diff --git a/src/vs/workbench/contrib/chat/browser/agentSessions/media/agentsessionsviewer.css b/src/vs/workbench/contrib/chat/browser/agentSessions/media/agentsessionsviewer.css
index 6f78b00dd37..c4c16bc6698 100644
--- a/src/vs/workbench/contrib/chat/browser/agentSessions/media/agentsessionsviewer.css
+++ b/src/vs/workbench/contrib/chat/browser/agentSessions/media/agentsessionsviewer.css
@@ -22,7 +22,16 @@
 		}
 	}
 
+	.monaco-list-row .agent-session-title-toolbar {
+		position: relative; /* for the absolute positioning of the toolbar below */
+		width: 22px;
+	}
+
 	.monaco-list-row .agent-session-title-toolbar .monaco-toolbar {
+		/* this is required because the overal height (including the padding needed for hover feedback) would push down the title otherwise */
+		position: absolute;
+		right: 0;
+		top: 0;
 		display: none;
 	}
 
@@ -31,10 +40,6 @@
 		display: block;
 	}
 
-	.monaco-list-row .agent-session-title-toolbar .monaco-toolbar .action-label {
-		padding: 0; /* limit padding top/bottom to preserve line-height per row */
-	}
-
 	.agent-session-item {
 		display: flex;
 		flex-direction: row;
diff --git a/src/vs/workbench/contrib/chat/browser/media/chatViewPane.css b/src/vs/workbench/contrib/chat/browser/media/chatViewPane.css
index 1af986730ad..659244b971e 100644
--- a/src/vs/workbench/contrib/chat/browser/media/chatViewPane.css
+++ b/src/vs/workbench/contrib/chat/browser/media/chatViewPane.css
@@ -28,11 +28,7 @@
 			padding: 8px;
 
 			.agent-sessions-toolbar {
-				display: none;
-
-				.action-label {
-					padding: 0; /* limit padding top/bottom to preserve line-height per row */
-				}
+				visibility: hidden;
 			}
 		}
 
@@ -46,7 +42,7 @@
 	}
 
 	.agent-sessions-container:hover .agent-sessions-title-container .agent-sessions-toolbar {
-		display: block;
+		visibility: visible;
 	}
 
 	.interactive-session {