopReason::Cancelled
                            }))
                        );

@@ -1290,6 +1432,17 @@ impl AcpThread {
                            this.send_task.take();
                        }

+                        // Truncate entries if the last prompt was refused.
+                        if let Ok(Ok(acp::PromptResponse {
+                            stop_reason: acp::StopReason::Refusal,
+                        })) = result
+                            && let Some((ix, _)) = this.last_user_message()
+                        {
+                            let range = ix..this.entries.len();
+                            this.entries.truncate(ix);
+                            cx.emit(AcpThreadEvent::EntriesRemoved(range));
+                        }
+
                        cx.emit(AcpThreadEvent::Stopped);
                        Ok(())
                    }
@@ -1328,7 +1481,7 @@ impl AcpThread {
    /// Rewinds this thread to before the entry at `index`, removing it and all
    /// subsequent entries while reverting any changes made from that point.
    pub fn rewind(&mut self, id: UserMessageId, cx: &mut Context<Self>) -> Task<Result<()>> {
-        let Some(session_editor) = self.connection.session_editor(&self.session_id, cx) else {
+        let Some(truncate) = self.connection.truncate(&self.session_id, cx) else {
            return Task::ready(Err(anyhow!("not supported")));
        };
        let Some(message) = self.user_message(&id) else {
@@ -1348,8 +1501,7 @@ impl AcpThread {
                    .await?;
            }

-            cx.update(|cx| session_editor.truncate(id.clone(), cx))?
-                .await?;
+            cx.update(|cx| truncate.run(id.clone(), cx))?.await?;
            this.update(cx, |this, cx| {
                if let Some((ix, _)) = this.user_message_mut(&id) {
                    let range = ix..this.entries.len();
@@ -1555,30 +1707,59 @@ impl AcpThread {
                        .collect::<Vec<_>>()
                })
                .await;
-            cx.update(|cx| {
-                project.update(cx, |project, cx| {
-                    project.set_agent_location(
-                        Some(AgentLocation {
-                            buffer: buffer.downgrade(),
-                            position: edits
-                                .last()
-                                .map(|(range, _)| range.end)
-                                .unwrap_or(Anchor::MIN),
-                        }),
-                        cx,
-                    );
-                });

+            project.update(cx, |project, cx| {
+                project.set_agent_location(
+                    Some(AgentLocation {
+                        buffer: buffer.downgrade(),
+                        position: edits
+                            .last()
+                            .map(|(range, _)| range.end)
+                            .unwrap_or(Anchor::MIN),
+                    }),
+                    cx,
+                );
+            })?;
+
+            let format_on_save = cx.update(|cx| {
                action_log.update(cx, |action_log, cx| {
                    action_log.buffer_read(buffer.clone(), cx);
                });
-                buffer.update(cx, |buffer, cx| {
+
+                let format_on_save = buffer.update(cx, |buffer, cx| {
                    buffer.edit(edits, None, cx);
+
+                    let settings = language::language_settings::language_settings(
+                        buffer.language().map(|l| l.name()),
+                        buffer.file(),
+                        cx,
+                    );
+
+                    settings.format_on_save != FormatOnSave::Off
                });
                action_log.update(cx, |action_log, cx| {
                    action_log.buffer_edited(buffer.clone(), cx);
                });
+                format_on_save
            })?;
+
+            if format_on_save {
+                let format_task = project.update(cx, |project, cx| {
+                    project.format(
+                        HashSet::from_iter([buffer.clone()]),
+                        LspFormatTarget::Buffers,
+                        false,
+                        FormatTrigger::Save,
+                        cx,
+                    )
+                })?;
+                format_task.await.log_err();
+
+                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
@@ -1589,8 +1770,8 @@ impl AcpThread {
        self.entries.iter().map(|e| e.to_markdown(cx)).collect()
    }

-    pub fn emit_server_exited(&mut self, status: ExitStatus, cx: &mut Context<Self>) {
-        cx.emit(AcpThreadEvent::ServerExited(status));
+    pub fn emit_load_error(&mut self, error: LoadError, cx: &mut Context<Self>) {
+        cx.emit(AcpThreadEvent::LoadError(error));
    }
 }

@@ -1641,7 +1822,7 @@ mod tests {
    use super::*;
    use anyhow::anyhow;
    use futures::{channel::mpsc, future::LocalBoxFuture, select};
-    use gpui::{AsyncApp, TestAppContext, WeakEntity};
+    use gpui::{App, AsyncApp, TestAppContext, WeakEntity};
    use indoc::indoc;
    use project::{FakeFs, Fs};
    use rand::Rng as _;
@@ -2128,7 +2309,7 @@ mod tests {
                "}
            );
        });
-        assert_eq!(fs.files(), vec![Path::new("/test/file-0")]);
+        assert_eq!(fs.files(), vec![Path::new(path!("/test/file-0"))]);

        cx.update(|cx| thread.update(cx, |thread, cx| thread.send(vec!["ipsum".into()], cx)))
            .await
@@ -2158,7 +2339,10 @@ mod tests {
        });
        assert_eq!(
            fs.files(),
-            vec![Path::new("/test/file-0"), Path::new("/test/file-1")]
+            vec![
+                Path::new(path!("/test/file-0")),
+                Path::new(path!("/test/file-1"))
+            ]
        );

        // Checkpoint isn't stored when there are no changes.
@@ -2199,7 +2383,10 @@ mod tests {
        });
        assert_eq!(
            fs.files(),
-            vec![Path::new("/test/file-0"), Path::new("/test/file-1")]
+            vec![
+                Path::new(path!("/test/file-0")),
+                Path::new(path!("/test/file-1"))
+            ]
        );

        // Rewinding the conversation truncates the history and restores the checkpoint.
@@ -2227,7 +2414,93 @@ mod tests {
                "}
            );
        });
-        assert_eq!(fs.files(), vec![Path::new("/test/file-0")]);
+        assert_eq!(fs.files(), vec![Path::new(path!("/test/file-0"))]);
+    }
+
+    #[gpui::test]
+    async fn test_refusal(cx: &mut TestAppContext) {
+        init_test(cx);
+        let fs = FakeFs::new(cx.background_executor.clone());
+        fs.insert_tree(path!("/"), json!({})).await;
+        let project = Project::test(fs.clone(), [path!("/").as_ref()], cx).await;
+
+        let refuse_next = Arc::new(AtomicBool::new(false));
+        let connection = Rc::new(FakeAgentConnection::new().on_user_message({
+            let refuse_next = refuse_next.clone();
+            move |request, thread, mut cx| {
+                let refuse_next = refuse_next.clone();
+                async move {
+                    if refuse_next.load(SeqCst) {
+                        return Ok(acp::PromptResponse {
+                            stop_reason: acp::StopReason::Refusal,
+                        });
+                    }
+
+                    let acp::ContentBlock::Text(content) = &request.prompt[0] else {
+                        panic!("expected text content block");
+                    };
+                    thread.update(&mut cx, |thread, cx| {
+                        thread
+                            .handle_session_update(
+                                acp::SessionUpdate::AgentMessageChunk {
+                                    content: content.text.to_uppercase().into(),
+                                },
+                                cx,
+                            )
+                            .unwrap();
+                    })?;
+                    Ok(acp::PromptResponse {
+                        stop_reason: acp::StopReason::EndTurn,
+                    })
+                }
+                .boxed_local()
+            }
+        }));
+        let thread = cx
+            .update(|cx| connection.new_thread(project, Path::new(path!("/test")), cx))
+            .await
+            .unwrap();
+
+        cx.update(|cx| thread.update(cx, |thread, cx| thread.send(vec!["hello".into()], cx)))
+            .await
+            .unwrap();
+        thread.read_with(cx, |thread, cx| {
+            assert_eq!(
+                thread.to_markdown(cx),
+                indoc! {"
+                    ## User
+
+                    hello
+
+                    ## Assistant
+
+                    HELLO
+
+                "}
+            );
+        });
+
+        // Simulate refusing the second message, ensuring the conversation gets
+        // truncated to before sending it.
+        refuse_next.store(true, SeqCst);
+        cx.update(|cx| thread.update(cx, |thread, cx| thread.send(vec!["world".into()], cx)))
+            .await
+            .unwrap();
+        thread.read_with(cx, |thread, cx| {
+            assert_eq!(
+                thread.to_markdown(cx),
+                indoc! {"
+                    ## User
+
+                    hello
+
+                    ## Assistant
+
+                    HELLO
+
+                "}
+            );
+        });
    }

    async fn run_until_first_tool_call(
@@ -2311,7 +2584,7 @@ mod tests {
            self: Rc<Self>,
            project: Entity<Project>,
            _cwd: &Path,
-            cx: &mut gpui::App,
+            cx: &mut App,
        ) -> Task<gpui::Result<Entity<AcpThread>>> {
            let session_id = acp::SessionId(
                rand::thread_rng()
@@ -2321,8 +2594,16 @@ mod tests {
                    .collect::<String>()
                    .into(),
            );
-            let thread =
-                cx.new(|cx| AcpThread::new("Test", self.clone(), project, session_id.clone(), cx));
+            let action_log = cx.new(|_| ActionLog::new(project.clone()));
+            let thread = cx.new(|_cx| {
+                AcpThread::new(
+                    "Test",
+                    self.clone(),
+                    project,
+                    action_log,
+                    session_id.clone(),
+                )
+            });
            self.sessions.lock().insert(session_id, thread.downgrade());
            Task::ready(Ok(thread))
        }
@@ -2354,6 +2635,14 @@ mod tests {
            }
        }

+        fn prompt_capabilities(&self) -> acp::PromptCapabilities {
+            acp::PromptCapabilities {
+                image: true,
+                audio: true,
+                embedded_context: true,
+            }
+        }
+
        fn cancel(&self, session_id: &acp::SessionId, cx: &mut App) {
            let sessions = self.sessions.lock();
            let thread = sessions.get(session_id).unwrap().clone();
@@ -2367,11 +2656,11 @@ mod tests {
            .detach();
        }

-        fn session_editor(
+        fn truncate(
            &self,
            session_id: &acp::SessionId,
            _cx: &mut App,
-        ) -> Option<Rc<dyn AgentSessionEditor>> {
+        ) -> Option<Rc<dyn AgentSessionTruncate>> {
            Some(Rc::new(FakeAgentSessionEditor {
                _session_id: session_id.clone(),
            }))
@@ -2386,8 +2675,8 @@ mod tests {
        _session_id: acp::SessionId,
    }

-    impl AgentSessionEditor for FakeAgentSessionEditor {
-        fn truncate(&self, _message_id: UserMessageId, _cx: &mut App) -> Task<Result<()>> {
+    impl AgentSessionTruncate for FakeAgentSessionEditor {
+        fn run(&self, _message_id: UserMessageId, _cx: &mut App) -> Task<Result<()>> {
            Task::ready(Ok(()))
        }
    }
--- a/crates/acp_thread/src/connection.rs
+++ b/crates/acp_thread/src/connection.rs
@@ -5,11 +5,12 @@ use collections::IndexMap;
 use gpui::{Entity, SharedString, Task};
 use language_model::LanguageModelProviderId;
 use project::Project;
+use serde::{Deserialize, Serialize};
 use std::{any::Any, error::Error, fmt, path::Path, rc::Rc, sync::Arc};
 use ui::{App, IconName};
 use uuid::Uuid;

-#[derive(Clone, Debug, Eq, PartialEq)]
+#[derive(Debug, Clone, PartialEq, Eq, Serialize, Deserialize, Hash)]
 pub struct UserMessageId(Arc<str>);

 impl UserMessageId {
@@ -37,6 +38,8 @@ pub trait AgentConnection {
        cx: &mut App,
    ) -> Task<Result<acp::PromptResponse>>;

+    fn prompt_capabilities(&self) -> acp::PromptCapabilities;
+
    fn resume(
        &self,
        _session_id: &acp::SessionId,
@@ -47,11 +50,19 @@ pub trait AgentConnection {

    fn cancel(&self, session_id: &acp::SessionId, cx: &mut App);

-    fn session_editor(
+    fn truncate(
        &self,
        _session_id: &acp::SessionId,
        _cx: &mut App,
-    ) -> Option<Rc<dyn AgentSessionEditor>> {
+    ) -> Option<Rc<dyn AgentSessionTruncate>> {
+        None
+    }
+
+    fn set_title(
+        &self,
+        _session_id: &acp::SessionId,
+        _cx: &mut App,
+    ) -> Option<Rc<dyn AgentSessionSetTitle>> {
        None
    }

@@ -63,6 +74,10 @@ pub trait AgentConnection {
        None
    }

+    fn telemetry(&self) -> Option<Rc<dyn AgentTelemetry>> {
+        None
+    }
+
    fn into_any(self: Rc<Self>) -> Rc<dyn Any>;
 }

@@ -72,14 +87,31 @@ impl dyn AgentConnection {
    }
 }

-pub trait AgentSessionEditor {
-    fn truncate(&self, message_id: UserMessageId, cx: &mut App) -> Task<Result<()>>;
+pub trait AgentSessionTruncate {
+    fn run(&self, message_id: UserMessageId, cx: &mut App) -> Task<Result<()>>;
 }

 pub trait AgentSessionResume {
    fn run(&self, cx: &mut App) -> Task<Result<acp::PromptResponse>>;
 }

+pub trait AgentSessionSetTitle {
+    fn run(&self, title: SharedString, cx: &mut App) -> Task<Result<()>>;
+}
+
+pub trait AgentTelemetry {
+    /// The name of the agent used for telemetry.
+    fn agent_name(&self) -> String;
+
+    /// A representation of the current thread state that can be serialized for
+    /// storage with telemetry events.
+    fn thread_data(
+        &self,
+        session_id: &acp::SessionId,
+        cx: &mut App,
+    ) -> Task<Result<serde_json::Value>>;
+}
+
 #[derive(Debug)]
 pub struct AuthRequired {
    pub description: Option<String>,
@@ -208,6 +240,7 @@ impl AgentModelList {
 mod test_support {
    use std::sync::Arc;

+    use action_log::ActionLog;
    use collections::HashMap;
    use futures::{channel::oneshot, future::try_join_all};
    use gpui::{AppContext as _, WeakEntity};
@@ -295,8 +328,16 @@ mod test_support {
            cx: &mut gpui::App,
        ) -> Task<gpui::Result<Entity<AcpThread>>> {
            let session_id = acp::SessionId(self.sessions.lock().len().to_string().into());
-            let thread =
-                cx.new(|cx| AcpThread::new("Test", self.clone(), project, session_id.clone(), cx));
+            let action_log = cx.new(|_| ActionLog::new(project.clone()));
+            let thread = cx.new(|_cx| {
+                AcpThread::new(
+                    "Test",
+                    self.clone(),
+                    project,
+                    action_log,
+                    session_id.clone(),
+                )
+            });
            self.sessions.lock().insert(
                session_id,
                Session {
@@ -307,6 +348,14 @@ mod test_support {
            Task::ready(Ok(thread))
        }

+        fn prompt_capabilities(&self) -> acp::PromptCapabilities {
+            acp::PromptCapabilities {
+                image: true,
+                audio: true,
+                embedded_context: true,
+            }
+        }
+
        fn authenticate(
            &self,
            _method_id: acp::AuthMethodId,
@@ -383,15 +432,15 @@ mod test_support {
                .response_tx
                .take()
            {
-                end_turn_tx.send(acp::StopReason::Canceled).unwrap();
+                end_turn_tx.send(acp::StopReason::Cancelled).unwrap();
            }
        }

-        fn session_editor(
+        fn truncate(
            &self,
            _session_id: &agent_client_protocol::SessionId,
            _cx: &mut App,
-        ) -> Option<Rc<dyn AgentSessionEditor>> {
+        ) -> Option<Rc<dyn AgentSessionTruncate>> {
            Some(Rc::new(StubAgentSessionEditor))
        }

@@ -402,8 +451,8 @@ mod test_support {

    struct StubAgentSessionEditor;

-    impl AgentSessionEditor for StubAgentSessionEditor {
-        fn truncate(&self, _: UserMessageId, _: &mut App) -> Task<Result<()>> {
+    impl AgentSessionTruncate for StubAgentSessionEditor {
+        fn run(&self, _: UserMessageId, _: &mut App) -> Task<Result<()>> {
            Task::ready(Ok(()))
        }
    }
--- a/crates/acp_thread/src/diff.rs
+++ b/crates/acp_thread/src/diff.rs
@@ -1,4 +1,3 @@
-use agent_client_protocol as acp;
 use anyhow::Result;
 use buffer_diff::{BufferDiff, BufferDiffSnapshot};
 use editor::{MultiBuffer, PathKey};
@@ -21,69 +20,54 @@ pub enum Diff {
 }

 impl Diff {
-    pub fn from_acp(
-        diff: acp::Diff,
+    pub fn finalized(
+        path: PathBuf,
+        old_text: Option<String>,
+        new_text: String,
        language_registry: Arc<LanguageRegistry>,
        cx: &mut Context<Self>,
    ) -> Self {
-        let acp::Diff {
-            path,
-            old_text,
-            new_text,
-        } = diff;
-
        let multibuffer = cx.new(|_cx| MultiBuffer::without_headers(Capability::ReadOnly));
-
        let new_buffer = cx.new(|cx| Buffer::local(new_text, cx));
-        let old_buffer = cx.new(|cx| Buffer::local(old_text.unwrap_or("".into()), cx));
-        let new_buffer_snapshot = new_buffer.read(cx).text_snapshot();
-        let buffer_diff = cx.new(|cx| BufferDiff::new(&new_buffer_snapshot, cx));
-
+        let base_text = old_text.clone().unwrap_or(String::new()).into();
        let task = cx.spawn({
            let multibuffer = multibuffer.clone();
            let path = path.clone();
+            let buffer = new_buffer.clone();
            async move |_, cx| {
                let language = language_registry
                    .language_for_file_path(&path)
                    .await
                    .log_err();

-                new_buffer.update(cx, |buffer, cx| buffer.set_language(language.clone(), cx))?;
+                buffer.update(cx, |buffer, cx| buffer.set_language(language.clone(), cx))?;

-                let old_buffer_snapshot = old_buffer.update(cx, |buffer, cx| {
-                    buffer.set_language(language, cx);
-                    buffer.snapshot()
-                })?;
-
-                buffer_diff
-                    .update(cx, |diff, cx| {
-                        diff.set_base_text(
-                            old_buffer_snapshot,
-                            Some(language_registry),
-                            new_buffer_snapshot,
-                            cx,
-                        )
-                    })?
-                    .await?;
+                let diff = build_buffer_diff(
+                    old_text.unwrap_or("".into()).into(),
+                    &buffer,
+                    Some(language_registry.clone()),
+                    cx,
+                )
+                .await?;

                multibuffer
                    .update(cx, |multibuffer, cx| {
                        let hunk_ranges = {
-                            let buffer = new_buffer.read(cx);
-                            let diff = buffer_diff.read(cx);
+                            let buffer = buffer.read(cx);
+                            let diff = diff.read(cx);
                            diff.hunks_intersecting_range(Anchor::MIN..Anchor::MAX, buffer, cx)
                                .map(|diff_hunk| diff_hunk.buffer_range.to_point(buffer))
                                .collect::<Vec<_>>()
                        };

                        multibuffer.set_excerpts_for_path(
-                            PathKey::for_buffer(&new_buffer, cx),
-                            new_buffer.clone(),
+                            PathKey::for_buffer(&buffer, cx),
+                            buffer.clone(),
                            hunk_ranges,
                            editor::DEFAULT_MULTIBUFFER_CONTEXT,
                            cx,
                        );
-                        multibuffer.add_diff(buffer_diff, cx);
+                        multibuffer.add_diff(diff, cx);
                    })
                    .log_err();

@@ -94,23 +78,26 @@ impl Diff {
        Self::Finalized(FinalizedDiff {
            multibuffer,
            path,
+            base_text,
+            new_buffer,
            _update_diff: task,
        })
    }

    pub fn new(buffer: Entity<Buffer>, cx: &mut Context<Self>) -> Self {
-        let buffer_snapshot = buffer.read(cx).snapshot();
-        let base_text = buffer_snapshot.text();
-        let language_registry = buffer.read(cx).language_registry();
-        let text_snapshot = buffer.read(cx).text_snapshot();
+        let buffer_text_snapshot = buffer.read(cx).text_snapshot();
+        let base_text_snapshot = buffer.read(cx).snapshot();
+        let base_text = base_text_snapshot.text();
+        debug_assert_eq!(buffer_text_snapshot.text(), base_text);
        let buffer_diff = cx.new(|cx| {
-            let mut diff = BufferDiff::new(&text_snapshot, cx);
-            let _ = diff.set_base_text(
-                buffer_snapshot.clone(),
-                language_registry,
-                text_snapshot,
-                cx,
-            );
+            let mut diff = BufferDiff::new_unchanged(&buffer_text_snapshot, base_text_snapshot);
+            let snapshot = diff.snapshot(cx);
+            let secondary_diff = cx.new(|cx| {
+                let mut diff = BufferDiff::new(&buffer_text_snapshot, cx);
+                diff.set_snapshot(snapshot, &buffer_text_snapshot, cx);
+                diff
+            });
+            diff.set_secondary_diff(secondary_diff);
            diff
        });

@@ -128,7 +115,7 @@ impl Diff {
                    diff.update(cx);
                }
            }),
-            buffer,
+            new_buffer: buffer,
            diff: buffer_diff,
            revealed_ranges: Vec::new(),
            update_diff: Task::ready(Ok(())),
@@ -163,9 +150,9 @@ impl Diff {
            .map(|buffer| buffer.read(cx).text())
            .join("\n");
        let path = match self {
-            Diff::Pending(PendingDiff { buffer, .. }) => {
-                buffer.read(cx).file().map(|file| file.path().as_ref())
-            }
+            Diff::Pending(PendingDiff {
+                new_buffer: buffer, ..
+            }) => buffer.read(cx).file().map(|file| file.path().as_ref()),
            Diff::Finalized(FinalizedDiff { path, .. }) => Some(path.as_path()),
        };
        format!(
@@ -178,12 +165,33 @@ impl Diff {
    pub fn has_revealed_range(&self, cx: &App) -> bool {
        self.multibuffer().read(cx).excerpt_paths().next().is_some()
    }
+
+    pub fn needs_update(&self, old_text: &str, new_text: &str, cx: &App) -> bool {
+        match self {
+            Diff::Pending(PendingDiff {
+                base_text,
+                new_buffer,
+                ..
+            }) => {
+                base_text.as_str() != old_text
+                    || !new_buffer.read(cx).as_rope().chunks().equals_str(new_text)
+            }
+            Diff::Finalized(FinalizedDiff {
+                base_text,
+                new_buffer,
+                ..
+            }) => {
+                base_text.as_str() != old_text
+                    || !new_buffer.read(cx).as_rope().chunks().equals_str(new_text)
+            }
+        }
+    }
 }

 pub struct PendingDiff {
    multibuffer: Entity<MultiBuffer>,
    base_text: Arc<String>,
-    buffer: Entity<Buffer>,
+    new_buffer: Entity<Buffer>,
    diff: Entity<BufferDiff>,
    revealed_ranges: Vec<Range<Anchor>>,
    _subscription: Subscription,
@@ -192,7 +200,7 @@ pub struct PendingDiff {

 impl PendingDiff {
    pub fn update(&mut self, cx: &mut Context<Diff>) {
-        let buffer = self.buffer.clone();
+        let buffer = self.new_buffer.clone();
        let buffer_diff = self.diff.clone();
        let base_text = self.base_text.clone();
        self.update_diff = cx.spawn(async move |diff, cx| {
@@ -209,7 +217,10 @@ impl PendingDiff {
            )
            .await?;
            buffer_diff.update(cx, |diff, cx| {
-                diff.set_snapshot(diff_snapshot, &text_snapshot, cx)
+                diff.set_snapshot(diff_snapshot.clone(), &text_snapshot, cx);
+                diff.secondary_diff().unwrap().update(cx, |diff, cx| {
+                    diff.set_snapshot(diff_snapshot.clone(), &text_snapshot, cx);
+                });
            })?;
            diff.update(cx, |diff, cx| {
                if let Diff::Pending(diff) = diff {
@@ -227,10 +238,10 @@ impl PendingDiff {
    fn finalize(&self, cx: &mut Context<Diff>) -> FinalizedDiff {
        let ranges = self.excerpt_ranges(cx);
        let base_text = self.base_text.clone();
-        let language_registry = self.buffer.read(cx).language_registry().clone();
+        let language_registry = self.new_buffer.read(cx).language_registry();

        let path = self
-            .buffer
+            .new_buffer
            .read(cx)
            .file()
            .map(|file| file.path().as_ref())
@@ -239,12 +250,12 @@ impl PendingDiff {

        // Replace the buffer in the multibuffer with the snapshot
        let buffer = cx.new(|cx| {
-            let language = self.buffer.read(cx).language().cloned();
+            let language = self.new_buffer.read(cx).language().cloned();
            let buffer = TextBuffer::new_normalized(
                0,
                cx.entity_id().as_non_zero_u64().into(),
-                self.buffer.read(cx).line_ending(),
-                self.buffer.read(cx).as_rope().clone(),
+                self.new_buffer.read(cx).line_ending(),
+                self.new_buffer.read(cx).as_rope().clone(),
            );
            let mut buffer = Buffer::build(buffer, None, Capability::ReadWrite);
            buffer.set_language(language, cx);
@@ -253,7 +264,6 @@ impl PendingDiff {

        let buffer_diff = cx.spawn({
            let buffer = buffer.clone();
-            let language_registry = language_registry.clone();
            async move |_this, cx| {
                build_buffer_diff(base_text, &buffer, language_registry, cx).await
            }
@@ -281,7 +291,9 @@ impl PendingDiff {

        FinalizedDiff {
            path,
+            base_text: self.base_text.clone(),
            multibuffer: self.multibuffer.clone(),
+            new_buffer: self.new_buffer.clone(),
            _update_diff: update_diff,
        }
    }
@@ -290,8 +302,8 @@ impl PendingDiff {
        let ranges = self.excerpt_ranges(cx);
        self.multibuffer.update(cx, |multibuffer, cx| {
            multibuffer.set_excerpts_for_path(
-                PathKey::for_buffer(&self.buffer, cx),
-                self.buffer.clone(),
+                PathKey::for_buffer(&self.new_buffer, cx),
+                self.new_buffer.clone(),
                ranges,
                editor::DEFAULT_MULTIBUFFER_CONTEXT,
                cx,
@@ -303,7 +315,7 @@ impl PendingDiff {
    }

    fn excerpt_ranges(&self, cx: &App) -> Vec<Range<Point>> {
-        let buffer = self.buffer.read(cx);
+        let buffer = self.new_buffer.read(cx);
        let diff = self.diff.read(cx);
        let mut ranges = diff
            .hunks_intersecting_range(Anchor::MIN..Anchor::MAX, buffer, cx)
@@ -337,6 +349,8 @@ impl PendingDiff {

 pub struct FinalizedDiff {
    path: PathBuf,
+    base_text: Arc<String>,
+    new_buffer: Entity<Buffer>,
    multibuffer: Entity<MultiBuffer>,
    _update_diff: Task<Result<()>>,
 }
@@ -390,3 +404,21 @@ async fn build_buffer_diff(
        diff
    })
 }
+
+#[cfg(test)]
+mod tests {
+    use gpui::{AppContext as _, TestAppContext};
+    use language::Buffer;
+
+    use crate::Diff;
+
+    #[gpui::test]
+    async fn test_pending_diff(cx: &mut TestAppContext) {
+        let buffer = cx.new(|cx| Buffer::local("hello!", cx));
+        let _diff = cx.new(|cx| Diff::new(buffer.clone(), cx));
+        buffer.update(cx, |buffer, cx| {
+            buffer.set_text("HELLO!", cx);
+        });
+        cx.run_until_parked();
+    }
+}
--- a/crates/acp_thread/src/mention.rs
+++ b/crates/acp_thread/src/mention.rs
@@ -1,31 +1,33 @@
-use agent::ThreadId;
+use agent_client_protocol as acp;
 use anyhow::{Context as _, Result, bail};
 use file_icons::FileIcons;
 use prompt_store::{PromptId, UserPromptId};
+use serde::{Deserialize, Serialize};
 use std::{
    fmt,
-    ops::Range,
+    ops::RangeInclusive,
    path::{Path, PathBuf},
    str::FromStr,
 };
 use ui::{App, IconName, SharedString};
 use url::Url;

-#[derive(Clone, Debug, PartialEq, Eq)]
+#[derive(Clone, Debug, PartialEq, Eq, Serialize, Deserialize, Hash)]
 pub enum MentionUri {
    File {
        abs_path: PathBuf,
    },
+    PastedImage,
    Directory {
        abs_path: PathBuf,
    },
    Symbol {
-        path: PathBuf,
+        abs_path: PathBuf,
        name: String,
-        line_range: Range<u32>,
+        line_range: RangeInclusive<u32>,
    },
    Thread {
-        id: ThreadId,
+        id: acp::SessionId,
        name: String,
    },
    TextThread {
@@ -37,8 +39,9 @@ pub enum MentionUri {
        name: String,
    },
    Selection {
-        path: PathBuf,
-        line_range: Range<u32>,
+        #[serde(default, skip_serializing_if = "Option::is_none")]
+        abs_path: Option<PathBuf>,
+        line_range: RangeInclusive<u32>,
    },
    Fetch {
        url: Url,
@@ -47,55 +50,56 @@ pub enum MentionUri {

 impl MentionUri {
    pub fn parse(input: &str) -> Result<Self> {
+        fn parse_line_range(fragment: &str) -> Result<RangeInclusive<u32>> {
+            let range = fragment
+                .strip_prefix("L")
+                .context("Line range must start with \"L\"")?;
+            let (start, end) = range
+                .split_once(":")
+                .context("Line range must use colon as separator")?;
+            let range = start
+                .parse::<u32>()
+                .context("Parsing line range start")?
+                .checked_sub(1)
+                .context("Line numbers should be 1-based")?
+                ..=end
+                    .parse::<u32>()
+                    .context("Parsing line range end")?
+                    .checked_sub(1)
+                    .context("Line numbers should be 1-based")?;
+            Ok(range)
+        }
+
        let url = url::Url::parse(input)?;
        let path = url.path();
        match url.scheme() {
            "file" => {
+                let path = url.to_file_path().ok().context("Extracting file path")?;
                if let Some(fragment) = url.fragment() {
-                    let range = fragment
-                        .strip_prefix("L")
-                        .context("Line range must start with \"L\"")?;
-                    let (start, end) = range
-                        .split_once(":")
-                        .context("Line range must use colon as separator")?;
-                    let line_range = start
-                        .parse::<u32>()
-                        .context("Parsing line range start")?
-                        .checked_sub(1)
-                        .context("Line numbers should be 1-based")?
-                        ..end
-                            .parse::<u32>()
-                            .context("Parsing line range end")?
-                            .checked_sub(1)
-                            .context("Line numbers should be 1-based")?;
+                    let line_range = parse_line_range(fragment)?;
                    if let Some(name) = single_query_param(&url, "symbol")? {
                        Ok(Self::Symbol {
                            name,
-                            path: path.into(),
+                            abs_path: path,
                            line_range,
                        })
                    } else {
                        Ok(Self::Selection {
-                            path: path.into(),
+                            abs_path: Some(path),
                            line_range,
                        })
                    }
+                } else if input.ends_with("/") {
+                    Ok(Self::Directory { abs_path: path })
                } else {
-                    let abs_path =
-                        PathBuf::from(format!("{}{}", url.host_str().unwrap_or(""), path));
-
-                    if input.ends_with("/") {
-                        Ok(Self::Directory { abs_path })
-                    } else {
-                        Ok(Self::File { abs_path })
-                    }
+                    Ok(Self::File { abs_path: path })
                }
            }
            "zed" => {
                if let Some(thread_id) = path.strip_prefix("/agent/thread/") {
                    let name = single_query_param(&url, "name")?.context("Missing thread name")?;
                    Ok(Self::Thread {
-                        id: thread_id.into(),
+                        id: acp::SessionId(thread_id.into()),
                        name,
                    })
                } else if let Some(path) = path.strip_prefix("/agent/text-thread/") {
@@ -111,6 +115,17 @@ impl MentionUri {
                        id: rule_id.into(),
                        name,
                    })
+                } else if path.starts_with("/agent/pasted-image") {
+                    Ok(Self::PastedImage)
+                } else if path.starts_with("/agent/untitled-buffer") {
+                    let fragment = url
+                        .fragment()
+                        .context("Missing fragment for untitled buffer selection")?;
+                    let line_range = parse_line_range(fragment)?;
+                    Ok(Self::Selection {
+                        abs_path: None,
+                        line_range,
+                    })
                } else {
                    bail!("invalid zed url: {:?}", input);
                }
@@ -127,13 +142,16 @@ impl MentionUri {
                .unwrap_or_default()
                .to_string_lossy()
                .into_owned(),
+            MentionUri::PastedImage => "Image".to_string(),
            MentionUri::Symbol { name, .. } => name.clone(),
            MentionUri::Thread { name, .. } => name.clone(),
            MentionUri::TextThread { name, .. } => name.clone(),
            MentionUri::Rule { name, .. } => name.clone(),
            MentionUri::Selection {
-                path, line_range, ..
-            } => selection_name(path, line_range),
+                abs_path: path,
+                line_range,
+                ..
+            } => selection_name(path.as_deref(), line_range),
            MentionUri::Fetch { url } => url.to_string(),
        }
    }
@@ -143,6 +161,7 @@ impl MentionUri {
            MentionUri::File { abs_path } => {
                FileIcons::get_icon(abs_path, cx).unwrap_or_else(|| IconName::File.path().into())
            }
+            MentionUri::PastedImage => IconName::Image.path().into(),
            MentionUri::Directory { .. } => FileIcons::get_folder_icon(false, cx)
                .unwrap_or_else(|| IconName::Folder.path().into()),
            MentionUri::Symbol { .. } => IconName::Code.path().into(),
@@ -161,42 +180,42 @@ impl MentionUri {
    pub fn to_uri(&self) -> Url {
        match self {
            MentionUri::File { abs_path } => {
-                let mut url = Url::parse("file:///").unwrap();
-                let path = abs_path.to_string_lossy();
-                url.set_path(&path);
-                url
+                Url::from_file_path(abs_path).expect("mention path should be absolute")
            }
+            MentionUri::PastedImage => Url::parse("zed:///agent/pasted-image").unwrap(),
            MentionUri::Directory { abs_path } => {
-                let mut url = Url::parse("file:///").unwrap();
-                let mut path = abs_path.to_string_lossy().to_string();
-                if !path.ends_with("/") {
-                    path.push_str("/");
-                }
-                url.set_path(&path);
-                url
+                Url::from_directory_path(abs_path).expect("mention path should be absolute")
            }
            MentionUri::Symbol {
-                path,
+                abs_path,
                name,
                line_range,
            } => {
-                let mut url = Url::parse("file:///").unwrap();
-                url.set_path(&path.to_string_lossy());
+                let mut url =
+                    Url::from_file_path(abs_path).expect("mention path should be absolute");
                url.query_pairs_mut().append_pair("symbol", name);
                url.set_fragment(Some(&format!(
                    "L{}:{}",
-                    line_range.start + 1,
-                    line_range.end + 1
+                    line_range.start() + 1,
+                    line_range.end() + 1
                )));
                url
            }
-            MentionUri::Selection { path, line_range } => {
-                let mut url = Url::parse("file:///").unwrap();
-                url.set_path(&path.to_string_lossy());
+            MentionUri::Selection {
+                abs_path: path,
+                line_range,
+            } => {
+                let mut url = if let Some(path) = path {
+                    Url::from_file_path(path).expect("mention path should be absolute")
+                } else {
+                    let mut url = Url::parse("zed:///").unwrap();
+                    url.set_path("/agent/untitled-buffer");
+                    url
+                };
                url.set_fragment(Some(&format!(
                    "L{}:{}",
-                    line_range.start + 1,
-                    line_range.end + 1
+                    line_range.start() + 1,
+                    line_range.end() + 1
                )));
                url
            }
@@ -208,7 +227,10 @@ impl MentionUri {
            }
            MentionUri::TextThread { path, name } => {
                let mut url = Url::parse("zed:///").unwrap();
-                url.set_path(&format!("/agent/text-thread/{}", path.to_string_lossy()));
+                url.set_path(&format!(
+                    "/agent/text-thread/{}",
+                    path.to_string_lossy().trim_start_matches('/')
+                ));
                url.query_pairs_mut().append_pair("name", name);
                url
            }
@@ -254,26 +276,30 @@ fn single_query_param(url: &Url, name: &'static str) -> Result<Option<String>> {
    }
 }

-pub fn selection_name(path: &Path, line_range: &Range<u32>) -> String {
+pub fn selection_name(path: Option<&Path>, line_range: &RangeInclusive<u32>) -> String {
    format!(
        "{} ({}:{})",
-        path.file_name().unwrap_or_default().display(),
-        line_range.start + 1,
-        line_range.end + 1
+        path.and_then(|path| path.file_name())
+            .unwrap_or("Untitled".as_ref())
+            .display(),
+        *line_range.start() + 1,
+        *line_range.end() + 1
    )
 }

 #[cfg(test)]
 mod tests {
+    use util::{path, uri};
+
    use super::*;

    #[test]
    fn test_parse_file_uri() {
-        let file_uri = "file:///path/to/file.rs";
+        let file_uri = uri!("file:///path/to/file.rs");
        let parsed = MentionUri::parse(file_uri).unwrap();
        match &parsed {
            MentionUri::File { abs_path } => {
-                assert_eq!(abs_path.to_str().unwrap(), "/path/to/file.rs");
+                assert_eq!(abs_path.to_str().unwrap(), path!("/path/to/file.rs"));
            }
            _ => panic!("Expected File variant"),
        }
@@ -282,11 +308,11 @@ mod tests {

    #[test]
    fn test_parse_directory_uri() {
-        let file_uri = "file:///path/to/dir/";
+        let file_uri = uri!("file:///path/to/dir/");
        let parsed = MentionUri::parse(file_uri).unwrap();
        match &parsed {
            MentionUri::Directory { abs_path } => {
-                assert_eq!(abs_path.to_str().unwrap(), "/path/to/dir/");
+                assert_eq!(abs_path.to_str().unwrap(), path!("/path/to/dir/"));
            }
            _ => panic!("Expected Directory variant"),
        }
@@ -296,33 +322,35 @@ mod tests {
    #[test]
    fn test_to_directory_uri_with_slash() {
        let uri = MentionUri::Directory {
-            abs_path: PathBuf::from("/path/to/dir/"),
+            abs_path: PathBuf::from(path!("/path/to/dir/")),
        };
-        assert_eq!(uri.to_uri().to_string(), "file:///path/to/dir/");
+        let expected = uri!("file:///path/to/dir/");
+        assert_eq!(uri.to_uri().to_string(), expected);
    }

    #[test]
    fn test_to_directory_uri_without_slash() {
        let uri = MentionUri::Directory {
-            abs_path: PathBuf::from("/path/to/dir"),
+            abs_path: PathBuf::from(path!("/path/to/dir")),
        };
-        assert_eq!(uri.to_uri().to_string(), "file:///path/to/dir/");
+        let expected = uri!("file:///path/to/dir/");
+        assert_eq!(uri.to_uri().to_string(), expected);
    }

    #[test]
    fn test_parse_symbol_uri() {
-        let symbol_uri = "file:///path/to/file.rs?symbol=MySymbol#L10:20";
+        let symbol_uri = uri!("file:///path/to/file.rs?symbol=MySymbol#L10:20");
        let parsed = MentionUri::parse(symbol_uri).unwrap();
        match &parsed {
            MentionUri::Symbol {
-                path,
+                abs_path: path,
                name,
                line_range,
            } => {
-                assert_eq!(path.to_str().unwrap(), "/path/to/file.rs");
+                assert_eq!(path.to_str().unwrap(), path!("/path/to/file.rs"));
                assert_eq!(name, "MySymbol");
-                assert_eq!(line_range.start, 9);
-                assert_eq!(line_range.end, 19);
+                assert_eq!(line_range.start(), &9);
+                assert_eq!(line_range.end(), &19);
            }
            _ => panic!("Expected Symbol variant"),
        }
@@ -331,19 +359,42 @@ mod tests {

    #[test]
    fn test_parse_selection_uri() {
-        let selection_uri = "file:///path/to/file.rs#L5:15";
+        let selection_uri = uri!("file:///path/to/file.rs#L5:15");
        let parsed = MentionUri::parse(selection_uri).unwrap();
        match &parsed {
-            MentionUri::Selection { path, line_range } => {
-                assert_eq!(path.to_str().unwrap(), "/path/to/file.rs");
-                assert_eq!(line_range.start, 4);
-                assert_eq!(line_range.end, 14);
+            MentionUri::Selection {
+                abs_path: path,
+                line_range,
+            } => {
+                assert_eq!(
+                    path.as_ref().unwrap().to_str().unwrap(),
+                    path!("/path/to/file.rs")
+                );
+                assert_eq!(line_range.start(), &4);
+                assert_eq!(line_range.end(), &14);
            }
            _ => panic!("Expected Selection variant"),
        }
        assert_eq!(parsed.to_uri().to_string(), selection_uri);
    }

+    #[test]
+    fn test_parse_untitled_selection_uri() {
+        let selection_uri = uri!("zed:///agent/untitled-buffer#L1:10");
+        let parsed = MentionUri::parse(selection_uri).unwrap();
+        match &parsed {
+            MentionUri::Selection {
+                abs_path: None,
+                line_range,
+            } => {
+                assert_eq!(line_range.start(), &0);
+                assert_eq!(line_range.end(), &9);
+            }
+            _ => panic!("Expected Selection variant without path"),
+        }
+        assert_eq!(parsed.to_uri().to_string(), selection_uri);
+    }
+
    #[test]
    fn test_parse_thread_uri() {
        let thread_uri = "zed:///agent/thread/session123?name=Thread+name";
@@ -417,32 +468,35 @@ mod tests {
    #[test]
    fn test_invalid_line_range_format() {
        // Missing L prefix
-        assert!(MentionUri::parse("file:///path/to/file.rs#10:20").is_err());
+        assert!(MentionUri::parse(uri!("file:///path/to/file.rs#10:20")).is_err());

        // Missing colon separator
-        assert!(MentionUri::parse("file:///path/to/file.rs#L1020").is_err());
+        assert!(MentionUri::parse(uri!("file:///path/to/file.rs#L1020")).is_err());

        // Invalid numbers
-        assert!(MentionUri::parse("file:///path/to/file.rs#L10:abc").is_err());
-        assert!(MentionUri::parse("file:///path/to/file.rs#Labc:20").is_err());
+        assert!(MentionUri::parse(uri!("file:///path/to/file.rs#L10:abc")).is_err());
+        assert!(MentionUri::parse(uri!("file:///path/to/file.rs#Labc:20")).is_err());
    }

    #[test]
    fn test_invalid_query_parameters() {
        // Invalid query parameter name
-        assert!(MentionUri::parse("file:///path/to/file.rs#L10:20?invalid=test").is_err());
+        assert!(MentionUri::parse(uri!("file:///path/to/file.rs#L10:20?invalid=test")).is_err());

        // Too many query parameters
        assert!(
-            MentionUri::parse("file:///path/to/file.rs#L10:20?symbol=test&another=param").is_err()
+            MentionUri::parse(uri!(
+                "file:///path/to/file.rs#L10:20?symbol=test&another=param"
+            ))
+            .is_err()
        );
    }

    #[test]
    fn test_zero_based_line_numbers() {
        // Test that 0-based line numbers are rejected (should be 1-based)
-        assert!(MentionUri::parse("file:///path/to/file.rs#L0:10").is_err());
-        assert!(MentionUri::parse("file:///path/to/file.rs#L1:0").is_err());
-        assert!(MentionUri::parse("file:///path/to/file.rs#L0:0").is_err());
+        assert!(MentionUri::parse(uri!("file:///path/to/file.rs#L0:10")).is_err());
+        assert!(MentionUri::parse(uri!("file:///path/to/file.rs#L1:0")).is_err());
+        assert!(MentionUri::parse(uri!("file:///path/to/file.rs#L0:0")).is_err());
    }
 }
--- a/crates/acp_tools/Cargo.toml
+++ b/crates/acp_tools/Cargo.toml
@@ -0,0 +1,30 @@
+[package]
+name = "acp_tools"
+version = "0.1.0"
+edition.workspace = true
+publish.workspace = true
+license = "GPL-3.0-or-later"
+
+
+[lints]
+workspace = true
+
+[lib]
+path = "src/acp_tools.rs"
+doctest = false
+
+[dependencies]
+agent-client-protocol.workspace = true
+collections.workspace = true
+gpui.workspace = true
+language.workspace= true
+markdown.workspace = true
+project.workspace = true
+serde.workspace = true
+serde_json.workspace = true
+settings.workspace = true
+theme.workspace = true
+ui.workspace = true
+util.workspace = true
+workspace-hack.workspace = true
+workspace.workspace = true
--- a/crates/acp_tools/LICENSE-GPL
+++ b/crates/acp_tools/LICENSE-GPL
@@ -0,0 +1 @@
+../../LICENSE-GPL
--- a/crates/acp_tools/src/acp_tools.rs
+++ b/crates/acp_tools/src/acp_tools.rs
@@ -0,0 +1,494 @@
+use std::{
+    cell::RefCell,
+    collections::HashSet,
+    fmt::Display,
+    rc::{Rc, Weak},
+    sync::Arc,
+};
+
+use agent_client_protocol as acp;
+use collections::HashMap;
+use gpui::{
+    App, Empty, Entity, EventEmitter, FocusHandle, Focusable, Global, ListAlignment, ListState,
+    StyleRefinement, Subscription, Task, TextStyleRefinement, Window, actions, list, prelude::*,
+};
+use language::LanguageRegistry;
+use markdown::{CodeBlockRenderer, Markdown, MarkdownElement, MarkdownStyle};
+use project::Project;
+use settings::Settings;
+use theme::ThemeSettings;
+use ui::prelude::*;
+use util::ResultExt as _;
+use workspace::{Item, Workspace};
+
+actions!(acp, [OpenDebugTools]);
+
+pub fn init(cx: &mut App) {
+    cx.observe_new(
+        |workspace: &mut Workspace, _window, _cx: &mut Context<Workspace>| {
+            workspace.register_action(|workspace, _: &OpenDebugTools, window, cx| {
+                let acp_tools =
+                    Box::new(cx.new(|cx| AcpTools::new(workspace.project().clone(), cx)));
+                workspace.add_item_to_active_pane(acp_tools, None, true, window, cx);
+            });
+        },
+    )
+    .detach();
+}
+
+struct GlobalAcpConnectionRegistry(Entity<AcpConnectionRegistry>);
+
+impl Global for GlobalAcpConnectionRegistry {}
+
+#[derive(Default)]
+pub struct AcpConnectionRegistry {
+    active_connection: RefCell<Option<ActiveConnection>>,
+}
+
+struct ActiveConnection {
+    server_name: SharedString,
+    connection: Weak<acp::ClientSideConnection>,
+}
+
+impl AcpConnectionRegistry {
+    pub fn default_global(cx: &mut App) -> Entity<Self> {
+        if cx.has_global::<GlobalAcpConnectionRegistry>() {
+            cx.global::<GlobalAcpConnectionRegistry>().0.clone()
+        } else {
+            let registry = cx.new(|_cx| AcpConnectionRegistry::default());
+            cx.set_global(GlobalAcpConnectionRegistry(registry.clone()));
+            registry
+        }
+    }
+
+    pub fn set_active_connection(
+        &self,
+        server_name: impl Into<SharedString>,
+        connection: &Rc<acp::ClientSideConnection>,
+        cx: &mut Context<Self>,
+    ) {
+        self.active_connection.replace(Some(ActiveConnection {
+            server_name: server_name.into(),
+            connection: Rc::downgrade(connection),
+        }));
+        cx.notify();
+    }
+}
+
+struct AcpTools {
+    project: Entity<Project>,
+    focus_handle: FocusHandle,
+    expanded: HashSet<usize>,
+    watched_connection: Option<WatchedConnection>,
+    connection_registry: Entity<AcpConnectionRegistry>,
+    _subscription: Subscription,
+}
+
+struct WatchedConnection {
+    server_name: SharedString,
+    messages: Vec<WatchedConnectionMessage>,
+    list_state: ListState,
+    connection: Weak<acp::ClientSideConnection>,
+    incoming_request_methods: HashMap<i32, Arc<str>>,
+    outgoing_request_methods: HashMap<i32, Arc<str>>,
+    _task: Task<()>,
+}
+
+impl AcpTools {
+    fn new(project: Entity<Project>, cx: &mut Context<Self>) -> Self {
+        let connection_registry = AcpConnectionRegistry::default_global(cx);
+
+        let subscription = cx.observe(&connection_registry, |this, _, cx| {
+            this.update_connection(cx);
+            cx.notify();
+        });
+
+        let mut this = Self {
+            project,
+            focus_handle: cx.focus_handle(),
+            expanded: HashSet::default(),
+            watched_connection: None,
+            connection_registry,
+            _subscription: subscription,
+        };
+        this.update_connection(cx);
+        this
+    }
+
+    fn update_connection(&mut self, cx: &mut Context<Self>) {
+        let active_connection = self.connection_registry.read(cx).active_connection.borrow();
+        let Some(active_connection) = active_connection.as_ref() else {
+            return;
+        };
+
+        if let Some(watched_connection) = self.watched_connection.as_ref() {
+            if Weak::ptr_eq(
+                &watched_connection.connection,
+                &active_connection.connection,
+            ) {
+                return;
+            }
+        }
+
+        if let Some(connection) = active_connection.connection.upgrade() {
+            let mut receiver = connection.subscribe();
+            let task = cx.spawn(async move |this, cx| {
+                while let Ok(message) = receiver.recv().await {
+                    this.update(cx, |this, cx| {
+                        this.push_stream_message(message, cx);
+                    })
+                    .ok();
+                }
+            });
+
+            self.watched_connection = Some(WatchedConnection {
+                server_name: active_connection.server_name.clone(),
+                messages: vec![],
+                list_state: ListState::new(0, ListAlignment::Bottom, px(2048.)),
+                connection: active_connection.connection.clone(),
+                incoming_request_methods: HashMap::default(),
+                outgoing_request_methods: HashMap::default(),
+                _task: task,
+            });
+        }
+    }
+
+    fn push_stream_message(&mut self, stream_message: acp::StreamMessage, cx: &mut Context<Self>) {
+        let Some(connection) = self.watched_connection.as_mut() else {
+            return;
+        };
+        let language_registry = self.project.read(cx).languages().clone();
+        let index = connection.messages.len();
+
+        let (request_id, method, message_type, params) = match stream_message.message {
+            acp::StreamMessageContent::Request { id, method, params } => {
+                let method_map = match stream_message.direction {
+                    acp::StreamMessageDirection::Incoming => {
+                        &mut connection.incoming_request_methods
+                    }
+                    acp::StreamMessageDirection::Outgoing => {
+                        &mut connection.outgoing_request_methods
+                    }
+                };
+
+                method_map.insert(id, method.clone());
+                (Some(id), method.into(), MessageType::Request, Ok(params))
+            }
+            acp::StreamMessageContent::Response { id, result } => {
+                let method_map = match stream_message.direction {
+                    acp::StreamMessageDirection::Incoming => {
+                        &mut connection.outgoing_request_methods
+                    }
+                    acp::StreamMessageDirection::Outgoing => {
+                        &mut connection.incoming_request_methods
+                    }
+                };
+
+                if let Some(method) = method_map.remove(&id) {
+                    (Some(id), method.into(), MessageType::Response, result)
+                } else {
+                    (
+                        Some(id),
+                        "[unrecognized response]".into(),
+                        MessageType::Response,
+                        result,
+                    )
+                }
+            }
+            acp::StreamMessageContent::Notification { method, params } => {
+                (None, method.into(), MessageType::Notification, Ok(params))
+            }
+        };
+
+        let message = WatchedConnectionMessage {
+            name: method,
+            message_type,
+            request_id,
+            direction: stream_message.direction,
+            collapsed_params_md: match params.as_ref() {
+                Ok(params) => params
+                    .as_ref()
+                    .map(|params| collapsed_params_md(params, &language_registry, cx)),
+                Err(err) => {
+                    if let Ok(err) = &serde_json::to_value(err) {
+                        Some(collapsed_params_md(&err, &language_registry, cx))
+                    } else {
+                        None
+                    }
+                }
+            },
+
+            expanded_params_md: None,
+            params,
+        };
+
+        connection.messages.push(message);
+        connection.list_state.splice(index..index, 1);
+        cx.notify();
+    }
+
+    fn render_message(
+        &mut self,
+        index: usize,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> AnyElement {
+        let Some(connection) = self.watched_connection.as_ref() else {
+            return Empty.into_any();
+        };
+
+        let Some(message) = connection.messages.get(index) else {
+            return Empty.into_any();
+        };
+
+        let base_size = TextSize::Editor.rems(cx);
+
+        let theme_settings = ThemeSettings::get_global(cx);
+        let text_style = window.text_style();
+
+        let colors = cx.theme().colors();
+        let expanded = self.expanded.contains(&index);
+
+        v_flex()
+            .w_full()
+            .px_4()
+            .py_3()
+            .border_color(colors.border)
+            .border_b_1()
+            .gap_2()
+            .items_start()
+            .font_buffer(cx)
+            .text_size(base_size)
+            .id(index)
+            .group("message")
+            .hover(|this| this.bg(colors.element_background.opacity(0.5)))
+            .on_click(cx.listener(move |this, _, _, cx| {
+                if this.expanded.contains(&index) {
+                    this.expanded.remove(&index);
+                } else {
+                    this.expanded.insert(index);
+                    let Some(connection) = &mut this.watched_connection else {
+                        return;
+                    };
+                    let Some(message) = connection.messages.get_mut(index) else {
+                        return;
+                    };
+                    message.expanded(this.project.read(cx).languages().clone(), cx);
+                    connection.list_state.scroll_to_reveal_item(index);
+                }
+                cx.notify()
+            }))
+            .child(
+                h_flex()
+                    .w_full()
+                    .gap_2()
+                    .items_center()
+                    .flex_shrink_0()
+                    .child(match message.direction {
+                        acp::StreamMessageDirection::Incoming => {
+                            ui::Icon::new(ui::IconName::ArrowDown).color(Color::Error)
+                        }
+                        acp::StreamMessageDirection::Outgoing => {
+                            ui::Icon::new(ui::IconName::ArrowUp).color(Color::Success)
+                        }
+                    })
+                    .child(
+                        Label::new(message.name.clone())
+                            .buffer_font(cx)
+                            .color(Color::Muted),
+                    )
+                    .child(div().flex_1())
+                    .child(
+                        div()
+                            .child(ui::Chip::new(message.message_type.to_string()))
+                            .visible_on_hover("message"),
+                    )
+                    .children(
+                        message
+                            .request_id
+                            .map(|req_id| div().child(ui::Chip::new(req_id.to_string()))),
+                    ),
+            )
+            // I'm aware using markdown is a hack. Trying to get something working for the demo.
+            // Will clean up soon!
+            .when_some(
+                if expanded {
+                    message.expanded_params_md.clone()
+                } else {
+                    message.collapsed_params_md.clone()
+                },
+                |this, params| {
+                    this.child(
+                        div().pl_6().w_full().child(
+                            MarkdownElement::new(
+                                params,
+                                MarkdownStyle {
+                                    base_text_style: text_style,
+                                    selection_background_color: colors.element_selection_background,
+                                    syntax: cx.theme().syntax().clone(),
+                                    code_block_overflow_x_scroll: true,
+                                    code_block: StyleRefinement {
+                                        text: Some(TextStyleRefinement {
+                                            font_family: Some(
+                                                theme_settings.buffer_font.family.clone(),
+                                            ),
+                                            font_size: Some((base_size * 0.8).into()),
+                                            ..Default::default()
+                                        }),
+                                        ..Default::default()
+                                    },
+                                    ..Default::default()
+                                },
+                            )
+                            .code_block_renderer(
+                                CodeBlockRenderer::Default {
+                                    copy_button: false,
+                                    copy_button_on_hover: expanded,
+                                    border: false,
+                                },
+                            ),
+                        ),
+                    )
+                },
+            )
+            .into_any()
+    }
+}
+
+struct WatchedConnectionMessage {
+    name: SharedString,
+    request_id: Option<i32>,
+    direction: acp::StreamMessageDirection,
+    message_type: MessageType,
+    params: Result<Option<serde_json::Value>, acp::Error>,
+    collapsed_params_md: Option<Entity<Markdown>>,
+    expanded_params_md: Option<Entity<Markdown>>,
+}
+
+impl WatchedConnectionMessage {
+    fn expanded(&mut self, language_registry: Arc<LanguageRegistry>, cx: &mut App) {
+        let params_md = match &self.params {
+            Ok(Some(params)) => Some(expanded_params_md(params, &language_registry, cx)),
+            Err(err) => {
+                if let Some(err) = &serde_json::to_value(err).log_err() {
+                    Some(expanded_params_md(&err, &language_registry, cx))
+                } else {
+                    None
+                }
+            }
+            _ => None,
+        };
+        self.expanded_params_md = params_md;
+    }
+}
+
+fn collapsed_params_md(
+    params: &serde_json::Value,
+    language_registry: &Arc<LanguageRegistry>,
+    cx: &mut App,
+) -> Entity<Markdown> {
+    let params_json = serde_json::to_string(params).unwrap_or_default();
+    let mut spaced_out_json = String::with_capacity(params_json.len() + params_json.len() / 4);
+
+    for ch in params_json.chars() {
+        match ch {
+            '{' => spaced_out_json.push_str("{ "),
+            '}' => spaced_out_json.push_str(" }"),
+            ':' => spaced_out_json.push_str(": "),
+            ',' => spaced_out_json.push_str(", "),
+            c => spaced_out_json.push(c),
+        }
+    }
+
+    let params_md = format!("```json\n{}\n```", spaced_out_json);
+    cx.new(|cx| Markdown::new(params_md.into(), Some(language_registry.clone()), None, cx))
+}
+
+fn expanded_params_md(
+    params: &serde_json::Value,
+    language_registry: &Arc<LanguageRegistry>,
+    cx: &mut App,
+) -> Entity<Markdown> {
+    let params_json = serde_json::to_string_pretty(params).unwrap_or_default();
+    let params_md = format!("```json\n{}\n```", params_json);
+    cx.new(|cx| Markdown::new(params_md.into(), Some(language_registry.clone()), None, cx))
+}
+
+enum MessageType {
+    Request,
+    Response,
+    Notification,
+}
+
+impl Display for MessageType {
+    fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
+        match self {
+            MessageType::Request => write!(f, "Request"),
+            MessageType::Response => write!(f, "Response"),
+            MessageType::Notification => write!(f, "Notification"),
+        }
+    }
+}
+
+enum AcpToolsEvent {}
+
+impl EventEmitter<AcpToolsEvent> for AcpTools {}
+
+impl Item for AcpTools {
+    type Event = AcpToolsEvent;
+
+    fn tab_content_text(&self, _detail: usize, _cx: &App) -> ui::SharedString {
+        format!(
+            "ACP: {}",
+            self.watched_connection
+                .as_ref()
+                .map_or("Disconnected", |connection| &connection.server_name)
+        )
+        .into()
+    }
+
+    fn tab_icon(&self, _window: &Window, _cx: &App) -> Option<Icon> {
+        Some(ui::Icon::new(IconName::Thread))
+    }
+}
+
+impl Focusable for AcpTools {
+    fn focus_handle(&self, _cx: &App) -> FocusHandle {
+        self.focus_handle.clone()
+    }
+}
+
+impl Render for AcpTools {
+    fn render(&mut self, _window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
+        v_flex()
+            .track_focus(&self.focus_handle)
+            .size_full()
+            .bg(cx.theme().colors().editor_background)
+            .child(match self.watched_connection.as_ref() {
+                Some(connection) => {
+                    if connection.messages.is_empty() {
+                        h_flex()
+                            .size_full()
+                            .justify_center()
+                            .items_center()
+                            .child("No messages recorded yet")
+                            .into_any()
+                    } else {
+                        list(
+                            connection.list_state.clone(),
+                            cx.processor(Self::render_message),
+                        )
+                        .with_sizing_behavior(gpui::ListSizingBehavior::Auto)
+                        .flex_grow()
+                        .into_any()
+                    }
+                }
+                None => h_flex()
+                    .size_full()
+                    .justify_center()
+                    .items_center()
+                    .child("No active connection")
+                    .into_any(),
+            })
+    }
+}
--- a/crates/action_log/src/action_log.rs
+++ b/crates/action_log/src/action_log.rs
@@ -116,7 +116,7 @@ impl ActionLog {
            } else if buffer
                .read(cx)
                .file()
-                .map_or(false, |file| file.disk_state().exists())
+                .is_some_and(|file| file.disk_state().exists())
            {
                TrackedBufferStatus::Created {
                    existing_file_content: Some(buffer.read(cx).as_rope().clone()),
@@ -161,7 +161,7 @@ impl ActionLog {
                    diff_base,
                    last_seen_base,
                    unreviewed_edits,
-                    snapshot: text_snapshot.clone(),
+                    snapshot: text_snapshot,
                    status,
                    version: buffer.read(cx).version(),
                    diff,
@@ -190,7 +190,7 @@ impl ActionLog {
        cx: &mut Context<Self>,
    ) {
        match event {
-            BufferEvent::Edited { .. } => self.handle_buffer_edited(buffer, cx),
+            BufferEvent::Edited => self.handle_buffer_edited(buffer, cx),
            BufferEvent::FileHandleChanged => {
                self.handle_buffer_file_changed(buffer, cx);
            }
@@ -215,7 +215,7 @@ impl ActionLog {
                if buffer
                    .read(cx)
                    .file()
-                    .map_or(false, |file| file.disk_state() == DiskState::Deleted)
+                    .is_some_and(|file| file.disk_state() == DiskState::Deleted)
                {
                    // If the buffer had been edited by a tool, but it got
                    // deleted externally, we want to stop tracking it.
@@ -227,7 +227,7 @@ impl ActionLog {
                if buffer
                    .read(cx)
                    .file()
-                    .map_or(false, |file| file.disk_state() != DiskState::Deleted)
+                    .is_some_and(|file| file.disk_state() != DiskState::Deleted)
                {
                    // If the buffer had been deleted by a tool, but it got
                    // resurrected externally, we want to clear the edits we
@@ -264,15 +264,14 @@ impl ActionLog {
            if let Some((git_diff, (buffer_repo, _))) = git_diff.as_ref().zip(buffer_repo) {
                cx.update(|cx| {
                    let mut old_head = buffer_repo.read(cx).head_commit.clone();
-                    Some(cx.subscribe(git_diff, move |_, event, cx| match event {
-                        buffer_diff::BufferDiffEvent::DiffChanged { .. } => {
+                    Some(cx.subscribe(git_diff, move |_, event, cx| {
+                        if let buffer_diff::BufferDiffEvent::DiffChanged { .. } = event {
                            let new_head = buffer_repo.read(cx).head_commit.clone();
                            if new_head != old_head {
                                old_head = new_head;
                                git_diff_updates_tx.send(()).ok();
                            }
                        }
-                        _ => {}
                    }))
                })?
            } else {
@@ -462,7 +461,7 @@ impl ActionLog {
            anyhow::Ok((
                tracked_buffer.diff.clone(),
                buffer.read(cx).language().cloned(),
-                buffer.read(cx).language_registry().clone(),
+                buffer.read(cx).language_registry(),
            ))
        })??;
        let diff_snapshot = BufferDiff::update_diff(
@@ -530,12 +529,12 @@ impl ActionLog {

    /// Mark a buffer as created by agent, so we can refresh it in the context
    pub fn buffer_created(&mut self, buffer: Entity<Buffer>, cx: &mut Context<Self>) {
-        self.track_buffer_internal(buffer.clone(), true, cx);
+        self.track_buffer_internal(buffer, true, cx);
    }

    /// Mark a buffer as edited by agent, so we can refresh it in the context
    pub fn buffer_edited(&mut self, buffer: Entity<Buffer>, cx: &mut Context<Self>) {
-        let tracked_buffer = self.track_buffer_internal(buffer.clone(), false, cx);
+        let tracked_buffer = self.track_buffer_internal(buffer, false, cx);
        if let TrackedBufferStatus::Deleted = tracked_buffer.status {
            tracked_buffer.status = TrackedBufferStatus::Modified;
        }
@@ -614,10 +613,10 @@ impl ActionLog {
                        false
                    }
                });
-                if tracked_buffer.unreviewed_edits.is_empty() {
-                    if let TrackedBufferStatus::Created { .. } = &mut tracked_buffer.status {
-                        tracked_buffer.status = TrackedBufferStatus::Modified;
-                    }
+                if tracked_buffer.unreviewed_edits.is_empty()
+                    && let TrackedBufferStatus::Created { .. } = &mut tracked_buffer.status
+                {
+                    tracked_buffer.status = TrackedBufferStatus::Modified;
                }
                tracked_buffer.schedule_diff_update(ChangeAuthor::User, cx);
            }
@@ -811,7 +810,7 @@ impl ActionLog {
                tracked.version != buffer.version
                    && buffer
                        .file()
-                        .map_or(false, |file| file.disk_state() != DiskState::Deleted)
+                        .is_some_and(|file| file.disk_state() != DiskState::Deleted)
            })
            .map(|(buffer, _)| buffer)
    }
@@ -847,7 +846,7 @@ fn apply_non_conflicting_edits(
                conflict = true;
                if new_edits
                    .peek()
-                    .map_or(false, |next_edit| next_edit.old.overlaps(&old_edit.new))
+                    .is_some_and(|next_edit| next_edit.old.overlaps(&old_edit.new))
                {
                    new_edit = new_edits.next().unwrap();
                } else {
@@ -2426,7 +2425,7 @@ mod tests {
        assert_eq!(
            unreviewed_hunks(&action_log, cx),
            vec![(
-                buffer.clone(),
+                buffer,
                vec![
                    HunkStatus {
                        range: Point::new(6, 0)..Point::new(7, 0),
--- a/crates/activity_indicator/src/activity_indicator.rs
+++ b/crates/activity_indicator/src/activity_indicator.rs
@@ -103,26 +103,21 @@ impl ActivityIndicator {
            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();
-                        }
+                |activity_indicator, _, event, window, cx| {
+                    if let workspace::Event::ClearActivityIndicator = event
+                        && activity_indicator.statuses.pop().is_some()
+                    {
+                        activity_indicator.dismiss_error_message(&DismissErrorMessage, window, cx);
+                        cx.notify();
                    }
-                    _ => {}
                },
            )
            .detach();

            cx.subscribe(
                &project.read(cx).lsp_store(),
-                |activity_indicator, _, event, cx| match event {
-                    LspStoreEvent::LanguageServerUpdate { name, message, .. } => {
+                |activity_indicator, _, event, cx| {
+                    if let LspStoreEvent::LanguageServerUpdate { name, message, .. } = event {
                        if let proto::update_language_server::Variant::StatusUpdate(status_update) =
                            message
                        {
@@ -191,7 +186,6 @@ impl ActivityIndicator {
                        }
                        cx.notify()
                    }
-                    _ => {}
                },
            )
            .detach();
@@ -206,9 +200,10 @@ impl ActivityIndicator {

            cx.subscribe(
                &project.read(cx).git_store().clone(),
-                |_, _, event: &GitStoreEvent, cx| match event {
-                    project::git_store::GitStoreEvent::JobsUpdated => cx.notify(),
-                    _ => {}
+                |_, _, event: &GitStoreEvent, cx| {
+                    if let project::git_store::GitStoreEvent::JobsUpdated = event {
+                        cx.notify()
+                    }
                },
            )
            .detach();
@@ -458,26 +453,24 @@ impl ActivityIndicator {
            .map(|r| r.read(cx))
            .and_then(Repository::current_job);
        // Show any long-running git command
-        if let Some(job_info) = current_job {
-            if Instant::now() - job_info.start >= GIT_OPERATION_DELAY {
-                return Some(Content {
-                    icon: Some(
-                        Icon::new(IconName::ArrowCircle)
-                            .size(IconSize::Small)
-                            .with_animation(
-                                "arrow-circle",
-                                Animation::new(Duration::from_secs(2)).repeat(),
-                                |icon, delta| {
-                                    icon.transform(Transformation::rotate(percentage(delta)))
-                                },
-                            )
-                            .into_any_element(),
-                    ),
-                    message: job_info.message.into(),
-                    on_click: None,
-                    tooltip_message: None,
-                });
-            }
+        if let Some(job_info) = current_job
+            && Instant::now() - job_info.start >= GIT_OPERATION_DELAY
+        {
+            return Some(Content {
+                icon: Some(
+                    Icon::new(IconName::ArrowCircle)
+                        .size(IconSize::Small)
+                        .with_animation(
+                            "arrow-circle",
+                            Animation::new(Duration::from_secs(2)).repeat(),
+                            |icon, delta| icon.transform(Transformation::rotate(percentage(delta))),
+                        )
+                        .into_any_element(),
+                ),
+                message: job_info.message.into(),
+                on_click: None,
+                tooltip_message: None,
+            });
        }

        // Show any language server installation info.
@@ -740,21 +733,20 @@ impl ActivityIndicator {

        if let Some(extension_store) =
            ExtensionStore::try_global(cx).map(|extension_store| extension_store.read(cx))
+            && let Some(extension_id) = extension_store.outstanding_operations().keys().next()
        {
-            if let Some(extension_id) = extension_store.outstanding_operations().keys().next() {
-                return Some(Content {
-                    icon: Some(
-                        Icon::new(IconName::Download)
-                            .size(IconSize::Small)
-                            .into_any_element(),
-                    ),
-                    message: format!("Updating {extension_id} extension…"),
-                    on_click: Some(Arc::new(|this, window, cx| {
-                        this.dismiss_error_message(&DismissErrorMessage, window, cx)
-                    })),
-                    tooltip_message: None,
-                });
-            }
+            return Some(Content {
+                icon: Some(
+                    Icon::new(IconName::Download)
+                        .size(IconSize::Small)
+                        .into_any_element(),
+                ),
+                message: format!("Updating {extension_id} extension…"),
+                on_click: Some(Arc::new(|this, window, cx| {
+                    this.dismiss_error_message(&DismissErrorMessage, window, cx)
+                })),
+                tooltip_message: None,
+            });
        }

        None
--- a/crates/agent/Cargo.toml
+++ b/crates/agent/Cargo.toml
@@ -31,7 +31,6 @@ collections.workspace = true
 component.workspace = true
 context_server.workspace = true
 convert_case.workspace = true
-feature_flags.workspace = true
 fs.workspace = true
 futures.workspace = true
 git.workspace = true
--- a/crates/agent/src/agent_profile.rs
+++ b/crates/agent/src/agent_profile.rs
@@ -90,7 +90,7 @@ impl AgentProfile {
            return false;
        };

-        return Self::is_enabled(settings, source, tool_name);
+        Self::is_enabled(settings, source, tool_name)
    }

    fn is_enabled(settings: &AgentProfileSettings, source: ToolSource, name: String) -> bool {
@@ -132,7 +132,7 @@ mod tests {
        });
        let tool_set = default_tool_set(cx);

-        let profile = AgentProfile::new(id.clone(), tool_set);
+        let profile = AgentProfile::new(id, tool_set);

        let mut enabled_tools = cx
            .read(|cx| profile.enabled_tools(cx))
@@ -169,7 +169,7 @@ mod tests {
        });
        let tool_set = default_tool_set(cx);

-        let profile = AgentProfile::new(id.clone(), tool_set);
+        let profile = AgentProfile::new(id, tool_set);

        let mut enabled_tools = cx
            .read(|cx| profile.enabled_tools(cx))
@@ -202,7 +202,7 @@ mod tests {
        });
        let tool_set = default_tool_set(cx);

-        let profile = AgentProfile::new(id.clone(), tool_set);
+        let profile = AgentProfile::new(id, tool_set);

        let mut enabled_tools = cx
            .read(|cx| profile.enabled_tools(cx))
--- a/crates/agent/src/context.rs
+++ b/crates/agent/src/context.rs
@@ -201,24 +201,24 @@ impl FileContextHandle {
                        parse_status.changed().await.log_err();
                    }

-                    if let Ok(snapshot) = buffer.read_with(cx, |buffer, _| buffer.snapshot()) {
-                        if let Some(outline) = snapshot.outline(None) {
-                            let items = outline
-                                .items
-                                .into_iter()
-                                .map(|item| item.to_point(&snapshot));
+                    if let Ok(snapshot) = buffer.read_with(cx, |buffer, _| buffer.snapshot())
+                        && let Some(outline) = snapshot.outline(None)
+                    {
+                        let items = outline
+                            .items
+                            .into_iter()
+                            .map(|item| item.to_point(&snapshot));

-                            if let Ok(outline_text) =
-                                outline::render_outline(items, None, 0, usize::MAX).await
-                            {
-                                let context = AgentContext::File(FileContext {
-                                    handle: self,
-                                    full_path,
-                                    text: outline_text.into(),
-                                    is_outline: true,
-                                });
-                                return Some((context, vec![buffer]));
-                            }
+                        if let Ok(outline_text) =
+                            outline::render_outline(items, None, 0, usize::MAX).await
+                        {
+                            let context = AgentContext::File(FileContext {
+                                handle: self,
+                                full_path,
+                                text: outline_text.into(),
+                                is_outline: true,
+                            });
+                            return Some((context, vec![buffer]));
                        }
                    }
                }
@@ -362,7 +362,7 @@ impl Display for DirectoryContext {
        let mut is_first = true;
        for descendant in &self.descendants {
            if !is_first {
-                write!(f, "\n")?;
+                writeln!(f)?;
            } else {
                is_first = false;
            }
@@ -650,7 +650,7 @@ impl TextThreadContextHandle {
 impl Display for TextThreadContext {
    fn fmt(&self, f: &mut Formatter<'_>) -> fmt::Result {
        // TODO: escape title?
-        write!(f, "<text_thread title=\"{}\">\n", self.title)?;
+        writeln!(f, "<text_thread title=\"{}\">", self.title)?;
        write!(f, "{}", self.text.trim())?;
        write!(f, "\n</text_thread>")
    }
@@ -716,7 +716,7 @@ impl RulesContextHandle {
 impl Display for RulesContext {
    fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
        if let Some(title) = &self.title {
-            write!(f, "Rules title: {}\n", title)?;
+            writeln!(f, "Rules title: {}", title)?;
        }
        let code_block = MarkdownCodeBlock {
            tag: "",
--- a/crates/agent/src/context_server_tool.rs
+++ b/crates/agent/src/context_server_tool.rs
@@ -86,15 +86,13 @@ impl Tool for ContextServerTool {
    ) -> ToolResult {
        if let Some(server) = self.store.read(cx).get_running_server(&self.server_id) {
            let tool_name = self.tool.name.clone();
-            let server_clone = server.clone();
-            let input_clone = input.clone();

            cx.spawn(async move |_cx| {
-                let Some(protocol) = server_clone.client() else {
+                let Some(protocol) = server.client() else {
                    bail!("Context server not initialized");
                };

-                let arguments = if let serde_json::Value::Object(map) = input_clone {
+                let arguments = if let serde_json::Value::Object(map) = input {
                    Some(map.into_iter().collect())
                } else {
                    None
--- a/crates/agent/src/context_store.rs
+++ b/crates/agent/src/context_store.rs
@@ -338,11 +338,9 @@ impl ContextStore {
            image_task,
            context_id: self.next_context_id.post_inc(),
        });
-        if self.has_context(&context) {
-            if remove_if_exists {
-                self.remove_context(&context, cx);
-                return None;
-            }
+        if self.has_context(&context) && remove_if_exists {
+            self.remove_context(&context, cx);
+            return None;
        }

        self.insert_context(context.clone(), cx);
--- a/crates/agent/src/history_store.rs
+++ b/crates/agent/src/history_store.rs
@@ -254,10 +254,9 @@ impl HistoryStore {
    }

    pub fn remove_recently_opened_thread(&mut self, id: ThreadId, cx: &mut Context<Self>) {
-        self.recently_opened_entries.retain(|entry| match entry {
-            HistoryEntryId::Thread(thread_id) if thread_id == &id => false,
-            _ => true,
-        });
+        self.recently_opened_entries.retain(
+            |entry| !matches!(entry, HistoryEntryId::Thread(thread_id) if thread_id == &id),
+        );
        self.save_recently_opened_entries(cx);
    }

--- a/crates/agent/src/thread.rs
+++ b/crates/agent/src/thread.rs
@@ -9,14 +9,16 @@ use crate::{
    tool_use::{PendingToolUse, ToolUse, ToolUseMetadata, ToolUseState},
 };
 use action_log::ActionLog;
-use agent_settings::{AgentProfileId, AgentSettings, CompletionMode, SUMMARIZE_THREAD_PROMPT};
+use agent_settings::{
+    AgentProfileId, AgentSettings, CompletionMode, SUMMARIZE_THREAD_DETAILED_PROMPT,
+    SUMMARIZE_THREAD_PROMPT,
+};
 use anyhow::{Result, anyhow};
 use assistant_tool::{AnyToolCard, Tool, ToolWorkingSet};
 use chrono::{DateTime, Utc};
 use client::{ModelRequestUsage, RequestUsage};
 use cloud_llm_client::{CompletionIntent, CompletionRequestStatus, Plan, UsageLimit};
 use collections::HashMap;
-use feature_flags::{self, FeatureFlagAppExt};
 use futures::{FutureExt, StreamExt as _, future::Shared};
 use git::repository::DiffType;
 use gpui::{
@@ -108,7 +110,7 @@ impl std::fmt::Display for PromptId {
 }

 #[derive(Debug, PartialEq, Eq, PartialOrd, Ord, Hash, Clone, Copy, Serialize, Deserialize)]
-pub struct MessageId(pub(crate) usize);
+pub struct MessageId(pub usize);

 impl MessageId {
    fn post_inc(&mut self) -> Self {
@@ -179,7 +181,7 @@ impl Message {
        }
    }

-    pub fn to_string(&self) -> String {
+    pub fn to_message_content(&self) -> String {
        let mut result = String::new();

        if !self.loaded_context.text.is_empty() {
@@ -385,10 +387,8 @@ pub struct Thread {
    cumulative_token_usage: TokenUsage,
    exceeded_window_error: Option<ExceededWindowError>,
    tool_use_limit_reached: bool,
-    feedback: Option<ThreadFeedback>,
    retry_state: Option<RetryState>,
    message_feedback: HashMap<MessageId, ThreadFeedback>,
-    last_auto_capture_at: Option<Instant>,
    last_received_chunk_at: Option<Instant>,
    request_callback: Option<
        Box<dyn FnMut(&LanguageModelRequest, &[Result<LanguageModelCompletionEvent, String>])>,
@@ -486,15 +486,13 @@ impl Thread {
            cumulative_token_usage: TokenUsage::default(),
            exceeded_window_error: None,
            tool_use_limit_reached: false,
-            feedback: None,
            retry_state: None,
            message_feedback: HashMap::default(),
-            last_auto_capture_at: None,
            last_error_context: None,
            last_received_chunk_at: None,
            request_callback: None,
            remaining_turns: u32::MAX,
-            configured_model: configured_model.clone(),
+            configured_model,
            profile: AgentProfile::new(profile_id, tools),
        }
    }
@@ -532,7 +530,7 @@ impl Thread {
                .and_then(|model| {
                    let model = SelectedModel {
                        provider: model.provider.clone().into(),
-                        model: model.model.clone().into(),
+                        model: model.model.into(),
                    };
                    registry.select_model(&model, cx)
                })
@@ -612,9 +610,7 @@ impl Thread {
            cumulative_token_usage: serialized.cumulative_token_usage,
            exceeded_window_error: None,
            tool_use_limit_reached: serialized.tool_use_limit_reached,
-            feedback: None,
            message_feedback: HashMap::default(),
-            last_auto_capture_at: None,
            last_error_context: None,
            last_received_chunk_at: None,
            request_callback: None,
@@ -668,7 +664,7 @@ impl Thread {
    }

    pub fn get_or_init_configured_model(&mut self, cx: &App) -> Option<ConfiguredModel> {
-        if self.configured_model.is_none() {
+        if self.configured_model.is_none() || self.messages.is_empty() {
            self.configured_model = LanguageModelRegistry::read_global(cx).default_model();
        }
        self.configured_model.clone()
@@ -1033,8 +1029,6 @@ impl Thread {
            });
        }

-        self.auto_capture_telemetry(cx);
-
        message_id
    }

@@ -1649,17 +1643,15 @@ impl Thread {
        };

        self.tool_use
-            .request_tool_use(tool_message_id, tool_use, tool_use_metadata.clone(), cx);
+            .request_tool_use(tool_message_id, tool_use, tool_use_metadata, cx);

-        let pending_tool_use = self.tool_use.insert_tool_output(
-            tool_use_id.clone(),
+        self.tool_use.insert_tool_output(
+            tool_use_id,
            tool_name,
            tool_output,
            self.configured_model.as_ref(),
            self.completion_mode,
-        );
-
-        pending_tool_use
+        )
    }

    pub fn stream_completion(
@@ -1906,7 +1898,6 @@ impl Thread {
                        cx.emit(ThreadEvent::StreamedCompletion);
                        cx.notify();

-                        thread.auto_capture_telemetry(cx);
                        Ok(())
                    })??;

@@ -1974,11 +1965,9 @@ impl Thread {

                                                if let Some(prev_message) =
                                                    thread.messages.get(ix - 1)
-                                                {
-                                                    if prev_message.role == Role::Assistant {
+                                                    && prev_message.role == Role::Assistant {
                                                        break;
                                                    }
-                                                }
                                            }
                                        }

@@ -2081,8 +2070,6 @@ impl Thread {
                        request_callback(request, response_events);
                    }

-                    thread.auto_capture_telemetry(cx);
-
                    if let Ok(initial_usage) = initial_token_usage {
                        let usage = thread.cumulative_token_usage - initial_usage;

@@ -2110,7 +2097,7 @@ impl Thread {
    }

    pub fn summarize(&mut self, cx: &mut Context<Self>) {
-        let Some(model) = LanguageModelRegistry::read_global(cx).thread_summary_model() else {
+        let Some(model) = LanguageModelRegistry::read_global(cx).thread_summary_model(cx) else {
            println!("No thread summary model");
            return;
        };
@@ -2429,7 +2416,7 @@ impl Thread {
        }

        let Some(ConfiguredModel { model, provider }) =
-            LanguageModelRegistry::read_global(cx).thread_summary_model()
+            LanguageModelRegistry::read_global(cx).thread_summary_model(cx)
        else {
            return;
        };
@@ -2438,12 +2425,10 @@ impl Thread {
            return;
        }

-        let added_user_message = include_str!("./prompts/summarize_thread_detailed_prompt.txt");
-
        let request = self.to_summarize_request(
            &model,
            CompletionIntent::ThreadContextSummarization,
-            added_user_message.into(),
+            SUMMARIZE_THREAD_DETAILED_PROMPT.into(),
            cx,
        );

@@ -2485,13 +2470,13 @@ impl Thread {
                .ok()?;

            // Save thread so its summary can be reused later
-            if let Some(thread) = thread.upgrade() {
-                if let Ok(Ok(save_task)) = cx.update(|cx| {
+            if let Some(thread) = thread.upgrade()
+                && let Ok(Ok(save_task)) = cx.update(|cx| {
                    thread_store
                        .update(cx, |thread_store, cx| thread_store.save_thread(&thread, cx))
-                }) {
-                    save_task.await.log_err();
-                }
+                })
+            {
+                save_task.await.log_err();
            }

            Some(())
@@ -2536,7 +2521,6 @@ impl Thread {
        model: Arc<dyn LanguageModel>,
        cx: &mut Context<Self>,
    ) -> Vec<PendingToolUse> {
-        self.auto_capture_telemetry(cx);
        let request =
            Arc::new(self.to_completion_request(model.clone(), CompletionIntent::ToolResults, cx));
        let pending_tool_uses = self
@@ -2740,13 +2724,11 @@ impl Thread {
        window: Option<AnyWindowHandle>,
        cx: &mut Context<Self>,
    ) {
-        if self.all_tools_finished() {
-            if let Some(ConfiguredModel { model, .. }) = self.configured_model.as_ref() {
-                if !canceled {
-                    self.send_to_model(model.clone(), CompletionIntent::ToolResults, window, cx);
-                }
-                self.auto_capture_telemetry(cx);
-            }
+        if self.all_tools_finished()
+            && let Some(ConfiguredModel { model, .. }) = self.configured_model.as_ref()
+            && !canceled
+        {
+            self.send_to_model(model.clone(), CompletionIntent::ToolResults, window, cx);
        }

        cx.emit(ThreadEvent::ToolFinished {
@@ -2802,10 +2784,6 @@ impl Thread {
        cx.emit(ThreadEvent::CancelEditing);
    }

-    pub fn feedback(&self) -> Option<ThreadFeedback> {
-        self.feedback
-    }
-
    pub fn message_feedback(&self, message_id: MessageId) -> Option<ThreadFeedback> {
        self.message_feedback.get(&message_id).copied()
    }
@@ -2838,7 +2816,7 @@ impl Thread {

        let message_content = self
            .message(message_id)
-            .map(|msg| msg.to_string())
+            .map(|msg| msg.to_message_content())
            .unwrap_or_default();

        cx.background_spawn(async move {
@@ -2867,52 +2845,6 @@ impl Thread {
        })
    }

-    pub fn report_feedback(
-        &mut self,
-        feedback: ThreadFeedback,
-        cx: &mut Context<Self>,
-    ) -> Task<Result<()>> {
-        let last_assistant_message_id = self
-            .messages
-            .iter()
-            .rev()
-            .find(|msg| msg.role == Role::Assistant)
-            .map(|msg| msg.id);
-
-        if let Some(message_id) = last_assistant_message_id {
-            self.report_message_feedback(message_id, feedback, cx)
-        } else {
-            let final_project_snapshot = Self::project_snapshot(self.project.clone(), cx);
-            let serialized_thread = self.serialize(cx);
-            let thread_id = self.id().clone();
-            let client = self.project.read(cx).client();
-            self.feedback = Some(feedback);
-            cx.notify();
-
-            cx.background_spawn(async move {
-                let final_project_snapshot = final_project_snapshot.await;
-                let serialized_thread = serialized_thread.await?;
-                let thread_data = serde_json::to_value(serialized_thread)
-                    .unwrap_or_else(|_| serde_json::Value::Null);
-
-                let rating = match feedback {
-                    ThreadFeedback::Positive => "positive",
-                    ThreadFeedback::Negative => "negative",
-                };
-                telemetry::event!(
-                    "Assistant Thread Rated",
-                    rating,
-                    thread_id,
-                    thread_data,
-                    final_project_snapshot
-                );
-                client.telemetry().flush_events().await;
-
-                Ok(())
-            })
-        }
-    }
-
    /// Create a snapshot of the current project state including git information and unsaved buffers.
    fn project_snapshot(
        project: Entity<Project>,
@@ -2933,11 +2865,11 @@ impl Thread {
                let buffer_store = project.read(app_cx).buffer_store();
                for buffer_handle in buffer_store.read(app_cx).buffers() {
                    let buffer = buffer_handle.read(app_cx);
-                    if buffer.is_dirty() {
-                        if let Some(file) = buffer.file() {
-                            let path = file.path().to_string_lossy().to_string();
-                            unsaved_buffers.push(path);
-                        }
+                    if buffer.is_dirty()
+                        && let Some(file) = buffer.file()
+                    {
+                        let path = file.path().to_string_lossy().to_string();
+                        unsaved_buffers.push(path);
                    }
                }
            })
@@ -3147,50 +3079,6 @@ impl Thread {
        &self.project
    }

-    pub fn auto_capture_telemetry(&mut self, cx: &mut Context<Self>) {
-        if !cx.has_flag::<feature_flags::ThreadAutoCaptureFeatureFlag>() {
-            return;
-        }
-
-        let now = Instant::now();
-        if let Some(last) = self.last_auto_capture_at {
-            if now.duration_since(last).as_secs() < 10 {
-                return;
-            }
-        }
-
-        self.last_auto_capture_at = Some(now);
-
-        let thread_id = self.id().clone();
-        let github_login = self
-            .project
-            .read(cx)
-            .user_store()
-            .read(cx)
-            .current_user()
-            .map(|user| user.github_login.clone());
-        let client = self.project.read(cx).client();
-        let serialize_task = self.serialize(cx);
-
-        cx.background_executor()
-            .spawn(async move {
-                if let Ok(serialized_thread) = serialize_task.await {
-                    if let Ok(thread_data) = serde_json::to_value(serialized_thread) {
-                        telemetry::event!(
-                            "Agent Thread Auto-Captured",
-                            thread_id = thread_id.to_string(),
-                            thread_data = thread_data,
-                            auto_capture_reason = "tracked_user",
-                            github_login = github_login
-                        );
-
-                        client.telemetry().flush_events().await;
-                    }
-                }
-            })
-            .detach();
-    }
-
    pub fn cumulative_token_usage(&self) -> TokenUsage {
        self.cumulative_token_usage
    }
@@ -3233,13 +3121,13 @@ impl Thread {
            .model
            .max_token_count_for_mode(self.completion_mode().into());

-        if let Some(exceeded_error) = &self.exceeded_window_error {
-            if model.model.id() == exceeded_error.model_id {
-                return Some(TotalTokenUsage {
-                    total: exceeded_error.token_count,
-                    max,
-                });
-            }
+        if let Some(exceeded_error) = &self.exceeded_window_error
+            && model.model.id() == exceeded_error.model_id
+        {
+            return Some(TotalTokenUsage {
+                total: exceeded_error.token_count,
+                max,
+            });
        }

        let total = self
@@ -3300,7 +3188,7 @@ impl Thread {
            self.configured_model.as_ref(),
            self.completion_mode,
        );
-        self.tool_finished(tool_use_id.clone(), None, true, window, cx);
+        self.tool_finished(tool_use_id, None, true, window, cx);
    }
 }

@@ -3932,7 +3820,7 @@ fn main() {{
                AgentSettings {
                    model_parameters: vec![LanguageModelParameters {
                        provider: Some(model.provider_id().0.to_string().into()),
-                        model: Some(model.id().0.clone()),
+                        model: Some(model.id().0),
                        temperature: Some(0.66),
                    }],
                    ..AgentSettings::get_global(cx).clone()
@@ -3952,7 +3840,7 @@ fn main() {{
                AgentSettings {
                    model_parameters: vec![LanguageModelParameters {
                        provider: None,
-                        model: Some(model.id().0.clone()),
+                        model: Some(model.id().0),
                        temperature: Some(0.66),
                    }],
                    ..AgentSettings::get_global(cx).clone()
@@ -3992,7 +3880,7 @@ fn main() {{
                AgentSettings {
                    model_parameters: vec![LanguageModelParameters {
                        provider: Some("anthropic".into()),
-                        model: Some(model.id().0.clone()),
+                        model: Some(model.id().0),
                        temperature: Some(0.66),
                    }],
                    ..AgentSettings::get_global(cx).clone()
@@ -5522,13 +5410,10 @@ fn main() {{
                    }),
                    cx,
                );
-                registry.set_thread_summary_model(
-                    Some(ConfiguredModel {
-                        provider,
-                        model: model.clone(),
-                    }),
-                    cx,
-                );
+                registry.set_thread_summary_model(Some(ConfiguredModel {
+                    provider,
+                    model: model.clone(),
+                }));
            })
        });

--- a/crates/agent/src/thread_store.rs
+++ b/crates/agent/src/thread_store.rs
@@ -42,7 +42,7 @@ use std::{
 use util::ResultExt as _;

 pub static ZED_STATELESS: std::sync::LazyLock<bool> =
-    std::sync::LazyLock::new(|| std::env::var("ZED_STATELESS").map_or(false, |v| !v.is_empty()));
+    std::sync::LazyLock::new(|| std::env::var("ZED_STATELESS").is_ok_and(|v| !v.is_empty()));

 #[derive(Debug, Clone, PartialEq, Eq, Serialize, Deserialize)]
 pub enum DataType {
@@ -74,7 +74,7 @@ impl Column for DataType {
    }
 }

-const RULES_FILE_NAMES: [&'static str; 9] = [
+const RULES_FILE_NAMES: [&str; 9] = [
    ".rules",
    ".cursorrules",
    ".windsurfrules",
@@ -581,33 +581,32 @@ impl ThreadStore {
                return;
            };

-            if protocol.capable(context_server::protocol::ServerCapability::Tools) {
-                if let Some(response) = protocol
+            if protocol.capable(context_server::protocol::ServerCapability::Tools)
+                && let Some(response) = protocol
                    .request::<context_server::types::requests::ListTools>(())
                    .await
                    .log_err()
-                {
-                    let tool_ids = tool_working_set
-                        .update(cx, |tool_working_set, cx| {
-                            tool_working_set.extend(
-                                response.tools.into_iter().map(|tool| {
-                                    Arc::new(ContextServerTool::new(
-                                        context_server_store.clone(),
-                                        server.id(),
-                                        tool,
-                                    )) as Arc<dyn Tool>
-                                }),
-                                cx,
-                            )
-                        })
-                        .log_err();
+            {
+                let tool_ids = tool_working_set
+                    .update(cx, |tool_working_set, cx| {
+                        tool_working_set.extend(
+                            response.tools.into_iter().map(|tool| {
+                                Arc::new(ContextServerTool::new(
+                                    context_server_store.clone(),
+                                    server.id(),
+                                    tool,
+                                )) as Arc<dyn Tool>
+                            }),
+                            cx,
+                        )
+                    })
+                    .log_err();

-                    if let Some(tool_ids) = tool_ids {
-                        this.update(cx, |this, _| {
-                            this.context_server_tool_ids.insert(server_id, tool_ids);
-                        })
-                        .log_err();
-                    }
+                if let Some(tool_ids) = tool_ids {
+                    this.update(cx, |this, _| {
+                        this.context_server_tool_ids.insert(server_id, tool_ids);
+                    })
+                    .log_err();
                }
            }
        })
@@ -697,13 +696,14 @@ impl SerializedThreadV0_1_0 {
        let mut messages: Vec<SerializedMessage> = Vec::with_capacity(self.0.messages.len());

        for message in self.0.messages {
-            if message.role == Role::User && !message.tool_results.is_empty() {
-                if let Some(last_message) = messages.last_mut() {
-                    debug_assert!(last_message.role == Role::Assistant);
+            if message.role == Role::User
+                && !message.tool_results.is_empty()
+                && let Some(last_message) = messages.last_mut()
+            {
+                debug_assert!(last_message.role == Role::Assistant);

-                    last_message.tool_results = message.tool_results;
-                    continue;
-                }
+                last_message.tool_results = message.tool_results;
+                continue;
            }

            messages.push(message);
@@ -895,6 +895,17 @@ impl ThreadsDatabase {

        let connection = if *ZED_STATELESS {
            Connection::open_memory(Some("THREAD_FALLBACK_DB"))
+        } else if cfg!(any(feature = "test-support", test)) {
+            // rust stores the name of the test on the current thread.
+            // We use this to automatically create a database that will
+            // be shared within the test (for the test_retrieve_old_thread)
+            // but not with concurrent tests.
+            let thread = std::thread::current();
+            let test_name = thread.name();
+            Connection::open_memory(Some(&format!(
+                "THREAD_FALLBACK_{}",
+                test_name.unwrap_or_default()
+            )))
        } else {
            Connection::open_file(&sqlite_path.to_string_lossy())
        };
--- a/crates/agent/src/tool_use.rs
+++ b/crates/agent/src/tool_use.rs
@@ -112,19 +112,13 @@ impl ToolUseState {
                                },
                            );

-                            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);
-                                        }
-                                    }
-                                }
+                            if let Some(window) = &mut window
+                                && let Some(tool) = this.tools.read(cx).tool(tool_use, cx)
+                                && let Some(output) = tool_result.output.clone()
+                                && let Some(card) =
+                                    tool.deserialize_card(output, project.clone(), window, cx)
+                            {
+                                this.tool_result_cards.insert(tool_use_id, card);
                            }
                        }
                    }
@@ -281,7 +275,7 @@ impl ToolUseState {
    pub fn message_has_tool_results(&self, assistant_message_id: MessageId) -> bool {
        self.tool_uses_by_assistant_message
            .get(&assistant_message_id)
-            .map_or(false, |results| !results.is_empty())
+            .is_some_and(|results| !results.is_empty())
    }

    pub fn tool_result(
--- a/crates/agent2/Cargo.toml
+++ b/crates/agent2/Cargo.toml
@@ -8,24 +8,33 @@ license = "GPL-3.0-or-later"
 [lib]
 path = "src/agent2.rs"

+[features]
+test-support = ["db/test-support"]
+e2e = []
+
 [lints]
 workspace = true

 [dependencies]
 acp_thread.workspace = true
 action_log.workspace = true
+agent.workspace = true
 agent-client-protocol.workspace = true
 agent_servers.workspace = true
 agent_settings.workspace = true
 anyhow.workspace = true
+assistant_context.workspace = true
 assistant_tool.workspace = true
 assistant_tools.workspace = true
 chrono.workspace = true
+client.workspace = true
 cloud_llm_client.workspace = true
 collections.workspace = true
 context_server.workspace = true
+db.workspace = true
 fs.workspace = true
 futures.workspace = true
+git.workspace = true
 gpui.workspace = true
 handlebars = { workspace = true, features = ["rust-embed"] }
 html_to_markdown.workspace = true
@@ -37,6 +46,7 @@ language_model.workspace = true
 language_models.workspace = true
 log.workspace = true
 open.workspace = true
+parking_lot.workspace = true
 paths.workspace = true
 portable-pty.workspace = true
 project.workspace = true
@@ -47,8 +57,11 @@ serde.workspace = true
 serde_json.workspace = true
 settings.workspace = true
 smol.workspace = true
+sqlez.workspace = true
 task.workspace = true
+telemetry.workspace = true
 terminal.workspace = true
+thiserror.workspace = true
 text.workspace = true
 ui.workspace = true
 util.workspace = true
@@ -57,15 +70,21 @@ watch.workspace = true
 web_search.workspace = true
 which.workspace = true
 workspace-hack.workspace = true
+zstd.workspace = true

 [dev-dependencies]
+agent = { workspace = true, "features" = ["test-support"] }
+agent_servers = { workspace = true, "features" = ["test-support"] }
+assistant_context = { workspace = true, "features" = ["test-support"] }
 ctor.workspace = true
 client = { workspace = true, "features" = ["test-support"] }
 clock = { workspace = true, "features" = ["test-support"] }
 context_server = { workspace = true, "features" = ["test-support"] }
+db = { workspace = true, "features" = ["test-support"] }
 editor = { workspace = true, "features" = ["test-support"] }
 env_logger.workspace = true
 fs = { workspace = true, "features" = ["test-support"] }
+git = { workspace = true, "features" = ["test-support"] }
 gpui = { workspace = true, "features" = ["test-support"] }
 gpui_tokio.workspace = true
 language = { workspace = true, "features" = ["test-support"] }
--- a/crates/agent2/src/agent.rs
+++ b/crates/agent2/src/agent.rs
@@ -1,10 +1,10 @@
 use crate::{
-    AgentResponseEvent, ContextServerRegistry, CopyPathTool, CreateDirectoryTool, DeletePathTool,
-    DiagnosticsTool, EditFileTool, FetchTool, FindPathTool, GrepTool, ListDirectoryTool,
-    MovePathTool, NowTool, OpenTool, ReadFileTool, TerminalTool, ThinkingTool, Thread,
-    ToolCallAuthorization, UserMessageContent, WebSearchTool, templates::Templates,
+    ContextServerRegistry, Thread, ThreadEvent, ThreadsDatabase, ToolCallAuthorization,
+    UserMessageContent, templates::Templates,
 };
-use acp_thread::AgentModelSelector;
+use crate::{HistoryStore, TitleUpdated, TokenUsageUpdated};
+use acp_thread::{AcpThread, AgentModelSelector};
+use action_log::ActionLog;
 use agent_client_protocol as acp;
 use agent_settings::AgentSettings;
 use anyhow::{Context as _, Result, anyhow};
@@ -28,7 +28,7 @@ use std::rc::Rc;
 use std::sync::Arc;
 use util::ResultExt;

-const RULES_FILE_NAMES: [&'static str; 9] = [
+const RULES_FILE_NAMES: [&str; 9] = [
    ".rules",
    ".cursorrules",
    ".windsurfrules",
@@ -50,7 +50,8 @@ struct Session {
    thread: Entity<Thread>,
    /// The ACP thread that handles protocol communication
    acp_thread: WeakEntity<acp_thread::AcpThread>,
-    _subscription: Subscription,
+    pending_save: Task<()>,
+    _subscriptions: Vec<Subscription>,
 }

 pub struct LanguageModels {
@@ -154,6 +155,7 @@ impl LanguageModels {
 pub struct NativeAgent {
    /// Session ID -> Session mapping
    sessions: HashMap<acp::SessionId, Session>,
+    history: Entity<HistoryStore>,
    /// Shared project context for all threads
    project_context: Entity<ProjectContext>,
    project_context_needs_refresh: watch::Sender<()>,
@@ -172,6 +174,7 @@ pub struct NativeAgent {
 impl NativeAgent {
    pub async fn new(
        project: Entity<Project>,
+        history: Entity<HistoryStore>,
        templates: Arc<Templates>,
        prompt_store: Option<Entity<PromptStore>>,
        fs: Arc<dyn Fs>,
@@ -199,6 +202,7 @@ impl NativeAgent {
                watch::channel(());
            Self {
                sessions: HashMap::new(),
+                history,
                project_context: cx.new(|_| project_context),
                project_context_needs_refresh: project_context_needs_refresh_tx,
                _maintain_project_context: cx.spawn(async move |this, cx| {
@@ -217,6 +221,57 @@ impl NativeAgent {
        })
    }

+    fn register_session(
+        &mut self,
+        thread_handle: Entity<Thread>,
+        cx: &mut Context<Self>,
+    ) -> Entity<AcpThread> {
+        let connection = Rc::new(NativeAgentConnection(cx.entity()));
+        let registry = LanguageModelRegistry::read_global(cx);
+        let summarization_model = registry.thread_summary_model(cx).map(|c| c.model);
+
+        thread_handle.update(cx, |thread, cx| {
+            thread.set_summarization_model(summarization_model, cx);
+            thread.add_default_tools(cx)
+        });
+
+        let thread = thread_handle.read(cx);
+        let session_id = thread.id().clone();
+        let title = thread.title();
+        let project = thread.project.clone();
+        let action_log = thread.action_log.clone();
+        let acp_thread = cx.new(|_cx| {
+            acp_thread::AcpThread::new(
+                title,
+                connection,
+                project.clone(),
+                action_log.clone(),
+                session_id.clone(),
+            )
+        });
+        let subscriptions = vec![
+            cx.observe_release(&acp_thread, |this, acp_thread, _cx| {
+                this.sessions.remove(acp_thread.session_id());
+            }),
+            cx.subscribe(&thread_handle, Self::handle_thread_title_updated),
+            cx.subscribe(&thread_handle, Self::handle_thread_token_usage_updated),
+            cx.observe(&thread_handle, move |this, thread, cx| {
+                this.save_thread(thread, cx)
+            }),
+        ];
+
+        self.sessions.insert(
+            session_id,
+            Session {
+                thread: thread_handle,
+                acp_thread: acp_thread.downgrade(),
+                _subscriptions: subscriptions,
+                pending_save: Task::ready(()),
+            },
+        );
+        acp_thread
+    }
+
    pub fn models(&self) -> &LanguageModels {
        &self.models
    }
@@ -387,6 +442,43 @@ impl NativeAgent {
        })
    }

+    fn handle_thread_title_updated(
+        &mut self,
+        thread: Entity<Thread>,
+        _: &TitleUpdated,
+        cx: &mut Context<Self>,
+    ) {
+        let session_id = thread.read(cx).id();
+        let Some(session) = self.sessions.get(session_id) else {
+            return;
+        };
+        let thread = thread.downgrade();
+        let acp_thread = session.acp_thread.clone();
+        cx.spawn(async move |_, cx| {
+            let title = thread.read_with(cx, |thread, _| thread.title())?;
+            let task = acp_thread.update(cx, |acp_thread, cx| acp_thread.set_title(title, cx))?;
+            task.await
+        })
+        .detach_and_log_err(cx);
+    }
+
+    fn handle_thread_token_usage_updated(
+        &mut self,
+        thread: Entity<Thread>,
+        usage: &TokenUsageUpdated,
+        cx: &mut Context<Self>,
+    ) {
+        let Some(session) = self.sessions.get(thread.read(cx).id()) else {
+            return;
+        };
+        session
+            .acp_thread
+            .update(cx, |acp_thread, cx| {
+                acp_thread.update_token_usage(usage.0.clone(), cx);
+            })
+            .ok();
+    }
+
    fn handle_project_event(
        &mut self,
        _project: Entity<Project>,
@@ -427,21 +519,105 @@ impl NativeAgent {
    ) {
        self.models.refresh_list(cx);

-        let default_model = LanguageModelRegistry::read_global(cx)
-            .default_model()
-            .map(|m| m.model.clone());
+        let registry = LanguageModelRegistry::read_global(cx);
+        let default_model = registry.default_model().map(|m| m.model);
+        let summarization_model = registry.thread_summary_model(cx).map(|m| m.model);

        for session in self.sessions.values_mut() {
            session.thread.update(cx, |thread, cx| {
                if thread.model().is_none()
                    && let Some(model) = default_model.clone()
                {
-                    thread.set_model(model);
+                    thread.set_model(model, cx);
                    cx.notify();
                }
+                thread.set_summarization_model(summarization_model.clone(), cx);
            });
        }
    }
+
+    pub fn open_thread(
+        &mut self,
+        id: acp::SessionId,
+        cx: &mut Context<Self>,
+    ) -> Task<Result<Entity<AcpThread>>> {
+        let database_future = ThreadsDatabase::connect(cx);
+        cx.spawn(async move |this, cx| {
+            let database = database_future.await.map_err(|err| anyhow!(err))?;
+            let db_thread = database
+                .load_thread(id.clone())
+                .await?
+                .with_context(|| format!("no thread found with ID: {id:?}"))?;
+
+            let thread = this.update(cx, |this, cx| {
+                let action_log = cx.new(|_cx| ActionLog::new(this.project.clone()));
+                cx.new(|cx| {
+                    Thread::from_db(
+                        id.clone(),
+                        db_thread,
+                        this.project.clone(),
+                        this.project_context.clone(),
+                        this.context_server_registry.clone(),
+                        action_log.clone(),
+                        this.templates.clone(),
+                        cx,
+                    )
+                })
+            })?;
+            let acp_thread =
+                this.update(cx, |this, cx| this.register_session(thread.clone(), cx))?;
+            let events = thread.update(cx, |thread, cx| thread.replay(cx))?;
+            cx.update(|cx| {
+                NativeAgentConnection::handle_thread_events(events, acp_thread.downgrade(), cx)
+            })?
+            .await?;
+            Ok(acp_thread)
+        })
+    }
+
+    pub fn thread_summary(
+        &mut self,
+        id: acp::SessionId,
+        cx: &mut Context<Self>,
+    ) -> Task<Result<SharedString>> {
+        let thread = self.open_thread(id.clone(), cx);
+        cx.spawn(async move |this, cx| {
+            let acp_thread = thread.await?;
+            let result = this
+                .update(cx, |this, cx| {
+                    this.sessions
+                        .get(&id)
+                        .unwrap()
+                        .thread
+                        .update(cx, |thread, cx| thread.summary(cx))
+                })?
+                .await?;
+            drop(acp_thread);
+            Ok(result)
+        })
+    }
+
+    fn save_thread(&mut self, thread: Entity<Thread>, cx: &mut Context<Self>) {
+        if thread.read(cx).is_empty() {
+            return;
+        }
+
+        let database_future = ThreadsDatabase::connect(cx);
+        let (id, db_thread) =
+            thread.update(cx, |thread, cx| (thread.id().clone(), thread.to_db(cx)));
+        let Some(session) = self.sessions.get_mut(&id) else {
+            return;
+        };
+        let history = self.history.clone();
+        session.pending_save = cx.spawn(async move |_, cx| {
+            let Some(database) = database_future.await.map_err(|err| anyhow!(err)).log_err() else {
+                return;
+            };
+            let db_thread = db_thread.await;
+            database.save_thread(id, db_thread).await.log_err();
+            history.update(cx, |history, cx| history.reload(cx)).ok();
+        });
+    }
 }

 /// Wrapper struct that implements the AgentConnection trait
@@ -462,10 +638,7 @@ impl NativeAgentConnection {
        session_id: acp::SessionId,
        cx: &mut App,
        f: impl 'static
-        + FnOnce(
-            Entity<Thread>,
-            &mut App,
-        ) -> Result<mpsc::UnboundedReceiver<Result<AgentResponseEvent>>>,
+        + FnOnce(Entity<Thread>, &mut App) -> Result<mpsc::UnboundedReceiver<Result<ThreadEvent>>>,
    ) -> Task<Result<acp::PromptResponse>> {
        let Some((thread, acp_thread)) = self.0.update(cx, |agent, _cx| {
            agent
@@ -477,19 +650,38 @@ impl NativeAgentConnection {
        };
        log::debug!("Found session for: {}", session_id);

-        let mut response_stream = match f(thread, cx) {
+        let response_stream = match f(thread, cx) {
            Ok(stream) => stream,
            Err(err) => return Task::ready(Err(err)),
        };
+        Self::handle_thread_events(response_stream, acp_thread, cx)
+    }
+
+    fn handle_thread_events(
+        mut events: mpsc::UnboundedReceiver<Result<ThreadEvent>>,
+        acp_thread: WeakEntity<AcpThread>,
+        cx: &App,
+    ) -> Task<Result<acp::PromptResponse>> {
        cx.spawn(async move |cx| {
            // Handle response stream and forward to session.acp_thread
-            while let Some(result) = response_stream.next().await {
+            while let Some(result) = events.next().await {
                match result {
                    Ok(event) => {
                        log::trace!("Received completion event: {:?}", event);

                        match event {
-                            AgentResponseEvent::Text(text) => {
+                            ThreadEvent::UserMessage(message) => {
+                                acp_thread.update(cx, |thread, cx| {
+                                    for content in message.content {
+                                        thread.push_user_content_block(
+                                            Some(message.id.clone()),
+                                            content.into(),
+                                            cx,
+                                        );
+                                    }
+                                })?;
+                            }
+                            ThreadEvent::AgentText(text) => {
                                acp_thread.update(cx, |thread, cx| {
                                    thread.push_assistant_content_block(
                                        acp::ContentBlock::Text(acp::TextContent {
@@ -501,7 +693,7 @@ impl NativeAgentConnection {
                                    )
                                })?;
                            }
-                            AgentResponseEvent::Thinking(text) => {
+                            ThreadEvent::AgentThinking(text) => {
                                acp_thread.update(cx, |thread, cx| {
                                    thread.push_assistant_content_block(
                                        acp::ContentBlock::Text(acp::TextContent {
@@ -513,7 +705,7 @@ impl NativeAgentConnection {
                                    )
                                })?;
                            }
-                            AgentResponseEvent::ToolCallAuthorization(ToolCallAuthorization {
+                            ThreadEvent::ToolCallAuthorization(ToolCallAuthorization {
                                tool_call,
                                options,
                                response,
@@ -536,17 +728,22 @@ impl NativeAgentConnection {
                                })
                                .detach();
                            }
-                            AgentResponseEvent::ToolCall(tool_call) => {
+                            ThreadEvent::ToolCall(tool_call) => {
                                acp_thread.update(cx, |thread, cx| {
                                    thread.upsert_tool_call(tool_call, cx)
                                })??;
                            }
-                            AgentResponseEvent::ToolCallUpdate(update) => {
+                            ThreadEvent::ToolCallUpdate(update) => {
                                acp_thread.update(cx, |thread, cx| {
                                    thread.update_tool_call(update, cx)
                                })??;
                            }
-                            AgentResponseEvent::Stop(stop_reason) => {
+                            ThreadEvent::Retry(status) => {
+                                acp_thread.update(cx, |thread, cx| {
+                                    thread.update_retry_status(status, cx)
+                                })?;
+                            }
+                            ThreadEvent::Stop(stop_reason) => {
                                log::debug!("Assistant message complete: {:?}", stop_reason);
                                return Ok(acp::PromptResponse { stop_reason });
                            }
@@ -599,8 +796,8 @@ impl AgentModelSelector for NativeAgentConnection {
            return Task::ready(Err(anyhow!("Invalid model ID {}", model_id)));
        };

-        thread.update(cx, |thread, _cx| {
-            thread.set_model(model.clone());
+        thread.update(cx, |thread, cx| {
+            thread.set_model(model.clone(), cx);
        });

        update_settings_file::<AgentSettings>(
@@ -660,31 +857,12 @@ impl acp_thread::AgentConnection for NativeAgentConnection {
        cx.spawn(async move |cx| {
            log::debug!("Starting thread creation in async context");

-            // Generate session ID
-            let session_id = acp::SessionId(uuid::Uuid::new_v4().to_string().into());
-            log::info!("Created session with ID: {}", session_id);
-
-            // Create AcpThread
-            let acp_thread = cx.update(|cx| {
-                cx.new(|cx| {
-                    acp_thread::AcpThread::new(
-                        "agent2",
-                        self.clone(),
-                        project.clone(),
-                        session_id.clone(),
-                        cx,
-                    )
-                })
-            })?;
-            let action_log = cx.update(|cx| acp_thread.read(cx).action_log().clone())?;
-
            // Create Thread
            let thread = agent.update(
                cx,
                |agent, cx: &mut gpui::Context<NativeAgent>| -> Result<_> {
                    // Fetch default model from registry settings
                    let registry = LanguageModelRegistry::read_global(cx);
-
                    // Log available models for debugging
                    let available_count = registry.available_models(cx).count();
                    log::debug!("Total available models: {}", available_count);
@@ -694,55 +872,19 @@ impl acp_thread::AgentConnection for NativeAgentConnection {
                            .models
                            .model_from_id(&LanguageModels::model_id(&default_model.model))
                    });
-
-                    let thread = cx.new(|cx| {
-                        let mut thread = Thread::new(
+                    Ok(cx.new(|cx| {
+                        Thread::new(
                            project.clone(),
                            agent.project_context.clone(),
                            agent.context_server_registry.clone(),
-                            action_log.clone(),
                            agent.templates.clone(),
                            default_model,
                            cx,
-                        );
-                        thread.add_tool(CopyPathTool::new(project.clone()));
-                        thread.add_tool(CreateDirectoryTool::new(project.clone()));
-                        thread.add_tool(DeletePathTool::new(project.clone(), action_log.clone()));
-                        thread.add_tool(DiagnosticsTool::new(project.clone()));
-                        thread.add_tool(EditFileTool::new(cx.entity()));
-                        thread.add_tool(FetchTool::new(project.read(cx).client().http_client()));
-                        thread.add_tool(FindPathTool::new(project.clone()));
-                        thread.add_tool(GrepTool::new(project.clone()));
-                        thread.add_tool(ListDirectoryTool::new(project.clone()));
-                        thread.add_tool(MovePathTool::new(project.clone()));
-                        thread.add_tool(NowTool);
-                        thread.add_tool(OpenTool::new(project.clone()));
-                        thread.add_tool(ReadFileTool::new(project.clone(), action_log));
-                        thread.add_tool(TerminalTool::new(project.clone(), cx));
-                        thread.add_tool(ThinkingTool);
-                        thread.add_tool(WebSearchTool); // TODO: Enable this only if it's a zed model.
-                        thread
-                    });
-
-                    Ok(thread)
+                        )
+                    }))
                },
            )??;
-
-            // Store the session
-            agent.update(cx, |agent, cx| {
-                agent.sessions.insert(
-                    session_id,
-                    Session {
-                        thread,
-                        acp_thread: acp_thread.downgrade(),
-                        _subscription: cx.observe_release(&acp_thread, |this, acp_thread, _cx| {
-                            this.sessions.remove(acp_thread.session_id());
-                        }),
-                    },
-                );
-            })?;
-
-            Ok(acp_thread)
+            agent.update(cx, |agent, cx| agent.register_session(thread, cx))
        })
    }

@@ -783,6 +925,14 @@ impl acp_thread::AgentConnection for NativeAgentConnection {
        })
    }

+    fn prompt_capabilities(&self) -> acp::PromptCapabilities {
+        acp::PromptCapabilities {
+            image: true,
+            audio: false,
+            embedded_context: true,
+        }
+    }
+
    fn resume(
        &self,
        session_id: &acp::SessionId,
@@ -798,34 +948,88 @@ impl acp_thread::AgentConnection for NativeAgentConnection {
        log::info!("Cancelling on session: {}", session_id);
        self.0.update(cx, |agent, cx| {
            if let Some(agent) = agent.sessions.get(session_id) {
-                agent.thread.update(cx, |thread, _cx| thread.cancel());
+                agent.thread.update(cx, |thread, cx| thread.cancel(cx));
            }
        });
    }

-    fn session_editor(
+    fn truncate(
        &self,
        session_id: &agent_client_protocol::SessionId,
        cx: &mut App,
-    ) -> Option<Rc<dyn acp_thread::AgentSessionEditor>> {
+    ) -> Option<Rc<dyn acp_thread::AgentSessionTruncate>> {
        self.0.update(cx, |agent, _cx| {
-            agent
-                .sessions
-                .get(session_id)
-                .map(|session| Rc::new(NativeAgentSessionEditor(session.thread.clone())) as _)
+            agent.sessions.get(session_id).map(|session| {
+                Rc::new(NativeAgentSessionEditor {
+                    thread: session.thread.clone(),
+                    acp_thread: session.acp_thread.clone(),
+                }) as _
+            })
        })
    }

+    fn set_title(
+        &self,
+        session_id: &acp::SessionId,
+        _cx: &mut App,
+    ) -> Option<Rc<dyn acp_thread::AgentSessionSetTitle>> {
+        Some(Rc::new(NativeAgentSessionSetTitle {
+            connection: self.clone(),
+            session_id: session_id.clone(),
+        }) as _)
+    }
+
+    fn telemetry(&self) -> Option<Rc<dyn acp_thread::AgentTelemetry>> {
+        Some(Rc::new(self.clone()) as Rc<dyn acp_thread::AgentTelemetry>)
+    }
+
    fn into_any(self: Rc<Self>) -> Rc<dyn Any> {
        self
    }
 }

-struct NativeAgentSessionEditor(Entity<Thread>);
+impl acp_thread::AgentTelemetry for NativeAgentConnection {
+    fn agent_name(&self) -> String {
+        "Zed".into()
+    }

-impl acp_thread::AgentSessionEditor for NativeAgentSessionEditor {
-    fn truncate(&self, message_id: acp_thread::UserMessageId, cx: &mut App) -> Task<Result<()>> {
-        Task::ready(self.0.update(cx, |thread, _cx| thread.truncate(message_id)))
+    fn thread_data(
+        &self,
+        session_id: &acp::SessionId,
+        cx: &mut App,
+    ) -> Task<Result<serde_json::Value>> {
+        let Some(session) = self.0.read(cx).sessions.get(session_id) else {
+            return Task::ready(Err(anyhow!("Session not found")));
+        };
+
+        let task = session.thread.read(cx).to_db(cx);
+        cx.background_spawn(async move {
+            serde_json::to_value(task.await).context("Failed to serialize thread")
+        })
+    }
+}
+
+struct NativeAgentSessionEditor {
+    thread: Entity<Thread>,
+    acp_thread: WeakEntity<AcpThread>,
+}
+
+impl acp_thread::AgentSessionTruncate for NativeAgentSessionEditor {
+    fn run(&self, message_id: acp_thread::UserMessageId, cx: &mut App) -> Task<Result<()>> {
+        match self.thread.update(cx, |thread, cx| {
+            thread.truncate(message_id.clone(), cx)?;
+            Ok(thread.latest_token_usage())
+        }) {
+            Ok(usage) => {
+                self.acp_thread
+                    .update(cx, |thread, cx| {
+                        thread.update_token_usage(usage, cx);
+                    })
+                    .ok();
+                Task::ready(Ok(()))
+            }
+            Err(error) => Task::ready(Err(error)),
+        }
    }
 }

@@ -843,14 +1047,37 @@ impl acp_thread::AgentSessionResume for NativeAgentSessionResume {
    }
 }

+struct NativeAgentSessionSetTitle {
+    connection: NativeAgentConnection,
+    session_id: acp::SessionId,
+}
+
+impl acp_thread::AgentSessionSetTitle for NativeAgentSessionSetTitle {
+    fn run(&self, title: SharedString, cx: &mut App) -> Task<Result<()>> {
+        let Some(session) = self.connection.0.read(cx).sessions.get(&self.session_id) else {
+            return Task::ready(Err(anyhow!("session not found")));
+        };
+        let thread = session.thread.clone();
+        thread.update(cx, |thread, cx| thread.set_title(title, cx));
+        Task::ready(Ok(()))
+    }
+}
+
 #[cfg(test)]
 mod tests {
+    use crate::HistoryEntryId;
+
    use super::*;
-    use acp_thread::{AgentConnection, AgentModelGroupName, AgentModelId, AgentModelInfo};
+    use acp_thread::{
+        AgentConnection, AgentModelGroupName, AgentModelId, AgentModelInfo, MentionUri,
+    };
    use fs::FakeFs;
    use gpui::TestAppContext;
+    use indoc::indoc;
+    use language_model::fake_provider::FakeLanguageModel;
    use serde_json::json;
    use settings::SettingsStore;
+    use util::path;

    #[gpui::test]
    async fn test_maintaining_project_context(cx: &mut TestAppContext) {
@@ -864,8 +1091,11 @@ mod tests {
        )
        .await;
        let project = Project::test(fs.clone(), [], cx).await;
+        let context_store = cx.new(|cx| assistant_context::ContextStore::fake(project.clone(), cx));
+        let history_store = cx.new(|cx| HistoryStore::new(context_store, cx));
        let agent = NativeAgent::new(
            project.clone(),
+            history_store,
            Templates::new(),
            None,
            fs.clone(),
@@ -919,9 +1149,12 @@ mod tests {
        let fs = FakeFs::new(cx.executor());
        fs.insert_tree("/", json!({ "a": {}  })).await;
        let project = Project::test(fs.clone(), [], cx).await;
+        let context_store = cx.new(|cx| assistant_context::ContextStore::fake(project.clone(), cx));
+        let history_store = cx.new(|cx| HistoryStore::new(context_store, cx));
        let connection = NativeAgentConnection(
            NativeAgent::new(
                project.clone(),
+                history_store,
                Templates::new(),
                None,
                fs.clone(),
@@ -972,9 +1205,13 @@ mod tests {
        .await;
        let project = Project::test(fs.clone(), [], cx).await;

+        let context_store = cx.new(|cx| assistant_context::ContextStore::fake(project.clone(), cx));
+        let history_store = cx.new(|cx| HistoryStore::new(context_store, cx));
+
        // Create the agent and connection
        let agent = NativeAgent::new(
            project.clone(),
+            history_store,
            Templates::new(),
            None,
            fs.clone(),
@@ -1025,6 +1262,158 @@ mod tests {
        );
    }

+    #[gpui::test]
+    #[cfg_attr(target_os = "windows", ignore)] // TODO: Fix this test on Windows
+    async fn test_save_load_thread(cx: &mut TestAppContext) {
+        init_test(cx);
+        let fs = FakeFs::new(cx.executor());
+        fs.insert_tree(
+            "/",
+            json!({
+                "a": {
+                    "b.md": "Lorem"
+                }
+            }),
+        )
+        .await;
+        let project = Project::test(fs.clone(), [path!("/a").as_ref()], cx).await;
+        let context_store = cx.new(|cx| assistant_context::ContextStore::fake(project.clone(), cx));
+        let history_store = cx.new(|cx| HistoryStore::new(context_store, cx));
+        let agent = NativeAgent::new(
+            project.clone(),
+            history_store.clone(),
+            Templates::new(),
+            None,
+            fs.clone(),
+            &mut cx.to_async(),
+        )
+        .await
+        .unwrap();
+        let connection = Rc::new(NativeAgentConnection(agent.clone()));
+
+        let acp_thread = cx
+            .update(|cx| {
+                connection
+                    .clone()
+                    .new_thread(project.clone(), Path::new(""), cx)
+            })
+            .await
+            .unwrap();
+        let session_id = acp_thread.read_with(cx, |thread, _| thread.session_id().clone());
+        let thread = agent.read_with(cx, |agent, _| {
+            agent.sessions.get(&session_id).unwrap().thread.clone()
+        });
+
+        // Ensure empty threads are not saved, even if they get mutated.
+        let model = Arc::new(FakeLanguageModel::default());
+        let summary_model = Arc::new(FakeLanguageModel::default());
+        thread.update(cx, |thread, cx| {
+            thread.set_model(model.clone(), cx);
+            thread.set_summarization_model(Some(summary_model.clone()), cx);
+        });
+        cx.run_until_parked();
+        assert_eq!(history_entries(&history_store, cx), vec![]);
+
+        let send = acp_thread.update(cx, |thread, cx| {
+            thread.send(
+                vec![
+                    "What does ".into(),
+                    acp::ContentBlock::ResourceLink(acp::ResourceLink {
+                        name: "b.md".into(),
+                        uri: MentionUri::File {
+                            abs_path: path!("/a/b.md").into(),
+                        }
+                        .to_uri()
+                        .to_string(),
+                        annotations: None,
+                        description: None,
+                        mime_type: None,
+                        size: None,
+                        title: None,
+                    }),
+                    " mean?".into(),
+                ],
+                cx,
+            )
+        });
+        let send = cx.foreground_executor().spawn(send);
+        cx.run_until_parked();
+
+        model.send_last_completion_stream_text_chunk("Lorem.");
+        model.end_last_completion_stream();
+        cx.run_until_parked();
+        summary_model.send_last_completion_stream_text_chunk("Explaining /a/b.md");
+        summary_model.end_last_completion_stream();
+
+        send.await.unwrap();
+        acp_thread.read_with(cx, |thread, cx| {
+            assert_eq!(
+                thread.to_markdown(cx),
+                indoc! {"
+                    ## User
+
+                    What does [@b.md](file:///a/b.md) mean?
+
+                    ## Assistant
+
+                    Lorem.
+
+                "}
+            )
+        });
+
+        cx.run_until_parked();
+
+        // Drop the ACP thread, which should cause the session to be dropped as well.
+        cx.update(|_| {
+            drop(thread);
+            drop(acp_thread);
+        });
+        agent.read_with(cx, |agent, _| {
+            assert_eq!(agent.sessions.keys().cloned().collect::<Vec<_>>(), []);
+        });
+
+        // Ensure the thread can be reloaded from disk.
+        assert_eq!(
+            history_entries(&history_store, cx),
+            vec![(
+                HistoryEntryId::AcpThread(session_id.clone()),
+                "Explaining /a/b.md".into()
+            )]
+        );
+        let acp_thread = agent
+            .update(cx, |agent, cx| agent.open_thread(session_id.clone(), cx))
+            .await
+            .unwrap();
+        acp_thread.read_with(cx, |thread, cx| {
+            assert_eq!(
+                thread.to_markdown(cx),
+                indoc! {"
+                    ## User
+
+                    What does [@b.md](file:///a/b.md) mean?
+
+                    ## Assistant
+
+                    Lorem.
+
+                "}
+            )
+        });
+    }
+
+    fn history_entries(
+        history: &Entity<HistoryStore>,
+        cx: &mut TestAppContext,
+    ) -> Vec<(HistoryEntryId, String)> {
+        history.read_with(cx, |history, _| {
+            history
+                .entries()
+                .map(|e| (e.id(), e.title().to_string()))
+                .collect::<Vec<_>>()
+        })
+    }
+
    fn init_test(cx: &mut TestAppContext) {
        env_logger::try_init().ok();
        cx.update(|cx| {
--- a/crates/agent2/src/agent2.rs
+++ b/crates/agent2/src/agent2.rs
@@ -1,13 +1,18 @@
 mod agent;
+mod db;
+mod history_store;
 mod native_agent_server;
 mod templates;
 mod thread;
+mod tool_schema;
 mod tools;

 #[cfg(test)]
 mod tests;

 pub use agent::*;
+pub use db::*;
+pub use history_store::*;
 pub use native_agent_server::NativeAgentServer;
 pub use templates::*;
 pub use thread::*;
--- a/crates/agent2/src/db.rs
+++ b/crates/agent2/src/db.rs
@@ -0,0 +1,499 @@
+use crate::{AgentMessage, AgentMessageContent, UserMessage, UserMessageContent};
+use acp_thread::UserMessageId;
+use agent::{thread::DetailedSummaryState, thread_store};
+use agent_client_protocol as acp;
+use agent_settings::{AgentProfileId, CompletionMode};
+use anyhow::{Result, anyhow};
+use chrono::{DateTime, Utc};
+use collections::{HashMap, IndexMap};
+use futures::{FutureExt, future::Shared};
+use gpui::{BackgroundExecutor, Global, Task};
+use indoc::indoc;
+use parking_lot::Mutex;
+use serde::{Deserialize, Serialize};
+use sqlez::{
+    bindable::{Bind, Column},
+    connection::Connection,
+    statement::Statement,
+};
+use std::sync::Arc;
+use ui::{App, SharedString};
+
+pub type DbMessage = crate::Message;
+pub type DbSummary = DetailedSummaryState;
+pub type DbLanguageModel = thread_store::SerializedLanguageModel;
+
+#[derive(Debug, Clone, Serialize, Deserialize)]
+pub struct DbThreadMetadata {
+    pub id: acp::SessionId,
+    #[serde(alias = "summary")]
+    pub title: SharedString,
+    pub updated_at: DateTime<Utc>,
+}
+
+#[derive(Debug, Serialize, Deserialize)]
+pub struct DbThread {
+    pub title: SharedString,
+    pub messages: Vec<DbMessage>,
+    pub updated_at: DateTime<Utc>,
+    #[serde(default)]
+    pub detailed_summary: Option<SharedString>,
+    #[serde(default)]
+    pub initial_project_snapshot: Option<Arc<agent::thread::ProjectSnapshot>>,
+    #[serde(default)]
+    pub cumulative_token_usage: language_model::TokenUsage,
+    #[serde(default)]
+    pub request_token_usage: HashMap<acp_thread::UserMessageId, language_model::TokenUsage>,
+    #[serde(default)]
+    pub model: Option<DbLanguageModel>,
+    #[serde(default)]
+    pub completion_mode: Option<CompletionMode>,
+    #[serde(default)]
+    pub profile: Option<AgentProfileId>,
+}
+
+impl DbThread {
+    pub const VERSION: &'static str = "0.3.0";
+
+    pub fn from_json(json: &[u8]) -> Result<Self> {
+        let saved_thread_json = serde_json::from_slice::<serde_json::Value>(json)?;
+        match saved_thread_json.get("version") {
+            Some(serde_json::Value::String(version)) => match version.as_str() {
+                Self::VERSION => Ok(serde_json::from_value(saved_thread_json)?),
+                _ => Self::upgrade_from_agent_1(agent::SerializedThread::from_json(json)?),
+            },
+            _ => Self::upgrade_from_agent_1(agent::SerializedThread::from_json(json)?),
+        }
+    }
+
+    fn upgrade_from_agent_1(thread: agent::SerializedThread) -> Result<Self> {
+        let mut messages = Vec::new();
+        let mut request_token_usage = HashMap::default();
+
+        let mut last_user_message_id = None;
+        for (ix, msg) in thread.messages.into_iter().enumerate() {
+            let message = match msg.role {
+                language_model::Role::User => {
+                    let mut content = Vec::new();
+
+                    // Convert segments to content
+                    for segment in msg.segments {
+                        match segment {
+                            thread_store::SerializedMessageSegment::Text { text } => {
+                                content.push(UserMessageContent::Text(text));
+                            }
+                            thread_store::SerializedMessageSegment::Thinking { text, .. } => {
+                                // User messages don't have thinking segments, but handle gracefully
+                                content.push(UserMessageContent::Text(text));
+                            }
+                            thread_store::SerializedMessageSegment::RedactedThinking { .. } => {
+                                // User messages don't have redacted thinking, skip.
+                            }
+                        }
+                    }
+
+                    // If no content was added, add context as text if available
+                    if content.is_empty() && !msg.context.is_empty() {
+                        content.push(UserMessageContent::Text(msg.context));
+                    }
+
+                    let id = UserMessageId::new();
+                    last_user_message_id = Some(id.clone());
+
+                    crate::Message::User(UserMessage {
+                        // MessageId from old format can't be meaningfully converted, so generate a new one
+                        id,
+                        content,
+                    })
+                }
+                language_model::Role::Assistant => {
+                    let mut content = Vec::new();
+
+                    // Convert segments to content
+                    for segment in msg.segments {
+                        match segment {
+                            thread_store::SerializedMessageSegment::Text { text } => {
+                                content.push(AgentMessageContent::Text(text));
+                            }
+                            thread_store::SerializedMessageSegment::Thinking {
+                                text,
+                                signature,
+                            } => {
+                                content.push(AgentMessageContent::Thinking { text, signature });
+                            }
+                            thread_store::SerializedMessageSegment::RedactedThinking { data } => {
+                                content.push(AgentMessageContent::RedactedThinking(data));
+                            }
+                        }
+                    }
+
+                    // Convert tool uses
+                    let mut tool_names_by_id = HashMap::default();
+                    for tool_use in msg.tool_uses {
+                        tool_names_by_id.insert(tool_use.id.clone(), tool_use.name.clone());
+                        content.push(AgentMessageContent::ToolUse(
+                            language_model::LanguageModelToolUse {
+                                id: tool_use.id,
+                                name: tool_use.name.into(),
+                                raw_input: serde_json::to_string(&tool_use.input)
+                                    .unwrap_or_default(),
+                                input: tool_use.input,
+                                is_input_complete: true,
+                            },
+                        ));
+                    }
+
+                    // Convert tool results
+                    let mut tool_results = IndexMap::default();
+                    for tool_result in msg.tool_results {
+                        let name = tool_names_by_id
+                            .remove(&tool_result.tool_use_id)
+                            .unwrap_or_else(|| SharedString::from("unknown"));
+                        tool_results.insert(
+                            tool_result.tool_use_id.clone(),
+                            language_model::LanguageModelToolResult {
+                                tool_use_id: tool_result.tool_use_id,
+                                tool_name: name.into(),
+                                is_error: tool_result.is_error,
+                                content: tool_result.content,
+                                output: tool_result.output,
+                            },
+                        );
+                    }
+
+                    if let Some(last_user_message_id) = &last_user_message_id
+                        && let Some(token_usage) = thread.request_token_usage.get(ix).copied()
+                    {
+                        request_token_usage.insert(last_user_message_id.clone(), token_usage);
+                    }
+
+                    crate::Message::Agent(AgentMessage {
+                        content,
+                        tool_results,
+                    })
+                }
+                language_model::Role::System => {
+                    // Skip system messages as they're not supported in the new format
+                    continue;
+                }
+            };
+
+            messages.push(message);
+        }
+
+        Ok(Self {
+            title: thread.summary,
+            messages,
+            updated_at: thread.updated_at,
+            detailed_summary: match thread.detailed_summary_state {
+                DetailedSummaryState::NotGenerated | DetailedSummaryState::Generating { .. } => {
+                    None
+                }
+                DetailedSummaryState::Generated { text, .. } => Some(text),
+            },
+            initial_project_snapshot: thread.initial_project_snapshot,
+            cumulative_token_usage: thread.cumulative_token_usage,
+            request_token_usage,
+            model: thread.model,
+            completion_mode: thread.completion_mode,
+            profile: thread.profile,
+        })
+    }
+}
+
+pub static ZED_STATELESS: std::sync::LazyLock<bool> =
+    std::sync::LazyLock::new(|| std::env::var("ZED_STATELESS").is_ok_and(|v| !v.is_empty()));
+
+#[derive(Debug, Clone, PartialEq, Eq, Serialize, Deserialize)]
+pub enum DataType {
+    #[serde(rename = "json")]
+    Json,
+    #[serde(rename = "zstd")]
+    Zstd,
+}
+
+impl Bind for DataType {
+    fn bind(&self, statement: &Statement, start_index: i32) -> Result<i32> {
+        let value = match self {
+            DataType::Json => "json",
+            DataType::Zstd => "zstd",
+        };
+        value.bind(statement, start_index)
+    }
+}
+
+impl Column for DataType {
+    fn column(statement: &mut Statement, start_index: i32) -> Result<(Self, i32)> {
+        let (value, next_index) = String::column(statement, start_index)?;
+        let data_type = match value.as_str() {
+            "json" => DataType::Json,
+            "zstd" => DataType::Zstd,
+            _ => anyhow::bail!("Unknown data type: {}", value),
+        };
+        Ok((data_type, next_index))
+    }
+}
+
+pub(crate) struct ThreadsDatabase {
+    executor: BackgroundExecutor,
+    connection: Arc<Mutex<Connection>>,
+}
+
+struct GlobalThreadsDatabase(Shared<Task<Result<Arc<ThreadsDatabase>, Arc<anyhow::Error>>>>);
+
+impl Global for GlobalThreadsDatabase {}
+
+impl ThreadsDatabase {
+    pub fn connect(cx: &mut App) -> Shared<Task<Result<Arc<ThreadsDatabase>, Arc<anyhow::Error>>>> {
+        if cx.has_global::<GlobalThreadsDatabase>() {
+            return cx.global::<GlobalThreadsDatabase>().0.clone();
+        }
+        let executor = cx.background_executor().clone();
+        let task = executor
+            .spawn({
+                let executor = executor.clone();
+                async move {
+                    match ThreadsDatabase::new(executor) {
+                        Ok(db) => Ok(Arc::new(db)),
+                        Err(err) => Err(Arc::new(err)),
+                    }
+                }
+            })
+            .shared();
+
+        cx.set_global(GlobalThreadsDatabase(task.clone()));
+        task
+    }
+
+    pub fn new(executor: BackgroundExecutor) -> Result<Self> {
+        let connection = if *ZED_STATELESS {
+            Connection::open_memory(Some("THREAD_FALLBACK_DB"))
+        } else if cfg!(any(feature = "test-support", test)) {
+            // rust stores the name of the test on the current thread.
+            // We use this to automatically create a database that will
+            // be shared within the test (for the test_retrieve_old_thread)
+            // but not with concurrent tests.
+            let thread = std::thread::current();
+            let test_name = thread.name();
+            Connection::open_memory(Some(&format!(
+                "THREAD_FALLBACK_{}",
+                test_name.unwrap_or_default()
+            )))
+        } else {
+            let threads_dir = paths::data_dir().join("threads");
+            std::fs::create_dir_all(&threads_dir)?;
+            let sqlite_path = threads_dir.join("threads.db");
+            Connection::open_file(&sqlite_path.to_string_lossy())
+        };
+
+        connection.exec(indoc! {"
+            CREATE TABLE IF NOT EXISTS threads (
+                id TEXT PRIMARY KEY,
+                summary TEXT NOT NULL,
+                updated_at TEXT NOT NULL,
+                data_type TEXT NOT NULL,
+                data BLOB NOT NULL
+            )
+        "})?()
+        .map_err(|e| anyhow!("Failed to create threads table: {}", e))?;
+
+        let db = Self {
+            executor,
+            connection: Arc::new(Mutex::new(connection)),
+        };
+
+        Ok(db)
+    }
+
+    fn save_thread_sync(
+        connection: &Arc<Mutex<Connection>>,
+        id: acp::SessionId,
+        thread: DbThread,
+    ) -> Result<()> {
+        const COMPRESSION_LEVEL: i32 = 3;
+
+        #[derive(Serialize)]
+        struct SerializedThread {
+            #[serde(flatten)]
+            thread: DbThread,
+            version: &'static str,
+        }
+
+        let title = thread.title.to_string();
+        let updated_at = thread.updated_at.to_rfc3339();
+        let json_data = serde_json::to_string(&SerializedThread {
+            thread,
+            version: DbThread::VERSION,
+        })?;
+
+        let connection = connection.lock();
+
+        let compressed = zstd::encode_all(json_data.as_bytes(), COMPRESSION_LEVEL)?;
+        let data_type = DataType::Zstd;
+        let data = compressed;
+
+        let mut insert = connection.exec_bound::<(Arc<str>, String, String, DataType, Vec<u8>)>(indoc! {"
+            INSERT OR REPLACE INTO threads (id, summary, updated_at, data_type, data) VALUES (?, ?, ?, ?, ?)
+        "})?;
+
+        insert((id.0, title, updated_at, data_type, data))?;
+
+        Ok(())
+    }
+
+    pub fn list_threads(&self) -> Task<Result<Vec<DbThreadMetadata>>> {
+        let connection = self.connection.clone();
+
+        self.executor.spawn(async move {
+            let connection = connection.lock();
+
+            let mut select =
+                connection.select_bound::<(), (Arc<str>, String, String)>(indoc! {"
+                SELECT id, summary, updated_at FROM threads ORDER BY updated_at DESC
+            "})?;
+
+            let rows = select(())?;
+            let mut threads = Vec::new();
+
+            for (id, summary, updated_at) in rows {
+                threads.push(DbThreadMetadata {
+                    id: acp::SessionId(id),
+                    title: summary.into(),
+                    updated_at: DateTime::parse_from_rfc3339(&updated_at)?.with_timezone(&Utc),
+                });
+            }
+
+            Ok(threads)
+        })
+    }
+
+    pub fn load_thread(&self, id: acp::SessionId) -> Task<Result<Option<DbThread>>> {
+        let connection = self.connection.clone();
+
+        self.executor.spawn(async move {
+            let connection = connection.lock();
+            let mut select = connection.select_bound::<Arc<str>, (DataType, Vec<u8>)>(indoc! {"
+                SELECT data_type, data FROM threads WHERE id = ? LIMIT 1
+            "})?;
+
+            let rows = select(id.0)?;
+            if let Some((data_type, data)) = rows.into_iter().next() {
+                let json_data = match data_type {
+                    DataType::Zstd => {
+                        let decompressed = zstd::decode_all(&data[..])?;
+                        String::from_utf8(decompressed)?
+                    }
+                    DataType::Json => String::from_utf8(data)?,
+                };
+                let thread = DbThread::from_json(json_data.as_bytes())?;
+                Ok(Some(thread))
+            } else {
+                Ok(None)
+            }
+        })
+    }
+
+    pub fn save_thread(&self, id: acp::SessionId, thread: DbThread) -> Task<Result<()>> {
+        let connection = self.connection.clone();
+
+        self.executor
+            .spawn(async move { Self::save_thread_sync(&connection, id, thread) })
+    }
+
+    pub fn delete_thread(&self, id: acp::SessionId) -> Task<Result<()>> {
+        let connection = self.connection.clone();
+
+        self.executor.spawn(async move {
+            let connection = connection.lock();
+
+            let mut delete = connection.exec_bound::<Arc<str>>(indoc! {"
+                DELETE FROM threads WHERE id = ?
+            "})?;
+
+            delete(id.0)?;
+
+            Ok(())
+        })
+    }
+}
+
+#[cfg(test)]
+mod tests {
+
+    use super::*;
+    use agent::MessageSegment;
+    use agent::context::LoadedContext;
+    use client::Client;
+    use fs::FakeFs;
+    use gpui::AppContext;
+    use gpui::TestAppContext;
+    use http_client::FakeHttpClient;
+    use language_model::Role;
+    use project::Project;
+    use settings::SettingsStore;
+
+    fn init_test(cx: &mut TestAppContext) {
+        env_logger::try_init().ok();
+        cx.update(|cx| {
+            let settings_store = SettingsStore::test(cx);
+            cx.set_global(settings_store);
+            Project::init_settings(cx);
+            language::init(cx);
+
+            let http_client = FakeHttpClient::with_404_response();
+            let clock = Arc::new(clock::FakeSystemClock::new());
+            let client = Client::new(clock, http_client, cx);
+            agent::init(cx);
+            agent_settings::init(cx);
+            language_model::init(client, cx);
+        });
+    }
+
+    #[gpui::test]
+    async fn test_retrieving_old_thread(cx: &mut TestAppContext) {
+        init_test(cx);
+        let fs = FakeFs::new(cx.executor());
+        let project = Project::test(fs, [], cx).await;
+
+        // Save a thread using the old agent.
+        let thread_store = cx.new(|cx| agent::ThreadStore::fake(project, cx));
+        let thread = thread_store.update(cx, |thread_store, cx| thread_store.create_thread(cx));
+        thread.update(cx, |thread, cx| {
+            thread.insert_message(
+                Role::User,
+                vec![MessageSegment::Text("Hey!".into())],
+                LoadedContext::default(),
+                vec![],
+                false,
+                cx,
+            );
+            thread.insert_message(
+                Role::Assistant,
+                vec![MessageSegment::Text("How're you doing?".into())],
+                LoadedContext::default(),
+                vec![],
+                false,
+                cx,
+            )
+        });
+        thread_store
+            .update(cx, |thread_store, cx| thread_store.save_thread(&thread, cx))
+            .await
+            .unwrap();
+
+        // Open that same thread using the new agent.
+        let db = cx.update(ThreadsDatabase::connect).await.unwrap();
+        let threads = db.list_threads().await.unwrap();
+        assert_eq!(threads.len(), 1);
+        let thread = db
+            .load_thread(threads[0].id.clone())
+            .await
+            .unwrap()
+            .unwrap();
+        assert_eq!(thread.messages[0].to_markdown(), "## User\n\nHey!\n");
+        assert_eq!(
+            thread.messages[1].to_markdown(),
+            "## Assistant\n\nHow're you doing?\n"
+        );
+    }
+}
--- a/crates/agent2/src/history_store.rs
+++ b/crates/agent2/src/history_store.rs
@@ -0,0 +1,357 @@
+use crate::{DbThreadMetadata, ThreadsDatabase};
+use acp_thread::MentionUri;
+use agent_client_protocol as acp;
+use anyhow::{Context as _, Result, anyhow};
+use assistant_context::{AssistantContext, SavedContextMetadata};
+use chrono::{DateTime, Utc};
+use db::kvp::KEY_VALUE_STORE;
+use gpui::{App, AsyncApp, Entity, SharedString, Task, prelude::*};
+use itertools::Itertools;
+use paths::contexts_dir;
+use serde::{Deserialize, Serialize};
+use std::{collections::VecDeque, path::Path, sync::Arc, time::Duration};
+use ui::ElementId;
+use util::ResultExt as _;
+
+const MAX_RECENTLY_OPENED_ENTRIES: usize = 6;
+const RECENTLY_OPENED_THREADS_KEY: &str = "recent-agent-threads";
+const SAVE_RECENTLY_OPENED_ENTRIES_DEBOUNCE: Duration = Duration::from_millis(50);
+
+const DEFAULT_TITLE: &SharedString = &SharedString::new_static("New Thread");
+
+#[derive(Clone, Debug)]
+pub enum HistoryEntry {
+    AcpThread(DbThreadMetadata),
+    TextThread(SavedContextMetadata),
+}
+
+impl HistoryEntry {
+    pub fn updated_at(&self) -> DateTime<Utc> {
+        match self {
+            HistoryEntry::AcpThread(thread) => thread.updated_at,
+            HistoryEntry::TextThread(context) => context.mtime.to_utc(),
+        }
+    }
+
+    pub fn id(&self) -> HistoryEntryId {
+        match self {
+            HistoryEntry::AcpThread(thread) => HistoryEntryId::AcpThread(thread.id.clone()),
+            HistoryEntry::TextThread(context) => HistoryEntryId::TextThread(context.path.clone()),
+        }
+    }
+
+    pub fn mention_uri(&self) -> MentionUri {
+        match self {
+            HistoryEntry::AcpThread(thread) => MentionUri::Thread {
+                id: thread.id.clone(),
+                name: thread.title.to_string(),
+            },
+            HistoryEntry::TextThread(context) => MentionUri::TextThread {
+                path: context.path.as_ref().to_owned(),
+                name: context.title.to_string(),
+            },
+        }
+    }
+
+    pub fn title(&self) -> &SharedString {
+        match self {
+            HistoryEntry::AcpThread(thread) if thread.title.is_empty() => DEFAULT_TITLE,
+            HistoryEntry::AcpThread(thread) => &thread.title,
+            HistoryEntry::TextThread(context) => &context.title,
+        }
+    }
+}
+
+/// Generic identifier for a history entry.
+#[derive(Clone, PartialEq, Eq, Debug, Hash)]
+pub enum HistoryEntryId {
+    AcpThread(acp::SessionId),
+    TextThread(Arc<Path>),
+}
+
+impl Into<ElementId> for HistoryEntryId {
+    fn into(self) -> ElementId {
+        match self {
+            HistoryEntryId::AcpThread(session_id) => ElementId::Name(session_id.0.into()),
+            HistoryEntryId::TextThread(path) => ElementId::Path(path),
+        }
+    }
+}
+
+#[derive(Serialize, Deserialize, Debug)]
+enum SerializedRecentOpen {
+    AcpThread(String),
+    TextThread(String),
+}
+
+pub struct HistoryStore {
+    threads: Vec<DbThreadMetadata>,
+    entries: Vec<HistoryEntry>,
+    context_store: Entity<assistant_context::ContextStore>,
+    recently_opened_entries: VecDeque<HistoryEntryId>,
+    _subscriptions: Vec<gpui::Subscription>,
+    _save_recently_opened_entries_task: Task<()>,
+}
+
+impl HistoryStore {
+    pub fn new(
+        context_store: Entity<assistant_context::ContextStore>,
+        cx: &mut Context<Self>,
+    ) -> Self {
+        let subscriptions = vec![cx.observe(&context_store, |this, _, cx| this.update_entries(cx))];
+
+        cx.spawn(async move |this, cx| {
+            let entries = Self::load_recently_opened_entries(cx).await;
+            this.update(cx, |this, cx| {
+                if let Some(entries) = entries.log_err() {
+                    this.recently_opened_entries = entries;
+                }
+
+                this.reload(cx);
+            })
+            .ok();
+        })
+        .detach();
+
+        Self {
+            context_store,
+            recently_opened_entries: VecDeque::default(),
+            threads: Vec::default(),
+            entries: Vec::default(),
+            _subscriptions: subscriptions,
+            _save_recently_opened_entries_task: Task::ready(()),
+        }
+    }
+
+    pub fn thread_from_session_id(&self, session_id: &acp::SessionId) -> Option<&DbThreadMetadata> {
+        self.threads.iter().find(|thread| &thread.id == session_id)
+    }
+
+    pub fn delete_thread(
+        &mut self,
+        id: acp::SessionId,
+        cx: &mut Context<Self>,
+    ) -> Task<Result<()>> {
+        let database_future = ThreadsDatabase::connect(cx);
+        cx.spawn(async move |this, cx| {
+            let database = database_future.await.map_err(|err| anyhow!(err))?;
+            database.delete_thread(id.clone()).await?;
+            this.update(cx, |this, cx| this.reload(cx))
+        })
+    }
+
+    pub fn delete_text_thread(
+        &mut self,
+        path: Arc<Path>,
+        cx: &mut Context<Self>,
+    ) -> Task<Result<()>> {
+        self.context_store.update(cx, |context_store, cx| {
+            context_store.delete_local_context(path, cx)
+        })
+    }
+
+    pub fn load_text_thread(
+        &self,
+        path: Arc<Path>,
+        cx: &mut Context<Self>,
+    ) -> Task<Result<Entity<AssistantContext>>> {
+        self.context_store.update(cx, |context_store, cx| {
+            context_store.open_local_context(path, cx)
+        })
+    }
+
+    pub fn reload(&self, cx: &mut Context<Self>) {
+        let database_future = ThreadsDatabase::connect(cx);
+        cx.spawn(async move |this, cx| {
+            let threads = database_future
+                .await
+                .map_err(|err| anyhow!(err))?
+                .list_threads()
+                .await?;
+
+            this.update(cx, |this, cx| {
+                if this.recently_opened_entries.len() < MAX_RECENTLY_OPENED_ENTRIES {
+                    for thread in threads
+                        .iter()
+                        .take(MAX_RECENTLY_OPENED_ENTRIES - this.recently_opened_entries.len())
+                        .rev()
+                    {
+                        this.push_recently_opened_entry(
+                            HistoryEntryId::AcpThread(thread.id.clone()),
+                            cx,
+                        )
+                    }
+                }
+                this.threads = threads;
+                this.update_entries(cx);
+            })
+        })
+        .detach_and_log_err(cx);
+    }
+
+    fn update_entries(&mut self, cx: &mut Context<Self>) {
+        #[cfg(debug_assertions)]
+        if std::env::var("ZED_SIMULATE_NO_THREAD_HISTORY").is_ok() {
+            return;
+        }
+        let mut history_entries = Vec::new();
+        history_entries.extend(self.threads.iter().cloned().map(HistoryEntry::AcpThread));
+        history_entries.extend(
+            self.context_store
+                .read(cx)
+                .unordered_contexts()
+                .cloned()
+                .map(HistoryEntry::TextThread),
+        );
+
+        history_entries.sort_unstable_by_key(|entry| std::cmp::Reverse(entry.updated_at()));
+        self.entries = history_entries;
+        cx.notify()
+    }
+
+    pub fn is_empty(&self, _cx: &App) -> bool {
+        self.entries.is_empty()
+    }
+
+    pub fn recently_opened_entries(&self, cx: &App) -> Vec<HistoryEntry> {
+        #[cfg(debug_assertions)]
+        if std::env::var("ZED_SIMULATE_NO_THREAD_HISTORY").is_ok() {
+            return Vec::new();
+        }
+
+        let thread_entries = self.threads.iter().flat_map(|thread| {
+            self.recently_opened_entries
+                .iter()
+                .enumerate()
+                .flat_map(|(index, entry)| match entry {
+                    HistoryEntryId::AcpThread(id) if &thread.id == id => {
+                        Some((index, HistoryEntry::AcpThread(thread.clone())))
+                    }
+                    _ => None,
+                })
+        });
+
+        let context_entries =
+            self.context_store
+                .read(cx)
+                .unordered_contexts()
+                .flat_map(|context| {
+                    self.recently_opened_entries
+                        .iter()
+                        .enumerate()
+                        .flat_map(|(index, entry)| match entry {
+                            HistoryEntryId::TextThread(path) if &context.path == path => {
+                                Some((index, HistoryEntry::TextThread(context.clone())))
+                            }
+                            _ => None,
+                        })
+                });
+
+        thread_entries
+            .chain(context_entries)
+            // optimization to halt iteration early
+            .take(self.recently_opened_entries.len())
+            .sorted_unstable_by_key(|(index, _)| *index)
+            .map(|(_, entry)| entry)
+            .collect()
+    }
+
+    fn save_recently_opened_entries(&mut self, cx: &mut Context<Self>) {
+        let serialized_entries = self
+            .recently_opened_entries
+            .iter()
+            .filter_map(|entry| match entry {
+                HistoryEntryId::TextThread(path) => path.file_name().map(|file| {
+                    SerializedRecentOpen::TextThread(file.to_string_lossy().to_string())
+                }),
+                HistoryEntryId::AcpThread(id) => {
+                    Some(SerializedRecentOpen::AcpThread(id.to_string()))
+                }
+            })
+            .collect::<Vec<_>>();
+
+        self._save_recently_opened_entries_task = cx.spawn(async move |_, cx| {
+            let content = serde_json::to_string(&serialized_entries).unwrap();
+            cx.background_executor()
+                .timer(SAVE_RECENTLY_OPENED_ENTRIES_DEBOUNCE)
+                .await;
+
+            if cfg!(any(feature = "test-support", test)) {
+                return;
+            }
+            KEY_VALUE_STORE
+                .write_kvp(RECENTLY_OPENED_THREADS_KEY.to_owned(), content)
+                .await
+                .log_err();
+        });
+    }
+
+    fn load_recently_opened_entries(cx: &AsyncApp) -> Task<Result<VecDeque<HistoryEntryId>>> {
+        cx.background_spawn(async move {
+            if cfg!(any(feature = "test-support", test)) {
+                anyhow::bail!("history store does not persist in tests");
+            }
+            let json = KEY_VALUE_STORE
+                .read_kvp(RECENTLY_OPENED_THREADS_KEY)?
+                .unwrap_or("[]".to_string());
+            let entries = serde_json::from_str::<Vec<SerializedRecentOpen>>(&json)
+                .context("deserializing persisted agent panel navigation history")?
+                .into_iter()
+                .take(MAX_RECENTLY_OPENED_ENTRIES)
+                .flat_map(|entry| match entry {
+                    SerializedRecentOpen::AcpThread(id) => Some(HistoryEntryId::AcpThread(
+                        acp::SessionId(id.as_str().into()),
+                    )),
+                    SerializedRecentOpen::TextThread(file_name) => Some(
+                        HistoryEntryId::TextThread(contexts_dir().join(file_name).into()),
+                    ),
+                })
+                .collect();
+            Ok(entries)
+        })
+    }
+
+    pub fn push_recently_opened_entry(&mut self, entry: HistoryEntryId, cx: &mut Context<Self>) {
+        self.recently_opened_entries
+            .retain(|old_entry| old_entry != &entry);
+        self.recently_opened_entries.push_front(entry);
+        self.recently_opened_entries
+            .truncate(MAX_RECENTLY_OPENED_ENTRIES);
+        self.save_recently_opened_entries(cx);
+    }
+
+    pub fn remove_recently_opened_thread(&mut self, id: acp::SessionId, cx: &mut Context<Self>) {
+        self.recently_opened_entries.retain(
+            |entry| !matches!(entry, HistoryEntryId::AcpThread(thread_id) if thread_id == &id),
+        );
+        self.save_recently_opened_entries(cx);
+    }
+
+    pub fn replace_recently_opened_text_thread(
+        &mut self,
+        old_path: &Path,
+        new_path: &Arc<Path>,
+        cx: &mut Context<Self>,
+    ) {
+        for entry in &mut self.recently_opened_entries {
+            match entry {
+                HistoryEntryId::TextThread(path) if path.as_ref() == old_path => {
+                    *entry = HistoryEntryId::TextThread(new_path.clone());
+                    break;
+                }
+                _ => {}
+            }
+        }
+        self.save_recently_opened_entries(cx);
+    }
+
+    pub fn remove_recently_opened_entry(&mut self, entry: &HistoryEntryId, cx: &mut Context<Self>) {
+        self.recently_opened_entries
+            .retain(|old_entry| old_entry != entry);
+        self.save_recently_opened_entries(cx);
+    }
+
+    pub fn entries(&self) -> impl Iterator<Item = HistoryEntry> {
+        self.entries.iter().cloned()
+    }
+}
--- a/crates/agent2/src/native_agent_server.rs
+++ b/crates/agent2/src/native_agent_server.rs
@@ -3,39 +3,39 @@ use std::{any::Any, path::Path, rc::Rc, sync::Arc};
 use agent_servers::AgentServer;
 use anyhow::Result;
 use fs::Fs;
-use gpui::{App, Entity, Task};
+use gpui::{App, Entity, SharedString, Task};
 use project::Project;
 use prompt_store::PromptStore;

-use crate::{NativeAgent, NativeAgentConnection, templates::Templates};
+use crate::{HistoryStore, NativeAgent, NativeAgentConnection, templates::Templates};

 #[derive(Clone)]
 pub struct NativeAgentServer {
    fs: Arc<dyn Fs>,
+    history: Entity<HistoryStore>,
 }

 impl NativeAgentServer {
-    pub fn new(fs: Arc<dyn Fs>) -> Self {
-        Self { fs }
+    pub fn new(fs: Arc<dyn Fs>, history: Entity<HistoryStore>) -> Self {
+        Self { fs, history }
    }
 }

 impl AgentServer for NativeAgentServer {
-    fn name(&self) -> &'static str {
-        "Native Agent"
+    fn name(&self) -> SharedString {
+        "Zed Agent".into()
    }

-    fn empty_state_headline(&self) -> &'static str {
-        "Native Agent"
+    fn empty_state_headline(&self) -> SharedString {
+        self.name()
    }

-    fn empty_state_message(&self) -> &'static str {
-        "How can I help you today?"
+    fn empty_state_message(&self) -> SharedString {
+        "".into()
    }

    fn logo(&self) -> ui::IconName {
-        // Using the ZedAssistant icon as it's the native built-in agent
-        ui::IconName::ZedAssistant
+        ui::IconName::ZedAgent
    }

    fn connect(
@@ -50,6 +50,7 @@ impl AgentServer for NativeAgentServer {
        );
        let project = project.clone();
        let fs = self.fs.clone();
+        let history = self.history.clone();
        let prompt_store = PromptStore::global(cx);
        cx.spawn(async move |cx| {
            log::debug!("Creating templates for native agent");
@@ -57,7 +58,8 @@ impl AgentServer for NativeAgentServer {
            let prompt_store = prompt_store.await?;

            log::debug!("Creating native agent entity");
-            let agent = NativeAgent::new(project, templates, Some(prompt_store), fs, cx).await?;
+            let agent =
+                NativeAgent::new(project, history, templates, Some(prompt_store), fs, cx).await?;

            // Create the connection wrapper
            let connection = NativeAgentConnection(agent);
@@ -71,3 +73,52 @@ impl AgentServer for NativeAgentServer {
        self
    }
 }
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+
+    use assistant_context::ContextStore;
+    use gpui::AppContext;
+
+    agent_servers::e2e_tests::common_e2e_tests!(
+        async |fs, project, cx| {
+            let auth = cx.update(|cx| {
+                prompt_store::init(cx);
+                terminal::init(cx);
+
+                let registry = language_model::LanguageModelRegistry::read_global(cx);
+                let auth = registry
+                    .provider(&language_model::ANTHROPIC_PROVIDER_ID)
+                    .unwrap()
+                    .authenticate(cx);
+
+                cx.spawn(async move |_| auth.await)
+            });
+
+            auth.await.unwrap();
+
+            cx.update(|cx| {
+                let registry = language_model::LanguageModelRegistry::global(cx);
+
+                registry.update(cx, |registry, cx| {
+                    registry.select_default_model(
+                        Some(&language_model::SelectedModel {
+                            provider: language_model::ANTHROPIC_PROVIDER_ID,
+                            model: language_model::LanguageModelId("claude-sonnet-4-latest".into()),
+                        }),
+                        cx,
+                    );
+                });
+            });
+
+            let history = cx.update(|cx| {
+                let context_store = cx.new(move |cx| ContextStore::fake(project.clone(), cx));
+                cx.new(move |cx| HistoryStore::new(context_store, cx))
+            });
+
+            NativeAgentServer::new(fs.clone(), history)
+        },
+        allow_option_id = "allow"
+    );
+}
--- a/crates/agent2/src/tests/mod.rs
+++ b/crates/agent2/src/tests/mod.rs
--- a/crates/agent2/src/tests/test_tools.rs
+++ b/crates/agent2/src/tests/test_tools.rs
@@ -16,11 +16,11 @@ impl AgentTool for EchoTool {
    type Input = EchoToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "echo".into()
+    fn name() -> &'static str {
+        "echo"
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Other
    }

@@ -51,8 +51,8 @@ impl AgentTool for DelayTool {
    type Input = DelayToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "delay".into()
+    fn name() -> &'static str {
+        "delay"
    }

    fn initial_title(&self, input: Result<Self::Input, serde_json::Value>) -> SharedString {
@@ -63,7 +63,7 @@ impl AgentTool for DelayTool {
        }
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Other
    }

@@ -92,11 +92,11 @@ impl AgentTool for ToolRequiringPermission {
    type Input = ToolRequiringPermissionInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "tool_requiring_permission".into()
+    fn name() -> &'static str {
+        "tool_requiring_permission"
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Other
    }

@@ -127,11 +127,11 @@ impl AgentTool for InfiniteTool {
    type Input = InfiniteToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "infinite".into()
+    fn name() -> &'static str {
+        "infinite"
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Other
    }

@@ -178,11 +178,11 @@ impl AgentTool for WordListTool {
    type Input = WordListInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "word_list".into()
+    fn name() -> &'static str {
+        "word_list"
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Other
    }

--- a/crates/agent2/src/thread.rs
+++ b/crates/agent2/src/thread.rs
--- a/crates/agent2/src/tool_schema.rs
+++ b/crates/agent2/src/tool_schema.rs
@@ -0,0 +1,43 @@
+use language_model::LanguageModelToolSchemaFormat;
+use schemars::{
+    JsonSchema, Schema,
+    generate::SchemaSettings,
+    transform::{Transform, transform_subschemas},
+};
+
+pub(crate) fn root_schema_for<T: JsonSchema>(format: LanguageModelToolSchemaFormat) -> Schema {
+    let mut generator = match format {
+        LanguageModelToolSchemaFormat::JsonSchema => SchemaSettings::draft07().into_generator(),
+        LanguageModelToolSchemaFormat::JsonSchemaSubset => SchemaSettings::openapi3()
+            .with(|settings| {
+                settings.meta_schema = None;
+                settings.inline_subschemas = true;
+            })
+            .with_transform(ToJsonSchemaSubsetTransform)
+            .into_generator(),
+    };
+    generator.root_schema_for::<T>()
+}
+
+#[derive(Debug, Clone)]
+struct ToJsonSchemaSubsetTransform;
+
+impl Transform for ToJsonSchemaSubsetTransform {
+    fn transform(&mut self, schema: &mut Schema) {
+        // Ensure that the type field is not an array, this happens when we use
+        // Option<T>, the type will be [T, "null"].
+        if let Some(type_field) = schema.get_mut("type")
+            && let Some(types) = type_field.as_array()
+            && let Some(first_type) = types.first()
+        {
+            *type_field = first_type.clone();
+        }
+
+        // oneOf is not supported, use anyOf instead
+        if let Some(one_of) = schema.remove("oneOf") {
+            schema.insert("anyOf".to_string(), one_of);
+        }
+
+        transform_subschemas(self, schema);
+    }
+}
--- a/crates/agent2/src/tools.rs
+++ b/crates/agent2/src/tools.rs
@@ -16,6 +16,29 @@ mod terminal_tool;
 mod thinking_tool;
 mod web_search_tool;

+/// A list of all built in tool names, for use in deduplicating MCP tool names
+pub fn default_tool_names() -> impl Iterator<Item = &'static str> {
+    [
+        CopyPathTool::name(),
+        CreateDirectoryTool::name(),
+        DeletePathTool::name(),
+        DiagnosticsTool::name(),
+        EditFileTool::name(),
+        FetchTool::name(),
+        FindPathTool::name(),
+        GrepTool::name(),
+        ListDirectoryTool::name(),
+        MovePathTool::name(),
+        NowTool::name(),
+        OpenTool::name(),
+        ReadFileTool::name(),
+        TerminalTool::name(),
+        ThinkingTool::name(),
+        WebSearchTool::name(),
+    ]
+    .into_iter()
+}
+
 pub use context_server_registry::*;
 pub use copy_path_tool::*;
 pub use create_directory_tool::*;
@@ -33,3 +56,5 @@ pub use read_file_tool::*;
 pub use terminal_tool::*;
 pub use thinking_tool::*;
 pub use web_search_tool::*;
+
+use crate::AgentTool;
--- a/crates/agent2/src/tools/context_server_registry.rs
+++ b/crates/agent2/src/tools/context_server_registry.rs
@@ -176,15 +176,13 @@ impl AnyAgentTool for ContextServerTool {
            return Task::ready(Err(anyhow!("Context server not found")));
        };
        let tool_name = self.tool.name.clone();
-        let server_clone = server.clone();
-        let input_clone = input.clone();

        cx.spawn(async move |_cx| {
-            let Some(protocol) = server_clone.client() else {
+            let Some(protocol) = server.client() else {
                bail!("Context server not initialized");
            };

-            let arguments = if let serde_json::Value::Object(map) = input_clone {
+            let arguments = if let serde_json::Value::Object(map) = input {
                Some(map.into_iter().collect())
            } else {
                None
@@ -228,4 +226,14 @@ impl AnyAgentTool for ContextServerTool {
            })
        })
    }
+
+    fn replay(
+        &self,
+        _input: serde_json::Value,
+        _output: serde_json::Value,
+        _event_stream: ToolCallEventStream,
+        _cx: &mut App,
+    ) -> Result<()> {
+        Ok(())
+    }
 }
--- a/crates/agent2/src/tools/copy_path_tool.rs
+++ b/crates/agent2/src/tools/copy_path_tool.rs
@@ -1,23 +1,18 @@
 use crate::{AgentTool, ToolCallEventStream};
 use agent_client_protocol::ToolKind;
 use anyhow::{Context as _, Result, anyhow};
-use gpui::{App, AppContext, Entity, SharedString, Task};
+use gpui::{App, AppContext, Entity, Task};
 use project::Project;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use std::sync::Arc;
 use util::markdown::MarkdownInlineCode;

-/// Copies a file or directory in the project, and returns confirmation that the
-/// copy succeeded.
-///
+/// Copies a file or directory in the project, and returns confirmation that the copy succeeded.
 /// Directory contents will be copied recursively (like `cp -r`).
 ///
-/// This tool should be used when it's desirable to create a copy of a file or
-/// directory without modifying the original. It's much more efficient than
-/// doing this by separately reading and then writing the file or directory's
-/// contents, so this tool should be preferred over that approach whenever
-/// copying is the goal.
+/// This tool should be used when it's desirable to create a copy of a file or directory without modifying the original.
+/// It's much more efficient than doing this by separately reading and then writing the file or directory's contents, so this tool should be preferred over that approach whenever copying is the goal.
 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct CopyPathToolInput {
    /// The source path of the file or directory to copy.
@@ -33,12 +28,10 @@ pub struct CopyPathToolInput {
    /// You can copy the first file by providing a source_path of "directory1/a/something.txt"
    /// </example>
    pub source_path: String,
-
    /// The destination path where the file or directory should be copied to.
    ///
    /// <example>
-    /// To copy "directory1/a/something.txt" to "directory2/b/copy.txt",
-    /// provide a destination_path of "directory2/b/copy.txt"
+    /// To copy "directory1/a/something.txt" to "directory2/b/copy.txt", provide a destination_path of "directory2/b/copy.txt"
    /// </example>
    pub destination_path: String,
 }
@@ -57,11 +50,11 @@ impl AgentTool for CopyPathTool {
    type Input = CopyPathToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "copy_path".into()
+    fn name() -> &'static str {
+        "copy_path"
    }

-    fn kind(&self) -> ToolKind {
+    fn kind() -> ToolKind {
        ToolKind::Move
    }

--- a/crates/agent2/src/tools/create_directory_tool.rs
+++ b/crates/agent2/src/tools/create_directory_tool.rs
@@ -9,12 +9,9 @@ use util::markdown::MarkdownInlineCode;

 use crate::{AgentTool, ToolCallEventStream};

-/// Creates a new directory at the specified path within the project. Returns
-/// confirmation that the directory was created.
+/// Creates a new directory at the specified path within the project. Returns confirmation that the directory was created.
 ///
-/// This tool creates a directory and all necessary parent directories (similar
-/// to `mkdir -p`). It should be used whenever you need to create new
-/// directories within the project.
+/// This tool creates a directory and all necessary parent directories (similar to `mkdir -p`). It should be used whenever you need to create new directories within the project.
 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct CreateDirectoryToolInput {
    /// The path of the new directory.
@@ -44,11 +41,11 @@ impl AgentTool for CreateDirectoryTool {
    type Input = CreateDirectoryToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "create_directory".into()
+    fn name() -> &'static str {
+        "create_directory"
    }

-    fn kind(&self) -> ToolKind {
+    fn kind() -> ToolKind {
        ToolKind::Read
    }

--- a/crates/agent2/src/tools/delete_path_tool.rs
+++ b/crates/agent2/src/tools/delete_path_tool.rs
@@ -9,8 +9,7 @@ use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use std::sync::Arc;

-/// Deletes the file or directory (and the directory's contents, recursively) at
-/// the specified path in the project, and returns confirmation of the deletion.
+/// Deletes the file or directory (and the directory's contents, recursively) at the specified path in the project, and returns confirmation of the deletion.
 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct DeletePathToolInput {
    /// The path of the file or directory to delete.
@@ -45,11 +44,11 @@ impl AgentTool for DeletePathTool {
    type Input = DeletePathToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "delete_path".into()
+    fn name() -> &'static str {
+        "delete_path"
    }

-    fn kind(&self) -> ToolKind {
+    fn kind() -> ToolKind {
        ToolKind::Delete
    }

--- a/crates/agent2/src/tools/diagnostics_tool.rs
+++ b/crates/agent2/src/tools/diagnostics_tool.rs
@@ -63,11 +63,11 @@ impl AgentTool for DiagnosticsTool {
    type Input = DiagnosticsToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "diagnostics".into()
+    fn name() -> &'static str {
+        "diagnostics"
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Read
    }

--- a/crates/agent2/src/tools/edit_file_tool.rs
+++ b/crates/agent2/src/tools/edit_file_tool.rs
@@ -5,10 +5,10 @@ use anyhow::{Context as _, Result, anyhow};
 use assistant_tools::edit_agent::{EditAgent, EditAgentOutput, EditAgentOutputEvent, EditFormat};
 use cloud_llm_client::CompletionIntent;
 use collections::HashSet;
-use gpui::{App, AppContext, AsyncApp, Entity, Task};
+use gpui::{App, AppContext, AsyncApp, Entity, Task, WeakEntity};
 use indoc::formatdoc;
-use language::ToPoint;
 use language::language_settings::{self, FormatOnSave};
+use language::{LanguageRegistry, ToPoint};
 use language_model::LanguageModelToolResultContent;
 use paths;
 use project::lsp_store::{FormatTrigger, LspFormatTarget};
@@ -34,25 +34,21 @@ const DEFAULT_UI_TEXT: &str = "Editing file";
 ///    - Use the `list_directory` tool to verify the parent directory exists and is the correct location
 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct EditFileToolInput {
-    /// A one-line, user-friendly markdown description of the edit. This will be
-    /// shown in the UI and also passed to another model to perform the edit.
+    /// 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.
+    /// 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.
+    /// 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.
+    /// 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:
    /// - /a/b/backend
@@ -61,22 +57,19 @@ pub struct EditFileToolInput {
    /// <example>
    /// `backend/src/main.rs`
    ///
-    /// Notice how the file path starts with `backend`. Without that, the path
-    /// would be ambiguous and the call would fail!
+    /// Notice how the file path starts with `backend`. Without that, the path would be ambiguous and the call would fail!
    /// </example>
    ///
    /// <example>
    /// `frontend/db.js`
    /// </example>
    pub path: PathBuf,
-
    /// 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.
+    /// When a file already exists or you just created it, prefer editing it as opposed to recreating it from scratch.
    pub mode: EditFileMode,
 }

@@ -98,11 +91,13 @@ pub enum EditFileMode {

 #[derive(Debug, Serialize, Deserialize)]
 pub struct EditFileToolOutput {
+    #[serde(alias = "original_path")]
    input_path: PathBuf,
-    project_path: PathBuf,
    new_text: String,
    old_text: Arc<String>,
+    #[serde(default)]
    diff: String,
+    #[serde(alias = "raw_output")]
    edit_agent_output: EditAgentOutput,
 }

@@ -122,12 +117,16 @@ impl From<EditFileToolOutput> for LanguageModelToolResultContent {
 }

 pub struct EditFileTool {
-    thread: Entity<Thread>,
+    thread: WeakEntity<Thread>,
+    language_registry: Arc<LanguageRegistry>,
 }

 impl EditFileTool {
-    pub fn new(thread: Entity<Thread>) -> Self {
-        Self { thread }
+    pub fn new(thread: WeakEntity<Thread>, language_registry: Arc<LanguageRegistry>) -> Self {
+        Self {
+            thread,
+            language_registry,
+        }
    }

    fn authorize(
@@ -156,19 +155,22 @@ impl EditFileTool {

        // It's also possible that the global config dir is configured to be inside the project,
        // so check for that edge case too.
-        if let Ok(canonical_path) = std::fs::canonicalize(&input.path) {
-            if canonical_path.starts_with(paths::config_dir()) {
-                return event_stream.authorize(
-                    format!("{} (global settings)", input.display_description),
-                    cx,
-                );
-            }
+        if let Ok(canonical_path) = std::fs::canonicalize(&input.path)
+            && canonical_path.starts_with(paths::config_dir())
+        {
+            return event_stream.authorize(
+                format!("{} (global settings)", input.display_description),
+                cx,
+            );
        }

        // Check if path is inside the global config directory
        // First check if it's already inside project - if not, try to canonicalize
-        let thread = self.thread.read(cx);
-        let project_path = thread.project().read(cx).find_project_path(&input.path, cx);
+        let Ok(project_path) = self.thread.read_with(cx, |thread, cx| {
+            thread.project().read(cx).find_project_path(&input.path, cx)
+        }) else {
+            return Task::ready(Err(anyhow!("thread was dropped")));
+        };

        // If the path is inside the project, and it's not one of the above edge cases,
        // then no confirmation is necessary. Otherwise, confirmation is necessary.
@@ -184,11 +186,11 @@ impl AgentTool for EditFileTool {
    type Input = EditFileToolInput;
    type Output = EditFileToolOutput;

-    fn name(&self) -> SharedString {
-        "edit_file".into()
+    fn name() -> &'static str {
+        "edit_file"
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Edit
    }

@@ -221,7 +223,12 @@ impl AgentTool for EditFileTool {
        event_stream: ToolCallEventStream,
        cx: &mut App,
    ) -> Task<Result<Self::Output>> {
-        let project = self.thread.read(cx).project().clone();
+        let Ok(project) = self
+            .thread
+            .read_with(cx, |thread, _cx| thread.project().clone())
+        else {
+            return Task::ready(Err(anyhow!("thread was dropped")));
+        };
        let project_path = match resolve_path(&input, project.clone(), cx) {
            Ok(path) => path,
            Err(err) => return Task::ready(Err(anyhow!(err))),
@@ -237,23 +244,17 @@ impl AgentTool for EditFileTool {
            });
        }

-        let Some(request) = self.thread.update(cx, |thread, cx| {
-            thread
-                .build_completion_request(CompletionIntent::ToolResults, cx)
-                .ok()
-        }) else {
-            return Task::ready(Err(anyhow!("Failed to build completion request")));
-        };
-        let thread = self.thread.read(cx);
-        let Some(model) = thread.model().cloned() else {
-            return Task::ready(Err(anyhow!("No language model configured")));
-        };
-        let action_log = thread.action_log().clone();
-
        let authorize = self.authorize(&input, &event_stream, cx);
        cx.spawn(async move |cx: &mut AsyncApp| {
            authorize.await?;

+            let (request, model, action_log) = self.thread.update(cx, |thread, cx| {
+                let request = thread.build_completion_request(CompletionIntent::ToolResults, cx);
+                (request, thread.model().cloned(), thread.action_log().clone())
+            })?;
+            let request = request?;
+            let model = model.context("No language model configured")?;
+
            let edit_format = EditFormat::from_model(model.clone())?;
            let edit_agent = EditAgent::new(
                model,
@@ -419,14 +420,32 @@ impl AgentTool for EditFileTool {

            Ok(EditFileToolOutput {
                input_path: input.path,
-                project_path: project_path.path.to_path_buf(),
-                new_text: new_text.clone(),
+                new_text,
                old_text,
                diff: unified_diff,
                edit_agent_output,
            })
        })
    }
+
+    fn replay(
+        &self,
+        _input: Self::Input,
+        output: Self::Output,
+        event_stream: ToolCallEventStream,
+        cx: &mut App,
+    ) -> Result<()> {
+        event_stream.update_diff(cx.new(|cx| {
+            Diff::finalized(
+                output.input_path,
+                Some(output.old_text.to_string()),
+                output.new_text,
+                self.language_registry.clone(),
+                cx,
+            )
+        }));
+        Ok(())
+    }
 }

 /// Validate that the file path is valid, meaning:
@@ -498,7 +517,6 @@ fn resolve_path(
 mod tests {
    use super::*;
    use crate::{ContextServerRegistry, Templates};
-    use action_log::ActionLog;
    use client::TelemetrySettings;
    use fs::Fs;
    use gpui::{TestAppContext, UpdateGlobal};
@@ -515,7 +533,7 @@ mod tests {
        let fs = project::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 language_registry = project.read_with(cx, |project, _cx| project.languages().clone());
        let context_server_registry =
            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
        let model = Arc::new(FakeLanguageModel::default());
@@ -524,7 +542,6 @@ mod tests {
                project,
                cx.new(|_cx| ProjectContext::default()),
                context_server_registry,
-                action_log,
                Templates::new(),
                Some(model),
                cx,
@@ -537,7 +554,11 @@ mod tests {
                    path: "root/nonexistent_file.txt".into(),
                    mode: EditFileMode::Edit,
                };
-                Arc::new(EditFileTool { thread }).run(input, ToolCallEventStream::test().0, cx)
+                Arc::new(EditFileTool::new(thread.downgrade(), language_registry)).run(
+                    input,
+                    ToolCallEventStream::test().0,
+                    cx,
+                )
            })
            .await;
        assert_eq!(
@@ -624,8 +645,7 @@ mod tests {
            mode: mode.clone(),
        };

-        let result = cx.update(|cx| resolve_path(&input, project, cx));
-        result
+        cx.update(|cx| resolve_path(&input, project, cx))
    }

    fn assert_resolved_path_eq(path: anyhow::Result<ProjectPath>, expected: &str) {
@@ -712,7 +732,6 @@ mod tests {
            }
        });

-        let action_log = cx.new(|_| ActionLog::new(project.clone()));
        let context_server_registry =
            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
        let model = Arc::new(FakeLanguageModel::default());
@@ -721,7 +740,6 @@ mod tests {
                project,
                cx.new(|_cx| ProjectContext::default()),
                context_server_registry,
-                action_log.clone(),
                Templates::new(),
                Some(model.clone()),
                cx,
@@ -750,9 +768,10 @@ mod tests {
                    path: "root/src/main.rs".into(),
                    mode: EditFileMode::Overwrite,
                };
-                Arc::new(EditFileTool {
-                    thread: thread.clone(),
-                })
+                Arc::new(EditFileTool::new(
+                    thread.downgrade(),
+                    language_registry.clone(),
+                ))
                .run(input, ToolCallEventStream::test().0, cx)
            });

@@ -777,7 +796,9 @@ mod tests {
            "Code should be formatted when format_on_save is enabled"
        );

-        let stale_buffer_count = action_log.read_with(cx, |log, cx| log.stale_buffers(cx).count());
+        let stale_buffer_count = thread
+            .read_with(cx, |thread, _cx| thread.action_log.clone())
+            .read_with(cx, |log, cx| log.stale_buffers(cx).count());

        assert_eq!(
            stale_buffer_count, 0,
@@ -806,7 +827,11 @@ mod tests {
                    path: "root/src/main.rs".into(),
                    mode: EditFileMode::Overwrite,
                };
-                Arc::new(EditFileTool { thread }).run(input, ToolCallEventStream::test().0, cx)
+                Arc::new(EditFileTool::new(thread.downgrade(), language_registry)).run(
+                    input,
+                    ToolCallEventStream::test().0,
+                    cx,
+                )
            });

            // Stream the unformatted content
@@ -850,14 +875,13 @@ mod tests {
        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
        let context_server_registry =
            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+        let language_registry = project.read_with(cx, |project, _cx| project.languages().clone());
        let model = Arc::new(FakeLanguageModel::default());
        let thread = cx.new(|cx| {
            Thread::new(
                project,
                cx.new(|_cx| ProjectContext::default()),
                context_server_registry,
-                action_log.clone(),
                Templates::new(),
                Some(model.clone()),
                cx,
@@ -887,9 +911,10 @@ mod tests {
                    path: "root/src/main.rs".into(),
                    mode: EditFileMode::Overwrite,
                };
-                Arc::new(EditFileTool {
-                    thread: thread.clone(),
-                })
+                Arc::new(EditFileTool::new(
+                    thread.downgrade(),
+                    language_registry.clone(),
+                ))
                .run(input, ToolCallEventStream::test().0, cx)
            });

@@ -938,10 +963,11 @@ mod tests {
                    path: "root/src/main.rs".into(),
                    mode: EditFileMode::Overwrite,
                };
-                Arc::new(EditFileTool {
-                    thread: thread.clone(),
-                })
-                .run(input, ToolCallEventStream::test().0, cx)
+                Arc::new(EditFileTool::new(thread.downgrade(), language_registry)).run(
+                    input,
+                    ToolCallEventStream::test().0,
+                    cx,
+                )
            });

            // Stream the content with trailing whitespace
@@ -976,20 +1002,19 @@ mod tests {
        let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
        let context_server_registry =
            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+        let language_registry = project.read_with(cx, |project, _cx| project.languages().clone());
        let model = Arc::new(FakeLanguageModel::default());
        let thread = cx.new(|cx| {
            Thread::new(
                project,
                cx.new(|_cx| ProjectContext::default()),
                context_server_registry,
-                action_log.clone(),
                Templates::new(),
                Some(model.clone()),
                cx,
            )
        });
-        let tool = Arc::new(EditFileTool { thread });
+        let tool = Arc::new(EditFileTool::new(thread.downgrade(), language_registry));
        fs.insert_tree("/root", json!({})).await;

        // Test 1: Path with .zed component should require confirmation
@@ -1111,22 +1136,21 @@ mod tests {
        let fs = project::FakeFs::new(cx.executor());
        fs.insert_tree("/project", json!({})).await;
        let project = Project::test(fs.clone(), [path!("/project").as_ref()], cx).await;
+        let language_registry = project.read_with(cx, |project, _cx| project.languages().clone());
        let context_server_registry =
            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-        let action_log = cx.new(|_| ActionLog::new(project.clone()));
        let model = Arc::new(FakeLanguageModel::default());
        let thread = cx.new(|cx| {
            Thread::new(
                project,
                cx.new(|_cx| ProjectContext::default()),
                context_server_registry,
-                action_log.clone(),
                Templates::new(),
                Some(model.clone()),
                cx,
            )
        });
-        let tool = Arc::new(EditFileTool { thread });
+        let tool = Arc::new(EditFileTool::new(thread.downgrade(), language_registry));

        // Test global config paths - these should require confirmation if they exist and are outside the project
        let test_cases = vec![
@@ -1220,8 +1244,7 @@ mod tests {
            cx,
        )
        .await;
-
-        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+        let language_registry = project.read_with(cx, |project, _cx| project.languages().clone());
        let context_server_registry =
            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
        let model = Arc::new(FakeLanguageModel::default());
@@ -1230,13 +1253,12 @@ mod tests {
                project.clone(),
                cx.new(|_cx| ProjectContext::default()),
                context_server_registry.clone(),
-                action_log.clone(),
                Templates::new(),
                Some(model.clone()),
                cx,
            )
        });
-        let tool = Arc::new(EditFileTool { thread });
+        let tool = Arc::new(EditFileTool::new(thread.downgrade(), language_registry));

        // Test files in different worktrees
        let test_cases = vec![
@@ -1302,7 +1324,7 @@ mod tests {
        )
        .await;
        let project = Project::test(fs.clone(), [path!("/project").as_ref()], cx).await;
-        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+        let language_registry = project.read_with(cx, |project, _cx| project.languages().clone());
        let context_server_registry =
            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
        let model = Arc::new(FakeLanguageModel::default());
@@ -1311,13 +1333,12 @@ mod tests {
                project.clone(),
                cx.new(|_cx| ProjectContext::default()),
                context_server_registry.clone(),
-                action_log.clone(),
                Templates::new(),
                Some(model.clone()),
                cx,
            )
        });
-        let tool = Arc::new(EditFileTool { thread });
+        let tool = Arc::new(EditFileTool::new(thread.downgrade(), language_registry));

        // Test edge cases
        let test_cases = vec![
@@ -1386,7 +1407,7 @@ mod tests {
        )
        .await;
        let project = Project::test(fs.clone(), [path!("/project").as_ref()], cx).await;
-        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+        let language_registry = project.read_with(cx, |project, _cx| project.languages().clone());
        let context_server_registry =
            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
        let model = Arc::new(FakeLanguageModel::default());
@@ -1395,13 +1416,12 @@ mod tests {
                project.clone(),
                cx.new(|_cx| ProjectContext::default()),
                context_server_registry.clone(),
-                action_log.clone(),
                Templates::new(),
                Some(model.clone()),
                cx,
            )
        });
-        let tool = Arc::new(EditFileTool { thread });
+        let tool = Arc::new(EditFileTool::new(thread.downgrade(), language_registry));

        // Test different EditFileMode values
        let modes = vec![
@@ -1467,7 +1487,7 @@ mod tests {
        init_test(cx);
        let fs = project::FakeFs::new(cx.executor());
        let project = Project::test(fs.clone(), [path!("/project").as_ref()], cx).await;
-        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+        let language_registry = project.read_with(cx, |project, _cx| project.languages().clone());
        let context_server_registry =
            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
        let model = Arc::new(FakeLanguageModel::default());
@@ -1476,13 +1496,12 @@ mod tests {
                project.clone(),
                cx.new(|_cx| ProjectContext::default()),
                context_server_registry,
-                action_log.clone(),
                Templates::new(),
                Some(model.clone()),
                cx,
            )
        });
-        let tool = Arc::new(EditFileTool { thread });
+        let tool = Arc::new(EditFileTool::new(thread.downgrade(), language_registry));

        assert_eq!(
            tool.initial_title(Err(json!({
--- a/crates/agent2/src/tools/fetch_tool.rs
+++ b/crates/agent2/src/tools/fetch_tool.rs
@@ -118,11 +118,11 @@ impl AgentTool for FetchTool {
    type Input = FetchToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "fetch".into()
+    fn name() -> &'static str {
+        "fetch"
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Fetch
    }

--- a/crates/agent2/src/tools/find_path_tool.rs
+++ b/crates/agent2/src/tools/find_path_tool.rs
@@ -31,7 +31,6 @@ pub struct FindPathToolInput {
    /// You can get back the first two paths by providing a glob of "*thing*.txt"
    /// </example>
    pub glob: String,
-
    /// Optional starting position for paginated results (0-based).
    /// When not provided, starts from the beginning.
    #[serde(default)]
@@ -86,11 +85,11 @@ impl AgentTool for FindPathTool {
    type Input = FindPathToolInput;
    type Output = FindPathToolOutput;

-    fn name(&self) -> SharedString {
-        "find_path".into()
+    fn name() -> &'static str {
+        "find_path"
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Search
    }

@@ -116,7 +115,7 @@ impl AgentTool for FindPathTool {
                ..cmp::min(input.offset + RESULTS_PER_PAGE, matches.len())];

            event_stream.update_fields(acp::ToolCallUpdateFields {
-                title: Some(if paginated_matches.len() == 0 {
+                title: Some(if paginated_matches.is_empty() {
                    "No matches".into()
                } else if paginated_matches.len() == 1 {
                    "1 match".into()
--- a/crates/agent2/src/tools/grep_tool.rs
+++ b/crates/agent2/src/tools/grep_tool.rs
@@ -27,8 +27,7 @@ use util::paths::PathMatcher;
 /// - DO NOT use HTML entities solely to escape characters in the tool parameters.
 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct GrepToolInput {
-    /// A regex pattern to search for in the entire project. Note that the regex
-    /// will be parsed by the Rust `regex` crate.
+    /// A regex pattern to search for in the entire project. Note that the regex will be parsed by the Rust `regex` crate.
    ///
    /// Do NOT specify a path here! This will only be matched against the code **content**.
    pub regex: String,
@@ -68,11 +67,11 @@ impl AgentTool for GrepTool {
    type Input = GrepToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "grep".into()
+    fn name() -> &'static str {
+        "grep"
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Search
    }

@@ -179,15 +178,14 @@ impl AgentTool for GrepTool {
                // Check if this file should be excluded based on its worktree settings
                if let Ok(Some(project_path)) = project.read_with(cx, |project, cx| {
                    project.find_project_path(&path, cx)
-                }) {
-                    if cx.update(|cx| {
+                })
+                    && cx.update(|cx| {
                        let worktree_settings = WorktreeSettings::get(Some((&project_path).into()), cx);
                        worktree_settings.is_path_excluded(&project_path.path)
                            || worktree_settings.is_path_private(&project_path.path)
                    }).unwrap_or(false) {
                        continue;
                    }
-                }

                while *parse_status.borrow() != ParseStatus::Idle {
                    parse_status.changed().await?;
@@ -275,12 +273,11 @@ impl AgentTool for GrepTool {
                    output.extend(snapshot.text_for_range(range));
                    output.push_str("\n```\n");

-                    if let Some(ancestor_range) = ancestor_range {
-                        if end_row < ancestor_range.end.row {
+                    if let Some(ancestor_range) = ancestor_range
+                        && end_row < ancestor_range.end.row {
                            let remaining_lines = ancestor_range.end.row - end_row;
                            writeln!(output, "\n{} lines remaining in ancestor node. Read the file to see all.", remaining_lines)?;
                        }
-                    }

                    matches_found += 1;
                }
@@ -320,7 +317,7 @@ mod tests {
        init_test(cx);
        cx.executor().allow_parking();

-        let fs = FakeFs::new(cx.executor().clone());
+        let fs = FakeFs::new(cx.executor());
        fs.insert_tree(
            path!("/root"),
            serde_json::json!({
@@ -405,7 +402,7 @@ mod tests {
        init_test(cx);
        cx.executor().allow_parking();

-        let fs = FakeFs::new(cx.executor().clone());
+        let fs = FakeFs::new(cx.executor());
        fs.insert_tree(
            path!("/root"),
            serde_json::json!({
@@ -480,7 +477,7 @@ mod tests {
        init_test(cx);
        cx.executor().allow_parking();

-        let fs = FakeFs::new(cx.executor().clone());
+        let fs = FakeFs::new(cx.executor());

        // Create test file with syntax structures
        fs.insert_tree(
@@ -765,7 +762,7 @@ mod tests {
                if cfg!(windows) {
                    result.replace("root\\", "root/")
                } else {
-                    result.to_string()
+                    result
                }
            }
            Err(e) => panic!("Failed to run grep tool: {}", e),
--- a/crates/agent2/src/tools/list_directory_tool.rs
+++ b/crates/agent2/src/tools/list_directory_tool.rs
@@ -10,14 +10,12 @@ use std::fmt::Write;
 use std::{path::Path, sync::Arc};
 use util::markdown::MarkdownInlineCode;

-/// Lists files and directories in a given path. Prefer the `grep` or
-/// `find_path` tools when searching the codebase.
+/// Lists files and directories in a given path. Prefer the `grep` or `find_path` tools when searching the codebase.
 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct ListDirectoryToolInput {
    /// The fully-qualified path of the directory to list in the project.
    ///
-    /// This path should never be absolute, and the first component
-    /// of the path should always be a root directory in a project.
+    /// This path should never be absolute, and the first component of the path should always be a root directory in a project.
    ///
    /// <example>
    /// If the project has the following root directories:
@@ -53,11 +51,11 @@ impl AgentTool for ListDirectoryTool {
    type Input = ListDirectoryToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "list_directory".into()
+    fn name() -> &'static str {
+        "list_directory"
    }

-    fn kind(&self) -> ToolKind {
+    fn kind() -> ToolKind {
        ToolKind::Read
    }

--- a/crates/agent2/src/tools/move_path_tool.rs
+++ b/crates/agent2/src/tools/move_path_tool.rs
@@ -8,14 +8,11 @@ use serde::{Deserialize, Serialize};
 use std::{path::Path, sync::Arc};
 use util::markdown::MarkdownInlineCode;

-/// Moves or rename a file or directory in the project, and returns confirmation
-/// that the move succeeded.
+/// Moves or rename a file or directory in the project, and returns confirmation that the move succeeded.
 ///
-/// If the source and destination directories are the same, but the filename is
-/// different, this performs a rename. Otherwise, it performs a move.
+/// If the source and destination directories are the same, but the filename is different, this performs a rename. Otherwise, it performs a move.
 ///
-/// This tool should be used when it's desirable to move or rename a file or
-/// directory without changing its contents at all.
+/// This tool should be used when it's desirable to move or rename a file or directory without changing its contents at all.
 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct MovePathToolInput {
    /// The source path of the file or directory to move/rename.
@@ -55,11 +52,11 @@ impl AgentTool for MovePathTool {
    type Input = MovePathToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "move_path".into()
+    fn name() -> &'static str {
+        "move_path"
    }

-    fn kind(&self) -> ToolKind {
+    fn kind() -> ToolKind {
        ToolKind::Move
    }

--- a/crates/agent2/src/tools/now_tool.rs
+++ b/crates/agent2/src/tools/now_tool.rs
@@ -32,11 +32,11 @@ impl AgentTool for NowTool {
    type Input = NowToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "now".into()
+    fn name() -> &'static str {
+        "now"
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Other
    }

--- a/crates/agent2/src/tools/open_tool.rs
+++ b/crates/agent2/src/tools/open_tool.rs
@@ -8,19 +8,15 @@ use serde::{Deserialize, Serialize};
 use std::{path::PathBuf, sync::Arc};
 use util::markdown::MarkdownEscaped;

-/// This tool opens a file or URL with the default application associated with
-/// it on the user's operating system:
+/// This tool opens a file or URL with the default application associated with it on the user's operating system:
 ///
 /// - On macOS, it's equivalent to the `open` command
 /// - On Windows, it's equivalent to `start`
 /// - On Linux, it uses something like `xdg-open`, `gio open`, `gnome-open`, `kde-open`, `wslview` as appropriate
 ///
-/// For example, it can open a web browser with a URL, open a PDF file with the
-/// default PDF viewer, etc.
+/// For example, it can open a web browser with a URL, open a PDF file with the default PDF viewer, etc.
 ///
-/// You MUST ONLY use this tool when the user has explicitly requested opening
-/// something. You MUST NEVER assume that the user would like for you to use
-/// this tool.
+/// You MUST ONLY use this tool when the user has explicitly requested opening something. You MUST NEVER assume that the user would like for you to use this tool.
 #[derive(Clone, Debug, Serialize, Deserialize, JsonSchema)]
 pub struct OpenToolInput {
    /// The path or URL to open with the default application.
@@ -41,11 +37,11 @@ impl AgentTool for OpenTool {
    type Input = OpenToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "open".into()
+    fn name() -> &'static str {
+        "open"
    }

-    fn kind(&self) -> ToolKind {
+    fn kind() -> ToolKind {
        ToolKind::Execute
    }

--- a/crates/agent2/src/tools/read_file_tool.rs
+++ b/crates/agent2/src/tools/read_file_tool.rs
@@ -21,8 +21,7 @@ use crate::{AgentTool, ToolCallEventStream};
 pub struct ReadFileToolInput {
    /// The relative path of the file to read.
    ///
-    /// This path should never be absolute, and the first component
-    /// of the path should always be a root directory in a project.
+    /// This path should never be absolute, and the first component of the path should always be a root directory in a project.
    ///
    /// <example>
    /// If the project has the following root directories:
@@ -34,11 +33,9 @@ pub struct ReadFileToolInput {
    /// If you want to access `file.txt` in `directory2`, you should use the path `directory2/file.txt`.
    /// </example>
    pub path: String,
-
    /// Optional line number to start reading on (1-based index)
    #[serde(default)]
    pub start_line: Option<u32>,
-
    /// Optional line number to end reading on (1-based index, inclusive)
    #[serde(default)]
    pub end_line: Option<u32>,
@@ -62,11 +59,11 @@ impl AgentTool for ReadFileTool {
    type Input = ReadFileToolInput;
    type Output = LanguageModelToolResultContent;

-    fn name(&self) -> SharedString {
-        "read_file".into()
+    fn name() -> &'static str {
+        "read_file"
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Read
    }

@@ -175,7 +172,7 @@ impl AgentTool for ReadFileTool {
                buffer
                    .file()
                    .as_ref()
-                    .map_or(true, |file| !file.disk_state().exists())
+                    .is_none_or(|file| !file.disk_state().exists())
            })? {
                anyhow::bail!("{file_path} not found");
            }
--- a/crates/agent2/src/tools/terminal_tool.rs
+++ b/crates/agent2/src/tools/terminal_tool.rs
@@ -47,12 +47,9 @@ impl TerminalTool {
            }

            if which::which("bash").is_ok() {
-                log::info!("agent selected bash for terminal tool");
                "bash".into()
            } else {
-                let shell = get_system_shell();
-                log::info!("agent selected {shell} for terminal tool");
-                shell
+                get_system_shell()
            }
        });
        Self {
@@ -66,11 +63,11 @@ impl AgentTool for TerminalTool {
    type Input = TerminalToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "terminal".into()
+    fn name() -> &'static str {
+        "terminal"
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Execute
    }

@@ -237,7 +234,7 @@ fn process_content(
            if is_empty {
                "Command executed successfully.".to_string()
            } else {
-                content.to_string()
+                content
            }
        }
        Some(exit_status) => {
@@ -271,7 +268,7 @@ fn working_dir(
    let project = project.read(cx);
    let cd = &input.cd;

-    if cd == "." || cd == "" {
+    if cd == "." || cd.is_empty() {
        // Accept "." or "" as meaning "the one worktree" if we only have one worktree.
        let mut worktrees = project.worktrees(cx);

@@ -296,10 +293,8 @@ fn working_dir(
            {
                return Ok(Some(input_path.into()));
            }
-        } else {
-            if let Some(worktree) = project.worktree_for_root_name(cd, cx) {
-                return Ok(Some(worktree.read(cx).abs_path().to_path_buf()));
-            }
+        } else if let Some(worktree) = project.worktree_for_root_name(cd, cx) {
+            return Ok(Some(worktree.read(cx).abs_path().to_path_buf()));
        }

        anyhow::bail!("`cd` directory {cd:?} was not in any of the project's worktrees.");
@@ -319,7 +314,7 @@ mod tests {
    use theme::ThemeSettings;
    use util::test::TempTree;

-    use crate::AgentResponseEvent;
+    use crate::ThreadEvent;

    use super::*;

@@ -396,7 +391,7 @@ mod tests {
            });
            cx.run_until_parked();
            let event = stream_rx.try_next();
-            if let Ok(Some(Ok(AgentResponseEvent::ToolCallAuthorization(auth)))) = event {
+            if let Ok(Some(Ok(ThreadEvent::ToolCallAuthorization(auth)))) = event {
                auth.response.send(auth.options[0].id.clone()).unwrap();
            }

--- a/crates/agent2/src/tools/thinking_tool.rs
+++ b/crates/agent2/src/tools/thinking_tool.rs
@@ -11,8 +11,7 @@ use crate::{AgentTool, ToolCallEventStream};
 /// Use this tool when you need to work through complex problems, develop strategies, or outline approaches before taking action.
 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct ThinkingToolInput {
-    /// Content to think about. This should be a description of what to think about or
-    /// a problem to solve.
+    /// Content to think about. This should be a description of what to think about or a problem to solve.
    content: String,
 }

@@ -22,11 +21,11 @@ impl AgentTool for ThinkingTool {
    type Input = ThinkingToolInput;
    type Output = String;

-    fn name(&self) -> SharedString {
-        "thinking".into()
+    fn name() -> &'static str {
+        "thinking"
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Think
    }

--- a/crates/agent2/src/tools/web_search_tool.rs
+++ b/crates/agent2/src/tools/web_search_tool.rs
@@ -14,7 +14,7 @@ use ui::prelude::*;
 use web_search::WebSearchRegistry;

 /// Search the web for information using your query.
-/// Use this when you need real-time information, facts, or data that might not be in your training. \
+/// Use this when you need real-time information, facts, or data that might not be in your training.
 /// Results will include snippets and links from relevant web pages.
 #[derive(Debug, Serialize, Deserialize, JsonSchema)]
 pub struct WebSearchToolInput {
@@ -40,11 +40,11 @@ impl AgentTool for WebSearchTool {
    type Input = WebSearchToolInput;
    type Output = WebSearchToolOutput;

-    fn name(&self) -> SharedString {
-        "web_search".into()
+    fn name() -> &'static str {
+        "web_search"
    }

-    fn kind(&self) -> acp::ToolKind {
+    fn kind() -> acp::ToolKind {
        acp::ToolKind::Fetch
    }

@@ -80,33 +80,48 @@ impl AgentTool for WebSearchTool {
                }
            };

-            let result_text = if response.results.len() == 1 {
-                "1 result".to_string()
-            } else {
-                format!("{} results", response.results.len())
-            };
-            event_stream.update_fields(acp::ToolCallUpdateFields {
-                title: Some(format!("Searched the web: {result_text}")),
-                content: Some(
-                    response
-                        .results
-                        .iter()
-                        .map(|result| acp::ToolCallContent::Content {
-                            content: acp::ContentBlock::ResourceLink(acp::ResourceLink {
-                                name: result.title.clone(),
-                                uri: result.url.clone(),
-                                title: Some(result.title.clone()),
-                                description: Some(result.text.clone()),
-                                mime_type: None,
-                                annotations: None,
-                                size: None,
-                            }),
-                        })
-                        .collect(),
-                ),
-                ..Default::default()
-            });
+            emit_update(&response, &event_stream);
            Ok(WebSearchToolOutput(response))
        })
    }
+
+    fn replay(
+        &self,
+        _input: Self::Input,
+        output: Self::Output,
+        event_stream: ToolCallEventStream,
+        _cx: &mut App,
+    ) -> Result<()> {
+        emit_update(&output.0, &event_stream);
+        Ok(())
+    }
+}
+
+fn emit_update(response: &WebSearchResponse, event_stream: &ToolCallEventStream) {
+    let result_text = if response.results.len() == 1 {
+        "1 result".to_string()
+    } else {
+        format!("{} results", response.results.len())
+    };
+    event_stream.update_fields(acp::ToolCallUpdateFields {
+        title: Some(format!("Searched the web: {result_text}")),
+        content: Some(
+            response
+                .results
+                .iter()
+                .map(|result| acp::ToolCallContent::Content {
+                    content: acp::ContentBlock::ResourceLink(acp::ResourceLink {
+                        name: result.title.clone(),
+                        uri: result.url.clone(),
+                        title: Some(result.title.clone()),
+                        description: Some(result.text.clone()),
+                        mime_type: None,
+                        annotations: None,
+                        size: None,
+                    }),
+                })
+                .collect(),
+        ),
+        ..Default::default()
+    });
 }
--- a/crates/agent_servers/Cargo.toml
+++ b/crates/agent_servers/Cargo.toml
@@ -6,7 +6,7 @@ publish.workspace = true
 license = "GPL-3.0-or-later"

 [features]
-test-support = ["acp_thread/test-support", "gpui/test-support", "project/test-support"]
+test-support = ["acp_thread/test-support", "gpui/test-support", "project/test-support", "dep:env_logger", "fs", "client/test-support", "dep:gpui_tokio", "reqwest_client/test-support"]
 e2e = []

 [lints]
@@ -17,24 +17,32 @@ path = "src/agent_servers.rs"
 doctest = false

 [dependencies]
+acp_tools.workspace = true
 acp_thread.workspace = true
+action_log.workspace = true
 agent-client-protocol.workspace = true
 agent_settings.workspace = true
-agentic-coding-protocol.workspace = true
 anyhow.workspace = true
+client = { workspace = true, optional = true }
 collections.workspace = true
 context_server.workspace = true
+env_logger = { workspace = true, optional = true }
+fs = { workspace = true, optional = true }
 futures.workspace = true
 gpui.workspace = true
+gpui_tokio = { workspace = true, optional = true }
 indoc.workspace = true
 itertools.workspace = true
+language.workspace = true
 language_model.workspace = true
 language_models.workspace = true
 log.workspace = true
 paths.workspace = true
 project.workspace = true
 rand.workspace = true
+reqwest_client = { workspace = true, optional = true }
 schemars.workspace = true
+semver.workspace = true
 serde.workspace = true
 serde_json.workspace = true
 settings.workspace = true
@@ -54,8 +62,12 @@ libc.workspace = true
 nix.workspace = true

 [dev-dependencies]
+client = { workspace = true, features = ["test-support"] }
 env_logger.workspace = true
+fs.workspace = true
 language.workspace = true
 indoc.workspace = true
 acp_thread = { workspace = true, features = ["test-support"] }
 gpui = { workspace = true, features = ["test-support"] }
+gpui_tokio.workspace = true
+reqwest_client = { workspace = true, features = ["test-support"] }
--- a/crates/agent_servers/src/acp.rs
+++ b/crates/agent_servers/src/acp.rs
@@ -1,34 +1,391 @@
-use std::{path::Path, rc::Rc};
-
 use crate::AgentServerCommand;
 use acp_thread::AgentConnection;
-use anyhow::Result;
-use gpui::AsyncApp;
+use acp_tools::AcpConnectionRegistry;
+use action_log::ActionLog;
+use agent_client_protocol::{self as acp, Agent as _, ErrorCode};
+use anyhow::anyhow;
+use collections::HashMap;
+use futures::AsyncBufReadExt as _;
+use futures::channel::oneshot;
+use futures::io::BufReader;
+use project::Project;
+use serde::Deserialize;
+use std::{any::Any, cell::RefCell};
+use std::{path::Path, rc::Rc};
 use thiserror::Error;

-mod v0;
-mod v1;
+use anyhow::{Context as _, Result};
+use gpui::{App, AppContext as _, AsyncApp, Entity, SharedString, Task, WeakEntity};
+
+use acp_thread::{AcpThread, AuthRequired, LoadError};

 #[derive(Debug, Error)]
 #[error("Unsupported version")]
 pub struct UnsupportedVersion;

+pub struct AcpConnection {
+    server_name: SharedString,
+    connection: Rc<acp::ClientSideConnection>,
+    sessions: Rc<RefCell<HashMap<acp::SessionId, AcpSession>>>,
+    auth_methods: Vec<acp::AuthMethod>,
+    prompt_capabilities: acp::PromptCapabilities,
+    _io_task: Task<Result<()>>,
+}
+
+pub struct AcpSession {
+    thread: WeakEntity<AcpThread>,
+    suppress_abort_err: bool,
+}
+
 pub async fn connect(
-    server_name: &'static str,
+    server_name: SharedString,
    command: AgentServerCommand,
    root_dir: &Path,
    cx: &mut AsyncApp,
 ) -> Result<Rc<dyn AgentConnection>> {
-    let conn = v1::AcpConnection::stdio(server_name, command.clone(), root_dir, cx).await;
+    let conn = AcpConnection::stdio(server_name, command.clone(), root_dir, cx).await?;
+    Ok(Rc::new(conn) as _)
+}

-    match conn {
-        Ok(conn) => Ok(Rc::new(conn) as _),
-        Err(err) if err.is::<UnsupportedVersion>() => {
-            // Consider re-using initialize response and subprocess when adding another version here
-            let conn: Rc<dyn AgentConnection> =
-                Rc::new(v0::AcpConnection::stdio(server_name, command, root_dir, cx).await?);
-            Ok(conn)
+const MINIMUM_SUPPORTED_VERSION: acp::ProtocolVersion = acp::V1;
+
+impl AcpConnection {
+    pub async fn stdio(
+        server_name: SharedString,
+        command: AgentServerCommand,
+        root_dir: &Path,
+        cx: &mut AsyncApp,
+    ) -> Result<Self> {
+        let mut child = util::command::new_smol_command(&command.path)
+            .args(command.args.iter().map(|arg| arg.as_str()))
+            .envs(command.env.iter().flatten())
+            .current_dir(root_dir)
+            .stdin(std::process::Stdio::piped())
+            .stdout(std::process::Stdio::piped())
+            .stderr(std::process::Stdio::piped())
+            .kill_on_drop(true)
+            .spawn()?;
+
+        let stdout = child.stdout.take().context("Failed to take stdout")?;
+        let stdin = child.stdin.take().context("Failed to take stdin")?;
+        let stderr = child.stderr.take().context("Failed to take stderr")?;
+        log::trace!("Spawned (pid: {})", child.id());
+
+        let sessions = Rc::new(RefCell::new(HashMap::default()));
+
+        let client = ClientDelegate {
+            sessions: sessions.clone(),
+            cx: cx.clone(),
+        };
+        let (connection, io_task) = acp::ClientSideConnection::new(client, stdin, stdout, {
+            let foreground_executor = cx.foreground_executor().clone();
+            move |fut| {
+                foreground_executor.spawn(fut).detach();
+            }
+        });
+
+        let io_task = cx.background_spawn(io_task);
+
+        cx.background_spawn(async move {
+            let mut stderr = BufReader::new(stderr);
+            let mut line = String::new();
+            while let Ok(n) = stderr.read_line(&mut line).await
+                && n > 0
+            {
+                log::warn!("agent stderr: {}", &line);
+                line.clear();
+            }
+        })
+        .detach();
+
+        cx.spawn({
+            let sessions = sessions.clone();
+            async move |cx| {
+                let status = child.status().await?;
+
+                for session in sessions.borrow().values() {
+                    session
+                        .thread
+                        .update(cx, |thread, cx| {
+                            thread.emit_load_error(LoadError::Exited { status }, cx)
+                        })
+                        .ok();
+                }
+
+                anyhow::Ok(())
+            }
+        })
+        .detach();
+
+        let connection = Rc::new(connection);
+
+        cx.update(|cx| {
+            AcpConnectionRegistry::default_global(cx).update(cx, |registry, cx| {
+                registry.set_active_connection(server_name.clone(), &connection, cx)
+            });
+        })?;
+
+        let response = connection
+            .initialize(acp::InitializeRequest {
+                protocol_version: acp::VERSION,
+                client_capabilities: acp::ClientCapabilities {
+                    fs: acp::FileSystemCapability {
+                        read_text_file: true,
+                        write_text_file: true,
+                    },
+                },
+            })
+            .await?;
+
+        if response.protocol_version < MINIMUM_SUPPORTED_VERSION {
+            return Err(UnsupportedVersion.into());
        }
-        Err(err) => Err(err),
+
+        Ok(Self {
+            auth_methods: response.auth_methods,
+            connection,
+            server_name,
+            sessions,
+            prompt_capabilities: response.agent_capabilities.prompt_capabilities,
+            _io_task: io_task,
+        })
+    }
+}
+
+impl AgentConnection for AcpConnection {
+    fn new_thread(
+        self: Rc<Self>,
+        project: Entity<Project>,
+        cwd: &Path,
+        cx: &mut App,
+    ) -> Task<Result<Entity<AcpThread>>> {
+        let conn = self.connection.clone();
+        let sessions = self.sessions.clone();
+        let cwd = cwd.to_path_buf();
+        cx.spawn(async move |cx| {
+            let response = conn
+                .new_session(acp::NewSessionRequest {
+                    mcp_servers: vec![],
+                    cwd,
+                })
+                .await
+                .map_err(|err| {
+                    if err.code == acp::ErrorCode::AUTH_REQUIRED.code {
+                        let mut error = AuthRequired::new();
+
+                        if err.message != acp::ErrorCode::AUTH_REQUIRED.message {
+                            error = error.with_description(err.message);
+                        }
+
+                        anyhow!(error)
+                    } else {
+                        anyhow!(err)
+                    }
+                })?;
+
+            let session_id = response.session_id;
+            let action_log = cx.new(|_| ActionLog::new(project.clone()))?;
+            let thread = cx.new(|_cx| {
+                AcpThread::new(
+                    self.server_name.clone(),
+                    self.clone(),
+                    project,
+                    action_log,
+                    session_id.clone(),
+                )
+            })?;
+
+            let session = AcpSession {
+                thread: thread.downgrade(),
+                suppress_abort_err: false,
+            };
+            sessions.borrow_mut().insert(session_id, session);
+
+            Ok(thread)
+        })
+    }
+
+    fn auth_methods(&self) -> &[acp::AuthMethod] {
+        &self.auth_methods
+    }
+
+    fn authenticate(&self, method_id: acp::AuthMethodId, cx: &mut App) -> Task<Result<()>> {
+        let conn = self.connection.clone();
+        cx.foreground_executor().spawn(async move {
+            let result = conn
+                .authenticate(acp::AuthenticateRequest {
+                    method_id: method_id.clone(),
+                })
+                .await?;
+
+            Ok(result)
+        })
+    }
+
+    fn prompt(
+        &self,
+        _id: Option<acp_thread::UserMessageId>,
+        params: acp::PromptRequest,
+        cx: &mut App,
+    ) -> Task<Result<acp::PromptResponse>> {
+        let conn = self.connection.clone();
+        let sessions = self.sessions.clone();
+        let session_id = params.session_id.clone();
+        cx.foreground_executor().spawn(async move {
+            let result = conn.prompt(params).await;
+
+            let mut suppress_abort_err = false;
+
+            if let Some(session) = sessions.borrow_mut().get_mut(&session_id) {
+                suppress_abort_err = session.suppress_abort_err;
+                session.suppress_abort_err = false;
+            }
+
+            match result {
+                Ok(response) => Ok(response),
+                Err(err) => {
+                    if err.code != ErrorCode::INTERNAL_ERROR.code {
+                        anyhow::bail!(err)
+                    }
+
+                    let Some(data) = &err.data else {
+                        anyhow::bail!(err)
+                    };
+
+                    // Temporary workaround until the following PR is generally available:
+                    // https://github.com/google-gemini/gemini-cli/pull/6656
+
+                    #[derive(Deserialize)]
+                    #[serde(deny_unknown_fields)]
+                    struct ErrorDetails {
+                        details: Box<str>,
+                    }
+
+                    match serde_json::from_value(data.clone()) {
+                        Ok(ErrorDetails { details }) => {
+                            if suppress_abort_err && details.contains("This operation was aborted")
+                            {
+                                Ok(acp::PromptResponse {
+                                    stop_reason: acp::StopReason::Cancelled,
+                                })
+                            } else {
+                                Err(anyhow!(details))
+                            }
+                        }
+                        Err(_) => Err(anyhow!(err)),
+                    }
+                }
+            }
+        })
+    }
+
+    fn prompt_capabilities(&self) -> acp::PromptCapabilities {
+        self.prompt_capabilities
+    }
+
+    fn cancel(&self, session_id: &acp::SessionId, cx: &mut App) {
+        if let Some(session) = self.sessions.borrow_mut().get_mut(session_id) {
+            session.suppress_abort_err = true;
+        }
+        let conn = self.connection.clone();
+        let params = acp::CancelNotification {
+            session_id: session_id.clone(),
+        };
+        cx.foreground_executor()
+            .spawn(async move { conn.cancel(params).await })
+            .detach();
+    }
+
+    fn into_any(self: Rc<Self>) -> Rc<dyn Any> {
+        self
+    }
+}
+
+struct ClientDelegate {
+    sessions: Rc<RefCell<HashMap<acp::SessionId, AcpSession>>>,
+    cx: AsyncApp,
+}
+
+impl acp::Client for ClientDelegate {
+    async fn request_permission(
+        &self,
+        arguments: acp::RequestPermissionRequest,
+    ) -> Result<acp::RequestPermissionResponse, acp::Error> {
+        let cx = &mut self.cx.clone();
+        let rx = self
+            .sessions
+            .borrow()
+            .get(&arguments.session_id)
+            .context("Failed to get session")?
+            .thread
+            .update(cx, |thread, cx| {
+                thread.request_tool_call_authorization(arguments.tool_call, arguments.options, cx)
+            })?;
+
+        let result = rx?.await;
+
+        let outcome = match result {
+            Ok(option) => acp::RequestPermissionOutcome::Selected { option_id: option },
+            Err(oneshot::Canceled) => acp::RequestPermissionOutcome::Cancelled,
+        };
+
+        Ok(acp::RequestPermissionResponse { outcome })
+    }
+
+    async fn write_text_file(
+        &self,
+        arguments: acp::WriteTextFileRequest,
+    ) -> Result<(), acp::Error> {
+        let cx = &mut self.cx.clone();
+        let task = self
+            .sessions
+            .borrow()
+            .get(&arguments.session_id)
+            .context("Failed to get session")?
+            .thread
+            .update(cx, |thread, cx| {
+                thread.write_text_file(arguments.path, arguments.content, cx)
+            })?;
+
+        task.await?;
+
+        Ok(())
+    }
+
+    async fn read_text_file(
+        &self,
+        arguments: acp::ReadTextFileRequest,
+    ) -> Result<acp::ReadTextFileResponse, acp::Error> {
+        let cx = &mut self.cx.clone();
+        let task = self
+            .sessions
+            .borrow()
+            .get(&arguments.session_id)
+            .context("Failed to get session")?
+            .thread
+            .update(cx, |thread, cx| {
+                thread.read_text_file(arguments.path, arguments.line, arguments.limit, false, cx)
+            })?;
+
+        let content = task.await?;
+
+        Ok(acp::ReadTextFileResponse { content })
+    }
+
+    async fn session_notification(
+        &self,
+        notification: acp::SessionNotification,
+    ) -> Result<(), acp::Error> {
+        let cx = &mut self.cx.clone();
+        let sessions = self.sessions.borrow();
+        let session = sessions
+            .get(&notification.session_id)
+            .context("Failed to get session")?;
+
+        session.thread.update(cx, |thread, cx| {
+            thread.handle_session_update(notification.update, cx)
+        })??;
+
+        Ok(())
    }
 }
--- a/crates/agent_servers/src/acp/v0.rs
+++ b/crates/agent_servers/src/acp/v0.rs
@@ -1,4 +1,5 @@
 // Translates old acp agents into the new schema
+use action_log::ActionLog;
 use agent_client_protocol as acp;
 use agentic_coding_protocol::{self as acp_old, AgentRequest as _};
 use anyhow::{Context as _, Result, anyhow};
@@ -148,7 +149,7 @@ impl acp_old::Client for OldAcpClientDelegate {

        Ok(acp_old::RequestToolCallConfirmationResponse {
            id: acp_old::ToolCallId(old_acp_id),
-            outcome: outcome,
+            outcome,
        })
    }

@@ -265,7 +266,7 @@ impl acp_old::Client for OldAcpClientDelegate {

 fn into_new_tool_call(id: acp::ToolCallId, request: acp_old::PushToolCallParams) -> acp::ToolCall {
    acp::ToolCall {
-        id: id,
+        id,
        title: request.label,
        kind: acp_kind_from_old_icon(request.icon),
        status: acp::ToolCallStatus::InProgress,
@@ -443,7 +444,8 @@ impl AgentConnection for AcpConnection {
            cx.update(|cx| {
                let thread = cx.new(|cx| {
                    let session_id = acp::SessionId("acp-old-no-id".into());
-                    AcpThread::new(self.name, self.clone(), project, session_id, cx)
+                    let action_log = cx.new(|_| ActionLog::new(project.clone()));
+                    AcpThread::new(self.name, self.clone(), project, action_log, session_id)
                });
                current_thread.replace(thread.downgrade());
                thread
@@ -496,6 +498,14 @@ impl AgentConnection for AcpConnection {
        })
    }

+    fn prompt_capabilities(&self) -> acp::PromptCapabilities {
+        acp::PromptCapabilities {
+            image: false,
+            audio: false,
+            embedded_context: false,
+        }
+    }
+
    fn cancel(&self, _session_id: &acp::SessionId, cx: &mut App) {
        let task = self
            .connection
--- a/crates/agent_servers/src/acp/v1.rs
+++ b/crates/agent_servers/src/acp/v1.rs
@@ -1,10 +1,13 @@
-use agent_client_protocol::{self as acp, Agent as _};
+use acp_tools::AcpConnectionRegistry;
+use action_log::ActionLog;
+use agent_client_protocol::{self as acp, Agent as _, ErrorCode};
 use anyhow::anyhow;
 use collections::HashMap;
 use futures::AsyncBufReadExt as _;
 use futures::channel::oneshot;
 use futures::io::BufReader;
 use project::Project;
+use serde::Deserialize;
 use std::path::Path;
 use std::rc::Rc;
 use std::{any::Any, cell::RefCell};
@@ -13,18 +16,20 @@ use anyhow::{Context as _, Result};
 use gpui::{App, AppContext as _, AsyncApp, Entity, Task, WeakEntity};

 use crate::{AgentServerCommand, acp::UnsupportedVersion};
-use acp_thread::{AcpThread, AgentConnection, AuthRequired};
+use acp_thread::{AcpThread, AgentConnection, AuthRequired, LoadError};

 pub struct AcpConnection {
    server_name: &'static str,
    connection: Rc<acp::ClientSideConnection>,
    sessions: Rc<RefCell<HashMap<acp::SessionId, AcpSession>>>,
    auth_methods: Vec<acp::AuthMethod>,
+    prompt_capabilities: acp::PromptCapabilities,
    _io_task: Task<Result<()>>,
 }

 pub struct AcpSession {
    thread: WeakEntity<AcpThread>,
+    suppress_abort_err: bool,
 }

 const MINIMUM_SUPPORTED_VERSION: acp::ProtocolVersion = acp::V1;
@@ -86,7 +91,9 @@ impl AcpConnection {
                for session in sessions.borrow().values() {
                    session
                        .thread
-                        .update(cx, |thread, cx| thread.emit_server_exited(status, cx))
+                        .update(cx, |thread, cx| {
+                            thread.emit_load_error(LoadError::Exited { status }, cx)
+                        })
                        .ok();
                }

@@ -95,6 +102,14 @@ impl AcpConnection {
        })
        .detach();

+        let connection = Rc::new(connection);
+
+        cx.update(|cx| {
+            AcpConnectionRegistry::default_global(cx).update(cx, |registry, cx| {
+                registry.set_active_connection(server_name, &connection, cx)
+            });
+        })?;
+
        let response = connection
            .initialize(acp::InitializeRequest {
                protocol_version: acp::VERSION,
@@ -113,9 +128,10 @@ impl AcpConnection {

        Ok(Self {
            auth_methods: response.auth_methods,
-            connection: connection.into(),
+            connection,
            server_name,
            sessions,
+            prompt_capabilities: response.agent_capabilities.prompt_capabilities,
            _io_task: io_task,
        })
    }
@@ -153,19 +169,20 @@ impl AgentConnection for AcpConnection {
                })?;

            let session_id = response.session_id;
-
-            let thread = cx.new(|cx| {
+            let action_log = cx.new(|_| ActionLog::new(project.clone()))?;
+            let thread = cx.new(|_cx| {
                AcpThread::new(
                    self.server_name,
                    self.clone(),
                    project,
+                    action_log,
                    session_id.clone(),
-                    cx,
                )
            })?;

            let session = AcpSession {
                thread: thread.downgrade(),
+                suppress_abort_err: false,
            };
            sessions.borrow_mut().insert(session_id, session);

@@ -197,13 +214,64 @@ impl AgentConnection for AcpConnection {
        cx: &mut App,
    ) -> Task<Result<acp::PromptResponse>> {
        let conn = self.connection.clone();
+        let sessions = self.sessions.clone();
+        let session_id = params.session_id.clone();
        cx.foreground_executor().spawn(async move {
-            let response = conn.prompt(params).await?;
-            Ok(response)
+            let result = conn.prompt(params).await;
+
+            let mut suppress_abort_err = false;
+
+            if let Some(session) = sessions.borrow_mut().get_mut(&session_id) {
+                suppress_abort_err = session.suppress_abort_err;
+                session.suppress_abort_err = false;
+            }
+
+            match result {
+                Ok(response) => Ok(response),
+                Err(err) => {
+                    if err.code != ErrorCode::INTERNAL_ERROR.code {
+                        anyhow::bail!(err)
+                    }
+
+                    let Some(data) = &err.data else {
+                        anyhow::bail!(err)
+                    };
+
+                    // Temporary workaround until the following PR is generally available:
+                    // https://github.com/google-gemini/gemini-cli/pull/6656
+
+                    #[derive(Deserialize)]
+                    #[serde(deny_unknown_fields)]
+                    struct ErrorDetails {
+                        details: Box<str>,
+                    }
+
+                    match serde_json::from_value(data.clone()) {
+                        Ok(ErrorDetails { details }) => {
+                            if suppress_abort_err && details.contains("This operation was aborted")
+                            {
+                                Ok(acp::PromptResponse {
+                                    stop_reason: acp::StopReason::Cancelled,
+                                })
+                            } else {
+                                Err(anyhow!(details))
+                            }
+                        }
+                        Err(_) => Err(anyhow!(err)),
+                    }
+                }
+            }
        })
    }

+    fn prompt_capabilities(&self) -> acp::PromptCapabilities {
+        self.prompt_capabilities
+    }
+
    fn cancel(&self, session_id: &acp::SessionId, cx: &mut App) {
+        if let Some(session) = self.sessions.borrow_mut().get_mut(session_id) {
+            session.suppress_abort_err = true;
+        }
        let conn = self.connection.clone();
        let params = acp::CancelNotification {
            session_id: session_id.clone(),
@@ -243,7 +311,7 @@ impl acp::Client for ClientDelegate {

        let outcome = match result {
            Ok(option) => acp::RequestPermissionOutcome::Selected { option_id: option },
-            Err(oneshot::Canceled) => acp::RequestPermissionOutcome::Canceled,
+            Err(oneshot::Canceled) => acp::RequestPermissionOutcome::Cancelled,
        };

        Ok(acp::RequestPermissionResponse { outcome })
--- a/crates/agent_servers/src/agent_servers.rs
+++ b/crates/agent_servers/src/agent_servers.rs
@@ -1,12 +1,14 @@
 mod acp;
 mod claude;
+mod custom;
 mod gemini;
 mod settings;

-#[cfg(test)]
-mod e2e_tests;
+#[cfg(any(test, feature = "test-support"))]
+pub mod e2e_tests;

 pub use claude::*;
+pub use custom::*;
 pub use gemini::*;
 pub use settings::*;

@@ -31,9 +33,9 @@ pub fn init(cx: &mut App) {

 pub trait AgentServer: Send {
    fn logo(&self) -> ui::IconName;
-    fn name(&self) -> &'static str;
-    fn empty_state_headline(&self) -> &'static str;
-    fn empty_state_message(&self) -> &'static str;
+    fn name(&self) -> SharedString;
+    fn empty_state_headline(&self) -> SharedString;
+    fn empty_state_message(&self) -> SharedString;

    fn connect(
        &self,
@@ -104,7 +106,7 @@ impl AgentServerCommand {
        cx: &mut AsyncApp,
    ) -> Option<Self> {
        if let Some(agent_settings) = settings {
-            return Some(Self {
+            Some(Self {
                path: agent_settings.command.path,
                args: agent_settings
                    .command
@@ -113,7 +115,7 @@ impl AgentServerCommand {
                    .chain(extra_args.iter().map(|arg| arg.to_string()))
                    .collect(),
                env: agent_settings.command.env,
-            });
+            })
        } else {
            match find_bin_in_path(path_bin_name, project, cx).await {
                Some(path) => Some(Self {
--- a/crates/agent_servers/src/claude.rs
+++ b/crates/agent_servers/src/claude.rs
@@ -1,6 +1,11 @@
+mod edit_tool;
 mod mcp_server;
+mod permission_tool;
+mod read_tool;
 pub mod tools;
+mod write_tool;

+use action_log::ActionLog;
 use collections::HashMap;
 use context_server::listener::McpServerTool;
 use language_models::provider::anthropic::AnthropicLanguageModelProvider;
@@ -10,8 +15,9 @@ use smol::process::Child;
 use std::any::Any;
 use std::cell::RefCell;
 use std::fmt::Display;
-use std::path::Path;
+use std::path::{Path, PathBuf};
 use std::rc::Rc;
+use util::command::new_smol_command;
 use uuid::Uuid;

 use agent_client_protocol as acp;
@@ -24,29 +30,29 @@ use futures::{
    io::BufReader,
    select_biased,
 };
-use gpui::{App, AppContext, AsyncApp, Entity, Task, WeakEntity};
+use gpui::{App, AppContext, AsyncApp, Entity, SharedString, Task, WeakEntity};
 use serde::{Deserialize, Serialize};
 use util::{ResultExt, debug_panic};

 use crate::claude::mcp_server::{ClaudeZedMcpServer, McpConfig};
 use crate::claude::tools::ClaudeTool;
 use crate::{AgentServer, AgentServerCommand, AllAgentServersSettings};
-use acp_thread::{AcpThread, AgentConnection, AuthRequired};
+use acp_thread::{AcpThread, AgentConnection, AuthRequired, LoadError, MentionUri};

 #[derive(Clone)]
 pub struct ClaudeCode;

 impl AgentServer for ClaudeCode {
-    fn name(&self) -> &'static str {
-        "Claude Code"
+    fn name(&self) -> SharedString {
+        "Claude Code".into()
    }

-    fn empty_state_headline(&self) -> &'static str {
+    fn empty_state_headline(&self) -> SharedString {
        self.name()
    }

-    fn empty_state_message(&self) -> &'static str {
-        "How can I help you today?"
+    fn empty_state_message(&self) -> SharedString {
+        "How can I help you today?".into()
    }

    fn logo(&self) -> ui::IconName {
@@ -98,7 +104,11 @@ impl AgentConnection for ClaudeAgentConnection {
            )
            .await
            else {
-                anyhow::bail!("Failed to find claude binary");
+                return Err(LoadError::NotInstalled {
+                    error_message: "Failed to find Claude Code binary".into(),
+                    install_message: "Install Claude Code".into(),
+                    install_command: "npm install -g @anthropic-ai/claude-code@latest".into(),
+                }.into());
            };

            let api_key =
@@ -203,20 +213,50 @@ impl AgentConnection for ClaudeAgentConnection {
                        .await
                    }

-                    if let Some(status) = child.status().await.log_err() {
-                        if let Some(thread) = thread_rx.recv().await.ok() {
-                            thread
-                                .update(cx, |thread, cx| {
-                                    thread.emit_server_exited(status, cx);
-                                })
-                                .ok();
-                        }
+                    if let Some(status) = child.status().await.log_err()
+                        && let Some(thread) = thread_rx.recv().await.ok()
+                    {
+                        let version = claude_version(command.path.clone(), cx).await.log_err();
+                        let help = claude_help(command.path.clone(), cx).await.log_err();
+                        thread
+                            .update(cx, |thread, cx| {
+                                let error = if let Some(version) = version
+                                    && let Some(help) = help
+                                    && (!help.contains("--input-format")
+                                        || !help.contains("--session-id"))
+                                {
+                                    LoadError::Unsupported {
+                                    error_message: format!(
+                                            "Your installed version of Claude Code ({}, version {}) does not have required features for use with Zed.",
+                                            command.path.to_string_lossy(),
+                                            version,
+                                        )
+                                        .into(),
+                                        upgrade_message: "Upgrade Claude Code to latest".into(),
+                                        upgrade_command: format!(
+                                            "{} update",
+                                            command.path.to_string_lossy()
+                                        ),
+                                    }
+                                } else {
+                                    LoadError::Exited { status }
+                                };
+                                thread.emit_load_error(error, cx);
+                            })
+                            .ok();
                    }
                }
            });

-            let thread = cx.new(|cx| {
-                AcpThread::new("Claude Code", self.clone(), project, session_id.clone(), cx)
+            let action_log = cx.new(|_| ActionLog::new(project.clone()))?;
+            let thread = cx.new(|_cx| {
+                AcpThread::new(
+                    "Claude Code",
+                    self.clone(),
+                    project,
+                    action_log,
+                    session_id.clone(),
+                )
            })?;

            thread_tx.send(thread.downgrade())?;
@@ -259,27 +299,12 @@ impl AgentConnection for ClaudeAgentConnection {
        let (end_tx, end_rx) = oneshot::channel();
        session.turn_state.replace(TurnState::InProgress { end_tx });

-        let mut content = String::new();
-        for chunk in params.prompt {
-            match chunk {
-                acp::ContentBlock::Text(text_content) => {
-                    content.push_str(&text_content.text);
-                }
-                acp::ContentBlock::ResourceLink(resource_link) => {
-                    content.push_str(&format!("@{}", resource_link.uri));
-                }
-                acp::ContentBlock::Audio(_)
-                | acp::ContentBlock::Image(_)
-                | acp::ContentBlock::Resource(_) => {
-                    // TODO
-                }
-            }
-        }
+        let content = acp_content_to_claude(params.prompt);

        if let Err(err) = session.outgoing_tx.unbounded_send(SdkMessage::User {
            message: Message {
                role: Role::User,
-                content: Content::UntaggedText(content),
+                content: Content::Chunks(content),
                id: None,
                model: None,
                stop_reason: None,
@@ -294,6 +319,14 @@ impl AgentConnection for ClaudeAgentConnection {
        cx.foreground_executor().spawn(async move { end_rx.await? })
    }

+    fn prompt_capabilities(&self) -> acp::PromptCapabilities {
+        acp::PromptCapabilities {
+            image: true,
+            audio: false,
+            embedded_context: true,
+        }
+    }
+
    fn cancel(&self, session_id: &acp::SessionId, _cx: &mut App) {
        let sessions = self.sessions.borrow();
        let Some(session) = sessions.get(session_id) else {
@@ -358,18 +391,16 @@ fn spawn_claude(
            &format!(
                "mcp__{}__{}",
                mcp_server::SERVER_NAME,
-                mcp_server::PermissionTool::NAME,
+                permission_tool::PermissionTool::NAME,
            ),
            "--allowedTools",
            &format!(
-                "mcp__{}__{},mcp__{}__{}",
+                "mcp__{}__{}",
                mcp_server::SERVER_NAME,
-                mcp_server::EditTool::NAME,
-                mcp_server::SERVER_NAME,
-                mcp_server::ReadTool::NAME
+                read_tool::ReadTool::NAME
            ),
            "--disallowedTools",
-            "Read,Edit",
+            "Read,Write,Edit,MultiEdit",
        ])
        .args(match mode {
            ClaudeSessionMode::Start => ["--session-id".to_string(), session_id.to_string()],
@@ -388,6 +419,27 @@ fn spawn_claude(
    Ok(child)
 }

+fn claude_version(path: PathBuf, cx: &mut AsyncApp) -> Task<Result<semver::Version>> {
+    cx.background_spawn(async move {
+        let output = new_smol_command(path).arg("--version").output().await?;
+        let output = String::from_utf8(output.stdout)?;
+        let version = output
+            .trim()
+            .strip_suffix(" (Claude Code)")
+            .context("parsing Claude version")?;
+        let version = semver::Version::parse(version)?;
+        anyhow::Ok(version)
+    })
+}
+
+fn claude_help(path: PathBuf, cx: &mut AsyncApp) -> Task<Result<String>> {
+    cx.background_spawn(async move {
+        let output = new_smol_command(path).arg("--help").output().await?;
+        let output = String::from_utf8(output.stdout)?;
+        anyhow::Ok(output)
+    })
+}
+
 struct ClaudeAgentSession {
    outgoing_tx: UnboundedSender<SdkMessage>,
    turn_state: Rc<RefCell<TurnState>>,
@@ -477,9 +529,16 @@ impl ClaudeAgentSession {
                            let content = content.to_string();
                            thread
                                .update(cx, |thread, cx| {
+                                    let id = acp::ToolCallId(tool_use_id.into());
+                                    let set_new_content = !content.is_empty()
+                                        && thread.tool_call(&id).is_none_or(|(_, tool_call)| {
+                                            // preserve rich diff if we have one
+                                            tool_call.diffs().next().is_none()
+                                        });
+
                                    thread.update_tool_call(
                                        acp::ToolCallUpdate {
-                                            id: acp::ToolCallId(tool_use_id.into()),
+                                            id,
                                            fields: acp::ToolCallUpdateFields {
                                                status: if turn_state.borrow().is_canceled() {
                                                    // Do not set to completed if turn was canceled
@@ -487,7 +546,7 @@ impl ClaudeAgentSession {
                                                } else {
                                                    Some(acp::ToolCallStatus::Completed)
                                                },
-                                                content: (!content.is_empty())
+                                                content: set_new_content
                                                    .then(|| vec![content.into()]),
                                                ..Default::default()
                                            },
@@ -505,10 +564,17 @@ impl ClaudeAgentSession {
                                chunk
                            );
                        }
+                        ContentChunk::Image { source } => {
+                            if !turn_state.borrow().is_canceled() {
+                                thread
+                                    .update(cx, |thread, cx| {
+                                        thread.push_user_content_block(None, source.into(), cx)
+                                    })
+                                    .log_err();
+                            }
+                        }

-                        ContentChunk::Image
-                        | ContentChunk::Document
-                        | ContentChunk::WebSearchToolResult => {
+                        ContentChunk::Document | ContentChunk::WebSearchToolResult => {
                            thread
                                .update(cx, |thread, cx| {
                                    thread.push_assistant_content_block(
@@ -594,7 +660,14 @@ impl ClaudeAgentSession {
                                "Should not get tool results with role: assistant. should we handle this?"
                            );
                        }
-                        ContentChunk::Image | ContentChunk::Document => {
+                        ContentChunk::Image { source } => {
+                            thread
+                                .update(cx, |thread, cx| {
+                                    thread.push_assistant_content_block(source.into(), false, cx)
+                                })
+                                .log_err();
+                        }
+                        ContentChunk::Document => {
                            thread
                                .update(cx, |thread, cx| {
                                    thread.push_assistant_content_block(
@@ -632,7 +705,7 @@ impl ClaudeAgentSession {
                    let stop_reason = match subtype {
                        ResultErrorType::Success => acp::StopReason::EndTurn,
                        ResultErrorType::ErrorMaxTurns => acp::StopReason::MaxTurnRequests,
-                        ResultErrorType::ErrorDuringExecution => acp::StopReason::Canceled,
+                        ResultErrorType::ErrorDuringExecution => acp::StopReason::Cancelled,
                    };
                    end_turn_tx
                        .send(Ok(acp::PromptResponse { stop_reason }))
@@ -722,7 +795,7 @@ impl Content {
    pub fn chunks(self) -> impl Iterator<Item = ContentChunk> {
        match self {
            Self::Chunks(chunks) => chunks.into_iter(),
-            Self::UntaggedText(text) => vec![ContentChunk::Text { text: text.clone() }].into_iter(),
+            Self::UntaggedText(text) => vec![ContentChunk::Text { text }].into_iter(),
        }
    }
 }
@@ -760,14 +833,44 @@ enum ContentChunk {
        thinking: String,
    },
    RedactedThinking,
+    Image {
+        source: ImageSource,
+    },
    // TODO
-    Image,
    Document,
    WebSearchToolResult,
    #[serde(untagged)]
    UntaggedText(String),
 }

+#[derive(Debug, Clone, Serialize, Deserialize)]
+#[serde(tag = "type", rename_all = "snake_case")]
+enum ImageSource {
+    Base64 { data: String, media_type: String },
+    Url { url: String },
+}
+
+impl Into<acp::ContentBlock> for ImageSource {
+    fn into(self) -> acp::ContentBlock {
+        match self {
+            ImageSource::Base64 { data, media_type } => {
+                acp::ContentBlock::Image(acp::ImageContent {
+                    annotations: None,
+                    data,
+                    mime_type: media_type,
+                    uri: None,
+                })
+            }
+            ImageSource::Url { url } => acp::ContentBlock::Image(acp::ImageContent {
+                annotations: None,
+                data: "".to_string(),
+                mime_type: "".to_string(),
+                uri: Some(url),
+            }),
+        }
+    }
+}
+
 impl Display for ContentChunk {
    fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
        match self {
@@ -776,7 +879,7 @@ impl Display for ContentChunk {
            ContentChunk::RedactedThinking => write!(f, "Thinking: [REDACTED]"),
            ContentChunk::UntaggedText(text) => write!(f, "{}", text),
            ContentChunk::ToolResult { content, .. } => write!(f, "{}", content),
-            ContentChunk::Image
+            ContentChunk::Image { .. }
            | ContentChunk::Document
            | ContentChunk::ToolUse { .. }
            | ContentChunk::WebSearchToolResult => {
@@ -888,6 +991,75 @@ impl Display for ResultErrorType {
    }
 }

+fn acp_content_to_claude(prompt: Vec<acp::ContentBlock>) -> Vec<ContentChunk> {
+    let mut content = Vec::with_capacity(prompt.len());
+    let mut context = Vec::with_capacity(prompt.len());
+
+    for chunk in prompt {
+        match chunk {
+            acp::ContentBlock::Text(text_content) => {
+                content.push(ContentChunk::Text {
+                    text: text_content.text,
+                });
+            }
+            acp::ContentBlock::ResourceLink(resource_link) => {
+                match MentionUri::parse(&resource_link.uri) {
+                    Ok(uri) => {
+                        content.push(ContentChunk::Text {
+                            text: format!("{}", uri.as_link()),
+                        });
+                    }
+                    Err(_) => {
+                        content.push(ContentChunk::Text {
+                            text: resource_link.uri,
+                        });
+                    }
+                }
+            }
+            acp::ContentBlock::Resource(resource) => match resource.resource {
+                acp::EmbeddedResourceResource::TextResourceContents(resource) => {
+                    match MentionUri::parse(&resource.uri) {
+                        Ok(uri) => {
+                            content.push(ContentChunk::Text {
+                                text: format!("{}", uri.as_link()),
+                            });
+                        }
+                        Err(_) => {
+                            content.push(ContentChunk::Text {
+                                text: resource.uri.clone(),
+                            });
+                        }
+                    }
+
+                    context.push(ContentChunk::Text {
+                        text: format!(
+                            "\n<context ref=\"{}\">\n{}\n</context>",
+                            resource.uri, resource.text
+                        ),
+                    });
+                }
+                acp::EmbeddedResourceResource::BlobResourceContents(_) => {
+                    // Unsupported by SDK
+                }
+            },
+            acp::ContentBlock::Image(acp::ImageContent {
+                data, mime_type, ..
+            }) => content.push(ContentChunk::Image {
+                source: ImageSource::Base64 {
+                    data,
+                    media_type: mime_type,
+                },
+            }),
+            acp::ContentBlock::Audio(_) => {
+                // Unsupported by SDK
+            }
+        }
+    }
+
+    content.extend(context);
+    content
+}
+
 fn new_request_id() -> String {
    use rand::Rng;
    // In the Claude Code TS SDK they just generate a random 12 character string,
@@ -921,7 +1093,7 @@ pub(crate) mod tests {
    use gpui::TestAppContext;
    use serde_json::json;

-    crate::common_e2e_tests!(ClaudeCode, allow_option_id = "allow");
+    crate::common_e2e_tests!(async |_, _, _| ClaudeCode, allow_option_id = "allow");

    pub fn local_command() -> AgentServerCommand {
        AgentServerCommand {
@@ -953,7 +1125,7 @@ pub(crate) mod tests {

        thread.read_with(cx, |thread, _| {
            entries_len = thread.plan().entries.len();
-            assert!(thread.plan().entries.len() > 0, "Empty plan");
+            assert!(!thread.plan().entries.is_empty(), "Empty plan");
        });

        thread
@@ -1104,4 +1276,100 @@ pub(crate) mod tests {
            _ => panic!("Expected ToolResult variant"),
        }
    }
+
+    #[test]
+    fn test_acp_content_to_claude() {
+        let acp_content = vec![
+            acp::ContentBlock::Text(acp::TextContent {
+                text: "Hello world".to_string(),
+                annotations: None,
+            }),
+            acp::ContentBlock::Image(acp::ImageContent {
+                data: "base64data".to_string(),
+                mime_type: "image/png".to_string(),
+                annotations: None,
+                uri: None,
+            }),
+            acp::ContentBlock::ResourceLink(acp::ResourceLink {
+                uri: "file:///path/to/example.rs".to_string(),
+                name: "example.rs".to_string(),
+                annotations: None,
+                description: None,
+                mime_type: None,
+                size: None,
+                title: None,
+            }),
+            acp::ContentBlock::Resource(acp::EmbeddedResource {
+                annotations: None,
+                resource: acp::EmbeddedResourceResource::TextResourceContents(
+                    acp::TextResourceContents {
+                        mime_type: None,
+                        text: "fn main() { println!(\"Hello!\"); }".to_string(),
+                        uri: "file:///path/to/code.rs".to_string(),
+                    },
+                ),
+            }),
+            acp::ContentBlock::ResourceLink(acp::ResourceLink {
+                uri: "invalid_uri_format".to_string(),
+                name: "invalid.txt".to_string(),
+                annotations: None,
+                description: None,
+                mime_type: None,
+                size: None,
+                title: None,
+            }),
+        ];
+
+        let claude_content = acp_content_to_claude(acp_content);
+
+        assert_eq!(claude_content.len(), 6);
+
+        match &claude_content[0] {
+            ContentChunk::Text { text } => assert_eq!(text, "Hello world"),
+            _ => panic!("Expected Text chunk"),
+        }
+
+        match &claude_content[1] {
+            ContentChunk::Image { source } => match source {
+                ImageSource::Base64 { data, media_type } => {
+                    assert_eq!(data, "base64data");
+                    assert_eq!(media_type, "image/png");
+                }
+                _ => panic!("Expected Base64 image source"),
+            },
+            _ => panic!("Expected Image chunk"),
+        }
+
+        match &claude_content[2] {
+            ContentChunk::Text { text } => {
+                assert!(text.contains("example.rs"));
+                assert!(text.contains("file:///path/to/example.rs"));
+            }
+            _ => panic!("Expected Text chunk for ResourceLink"),
+        }
+
+        match &claude_content[3] {
+            ContentChunk::Text { text } => {
+                assert!(text.contains("code.rs"));
+                assert!(text.contains("file:///path/to/code.rs"));
+            }
+            _ => panic!("Expected Text chunk for Resource"),
+        }
+
+        match &claude_content[4] {
+            ContentChunk::Text { text } => {
+                assert_eq!(text, "invalid_uri_format");
+            }
+            _ => panic!("Expected Text chunk for invalid URI"),
+        }
+
+        match &claude_content[5] {
+            ContentChunk::Text { text } => {
+                assert!(text.contains("<context ref=\"file:///path/to/code.rs\">"));
+                assert!(text.contains("fn main() { println!(\"Hello!\"); }"));
+                assert!(text.contains("</context>"));
+            }
+            _ => panic!("Expected Text chunk for context"),
+        }
+    }
 }
--- a/crates/agent_servers/src/claude/edit_tool.rs
+++ b/crates/agent_servers/src/claude/edit_tool.rs
@@ -0,0 +1,178 @@
+use acp_thread::AcpThread;
+use anyhow::Result;
+use context_server::{
+    listener::{McpServerTool, ToolResponse},
+    types::{ToolAnnotations, ToolResponseContent},
+};
+use gpui::{AsyncApp, WeakEntity};
+use language::unified_diff;
+use util::markdown::MarkdownCodeBlock;
+
+use crate::tools::EditToolParams;
+
+#[derive(Clone)]
+pub struct EditTool {
+    thread_rx: watch::Receiver<WeakEntity<AcpThread>>,
+}
+
+impl EditTool {
+    pub fn new(thread_rx: watch::Receiver<WeakEntity<AcpThread>>) -> Self {
+        Self { thread_rx }
+    }
+}
+
+impl McpServerTool for EditTool {
+    type Input = EditToolParams;
+    type Output = ();
+
+    const NAME: &'static str = "Edit";
+
+    fn annotations(&self) -> ToolAnnotations {
+        ToolAnnotations {
+            title: Some("Edit file".to_string()),
+            read_only_hint: Some(false),
+            destructive_hint: Some(false),
+            open_world_hint: Some(false),
+            idempotent_hint: Some(false),
+        }
+    }
+
+    async fn run(
+        &self,
+        input: Self::Input,
+        cx: &mut AsyncApp,
+    ) -> Result<ToolResponse<Self::Output>> {
+        let mut thread_rx = self.thread_rx.clone();
+        let Some(thread) = thread_rx.recv().await?.upgrade() else {
+            anyhow::bail!("Thread closed");
+        };
+
+        let content = thread
+            .update(cx, |thread, cx| {
+                thread.read_text_file(input.abs_path.clone(), None, None, true, cx)
+            })?
+            .await?;
+
+        let (new_content, diff) = cx
+            .background_executor()
+            .spawn(async move {
+                let new_content = content.replace(&input.old_text, &input.new_text);
+                if new_content == content {
+                    return Err(anyhow::anyhow!("Failed to find `old_text`",));
+                }
+                let diff = unified_diff(&content, &new_content);
+
+                Ok((new_content, diff))
+            })
+            .await?;
+
+        thread
+            .update(cx, |thread, cx| {
+                thread.write_text_file(input.abs_path, new_content, cx)
+            })?
+            .await?;
+
+        Ok(ToolResponse {
+            content: vec![ToolResponseContent::Text {
+                text: MarkdownCodeBlock {
+                    tag: "diff",
+                    text: diff.as_str().trim_end_matches('\n'),
+                }
+                .to_string(),
+            }],
+            structured_content: (),
+        })
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use std::rc::Rc;
+
+    use acp_thread::{AgentConnection, StubAgentConnection};
+    use gpui::{Entity, TestAppContext};
+    use indoc::indoc;
+    use project::{FakeFs, Project};
+    use serde_json::json;
+    use settings::SettingsStore;
+    use util::path;
+
+    use super::*;
+
+    #[gpui::test]
+    async fn old_text_not_found(cx: &mut TestAppContext) {
+        let (_thread, tool) = init_test(cx).await;
+
+        let result = tool
+            .run(
+                EditToolParams {
+                    abs_path: path!("/root/file.txt").into(),
+                    old_text: "hi".into(),
+                    new_text: "bye".into(),
+                },
+                &mut cx.to_async(),
+            )
+            .await;
+
+        assert_eq!(result.unwrap_err().to_string(), "Failed to find `old_text`");
+    }
+
+    #[gpui::test]
+    async fn found_and_replaced(cx: &mut TestAppContext) {
+        let (_thread, tool) = init_test(cx).await;
+
+        let result = tool
+            .run(
+                EditToolParams {
+                    abs_path: path!("/root/file.txt").into(),
+                    old_text: "hello".into(),
+                    new_text: "hi".into(),
+                },
+                &mut cx.to_async(),
+            )
+            .await;
+
+        assert_eq!(
+            result.unwrap().content[0].text().unwrap(),
+            indoc! {
+                r"
+                ```diff
+                @@ -1,1 +1,1 @@
+                -hello
+                +hi
+                ```
+                "
+            }
+        );
+    }
+
+    async fn init_test(cx: &mut TestAppContext) -> (Entity<AcpThread>, EditTool) {
+        cx.update(|cx| {
+            let settings_store = SettingsStore::test(cx);
+            cx.set_global(settings_store);
+            language::init(cx);
+            Project::init_settings(cx);
+        });
+
+        let connection = Rc::new(StubAgentConnection::new());
+        let fs = FakeFs::new(cx.executor());
+        fs.insert_tree(
+            path!("/root"),
+            json!({
+                "file.txt": "hello"
+            }),
+        )
+        .await;
+        let project = Project::test(fs, [path!("/root").as_ref()], cx).await;
+        let (mut thread_tx, thread_rx) = watch::channel(WeakEntity::new_invalid());
+
+        let thread = cx
+            .update(|cx| connection.new_thread(project, path!("/test").as_ref(), cx))
+            .await
+            .unwrap();
+
+        thread_tx.send(thread.downgrade()).unwrap();
+
+        (thread, EditTool::new(thread_rx))
+    }
+}
--- a/crates/agent_servers/src/claude/mcp_server.rs
+++ b/crates/agent_servers/src/claude/mcp_server.rs
@@ -1,23 +1,22 @@
 use std::path::PathBuf;
 use std::sync::Arc;

-use crate::claude::tools::{ClaudeTool, EditToolParams, ReadToolParams};
+use crate::claude::edit_tool::EditTool;
+use crate::claude::permission_tool::PermissionTool;
+use crate::claude::read_tool::ReadTool;
+use crate::claude::write_tool::WriteTool;
 use acp_thread::AcpThread;
-use agent_client_protocol as acp;
-use agent_settings::AgentSettings;
-use anyhow::{Context, Result};
+#[cfg(not(test))]
+use anyhow::Context as _;
+use anyhow::Result;
 use collections::HashMap;
-use context_server::listener::{McpServerTool, ToolResponse};
 use context_server::types::{
    Implementation, InitializeParams, InitializeResponse, ProtocolVersion, ServerCapabilities,
-    ToolAnnotations, ToolResponseContent, ToolsCapabilities, requests,
+    ToolsCapabilities, requests,
 };
 use gpui::{App, AsyncApp, Task, WeakEntity};
 use project::Fs;
-use schemars::JsonSchema;
-use serde::{Deserialize, Serialize};
-use settings::{Settings as _, update_settings_file};
-use util::debug_panic;
+use serde::Serialize;

 pub struct ClaudeZedMcpServer {
    server: context_server::listener::McpServer,
@@ -34,16 +33,10 @@ impl ClaudeZedMcpServer {
        let mut mcp_server = context_server::listener::McpServer::new(cx).await?;
        mcp_server.handle_request::<requests::Initialize>(Self::handle_initialize);

-        mcp_server.add_tool(PermissionTool {
-            thread_rx: thread_rx.clone(),
-            fs: fs.clone(),
-        });
-        mcp_server.add_tool(ReadTool {
-            thread_rx: thread_rx.clone(),
-        });
-        mcp_server.add_tool(EditTool {
-            thread_rx: thread_rx.clone(),
-        });
+        mcp_server.add_tool(PermissionTool::new(fs.clone(), thread_rx.clone()));
+        mcp_server.add_tool(ReadTool::new(thread_rx.clone()));
+        mcp_server.add_tool(EditTool::new(thread_rx.clone()));
+        mcp_server.add_tool(WriteTool::new(thread_rx.clone()));

        Ok(Self { server: mcp_server })
    }
@@ -104,249 +97,3 @@ pub struct McpServerConfig {
    #[serde(skip_serializing_if = "Option::is_none")]
    pub env: Option<HashMap<String, String>>,
 }
-
-// Tools
-
-#[derive(Clone)]
-pub struct PermissionTool {
-    fs: Arc<dyn Fs>,
-    thread_rx: watch::Receiver<WeakEntity<AcpThread>>,
-}
-
-#[derive(Deserialize, JsonSchema, Debug)]
-pub struct PermissionToolParams {
-    tool_name: String,
-    input: serde_json::Value,
-    tool_use_id: Option<String>,
-}
-
-#[derive(Serialize)]
-#[serde(rename_all = "camelCase")]
-pub struct PermissionToolResponse {
-    behavior: PermissionToolBehavior,
-    updated_input: serde_json::Value,
-}
-
-#[derive(Serialize)]
-#[serde(rename_all = "snake_case")]
-enum PermissionToolBehavior {
-    Allow,
-    Deny,
-}
-
-impl McpServerTool for PermissionTool {
-    type Input = PermissionToolParams;
-    type Output = ();
-
-    const NAME: &'static str = "Confirmation";
-
-    fn description(&self) -> &'static str {
-        "Request permission for tool calls"
-    }
-
-    async fn run(
-        &self,
-        input: Self::Input,
-        cx: &mut AsyncApp,
-    ) -> Result<ToolResponse<Self::Output>> {
-        if agent_settings::AgentSettings::try_read_global(cx, |settings| {
-            settings.always_allow_tool_actions
-        })
-        .unwrap_or(false)
-        {
-            let response = PermissionToolResponse {
-                behavior: PermissionToolBehavior::Allow,
-                updated_input: input.input,
-            };
-
-            return Ok(ToolResponse {
-                content: vec![ToolResponseContent::Text {
-                    text: serde_json::to_string(&response)?,
-                }],
-                structured_content: (),
-            });
-        }
-
-        let mut thread_rx = self.thread_rx.clone();
-        let Some(thread) = thread_rx.recv().await?.upgrade() else {
-            anyhow::bail!("Thread closed");
-        };
-
-        let claude_tool = ClaudeTool::infer(&input.tool_name, input.input.clone());
-        let tool_call_id = acp::ToolCallId(input.tool_use_id.context("Tool ID required")?.into());
-
-        const ALWAYS_ALLOW: &'static str = "always_allow";
-        const ALLOW: &'static str = "allow";
-        const REJECT: &'static str = "reject";
-
-        let chosen_option = thread
-            .update(cx, |thread, cx| {
-                thread.request_tool_call_authorization(
-                    claude_tool.as_acp(tool_call_id).into(),
-                    vec![
-                        acp::PermissionOption {
-                            id: acp::PermissionOptionId(ALWAYS_ALLOW.into()),
-                            name: "Always Allow".into(),
-                            kind: acp::PermissionOptionKind::AllowAlways,
-                        },
-                        acp::PermissionOption {
-                            id: acp::PermissionOptionId(ALLOW.into()),
-                            name: "Allow".into(),
-                            kind: acp::PermissionOptionKind::AllowOnce,
-                        },
-                        acp::PermissionOption {
-                            id: acp::PermissionOptionId(REJECT.into()),
-                            name: "Reject".into(),
-                            kind: acp::PermissionOptionKind::RejectOnce,
-                        },
-                    ],
-                    cx,
-                )
-            })??
-            .await?;
-
-        let response = match chosen_option.0.as_ref() {
-            ALWAYS_ALLOW => {
-                cx.update(|cx| {
-                    update_settings_file::<AgentSettings>(self.fs.clone(), cx, |settings, _| {
-                        settings.set_always_allow_tool_actions(true);
-                    });
-                })?;
-
-                PermissionToolResponse {
-                    behavior: PermissionToolBehavior::Allow,
-                    updated_input: input.input,
-                }
-            }
-            ALLOW => PermissionToolResponse {
-                behavior: PermissionToolBehavior::Allow,
-                updated_input: input.input,
-            },
-            REJECT => PermissionToolResponse {
-                behavior: PermissionToolBehavior::Deny,
-                updated_input: input.input,
-            },
-            opt => {
-                debug_panic!("Unexpected option: {}", opt);
-                PermissionToolResponse {
-                    behavior: PermissionToolBehavior::Deny,
-                    updated_input: input.input,
-                }
-            }
-        };
-
-        Ok(ToolResponse {
-            content: vec![ToolResponseContent::Text {
-                text: serde_json::to_string(&response)?,
-            }],
-            structured_content: (),
-        })
-    }
-}
-
-#[derive(Clone)]
-pub struct ReadTool {
-    thread_rx: watch::Receiver<WeakEntity<AcpThread>>,
-}
-
-impl McpServerTool for ReadTool {
-    type Input = ReadToolParams;
-    type Output = ();
-
-    const NAME: &'static str = "Read";
-
-    fn description(&self) -> &'static str {
-        "Read the contents of a file. In sessions with mcp__zed__Read always use it instead of Read as it contains the most up-to-date contents."
-    }
-
-    fn annotations(&self) -> ToolAnnotations {
-        ToolAnnotations {
-            title: Some("Read file".to_string()),
-            read_only_hint: Some(true),
-            destructive_hint: Some(false),
-            open_world_hint: Some(false),
-            idempotent_hint: None,
-        }
-    }
-
-    async fn run(
-        &self,
-        input: Self::Input,
-        cx: &mut AsyncApp,
-    ) -> Result<ToolResponse<Self::Output>> {
-        let mut thread_rx = self.thread_rx.clone();
-        let Some(thread) = thread_rx.recv().await?.upgrade() else {
-            anyhow::bail!("Thread closed");
-        };
-
-        let content = thread
-            .update(cx, |thread, cx| {
-                thread.read_text_file(input.abs_path, input.offset, input.limit, false, cx)
-            })?
-            .await?;
-
-        Ok(ToolResponse {
-            content: vec![ToolResponseContent::Text { text: content }],
-            structured_content: (),
-        })
-    }
-}
-
-#[derive(Clone)]
-pub struct EditTool {
-    thread_rx: watch::Receiver<WeakEntity<AcpThread>>,
-}
-
-impl McpServerTool for EditTool {
-    type Input = EditToolParams;
-    type Output = ();
-
-    const NAME: &'static str = "Edit";
-
-    fn description(&self) -> &'static str {
-        "Edits a file. In sessions with mcp__zed__Edit always use it instead of Edit as it will show the diff to the user better."
-    }
-
-    fn annotations(&self) -> ToolAnnotations {
-        ToolAnnotations {
-            title: Some("Edit file".to_string()),
-            read_only_hint: Some(false),
-            destructive_hint: Some(false),
-            open_world_hint: Some(false),
-            idempotent_hint: Some(false),
-        }
-    }
-
-    async fn run(
-        &self,
-        input: Self::Input,
-        cx: &mut AsyncApp,
-    ) -> Result<ToolResponse<Self::Output>> {
-        let mut thread_rx = self.thread_rx.clone();
-        let Some(thread) = thread_rx.recv().await?.upgrade() else {
-            anyhow::bail!("Thread closed");
-        };
-
-        let content = thread
-            .update(cx, |thread, cx| {
-                thread.read_text_file(input.abs_path.clone(), None, None, true, cx)
-            })?
-            .await?;
-
-        let new_content = content.replace(&input.old_text, &input.new_text);
-        if new_content == content {
-            return Err(anyhow::anyhow!("The old_text was not found in the content"));
-        }
-
-        thread
-            .update(cx, |thread, cx| {
-                thread.write_text_file(input.abs_path, new_content, cx)
-            })?
-            .await?;
-
-        Ok(ToolResponse {
-            content: vec![],
-            structured_content: (),
-        })
-    }
-}
--- a/crates/agent_servers/src/claude/permission_tool.rs
+++ b/crates/agent_servers/src/claude/permission_tool.rs
@@ -0,0 +1,158 @@
+use std::sync::Arc;
+
+use acp_thread::AcpThread;
+use agent_client_protocol as acp;
+use agent_settings::AgentSettings;
+use anyhow::{Context as _, Result};
+use context_server::{
+    listener::{McpServerTool, ToolResponse},
+    types::ToolResponseContent,
+};
+use gpui::{AsyncApp, WeakEntity};
+use project::Fs;
+use schemars::JsonSchema;
+use serde::{Deserialize, Serialize};
+use settings::{Settings as _, update_settings_file};
+use util::debug_panic;
+
+use crate::tools::ClaudeTool;
+
+#[derive(Clone)]
+pub struct PermissionTool {
+    fs: Arc<dyn Fs>,
+    thread_rx: watch::Receiver<WeakEntity<AcpThread>>,
+}
+
+/// Request permission for tool calls
+#[derive(Deserialize, JsonSchema, Debug)]
+pub struct PermissionToolParams {
+    tool_name: String,
+    input: serde_json::Value,
+    tool_use_id: Option<String>,
+}
+
+#[derive(Serialize)]
+#[serde(rename_all = "camelCase")]
+pub struct PermissionToolResponse {
+    behavior: PermissionToolBehavior,
+    updated_input: serde_json::Value,
+}
+
+#[derive(Serialize)]
+#[serde(rename_all = "snake_case")]
+enum PermissionToolBehavior {
+    Allow,
+    Deny,
+}
+
+impl PermissionTool {
+    pub fn new(fs: Arc<dyn Fs>, thread_rx: watch::Receiver<WeakEntity<AcpThread>>) -> Self {
+        Self { fs, thread_rx }
+    }
+}
+
+impl McpServerTool for PermissionTool {
+    type Input = PermissionToolParams;
+    type Output = ();
+
+    const NAME: &'static str = "Confirmation";
+
+    async fn run(
+        &self,
+        input: Self::Input,
+        cx: &mut AsyncApp,
+    ) -> Result<ToolResponse<Self::Output>> {
+        if agent_settings::AgentSettings::try_read_global(cx, |settings| {
+            settings.always_allow_tool_actions
+        })
+        .unwrap_or(false)
+        {
+            let response = PermissionToolResponse {
+                behavior: PermissionToolBehavior::Allow,
+                updated_input: input.input,
+            };
+
+            return Ok(ToolResponse {
+                content: vec![ToolResponseContent::Text {
+                    text: serde_json::to_string(&response)?,
+                }],
+                structured_content: (),
+            });
+        }
+
+        let mut thread_rx = self.thread_rx.clone();
+        let Some(thread) = thread_rx.recv().await?.upgrade() else {
+            anyhow::bail!("Thread closed");
+        };
+
+        let claude_tool = ClaudeTool::infer(&input.tool_name, input.input.clone());
+        let tool_call_id = acp::ToolCallId(input.tool_use_id.context("Tool ID required")?.into());
+
+        const ALWAYS_ALLOW: &str = "always_allow";
+        const ALLOW: &str = "allow";
+        const REJECT: &str = "reject";
+
+        let chosen_option = thread
+            .update(cx, |thread, cx| {
+                thread.request_tool_call_authorization(
+                    claude_tool.as_acp(tool_call_id).into(),
+                    vec![
+                        acp::PermissionOption {
+                            id: acp::PermissionOptionId(ALWAYS_ALLOW.into()),
+                            name: "Always Allow".into(),
+                            kind: acp::PermissionOptionKind::AllowAlways,
+                        },
+                        acp::PermissionOption {
+                            id: acp::PermissionOptionId(ALLOW.into()),
+                            name: "Allow".into(),
+                            kind: acp::PermissionOptionKind::AllowOnce,
+                        },
+                        acp::PermissionOption {
+                            id: acp::PermissionOptionId(REJECT.into()),
+                            name: "Reject".into(),
+                            kind: acp::PermissionOptionKind::RejectOnce,
+                        },
+                    ],
+                    cx,
+                )
+            })??
+            .await?;
+
+        let response = match chosen_option.0.as_ref() {
+            ALWAYS_ALLOW => {
+                cx.update(|cx| {
+                    update_settings_file::<AgentSettings>(self.fs.clone(), cx, |settings, _| {
+                        settings.set_always_allow_tool_actions(true);
+                    });
+                })?;
+
+                PermissionToolResponse {
+                    behavior: PermissionToolBehavior::Allow,
+                    updated_input: input.input,
+                }
+            }
+            ALLOW => PermissionToolResponse {
+                behavior: PermissionToolBehavior::Allow,
+                updated_input: input.input,
+            },
+            REJECT => PermissionToolResponse {
+                behavior: PermissionToolBehavior::Deny,
+                updated_input: input.input,
+            },
+            opt => {
+                debug_panic!("Unexpected option: {}", opt);
+                PermissionToolResponse {
+                    behavior: PermissionToolBehavior::Deny,
+                    updated_input: input.input,
+                }
+            }
+        };
+
+        Ok(ToolResponse {
+            content: vec![ToolResponseContent::Text {
+                text: serde_json::to_string(&response)?,
+            }],
+            structured_content: (),
+        })
+    }
+}
--- a/crates/agent_servers/src/claude/read_tool.rs
+++ b/crates/agent_servers/src/claude/read_tool.rs
@@ -0,0 +1,59 @@
+use acp_thread::AcpThread;
+use anyhow::Result;
+use context_server::{
+    listener::{McpServerTool, ToolResponse},
+    types::{ToolAnnotations, ToolResponseContent},
+};
+use gpui::{AsyncApp, WeakEntity};
+
+use crate::tools::ReadToolParams;
+
+#[derive(Clone)]
+pub struct ReadTool {
+    thread_rx: watch::Receiver<WeakEntity<AcpThread>>,
+}
+
+impl ReadTool {
+    pub fn new(thread_rx: watch::Receiver<WeakEntity<AcpThread>>) -> Self {
+        Self { thread_rx }
+    }
+}
+
+impl McpServerTool for ReadTool {
+    type Input = ReadToolParams;
+    type Output = ();
+
+    const NAME: &'static str = "Read";
+
+    fn annotations(&self) -> ToolAnnotations {
+        ToolAnnotations {
+            title: Some("Read file".to_string()),
+            read_only_hint: Some(true),
+            destructive_hint: Some(false),
+            open_world_hint: Some(false),
+            idempotent_hint: None,
+        }
+    }
+
+    async fn run(
+        &self,
+        input: Self::Input,
+        cx: &mut AsyncApp,
+    ) -> Result<ToolResponse<Self::Output>> {
+        let mut thread_rx = self.thread_rx.clone();
+        let Some(thread) = thread_rx.recv().await?.upgrade() else {
+            anyhow::bail!("Thread closed");
+        };
+
+        let content = thread
+            .update(cx, |thread, cx| {
+                thread.read_text_file(input.abs_path, input.offset, input.limit, false, cx)
+            })?
+            .await?;
+
+        Ok(ToolResponse {
+            content: vec![ToolResponseContent::Text { text: content }],
+            structured_content: (),
+        })
+    }
+}
--- a/crates/agent_servers/src/claude/tools.rs
+++ b/crates/agent_servers/src/claude/tools.rs
@@ -34,6 +34,7 @@ impl ClaudeTool {
            // Known tools
            "mcp__zed__Read" => Self::ReadFile(serde_json::from_value(input).log_err()),
            "mcp__zed__Edit" => Self::Edit(serde_json::from_value(input).log_err()),
+            "mcp__zed__Write" => Self::Write(serde_json::from_value(input).log_err()),
            "MultiEdit" => Self::MultiEdit(serde_json::from_value(input).log_err()),
            "Write" => Self::Write(serde_json::from_value(input).log_err()),
            "LS" => Self::Ls(serde_json::from_value(input).log_err()),
@@ -57,7 +58,7 @@ impl ClaudeTool {
                    Self::Terminal(None)
                } else {
                    Self::Other {
-                        name: tool_name.to_string(),
+                        name: tool_name,
                        input,
                    }
                }
@@ -93,7 +94,7 @@ impl ClaudeTool {
            }
            Self::MultiEdit(None) => "Multi Edit".into(),
            Self::Write(Some(params)) => {
-                format!("Write {}", params.file_path.display())
+                format!("Write {}", params.abs_path.display())
            }
            Self::Write(None) => "Write".into(),
            Self::Glob(Some(params)) => {
@@ -153,7 +154,7 @@ impl ClaudeTool {
            }],
            Self::Write(Some(params)) => vec![acp::ToolCallContent::Diff {
                diff: acp::Diff {
-                    path: params.file_path.clone(),
+                    path: params.abs_path.clone(),
                    old_text: None,
                    new_text: params.content.clone(),
                },
@@ -229,7 +230,10 @@ impl ClaudeTool {
                    line: None,
                }]
            }
-            Self::Write(Some(WriteToolParams { file_path, .. })) => {
+            Self::Write(Some(WriteToolParams {
+                abs_path: file_path,
+                ..
+            })) => {
                vec![acp::ToolCallLocation {
                    path: file_path.clone(),
                    line: None,
@@ -302,6 +306,20 @@ impl ClaudeTool {
    }
 }

+/// Edit a file.
+///
+/// In sessions with mcp__zed__Edit always use it instead of Edit as it will
+/// allow the user to conveniently review changes.
+///
+/// File editing instructions:
+/// - The `old_text` param must match existing file content, including indentation.
+/// - The `old_text` param must come from the actual file, not an outline.
+/// - The `old_text` section must not be empty.
+/// - Be minimal with replacements:
+///     - For unique lines, include only those lines.
+///     - For non-unique lines, include enough context to identify them.
+/// - Do not escape quotes, newlines, or other characters.
+/// - Only edit the specified file.
 #[derive(Deserialize, JsonSchema, Debug)]
 pub struct EditToolParams {
    /// The absolute path to the file to read.
@@ -312,6 +330,11 @@ pub struct EditToolParams {
    pub new_text: String,
 }

+/// Reads the content of the given file in the project.
+///
+/// Never attempt to read a path that hasn't been previously mentioned.
+///
+/// In sessions with mcp__zed__Read always use it instead of Read as it contains the most up-to-date contents.
 #[derive(Deserialize, JsonSchema, Debug)]
 pub struct ReadToolParams {
    /// The absolute path to the file to read.
@@ -324,11 +347,15 @@ pub struct ReadToolParams {
    pub limit: Option<u32>,
 }

+/// Writes content to the specified file in the project.
+///
+/// In sessions with mcp__zed__Write always use it instead of Write as it will
+/// allow the user to conveniently review changes.
 #[derive(Deserialize, JsonSchema, Debug)]
 pub struct WriteToolParams {
-    /// Absolute path for new file
-    pub file_path: PathBuf,
-    /// File content
+    /// The absolute path of the file to write.
+    pub abs_path: PathBuf,
+    /// The full content to write.
    pub content: String,
 }

--- a/crates/agent_servers/src/claude/write_tool.rs
+++ b/crates/agent_servers/src/claude/write_tool.rs
@@ -0,0 +1,59 @@
+use acp_thread::AcpThread;
+use anyhow::Result;
+use context_server::{
+    listener::{McpServerTool, ToolResponse},
+    types::ToolAnnotations,
+};
+use gpui::{AsyncApp, WeakEntity};
+
+use crate::tools::WriteToolParams;
+
+#[derive(Clone)]
+pub struct WriteTool {
+    thread_rx: watch::Receiver<WeakEntity<AcpThread>>,
+}
+
+impl WriteTool {
+    pub fn new(thread_rx: watch::Receiver<WeakEntity<AcpThread>>) -> Self {
+        Self { thread_rx }
+    }
+}
+
+impl McpServerTool for WriteTool {
+    type Input = WriteToolParams;
+    type Output = ();
+
+    const NAME: &'static str = "Write";
+
+    fn annotations(&self) -> ToolAnnotations {
+        ToolAnnotations {
+            title: Some("Write file".to_string()),
+            read_only_hint: Some(false),
+            destructive_hint: Some(false),
+            open_world_hint: Some(false),
+            idempotent_hint: Some(false),
+        }
+    }
+
+    async fn run(
+        &self,
+        input: Self::Input,
+        cx: &mut AsyncApp,
+    ) -> Result<ToolResponse<Self::Output>> {
+        let mut thread_rx = self.thread_rx.clone();
+        let Some(thread) = thread_rx.recv().await?.upgrade() else {
+            anyhow::bail!("Thread closed");
+        };
+
+        thread
+            .update(cx, |thread, cx| {
+                thread.write_text_file(input.abs_path, input.content, cx)
+            })?
+            .await?;
+
+        Ok(ToolResponse {
+            content: vec![],
+            structured_content: (),
+        })
+    }
+}
--- a/crates/agent_servers/src/custom.rs
+++ b/crates/agent_servers/src/custom.rs
@@ -0,0 +1,59 @@
+use crate::{AgentServerCommand, AgentServerSettings};
+use acp_thread::AgentConnection;
+use anyhow::Result;
+use gpui::{App, Entity, SharedString, Task};
+use project::Project;
+use std::{path::Path, rc::Rc};
+use ui::IconName;
+
+/// A generic agent server implementation for custom user-defined agents
+pub struct CustomAgentServer {
+    name: SharedString,
+    command: AgentServerCommand,
+}
+
+impl CustomAgentServer {
+    pub fn new(name: SharedString, settings: &AgentServerSettings) -> Self {
+        Self {
+            name,
+            command: settings.command.clone(),
+        }
+    }
+}
+
+impl crate::AgentServer for CustomAgentServer {
+    fn name(&self) -> SharedString {
+        self.name.clone()
+    }
+
+    fn logo(&self) -> IconName {
+        IconName::Terminal
+    }
+
+    fn empty_state_headline(&self) -> SharedString {
+        "No conversations yet".into()
+    }
+
+    fn empty_state_message(&self) -> SharedString {
+        format!("Start a conversation with {}", self.name).into()
+    }
+
+    fn connect(
+        &self,
+        root_dir: &Path,
+        _project: &Entity<Project>,
+        cx: &mut App,
+    ) -> Task<Result<Rc<dyn AgentConnection>>> {
+        let server_name = self.name();
+        let command = self.command.clone();
+        let root_dir = root_dir.to_path_buf();
+
+        cx.spawn(async move |mut cx| {
+            crate::acp::connect(server_name, command, &root_dir, &mut cx).await
+        })
+    }
+
+    fn into_any(self: Rc<Self>) -> Rc<dyn std::any::Any> {
+        self
+    }
+}
--- a/crates/agent_servers/src/e2e_tests.rs
+++ b/crates/agent_servers/src/e2e_tests.rs
@@ -1,24 +1,31 @@
+use crate::AgentServer;
+use acp_thread::{AcpThread, AgentThreadEntry, ToolCall, ToolCallStatus};
+use agent_client_protocol as acp;
+use futures::{FutureExt, StreamExt, channel::mpsc, select};
+use gpui::{AppContext, Entity, TestAppContext};
+use indoc::indoc;
+use project::{FakeFs, Project};
 use std::{
    path::{Path, PathBuf},
    sync::Arc,
    time::Duration,
 };
-
-use crate::{AgentServer, AgentServerSettings, AllAgentServersSettings};
-use acp_thread::{AcpThread, AgentThreadEntry, ToolCall, ToolCallStatus};
-use agent_client_protocol as acp;
-
-use futures::{FutureExt, StreamExt, channel::mpsc, select};
-use gpui::{Entity, TestAppContext};
-use indoc::indoc;
-use project::{FakeFs, Project};
-use settings::{Settings, SettingsStore};
 use util::path;

-pub async fn test_basic(server: impl AgentServer + 'static, cx: &mut TestAppContext) {
-    let fs = init_test(cx).await;
-    let project = Project::test(fs, [], cx).await;
-    let thread = new_test_thread(server, project.clone(), "/private/tmp", cx).await;
+pub async fn test_basic<T, F>(server: F, cx: &mut TestAppContext)
+where
+    T: AgentServer + 'static,
+    F: AsyncFn(&Arc<dyn fs::Fs>, &Entity<Project>, &mut TestAppContext) -> T,
+{
+    let fs = init_test(cx).await as Arc<dyn fs::Fs>;
+    let project = Project::test(fs.clone(), [], cx).await;
+    let thread = new_test_thread(
+        server(&fs, &project, cx).await,
+        project.clone(),
+        "/private/tmp",
+        cx,
+    )
+    .await;

    thread
        .update(cx, |thread, cx| thread.send_raw("Hello from Zed!", cx))
@@ -42,8 +49,12 @@ pub async fn test_basic(server: impl AgentServer + 'static, cx: &mut TestAppCont
    });
 }

-pub async fn test_path_mentions(server: impl AgentServer + 'static, cx: &mut TestAppContext) {
-    let _fs = init_test(cx).await;
+pub async fn test_path_mentions<T, F>(server: F, cx: &mut TestAppContext)
+where
+    T: AgentServer + 'static,
+    F: AsyncFn(&Arc<dyn fs::Fs>, &Entity<Project>, &mut TestAppContext) -> T,
+{
+    let fs = init_test(cx).await as _;

    let tempdir = tempfile::tempdir().unwrap();
    std::fs::write(
@@ -56,7 +67,13 @@ pub async fn test_path_mentions(server: impl AgentServer + 'static, cx: &mut Tes
    )
    .expect("failed to write file");
    let project = Project::example([tempdir.path()], &mut cx.to_async()).await;
-    let thread = new_test_thread(server, project.clone(), tempdir.path(), cx).await;
+    let thread = new_test_thread(
+        server(&fs, &project, cx).await,
+        project.clone(),
+        tempdir.path(),
+        cx,
+    )
+    .await;
    thread
        .update(cx, |thread, cx| {
            thread.send(
@@ -110,15 +127,25 @@ pub async fn test_path_mentions(server: impl AgentServer + 'static, cx: &mut Tes
    drop(tempdir);
 }

-pub async fn test_tool_call(server: impl AgentServer + 'static, cx: &mut TestAppContext) {
-    let _fs = init_test(cx).await;
+pub async fn test_tool_call<T, F>(server: F, cx: &mut TestAppContext)
+where
+    T: AgentServer + 'static,
+    F: AsyncFn(&Arc<dyn fs::Fs>, &Entity<Project>, &mut TestAppContext) -> T,
+{
+    let fs = init_test(cx).await as _;

    let tempdir = tempfile::tempdir().unwrap();
    let foo_path = tempdir.path().join("foo");
    std::fs::write(&foo_path, "Lorem ipsum dolor").expect("failed to write file");

    let project = Project::example([tempdir.path()], &mut cx.to_async()).await;
-    let thread = new_test_thread(server, project.clone(), "/private/tmp", cx).await;
+    let thread = new_test_thread(
+        server(&fs, &project, cx).await,
+        project.clone(),
+        "/private/tmp",
+        cx,
+    )
+    .await;

    thread
        .update(cx, |thread, cx| {
@@ -152,14 +179,23 @@ pub async fn test_tool_call(server: impl AgentServer + 'static, cx: &mut TestApp
    drop(tempdir);
 }

-pub async fn test_tool_call_with_permission(
-    server: impl AgentServer + 'static,
+pub async fn test_tool_call_with_permission<T, F>(
+    server: F,
    allow_option_id: acp::PermissionOptionId,
    cx: &mut TestAppContext,
-) {
-    let fs = init_test(cx).await;
-    let project = Project::test(fs, [path!("/private/tmp").as_ref()], cx).await;
-    let thread = new_test_thread(server, project.clone(), "/private/tmp", cx).await;
+) where
+    T: AgentServer + 'static,
+    F: AsyncFn(&Arc<dyn fs::Fs>, &Entity<Project>, &mut TestAppContext) -> T,
+{
+    let fs = init_test(cx).await as Arc<dyn fs::Fs>;
+    let project = Project::test(fs.clone(), [path!("/private/tmp").as_ref()], cx).await;
+    let thread = new_test_thread(
+        server(&fs, &project, cx).await,
+        project.clone(),
+        "/private/tmp",
+        cx,
+    )
+    .await;
    let full_turn = thread.update(cx, |thread, cx| {
        thread.send_raw(
            r#"Run exactly `touch hello.txt && echo "Hello, world!" | tee hello.txt` in the terminal."#,
@@ -247,11 +283,21 @@ pub async fn test_tool_call_with_permission(
    });
 }

-pub async fn test_cancel(server: impl AgentServer + 'static, cx: &mut TestAppContext) {
-    let fs = init_test(cx).await;
+pub async fn test_cancel<T, F>(server: F, cx: &mut TestAppContext)
+where
+    T: AgentServer + 'static,
+    F: AsyncFn(&Arc<dyn fs::Fs>, &Entity<Project>, &mut TestAppContext) -> T,
+{
+    let fs = init_test(cx).await as Arc<dyn fs::Fs>;

-    let project = Project::test(fs, [path!("/private/tmp").as_ref()], cx).await;
-    let thread = new_test_thread(server, project.clone(), "/private/tmp", cx).await;
+    let project = Project::test(fs.clone(), [path!("/private/tmp").as_ref()], cx).await;
+    let thread = new_test_thread(
+        server(&fs, &project, cx).await,
+        project.clone(),
+        "/private/tmp",
+        cx,
+    )
+    .await;
    let _ = thread.update(cx, |thread, cx| {
        thread.send_raw(
            r#"Run exactly `touch hello.txt && echo "Hello, world!" | tee hello.txt` in the terminal."#,
@@ -316,10 +362,20 @@ pub async fn test_cancel(server: impl AgentServer + 'static, cx: &mut TestAppCon
    });
 }

-pub async fn test_thread_drop(server: impl AgentServer + 'static, cx: &mut TestAppContext) {
-    let fs = init_test(cx).await;
-    let project = Project::test(fs, [], cx).await;
-    let thread = new_test_thread(server, project.clone(), "/private/tmp", cx).await;
+pub async fn test_thread_drop<T, F>(server: F, cx: &mut TestAppContext)
+where
+    T: AgentServer + 'static,
+    F: AsyncFn(&Arc<dyn fs::Fs>, &Entity<Project>, &mut TestAppContext) -> T,
+{
+    let fs = init_test(cx).await as Arc<dyn fs::Fs>;
+    let project = Project::test(fs.clone(), [], cx).await;
+    let thread = new_test_thread(
+        server(&fs, &project, cx).await,
+        project.clone(),
+        "/private/tmp",
+        cx,
+    )
+    .await;

    thread
        .update(cx, |thread, cx| thread.send_raw("Hello from test!", cx))
@@ -386,27 +442,42 @@ macro_rules! common_e2e_tests {
        }
    };
 }
+pub use common_e2e_tests;

 // Helpers

 pub async fn init_test(cx: &mut TestAppContext) -> Arc<FakeFs> {
+    #[cfg(test)]
+    use settings::Settings;
+
    env_logger::try_init().ok();

    cx.update(|cx| {
-        let settings_store = SettingsStore::test(cx);
+        let settings_store = settings::SettingsStore::test(cx);
        cx.set_global(settings_store);
        Project::init_settings(cx);
        language::init(cx);
+        gpui_tokio::init(cx);
+        let http_client = reqwest_client::ReqwestClient::user_agent("agent tests").unwrap();
+        cx.set_http_client(Arc::new(http_client));
+        client::init_settings(cx);
+        let client = client::Client::production(cx);
+        let user_store = cx.new(|cx| client::UserStore::new(client.clone(), cx));
+        language_model::init(client.clone(), cx);
+        language_models::init(user_store, client, cx);
+        agent_settings::init(cx);
        crate::settings::init(cx);

+        #[cfg(test)]
        crate::AllAgentServersSettings::override_global(
-            AllAgentServersSettings {
-                claude: Some(AgentServerSettings {
+            crate::AllAgentServersSettings {
+                claude: Some(crate::AgentServerSettings {
                    command: crate::claude::tests::local_command(),
                }),
-                gemini: Some(AgentServerSettings {
+                gemini: Some(crate::AgentServerSettings {
                    command: crate::gemini::tests::local_command(),
                }),
+                custom: collections::HashMap::default(),
            },
            cx,
        );
@@ -428,12 +499,9 @@ pub async fn new_test_thread(
        .await
        .unwrap();

-    let thread = cx
-        .update(|cx| connection.new_thread(project.clone(), current_dir.as_ref(), cx))
+    cx.update(|cx| connection.new_thread(project.clone(), current_dir.as_ref(), cx))
        .await
-        .unwrap();
-
-    thread
+        .unwrap()
 }

 pub async fn run_until_first_tool_call(
@@ -471,7 +539,7 @@ pub fn get_zed_path() -> PathBuf {

    while zed_path
        .file_name()
-        .map_or(true, |name| name.to_string_lossy() != "debug")
+        .is_none_or(|name| name.to_string_lossy() != "debug")
    {
        if !zed_path.pop() {
            panic!("Could not find target directory");
--- a/crates/agent_servers/src/gemini.rs
+++ b/crates/agent_servers/src/gemini.rs
@@ -4,10 +4,10 @@ use std::{any::Any, path::Path};
 use crate::{AgentServer, AgentServerCommand};
 use acp_thread::{AgentConnection, LoadError};
 use anyhow::Result;
-use gpui::{Entity, Task};
+use gpui::{App, Entity, SharedString, Task};
+use language_models::provider::google::GoogleLanguageModelProvider;
 use project::Project;
 use settings::SettingsStore;
-use ui::App;

 use crate::AllAgentServersSettings;

@@ -17,16 +17,16 @@ pub struct Gemini;
 const ACP_ARG: &str = "--experimental-acp";

 impl AgentServer for Gemini {
-    fn name(&self) -> &'static str {
-        "Gemini"
+    fn name(&self) -> SharedString {
+        "Gemini CLI".into()
    }

-    fn empty_state_headline(&self) -> &'static str {
-        "Welcome to Gemini"
+    fn empty_state_headline(&self) -> SharedString {
+        self.name()
    }

-    fn empty_state_message(&self) -> &'static str {
-        "Ask questions, edit files, run commands.\nBe specific for the best results."
+    fn empty_state_message(&self) -> SharedString {
+        "Ask questions, edit files, run commands".into()
    }

    fn logo(&self) -> ui::IconName {
@@ -47,12 +47,20 @@ impl AgentServer for Gemini {
                settings.get::<AllAgentServersSettings>(None).gemini.clone()
            })?;

-            let Some(command) =
+            let Some(mut command) =
                AgentServerCommand::resolve("gemini", &[ACP_ARG], None, settings, &project, cx).await
            else {
-                anyhow::bail!("Failed to find gemini binary");
+                return Err(LoadError::NotInstalled {
+                    error_message: "Failed to find Gemini CLI binary".into(),
+                    install_message: "Install Gemini CLI".into(),
+                    install_command: "npm install -g @google/gemini-cli@preview".into()
+                }.into());
            };

+            if let Some(api_key)= cx.update(GoogleLanguageModelProvider::api_key)?.await.ok() {
+                command.env.get_or_insert_default().insert("GEMINI_API_KEY".to_owned(), api_key.key);
+            }
+
            let result = crate::acp::connect(server_name, command.clone(), &root_dir, cx).await;
            if result.is_err() {
                let version_fut = util::command::new_smol_command(&command.path)
@@ -75,11 +83,12 @@ impl AgentServer for Gemini {
                if !supported {
                    return Err(LoadError::Unsupported {
                        error_message: format!(
-                            "Your installed version of Gemini {} doesn't support the Agentic Coding Protocol (ACP).",
+                            "Your installed version of Gemini CLI ({}, version {}) doesn't support the Agentic Coding Protocol (ACP).",
+                            command.path.to_string_lossy(),
                            current_version
                        ).into(),
-                        upgrade_message: "Upgrade Gemini to Latest".into(),
-                        upgrade_command: "npm install -g @google/gemini-cli@latest".into(),
+                        upgrade_message: "Upgrade Gemini CLI to latest".into(),
+                        upgrade_command: "npm install -g @google/gemini-cli@preview".into(),
                    }.into())
                }
            }
@@ -98,7 +107,7 @@ pub(crate) mod tests {
    use crate::AgentServerCommand;
    use std::path::Path;

-    crate::common_e2e_tests!(Gemini, allow_option_id = "proceed_once");
+    crate::common_e2e_tests!(async |_, _, _| Gemini, allow_option_id = "proceed_once");

    pub fn local_command() -> AgentServerCommand {
        let cli_path = Path::new(env!("CARGO_MANIFEST_DIR"))
--- a/crates/agent_servers/src/settings.rs
+++ b/crates/agent_servers/src/settings.rs
@@ -1,6 +1,7 @@
 use crate::AgentServerCommand;
 use anyhow::Result;
-use gpui::App;
+use collections::HashMap;
+use gpui::{App, SharedString};
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
 use settings::{Settings, SettingsSources};
@@ -13,9 +14,13 @@ pub fn init(cx: &mut App) {
 pub struct AllAgentServersSettings {
    pub gemini: Option<AgentServerSettings>,
    pub claude: Option<AgentServerSettings>,
+
+    /// Custom agent servers configured by the user
+    #[serde(flatten)]
+    pub custom: HashMap<SharedString, AgentServerSettings>,
 }

-#[derive(Deserialize, Serialize, Clone, JsonSchema, Debug)]
+#[derive(Deserialize, Serialize, Clone, JsonSchema, Debug, PartialEq)]
 pub struct AgentServerSettings {
    #[serde(flatten)]
    pub command: AgentServerCommand,
@@ -29,13 +34,26 @@ impl settings::Settings for AllAgentServersSettings {
    fn load(sources: SettingsSources<Self::FileContent>, _: &mut App) -> Result<Self> {
        let mut settings = AllAgentServersSettings::default();

-        for AllAgentServersSettings { gemini, claude } in sources.defaults_and_customizations() {
+        for AllAgentServersSettings {
+            gemini,
+            claude,
+            custom,
+        } in sources.defaults_and_customizations()
+        {
            if gemini.is_some() {
                settings.gemini = gemini.clone();
            }
            if claude.is_some() {
                settings.claude = claude.clone();
            }
+
+            // Merge custom agents
+            for (name, config) in custom {
+                // Skip built-in agent names to avoid conflicts
+                if name != "gemini" && name != "claude" {
+                    settings.custom.insert(name.clone(), config.clone());
+                }
+            }
        }

        Ok(settings)
--- a/crates/agent_settings/src/agent_profile.rs
+++ b/crates/agent_settings/src/agent_profile.rs
@@ -58,7 +58,7 @@ impl AgentProfileSettings {
            || self
                .context_servers
                .get(server_id)
-                .map_or(false, |preset| preset.tools.get(tool_name) == Some(&true))
+                .is_some_and(|preset| preset.tools.get(tool_name) == Some(&true))
    }
 }

--- a/crates/agent_settings/src/agent_settings.rs
+++ b/crates/agent_settings/src/agent_settings.rs
@@ -15,6 +15,8 @@ pub use crate::agent_profile::*;

 pub const SUMMARIZE_THREAD_PROMPT: &str =
    include_str!("../../agent/src/prompts/summarize_thread_prompt.txt");
+pub const SUMMARIZE_THREAD_DETAILED_PROMPT: &str =
+    include_str!("../../agent/src/prompts/summarize_thread_detailed_prompt.txt");

 pub fn init(cx: &mut App) {
    AgentSettings::register(cx);
@@ -116,15 +118,15 @@ pub struct LanguageModelParameters {

 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(provider) = &self.provider
+            && provider.0 != model.provider_id().0
+        {
+            return false;
        }
-        if let Some(setting_model) = &self.model {
-            if *setting_model != model.id().0 {
-                return false;
-            }
+        if let Some(setting_model) = &self.model
+            && *setting_model != model.id().0
+        {
+            return false;
        }
        true
    }
@@ -503,9 +505,8 @@ impl Settings for AgentSettings {
            }
        }

-        debug_assert_eq!(
-            sources.default.always_allow_tool_actions.unwrap_or(false),
-            false,
+        debug_assert!(
+            !sources.default.always_allow_tool_actions.unwrap_or(false),
            "For security, agent.always_allow_tool_actions should always be false in default.json. If it's true, that is a bug that should be fixed!"
        );

--- a/crates/agent_ui/Cargo.toml
+++ b/crates/agent_ui/Cargo.toml
@@ -67,6 +67,7 @@ ordered-float.workspace = true
 parking_lot.workspace = true
 paths.workspace = true
 picker.workspace = true
+postage.workspace = true
 project.workspace = true
 prompt_store.workspace = true
 proto.workspace = true
@@ -104,9 +105,11 @@ zed_actions.workspace = true
 [dev-dependencies]
 acp_thread = { workspace = true, features = ["test-support"] }
 agent = { workspace = true, features = ["test-support"] }
+agent2 = { workspace = true, features = ["test-support"] }
 assistant_context = { workspace = true, features = ["test-support"] }
 assistant_tools.workspace = true
 buffer_diff = { workspace = true, features = ["test-support"] }
+db = { workspace = true, features = ["test-support"] }
 editor = { workspace = true, features = ["test-support"] }
 gpui = { workspace = true, "features" = ["test-support"] }
 indoc.workspace = true
--- a/crates/agent_ui/src/acp.rs
+++ b/crates/agent_ui/src/acp.rs
@@ -3,8 +3,10 @@ mod entry_view_state;
 mod message_editor;
 mod model_selector;
 mod model_selector_popover;
+mod thread_history;
 mod thread_view;

 pub use model_selector::AcpModelSelector;
 pub use model_selector_popover::AcpModelSelectorPopover;
+pub use thread_history::*;
 pub use thread_view::AcpThreadView;
--- a/crates/agent_ui/src/acp/completion_provider.rs
+++ b/crates/agent_ui/src/acp/completion_provider.rs
--- a/crates/agent_ui/src/acp/entry_view_state.rs
+++ b/crates/agent_ui/src/acp/entry_view_state.rs
@@ -1,7 +1,8 @@
-use std::ops::Range;
+use std::{cell::Cell, ops::Range, rc::Rc};

 use acp_thread::{AcpThread, AgentThreadEntry};
-use agent::{TextThreadStore, ThreadStore};
+use agent_client_protocol::{PromptCapabilities, ToolCallId};
+use agent2::HistoryStore;
 use collections::HashMap;
 use editor::{Editor, EditorMode, MinimapVisibility};
 use gpui::{
@@ -10,6 +11,7 @@ use gpui::{
 };
 use language::language_settings::SoftWrap;
 use project::Project;
+use prompt_store::PromptStore;
 use settings::Settings as _;
 use terminal_view::TerminalView;
 use theme::ThemeSettings;
@@ -21,27 +23,30 @@ use crate::acp::message_editor::{MessageEditor, MessageEditorEvent};
 pub struct EntryViewState {
    workspace: WeakEntity<Workspace>,
    project: Entity<Project>,
-    thread_store: Entity<ThreadStore>,
-    text_thread_store: Entity<TextThreadStore>,
+    history_store: Entity<HistoryStore>,
+    prompt_store: Option<Entity<PromptStore>>,
    entries: Vec<Entry>,
    prevent_slash_commands: bool,
+    prompt_capabilities: Rc<Cell<PromptCapabilities>>,
 }

 impl EntryViewState {
    pub fn new(
        workspace: WeakEntity<Workspace>,
        project: Entity<Project>,
-        thread_store: Entity<ThreadStore>,
-        text_thread_store: Entity<TextThreadStore>,
+        history_store: Entity<HistoryStore>,
+        prompt_store: Option<Entity<PromptStore>>,
+        prompt_capabilities: Rc<Cell<PromptCapabilities>>,
        prevent_slash_commands: bool,
    ) -> Self {
        Self {
            workspace,
            project,
-            thread_store,
-            text_thread_store,
+            history_store,
+            prompt_store,
            entries: Vec::new(),
            prevent_slash_commands,
+            prompt_capabilities,
        }
    }

@@ -77,8 +82,9 @@ impl EntryViewState {
                        let mut editor = MessageEditor::new(
                            self.workspace.clone(),
                            self.project.clone(),
-                            self.thread_store.clone(),
-                            self.text_thread_store.clone(),
+                            self.history_store.clone(),
+                            self.prompt_store.clone(),
+                            self.prompt_capabilities.clone(),
                            "Edit message － @ to include context",
                            self.prevent_slash_commands,
                            editor::EditorMode::AutoHeight {
@@ -105,6 +111,7 @@ impl EntryViewState {
                }
            }
            AgentThreadEntry::ToolCall(tool_call) => {
+                let id = tool_call.id.clone();
                let terminals = tool_call.terminals().cloned().collect::<Vec<_>>();
                let diffs = tool_call.diffs().cloned().collect::<Vec<_>>();

@@ -120,21 +127,31 @@ impl EntryViewState {

                for terminal in terminals {
                    views.entry(terminal.entity_id()).or_insert_with(|| {
-                        create_terminal(
+                        let element = create_terminal(
                            self.workspace.clone(),
                            self.project.clone(),
                            terminal.clone(),
                            window,
                            cx,
                        )
-                        .into_any()
+                        .into_any();
+                        cx.emit(EntryViewEvent {
+                            entry_index: index,
+                            view_event: ViewEvent::NewTerminal(id.clone()),
+                        });
+                        element
                    });
                }

                for diff in diffs {
-                    views
-                        .entry(diff.entity_id())
-                        .or_insert_with(|| create_editor_diff(diff.clone(), window, cx).into_any());
+                    views.entry(diff.entity_id()).or_insert_with(|| {
+                        let element = create_editor_diff(diff.clone(), window, cx).into_any();
+                        cx.emit(EntryViewEvent {
+                            entry_index: index,
+                            view_event: ViewEvent::NewDiff(id.clone()),
+                        });
+                        element
+                    });
                }
            }
            AgentThreadEntry::AssistantMessage(_) => {
@@ -186,9 +203,12 @@ pub struct EntryViewEvent {
 }

 pub enum ViewEvent {
+    NewDiff(ToolCallId),
+    NewTerminal(ToolCallId),
    MessageEditorEvent(Entity<MessageEditor>, MessageEditorEvent),
 }

+#[derive(Debug)]
 pub enum Entry {
    UserMessage(Entity<MessageEditor>),
    Content(HashMap<EntityId, AnyEntity>),
@@ -312,9 +332,10 @@ mod tests {
    use std::{path::Path, rc::Rc};

    use acp_thread::{AgentConnection, StubAgentConnection};
-    use agent::{TextThreadStore, ThreadStore};
    use agent_client_protocol as acp;
    use agent_settings::AgentSettings;
+    use agent2::HistoryStore;
+    use assistant_context::ContextStore;
    use buffer_diff::{DiffHunkStatus, DiffHunkStatusKind};
    use editor::{EditorSettings, RowInfo};
    use fs::FakeFs;
@@ -377,15 +398,16 @@ mod tests {
            connection.send_update(session_id, acp::SessionUpdate::ToolCall(tool_call), cx)
        });

-        let thread_store = cx.new(|cx| ThreadStore::fake(project.clone(), cx));
-        let text_thread_store = cx.new(|cx| TextThreadStore::fake(project.clone(), cx));
+        let context_store = cx.new(|cx| ContextStore::fake(project.clone(), cx));
+        let history_store = cx.new(|cx| HistoryStore::new(context_store, cx));

        let view_state = cx.new(|_cx| {
            EntryViewState::new(
                workspace.downgrade(),
                project.clone(),
-                thread_store,
-                text_thread_store,
+                history_store,
+                None,
+                Default::default(),
                false,
            )
        });
--- a/crates/agent_ui/src/acp/message_editor.rs
+++ b/crates/agent_ui/src/acp/message_editor.rs
--- a/crates/agent_ui/src/acp/thread_history.rs
+++ b/crates/agent_ui/src/acp/thread_history.rs
@@ -0,0 +1,825 @@
+use crate::acp::AcpThreadView;
+use crate::{AgentPanel, RemoveSelectedThread};
+use agent2::{HistoryEntry, HistoryStore};
+use chrono::{Datelike as _, Local, NaiveDate, TimeDelta};
+use editor::{Editor, EditorEvent};
+use fuzzy::StringMatchCandidate;
+use gpui::{
+    App, Entity, EventEmitter, FocusHandle, Focusable, ScrollStrategy, Stateful, Task,
+    UniformListScrollHandle, WeakEntity, Window, uniform_list,
+};
+use std::{fmt::Display, ops::Range};
+use text::Bias;
+use time::{OffsetDateTime, UtcOffset};
+use ui::{
+    HighlightedLabel, IconButtonShape, ListItem, ListItemSpacing, Scrollbar, ScrollbarState,
+    Tooltip, prelude::*,
+};
+
+pub struct AcpThreadHistory {
+    pub(crate) history_store: Entity<HistoryStore>,
+    scroll_handle: UniformListScrollHandle,
+    selected_index: usize,
+    hovered_index: Option<usize>,
+    search_editor: Entity<Editor>,
+    search_query: SharedString,
+
+    visible_items: Vec<ListItemType>,
+
+    scrollbar_visibility: bool,
+    scrollbar_state: ScrollbarState,
+    local_timezone: UtcOffset,
+
+    _update_task: Task<()>,
+    _subscriptions: Vec<gpui::Subscription>,
+}
+
+enum ListItemType {
+    BucketSeparator(TimeBucket),
+    Entry {
+        entry: HistoryEntry,
+        format: EntryTimeFormat,
+    },
+    SearchResult {
+        entry: HistoryEntry,
+        positions: Vec<usize>,
+    },
+}
+
+impl ListItemType {
+    fn history_entry(&self) -> Option<&HistoryEntry> {
+        match self {
+            ListItemType::Entry { entry, .. } => Some(entry),
+            ListItemType::SearchResult { entry, .. } => Some(entry),
+            _ => None,
+        }
+    }
+}
+
+pub enum ThreadHistoryEvent {
+    Open(HistoryEntry),
+}
+
+impl EventEmitter<ThreadHistoryEvent> for AcpThreadHistory {}
+
+impl AcpThreadHistory {
+    pub(crate) fn new(
+        history_store: Entity<agent2::HistoryStore>,
+        window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> Self {
+        let search_editor = cx.new(|cx| {
+            let mut editor = Editor::single_line(window, cx);
+            editor.set_placeholder_text("Search threads...", cx);
+            editor
+        });
+
+        let search_editor_subscription =
+            cx.subscribe(&search_editor, |this, search_editor, event, cx| {
+                if let EditorEvent::BufferEdited = event {
+                    let query = search_editor.read(cx).text(cx);
+                    if this.search_query != query {
+                        this.search_query = query.into();
+                        this.update_visible_items(false, cx);
+                    }
+                }
+            });
+
+        let history_store_subscription = cx.observe(&history_store, |this, _, cx| {
+            this.update_visible_items(true, cx);
+        });
+
+        let scroll_handle = UniformListScrollHandle::default();
+        let scrollbar_state = ScrollbarState::new(scroll_handle.clone());
+
+        let mut this = Self {
+            history_store,
+            scroll_handle,
+            selected_index: 0,
+            hovered_index: None,
+            visible_items: Default::default(),
+            search_editor,
+            scrollbar_visibility: true,
+            scrollbar_state,
+            local_timezone: UtcOffset::from_whole_seconds(
+                chrono::Local::now().offset().local_minus_utc(),
+            )
+            .unwrap(),
+            search_query: SharedString::default(),
+            _subscriptions: vec![search_editor_subscription, history_store_subscription],
+            _update_task: Task::ready(()),
+        };
+        this.update_visible_items(false, cx);
+        this
+    }
+
+    fn update_visible_items(&mut self, preserve_selected_item: bool, cx: &mut Context<Self>) {
+        let entries = self
+            .history_store
+            .update(cx, |store, _| store.entries().collect());
+        let new_list_items = if self.search_query.is_empty() {
+            self.add_list_separators(entries, cx)
+        } else {
+            self.filter_search_results(entries, cx)
+        };
+        let selected_history_entry = if preserve_selected_item {
+            self.selected_history_entry().cloned()
+        } else {
+            None
+        };
+
+        self._update_task = cx.spawn(async move |this, cx| {
+            let new_visible_items = new_list_items.await;
+            this.update(cx, |this, cx| {
+                let new_selected_index = if let Some(history_entry) = selected_history_entry {
+                    let history_entry_id = history_entry.id();
+                    new_visible_items
+                        .iter()
+                        .position(|visible_entry| {
+                            visible_entry
+                                .history_entry()
+                                .is_some_and(|entry| entry.id() == history_entry_id)
+                        })
+                        .unwrap_or(0)
+                } else {
+                    0
+                };
+
+                this.visible_items = new_visible_items;
+                this.set_selected_index(new_selected_index, Bias::Right, cx);
+                cx.notify();
+            })
+            .ok();
+        });
+    }
+
+    fn add_list_separators(&self, entries: Vec<HistoryEntry>, cx: &App) -> Task<Vec<ListItemType>> {
+        cx.background_spawn(async move {
+            let mut items = Vec::with_capacity(entries.len() + 1);
+            let mut bucket = None;
+            let today = Local::now().naive_local().date();
+
+            for entry in entries.into_iter() {
+                let entry_date = entry
+                    .updated_at()
+                    .with_timezone(&Local)
+                    .naive_local()
+                    .date();
+                let entry_bucket = TimeBucket::from_dates(today, entry_date);
+
+                if Some(entry_bucket) != bucket {
+                    bucket = Some(entry_bucket);
+                    items.push(ListItemType::BucketSeparator(entry_bucket));
+                }
+
+                items.push(ListItemType::Entry {
+                    entry,
+                    format: entry_bucket.into(),
+                });
+            }
+            items
+        })
+    }
+
+    fn filter_search_results(
+        &self,
+        entries: Vec<HistoryEntry>,
+        cx: &App,
+    ) -> Task<Vec<ListItemType>> {
+        let query = self.search_query.clone();
+        cx.background_spawn({
+            let executor = cx.background_executor().clone();
+            async move {
+                let mut candidates = Vec::with_capacity(entries.len());
+
+                for (idx, entry) in entries.iter().enumerate() {
+                    candidates.push(StringMatchCandidate::new(idx, entry.title()));
+                }
+
+                const MAX_MATCHES: usize = 100;
+
+                let matches = fuzzy::match_strings(
+                    &candidates,
+                    &query,
+                    false,
+                    true,
+                    MAX_MATCHES,
+                    &Default::default(),
+                    executor,
+                )
+                .await;
+
+                matches
+                    .into_iter()
+                    .map(|search_match| ListItemType::SearchResult {
+                        entry: entries[search_match.candidate_id].clone(),
+                        positions: search_match.positions,
+                    })
+                    .collect()
+            }
+        })
+    }
+
+    fn search_produced_no_matches(&self) -> bool {
+        self.visible_items.is_empty() && !self.search_query.is_empty()
+    }
+
+    fn selected_history_entry(&self) -> Option<&HistoryEntry> {
+        self.get_history_entry(self.selected_index)
+    }
+
+    fn get_history_entry(&self, visible_items_ix: usize) -> Option<&HistoryEntry> {
+        self.visible_items.get(visible_items_ix)?.history_entry()
+    }
+
+    fn set_selected_index(&mut self, mut index: usize, bias: Bias, cx: &mut Context<Self>) {
+        if self.visible_items.len() == 0 {
+            self.selected_index = 0;
+            return;
+        }
+        while matches!(
+            self.visible_items.get(index),
+            None | Some(ListItemType::BucketSeparator(..))
+        ) {
+            index = match bias {
+                Bias::Left => {
+                    if index == 0 {
+                        self.visible_items.len() - 1
+                    } else {
+                        index - 1
+                    }
+                }
+                Bias::Right => {
+                    if index >= self.visible_items.len() - 1 {
+                        0
+                    } else {
+                        index + 1
+                    }
+                }
+            };
+        }
+        self.selected_index = index;
+        self.scroll_handle
+            .scroll_to_item(index, ScrollStrategy::Top);
+        cx.notify()
+    }
+
+    pub fn select_previous(
+        &mut self,
+        _: &menu::SelectPrevious,
+        _window: &mut Window,
+        cx: &mut Context<Self>,
+    ) {
+        if self.selected_index == 0 {
+            self.set_selected_index(self.visible_items.len() - 1, Bias::Left, cx);
+        } else {
+            self.set_selected_index(self.selected_index - 1, Bias::Left, cx);
+        }
+    }
+
+    pub fn select_next(
+        &mut self,
+        _: &menu::SelectNext,
+        _window: &mut Window,
+        cx: &mut Context<Self>,
+    ) {
+        if self.selected_index == self.visible_items.len() - 1 {
+            self.set_selected_index(0, Bias::Right, cx);
+        } else {
+            self.set_selected_index(self.selected_index + 1, Bias::Right, cx);
+        }
+    }
+
+    fn select_first(
+        &mut self,
+        _: &menu::SelectFirst,
+        _window: &mut Window,
+        cx: &mut Context<Self>,
+    ) {
+        self.set_selected_index(0, Bias::Right, cx);
+    }
+
+    fn select_last(&mut self, _: &menu::SelectLast, _window: &mut Window, cx: &mut Context<Self>) {
+        self.set_selected_index(self.visible_items.len() - 1, Bias::Left, cx);
+    }
+
+    fn confirm(&mut self, _: &menu::Confirm, _window: &mut Window, cx: &mut Context<Self>) {
+        self.confirm_entry(self.selected_index, cx);
+    }
+
+    fn confirm_entry(&mut self, ix: usize, cx: &mut Context<Self>) {
+        let Some(entry) = self.get_history_entry(ix) else {
+            return;
+        };
+        cx.emit(ThreadHistoryEvent::Open(entry.clone()));
+    }
+
+    fn remove_selected_thread(
+        &mut self,
+        _: &RemoveSelectedThread,
+        _window: &mut Window,
+        cx: &mut Context<Self>,
+    ) {
+        self.remove_thread(self.selected_index, cx)
+    }
+
+    fn remove_thread(&mut self, visible_item_ix: usize, cx: &mut Context<Self>) {
+        let Some(entry) = self.get_history_entry(visible_item_ix) else {
+            return;
+        };
+
+        let task = match entry {
+            HistoryEntry::AcpThread(thread) => self
+                .history_store
+                .update(cx, |this, cx| this.delete_thread(thread.id.clone(), cx)),
+            HistoryEntry::TextThread(context) => self.history_store.update(cx, |this, cx| {
+                this.delete_text_thread(context.path.clone(), cx)
+            }),
+        };
+        task.detach_and_log_err(cx);
+    }
+
+    fn render_scrollbar(&self, cx: &mut Context<Self>) -> Option<Stateful<Div>> {
+        if !(self.scrollbar_visibility || self.scrollbar_state.is_dragging()) {
+            return None;
+        }
+
+        Some(
+            div()
+                .occlude()
+                .id("thread-history-scroll")
+                .h_full()
+                .bg(cx.theme().colors().panel_background.opacity(0.8))
+                .border_l_1()
+                .border_color(cx.theme().colors().border_variant)
+                .absolute()
+                .right_1()
+                .top_0()
+                .bottom_0()
+                .w_4()
+                .pl_1()
+                .cursor_default()
+                .on_mouse_move(cx.listener(|_, _, _window, cx| {
+                    cx.notify();
+                    cx.stop_propagation()
+                }))
+                .on_hover(|_, _window, cx| {
+                    cx.stop_propagation();
+                })
+                .on_any_mouse_down(|_, _window, cx| {
+                    cx.stop_propagation();
+                })
+                .on_scroll_wheel(cx.listener(|_, _, _window, cx| {
+                    cx.notify();
+                }))
+                .children(Scrollbar::vertical(self.scrollbar_state.clone())),
+        )
+    }
+
+    fn render_list_items(
+        &mut self,
+        range: Range<usize>,
+        _window: &mut Window,
+        cx: &mut Context<Self>,
+    ) -> Vec<AnyElement> {
+        self.visible_items
+            .get(range.clone())
+            .into_iter()
+            .flatten()
+            .enumerate()
+            .map(|(ix, item)| self.render_list_item(item, range.start + ix, cx))
+            .collect()
+    }
+
+    fn render_list_item(&self, item: &ListItemType, ix: usize, cx: &Context<Self>) -> AnyElement {
+        match item {
+            ListItemType::Entry { entry, format } => self
+                .render_history_entry(entry, *format, ix, Vec::default(), cx)
+                .into_any(),
+            ListItemType::SearchResult { entry, positions } => self.render_history_entry(
+                entry,
+                EntryTimeFormat::DateAndTime,
+                ix,
+                positions.clone(),
+                cx,
+            ),
+            ListItemType::BucketSeparator(bucket) => div()
+                .px(DynamicSpacing::Base06.rems(cx))
+                .pt_2()
+                .pb_1()
+                .child(
+                    Label::new(bucket.to_string())
+                        .size(LabelSize::XSmall)
+                        .color(Color::Muted),
+                )
+                .into_any_element(),
+        }
+    }
+
+    fn render_history_entry(
+        &self,
+        entry: &HistoryEntry,
+        format: EntryTimeFormat,
+        ix: usize,
+        highlight_positions: Vec<usize>,
+        cx: &Context<Self>,
+    ) -> AnyElement {
+        let selected = ix == self.selected_index;
+        let hovered = Some(ix) == self.hovered_index;
+        let timestamp = entry.updated_at().timestamp();
+        let thread_timestamp = format.format_timestamp(timestamp, self.local_timezone);
+
+        h_flex()
+            .w_full()
+            .pb_1()
+            .child(
+                ListItem::new(ix)
+                    .rounded()
+                    .toggle_state(selected)
+                    .spacing(ListItemSpacing::Sparse)
+                    .start_slot(
+                        h_flex()
+                            .w_full()
+                            .gap_2()
+                            .justify_between()
+                            .child(
+                                HighlightedLabel::new(entry.title(), highlight_positions)
+                                    .size(LabelSize::Small)
+                                    .truncate(),
+                            )
+                            .child(
+                                Label::new(thread_timestamp)
+                                    .color(Color::Muted)
+                                    .size(LabelSize::XSmall),
+                            ),
+                    )
+                    .on_hover(cx.listener(move |this, is_hovered, _window, cx| {
+                        if *is_hovered {
+                            this.hovered_index = Some(ix);
+                        } else if this.hovered_index == Some(ix) {
+                            this.hovered_index = None;
+                        }
+
+                        cx.notify();
+                    }))
+                    .end_slot::<IconButton>(if hovered || selected {
+                        Some(
+                            IconButton::new("delete", IconName::Trash)
+                                .shape(IconButtonShape::Square)
+                                .icon_size(IconSize::XSmall)
+                                .icon_color(Color::Muted)
+                                .tooltip(move |window, cx| {
+                                    Tooltip::for_action("Delete", &RemoveSelectedThread, window, cx)
+                                })
+                                .on_click(
+                                    cx.listener(move |this, _, _, cx| this.remove_thread(ix, cx)),
+                                ),
+                        )
+                    } else {
+                        None
+                    })
+                    .on_click(cx.listener(move |this, _, _, cx| this.confirm_entry(ix, cx))),
+            )
+            .into_any_element()
+    }
+}
+
+impl Focusable for AcpThreadHistory {
+    fn focus_handle(&self, cx: &App) -> FocusHandle {
+        self.search_editor.focus_handle(cx)
+    }
+}
+
+impl Render for AcpThreadHistory {
+    fn render(&mut self, _window: &mut Window, cx: &mut Context<Self>) -> impl IntoElement {
+        v_flex()
+            .key_context("ThreadHistory")
+            .size_full()
+            .on_action(cx.listener(Self::select_previous))
+            .on_action(cx.listener(Self::select_next))
+            .on_action(cx.listener(Self::select_first))
+            .on_action(cx.listener(Self::select_last))
+            .on_action(cx.listener(Self::confirm))
+            .on_action(cx.listener(Self::remove_selected_thread))
+            .when(!self.history_store.read(cx).is_empty(cx), |parent| {
+                parent.child(
+                    h_flex()
+                        .h(px(41.)) // Match the toolbar perfectly
+                        .w_full()
+                        .py_1()
+                        .px_2()
+                        .gap_2()
+                        .justify_between()
+                        .border_b_1()
+                        .border_color(cx.theme().colors().border)
+                        .child(
+                            Icon::new(IconName::MagnifyingGlass)
+                                .color(Color::Muted)
+                                .size(IconSize::Small),
+                        )
+                        .child(self.search_editor.clone()),
+                )
+            })
+            .child({
+                let view = v_flex()
+                    .id("list-container")
+                    .relative()
+                    .overflow_hidden()
+                    .flex_grow();
+
+                if self.history_store.read(cx).is_empty(cx) {
+                    view.justify_center()
+                        .child(
+                            h_flex().w_full().justify_center().child(
+                                Label::new("You don't have any past threads yet.")
+                                    .size(LabelSize::Small),
+                            ),
+                        )
+                } else if self.search_produced_no_matches() {
+                    view.justify_center().child(
+                        h_flex().w_full().justify_center().child(
+                            Label::new("No threads match your search.").size(LabelSize::Small),
+                        ),
+                    )
+                } else {
+                    view.pr_5()
+                        .child(
+                            uniform_list(
+                                "thread-history",
+                                self.visible_items.len(),
+                                cx.processor(|this, range: Range<usize>, window, cx| {
+                                    this.render_list_items(range, window, cx)
+                                }),
+                            )
+                            .p_1()
+                            .track_scroll(self.scroll_handle.clone())
+                            .flex_grow(),
+                        )
+                        .when_some(self.render_scrollbar(cx), |div, scrollbar| {
+                            div.child(scrollbar)
+                        })
+                }
+            })
+    }
+}
+
+#[derive(IntoElement)]
+pub struct AcpHistoryEntryElement {
+    entry: HistoryEntry,
+    thread_view: WeakEntity<AcpThreadView>,
+    selected: bool,
+    hovered: bool,
+    on_hover: Box<dyn Fn(&bool, &mut Window, &mut App) + 'static>,
+}
+
+impl AcpHistoryEntryElement {
+    pub fn new(entry: HistoryEntry, thread_view: WeakEntity<AcpThreadView>) -> Self {
+        Self {
+            entry,
+            thread_view,
+            selected: false,
+            hovered: false,
+            on_hover: Box::new(|_, _, _| {}),
+        }
+    }
+
+    pub fn hovered(mut self, hovered: bool) -> Self {
+        self.hovered = hovered;
+        self
+    }
+
+    pub fn on_hover(mut self, on_hover: impl Fn(&bool, &mut Window, &mut App) + 'static) -> Self {
+        self.on_hover = Box::new(on_hover);
+        self
+    }
+}
+
+impl RenderOnce for AcpHistoryEntryElement {
+    fn render(self, _window: &mut Window, _cx: &mut App) -> impl IntoElement {
+        let id = self.entry.id();
+        let title = self.entry.title();
+        let timestamp = self.entry.updated_at();
+
+        let formatted_time = {
+            let now = chrono::Utc::now();
+            let duration = now.signed_duration_since(timestamp);
+
+            if duration.num_days() > 0 {
+                format!("{}d", duration.num_days())
+            } else if duration.num_hours() > 0 {
+                format!("{}h ago", duration.num_hours())
+            } else if duration.num_minutes() > 0 {
+                format!("{}m ago", duration.num_minutes())
+            } else {
+                "Just now".to_string()
+            }
+        };
+
+        ListItem::new(id)
+            .rounded()
+            .toggle_state(self.selected)
+            .spacing(ListItemSpacing::Sparse)
+            .start_slot(
+                h_flex()
+                    .w_full()
+                    .gap_2()
+                    .justify_between()
+                    .child(Label::new(title).size(LabelSize::Small).truncate())
+                    .child(
+                        Label::new(formatted_time)
+                            .color(Color::Muted)
+                            .size(LabelSize::XSmall),
+                    ),
+            )
+            .on_hover(self.on_hover)
+            .end_slot::<IconButton>(if self.hovered || self.selected {
+                Some(
+                    IconButton::new("delete", IconName::Trash)
+                        .shape(IconButtonShape::Square)
+                        .icon_size(IconSize::XSmall)
+                        .icon_color(Color::Muted)
+                        .tooltip(move |window, cx| {
+                            Tooltip::for_action("Delete", &RemoveSelectedThread, window, cx)
+                        })
+                        .on_click({
+                            let thread_view = self.thread_view.clone();
+                            let entry = self.entry.clone();
+
+                            move |_event, _window, cx| {
+                                if let Some(thread_view) = thread_view.upgrade() {
+                                    thread_view.update(cx, |thread_view, cx| {
+                                        thread_view.delete_history_entry(entry.clone(), cx);
+                                    });
+                                }
+                            }
+                        }),
+                )
+            } else {
+                None
+            })
+            .on_click({
+                let thread_view = self.thread_view.clone();
+                let entry = self.entry;
+
+                move |_event, window, cx| {
+                    if let Some(workspace) = thread_view
+                        .upgrade()
+                        .and_then(|view| view.read(cx).workspace().upgrade())
+                    {
+                        match &entry {
+                            HistoryEntry::AcpThread(thread_metadata) => {
+                                if let Some(panel) = workspace.read(cx).panel::<AgentPanel>(cx) {
+                                    panel.update(cx, |panel, cx| {
+                                        panel.load_agent_thread(
+                                            thread_metadata.clone(),
+                                            window,
+                                            cx,
+                                        );
+                                    });
+                                }
+                            }
+                            HistoryEntry::TextThread(context) => {
+                                if let Some(panel) = workspace.read(cx).panel::<AgentPanel>(cx) {
+                                    panel.update(cx, |panel, cx| {
+                                        panel
+                                            .open_saved_prompt_editor(
+                                                context.path.clone(),
+                                                window,
+                                                cx,
+                                            )
+                                            .detach_and_log_err(cx);
+                                    });
+                                }
+                            }
+                        }
+                    }
+                }
+            })
+    }
+}
+
+#[derive(Clone, Copy)]
+pub enum EntryTimeFormat {
+    DateAndTime,
+    TimeOnly,
+}
+
+impl EntryTimeFormat {
+    fn format_timestamp(&self, timestamp: i64, timezone: UtcOffset) -> String {
+        let timestamp = OffsetDateTime::from_unix_timestamp(timestamp).unwrap();
+
+        match self {
+            EntryTimeFormat::DateAndTime => time_format::format_localized_timestamp(
+                timestamp,
+                OffsetDateTime::now_utc(),
+                timezone,
+                time_format::TimestampFormat::EnhancedAbsolute,
+            ),
+            EntryTimeFormat::TimeOnly => time_format::format_time(timestamp),
+        }
+    }
+}
+
+impl From<TimeBucket> for EntryTimeFormat {
+    fn from(bucket: TimeBucket) -> Self {
+        match bucket {
+            TimeBucket::Today => EntryTimeFormat::TimeOnly,
+            TimeBucket::Yesterday => EntryTimeFormat::TimeOnly,
+            TimeBucket::ThisWeek => EntryTimeFormat::DateAndTime,
+            TimeBucket::PastWeek => EntryTimeFormat::DateAndTime,
+            TimeBucket::All => EntryTimeFormat::DateAndTime,
+        }
+    }
+}
+
+#[derive(PartialEq, Eq, Clone, Copy, Debug)]
+enum TimeBucket {
+    Today,
+    Yesterday,
+    ThisWeek,
+    PastWeek,
+    All,
+}
+
+impl TimeBucket {
+    fn from_dates(reference: NaiveDate, date: NaiveDate) -> Self {
+        if date == reference {
+            return TimeBucket::Today;
+        }
+
+        if date == reference - TimeDelta::days(1) {
+            return TimeBucket::Yesterday;
+        }
+
+        let week = date.iso_week();
+
+        if reference.iso_week() == week {
+            return TimeBucket::ThisWeek;
+        }
+
+        let last_week = (reference - TimeDelta::days(7)).iso_week();
+
+        if week == last_week {
+            return TimeBucket::PastWeek;
+        }
+
+        TimeBucket::All
+    }
+}
+
+impl Display for TimeBucket {
+    fn fmt(&self, f: &mut std::fmt::Formatter<'_>) -> std::fmt::Result {
+        match self {
+            TimeBucket::Today => write!(f, "Today"),
+            TimeBucket::Yesterday => write!(f, "Yesterday"),
+            TimeBucket::ThisWeek => write!(f, "This Week"),
+            TimeBucket::PastWeek => write!(f, "Past Week"),
+            TimeBucket::All => write!(f, "All"),
+        }
+    }
+}
+
+#[cfg(test)]
+mod tests {
+    use super::*;
+    use chrono::NaiveDate;
+
+    #[test]
+    fn test_time_bucket_from_dates() {
+        let today = NaiveDate::from_ymd_opt(2023, 1, 15).unwrap();
+
+        let date = today;
+        assert_eq!(TimeBucket::from_dates(today, date), TimeBucket::Today);
+
+        let date = NaiveDate::from_ymd_opt(2023, 1, 14).unwrap();
+        assert_eq!(TimeBucket::from_dates(today, date), TimeBucket::Yesterday);
+
+        let date = NaiveDate::from_ymd_opt(2023, 1, 13).unwrap();
+        assert_eq!(TimeBucket::from_dates(today, date), TimeBucket::ThisWeek);
+
+        let date = NaiveDate::from_ymd_opt(2023, 1, 11).unwrap();
+        assert_eq!(TimeBucket::from_dates(today, date), TimeBucket::ThisWeek);
+
+        let date = NaiveDate::from_ymd_opt(2023, 1, 8).unwrap();
+        assert_eq!(TimeBucket::from_dates(today, date), TimeBucket::PastWeek);
+
+        let date = NaiveDate::from_ymd_opt(2023, 1, 5).unwrap();
+        assert_eq!(TimeBucket::from_dates(today, date), TimeBucket::PastWeek);
+
+        // All: not in this week or last week
+        let date = NaiveDate::from_ymd_opt(2023, 1, 1).unwrap();
+        assert_eq!(TimeBucket::from_dates(today, date), TimeBucket::All);
+
+        // Test year boundary cases
+        let new_year = NaiveDate::from_ymd_opt(2023, 1, 1).unwrap();
+
+        let date = NaiveDate::from_ymd_opt(2022, 12, 31).unwrap();
+        assert_eq!(
+            TimeBucket::from_dates(new_year, date),
+            TimeBucket::Yesterday
+        );
+
+        let date = NaiveDate::from_ymd_opt(2022, 12, 28).unwrap();
+        assert_eq!(TimeBucket::from_dates(new_year, date), TimeBucket::ThisWeek);
+    }
+}
--- a/crates/agent_ui/src/acp/thread_view.rs
+++ b/crates/agent_ui/src/acp/thread_view.rs
--- a/crates/agent_ui/src/active_thread.rs
+++ b/crates/agent_ui/src/active_thread.rs
@@ -491,7 +491,7 @@ fn render_markdown_code_block(
            .on_click({
                let active_thread = active_thread.clone();
                let parsed_markdown = parsed_markdown.clone();
-                let code_block_range = metadata.content_range.clone();
+                let code_block_range = metadata.content_range;
                move |_event, _window, cx| {
                    active_thread.update(cx, |this, cx| {
                        this.copied_code_block_ids.insert((message_id, ix));
@@ -532,7 +532,6 @@ fn render_markdown_code_block(
                "Expand Code"
            }))
            .on_click({
-                let active_thread = active_thread.clone();
                move |_event, _window, cx| {
                    active_thread.update(cx, |this, cx| {
                        this.toggle_codeblock_expanded(message_id, ix);
@@ -780,13 +779,11 @@ impl ActiveThread {

        let list_state = ListState::new(0, ListAlignment::Bottom, px(2048.));

-        let workspace_subscription = if let Some(workspace) = workspace.upgrade() {
-            Some(cx.observe_release(&workspace, |this, _, cx| {
+        let workspace_subscription = workspace.upgrade().map(|workspace| {
+            cx.observe_release(&workspace, |this, _, cx| {
                this.dismiss_notifications(cx);
-            }))
-        } else {
-            None
-        };
+            })
+        });

        let mut this = Self {
            language_registry,
@@ -916,7 +913,7 @@ impl ActiveThread {
    ) {
        let rendered = self
            .rendered_tool_uses
-            .entry(tool_use_id.clone())
+            .entry(tool_use_id)
            .or_insert_with(|| RenderedToolUse {
                label: cx.new(|cx| {
                    Markdown::new("".into(), Some(self.language_registry.clone()), None, cx)
@@ -1072,8 +1069,8 @@ impl ActiveThread {
            }
            ThreadEvent::MessageEdited(message_id) => {
                self.clear_last_error();
-                if let Some(index) = self.messages.iter().position(|id| id == message_id) {
-                    if let Some(rendered_message) = self.thread.update(cx, |thread, cx| {
+                if let Some(index) = self.messages.iter().position(|id| id == message_id)
+                    && let Some(rendered_message) = self.thread.update(cx, |thread, cx| {
                        thread.message(*message_id).map(|message| {
                            let mut rendered_message = RenderedMessage {
                                language_registry: self.language_registry.clone(),
@@ -1084,14 +1081,14 @@ impl ActiveThread {
                            }
                            rendered_message
                        })
-                    }) {
-                        self.list_state.splice(index..index + 1, 1);
-                        self.rendered_messages_by_id
-                            .insert(*message_id, rendered_message);
-                        self.scroll_to_bottom(cx);
-                        self.save_thread(cx);
-                        cx.notify();
-                    }
+                    })
+                {
+                    self.list_state.splice(index..index + 1, 1);
+                    self.rendered_messages_by_id
+                        .insert(*message_id, rendered_message);
+                    self.scroll_to_bottom(cx);
+                    self.save_thread(cx);
+                    cx.notify();
                }
            }
            ThreadEvent::MessageDeleted(message_id) => {
@@ -1218,7 +1215,7 @@ impl ActiveThread {
        match AgentSettings::get_global(cx).notify_when_agent_waiting {
            NotifyWhenAgentWaiting::PrimaryScreen => {
                if let Some(primary) = cx.primary_display() {
-                    self.pop_up(icon, caption.into(), title.clone(), window, primary, cx);
+                    self.pop_up(icon, caption.into(), title, window, primary, cx);
                }
            }
            NotifyWhenAgentWaiting::AllScreens => {
@@ -1272,62 +1269,61 @@ impl ActiveThread {
                })
            })
            .log_err()
+            && let Some(pop_up) = screen_window.entity(cx).log_err()
        {
-            if let Some(pop_up) = screen_window.entity(cx).log_err() {
-                self.notification_subscriptions
-                    .entry(screen_window)
-                    .or_insert_with(Vec::new)
-                    .push(cx.subscribe_in(&pop_up, window, {
-                        |this, _, event, window, cx| match event {
-                            AgentNotificationEvent::Accepted => {
-                                let handle = window.window_handle();
-                                cx.activate(true);
+            self.notification_subscriptions
+                .entry(screen_window)
+                .or_insert_with(Vec::new)
+                .push(cx.subscribe_in(&pop_up, window, {
+                    |this, _, event, window, cx| match event {
+                        AgentNotificationEvent::Accepted => {
+                            let handle = window.window_handle();
+                            cx.activate(true);

-                                let workspace_handle = this.workspace.clone();
+                            let workspace_handle = this.workspace.clone();

-                                // If there are multiple Zed windows, activate the correct one.
-                                cx.defer(move |cx| {
-                                    handle
-                                        .update(cx, |_view, window, _cx| {
-                                            window.activate_window();
+                            // If there are multiple Zed windows, activate the correct one.
+                            cx.defer(move |cx| {
+                                handle
+                                    .update(cx, |_view, window, _cx| {
+                                        window.activate_window();

-                                            if let Some(workspace) = workspace_handle.upgrade() {
-                                                workspace.update(_cx, |workspace, cx| {
-                                                    workspace.focus_panel::<AgentPanel>(window, cx);
-                                                });
-                                            }
-                                        })
-                                        .log_err();
-                                });
+                                        if let Some(workspace) = workspace_handle.upgrade() {
+                                            workspace.update(_cx, |workspace, cx| {
+                                                workspace.focus_panel::<AgentPanel>(window, cx);
+                                            });
+                                        }
+                                    })
+                                    .log_err();
+                            });

-                                this.dismiss_notifications(cx);
-                            }
-                            AgentNotificationEvent::Dismissed => {
-                                this.dismiss_notifications(cx);
-                            }
+                            this.dismiss_notifications(cx);
                        }
-                    }));
+                        AgentNotificationEvent::Dismissed => {
+                            this.dismiss_notifications(cx);
+                        }
+                    }
+                }));

-                self.notifications.push(screen_window);
+            self.notifications.push(screen_window);

-                // If the user manually refocuses the original window, dismiss the popup.
-                self.notification_subscriptions
-                    .entry(screen_window)
-                    .or_insert_with(Vec::new)
-                    .push({
-                        let pop_up_weak = pop_up.downgrade();
+            // If the user manually refocuses the original window, dismiss the popup.
+            self.notification_subscriptions
+                .entry(screen_window)
+                .or_insert_with(Vec::new)
+                .push({
+                    let pop_up_weak = pop_up.downgrade();

-                        cx.observe_window_activation(window, move |_, window, cx| {
-                            if window.is_window_active() {
-                                if let Some(pop_up) = pop_up_weak.upgrade() {
-                                    pop_up.update(cx, |_, cx| {
-                                        cx.emit(AgentNotificationEvent::Dismissed);
-                                    });
-                                }
-                            }
-                        })
-                    });
-            }
+                    cx.observe_window_activation(window, move |_, window, cx| {
+                        if window.is_window_active()
+                            && let Some(pop_up) = pop_up_weak.upgrade()
+                        {
+                            pop_up.update(cx, |_, cx| {
+                                cx.emit(AgentNotificationEvent::Dismissed);
+                            });
+                        }
+                    })
+                });
        }
    }

@@ -1374,12 +1370,12 @@ impl ActiveThread {
            editor.focus_handle(cx).focus(window);
            editor.move_to_end(&editor::actions::MoveToEnd, window, cx);
        });
-        let buffer_edited_subscription = cx.subscribe(&editor, |this, _, event, cx| match event {
-            EditorEvent::BufferEdited => {
-                this.update_editing_message_token_count(true, cx);
-            }
-            _ => {}
-        });
+        let buffer_edited_subscription =
+            cx.subscribe(&editor, |this, _, event: &EditorEvent, cx| {
+                if event == &EditorEvent::BufferEdited {
+                    this.update_editing_message_token_count(true, cx);
+                }
+            });

        let context_picker_menu_handle = PopoverMenuHandle::default();
        let context_strip = cx.new(|cx| {
@@ -1599,11 +1595,6 @@ impl ActiveThread {
            return;
        };

-        if model.provider.must_accept_terms(cx) {
-            cx.notify();
-            return;
-        }
-
        let edited_text = state.editor.read(cx).text(cx);

        let creases = state.editor.update(cx, extract_message_creases);
@@ -1766,7 +1757,7 @@ impl ActiveThread {
                .thread
                .read(cx)
                .message(message_id)
-                .map(|msg| msg.to_string())
+                .map(|msg| msg.to_message_content())
                .unwrap_or_default();

            telemetry::event!(
@@ -2113,7 +2104,7 @@ impl ActiveThread {
                                        .gap_1()
                                        .children(message_content)
                                        .when_some(editing_message_state, |this, state| {
-                                            let focus_handle = state.editor.focus_handle(cx).clone();
+                                            let focus_handle = state.editor.focus_handle(cx);

                                            this.child(
                                                h_flex()
@@ -2174,7 +2165,6 @@ impl ActiveThread {
                                                                .icon_color(Color::Muted)
                                                                .icon_size(IconSize::Small)
                                                                .tooltip({
-                                                                    let focus_handle = focus_handle.clone();
                                                                    move |window, cx| {
                                                                        Tooltip::for_action_in(
                                                                            "Regenerate",
@@ -2247,9 +2237,7 @@ impl ActiveThread {
        let after_editing_message = self
            .editing_message
            .as_ref()
-            .map_or(false, |(editing_message_id, _)| {
-                message_id > *editing_message_id
-            });
+            .is_some_and(|(editing_message_id, _)| message_id > *editing_message_id);

        let backdrop = div()
            .id(("backdrop", ix))
@@ -2269,13 +2257,12 @@ impl ActiveThread {
                    let mut error = None;
                    if let Some(last_restore_checkpoint) =
                        self.thread.read(cx).last_restore_checkpoint()
+                        && last_restore_checkpoint.message_id() == message_id
                    {
-                        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());
-                                }
+                        match last_restore_checkpoint {
+                            LastRestoreCheckpoint::Pending { .. } => is_pending = true,
+                            LastRestoreCheckpoint::Error { error: err, .. } => {
+                                error = Some(err.clone());
                            }
                        }
                    }
@@ -2316,7 +2303,7 @@ impl ActiveThread {
                            .into_any_element()
                    } else if let Some(error) = error {
                        restore_checkpoint_button
-                            .tooltip(Tooltip::text(error.to_string()))
+                            .tooltip(Tooltip::text(error))
                            .into_any_element()
                    } else {
                        restore_checkpoint_button.into_any_element()
@@ -2357,7 +2344,6 @@ impl ActiveThread {
                                    this.submit_feedback_message(message_id, cx);
                                    cx.notify();
                                }))
-                                .on_action(cx.listener(Self::confirm_editing_message))
                                .mb_2()
                                .mx_4()
                                .p_2()
--- a/Show More
+++ b/Show More