diff --git a/src/vs/workbench/contrib/chat/browser/chatInputPart.ts b/src/vs/workbench/contrib/chat/browser/chatInputPart.ts
index 7b7b5abb9fd..a2bd5d7f328 100644
--- a/src/vs/workbench/contrib/chat/browser/chatInputPart.ts
+++ b/src/vs/workbench/contrib/chat/browser/chatInputPart.ts
@@ -200,7 +200,7 @@ export class ChatInputPart extends Disposable implements IHistoryNavigationWidge
 	private inputEditorHasFocus: IContextKey<boolean>;
 
 	private readonly _waitForPersistedLanguageModel = this._register(new MutableDisposable<IDisposable>());
-	private _onDidChangeCurrentLanguageModel = new Emitter<string>();
+	private _onDidChangeCurrentLanguageModel = this._register(new Emitter<string>());
 	private _currentLanguageModel: string | undefined;
 	get currentLanguageModel() {
 		return this._currentLanguageModel;
diff --git a/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts b/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
index 679cc961fe5..17d1b391b3b 100644
--- a/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
+++ b/src/vs/workbench/contrib/inlineChat/browser/inlineChatController.ts
@@ -38,7 +38,7 @@ import { IChatViewState, IChatWidgetLocationOptions } from '../../chat/browser/c
 import { ChatAgentLocation } from '../../chat/common/chatAgents.js';
 import { ChatModel, ChatRequestRemovalReason, IChatRequestModel, IChatTextEditGroup, IChatTextEditGroupState, IResponse } from '../../chat/common/chatModel.js';
 import { IChatService } from '../../chat/common/chatService.js';
-import { HunkInformation, HunkState, Session, StashedSession } from './inlineChatSession.js';
+import { HunkInformation, Session, StashedSession } from './inlineChatSession.js';
 import { InlineChatError } from './inlineChatSessionServiceImpl.js';
 import { EditModeStrategy, HunkAction, IEditObserver, LiveStrategy, PreviewStrategy, ProgressingEditsOptions } from './inlineChatStrategies.js';
 import { CTX_INLINE_CHAT_EDITING, CTX_INLINE_CHAT_REQUEST_IN_PROGRESS, CTX_INLINE_CHAT_RESPONSE_TYPE, CTX_INLINE_CHAT_USER_DID_EDIT, CTX_INLINE_CHAT_VISIBLE, EditMode, INLINE_CHAT_ID, InlineChatConfigKeys, InlineChatResponseType } from '../common/inlineChat.js';
@@ -49,6 +49,7 @@ import { IInlineChatSavingService } from './inlineChatSavingService.js';
 import { IInlineChatSessionService } from './inlineChatSessionService.js';
 import { InlineChatZoneWidget } from './inlineChatZoneWidget.js';
 import { ChatContextKeys } from '../../chat/common/chatContextKeys.js';
+import { IStorageService, StorageScope, StorageTarget } from '../../../../platform/storage/common/storage.js';
 
 export const enum State {
 	CREATE_SESSION = 'CREATE_SESSION',
@@ -103,11 +104,12 @@ export class InlineChatController implements IEditorContribution {
 		return editor.getContribution<InlineChatController>(INLINE_CHAT_ID);
 	}
 
+	private static readonly _storageKey = 'inlineChatController.state';
+
 	private _isDisposed: boolean = false;
 	private readonly _store = new DisposableStore();
 
 	private readonly _ui: Lazy<InlineChatZoneWidget>;
-	private _uiInitViewState: IChatViewState | undefined;
 
 	private readonly _ctxVisible: IContextKey<boolean>;
 	private readonly _ctxEditing: IContextKey<boolean>;
@@ -145,6 +147,7 @@ export class InlineChatController implements IEditorContribution {
 		@IContextKeyService contextKeyService: IContextKeyService,
 		@IChatService private readonly _chatService: IChatService,
 		@IEditorService private readonly _editorService: IEditorService,
+		@IStorageService private readonly _storageService: IStorageService,
 		@INotebookEditorService notebookEditorService: INotebookEditorService,
 	) {
 		this._ctxVisible = CTX_INLINE_CHAT_VISIBLE.bindTo(contextKeyService);
@@ -239,19 +242,6 @@ export class InlineChatController implements IEditorContribution {
 		this._log('DISPOSED controller');
 	}
 
-	saveViewState(): any {
-		if (!this._ui.rawValue) {
-			return undefined;
-		}
-		// only take select lm
-		const { selectedLanguageModelId } = this._ui.rawValue.widget.chatWidget.getViewState();
-		return { selectedLanguageModelId };
-	}
-
-	restoreViewState(state: any): void {
-		this._uiInitViewState = state;
-	}
-
 	private _log(message: string | Error, ...more: any[]): void {
 		if (message instanceof Error) {
 			this._logService.error(message, ...more);
@@ -421,11 +411,9 @@ export class InlineChatController implements IEditorContribution {
 		this._sessionStore.add(this._session.wholeRange.onDidChange(handleWholeRangeChange));
 		handleWholeRangeChange();
 
-		this._ui.value.widget.setChatModel(this._session.chatModel, this._uiInitViewState);
-		this._uiInitViewState = undefined;
+		this._ui.value.widget.setChatModel(this._session.chatModel, this._retrieveWidgetState());
 		this._updatePlaceholder();
 
-
 		const isModelEmpty = !this._session.chatModel.hasRequests;
 		this._ui.value.widget.updateToolbar(true);
 		this._ui.value.widget.toggleStatus(!isModelEmpty);
@@ -899,11 +887,19 @@ export class InlineChatController implements IEditorContribution {
 	}
 
 	private _resetWidget() {
+
 		this._sessionStore.clear();
 		this._ctxVisible.reset();
 		this._ctxUserDidEdit.reset();
 
-		this._ui.rawValue?.hide();
+		if (this._ui.rawValue) {
+			// persist selected LM in memento
+			const { selectedLanguageModelId } = this._ui.rawValue.widget.chatWidget.getViewState();
+			const state = { selectedLanguageModelId };
+			this._storageService.store(InlineChatController._storageKey, state, StorageScope.PROFILE, StorageTarget.USER);
+
+			this._ui.rawValue.hide();
+		}
 
 		// Return focus to the editor only if the current focus is within the editor widget
 		if (this._editor.hasWidgetFocus()) {
@@ -911,6 +907,15 @@ export class InlineChatController implements IEditorContribution {
 		}
 	}
 
+	private _retrieveWidgetState(): IChatViewState | undefined {
+		try {
+			const state = JSON.parse(this._storageService.get(InlineChatController._storageKey, StorageScope.PROFILE) ?? '{}');
+			return state;
+		} catch {
+			return undefined;
+		}
+	}
+
 	private _updateCtxResponseType(): void {
 
 		if (!this._session) {
@@ -985,24 +990,6 @@ export class InlineChatController implements IEditorContribution {
 
 	// ---- controller API
 
-	showSaveHint(): void {
-		if (!this._session) {
-			return;
-		}
-
-		const status = localize('savehint', "Accept or discard changes to continue saving.");
-		this._ui.value.widget.updateStatus(status, { classes: ['warn'] });
-
-		if (this._ui.value.position) {
-			this._editor.revealLineInCenterIfOutsideViewport(this._ui.value.position.lineNumber);
-		} else {
-			const hunk = this._session.hunkData.getInfo().find(info => info.getState() === HunkState.Pending);
-			if (hunk) {
-				this._editor.revealLineInCenterIfOutsideViewport(hunk.getRangesN()[0].startLineNumber);
-			}
-		}
-	}
-
 	acceptInput() {
 		return this.chatWidget.acceptInput();
 	}