diff --git a/src/lib/components/chat/ChatControls.svelte b/src/lib/components/chat/ChatControls.svelte
index eef8819106..3b0b176676 100644
--- a/src/lib/components/chat/ChatControls.svelte
+++ b/src/lib/components/chat/ChatControls.svelte
@@ -67,12 +67,6 @@
 	const chatContextAvailable = (terminal: any) => chatContext(terminal) !== false;
 	const chatContextNeedsSavedChat = (terminal: any) =>
 		chatContext(terminal)?.context_id === 'chat_id';
-	function showFilesOnTerminalSelect(largeScreen: boolean) {
-		activeTab = 'files';
-		if (largeScreen) {
-			showControls.set($settings?.showFilesOnTerminalSelect ?? true);
-		}
-	}
 	$: selectedSystemTerminal = ($terminalServers ?? []).find(
 		(t) => t.id && t.id === $selectedTerminalId
 	);
@@ -110,9 +104,9 @@
 		showControls.set(true);
 	}
 
-	// Auto-open Files tab when a terminal is selected (suppress panel open when full-screen)
+	// Keep Files selected when a terminal is active; opening the panel is handled by selection UI.
 	$: if ($selectedTerminalId && terminalFilesAvailable) {
-		showFilesOnTerminalSelect(largeScreen);
+		activeTab = 'files';
 	}
 
 	// Clear selected direct terminal if user lost permission
diff --git a/src/lib/components/chat/MessageInput/TerminalMenu.svelte b/src/lib/components/chat/MessageInput/TerminalMenu.svelte
index b11b52c6ca..0047a13aab 100644
--- a/src/lib/components/chat/MessageInput/TerminalMenu.svelte
+++ b/src/lib/components/chat/MessageInput/TerminalMenu.svelte
@@ -4,6 +4,7 @@
 	import {
 		chatId as activeChatId,
 		settings,
+		showControls,
 		showSettings,
 		terminalServers,
 		selectedTerminalId,
@@ -63,6 +64,9 @@
 	const selectDirect = async (terminal: (typeof directTerminals)[0]) => {
 		const newId = $selectedTerminalId === terminal.url ? null : terminal.url;
 		selectedTerminalId.set(newId);
+		if (newId && window.matchMedia('(min-width: 1024px)').matches) {
+			showControls.set($settings?.showFilesOnTerminalSelect ?? true);
+		}
 
 		// Enable the selected direct terminal, disable all others
 		const updatedServers = ($settings?.terminalServers ?? []).map((s) => ({
@@ -82,7 +86,11 @@
 	};
 
 	const selectSystem = async (terminal: (typeof systemTerminals)[0]) => {
-		selectedTerminalId.set($selectedTerminalId === terminal.id ? null : terminal.id);
+		const newId = $selectedTerminalId === terminal.id ? null : terminal.id;
+		selectedTerminalId.set(newId);
+		if (newId && window.matchMedia('(min-width: 1024px)').matches) {
+			showControls.set($settings?.showFilesOnTerminalSelect ?? true);
+		}
 
 		// Disable all direct terminals when switching to a system terminal
 		if ($settings?.terminalServers?.some((s) => s.enabled)) {