diff --git a/Cargo.lock b/Cargo.lock
index 2d0cb8235d547c5486ffd89e3d54fd8d46a54f0c..6908a8ed5185ea71cc51a34d63990decaaf082d9 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -301,6 +301,7 @@ dependencies = [
 name = "agent_settings"
 version = "0.1.0"
 dependencies = [
+ "agent-client-protocol",
  "anyhow",
  "cloud_llm_client",
  "collections",
diff --git a/crates/acp_thread/src/connection.rs b/crates/acp_thread/src/connection.rs
index 3c8c56b2c02cd775be030cb4c4b05a9c75f0d10f..a670ba601159ec323ad2c88695c30bf4aeae4118 100644
--- a/crates/acp_thread/src/connection.rs
+++ b/crates/acp_thread/src/connection.rs
@@ -202,6 +202,12 @@ pub trait AgentModelSelector: 'static {
     fn should_render_footer(&self) -> bool {
         false
     }
+
+    /// Whether this selector supports the favorites feature.
+    /// Only the native agent uses the model ID format that maps to settings.
+    fn supports_favorites(&self) -> bool {
+        false
+    }
 }
 
 #[derive(Debug, Clone, PartialEq, Eq)]
@@ -239,6 +245,10 @@ impl AgentModelList {
             AgentModelList::Grouped(groups) => groups.is_empty(),
         }
     }
+
+    pub fn is_flat(&self) -> bool {
+        matches!(self, AgentModelList::Flat(_))
+    }
 }
 
 #[cfg(feature = "test-support")]
diff --git a/crates/agent/src/agent.rs b/crates/agent/src/agent.rs
index 693d3abd4497c057a75b4f01c07bd51f311f1fdb..5e16f74682ef95a4e990ed5a124a0d6031acfb0e 100644
--- a/crates/agent/src/agent.rs
+++ b/crates/agent/src/agent.rs
@@ -1164,6 +1164,10 @@ impl acp_thread::AgentModelSelector for NativeAgentModelSelector {
     fn should_render_footer(&self) -> bool {
         true
     }
+
+    fn supports_favorites(&self) -> bool {
+        true
+    }
 }
 
 impl acp_thread::AgentConnection for NativeAgentConnection {
diff --git a/crates/agent_settings/Cargo.toml b/crates/agent_settings/Cargo.toml
index 8ddcac24fe054d1226f2bbac49498fd35d6ed1c3..0d7163549f0a4b172773c9ac95dcbc84b7212667 100644
--- a/crates/agent_settings/Cargo.toml
+++ b/crates/agent_settings/Cargo.toml
@@ -12,6 +12,7 @@ workspace = true
 path = "src/agent_settings.rs"
 
 [dependencies]
+agent-client-protocol.workspace = true
 anyhow.workspace = true
 cloud_llm_client.workspace = true
 collections.workspace = true
diff --git a/crates/agent_settings/src/agent_settings.rs b/crates/agent_settings/src/agent_settings.rs
index 25ca5c78d6b76145a1b1b5d19ac86246ff419d1d..b513ec1a70b6f7ab02382dfa312ea2d4d6a47234 100644
--- a/crates/agent_settings/src/agent_settings.rs
+++ b/crates/agent_settings/src/agent_settings.rs
@@ -2,7 +2,8 @@ mod agent_profile;
 
 use std::sync::Arc;
 
-use collections::IndexMap;
+use agent_client_protocol::ModelId;
+use collections::{HashSet, IndexMap};
 use gpui::{App, Pixels, px};
 use language_model::LanguageModel;
 use project::DisableAiSettings;
@@ -33,6 +34,7 @@ pub struct AgentSettings {
     pub commit_message_model: Option<LanguageModelSelection>,
     pub thread_summary_model: Option<LanguageModelSelection>,
     pub inline_alternatives: Vec<LanguageModelSelection>,
+    pub favorite_models: Vec<LanguageModelSelection>,
     pub default_profile: AgentProfileId,
     pub default_view: DefaultAgentView,
     pub profiles: IndexMap<AgentProfileId, AgentProfileSettings>,
@@ -96,6 +98,13 @@ impl AgentSettings {
     pub fn set_message_editor_max_lines(&self) -> usize {
         self.message_editor_min_lines * 2
     }
+
+    pub fn favorite_model_ids(&self) -> HashSet<ModelId> {
+        self.favorite_models
+            .iter()
+            .map(|sel| ModelId::new(format!("{}/{}", sel.provider.0, sel.model)))
+            .collect()
+    }
 }
 
 #[derive(Clone, Copy, Debug, Serialize, Deserialize, JsonSchema, PartialEq, Default)]
@@ -164,6 +173,7 @@ impl Settings for AgentSettings {
             commit_message_model: agent.commit_message_model,
             thread_summary_model: agent.thread_summary_model,
             inline_alternatives: agent.inline_alternatives.unwrap_or_default(),
+            favorite_models: agent.favorite_models,
             default_profile: AgentProfileId(agent.default_profile.unwrap()),
             default_view: agent.default_view.unwrap(),
             profiles: agent
diff --git a/crates/agent_ui/src/acp/model_selector.rs b/crates/agent_ui/src/acp/model_selector.rs
index 658b88e0c2a4f0b4203c5f1191c0a49cb4ad6fd5..f885ff12e598168abdf7727dc03e4814e5de3b49 100644
--- a/crates/agent_ui/src/acp/model_selector.rs
+++ b/crates/agent_ui/src/acp/model_selector.rs
@@ -1,18 +1,22 @@
 use std::{cmp::Reverse, rc::Rc, sync::Arc};
 
 use acp_thread::{AgentModelInfo, AgentModelList, AgentModelSelector};
+use agent_client_protocol::ModelId;
 use agent_servers::AgentServer;
+use agent_settings::AgentSettings;
 use anyhow::Result;
-use collections::IndexMap;
+use collections::{HashSet, IndexMap};
 use fs::Fs;
 use futures::FutureExt;
 use fuzzy::{StringMatchCandidate, match_strings};
 use gpui::{
     Action, AsyncWindowContext, BackgroundExecutor, DismissEvent, FocusHandle, Task, WeakEntity,
 };
+use itertools::Itertools;
 use ordered_float::OrderedFloat;
 use picker::{Picker, PickerDelegate};
-use ui::{DocumentationAside, DocumentationEdge, DocumentationSide, prelude::*};
+use settings::Settings;
+use ui::{DocumentationAside, DocumentationEdge, DocumentationSide, IntoElement, prelude::*};
 use util::ResultExt;
 use zed_actions::agent::OpenSettings;
 
@@ -38,7 +42,7 @@ pub fn acp_model_selector(
 
 enum AcpModelPickerEntry {
     Separator(SharedString),
-    Model(AgentModelInfo),
+    Model(AgentModelInfo, bool),
 }
 
 pub struct AcpModelPickerDelegate {
@@ -140,7 +144,7 @@ impl PickerDelegate for AcpModelPickerDelegate {
         _cx: &mut Context<Picker<Self>>,
     ) -> bool {
         match self.filtered_entries.get(ix) {
-            Some(AcpModelPickerEntry::Model(_)) => true,
+            Some(AcpModelPickerEntry::Model(_, _)) => true,
             Some(AcpModelPickerEntry::Separator(_)) | None => false,
         }
     }
@@ -155,6 +159,12 @@ impl PickerDelegate for AcpModelPickerDelegate {
         window: &mut Window,
         cx: &mut Context<Picker<Self>>,
     ) -> Task<()> {
+        let favorites = if self.selector.supports_favorites() {
+            Arc::new(AgentSettings::get_global(cx).favorite_model_ids())
+        } else {
+            Default::default()
+        };
+
         cx.spawn_in(window, async move |this, cx| {
             let filtered_models = match this
                 .read_with(cx, |this, cx| {
@@ -171,7 +181,7 @@ impl PickerDelegate for AcpModelPickerDelegate {
 
             this.update_in(cx, |this, window, cx| {
                 this.delegate.filtered_entries =
-                    info_list_to_picker_entries(filtered_models).collect();
+                    info_list_to_picker_entries(filtered_models, favorites);
                 // Finds the currently selected model in the list
                 let new_index = this
                     .delegate
@@ -179,7 +189,7 @@ impl PickerDelegate for AcpModelPickerDelegate {
                     .as_ref()
                     .and_then(|selected| {
                         this.delegate.filtered_entries.iter().position(|entry| {
-                            if let AcpModelPickerEntry::Model(model_info) = entry {
+                            if let AcpModelPickerEntry::Model(model_info, _) = entry {
                                 model_info.id == selected.id
                             } else {
                                 false
@@ -195,7 +205,7 @@ impl PickerDelegate for AcpModelPickerDelegate {
     }
 
     fn confirm(&mut self, _secondary: bool, window: &mut Window, cx: &mut Context<Picker<Self>>) {
-        if let Some(AcpModelPickerEntry::Model(model_info)) =
+        if let Some(AcpModelPickerEntry::Model(model_info, _)) =
             self.filtered_entries.get(self.selected_index)
         {
             if window.modifiers().secondary() {
@@ -233,7 +243,7 @@ impl PickerDelegate for AcpModelPickerDelegate {
     fn render_match(
         &self,
         ix: usize,
-        is_focused: bool,
+        selected: bool,
         _: &mut Window,
         cx: &mut Context<Picker<Self>>,
     ) -> Option<Self::ListItem> {
@@ -241,32 +251,53 @@ impl PickerDelegate for AcpModelPickerDelegate {
             AcpModelPickerEntry::Separator(title) => {
                 Some(ModelSelectorHeader::new(title, ix > 1).into_any_element())
             }
-            AcpModelPickerEntry::Model(model_info) => {
+            AcpModelPickerEntry::Model(model_info, is_favorite) => {
                 let is_selected = Some(model_info) == self.selected_model.as_ref();
                 let default_model = self.agent_server.default_model(cx);
                 let is_default = default_model.as_ref() == Some(&model_info.id);
 
+                let supports_favorites = self.selector.supports_favorites();
+
+                let is_favorite = *is_favorite;
+                let handle_action_click = {
+                    let model_id = model_info.id.clone();
+                    let fs = self.fs.clone();
+
+                    move |cx: &App| {
+                        crate::favorite_models::toggle_model_id_in_settings(
+                            model_id.clone(),
+                            !is_favorite,
+                            fs.clone(),
+                            cx,
+                        );
+                    }
+                };
+
                 Some(
                     div()
                         .id(("model-picker-menu-child", ix))
                         .when_some(model_info.description.clone(), |this, description| {
-                            this
-                                .on_hover(cx.listener(move |menu, hovered, _, cx| {
-                                    if *hovered {
-                                        menu.delegate.selected_description = Some((ix, description.clone(), is_default));
-                                    } else if matches!(menu.delegate.selected_description, Some((id, _, _)) if id == ix) {
-                                        menu.delegate.selected_description = None;
-                                    }
-                                    cx.notify();
-                                }))
+                            this.on_hover(cx.listener(move |menu, hovered, _, cx| {
+                                if *hovered {
+                                    menu.delegate.selected_description =
+                                        Some((ix, description.clone(), is_default));
+                                } else if matches!(menu.delegate.selected_description, Some((id, _, _)) if id == ix) {
+                                    menu.delegate.selected_description = None;
+                                }
+                                cx.notify();
+                            }))
                         })
                         .child(
                             ModelSelectorListItem::new(ix, model_info.name.clone())
-                                .is_focused(is_focused)
+                                .when_some(model_info.icon, |this, icon| this.icon(icon))
                                 .is_selected(is_selected)
-                                .when_some(model_info.icon, |this, icon| this.icon(icon)),
+                                .is_focused(selected)
+                                .when(supports_favorites, |this| {
+                                    this.is_favorite(is_favorite)
+                                        .on_toggle_favorite(handle_action_click)
+                                }),
                         )
-                        .into_any_element()
+                        .into_any_element(),
                 )
             }
         }
@@ -314,18 +345,51 @@ impl PickerDelegate for AcpModelPickerDelegate {
 
 fn info_list_to_picker_entries(
     model_list: AgentModelList,
-) -> impl Iterator<Item = AcpModelPickerEntry> {
+    favorites: Arc<HashSet<ModelId>>,
+) -> Vec<AcpModelPickerEntry> {
+    let mut entries = Vec::new();
+
+    let all_models: Vec<_> = match &model_list {
+        AgentModelList::Flat(list) => list.iter().collect(),
+        AgentModelList::Grouped(index_map) => index_map.values().flatten().collect(),
+    };
+
+    let favorite_models: Vec<_> = all_models
+        .iter()
+        .filter(|m| favorites.contains(&m.id))
+        .unique_by(|m| &m.id)
+        .collect();
+
+    let has_favorites = !favorite_models.is_empty();
+    if has_favorites {
+        entries.push(AcpModelPickerEntry::Separator("Favorite".into()));
+        for model in favorite_models {
+            entries.push(AcpModelPickerEntry::Model((*model).clone(), true));
+        }
+    }
+
     match model_list {
         AgentModelList::Flat(list) => {
-            itertools::Either::Left(list.into_iter().map(AcpModelPickerEntry::Model))
+            if has_favorites {
+                entries.push(AcpModelPickerEntry::Separator("All".into()));
+            }
+            for model in list {
+                let is_favorite = favorites.contains(&model.id);
+                entries.push(AcpModelPickerEntry::Model(model, is_favorite));
+            }
         }
         AgentModelList::Grouped(index_map) => {
-            itertools::Either::Right(index_map.into_iter().flat_map(|(group_name, models)| {
-                std::iter::once(AcpModelPickerEntry::Separator(group_name.0))
-                    .chain(models.into_iter().map(AcpModelPickerEntry::Model))
-            }))
+            for (group_name, models) in index_map {
+                entries.push(AcpModelPickerEntry::Separator(group_name.0));
+                for model in models {
+                    let is_favorite = favorites.contains(&model.id);
+                    entries.push(AcpModelPickerEntry::Model(model, is_favorite));
+                }
+            }
         }
     }
+
+    entries
 }
 
 async fn fuzzy_search(
@@ -447,6 +511,170 @@ mod tests {
         }
     }
 
+    fn create_favorites(models: Vec<&str>) -> Arc<HashSet<ModelId>> {
+        Arc::new(
+            models
+                .into_iter()
+                .map(|m| ModelId::new(m.to_string()))
+                .collect(),
+        )
+    }
+
+    fn get_entry_model_ids(entries: &[AcpModelPickerEntry]) -> Vec<&str> {
+        entries
+            .iter()
+            .filter_map(|entry| match entry {
+                AcpModelPickerEntry::Model(info, _) => Some(info.id.0.as_ref()),
+                _ => None,
+            })
+            .collect()
+    }
+
+    fn get_entry_labels(entries: &[AcpModelPickerEntry]) -> Vec<&str> {
+        entries
+            .iter()
+            .map(|entry| match entry {
+                AcpModelPickerEntry::Model(info, _) => info.id.0.as_ref(),
+                AcpModelPickerEntry::Separator(s) => &s,
+            })
+            .collect()
+    }
+
+    #[gpui::test]
+    fn test_favorites_section_appears_when_favorites_exist(_cx: &mut TestAppContext) {
+        let models = create_model_list(vec![
+            ("zed", vec!["zed/claude", "zed/gemini"]),
+            ("openai", vec!["openai/gpt-5"]),
+        ]);
+        let favorites = create_favorites(vec!["zed/gemini"]);
+
+        let entries = info_list_to_picker_entries(models, favorites);
+
+        assert!(matches!(
+            entries.first(),
+            Some(AcpModelPickerEntry::Separator(s)) if s == "Favorite"
+        ));
+
+        let model_ids = get_entry_model_ids(&entries);
+        assert_eq!(model_ids[0], "zed/gemini");
+    }
+
+    #[gpui::test]
+    fn test_no_favorites_section_when_no_favorites(_cx: &mut TestAppContext) {
+        let models = create_model_list(vec![("zed", vec!["zed/claude", "zed/gemini"])]);
+        let favorites = create_favorites(vec![]);
+
+        let entries = info_list_to_picker_entries(models, favorites);
+
+        assert!(matches!(
+            entries.first(),
+            Some(AcpModelPickerEntry::Separator(s)) if s == "zed"
+        ));
+    }
+
+    #[gpui::test]
+    fn test_models_have_correct_actions(_cx: &mut TestAppContext) {
+        let models = create_model_list(vec![
+            ("zed", vec!["zed/claude", "zed/gemini"]),
+            ("openai", vec!["openai/gpt-5"]),
+        ]);
+        let favorites = create_favorites(vec!["zed/claude"]);
+
+        let entries = info_list_to_picker_entries(models, favorites);
+
+        for entry in &entries {
+            if let AcpModelPickerEntry::Model(info, is_favorite) = entry {
+                if info.id.0.as_ref() == "zed/claude" {
+                    assert!(is_favorite, "zed/claude should be a favorite");
+                } else {
+                    assert!(!is_favorite, "{} should not be a favorite", info.id.0);
+                }
+            }
+        }
+    }
+
+    #[gpui::test]
+    fn test_favorites_appear_in_both_sections(_cx: &mut TestAppContext) {
+        let models = create_model_list(vec![
+            ("zed", vec!["zed/claude", "zed/gemini"]),
+            ("openai", vec!["openai/gpt-5", "openai/gpt-4"]),
+        ]);
+        let favorites = create_favorites(vec!["zed/gemini", "openai/gpt-5"]);
+
+        let entries = info_list_to_picker_entries(models, favorites);
+        let model_ids = get_entry_model_ids(&entries);
+
+        assert_eq!(model_ids[0], "zed/gemini");
+        assert_eq!(model_ids[1], "openai/gpt-5");
+
+        assert!(model_ids[2..].contains(&"zed/gemini"));
+        assert!(model_ids[2..].contains(&"openai/gpt-5"));
+    }
+
+    #[gpui::test]
+    fn test_favorites_are_not_duplicated_when_repeated_in_other_sections(_cx: &mut TestAppContext) {
+        let models = create_model_list(vec![
+            ("Recommended", vec!["zed/claude", "anthropic/claude"]),
+            ("Zed", vec!["zed/claude", "zed/gpt-5"]),
+            ("Antropic", vec!["anthropic/claude"]),
+            ("OpenAI", vec!["openai/gpt-5"]),
+        ]);
+
+        let favorites = create_favorites(vec!["zed/claude"]);
+
+        let entries = info_list_to_picker_entries(models, favorites);
+        let labels = get_entry_labels(&entries);
+
+        assert_eq!(
+            labels,
+            vec![
+                "Favorite",
+                "zed/claude",
+                "Recommended",
+                "zed/claude",
+                "anthropic/claude",
+                "Zed",
+                "zed/claude",
+                "zed/gpt-5",
+                "Antropic",
+                "anthropic/claude",
+                "OpenAI",
+                "openai/gpt-5"
+            ]
+        );
+    }
+
+    #[gpui::test]
+    fn test_flat_model_list_with_favorites(_cx: &mut TestAppContext) {
+        let models = AgentModelList::Flat(vec![
+            acp_thread::AgentModelInfo {
+                id: acp::ModelId::new("zed/claude".to_string()),
+                name: "Claude".into(),
+                description: None,
+                icon: None,
+            },
+            acp_thread::AgentModelInfo {
+                id: acp::ModelId::new("zed/gemini".to_string()),
+                name: "Gemini".into(),
+                description: None,
+                icon: None,
+            },
+        ]);
+        let favorites = create_favorites(vec!["zed/gemini"]);
+
+        let entries = info_list_to_picker_entries(models, favorites);
+
+        assert!(matches!(
+            entries.first(),
+            Some(AcpModelPickerEntry::Separator(s)) if s == "Favorite"
+        ));
+
+        assert!(entries.iter().any(|e| matches!(
+            e,
+            AcpModelPickerEntry::Separator(s) if s == "All"
+        )));
+    }
+
     #[gpui::test]
     async fn test_fuzzy_match(cx: &mut TestAppContext) {
         let models = create_model_list(vec![
diff --git a/crates/agent_ui/src/agent_configuration/manage_profiles_modal.rs b/crates/agent_ui/src/agent_configuration/manage_profiles_modal.rs
index ed00b2b5c716fdf27abc1c9d7c5850b36fce830f..127852fd50e81cf56ae37a7af430f88ae2accf99 100644
--- a/crates/agent_ui/src/agent_configuration/manage_profiles_modal.rs
+++ b/crates/agent_ui/src/agent_configuration/manage_profiles_modal.rs
@@ -222,7 +222,6 @@ impl ManageProfilesModal {
         let profile_id_for_closure = profile_id.clone();
 
         let model_picker = cx.new(|cx| {
-            let fs = fs.clone();
             let profile_id = profile_id_for_closure.clone();
 
             language_model_selector(
@@ -250,22 +249,36 @@ impl ManageProfilesModal {
                             })
                     }
                 },
-                move |model, cx| {
-                    let provider = model.provider_id().0.to_string();
-                    let model_id = model.id().0.to_string();
-                    let profile_id = profile_id.clone();
-
-                    update_settings_file(fs.clone(), cx, move |settings, _cx| {
-                        let agent_settings = settings.agent.get_or_insert_default();
-                        if let Some(profiles) = agent_settings.profiles.as_mut() {
-                            if let Some(profile) = profiles.get_mut(profile_id.0.as_ref()) {
-                                profile.default_model = Some(LanguageModelSelection {
-                                    provider: LanguageModelProviderSetting(provider.clone()),
-                                    model: model_id.clone(),
-                                });
+                {
+                    let fs = fs.clone();
+                    move |model, cx| {
+                        let provider = model.provider_id().0.to_string();
+                        let model_id = model.id().0.to_string();
+                        let profile_id = profile_id.clone();
+
+                        update_settings_file(fs.clone(), cx, move |settings, _cx| {
+                            let agent_settings = settings.agent.get_or_insert_default();
+                            if let Some(profiles) = agent_settings.profiles.as_mut() {
+                                if let Some(profile) = profiles.get_mut(profile_id.0.as_ref()) {
+                                    profile.default_model = Some(LanguageModelSelection {
+                                        provider: LanguageModelProviderSetting(provider.clone()),
+                                        model: model_id.clone(),
+                                    });
+                                }
                             }
-                        }
-                    });
+                        });
+                    }
+                },
+                {
+                    let fs = fs.clone();
+                    move |model, should_be_favorite, cx| {
+                        crate::favorite_models::toggle_in_settings(
+                            model,
+                            should_be_favorite,
+                            fs.clone(),
+                            cx,
+                        );
+                    }
                 },
                 false, // Do not use popover styles for the model picker
                 self.focus_handle.clone(),
diff --git a/crates/agent_ui/src/agent_model_selector.rs b/crates/agent_ui/src/agent_model_selector.rs
index 9c2634143099d2097b5c6492f81c56aa51f12491..ac57ed575d9d1b6de2c53d3e0e4a91b4bd16ab1a 100644
--- a/crates/agent_ui/src/agent_model_selector.rs
+++ b/crates/agent_ui/src/agent_model_selector.rs
@@ -29,26 +29,39 @@ impl AgentModelSelector {
 
         Self {
             selector: cx.new(move |cx| {
-                let fs = fs.clone();
                 language_model_selector(
                     {
                         let model_context = model_usage_context.clone();
                         move |cx| model_context.configured_model(cx)
                     },
-                    move |model, cx| {
-                        let provider = model.provider_id().0.to_string();
-                        let model_id = model.id().0.to_string();
-                        match &model_usage_context {
-                            ModelUsageContext::InlineAssistant => {
-                                update_settings_file(fs.clone(), cx, move |settings, _cx| {
-                                    settings
-                                        .agent
-                                        .get_or_insert_default()
-                                        .set_inline_assistant_model(provider.clone(), model_id);
-                                });
+                    {
+                        let fs = fs.clone();
+                        move |model, cx| {
+                            let provider = model.provider_id().0.to_string();
+                            let model_id = model.id().0.to_string();
+                            match &model_usage_context {
+                                ModelUsageContext::InlineAssistant => {
+                                    update_settings_file(fs.clone(), cx, move |settings, _cx| {
+                                        settings
+                                            .agent
+                                            .get_or_insert_default()
+                                            .set_inline_assistant_model(provider.clone(), model_id);
+                                    });
+                                }
                             }
                         }
                     },
+                    {
+                        let fs = fs.clone();
+                        move |model, should_be_favorite, cx| {
+                            crate::favorite_models::toggle_in_settings(
+                                model,
+                                should_be_favorite,
+                                fs.clone(),
+                                cx,
+                            );
+                        }
+                    },
                     true, // Use popover styles for picker
                     focus_handle_clone,
                     window,
diff --git a/crates/agent_ui/src/agent_ui.rs b/crates/agent_ui/src/agent_ui.rs
index 4f759d6a9c7687d2cdf29752c489db2fcb1ffe68..1622d17f5852d825b9c8d69996fad7c89bb89dce 100644
--- a/crates/agent_ui/src/agent_ui.rs
+++ b/crates/agent_ui/src/agent_ui.rs
@@ -7,6 +7,7 @@ mod buffer_codegen;
 mod completion_provider;
 mod context;
 mod context_server_configuration;
+mod favorite_models;
 mod inline_assistant;
 mod inline_prompt_editor;
 mod language_model_selector;
@@ -467,6 +468,7 @@ mod tests {
             commit_message_model: None,
             thread_summary_model: None,
             inline_alternatives: vec![],
+            favorite_models: vec![],
             default_profile: AgentProfileId::default(),
             default_view: DefaultAgentView::Thread,
             profiles: Default::default(),
diff --git a/crates/agent_ui/src/favorite_models.rs b/crates/agent_ui/src/favorite_models.rs
new file mode 100644
index 0000000000000000000000000000000000000000..d8d4db976fc9916973eedd9174925fba75a06b2b
--- /dev/null
+++ b/crates/agent_ui/src/favorite_models.rs
@@ -0,0 +1,57 @@
+use std::sync::Arc;
+
+use agent_client_protocol::ModelId;
+use fs::Fs;
+use language_model::LanguageModel;
+use settings::{LanguageModelSelection, update_settings_file};
+use ui::App;
+
+fn language_model_to_selection(model: &Arc<dyn LanguageModel>) -> LanguageModelSelection {
+    LanguageModelSelection {
+        provider: model.provider_id().to_string().into(),
+        model: model.id().0.to_string(),
+    }
+}
+
+fn model_id_to_selection(model_id: &ModelId) -> LanguageModelSelection {
+    let id = model_id.0.as_ref();
+    let (provider, model) = id.split_once('/').unwrap_or(("", id));
+    LanguageModelSelection {
+        provider: provider.to_owned().into(),
+        model: model.to_owned(),
+    }
+}
+
+pub fn toggle_in_settings(
+    model: Arc<dyn LanguageModel>,
+    should_be_favorite: bool,
+    fs: Arc<dyn Fs>,
+    cx: &App,
+) {
+    let selection = language_model_to_selection(&model);
+    update_settings_file(fs, cx, move |settings, _| {
+        let agent = settings.agent.get_or_insert_default();
+        if should_be_favorite {
+            agent.add_favorite_model(selection.clone());
+        } else {
+            agent.remove_favorite_model(&selection);
+        }
+    });
+}
+
+pub fn toggle_model_id_in_settings(
+    model_id: ModelId,
+    should_be_favorite: bool,
+    fs: Arc<dyn Fs>,
+    cx: &App,
+) {
+    let selection = model_id_to_selection(&model_id);
+    update_settings_file(fs, cx, move |settings, _| {
+        let agent = settings.agent.get_or_insert_default();
+        if should_be_favorite {
+            agent.add_favorite_model(selection.clone());
+        } else {
+            agent.remove_favorite_model(&selection);
+        }
+    });
+}
diff --git a/crates/agent_ui/src/language_model_selector.rs b/crates/agent_ui/src/language_model_selector.rs
index 7e1c35eba45bf9a79d42b59374c8cdb2aa0cac21..7bb42fb330dcccb4b5401217d0181d3d616fe66f 100644
--- a/crates/agent_ui/src/language_model_selector.rs
+++ b/crates/agent_ui/src/language_model_selector.rs
@@ -1,16 +1,18 @@
 use std::{cmp::Reverse, sync::Arc};
 
-use collections::IndexMap;
+use agent_settings::AgentSettings;
+use collections::{HashMap, HashSet, IndexMap};
 use fuzzy::{StringMatch, StringMatchCandidate, match_strings};
 use gpui::{
     Action, AnyElement, App, BackgroundExecutor, DismissEvent, FocusHandle, Subscription, Task,
 };
 use language_model::{
-    AuthenticateError, ConfiguredModel, LanguageModel, LanguageModelProviderId,
-    LanguageModelRegistry,
+    AuthenticateError, ConfiguredModel, LanguageModel, LanguageModelId, LanguageModelProvider,
+    LanguageModelProviderId, LanguageModelRegistry,
 };
 use ordered_float::OrderedFloat;
 use picker::{Picker, PickerDelegate};
+use settings::Settings;
 use ui::prelude::*;
 use zed_actions::agent::OpenSettings;
 
@@ -18,12 +20,14 @@ use crate::ui::{ModelSelectorFooter, ModelSelectorHeader, ModelSelectorListItem}
 
 type OnModelChanged = Arc<dyn Fn(Arc<dyn LanguageModel>, &mut App) + 'static>;
 type GetActiveModel = Arc<dyn Fn(&App) -> Option<ConfiguredModel> + 'static>;
+type OnToggleFavorite = Arc<dyn Fn(Arc<dyn LanguageModel>, bool, &App) + 'static>;
 
 pub type LanguageModelSelector = Picker<LanguageModelPickerDelegate>;
 
 pub fn language_model_selector(
     get_active_model: impl Fn(&App) -> Option<ConfiguredModel> + 'static,
     on_model_changed: impl Fn(Arc<dyn LanguageModel>, &mut App) + 'static,
+    on_toggle_favorite: impl Fn(Arc<dyn LanguageModel>, bool, &App) + 'static,
     popover_styles: bool,
     focus_handle: FocusHandle,
     window: &mut Window,
@@ -32,6 +36,7 @@ pub fn language_model_selector(
     let delegate = LanguageModelPickerDelegate::new(
         get_active_model,
         on_model_changed,
+        on_toggle_favorite,
         popover_styles,
         focus_handle,
         window,
@@ -49,7 +54,17 @@ pub fn language_model_selector(
 }
 
 fn all_models(cx: &App) -> GroupedModels {
-    let providers = LanguageModelRegistry::global(cx).read(cx).providers();
+    let lm_registry = LanguageModelRegistry::global(cx).read(cx);
+    let providers = lm_registry.providers();
+
+    let mut favorites_index = FavoritesIndex::default();
+
+    for sel in &AgentSettings::get_global(cx).favorite_models {
+        favorites_index
+            .entry(sel.provider.0.clone().into())
+            .or_default()
+            .insert(sel.model.clone().into());
+    }
 
     let recommended = providers
         .iter()
@@ -57,10 +72,7 @@ fn all_models(cx: &App) -> GroupedModels {
             provider
                 .recommended_models(cx)
                 .into_iter()
-                .map(|model| ModelInfo {
-                    model,
-                    icon: provider.icon(),
-                })
+                .map(|model| ModelInfo::new(&**provider, model, &favorites_index))
         })
         .collect();
 
@@ -70,25 +82,44 @@ fn all_models(cx: &App) -> GroupedModels {
             provider
                 .provided_models(cx)
                 .into_iter()
-                .map(|model| ModelInfo {
-                    model,
-                    icon: provider.icon(),
-                })
+                .map(|model| ModelInfo::new(&**provider, model, &favorites_index))
         })
         .collect();
 
     GroupedModels::new(all, recommended)
 }
 
+type FavoritesIndex = HashMap<LanguageModelProviderId, HashSet<LanguageModelId>>;
+
 #[derive(Clone)]
 struct ModelInfo {
     model: Arc<dyn LanguageModel>,
     icon: IconName,
+    is_favorite: bool,
+}
+
+impl ModelInfo {
+    fn new(
+        provider: &dyn LanguageModelProvider,
+        model: Arc<dyn LanguageModel>,
+        favorites_index: &FavoritesIndex,
+    ) -> Self {
+        let is_favorite = favorites_index
+            .get(&provider.id())
+            .map_or(false, |set| set.contains(&model.id()));
+
+        Self {
+            model,
+            icon: provider.icon(),
+            is_favorite,
+        }
+    }
 }
 
 pub struct LanguageModelPickerDelegate {
     on_model_changed: OnModelChanged,
     get_active_model: GetActiveModel,
+    on_toggle_favorite: OnToggleFavorite,
     all_models: Arc<GroupedModels>,
     filtered_entries: Vec<LanguageModelPickerEntry>,
     selected_index: usize,
@@ -102,6 +133,7 @@ impl LanguageModelPickerDelegate {
     fn new(
         get_active_model: impl Fn(&App) -> Option<ConfiguredModel> + 'static,
         on_model_changed: impl Fn(Arc<dyn LanguageModel>, &mut App) + 'static,
+        on_toggle_favorite: impl Fn(Arc<dyn LanguageModel>, bool, &App) + 'static,
         popover_styles: bool,
         focus_handle: FocusHandle,
         window: &mut Window,
@@ -117,6 +149,7 @@ impl LanguageModelPickerDelegate {
             selected_index: Self::get_active_model_index(&entries, get_active_model(cx)),
             filtered_entries: entries,
             get_active_model: Arc::new(get_active_model),
+            on_toggle_favorite: Arc::new(on_toggle_favorite),
             _authenticate_all_providers_task: Self::authenticate_all_providers(cx),
             _subscriptions: vec![cx.subscribe_in(
                 &LanguageModelRegistry::global(cx),
@@ -219,12 +252,19 @@ impl LanguageModelPickerDelegate {
 }
 
 struct GroupedModels {
+    favorites: Vec<ModelInfo>,
     recommended: Vec<ModelInfo>,
     all: IndexMap<LanguageModelProviderId, Vec<ModelInfo>>,
 }
 
 impl GroupedModels {
     pub fn new(all: Vec<ModelInfo>, recommended: Vec<ModelInfo>) -> Self {
+        let favorites = all
+            .iter()
+            .filter(|info| info.is_favorite)
+            .cloned()
+            .collect();
+
         let mut all_by_provider: IndexMap<_, Vec<ModelInfo>> = IndexMap::default();
         for model in all {
             let provider = model.model.provider_id();
@@ -236,6 +276,7 @@ impl GroupedModels {
         }
 
         Self {
+            favorites,
             recommended,
             all: all_by_provider,
         }
@@ -244,13 +285,18 @@ impl GroupedModels {
     fn entries(&self) -> Vec<LanguageModelPickerEntry> {
         let mut entries = Vec::new();
 
+        if !self.favorites.is_empty() {
+            entries.push(LanguageModelPickerEntry::Separator("Favorite".into()));
+            for info in &self.favorites {
+                entries.push(LanguageModelPickerEntry::Model(info.clone()));
+            }
+        }
+
         if !self.recommended.is_empty() {
             entries.push(LanguageModelPickerEntry::Separator("Recommended".into()));
-            entries.extend(
-                self.recommended
-                    .iter()
-                    .map(|info| LanguageModelPickerEntry::Model(info.clone())),
-            );
+            for info in &self.recommended {
+                entries.push(LanguageModelPickerEntry::Model(info.clone()));
+            }
         }
 
         for models in self.all.values() {
@@ -260,12 +306,11 @@ impl GroupedModels {
             entries.push(LanguageModelPickerEntry::Separator(
                 models[0].model.provider_name().0,
             ));
-            entries.extend(
-                models
-                    .iter()
-                    .map(|info| LanguageModelPickerEntry::Model(info.clone())),
-            );
+            for info in models {
+                entries.push(LanguageModelPickerEntry::Model(info.clone()));
+            }
         }
+
         entries
     }
 }
@@ -461,7 +506,7 @@ impl PickerDelegate for LanguageModelPickerDelegate {
     fn render_match(
         &self,
         ix: usize,
-        is_focused: bool,
+        selected: bool,
         _: &mut Window,
         cx: &mut Context<Picker<Self>>,
     ) -> Option<Self::ListItem> {
@@ -477,11 +522,20 @@ impl PickerDelegate for LanguageModelPickerDelegate {
                 let is_selected = Some(model_info.model.provider_id()) == active_provider_id
                     && Some(model_info.model.id()) == active_model_id;
 
+                let is_favorite = model_info.is_favorite;
+                let handle_action_click = {
+                    let model = model_info.model.clone();
+                    let on_toggle_favorite = self.on_toggle_favorite.clone();
+                    move |cx: &App| on_toggle_favorite(model.clone(), !is_favorite, cx)
+                };
+
                 Some(
                     ModelSelectorListItem::new(ix, model_info.model.name().0)
-                        .is_focused(is_focused)
-                        .is_selected(is_selected)
                         .icon(model_info.icon)
+                        .is_selected(is_selected)
+                        .is_focused(selected)
+                        .is_favorite(is_favorite)
+                        .on_toggle_favorite(handle_action_click)
                         .into_any_element(),
                 )
             }
@@ -493,12 +547,12 @@ impl PickerDelegate for LanguageModelPickerDelegate {
         _window: &mut Window,
         _cx: &mut Context<Picker<Self>>,
     ) -> Option<gpui::AnyElement> {
+        let focus_handle = self.focus_handle.clone();
+
         if !self.popover_styles {
             return None;
         }
 
-        let focus_handle = self.focus_handle.clone();
-
         Some(ModelSelectorFooter::new(OpenSettings.boxed_clone(), focus_handle).into_any_element())
     }
 }
@@ -598,11 +652,24 @@ mod tests {
     }
 
     fn create_models(model_specs: Vec<(&str, &str)>) -> Vec<ModelInfo> {
+        create_models_with_favorites(model_specs, vec![])
+    }
+
+    fn create_models_with_favorites(
+        model_specs: Vec<(&str, &str)>,
+        favorites: Vec<(&str, &str)>,
+    ) -> Vec<ModelInfo> {
         model_specs
             .into_iter()
-            .map(|(provider, name)| ModelInfo {
-                model: Arc::new(TestLanguageModel::new(name, provider)),
-                icon: IconName::Ai,
+            .map(|(provider, name)| {
+                let is_favorite = favorites
+                    .iter()
+                    .any(|(fav_provider, fav_name)| *fav_provider == provider && *fav_name == name);
+                ModelInfo {
+                    model: Arc::new(TestLanguageModel::new(name, provider)),
+                    icon: IconName::Ai,
+                    is_favorite,
+                }
             })
             .collect()
     }
@@ -740,4 +807,93 @@ mod tests {
             vec!["zed/claude", "zed/gemini", "copilot/claude"],
         );
     }
+
+    #[gpui::test]
+    fn test_favorites_section_appears_when_favorites_exist(_cx: &mut TestAppContext) {
+        let recommended_models = create_models(vec![("zed", "claude")]);
+        let all_models = create_models_with_favorites(
+            vec![("zed", "claude"), ("zed", "gemini"), ("openai", "gpt-4")],
+            vec![("zed", "gemini")],
+        );
+
+        let grouped_models = GroupedModels::new(all_models, recommended_models);
+        let entries = grouped_models.entries();
+
+        assert!(matches!(
+            entries.first(),
+            Some(LanguageModelPickerEntry::Separator(s)) if s == "Favorite"
+        ));
+
+        assert_models_eq(grouped_models.favorites, vec!["zed/gemini"]);
+    }
+
+    #[gpui::test]
+    fn test_no_favorites_section_when_no_favorites(_cx: &mut TestAppContext) {
+        let recommended_models = create_models(vec![("zed", "claude")]);
+        let all_models = create_models(vec![("zed", "claude"), ("zed", "gemini")]);
+
+        let grouped_models = GroupedModels::new(all_models, recommended_models);
+        let entries = grouped_models.entries();
+
+        assert!(matches!(
+            entries.first(),
+            Some(LanguageModelPickerEntry::Separator(s)) if s == "Recommended"
+        ));
+
+        assert!(grouped_models.favorites.is_empty());
+    }
+
+    #[gpui::test]
+    fn test_models_have_correct_actions(_cx: &mut TestAppContext) {
+        let recommended_models =
+            create_models_with_favorites(vec![("zed", "claude")], vec![("zed", "claude")]);
+        let all_models = create_models_with_favorites(
+            vec![("zed", "claude"), ("zed", "gemini"), ("openai", "gpt-4")],
+            vec![("zed", "claude")],
+        );
+
+        let grouped_models = GroupedModels::new(all_models, recommended_models);
+        let entries = grouped_models.entries();
+
+        for entry in &entries {
+            if let LanguageModelPickerEntry::Model(info) = entry {
+                if info.model.telemetry_id() == "zed/claude" {
+                    assert!(info.is_favorite, "zed/claude should be a favorite");
+                } else {
+                    assert!(
+                        !info.is_favorite,
+                        "{} should not be a favorite",
+                        info.model.telemetry_id()
+                    );
+                }
+            }
+        }
+    }
+
+    #[gpui::test]
+    fn test_favorites_appear_in_other_sections(_cx: &mut TestAppContext) {
+        let favorites = vec![("zed", "gemini"), ("openai", "gpt-4")];
+
+        let recommended_models =
+            create_models_with_favorites(vec![("zed", "claude")], favorites.clone());
+
+        let all_models = create_models_with_favorites(
+            vec![
+                ("zed", "claude"),
+                ("zed", "gemini"),
+                ("openai", "gpt-4"),
+                ("openai", "gpt-3.5"),
+            ],
+            favorites,
+        );
+
+        let grouped_models = GroupedModels::new(all_models, recommended_models);
+
+        assert_models_eq(grouped_models.favorites, vec!["zed/gemini", "openai/gpt-4"]);
+        assert_models_eq(grouped_models.recommended, vec!["zed/claude"]);
+        assert_models_eq(
+            grouped_models.all.values().flatten().cloned().collect(),
+            vec!["zed/claude", "zed/gemini", "openai/gpt-4", "openai/gpt-3.5"],
+        );
+    }
 }
diff --git a/crates/agent_ui/src/text_thread_editor.rs b/crates/agent_ui/src/text_thread_editor.rs
index 5e3f348c17de3cd0dae9f5fe41a2477211d6ddd8..881eb213a3886b894a778a34cb6ba129bf42c1a4 100644
--- a/crates/agent_ui/src/text_thread_editor.rs
+++ b/crates/agent_ui/src/text_thread_editor.rs
@@ -304,17 +304,31 @@ impl TextThreadEditor {
             language_model_selector: cx.new(|cx| {
                 language_model_selector(
                     |cx| LanguageModelRegistry::read_global(cx).default_model(),
-                    move |model, cx| {
-                        update_settings_file(fs.clone(), cx, move |settings, _| {
-                            let provider = model.provider_id().0.to_string();
-                            let model = model.id().0.to_string();
-                            settings.agent.get_or_insert_default().set_model(
-                                LanguageModelSelection {
-                                    provider: LanguageModelProviderSetting(provider),
-                                    model,
-                                },
-                            )
-                        });
+                    {
+                        let fs = fs.clone();
+                        move |model, cx| {
+                            update_settings_file(fs.clone(), cx, move |settings, _| {
+                                let provider = model.provider_id().0.to_string();
+                                let model = model.id().0.to_string();
+                                settings.agent.get_or_insert_default().set_model(
+                                    LanguageModelSelection {
+                                        provider: LanguageModelProviderSetting(provider),
+                                        model,
+                                    },
+                                )
+                            });
+                        }
+                    },
+                    {
+                        let fs = fs.clone();
+                        move |model, should_be_favorite, cx| {
+                            crate::favorite_models::toggle_in_settings(
+                                model,
+                                should_be_favorite,
+                                fs.clone(),
+                                cx,
+                            );
+                        }
                     },
                     true, // Use popover styles for picker
                     focus_handle,
diff --git a/crates/agent_ui/src/ui/model_selector_components.rs b/crates/agent_ui/src/ui/model_selector_components.rs
index 3218daef7c9aadae5cd45b2fc65807d8a32254bd..184c8e0ba2d3ea307c869e42a13b75f36e713c42 100644
--- a/crates/agent_ui/src/ui/model_selector_components.rs
+++ b/crates/agent_ui/src/ui/model_selector_components.rs
@@ -1,5 +1,5 @@
 use gpui::{Action, FocusHandle, prelude::*};
-use ui::{KeyBinding, ListItem, ListItemSpacing, prelude::*};
+use ui::{ElevationIndex, KeyBinding, ListItem, ListItemSpacing, Tooltip, prelude::*};
 
 #[derive(IntoElement)]
 pub struct ModelSelectorHeader {
@@ -42,6 +42,8 @@ pub struct ModelSelectorListItem {
     icon: Option<IconName>,
     is_selected: bool,
     is_focused: bool,
+    is_favorite: bool,
+    on_toggle_favorite: Option<Box<dyn Fn(&App) + 'static>>,
 }
 
 impl ModelSelectorListItem {
@@ -52,6 +54,8 @@ impl ModelSelectorListItem {
             icon: None,
             is_selected: false,
             is_focused: false,
+            is_favorite: false,
+            on_toggle_favorite: None,
         }
     }
 
@@ -69,6 +73,16 @@ impl ModelSelectorListItem {
         self.is_focused = is_focused;
         self
     }
+
+    pub fn is_favorite(mut self, is_favorite: bool) -> Self {
+        self.is_favorite = is_favorite;
+        self
+    }
+
+    pub fn on_toggle_favorite(mut self, handler: impl Fn(&App) + 'static) -> Self {
+        self.on_toggle_favorite = Some(Box::new(handler));
+        self
+    }
 }
 
 impl RenderOnce for ModelSelectorListItem {
@@ -79,6 +93,8 @@ impl RenderOnce for ModelSelectorListItem {
             Color::Muted
         };
 
+        let is_favorite = self.is_favorite;
+
         ListItem::new(self.index)
             .inset(true)
             .spacing(ListItemSpacing::Sparse)
@@ -103,6 +119,23 @@ impl RenderOnce for ModelSelectorListItem {
                         .size(IconSize::Small),
                 )
             }))
+            .end_hover_slot(div().pr_2().when_some(self.on_toggle_favorite, {
+                |this, handle_click| {
+                    let (icon, color, tooltip) = if is_favorite {
+                        (IconName::StarFilled, Color::Accent, "Unfavorite Model")
+                    } else {
+                        (IconName::Star, Color::Default, "Favorite Model")
+                    };
+                    this.child(
+                        IconButton::new(("toggle-favorite", self.index), icon)
+                            .layer(ElevationIndex::ElevatedSurface)
+                            .icon_color(color)
+                            .icon_size(IconSize::Small)
+                            .tooltip(Tooltip::text(tooltip))
+                            .on_click(move |_, _, cx| (handle_click)(cx)),
+                    )
+                }
+            }))
     }
 }
 
diff --git a/crates/settings/src/settings_content/agent.rs b/crates/settings/src/settings_content/agent.rs
index f7a88deb7d8ba88db6497da2cf79035a64446456..d3a8e40084fc5db7fd348908b1b721617c7c8206 100644
--- a/crates/settings/src/settings_content/agent.rs
+++ b/crates/settings/src/settings_content/agent.rs
@@ -38,6 +38,9 @@ pub struct AgentSettingsContent {
     pub default_height: Option<f32>,
     /// The default model to use when creating new chats and for other features when a specific model is not specified.
     pub default_model: Option<LanguageModelSelection>,
+    /// Favorite models to show at the top of the model selector.
+    #[serde(default)]
+    pub favorite_models: Vec<LanguageModelSelection>,
     /// Model to use for the inline assistant. Defaults to default_model when not specified.
     pub inline_assistant_model: Option<LanguageModelSelection>,
     /// Model to use for the inline assistant when streaming tools are enabled.
@@ -176,6 +179,16 @@ impl AgentSettingsContent {
     pub fn set_profile(&mut self, profile_id: Arc<str>) {
         self.default_profile = Some(profile_id);
     }
+
+    pub fn add_favorite_model(&mut self, model: LanguageModelSelection) {
+        if !self.favorite_models.contains(&model) {
+            self.favorite_models.push(model);
+        }
+    }
+
+    pub fn remove_favorite_model(&mut self, model: &LanguageModelSelection) {
+        self.favorite_models.retain(|m| m != model);
+    }
 }
 
 #[with_fallible_options]