diff --git a/crates/editor/src/code_context_menus.rs b/crates/editor/src/code_context_menus.rs
index 2e3963f85f..c84e021e0b 100644
--- a/crates/editor/src/code_context_menus.rs
+++ b/crates/editor/src/code_context_menus.rs
@@ -1,8 +1,8 @@
 use fuzzy::{StringMatch, StringMatchCandidate};
 use gpui::{
-    div, px, uniform_list, AnyElement, BackgroundExecutor, Div, FontWeight, ListSizingBehavior,
-    Model, ScrollStrategy, SharedString, Size, StrikethroughStyle, StyledText,
-    UniformListScrollHandle, ViewContext, WeakView,
+    div, pulsating_between, px, uniform_list, Animation, AnimationExt, AnyElement,
+    BackgroundExecutor, Div, FontWeight, ListSizingBehavior, Model, ScrollStrategy, SharedString,
+    Size, StrikethroughStyle, StyledText, UniformListScrollHandle, ViewContext, WeakView,
 };
 use language::Buffer;
 use language::{CodeLabel, Documentation};
@@ -10,6 +10,8 @@ use lsp::LanguageServerId;
 use multi_buffer::{Anchor, ExcerptId};
 use ordered_float::OrderedFloat;
 use project::{CodeAction, Completion, TaskSourceKind};
+use settings::Settings;
+use std::time::Duration;
 use std::{
     cell::RefCell,
     cmp::{min, Reverse},
@@ -333,7 +335,6 @@ impl CompletionsMenu {
                 entries[0] = hint;
             }
             _ => {
-                self.selected_item += 1;
                 entries.insert(0, hint);
             }
         }
@@ -461,10 +462,7 @@ impl CompletionsMenu {
 
                     len
                 }
-                CompletionEntry::InlineCompletionHint(InlineCompletionMenuHint {
-                    provider_name,
-                    ..
-                }) => provider_name.len(),
+                CompletionEntry::InlineCompletionHint(hint) => hint.label().chars().count(),
             })
             .map(|(ix, _)| ix);
         drop(completions);
@@ -488,6 +486,12 @@ impl CompletionsMenu {
                     .enumerate()
                     .map(|(ix, mat)| {
                         let item_ix = start_ix + ix;
+                        let buffer_font = theme::ThemeSettings::get_global(cx).buffer_font.clone();
+                        let base_label = h_flex()
+                            .gap_1()
+                            .child(div().font(buffer_font.clone()).child("Zed AI"))
+                            .child(div().px_0p5().child("/").opacity(0.2));
+
                         match mat {
                             CompletionEntry::Match(mat) => {
                                 let candidate_id = mat.candidate_id;
@@ -571,20 +575,57 @@ impl CompletionsMenu {
                                         .end_slot::<Label>(documentation_label),
                                 )
                             }
-                            CompletionEntry::InlineCompletionHint(InlineCompletionMenuHint {
-                                provider_name,
-                                ..
-                            }) => div().min_w(px(250.)).max_w(px(500.)).child(
+                            CompletionEntry::InlineCompletionHint(
+                                hint @ InlineCompletionMenuHint::None,
+                            ) => div().min_w(px(250.)).max_w(px(500.)).child(
                                 ListItem::new("inline-completion")
                                     .inset(true)
                                     .toggle_state(item_ix == selected_item)
                                     .start_slot(Icon::new(IconName::ZedPredict))
                                     .child(
-                                        StyledText::new(format!(
-                                            "{} Completion",
-                                            SharedString::new_static(provider_name)
-                                        ))
-                                        .with_highlights(&style.text, None),
+                                        base_label.child(
+                                            StyledText::new(hint.label())
+                                                .with_highlights(&style.text, None),
+                                        ),
+                                    ),
+                            ),
+                            CompletionEntry::InlineCompletionHint(
+                                hint @ InlineCompletionMenuHint::Loading,
+                            ) => div().min_w(px(250.)).max_w(px(500.)).child(
+                                ListItem::new("inline-completion")
+                                    .inset(true)
+                                    .toggle_state(item_ix == selected_item)
+                                    .start_slot(Icon::new(IconName::ZedPredict))
+                                    .child(base_label.child({
+                                        let text_style = style.text.clone();
+                                        StyledText::new(hint.label())
+                                            .with_highlights(&text_style, None)
+                                            .with_animation(
+                                                "pulsating-label",
+                                                Animation::new(Duration::from_secs(1))
+                                                    .repeat()
+                                                    .with_easing(pulsating_between(0.4, 0.8)),
+                                                move |text, delta| {
+                                                    let mut text_style = text_style.clone();
+                                                    text_style.color =
+                                                        text_style.color.opacity(delta);
+                                                    text.with_highlights(&text_style, None)
+                                                },
+                                            )
+                                    })),
+                            ),
+                            CompletionEntry::InlineCompletionHint(
+                                hint @ InlineCompletionMenuHint::Loaded { .. },
+                            ) => div().min_w(px(250.)).max_w(px(500.)).child(
+                                ListItem::new("inline-completion")
+                                    .inset(true)
+                                    .toggle_state(item_ix == selected_item)
+                                    .start_slot(Icon::new(IconName::ZedPredict))
+                                    .child(
+                                        base_label.child(
+                                            StyledText::new(hint.label())
+                                                .with_highlights(&style.text, None),
+                                        ),
                                     )
                                     .on_click(cx.listener(move |editor, _event, cx| {
                                         cx.stop_propagation();
@@ -641,19 +682,20 @@ impl CompletionsMenu {
                     Documentation::Undocumented => return None,
                 }
             }
-            CompletionEntry::InlineCompletionHint(hint) => match &hint.text {
-                InlineCompletionText::Edit { text, highlights } => div()
-                    .mx_1()
-                    .rounded(px(6.))
-                    .bg(cx.theme().colors().editor_background)
-                    .border_1()
-                    .border_color(cx.theme().colors().border_variant)
-                    .child(
-                        gpui::StyledText::new(text.clone())
-                            .with_highlights(&style.text, highlights.clone()),
-                    ),
-                InlineCompletionText::Move(text) => div().child(text.clone()),
-            },
+            CompletionEntry::InlineCompletionHint(InlineCompletionMenuHint::Loaded { text }) => {
+                match text {
+                    InlineCompletionText::Edit { text, highlights } => div()
+                        .mx_1()
+                        .rounded_md()
+                        .bg(cx.theme().colors().editor_background)
+                        .child(
+                            gpui::StyledText::new(text.clone())
+                                .with_highlights(&style.text, highlights.clone()),
+                        ),
+                    InlineCompletionText::Move(text) => div().child(text.clone()),
+                }
+            }
+            CompletionEntry::InlineCompletionHint(_) => return None,
         };
 
         Some(
diff --git a/crates/editor/src/editor.rs b/crates/editor/src/editor.rs
index 119f97259d..fbfaa0bf59 100644
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -459,9 +459,21 @@ pub fn make_suggestion_styles(cx: &WindowContext) -> InlineCompletionStyles {
 type CompletionId = usize;
 
 #[derive(Debug, Clone)]
-struct InlineCompletionMenuHint {
-    provider_name: &'static str,
-    text: InlineCompletionText,
+enum InlineCompletionMenuHint {
+    Loading,
+    Loaded { text: InlineCompletionText },
+    None,
+}
+
+impl InlineCompletionMenuHint {
+    pub fn label(&self) -> &'static str {
+        match self {
+            InlineCompletionMenuHint::Loading | InlineCompletionMenuHint::Loaded { .. } => {
+                "Edit Prediction"
+            }
+            InlineCompletionMenuHint::None => "No Prediction",
+        }
+    }
 }
 
 #[derive(Clone, Debug)]
@@ -3828,6 +3840,26 @@ impl Editor {
     ) -> Option<Task<std::result::Result<(), anyhow::Error>>> {
         use language::ToOffset as _;
 
+        {
+            let context_menu = self.context_menu.borrow();
+            if let CodeContextMenu::Completions(menu) = context_menu.as_ref()? {
+                let entries = menu.entries.borrow();
+                let entry = entries.get(item_ix.unwrap_or(menu.selected_item));
+                match entry {
+                    Some(CompletionEntry::InlineCompletionHint(
+                        InlineCompletionMenuHint::Loading,
+                    )) => return Some(Task::ready(Ok(()))),
+                    Some(CompletionEntry::InlineCompletionHint(InlineCompletionMenuHint::None)) => {
+                        drop(entries);
+                        drop(context_menu);
+                        self.context_menu_next(&Default::default(), cx);
+                        return Some(Task::ready(Ok(())));
+                    }
+                    _ => {}
+                }
+            }
+        }
+
         let completions_menu =
             if let CodeContextMenu::Completions(menu) = self.hide_context_menu(cx)? {
                 menu
@@ -3838,7 +3870,7 @@ impl Editor {
         let entries = completions_menu.entries.borrow();
         let mat = entries.get(item_ix.unwrap_or(completions_menu.selected_item))?;
         let mat = match mat {
-            CompletionEntry::InlineCompletionHint { .. } => {
+            CompletionEntry::InlineCompletionHint(_) => {
                 self.accept_inline_completion(&AcceptInlineCompletion, cx);
                 cx.stop_propagation();
                 return Some(Task::ready(Ok(())));
@@ -4912,8 +4944,8 @@ impl Editor {
         &mut self,
         cx: &mut ViewContext<Self>,
     ) -> Option<InlineCompletionMenuHint> {
+        let provider = self.inline_completion_provider()?;
         if self.has_active_inline_completion() {
-            let provider_name = self.inline_completion_provider()?.display_name();
             let editor_snapshot = self.snapshot(cx);
 
             let text = match &self.active_inline_completion.as_ref()?.completion {
@@ -4930,12 +4962,11 @@ impl Editor {
                 }
             };
 
-            Some(InlineCompletionMenuHint {
-                provider_name,
-                text,
-            })
+            Some(InlineCompletionMenuHint::Loaded { text })
+        } else if provider.is_refreshing(cx) {
+            Some(InlineCompletionMenuHint::Loading)
         } else {
-            None
+            Some(InlineCompletionMenuHint::None)
         }
     }