diff --git a/core/autocomplete/CompletionProvider.ts b/core/autocomplete/CompletionProvider.ts
index 377dfa1e513..6deb9d132e1 100644
--- a/core/autocomplete/CompletionProvider.ts
+++ b/core/autocomplete/CompletionProvider.ts
@@ -215,12 +215,6 @@ export class CompletionProvider {
         const multiline =
           !helper.options.transform || shouldCompleteMultiline(helper);
 
-        const rawGeneration = await llm.complete(
-          prompt,
-          token,
-          completionOptions,
-        );
-
         const completionStream =
           this.completionStreamer.streamCompletionWithFilters(
             token,
diff --git a/core/config/loadLocalAssistants.ts b/core/config/loadLocalAssistants.ts
index b6a29212d33..2a8135dc14a 100644
--- a/core/config/loadLocalAssistants.ts
+++ b/core/config/loadLocalAssistants.ts
@@ -35,7 +35,11 @@ async function getDefinitionFilesInDir(
     }
 
     const overrideDefaultIgnores = ignore()
-      .add(DEFAULT_IGNORE_FILETYPES.filter((t) => t !== "config.yaml"))
+      .add(
+        DEFAULT_IGNORE_FILETYPES.filter(
+          (t) => t !== "config.yaml" && t !== "config.yml",
+        ),
+      )
       .add(DEFAULT_IGNORE_DIRS);
 
     const uris = await walkDir(dir, ide, {
diff --git a/core/config/loadLocalAssistants.vitest.ts b/core/config/loadLocalAssistants.vitest.ts
index 8527eada5db..316687db1d1 100644
--- a/core/config/loadLocalAssistants.vitest.ts
+++ b/core/config/loadLocalAssistants.vitest.ts
@@ -18,6 +18,8 @@ describe("ASSISTANTS getAllDotContinueDefinitionFiles with fileExtType option",
       [".continue/assistants/assistant2.yml", "yaml content 2"],
       [".continue/assistants/assistant3.md", "markdown content 1"],
       [".continue/assistants/assistant4.txt", "txt content"],
+      [".continue/assistants/config.yaml", "txt content"],
+      [".continue/assistants/config.yml", "txt content"],
     ]);
   });
 
@@ -38,9 +40,14 @@ describe("ASSISTANTS getAllDotContinueDefinitionFiles with fileExtType option",
       options,
       "assistants",
     );
-    expect(result).toHaveLength(2);
+    expect(result).toHaveLength(4);
     expect(result.map((f) => f.path.split("/").pop())).toEqual(
-      expect.arrayContaining(["assistant1.yaml", "assistant2.yml"]),
+      expect.arrayContaining([
+        "assistant1.yaml",
+        "assistant2.yml",
+        "config.yaml",
+        "config.yml",
+      ]),
     );
     expect(result.map((f) => f.path.split("/").pop())).not.toContain(
       "assistant3.md",
@@ -69,6 +76,12 @@ describe("ASSISTANTS getAllDotContinueDefinitionFiles with fileExtType option",
     expect(result.map((f) => f.path.split("/").pop())).not.toContain(
       "assistant2.yml",
     );
+    expect(result.map((f) => f.path.split("/").pop())).not.toContain(
+      "config.yml",
+    );
+    expect(result.map((f) => f.path.split("/").pop())).not.toContain(
+      "config.yaml",
+    );
   });
 
   it("should return all supported files when fileExtType is not specified", async () => {
@@ -83,11 +96,13 @@ describe("ASSISTANTS getAllDotContinueDefinitionFiles with fileExtType option",
       options,
       "assistants",
     );
-    expect(result).toHaveLength(3);
+    expect(result).toHaveLength(5);
     expect(result.map((f) => f.path.split("/").pop())).toEqual(
       expect.arrayContaining([
         "assistant1.yaml",
         "assistant2.yml",
+        "config.yml",
+        "config.yaml",
         "assistant3.md",
       ]),
     );
@@ -124,9 +139,14 @@ describe("ASSISTANTS getAllDotContinueDefinitionFiles with fileExtType option",
       workspaceOnOptions,
       "assistants",
     );
-    expect(workspaceResult).toHaveLength(2);
+    expect(workspaceResult).toHaveLength(4);
     expect(workspaceResult.map((f) => f.path.split("/").pop())).toEqual(
-      expect.arrayContaining(["assistant1.yaml", "assistant2.yml"]),
+      expect.arrayContaining([
+        "assistant1.yaml",
+        "assistant2.yml",
+        "config.yaml",
+        "config.yml",
+      ]),
     );
   });
 
@@ -187,7 +207,7 @@ describe("ASSISTANTS getAllDotContinueDefinitionFiles with fileExtType option",
       options,
       "assistants",
     );
-    expect(result).toHaveLength(2);
+    expect(result).toHaveLength(4);
     const yamlFile = result.find((f) => f.path.includes("assistant1.yaml"));
     expect(yamlFile?.content).toBe("yaml content 1");
   });
@@ -212,9 +232,14 @@ describe("ASSISTANTS getAllDotContinueDefinitionFiles with fileExtType option",
       "assistants",
     );
     // Should only get lowercase extensions (current implementation)
-    expect(yamlResult).toHaveLength(2);
+    expect(yamlResult).toHaveLength(4);
     expect(yamlResult.map((f) => f.path.split("/").pop())).toEqual(
-      expect.arrayContaining(["assistant1.yaml", "assistant2.yml"]),
+      expect.arrayContaining([
+        "assistant1.yaml",
+        "assistant2.yml",
+        "config.yaml",
+        "config.yml",
+      ]),
     );
     expect(yamlResult.map((f) => f.path.split("/").pop())).not.toContain(
       "assistant5.YAML",
diff --git a/core/nextEdit/NextEditLoggingService.ts b/core/nextEdit/NextEditLoggingService.ts
index 7c448f2d746..4ed9ed4e9bf 100644
--- a/core/nextEdit/NextEditLoggingService.ts
+++ b/core/nextEdit/NextEditLoggingService.ts
@@ -11,6 +11,16 @@ export class NextEditLoggingService {
   private _abortControllers = new Map<string, AbortController>();
   private _logRejectionTimeouts = new Map<string, NodeJS.Timeout>();
   private _outcomes = new Map<string, NextEditOutcome>();
+  // Track minimal data for completions that get aborted before we have full outcome.
+  private _pendingCompletions = new Map<
+    string,
+    {
+      startTime: number;
+      modelName?: string;
+      modelProvider?: string;
+      filepath?: string;
+    }
+  >();
   _lastDisplayedCompletion: { id: string; displayedAt: number } | undefined =
     undefined;
 
@@ -26,21 +36,54 @@ export class NextEditLoggingService {
   public createAbortController(completionId: string): AbortController {
     const abortController = new AbortController();
     this._abortControllers.set(completionId, abortController);
+    this.trackPendingCompletion(completionId);
     return abortController;
   }
 
   public deleteAbortController(completionId: string) {
     this._abortControllers.delete(completionId);
+    this._pendingCompletions.delete(completionId);
+  }
+
+  // Keep track of a new completion request.
+  public trackPendingCompletion(completionId: string) {
+    this._pendingCompletions.set(completionId, {
+      startTime: Date.now(),
+    });
+  }
+
+  // Update pending completion info as it becomes available.
+  public updatePendingCompletion(
+    completionId: string,
+    data: {
+      modelName?: string;
+      modelProvider?: string;
+      filepath?: string;
+    },
+  ) {
+    const pending = this._pendingCompletions.get(completionId);
+    if (pending) {
+      this._pendingCompletions.set(completionId, { ...pending, ...data });
+    } else {
+      // If we haven't tracked it yet, create new entry with provided data.
+      this._pendingCompletions.set(completionId, {
+        startTime: Date.now(),
+        ...data,
+      });
+    }
   }
 
   public cancel() {
-    this._abortControllers.forEach((abortController, id) => {
+    this._abortControllers.forEach((abortController, completionId) => {
+      this.handleAbort(completionId);
       abortController.abort();
     });
     this._abortControllers.clear();
   }
 
   public accept(completionId: string): NextEditOutcome | undefined {
+    this._pendingCompletions.delete(completionId);
+
     if (this._logRejectionTimeouts.has(completionId)) {
       clearTimeout(this._logRejectionTimeouts.get(completionId));
       this._logRejectionTimeouts.delete(completionId);
@@ -48,6 +91,7 @@ export class NextEditLoggingService {
     if (this._outcomes.has(completionId)) {
       const outcome = this._outcomes.get(completionId)!;
       outcome.accepted = true;
+      outcome.aborted = false;
       this.logNextEditOutcome(outcome);
       this._outcomes.delete(completionId);
       return outcome;
@@ -55,6 +99,8 @@ export class NextEditLoggingService {
   }
 
   public reject(completionId: string): NextEditOutcome | undefined {
+    this._pendingCompletions.delete(completionId);
+
     if (this._logRejectionTimeouts.has(completionId)) {
       clearTimeout(this._logRejectionTimeouts.get(completionId));
       this._logRejectionTimeouts.delete(completionId);
@@ -63,6 +109,7 @@ export class NextEditLoggingService {
     if (this._outcomes.has(completionId)) {
       const outcome = this._outcomes.get(completionId)!;
       outcome.accepted = false;
+      outcome.aborted = false;
       this.logNextEditOutcome(outcome);
       this._outcomes.delete(completionId);
       return outcome;
@@ -86,12 +133,19 @@ export class NextEditLoggingService {
   }
 
   public markDisplayed(completionId: string, outcome: NextEditOutcome) {
+    // Remove from pending since we now have full data.
+    this._pendingCompletions.delete(completionId);
+    outcome.aborted = false;
+
     const logRejectionTimeout = setTimeout(() => {
       // Wait 10 seconds, then assume it wasn't accepted
       outcome.accepted = false;
+      outcome.aborted = false;
       this.logNextEditOutcome(outcome);
       this._logRejectionTimeouts.delete(completionId);
+      this._outcomes.delete(completionId);
     }, COUNT_COMPLETION_REJECTED_AFTER);
+
     this._outcomes.set(completionId, outcome);
     this._logRejectionTimeouts.set(completionId, logRejectionTimeout);
 
@@ -124,7 +178,62 @@ export class NextEditLoggingService {
     };
   }
 
+  public handleAbort(completionId: string) {
+    // Clear any pending rejection timeout.
+    if (this._logRejectionTimeouts.has(completionId)) {
+      clearTimeout(this._logRejectionTimeouts.get(completionId));
+      this._logRejectionTimeouts.delete(completionId);
+    }
+
+    // If we have the full outcome, log it as aborted.
+    if (this._outcomes.has(completionId)) {
+      const outcome = this._outcomes.get(completionId)!;
+      outcome.accepted = false;
+      outcome.aborted = true;
+      this.logNextEditOutcome(outcome);
+      this._outcomes.delete(completionId);
+    } else {
+      // Log minimal abort event for requests that never got displayed.
+      const pendingData = this._pendingCompletions.get(completionId);
+
+      const minimalAbortOutcome: Partial<NextEditOutcome> = {
+        completionId,
+        accepted: false,
+        aborted: true,
+        timestamp: Date.now(),
+        uniqueId: completionId,
+        elapsed: pendingData ? Date.now() - pendingData.startTime : 0,
+        modelName: pendingData?.modelName || "unknown",
+        modelProvider: pendingData?.modelProvider || "unknown",
+        fileUri: pendingData?.filepath || "unknown",
+
+        // Empty/default values for fields we don't have.
+        completion: "",
+        prompt: "",
+        userEdits: "",
+        userExcerpts: "",
+        originalEditableRange: "",
+        workspaceDirUri: "",
+        cursorPosition: { line: -1, character: -1 },
+        finalCursorPosition: { line: -1, character: -1 },
+        editableRegionStartLine: -1,
+        editableRegionEndLine: -1,
+        diffLines: [],
+        completionOptions: {},
+      };
+
+      this.logNextEditOutcome(minimalAbortOutcome as NextEditOutcome);
+    }
+
+    // Clean up.
+    this._pendingCompletions.delete(completionId);
+  }
+
   private logNextEditOutcome(outcome: NextEditOutcome) {
+    if (outcome.aborted === undefined) {
+      outcome.aborted = false;
+    }
+
     void DataLogger.getInstance().logDevData({
       name: "nextEditOutcome",
       data: outcome,
diff --git a/core/nextEdit/NextEditProvider.ts b/core/nextEdit/NextEditProvider.ts
index 5bd199e050e..ebd9f5641a0 100644
--- a/core/nextEdit/NextEditProvider.ts
+++ b/core/nextEdit/NextEditProvider.ts
@@ -311,7 +311,11 @@ export class NextEditProvider {
         input.completionId,
       );
       token = controller.signal;
+    } else {
+      // Token was provided externally, just track the completion.
+      this.loggingService.trackPendingCompletion(input.completionId);
     }
+
     const startTime = Date.now();
     const options = await this._getAutocompleteOptions();
 
@@ -325,6 +329,13 @@ export class NextEditProvider {
       return { token, startTime, helper: undefined };
     }
 
+    // Update pending completion with model info.
+    this.loggingService.updatePendingCompletion(input.completionId, {
+      modelName: llm.model,
+      modelProvider: llm.providerName,
+      filepath: input.filepath,
+    });
+
     // Check model capabilities
     if (!modelSupportsNextEdit(llm.capabilities, llm.model, llm.title)) {
       console.error(`${llm.model} is not capable of next edit.`);
diff --git a/core/nextEdit/providers/BaseNextEditProvider.ts b/core/nextEdit/providers/BaseNextEditProvider.ts
index 02d9c3998a9..5b99af811b9 100644
--- a/core/nextEdit/providers/BaseNextEditProvider.ts
+++ b/core/nextEdit/providers/BaseNextEditProvider.ts
@@ -298,7 +298,7 @@ export abstract class BaseNextEditProvider {
     return {
       elapsed: Date.now() - outcomeCtx.startTime,
       modelProvider: outcomeCtx.llm.underlyingProviderName,
-      modelName: outcomeCtx.llm.model + ":zetaDataset",
+      modelName: outcomeCtx.llm.model,
       completionOptions: null,
       completionId:
         outcomeCtx.completionId || outcomeCtx.helper.input.completionId,
diff --git a/core/nextEdit/types.ts b/core/nextEdit/types.ts
index 78ca343aedc..8d08f8216be 100644
--- a/core/nextEdit/types.ts
+++ b/core/nextEdit/types.ts
@@ -63,6 +63,7 @@ export interface NextEditOutcome extends TabAutocompleteOptions {
   cursorPosition: { line: number; character: number };
   finalCursorPosition: { line: number; character: number };
   accepted?: boolean;
+  aborted?: boolean;
   editableRegionStartLine: number;
   editableRegionEndLine: number;
   diffLines: DiffLine[];
diff --git a/extensions/vscode/e2e/actions/Global.actions.ts b/extensions/vscode/e2e/actions/Global.actions.ts
index eaafbb10e55..e6f8a3bee76 100644
--- a/extensions/vscode/e2e/actions/Global.actions.ts
+++ b/extensions/vscode/e2e/actions/Global.actions.ts
@@ -1,9 +1,10 @@
 import {
+  By,
   EditorView,
   InputBox,
   TextEditor,
   VSBrowser,
-  Workbench,
+  Workbench
 } from "vscode-extension-tester";
 
 import { DEFAULT_TIMEOUT } from "../constants";
@@ -82,4 +83,80 @@ export class GlobalActions {
       console.warn(`Failed to delete file ${filePath}:`, error);
     }
   }
+
+  static async setNextEditEnabled(enabled: boolean) {
+    const workbench = new Workbench();
+    
+    await workbench.openCommandPrompt();
+        process.env.CONTINUE_E2E_NON_NEXT_EDIT_TEST = 'true';
+
+    
+    // Initial wait and clear
+    await TestUtils.waitForTimeout(1000);
+    await GlobalActions.clearAllNotifications();
+    
+    const statusBar = await workbench.getStatusBar();
+    
+    // Robust element finding with text validation
+    const continueItem = await TestUtils.waitForSuccess(
+      async () => {
+        // Clear any new notifications
+        try {
+          await GlobalActions.clearAllNotifications();
+        } catch (e) {
+          // Ignore
+        }
+        
+        const element = await statusBar.findElement(
+          By.xpath("//*[contains(text(), 'Continue')]")
+        );
+        
+        // Validate we can get text
+        const text = await element.getText();
+        if (!text || text.trim() === '') {
+          // Try alternative methods
+          const textContent = await element.getAttribute('textContent');
+          if (!textContent || textContent.trim() === '') {
+            throw new Error('Text not yet available');
+          }
+        }
+        
+        return element;
+      },
+      DEFAULT_TIMEOUT.MD
+    );
+
+    // Get text with retry
+    const text = await TestUtils.waitForSuccess(
+      async () => {
+        const itemText = await continueItem.getText();
+        if (!itemText || itemText.trim() === '') {
+          // Fallback to textContent
+          const textContent = await continueItem.getAttribute('textContent');
+          if (textContent && textContent.trim() !== '') {
+            return textContent;
+          }
+          throw new Error('Text content not yet available');
+        }
+        return itemText;
+      },
+      DEFAULT_TIMEOUT.MD
+    );
+    
+    console.log("Final text:", text);
+    
+    const hasNE = text.includes('(NE)');
+    console.log("hasNE:", hasNE);
+    
+    if (hasNE !== enabled) {
+      await workbench.executeCommand('Continue: Toggle Next Edit');
+      // Clear any resulting notifications
+      await TestUtils.waitForTimeout(500);
+      await GlobalActions.clearAllNotifications();
+    }
+  }
+  
+  static async disableNextEdit() {
+    await this.setNextEditEnabled(false);
+  }
 }
diff --git a/extensions/vscode/e2e/tests/Autocomplete.test.ts b/extensions/vscode/e2e/tests/Autocomplete.test.ts
index 4123b480436..8ace8ddc349 100644
--- a/extensions/vscode/e2e/tests/Autocomplete.test.ts
+++ b/extensions/vscode/e2e/tests/Autocomplete.test.ts
@@ -9,7 +9,9 @@ describe("Autocomplete", () => {
   let editor: TextEditor;
 
   before(async function () {
+    this.timeout(DEFAULT_TIMEOUT.MD);
     process.env.NEXT_EDIT_TEST_ENABLED = "false";
+    await GlobalActions.disableNextEdit();
   });
 
   beforeEach(async function () {
diff --git a/extensions/vscode/e2e/tests/Edit.test.ts b/extensions/vscode/e2e/tests/Edit.test.ts
index 46b1506a240..2c50c89bb8e 100644
--- a/extensions/vscode/e2e/tests/Edit.test.ts
+++ b/extensions/vscode/e2e/tests/Edit.test.ts
@@ -24,6 +24,7 @@ describe("Edit Test", () => {
     await GUIActions.moveContinueToSidebar(VSBrowser.instance.driver);
     await GlobalActions.openTestWorkspace();
     ({ editor } = await GlobalActions.createAndOpenNewTextFile());
+    await GlobalActions.disableNextEdit();
   });
 
   beforeEach(async function () {
diff --git a/extensions/vscode/e2e/tests/GUI.test.ts b/extensions/vscode/e2e/tests/GUI.test.ts
index f122fdcb273..0760a607eab 100644
--- a/extensions/vscode/e2e/tests/GUI.test.ts
+++ b/extensions/vscode/e2e/tests/GUI.test.ts
@@ -7,7 +7,7 @@ import {
   WebDriver,
   WebElement,
   WebView,
-  until,
+  until
 } from "vscode-extension-tester";
 
 import { GlobalActions } from "../actions/Global.actions";
@@ -21,11 +21,12 @@ describe("GUI Test", () => {
   let driver: WebDriver;
 
   before(async function () {
-    this.timeout(DEFAULT_TIMEOUT.XL);
+    this.timeout(DEFAULT_TIMEOUT.XL + DEFAULT_TIMEOUT.MD + DEFAULT_TIMEOUT.MD);
     // Uncomment this line for faster testing
     await GUIActions.moveContinueToSidebar(VSBrowser.instance.driver);
     await GlobalActions.openTestWorkspace();
     await GlobalActions.clearAllNotifications();
+    await GlobalActions.disableNextEdit();
   });
 
   beforeEach(async function () {
diff --git a/extensions/vscode/e2e/tests/KeyboardShortcuts.test.ts b/extensions/vscode/e2e/tests/KeyboardShortcuts.test.ts
index e9b79472f0d..5dff86d5e5b 100644
--- a/extensions/vscode/e2e/tests/KeyboardShortcuts.test.ts
+++ b/extensions/vscode/e2e/tests/KeyboardShortcuts.test.ts
@@ -12,6 +12,7 @@ import {
   until,
 } from "vscode-extension-tester";
 
+import { GlobalActions } from "../actions/Global.actions";
 import { GUIActions } from "../actions/GUI.actions";
 import { KeyboardShortcutsActions } from "../actions/KeyboardShortcuts.actions";
 import { DEFAULT_TIMEOUT } from "../constants";
@@ -26,6 +27,7 @@ describe("Keyboard Shortcuts", () => {
   before(async function () {
     this.timeout(DEFAULT_TIMEOUT.XL);
     await GUIActions.moveContinueToSidebar(VSBrowser.instance.driver);
+    await GlobalActions.disableNextEdit();
   });
 
   beforeEach(async function () {
diff --git a/extensions/vscode/e2e/tests/PromptFile.test.ts b/extensions/vscode/e2e/tests/PromptFile.test.ts
index 2717fd17eee..7f6393ead76 100644
--- a/extensions/vscode/e2e/tests/PromptFile.test.ts
+++ b/extensions/vscode/e2e/tests/PromptFile.test.ts
@@ -13,6 +13,11 @@ import { DEFAULT_TIMEOUT } from "../constants";
 describe("Prompt file", () => {
   let editor: TextEditor;
 
+  before(async function () {
+    this.timeout(DEFAULT_TIMEOUT.MD);
+    await GlobalActions.disableNextEdit();
+  });
+
   beforeEach(async function () {
     this.timeout(DEFAULT_TIMEOUT.XL);
 
diff --git a/extensions/vscode/package-lock.json b/extensions/vscode/package-lock.json
index b4d581f9e3e..d980d68f4f0 100644
--- a/extensions/vscode/package-lock.json
+++ b/extensions/vscode/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "continue",
-  "version": "1.1.79",
+  "version": "1.3.1",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "continue",
-      "version": "1.1.79",
+      "version": "1.3.1",
       "license": "Apache-2.0",
       "dependencies": {
         "@continuedev/config-types": "file:../../packages/config-types",
@@ -116,7 +116,6 @@
         "@sentry/esbuild-plugin": "^4.0.2",
         "@sentry/node": "^9.43.0",
         "@sentry/vite-plugin": "^4.0.2",
-        "@typescript-eslint/eslint-plugin": "^7.8.0",
         "@xenova/transformers": "2.14.0",
         "adf-to-md": "^1.1.0",
         "async-mutex": "^0.5.0",
@@ -135,7 +134,7 @@
         "http-proxy-agent": "^7.0.1",
         "https-proxy-agent": "^7.0.3",
         "iconv-lite": "^0.6.3",
-        "ignore": "^5.3.1",
+        "ignore": "^7.0.5",
         "is-localhost-ip": "^2.0.0",
         "jinja-js": "0.1.8",
         "js-tiktoken": "^1.0.8",
@@ -196,6 +195,8 @@
         "@types/tar": "^6.1.13",
         "@types/uuid": "^9.0.7",
         "@types/win-ca": "^3.5.4",
+        "@typescript-eslint/eslint-plugin": "^8.40.0",
+        "@typescript-eslint/parser": "^8.40.0",
         "cross-env": "^7.0.3",
         "esbuild": "0.17.19",
         "eslint": "^8",
diff --git a/extensions/vscode/package.json b/extensions/vscode/package.json
index af10a7043f1..3457833819d 100644
--- a/extensions/vscode/package.json
+++ b/extensions/vscode/package.json
@@ -111,6 +111,11 @@
           "default": true,
           "markdownDescription": "Enable Continue's tab autocomplete feature. Read our walkthrough to learn about configuration and how to share feedback: [continue.dev › Walkthrough: Tab Autocomplete (beta)](https://docs.continue.dev/features/tab-autocomplete)"
         },
+        "continue.enableNextEdit": {
+          "type": "boolean",
+          "default": true,
+          "markdownDescription": "Enable Continue's next edit feature. Read our docs to learn about configuration and how to share feedback: [continue.dev › Features › Autocomplete › Next Edit (experimental)](https://docs.continue.dev/features/autocomplete/next-edit)"
+        },
         "continue.pauseTabAutocompleteOnBattery": {
           "type": "boolean",
           "default": false,
@@ -335,6 +340,10 @@
         "title": "Enter Enterprise License Key",
         "group": "Continue"
       },
+      {
+        "command": "continue.toggleNextEditEnabled",
+        "title": "Continue: Toggle Next Edit"
+      },
       {
         "command": "continue.nextEditWindow.hideNextEditSuggestion",
         "category": "Continue",
@@ -458,6 +467,12 @@
         "mac": "alt+a",
         "key": "alt+a"
       },
+      {
+        "command": "continue.toggleNextEditEnabled",
+        "key": "ctrl+k ctrl+n",
+        "mac": "cmd+k cmd+n",
+        "when": "editorTextFocus"
+      },
       {
         "command": "continue.nextEditWindow.hideNextEditSuggestion",
         "key": "escape",
diff --git a/extensions/vscode/src/activation/InlineTipManager.ts b/extensions/vscode/src/activation/InlineTipManager.ts
index 98fa4ed32db..4a544147cc3 100644
--- a/extensions/vscode/src/activation/InlineTipManager.ts
+++ b/extensions/vscode/src/activation/InlineTipManager.ts
@@ -235,7 +235,7 @@ export class InlineTipManager {
   }
 
   private createSvgTooltipDecoration() {
-    var backgroundColour = 0;
+    var backgroundColour = "#333333";
     if (this.theme) {
       backgroundColour = this.theme.colors["editor.background"];
     }
@@ -258,12 +258,15 @@ export class InlineTipManager {
       "font-size": SVG_CONFIG.fontSize,
     };
 
-    if (!this.theme) {
-      return;
-    }
+    // if (!this.theme) {
+    //   return;
+    // }
 
     try {
-      const svgContent = svgBuilder
+      const builder = svgBuilder.newInstance
+        ? svgBuilder.newInstance()
+        : svgBuilder;
+      const svgContent = builder
         .width(SVG_CONFIG.tipWidth)
         .height(SVG_CONFIG.tipHeight)
         // Chat
@@ -271,7 +274,7 @@ export class InlineTipManager {
           {
             ...baseTextConfig,
             x: SVG_CONFIG.chatLabelX,
-            fill: this.theme.colors["editor.foreground"],
+            fill: this.theme?.colors["editor.foreground"] ?? SVG_CONFIG.stroke,
           },
           SVG_CONFIG.chatLabel,
         )
@@ -288,7 +291,7 @@ export class InlineTipManager {
           {
             ...baseTextConfig,
             x: SVG_CONFIG.editLabelX,
-            fill: this.theme.colors["editor.foreground"],
+            fill: this.theme?.colors["editor.foreground"] ?? SVG_CONFIG.stroke,
           },
           SVG_CONFIG.editLabel,
         )
diff --git a/extensions/vscode/src/activation/JumpManager.ts b/extensions/vscode/src/activation/JumpManager.ts
index e77e6a1925d..2474f1e4e57 100644
--- a/extensions/vscode/src/activation/JumpManager.ts
+++ b/extensions/vscode/src/activation/JumpManager.ts
@@ -130,7 +130,10 @@ export class JumpManager {
     };
 
     try {
-      const svgContent = svgBuilder
+      const builder = svgBuilder.newInstance
+        ? svgBuilder.newInstance()
+        : svgBuilder;
+      const svgContent = builder
         .width(SVG_CONFIG.getTipWidth())
         .height(SVG_CONFIG.getTipHeight())
         .text(
diff --git a/extensions/vscode/src/autocomplete/completionProvider.ts b/extensions/vscode/src/autocomplete/completionProvider.ts
index f081d243057..add7c315bf7 100644
--- a/extensions/vscode/src/autocomplete/completionProvider.ts
+++ b/extensions/vscode/src/autocomplete/completionProvider.ts
@@ -199,7 +199,18 @@ export class ContinueCompletionProvider
     try {
       const abortController = new AbortController();
       const signal = abortController.signal;
-      token.onCancellationRequested(() => abortController.abort());
+      const completionId = uuidv4();
+
+      if (this.isNextEditActive) {
+        this.nextEditLoggingService.trackPendingCompletion(completionId);
+      }
+
+      token.onCancellationRequested(() => {
+        abortController.abort();
+        if (this.isNextEditActive) {
+          this.nextEditLoggingService.handleAbort(completionId);
+        }
+      });
 
       // Handle notebook cells
       let pos = {
@@ -252,7 +263,7 @@ export class ContinueCompletionProvider
       const wasManuallyTriggered =
         context.triggerKind === vscode.InlineCompletionTriggerKind.Invoke;
 
-      const completionId = uuidv4();
+      // const completionId = uuidv4();
       const filepath = document.uri.toString();
       const recentlyVisitedRanges = this.recentlyVisitedRanges.getSnippets();
       let recentlyEditedRanges =
diff --git a/extensions/vscode/src/autocomplete/statusBar.ts b/extensions/vscode/src/autocomplete/statusBar.ts
index 4a26106e7a0..106a4fac258 100644
--- a/extensions/vscode/src/autocomplete/statusBar.ts
+++ b/extensions/vscode/src/autocomplete/statusBar.ts
@@ -3,6 +3,7 @@ import { EXTENSION_NAME } from "core/control-plane/env";
 import * as vscode from "vscode";
 
 import { Battery } from "../util/battery";
+import { getMetaKeyLabel } from "../util/util";
 import {
   CONTINUE_WORKSPACE_KEY,
   getContinueWorkspaceConfig,
@@ -50,18 +51,36 @@ const statusBarItemText = (
     return "$(alert) Continue (config error)";
   }
 
+  let text: string;
   switch (status) {
     case undefined:
       if (loading) {
-        return "$(loading~spin) Continue";
+        text = "$(loading~spin) Continue";
+      } else {
+        text = "Continue";
       }
+      break;
     case StatusBarStatus.Disabled:
-      return "$(circle-slash) Continue";
+      text = "$(circle-slash) Continue";
+      break;
     case StatusBarStatus.Enabled:
-      return "$(check) Continue";
+      text = "$(check) Continue";
+      break;
     case StatusBarStatus.Paused:
-      return "$(debug-pause) Continue";
+      text = "$(debug-pause) Continue";
+      break;
+    default:
+      text = "Continue";
+  }
+
+  // Append Next Edit indicator if enabled.
+  const config = vscode.workspace.getConfiguration(EXTENSION_NAME);
+  const nextEditEnabled = config.get<boolean>("enableNextEdit") ?? false;
+  if (nextEditEnabled) {
+    text += " (NE)";
   }
+
+  return text;
 };
 
 const statusBarItemTooltip = (status: StatusBarStatus | undefined) => {
@@ -70,7 +89,11 @@ const statusBarItemTooltip = (status: StatusBarStatus | undefined) => {
     case StatusBarStatus.Disabled:
       return "Click to enable tab autocomplete";
     case StatusBarStatus.Enabled:
-      return "Tab autocomplete is enabled";
+      const config = vscode.workspace.getConfiguration(EXTENSION_NAME);
+      const nextEditEnabled = config.get<boolean>("enableNextEdit") ?? false;
+      return nextEditEnabled
+        ? "Next Edit is enabled"
+        : "Tab autocomplete is enabled";
     case StatusBarStatus.Paused:
       return "Tab autocomplete is paused";
   }
@@ -199,3 +222,45 @@ export function getAutocompleteStatusBarTitle(
 
   return title;
 }
+
+const USE_FIM_MENU_ITEM_LABEL = "$(export) Use FIM autocomplete over Next Edit";
+const USE_NEXT_EDIT_MENU_ITEM_LABEL =
+  "$(sparkle) Use Next Edit over FIM autocomplete";
+
+// Shows what items get rendered in the autocomplete menu.
+export function getNextEditMenuItems(
+  currentStatus: StatusBarStatus | undefined,
+  nextEditEnabled: boolean,
+): vscode.QuickPickItem[] {
+  if (currentStatus !== StatusBarStatus.Enabled) return [];
+
+  return [
+    {
+      label: nextEditEnabled
+        ? USE_FIM_MENU_ITEM_LABEL
+        : USE_NEXT_EDIT_MENU_ITEM_LABEL,
+      description: getMetaKeyLabel() + " + K, " + getMetaKeyLabel() + " + N",
+    },
+  ];
+}
+
+// Checks if the current selected option is a Next Edit toggle label.
+export function isNextEditToggleLabel(label: string): boolean {
+  return (
+    label === USE_FIM_MENU_ITEM_LABEL || label === USE_NEXT_EDIT_MENU_ITEM_LABEL
+  );
+}
+
+// Updates the config once Next Edit is toggled.
+export function handleNextEditToggle(
+  label: string,
+  config: vscode.WorkspaceConfiguration,
+) {
+  const isEnabling = label === USE_NEXT_EDIT_MENU_ITEM_LABEL;
+
+  config.update(
+    "enableNextEdit",
+    isEnabling,
+    vscode.ConfigurationTarget.Global,
+  );
+}
diff --git a/extensions/vscode/src/commands.ts b/extensions/vscode/src/commands.ts
index cd75d24bd40..92a30501229 100644
--- a/extensions/vscode/src/commands.ts
+++ b/extensions/vscode/src/commands.ts
@@ -20,8 +20,11 @@ import { NextEditLoggingService } from "core/nextEdit/NextEditLoggingService";
 import {
   getAutocompleteStatusBarDescription,
   getAutocompleteStatusBarTitle,
+  getNextEditMenuItems,
   getStatusBarStatus,
   getStatusBarStatusFromQuickPickItemLabel,
+  handleNextEditToggle,
+  isNextEditToggleLabel,
   quickPickStatusText,
   setupStatusBar,
   StatusBarStatus,
@@ -639,6 +642,8 @@ const getCommandsMap: (
             : StatusBarStatus.Disabled;
       }
 
+      const nextEditEnabled = config.get<boolean>("enableNextEdit") ?? false;
+
       quickPick.items = [
         {
           label: "$(gear) Open settings",
@@ -657,6 +662,7 @@ const getCommandsMap: (
           description:
             getMetaKeyLabel() + " + K, " + getMetaKeyLabel() + " + A",
         },
+        ...getNextEditMenuItems(currentStatus, nextEditEnabled),
         {
           kind: vscode.QuickPickItemKind.Separator,
           label: "Switch model",
@@ -678,6 +684,8 @@ const getCommandsMap: (
             targetStatus === StatusBarStatus.Enabled,
             vscode.ConfigurationTarget.Global,
           );
+        } else if (isNextEditToggleLabel(selectedOption)) {
+          handleNextEditToggle(selectedOption, config);
         } else if (
           autocompleteModels.some((model) => model.title === selectedOption)
         ) {
@@ -792,6 +800,30 @@ const getCommandsMap: (
         );
       }
     },
+    "continue.toggleNextEditEnabled": async () => {
+      captureCommandTelemetry("toggleNextEditEnabled");
+
+      const config = vscode.workspace.getConfiguration(EXTENSION_NAME);
+      const tabAutocompleteEnabled = config.get<boolean>(
+        "enableTabAutocomplete",
+      );
+
+      if (!tabAutocompleteEnabled) {
+        vscode.window.showInformationMessage(
+          "Please enable tab autocomplete first to use Next Edit",
+        );
+        return;
+      }
+
+      const nextEditEnabled = config.get<boolean>("enableNextEdit") ?? false;
+
+      // updateNextEditState in VsCodeExtension.ts will handle the validation.
+      config.update(
+        "enableNextEdit",
+        !nextEditEnabled,
+        vscode.ConfigurationTarget.Global,
+      );
+    },
     "continue.forceNextEdit": async () => {
       captureCommandTelemetry("forceNextEdit");
 
diff --git a/extensions/vscode/src/diff/vertical/manager.ts b/extensions/vscode/src/diff/vertical/manager.ts
index e30f898c0f2..1731b176d3e 100644
--- a/extensions/vscode/src/diff/vertical/manager.ts
+++ b/extensions/vscode/src/diff/vertical/manager.ts
@@ -141,7 +141,16 @@ export class VerticalDiffManager {
 
     this.disableDocumentChangeListener();
 
-    vscode.commands.executeCommand("setContext", "continue.diffVisible", false);
+    void vscode.commands.executeCommand(
+      "setContext",
+      "continue.diffVisible",
+      false,
+    );
+
+    void this.webviewProtocol.request(
+      "focusContinueInputWithoutClear",
+      undefined,
+    );
   }
 
   async acceptRejectVerticalDiffBlock(
diff --git a/extensions/vscode/src/extension/VsCodeExtension.ts b/extensions/vscode/src/extension/VsCodeExtension.ts
index 943562e80cc..c6fbc803ddf 100644
--- a/extensions/vscode/src/extension/VsCodeExtension.ts
+++ b/extensions/vscode/src/extension/VsCodeExtension.ts
@@ -84,6 +84,88 @@ export class VsCodeExtension {
 
   private ARBITRARY_TYPING_DELAY = 2000;
 
+  private async updateNextEditState(
+    context: vscode.ExtensionContext,
+  ): Promise<void> {
+    const { config: continueConfig } = await this.configHandler.loadConfig();
+    const autocompleteModel = continueConfig?.selectedModelByRole.autocomplete;
+    const vscodeConfig = vscode.workspace.getConfiguration(EXTENSION_NAME);
+
+    const modelSupportsNext =
+      autocompleteModel &&
+      modelSupportsNextEdit(
+        autocompleteModel.capabilities,
+        autocompleteModel.model,
+        autocompleteModel.title,
+      );
+
+    // Use smart defaults.
+    let nextEditEnabled = vscodeConfig.get<boolean>("enableNextEdit");
+    if (nextEditEnabled === undefined) {
+      // First time - set smart default.
+      nextEditEnabled = modelSupportsNext ?? false;
+      await vscodeConfig.update(
+        "enableNextEdit",
+        nextEditEnabled,
+        vscode.ConfigurationTarget.Global,
+      );
+    }
+
+    // Check if Next Edit is enabled but model doesn't support it.
+    if (
+      nextEditEnabled &&
+      !modelSupportsNext &&
+      !isNextEditTest() &&
+      process.env.CONTINUE_E2E_NON_NEXT_EDIT_TEST === "true"
+    ) {
+      vscode.window
+        .showWarningMessage(
+          `The current autocomplete model (${autocompleteModel?.title || "unknown"}) does not support Next Edit.`,
+          "Disable Next Edit",
+          "Select different model",
+        )
+        .then((selection) => {
+          if (selection === "Disable Next Edit") {
+            vscodeConfig.update(
+              "enableNextEdit",
+              false,
+              vscode.ConfigurationTarget.Global,
+            );
+          } else if (selection === "Select different model") {
+            vscode.commands.executeCommand(
+              "continue.openTabAutocompleteConfigMenu",
+            );
+          }
+        });
+    }
+
+    const shouldEnableNextEdit =
+      (modelSupportsNext && nextEditEnabled) || isNextEditTest();
+
+    if (shouldEnableNextEdit) {
+      await setupNextEditWindowManager(context);
+      this.activateNextEdit();
+      await NextEditWindowManager.freeTabAndEsc();
+
+      const jumpManager = JumpManager.getInstance();
+      jumpManager.registerSelectionChangeHandler();
+
+      const ghostTextAcceptanceTracker =
+        GhostTextAcceptanceTracker.getInstance();
+      ghostTextAcceptanceTracker.registerSelectionChangeHandler();
+
+      const nextEditWindowManager = NextEditWindowManager.getInstance();
+      nextEditWindowManager.registerSelectionChangeHandler();
+    } else {
+      NextEditWindowManager.clearInstance();
+      this.deactivateNextEdit();
+      await NextEditWindowManager.freeTabAndEsc();
+
+      JumpManager.clearInstance();
+      GhostTextAcceptanceTracker.clearInstance();
+    }
+  }
+
   constructor(context: vscode.ExtensionContext) {
     // Register auth provider
     this.workOsAuthProvider = new WorkOsAuthProvider(context, this.uriHandler);
@@ -238,39 +320,7 @@ export class VsCodeExtension {
         this.completionProvider.updateUsingFullFileDiff(shouldUseFullFileDiff);
         selectionManager.updateUsingFullFileDiff(shouldUseFullFileDiff);
 
-        const autocompleteModel = newConfig?.selectedModelByRole.autocomplete;
-
-        if (
-          (autocompleteModel &&
-            modelSupportsNextEdit(
-              autocompleteModel.capabilities,
-              autocompleteModel.model,
-              autocompleteModel.title,
-            )) ||
-          isNextEditTest()
-        ) {
-          // Set up next edit window manager only for Continue team members
-          await setupNextEditWindowManager(context);
-          this.activateNextEdit();
-          await NextEditWindowManager.freeTabAndEsc();
-
-          const jumpManager = JumpManager.getInstance();
-          jumpManager.registerSelectionChangeHandler();
-
-          const ghostTextAcceptanceTracker =
-            GhostTextAcceptanceTracker.getInstance();
-          ghostTextAcceptanceTracker.registerSelectionChangeHandler();
-
-          const nextEditWindowManager = NextEditWindowManager.getInstance();
-          nextEditWindowManager.registerSelectionChangeHandler();
-        } else {
-          NextEditWindowManager.clearInstance();
-          this.deactivateNextEdit();
-          await NextEditWindowManager.freeTabAndEsc();
-
-          JumpManager.clearInstance();
-          GhostTextAcceptanceTracker.clearInstance();
-        }
+        await this.updateNextEditState(context);
 
         if (configLoadInterrupted) {
           // Show error in status bar
@@ -562,6 +612,10 @@ export class VsCodeExtension {
       if (event.affectsConfiguration(EXTENSION_NAME)) {
         const settings = await this.ide.getIdeSettings();
         void this.core.invoke("config/ideSettingsUpdate", settings);
+
+        if (event.affectsConfiguration(`${EXTENSION_NAME}.enableNextEdit`)) {
+          await this.updateNextEditState(context);
+        }
       }
     });
   }
diff --git a/gui/package-lock.json b/gui/package-lock.json
index a3dffda4cd5..541fce5f27f 100644
--- a/gui/package-lock.json
+++ b/gui/package-lock.json
@@ -129,7 +129,6 @@
         "@sentry/esbuild-plugin": "^4.0.2",
         "@sentry/node": "^9.43.0",
         "@sentry/vite-plugin": "^4.0.2",
-        "@typescript-eslint/eslint-plugin": "^7.8.0",
         "@xenova/transformers": "2.14.0",
         "adf-to-md": "^1.1.0",
         "async-mutex": "^0.5.0",
@@ -209,6 +208,8 @@
         "@types/tar": "^6.1.13",
         "@types/uuid": "^9.0.7",
         "@types/win-ca": "^3.5.4",
+        "@typescript-eslint/eslint-plugin": "^8.40.0",
+        "@typescript-eslint/parser": "^8.40.0",
         "cross-env": "^7.0.3",
         "esbuild": "0.17.19",
         "eslint": "^8",
diff --git a/package-lock.json b/package-lock.json
index 6981243e333..b4289d4228a 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,5 +1,5 @@
 {
-  "name": "wt-mcp-flag",
+  "name": "continue",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
diff --git a/packages/config-yaml/src/schemas/data/nextEditOutcome/index.ts b/packages/config-yaml/src/schemas/data/nextEditOutcome/index.ts
index f294b106821..2cc63c91d49 100644
--- a/packages/config-yaml/src/schemas/data/nextEditOutcome/index.ts
+++ b/packages/config-yaml/src/schemas/data/nextEditOutcome/index.ts
@@ -17,6 +17,7 @@ export const nextEditOutcomeEventAllSchema = baseDevDataAllSchema.extend({
   completion: z.string(),
   cursorPosition: z.object({ line: z.number(), character: z.number() }),
   accepted: z.boolean().optional(),
+  aborted: z.boolean().optional(),
   modelProvider: z.string(),
   modelName: z.string(),
 });
diff --git a/packages/config-yaml/src/schemas/data/nextEditOutcome/v0.2.0.ts b/packages/config-yaml/src/schemas/data/nextEditOutcome/v0.2.0.ts
index 82e4edbea08..d7258d2dd22 100644
--- a/packages/config-yaml/src/schemas/data/nextEditOutcome/v0.2.0.ts
+++ b/packages/config-yaml/src/schemas/data/nextEditOutcome/v0.2.0.ts
@@ -26,6 +26,7 @@ export const nextEditOutcomeEventSchema_0_2_0 =
     completion: true,
     cursorPosition: true,
     accepted: true,
+    aborted: true,
     modelProvider: true,
     modelName: true,
   });
diff --git a/packages/openai-adapters/package-lock.json b/packages/openai-adapters/package-lock.json
index 806a98f2acb..046b1dc37f9 100644
--- a/packages/openai-adapters/package-lock.json
+++ b/packages/openai-adapters/package-lock.json
@@ -12528,7 +12528,6 @@
       "resolved": "https://registry.npmjs.org/typescript/-/typescript-5.5.4.tgz",
       "integrity": "sha512-Mtq29sKDAEYP7aljRgtPOpTvOfbwRWlS6dPRzwjdE+C0R4brX/GUyhHSecbHMFLNBLcJIPt9nl9yG5TZ1weH+Q==",
       "dev": true,
-      "peer": true,
       "bin": {
         "tsc": "bin/tsc",
         "tsserver": "bin/tsserver"