diff --git a/crates/agent_ui/src/agent_panel.rs b/crates/agent_ui/src/agent_panel.rs
index d2ff6aa4f3..dd19dcb44c 100644
--- a/crates/agent_ui/src/agent_panel.rs
+++ b/crates/agent_ui/src/agent_panel.rs
@@ -300,6 +300,10 @@ impl ActiveView {
                 MessageEditorEvent::Changed | MessageEditorEvent::EstimatedTokenCount => {
                     cx.notify();
                 }
+                MessageEditorEvent::DismissOnboarding => {
+                    OnboardingUpsell::set_dismissed(true, cx);
+                    cx.notify();
+                }
                 MessageEditorEvent::ScrollThreadToBottom => match &this.active_view {
                     ActiveView::Thread { thread, .. } => {
                         thread.update(cx, |thread, cx| {
@@ -655,21 +659,6 @@ impl AgentPanel {
             )
         });
 
-        let message_editor = cx.new(|cx| {
-            MessageEditor::new(
-                fs.clone(),
-                workspace.clone(),
-                message_editor_context_store.clone(),
-                prompt_store.clone(),
-                thread_store.downgrade(),
-                context_store.downgrade(),
-                Some(history_store.downgrade()),
-                thread.clone(),
-                window,
-                cx,
-            )
-        });
-
         let acp_history_store = cx.new(|cx| agent2::HistoryStore::new(context_store.clone(), cx));
         let acp_history = cx.new(|cx| AcpThreadHistory::new(acp_history_store.clone(), window, cx));
         cx.subscribe_in(
@@ -710,7 +699,24 @@ impl AgentPanel {
 
         let panel_type = AgentSettings::get_global(cx).default_view;
         let active_view = match panel_type {
-            DefaultView::Thread => ActiveView::thread(active_thread, message_editor, window, cx),
+            DefaultView::Thread => {
+                let message_editor = cx.new(|cx| {
+                    MessageEditor::new(
+                        fs.clone(),
+                        workspace.clone(),
+                        message_editor_context_store.clone(),
+                        prompt_store.clone(),
+                        thread_store.downgrade(),
+                        context_store.downgrade(),
+                        Some(history_store.downgrade()),
+                        thread.clone(),
+                        window,
+                        cx,
+                    )
+                });
+
+                ActiveView::thread(active_thread, message_editor, window, cx)
+            }
             DefaultView::TextThread => {
                 let context =
                     context_store.update(cx, |context_store, cx| context_store.create(cx));
@@ -1857,6 +1863,8 @@ impl AgentPanel {
         window: &mut Window,
         cx: &mut Context<Self>,
     ) {
+        OnboardingUpsell::set_dismissed(true, cx);
+
         match agent {
             AgentType::Zed => {
                 window.dispatch_action(
diff --git a/crates/agent_ui/src/message_editor.rs b/crates/agent_ui/src/message_editor.rs
index bed10e90a7..db8d158c15 100644
--- a/crates/agent_ui/src/message_editor.rs
+++ b/crates/agent_ui/src/message_editor.rs
@@ -217,6 +217,7 @@ impl MessageEditor {
             cx.subscribe_in(&context_strip, window, Self::handle_context_strip_event),
             cx.subscribe(&editor, |this, _, event: &EditorEvent, cx| {
                 if event == &EditorEvent::BufferEdited {
+                    cx.emit(MessageEditorEvent::DismissOnboarding);
                     this.handle_message_changed(cx)
                 }
             }),
@@ -1416,6 +1417,7 @@ impl MessageEditor {
     }
 
     fn message_or_context_changed(&mut self, debounce: bool, cx: &mut Context<Self>) {
+        // todo! Might want to use this instead of dismiss onboarding event
         cx.emit(MessageEditorEvent::Changed);
         self.update_token_count_task.take();
 
@@ -1639,6 +1641,7 @@ pub enum MessageEditorEvent {
     EstimatedTokenCount,
     Changed,
     ScrollThreadToBottom,
+    DismissOnboarding,
 }
 
 impl Focusable for MessageEditor {