diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/claudeChatSessionContentProvider.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/claudeChatSessionContentProvider.ts
index fe1430a79a7..233ae18e424 100644
--- a/extensions/copilot/src/extension/chatSessions/vscode-node/claudeChatSessionContentProvider.ts
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/claudeChatSessionContentProvider.ts
@@ -681,6 +681,10 @@ export class ClaudeChatSessionItemController extends Disposable {
 			lastRequestEnded: session.lastRequestEnded,
 		};
 		item.iconPath = new vscode.ThemeIcon('claude');
+		if (session.cwd) {
+			// Agents app needs this to decide the working directory for the session
+			item.metadata = { workingDirectoryPath: session.cwd };
+		}
 		return item;
 	}
 
diff --git a/extensions/copilot/src/extension/chatSessions/vscode-node/test/claudeChatSessionContentProvider.spec.ts b/extensions/copilot/src/extension/chatSessions/vscode-node/test/claudeChatSessionContentProvider.spec.ts
index ea01bc986cc..2bd2a3126ab 100644
--- a/extensions/copilot/src/extension/chatSessions/vscode-node/test/claudeChatSessionContentProvider.spec.ts
+++ b/extensions/copilot/src/extension/chatSessions/vscode-node/test/claudeChatSessionContentProvider.spec.ts
@@ -1409,6 +1409,30 @@ describe('ClaudeChatSessionItemController', () => {
 			// timing.created is derived from created
 			expect(item!.timing!.created).toBe(new Date('2024-06-01T12:00:00Z').getTime());
 		});
+
+		it('sets metadata with workingDirectoryPath when session has cwd', async () => {
+			const diskSession: IClaudeCodeSessionInfo = {
+				id: 'cwd-session',
+				label: 'CWD Session',
+				created: Date.now(),
+				lastRequestEnded: Date.now(),
+				folderName: 'my-project',
+				cwd: '/home/user/my-project',
+			};
+			vi.mocked(mockSessionService.getSession).mockResolvedValue(diskSession as any);
+
+			await controller.updateItemStatus('cwd-session', ChatSessionStatus.InProgress, 'Prompt');
+
+			const item = getItem('cwd-session');
+			expect(item!.metadata).toEqual({ workingDirectoryPath: '/home/user/my-project' });
+		});
+
+		it('does not set metadata when session has no cwd', async () => {
+			await controller.updateItemStatus('no-cwd-session', ChatSessionStatus.InProgress, 'Prompt');
+
+			const item = getItem('no-cwd-session');
+			expect(item!.metadata).toBeUndefined();
+		});
 	});
 
 	// #endregion
diff --git a/src/vs/sessions/SESSIONS_PROVIDER.md b/src/vs/sessions/SESSIONS_PROVIDER.md
index dcc1f640213..1063819e6c0 100644
--- a/src/vs/sessions/SESSIONS_PROVIDER.md
+++ b/src/vs/sessions/SESSIONS_PROVIDER.md
@@ -79,6 +79,8 @@ The common session interface exposed by all providers. It is a self-contained fa
 - `repositories: ISessionRepository[]` — One or more repositories
 - `requiresWorkspaceTrust: boolean` — Whether workspace trust is required to operate
 
+**Workspace label and session grouping:** The sessions list groups sessions by `workspace.label`. Sessions whose workspace is `undefined` or whose label is empty appear under "Unknown". For the `CopilotChatSessionsProvider`, the workspace label is derived from session metadata via `getRepositoryName()` (in `agentSessionsViewer.ts`), which checks these metadata keys in priority order: `remoteAgentHost`, `owner`+`name`, `repositoryNwo`, `repository`, `repositoryUrl`, `repositoryPath`, `worktreePath`, `workingDirectoryPath`, then `badge`. Extension-side `ChatSessionContentProvider` implementations must set `item.metadata` with at least `workingDirectoryPath` (for local sessions) so that sessions are grouped correctly.
+
 **`ISessionRepository`** — A repository within a workspace:
 - `uri: URI` — Source repository URI (`file://` or `github-remote-file://`)
 - `workingDirectory: URI | undefined` — Worktree or checkout path
diff --git a/src/vs/sessions/contrib/copilotChatSessions/COPILOT_CHAT_SESSIONS_PROVIDER.md b/src/vs/sessions/contrib/copilotChatSessions/COPILOT_CHAT_SESSIONS_PROVIDER.md
index b94223b688f..f62bc4c2fc1 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/COPILOT_CHAT_SESSIONS_PROVIDER.md
+++ b/src/vs/sessions/contrib/copilotChatSessions/COPILOT_CHAT_SESSIONS_PROVIDER.md
@@ -2,7 +2,7 @@
 
 **File:** `src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsProvider.ts`
 
-The default sessions provider, registered with ID `'default-copilot'`. Wraps the existing agent session infrastructure into the extensible provider model. Supports two session types: **Copilot CLI** (local) and **Copilot Cloud** (remote).
+The default sessions provider, registered with ID `'default-copilot'`. Wraps the existing agent session infrastructure into the extensible provider model. Supports three session types: **Copilot CLI** (local), **Copilot Cloud** (remote), and **Claude** (local, gated by `sessions.chatSessions.claude.enabled`).
 
 ## Registration
 
@@ -28,7 +28,7 @@ class DefaultSessionsProviderContribution extends Disposable {
 | `id` | `'default-copilot'` |
 | `label` | `'Copilot Chat'` |
 | `icon` | `Codicon.copilot` |
-| `sessionTypes` | `[CopilotCLISessionType, CopilotCloudSessionType]` |
+| `sessionTypes` | `[CopilotCLISessionType, CopilotCloudSessionType]` (+ `ClaudeCodeSessionType` when enabled) |
 
 ## Browse Actions
 
@@ -53,6 +53,12 @@ When `createNewSession(workspace)` is called, the provider creates one of two co
 - Provides `getModelOptionGroup()`, `getOtherOptionGroups()` for UI to render provider-specific pickers
 - Watches context key changes to dynamically show/hide option groups
 
+**`ClaudeCodeNewSession`** — For Claude agent sessions (local `file://` workspaces):
+- Implements `ISession` with simplified configuration (Claude manages its own worktrees and branches)
+- No-ops for `setIsolationMode()` and `setBranch()`
+- `setOption()` writes to `selectedOptions` map; options are propagated to `IChatSessionsService` during `_sendFirstChat()` via `updateSessionOptions()`
+- Gated by the `sessions.chatSessions.claude.enabled` setting (default: `false`)
+
 ## `AgentSessionAdapter` — Wrapping Existing Sessions
 
 Adapts an existing `IAgentSession` from the chat layer into the `ISession` facade:
@@ -72,7 +78,7 @@ The provider maintains a `Map<string, AgentSessionAdapter>` cache keyed by resou
 
 ## Send Flow
 
-1. Validate the session is a current new session (`CopilotCLISession` or `RemoteNewSession`)
+1. Validate the session is a current new session (`CopilotCLISession`, `RemoteNewSession`, or `ClaudeCodeNewSession`)
 2. For the first chat, call `_sendFirstChat()`:
    a. Resolve mode, permission level, and send options from session configuration
    b. Open the chat widget via `IChatWidgetService.openSession()`
@@ -84,3 +90,70 @@ The provider maintains a `Map<string, AgentSessionAdapter>` cache keyed by resou
 3. For subsequent chats (if `capabilities.supportsMultipleChats` enabled on the session), call `_sendSubsequentChat()`
 4. Wrap the new agent session as `AgentSessionAdapter` and return it
 5. Clear the current new session reference
+
+## New-Session Picker Contribution Model
+
+**File:** `src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsActions.ts`
+
+The welcome/new-session view (`NewChatInputWidget`) renders three toolbar menus for configuration pickers. Each picker requires a three-part registration:
+
+1. **Menu action** — `registerAction2()` with a `when` clause gating it to the correct session type
+2. **Action view item** — `actionViewItemService.register()` to provide a custom widget instead of a button
+3. **Picker widget** — A `Disposable` class with a `render(container)` method, wrapped in `PickerActionViewItem`
+
+### Toolbar Menus
+
+| Menu | Purpose | Examples |
+|------|---------|----------|
+| `Menus.NewSessionConfig` | Session configuration (mode, model) | `ModePicker`, `CloudModelPicker`, local model picker |
+| `Menus.NewSessionControl` | Session controls (permissions) | `PermissionPicker`, `ClaudePermissionModePicker` |
+| `Menus.NewSessionRepositoryConfig` | Repository configuration | `IsolationPicker`, `BranchPicker` |
+
+### Context Key Gating
+
+Each picker action uses a `when` clause to show only for the correct session type:
+
+| Expression | Matches |
+|------------|---------|
+| `IsActiveSessionCopilotChatCLI` | Copilot CLI sessions |
+| `IsActiveSessionCopilotChatCloud` | Copilot Cloud sessions |
+| `IsActiveSessionCopilotChatClaudeCode` | Claude sessions |
+
+These are composed from `ActiveSessionTypeContext` (the session type ID) and `ActiveSessionProviderIdContext` (the provider ID).
+
+### Adding a New Picker
+
+```typescript
+// 1. Register the menu action with a when clause
+registerAction2(class extends Action2 {
+    constructor() {
+        super({
+            id: 'sessions.defaultCopilot.myPicker',
+            title: localize2('myPicker', "My Picker"),
+            f1: false,
+            menu: [{
+                id: Menus.NewSessionControl, // or NewSessionConfig, NewSessionRepositoryConfig
+                group: 'navigation',
+                order: 1,
+                when: IsActiveSessionCopilotChatCLI, // gate to session type
+            }],
+        });
+    }
+    override async run(): Promise<void> { /* handled by action view item */ }
+});
+
+// 2. Register the action view item (in CopilotPickerActionViewItemContribution)
+this._register(actionViewItemService.register(
+    Menus.NewSessionControl, 'sessions.defaultCopilot.myPicker',
+    () => {
+        const picker = instantiationService.createInstance(MyPicker);
+        return new PickerActionViewItem(picker);
+    },
+));
+```
+
+### Current Limitations
+
+The picker model is currently **hardcoded per session type**. Each session type that needs pickers must register its own actions and widgets with appropriate `when` clauses. For example, the Copilot CLI permission picker (`PermissionPicker`) and the Claude permission mode picker (`ClaudePermissionModePicker`) are separate, hardcoded widgets even though they serve a similar purpose.
+
+Ideally, pickers would be **generic and contributable** — a session type would declare its option groups (as the Claude extension already does via `IChatSessionsService.setOptionGroupsForSessionType()`), and the welcome view would dynamically render pickers from those groups without needing per-type widget classes. The active-session chat widget (`chatInputPart.ts`) already has this generic infrastructure via `createChatSessionPickerWidgets()`, but the welcome view does not yet use it. Until the welcome view adopts this pattern, new session types must follow the hardcoded approach above.
diff --git a/src/vs/sessions/contrib/copilotChatSessions/browser/claudePermissionModePicker.ts b/src/vs/sessions/contrib/copilotChatSessions/browser/claudePermissionModePicker.ts
new file mode 100644
index 00000000000..9f56fca68a8
--- /dev/null
+++ b/src/vs/sessions/contrib/copilotChatSessions/browser/claudePermissionModePicker.ts
@@ -0,0 +1,158 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import * as dom from '../../../../base/browser/dom.js';
+import { renderIcon } from '../../../../base/browser/ui/iconLabel/iconLabels.js';
+import { Codicon } from '../../../../base/common/codicons.js';
+import { Disposable, DisposableStore } from '../../../../base/common/lifecycle.js';
+import { ThemeIcon } from '../../../../base/common/themables.js';
+import { localize } from '../../../../nls.js';
+import { IActionWidgetService } from '../../../../platform/actionWidget/browser/actionWidget.js';
+import { ActionListItemKind, IActionListDelegate, IActionListItem, IActionListOptions } from '../../../../platform/actionWidget/browser/actionList.js';
+import { ISessionsManagementService } from '../../../services/sessions/common/sessionsManagement.js';
+import { ISessionsProvidersService } from '../../../services/sessions/browser/sessionsProvidersService.js';
+import { CopilotChatSessionsProvider } from './copilotChatSessionsProvider.js';
+
+const PERMISSION_MODE_OPTION_ID = 'permissionMode';
+
+interface IClaudePermissionModeItem {
+	readonly id: string;
+	readonly label: string;
+	readonly description: string;
+	readonly icon: ThemeIcon;
+}
+
+const permissionModes: IClaudePermissionModeItem[] = [
+	{
+		id: 'default',
+		label: localize('claude.permissionMode.default', "Ask Before Edits"),
+		description: localize('claude.permissionMode.default.description', "Claude asks for approval before making changes"),
+		icon: Codicon.shield,
+	},
+	{
+		id: 'acceptEdits',
+		label: localize('claude.permissionMode.acceptEdits', "Edit Automatically"),
+		description: localize('claude.permissionMode.acceptEdits.description', "Claude edits files without asking"),
+		icon: Codicon.edit,
+	},
+	{
+		id: 'plan',
+		label: localize('claude.permissionMode.plan', "Plan Mode"),
+		description: localize('claude.permissionMode.plan.description', "Claude creates a plan before making changes"),
+		icon: Codicon.lightbulb,
+	},
+];
+
+export class ClaudePermissionModePicker extends Disposable {
+
+	private _currentModeId = 'acceptEdits';
+	private _triggerElement: HTMLElement | undefined;
+	private readonly _renderDisposables = this._register(new DisposableStore());
+
+	constructor(
+		@IActionWidgetService private readonly actionWidgetService: IActionWidgetService,
+		@ISessionsManagementService private readonly sessionsManagementService: ISessionsManagementService,
+		@ISessionsProvidersService private readonly sessionsProvidersService: ISessionsProvidersService,
+	) {
+		super();
+	}
+
+	render(container: HTMLElement): HTMLElement {
+		this._renderDisposables.clear();
+
+		const slot = dom.append(container, dom.$('.sessions-chat-picker-slot'));
+		this._renderDisposables.add({ dispose: () => slot.remove() });
+
+		const trigger = dom.append(slot, dom.$('a.action-label'));
+		trigger.tabIndex = 0;
+		trigger.role = 'button';
+		this._triggerElement = trigger;
+
+		this._updateTriggerLabel(trigger);
+
+		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.CLICK, (e) => {
+			dom.EventHelper.stop(e, true);
+			this._showPicker();
+		}));
+
+		this._renderDisposables.add(dom.addDisposableListener(trigger, dom.EventType.KEY_DOWN, (e) => {
+			if (e.key === 'Enter' || e.key === ' ') {
+				dom.EventHelper.stop(e, true);
+				this._showPicker();
+			}
+		}));
+
+		return slot;
+	}
+
+	private _showPicker(): void {
+		if (!this._triggerElement || this.actionWidgetService.isVisible) {
+			return;
+		}
+
+		const items: IActionListItem<IClaudePermissionModeItem>[] = permissionModes.map(mode => ({
+			kind: ActionListItemKind.Action,
+			group: { kind: ActionListItemKind.Header, title: '', icon: mode.icon },
+			item: mode,
+			label: mode.label,
+			description: mode.description,
+			disabled: false,
+		}));
+
+		const triggerElement = this._triggerElement;
+		const delegate: IActionListDelegate<IClaudePermissionModeItem> = {
+			onSelect: (item) => {
+				this.actionWidgetService.hide();
+				this._selectMode(item);
+			},
+			onHide: () => { triggerElement.focus(); },
+		};
+
+		const listOptions: IActionListOptions = { descriptionBelow: true, minWidth: 255 };
+		this.actionWidgetService.show<IClaudePermissionModeItem>(
+			'claudePermissionModePicker',
+			false,
+			items,
+			delegate,
+			this._triggerElement,
+			undefined,
+			[],
+			{
+				getWidgetAriaLabel: () => localize('claudePermissionModePicker.ariaLabel', "Permission Mode"),
+			},
+			listOptions,
+		);
+	}
+
+	private _selectMode(mode: IClaudePermissionModeItem): void {
+		this._currentModeId = mode.id;
+		this._updateTriggerLabel(this._triggerElement);
+
+		const session = this.sessionsManagementService.activeSession.get();
+		if (!session) {
+			return;
+		}
+		const provider = this.sessionsProvidersService.getProvider(session.providerId);
+		if (provider instanceof CopilotChatSessionsProvider) {
+			provider.getSession(session.sessionId)?.setOption?.(PERMISSION_MODE_OPTION_ID, { id: mode.id, name: mode.label });
+		}
+	}
+
+	private _updateTriggerLabel(trigger: HTMLElement | undefined): void {
+		if (!trigger) {
+			return;
+		}
+
+		dom.clearNode(trigger);
+		const currentMode = permissionModes.find(m => m.id === this._currentModeId) ?? permissionModes[1];
+
+		dom.append(trigger, renderIcon(currentMode.icon));
+		const labelSpan = dom.append(trigger, dom.$('span.sessions-chat-dropdown-label'));
+		labelSpan.textContent = currentMode.label;
+		dom.append(trigger, renderIcon(Codicon.chevronDown));
+
+		trigger.ariaLabel = localize('claudePermissionModePicker.triggerAriaLabel', "Pick Permission Mode, {0}", currentMode.label);
+	}
+}
diff --git a/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessions.contribution.ts b/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessions.contribution.ts
index b5ce2480e97..e93478001fe 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessions.contribution.ts
+++ b/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessions.contribution.ts
@@ -6,7 +6,7 @@
 import { IWorkbenchContribution, registerWorkbenchContribution2, WorkbenchPhase } from '../../../../workbench/common/contributions.js';
 import { IInstantiationService } from '../../../../platform/instantiation/common/instantiation.js';
 import { Disposable } from '../../../../base/common/lifecycle.js';
-import { CopilotChatSessionsProvider, COPILOT_MULTI_CHAT_SETTING } from '../../copilotChatSessions/browser/copilotChatSessionsProvider.js';
+import { CopilotChatSessionsProvider, COPILOT_MULTI_CHAT_SETTING, CLAUDE_CODE_ENABLED_SETTING } from '../../copilotChatSessions/browser/copilotChatSessionsProvider.js';
 import '../../copilotChatSessions/browser/copilotChatSessionsActions.js';
 import { ISessionsProvidersService } from '../../../services/sessions/browser/sessionsProvidersService.js';
 import { Registry } from '../../../../platform/registry/common/platform.js';
@@ -24,6 +24,12 @@ Registry.as<IConfigurationRegistry>(ConfigurationExtensions.Configuration).regis
 			tags: ['preview'],
 			description: localize('sessions.github.copilot.multiChatSessions', "Whether to enable multiple chats within a single session in the Copilot Chat sessions provider."),
 		},
+		[CLAUDE_CODE_ENABLED_SETTING]: {
+			type: 'boolean',
+			default: false,
+			tags: ['experimental', 'onExp'],
+			description: localize('sessions.chatSessions.claude.enabled', "NOTE: This is HIGHLY experimental and under active development! Whether to enable Claude agent sessions in the sessions provider."),
+		},
 	},
 });
 
diff --git a/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsActions.ts b/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsActions.ts
index 440a03d8e48..8f907b8c64e 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsActions.ts
+++ b/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsActions.ts
@@ -23,7 +23,7 @@ import { Menus } from '../../../browser/menus.js';
 import { ISessionsManagementService } from '../../../services/sessions/common/sessionsManagement.js';
 import { ISessionsProvidersService } from '../../../services/sessions/browser/sessionsProvidersService.js';
 import { SessionItemContextMenuId } from '../../sessions/browser/views/sessionsList.js';
-import { COPILOT_CLI_SESSION_TYPE, COPILOT_CLOUD_SESSION_TYPE, ISession } from '../../../services/sessions/common/session.js';
+import { CLAUDE_CODE_SESSION_TYPE, COPILOT_CLI_SESSION_TYPE, COPILOT_CLOUD_SESSION_TYPE, ISession } from '../../../services/sessions/common/session.js';
 import { IAgentSessionsService } from '../../../../workbench/contrib/chat/browser/agentSessions/agentSessionsService.js';
 import { COPILOT_PROVIDER_ID, CopilotChatSessionsProvider } from './copilotChatSessionsProvider.js';
 import { ActiveSessionHasGitRepositoryContext, ActiveSessionProviderIdContext, ActiveSessionTypeContext, ChatSessionProviderIdContext, IsNewChatSessionContext } from '../../../common/contextkeys.js';
@@ -32,12 +32,15 @@ import { BranchPicker } from './branchPicker.js';
 import { ModePicker } from './modePicker.js';
 import { CloudModelPicker } from './modelPicker.js';
 import { CopilotPermissionPickerDelegate, PermissionPicker } from './permissionPicker.js';
+import { ClaudePermissionModePicker } from './claudePermissionModePicker.js';
 
 const IsActiveSessionCopilotCLI = ContextKeyExpr.equals(ActiveSessionTypeContext.key, COPILOT_CLI_SESSION_TYPE);
 const IsActiveSessionCopilotCloud = ContextKeyExpr.equals(ActiveSessionTypeContext.key, COPILOT_CLOUD_SESSION_TYPE);
 const IsActiveCopilotChatSessionProvider = ContextKeyExpr.equals(ActiveSessionProviderIdContext.key, COPILOT_PROVIDER_ID);
 const IsActiveSessionCopilotChatCLI = ContextKeyExpr.and(IsActiveSessionCopilotCLI, IsActiveCopilotChatSessionProvider);
 const IsActiveSessionCopilotChatCloud = ContextKeyExpr.and(IsActiveSessionCopilotCloud, IsActiveCopilotChatSessionProvider);
+const IsActiveSessionClaudeCode = ContextKeyExpr.equals(ActiveSessionTypeContext.key, CLAUDE_CODE_SESSION_TYPE);
+const IsActiveSessionCopilotChatClaudeCode = ContextKeyExpr.and(IsActiveSessionClaudeCode, IsActiveCopilotChatSessionProvider);
 
 // -- Actions --
 
@@ -148,6 +151,23 @@ registerAction2(class extends Action2 {
 	override async run(): Promise<void> { /* handled by action view item */ }
 });
 
+registerAction2(class extends Action2 {
+	constructor() {
+		super({
+			id: 'sessions.defaultCopilot.claudePermissionModePicker',
+			title: localize2('claudePermissionModePicker', "Permission Mode"),
+			f1: false,
+			menu: [{
+				id: Menus.NewSessionControl,
+				group: 'navigation',
+				order: 1,
+				when: IsActiveSessionCopilotChatClaudeCode,
+			}],
+		});
+	}
+	override async run(): Promise<void> { /* handled by action view item */ }
+});
+
 // -- Helper --
 
 /**
@@ -279,6 +299,13 @@ class CopilotPickerActionViewItemContribution extends Disposable implements IWor
 				return new PickerActionViewItem(picker, delegate);
 			},
 		));
+		this._register(actionViewItemService.register(
+			Menus.NewSessionControl, 'sessions.defaultCopilot.claudePermissionModePicker',
+			() => {
+				const picker = instantiationService.createInstance(ClaudePermissionModePicker);
+				return new PickerActionViewItem(picker);
+			},
+		));
 	}
 }
 
diff --git a/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsProvider.ts b/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsProvider.ts
index 3db5f674e74..c93edc1ff49 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsProvider.ts
+++ b/src/vs/sessions/contrib/copilotChatSessions/browser/copilotChatSessionsProvider.ts
@@ -22,7 +22,7 @@ import { AgentSessionProviders, AgentSessionTarget } from '../../../../workbench
 import { IChatService, IChatSendRequestOptions } from '../../../../workbench/contrib/chat/common/chatService/chatService.js';
 import { IChatResponseModel } from '../../../../workbench/contrib/chat/common/model/chatModel.js';
 import { ChatSessionStatus, IChatSessionFileChange, IChatSessionsService, IChatSessionProviderOptionGroup, IChatSessionProviderOptionItem } from '../../../../workbench/contrib/chat/common/chatSessionsService.js';
-import { ISession, IChat, ISessionRepository, ISessionWorkspace, SessionStatus, GITHUB_REMOTE_FILE_SCHEME, IGitHubInfo, CopilotCLISessionType, CopilotCloudSessionType, ISessionType, ISessionWorkspaceBrowseAction } from '../../../services/sessions/common/session.js';
+import { ISession, IChat, ISessionRepository, ISessionWorkspace, SessionStatus, GITHUB_REMOTE_FILE_SCHEME, IGitHubInfo, CopilotCLISessionType, CopilotCloudSessionType, ClaudeCodeSessionType, ISessionType, ISessionWorkspaceBrowseAction } from '../../../services/sessions/common/session.js';
 import { ChatAgentLocation, ChatModeKind, ChatPermissionLevel } from '../../../../workbench/contrib/chat/common/constants.js';
 import { basename, isEqual } from '../../../../base/common/resources.js';
 import { ISendRequestOptions, ISessionChangeEvent, ISessionsProvider } from '../../../services/sessions/common/sessionsProvider.js';
@@ -99,6 +99,7 @@ export interface ICopilotChatSession {
 
 	setModelId(modelId: string): void;
 	setMode(chatMode: IChatMode | undefined): void;
+	setOption?(optionId: string, value: IChatSessionProviderOptionItem | string): void;
 
 	readonly gitRepository?: IGitRepository;
 	readonly branches: IObservable<readonly string[]>;
@@ -112,6 +113,9 @@ export const COPILOT_PROVIDER_ID = 'default-copilot';
 /** Setting key controlling whether the Copilot provider supports multiple chats per session. */
 export const COPILOT_MULTI_CHAT_SETTING = 'sessions.github.copilot.multiChatSessions';
 
+/** Setting key controlling whether Claude agent sessions are available. */
+export const CLAUDE_CODE_ENABLED_SETTING = 'sessions.chatSessions.claude.enabled';
+
 
 const REPOSITORY_OPTION_ID = 'repository';
 const PARENT_SESSION_OPTION_ID = 'parentSessionId';
@@ -119,7 +123,11 @@ const BRANCH_OPTION_ID = 'branch';
 const ISOLATION_OPTION_ID = 'isolation';
 const AGENT_OPTION_ID = 'agent';
 
-type NewSession = CopilotCLISession | RemoteNewSession;
+type NewSession = CopilotCLISession | RemoteNewSession | ClaudeCodeNewSession;
+
+function isNewSession(session: ICopilotChatSession): session is NewSession {
+	return session instanceof CopilotCLISession || session instanceof RemoteNewSession || session instanceof ClaudeCodeNewSession;
+}
 
 /**
  * Local new session for Background agent sessions.
@@ -664,6 +672,137 @@ export class RemoteNewSession extends Disposable implements ICopilotChatSession
 	update(_session: IAgentSession): void { }
 }
 
+/**
+ * New session for Claude agent sessions.
+ * Implements {@link ICopilotChatSession} (session facade) and provides
+ * pre-send configuration methods for the new-session flow.
+ * Simpler than {@link CopilotCLISession} because the Claude agent manages
+ * its own worktrees and branches at runtime.
+ */
+class ClaudeCodeNewSession extends Disposable implements ICopilotChatSession {
+
+	// -- ISessionData fields --
+
+	readonly id: string;
+	readonly providerId: string;
+	readonly sessionType: string;
+	readonly icon: ThemeIcon;
+	readonly createdAt: Date;
+
+	private readonly _title = observableValue(this, '');
+	readonly title: IObservable<string> = this._title;
+
+	private readonly _updatedAt = observableValue(this, new Date());
+	readonly updatedAt: IObservable<Date> = this._updatedAt;
+
+	private readonly _status = observableValue(this, SessionStatus.Untitled);
+	readonly status: IObservable<SessionStatus> = this._status;
+
+	private readonly _permissionLevel = observableValue(this, ChatPermissionLevel.Default);
+	readonly permissionLevel: IObservable<ChatPermissionLevel> = this._permissionLevel;
+
+	private readonly _workspaceData = observableValue<ISessionWorkspace | undefined>(this, undefined);
+	readonly workspace: IObservable<ISessionWorkspace | undefined> = this._workspaceData;
+
+	readonly changes: IObservable<readonly IChatSessionFileChange[]> = observableValue<readonly IChatSessionFileChange[]>(this, []);
+
+	private readonly _modelIdObservable = observableValue<string | undefined>(this, undefined);
+	readonly modelId: IObservable<string | undefined> = this._modelIdObservable;
+
+	private readonly _modeObservable = observableValue<{ readonly id: string; readonly kind: string } | undefined>(this, undefined);
+	readonly mode: IObservable<{ readonly id: string; readonly kind: string } | undefined> = this._modeObservable;
+
+	readonly loading: IObservable<boolean> = observableValue(this, false);
+
+	private readonly _isArchived = observableValue(this, false);
+	readonly isArchived: IObservable<boolean> = this._isArchived;
+	readonly isRead: IObservable<boolean> = observableValue(this, true);
+	readonly description: IObservable<IMarkdownString | undefined> = constObservable(undefined);
+	readonly lastTurnEnd: IObservable<Date | undefined> = constObservable(undefined);
+	readonly gitHubInfo: IObservable<IGitHubInfo | undefined> = constObservable(undefined);
+	readonly branch: IObservable<string | undefined> = constObservable(undefined);
+	readonly isolationMode: IObservable<IsolationMode | undefined> = constObservable(undefined);
+	readonly branches: IObservable<readonly string[]> = constObservable([]);
+	readonly gitRepository?: IGitRepository | undefined;
+
+	// -- New session configuration fields --
+
+	private _modelId: string | undefined;
+	private _mode: IChatMode | undefined;
+
+	readonly target = AgentSessionProviders.Claude;
+	readonly selectedOptions = new Map<string, IChatSessionProviderOptionItem>();
+
+	get selectedModelId(): string | undefined { return this._modelId; }
+	get chatMode(): IChatMode | undefined { return this._mode; }
+	get query(): string | undefined { return undefined; }
+	get attachedContext(): IChatRequestVariableEntry[] | undefined { return undefined; }
+	get disabled(): boolean { return false; }
+
+	constructor(
+		readonly resource: URI,
+		readonly sessionWorkspace: ISessionWorkspace,
+		providerId: string,
+	) {
+		super();
+		this.id = `${providerId}:${resource.toString()}`;
+		this.providerId = providerId;
+		this.sessionType = AgentSessionProviders.Claude;
+		this.icon = ClaudeCodeSessionType.icon;
+		this.createdAt = new Date();
+
+		this._workspaceData.set(sessionWorkspace, undefined);
+	}
+
+	setOption(optionId: string, value: IChatSessionProviderOptionItem | string): void {
+		if (typeof value === 'string') {
+			this.selectedOptions.set(optionId, { id: value, name: value });
+		} else {
+			this.selectedOptions.set(optionId, value);
+		}
+	}
+
+	setPermissionLevel(level: ChatPermissionLevel): void {
+		this._permissionLevel.set(level, undefined);
+	}
+
+	setIsolationMode(_mode: IsolationMode): void {
+		// No-op — Claude agent manages its own worktrees
+	}
+
+	setBranch(_branch: string | undefined): void {
+		// No-op — Claude agent manages branches at runtime
+	}
+
+	setModelId(modelId: string | undefined): void {
+		this._modelId = modelId;
+		this._modelIdObservable.set(modelId, undefined);
+	}
+
+	setTitle(title: string): void {
+		this._title.set(title, undefined);
+	}
+
+	setStatus(status: SessionStatus): void {
+		this._status.set(status, undefined);
+	}
+
+	setArchived(archived: boolean): void {
+		this._isArchived.set(archived, undefined);
+	}
+
+	setMode(mode: IChatMode | undefined): void {
+		this._mode = mode;
+		if (mode) {
+			this._modeObservable.set({ id: mode.id, kind: mode.kind }, undefined);
+		} else {
+			this._modeObservable.set(undefined, undefined);
+		}
+	}
+
+	update(_session: IAgentSession): void { }
+}
+
 /**
  * Maps the existing {@link ChatSessionStatus} to the new {@link SessionStatus}.
  */
@@ -828,6 +967,8 @@ class AgentSessionAdapter implements ICopilotChatSession {
 				return CopilotCLISessionType.icon;
 			case AgentSessionProviders.Cloud:
 				return CopilotCloudSessionType.icon;
+			case AgentSessionProviders.Claude:
+				return ClaudeCodeSessionType.icon;
 			default:
 				return session.icon;
 		}
@@ -1046,8 +1187,16 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 	readonly id = COPILOT_PROVIDER_ID;
 	readonly label = localize('copilotChatSessionsProvider', "Copilot Chat");
 	readonly icon = Codicon.copilot;
-	readonly sessionTypes: readonly ISessionType[] = [CopilotCLISessionType, CopilotCloudSessionType];
-	readonly onDidChangeSessionTypes = Event.None;
+	get sessionTypes(): readonly ISessionType[] {
+		const types: ISessionType[] = [CopilotCLISessionType, CopilotCloudSessionType];
+		if (this._claudeEnabled) {
+			types.push(ClaudeCodeSessionType);
+		}
+		return types;
+	}
+
+	private readonly _onDidChangeSessionTypes = this._register(new Emitter<void>());
+	readonly onDidChangeSessionTypes: Event<void> = this._onDidChangeSessionTypes.event;
 
 	private readonly _onDidChangeSessions = this._register(new Emitter<ISessionChangeEvent>());
 	readonly onDidChangeSessions: Event<ISessionChangeEvent> = this._onDidChangeSessions.event;
@@ -1056,7 +1205,7 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 	readonly onDidReplaceSession: Event<{ readonly from: ISession; readonly to: ISession }> = this._onDidReplaceSession.event;
 
 	/** Cache of adapted sessions, keyed by resource URI string. */
-	private readonly _sessionCache = new Map<string, AgentSessionAdapter | CopilotCLISession | RemoteNewSession>();
+	private readonly _sessionCache = new Map<string, AgentSessionAdapter | CopilotCLISession | RemoteNewSession | ClaudeCodeNewSession>();
 
 	/** Cache of ISession wrappers, keyed by session group ID. */
 	private readonly _sessionGroupCache = new Map<string, ISession>();
@@ -1065,6 +1214,7 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 	private readonly _groupModel: SessionsGroupModel;
 
 	private readonly _multiChatEnabled: boolean;
+	private _claudeEnabled: boolean;
 
 	readonly browseActions: readonly ISessionWorkspaceBrowseAction[];
 
@@ -1080,14 +1230,26 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 		@ILanguageModelsService private readonly languageModelsService: ILanguageModelsService,
 		@ILanguageModelToolsService private readonly toolsService: ILanguageModelToolsService,
 		@IStorageService storageService: IStorageService,
-		@IConfigurationService configurationService: IConfigurationService,
+		@IConfigurationService private readonly configurationService: IConfigurationService,
 		@ILogService private readonly logService: ILogService,
 		@IGitHubService private readonly gitHubService: IGitHubService,
 	) {
 		super();
 
 		this._groupModel = this._register(new SessionsGroupModel(storageService));
-		this._multiChatEnabled = configurationService.getValue<boolean>(COPILOT_MULTI_CHAT_SETTING) ?? true;
+		this._multiChatEnabled = this.configurationService.getValue<boolean>(COPILOT_MULTI_CHAT_SETTING) ?? true;
+		this._claudeEnabled = this.configurationService.getValue<boolean>(CLAUDE_CODE_ENABLED_SETTING) ?? false;
+
+		this._register(this.configurationService.onDidChangeConfiguration(e => {
+			if (e.affectsConfiguration(CLAUDE_CODE_ENABLED_SETTING)) {
+				const claudeEnabled = this.configurationService.getValue<boolean>(CLAUDE_CODE_ENABLED_SETTING) ?? false;
+				if (this._claudeEnabled !== claudeEnabled) {
+					this._claudeEnabled = claudeEnabled;
+					this._onDidChangeSessionTypes.fire();
+					this._refreshSessionCache();
+				}
+			}
+		}));
 
 		this.browseActions = [
 			{
@@ -1116,7 +1278,11 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 		if (workspaceUri.scheme === GITHUB_REMOTE_FILE_SCHEME) {
 			return [CopilotCloudSessionType];
 		}
-		return [CopilotCLISessionType];
+		const types: ISessionType[] = [CopilotCLISessionType];
+		if (this._claudeEnabled) {
+			types.push(ClaudeCodeSessionType);
+		}
+		return types;
 	}
 
 	getSessions(): ISession[] {
@@ -1171,8 +1337,15 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 			return this._chatToSession(session);
 		}
 
+		if (sessionTypeId === ClaudeCodeSessionType.id) {
+			const resource = URI.from({ scheme: AgentSessionProviders.Claude, path: `/untitled-${generateUuid()}` });
+			const session = this.instantiationService.createInstance(ClaudeCodeNewSession, resource, workspace, this.id);
+			this._currentNewSession = session;
+			return this._chatToSession(session);
+		}
+
 		if (sessionTypeId !== CopilotCLISessionType.id) {
-			throw new Error('Only Copilot CLI sessions can be created for non-GitHub repositories');
+			throw new Error(`Unsupported session type '${sessionTypeId}' for local workspaces`);
 		}
 		const resource = URI.from({ scheme: AgentSessionProviders.Background, path: `/untitled-${generateUuid()}` });
 		const session = this.instantiationService.createInstance(CopilotCLISession, resource, workspace, this.id);
@@ -1198,7 +1371,7 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 		// Temp session that hasn't been committed — archive it in-place
 		// so the user can still review whatever content was produced.
 		const chatSession = this._findChatSession(sessionId);
-		if (chatSession && (chatSession instanceof CopilotCLISession || chatSession instanceof RemoteNewSession)) {
+		if (chatSession && isNewSession(chatSession)) {
 			chatSession.setArchived(true);
 			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [this._chatToSession(chatSession)] });
 			return;
@@ -1214,7 +1387,7 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 
 		// Temp session that hasn't been committed — unarchive it in-place
 		const chatSession = this._findChatSession(sessionId);
-		if (chatSession && (chatSession instanceof CopilotCLISession || chatSession instanceof RemoteNewSession)) {
+		if (chatSession && isNewSession(chatSession)) {
 			chatSession.setArchived(false);
 			this._onDidChangeSessions.fire({ added: [], removed: [], changed: [this._chatToSession(chatSession)] });
 		}
@@ -1264,7 +1437,11 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 			await this.commandService.executeCommand('github.copilot.cli.sessions.setTitle', { resource: chatUri }, title);
 			return;
 		}
-		throw new Error('Renaming is only supported for Copilot CLI sessions');
+		if (agentSession?.providerType === AgentSessionProviders.Claude) {
+			await this.commandService.executeCommand('github.copilot.claude.sessions.rename', { resource: chatUri }, title);
+			return;
+		}
+		throw new Error('Renaming is not supported for this session type');
 	}
 
 	async deleteChat(sessionId: string, chatUri: URI): Promise<void> {
@@ -1398,7 +1575,7 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 	 * Sends the first chat for a newly created session.
 	 * Adds the temp session to the cache, waits for commit, then replaces it.
 	 */
-	private async _sendFirstChat(session: CopilotCLISession | RemoteNewSession, options: ISendRequestOptions): Promise<ISession> {
+	private async _sendFirstChat(session: CopilotCLISession | RemoteNewSession | ClaudeCodeNewSession, options: ISendRequestOptions): Promise<ISession> {
 
 		const { query, attachedContext } = options;
 
@@ -1701,6 +1878,10 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 			throw new Error('Multiple chats per session is not supported for cloud sessions');
 		}
 
+		if (chat.sessionType === AgentSessionProviders.Claude) {
+			throw new Error('Multiple chats per session is not supported for Claude sessions');
+		}
+
 		const workspace = chat.workspace.get();
 		if (!workspace) {
 			throw new Error('Chat session has no associated workspace');
@@ -1918,7 +2099,7 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 		const removedSession = this._chatToSession(chatSession);
 		this._sessionGroupCache.delete(chatSession.id);
 		this._onDidChangeSessions.fire({ added: [], removed: [removedSession], changed: [] });
-		if (chatSession instanceof CopilotCLISession || chatSession instanceof RemoteNewSession) {
+		if (isNewSession(chatSession)) {
 			chatSession.dispose();
 		}
 	}
@@ -1930,7 +2111,12 @@ export class CopilotChatSessionsProvider extends Disposable implements ISessions
 
 		for (const session of this.agentSessionsService.model.sessions) {
 			if (session.providerType !== AgentSessionProviders.Background
-				&& session.providerType !== AgentSessionProviders.Cloud) {
+				&& session.providerType !== AgentSessionProviders.Cloud
+				&& session.providerType !== AgentSessionProviders.Claude) {
+				continue;
+			}
+
+			if (session.providerType === AgentSessionProviders.Claude && !this._claudeEnabled) {
 				continue;
 			}
 
diff --git a/src/vs/sessions/contrib/copilotChatSessions/test/browser/claudePermissionModePicker.test.ts b/src/vs/sessions/contrib/copilotChatSessions/test/browser/claudePermissionModePicker.test.ts
new file mode 100644
index 00000000000..00faf84b696
--- /dev/null
+++ b/src/vs/sessions/contrib/copilotChatSessions/test/browser/claudePermissionModePicker.test.ts
@@ -0,0 +1,158 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import assert from 'assert';
+import { Event } from '../../../../../base/common/event.js';
+import { DisposableStore } from '../../../../../base/common/lifecycle.js';
+import { observableValue } from '../../../../../base/common/observable.js';
+import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../../base/test/common/utils.js';
+import { IActionWidgetService } from '../../../../../platform/actionWidget/browser/actionWidget.js';
+import { IActionListItem } from '../../../../../platform/actionWidget/browser/actionList.js';
+import { TestInstantiationService } from '../../../../../platform/instantiation/test/common/instantiationServiceMock.js';
+import { ISessionsProvidersService } from '../../../../services/sessions/browser/sessionsProvidersService.js';
+import { IActiveSession, ISessionsManagementService } from '../../../../services/sessions/common/sessionsManagement.js';
+import { CopilotChatSessionsProvider, ICopilotChatSession } from '../../browser/copilotChatSessionsProvider.js';
+import { ClaudePermissionModePicker } from '../../browser/claudePermissionModePicker.js';
+
+interface IPermissionModeItem {
+	readonly id: string;
+	readonly label: string;
+}
+
+function showPicker(container: HTMLElement): void {
+	const trigger = container.querySelector<HTMLElement>('a.action-label');
+	assert.ok(trigger);
+	trigger.click();
+}
+
+function createPicker(
+	disposables: DisposableStore,
+	opts?: {
+		setOptionSpy?: (optionId: string, value: { id: string; name: string }) => void;
+		hasActiveSession?: boolean;
+	},
+): { picker: ClaudePermissionModePicker; actionWidgetItems: IActionListItem<IPermissionModeItem>[]; onSelect: (item: IPermissionModeItem) => void } {
+	const instantiationService = disposables.add(new TestInstantiationService());
+	const actionWidgetItems: IActionListItem<IPermissionModeItem>[] = [];
+	let capturedOnSelect: ((item: IPermissionModeItem) => void) | undefined;
+
+	const setOptionSpy = opts?.setOptionSpy ?? (() => { });
+	const hasActiveSession = opts?.hasActiveSession ?? true;
+
+	const activeSession = hasActiveSession ? {
+		providerId: 'default-copilot',
+		sessionId: 'session-id',
+		loading: observableValue('loading', false),
+	} as unknown as IActiveSession : undefined;
+
+	const mockSession: Partial<ICopilotChatSession> = {
+		setOption: setOptionSpy as ICopilotChatSession['setOption'],
+	};
+
+	const provider = Object.assign(Object.create(CopilotChatSessionsProvider.prototype), {
+		getSession: () => mockSession,
+	});
+
+	instantiationService.stub(IActionWidgetService, {
+		isVisible: false,
+		hide: () => { },
+		show: <T>(_id: string, _supportsPreview: boolean, items: IActionListItem<T>[], delegate: { onSelect: (item: T) => void }) => {
+			actionWidgetItems.splice(0, actionWidgetItems.length, ...(items as IActionListItem<IPermissionModeItem>[]));
+			capturedOnSelect = delegate.onSelect as (item: IPermissionModeItem) => void;
+		},
+	});
+	instantiationService.stub(ISessionsManagementService, {
+		activeSession: observableValue<IActiveSession | undefined>('activeSession', activeSession),
+	} as unknown as ISessionsManagementService);
+	instantiationService.stub(ISessionsProvidersService, {
+		onDidChangeProviders: Event.None,
+		getProviders: () => [],
+		getProvider: () => provider,
+	} as unknown as ISessionsProvidersService);
+
+	const picker = disposables.add(instantiationService.createInstance(ClaudePermissionModePicker));
+
+	return {
+		picker,
+		actionWidgetItems,
+		get onSelect() { return capturedOnSelect!; },
+	};
+}
+
+suite('ClaudePermissionModePicker', () => {
+	const disposables = new DisposableStore();
+
+	teardown(() => {
+		disposables.clear();
+	});
+
+	ensureNoDisposablesAreLeakedInTestSuite();
+
+	test('shows all three permission modes', () => {
+		const { picker, actionWidgetItems } = createPicker(disposables);
+		const container = document.createElement('div');
+		picker.render(container);
+		showPicker(container);
+
+		assert.deepStrictEqual(
+			actionWidgetItems.map(item => ({ id: item.item?.id, label: item.label })),
+			[
+				{ id: 'default', label: 'Ask Before Edits' },
+				{ id: 'acceptEdits', label: 'Edit Automatically' },
+				{ id: 'plan', label: 'Plan Mode' },
+			],
+		);
+	});
+
+	test('selecting a mode updates the trigger label', () => {
+		const result = createPicker(disposables);
+		const container = document.createElement('div');
+		result.picker.render(container);
+		showPicker(container);
+
+		result.onSelect({ id: 'plan', label: 'Plan Mode' } as IPermissionModeItem);
+
+		const labelSpan = container.querySelector<HTMLElement>('span.sessions-chat-dropdown-label');
+		assert.ok(labelSpan);
+		assert.strictEqual(labelSpan.textContent, 'Plan Mode');
+	});
+
+	test('selecting a mode calls setOption on the session', () => {
+		const calls: { optionId: string; value: { id: string; name: string } }[] = [];
+		const result = createPicker(disposables, {
+			setOptionSpy: (optionId, value) => calls.push({ optionId, value }),
+		});
+		const container = document.createElement('div');
+		result.picker.render(container);
+		showPicker(container);
+
+		result.onSelect({ id: 'default', label: 'Ask Before Edits' } as IPermissionModeItem);
+
+		assert.deepStrictEqual(calls, [{
+			optionId: 'permissionMode',
+			value: { id: 'default', name: 'Ask Before Edits' },
+		}]);
+	});
+
+	test('selecting a mode does not throw when no active session', () => {
+		const result = createPicker(disposables, { hasActiveSession: false });
+		const container = document.createElement('div');
+		result.picker.render(container);
+		showPicker(container);
+
+		assert.doesNotThrow(() => result.onSelect({ id: 'plan', label: 'Plan Mode' } as IPermissionModeItem));
+	});
+
+	test('trigger has correct aria label', () => {
+		const { picker } = createPicker(disposables);
+		const container = document.createElement('div');
+		picker.render(container);
+
+		const trigger = container.querySelector<HTMLElement>('a.action-label');
+		assert.ok(trigger);
+		// Default mode is 'acceptEdits' → "Edit Automatically"
+		assert.ok(trigger.ariaLabel?.includes('Edit Automatically'));
+	});
+});
diff --git a/src/vs/sessions/contrib/copilotChatSessions/test/browser/copilotChatSessionsProvider.test.ts b/src/vs/sessions/contrib/copilotChatSessions/test/browser/copilotChatSessionsProvider.test.ts
index 5dd5aaadd5a..db3ee3ffebb 100644
--- a/src/vs/sessions/contrib/copilotChatSessions/test/browser/copilotChatSessionsProvider.test.ts
+++ b/src/vs/sessions/contrib/copilotChatSessions/test/browser/copilotChatSessionsProvider.test.ts
@@ -10,7 +10,7 @@ import { DisposableStore, toDisposable } from '../../../../../base/common/lifecy
 import { URI } from '../../../../../base/common/uri.js';
 import { mock } from '../../../../../base/test/common/mock.js';
 import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../../base/test/common/utils.js';
-import { IConfigurationService } from '../../../../../platform/configuration/common/configuration.js';
+import { ConfigurationTarget, IConfigurationService } from '../../../../../platform/configuration/common/configuration.js';
 import { TestConfigurationService } from '../../../../../platform/configuration/test/common/testConfigurationService.js';
 import { ICommandService } from '../../../../../platform/commands/common/commands.js';
 import { IDialogService, IFileDialogService } from '../../../../../platform/dialogs/common/dialogs.js';
@@ -30,8 +30,8 @@ import { IChatResponseModel } from '../../../../../workbench/contrib/chat/common
 import { IChatAgentData } from '../../../../../workbench/contrib/chat/common/participants/chatAgents.js';
 import { IGitService } from '../../../../../workbench/contrib/git/common/gitService.js';
 import { ISessionChangeEvent } from '../../../../services/sessions/common/sessionsProvider.js';
-import { CopilotCLISessionType, SessionStatus } from '../../../../services/sessions/common/session.js';
-import { CopilotChatSessionsProvider, COPILOT_PROVIDER_ID } from '../../browser/copilotChatSessionsProvider.js';
+import { ClaudeCodeSessionType, CopilotCLISessionType, GITHUB_REMOTE_FILE_SCHEME, SessionStatus } from '../../../../services/sessions/common/session.js';
+import { CLAUDE_CODE_ENABLED_SETTING, CopilotChatSessionsProvider, COPILOT_PROVIDER_ID } from '../../browser/copilotChatSessionsProvider.js';
 import { ILogService, NullLogService } from '../../../../../platform/log/common/log.js';
 
 // ---- Helpers ----------------------------------------------------------------
@@ -107,12 +107,21 @@ class MockAgentSessionsModel {
 function createProvider(
 	disposables: DisposableStore,
 	model: MockAgentSessionsModel,
-	opts?: { multiChatEnabled?: boolean },
+	opts?: { multiChatEnabled?: boolean; claudeEnabled?: boolean },
 ): CopilotChatSessionsProvider {
+	return createProviderWithConfig(disposables, model, opts).provider;
+}
+
+function createProviderWithConfig(
+	disposables: DisposableStore,
+	model: MockAgentSessionsModel,
+	opts?: { multiChatEnabled?: boolean; claudeEnabled?: boolean },
+): { provider: CopilotChatSessionsProvider; configService: TestConfigurationService } {
 	const instantiationService = disposables.add(new TestInstantiationService());
 
 	const configService = new TestConfigurationService();
 	configService.setUserConfiguration('sessions.github.copilot.multiChatSessions', opts?.multiChatEnabled ?? true);
+	configService.setUserConfiguration(CLAUDE_CODE_ENABLED_SETTING, opts?.claudeEnabled ?? false);
 
 	instantiationService.stub(IConfigurationService, configService);
 	instantiationService.stub(IStorageService, disposables.add(new TestStorageService()));
@@ -171,7 +180,7 @@ function createProvider(
 	instantiationService.stub(IInstantiationService, instantiationService);
 
 	const provider = disposables.add(instantiationService.createInstance(CopilotChatSessionsProvider));
-	return provider;
+	return { provider, configService };
 }
 
 // ---- Provider factory for send/cancel tests ---------------------------------
@@ -188,12 +197,13 @@ function createProviderForSendTests(
 	disposables: DisposableStore,
 	model: MockAgentSessionsModel,
 	sendRequest: () => Promise<ChatSendResult>,
-	opts?: { onDidCommitSession?: Event<{ original: URI; committed: URI }> },
+	opts?: { onDidCommitSession?: Event<{ original: URI; committed: URI }>; claudeEnabled?: boolean },
 ): CopilotChatSessionsProvider {
 	const instantiationService = disposables.add(new TestInstantiationService());
 
 	const configService = new TestConfigurationService();
 	configService.setUserConfiguration('sessions.github.copilot.multiChatSessions', true);
+	configService.setUserConfiguration(CLAUDE_CODE_ENABLED_SETTING, opts?.claudeEnabled ?? false);
 
 	instantiationService.stub(ILogService, NullLogService);
 	instantiationService.stub(IConfigurationService, configService);
@@ -263,6 +273,83 @@ suite('CopilotChatSessionsProvider', () => {
 		assert.strictEqual(provider.sessionTypes.length, 2);
 	});
 
+	test('sessionTypes includes Claude when setting is enabled', () => {
+		const provider = createProvider(disposables, model, { claudeEnabled: true });
+		assert.strictEqual(provider.sessionTypes.length, 3);
+		assert.ok(provider.sessionTypes.some(t => t.id === ClaudeCodeSessionType.id));
+	});
+
+	test('onDidChangeSessionTypes fires when claude setting changes', () => {
+		const { provider, configService } = createProviderWithConfig(disposables, model);
+		assert.strictEqual(provider.sessionTypes.length, 2);
+
+		let fired = false;
+		disposables.add(provider.onDidChangeSessionTypes(() => { fired = true; }));
+
+		// Enable claude via config change
+		configService.setUserConfiguration(CLAUDE_CODE_ENABLED_SETTING, true);
+		configService.onDidChangeConfigurationEmitter.fire({
+			source: ConfigurationTarget.USER,
+			affectedKeys: new Set([CLAUDE_CODE_ENABLED_SETTING]),
+			change: { keys: [CLAUDE_CODE_ENABLED_SETTING], overrides: [] },
+			affectsConfiguration: (key: string) => key === CLAUDE_CODE_ENABLED_SETTING,
+		});
+
+		assert.ok(fired, 'onDidChangeSessionTypes should have fired');
+		assert.strictEqual(provider.sessionTypes.length, 3);
+	});
+
+	test('toggling claude setting refreshes sessions list', () => {
+		const claudeResource = URI.from({ scheme: AgentSessionProviders.Claude, path: '/claude-session' });
+		model.addSession(createMockAgentSession(claudeResource, { providerType: AgentSessionProviders.Claude }));
+
+		const { provider, configService } = createProviderWithConfig(disposables, model);
+		assert.strictEqual(provider.getSessions().length, 0, 'Claude sessions should be hidden when disabled');
+
+		// Enable Claude
+		configService.setUserConfiguration(CLAUDE_CODE_ENABLED_SETTING, true);
+		configService.onDidChangeConfigurationEmitter.fire({
+			source: ConfigurationTarget.USER,
+			affectedKeys: new Set([CLAUDE_CODE_ENABLED_SETTING]),
+			change: { keys: [CLAUDE_CODE_ENABLED_SETTING], overrides: [] },
+			affectsConfiguration: (key: string) => key === CLAUDE_CODE_ENABLED_SETTING,
+		});
+
+		assert.strictEqual(provider.getSessions().length, 1, 'Claude sessions should appear after enabling');
+
+		// Disable Claude
+		configService.setUserConfiguration(CLAUDE_CODE_ENABLED_SETTING, false);
+		configService.onDidChangeConfigurationEmitter.fire({
+			source: ConfigurationTarget.USER,
+			affectedKeys: new Set([CLAUDE_CODE_ENABLED_SETTING]),
+			change: { keys: [CLAUDE_CODE_ENABLED_SETTING], overrides: [] },
+			affectsConfiguration: (key: string) => key === CLAUDE_CODE_ENABLED_SETTING,
+		});
+
+		assert.strictEqual(provider.getSessions().length, 0, 'Claude sessions should disappear after disabling');
+	});
+
+	// ---- getSessionTypes -------
+
+	test('getSessionTypes returns Claude for local workspace when enabled', () => {
+		const provider = createProvider(disposables, model, { claudeEnabled: true });
+		const types = provider.getSessionTypes(URI.file('/test/project'));
+		assert.ok(types.some(t => t.id === ClaudeCodeSessionType.id));
+	});
+
+	test('getSessionTypes does not return Claude for local workspace when disabled', () => {
+		const provider = createProvider(disposables, model);
+		const types = provider.getSessionTypes(URI.file('/test/project'));
+		assert.ok(!types.some(t => t.id === ClaudeCodeSessionType.id));
+	});
+
+	test('getSessionTypes returns only Cloud for remote workspace regardless of claude setting', () => {
+		const provider = createProvider(disposables, model, { claudeEnabled: true });
+		const types = provider.getSessionTypes(URI.from({ scheme: GITHUB_REMOTE_FILE_SCHEME, path: '/owner/repo' }));
+		assert.strictEqual(types.length, 1);
+		assert.ok(!types.some(t => t.id === ClaudeCodeSessionType.id));
+	});
+
 	// ---- Session listing -------
 
 	test('getSessions returns empty array initially', () => {
@@ -282,7 +369,7 @@ suite('CopilotChatSessionsProvider', () => {
 		assert.strictEqual(sessions.length, 2);
 	});
 
-	test('getSessions ignores non-Background/Cloud sessions', () => {
+	test('getSessions ignores non-Background/Cloud/Claude sessions', () => {
 		const bgResource = URI.from({ scheme: AgentSessionProviders.Background, path: '/bg-session' });
 		const localResource = URI.from({ scheme: AgentSessionProviders.Local, path: '/local-session' });
 		model.addSession(createMockAgentSession(bgResource));
@@ -294,6 +381,26 @@ suite('CopilotChatSessionsProvider', () => {
 		assert.strictEqual(sessions.length, 1);
 	});
 
+	test('getSessions includes Claude agent sessions when enabled', () => {
+		const claudeResource = URI.from({ scheme: AgentSessionProviders.Claude, path: '/claude-session' });
+		model.addSession(createMockAgentSession(claudeResource, { providerType: AgentSessionProviders.Claude }));
+
+		const provider = createProvider(disposables, model, { claudeEnabled: true });
+		const sessions = provider.getSessions();
+
+		assert.strictEqual(sessions.length, 1);
+	});
+
+	test('getSessions excludes Claude agent sessions when disabled', () => {
+		const claudeResource = URI.from({ scheme: AgentSessionProviders.Claude, path: '/claude-session' });
+		model.addSession(createMockAgentSession(claudeResource, { providerType: AgentSessionProviders.Claude }));
+
+		const provider = createProvider(disposables, model);
+		const sessions = provider.getSessions();
+
+		assert.strictEqual(sessions.length, 0);
+	});
+
 	test('onDidChangeSessions fires when agent model changes', () => {
 		const provider = createProvider(disposables, model);
 		provider.getSessions(); // Initialize cache
@@ -378,6 +485,17 @@ suite('CopilotChatSessionsProvider', () => {
 		assert.strictEqual(sessions[0].capabilities.supportsMultipleChats, false);
 	});
 
+	test('claude sessions do not have supportsMultipleChats capability', () => {
+		const resource = URI.from({ scheme: AgentSessionProviders.Claude, path: '/session-1' });
+		model.addSession(createMockAgentSession(resource, { providerType: AgentSessionProviders.Claude }));
+
+		const provider = createProvider(disposables, model, { claudeEnabled: true });
+		const sessions = provider.getSessions();
+
+		assert.strictEqual(sessions.length, 1);
+		assert.strictEqual(sessions[0].capabilities.supportsMultipleChats, false);
+	});
+
 	// ---- Session listing & grouping -------
 
 	test('each session has exactly one chat initially', () => {
@@ -654,6 +772,130 @@ suite('CopilotChatSessionsProvider', () => {
 		assert.strictEqual(provider.browseActions[1].providerId, COPILOT_PROVIDER_ID);
 	});
 
+	// ---- Claude session creation -------
+
+	function makeClaudeInFlightProvider(): { provider: CopilotChatSessionsProvider; cancelRequest: () => void } {
+		let resolveComplete!: () => void;
+		let resolveCreated!: (r: IChatResponseModel) => void;
+		const responseCompletePromise = new Promise<void>(r => { resolveComplete = r; });
+		const responseCreatedPromise = new Promise<IChatResponseModel>(r => { resolveCreated = r; });
+
+		const provider = createProviderForSendTests(disposables, model, async () => ({
+			kind: 'sent' as const,
+			data: {
+				responseCompletePromise,
+				responseCreatedPromise,
+				agent: new class extends mock<IChatAgentData>() { }(),
+			} as IChatSendRequestData,
+		}), { claudeEnabled: true });
+
+		return {
+			provider,
+			cancelRequest: () => {
+				resolveCreated({ isCanceled: true } as unknown as IChatResponseModel);
+				resolveComplete();
+			},
+		};
+	}
+
+	function waitForSessionAdded(provider: CopilotChatSessionsProvider): Promise<void> {
+		return new Promise<void>(resolve => {
+			const d = provider.onDidChangeSessions(e => {
+				if (e.added.length > 0) {
+					d.dispose();
+					resolve();
+				}
+			});
+		});
+	}
+
+	test('createNewSession with Claude type creates a session', async () => {
+		const { provider, cancelRequest } = makeClaudeInFlightProvider();
+		const workspace = URI.file('/test/project');
+
+		const session = provider.createNewSession(workspace, ClaudeCodeSessionType.id);
+
+		assert.ok(session);
+		assert.strictEqual(session.sessionType, ClaudeCodeSessionType.id);
+		assert.strictEqual(session.status.get(), SessionStatus.Untitled);
+
+		// Send and clean up so the session enters the cache and can be disposed
+		const added = waitForSessionAdded(provider);
+		const sendPromise = provider.sendAndCreateChat(session.sessionId, { query: 'test' });
+		await added;
+		cancelRequest();
+		await assert.doesNotReject(sendPromise);
+		await provider.deleteSession(session.sessionId);
+	});
+
+	test('archiveSession archives a Claude temp session', async () => {
+		const { provider, cancelRequest } = makeClaudeInFlightProvider();
+		const workspace = URI.file('/test/project');
+		const session = provider.createNewSession(workspace, ClaudeCodeSessionType.id);
+
+		const added = waitForSessionAdded(provider);
+		const sendPromise = provider.sendAndCreateChat(session.sessionId, { query: 'test' });
+		await added;
+
+		await provider.archiveSession(session.sessionId);
+		assert.strictEqual(provider.getSessions()[0].isArchived.get(), true);
+
+		cancelRequest();
+		await assert.doesNotReject(sendPromise);
+
+		// Clean up
+		await provider.deleteSession(session.sessionId);
+	});
+
+	test('unarchiveSession unarchives a Claude temp session', async () => {
+		const { provider, cancelRequest } = makeClaudeInFlightProvider();
+		const workspace = URI.file('/test/project');
+		const session = provider.createNewSession(workspace, ClaudeCodeSessionType.id);
+
+		const added = waitForSessionAdded(provider);
+		const sendPromise = provider.sendAndCreateChat(session.sessionId, { query: 'test' });
+		await added;
+
+		await provider.archiveSession(session.sessionId);
+		assert.strictEqual(provider.getSessions()[0].isArchived.get(), true);
+
+		await provider.unarchiveSession(session.sessionId);
+		assert.strictEqual(provider.getSessions()[0].isArchived.get(), false);
+
+		cancelRequest();
+		await assert.doesNotReject(sendPromise);
+
+		// Clean up
+		await provider.deleteSession(session.sessionId);
+	});
+
+	// ---- Rename -------
+
+	test('renameChat delegates to claude rename command', async () => {
+		const claudeResource = URI.from({ scheme: AgentSessionProviders.Claude, path: '/claude-session' });
+		model.addSession(createMockAgentSession(claudeResource, { providerType: AgentSessionProviders.Claude }));
+
+		const provider = createProvider(disposables, model, { claudeEnabled: true });
+		const sessions = provider.getSessions();
+		assert.strictEqual(sessions.length, 1);
+
+		// Should not throw — delegates to ICommandService.executeCommand
+		await provider.renameChat(sessions[0].sessionId, claudeResource, 'New Title');
+	});
+
+	test('renameChat throws for unsupported session type', async () => {
+		const resource = URI.from({ scheme: AgentSessionProviders.Cloud, path: '/cloud-session' });
+		model.addSession(createMockAgentSession(resource, { providerType: AgentSessionProviders.Cloud }));
+
+		const provider = createProvider(disposables, model);
+		const sessions = provider.getSessions();
+
+		await assert.rejects(
+			() => provider.renameChat(sessions[0].sessionId, resource, 'New Title'),
+			/not supported/,
+		);
+	});
+
 	// ---- Uncommitted temp session cleanup ------------------------------------
 
 	suite('uncommitted temp session cleanup', () => {
diff --git a/src/vs/sessions/services/sessions/common/session.ts b/src/vs/sessions/services/sessions/common/session.ts
index 2d26f435abf..8d97f27a750 100644
--- a/src/vs/sessions/services/sessions/common/session.ts
+++ b/src/vs/sessions/services/sessions/common/session.ts
@@ -40,6 +40,16 @@ export const CopilotCloudSessionType: ISessionType = {
 	icon: Codicon.cloud,
 };
 
+/** Session type ID for Claude Code sessions. */
+export const CLAUDE_CODE_SESSION_TYPE = 'claude-code';
+
+/** Claude Code session type — local agent powered by Claude. */
+export const ClaudeCodeSessionType: ISessionType = {
+	id: CLAUDE_CODE_SESSION_TYPE,
+	label: localize('claudeCode', "Claude"),
+	icon: Codicon.claude,
+};
+
 export const GITHUB_REMOTE_FILE_SCHEME = 'github-remote-file';
 
 /**