diff --git a/src/vs/platform/actionWidget/browser/actionWidgetDropdown.ts b/src/vs/platform/actionWidget/browser/actionWidgetDropdown.ts
index a7fb2453fc6..170cf40a03d 100644
--- a/src/vs/platform/actionWidget/browser/actionWidgetDropdown.ts
+++ b/src/vs/platform/actionWidget/browser/actionWidgetDropdown.ts
@@ -40,6 +40,9 @@ export interface IActionWidgetDropdownOptions extends IBaseDropdownOptions {
  * The benefits of this include non native features such as headers, descriptions, icons, and button bar
  */
 export class ActionWidgetDropdown extends BaseDropdown {
+
+	private enabled: boolean = true;
+
 	constructor(
 		container: HTMLElement,
 		private readonly _options: IActionWidgetDropdownOptions,
@@ -50,6 +53,10 @@ export class ActionWidgetDropdown extends BaseDropdown {
 	}
 
 	override show(): void {
+		if (!this.enabled) {
+			return;
+		}
+
 		let actionBarActions = this._options.actionBarActions ?? this._options.actionBarActionProvider?.getActions() ?? [];
 		const actions = this._options.actions ?? this._options.actionProvider?.getActions() ?? [];
 		const actionWidgetItems: IActionListItem<IActionWidgetDropdownAction>[] = [];
@@ -158,4 +165,8 @@ export class ActionWidgetDropdown extends BaseDropdown {
 			accessibilityProvider
 		);
 	}
+
+	setEnabled(enabled: boolean): void {
+		this.enabled = enabled;
+	}
 }
diff --git a/src/vs/platform/actions/browser/actionWidgetDropdownActionViewItem.ts b/src/vs/platform/actions/browser/actionWidgetDropdownActionViewItem.ts
index a1b75125e10..051603577f7 100644
--- a/src/vs/platform/actions/browser/actionWidgetDropdownActionViewItem.ts
+++ b/src/vs/platform/actions/browser/actionWidgetDropdownActionViewItem.ts
@@ -91,6 +91,7 @@ export class ActionWidgetDropdownActionViewItem extends BaseActionViewItem {
 		const disabled = !this.action.enabled;
 		this.actionItem?.classList.toggle('disabled', disabled);
 		this.element?.classList.toggle('disabled', disabled);
+		this.actionWidgetDropdown?.setEnabled(!disabled);
 	}
 
 }
diff --git a/src/vs/workbench/contrib/chat/browser/actions/chatContinueInAction.ts b/src/vs/workbench/contrib/chat/browser/actions/chatContinueInAction.ts
new file mode 100644
index 00000000000..782105a1132
--- /dev/null
+++ b/src/vs/workbench/contrib/chat/browser/actions/chatContinueInAction.ts
@@ -0,0 +1,468 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import { Action2, MenuId, MenuItemAction } from '../../../../../platform/actions/common/actions.js';
+import { IDisposable } from '../../../../../base/common/lifecycle.js';
+import { ActionWidgetDropdownActionViewItem } from '../../../../../platform/actions/browser/actionWidgetDropdownActionViewItem.js';
+import { IActionWidgetService } from '../../../../../platform/actionWidget/browser/actionWidget.js';
+import { IActionWidgetDropdownAction, IActionWidgetDropdownActionProvider } from '../../../../../platform/actionWidget/browser/actionWidgetDropdown.js';
+import { ContextKeyExpr, IContextKeyService } from '../../../../../platform/contextkey/common/contextkey.js';
+import { IKeybindingService } from '../../../../../platform/keybinding/common/keybinding.js';
+import { IChatSessionsExtensionPoint, IChatSessionsService } from '../../common/chatSessionsService.js';
+import { Codicon } from '../../../../../base/common/codicons.js';
+import { ICommandService } from '../../../../../platform/commands/common/commands.js';
+import { AgentSessionProviders } from '../agentSessions/agentSessions.js';
+import { localize, localize2 } from '../../../../../nls.js';
+import { CancellationToken } from '../../../../../base/common/cancellation.js';
+import { basename, relativePath } from '../../../../../base/common/resources.js';
+import { URI } from '../../../../../base/common/uri.js';
+import { generateUuid } from '../../../../../base/common/uuid.js';
+import { ServicesAccessor } from '../../../../../editor/browser/editorExtensions.js';
+import { isLocation } from '../../../../../editor/common/languages.js';
+import { isITextModel } from '../../../../../editor/common/model.js';
+import { IConfigurationService } from '../../../../../platform/configuration/common/configuration.js';
+import { IInstantiationService } from '../../../../../platform/instantiation/common/instantiation.js';
+import { IQuickInputService } from '../../../../../platform/quickinput/common/quickInput.js';
+import { IWorkspaceContextService } from '../../../../../platform/workspace/common/workspace.js';
+import { IEditorService } from '../../../../services/editor/common/editorService.js';
+import { IRemoteCodingAgent, IRemoteCodingAgentsService } from '../../../remoteCodingAgents/common/remoteCodingAgentsService.js';
+import { IChatAgentService, IChatAgent, IChatAgentHistoryEntry } from '../../common/chatAgents.js';
+import { ChatContextKeys } from '../../common/chatContextKeys.js';
+import { IChatModel, IChatRequestModel, toChatHistoryContent } from '../../common/chatModel.js';
+import { ChatRequestParser } from '../../common/chatRequestParser.js';
+import { IChatService, IChatPullRequestContent } from '../../common/chatService.js';
+import { chatSessionResourceToId } from '../../common/chatUri.js';
+import { ChatRequestVariableSet, isChatRequestFileEntry } from '../../common/chatVariableEntries.js';
+import { ChatAgentLocation, ChatConfiguration } from '../../common/constants.js';
+import { IChatWidget, IChatWidgetService } from '../chat.js';
+import { MarkdownString } from '../../../../../base/common/htmlContent.js';
+import { ThemeIcon } from '../../../../../base/common/themables.js';
+
+export class ContinueChatInSessionAction extends Action2 {
+
+	static readonly ID = 'workbench.action.chat.continueChatInSession';
+
+	constructor() {
+		super({
+			id: ContinueChatInSessionAction.ID,
+			title: localize2('continueChatInSession', "Continue Chat in..."),
+			tooltip: localize('continueChatInSession', "Continue Chat in..."),
+			precondition: ContextKeyExpr.and(
+				ChatContextKeys.enabled,
+				ChatContextKeys.requestInProgress.negate(),
+				ChatContextKeys.remoteJobCreating.negate(),
+			),
+			menu: {
+				id: MenuId.ChatExecute,
+				group: 'navigation',
+				order: 3.4,
+				when: ContextKeyExpr.and(
+					ContextKeyExpr.or(
+						ChatContextKeys.hasRemoteCodingAgent,
+						ChatContextKeys.hasCloudButtonV2
+					),
+					ChatContextKeys.lockedToCodingAgent.negate(),
+				),
+			}
+		});
+	}
+
+	override async run(): Promise<void> {
+		// Handled by a custom action item
+	}
+}
+
+export class ChatContinueInSessionActionItem extends ActionWidgetDropdownActionViewItem {
+	constructor(
+		action: MenuItemAction,
+		@IActionWidgetService actionWidgetService: IActionWidgetService,
+		@IContextKeyService private readonly contextKeyService: IContextKeyService,
+		@IKeybindingService keybindingService: IKeybindingService,
+		@IChatSessionsService chatSessionsService: IChatSessionsService,
+		@IInstantiationService instantiationService: IInstantiationService
+	) {
+		super(action, {
+			actionProvider: ChatContinueInSessionActionItem.actionProvider(chatSessionsService, instantiationService)
+		}, actionWidgetService, keybindingService, contextKeyService);
+	}
+
+	private static actionProvider(chatSessionsService: IChatSessionsService, instantiationService: IInstantiationService): IActionWidgetDropdownActionProvider {
+		return {
+			getActions: () => {
+				const actions: IActionWidgetDropdownAction[] = [];
+				const contributions = chatSessionsService.getAllChatSessionContributions();
+
+				// Continue in Background
+				const backgroundContrib = contributions.find(contrib => contrib.type === AgentSessionProviders.Background);
+				if (backgroundContrib && backgroundContrib.canDelegate !== false) {
+					actions.push(this.toAction(backgroundContrib, instantiationService));
+				}
+
+				// Continue in Cloud
+				const cloudContrib = contributions.find(contrib => contrib.type === AgentSessionProviders.Cloud);
+				if (cloudContrib && cloudContrib.canDelegate !== false) {
+					actions.push(this.toAction(cloudContrib, instantiationService));
+				}
+
+				return actions;
+			}
+		};
+	}
+
+	private static toAction(contrib: IChatSessionsExtensionPoint, instantiationService: IInstantiationService): IActionWidgetDropdownAction {
+		return {
+			id: contrib.type,
+			enabled: true,
+			icon: contrib.type === AgentSessionProviders.Cloud ? Codicon.cloud : Codicon.collection,
+			class: undefined,
+			tooltip: contrib.displayName,
+			label: contrib.type === AgentSessionProviders.Cloud ?
+				localize('continueInCloud', "Continue in Cloud") :
+				localize('continueInBackground', "Continue in Background"),
+			run: () => instantiationService.invokeFunction(accessor => new CreateRemoteAgentJobAction().run(accessor, contrib))
+		};
+	}
+
+	protected override renderLabel(element: HTMLElement): IDisposable | null {
+		const icon = this.contextKeyService.contextMatchesRules(ChatContextKeys.remoteJobCreating) ? Codicon.sync : Codicon.export;
+		element.classList.add(...ThemeIcon.asClassNameArray(icon));
+
+		return super.renderLabel(element);
+	}
+}
+
+class CreateRemoteAgentJobAction {
+
+	private static readonly markdownStringTrustedOptions = {
+		isTrusted: {
+			enabledCommands: [] as string[],
+		},
+	};
+
+	constructor() { }
+
+	private async pickCodingAgent<T extends IChatSessionsExtensionPoint | IRemoteCodingAgent>(
+		quickPickService: IQuickInputService,
+		options: T[]
+	): Promise<T | undefined> {
+		if (options.length === 0) {
+			return undefined;
+		}
+		if (options.length === 1) {
+			return options[0];
+		}
+		const pick = await quickPickService.pick(
+			options.map(a => ({
+				label: a.displayName,
+				description: a.description,
+				agent: a,
+			})),
+			{
+				placeHolder: localize('selectBackgroundAgent', "Select Agent to delegate the task to"),
+			}
+		);
+		if (!pick) {
+			return undefined;
+		}
+		return pick.agent;
+	}
+
+	private async createWithChatSessions(
+		targetAgentId: string,
+		chatService: IChatService,
+		sessionResource: URI,
+		attachedContext: ChatRequestVariableSet,
+		userPrompt: string,
+		chatSummary?: {
+			prompt?: string;
+			history?: string;
+		}
+	) {
+		await chatService.sendRequest(sessionResource, userPrompt, {
+			agentIdSilent: targetAgentId,
+			attachedContext: attachedContext.asArray(),
+			chatSummary,
+		});
+	}
+
+	private async createWithLegacy(
+		remoteCodingAgentService: IRemoteCodingAgentsService,
+		commandService: ICommandService,
+		quickPickService: IQuickInputService,
+		chatModel: IChatModel,
+		addedRequest: IChatRequestModel,
+		widget: IChatWidget,
+		userPrompt: string,
+		summary?: string,
+	) {
+		const agents = remoteCodingAgentService.getAvailableAgents();
+		const agent = await this.pickCodingAgent(quickPickService, agents);
+		if (!agent) {
+			chatModel.completeResponse(addedRequest);
+			return;
+		}
+
+		// Execute the remote command
+		const result: Omit<IChatPullRequestContent, 'kind'> | string | undefined = await commandService.executeCommand(agent.command, {
+			userPrompt,
+			summary,
+			_version: 2, // Signal that we support the new response format
+		});
+
+		if (result && typeof result === 'object') { /* _version === 2 */
+			chatModel.acceptResponseProgress(addedRequest, { kind: 'pullRequest', ...result });
+			chatModel.acceptResponseProgress(addedRequest, {
+				kind: 'markdownContent', content: new MarkdownString(
+					localize('remoteAgentResponse2', "Your work will be continued in this pull request."),
+					CreateRemoteAgentJobAction.markdownStringTrustedOptions
+				)
+			});
+		} else if (typeof result === 'string') {
+			chatModel.acceptResponseProgress(addedRequest, {
+				kind: 'markdownContent',
+				content: new MarkdownString(
+					localize('remoteAgentResponse', "Coding agent response: {0}", result),
+					CreateRemoteAgentJobAction.markdownStringTrustedOptions
+				)
+			});
+			// Extension will open up the pull request in another view
+			widget.clear();
+		} else {
+			chatModel.acceptResponseProgress(addedRequest, {
+				kind: 'markdownContent',
+				content: new MarkdownString(
+					localize('remoteAgentError', "Coding agent session cancelled."),
+					CreateRemoteAgentJobAction.markdownStringTrustedOptions
+				)
+			});
+		}
+	}
+	async run(accessor: ServicesAccessor, continuationTarget: IChatSessionsExtensionPoint) {
+		const contextKeyService = accessor.get(IContextKeyService);
+		const remoteJobCreatingKey = ChatContextKeys.remoteJobCreating.bindTo(contextKeyService);
+
+		try {
+			remoteJobCreatingKey.set(true);
+
+			const configurationService = accessor.get(IConfigurationService);
+			const widgetService = accessor.get(IChatWidgetService);
+			const chatAgentService = accessor.get(IChatAgentService);
+			const chatService = accessor.get(IChatService);
+			const commandService = accessor.get(ICommandService);
+			const quickPickService = accessor.get(IQuickInputService);
+			const remoteCodingAgentService = accessor.get(IRemoteCodingAgentsService);
+			const workspaceContextService = accessor.get(IWorkspaceContextService);
+			const editorService = accessor.get(IEditorService);
+
+			const widget = widgetService.lastFocusedWidget;
+			if (!widget) {
+				return;
+			}
+			if (!widget.viewModel) {
+				return;
+			}
+			const chatModel = widget.viewModel.model;
+			if (!chatModel) {
+				return;
+			}
+
+			const sessionResource = widget.viewModel.sessionResource;
+			const chatRequests = chatModel.getRequests();
+			let userPrompt = widget.getInput();
+			if (!userPrompt) {
+				if (!chatRequests.length) {
+					// Nothing to do
+					return;
+				}
+				userPrompt = 'implement this.';
+			}
+
+			const attachedContext = widget.input.getAttachedAndImplicitContext(sessionResource);
+			widget.input.acceptInput(true);
+
+			// For inline editor mode, add selection or cursor information
+			if (widget.location === ChatAgentLocation.EditorInline) {
+				const activeEditor = editorService.activeTextEditorControl;
+				if (activeEditor) {
+					const model = activeEditor.getModel();
+					let activeEditorUri: URI | undefined = undefined;
+					if (model && isITextModel(model)) {
+						activeEditorUri = model.uri as URI;
+					}
+					const selection = activeEditor.getSelection();
+					if (activeEditorUri && selection) {
+						attachedContext.add({
+							kind: 'file',
+							id: 'vscode.implicit.selection',
+							name: basename(activeEditorUri),
+							value: {
+								uri: activeEditorUri,
+								range: selection
+							},
+						});
+					}
+				}
+			}
+
+			const defaultAgent = chatAgentService.getDefaultAgent(ChatAgentLocation.Chat);
+			const instantiationService = accessor.get(IInstantiationService);
+			const requestParser = instantiationService.createInstance(ChatRequestParser);
+			const continuationTargetType = continuationTarget.type;
+
+			// Add the request to the model first
+			const parsedRequest = requestParser.parseChatRequest(sessionResource, userPrompt, ChatAgentLocation.Chat);
+			const addedRequest = chatModel.addRequest(
+				parsedRequest,
+				{ variables: attachedContext.asArray() },
+				0,
+				undefined,
+				defaultAgent
+			);
+
+			let title: string | undefined = undefined;
+
+			// -- summarize userPrompt if necessary
+			let summarizedUserPrompt: string | undefined = undefined;
+			if (defaultAgent && userPrompt.length > 10_000) {
+				chatModel.acceptResponseProgress(addedRequest, {
+					kind: 'progressMessage',
+					content: new MarkdownString(
+						localize('summarizeUserPromptCreateRemoteJob', "Summarizing user prompt"),
+						CreateRemoteAgentJobAction.markdownStringTrustedOptions,
+					)
+				});
+
+				({ title, summarizedUserPrompt } = await this.generateSummarizedUserPrompt(sessionResource, userPrompt, attachedContext, title, chatAgentService, defaultAgent, summarizedUserPrompt));
+			}
+
+			let summary: string = '';
+
+			// Add selection or cursor information to the summary
+			attachedContext.asArray().forEach(ctx => {
+				if (isChatRequestFileEntry(ctx) && ctx.value && isLocation(ctx.value)) {
+					const range = ctx.value.range;
+					const isSelection = range.startLineNumber !== range.endLineNumber || range.startColumn !== range.endColumn;
+
+					// Get relative path for the file
+					let filePath = ctx.name;
+					const workspaceFolder = workspaceContextService.getWorkspaceFolder(ctx.value.uri);
+
+					if (workspaceFolder && ctx.value.uri) {
+						const relativePathResult = relativePath(workspaceFolder.uri, ctx.value.uri);
+						if (relativePathResult) {
+							filePath = relativePathResult;
+						}
+					}
+
+					if (isSelection) {
+						summary += `User has selected text in file ${filePath} from ${range.startLineNumber}:${range.startColumn} to ${range.endLineNumber}:${range.endColumn}\n`;
+					} else {
+						summary += `User is on file ${filePath} at position ${range.startLineNumber}:${range.startColumn}\n`;
+					}
+				}
+			});
+
+			// -- summarize context if necessary
+			if (defaultAgent && chatRequests.length > 1) {
+				chatModel.acceptResponseProgress(addedRequest, {
+					kind: 'progressMessage',
+					content: new MarkdownString(
+						localize('analyzingChatHistory', "Analyzing chat history"),
+						CreateRemoteAgentJobAction.markdownStringTrustedOptions
+					)
+				});
+				({ title, summary } = await this.generateSummarizedChatHistory(chatRequests, sessionResource, title, chatAgentService, defaultAgent, summary));
+			}
+
+			if (title) {
+				summary += `\nTITLE: ${title}\n`;
+			}
+
+
+			const isChatSessionsExperimentEnabled = configurationService.getValue<boolean>(ChatConfiguration.UseCloudButtonV2);
+			if (isChatSessionsExperimentEnabled) {
+				await chatService.removeRequest(sessionResource, addedRequest.id);
+				return await this.createWithChatSessions(
+					continuationTargetType,
+					chatService,
+					sessionResource,
+					attachedContext,
+					userPrompt,
+					{
+						prompt: summarizedUserPrompt,
+						history: summary,
+					},
+				);
+			}
+
+			// -- Below is the legacy implementation
+
+			chatModel.acceptResponseProgress(addedRequest, {
+				kind: 'progressMessage',
+				content: new MarkdownString(
+					localize('creatingRemoteJob', "Delegating to coding agent"),
+					CreateRemoteAgentJobAction.markdownStringTrustedOptions
+				)
+			});
+
+			await this.createWithLegacy(remoteCodingAgentService, commandService, quickPickService, chatModel, addedRequest, widget, summarizedUserPrompt || userPrompt, summary);
+			chatModel.setResponse(addedRequest, {});
+			chatModel.completeResponse(addedRequest);
+		} catch (e) {
+			console.error('Error creating remote coding agent job', e);
+			throw e;
+		} finally {
+			remoteJobCreatingKey.set(false);
+		}
+	}
+
+	private async generateSummarizedChatHistory(chatRequests: IChatRequestModel[], sessionResource: URI, title: string | undefined, chatAgentService: IChatAgentService, defaultAgent: IChatAgent, summary: string) {
+		const historyEntries: IChatAgentHistoryEntry[] = chatRequests
+			.map((req): IChatAgentHistoryEntry => ({
+				request: {
+					sessionId: chatSessionResourceToId(sessionResource),
+					sessionResource,
+					requestId: req.id,
+					agentId: req.response?.agent?.id ?? '',
+					message: req.message.text,
+					command: req.response?.slashCommand?.name,
+					variables: req.variableData,
+					location: ChatAgentLocation.Chat,
+					editedFileEvents: req.editedFileEvents,
+				},
+				response: toChatHistoryContent(req.response!.response.value),
+				result: req.response?.result ?? {}
+			}));
+
+		// TODO: Determine a cutoff point where we stop including earlier history
+		//      For example, if the user has already delegated to a coding agent once,
+		// 		 prefer the conversation afterwards.
+		title ??= await chatAgentService.getChatTitle(defaultAgent.id, historyEntries, CancellationToken.None);
+		summary += await chatAgentService.getChatSummary(defaultAgent.id, historyEntries, CancellationToken.None);
+		return { title, summary };
+	}
+
+	private async generateSummarizedUserPrompt(sessionResource: URI, userPrompt: string, attachedContext: ChatRequestVariableSet, title: string | undefined, chatAgentService: IChatAgentService, defaultAgent: IChatAgent, summarizedUserPrompt: string | undefined) {
+		const userPromptEntry: IChatAgentHistoryEntry = {
+			request: {
+				sessionId: chatSessionResourceToId(sessionResource),
+				sessionResource,
+				requestId: generateUuid(),
+				agentId: '',
+				message: userPrompt,
+				command: undefined,
+				variables: { variables: attachedContext.asArray() },
+				location: ChatAgentLocation.Chat,
+				editedFileEvents: [],
+			},
+			response: [],
+			result: {}
+		};
+		const historyEntries = [userPromptEntry];
+		title = await chatAgentService.getChatTitle(defaultAgent.id, historyEntries, CancellationToken.None);
+		summarizedUserPrompt = await chatAgentService.getChatSummary(defaultAgent.id, historyEntries, CancellationToken.None);
+		return { title, summarizedUserPrompt };
+	}
+}
diff --git a/src/vs/workbench/contrib/chat/browser/actions/chatExecuteActions.ts b/src/vs/workbench/contrib/chat/browser/actions/chatExecuteActions.ts
index a538bed78b5..2fa5d207c92 100644
--- a/src/vs/workbench/contrib/chat/browser/actions/chatExecuteActions.ts
+++ b/src/vs/workbench/contrib/chat/browser/actions/chatExecuteActions.ts
@@ -3,40 +3,26 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
-import { CancellationToken } from '../../../../../base/common/cancellation.js';
 import { Codicon } from '../../../../../base/common/codicons.js';
-import { MarkdownString } from '../../../../../base/common/htmlContent.js';
 import { KeyCode, KeyMod } from '../../../../../base/common/keyCodes.js';
-import { basename, relativePath } from '../../../../../base/common/resources.js';
+import { basename } from '../../../../../base/common/resources.js';
 import { ThemeIcon } from '../../../../../base/common/themables.js';
 import { assertType } from '../../../../../base/common/types.js';
-import { URI } from '../../../../../base/common/uri.js';
-import { isLocation } from '../../../../../editor/common/languages.js';
-import { generateUuid } from '../../../../../base/common/uuid.js';
 import { ServicesAccessor } from '../../../../../editor/browser/editorExtensions.js';
 import { EditorContextKeys } from '../../../../../editor/common/editorContextKeys.js';
 import { localize, localize2 } from '../../../../../nls.js';
 import { Action2, MenuId, registerAction2 } from '../../../../../platform/actions/common/actions.js';
 import { ICommandService } from '../../../../../platform/commands/common/commands.js';
 import { IConfigurationService } from '../../../../../platform/configuration/common/configuration.js';
-import { ContextKeyExpr, IContextKeyService } from '../../../../../platform/contextkey/common/contextkey.js';
+import { ContextKeyExpr } from '../../../../../platform/contextkey/common/contextkey.js';
 import { IDialogService } from '../../../../../platform/dialogs/common/dialogs.js';
 import { IInstantiationService } from '../../../../../platform/instantiation/common/instantiation.js';
 import { KeybindingWeight } from '../../../../../platform/keybinding/common/keybindingsRegistry.js';
-import { IQuickInputService } from '../../../../../platform/quickinput/common/quickInput.js';
 import { ITelemetryService } from '../../../../../platform/telemetry/common/telemetry.js';
-import { IWorkspaceContextService } from '../../../../../platform/workspace/common/workspace.js';
-import { IEditorService } from '../../../../services/editor/common/editorService.js';
-import { IRemoteCodingAgent, IRemoteCodingAgentsService } from '../../../remoteCodingAgents/common/remoteCodingAgentsService.js';
-import { IChatAgent, IChatAgentHistoryEntry, IChatAgentService } from '../../common/chatAgents.js';
 import { ChatContextKeys } from '../../common/chatContextKeys.js';
-import { IChatModel, IChatRequestModel, toChatHistoryContent } from '../../common/chatModel.js';
 import { IChatMode, IChatModeService } from '../../common/chatModes.js';
 import { chatVariableLeader } from '../../common/chatParserTypes.js';
-import { ChatRequestParser } from '../../common/chatRequestParser.js';
-import { IChatPullRequestContent, IChatService } from '../../common/chatService.js';
-import { IChatSessionsExtensionPoint, IChatSessionsService } from '../../common/chatSessionsService.js';
-import { ChatRequestVariableSet, isChatRequestFileEntry } from '../../common/chatVariableEntries.js';
+import { IChatService } from '../../common/chatService.js';
 import { ChatAgentLocation, ChatConfiguration, ChatModeKind, } from '../../common/constants.js';
 import { ILanguageModelChatMetadata } from '../../common/languageModels.js';
 import { ILanguageModelToolsService } from '../../common/languageModelToolsService.js';
@@ -44,8 +30,7 @@ import { IChatWidget, IChatWidgetService, showChatWidgetInViewOrEditor } from '.
 import { getEditingSessionContext } from '../chatEditing/chatEditingActions.js';
 import { ACTION_ID_NEW_CHAT, CHAT_CATEGORY, handleCurrentEditingSession, handleModeSwitch } from './chatActions.js';
 import { ctxHasEditorModification } from '../chatEditing/chatEditingEditorContextKeys.js';
-import { chatSessionResourceToId } from '../../common/chatUri.js';
-import { isITextModel } from '../../../../../editor/common/model.js';
+import { ContinueChatInSessionAction } from './chatContinueInAction.js';
 
 export interface IVoiceChatExecuteActionContext {
 	readonly disableTimeout?: boolean;
@@ -621,416 +606,6 @@ class SubmitWithoutDispatchingAction extends Action2 {
 		widget?.acceptInput(context?.inputValue, { noCommandDetection: true });
 	}
 }
-export class CreateRemoteAgentJobAction extends Action2 {
-	static readonly ID = 'workbench.action.chat.createRemoteAgentJob';
-
-	static readonly markdownStringTrustedOptions = {
-		isTrusted: {
-			enabledCommands: [] as string[],
-		},
-	};
-
-	constructor() {
-		const precondition = ContextKeyExpr.and(
-			ChatContextKeys.inputHasText,
-			whenNotInProgress,
-			ChatContextKeys.remoteJobCreating.negate(),
-		);
-
-		super({
-			id: CreateRemoteAgentJobAction.ID,
-			// TODO(joshspicer): Generalize title/tooltip - pull from contribution
-			title: localize2('actions.chat.createRemoteJob', "Delegate to Agent"),
-			icon: Codicon.sendToRemoteAgent,
-			precondition,
-			toggled: {
-				condition: ChatContextKeys.remoteJobCreating,
-				icon: Codicon.sync,
-				tooltip: localize('remoteJobCreating', "Delegating to Agent"),
-			},
-			menu: [
-				{
-					id: MenuId.ChatExecute,
-					group: 'navigation',
-					order: 3.4,
-					when: ContextKeyExpr.and(
-						ContextKeyExpr.or(
-							ChatContextKeys.hasRemoteCodingAgent,
-							ChatContextKeys.hasCloudButtonV2
-						),
-						ChatContextKeys.lockedToCodingAgent.negate(),
-					),
-				}
-			]
-		});
-	}
-
-	private async pickCodingAgent<T extends IChatSessionsExtensionPoint | IRemoteCodingAgent>(
-		quickPickService: IQuickInputService,
-		options: T[]
-	): Promise<T | undefined> {
-		if (options.length === 0) {
-			return undefined;
-		}
-		if (options.length === 1) {
-			return options[0];
-		}
-		const pick = await quickPickService.pick(
-			options.map(a => ({
-				label: a.displayName,
-				description: a.description,
-				agent: a,
-			})),
-			{
-				placeHolder: localize('selectBackgroundAgent', "Select Agent to delegate the task to"),
-			}
-		);
-		if (!pick) {
-			return undefined;
-		}
-		return pick.agent;
-	}
-
-	private async createWithChatSessions(
-		targetAgentId: string,
-		chatSessionsService: IChatSessionsService,
-		chatService: IChatService,
-		quickPickService: IQuickInputService,
-		sessionResource: URI,
-		attachedContext: ChatRequestVariableSet,
-		userPrompt: string,
-		chatSummary?: {
-			prompt?: string;
-			history?: string;
-		}
-	) {
-		await chatService.sendRequest(sessionResource, userPrompt, {
-			agentIdSilent: targetAgentId,
-			attachedContext: attachedContext.asArray(),
-			chatSummary,
-		});
-	}
-
-	private async createWithLegacy(
-		remoteCodingAgentService: IRemoteCodingAgentsService,
-		commandService: ICommandService,
-		quickPickService: IQuickInputService,
-		chatModel: IChatModel,
-		addedRequest: IChatRequestModel,
-		widget: IChatWidget,
-		userPrompt: string,
-		summary?: string,
-	) {
-		const agents = remoteCodingAgentService.getAvailableAgents();
-		const agent = await this.pickCodingAgent(quickPickService, agents);
-		if (!agent) {
-			chatModel.completeResponse(addedRequest);
-			return;
-		}
-
-		// Execute the remote command
-		const result: Omit<IChatPullRequestContent, 'kind'> | string | undefined = await commandService.executeCommand(agent.command, {
-			userPrompt,
-			summary,
-			_version: 2, // Signal that we support the new response format
-		});
-
-		if (result && typeof result === 'object') { /* _version === 2 */
-			chatModel.acceptResponseProgress(addedRequest, { kind: 'pullRequest', ...result });
-			chatModel.acceptResponseProgress(addedRequest, {
-				kind: 'markdownContent', content: new MarkdownString(
-					localize('remoteAgentResponse2', "Your work will be continued in this pull request."),
-					CreateRemoteAgentJobAction.markdownStringTrustedOptions
-				)
-			});
-		} else if (typeof result === 'string') {
-			chatModel.acceptResponseProgress(addedRequest, {
-				kind: 'markdownContent',
-				content: new MarkdownString(
-					localize('remoteAgentResponse', "Coding agent response: {0}", result),
-					CreateRemoteAgentJobAction.markdownStringTrustedOptions
-				)
-			});
-			// Extension will open up the pull request in another view
-			widget.clear();
-		} else {
-			chatModel.acceptResponseProgress(addedRequest, {
-				kind: 'markdownContent',
-				content: new MarkdownString(
-					localize('remoteAgentError', "Coding agent session cancelled."),
-					CreateRemoteAgentJobAction.markdownStringTrustedOptions
-				)
-			});
-		}
-	}
-	async run(accessor: ServicesAccessor, ...args: unknown[]) {
-		const contextKeyService = accessor.get(IContextKeyService);
-		const remoteJobCreatingKey = ChatContextKeys.remoteJobCreating.bindTo(contextKeyService);
-
-		try {
-			remoteJobCreatingKey.set(true);
-
-			const configurationService = accessor.get(IConfigurationService);
-			const widgetService = accessor.get(IChatWidgetService);
-			const chatAgentService = accessor.get(IChatAgentService);
-			const chatService = accessor.get(IChatService);
-			const commandService = accessor.get(ICommandService);
-			const quickPickService = accessor.get(IQuickInputService);
-			const remoteCodingAgentService = accessor.get(IRemoteCodingAgentsService);
-			const chatSessionsService = accessor.get(IChatSessionsService);
-			const workspaceContextService = accessor.get(IWorkspaceContextService);
-			const editorService = accessor.get(IEditorService);
-
-			const widget = widgetService.lastFocusedWidget;
-			if (!widget) {
-				return;
-			}
-			if (!widget.viewModel) {
-				return;
-			}
-			const chatModel = widget.viewModel.model;
-			if (!chatModel) {
-				return;
-			}
-
-			const sessionResource = widget.viewModel.sessionResource;
-			const chatRequests = chatModel.getRequests();
-			let userPrompt = widget.getInput();
-			if (!userPrompt) {
-				if (!chatRequests.length) {
-					// Nothing to do
-					return;
-				}
-				userPrompt = 'implement this.';
-			}
-
-			const attachedContext = widget.input.getAttachedAndImplicitContext(sessionResource);
-			widget.input.acceptInput(true);
-
-			// For inline editor mode, add selection or cursor information
-			if (widget.location === ChatAgentLocation.EditorInline) {
-				const activeEditor = editorService.activeTextEditorControl;
-				if (activeEditor) {
-					const model = activeEditor.getModel();
-					let activeEditorUri: URI | undefined = undefined;
-					if (model && isITextModel(model)) {
-						activeEditorUri = model.uri as URI;
-					}
-					const selection = activeEditor.getSelection();
-					if (activeEditorUri && selection) {
-						attachedContext.add({
-							kind: 'file',
-							id: 'vscode.implicit.selection',
-							name: basename(activeEditorUri),
-							value: {
-								uri: activeEditorUri,
-								range: selection
-							},
-						});
-					}
-				}
-			}
-
-			const defaultAgent = chatAgentService.getDefaultAgent(ChatAgentLocation.Chat);
-			const instantiationService = accessor.get(IInstantiationService);
-			const requestParser = instantiationService.createInstance(ChatRequestParser);
-
-			const contributions = chatSessionsService.getAllChatSessionContributions();
-
-			// Sort contributions by order, then alphabetically by display name
-			// Filter out contributions that have canDelegate set to false
-			const sortedContributions = [...contributions]
-				.filter(contrib => contrib.canDelegate !== false) // Default to true if not specified
-				.sort((a, b) => {
-					// Both have no order - sort by display name
-					if (a.order === undefined && b.order === undefined) {
-						return a.displayName.localeCompare(b.displayName);
-					}
-
-					// Only a has no order - push it to the end
-					if (a.order === undefined) {
-						return 1;
-					}
-
-					// Only b has no order - push it to the end
-					if (b.order === undefined) {
-						return -1;
-					}
-
-					// Both have orders - compare numerically
-					const orderCompare = a.order - b.order;
-					if (orderCompare !== 0) {
-						return orderCompare;
-					}
-
-					// Same order - sort by display name
-					return a.displayName.localeCompare(b.displayName);
-				});
-
-			const agent = await this.pickCodingAgent(quickPickService, sortedContributions);
-			if (!agent) {
-				widget.setInput(userPrompt); // Restore prompt
-				throw new Error('No coding agent selected');
-			}
-			const { type } = agent;
-
-			// Add the request to the model first
-			const parsedRequest = requestParser.parseChatRequest(sessionResource, userPrompt, ChatAgentLocation.Chat);
-			const addedRequest = chatModel.addRequest(
-				parsedRequest,
-				{ variables: attachedContext.asArray() },
-				0,
-				undefined,
-				defaultAgent
-			);
-
-			let title: string | undefined = undefined;
-
-			// -- summarize userPrompt if necessary
-			let summarizedUserPrompt: string | undefined = undefined;
-			if (defaultAgent && userPrompt.length > 10_000) {
-				chatModel.acceptResponseProgress(addedRequest, {
-					kind: 'progressMessage',
-					content: new MarkdownString(
-						localize('summarizeUserPromptCreateRemoteJob', "Summarizing user prompt"),
-						CreateRemoteAgentJobAction.markdownStringTrustedOptions,
-					)
-				});
-
-				({ title, summarizedUserPrompt } = await this.generateSummarizedUserPrompt(sessionResource, userPrompt, attachedContext, title, chatAgentService, defaultAgent, summarizedUserPrompt));
-			}
-
-			let summary: string = '';
-
-			// Add selection or cursor information to the summary
-			attachedContext.asArray().forEach(ctx => {
-				if (isChatRequestFileEntry(ctx) && ctx.value && isLocation(ctx.value)) {
-					const range = ctx.value.range;
-					const isSelection = range.startLineNumber !== range.endLineNumber || range.startColumn !== range.endColumn;
-
-					// Get relative path for the file
-					let filePath = ctx.name;
-					const workspaceFolder = workspaceContextService.getWorkspaceFolder(ctx.value.uri);
-
-					if (workspaceFolder && ctx.value.uri) {
-						const relativePathResult = relativePath(workspaceFolder.uri, ctx.value.uri);
-						if (relativePathResult) {
-							filePath = relativePathResult;
-						}
-					}
-
-					if (isSelection) {
-						summary += `User has selected text in file ${filePath} from ${range.startLineNumber}:${range.startColumn} to ${range.endLineNumber}:${range.endColumn}\n`;
-					} else {
-						summary += `User is on file ${filePath} at position ${range.startLineNumber}:${range.startColumn}\n`;
-					}
-				}
-			});
-
-			// -- summarize context if necessary
-			if (defaultAgent && chatRequests.length > 1) {
-				chatModel.acceptResponseProgress(addedRequest, {
-					kind: 'progressMessage',
-					content: new MarkdownString(
-						localize('analyzingChatHistory', "Analyzing chat history"),
-						CreateRemoteAgentJobAction.markdownStringTrustedOptions
-					)
-				});
-				({ title, summary } = await this.generateSummarizedChatHistory(chatRequests, sessionResource, title, chatAgentService, defaultAgent, summary));
-			}
-
-			if (title) {
-				summary += `\nTITLE: ${title}\n`;
-			}
-
-
-			const isChatSessionsExperimentEnabled = configurationService.getValue<boolean>(ChatConfiguration.UseCloudButtonV2);
-			if (isChatSessionsExperimentEnabled) {
-				await chatService.removeRequest(sessionResource, addedRequest.id);
-				return await this.createWithChatSessions(
-					type,
-					chatSessionsService,
-					chatService,
-					quickPickService,
-					sessionResource,
-					attachedContext,
-					userPrompt,
-					{
-						prompt: summarizedUserPrompt,
-						history: summary,
-					},
-				);
-			}
-
-			// -- Below is the legacy implementation
-
-			chatModel.acceptResponseProgress(addedRequest, {
-				kind: 'progressMessage',
-				content: new MarkdownString(
-					localize('creatingRemoteJob', "Delegating to coding agent"),
-					CreateRemoteAgentJobAction.markdownStringTrustedOptions
-				)
-			});
-
-			await this.createWithLegacy(remoteCodingAgentService, commandService, quickPickService, chatModel, addedRequest, widget, summarizedUserPrompt || userPrompt, summary);
-			chatModel.setResponse(addedRequest, {});
-			chatModel.completeResponse(addedRequest);
-		} catch (e) {
-			console.error('Error creating remote coding agent job', e);
-			throw e;
-		} finally {
-			remoteJobCreatingKey.set(false);
-		}
-	}
-
-	private async generateSummarizedChatHistory(chatRequests: IChatRequestModel[], sessionResource: URI, title: string | undefined, chatAgentService: IChatAgentService, defaultAgent: IChatAgent, summary: string) {
-		const historyEntries: IChatAgentHistoryEntry[] = chatRequests
-			.map((req): IChatAgentHistoryEntry => ({
-				request: {
-					sessionId: chatSessionResourceToId(sessionResource),
-					sessionResource,
-					requestId: req.id,
-					agentId: req.response?.agent?.id ?? '',
-					message: req.message.text,
-					command: req.response?.slashCommand?.name,
-					variables: req.variableData,
-					location: ChatAgentLocation.Chat,
-					editedFileEvents: req.editedFileEvents,
-				},
-				response: toChatHistoryContent(req.response!.response.value),
-				result: req.response?.result ?? {}
-			}));
-
-		// TODO: Determine a cutoff point where we stop including earlier history
-		//      For example, if the user has already delegated to a coding agent once,
-		// 		 prefer the conversation afterwards.
-		title ??= await chatAgentService.getChatTitle(defaultAgent.id, historyEntries, CancellationToken.None);
-		summary += await chatAgentService.getChatSummary(defaultAgent.id, historyEntries, CancellationToken.None);
-		return { title, summary };
-	}
-
-	private async generateSummarizedUserPrompt(sessionResource: URI, userPrompt: string, attachedContext: ChatRequestVariableSet, title: string | undefined, chatAgentService: IChatAgentService, defaultAgent: IChatAgent, summarizedUserPrompt: string | undefined) {
-		const userPromptEntry: IChatAgentHistoryEntry = {
-			request: {
-				sessionId: chatSessionResourceToId(sessionResource),
-				sessionResource,
-				requestId: generateUuid(),
-				agentId: '',
-				message: userPrompt,
-				command: undefined,
-				variables: { variables: attachedContext.asArray() },
-				location: ChatAgentLocation.Chat,
-				editedFileEvents: [],
-			},
-			response: [],
-			result: {}
-		};
-		const historyEntries = [userPromptEntry];
-		title = await chatAgentService.getChatTitle(defaultAgent.id, historyEntries, CancellationToken.None);
-		summarizedUserPrompt = await chatAgentService.getChatSummary(defaultAgent.id, historyEntries, CancellationToken.None);
-		return { title, summarizedUserPrompt };
-	}
-}
 
 export class ChatSubmitWithCodebaseAction extends Action2 {
 	static readonly ID = 'workbench.action.chat.submitWithCodebase';
@@ -1229,7 +804,7 @@ export function registerChatExecuteActions() {
 	registerAction2(CancelAction);
 	registerAction2(SendToNewChatAction);
 	registerAction2(ChatSubmitWithCodebaseAction);
-	registerAction2(CreateRemoteAgentJobAction);
+	registerAction2(ContinueChatInSessionAction);
 	registerAction2(ToggleChatModeAction);
 	registerAction2(SwitchToNextModelAction);
 	registerAction2(OpenModelPickerAction);
diff --git a/src/vs/workbench/contrib/chat/browser/chatInputPart.ts b/src/vs/workbench/contrib/chat/browser/chatInputPart.ts
index b3d27477a95..e62f88e5781 100644
--- a/src/vs/workbench/contrib/chat/browser/chatInputPart.ts
+++ b/src/vs/workbench/contrib/chat/browser/chatInputPart.ts
@@ -86,6 +86,7 @@ import { ChatAgentLocation, ChatConfiguration, ChatModeKind, validateChatMode }
 import { ILanguageModelChatMetadata, ILanguageModelChatMetadataAndIdentifier, ILanguageModelsService } from '../common/languageModels.js';
 import { ILanguageModelToolsService } from '../common/languageModelToolsService.js';
 import { ChatOpenModelPickerActionId, ChatSessionPrimaryPickerAction, ChatSubmitAction, IChatExecuteActionContext, OpenModePickerAction } from './actions/chatExecuteActions.js';
+import { ChatContinueInSessionActionItem, ContinueChatInSessionAction } from './actions/chatContinueInAction.js';
 import { ImplicitContextAttachmentWidget } from './attachments/implicitContextAttachment.js';
 import { IChatWidget } from './chat.js';
 import { ChatAttachmentModel } from './chatAttachmentModel.js';
@@ -1461,6 +1462,12 @@ export class ChatInputPart extends Disposable implements IHistoryNavigationWidge
 			},
 			hoverDelegate,
 			hiddenItemStrategy: HiddenItemStrategy.NoHide,
+			actionViewItemProvider: (action, options) => {
+				if (action.id === ContinueChatInSessionAction.ID && action instanceof MenuItemAction) {
+					return this.instantiationService.createInstance(ChatContinueInSessionActionItem, action);
+				}
+				return undefined;
+			}
 		}));
 		this.executeToolbar.getElement().classList.add('chat-execute-toolbar');
 		this.executeToolbar.context = { widget } satisfies IChatExecuteActionContext;