diff --git a/crates/agent_ui/src/acp/model_selector.rs b/crates/agent_ui/src/acp/model_selector.rs
index cbb513696d88bbfcd95e15e051fc69322fd11281..95c0478aa3cf6b1ca78cf391a5bd734820c41454 100644
--- a/crates/agent_ui/src/acp/model_selector.rs
+++ b/crates/agent_ui/src/acp/model_selector.rs
@@ -192,8 +192,10 @@ impl PickerDelegate for AcpModelPickerDelegate {
         }
     }
 
-    fn dismissed(&mut self, _: &mut Window, cx: &mut Context<Picker<Self>>) {
-        cx.emit(DismissEvent);
+    fn dismissed(&mut self, window: &mut Window, cx: &mut Context<Picker<Self>>) {
+        cx.defer_in(window, |picker, window, cx| {
+            picker.set_query("", window, cx);
+        });
     }
 
     fn render_match(