diff --git a/src/vs/workbench/api/browser/mainThreadChat.ts b/src/vs/workbench/api/browser/mainThreadChat.ts
index 6b45f162796..a6aa6ee451c 100644
--- a/src/vs/workbench/api/browser/mainThreadChat.ts
+++ b/src/vs/workbench/api/browser/mainThreadChat.ts
@@ -159,6 +159,18 @@ export class MainThreadChat extends Disposable implements MainThreadChatShape {
 			return;
 		}
 
+		if ('documents' in progress) {
+			const usedContext = {
+				documents: progress.documents.map(({ uri, version, ranges }) => ({
+					uri: URI.revive(uri),
+					version,
+					ranges,
+				})),
+			};
+			this._activeRequestProgressCallbacks.get(id)?.(usedContext); // FIXME@ulugbekna: is this a correct thing to do?
+			return;
+		}
+
 		this._activeRequestProgressCallbacks.get(id)?.(progress);
 	}
 
diff --git a/src/vs/workbench/api/common/extHost.protocol.ts b/src/vs/workbench/api/common/extHost.protocol.ts
index ea5ccab44fc..289f9a81eaf 100644
--- a/src/vs/workbench/api/common/extHost.protocol.ts
+++ b/src/vs/workbench/api/common/extHost.protocol.ts
@@ -1223,7 +1223,18 @@ export interface IChatResponseProgressFileTreeData {
 	children?: IChatResponseProgressFileTreeData[];
 }
 
-export type IChatResponseProgressDto = { content: string | IMarkdownString } | { requestId: string } | { placeholder: string } | { treeData: IChatResponseProgressFileTreeData };
+export type IDocumentContextDto = {
+	uri: UriComponents;
+	version: number;
+	ranges: IRange[];
+};
+
+export type IChatResponseProgressDto =
+	| { content: string | IMarkdownString }
+	| { requestId: string }
+	| { placeholder: string }
+	| { treeData: IChatResponseProgressFileTreeData }
+	| { documents: IDocumentContextDto[] };
 
 export interface MainThreadChatShape extends IDisposable {
 	$registerChatProvider(handle: number, id: string): Promise<void>;
diff --git a/src/vs/workbench/api/common/extHostChat.ts b/src/vs/workbench/api/common/extHostChat.ts
index 9aa2c625cc9..265994b5f96 100644
--- a/src/vs/workbench/api/common/extHostChat.ts
+++ b/src/vs/workbench/api/common/extHostChat.ts
@@ -236,6 +236,14 @@ export class ExtHostChat implements ExtHostChatShape {
 					this._proxy.$acceptResponseProgress(handle, sessionId, {
 						content: typeof progress.content === 'string' ? progress.content : typeConvert.MarkdownString.from(progress.content)
 					});
+				} else if ('documents' in progress) {
+					this._proxy.$acceptResponseProgress(handle, sessionId, {
+						documents: progress.documents.map(d => ({
+							uri: d.uri,
+							version: d.version,
+							ranges: d.ranges.map(r => typeConvert.Range.from(r))
+						}))
+					});
 				} else {
 					this._proxy.$acceptResponseProgress(handle, sessionId, progress);
 				}
diff --git a/src/vs/workbench/contrib/chat/common/chatModel.ts b/src/vs/workbench/contrib/chat/common/chatModel.ts
index 11eefe47dea..69ecd139299 100644
--- a/src/vs/workbench/contrib/chat/common/chatModel.ts
+++ b/src/vs/workbench/contrib/chat/common/chatModel.ts
@@ -11,7 +11,7 @@ import { URI, UriComponents } from 'vs/base/common/uri';
 import { generateUuid } from 'vs/base/common/uuid';
 import { ILogService } from 'vs/platform/log/common/log';
 import { IChatAgentData, IChatAgentService } from 'vs/workbench/contrib/chat/common/chatAgents';
-import { IChat, IChatFollowup, IChatProgress, IChatReplyFollowup, IChatResponse, IChatResponseErrorDetails, IChatResponseProgressFileTreeData, InteractiveSessionVoteDirection } from 'vs/workbench/contrib/chat/common/chatService';
+import { IChat, IChatFollowup, IChatProgress, IChatReplyFollowup, IChatResponse, IChatResponseErrorDetails, IChatResponseProgressFileTreeData, IUsedContext, InteractiveSessionVoteDirection } from 'vs/workbench/contrib/chat/common/chatService';
 
 export interface IChatRequestModel {
 	readonly id: string;
@@ -32,11 +32,13 @@ export type ResponsePart =
 		resolvedContent?: Promise<
 			string | IMarkdownString | { treeData: IChatResponseProgressFileTreeData }
 		>;
-	};
+	}
+	| IUsedContext;
 
 export interface IResponse {
 	readonly value: (IMarkdownString | IPlaceholderMarkdownString | IChatResponseProgressFileTreeData)[];
 	onDidChangeValue: Event<void>;
+	usedContext: IUsedContext | undefined;
 	updateContent(responsePart: ResponsePart, quiet?: boolean): void;
 	asString(): string;
 }
@@ -114,6 +116,11 @@ export class Response implements IResponse {
 		return this._onDidChangeValue.event;
 	}
 
+	private _usedContext: IUsedContext | undefined;
+	public get usedContext(): IUsedContext | undefined {
+		return this._usedContext;
+	}
+
 	// responseParts internally tracks all the response parts, including strings which are currently resolving, so that they can be updated when they do resolve
 	private _responseParts: InternalResponsePart[];
 	// responseData externally presents the response parts with consolidated contiguous strings (including strings which were previously resolving)
@@ -179,6 +186,8 @@ export class Response implements IResponse {
 		} else if (isCompleteInteractiveProgressTreeData(responsePart)) {
 			this._responseParts.push(responsePart);
 			this._updateRepr(quiet);
+		} else if ('documents' in responsePart) {
+			this._usedContext = responsePart;
 		}
 	}
 
@@ -590,6 +599,8 @@ export class ChatModel extends Disposable implements IChatModel {
 			request.response.updateContent(progress.content, quiet);
 		} else if ('placeholder' in progress || isCompleteInteractiveProgressTreeData(progress)) {
 			request.response.updateContent(progress, quiet);
+		} else if ('documents' in progress) {
+			request.response.updateContent(progress);
 		} else {
 			request.setProviderRequestId(progress.requestId);
 			request.response.setProviderResponseId(progress.requestId);
diff --git a/src/vs/workbench/contrib/chat/common/chatService.ts b/src/vs/workbench/contrib/chat/common/chatService.ts
index b97c1a7c995..5c71168c493 100644
--- a/src/vs/workbench/contrib/chat/common/chatService.ts
+++ b/src/vs/workbench/contrib/chat/common/chatService.ts
@@ -8,6 +8,7 @@ import { Event } from 'vs/base/common/event';
 import { IMarkdownString } from 'vs/base/common/htmlContent';
 import { IDisposable } from 'vs/base/common/lifecycle';
 import { URI } from 'vs/base/common/uri';
+import { IRange } from 'vs/editor/common/core/range';
 import { ProviderResult } from 'vs/editor/common/languages';
 import { createDecorator } from 'vs/platform/instantiation/common/instantiation';
 import { IChatModel, ChatModel, ISerializableChatData } from 'vs/workbench/contrib/chat/common/chatModel';
@@ -51,8 +52,22 @@ export interface IChatResponseProgressFileTreeData {
 	children?: IChatResponseProgressFileTreeData[];
 }
 
+export type IDocumentContext = {
+	uri: URI;
+	version: number;
+	ranges: IRange[];
+};
+
+export type IUsedContext = {
+	documents: IDocumentContext[];
+};
+
 export type IChatProgress =
-	{ content: string | IMarkdownString } | { requestId: string } | { treeData: IChatResponseProgressFileTreeData } | { placeholder: string; resolvedContent: Promise<string | IMarkdownString | { treeData: IChatResponseProgressFileTreeData }> };
+	| { content: string | IMarkdownString }
+	| { requestId: string }
+	| { treeData: IChatResponseProgressFileTreeData }
+	| { placeholder: string; resolvedContent: Promise<string | IMarkdownString | { treeData: IChatResponseProgressFileTreeData }> }
+	| IUsedContext;
 
 export interface IPersistedChatState { }
 export interface IChatProvider {
diff --git a/src/vs/workbench/contrib/chat/common/chatServiceImpl.ts b/src/vs/workbench/contrib/chat/common/chatServiceImpl.ts
index 75bed122f24..f5fe279835f 100644
--- a/src/vs/workbench/contrib/chat/common/chatServiceImpl.ts
+++ b/src/vs/workbench/contrib/chat/common/chatServiceImpl.ts
@@ -440,7 +440,6 @@ export class ChatService extends Disposable implements IChatService {
 
 		const resolvedCommand = typeof message === 'string' && message.startsWith('/') ? await this.handleSlashCommand(model.sessionId, message) : message;
 
-
 		let gotProgress = false;
 		const requestType = typeof message === 'string' ?
 			(message.startsWith('/') ? 'slashCommand' : 'string') :
@@ -453,6 +452,7 @@ export class ChatService extends Disposable implements IChatService {
 				}
 
 				gotProgress = true;
+
 				if ('content' in progress) {
 					this.trace('sendRequest', `Provider returned progress for session ${model.sessionId}, ${typeof progress.content === 'string' ? progress.content.length : progress.content.value.length} chars`);
 				} else if ('placeholder' in progress) {
@@ -460,6 +460,8 @@ export class ChatService extends Disposable implements IChatService {
 				} else if (isCompleteInteractiveProgressTreeData(progress)) {
 					// This isn't exposed in API
 					this.trace('sendRequest', `Provider returned tree data for session ${model.sessionId}, ${progress.treeData.label}`);
+				} else if ('documents' in progress) {
+					this.trace('sendRequest', `Provider returned documents for session ${model.sessionId}:\n ${JSON.stringify(progress.documents, null, '\t')}`);
 				} else {
 					this.trace('sendRequest', `Provider returned id for session ${model.sessionId}, ${progress.requestId}`);
 				}
diff --git a/src/vscode-dts/vscode.proposed.interactive.d.ts b/src/vscode-dts/vscode.proposed.interactive.d.ts
index 174991827c7..5c176ddfad8 100644
--- a/src/vscode-dts/vscode.proposed.interactive.d.ts
+++ b/src/vscode-dts/vscode.proposed.interactive.d.ts
@@ -138,7 +138,24 @@ declare module 'vscode' {
 		treeData: FileTreeData;
 	}
 
-	export type InteractiveProgress = InteractiveProgressContent | InteractiveProgressId | InteractiveProgressTask | InteractiveProgressFileTree;
+	// FIXME@ulugbekna: my reservation with this type is that
+	// 	we already have a type called `TextDocumentContext` above passed to inline chat providers
+	export interface DocumentContext {
+		uri: Uri;
+		version: number;
+		ranges: Range[]; // @ulugbekna: we're making this an array of ranges rather than array of `DocumentContext`s, which should be less costly
+	}
+
+	export interface InteractiveProgressUsedContext {
+		documents: DocumentContext[];
+	}
+
+	export type InteractiveProgress =
+		| InteractiveProgressContent
+		| InteractiveProgressId
+		| InteractiveProgressTask
+		| InteractiveProgressFileTree
+		| InteractiveProgressUsedContext;
 
 	export interface InteractiveResponseCommand {
 		commandId: string;