diff --git a/crates/agent_ui/src/agent_diff.rs b/crates/agent_ui/src/agent_diff.rs
index c4dc359093..e1b3ef0910 100644
--- a/crates/agent_ui/src/agent_diff.rs
+++ b/crates/agent_ui/src/agent_diff.rs
@@ -30,7 +30,7 @@ use std::{
     sync::Arc,
     time::Duration,
 };
-use ui::{IconButtonShape, KeyBinding, Tooltip, prelude::*, vertical_divider};
+use ui::{ButtonSize, IconButtonShape, KeyBinding, Tooltip, prelude::*, vertical_divider};
 use util::ResultExt;
 use workspace::{
     Item, ItemHandle, ItemNavHistory, ToolbarItemEvent, ToolbarItemLocation, ToolbarItemView,
@@ -796,17 +796,18 @@ fn render_diff_hunk_controls(
         .mr_0p5()
         .gap_1()
         .px_0p5()
-        .pb_1()
+        .py_0p5()
         .border_x_1()
-        .border_b_1()
+        .border_t_1()
         .border_color(cx.theme().colors().border)
-        .rounded_b_md()
+        .rounded_t_md()
         .bg(cx.theme().colors().editor_background)
         .gap_1()
         .block_mouse_except_scroll()
         .shadow_md()
         .children(vec![
             Button::new(("reject", row as u64), "Reject")
+                .size(ButtonSize::Compact)
                 .disabled(is_created_file)
                 .key_binding(
                     KeyBinding::for_action_in(
@@ -835,6 +836,7 @@ fn render_diff_hunk_controls(
                     }
                 }),
             Button::new(("keep", row as u64), "Keep")
+                .size(ButtonSize::Compact)
                 .key_binding(
                     KeyBinding::for_action_in(&Keep, &editor.read(cx).focus_handle(cx), window, cx)
                         .map(|kb| kb.size(rems_from_px(12.))),
diff --git a/crates/editor/src/editor.rs b/crates/editor/src/editor.rs
index 3516eff45c..1e5e33529f 100644
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -23656,17 +23656,18 @@ fn render_diff_hunk_controls(
         .mr_1()
         .gap_1()
         .px_0p5()
-        .pb_1()
+        .py_0p5()
         .border_x_1()
-        .border_b_1()
+        .border_t_1()
         .border_color(cx.theme().colors().border_variant)
-        .rounded_b_lg()
+        .rounded_t_lg()
         .bg(cx.theme().colors().editor_background)
         .gap_1()
         .block_mouse_except_scroll()
         .shadow_md()
         .child(if status.has_secondary_hunk() {
             Button::new(("stage", row as u64), "Stage")
+                .size(ButtonSize::Compact)
                 .alpha(if status.is_pending() { 0.66 } else { 1.0 })
                 .tooltip({
                     let focus_handle = editor.focus_handle(cx);
@@ -23694,6 +23695,7 @@ fn render_diff_hunk_controls(
                 })
         } else {
             Button::new(("unstage", row as u64), "Unstage")
+                .size(ButtonSize::Compact)
                 .alpha(if status.is_pending() { 0.66 } else { 1.0 })
                 .tooltip({
                     let focus_handle = editor.focus_handle(cx);
@@ -23722,6 +23724,7 @@ fn render_diff_hunk_controls(
         })
         .child(
             Button::new(("restore", row as u64), "Restore")
+                .size(ButtonSize::Compact)
                 .tooltip({
                     let focus_handle = editor.focus_handle(cx);
                     move |window, cx| {
diff --git a/crates/editor/src/element.rs b/crates/editor/src/element.rs
index 7e77f113ac..aab12f5ff2 100644
--- a/crates/editor/src/element.rs
+++ b/crates/editor/src/element.rs
@@ -4985,8 +4985,13 @@ impl EditorElement {
                     .iter()
                     .any(|p| p.map_or(false, |p| display_row_range.contains(&p.row())))
                 {
-                    let y = display_row_range.start.as_f32() * line_height
-                        + text_hitbox.bounds.top()
+                    // Position controls at the end of the previous line to avoid covering diff content
+                    let control_row = if display_row_range.start.0 > 0 {
+                        display_row_range.start.0 - 1
+                    } else {
+                        display_row_range.start.0
+                    };
+                    let y = control_row as f32 * line_height + text_hitbox.bounds.top()
                         - scroll_pixel_position.y;
 
                     let mut element = render_diff_hunk_controls(