diff --git a/crates/agent/src/inline_assistant.rs b/crates/agent/src/inline_assistant.rs
index 28841e21ad28e9057038d997ad757a3dd35846b2..6b7ebb061ab356b9583fd4c920168fd7d047db9a 100644
--- a/crates/agent/src/inline_assistant.rs
+++ b/crates/agent/src/inline_assistant.rs
@@ -765,9 +765,6 @@ impl InlineAssistant {
             PromptEditorEvent::CancelRequested => {
                 self.finish_assist(assist_id, true, window, cx);
             }
-            PromptEditorEvent::DismissRequested => {
-                self.dismiss_assist(assist_id, window, cx);
-            }
             PromptEditorEvent::Resized { .. } => {
                 // This only matters for the terminal inline assistant
             }
diff --git a/crates/agent/src/inline_prompt_editor.rs b/crates/agent/src/inline_prompt_editor.rs
index e9d1f46b17da9aa3cd6dab155671227b40e2a39c..31b0c7959560b3535181f8c562b36ba9a9da4f96 100644
--- a/crates/agent/src/inline_prompt_editor.rs
+++ b/crates/agent/src/inline_prompt_editor.rs
@@ -403,9 +403,7 @@ impl<T: 'static> PromptEditor<T> {
             CodegenStatus::Idle => {
                 cx.emit(PromptEditorEvent::StartRequested);
             }
-            CodegenStatus::Pending => {
-                cx.emit(PromptEditorEvent::DismissRequested);
-            }
+            CodegenStatus::Pending => {}
             CodegenStatus::Done => {
                 if self.edited_since_done {
                     cx.emit(PromptEditorEvent::StartRequested);
@@ -831,7 +829,6 @@ pub enum PromptEditorEvent {
     StopRequested,
     ConfirmRequested { execute: bool },
     CancelRequested,
-    DismissRequested,
     Resized { height_in_lines: u8 },
 }
 
diff --git a/crates/agent/src/terminal_inline_assistant.rs b/crates/agent/src/terminal_inline_assistant.rs
index 4e907f04ce266679d496322246faaeeabfc10442..993cfd2fbdb10484d99be0a26f12c0a38b888ef0 100644
--- a/crates/agent/src/terminal_inline_assistant.rs
+++ b/crates/agent/src/terminal_inline_assistant.rs
@@ -167,9 +167,6 @@ impl TerminalInlineAssistant {
             PromptEditorEvent::CancelRequested => {
                 self.finish_assist(assist_id, true, false, window, cx);
             }
-            PromptEditorEvent::DismissRequested => {
-                self.dismiss_assist(assist_id, window, cx);
-            }
             PromptEditorEvent::Resized { height_in_lines } => {
                 self.insert_prompt_editor_into_terminal(assist_id, *height_in_lines, window, cx);
             }