diff --git a/crates/editor/src/mouse_context_menu.rs b/crates/editor/src/mouse_context_menu.rs
index 7c83113f7837565efc59889e74bf397b392c516b..2a63e39adda52734b301eda0d32a5bfa10a8e47e 100644
--- a/crates/editor/src/mouse_context_menu.rs
+++ b/crates/editor/src/mouse_context_menu.rs
@@ -8,6 +8,8 @@ use crate::{
 };
 use gpui::prelude::FluentBuilder;
 use gpui::{Context, DismissEvent, Entity, Focusable as _, Pixels, Point, Subscription, Window};
+use project::DisableAiSettings;
+use settings::Settings;
 use std::ops::Range;
 use text::PointUtf16;
 use workspace::OpenInTerminal;
@@ -202,6 +204,7 @@ pub fn deploy_context_menu(
 
         let evaluate_selection = window.is_action_available(&EvaluateSelectedText, cx);
         let run_to_cursor = window.is_action_available(&RunToCursor, cx);
+        let disable_ai = DisableAiSettings::get_global(cx).disable_ai;
 
         ui::ContextMenu::build(window, cx, |menu, _window, _cx| {
             let builder = menu
@@ -234,7 +237,9 @@ pub fn deploy_context_menu(
                         quick_launch: false,
                     }),
                 )
-                .action("Add to Agent Thread", Box::new(AddSelectionToThread))
+                .when(!disable_ai && has_selections, |this| {
+                    this.action("Add to Agent Thread", Box::new(AddSelectionToThread))
+                })
                 .separator()
                 .action("Cut", Box::new(Cut))
                 .action("Copy", Box::new(Copy))
diff --git a/crates/zed/src/zed/app_menus.rs b/crates/zed/src/zed/app_menus.rs
index af68cbbbe9c5178db80f1fc9adc0a922e634c82a..b86889f60acb5f738c93012335ef27b091edc0e2 100644
--- a/crates/zed/src/zed/app_menus.rs
+++ b/crates/zed/src/zed/app_menus.rs
@@ -2,7 +2,7 @@ use collab_ui::collab_panel;
 use gpui::{App, Menu, MenuItem, OsAction};
 use release_channel::ReleaseChannel;
 use terminal_view::terminal_panel;
-use zed_actions::{ToggleFocus as ToggleDebugPanel, agent::AddSelectionToThread, dev};
+use zed_actions::{ToggleFocus as ToggleDebugPanel, dev};
 
 pub fn app_menus(cx: &mut App) -> Vec<Menu> {
     use zed_actions::Quit;
@@ -218,8 +218,6 @@ pub fn app_menus(cx: &mut App) -> Vec<Menu> {
                 MenuItem::action("Move Line Up", editor::actions::MoveLineUp),
                 MenuItem::action("Move Line Down", editor::actions::MoveLineDown),
                 MenuItem::action("Duplicate Selection", editor::actions::DuplicateLineDown),
-                MenuItem::separator(),
-                MenuItem::action("Add to Agent Thread", AddSelectionToThread),
             ],
         },
         Menu {
diff --git a/crates/zed/src/zed/quick_action_bar.rs b/crates/zed/src/zed/quick_action_bar.rs
index 273e99588b90d16f6c0b7c4f2982cd995d4ca2f1..402881680232ea636f7cb105db759f417a435145 100644
--- a/crates/zed/src/zed/quick_action_bar.rs
+++ b/crates/zed/src/zed/quick_action_bar.rs
@@ -15,7 +15,7 @@ use gpui::{
     FocusHandle, Focusable, InteractiveElement, ParentElement, Render, Styled, Subscription,
     WeakEntity, Window, anchored, deferred, point,
 };
-use project::project_settings::DiagnosticSeverity;
+use project::{DisableAiSettings, project_settings::DiagnosticSeverity};
 use search::{BufferSearchBar, buffer_search};
 use settings::{Settings, SettingsStore};
 use ui::{
@@ -27,7 +27,7 @@ use workspace::item::ItemBufferKind;
 use workspace::{
     ToolbarItemEvent, ToolbarItemLocation, ToolbarItemView, Workspace, item::ItemHandle,
 };
-use zed_actions::{assistant::InlineAssist, outline::ToggleOutline};
+use zed_actions::{agent::AddSelectionToThread, assistant::InlineAssist, outline::ToggleOutline};
 
 const MAX_CODE_ACTION_MENU_LINES: u32 = 16;
 
@@ -241,8 +241,14 @@ impl Render for QuickActionBar {
                 .read(cx)
                 .snapshot(cx)
                 .has_diff_hunks();
+            let has_selection = editor.update(cx, |editor, cx| {
+                editor.has_non_empty_selection(&editor.display_snapshot(cx))
+            });
+
             let focus = editor.focus_handle(cx);
 
+            let disable_ai = DisableAiSettings::get_global(cx).disable_ai;
+
             PopoverMenu::new("editor-selections-dropdown")
                 .trigger_with_tooltip(
                     IconButton::new("toggle_editor_selections_icon", IconName::CursorIBeam)
@@ -278,6 +284,13 @@ impl Render for QuickActionBar {
                                     skip_soft_wrap: true,
                                 }),
                             )
+                            .when(!disable_ai, |this| {
+                                this.separator().action_disabled_when(
+                                    !has_selection,
+                                    "Add to Agent Thread",
+                                    Box::new(AddSelectionToThread),
+                                )
+                            })
                             .separator()
                             .action("Go to Symbol", Box::new(ToggleOutline))
                             .action("Go to Line/Column", Box::new(ToggleGoToLine))