diff --git a/Cargo.lock b/Cargo.lock
index 64470b5abe..45684b8920 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -20,7 +20,9 @@ dependencies = [
  "itertools 0.14.0",
  "language",
  "markdown",
+ "parking_lot",
  "project",
+ "rand 0.8.5",
  "serde",
  "serde_json",
  "settings",
diff --git a/crates/acp_thread/Cargo.toml b/crates/acp_thread/Cargo.toml
index 011f26f364..cd7a5c3808 100644
--- a/crates/acp_thread/Cargo.toml
+++ b/crates/acp_thread/Cargo.toml
@@ -41,7 +41,9 @@ async-pipe.workspace = true
 env_logger.workspace = true
 gpui = { workspace = true, "features" = ["test-support"] }
 indoc.workspace = true
+parking_lot.workspace = true
 project = { workspace = true, "features" = ["test-support"] }
+rand.workspace = true
 tempfile.workspace = true
 util.workspace = true
 settings.workspace = true
diff --git a/crates/acp_thread/src/acp_thread.rs b/crates/acp_thread/src/acp_thread.rs
index 7a10f3bd72..0996dee723 100644
--- a/crates/acp_thread/src/acp_thread.rs
+++ b/crates/acp_thread/src/acp_thread.rs
@@ -671,7 +671,18 @@ impl AcpThread {
         for entry in self.entries.iter().rev() {
             match entry {
                 AgentThreadEntry::UserMessage(_) => return false,
-                AgentThreadEntry::ToolCall(call) if call.diffs().next().is_some() => return true,
+                AgentThreadEntry::ToolCall(
+                    call @ ToolCall {
+                        status:
+                            ToolCallStatus::Allowed {
+                                status:
+                                    acp::ToolCallStatus::InProgress | acp::ToolCallStatus::Pending,
+                            },
+                        ..
+                    },
+                ) if call.diffs().next().is_some() => {
+                    return true;
+                }
                 AgentThreadEntry::ToolCall(_) | AgentThreadEntry::AssistantMessage(_) => {}
             }
         }
@@ -1231,10 +1242,15 @@ mod tests {
     use agentic_coding_protocol as acp_old;
     use anyhow::anyhow;
     use async_pipe::{PipeReader, PipeWriter};
-    use futures::{channel::mpsc, future::LocalBoxFuture, select};
-    use gpui::{AsyncApp, TestAppContext};
+    use futures::{
+        channel::mpsc,
+        future::{LocalBoxFuture, try_join_all},
+        select,
+    };
+    use gpui::{AsyncApp, TestAppContext, WeakEntity};
     use indoc::indoc;
     use project::FakeFs;
+    use rand::Rng as _;
     use serde_json::json;
     use settings::SettingsStore;
     use smol::{future::BoxedLocal, stream::StreamExt as _};
@@ -1562,6 +1578,42 @@ mod tests {
         });
     }
 
+    #[gpui::test]
+    async fn test_no_pending_edits_if_tool_calls_are_completed(cx: &mut TestAppContext) {
+        init_test(cx);
+        let fs = FakeFs::new(cx.background_executor.clone());
+        fs.insert_tree(path!("/test"), json!({})).await;
+        let project = Project::test(fs, [path!("/test").as_ref()], cx).await;
+
+        let connection = Rc::new(StubAgentConnection::new(vec![
+            acp::SessionUpdate::ToolCall(acp::ToolCall {
+                id: acp::ToolCallId("test".into()),
+                label: "Label".into(),
+                kind: acp::ToolKind::Edit,
+                status: acp::ToolCallStatus::Completed,
+                content: vec![acp::ToolCallContent::Diff {
+                    diff: acp::Diff {
+                        path: "/test/test.txt".into(),
+                        old_text: None,
+                        new_text: "foo".into(),
+                    },
+                }],
+                locations: vec![],
+                raw_input: None,
+            }),
+        ]));
+
+        let thread = connection
+            .new_thread(project, Path::new(path!("/test")), &mut cx.to_async())
+            .await
+            .unwrap();
+        cx.update(|cx| thread.update(cx, |thread, cx| thread.send(vec!["Hi".into()], cx)))
+            .await
+            .unwrap();
+
+        assert!(cx.read(|cx| !thread.read(cx).has_pending_edit_tool_calls()));
+    }
+
     async fn run_until_first_tool_call(
         thread: &Entity<AcpThread>,
         cx: &mut TestAppContext,
@@ -1589,6 +1641,96 @@ mod tests {
         }
     }
 
+    #[derive(Clone, Default)]
+    struct StubAgentConnection {
+        sessions: Arc<parking_lot::Mutex<HashMap<acp::SessionId, WeakEntity<AcpThread>>>>,
+        permission_requests: HashMap<acp::ToolCallId, Vec<acp::PermissionOption>>,
+        updates: Vec<acp::SessionUpdate>,
+    }
+
+    impl StubAgentConnection {
+        fn new(updates: Vec<acp::SessionUpdate>) -> Self {
+            Self {
+                updates,
+                permission_requests: HashMap::default(),
+                sessions: Arc::default(),
+            }
+        }
+    }
+
+    impl AgentConnection for StubAgentConnection {
+        fn name(&self) -> &'static str {
+            "StubAgentConnection"
+        }
+
+        fn new_thread(
+            self: Rc<Self>,
+            project: Entity<Project>,
+            _cwd: &Path,
+            cx: &mut gpui::AsyncApp,
+        ) -> Task<gpui::Result<Entity<AcpThread>>> {
+            let session_id = acp::SessionId(
+                rand::thread_rng()
+                    .sample_iter(&rand::distributions::Alphanumeric)
+                    .take(7)
+                    .map(char::from)
+                    .collect::<String>()
+                    .into(),
+            );
+            let thread = cx
+                .new(|cx| AcpThread::new(self.clone(), project, session_id.clone(), cx))
+                .unwrap();
+            self.sessions.lock().insert(session_id, thread.downgrade());
+            Task::ready(Ok(thread))
+        }
+
+        fn authenticate(&self, _cx: &mut App) -> Task<gpui::Result<()>> {
+            unimplemented!()
+        }
+
+        fn prompt(&self, params: acp::PromptArguments, cx: &mut App) -> Task<gpui::Result<()>> {
+            let sessions = self.sessions.lock();
+            let thread = sessions.get(&params.session_id).unwrap();
+            let mut tasks = vec![];
+            for update in &self.updates {
+                let thread = thread.clone();
+                let update = update.clone();
+                let permission_request = if let acp::SessionUpdate::ToolCall(tool_call) = &update
+                    && let Some(options) = self.permission_requests.get(&tool_call.id)
+                {
+                    Some((tool_call.clone(), options.clone()))
+                } else {
+                    None
+                };
+                let task = cx.spawn(async move |cx| {
+                    if let Some((tool_call, options)) = permission_request {
+                        let permission = thread.update(cx, |thread, cx| {
+                            thread.request_tool_call_permission(
+                                tool_call.clone(),
+                                options.clone(),
+                                cx,
+                            )
+                        })?;
+                        permission.await?;
+                    }
+                    thread.update(cx, |thread, cx| {
+                        thread.handle_session_update(update.clone(), cx).unwrap();
+                    })?;
+                    anyhow::Ok(())
+                });
+                tasks.push(task);
+            }
+            cx.spawn(async move |_| {
+                try_join_all(tasks).await?;
+                Ok(())
+            })
+        }
+
+        fn cancel(&self, _session_id: &acp::SessionId, _cx: &mut App) {
+            unimplemented!()
+        }
+    }
+
     pub fn fake_acp_thread(
         project: Entity<Project>,
         cx: &mut TestAppContext,