diff --git a/crates/agent_ui/src/agent_panel.rs b/crates/agent_ui/src/agent_panel.rs
index 73bde350fa12301d33d92ca5c787a74da2ebcaa3..ae7ab9d2cfb679aab6722f87eea30bf82de6d8e1 100644
--- a/crates/agent_ui/src/agent_panel.rs
+++ b/crates/agent_ui/src/agent_panel.rs
@@ -3206,7 +3206,7 @@ impl Panel for AgentPanel {
     }
 
     fn activation_priority(&self) -> u32 {
-        3
+        8
     }
 
     fn enabled(&self, cx: &App) -> bool {
diff --git a/crates/agent_ui/src/agent_ui.rs b/crates/agent_ui/src/agent_ui.rs
index db3b2526e45a4aade6d03a8d8ff87fd26106b76d..8f41944723e05e5a89d5df6ccc947c0d62488ff0 100644
--- a/crates/agent_ui/src/agent_ui.rs
+++ b/crates/agent_ui/src/agent_ui.rs
@@ -47,7 +47,7 @@ use client::Client;
 use command_palette_hooks::CommandPaletteFilter;
 use feature_flags::{AgentV2FeatureFlag, FeatureFlagAppExt as _};
 use fs::Fs;
-use gpui::{Action, App, Context, Entity, SharedString, Window, actions};
+use gpui::{Action, App, Context, Entity, SharedString, UpdateGlobal, Window, actions};
 use language::{
     LanguageRegistry,
     language_settings::{AllLanguageSettings, EditPredictionProvider},
@@ -59,7 +59,7 @@ use project::{AgentId, DisableAiSettings};
 use prompt_store::PromptBuilder;
 use schemars::JsonSchema;
 use serde::{Deserialize, Serialize};
-use settings::{LanguageModelSelection, Settings as _, SettingsStore};
+use settings::{DockPosition, DockSide, LanguageModelSelection, Settings as _, SettingsStore};
 use std::any::TypeId;
 use workspace::Workspace;
 
@@ -415,6 +415,31 @@ pub fn init(
         update_command_palette_filter(cx);
     })
     .detach();
+
+    cx.observe_flag::<AgentV2FeatureFlag, _>(|is_enabled, cx| {
+        SettingsStore::update_global(cx, |store, cx| {
+            store.update_default_settings(cx, |defaults| {
+                if is_enabled {
+                    defaults.agent.get_or_insert_default().dock = Some(DockPosition::Left);
+                    defaults.project_panel.get_or_insert_default().dock = Some(DockSide::Right);
+                    defaults.outline_panel.get_or_insert_default().dock = Some(DockSide::Right);
+                    defaults.collaboration_panel.get_or_insert_default().dock =
+                        Some(DockPosition::Right);
+                    defaults.git_panel.get_or_insert_default().dock = Some(DockPosition::Right);
+                    defaults.notification_panel.get_or_insert_default().button = Some(false);
+                } else {
+                    defaults.agent.get_or_insert_default().dock = Some(DockPosition::Right);
+                    defaults.project_panel.get_or_insert_default().dock = Some(DockSide::Left);
+                    defaults.outline_panel.get_or_insert_default().dock = Some(DockSide::Left);
+                    defaults.collaboration_panel.get_or_insert_default().dock =
+                        Some(DockPosition::Left);
+                    defaults.git_panel.get_or_insert_default().dock = Some(DockPosition::Left);
+                    defaults.notification_panel.get_or_insert_default().button = Some(true);
+                }
+            });
+        });
+    })
+    .detach();
 }
 
 fn update_command_palette_filter(cx: &mut App) {
diff --git a/crates/collab_ui/src/collab_panel.rs b/crates/collab_ui/src/collab_panel.rs
index 34595e9440f518a23128e4a00ba909cec055b1e2..63fe636dab3cf756ef8cee5eb2f31e45d69c6cdc 100644
--- a/crates/collab_ui/src/collab_panel.rs
+++ b/crates/collab_ui/src/collab_panel.rs
@@ -3229,7 +3229,7 @@ impl Panel for CollabPanel {
     }
 
     fn activation_priority(&self) -> u32 {
-        6
+        5
     }
 }
 
diff --git a/crates/collab_ui/src/notification_panel.rs b/crates/collab_ui/src/notification_panel.rs
index 4374349b15f1c8e6404c61648fed720550e31a3e..be11132ac0a781a69a7b2471d9fb96f447e113f7 100644
--- a/crates/collab_ui/src/notification_panel.rs
+++ b/crates/collab_ui/src/notification_panel.rs
@@ -690,7 +690,7 @@ impl Panel for NotificationPanel {
     }
 
     fn activation_priority(&self) -> u32 {
-        8
+        3
     }
 }
 
diff --git a/crates/outline_panel/src/outline_panel.rs b/crates/outline_panel/src/outline_panel.rs
index c4d491db923b4151855d2c45461e370d061537ab..cad070392c5279ec3a6aeea0dbf22f6b9585b31f 100644
--- a/crates/outline_panel/src/outline_panel.rs
+++ b/crates/outline_panel/src/outline_panel.rs
@@ -5069,7 +5069,7 @@ impl Panel for OutlinePanel {
     }
 
     fn activation_priority(&self) -> u32 {
-        5
+        6
     }
 }
 
diff --git a/crates/settings/src/settings_store.rs b/crates/settings/src/settings_store.rs
index 26425faf113a9dc0f52ad04809dc71c2f89eeb69..cc5a9105d69d2b35cdff6f10b49e08e0f9a506cb 100644
--- a/crates/settings/src/settings_store.rs
+++ b/crates/settings/src/settings_store.rs
@@ -793,6 +793,17 @@ impl SettingsStore {
         edits
     }
 
+    /// Mutates the default settings in place and recomputes all setting values.
+    pub fn update_default_settings(
+        &mut self,
+        cx: &mut App,
+        update: impl FnOnce(&mut SettingsContent),
+    ) {
+        let default_settings = Rc::make_mut(&mut self.default_settings);
+        update(default_settings);
+        self.recompute_values(None, cx);
+    }
+
     /// Sets the default settings via a JSON string.
     ///
     /// The string should contain a JSON object with a default value for every setting.
diff --git a/crates/workspace/src/dock.rs b/crates/workspace/src/dock.rs
index 44a24f687a49552f707d968e82d19387b74b0ac1..1774539559cd75e621dc8e37261872294746a325 100644
--- a/crates/workspace/src/dock.rs
+++ b/crates/workspace/src/dock.rs
@@ -911,7 +911,7 @@ impl Render for PanelButtons {
             DockPosition::Bottom | DockPosition::Right => (Corner::BottomRight, Corner::TopRight),
         };
 
-        let buttons: Vec<_> = dock
+        let mut buttons: Vec<_> = dock
             .panel_entries
             .iter()
             .enumerate()
@@ -1004,12 +1004,18 @@ impl Render for PanelButtons {
             })
             .collect();
 
+        if dock_position == DockPosition::Right {
+            buttons.reverse();
+        }
+
         let has_buttons = !buttons.is_empty();
 
         h_flex()
             .gap_1()
             .when(
-                has_buttons && dock.position == DockPosition::Bottom,
+                has_buttons
+                    && (dock.position == DockPosition::Bottom
+                        || dock.position == DockPosition::Right),
                 |this| this.child(Divider::vertical().color(DividerColor::Border)),
             )
             .children(buttons)
diff --git a/crates/zed/src/zed.rs b/crates/zed/src/zed.rs
index 10d8c0d5974fc1c3a097a3d09c34f107f7840877..3d933e35c684fbf55d401d28831e5e844b456e16 100644
--- a/crates/zed/src/zed.rs
+++ b/crates/zed/src/zed.rs
@@ -2461,7 +2461,7 @@ mod tests {
             .update(cx, |multi_workspace, window, cx| {
                 multi_workspace.workspace().update(cx, |workspace, cx| {
                     assert_eq!(workspace.worktrees(cx).count(), 2);
-                    assert!(workspace.left_dock().read(cx).is_open());
+                    assert!(workspace.right_dock().read(cx).is_open());
                     assert!(
                         workspace
                             .active_pane()
@@ -2520,7 +2520,7 @@ mod tests {
                         .collect::<Vec<_>>(),
                     &[Path::new(path!("/root/e")).into()]
                 );
-                assert!(workspace.left_dock().read(cx).is_open());
+                assert!(workspace.right_dock().read(cx).is_open());
                 assert!(workspace.active_pane().focus_handle(cx).is_focused(window));
             })
             .unwrap();