diff --git a/.github/workflows/create-release-candidate-branch.yml b/.github/workflows/create-release-candidate-branch.yml
index aa37873d2a..2071f69ed4 100644
--- a/.github/workflows/create-release-candidate-branch.yml
+++ b/.github/workflows/create-release-candidate-branch.yml
@@ -44,6 +44,10 @@ jobs:
                   node-version: '20'
                   cache: 'npm'
 
+            # Needed to format the json file being checked in
+            - name: Install dependencies
+              run: npm ci
+
             - name: Calculate Release Version
               id: release-version
               env:
@@ -87,6 +91,9 @@ jobs:
 
                   git add "$VERSION_FILE"
 
+                  # Ensure the file does not cause issues when merged to main
+                  npm run format-staged
+
             - name: Create Release Candidate Branch
               id: release-branch
               env:
@@ -112,5 +119,5 @@ jobs:
                   git config --global user.name "aws-toolkit-automation"
                   # Configure git to use the PAT token for authentication
                   git remote set-url origin "https://x-access-token:${REPO_PAT}@github.com/${{ github.repository }}.git"
-                  git commit -m "Bump agentic version: $RELEASE_VERSION"
+                  git commit -m "chore: bump agentic version: $RELEASE_VERSION"
                   git push --set-upstream origin "$BRANCH_NAME"
diff --git a/.release-please-manifest.json b/.release-please-manifest.json
index c3df1b76e7..e6abdf7be2 100644
--- a/.release-please-manifest.json
+++ b/.release-please-manifest.json
@@ -1,8 +1,8 @@
 {
-    "chat-client": "0.1.31",
+    "chat-client": "0.1.32",
     "core/aws-lsp-core": "0.0.13",
     "server/aws-lsp-antlr4": "0.1.17",
-    "server/aws-lsp-codewhisperer": "0.0.72",
+    "server/aws-lsp-codewhisperer": "0.0.73",
     "server/aws-lsp-json": "0.1.17",
     "server/aws-lsp-partiql": "0.0.16",
     "server/aws-lsp-yaml": "0.1.17"
diff --git a/app/aws-lsp-codewhisperer-runtimes/src/version.json b/app/aws-lsp-codewhisperer-runtimes/src/version.json
index 2381334b11..4c93c3f549 100644
--- a/app/aws-lsp-codewhisperer-runtimes/src/version.json
+++ b/app/aws-lsp-codewhisperer-runtimes/src/version.json
@@ -1,3 +1,3 @@
 {
-    "agenticChat": "1.26.0"
+    "agenticChat": "1.27.0"
 }
diff --git a/chat-client/CHANGELOG.md b/chat-client/CHANGELOG.md
index aa178a18e6..1cd9acfbe0 100644
--- a/chat-client/CHANGELOG.md
+++ b/chat-client/CHANGELOG.md
@@ -1,5 +1,12 @@
 # Changelog
 
+## [0.1.32](https://github.com/aws/language-servers/compare/chat-client/v0.1.31...chat-client/v0.1.32) (2025-08-11)
+
+
+### Features
+
+* **amazonq:** read tool ui revamp ([c65428b](https://github.com/aws/language-servers/commit/c65428bab2cf5e47badf1e3a9453babcf881e60c))
+
 ## [0.1.31](https://github.com/aws/language-servers/compare/chat-client/v0.1.30...chat-client/v0.1.31) (2025-08-06)
 
 
diff --git a/chat-client/package.json b/chat-client/package.json
index 161cb50a0b..df0378f3e4 100644
--- a/chat-client/package.json
+++ b/chat-client/package.json
@@ -1,6 +1,6 @@
 {
     "name": "@aws/chat-client",
-    "version": "0.1.31",
+    "version": "0.1.32",
     "description": "AWS Chat Client",
     "main": "out/index.js",
     "repository": {
diff --git a/chat-client/src/client/mynahUi.ts b/chat-client/src/client/mynahUi.ts
index 527dea06f3..3b42249331 100644
--- a/chat-client/src/client/mynahUi.ts
+++ b/chat-client/src/client/mynahUi.ts
@@ -1353,15 +1353,10 @@ export const createMynahUi = (
                     fileTreeTitle: '',
                     hideFileCount: true,
                     details: toDetailsWithoutIcon(header.fileList.details),
-                    renderAsPills:
-                        !header.fileList.details ||
-                        (Object.values(header.fileList.details).every(detail => !detail.changes) &&
-                            (!header.buttons || !header.buttons.some(button => button.id === 'undo-changes')) &&
-                            !header.status?.icon),
                 }
             }
             if (!isPartialResult) {
-                if (processedHeader && !message.header?.status) {
+                if (processedHeader) {
                     processedHeader.status = undefined
                 }
             }
@@ -1374,8 +1369,7 @@ export const createMynahUi = (
                 processedHeader.buttons !== null &&
                 processedHeader.buttons.length > 0) ||
                 processedHeader.status !== undefined ||
-                processedHeader.icon !== undefined ||
-                processedHeader.fileList !== undefined)
+                processedHeader.icon !== undefined)
 
         const padding =
             message.type === 'tool' ? (fileList ? true : message.messageId?.endsWith('_permission')) : undefined
@@ -1386,10 +1380,8 @@ export const createMynahUi = (
         // Adding this conditional check to show the stop message in the center.
         const contentHorizontalAlignment: ChatItem['contentHorizontalAlignment'] = undefined
 
-        // If message.header?.status?.text is Stopped or Rejected or Ignored etc.. card should be in disabled state.
-        const shouldMute =
-            message.header?.status?.text !== undefined &&
-            ['Stopped', 'Rejected', 'Ignored', 'Failed', 'Error'].includes(message.header.status.text)
+        // If message.header?.status?.text is Stopped or Rejected or Ignored or Completed etc.. card should be in disabled state.
+        const shouldMute = message.header?.status?.text !== undefined && message.header?.status?.text !== 'Completed'
 
         return {
             body: message.body,
diff --git a/integration-tests/q-agentic-chat-server/src/tests/agenticChatInteg.test.ts b/integration-tests/q-agentic-chat-server/src/tests/agenticChatInteg.test.ts
index efc0467d2f..897ee02071 100644
--- a/integration-tests/q-agentic-chat-server/src/tests/agenticChatInteg.test.ts
+++ b/integration-tests/q-agentic-chat-server/src/tests/agenticChatInteg.test.ts
@@ -169,11 +169,11 @@ describe('Q Agentic Chat Server Integration Tests', async () => {
 
         expect(decryptedResult.additionalMessages).to.be.an('array')
         const fsReadMessage = decryptedResult.additionalMessages?.find(
-            msg => msg.type === 'tool' && msg.header?.body === '1 file read'
+            msg => msg.type === 'tool' && msg.fileList?.rootFolderTitle === '1 file read'
         )
         expect(fsReadMessage).to.exist
         const expectedPath = path.join(rootPath, 'test.py')
-        const actualPaths = fsReadMessage?.header?.fileList?.filePaths?.map(normalizePath) || []
+        const actualPaths = fsReadMessage?.fileList?.filePaths?.map(normalizePath) || []
         expect(actualPaths).to.include.members([normalizePath(expectedPath)])
         expect(fsReadMessage?.messageId?.startsWith('tooluse_')).to.be.true
     })
@@ -191,10 +191,10 @@ describe('Q Agentic Chat Server Integration Tests', async () => {
 
         expect(decryptedResult.additionalMessages).to.be.an('array')
         const listDirectoryMessage = decryptedResult.additionalMessages?.find(
-            msg => msg.type === 'tool' && msg.header?.body === '1 directory listed'
+            msg => msg.type === 'tool' && msg.fileList?.rootFolderTitle === '1 directory listed'
         )
         expect(listDirectoryMessage).to.exist
-        const actualPaths = listDirectoryMessage?.header?.fileList?.filePaths?.map(normalizePath) || []
+        const actualPaths = listDirectoryMessage?.fileList?.filePaths?.map(normalizePath) || []
         expect(actualPaths).to.include.members([normalizePath(rootPath)])
         expect(listDirectoryMessage?.messageId?.startsWith('tooluse_')).to.be.true
     })
@@ -371,12 +371,11 @@ describe('Q Agentic Chat Server Integration Tests', async () => {
 
         expect(decryptedResult.additionalMessages).to.be.an('array')
         const fileSearchMessage = decryptedResult.additionalMessages?.find(
-            msg => msg.type === 'tool' && msg.header?.body === 'Searched for `test` in '
+            msg => msg.type === 'tool' && msg.fileList?.rootFolderTitle === '1 directory searched'
         )
         expect(fileSearchMessage).to.exist
         expect(fileSearchMessage?.messageId?.startsWith('tooluse_')).to.be.true
-        expect(fileSearchMessage?.header?.status?.text).to.equal('3 results found')
-        const actualPaths = fileSearchMessage?.header?.fileList?.filePaths?.map(normalizePath) || []
+        const actualPaths = fileSearchMessage?.fileList?.filePaths?.map(normalizePath) || []
         expect(actualPaths).to.include.members([normalizePath(rootPath)])
     })
 })
diff --git a/package-lock.json b/package-lock.json
index 6b55b375a3..b42f206c44 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -251,7 +251,7 @@
         },
         "chat-client": {
             "name": "@aws/chat-client",
-            "version": "0.1.31",
+            "version": "0.1.32",
             "license": "Apache-2.0",
             "dependencies": {
                 "@aws/chat-client-ui-types": "^0.1.56",
@@ -28670,7 +28670,7 @@
         },
         "server/aws-lsp-codewhisperer": {
             "name": "@aws/lsp-codewhisperer",
-            "version": "0.0.72",
+            "version": "0.0.73",
             "bundleDependencies": [
                 "@amzn/codewhisperer-streaming",
                 "@amzn/amazon-q-developer-streaming-client"
diff --git a/server/aws-lsp-codewhisperer/CHANGELOG.md b/server/aws-lsp-codewhisperer/CHANGELOG.md
index 8497df84be..1b2f1011df 100644
--- a/server/aws-lsp-codewhisperer/CHANGELOG.md
+++ b/server/aws-lsp-codewhisperer/CHANGELOG.md
@@ -1,5 +1,25 @@
 # Changelog
 
+## [0.0.73](https://github.com/aws/language-servers/compare/lsp-codewhisperer/v0.0.72...lsp-codewhisperer/v0.0.73) (2025-08-11)
+
+
+### Features
+
+* **amazonq:** read tool ui revamp ([c65428b](https://github.com/aws/language-servers/commit/c65428bab2cf5e47badf1e3a9453babcf881e60c))
+
+
+### Bug Fixes
+
+* **amazonq:** add fallback classpath generation ([#2077](https://github.com/aws/language-servers/issues/2077)) ([3a6ef14](https://github.com/aws/language-servers/commit/3a6ef14e78fa2e75b837bba6524751d65038f416))
+* **amazonq:** emit failed status for amazonq_invokeLLM ([#2071](https://github.com/aws/language-servers/issues/2071)) ([ee52a41](https://github.com/aws/language-servers/commit/ee52a41bc869b275fff708d7955b59f43b93bbd4))
+* **amazonq:** fix fallout of [#2051](https://github.com/aws/language-servers/issues/2051) ([#2057](https://github.com/aws/language-servers/issues/2057)) ([565066b](https://github.com/aws/language-servers/commit/565066bb61adda60333c9646db958d4208bcc8af))
+* **amazonq:** leverage lcs to find the chars added and removed ([#2092](https://github.com/aws/language-servers/issues/2092)) ([40379a8](https://github.com/aws/language-servers/commit/40379a887f8d42cc184239ca3175b4e673cc5286))
+* **amazonq:** skips continuous monitoring when WCS sees workspace as idle ([#2066](https://github.com/aws/language-servers/issues/2066)) ([9cb959d](https://github.com/aws/language-servers/commit/9cb959d4cc450d0907f8bf5265ba01d2aa68bcd0))
+* creating a new sesion for Edits trigger with next token ([#2094](https://github.com/aws/language-servers/issues/2094)) ([1da8730](https://github.com/aws/language-servers/commit/1da8730b6ed6ad53b6561368bf722e56d59596a4))
+* remove edit cache logic ([#2079](https://github.com/aws/language-servers/issues/2079)) ([9bc5b9c](https://github.com/aws/language-servers/commit/9bc5b9c1d77e5fee6f518f7f5016d3a0043a5a77))
+* sessionManager misused because there are 2 types of manager now ([#2090](https://github.com/aws/language-servers/issues/2090)) ([8db059a](https://github.com/aws/language-servers/commit/8db059ab83d94fd7c3ba3eb265044add31c80aea))
+* update client name to support Sagemaker AI origin for agentic chat ([#2093](https://github.com/aws/language-servers/issues/2093)) ([a746fe8](https://github.com/aws/language-servers/commit/a746fe845d5e09563b475f01ce44059dca9fd10f))
+
 ## [0.0.72](https://github.com/aws/language-servers/compare/lsp-codewhisperer/v0.0.71...lsp-codewhisperer/v0.0.72) (2025-08-06)
 
 
diff --git a/server/aws-lsp-codewhisperer/package.json b/server/aws-lsp-codewhisperer/package.json
index cb1bd377fb..fdd34884b1 100644
--- a/server/aws-lsp-codewhisperer/package.json
+++ b/server/aws-lsp-codewhisperer/package.json
@@ -1,6 +1,6 @@
 {
     "name": "@aws/lsp-codewhisperer",
-    "version": "0.0.72",
+    "version": "0.0.73",
     "description": "CodeWhisperer Language Server",
     "main": "out/index.js",
     "repository": {
diff --git a/server/aws-lsp-codewhisperer/src/language-server/agenticChat/agenticChatController.test.ts b/server/aws-lsp-codewhisperer/src/language-server/agenticChat/agenticChatController.test.ts
index 616848d0b5..6c8af7a272 100644
--- a/server/aws-lsp-codewhisperer/src/language-server/agenticChat/agenticChatController.test.ts
+++ b/server/aws-lsp-codewhisperer/src/language-server/agenticChat/agenticChatController.test.ts
@@ -451,7 +451,7 @@ describe('AgenticChatController', () => {
 
             assert.deepStrictEqual(chatResult, {
                 additionalMessages: [],
-                body: '\nHello World!',
+                body: '\n\nHello World!',
                 messageId: 'mock-message-id',
                 buttons: [],
                 codeReference: [],
@@ -1150,7 +1150,7 @@ describe('AgenticChatController', () => {
             sinon.assert.callCount(testFeatures.lsp.sendProgress, mockChatResponseList.length + 1) // response length + 1 loading messages
             assert.deepStrictEqual(chatResult, {
                 additionalMessages: [],
-                body: '\nHello World!',
+                body: '\n\nHello World!',
                 messageId: 'mock-message-id',
                 codeReference: [],
                 buttons: [],
@@ -1169,7 +1169,7 @@ describe('AgenticChatController', () => {
             sinon.assert.callCount(testFeatures.lsp.sendProgress, mockChatResponseList.length + 1) // response length + 1 loading message
             assert.deepStrictEqual(chatResult, {
                 additionalMessages: [],
-                body: '\nHello World!',
+                body: '\n\nHello World!',
                 messageId: 'mock-message-id',
                 buttons: [],
                 codeReference: [],
diff --git a/server/aws-lsp-codewhisperer/src/language-server/agenticChat/agenticChatController.ts b/server/aws-lsp-codewhisperer/src/language-server/agenticChat/agenticChatController.ts
index 09bf965819..72217fae07 100644
--- a/server/aws-lsp-codewhisperer/src/language-server/agenticChat/agenticChatController.ts
+++ b/server/aws-lsp-codewhisperer/src/language-server/agenticChat/agenticChatController.ts
@@ -169,7 +169,7 @@ import { ExecuteBash, ExecuteBashParams } from './tools/executeBash'
 import { ExplanatoryParams, InvokeOutput, ToolApprovalException } from './tools/toolShared'
 import { validatePathBasic, validatePathExists, validatePaths as validatePathsSync } from './utils/pathValidation'
 import { GrepSearch, SanitizedRipgrepOutput } from './tools/grepSearch'
-import { FileSearch, FileSearchParams, isFileSearchParams } from './tools/fileSearch'
+import { FileSearch, FileSearchParams } from './tools/fileSearch'
 import { FsReplace, FsReplaceParams } from './tools/fsReplace'
 import { loggingUtils, timeoutUtils } from '@aws/lsp-core'
 import { diffLines } from 'diff'
@@ -1695,7 +1695,8 @@ export class AgenticChatController implements ChatHandlers {
                 // remove progress UI
                 await chatResultStream.removeResultBlockAndUpdateUI(progressPrefix + toolUse.toolUseId)
 
-                if (![FS_WRITE, FS_REPLACE].includes(toolUse.name)) {
+                // fsRead and listDirectory write to an existing card and could show nothing in the current position
+                if (![FS_WRITE, FS_REPLACE, FS_READ, LIST_DIRECTORY].includes(toolUse.name)) {
                     await this.#showUndoAllIfRequired(chatResultStream, session)
                 }
                 // fsWrite can take a long time, so we render fsWrite  Explanatory upon partial streaming responses.
@@ -1910,19 +1911,10 @@ export class AgenticChatController implements ChatHandlers {
                 switch (toolUse.name) {
                     case FS_READ:
                     case LIST_DIRECTORY:
-                        const readToolResult = await this.#processReadTool(toolUse, chatResultStream)
-                        if (readToolResult) {
-                            await chatResultStream.writeResultBlock(readToolResult)
-                        }
-                        break
                     case FILE_SEARCH:
-                        if (isFileSearchParams(toolUse.input)) {
-                            await this.#processFileSearchTool(
-                                toolUse.input,
-                                toolUse.toolUseId,
-                                result,
-                                chatResultStream
-                            )
+                        const initialListDirResult = this.#processReadOrListOrSearch(toolUse, chatResultStream)
+                        if (initialListDirResult) {
+                            await chatResultStream.writeResultBlock(initialListDirResult)
                         }
                         break
                     // no need to write tool result for listDir,fsRead,fileSearch into chat stream
@@ -2323,6 +2315,7 @@ export class AgenticChatController implements ChatHandlers {
         }
 
         const toolMsgId = toolUse.toolUseId!
+        const chatMsgId = chatResultStream.getResult().messageId
         let headerEmitted = false
 
         const initialHeader: ChatMessage['header'] = {
@@ -2360,6 +2353,13 @@ export class AgenticChatController implements ChatHandlers {
                     header: completedHeader,
                 })
 
+                await chatResultStream.writeResultBlock({
+                    type: 'answer',
+                    messageId: chatMsgId,
+                    body: '',
+                    header: undefined,
+                })
+
                 this.#stoppedToolUses.add(toolMsgId)
             },
         })
@@ -2877,135 +2877,70 @@ export class AgenticChatController implements ChatHandlers {
         }
     }
 
-    async #processFileSearchTool(
-        toolInput: FileSearchParams,
-        toolUseId: string,
-        result: InvokeOutput,
-        chatResultStream: AgenticChatResultStream
-    ): Promise<void> {
-        if (typeof result.output.content !== 'string') return
+    #processReadOrListOrSearch(toolUse: ToolUse, chatResultStream: AgenticChatResultStream): ChatMessage | undefined {
+        let messageIdToUpdate = toolUse.toolUseId!
+        const currentId = chatResultStream.getMessageIdToUpdateForTool(toolUse.name!)
 
-        const { queryName, path: inputPath } = toolInput
-        const resultCount = result.output.content
-            .split('\n')
-            .filter(line => line.trim().startsWith('[F]') || line.trim().startsWith('[D]')).length
-
-        const chatMessage: ChatMessage = {
-            type: 'tool',
-            messageId: toolUseId,
-            header: {
-                body: `Searched for "${queryName}" in `,
-                icon: 'search',
-                status: {
-                    text: `${resultCount} result${resultCount !== 1 ? 's' : ''} found`,
-                },
-                fileList: {
-                    filePaths: [inputPath],
-                    details: {
-                        [inputPath]: {
-                            description: inputPath,
-                            visibleName: path.basename(inputPath),
-                            clickable: false,
-                        },
-                    },
-                },
-            },
+        if (currentId) {
+            messageIdToUpdate = currentId
+        } else {
+            chatResultStream.setMessageIdToUpdateForTool(toolUse.name!, messageIdToUpdate)
         }
-        await chatResultStream.writeResultBlock(chatMessage)
-    }
-
-    async #processReadTool(
-        toolUse: ToolUse,
-        chatResultStream: AgenticChatResultStream
-    ): Promise<ChatMessage | undefined> {
-        let currentPaths: string[] = []
+        let currentPaths = []
         if (toolUse.name === FS_READ) {
-            currentPaths = (toolUse.input as unknown as FsReadParams)?.paths || []
-        } else if (toolUse.name === LIST_DIRECTORY) {
-            const singlePath = (toolUse.input as unknown as ListDirectoryParams)?.path
-            if (singlePath) {
-                currentPaths = [singlePath]
-            }
-        } else if (toolUse.name === FILE_SEARCH) {
-            const queryName = (toolUse.input as unknown as FileSearchParams)?.queryName
-            if (queryName) {
-                currentPaths = [queryName]
-            }
+            currentPaths = (toolUse.input as unknown as FsReadParams)?.paths
         } else {
-            return
+            currentPaths.push((toolUse.input as unknown as ListDirectoryParams | FileSearchParams)?.path)
         }
 
-        if (currentPaths.length === 0) return
-
-        // Check if the last message is the same tool type
-        const lastMessage = chatResultStream.getLastMessage()
-        const isSameToolType =
-            lastMessage?.type === 'tool' && lastMessage.header?.icon === this.#toolToIcon(toolUse.name)
-
-        let allPaths = currentPaths
-
-        if (isSameToolType && lastMessage.messageId) {
-            // Combine with existing paths and overwrite the last message
-            const existingPaths = lastMessage.header?.fileList?.filePaths || []
-            allPaths = [...existingPaths, ...currentPaths]
+        if (!currentPaths) return
 
-            const blockId = chatResultStream.getMessageBlockId(lastMessage.messageId)
-            if (blockId !== undefined) {
-                // Create the updated message with combined paths
-                const updatedMessage = this.#createFileListToolMessage(toolUse, allPaths, lastMessage.messageId)
-                // Overwrite the existing block
-                await chatResultStream.overwriteResultBlock(updatedMessage, blockId)
-                return undefined // Don't return a message since we already wrote it
+        for (const currentPath of currentPaths) {
+            const existingPaths = chatResultStream.getMessageOperation(messageIdToUpdate)?.filePaths || []
+            // Check if path already exists in the list
+            const isPathAlreadyProcessed = existingPaths.some(path => path.relativeFilePath === currentPath)
+            if (!isPathAlreadyProcessed) {
+                const currentFileDetail = {
+                    relativeFilePath: currentPath,
+                    lineRanges: [{ first: -1, second: -1 }],
+                }
+                chatResultStream.addMessageOperation(messageIdToUpdate, toolUse.name!, [
+                    ...existingPaths,
+                    currentFileDetail,
+                ])
             }
         }
-
-        // Create new message with current paths
-        return this.#createFileListToolMessage(toolUse, allPaths, toolUse.toolUseId!)
-    }
-
-    #createFileListToolMessage(toolUse: ToolUse, filePaths: string[], messageId: string): ChatMessage {
-        const itemCount = filePaths.length
         let title: string
-        if (itemCount === 0) {
+        const itemCount = chatResultStream.getMessageOperation(messageIdToUpdate)?.filePaths.length
+        const filePathsPushed = chatResultStream.getMessageOperation(messageIdToUpdate)?.filePaths ?? []
+        if (!itemCount) {
             title = 'Gathering context'
         } else {
             title =
                 toolUse.name === FS_READ
                     ? `${itemCount} file${itemCount > 1 ? 's' : ''} read`
-                    : toolUse.name === LIST_DIRECTORY
-                      ? `${itemCount} ${itemCount === 1 ? 'directory' : 'directories'} listed`
-                      : ''
+                    : toolUse.name === FILE_SEARCH
+                      ? `${itemCount} ${itemCount === 1 ? 'directory' : 'directories'} searched`
+                      : `${itemCount} ${itemCount === 1 ? 'directory' : 'directories'} listed`
         }
         const details: Record<string, FileDetails> = {}
-        for (const filePath of filePaths) {
-            details[filePath] = {
-                description: filePath,
-                visibleName: path.basename(filePath),
-                clickable: toolUse.name === FS_READ,
+        for (const item of filePathsPushed) {
+            details[item.relativeFilePath] = {
+                lineRanges: item.lineRanges,
+                description: item.relativeFilePath,
             }
         }
+
+        const fileList: FileList = {
+            rootFolderTitle: title,
+            filePaths: filePathsPushed.map(item => item.relativeFilePath),
+            details,
+        }
         return {
             type: 'tool',
-            header: {
-                body: title,
-                icon: this.#toolToIcon(toolUse.name),
-                fileList: {
-                    filePaths,
-                    details,
-                },
-            },
-            messageId,
-        }
-    }
-
-    #toolToIcon(toolName: string | undefined): string | undefined {
-        switch (toolName) {
-            case FS_READ:
-                return 'eye'
-            case LIST_DIRECTORY:
-                return 'check-list'
-            default:
-                return undefined
+            fileList,
+            messageId: messageIdToUpdate,
+            body: '',
         }
     }
 
@@ -3021,7 +2956,14 @@ export class AgenticChatController implements ChatHandlers {
             return undefined
         }
 
-        const messageIdToUpdate = toolUse.toolUseId!
+        let messageIdToUpdate = toolUse.toolUseId!
+        const currentId = chatResultStream.getMessageIdToUpdateForTool(toolUse.name!)
+
+        if (currentId) {
+            messageIdToUpdate = currentId
+        } else {
+            chatResultStream.setMessageIdToUpdateForTool(toolUse.name!, messageIdToUpdate)
+        }
 
         // Extract search results from the tool output
         const output = result.output.content as SanitizedRipgrepOutput
diff --git a/server/aws-lsp-codewhisperer/src/language-server/agenticChat/agenticChatResultStream.ts b/server/aws-lsp-codewhisperer/src/language-server/agenticChat/agenticChatResultStream.ts
index 5fb5c39bab..70b3452361 100644
--- a/server/aws-lsp-codewhisperer/src/language-server/agenticChat/agenticChatResultStream.ts
+++ b/server/aws-lsp-codewhisperer/src/language-server/agenticChat/agenticChatResultStream.ts
@@ -1,4 +1,4 @@
-import { ChatResult, ChatMessage } from '@aws/language-server-runtimes/protocol'
+import { ChatResult, FileDetails, ChatMessage } from '@aws/language-server-runtimes/protocol'
 import { randomUUID } from 'crypto'
 
 export interface ResultStreamWriter {
@@ -32,20 +32,33 @@ export interface ResultStreamWriter {
     close(): Promise<void>
 }
 
-export const progressPrefix = 'progress_'
-
 /**
  * This class wraps around lsp.sendProgress to provide a more helpful interface for streaming a ChatResult to the client.
  * ChatResults are grouped into blocks that can be written directly, or streamed in.
  * In the final message, blocks are seperated by resultDelimiter defined below.
  */
+
+interface FileDetailsWithPath extends FileDetails {
+    relativeFilePath: string
+}
+
+type OperationType = 'read' | 'write' | 'listDir'
+
+export const progressPrefix = 'progress_'
+
+interface FileOperation {
+    type: OperationType
+    filePaths: FileDetailsWithPath[]
+}
 export class AgenticChatResultStream {
-    static readonly resultDelimiter = '\n'
+    static readonly resultDelimiter = '\n\n'
     #state = {
         chatResultBlocks: [] as ChatMessage[],
         isLocked: false,
         uuid: randomUUID(),
         messageId: undefined as string | undefined,
+        messageIdToUpdateForTool: new Map<OperationType, string>(),
+        messageOperations: new Map<string, FileOperation>(),
     }
     readonly #sendProgress: (newChatResult: ChatResult | string) => Promise<void>
 
@@ -57,6 +70,33 @@ export class AgenticChatResultStream {
         return this.#joinResults(this.#state.chatResultBlocks, only)
     }
 
+    setMessageIdToUpdateForTool(toolName: string, messageId: string) {
+        this.#state.messageIdToUpdateForTool.set(toolName as OperationType, messageId)
+    }
+
+    getMessageIdToUpdateForTool(toolName: string): string | undefined {
+        return this.#state.messageIdToUpdateForTool.get(toolName as OperationType)
+    }
+
+    /**
+     * Adds a file operation for a specific message
+     * @param messageId The ID of the message
+     * @param type The type of operation ('fsRead' or 'listDirectory' or 'fsWrite')
+     * @param filePaths Array of FileDetailsWithPath involved in the operation
+     */
+    addMessageOperation(messageId: string, type: string, filePaths: FileDetailsWithPath[]) {
+        this.#state.messageOperations.set(messageId, { type: type as OperationType, filePaths })
+    }
+
+    /**
+     * Gets the file operation details for a specific message
+     * @param messageId The ID of the message
+     * @returns The file operation details or undefined if not found
+     */
+    getMessageOperation(messageId: string): FileOperation | undefined {
+        return this.#state.messageOperations.get(messageId)
+    }
+
     #joinResults(chatResults: ChatMessage[], only?: string): ChatResult {
         const result: ChatResult = {
             body: '',
@@ -71,9 +111,9 @@ export class AgenticChatResultStream {
                     return {
                         ...acc,
                         buttons: [...(acc.buttons ?? []), ...(c.buttons ?? [])],
-                        body: acc.body + (c.body ? AgenticChatResultStream.resultDelimiter + c.body : ''),
-                        ...(c.contextList && c.type !== 'tool' && { contextList: c.contextList }),
-                        header: c.header !== undefined ? c.header : acc.header,
+                        body: acc.body + AgenticChatResultStream.resultDelimiter + c.body,
+                        ...(c.contextList && { contextList: c.contextList }),
+                        header: Object.prototype.hasOwnProperty.call(c, 'header') ? c.header : acc.header,
                         codeReference: [...(acc.codeReference ?? []), ...(c.codeReference ?? [])],
                     }
                 } else if (acc.additionalMessages!.some(am => am.messageId === c.messageId)) {
@@ -87,7 +127,7 @@ export class AgenticChatResultStream {
                                     : am.buttons,
                             body:
                                 am.messageId === c.messageId
-                                    ? am.body + (c.body ? AgenticChatResultStream.resultDelimiter + c.body : '')
+                                    ? am.body + AgenticChatResultStream.resultDelimiter + c.body
                                     : am.body,
                             ...(am.messageId === c.messageId &&
                                 (c.contextList || acc.contextList) && {
@@ -121,7 +161,7 @@ export class AgenticChatResultStream {
                                         },
                                     },
                                 }),
-                            ...(am.messageId === c.messageId && c.header !== undefined && { header: c.header }),
+                            header: Object.prototype.hasOwnProperty.call(c, 'header') ? c.header : am.header,
                         })),
                     }
                 } else {
@@ -206,10 +246,6 @@ export class AgenticChatResultStream {
         return undefined
     }
 
-    getLastMessage(): ChatMessage {
-        return this.#state.chatResultBlocks[this.#state.chatResultBlocks.length - 1]
-    }
-
     getResultStreamWriter(): ResultStreamWriter {
         // Note: if write calls are not awaited, stream can be out-of-order.
         if (this.#state.isLocked) {
diff --git a/server/aws-lsp-codewhisperer/src/language-server/agenticChat/tools/fileSearch.ts b/server/aws-lsp-codewhisperer/src/language-server/agenticChat/tools/fileSearch.ts
index 37d11afe4f..fb6486996e 100644
--- a/server/aws-lsp-codewhisperer/src/language-server/agenticChat/tools/fileSearch.ts
+++ b/server/aws-lsp-codewhisperer/src/language-server/agenticChat/tools/fileSearch.ts
@@ -158,7 +158,3 @@ export class FileSearch {
         } as const
     }
 }
-
-export function isFileSearchParams(input: any): input is FileSearchParams {
-    return input && typeof input.path === 'string' && typeof input.queryName === 'string'
-}
diff --git a/server/aws-lsp-codewhisperer/src/language-server/agenticChat/tools/mcp/mcpUtils.ts b/server/aws-lsp-codewhisperer/src/language-server/agenticChat/tools/mcp/mcpUtils.ts
index 45ab34170c..7b212bad49 100644
--- a/server/aws-lsp-codewhisperer/src/language-server/agenticChat/tools/mcp/mcpUtils.ts
+++ b/server/aws-lsp-codewhisperer/src/language-server/agenticChat/tools/mcp/mcpUtils.ts
@@ -920,8 +920,8 @@ async function migrateConfigToAgent(
             ...existingAgentConfig,
             // Merge MCP servers, keeping existing ones if they exist
             mcpServers: {
-                ...existingAgentConfig.mcpServers,
                 ...newAgentConfig.mcpServers,
+                ...existingAgentConfig.mcpServers,
             },
             // Merge tools lists without duplicates
             tools: [...new Set([...existingAgentConfig.tools, ...newAgentConfig.tools])],
diff --git a/server/aws-lsp-codewhisperer/src/language-server/inline-completion/codePercentage.ts b/server/aws-lsp-codewhisperer/src/language-server/inline-completion/codePercentage.ts
index 04c7dc5ab1..0513443a35 100644
--- a/server/aws-lsp-codewhisperer/src/language-server/inline-completion/codePercentage.ts
+++ b/server/aws-lsp-codewhisperer/src/language-server/inline-completion/codePercentage.ts
@@ -137,10 +137,20 @@ export class CodePercentageTracker {
         }
     }
 
+    addTotalTokensForEdits(languageId: string, count: number): void {
+        const languageBucket = this.getLanguageBucket(languageId)
+        if (count >= INSERT_CUTOFF_THRESHOLD) {
+            languageBucket.totalTokens += count
+        }
+    }
+
     countAcceptedTokens(languageId: string, tokens: string): void {
+        this.countAcceptedTokensUsingCount(languageId, tokens.length)
+    }
+
+    countAcceptedTokensUsingCount(languageId: string, count: number): void {
         const languageBucket = this.getLanguageBucket(languageId)
-        const tokenCount = tokens.length
-        languageBucket.acceptedTokens += tokenCount
+        languageBucket.acceptedTokens += count
     }
 
     countInvocation(languageId: string): void {
diff --git a/server/aws-lsp-codewhisperer/src/language-server/inline-completion/codeWhispererServer.ts b/server/aws-lsp-codewhisperer/src/language-server/inline-completion/codeWhispererServer.ts
index 56cda299f8..23a72e3528 100644
--- a/server/aws-lsp-codewhisperer/src/language-server/inline-completion/codeWhispererServer.ts
+++ b/server/aws-lsp-codewhisperer/src/language-server/inline-completion/codeWhispererServer.ts
@@ -46,7 +46,7 @@ import { UserWrittenCodeTracker } from '../../shared/userWrittenCodeTracker'
 import { RecentEditTracker, RecentEditTrackerDefaultConfig } from './tracker/codeEditTracker'
 import { CursorTracker } from './tracker/cursorTracker'
 import { RejectedEditTracker, DEFAULT_REJECTED_EDIT_TRACKER_CONFIG } from './tracker/rejectedEditTracker'
-import { getAddedAndDeletedChars } from './diffUtils'
+import { getAddedAndDeletedLines, getCharacterDifferences } from './diffUtils'
 import {
     emitPerceivedLatencyTelemetry,
     emitServiceInvocationFailure,
@@ -622,36 +622,29 @@ export const CodewhispererServerFactory =
             )
             const isAccepted = acceptedItemId ? true : false
             const acceptedSuggestion = session.suggestions.find(s => s.itemId === acceptedItemId)
-            let addedCharactersForEditSuggestion = ''
-            let deletedCharactersForEditSuggestion = ''
-            if (acceptedSuggestion !== undefined) {
-                if (acceptedSuggestion) {
-                    codePercentageTracker.countSuccess(session.language)
-                    if (session.suggestionType === SuggestionType.EDIT && acceptedSuggestion.content) {
-                        // [acceptedSuggestion.insertText] will be undefined for NEP suggestion. Use [acceptedSuggestion.content] instead.
-                        // Since [acceptedSuggestion.content] is in the form of a diff, transform the content into addedCharacters and deletedCharacters.
-                        const addedAndDeletedChars = getAddedAndDeletedChars(acceptedSuggestion.content)
-                        if (addedAndDeletedChars) {
-                            addedCharactersForEditSuggestion = addedAndDeletedChars.addedCharacters
-                            deletedCharactersForEditSuggestion = addedAndDeletedChars.deletedCharacters
-
-                            codePercentageTracker.countAcceptedTokens(
-                                session.language,
-                                addedCharactersForEditSuggestion
-                            )
-                            codePercentageTracker.countTotalTokens(
-                                session.language,
-                                addedCharactersForEditSuggestion,
-                                true
-                            )
-                            enqueueCodeDiffEntry(session, acceptedSuggestion, addedCharactersForEditSuggestion)
-                        }
-                    } else if (acceptedSuggestion.insertText) {
-                        codePercentageTracker.countAcceptedTokens(session.language, acceptedSuggestion.insertText)
-                        codePercentageTracker.countTotalTokens(session.language, acceptedSuggestion.insertText, true)
+            let addedLengthForEdits = 0
+            let deletedLengthForEdits = 0
+            if (acceptedSuggestion) {
+                codePercentageTracker.countSuccess(session.language)
+                if (session.suggestionType === SuggestionType.EDIT && acceptedSuggestion.content) {
+                    // [acceptedSuggestion.insertText] will be undefined for NEP suggestion. Use [acceptedSuggestion.content] instead.
+                    // Since [acceptedSuggestion.content] is in the form of a diff, transform the content into addedCharacters and deletedCharacters.
+                    const { addedLines, deletedLines } = getAddedAndDeletedLines(acceptedSuggestion.content)
+                    const charDiffResult = getCharacterDifferences(addedLines, deletedLines)
+                    addedLengthForEdits = charDiffResult.charactersAdded
+                    deletedLengthForEdits = charDiffResult.charactersRemoved
+
+                    codePercentageTracker.countAcceptedTokensUsingCount(
+                        session.language,
+                        charDiffResult.charactersAdded
+                    )
+                    codePercentageTracker.addTotalTokensForEdits(session.language, charDiffResult.charactersAdded)
+                    enqueueCodeDiffEntry(session, acceptedSuggestion, addedLines.join('\n'))
+                } else if (acceptedSuggestion.insertText) {
+                    codePercentageTracker.countAcceptedTokens(session.language, acceptedSuggestion.insertText)
+                    codePercentageTracker.countTotalTokens(session.language, acceptedSuggestion.insertText, true)
 
-                        enqueueCodeDiffEntry(session, acceptedSuggestion)
-                    }
+                    enqueueCodeDiffEntry(session, acceptedSuggestion)
                 }
             }
 
@@ -697,8 +690,8 @@ export const CodewhispererServerFactory =
                 telemetryService,
                 session,
                 timeSinceLastUserModification,
-                addedCharactersForEditSuggestion.length,
-                deletedCharactersForEditSuggestion.length,
+                addedLengthForEdits,
+                deletedLengthForEdits,
                 addedDiagnostics,
                 removedDiagnostics,
                 streakLength,
diff --git a/server/aws-lsp-codewhisperer/src/language-server/inline-completion/diffUtils.ts b/server/aws-lsp-codewhisperer/src/language-server/inline-completion/diffUtils.ts
index 66cbeb3f23..0899dd5e46 100644
--- a/server/aws-lsp-codewhisperer/src/language-server/inline-completion/diffUtils.ts
+++ b/server/aws-lsp-codewhisperer/src/language-server/inline-completion/diffUtils.ts
@@ -213,6 +213,18 @@ export function applyUnifiedDiff(docText: string, unifiedDiff: string): string {
     }
 }
 
+export function getAddedAndDeletedLines(unifiedDiff: string): { addedLines: string[]; deletedLines: string[] } {
+    const lines = unifiedDiff.split('\n')
+    const addedLines = lines.filter(line => line.startsWith('+') && !line.startsWith('+++')).map(line => line.slice(1))
+    const deletedLines = lines
+        .filter(line => line.startsWith('-') && !line.startsWith('---'))
+        .map(line => line.slice(1))
+    return {
+        addedLines,
+        deletedLines,
+    }
+}
+
 // src https://github.com/aws/aws-toolkit-vscode/blob/3921457b0a2094b831beea0d66cc2cbd2a833890/packages/amazonq/src/app/inline/EditRendering/diffUtils.ts#L147
 export function getAddedAndDeletedChars(unifiedDiff: string): {
     addedCharacters: string
@@ -254,3 +266,58 @@ export function getAddedAndDeletedChars(unifiedDiff: string): {
         deletedCharacters,
     }
 }
+
+/**
+ * Calculate character differences between added and deleted text blocks using LCS
+ */
+export interface CharDiffResult {
+    charactersAdded: number
+    charactersRemoved: number
+}
+
+/**
+ * Find longest common subsequence length between two strings
+ */
+function lcsLength(str1: string, str2: string): number[][] {
+    const m = str1.length
+    const n = str2.length
+    const dp = Array(m + 1)
+        .fill(null)
+        .map(() => Array(n + 1).fill(0))
+
+    for (let i = 1; i <= m; i++) {
+        for (let j = 1; j <= n; j++) {
+            if (str1[i - 1] === str2[j - 1]) {
+                dp[i][j] = dp[i - 1][j - 1] + 1
+            } else {
+                dp[i][j] = Math.max(dp[i - 1][j], dp[i][j - 1])
+            }
+        }
+    }
+
+    return dp
+}
+
+/**
+ * Calculate character differences between added and deleted blocks
+ */
+export function getCharacterDifferences(addedLines: string[], deletedLines: string[]): CharDiffResult {
+    const addedText = addedLines.join('\n')
+    const deletedText = deletedLines.join('\n')
+
+    if (addedText.length === 0) {
+        return { charactersAdded: 0, charactersRemoved: deletedText.length }
+    }
+
+    if (deletedText.length === 0) {
+        return { charactersAdded: addedText.length, charactersRemoved: 0 }
+    }
+
+    const lcsTable = lcsLength(deletedText, addedText)
+    const lcsLen = lcsTable[deletedText.length][addedText.length]
+
+    return {
+        charactersAdded: addedText.length - lcsLen,
+        charactersRemoved: deletedText.length - lcsLen,
+    }
+}
diff --git a/server/aws-lsp-codewhisperer/src/shared/utils.test.ts b/server/aws-lsp-codewhisperer/src/shared/utils.test.ts
index e83d04bbb3..85cd8817a7 100644
--- a/server/aws-lsp-codewhisperer/src/shared/utils.test.ts
+++ b/server/aws-lsp-codewhisperer/src/shared/utils.test.ts
@@ -134,26 +134,36 @@ describe('getClientName', () => {
 })
 
 describe('getOriginFromClientInfo', () => {
-    it('returns MD_IDE for SMUS-IDE client name', () => {
+    it('returns MD_IDE for client names starting with SMUS-IDE prefix', () => {
         const result = getOriginFromClientInfo('AmazonQ-For-SMUS-IDE-1.0.0')
         assert.strictEqual(result, 'MD_IDE')
     })
 
-    it('returns MD_IDE for SMUS-CE client name', () => {
+    it('returns MD_IDE for client names starting with SMUS-CE prefix', () => {
         const result = getOriginFromClientInfo('AmazonQ-For-SMUS-CE-1.0.0')
         assert.strictEqual(result, 'MD_IDE')
     })
 
-    it('returns MD_IDE for client names starting with SMUS-IDE prefix', () => {
+    it('returns MD_IDE for client names starting with SMAI-CE prefix', () => {
+        const result = getOriginFromClientInfo('AmazonQ-For-SMAI-CE-1.0.0')
+        assert.strictEqual(result, 'MD_IDE')
+    })
+
+    it('returns MD_IDE for SMUS-IDE client name', () => {
         const result = getOriginFromClientInfo('AmazonQ-For-SMUS-IDE')
         assert.strictEqual(result, 'MD_IDE')
     })
 
-    it('returns MD_IDE for client names starting with SMUS-CE prefix', () => {
+    it('returns MD_IDE for SMUS-CE client name', () => {
         const result = getOriginFromClientInfo('AmazonQ-For-SMUS-CE')
         assert.strictEqual(result, 'MD_IDE')
     })
 
+    it('returns MD_IDE for SMAI-CE client name', () => {
+        const result = getOriginFromClientInfo('AmazonQ-For-SMAI-CE')
+        assert.strictEqual(result, 'MD_IDE')
+    })
+
     it('returns IDE for non-SMUS client name', () => {
         const result = getOriginFromClientInfo('VSCode-Extension')
         assert.strictEqual(result, 'IDE')
diff --git a/server/aws-lsp-codewhisperer/src/shared/utils.ts b/server/aws-lsp-codewhisperer/src/shared/utils.ts
index e178de4a51..a7a95d8801 100644
--- a/server/aws-lsp-codewhisperer/src/shared/utils.ts
+++ b/server/aws-lsp-codewhisperer/src/shared/utils.ts
@@ -381,7 +381,12 @@ export function getClientName(lspParams: InitializeParams | undefined): string |
 }
 
 export function getOriginFromClientInfo(clientName: string | undefined): Origin {
-    if (clientName?.startsWith('AmazonQ-For-SMUS-IDE') || clientName?.startsWith('AmazonQ-For-SMUS-CE')) {
+    // TODO: Update with a new origin for SMAI case, as a short-term solution Sagemaker AI CE is using same origin as that of Sagemaker Unified Studio's IDE and CE
+    if (
+        clientName?.startsWith('AmazonQ-For-SMUS-IDE') ||
+        clientName?.startsWith('AmazonQ-For-SMUS-CE') ||
+        clientName?.startsWith('AmazonQ-For-SMAI-CE')
+    ) {
         return 'MD_IDE'
     }
     return 'IDE'