diff --git a/Cargo.lock b/Cargo.lock
index d79134c6145d3a6644f780097f7dd8f69eeae295..4e4d86b947be1f68d03b225d4a62747659c99bf8 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -76,6 +76,7 @@ dependencies = [
  "clock",
  "collections",
  "ctor",
+ "fs",
  "futures 0.3.31",
  "gpui",
  "indoc",
diff --git a/crates/action_log/Cargo.toml b/crates/action_log/Cargo.toml
index 8488df691e40ea3bcfc04f4f6f74964fba7863dd..b1a1bf824fb770b8378e596fd0c799a7cf98b13d 100644
--- a/crates/action_log/Cargo.toml
+++ b/crates/action_log/Cargo.toml
@@ -20,6 +20,7 @@ buffer_diff.workspace = true
 log.workspace = true
 clock.workspace = true
 collections.workspace = true
+fs.workspace = true
 futures.workspace = true
 gpui.workspace = true
 language.workspace = true
diff --git a/crates/action_log/src/action_log.rs b/crates/action_log/src/action_log.rs
index 5f8a639c0559c10546fc5640dc240aeba9dde487..5679f3c58fe52057f7a4a0faa24d5b5db2b5e497 100644
--- a/crates/action_log/src/action_log.rs
+++ b/crates/action_log/src/action_log.rs
@@ -1,14 +1,20 @@
 use anyhow::{Context as _, Result};
 use buffer_diff::BufferDiff;
 use clock;
-use collections::BTreeMap;
+use collections::{BTreeMap, HashMap};
+use fs::MTime;
 use futures::{FutureExt, StreamExt, channel::mpsc};
 use gpui::{
     App, AppContext, AsyncApp, Context, Entity, SharedString, Subscription, Task, WeakEntity,
 };
 use language::{Anchor, Buffer, BufferEvent, Point, ToOffset, ToPoint};
 use project::{Project, ProjectItem, lsp_store::OpenLspBufferHandle};
-use std::{cmp, ops::Range, sync::Arc};
+use std::{
+    cmp,
+    ops::Range,
+    path::{Path, PathBuf},
+    sync::Arc,
+};
 use text::{Edit, Patch, Rope};
 use util::{RangeExt, ResultExt as _};
 
@@ -54,6 +60,8 @@ pub struct ActionLog {
     linked_action_log: Option<Entity<ActionLog>>,
     /// Stores undo information for the most recent reject operation
     last_reject_undo: Option<LastRejectUndo>,
+    /// Tracks the last time files were read by the agent, to detect external modifications
+    file_read_times: HashMap<PathBuf, MTime>,
 }
 
 impl ActionLog {
@@ -64,6 +72,7 @@ impl ActionLog {
             project,
             linked_action_log: None,
             last_reject_undo: None,
+            file_read_times: HashMap::default(),
         }
     }
 
@@ -76,6 +85,32 @@ impl ActionLog {
         &self.project
     }
 
+    pub fn file_read_time(&self, path: &Path) -> Option<MTime> {
+        self.file_read_times.get(path).copied()
+    }
+
+    fn update_file_read_time(&mut self, buffer: &Entity<Buffer>, cx: &App) {
+        let buffer = buffer.read(cx);
+        if let Some(file) = buffer.file() {
+            if let Some(local_file) = file.as_local() {
+                if let Some(mtime) = file.disk_state().mtime() {
+                    let abs_path = local_file.abs_path(cx);
+                    self.file_read_times.insert(abs_path, mtime);
+                }
+            }
+        }
+    }
+
+    fn remove_file_read_time(&mut self, buffer: &Entity<Buffer>, cx: &App) {
+        let buffer = buffer.read(cx);
+        if let Some(file) = buffer.file() {
+            if let Some(local_file) = file.as_local() {
+                let abs_path = local_file.abs_path(cx);
+                self.file_read_times.remove(&abs_path);
+            }
+        }
+    }
+
     fn track_buffer_internal(
         &mut self,
         buffer: Entity<Buffer>,
@@ -506,24 +541,69 @@ impl ActionLog {
 
     /// Track a buffer as read by agent, so we can notify the model about user edits.
     pub fn buffer_read(&mut self, buffer: Entity<Buffer>, cx: &mut Context<Self>) {
-        if let Some(linked_action_log) = &mut self.linked_action_log {
-            linked_action_log.update(cx, |log, cx| log.buffer_read(buffer.clone(), cx));
+        self.buffer_read_impl(buffer, true, cx);
+    }
+
+    fn buffer_read_impl(
+        &mut self,
+        buffer: Entity<Buffer>,
+        record_file_read_time: bool,
+        cx: &mut Context<Self>,
+    ) {
+        if let Some(linked_action_log) = &self.linked_action_log {
+            // We don't want to share read times since the other agent hasn't read it necessarily
+            linked_action_log.update(cx, |log, cx| {
+                log.buffer_read_impl(buffer.clone(), false, cx);
+            });
+        }
+        if record_file_read_time {
+            self.update_file_read_time(&buffer, cx);
         }
         self.track_buffer_internal(buffer, false, cx);
     }
 
     /// Mark a buffer as created by agent, so we can refresh it in the context
     pub fn buffer_created(&mut self, buffer: Entity<Buffer>, cx: &mut Context<Self>) {
-        if let Some(linked_action_log) = &mut self.linked_action_log {
-            linked_action_log.update(cx, |log, cx| log.buffer_created(buffer.clone(), cx));
+        self.buffer_created_impl(buffer, true, cx);
+    }
+
+    fn buffer_created_impl(
+        &mut self,
+        buffer: Entity<Buffer>,
+        record_file_read_time: bool,
+        cx: &mut Context<Self>,
+    ) {
+        if let Some(linked_action_log) = &self.linked_action_log {
+            // We don't want to share read times since the other agent hasn't read it necessarily
+            linked_action_log.update(cx, |log, cx| {
+                log.buffer_created_impl(buffer.clone(), false, cx);
+            });
+        }
+        if record_file_read_time {
+            self.update_file_read_time(&buffer, cx);
         }
         self.track_buffer_internal(buffer, true, cx);
     }
 
     /// Mark a buffer as edited by agent, so we can refresh it in the context
     pub fn buffer_edited(&mut self, buffer: Entity<Buffer>, cx: &mut Context<Self>) {
-        if let Some(linked_action_log) = &mut self.linked_action_log {
-            linked_action_log.update(cx, |log, cx| log.buffer_edited(buffer.clone(), cx));
+        self.buffer_edited_impl(buffer, true, cx);
+    }
+
+    fn buffer_edited_impl(
+        &mut self,
+        buffer: Entity<Buffer>,
+        record_file_read_time: bool,
+        cx: &mut Context<Self>,
+    ) {
+        if let Some(linked_action_log) = &self.linked_action_log {
+            // We don't want to share read times since the other agent hasn't read it necessarily
+            linked_action_log.update(cx, |log, cx| {
+                log.buffer_edited_impl(buffer.clone(), false, cx);
+            });
+        }
+        if record_file_read_time {
+            self.update_file_read_time(&buffer, cx);
         }
         let new_version = buffer.read(cx).version();
         let tracked_buffer = self.track_buffer_internal(buffer, false, cx);
@@ -536,6 +616,8 @@ impl ActionLog {
     }
 
     pub fn will_delete_buffer(&mut self, buffer: Entity<Buffer>, cx: &mut Context<Self>) {
+        // Ok to propagate file read time removal to linked action log
+        self.remove_file_read_time(&buffer, cx);
         let has_linked_action_log = self.linked_action_log.is_some();
         let tracked_buffer = self.track_buffer_internal(buffer.clone(), false, cx);
         match tracked_buffer.status {
@@ -2976,6 +3058,196 @@ mod tests {
         );
     }
 
+    #[gpui::test]
+    async fn test_file_read_time_recorded_on_buffer_read(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.executor());
+        fs.insert_tree(path!("/dir"), json!({"file": "hello world"}))
+            .await;
+        let project = Project::test(fs.clone(), [path!("/dir").as_ref()], cx).await;
+        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+
+        let file_path = project
+            .read_with(cx, |project, cx| project.find_project_path("dir/file", cx))
+            .unwrap();
+        let buffer = project
+            .update(cx, |project, cx| project.open_buffer(file_path, cx))
+            .await
+            .unwrap();
+
+        let abs_path = PathBuf::from(path!("/dir/file"));
+        assert!(
+            action_log.read_with(cx, |log, _| log.file_read_time(&abs_path).is_none()),
+            "file_read_time should be None before buffer_read"
+        );
+
+        cx.update(|cx| {
+            action_log.update(cx, |log, cx| log.buffer_read(buffer.clone(), cx));
+        });
+
+        assert!(
+            action_log.read_with(cx, |log, _| log.file_read_time(&abs_path).is_some()),
+            "file_read_time should be recorded after buffer_read"
+        );
+    }
+
+    #[gpui::test]
+    async fn test_file_read_time_recorded_on_buffer_edited(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.executor());
+        fs.insert_tree(path!("/dir"), json!({"file": "hello world"}))
+            .await;
+        let project = Project::test(fs.clone(), [path!("/dir").as_ref()], cx).await;
+        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+
+        let file_path = project
+            .read_with(cx, |project, cx| project.find_project_path("dir/file", cx))
+            .unwrap();
+        let buffer = project
+            .update(cx, |project, cx| project.open_buffer(file_path, cx))
+            .await
+            .unwrap();
+
+        let abs_path = PathBuf::from(path!("/dir/file"));
+        assert!(
+            action_log.read_with(cx, |log, _| log.file_read_time(&abs_path).is_none()),
+            "file_read_time should be None before buffer_edited"
+        );
+
+        cx.update(|cx| {
+            action_log.update(cx, |log, cx| log.buffer_edited(buffer.clone(), cx));
+        });
+
+        assert!(
+            action_log.read_with(cx, |log, _| log.file_read_time(&abs_path).is_some()),
+            "file_read_time should be recorded after buffer_edited"
+        );
+    }
+
+    #[gpui::test]
+    async fn test_file_read_time_recorded_on_buffer_created(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.executor());
+        fs.insert_tree(path!("/dir"), json!({"file": "existing content"}))
+            .await;
+        let project = Project::test(fs.clone(), [path!("/dir").as_ref()], cx).await;
+        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+
+        let file_path = project
+            .read_with(cx, |project, cx| project.find_project_path("dir/file", cx))
+            .unwrap();
+        let buffer = project
+            .update(cx, |project, cx| project.open_buffer(file_path, cx))
+            .await
+            .unwrap();
+
+        let abs_path = PathBuf::from(path!("/dir/file"));
+        assert!(
+            action_log.read_with(cx, |log, _| log.file_read_time(&abs_path).is_none()),
+            "file_read_time should be None before buffer_created"
+        );
+
+        cx.update(|cx| {
+            action_log.update(cx, |log, cx| log.buffer_created(buffer.clone(), cx));
+        });
+
+        assert!(
+            action_log.read_with(cx, |log, _| log.file_read_time(&abs_path).is_some()),
+            "file_read_time should be recorded after buffer_created"
+        );
+    }
+
+    #[gpui::test]
+    async fn test_file_read_time_removed_on_delete(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.executor());
+        fs.insert_tree(path!("/dir"), json!({"file": "hello world"}))
+            .await;
+        let project = Project::test(fs.clone(), [path!("/dir").as_ref()], cx).await;
+        let action_log = cx.new(|_| ActionLog::new(project.clone()));
+
+        let file_path = project
+            .read_with(cx, |project, cx| project.find_project_path("dir/file", cx))
+            .unwrap();
+        let buffer = project
+            .update(cx, |project, cx| project.open_buffer(file_path, cx))
+            .await
+            .unwrap();
+
+        let abs_path = PathBuf::from(path!("/dir/file"));
+
+        cx.update(|cx| {
+            action_log.update(cx, |log, cx| log.buffer_read(buffer.clone(), cx));
+        });
+        assert!(
+            action_log.read_with(cx, |log, _| log.file_read_time(&abs_path).is_some()),
+            "file_read_time should exist after buffer_read"
+        );
+
+        cx.update(|cx| {
+            action_log.update(cx, |log, cx| log.will_delete_buffer(buffer.clone(), cx));
+        });
+        assert!(
+            action_log.read_with(cx, |log, _| log.file_read_time(&abs_path).is_none()),
+            "file_read_time should be removed after will_delete_buffer"
+        );
+    }
+
+    #[gpui::test]
+    async fn test_file_read_time_not_forwarded_to_linked_action_log(cx: &mut TestAppContext) {
+        init_test(cx);
+
+        let fs = FakeFs::new(cx.executor());
+        fs.insert_tree(path!("/dir"), json!({"file": "hello world"}))
+            .await;
+        let project = Project::test(fs.clone(), [path!("/dir").as_ref()], cx).await;
+        let parent_log = cx.new(|_| ActionLog::new(project.clone()));
+        let child_log =
+            cx.new(|_| ActionLog::new(project.clone()).with_linked_action_log(parent_log.clone()));
+
+        let file_path = project
+            .read_with(cx, |project, cx| project.find_project_path("dir/file", cx))
+            .unwrap();
+        let buffer = project
+            .update(cx, |project, cx| project.open_buffer(file_path, cx))
+            .await
+            .unwrap();
+
+        let abs_path = PathBuf::from(path!("/dir/file"));
+
+        cx.update(|cx| {
+            child_log.update(cx, |log, cx| log.buffer_read(buffer.clone(), cx));
+        });
+        assert!(
+            child_log.read_with(cx, |log, _| log.file_read_time(&abs_path).is_some()),
+            "child should record file_read_time on buffer_read"
+        );
+        assert!(
+            parent_log.read_with(cx, |log, _| log.file_read_time(&abs_path).is_none()),
+            "parent should NOT get file_read_time from child's buffer_read"
+        );
+
+        cx.update(|cx| {
+            child_log.update(cx, |log, cx| log.buffer_edited(buffer.clone(), cx));
+        });
+        assert!(
+            parent_log.read_with(cx, |log, _| log.file_read_time(&abs_path).is_none()),
+            "parent should NOT get file_read_time from child's buffer_edited"
+        );
+
+        cx.update(|cx| {
+            child_log.update(cx, |log, cx| log.buffer_created(buffer.clone(), cx));
+        });
+        assert!(
+            parent_log.read_with(cx, |log, _| log.file_read_time(&abs_path).is_none()),
+            "parent should NOT get file_read_time from child's buffer_created"
+        );
+    }
+
     #[derive(Debug, PartialEq)]
     struct HunkStatus {
         range: Range<Point>,
diff --git a/crates/agent/src/tests/edit_file_thread_test.rs b/crates/agent/src/tests/edit_file_thread_test.rs
index 069bf0349299e6f4952f673cbf7607e52d48d9c5..3beb5cb0d51abc55fbf3cf0849ced248a9d1fa5c 100644
--- a/crates/agent/src/tests/edit_file_thread_test.rs
+++ b/crates/agent/src/tests/edit_file_thread_test.rs
@@ -50,9 +50,9 @@ async fn test_edit_file_tool_in_thread_context(cx: &mut TestAppContext) {
         // Add just the tools we need for this test
         let language_registry = project.read(cx).languages().clone();
         thread.add_tool(crate::ReadFileTool::new(
-            cx.weak_entity(),
             project.clone(),
             thread.action_log().clone(),
+            true,
         ));
         thread.add_tool(crate::EditFileTool::new(
             project.clone(),
diff --git a/crates/agent/src/thread.rs b/crates/agent/src/thread.rs
index 99d77456e3822ae12c65c0a419ceea18f13f41e8..616ae414d4d51a384a18460e8339fd07770fa6b9 100644
--- a/crates/agent/src/thread.rs
+++ b/crates/agent/src/thread.rs
@@ -893,8 +893,6 @@ pub struct Thread {
     pub(crate) prompt_capabilities_rx: watch::Receiver<acp::PromptCapabilities>,
     pub(crate) project: Entity<Project>,
     pub(crate) action_log: Entity<ActionLog>,
-    /// Tracks the last time files were read by the agent, to detect external modifications
-    pub(crate) file_read_times: HashMap<PathBuf, fs::MTime>,
     /// True if this thread was imported from a shared thread and can be synced.
     imported: bool,
     /// If this is a subagent thread, contains context about the parent
@@ -1014,7 +1012,6 @@ impl Thread {
             prompt_capabilities_rx,
             project,
             action_log,
-            file_read_times: HashMap::default(),
             imported: false,
             subagent_context: None,
             draft_prompt: None,
@@ -1231,7 +1228,6 @@ impl Thread {
             updated_at: db_thread.updated_at,
             prompt_capabilities_tx,
             prompt_capabilities_rx,
-            file_read_times: HashMap::default(),
             imported: db_thread.imported,
             subagent_context: db_thread.subagent_context,
             draft_prompt: db_thread.draft_prompt,
@@ -1436,6 +1432,9 @@ impl Thread {
         environment: Rc<dyn ThreadEnvironment>,
         cx: &mut Context<Self>,
     ) {
+        // Only update the agent location for the root thread, not for subagents.
+        let update_agent_location = self.parent_thread_id().is_none();
+
         let language_registry = self.project.read(cx).languages().clone();
         self.add_tool(CopyPathTool::new(self.project.clone()));
         self.add_tool(CreateDirectoryTool::new(self.project.clone()));
@@ -1463,9 +1462,9 @@ impl Thread {
         self.add_tool(NowTool);
         self.add_tool(OpenTool::new(self.project.clone()));
         self.add_tool(ReadFileTool::new(
-            cx.weak_entity(),
             self.project.clone(),
             self.action_log.clone(),
+            update_agent_location,
         ));
         self.add_tool(SaveFileTool::new(self.project.clone()));
         self.add_tool(RestoreFileFromDiskTool::new(self.project.clone()));
diff --git a/crates/agent/src/tools/edit_file_tool.rs b/crates/agent/src/tools/edit_file_tool.rs
index d8c380eba326d089b848563cca04557e903ba0f4..29b08ac09db4417123403fd3915b8575791b2a4e 100644
--- a/crates/agent/src/tools/edit_file_tool.rs
+++ b/crates/agent/src/tools/edit_file_tool.rs
@@ -305,13 +305,13 @@ impl AgentTool for EditFileTool {
 
                 // Check if the file has been modified since the agent last read it
                 if let Some(abs_path) = abs_path.as_ref() {
-                    let (last_read_mtime, current_mtime, is_dirty, has_save_tool, has_restore_tool) = self.thread.update(cx, |thread, cx| {
-                        let last_read = thread.file_read_times.get(abs_path).copied();
+                    let last_read_mtime = action_log.read_with(cx, |log, _| log.file_read_time(abs_path));
+                    let (current_mtime, is_dirty, has_save_tool, has_restore_tool) = self.thread.read_with(cx, |thread, cx| {
                         let current = buffer.read(cx).file().and_then(|file| file.disk_state().mtime());
                         let dirty = buffer.read(cx).is_dirty();
                         let has_save = thread.has_tool(SaveFileTool::NAME);
                         let has_restore = thread.has_tool(RestoreFileFromDiskTool::NAME);
-                        (last_read, current, dirty, has_save, has_restore)
+                        (current, dirty, has_save, has_restore)
                     })?;
 
                     // Check for unsaved changes first - these indicate modifications we don't know about
@@ -470,17 +470,6 @@ impl AgentTool for EditFileTool {
                     log.buffer_edited(buffer.clone(), cx);
                 });
 
-                // Update the recorded read time after a successful edit so consecutive edits work
-                if let Some(abs_path) = abs_path.as_ref() {
-                    if let Some(new_mtime) = buffer.read_with(cx, |buffer, _| {
-                        buffer.file().and_then(|file| file.disk_state().mtime())
-                    }) {
-                        self.thread.update(cx, |thread, _| {
-                            thread.file_read_times.insert(abs_path.to_path_buf(), new_mtime);
-                        })?;
-                    }
-                }
-
                 let new_snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot());
                 let (new_text, unified_diff) = cx
                     .background_spawn({
@@ -2212,14 +2201,18 @@ mod tests {
         let action_log = thread.read_with(cx, |thread, _| thread.action_log().clone());
 
         // Initially, file_read_times should be empty
-        let is_empty = thread.read_with(cx, |thread, _| thread.file_read_times.is_empty());
+        let is_empty = action_log.read_with(cx, |action_log, _| {
+            action_log
+                .file_read_time(path!("/root/test.txt").as_ref())
+                .is_none()
+        });
         assert!(is_empty, "file_read_times should start empty");
 
         // Create read tool
         let read_tool = Arc::new(crate::ReadFileTool::new(
-            thread.downgrade(),
             project.clone(),
-            action_log,
+            action_log.clone(),
+            true,
         ));
 
         // Read the file to record the read time
@@ -2238,12 +2231,9 @@ mod tests {
         .unwrap();
 
         // Verify that file_read_times now contains an entry for the file
-        let has_entry = thread.read_with(cx, |thread, _| {
-            thread.file_read_times.len() == 1
-                && thread
-                    .file_read_times
-                    .keys()
-                    .any(|path| path.ends_with("test.txt"))
+        let has_entry = action_log.read_with(cx, |log, _| {
+            log.file_read_time(path!("/root/test.txt").as_ref())
+                .is_some()
         });
         assert!(
             has_entry,
@@ -2265,11 +2255,14 @@ mod tests {
         .await
         .unwrap();
 
-        // Should still have exactly one entry
-        let has_one_entry = thread.read_with(cx, |thread, _| thread.file_read_times.len() == 1);
+        // Should still have an entry after re-reading
+        let has_entry = action_log.read_with(cx, |log, _| {
+            log.file_read_time(path!("/root/test.txt").as_ref())
+                .is_some()
+        });
         assert!(
-            has_one_entry,
-            "file_read_times should still have one entry after re-reading"
+            has_entry,
+            "file_read_times should still have an entry after re-reading"
         );
     }
 
@@ -2309,11 +2302,7 @@ mod tests {
         let languages = project.read_with(cx, |project, _| project.languages().clone());
         let action_log = thread.read_with(cx, |thread, _| thread.action_log().clone());
 
-        let read_tool = Arc::new(crate::ReadFileTool::new(
-            thread.downgrade(),
-            project.clone(),
-            action_log,
-        ));
+        let read_tool = Arc::new(crate::ReadFileTool::new(project.clone(), action_log, true));
         let edit_tool = Arc::new(EditFileTool::new(
             project.clone(),
             thread.downgrade(),
@@ -2423,11 +2412,7 @@ mod tests {
         let languages = project.read_with(cx, |project, _| project.languages().clone());
         let action_log = thread.read_with(cx, |thread, _| thread.action_log().clone());
 
-        let read_tool = Arc::new(crate::ReadFileTool::new(
-            thread.downgrade(),
-            project.clone(),
-            action_log,
-        ));
+        let read_tool = Arc::new(crate::ReadFileTool::new(project.clone(), action_log, true));
         let edit_tool = Arc::new(EditFileTool::new(
             project.clone(),
             thread.downgrade(),
@@ -2534,11 +2519,7 @@ mod tests {
         let languages = project.read_with(cx, |project, _| project.languages().clone());
         let action_log = thread.read_with(cx, |thread, _| thread.action_log().clone());
 
-        let read_tool = Arc::new(crate::ReadFileTool::new(
-            thread.downgrade(),
-            project.clone(),
-            action_log,
-        ));
+        let read_tool = Arc::new(crate::ReadFileTool::new(project.clone(), action_log, true));
         let edit_tool = Arc::new(EditFileTool::new(
             project.clone(),
             thread.downgrade(),
diff --git a/crates/agent/src/tools/read_file_tool.rs b/crates/agent/src/tools/read_file_tool.rs
index 8cfc16ddf6174a190ffe7cc11921dc204b05b79d..f7a75bc63a1c461b65c3a2e6f74f2c70e0ca15f6 100644
--- a/crates/agent/src/tools/read_file_tool.rs
+++ b/crates/agent/src/tools/read_file_tool.rs
@@ -2,7 +2,7 @@ use action_log::ActionLog;
 use agent_client_protocol::{self as acp, ToolCallUpdateFields};
 use anyhow::{Context as _, Result, anyhow};
 use futures::FutureExt as _;
-use gpui::{App, Entity, SharedString, Task, WeakEntity};
+use gpui::{App, Entity, SharedString, Task};
 use indoc::formatdoc;
 use language::Point;
 use language_model::{LanguageModelImage, LanguageModelToolResultContent};
@@ -21,7 +21,7 @@ use super::tool_permissions::{
     ResolvedProjectPath, authorize_symlink_access, canonicalize_worktree_roots,
     resolve_project_path,
 };
-use crate::{AgentTool, Thread, ToolCallEventStream, ToolInput, outline};
+use crate::{AgentTool, ToolCallEventStream, ToolInput, outline};
 
 /// Reads the content of the given file in the project.
 ///
@@ -56,21 +56,21 @@ pub struct ReadFileToolInput {
 }
 
 pub struct ReadFileTool {
-    thread: WeakEntity<Thread>,
     project: Entity<Project>,
     action_log: Entity<ActionLog>,
+    update_agent_location: bool,
 }
 
 impl ReadFileTool {
     pub fn new(
-        thread: WeakEntity<Thread>,
         project: Entity<Project>,
         action_log: Entity<ActionLog>,
+        update_agent_location: bool,
     ) -> Self {
         Self {
-            thread,
             project,
             action_log,
+            update_agent_location,
         }
     }
 }
@@ -119,7 +119,6 @@ impl AgentTool for ReadFileTool {
         cx: &mut App,
     ) -> Task<Result<LanguageModelToolResultContent, LanguageModelToolResultContent>> {
         let project = self.project.clone();
-        let thread = self.thread.clone();
         let action_log = self.action_log.clone();
         cx.spawn(async move |cx| {
             let input = input
@@ -257,20 +256,6 @@ impl AgentTool for ReadFileTool {
                 return Err(tool_content_err(format!("{file_path} not found")));
             }
 
-            // Record the file read time and mtime
-            if let Some(mtime) = buffer.read_with(cx, |buffer, _| {
-                buffer.file().and_then(|file| file.disk_state().mtime())
-            }) {
-                thread
-                    .update(cx, |thread, _| {
-                        thread.file_read_times.insert(abs_path.to_path_buf(), mtime);
-                    })
-                    .ok();
-            }
-
-
-            let update_agent_location = self.thread.read_with(cx, |thread, _cx| !thread.is_subagent()).unwrap_or_default();
-
             let mut anchor = None;
 
             // Check if specific line ranges are provided
@@ -330,7 +315,7 @@ impl AgentTool for ReadFileTool {
             };
 
             project.update(cx, |project, cx| {
-                if update_agent_location {
+                if self.update_agent_location {
                     project.set_agent_location(
                         Some(AgentLocation {
                             buffer: buffer.downgrade(),
@@ -362,13 +347,10 @@ impl AgentTool for ReadFileTool {
 #[cfg(test)]
 mod test {
     use super::*;
-    use crate::{ContextServerRegistry, Templates, Thread};
     use agent_client_protocol as acp;
     use fs::Fs as _;
     use gpui::{AppContext, TestAppContext, UpdateGlobal as _};
-    use language_model::fake_provider::FakeLanguageModel;
     use project::{FakeFs, Project};
-    use prompt_store::ProjectContext;
     use serde_json::json;
     use settings::SettingsStore;
     use std::path::PathBuf;
@@ -383,20 +365,7 @@ mod test {
         fs.insert_tree(path!("/root"), json!({})).await;
         let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
         let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let context_server_registry =
-            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-        let model = Arc::new(FakeLanguageModel::default());
-        let thread = cx.new(|cx| {
-            Thread::new(
-                project.clone(),
-                cx.new(|_cx| ProjectContext::default()),
-                context_server_registry,
-                Templates::new(),
-                Some(model),
-                cx,
-            )
-        });
-        let tool = Arc::new(ReadFileTool::new(thread.downgrade(), project, action_log));
+        let tool = Arc::new(ReadFileTool::new(project, action_log, true));
         let (event_stream, _) = ToolCallEventStream::test();
 
         let result = cx
@@ -429,20 +398,7 @@ mod test {
         .await;
         let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
         let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let context_server_registry =
-            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-        let model = Arc::new(FakeLanguageModel::default());
-        let thread = cx.new(|cx| {
-            Thread::new(
-                project.clone(),
-                cx.new(|_cx| ProjectContext::default()),
-                context_server_registry,
-                Templates::new(),
-                Some(model),
-                cx,
-            )
-        });
-        let tool = Arc::new(ReadFileTool::new(thread.downgrade(), project, action_log));
+        let tool = Arc::new(ReadFileTool::new(project, action_log, true));
         let result = cx
             .update(|cx| {
                 let input = ReadFileToolInput {
@@ -476,20 +432,7 @@ mod test {
         let language_registry = project.read_with(cx, |project, _| project.languages().clone());
         language_registry.add(language::rust_lang());
         let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let context_server_registry =
-            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-        let model = Arc::new(FakeLanguageModel::default());
-        let thread = cx.new(|cx| {
-            Thread::new(
-                project.clone(),
-                cx.new(|_cx| ProjectContext::default()),
-                context_server_registry,
-                Templates::new(),
-                Some(model),
-                cx,
-            )
-        });
-        let tool = Arc::new(ReadFileTool::new(thread.downgrade(), project, action_log));
+        let tool = Arc::new(ReadFileTool::new(project, action_log, true));
         let result = cx
             .update(|cx| {
                 let input = ReadFileToolInput {
@@ -569,20 +512,7 @@ mod test {
         let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
 
         let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let context_server_registry =
-            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-        let model = Arc::new(FakeLanguageModel::default());
-        let thread = cx.new(|cx| {
-            Thread::new(
-                project.clone(),
-                cx.new(|_cx| ProjectContext::default()),
-                context_server_registry,
-                Templates::new(),
-                Some(model),
-                cx,
-            )
-        });
-        let tool = Arc::new(ReadFileTool::new(thread.downgrade(), project, action_log));
+        let tool = Arc::new(ReadFileTool::new(project, action_log, true));
         let result = cx
             .update(|cx| {
                 let input = ReadFileToolInput {
@@ -614,20 +544,7 @@ mod test {
         .await;
         let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
         let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let context_server_registry =
-            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-        let model = Arc::new(FakeLanguageModel::default());
-        let thread = cx.new(|cx| {
-            Thread::new(
-                project.clone(),
-                cx.new(|_cx| ProjectContext::default()),
-                context_server_registry,
-                Templates::new(),
-                Some(model),
-                cx,
-            )
-        });
-        let tool = Arc::new(ReadFileTool::new(thread.downgrade(), project, action_log));
+        let tool = Arc::new(ReadFileTool::new(project, action_log, true));
 
         // start_line of 0 should be treated as 1
         let result = cx
@@ -757,20 +674,7 @@ mod test {
 
         let project = Project::test(fs.clone(), [path!("/project_root").as_ref()], cx).await;
         let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let context_server_registry =
-            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-        let model = Arc::new(FakeLanguageModel::default());
-        let thread = cx.new(|cx| {
-            Thread::new(
-                project.clone(),
-                cx.new(|_cx| ProjectContext::default()),
-                context_server_registry,
-                Templates::new(),
-                Some(model),
-                cx,
-            )
-        });
-        let tool = Arc::new(ReadFileTool::new(thread.downgrade(), project, action_log));
+        let tool = Arc::new(ReadFileTool::new(project, action_log, true));
 
         // Reading a file outside the project worktree should fail
         let result = cx
@@ -965,20 +869,7 @@ mod test {
 
         let project = Project::test(fs.clone(), [path!("/root").as_ref()], cx).await;
         let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let context_server_registry =
-            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-        let model = Arc::new(FakeLanguageModel::default());
-        let thread = cx.new(|cx| {
-            Thread::new(
-                project.clone(),
-                cx.new(|_cx| ProjectContext::default()),
-                context_server_registry,
-                Templates::new(),
-                Some(model),
-                cx,
-            )
-        });
-        let tool = Arc::new(ReadFileTool::new(thread.downgrade(), project, action_log));
+        let tool = Arc::new(ReadFileTool::new(project, action_log, true));
 
         let (event_stream, mut event_rx) = ToolCallEventStream::test();
         let read_task = cx.update(|cx| {
@@ -1084,24 +975,7 @@ mod test {
         .await;
 
         let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let context_server_registry =
-            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-        let model = Arc::new(FakeLanguageModel::default());
-        let thread = cx.new(|cx| {
-            Thread::new(
-                project.clone(),
-                cx.new(|_cx| ProjectContext::default()),
-                context_server_registry,
-                Templates::new(),
-                Some(model),
-                cx,
-            )
-        });
-        let tool = Arc::new(ReadFileTool::new(
-            thread.downgrade(),
-            project.clone(),
-            action_log.clone(),
-        ));
+        let tool = Arc::new(ReadFileTool::new(project.clone(), action_log.clone(), true));
 
         // Test reading allowed files in worktree1
         let result = cx
@@ -1288,24 +1162,7 @@ mod test {
         cx.executor().run_until_parked();
 
         let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let context_server_registry =
-            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-        let model = Arc::new(FakeLanguageModel::default());
-        let thread = cx.new(|cx| {
-            Thread::new(
-                project.clone(),
-                cx.new(|_cx| ProjectContext::default()),
-                context_server_registry,
-                Templates::new(),
-                Some(model),
-                cx,
-            )
-        });
-        let tool = Arc::new(ReadFileTool::new(
-            thread.downgrade(),
-            project.clone(),
-            action_log,
-        ));
+        let tool = Arc::new(ReadFileTool::new(project.clone(), action_log, true));
 
         let (event_stream, mut event_rx) = ToolCallEventStream::test();
         let task = cx.update(|cx| {
@@ -1364,24 +1221,7 @@ mod test {
         cx.executor().run_until_parked();
 
         let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let context_server_registry =
-            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-        let model = Arc::new(FakeLanguageModel::default());
-        let thread = cx.new(|cx| {
-            Thread::new(
-                project.clone(),
-                cx.new(|_cx| ProjectContext::default()),
-                context_server_registry,
-                Templates::new(),
-                Some(model),
-                cx,
-            )
-        });
-        let tool = Arc::new(ReadFileTool::new(
-            thread.downgrade(),
-            project.clone(),
-            action_log,
-        ));
+        let tool = Arc::new(ReadFileTool::new(project.clone(), action_log, true));
 
         let (event_stream, mut event_rx) = ToolCallEventStream::test();
         let task = cx.update(|cx| {
@@ -1444,24 +1284,7 @@ mod test {
         cx.executor().run_until_parked();
 
         let action_log = cx.new(|_| ActionLog::new(project.clone()));
-        let context_server_registry =
-            cx.new(|cx| ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-        let model = Arc::new(FakeLanguageModel::default());
-        let thread = cx.new(|cx| {
-            Thread::new(
-                project.clone(),
-                cx.new(|_cx| ProjectContext::default()),
-                context_server_registry,
-                Templates::new(),
-                Some(model),
-                cx,
-            )
-        });
-        let tool = Arc::new(ReadFileTool::new(
-            thread.downgrade(),
-            project.clone(),
-            action_log,
-        ));
+        let tool = Arc::new(ReadFileTool::new(project.clone(), action_log, true));
 
         let (event_stream, mut event_rx) = ToolCallEventStream::test();
         let result = cx
diff --git a/crates/agent/src/tools/streaming_edit_file_tool.rs b/crates/agent/src/tools/streaming_edit_file_tool.rs
index 7e023d7d7e00c2eb13ea78467776816b13151796..62b96d569f34d65889abee6be803674dfa42e709 100644
--- a/crates/agent/src/tools/streaming_edit_file_tool.rs
+++ b/crates/agent/src/tools/streaming_edit_file_tool.rs
@@ -483,7 +483,12 @@ impl EditSession {
             .await
             .map_err(|e| StreamingEditFileToolOutput::error(e.to_string()))?;
 
-        ensure_buffer_saved(&buffer, &abs_path, tool, cx)?;
+        let action_log = tool
+            .thread
+            .read_with(cx, |thread, _cx| thread.action_log().clone())
+            .ok();
+
+        ensure_buffer_saved(&buffer, &abs_path, tool, action_log.as_ref(), cx)?;
 
         let diff = cx.new(|cx| Diff::new(buffer.clone(), cx));
         event_stream.update_diff(diff.clone());
@@ -495,13 +500,9 @@ impl EditSession {
             }
         }) as Box<dyn FnOnce()>);
 
-        tool.thread
-            .update(cx, |thread, cx| {
-                thread
-                    .action_log()
-                    .update(cx, |log, cx| log.buffer_read(buffer.clone(), cx))
-            })
-            .ok();
+        if let Some(action_log) = &action_log {
+            action_log.update(cx, |log, cx| log.buffer_read(buffer.clone(), cx));
+        }
 
         let old_snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot());
         let old_text = cx
@@ -637,18 +638,6 @@ impl EditSession {
             log.buffer_edited(buffer.clone(), cx);
         });
 
-        if let Some(new_mtime) = buffer.read_with(cx, |buffer, _| {
-            buffer.file().and_then(|file| file.disk_state().mtime())
-        }) {
-            tool.thread
-                .update(cx, |thread, _| {
-                    thread
-                        .file_read_times
-                        .insert(abs_path.to_path_buf(), new_mtime);
-                })
-                .map_err(|e| StreamingEditFileToolOutput::error(e.to_string()))?;
-        }
-
         let new_snapshot = buffer.read_with(cx, |buffer, _cx| buffer.snapshot());
         let (new_text, unified_diff) = cx
             .background_spawn({
@@ -1018,10 +1007,12 @@ fn ensure_buffer_saved(
     buffer: &Entity<Buffer>,
     abs_path: &PathBuf,
     tool: &StreamingEditFileTool,
+    action_log: Option<&Entity<ActionLog>>,
     cx: &mut AsyncApp,
 ) -> Result<(), StreamingEditFileToolOutput> {
-    let check_result = tool.thread.update(cx, |thread, cx| {
-        let last_read = thread.file_read_times.get(abs_path).copied();
+    let last_read_mtime =
+        action_log.and_then(|log| log.read_with(cx, |log, _| log.file_read_time(abs_path)));
+    let check_result = tool.thread.read_with(cx, |thread, cx| {
         let current = buffer
             .read(cx)
             .file()
@@ -1029,12 +1020,10 @@ fn ensure_buffer_saved(
         let dirty = buffer.read(cx).is_dirty();
         let has_save = thread.has_tool(SaveFileTool::NAME);
         let has_restore = thread.has_tool(RestoreFileFromDiskTool::NAME);
-        (last_read, current, dirty, has_save, has_restore)
+        (current, dirty, has_save, has_restore)
     });
 
-    let Ok((last_read_mtime, current_mtime, is_dirty, has_save_tool, has_restore_tool)) =
-        check_result
-    else {
+    let Ok((current_mtime, is_dirty, has_save_tool, has_restore_tool)) = check_result else {
         return Ok(());
     };
 
@@ -4006,11 +3995,7 @@ mod tests {
         let languages = project.read_with(cx, |project, _| project.languages().clone());
         let action_log = thread.read_with(cx, |thread, _| thread.action_log().clone());
 
-        let read_tool = Arc::new(crate::ReadFileTool::new(
-            thread.downgrade(),
-            project.clone(),
-            action_log,
-        ));
+        let read_tool = Arc::new(crate::ReadFileTool::new(project.clone(), action_log, true));
         let edit_tool = Arc::new(StreamingEditFileTool::new(
             project.clone(),
             thread.downgrade(),
@@ -4112,11 +4097,7 @@ mod tests {
         let languages = project.read_with(cx, |project, _| project.languages().clone());
         let action_log = thread.read_with(cx, |thread, _| thread.action_log().clone());
 
-        let read_tool = Arc::new(crate::ReadFileTool::new(
-            thread.downgrade(),
-            project.clone(),
-            action_log,
-        ));
+        let read_tool = Arc::new(crate::ReadFileTool::new(project.clone(), action_log, true));
         let edit_tool = Arc::new(StreamingEditFileTool::new(
             project.clone(),
             thread.downgrade(),
@@ -4225,11 +4206,7 @@ mod tests {
         let languages = project.read_with(cx, |project, _| project.languages().clone());
         let action_log = thread.read_with(cx, |thread, _| thread.action_log().clone());
 
-        let read_tool = Arc::new(crate::ReadFileTool::new(
-            thread.downgrade(),
-            project.clone(),
-            action_log,
-        ));
+        let read_tool = Arc::new(crate::ReadFileTool::new(project.clone(), action_log, true));
         let edit_tool = Arc::new(StreamingEditFileTool::new(
             project.clone(),
             thread.downgrade(),
diff --git a/crates/remote_server/src/remote_editing_tests.rs b/crates/remote_server/src/remote_editing_tests.rs
index 778f7292d2a032df6995169852deeecee6fa76a7..9b9fe9948ace530d7e55d2843952ca5c9efb3749 100644
--- a/crates/remote_server/src/remote_editing_tests.rs
+++ b/crates/remote_server/src/remote_editing_tests.rs
@@ -2,15 +2,12 @@
 /// The tests in this file assume that server_cx is running on Windows too.
 /// We neead to find a way to test Windows-Non-Windows interactions.
 use crate::headless_project::HeadlessProject;
-use agent::{
-    AgentTool, ReadFileTool, ReadFileToolInput, Templates, Thread, ToolCallEventStream, ToolInput,
-};
+use agent::{AgentTool, ReadFileTool, ReadFileToolInput, ToolCallEventStream, ToolInput};
 use client::{Client, UserStore};
 use clock::FakeSystemClock;
 use collections::{HashMap, HashSet};
 use git::repository::DiffType;
-use language_model::{LanguageModelToolResultContent, fake_provider::FakeLanguageModel};
-use prompt_store::ProjectContext;
+use language_model::LanguageModelToolResultContent;
 
 use extension::ExtensionHostProxy;
 use fs::{FakeFs, Fs};
@@ -2065,27 +2062,12 @@ async fn test_remote_agent_fs_tool_calls(cx: &mut TestAppContext, server_cx: &mu
 
     let action_log = cx.new(|_| action_log::ActionLog::new(project.clone()));
 
-    // Create a minimal thread for the ReadFileTool
-    let context_server_registry =
-        cx.new(|cx| agent::ContextServerRegistry::new(project.read(cx).context_server_store(), cx));
-    let model = Arc::new(FakeLanguageModel::default());
-    let thread = cx.new(|cx| {
-        Thread::new(
-            project.clone(),
-            cx.new(|_cx| ProjectContext::default()),
-            context_server_registry,
-            Templates::new(),
-            Some(model),
-            cx,
-        )
-    });
-
     let input = ReadFileToolInput {
         path: "project/b.txt".into(),
         start_line: None,
         end_line: None,
     };
-    let read_tool = Arc::new(ReadFileTool::new(thread.downgrade(), project, action_log));
+    let read_tool = Arc::new(ReadFileTool::new(project, action_log, true));
     let (event_stream, _) = ToolCallEventStream::test();
 
     let exists_result = cx.update(|cx| {
diff --git a/crates/zed/src/visual_test_runner.rs b/crates/zed/src/visual_test_runner.rs
index df673f0b4869af8fa55b0e83af10553df8afb4d8..8f005fa68b6accb5cf5686157bbb065e33bb1b0c 100644
--- a/crates/zed/src/visual_test_runner.rs
+++ b/crates/zed/src/visual_test_runner.rs
@@ -2032,32 +2032,9 @@ fn run_agent_thread_view_test(
 
     // Create the necessary entities for the ReadFileTool
     let action_log = cx.update(|cx| cx.new(|_| action_log::ActionLog::new(project.clone())));
-    let context_server_registry = cx.update(|cx| {
-        cx.new(|cx| agent::ContextServerRegistry::new(project.read(cx).context_server_store(), cx))
-    });
-    let fake_model = Arc::new(language_model::fake_provider::FakeLanguageModel::default());
-    let project_context = cx.update(|cx| cx.new(|_| prompt_store::ProjectContext::default()));
-
-    // Create the agent Thread
-    let thread = cx.update(|cx| {
-        cx.new(|cx| {
-            agent::Thread::new(
-                project.clone(),
-                project_context,
-                context_server_registry,
-                agent::Templates::new(),
-                Some(fake_model),
-                cx,
-            )
-        })
-    });
 
     // Create the ReadFileTool
-    let tool = Arc::new(agent::ReadFileTool::new(
-        thread.downgrade(),
-        project.clone(),
-        action_log,
-    ));
+    let tool = Arc::new(agent::ReadFileTool::new(project.clone(), action_log, true));
 
     // Create a test event stream to capture tool output
     let (event_stream, mut event_receiver) = agent::ToolCallEventStream::test();