diff --git a/tools/ui/src/lib/components/app/chat/ChatForm/ChatFormCurrentWorkingDirectory/ChatFormCurrentWorkingDirectory.svelte b/tools/ui/src/lib/components/app/chat/ChatForm/ChatFormCurrentWorkingDirectory/ChatFormCurrentWorkingDirectory.svelte
index 307d0e702e..ecd1698467 100644
--- a/tools/ui/src/lib/components/app/chat/ChatForm/ChatFormCurrentWorkingDirectory/ChatFormCurrentWorkingDirectory.svelte
+++ b/tools/ui/src/lib/components/app/chat/ChatForm/ChatFormCurrentWorkingDirectory/ChatFormCurrentWorkingDirectory.svelte
@@ -5,12 +5,12 @@
 	import SearchInput from '$lib/components/app/forms/SearchInput.svelte';
 	import * as Popover from '$lib/components/ui/popover';
 	import { DEFAULT_MOBILE_BREAKPOINT, HOME_TILDE, SEARCH, UI_DATA_ATTRS } from '$lib/constants';
-	import { BuiltInTool, GlobSearchType, KeyboardKey } from '$lib/enums';
+	import { BuiltInTool, GlobSearchType, KeyboardKey, ToolSource } from '$lib/enums';
 	import { useDebouncedSearch } from '$lib/hooks/use-debounced-search.svelte';
 	import { usePickerNavigation } from '$lib/hooks/use-picker-navigation.svelte';
 	import { useScrollActiveRow } from '$lib/hooks/use-scroll-active-row.svelte';
 	import { ToolsService } from '$lib/services/tools.service';
-	import { toolsStore } from '$lib/stores';
+	import { conversationsStore, toolsStore } from '$lib/stores';
 	import type { GlobEntry } from '$lib/types';
 	import {
 		abbreviateHome,
@@ -63,8 +63,11 @@
 	// unavailable instead of firing searches that would only fail. Browse is
 	// hidden too: it resolves the picked folder name through the same tool.
 	const fileSearchKey = $derived(toolsStore.getPermissionKey(BuiltInTool.SERVER_FILE_GLOB_SEARCH));
+	// effective policy: the active conversation's tool policy, or global defaults
 	const fileSearchEnabled = $derived(
-		fileSearchKey !== null && toolsStore.isToolEnabled(fileSearchKey)
+		fileSearchKey !== null &&
+			conversationsStore.preferences.isToolEnabled(fileSearchKey) &&
+			conversationsStore.preferences.isCategoryEnabled(ToolSource.SERVER)
 	);
 	const searchUnavailableMessage = $derived(
 		fileSearchKey === null
diff --git a/tools/ui/src/lib/components/app/chat/ChatForm/ChatFormPickers/ChatFormPickerMention.svelte b/tools/ui/src/lib/components/app/chat/ChatForm/ChatFormPickers/ChatFormPickerMention.svelte
index 5a5c8320f9..d09a3d3cb8 100644
--- a/tools/ui/src/lib/components/app/chat/ChatForm/ChatFormPickers/ChatFormPickerMention.svelte
+++ b/tools/ui/src/lib/components/app/chat/ChatForm/ChatFormPickers/ChatFormPickerMention.svelte
@@ -5,10 +5,16 @@
 	import * as Popover from '$lib/components/ui/popover';
 	import * as Tooltip from '$lib/components/ui/tooltip';
 	import { FILE_GLOB_SEARCH_PICKERS, HOME_TILDE, SEARCH } from '$lib/constants';
-	import { BuiltInTool, FileMentionEntryType, GlobSearchType, KeyboardKey } from '$lib/enums';
+	import {
+		BuiltInTool,
+		FileMentionEntryType,
+		GlobSearchType,
+		KeyboardKey,
+		ToolSource
+	} from '$lib/enums';
 	import { useDebouncedSearch } from '$lib/hooks/use-debounced-search.svelte';
 	import { usePickerNavigation } from '$lib/hooks/use-picker-navigation.svelte';
-	import { deviceStore, settingsStore, toolsStore } from '$lib/stores';
+	import { conversationsStore, deviceStore, settingsStore, toolsStore } from '$lib/stores';
 	import type { FileMentionEntry, GlobEntryResult } from '$lib/types';
 	import { abbreviateHome, runGlobSearchWithChildren } from '$lib/utils';
 
@@ -52,8 +58,11 @@
 	// --tools) or the user disabled it, the picker still opens but explains
 	// why instead of firing searches that would only fail.
 	const fileSearchKey = $derived(toolsStore.getPermissionKey(BuiltInTool.SERVER_FILE_GLOB_SEARCH));
+	// effective policy: the active conversation's tool policy, or global defaults
 	const fileSearchEnabled = $derived(
-		fileSearchKey !== null && toolsStore.isToolEnabled(fileSearchKey)
+		fileSearchKey !== null &&
+			conversationsStore.preferences.isToolEnabled(fileSearchKey) &&
+			conversationsStore.preferences.isCategoryEnabled(ToolSource.SERVER)
 	);
 
 	let searchResults = $state<FileMentionEntry[]>([]);