diff --git a/crates/agent_ui/src/agent_panel.rs b/crates/agent_ui/src/agent_panel.rs
index 9589d37d8ae2786053bb450a117608df52de73bf..725b7a9cc24321399c464ee51908916c090e8774 100644
--- a/crates/agent_ui/src/agent_panel.rs
+++ b/crates/agent_ui/src/agent_panel.rs
@@ -3777,7 +3777,16 @@ impl AgentPanel {
             let agent_server_store = agent_server_store;
 
             Rc::new(move |window, cx| {
-                telemetry::event!("New Thread Clicked");
+                use settings::{NewThreadLocation, Settings};
+                let thread_location = match AgentSettings::get_global(cx).new_thread_location {
+                    NewThreadLocation::LocalProject => "current_worktree",
+                    NewThreadLocation::NewWorktree => "new_worktree",
+                };
+                telemetry::event!(
+                    "New Thread Clicked",
+                    source = "agent_panel",
+                    thread_location = thread_location
+                );
 
                 let active_thread = active_thread.clone();
                 Some(ContextMenu::build(window, cx, |menu, _window, cx| {
diff --git a/crates/sidebar/src/sidebar.rs b/crates/sidebar/src/sidebar.rs
index 807808bb4d566f2faf6616f7491790daa8d46bfc..56e71d4f9818131283b1420cd4e67913cf570f3b 100644
--- a/crates/sidebar/src/sidebar.rs
+++ b/crates/sidebar/src/sidebar.rs
@@ -30,7 +30,7 @@ use remote::RemoteConnectionOptions;
 use ui::utils::platform_title_bar_height;
 
 use serde::{Deserialize, Serialize};
-use settings::Settings as _;
+use settings::{NewThreadLocation, Settings as _};
 use std::collections::{HashMap, HashSet};
 use std::mem;
 use std::rc::Rc;
@@ -3171,6 +3171,16 @@ impl Sidebar {
             return;
         };
 
+        let thread_location = match AgentSettings::get_global(cx).new_thread_location {
+            NewThreadLocation::LocalProject => "current_worktree",
+            NewThreadLocation::NewWorktree => "new_worktree",
+        };
+        telemetry::event!(
+            "New Thread Clicked",
+            source = "sidebar",
+            thread_location = thread_location
+        );
+
         self.active_entry = Some(ActiveEntry::Draft(workspace.clone()));
 
         multi_workspace.update(cx, |multi_workspace, cx| {