diff --git a/.changeset/smart-file-mentions.md b/.changeset/smart-file-mentions.md
new file mode 100644
index 0000000000..43e78be726
--- /dev/null
+++ b/.changeset/smart-file-mentions.md
@@ -0,0 +1,5 @@
+---
+"kilo-code": patch
+---
+
+Improve @ file search relevance and keep mention suggestions responsive while typing.
diff --git a/bun.lock b/bun.lock
index 2ff6998e10..81a0d2bc56 100644
--- a/bun.lock
+++ b/bun.lock
@@ -248,6 +248,7 @@
         "dotenv": "^16.4.7",
         "fastest-levenshtein": "^1.0.16",
         "friendly-words": "1.3.1",
+        "fuzzysort": "3.1.0",
         "ignore": "^7.0.3",
         "js-tiktoken": "^1.0.18",
         "lru-cache": "^11.0.2",
diff --git a/packages/kilo-vscode/package.json b/packages/kilo-vscode/package.json
index 48aad4bcc7..83ee754cad 100644
--- a/packages/kilo-vscode/package.json
+++ b/packages/kilo-vscode/package.json
@@ -927,6 +927,7 @@
   },
   "dependencies": {
     "@anthropic-ai/sdk": "^0.39.0",
+    "fuzzysort": "3.1.0",
     "@kilocode/kilo-gateway": "workspace:*",
     "@kilocode/kilo-i18n": "workspace:*",
     "@kilocode/kilo-indexing": "workspace:*",
diff --git a/packages/kilo-vscode/src/kilo-provider-utils.ts b/packages/kilo-vscode/src/kilo-provider-utils.ts
index 8aa963f215..caa1f565e1 100644
--- a/packages/kilo-vscode/src/kilo-provider-utils.ts
+++ b/packages/kilo-vscode/src/kilo-provider-utils.ts
@@ -607,30 +607,3 @@ export function isEventFromForeignProject(event: Event, expectedProjectID: strin
   }
   return false
 }
-
-/**
- * Merge open-tab paths with backend file search results for the @ mention dropdown.
- *
- * Ordering: active file → other open tabs → backend results (all deduplicated).
- * When a query is present, open tabs are filtered to only include matches.
- * The `active` path (if provided) is placed first when it exists in `open`.
- */
-export function mergeFileSearchResults(input: {
-  query: string
-  backend: string[]
-  open: Set<string>
-  active?: string
-}): string[] {
-  const norm = (p: string) => p.replaceAll("\\", "/")
-  const query = norm(input.query).trim().toLowerCase()
-  const open = new Set([...input.open].map(norm))
-  const active = input.active ? norm(input.active) : undefined
-  const backend = input.backend.map(norm)
-  const ok = (p: string) => !query || p.toLowerCase().includes(query)
-  const tabs =
-    active && open.has(active) && ok(active)
-      ? [active, ...[...open].filter((p) => p !== active && ok(p))]
-      : [...open].filter(ok)
-  const seen = new Set(tabs)
-  return [...tabs, ...backend.filter((p) => !seen.has(p))]
-}
diff --git a/packages/kilo-vscode/src/kilo-provider/file-search-items.ts b/packages/kilo-vscode/src/kilo-provider/file-search-items.ts
index 83bb074b64..5b4876f1ad 100644
--- a/packages/kilo-vscode/src/kilo-provider/file-search-items.ts
+++ b/packages/kilo-vscode/src/kilo-provider/file-search-items.ts
@@ -1,4 +1,4 @@
-export type FileSearchItem = { path: string; type: "file" | "folder" }
+export type FileSearchItem = { path: string; type: "file" | "folder" | "opened-file" }
 
 const normalize = (p: string) => p.replaceAll("\\", "/")
 const trim = (p: string) => normalize(p).replace(/\/+$/, "")
@@ -18,9 +18,20 @@ function rank(query: string, p: string): number {
   return 4
 }
 
-export function mergeFileSearchItems(input: { query: string; files: string[]; folders: string[] }): FileSearchItem[] {
+export function mergeFileSearchItems(input: {
+  query: string
+  files: string[]
+  folders: string[]
+  open?: Set<string>
+}): FileSearchItem[] {
   const query = normalize(input.query).trim().toLowerCase()
-  const files = input.files.map((p) => ({ path: normalize(p), type: "file" as const }))
+  const open = new Set([...(input.open ?? [])].map(normalize))
+  const files = input.files.map((p) => {
+    const path = normalize(p)
+    return { path, type: open.has(path) ? ("opened-file" as const) : ("file" as const) }
+  })
+  const pinned = files.filter((item) => item.type === "opened-file")
+  const rest = files.filter((item) => !open.has(item.path))
   // Dedup folders against themselves; a file and a folder that share a stem are distinct entries.
   const seen = new Set<string>()
   const folders = input.folders
@@ -40,6 +51,6 @@ export function mergeFileSearchItems(input: { query: string; files: string[]; fo
 
   const sorted = [...folders].sort((a, b) => a.rank - b.rank || a.index - b.index)
   const boosted = sorted.filter((x) => x.rank <= 1).map((x) => x.item)
-  const rest = sorted.filter((x) => x.rank > 1).map((x) => x.item)
-  return [...boosted, ...files, ...rest]
+  const other = sorted.filter((x) => x.rank > 1).map((x) => x.item)
+  return [...pinned, ...boosted, ...rest, ...other]
 }
diff --git a/packages/kilo-vscode/src/kilo-provider/file-search-results.ts b/packages/kilo-vscode/src/kilo-provider/file-search-results.ts
new file mode 100644
index 0000000000..390fe8a7ea
--- /dev/null
+++ b/packages/kilo-vscode/src/kilo-provider/file-search-results.ts
@@ -0,0 +1,78 @@
+import fuzzysort from "fuzzysort"
+
+function base(p: string): string {
+  const clean = p.replace(/\/+$/, "")
+  return clean.split("/").pop() ?? clean
+}
+
+function depth(p: string): number {
+  return p.split("/").length - 1
+}
+
+function score(query: string, p: string) {
+  const name = base(p)
+  const label = fuzzysort.single(query, name)
+  const path = fuzzysort.single(query, p)
+  return {
+    p,
+    label,
+    path,
+    depth: depth(p),
+  }
+}
+
+function compare(a: ReturnType<typeof score>, b: ReturnType<typeof score>): number {
+  const alabel = a.label !== null
+  const blabel = b.label !== null
+  if (alabel !== blabel) return alabel ? -1 : 1
+
+  const ascore = a.label?.score ?? a.path?.score ?? 0
+  const bscore = b.label?.score ?? b.path?.score ?? 0
+  if (ascore !== bscore) return bscore - ascore
+
+  const aname = base(a.p)
+  const bname = base(b.p)
+  if (aname.length !== bname.length) return aname.length - bname.length
+  if (a.depth !== b.depth) return a.depth - b.depth
+  if (a.p.length !== b.p.length) return a.p.length - b.p.length
+  return a.p.localeCompare(b.p)
+}
+
+function rankOpen(query: string, paths: string[]): string[] {
+  if (!query || !paths.length) return paths
+  const scored: Array<ReturnType<typeof score>> = []
+  for (const p of paths) {
+    const result = score(query, p)
+    if (result.path) scored.push(result)
+  }
+  return scored.sort(compare).map((x) => x.p)
+}
+
+function rankBackend(query: string, paths: string[]): string[] {
+  if (!query || paths.length <= 1) return paths
+  return paths
+    .map((p) => score(query, p))
+    .sort(compare)
+    .map((x) => x.p)
+}
+
+export function mergeFileSearchResults(input: {
+  query: string
+  backend: string[]
+  open: Set<string>
+  active?: string
+}): string[] {
+  const norm = (p: string) => p.replaceAll("\\", "/")
+  const query = norm(input.query).trim().toLowerCase()
+  const open = new Set([...input.open].map(norm))
+  const active = input.active ? norm(input.active) : undefined
+  const backend = input.backend.map(norm)
+  const matched = rankOpen(query, [...open])
+  const tabs = (() => {
+    if (!active || !matched.includes(active)) return matched
+    return [active, ...matched.filter((p) => p !== active)]
+  })()
+  const seen = new Set(tabs)
+  const remaining = backend.filter((p) => !seen.has(p))
+  return [...tabs, ...rankBackend(query, remaining)]
+}
diff --git a/packages/kilo-vscode/src/kilo-provider/file-search.ts b/packages/kilo-vscode/src/kilo-provider/file-search.ts
index dbac4cba7f..712ef68ff4 100644
--- a/packages/kilo-vscode/src/kilo-provider/file-search.ts
+++ b/packages/kilo-vscode/src/kilo-provider/file-search.ts
@@ -1,7 +1,7 @@
 import * as path from "path"
 import * as vscode from "vscode"
 import type { KiloClient } from "@kilocode/sdk/v2/client"
-import { mergeFileSearchResults } from "../kilo-provider-utils"
+import { mergeFileSearchResults } from "./file-search-results"
 import { mergeFileSearchItems } from "./file-search-items"
 
 type Message = {
@@ -42,7 +42,12 @@ export async function handleFileSearch(input: Input): Promise<void> {
     const rel = uri?.scheme === "file" && dir ? path.relative(dir, uri.fsPath) : undefined
     const active = rel && !rel.startsWith("..") && !path.isAbsolute(rel) ? rel.replaceAll("\\", "/") : undefined
     const result = mergeFileSearchResults({ query, backend: files, open, active })
-    const items = mergeFileSearchItems({ query, files: result, folders })
+    const items = mergeFileSearchItems({
+      query,
+      files: result,
+      folders,
+      open: new Set(active ? [active, ...open] : open),
+    })
     input.post({ type: "fileSearchResult", paths: result, items, dir, requestId: input.message.requestId })
   })
 }
diff --git a/packages/kilo-vscode/tests/unit/file-mention-utils.test.ts b/packages/kilo-vscode/tests/unit/file-mention-utils.test.ts
index a35bb14822..2846dd030f 100644
--- a/packages/kilo-vscode/tests/unit/file-mention-utils.test.ts
+++ b/packages/kilo-vscode/tests/unit/file-mention-utils.test.ts
@@ -5,6 +5,7 @@ import {
   buildTextAfterMentionSelect,
   buildFileAttachments,
   buildMentionResults,
+  filterMentionResults,
 } from "../../webview-ui/src/hooks/file-mention-utils"
 
 describe("AT_PATTERN", () => {
@@ -71,6 +72,21 @@ describe("buildMentionResults", () => {
     const result = buildMentionResults("src", [{ path: "src", type: "folder" }])
     expect(result).toEqual([{ type: "folder", value: "src" }])
   })
+
+  it("preserves opened file result type", () => {
+    const result = buildMentionResults("src", [{ path: "src/index.ts", type: "opened-file" }])
+    expect(result).toEqual([{ type: "opened-file", value: "src/index.ts" }])
+  })
+})
+
+describe("filterMentionResults", () => {
+  it("keeps matching file results for the latest query", () => {
+    const result = filterMentionResults("gi", [
+      { type: "file", value: "README.md" },
+      { type: "file", value: "src/git.ts" },
+    ])
+    expect(result).toEqual([{ type: "file", value: "src/git.ts" }])
+  })
 })
 
 describe("syncMentionedPaths", () => {
diff --git a/packages/kilo-vscode/tests/unit/file-search-items.test.ts b/packages/kilo-vscode/tests/unit/file-search-items.test.ts
new file mode 100644
index 0000000000..9b2f9af929
--- /dev/null
+++ b/packages/kilo-vscode/tests/unit/file-search-items.test.ts
@@ -0,0 +1,72 @@
+import { describe, expect, it } from "bun:test"
+import { mergeFileSearchItems } from "../../src/kilo-provider/file-search-items"
+
+describe("mergeFileSearchItems", () => {
+  it("puts exact folder matches before file matches", () => {
+    const result = mergeFileSearchItems({
+      query: "script",
+      files: ["script/hooks", "script/release", "script/beta.ts"],
+      folders: ["script/", "script/run-script/"],
+    })
+    expect(result).toEqual([
+      { path: "script/", type: "folder" },
+      { path: "script/hooks", type: "file" },
+      { path: "script/release", type: "file" },
+      { path: "script/beta.ts", type: "file" },
+      { path: "script/run-script/", type: "folder" },
+    ])
+  })
+
+  it("keeps file ordering before non-prefix folder matches", () => {
+    const result = mergeFileSearchItems({
+      query: "test",
+      files: ["src/test.ts"],
+      folders: ["src/latest/"],
+    })
+    expect(result).toEqual([
+      { path: "src/test.ts", type: "file" },
+      { path: "src/latest/", type: "folder" },
+    ])
+  })
+
+  it("normalizes Windows separators for matching and output", () => {
+    const result = mergeFileSearchItems({
+      query: "kilo-vscode",
+      files: ["packages\\kilo-vscode\\src\\KiloProvider.ts"],
+      folders: ["packages\\kilo-vscode\\"],
+    })
+    expect(result).toEqual([
+      { path: "packages/kilo-vscode/", type: "folder" },
+      { path: "packages/kilo-vscode/src/KiloProvider.ts", type: "file" },
+    ])
+  })
+
+  it("keeps active and open file results before prefix folder matches", () => {
+    const result = mergeFileSearchItems({
+      query: "e",
+      files: ["sdks/vscode/src/extension.ts"],
+      folders: ["packages/extensions/", "packages/example/", "packages/core/src/effect/"],
+      open: new Set(["sdks/vscode/src/extension.ts"]),
+    })
+    expect(result).toEqual([
+      { path: "sdks/vscode/src/extension.ts", type: "opened-file" },
+      { path: "packages/extensions/", type: "folder" },
+      { path: "packages/example/", type: "folder" },
+      { path: "packages/core/src/effect/", type: "folder" },
+    ])
+  })
+
+  it("keeps opened files as a distinct priority group before non-open files", () => {
+    const result = mergeFileSearchItems({
+      query: "test",
+      files: ["src/test.ts", "src/test-helper.ts"],
+      folders: ["test/"],
+      open: new Set(["src/test-helper.ts"]),
+    })
+    expect(result).toEqual([
+      { path: "src/test-helper.ts", type: "opened-file" },
+      { path: "test/", type: "folder" },
+      { path: "src/test.ts", type: "file" },
+    ])
+  })
+})
diff --git a/packages/kilo-vscode/tests/unit/file-search-results.test.ts b/packages/kilo-vscode/tests/unit/file-search-results.test.ts
new file mode 100644
index 0000000000..b1505d65ff
--- /dev/null
+++ b/packages/kilo-vscode/tests/unit/file-search-results.test.ts
@@ -0,0 +1,174 @@
+import { describe, expect, it } from "bun:test"
+import { mergeFileSearchResults } from "../../src/kilo-provider/file-search-results"
+
+describe("mergeFileSearchResults", () => {
+  it("returns backend results when no open files", () => {
+    const result = mergeFileSearchResults({
+      query: "",
+      backend: ["src/a.ts", "src/b.ts"],
+      open: new Set(),
+    })
+    expect(result).toEqual(["src/a.ts", "src/b.ts"])
+  })
+
+  it("places open files before backend results", () => {
+    const result = mergeFileSearchResults({
+      query: "",
+      backend: ["src/a.ts", "src/b.ts", "src/c.ts"],
+      open: new Set(["src/c.ts", "src/d.ts"]),
+    })
+    expect(result).toEqual(["src/c.ts", "src/d.ts", "src/a.ts", "src/b.ts"])
+  })
+
+  it("places active file first among open files", () => {
+    const result = mergeFileSearchResults({
+      query: "",
+      backend: ["src/a.ts"],
+      open: new Set(["src/b.ts", "src/c.ts"]),
+      active: "src/c.ts",
+    })
+    expect(result).toEqual(["src/c.ts", "src/b.ts", "src/a.ts"])
+  })
+
+  it("ignores active file when it is not in open set", () => {
+    const result = mergeFileSearchResults({
+      query: "",
+      backend: ["src/a.ts"],
+      open: new Set(["src/b.ts"]),
+      active: "src/x.ts",
+    })
+    expect(result).toEqual(["src/b.ts", "src/a.ts"])
+  })
+
+  it("deduplicates open files from backend results", () => {
+    const result = mergeFileSearchResults({
+      query: "",
+      backend: ["src/a.ts", "src/b.ts"],
+      open: new Set(["src/a.ts"]),
+    })
+    expect(result).toEqual(["src/a.ts", "src/b.ts"])
+  })
+
+  it("filters open files by query", () => {
+    const result = mergeFileSearchResults({
+      query: "config",
+      backend: ["src/config.ts", "src/util.ts"],
+      open: new Set(["src/index.ts", "src/config.ts", "README.md"]),
+    })
+    expect(result).toEqual(["src/config.ts", "src/util.ts"])
+  })
+
+  it("query filtering is case-insensitive", () => {
+    const result = mergeFileSearchResults({
+      query: "READ",
+      backend: [],
+      open: new Set(["README.md", "src/index.ts"]),
+    })
+    expect(result).toEqual(["README.md"])
+  })
+
+  it("shows all open files on empty query", () => {
+    const result = mergeFileSearchResults({
+      query: "",
+      backend: [],
+      open: new Set(["src/a.ts", "src/b.ts"]),
+    })
+    expect(result).toEqual(["src/a.ts", "src/b.ts"])
+  })
+
+  it("shows all open files on whitespace-only query", () => {
+    const result = mergeFileSearchResults({
+      query: "  ",
+      backend: ["src/x.ts"],
+      open: new Set(["src/a.ts"]),
+    })
+    expect(result).toEqual(["src/a.ts", "src/x.ts"])
+  })
+
+  it("handles forward-slash paths (Windows-normalized)", () => {
+    const result = mergeFileSearchResults({
+      query: "",
+      backend: ["src/utils/path.ts"],
+      open: new Set(["src/utils/path.ts", "src/index.ts"]),
+      active: "src/utils/path.ts",
+    })
+    expect(result).toEqual(["src/utils/path.ts", "src/index.ts"])
+  })
+
+  it("normalizes backslash paths before filtering and deduping", () => {
+    const result = mergeFileSearchResults({
+      query: "utils/path",
+      backend: ["src\\utils\\path.ts"],
+      open: new Set(["src/utils/path.ts"]),
+      active: "src\\utils\\path.ts",
+    })
+    expect(result).toEqual(["src/utils/path.ts"])
+  })
+
+  it("includes open tabs that fuzzy-match but are not substring matches", () => {
+    const result = mergeFileSearchResults({
+      query: "authn",
+      backend: [],
+      open: new Set(["authentication.ts", "unrelated.ts"]),
+    })
+    expect(result).toContain("authentication.ts")
+    expect(result).not.toContain("unrelated.ts")
+  })
+
+  it("ranks open tabs by fuzzy match quality, not insertion order", () => {
+    const result = mergeFileSearchResults({
+      query: "auth",
+      backend: [],
+      open: new Set(["long-authentication-module.ts", "auth.ts"]),
+    })
+    expect(result[0]).toBe("auth.ts")
+  })
+
+  it("ranks open tabs by filename before directory matches", () => {
+    const result = mergeFileSearchResults({
+      query: "provider",
+      backend: [],
+      open: new Set(["src/provider/auth.ts", "src/provider.ts"]),
+    })
+    expect(result).toEqual(["src/provider.ts", "src/provider/auth.ts"])
+  })
+
+  it("boosts backend results where query matches the basename over full-path matches", () => {
+    const result = mergeFileSearchResults({
+      query: "auth",
+      backend: ["src/authentication-module.ts", "packages/a/b/c/d/auth.ts"],
+      open: new Set(),
+    })
+    expect(result.indexOf("packages/a/b/c/d/auth.ts")).toBeLessThan(result.indexOf("src/authentication-module.ts"))
+  })
+
+  it("uses path depth as tiebreaker when basename scores are equal", () => {
+    const result = mergeFileSearchResults({
+      query: "auth",
+      backend: ["a/b/c/d/e/auth-service.ts", "src/auth-service.ts"],
+      open: new Set(),
+    })
+    expect(result.indexOf("src/auth-service.ts")).toBeLessThan(result.indexOf("a/b/c/d/e/auth-service.ts"))
+  })
+
+  it("uses filename length as tiebreaker before path depth", () => {
+    const result = mergeFileSearchResults({
+      query: "auth",
+      backend: ["src/authentication-module.ts", "a/b/c/auth.ts"],
+      open: new Set(),
+    })
+    expect(result[0]).toBe("a/b/c/auth.ts")
+  })
+
+  it("preserves camel-case scoring for acronym-style queries", () => {
+    const result = mergeFileSearchResults({
+      query: "amprov",
+      backend: [
+        "packages/kilo-docs/pages/contributing/architecture/onboarding-improvements.md",
+        "packages/kilo-vscode/src/agent-manager/AgentManagerProvider.ts",
+      ],
+      open: new Set(),
+    })
+    expect(result[0]).toBe("packages/kilo-vscode/src/agent-manager/AgentManagerProvider.ts")
+  })
+})
diff --git a/packages/kilo-vscode/tests/unit/kilo-provider-utils.test.ts b/packages/kilo-vscode/tests/unit/kilo-provider-utils.test.ts
index 06641023b9..d54327ad3e 100644
--- a/packages/kilo-vscode/tests/unit/kilo-provider-utils.test.ts
+++ b/packages/kilo-vscode/tests/unit/kilo-provider-utils.test.ts
@@ -8,12 +8,10 @@ import {
   isEventFromForeignProject,
   mapCloudSessionMessageToWebviewMessage,
   MessageConfirmation,
-  mergeFileSearchResults,
   getErrorMessage,
   getConfigErrorDetails,
   type ProviderInfo,
 } from "../../src/kilo-provider-utils"
-import { mergeFileSearchItems } from "../../src/kilo-provider/file-search-items"
 import type { CloudSessionMessage } from "../../src/services/cli-backend/types"
 import type {
   Session,
@@ -607,152 +605,6 @@ describe("mapCloudSessionMessage", () => {
   })
 })
 
-describe("mergeFileSearchItems", () => {
-  it("puts exact folder matches before file matches", () => {
-    const result = mergeFileSearchItems({
-      query: "script",
-      files: ["script/hooks", "script/release", "script/beta.ts"],
-      folders: ["script/", "script/run-script/"],
-    })
-    expect(result).toEqual([
-      { path: "script/", type: "folder" },
-      { path: "script/hooks", type: "file" },
-      { path: "script/release", type: "file" },
-      { path: "script/beta.ts", type: "file" },
-      { path: "script/run-script/", type: "folder" },
-    ])
-  })
-
-  it("keeps file ordering before non-prefix folder matches", () => {
-    const result = mergeFileSearchItems({
-      query: "test",
-      files: ["src/test.ts"],
-      folders: ["src/latest/"],
-    })
-    expect(result).toEqual([
-      { path: "src/test.ts", type: "file" },
-      { path: "src/latest/", type: "folder" },
-    ])
-  })
-
-  it("normalizes Windows separators for matching and output", () => {
-    const result = mergeFileSearchItems({
-      query: "kilo-vscode",
-      files: ["packages\\kilo-vscode\\src\\KiloProvider.ts"],
-      folders: ["packages\\kilo-vscode\\"],
-    })
-    expect(result).toEqual([
-      { path: "packages/kilo-vscode/", type: "folder" },
-      { path: "packages/kilo-vscode/src/KiloProvider.ts", type: "file" },
-    ])
-  })
-})
-
-describe("mergeFileSearchResults", () => {
-  it("returns backend results when no open files", () => {
-    const result = mergeFileSearchResults({
-      query: "",
-      backend: ["src/a.ts", "src/b.ts"],
-      open: new Set(),
-    })
-    expect(result).toEqual(["src/a.ts", "src/b.ts"])
-  })
-
-  it("places open files before backend results", () => {
-    const result = mergeFileSearchResults({
-      query: "",
-      backend: ["src/a.ts", "src/b.ts", "src/c.ts"],
-      open: new Set(["src/c.ts", "src/d.ts"]),
-    })
-    expect(result).toEqual(["src/c.ts", "src/d.ts", "src/a.ts", "src/b.ts"])
-  })
-
-  it("places active file first among open files", () => {
-    const result = mergeFileSearchResults({
-      query: "",
-      backend: ["src/a.ts"],
-      open: new Set(["src/b.ts", "src/c.ts"]),
-      active: "src/c.ts",
-    })
-    expect(result).toEqual(["src/c.ts", "src/b.ts", "src/a.ts"])
-  })
-
-  it("ignores active file when it is not in open set", () => {
-    const result = mergeFileSearchResults({
-      query: "",
-      backend: ["src/a.ts"],
-      open: new Set(["src/b.ts"]),
-      active: "src/x.ts",
-    })
-    expect(result).toEqual(["src/b.ts", "src/a.ts"])
-  })
-
-  it("deduplicates open files from backend results", () => {
-    const result = mergeFileSearchResults({
-      query: "",
-      backend: ["src/a.ts", "src/b.ts"],
-      open: new Set(["src/a.ts"]),
-    })
-    expect(result).toEqual(["src/a.ts", "src/b.ts"])
-  })
-
-  it("filters open files by query", () => {
-    const result = mergeFileSearchResults({
-      query: "config",
-      backend: ["src/config.ts", "src/util.ts"],
-      open: new Set(["src/index.ts", "src/config.ts", "README.md"]),
-    })
-    expect(result).toEqual(["src/config.ts", "src/util.ts"])
-  })
-
-  it("query filtering is case-insensitive", () => {
-    const result = mergeFileSearchResults({
-      query: "READ",
-      backend: [],
-      open: new Set(["README.md", "src/index.ts"]),
-    })
-    expect(result).toEqual(["README.md"])
-  })
-
-  it("shows all open files on empty query", () => {
-    const result = mergeFileSearchResults({
-      query: "",
-      backend: [],
-      open: new Set(["src/a.ts", "src/b.ts"]),
-    })
-    expect(result).toEqual(["src/a.ts", "src/b.ts"])
-  })
-
-  it("shows all open files on whitespace-only query", () => {
-    const result = mergeFileSearchResults({
-      query: "  ",
-      backend: ["src/x.ts"],
-      open: new Set(["src/a.ts"]),
-    })
-    expect(result).toEqual(["src/a.ts", "src/x.ts"])
-  })
-
-  it("handles forward-slash paths (Windows-normalized)", () => {
-    const result = mergeFileSearchResults({
-      query: "",
-      backend: ["src/utils/path.ts"],
-      open: new Set(["src/utils/path.ts", "src/index.ts"]),
-      active: "src/utils/path.ts",
-    })
-    expect(result).toEqual(["src/utils/path.ts", "src/index.ts"])
-  })
-
-  it("normalizes backslash paths before filtering and deduping", () => {
-    const result = mergeFileSearchResults({
-      query: "utils/path",
-      backend: ["src\\utils\\path.ts"],
-      open: new Set(["src/utils/path.ts"]),
-      active: "src\\utils\\path.ts",
-    })
-    expect(result).toEqual(["src/utils/path.ts"])
-  })
-})
-
 describe("getErrorMessage", () => {
   it("extracts message from an Error instance", () => {
     expect(getErrorMessage(new Error("boom"))).toBe("boom")
diff --git a/packages/kilo-vscode/tests/unit/use-file-mention.test.ts b/packages/kilo-vscode/tests/unit/use-file-mention.test.ts
new file mode 100644
index 0000000000..af846de7b7
--- /dev/null
+++ b/packages/kilo-vscode/tests/unit/use-file-mention.test.ts
@@ -0,0 +1,128 @@
+import { describe, expect, it } from "bun:test"
+import { createRoot } from "solid-js"
+import { useFileMention } from "../../webview-ui/src/hooks/useFileMention"
+import type { ExtensionMessage, WebviewMessage } from "../../webview-ui/src/types/messages"
+
+const wait = (ms: number) => new Promise((resolve) => setTimeout(resolve, ms))
+
+describe("useFileMention", () => {
+  it("keeps previous file results visible while the next search is pending", async () => {
+    const posted: WebviewMessage[] = []
+    const handlers = new Set<(message: ExtensionMessage) => void>()
+    const ctx = {
+      postMessage: (message: WebviewMessage) => posted.push(message),
+      onMessage: (handler: (message: ExtensionMessage) => void) => {
+        handlers.add(handler)
+        return () => handlers.delete(handler)
+      },
+    }
+
+    const dispose: { fn?: () => void } = {}
+    const mention = createRoot((root) => {
+      dispose.fn = root
+      return useFileMention(ctx, undefined, () => false)
+    })
+
+    mention.onInput("@e", 2)
+    await wait(170)
+
+    const first = posted.at(-1)
+    expect(first?.type).toBe("requestFileSearch")
+    expect(first).toMatchObject({ query: "e", requestId: "file-search-1" })
+
+    for (const handler of handlers) {
+      handler({
+        type: "fileSearchResult",
+        requestId: "file-search-1",
+        dir: "/repo",
+        paths: ["sdks/vscode/src/extension.ts"],
+        items: [{ path: "sdks/vscode/src/extension.ts", type: "opened-file" }],
+      })
+    }
+
+    expect(mention.mentionResults()).toEqual([{ type: "opened-file", value: "sdks/vscode/src/extension.ts" }])
+
+    mention.onInput("@ex", 3)
+
+    expect(mention.mentionResults()).toEqual([{ type: "opened-file", value: "sdks/vscode/src/extension.ts" }])
+
+    dispose.fn?.()
+  })
+
+  it("does not keep stale file results visible for unrelated queries", async () => {
+    const posted: WebviewMessage[] = []
+    const handlers = new Set<(message: ExtensionMessage) => void>()
+    const ctx = {
+      postMessage: (message: WebviewMessage) => posted.push(message),
+      onMessage: (handler: (message: ExtensionMessage) => void) => {
+        handlers.add(handler)
+        return () => handlers.delete(handler)
+      },
+    }
+
+    const dispose: { fn?: () => void } = {}
+    const mention = createRoot((root) => {
+      dispose.fn = root
+      return useFileMention(ctx, undefined, () => false)
+    })
+
+    mention.onInput("@read", 5)
+    await wait(170)
+
+    for (const handler of handlers) {
+      handler({
+        type: "fileSearchResult",
+        requestId: "file-search-1",
+        dir: "/repo",
+        paths: ["README.md"],
+        items: [{ path: "README.md", type: "file" }],
+      })
+    }
+
+    mention.onInput("@zz", 3)
+
+    expect(mention.mentionResults()).toEqual([])
+
+    dispose.fn?.()
+  })
+
+  it("filters visible results synchronously while a new search is pending", async () => {
+    const posted: WebviewMessage[] = []
+    const handlers = new Set<(message: ExtensionMessage) => void>()
+    const ctx = {
+      postMessage: (message: WebviewMessage) => posted.push(message),
+      onMessage: (handler: (message: ExtensionMessage) => void) => {
+        handlers.add(handler)
+        return () => handlers.delete(handler)
+      },
+    }
+
+    const dispose: { fn?: () => void } = {}
+    const mention = createRoot((root) => {
+      dispose.fn = root
+      return useFileMention(ctx, undefined, () => false)
+    })
+
+    mention.onInput("@g", 2)
+    await wait(170)
+
+    for (const handler of handlers) {
+      handler({
+        type: "fileSearchResult",
+        requestId: "file-search-1",
+        dir: "/repo",
+        paths: ["README.md", "src/git.ts"],
+        items: [
+          { path: "README.md", type: "file" },
+          { path: "src/git.ts", type: "file" },
+        ],
+      })
+    }
+
+    mention.onInput("@gi", 3)
+
+    expect(mention.mentionResults()).toEqual([{ type: "file", value: "src/git.ts" }])
+
+    dispose.fn?.()
+  })
+})
diff --git a/packages/kilo-vscode/webview-ui/src/hooks/file-mention-utils.ts b/packages/kilo-vscode/webview-ui/src/hooks/file-mention-utils.ts
index 9617fcac5e..43d704e55a 100644
--- a/packages/kilo-vscode/webview-ui/src/hooks/file-mention-utils.ts
+++ b/packages/kilo-vscode/webview-ui/src/hooks/file-mention-utils.ts
@@ -8,6 +8,7 @@ export type MentionResult =
   | { type: "terminal"; value: typeof TERMINAL_MENTION; label: string; description: string }
   | { type: "git-changes"; value: typeof GIT_CHANGES_MENTION; label: string; description: string }
   | { type: "file"; value: string }
+  | { type: "opened-file"; value: string }
   | { type: "folder"; value: string }
 
 export const TERMINAL_RESULT: MentionResult = {
@@ -47,11 +48,22 @@ export function buildMentionResults(query: string, items: Array<FileSearchItem |
   const results: MentionResult[] = items.map((item) => {
     if (typeof item === "string") return { type: "file", value: item }
     if (item.type === "folder") return { type: "folder", value: item.path }
+    if (item.type === "opened-file") return { type: "opened-file", value: item.path }
     return { type: "file", value: item.path }
   })
   return [...getTerminalMentionResult(query), ...(git ? getGitChangesMentionResult(query) : []), ...results]
 }
 
+export function filterMentionResults(query: string, items: MentionResult[]): MentionResult[] {
+  const value = query.toLowerCase()
+  if (!value) return items
+  return items.filter((item) => {
+    if (item.type === "terminal") return TERMINAL_MENTION.startsWith(value)
+    if (item.type === "git-changes") return GIT_CHANGES_MENTION.startsWith(value) || "git".startsWith(value)
+    return item.value.toLowerCase().includes(value)
+  })
+}
+
 /**
  * Sync the set of mentioned paths against the current text.
  * Removes any paths that are no longer present in the text as @path mentions.
diff --git a/packages/kilo-vscode/webview-ui/src/hooks/useFileMention.ts b/packages/kilo-vscode/webview-ui/src/hooks/useFileMention.ts
index 0060e0b63c..479f7a158b 100644
--- a/packages/kilo-vscode/webview-ui/src/hooks/useFileMention.ts
+++ b/packages/kilo-vscode/webview-ui/src/hooks/useFileMention.ts
@@ -7,6 +7,7 @@ import {
   buildTextAfterMentionSelect,
   buildFileAttachments,
   buildMentionResults,
+  filterMentionResults,
   type MentionResult,
 } from "./file-mention-utils"
 
@@ -120,7 +121,7 @@ export function useFileMention(
     textarea.setSelectionRange(pos, pos)
     textarea.focus()
 
-    if (result.type === "file" || result.type === "folder")
+    if (result.type === "file" || result.type === "folder" || result.type === "opened-file")
       setMentionedPaths((prev) => new Set([...prev, result.value]))
     closeMention()
     onSelect?.()
@@ -133,7 +134,12 @@ export function useFileMention(
     if (match) {
       const query = match[1] ?? ""
       setMentionQuery(query)
-      setMentionResults(buildMentionResults(query, [], git?.() ?? true))
+      setMentionResults((prev) => {
+        const next = filterMentionResults(query, prev)
+        if (next.length) return next
+        return buildMentionResults(query, [], git?.() ?? true)
+      })
+      setMentionIndex(0)
       requestFileSearch(query)
     } else {
       closeMention()
diff --git a/packages/kilo-vscode/webview-ui/src/types/messages/extension-messages.ts b/packages/kilo-vscode/webview-ui/src/types/messages/extension-messages.ts
index 611573b2fa..9f253bf037 100644
--- a/packages/kilo-vscode/webview-ui/src/types/messages/extension-messages.ts
+++ b/packages/kilo-vscode/webview-ui/src/types/messages/extension-messages.ts
@@ -334,7 +334,7 @@ export interface ChatCompletionResultMessage {
 
 export interface FileSearchItem {
   path: string
-  type: "file" | "folder"
+  type: "file" | "folder" | "opened-file"
 }
 
 export interface FileSearchResultMessage {