diff --git a/packages/app/e2e/regression/command-palette.spec.ts b/packages/app/e2e/regression/command-palette.spec.ts
index eebaac745d5..68533559af9 100644
--- a/packages/app/e2e/regression/command-palette.spec.ts
+++ b/packages/app/e2e/regression/command-palette.spec.ts
@@ -146,31 +146,39 @@ test("Search commands lists only commands and runs the chosen one", async ({ pag
   await expect(page).toHaveURL("/settings")
 })
 
-test("Search projects opens a new session's project picker from a session and from Home", async ({ page }) => {
+test("Search projects opens the full location picker from a session, draft, and Home", async ({ page }) => {
   const editor = page.locator('[data-component="composer-editor"]')
   const picker = page.getByRole("combobox", { name: "Search projects", exact: true })
-  const { dialog, input } = await openCommandPalette(page)
-  await input.fill("search projects")
-  await dialog.getByRole("option", { name: /^Search projects/ }).click()
+  await openPaletteWorkspace(page)
+  const shortcut = (await page.evaluate(() => navigator.platform.includes("Mac"))) ? "Meta+Shift+O" : "Control+Shift+O"
+  await page.keyboard.press(shortcut)
   await expect(page).toHaveURL(/\/new-session\?draftId=.+$/)
   await expect(picker).toBeFocused()
-  // Just the projects: no "Add project", no worktrees and no key hints.
   const projects = page.getByRole("dialog").getByRole("option")
-  await expect(projects).toHaveCount(1)
-  await expect(projects).toHaveText(/command-palette/)
-  await expect(projects.getByRole("button", { name: "Worktrees", exact: true })).toHaveCount(0)
-  await expect(page.locator(".new-session-location-hints")).toHaveCount(0)
+  await expect(projects.filter({ hasText: "Add project" })).toBeVisible()
+  await picker.fill("command-palette")
+  await expect(projects).toHaveCount(2)
+  await expect(projects.getByRole("button", { name: "Worktrees", exact: true })).toBeVisible()
+  await picker.press("ArrowRight")
+  await expect(page.getByRole("option", { name: /^New worktree/ })).toBeVisible()
+  await page.getByRole("combobox").press("Escape")
   await picker.press("Escape")
   await expect(picker).toHaveCount(0)
   await expect(editor).toBeFocused()
 
+  await page.keyboard.press(shortcut)
+  await expect(picker).toBeFocused()
+  await expect(projects.filter({ hasText: "Add project" })).toBeVisible()
+  await picker.press("Escape")
+
   await page.goto("/")
   await expect(
     page.getByRole("region", { name: "Recent sessions" }).getByRole("button", { name: /Palette fixture session/ }),
   ).toBeEnabled()
-  await page.keyboard.press("ControlOrMeta+Shift+O")
+  await page.keyboard.press(shortcut)
   await expect(page).toHaveURL(/\/new-session\?draftId=.+$/)
   await expect(picker).toBeFocused()
+  await expect(projects.filter({ hasText: "Add project" })).toBeVisible()
 })
 
 declare global {
diff --git a/packages/app/e2e/regression/home.spec.ts b/packages/app/e2e/regression/home.spec.ts
index c4e5d0ce19e..3ef6662e0bc 100644
--- a/packages/app/e2e/regression/home.spec.ts
+++ b/packages/app/e2e/regression/home.spec.ts
@@ -179,7 +179,7 @@ test("Home lists the used server projects by recent activity, hides them, and li
   await page.getByRole("menuitem", { name: "Close", exact: true }).click()
   await expect(view.rows).toHaveText(["oldest"])
 
-  // The location dialog lists every server project once: used ones first, then the rest, each by recency.
+  // Closing a project moves it out of the added list, but it remains discoverable in the server inventory.
   await page
     .locator('[data-component="home-project-row"]')
     .filter({ hasText: "oldest" })
@@ -188,13 +188,9 @@ test("Home lists the used server projects by recent activity, hides them, and li
     .click()
   await newSessionLocation(page).click()
   const options = page.getByRole("dialog").getByRole("option")
-  await expect(options.locator(".command-palette-title")).toHaveText([
-    "Add project",
-    "oldest",
-    "fresh",
-    "unused",
-    "recent",
-  ])
+  await expect(options.locator(".command-palette-title")).toHaveText(["oldest", "Other projects", "Add project"])
+  await options.filter({ hasText: "Other projects" }).click()
+  await expect(options.locator(".command-palette-title")).toHaveText(["fresh", "unused", "recent"])
   await options.filter({ hasText: "C:/OpenCode/recent" }).click()
   await expect(newSessionLocation(page)).toContainText("recent")
   await page.getByRole("button", { name: "Home", exact: true }).click()
diff --git a/packages/app/e2e/regression/new-session.spec.ts b/packages/app/e2e/regression/new-session.spec.ts
index 03bb8f613eb..ce0622e289c 100644
--- a/packages/app/e2e/regression/new-session.spec.ts
+++ b/packages/app/e2e/regression/new-session.spec.ts
@@ -51,6 +51,29 @@ test("the new session screen does not show session details", async ({ page }) =>
   await expect(page.getByRole("button", { name: "Session details", exact: true })).toHaveCount(0)
 })
 
+for (const row of [
+  {
+    name: "POSIX",
+    directory: "/Users/alice/.local/share/opencode/worktree/123456/my-project",
+    pattern: /^\/Users\/.*…\/123456\/my-project$/,
+  },
+  {
+    name: "Windows",
+    directory: "C:\\Users\\alice\\Documents\\opencode\\worktree\\123456\\my-project",
+    pattern: /^C:\\.*…\\123456\\my-project$/,
+  },
+]) {
+  test(`the location path keeps its start and final two segments on ${row.name}`, async ({ page }) => {
+    await page.setViewportSize({ width: 600, height: 700 })
+    await openDraft(page, { name: "A project with a long name", directory: row.directory })
+    const path = page.locator('[data-slot="new-session-location-path"]')
+    await expect(path).toHaveText(row.pattern)
+    await expect.poll(() => path.evaluate((el) => el.scrollWidth <= el.clientWidth)).toBe(true)
+    await path.hover()
+    await expect(page.getByRole("tooltip")).toHaveText(row.directory)
+  })
+}
+
 test("the combined location picker shows checkout branches and chooses the base for a new worktree", async ({
   page,
 }) => {
@@ -60,7 +83,7 @@ test("the combined location picker shows checkout branches and chooses the base
 
   const view = await openWorktreeDraft(page, {
     name: "BranchContext",
-    project: { name: "OpenCode" },
+    project: { name: "Custom project" },
     vcs: (directory) => ({
       current: directory === existing ? "model-picker-dialog" : "timeline-quotes",
       default: "main",
@@ -126,7 +149,12 @@ test("the combined location picker shows checkout branches and chooses the base
   await select(/^stellar-orchid /)
   await expect(screen.getByText("model-picker-dialog", { exact: true })).toBeVisible()
   await expect(screen.getByRole("button", { name: /from / })).toHaveCount(0)
-  await select(/^BranchContext /)
+  await newSessionLocation(page).click()
+  await page.getByRole("combobox", { name: "Search projects", exact: true }).press("ArrowRight")
+  await page.getByRole("combobox", { name: "Search worktrees", exact: true }).fill("Custom project")
+  await expect(page.getByRole("option")).toHaveCount(1)
+  await page.getByRole("option", { name: /Custom project C:\/OpenCode\/BranchContext/ }).click()
+  await expect(view.editor).toBeFocused()
   await expect(screen.getByText("timeline-quotes", { exact: true })).toBeVisible()
   await expect(screen.getByRole("button", { name: /from / })).toHaveCount(0)
   await select(/^New worktree/)
@@ -649,9 +677,7 @@ test("executes a selected slash command after creating its worktree", async ({ p
   expect(mock.prompts).toEqual([])
 })
 
-test("the location dialog lists every ready server's projects in one list and tags the remote ones", async ({
-  page,
-}) => {
+test("the location dialog separates added projects from server projects and tags the remote ones", async ({ page }) => {
   const apollo = "http://apollo.test:4096"
 
   const entry = (id: string, directory: string, active: number) =>
@@ -698,36 +724,33 @@ test("the location dialog lists every ready server's projects in one list and ta
   await expect(search).toBeFocused()
   const options = dialog.getByRole("option")
   const add = options.filter({ hasText: "Add project" })
+  await expect(add.locator('[data-component="keybind-v2"]')).toContainText("O")
   const rows = options.filter({ has: page.locator(".new-session-location-name") })
   const names = options.locator(".new-session-location-name")
   const paths = options.locator(".command-palette-description")
-  const chip = dialog.getByRole("button", { name: "Back to projects", exact: true })
-  const heading = dialog.getByText("Projects", { exact: true })
-  const addButton = dialog.getByRole("button", { name: "Add project", exact: true })
-  // Used projects first, then the rest, each by recent activity across servers; only remote ones carry a tag.
-  await expect(names).toHaveText(["opencodeapollo", "opencode", "console", "sstapollo"])
-  await expect(paths).toHaveText(["/home/dax/opencode", "C:/work/opencode", "C:/work/console", "/home/dax/sst"])
-  // "Add project" is the first row of the scrolling list, above the Projects heading, yet the first project is still
-  // the opening row, not the draft's current project (the second row).
-  await expect(dialog.locator("[data-scrollable]").getByRole("option").first()).toHaveText("Add project")
-  await expect(rows).toHaveCount(4)
-  await expect
-    .poll(async () => {
-      const row = await add.boundingBox()
-      const title = await heading.boundingBox()
-
-      return row && title ? row.y + row.height <= title.y : false
-    })
-    .toBe(true)
-  await expect(rows.nth(0)).toHaveAttribute("aria-selected", "true")
-  // The search field also ends with an "Add project" button, next in the Tab order.
-  await page.keyboard.press("Tab")
-  await expect(addButton).toBeFocused()
-  await search.focus()
+  const back = dialog.getByRole("button", { name: "Back to projects", exact: true })
+  // Only the projects added to this client open expanded; other ready-server projects remain discoverable.
+  await expect(names).toHaveText(["opencodeapollo", "opencode"])
+  await expect(paths).toHaveText(["/home/dax/opencode", "C:/work/opencode"])
+  const others = options.filter({ hasText: "Other projects" })
+  await expect(others).toBeVisible()
+  await expect(others.locator(".new-session-location-count")).toHaveText("2")
+  await expect(dialog.locator(".command-palette-group-title")).toHaveCount(0)
+  await expect(options.locator(".command-palette-title")).toHaveText([
+    "opencode",
+    "opencode",
+    "Other projects",
+    "Add project",
+  ])
+  // It opens on the first row, not on the draft's current project (the second row).
+  await expect(options.nth(0)).toHaveAttribute("aria-selected", "true")
 
   // The picker shares the palette's full-width search, compact rows, and single-line titles.
-  await expect(rows.nth(0)).toHaveCSS("height", "36px")
-  await expect(rows.nth(0)).toHaveCSS("display", "flex")
+  await expect(options.nth(0)).toHaveCSS("height", "28px")
+  await expect(dialog.locator(".palette-menu-search [data-component='text-input-v2']")).toHaveCSS("height", "28px")
+  await expect(dialog.locator(".new-session-location-hints")).toHaveCount(0)
+  await expect(dialog.locator("..")).toHaveCSS("width", "480px")
+  await expect(options.nth(0)).toHaveCSS("display", "flex")
   await expect(names.nth(0).locator(".command-palette-title")).toHaveCSS("font-size", "13px")
   await expect(names.nth(0).locator(".command-palette-title")).toHaveCSS("white-space", "nowrap")
   await expect(rows.nth(0)).not.toHaveCSS("background-color", "rgba(0, 0, 0, 0)")
@@ -746,65 +769,99 @@ test("the location dialog lists every ready server's projects in one list and ta
     })
     .toBeLessThanOrEqual(1)
 
-  // Searching narrows the projects and keeps "Add project" first; with no match it is the active row.
+  await others.click()
+  await expect(names).toHaveText(["console", "sstapollo"])
+  await expect(back).toHaveText("Other projects")
+  await search.fill("no-project-matches")
+  await expect(options).toHaveCount(0)
+  await expect(back).toBeVisible()
+  await search.fill("")
+  await expect(names).toHaveText(["console", "sstapollo"])
+  await search.press("ArrowLeft")
+  await expect(names).toHaveText(["opencodeapollo", "opencode"])
+  await search.press("ArrowRight")
+  await expect(names).toHaveText(["console", "sstapollo"])
+  await search.press("Backspace")
+  await search.press("Enter")
+  await expect(names).toHaveText(["console", "sstapollo"])
+  await search.press("Escape")
+  await expect(names).toHaveText(["opencodeapollo", "opencode"])
+  await others.click()
+  await back.click()
+  await expect(names).toHaveText(["opencodeapollo", "opencode"])
+
   await search.fill("apollo")
   await expect(names).toHaveText(["opencodeapollo", "sstapollo"])
-  await expect(options.first()).toHaveText("Add project")
-  await search.fill("nothing matches")
-  await expect(options).toHaveText(["Add project"])
-  await expect(add).toHaveAttribute("aria-selected", "true")
-  await expect(heading).toHaveCount(0)
+  await expect(dialog.locator(".command-palette-group-title")).toHaveText("Other projects")
 
-  // The worktree step keeps the server's tag beside the project.
+  // The worktree step keeps the project's avatar and server tag in its main-checkout row.
   await search.fill("opencode")
   await expect(paths).toHaveText(["/home/dax/opencode", "C:/work/opencode"])
   await expect(rows.nth(0)).toHaveAttribute("aria-selected", "true")
   await page.keyboard.press("ArrowRight")
   // The worktree step has no "Add project".
   await expect(add).toHaveCount(0)
-  await expect(addButton).toHaveCount(0)
-  await expect(chip).toContainText("opencode")
-  await expect(chip.locator('[data-component="tag"]')).toHaveText("apollo")
+  await expect(back).toHaveText("Run session in")
+  await expect(options.nth(0).locator('[data-component="tag"]')).toHaveText("apollo")
   await expect(options.locator(".command-palette-title")).toHaveText(["opencode", "New worktree", "opencode-beta"])
+  await expect(dialog.getByRole("separator")).toHaveCount(1)
+  await search.fill("opencode-beta")
+  await expect(options).toHaveCount(1)
+  await expect(dialog.getByRole("separator")).toHaveCount(0)
+  await search.fill("no-worktree-matches")
+  await expect(options).toHaveCount(0)
+  await expect(dialog.getByRole("separator")).toHaveCount(0)
+  await search.fill("")
   await expect(options.nth(0)).toHaveAttribute("aria-selected", "true")
-  // The chip's avatar sits on the same column as the row icons below it.
-  await expect
-    .poll(async () => {
-      const avatar = await chip.locator('[data-component="project-avatar-v2"]').boundingBox()
-      const icon = await options.nth(0).locator(".command-palette-row-icon").boundingBox()
-
-      return avatar && icon ? Math.abs(avatar.x - icon.x) : Infinity
-    })
-    .toBeLessThanOrEqual(0.5)
   await page.keyboard.press("Backspace")
   await expect(search).toHaveValue("opencode")
   await expect(rows.nth(0)).toHaveAttribute("aria-selected", "true")
 
-  // ArrowUp from the first project reaches "Add project" above it; adding a project picks one of the ready servers
-  // first, then browses that server.
+  // Adding a project picks one of the ready servers first, then browses that server.
   await search.fill("")
   await expect(rows.nth(0)).toHaveAttribute("aria-selected", "true")
   await page.keyboard.press("ArrowUp")
-  await expect(add).toHaveAttribute("aria-selected", "true")
-  await page.keyboard.press("ArrowDown")
-  await expect(rows.nth(0)).toHaveAttribute("aria-selected", "true")
-  await page.keyboard.press("ArrowUp")
-  await page.keyboard.press("ArrowRight")
-  await expect(chip).toHaveText("Add project")
-  await expect(addButton).toHaveCount(0)
-  // The search field's button starts the same flow.
-  await page.keyboard.press("Backspace")
-  await expect(addButton).toBeVisible()
-  await page.keyboard.press("Tab")
-  await page.keyboard.press("Enter")
-  await expect(chip).toHaveText("Add project")
+  await expect(options.nth(3)).toHaveAttribute("aria-selected", "true")
+  await page.keyboard.press((await page.evaluate(() => navigator.platform.includes("Mac"))) ? "Meta+o" : "Control+o")
+  await expect(back).toHaveText("Servers")
   // The server the app runs beside shows its hostname and "This computer" instead of its address.
   await expect(options).toHaveText(["hailmaryThis computer", "apollo"])
+  await back.click()
+  await options.filter({ hasText: "Add project" }).click()
+  await expect(options).toHaveText(["hailmaryThis computer", "apollo"])
   await options.filter({ hasText: "apollo" }).click()
   await expect(page.getByRole("button", { name: "Select folder", exact: true })).toBeEnabled()
   await expect.poll(() => files.length).toBeGreaterThan(0)
 })
 
+for (const binding of ["mod+alt+p", "none"]) {
+  test(`the location dialog honors the Open project shortcut override: ${binding}`, async ({ page }) => {
+    await openDraft(page, {
+      name: "ProjectShortcut",
+      fileList: () => [],
+      seed: { settings: { keybinds: { "project.open": binding } } },
+    })
+    await newSessionLocation(page).click()
+    const search = page.getByRole("combobox", { name: "Search projects", exact: true })
+    await expect(search).toBeFocused()
+    const keys = page.getByRole("option", { name: /^Add project/ }).locator('[data-component="keybind-v2"]')
+
+    if (binding === "none") await expect(keys).toHaveCount(0)
+
+    if (binding !== "none") await expect(keys).toContainText("P")
+
+    const modifier = (await page.evaluate(() => navigator.platform.includes("Mac"))) ? "Meta" : "Control"
+    await search.press(`${modifier}+o`)
+    await search.fill("still searching")
+    await expect(search).toHaveValue("still searching")
+
+    if (binding === "none") return
+
+    await search.press(`${modifier}+Alt+p`)
+    await expect(page.getByRole("button", { name: "Select folder", exact: true })).toBeEnabled()
+  })
+}
+
 const accentRoot = "C:/OpenCode/WorkspaceAccent"
 
 const accentWorkspace = `${accentRoot}/.worktrees/feature`
diff --git a/packages/app/e2e/utils/workspace.ts b/packages/app/e2e/utils/workspace.ts
index 167f90bb39f..7a003567481 100644
--- a/packages/app/e2e/utils/workspace.ts
+++ b/packages/app/e2e/utils/workspace.ts
@@ -1,4 +1,5 @@
 import { expect, type Page } from "@playwright/test"
+import type { Schema } from "effect"
 import {
   NO_PROVIDER,
   REMOTE_SERVER,
@@ -20,9 +21,9 @@ export type WorkspaceInput = Partial<Omit<MockServerConfig, "directory" | "proje
   name: string
   directory?: string
   // Merged over the default project.
-  project?: Record<string, unknown>
+  project?: Partial<Parameters<typeof project>[0]>
   // Defaults to one session titled `name`. Omitted fields come from `session()`.
-  sessions?: ({ id: string; title?: string } & Record<string, unknown>)[]
+  sessions?: (Partial<Parameters<typeof session>[0]> & { id: string })[]
   // Merged over the default seed: the project used before, and a tab for every session.
   seed?: SeedInput
 }
@@ -31,7 +32,7 @@ export type WorkspaceInput = Partial<Omit<MockServerConfig, "directory" | "proje
 export async function mockWorkspace(page: Page, input: WorkspaceInput) {
   const slug = input.name.toLowerCase().replace(/[^a-z0-9]+/g, "_")
   const directory = input.directory ?? `C:/OpenCode/${input.name}`
-  const projectID = typeof input.project?.id === "string" ? input.project.id : `proj_${slug}`
+  const projectID = input.project?.id ?? `proj_${slug}`
 
   const sessions = (input.sessions ?? [{ id: `ses_${slug}`, title: input.name }]).map((item) =>
     session({ directory, projectID, ...item }),
@@ -94,9 +95,9 @@ export function newSessionLocation(page: Page) {
 export async function openWorktreeDraft(page: Page, input: WorkspaceInput & { draftID?: string }) {
   const worktree = Promise.withResolvers<{ status: number; json: unknown }>()
   const calls: string[] = []
-  const worktreeRequests: { url: URL; body: Record<string, unknown> }[] = []
-  const creates: Record<string, unknown>[] = []
-  const prompts: { sessionID: string; body: Record<string, unknown> }[] = []
+  const worktreeRequests: { url: URL; body: Schema.JsonObject }[] = []
+  const creates: Schema.JsonObject[] = []
+  const prompts: { sessionID: string; body: Schema.JsonObject }[] = []
   page.on("request", (request) => {
     if (request.method() !== "POST") return
     const url = new URL(request.url())
@@ -140,7 +141,9 @@ export async function openWorktreeDraft(page: Page, input: WorkspaceInput & { dr
   await expect(editor).toBeVisible({ timeout: APP_READY_TIMEOUT })
   await newSessionLocation(page).click()
   // The dialog opens on projects; → lists the current project's worktrees.
-  await page.keyboard.press("ArrowRight")
+  const search = page.getByRole("combobox", { name: "Search projects", exact: true })
+  await expect(search).toBeFocused()
+  await search.press("ArrowRight")
   await page.getByRole("option", { name: /^New worktree/ }).click()
   await expect(newSessionLocation(page)).toContainText("New worktree")
   await expect(editor).toBeEditable()
diff --git a/packages/app/src/new-session/location/dialog.css b/packages/app/src/new-session/location/dialog.css
index 93a89864b7b..466356d188b 100644
--- a/packages/app/src/new-session/location/dialog.css
+++ b/packages/app/src/new-session/location/dialog.css
@@ -1,7 +1,150 @@
+[data-component="dialog-v2"]:has(.new-session-location) {
+  align-items: flex-start;
+}
+
+[data-component="dialog-v2"]:has(.new-session-location) [data-slot="dialog-container"] {
+  width: min(calc(100vw - 24px), 480px);
+  height: auto;
+  max-height: min(calc(100vh - 96px), 480px);
+  min-height: 0;
+  margin-top: max(48px, calc((100vh - 480px) / 2));
+  background: var(--v2-background-bg-layer-01);
+  box-shadow: var(--v2-elevation-overlay);
+}
+
+.new-session-location .palette-menu-search {
+  padding: 6px 6px 0;
+}
+
+.new-session-location .palette-menu-search [data-component="text-input-v2"] {
+  height: 28px;
+  padding-inline-end: 6px;
+  background: transparent;
+}
+
+.new-session-location .palette-menu-search [data-slot="text-input-v2-value"] {
+  gap: 6px;
+}
+
+.new-session-location .palette-menu-search [data-slot="text-input-v2-leading-icon"] {
+  padding-inline-start: 6px;
+}
+
+.new-session-location .palette-menu-search [data-slot="text-input-v2-input"]::placeholder {
+  color: var(--v2-text-text-base);
+  opacity: 0.5;
+}
+
+.new-session-location-divider {
+  position: relative;
+  height: 9px;
+  flex-shrink: 0;
+  margin-block: 4px;
+}
+
+.new-session-location-divider::after {
+  position: absolute;
+  inset-inline: 0;
+  top: 4px;
+  border-top: 0.5px solid var(--v2-border-border-base);
+  content: "";
+}
+
+.new-session-location .command-palette-results {
+  gap: 4px;
+  padding: 0 6px 6px;
+}
+
+.new-session-location .command-palette-group {
+  gap: 4px;
+}
+
+.new-session-location-action-divider {
+  height: 1px;
+  flex-shrink: 0;
+  margin-block: 2px;
+  margin-inline: -6px;
+  background: var(--v2-border-border-muted);
+  transform: scaleY(0.5);
+}
+
+.new-session-location .command-palette-group-title {
+  display: flex;
+  height: 28px;
+  flex-shrink: 0;
+  align-items: center;
+  margin: 0;
+  padding: 0 6px;
+  color: var(--v2-text-text-muted);
+  line-height: var(--line-height-compact);
+}
+
+.new-session-location-back {
+  border: 0;
+  border-radius: 2px;
+  background: transparent;
+  font: inherit;
+  font-size: 13px;
+  text-align: start;
+  cursor: pointer;
+}
+
+.new-session-location-back:focus-visible {
+  outline: 2px solid var(--v2-border-border-focus);
+  outline-offset: 2px;
+}
+
+.new-session-location .palette-menu-row[data-size="compact"] {
+  padding-inline: 6px;
+}
+
+.new-session-location .palette-menu-row:is([data-active], :focus-visible) {
+  background: var(--v2-overlay-simple-overlay-hover);
+}
+
+.new-session-location .command-palette-row-text {
+  flex: 1;
+}
+
+.new-session-location .command-palette-description {
+  flex: 1;
+  color: var(--v2-text-text-faint);
+}
+
+.new-session-location .new-session-location-workspace .command-palette-description {
+  font-size: 11px;
+  letter-spacing: 0.05px;
+}
+
+.new-session-location-workspace .command-palette-row-icon {
+  color: var(--v2-icon-icon-base);
+}
+
+.new-session-location-workspace .command-palette-row-text > .command-palette-title {
+  max-width: 60%;
+  flex-shrink: 0;
+}
+
+.new-session-location .new-session-location-option .command-palette-title {
+  color: var(--v2-text-text-muted);
+}
+
+.new-session-location-other {
+  gap: 8px;
+}
+
+.new-session-location-count {
+  color: var(--v2-text-text-faint);
+  font-size: 13px;
+  font-weight: 440;
+  line-height: var(--line-height-compact);
+  font-variant-numeric: tabular-nums;
+}
+
 .new-session-location-drill {
   display: flex;
-  width: 20px;
-  height: 20px;
+  width: 16px;
+  height: 16px;
   flex-shrink: 0;
   align-items: center;
   justify-content: center;
@@ -9,40 +152,12 @@
   color: var(--v2-icon-icon-faint);
 }
 
-.command-palette-row[data-active] .new-session-location-drill {
-  color: var(--v2-icon-icon-base);
-}
-
-.new-session-location-drill:hover {
-  background: var(--v2-overlay-simple-overlay-hover);
-}
-
-.new-session-location-hints {
-  display: flex;
-  flex-shrink: 0;
-  align-items: center;
-  gap: 16px;
-  padding: 8px 14px;
-  border-top: 0.5px solid var(--v2-border-border-muted);
-  color: var(--v2-text-text-muted);
-  font-size: 12px;
-  font-weight: 440;
-  line-height: 16px;
-  letter-spacing: -0.04px;
-  user-select: none;
-}
-
-.new-session-location-hints > span {
-  display: flex;
-  align-items: center;
-  gap: 6px;
-}
-
-/* The project name truncates before its server tag. */
+/* Keep the name legible while the path gives up space first. */
 .new-session-location-name {
   display: flex;
   min-width: 0;
-  max-width: 100%;
+  max-width: 55%;
+  flex-shrink: 0;
   align-items: center;
   gap: 6px;
 }
@@ -62,45 +177,17 @@
 .new-session-location-tag > span {
   min-width: 0;
   overflow: hidden;
-  line-height: 16px;
+  line-height: var(--line-height-compact);
   text-overflow: ellipsis;
   white-space: nowrap;
 }
 
-.new-session-location-add {
-  display: flex;
-  height: 24px;
-  align-items: center;
-  gap: 4px;
-  padding: 0 8px 0 6px;
-  border-radius: 4px;
-  color: var(--v2-text-text-muted);
-  font-size: 13px;
-  font-weight: 440;
-  line-height: 16px;
-  white-space: nowrap;
-  outline: none;
-}
-
-.new-session-location-add:is(:hover, :focus-visible) {
-  background: var(--v2-overlay-simple-overlay-hover);
-  color: var(--v2-text-text-base);
-}
-
-.new-session-location-add:focus-visible {
-  outline: 2px solid var(--v2-border-border-focus);
-  outline-offset: -2px;
-}
-
-/* Narrow screens keep only the icon; the tooltip names it. */
-@media (max-width: 480px) {
-  .new-session-location-add {
-    width: 24px;
-    justify-content: center;
-    padding: 0;
+@media (max-width: 640px) {
+  .new-session-location .palette-menu-row:has(.command-palette-description) {
+    min-height: 40px;
   }
 
-  .new-session-location-add > span {
-    display: none;
+  .new-session-location-name {
+    max-width: 100%;
   }
 }
diff --git a/packages/app/src/new-session/location/dialog.tsx b/packages/app/src/new-session/location/dialog.tsx
index 63cee7421fe..667ee173d88 100644
--- a/packages/app/src/new-session/location/dialog.tsx
+++ b/packages/app/src/new-session/location/dialog.tsx
@@ -11,10 +11,10 @@ import {
   ProjectAvatar,
 } from "@opencode/ui/project-avatar"
 import { TextInput } from "@opencode/ui/text-input"
-import { Tooltip } from "@opencode/ui/tooltip"
 import { createTypeahead } from "@opencode/ui/typeahead"
+import { createEventListener } from "@solid-primitives/event-listener"
 import { getFilename } from "@opencode/util/path"
-import { createEffect, createMemo, createResource, For, type JSX, Match, onCleanup, Show, Switch } from "solid-js"
+import { createEffect, createMemo, createResource, For, Match, onCleanup, Show, Switch } from "solid-js"
 import { createStore } from "solid-js/store"
 import type { PromptProject, PromptProjectController, PromptServer } from "@/new-session/project/selector"
 import type { NewSessionWorkspaceController } from "@/new-session/workspace/controller"
@@ -22,6 +22,7 @@ import { useLanguage } from "@/runtime/i18n/language"
 import { useServerSDK } from "@/runtime/server/client"
 import { ServerConnection, useServers } from "@/runtime/server/registry"
 import { useGlobal } from "@/runtime/server/runtime"
+import { useCommand } from "@/shell/commands/command"
 import { workspaceSelectionDirectories } from "@/workspaces/paths"
 import "@/shell/commands/dialog.css"
 import "@/shell/palette-menu.css"
@@ -30,13 +31,13 @@ import "./dialog.css"
 type LocationEntry =
   | { id: string; type: "project"; project: PromptProject }
   | { id: string; type: "add" }
+  | { id: string; type: "other" }
   | { id: string; type: "server"; server: PromptServer }
   | { id: string; type: "workspace"; value: string; directory: string }
 
 /**
- * Opens the new-session location dialog: one project list across every ready server, → on a Git project lists where
- * the session can run, and → on "Add project" picks the server when there are several. Search projects passes
- * `projectsOnly` for just the project list: no "Add project", no worktrees and no key hints, like the other palettes.
+ * Opens the new-session location dialog: added projects across ready servers, a separate list of other server projects,
+ * and the worktree destinations for each Git project. Adding a project picks the server when there are several.
  */
 export function useNewSessionLocationDialog(input: {
   project: PromptProjectController
@@ -45,14 +46,13 @@ export function useNewSessionLocationDialog(input: {
 }) {
   const dialog = useDialog()
 
-  return (options?: { onWorkspace?: (value: string) => void; projectsOnly?: boolean }) => {
+  return (options?: { onWorkspace?: (value: string) => void }) => {
     void dialog.show(
       () => (
         <NewSessionLocationDialog
           project={input.project}
           workspace={input.workspace}
           onWorkspace={options?.onWorkspace}
-          projectsOnly={options?.projectsOnly}
         />
       ),
       input.onDone,
@@ -64,10 +64,10 @@ function NewSessionLocationDialog(props: {
   project: PromptProjectController
   workspace: NewSessionWorkspaceController
   onWorkspace?: (value: string) => void
-  projectsOnly?: boolean
 }) {
   const dialog = useDialog()
   const language = useLanguage()
+  const command = useCommand()
   const global = useGlobal()
   const servers = useServers()
   const serverSDK = useServerSDK()
@@ -76,10 +76,12 @@ function NewSessionLocationDialog(props: {
     drilled?: PromptProject
     /** Picking the server to add a project to. */
     picking?: boolean
+    /** Browsing server projects this client has not added. */
+    others: boolean
     query: string
     /** The projects view to restore when stepping back out of a project or the server step. */
-    back?: { query: string; active: string }
-  }>({ query: "" })
+    back?: { query: string; active: string; others: boolean }
+  }>({ query: "", others: false })
 
   const connection = (project: PromptProject) =>
     project.server ? servers.list.find((item) => ServerConnection.key(item) === project.server!.key) : serverSDK.server
@@ -124,18 +126,28 @@ function NewSessionLocationDialog(props: {
     return !query || values.some((value) => value?.toLowerCase().includes(query))
   }
 
-  const addEntry: LocationEntry = { id: "add", type: "add" }
+  const otherCount = createMemo(() => props.project.projects().filter((project) => !project.used).length)
 
-  // Remote projects also match their server's name, which their tag shows. "Add project" is shown first, above the
-  // heading, but navigates last, so the first project stays the opening row and the arrow keys' wrap-around still
-  // follows the rows on screen.
-  const projectEntries = createMemo<LocationEntry[]>(() => [
-    ...props.project
-      .projects()
-      .filter((project) => matches(displayName(project), project.worktree, tagged(project.server)?.name))
-      .map((project) => ({ id: projectEntryID(project), type: "project" as const, project })),
-    ...(props.projectsOnly ? [] : [addEntry]),
-  ])
+  const projectEntries = createMemo<LocationEntry[]>(() => {
+    return [
+      ...props.project
+        .projects()
+        .filter((project) => (store.others ? !project.used : project.used || !!store.query.trim()))
+        // Remote projects also match their server's name, which their tag shows.
+        .filter((project) => matches(displayName(project), project.worktree, tagged(project.server)?.name))
+        .map((project) => ({ id: projectEntryID(project), type: "project" as const, project })),
+      ...(!store.others
+        ? [
+            ...(!store.query.trim() && otherCount() ? [{ id: "other", type: "other" as const }] : []),
+            { id: "add", type: "add" as const },
+          ]
+        : []),
+    ]
+  })
+
+  const firstOther = createMemo(
+    () => projectEntries().find((entry) => entry.type === "project" && !entry.project.used)?.id,
+  )
 
   const serverEntries = createMemo<LocationEntry[]>(() =>
     props.project
@@ -170,16 +182,16 @@ function NewSessionLocationDialog(props: {
     return projectEntries()
   }
 
-  const drillable = (project: PromptProject) => !props.projectsOnly && !!project.id && project.vcs === "git"
-
-  const grouped = () => entries().filter((entry) => entry !== addEntry)
+  const drillable = (project: PromptProject) => !!project.id && project.vcs === "git"
 
   const title = () => {
     if (store.drilled) return language.t("session.new.workspace.runIn")
 
     if (store.picking) return language.t("session.new.location.servers")
 
-    return language.t("home.projects")
+    if (store.others) return language.t("session.new.location.otherProjects")
+
+    return undefined
   }
 
   const placeholder = () => {
@@ -191,6 +203,21 @@ function NewSessionLocationDialog(props: {
   }
 
   const choosesServer = () => props.project.servers().length > 1
+  command.register("new-session-location", () => [
+    {
+      id: "project.open",
+      title: language.t("command.project.open"),
+      category: language.t("command.category.project"),
+      keybind: "mod+o",
+      onSelect: () => choose({ id: "add", type: "add" }),
+    },
+  ])
+  createEventListener(document, "keydown", (event) => {
+    if (event.isComposing || !command.matches("project.open", event)) return
+    event.preventDefault()
+    event.stopPropagation()
+    command.trigger("project.open", "keybind")
+  })
 
   // Every step opens on its first row; the user's choice holds while it stays in the results.
   const typeahead = createTypeahead<LocationEntry>({
@@ -215,7 +242,7 @@ function NewSessionLocationDialog(props: {
   })
 
   function workspaceTitle(project: PromptProject, value: string) {
-    if (value === "main") return getFilename(project.worktree)
+    if (value === "main") return displayName(project)
 
     if (value === "create") return language.t("workspace.new")
 
@@ -223,18 +250,33 @@ function NewSessionLocationDialog(props: {
   }
 
   function drill(project: PromptProject) {
-    setStore({ drilled: project, query: "", back: { query: store.query, active: projectEntryID(project) } })
+    setStore({
+      drilled: project,
+      query: "",
+      back: { query: store.query, active: projectEntryID(project), others: store.others },
+    })
     inputRef?.focus()
   }
 
   function pick() {
-    setStore({ picking: true, query: "", back: { query: store.query, active: "add" } })
+    setStore({
+      drilled: undefined,
+      picking: true,
+      query: "",
+      back: { query: store.query, active: "add", others: store.others },
+    })
     inputRef?.focus()
   }
 
   function back() {
-    const active = store.back?.active
-    setStore({ drilled: undefined, picking: undefined, query: store.back?.query ?? "", back: undefined })
+    const active = store.drilled || store.picking ? store.back?.active : "other"
+    setStore({
+      drilled: undefined,
+      picking: undefined,
+      others: store.drilled || store.picking ? (store.back?.others ?? false) : false,
+      query: store.drilled || store.picking ? (store.back?.query ?? "") : "",
+      back: undefined,
+    })
     typeahead.setActive(active)
     inputRef?.focus()
   }
@@ -242,6 +284,13 @@ function NewSessionLocationDialog(props: {
   function choose(entry: LocationEntry | undefined) {
     if (!entry) return
 
+    if (entry.type === "other") {
+      setStore({ others: true, query: "" })
+      inputRef?.focus()
+
+      return
+    }
+
     if (entry.type === "add" && choosesServer()) {
       pick()
 
@@ -286,26 +335,36 @@ function NewSessionLocationDialog(props: {
     const atEnd = target.selectionStart === target.value.length && target.selectionEnd === target.value.length
     const atStart = target.selectionStart === 0 && target.selectionEnd === 0
     const active = activeEntry()
+    const forward = language.direction() === "rtl" ? "ArrowLeft" : "ArrowRight"
+    const backward = language.direction() === "rtl" ? "ArrowRight" : "ArrowLeft"
 
-    if (event.key === "ArrowRight" && atEnd && active?.type === "project" && drillable(active.project)) {
+    if (event.key === forward && atEnd && active?.type === "project" && drillable(active.project)) {
       event.preventDefault()
       drill(active.project)
 
       return
     }
 
-    if (event.key === "ArrowRight" && atEnd && active?.type === "add" && choosesServer()) {
+    if (event.key === forward && atEnd && active?.type === "add" && choosesServer()) {
       event.preventDefault()
       pick()
 
       return
     }
 
+    if (active?.type === "other" && atEnd && event.key === forward) {
+      event.preventDefault()
+      choose(active)
+
+      return
+    }
+
     if (
-      (store.drilled || store.picking) &&
-      ((event.key === "ArrowLeft" && atStart) || (event.key === "Backspace" && !target.value))
+      (store.drilled || store.picking || store.others) &&
+      ((event.key === backward && atStart) || (event.key === "Backspace" && !target.value) || event.key === "Escape")
     ) {
       event.preventDefault()
+      event.stopPropagation()
       back()
 
       return
@@ -314,74 +373,8 @@ function NewSessionLocationDialog(props: {
     typeahead.onKeyDown(event)
   }
 
-  const option = (entry: LocationEntry) => (
-    <button
-      type="button"
-      id={typeahead.optionID(entry)}
-      class="command-palette-row palette-menu-row"
-      role="option"
-      aria-selected={activeEntry()?.id === entry.id}
-      data-active={activeEntry()?.id === entry.id ? "" : undefined}
-      onMouseMove={(event) => {
-        // Ignore hover from a static cursor when keyboard scrolling moves rows underneath it.
-        if (event.movementX === 0 && event.movementY === 0) return
-        typeahead.setActive(entry.id)
-      }}
-      onMouseDown={(event) => event.preventDefault()}
-      onClick={() => choose(entry)}
-    >
-      <Switch>
-        <Match when={entry.type === "project" && entry}>
-          {(item) => (
-            <ProjectRow
-              project={item().project}
-              path={item().project.worktree}
-              onDrill={drillable(item().project) ? () => drill(item().project) : undefined}
-              drillLabel={language.t("session.new.location.worktrees")}
-            />
-          )}
-        </Match>
-        <Match when={entry.type === "add"}>
-          <div class="command-palette-row-main">
-            <Icon name="plus" class="command-palette-row-icon" />
-            <div class="command-palette-row-text">
-              <span class="command-palette-title palette-menu-title">{language.t("session.new.project.add")}</span>
-            </div>
-          </div>
-          <Show when={choosesServer()}>
-            <DrillButton label={language.t("session.new.location.servers")} onDrill={pick} />
-          </Show>
-        </Match>
-        <Match when={entry.type === "server" && entry}>
-          {(item) => (
-            <div class="command-palette-row-main">
-              <Icon name={serverIcon(item().server)} class="command-palette-row-icon" />
-              <div class="command-palette-row-text">
-                <span class="command-palette-title palette-menu-title">{item().server.name}</span>
-                <Show when={item().server.hint}>
-                  {(hint) => <span class="command-palette-description">{hint()}</span>}
-                </Show>
-              </div>
-            </div>
-          )}
-        </Match>
-        <Match when={entry.type === "workspace" && store.drilled && entry}>
-          {(item) => (
-            <WorkspaceRow
-              title={workspaceTitle(store.drilled!, item().value)}
-              value={item().value}
-              description={
-                item().value === "create" ? language.t("session.new.workspace.new.tooltip") : item().directory
-              }
-            />
-          )}
-        </Match>
-      </Switch>
-    </button>
-  )
-
   return (
-    <Dialog class="command-palette" size="large">
+    <Dialog class="command-palette new-session-location" size="large">
       <DialogBody class="command-palette-body">
         <div class="palette-menu-search">
           <TextInput
@@ -393,100 +386,176 @@ function NewSessionLocationDialog(props: {
             appearance="large"
             aria-label={placeholder()}
             placeholder={placeholder()}
-            leadingIcon={
-              <Switch fallback={<Icon name="magnifying-glass" />}>
-                <Match when={store.drilled}>
-                  {(project) => (
-                    <BackChip label={language.t("session.new.location.back")} onBack={back}>
-                      <ProjectAvatar
-                        class="shrink-0"
-                        fallback={displayName(project())}
-                        src={getProjectAvatarSource(project().id, project().icon)}
-                        variant={getProjectAvatarVariant(project().icon?.color)}
-                        generated={getProjectAvatarGenerated(project())}
-                      />
-                      <span class="min-w-0 truncate">{displayName(project())}</span>
-                      <ServerTag server={project().server} />
-                    </BackChip>
-                  )}
-                </Match>
-                <Match when={store.picking}>
-                  <BackChip label={language.t("session.new.location.back")} onBack={back}>
-                    <Icon name="plus" size="small" class="shrink-0 text-v2-icon-icon-muted" />
-                    <span class="min-w-0 truncate">{language.t("session.new.project.add")}</span>
-                  </BackChip>
-                </Match>
-              </Switch>
-            }
+            leadingIcon={<Icon name="magnifying-glass" />}
             role="combobox"
             aria-expanded="true"
+            data-owns-escape={store.drilled || store.picking || store.others ? "" : undefined}
             aria-controls={typeahead.listID}
             aria-activedescendant={typeahead.activeID()}
             onInput={(event) => setStore("query", event.currentTarget.value)}
             onKeyDown={handleKeyDown}
-            trailing={
-              <Show when={!props.projectsOnly && !store.drilled && !store.picking}>
-                <Tooltip placement="top" value={language.t("session.new.project.add")}>
-                  <button
-                    type="button"
-                    class="new-session-location-add"
-                    aria-label={language.t("session.new.project.add")}
-                    onClick={() => choose(addEntry)}
-                  >
-                    <Icon name="plus" size="small" />
-                    <span>{language.t("session.new.project.add")}</span>
-                  </button>
-                </Tooltip>
-              </Show>
-            }
           />
         </div>
+        <div class="new-session-location-divider" aria-hidden="true" />
         <div class="command-palette-scroll" data-scrollable ref={(el) => (resultsRef = el)}>
           <div id={typeahead.listID} class="command-palette-results" role="listbox">
-            <Show
-              when={entries().length > 0}
-              fallback={
-                // The worktree list may still be loading; hold the row's height without flashing a label.
-                <div class="command-palette-state" classList={{ invisible: !!store.drilled && listed.loading }}>
-                  {language.t("palette.empty")}
-                </div>
-              }
-            >
-              {/* One group, so the heading follows "Add project" at the row rhythm rather than the gap between groups. */}
-              <div class="command-palette-group">
-                <Show when={entries().includes(addEntry)}>{option(addEntry)}</Show>
-                <Show when={grouped().length > 0}>
-                  <div class="command-palette-group-title">{title()}</div>
-                  <For each={grouped()}>{option}</For>
-                </Show>
-              </div>
-            </Show>
+            <div class="command-palette-group">
+              <Show when={title()}>
+                {(value) => (
+                  <button
+                    type="button"
+                    class="command-palette-group-title new-session-location-back"
+                    aria-label={language.t("session.new.location.back")}
+                    onClick={back}
+                  >
+                    {value()}
+                  </button>
+                )}
+              </Show>
+              <Show
+                when={entries().length > 0}
+                fallback={
+                  // The worktree list may still be loading; hold the row's height without flashing a label.
+                  <div class="command-palette-state" classList={{ invisible: !!store.drilled && listed.loading }}>
+                    {language.t("palette.empty")}
+                  </div>
+                }
+              >
+                <For each={entries()}>
+                  {(entry, index) => (
+                    <>
+                      <Show
+                        when={
+                          store.query.trim() &&
+                          !store.drilled &&
+                          !store.picking &&
+                          !store.others &&
+                          entry.id === firstOther()
+                        }
+                      >
+                        <div class="command-palette-group-title">
+                          {language.t("session.new.location.otherProjects")}
+                        </div>
+                      </Show>
+                      <Show
+                        when={
+                          index() > 0 &&
+                          (entry.type === "add" ||
+                            (entry.type === "workspace" &&
+                              entry.value !== "main" &&
+                              entry.value !== "create" &&
+                              ["main", "create"].includes(entries()[index() - 1]!.id)))
+                        }
+                      >
+                        <div class="new-session-location-action-divider" role="separator" />
+                      </Show>
+                      <button
+                        type="button"
+                        id={typeahead.optionID(entry)}
+                        class="command-palette-row palette-menu-row"
+                        data-size="compact"
+                        classList={{
+                          "new-session-location-option": entry.type === "other" || entry.type === "add",
+                          "new-session-location-workspace": entry.type === "workspace",
+                        }}
+                        role="option"
+                        aria-selected={activeEntry()?.id === entry.id}
+                        data-active={activeEntry()?.id === entry.id ? "" : undefined}
+                        onMouseMove={(event) => {
+                          // Ignore hover from a static cursor when keyboard scrolling moves rows underneath it.
+                          if (event.movementX === 0 && event.movementY === 0) return
+                          typeahead.setActive(entry.id)
+                        }}
+                        onMouseDown={(event) => event.preventDefault()}
+                        onFocus={() => typeahead.setActive(entry.id)}
+                        onClick={() => choose(entry)}
+                      >
+                        <Switch>
+                          <Match when={entry.type === "project" && entry}>
+                            {(item) => (
+                              <ProjectRow
+                                project={item().project}
+                                path={item().project.worktree}
+                                onDrill={drillable(item().project) ? () => drill(item().project) : undefined}
+                                drillLabel={language.t("session.new.location.worktrees")}
+                              />
+                            )}
+                          </Match>
+                          <Match when={entry.type === "other"}>
+                            <div class="command-palette-row-main new-session-location-other">
+                              <Icon name="menu" class="command-palette-row-icon" />
+                              <span class="command-palette-title palette-menu-title">
+                                {language.t("session.new.location.otherProjects")}
+                              </span>
+                              <span class="new-session-location-count">{otherCount()}</span>
+                            </div>
+                            <DrillButton
+                              label={language.t("session.new.location.otherProjects")}
+                              onDrill={() => choose(entry)}
+                            />
+                          </Match>
+                          <Match when={entry.type === "add"}>
+                            <div class="command-palette-row-main">
+                              <Icon name="plus" class="command-palette-row-icon" />
+                              <div class="command-palette-row-text">
+                                <span class="command-palette-title palette-menu-title">
+                                  {language.t("session.new.project.add")}
+                                </span>
+                              </div>
+                            </div>
+                            <Show when={command.keybindParts("project.open").length}>
+                              <Keybind keys={command.keybindParts("project.open")} variant="neutral" class="shrink-0" />
+                            </Show>
+                            <Show when={choosesServer()}>
+                              <DrillButton label={language.t("session.new.location.servers")} onDrill={pick} />
+                            </Show>
+                          </Match>
+                          <Match when={entry.type === "server" && entry}>
+                            {(item) => (
+                              <div class="command-palette-row-main">
+                                <Icon name={serverIcon(item().server)} class="command-palette-row-icon" />
+                                <div class="command-palette-row-text">
+                                  <span class="command-palette-title palette-menu-title">{item().server.name}</span>
+                                  <Show when={item().server.hint}>
+                                    {(hint) => <span class="command-palette-description">{hint()}</span>}
+                                  </Show>
+                                </div>
+                              </div>
+                            )}
+                          </Match>
+                          <Match when={entry.type === "workspace" && store.drilled && entry}>
+                            {(item) => (
+                              <Show
+                                when={item().value === "main"}
+                                fallback={
+                                  <WorkspaceRow
+                                    title={workspaceTitle(store.drilled!, item().value)}
+                                    value={item().value}
+                                    description={
+                                      item().value === "create"
+                                        ? language.t("session.new.workspace.new.tooltip")
+                                        : item().directory
+                                    }
+                                  />
+                                }
+                              >
+                                <ProjectRow
+                                  project={store.drilled!}
+                                  path={item().directory}
+                                  drillLabel={language.t("session.new.location.worktrees")}
+                                />
+                              </Show>
+                            )}
+                          </Match>
+                        </Switch>
+                      </button>
+                    </>
+                  )}
+                </For>
+              </Show>
+            </div>
           </div>
         </div>
-        <Show when={!props.projectsOnly}>
-          <div class="new-session-location-hints">
-            <span>
-              <Keybind keys={["↵"]} variant="neutral" />
-              {language.t("session.new.location.select")}
-            </span>
-            <Show
-              when={store.drilled || store.picking}
-              fallback={
-                <span>
-                  <Keybind keys={["→"]} variant="neutral" />
-                  {activeEntry()?.type === "add" && choosesServer()
-                    ? language.t("session.new.location.servers")
-                    : language.t("session.new.location.worktrees")}
-                </span>
-              }
-            >
-              <span>
-                <Keybind keys={["←"]} variant="neutral" />
-                {language.t("session.new.location.back")}
-              </span>
-            </Show>
-          </div>
-        </Show>
       </DialogBody>
     </Dialog>
   )
@@ -529,27 +598,11 @@ function DrillButton(props: { label: string; onDrill: () => void }) {
         props.onDrill()
       }}
     >
-      <Icon name="chevron-right" size="small" />
+      <Icon name="chevron-right" />
     </span>
   )
 }
 
-// The negative start margin cancels the chip's padding, so its icon sits where the search icon would and lines up with
-// the row icons, leaving the chip the same 6px inset from the field on every side.
-function BackChip(props: { label: string; onBack: () => void; children: JSX.Element }) {
-  return (
-    <button
-      type="button"
-      class="-ms-1.5 flex h-6 max-w-[280px] items-center gap-1.5 rounded-sm bg-v2-background-bg-base px-1.5 text-13-medium text-v2-text-text-base shadow-[var(--v2-elevation-raised)]"
-      aria-label={props.label}
-      onMouseDown={(event) => event.preventDefault()}
-      onClick={props.onBack}
-    >
-      {props.children}
-    </button>
-  )
-}
-
 /** The server a project lives on; projects on the current server have none. */
 function ServerTag(props: { server?: PromptServer }) {
   return (
@@ -576,11 +629,7 @@ function WorkspaceRow(props: { title: string; value: string; description: string
   return (
     <>
       <div class="command-palette-row-main">
-        <Icon
-          name={workspaceIcon(props.value)}
-          class="command-palette-row-icon"
-          classList={{ "!text-v2-icon-icon-accent": props.value !== "main" && props.value !== "create" }}
-        />
+        <Icon name={workspaceIcon(props.value)} class="command-palette-row-icon" />
         <div class="command-palette-row-text">
           <span class="command-palette-title palette-menu-title">{props.title}</span>
           <span class="command-palette-description" dir="ltr">
diff --git a/packages/app/src/new-session/screen.tsx b/packages/app/src/new-session/screen.tsx
index 2ddd5a342b2..1e5a170886b 100644
--- a/packages/app/src/new-session/screen.tsx
+++ b/packages/app/src/new-session/screen.tsx
@@ -53,7 +53,7 @@ export default function NewSessionPage(props: { draftId: string }) {
     restoreFocus: model.restoreFocus,
     project: {
       empty: project.empty,
-      open: () => location({ projectsOnly: true }),
+      open: () => location(),
     },
     workspace: {
       enabled: workspace.bar.visible,
@@ -67,7 +67,7 @@ export default function NewSessionPage(props: { draftId: string }) {
       if (!ready) return
 
       // Search projects opened this draft; the picker returns focus to the composer when it closes.
-      if (layout.draft.projectSearch.take()) location({ projectsOnly: true })
+      if (layout.draft.projectSearch.take()) location()
       else model.restoreFocus()
     }),
   )
diff --git a/packages/app/src/new-session/view.tsx b/packages/app/src/new-session/view.tsx
index 31df80ccd03..c2ad7b2f8bf 100644
--- a/packages/app/src/new-session/view.tsx
+++ b/packages/app/src/new-session/view.tsx
@@ -2,6 +2,8 @@ import { useDialog } from "@opencode/ui/context/dialog"
 import { Tooltip } from "@opencode/ui/tooltip"
 import { Icon } from "@opencode/ui/icon"
 import { Slash } from "@opencode/ui/slash"
+import { Keybind } from "@opencode/ui/keybind"
+import { useCommand } from "@/shell/commands/command"
 import { Show, createMemo, createSignal, type JSX } from "solid-js"
 import { createStore } from "solid-js/store"
 import { createResizeObserver } from "@solid-primitives/resize-observer"
@@ -221,9 +223,7 @@ function NewSessionTips(props: { selection: ComposerModel["model"]["selection"];
             class="flex h-6 min-w-0 items-center rounded-[4px] pl-1.5 text-[13px] leading-text-compact tracking-[-0.04px] text-v2-text-text-faint transition-[background-color,color] duration-150 ease-in-out hover:bg-v2-overlay-simple-overlay-hover hover:text-v2-text-text-muted focus-visible:bg-v2-overlay-simple-overlay-hover focus-visible:text-v2-text-text-muted focus-visible:outline-none"
             onClick={open}
           >
-            <span class="truncate">
-              {language.t("home.providerTip")}
-            </span>
+            <span class="truncate">{language.t("home.providerTip")}</span>
             <span class="flex size-6 shrink-0 items-center justify-center" aria-hidden="true">
               <Icon name="chevron-down" size="small" class="-rotate-90" />
             </span>
@@ -249,6 +249,29 @@ function NewSessionTips(props: { selection: ComposerModel["model"]["selection"];
   )
 }
 
+// Keeps as many leading segments as fit, then "…/", then the last two segments. The cut always lands on a slash.
+function fitPath(value: string, width: number, font: string) {
+  const separator = value.includes("/") ? "/" : "\\"
+  const parts = value.split(separator)
+  const context = document.createElement("canvas").getContext("2d")
+
+  if (!context) return { text: value, minimum: 0 }
+  context.font = font
+  const fits = (text: string) => context.measureText(text).width <= width
+  const first = parts[0] === "" ? 2 : 1
+
+  const candidates = Array.from({ length: Math.max(0, parts.length - 2 - first) }, (_, index) =>
+    [...parts.slice(0, parts.length - 3 - index), "…", ...parts.slice(-2)].join(separator),
+  )
+
+  const minimum = candidates.at(-1) ?? value
+
+  return {
+    text: !width || fits(value) ? value : (candidates.find(fits) ?? minimum),
+    minimum: context.measureText(minimum).width,
+  }
+}
+
 /** The composer tray: combined location picker, Git context, and the session's directory. */
 function NewSessionLocation(props: {
   project: PromptProject
@@ -260,7 +283,8 @@ function NewSessionLocation(props: {
   onClick: () => void
 }) {
   const language = useLanguage()
-  const [truncated, setTruncated] = createSignal(false)
+  const command = useCommand()
+  const [layout, setLayout] = createStore({ width: 0, font: "" })
 
   const worktree = () => {
     if (props.workspace === "main") return
@@ -276,6 +300,8 @@ function NewSessionLocation(props: {
     return props.workspace === "main" ? props.root : props.workspace
   }
 
+  const fitted = createMemo(() => fitPath(path() ?? "", layout.width, layout.font))
+
   return (
     <div class="relative flex min-h-9 min-w-0 items-center gap-3 ps-2 pe-1.5 text-[13px] font-[440] leading-[var(--line-height-compact)] tracking-[-0.04px]">
       <div class="flex min-w-0 max-w-full flex-wrap items-center gap-1 py-1.5">
@@ -337,22 +363,56 @@ function NewSessionLocation(props: {
       </div>
       <Show when={path()}>
         {(directory) => (
-          <div class="flex min-w-0 flex-1 justify-end pe-1.5 @max-[560px]:hidden">
+          <div
+            class="flex min-w-0 flex-1 justify-end pe-1.5 @max-[560px]:hidden"
+            style={{ "min-width": `min(calc(100% - 12px), ${Math.ceil(fitted().minimum) + 26}px)` }}
+          >
             <Tooltip
               placement="top"
               value={directory()}
-              disabled={!truncated()}
-              class="flex min-w-0"
+              disabled={fitted().text === directory() && fitted().minimum <= layout.width}
+              class="flex min-w-0 flex-1"
               contentClass="max-w-[calc(100vw-32px)] break-all"
             >
               <span
-                ref={(element) =>
-                  createResizeObserver(element, () => setTruncated(element.scrollWidth > element.clientWidth))
+                ref={(row) =>
+                  createResizeObserver(row, () => {
+                    const icon = row.querySelector("[data-slot=new-session-location-icon]")
+                    const style = getComputedStyle(row)
+
+                    setLayout({
+                      width: row.clientWidth - (icon?.clientWidth ?? 0) - parseFloat(style.columnGap),
+                      font: style.font,
+                    })
+                  })
                 }
-                data-slot="new-session-location-path"
-                class="block min-w-0 truncate text-v2-text-text-faint [direction:rtl] [text-align:end]"
+                class="flex min-w-0 flex-1 items-center justify-end gap-1.5"
+                dir="ltr"
               >
-                <bdi dir="ltr">{directory()}</bdi>
+                <Tooltip
+                  placement="top"
+                  openDelay={800}
+                  value={
+                    <span class="flex items-center gap-2">
+                      {language.t("session.location.toggle")}
+                      <Keybind keys={command.keybindParts("session.location.cycle")} variant="neutral" />
+                    </span>
+                  }
+                >
+                  <span class="flex shrink-0" data-slot="new-session-location-icon">
+                    <Icon
+                      name={worktree() ? "outline-worktree" : "monitor"}
+                      size="small"
+                      class="text-v2-icon-icon-muted"
+                    />
+                  </span>
+                </Tooltip>
+                <span
+                  data-slot="new-session-location-path"
+                  class="min-w-0 overflow-hidden whitespace-nowrap text-v2-text-text-faint [direction:rtl] [text-align:end]"
+                >
+                  <bdi dir="ltr">{fitted().text}</bdi>
+                </span>
               </span>
             </Tooltip>
           </div>
diff --git a/packages/app/src/new-session/workspace/selector.tsx b/packages/app/src/new-session/workspace/selector.tsx
index 4027fc73550..c1c26f4f7e1 100644
--- a/packages/app/src/new-session/workspace/selector.tsx
+++ b/packages/app/src/new-session/workspace/selector.tsx
@@ -80,7 +80,7 @@ export function NewSessionBranch(props: { workspace: NewSessionWorkspaceControll
           when={creating()}
           fallback={
             <div class="flex h-7 min-w-0 max-w-[220px] items-center gap-1.5 ps-1.5 pe-2 text-v2-text-text-faint">
-              <Icon name="branch" size="small" class="shrink-0 text-v2-icon-icon-faint" />
+              <Icon name="branch" size="small" class="shrink-0 text-v2-icon-icon-muted" />
               <span ref={observe} dir="auto" class="min-w-0 truncate">
                 {label()}
               </span>
diff --git a/packages/app/src/runtime/i18n/en.ts b/packages/app/src/runtime/i18n/en.ts
index 5153c30c52d..138ad8dbe15 100644
--- a/packages/app/src/runtime/i18n/en.ts
+++ b/packages/app/src/runtime/i18n/en.ts
@@ -60,6 +60,7 @@ export const dict = {
   "command.usage.view": "View usage",
   "command.usage.view.description": "See your OpenCode Go allowance and Console budgets",
   "command.session.location.cycle": "Cycle session location",
+  "session.location.toggle": "Toggle session location",
 
   "command.palette": "Search everything",
   "command.commands.search": "Search commands",
@@ -1128,6 +1129,7 @@ export const dict = {
   "session.new.workspace.search.placeholder": "Search worktrees",
   "session.new.workspace.search.empty": "No matching worktrees",
   "session.new.location.select": "Select",
+  "session.new.location.otherProjects": "Other projects",
   "session.new.location.worktrees": "Worktrees",
   "session.new.location.back": "Back to projects",
   "session.new.location.servers": "Servers",