diff --git a/packages/app/e2e/regression/new-session.spec.ts b/packages/app/e2e/regression/new-session.spec.ts
index 7246ebd6d66..6e86bdcc090 100644
--- a/packages/app/e2e/regression/new-session.spec.ts
+++ b/packages/app/e2e/regression/new-session.spec.ts
@@ -584,24 +584,24 @@ test("the location dialog lists every ready server's projects in one list and ta
   const search = dialog.getByRole("combobox")
   await expect(search).toBeFocused()
   const options = dialog.getByRole("option")
-  const rows = dialog.locator(".command-palette-results").getByRole("option")
   const add = options.filter({ hasText: "Add project" })
+  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 })
   // 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 pinned above the scrolling list and its heading, yet the first project is still the opening row,
-  // not the draft's current project (the second row).
-  await expect(options.first()).toHaveText("Add project")
+  // "Add project" is the first row of the scrolling list, under its 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 heading = await dialog.getByText("Projects", { exact: true }).boundingBox()
 
-      return row && heading ? row.y + row.height <= heading.y : false
+      return row && heading ? row.y >= heading.y + heading.height : false
     })
     .toBe(true)
   await expect(rows.nth(0)).toHaveAttribute("aria-selected", "true")
@@ -612,25 +612,28 @@ test("the location dialog lists every ready server's projects in one list and ta
   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)")
-  // The pinned row shares the list's width and icon column.
+  // "Add project" shares the project rows' width and icon column.
   await expect
     .poll(async () => {
       const field = await dialog.locator('[data-component="text-input-v2"]').boundingBox()
       const row = await rows.nth(0).boundingBox()
-      const pinned = await add.boundingBox()
+      const first = await add.boundingBox()
       const icon = await add.locator(".command-palette-row-icon").boundingBox()
       const avatar = await rows.nth(0).locator('[data-component="project-avatar-v2"]').boundingBox()
 
-      return field && row && pinned && icon && avatar
-        ? Math.max(Math.abs(field.width - row.width), Math.abs(pinned.width - row.width), Math.abs(icon.x - avatar.x))
+      return field && row && first && icon && avatar
+        ? Math.max(Math.abs(field.width - row.width), Math.abs(first.width - row.width), Math.abs(icon.x - avatar.x))
         : Infinity
     })
     .toBeLessThanOrEqual(1)
 
-  // Searching narrows the projects and keeps "Add project" pinned.
+  // Searching narrows the projects and keeps "Add project" first; with no match it is the active row.
   await search.fill("apollo")
   await expect(names).toHaveText(["opencodeapollo", "sstapollo"])
-  await expect(add).toBeVisible()
+  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")
 
   // The worktree step keeps the server's tag beside the project.
   await search.fill("opencode")
@@ -656,7 +659,7 @@ test("the location dialog lists every ready server's projects in one list and ta
   await expect(search).toHaveValue("opencode")
   await expect(rows.nth(0)).toHaveAttribute("aria-selected", "true")
 
-  // ArrowUp from the first project reaches the pinned row above it; adding a project picks one of the ready servers
+  // ArrowUp from the first project reaches "Add project" above it; 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")
diff --git a/packages/app/src/new-session/location/dialog.css b/packages/app/src/new-session/location/dialog.css
index 716a40c19b6..37efdecc2e9 100644
--- a/packages/app/src/new-session/location/dialog.css
+++ b/packages/app/src/new-session/location/dialog.css
@@ -66,19 +66,3 @@
   text-overflow: ellipsis;
   white-space: nowrap;
 }
-
-.new-session-location-list {
-  display: flex;
-  min-height: 0;
-  flex: 1;
-  flex-direction: column;
-}
-
-/* "Add project" stays above the scrolling project list. */
-.new-session-location-pinned {
-  display: flex;
-  flex-shrink: 0;
-  flex-direction: column;
-  padding: 0 6px 6px;
-  border-bottom: 0.5px solid var(--v2-border-border-muted);
-}
diff --git a/packages/app/src/new-session/location/dialog.tsx b/packages/app/src/new-session/location/dialog.tsx
index 3f8924a6874..ca6fbd3d358 100644
--- a/packages/app/src/new-session/location/dialog.tsx
+++ b/packages/app/src/new-session/location/dialog.tsx
@@ -123,8 +123,8 @@ function NewSessionLocationDialog(props: {
 
   const addEntry: LocationEntry = { id: "add", type: "add" }
 
-  // Remote projects also match their server's name, which their tag shows. "Add project" is pinned above the list but
-  // navigates last, so the first project stays the opening row and ArrowUp from it wraps to "Add project" above.
+  // Remote projects also match their server's name, which their tag shows. "Add project" is listed first 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()
@@ -166,11 +166,9 @@ function NewSessionLocationDialog(props: {
     return projectEntries()
   }
 
-  const pinned = () => !props.projectsOnly && !store.drilled && !store.picking
-
   const drillable = (project: PromptProject) => !props.projectsOnly && !!project.id && project.vcs === "git"
 
-  const listEntries = () => entries().filter((entry) => entry.type !== "add")
+  const rows = () => (entries().at(-1) === addEntry ? [addEntry, ...entries().slice(0, -1)] : entries())
 
   const title = () => {
     if (store.drilled) return language.t("session.new.workspace.runIn")
@@ -309,72 +307,6 @@ 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">
       <DialogBody class="command-palette-body">
@@ -421,27 +353,92 @@ function NewSessionLocationDialog(props: {
             onKeyDown={handleKeyDown}
           />
         </div>
-        <div id={typeahead.listID} class="new-session-location-list" role="listbox">
-          <Show when={pinned()}>
-            <div class="new-session-location-pinned">{option(addEntry)}</div>
-          </Show>
-          <div class="command-palette-scroll" data-scrollable ref={(el) => (resultsRef = el)}>
-            <div class="command-palette-results">
-              <Show
-                when={listEntries().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>
-                }
-              >
-                <div class="command-palette-group">
-                  <div class="command-palette-group-title">{title()}</div>
-                  <For each={listEntries()}>{option}</For>
+        <div class="command-palette-scroll" data-scrollable ref={(el) => (resultsRef = el)}>
+          <div id={typeahead.listID} class="command-palette-results" role="listbox">
+            <Show
+              when={rows().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>
-              </Show>
-            </div>
+              }
+            >
+              <div class="command-palette-group">
+                <div class="command-palette-group-title">{title()}</div>
+                <For each={rows()}>
+                  {(entry) => (
+                    <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>
+                  )}
+                </For>
+              </div>
+            </Show>
           </div>
         </div>
         <Show when={!props.projectsOnly}>