diff --git a/crates/language_models/src/provider/copilot_chat.rs b/crates/language_models/src/provider/copilot_chat.rs
index c9ed413882b58dccc5b4ea807e381ce234c0e9bc..78c9e8581de51d7292be764931c53f04bd422049 100644
--- a/crates/language_models/src/provider/copilot_chat.rs
+++ b/crates/language_models/src/provider/copilot_chat.rs
@@ -68,6 +68,14 @@ impl CopilotChatLanguageModelProvider {
             State {
                 _copilot_chat_subscription: copilot_chat_subscription,
                 _settings_subscription: cx.observe_global::<SettingsStore>(|_, cx| {
+                    if let Some(copilot_chat) = CopilotChat::global(cx) {
+                        let settings = AllLanguageModelSettings::get_global(cx)
+                            .copilot_chat
+                            .clone();
+                        copilot_chat.update(cx, |chat, cx| {
+                            chat.set_settings(settings, cx);
+                        });
+                    }
                     cx.notify();
                 }),
             }