diff --git a/apps/sim/app/_styles/globals.css b/apps/sim/app/_styles/globals.css
index c260032460..a177876575 100644
--- a/apps/sim/app/_styles/globals.css
+++ b/apps/sim/app/_styles/globals.css
@@ -11,7 +11,7 @@
  */
 :root {
   --sidebar-width: 232px; /* SIDEBAR_WIDTH.DEFAULT */
-  --panel-width: 290px; /* PANEL_WIDTH.DEFAULT */
+  --panel-width: 320px; /* PANEL_WIDTH.DEFAULT */
   --toolbar-triggers-height: 300px; /* TOOLBAR_TRIGGERS_HEIGHT.DEFAULT */
   --editor-connections-height: 172px; /* EDITOR_CONNECTIONS_HEIGHT.DEFAULT */
   --terminal-height: 155px; /* TERMINAL_HEIGHT.DEFAULT */
@@ -77,24 +77,6 @@
   cursor: grabbing !important;
 }
 
-/**
- * Selected node ring indicator
- * Uses a pseudo-element overlay to match the original behavior (absolute inset-0 z-40)
- */
-.react-flow__node.selected > div > div {
-  position: relative;
-}
-
-.react-flow__node.selected > div > div::after {
-  content: "";
-  position: absolute;
-  inset: 0;
-  z-index: 40;
-  border-radius: 8px;
-  box-shadow: 0 0 0 1.75px var(--brand-secondary);
-  pointer-events: none;
-}
-
 /**
  * Color tokens - single source of truth for all colors
  * Light mode: Warm theme
@@ -576,32 +558,6 @@ input[type="search"]::-ms-clear {
     transition-duration: 300ms;
   }
 
-  .streaming-effect {
-    @apply relative overflow-hidden;
-  }
-
-  .streaming-effect::after {
-    content: "";
-    @apply pointer-events-none absolute left-0 top-0 h-full w-full;
-    background: linear-gradient(
-      90deg,
-      rgba(128, 128, 128, 0) 0%,
-      rgba(128, 128, 128, 0.1) 50%,
-      rgba(128, 128, 128, 0) 100%
-    );
-    animation: code-shimmer 1.5s infinite;
-    z-index: 10;
-  }
-
-  .dark .streaming-effect::after {
-    background: linear-gradient(
-      90deg,
-      rgba(180, 180, 180, 0) 0%,
-      rgba(180, 180, 180, 0.1) 50%,
-      rgba(180, 180, 180, 0) 100%
-    );
-  }
-
   .loading-placeholder::placeholder {
     animation: placeholder-pulse 1.5s ease-in-out infinite;
   }
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/code/code.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/code/code.tsx
index 38d94b92bd..f778c9c4aa 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/code/code.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/code/code.tsx
@@ -336,6 +336,10 @@ export function Code({
       setCode('')
     }
 
+    handleStreamChunkRef.current = (chunk: string) => {
+      setCode((prev) => prev + chunk)
+    }
+
     handleGeneratedContentRef.current = (generatedCode: string) => {
       setCode(generatedCode)
       if (!isPreview && !disabled) {
@@ -691,11 +695,7 @@ export function Code({
         />
       )}
 
-      <CodeEditor.Container
-        onDragOver={(e) => e.preventDefault()}
-        onDrop={handleDrop}
-        isStreaming={isAiStreaming}
-      >
+      <CodeEditor.Container onDragOver={(e) => e.preventDefault()} onDrop={handleDrop}>
         <div className='absolute top-2 right-3 z-10 flex items-center gap-1 opacity-0 transition-opacity group-hover:opacity-100'>
           {wandConfig?.enabled &&
             !isAiStreaming &&
@@ -761,6 +761,11 @@ export function Code({
             }}
             onFocus={() => {
               hasEditedSinceFocusRef.current = false
+              // Show tag dropdown on focus when code is empty
+              if (!isPreview && !disabled && !readOnly && code.trim() === '') {
+                setShowTags(true)
+                setCursorPosition(0)
+              }
             }}
             highlight={createHighlightFunction(effectiveLanguage, shouldHighlightReference)}
             {...getCodeEditorProps({ isStreaming: isAiStreaming, isPreview, disabled })}
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/condition-input/condition-input.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/condition-input/condition-input.tsx
index 27232889b6..b37e6ecba1 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/condition-input/condition-input.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/condition-input/condition-input.tsx
@@ -115,6 +115,7 @@ export function ConditionInput({
   const accessiblePrefixes = useAccessibleReferencePrefixes(blockId)
 
   const containerRef = useRef<HTMLDivElement>(null)
+  const inputRefs = useRef<Map<string, HTMLTextAreaElement>>(new Map())
 
   /**
    * Determines if a reference string should be highlighted in the editor.
@@ -728,6 +729,20 @@ export function ConditionInput({
     })
   }, [conditionalBlocks.length])
 
+  // Capture textarea refs from Editor components (condition mode)
+  useEffect(() => {
+    if (!isRouterMode && containerRef.current) {
+      conditionalBlocks.forEach((block) => {
+        const textarea = containerRef.current?.querySelector(
+          `[data-block-id="${block.id}"] textarea`
+        ) as HTMLTextAreaElement | null
+        if (textarea) {
+          inputRefs.current.set(block.id, textarea)
+        }
+      })
+    }
+  }, [conditionalBlocks, isRouterMode])
+
   // Show loading or empty state if not ready or no blocks
   if (!isReady || conditionalBlocks.length === 0) {
     return (
@@ -842,6 +857,9 @@ export function ConditionInput({
               onDrop={(e) => handleDrop(block.id, e)}
             >
               <Textarea
+                ref={(el) => {
+                  if (el) inputRefs.current.set(block.id, el)
+                }}
                 data-router-block-id={block.id}
                 value={block.value}
                 onChange={(e) => {
@@ -869,6 +887,15 @@ export function ConditionInput({
                     )
                   }
                 }}
+                onFocus={() => {
+                  if (!isPreview && !disabled && block.value.trim() === '') {
+                    setConditionalBlocks((blocks) =>
+                      blocks.map((b) =>
+                        b.id === block.id ? { ...b, showTags: true, cursorPosition: 0 } : b
+                      )
+                    )
+                  }
+                }}
                 onBlur={() => {
                   setTimeout(() => {
                     setConditionalBlocks((blocks) =>
@@ -929,6 +956,11 @@ export function ConditionInput({
                       )
                     )
                   }}
+                  inputRef={
+                    {
+                      current: inputRefs.current.get(block.id) || null,
+                    } as React.RefObject<HTMLTextAreaElement>
+                  }
                 />
               )}
             </div>
@@ -1006,6 +1038,15 @@ export function ConditionInput({
                             )
                           }
                         }}
+                        onFocus={() => {
+                          if (!isPreview && !disabled && block.value.trim() === '') {
+                            setConditionalBlocks((blocks) =>
+                              blocks.map((b) =>
+                                b.id === block.id ? { ...b, showTags: true, cursorPosition: 0 } : b
+                              )
+                            )
+                          }
+                        }}
                         highlight={(codeToHighlight) => {
                           const placeholders: {
                             placeholder: string
@@ -1113,6 +1154,11 @@ export function ConditionInput({
                               )
                             )
                           }}
+                          inputRef={
+                            {
+                              current: inputRefs.current.get(block.id) || null,
+                            } as React.RefObject<HTMLTextAreaElement>
+                          }
                         />
                       )}
                     </div>
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/document-tag-entry/document-tag-entry.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/document-tag-entry/document-tag-entry.tsx
index ceabafac3c..fcdee23504 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/document-tag-entry/document-tag-entry.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/document-tag-entry/document-tag-entry.tsx
@@ -288,6 +288,7 @@ export function DocumentTagEntry({
           onKeyDown={handlers.onKeyDown}
           onDrop={handlers.onDrop}
           onDragOver={handlers.onDragOver}
+          onFocus={handlers.onFocus}
           onScroll={(e) => syncOverlayScroll(cellKey, e.currentTarget.scrollLeft)}
           onPaste={() =>
             setTimeout(() => {
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/eval-input/eval-input.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/eval-input/eval-input.tsx
index 6403600c43..997088bc6f 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/eval-input/eval-input.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/eval-input/eval-input.tsx
@@ -214,6 +214,7 @@ export function EvalInput({
                         onKeyDown={handlers.onKeyDown}
                         onDrop={handlers.onDrop}
                         onDragOver={handlers.onDragOver}
+                        onFocus={handlers.onFocus}
                         placeholder='How accurate is the response?'
                         disabled={isPreview || disabled}
                         className={cn(
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/input-mapping/input-mapping.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/input-mapping/input-mapping.tsx
index c095853df8..79555d90aa 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/input-mapping/input-mapping.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/input-mapping/input-mapping.tsx
@@ -237,6 +237,7 @@ function InputMappingField({
                 onKeyDown={handlers.onKeyDown}
                 onDrop={handlers.onDrop}
                 onDragOver={handlers.onDragOver}
+                onFocus={handlers.onFocus}
                 onScroll={(e) => handleScroll(e)}
                 onPaste={() =>
                   setTimeout(() => {
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/knowledge-tag-filters/knowledge-tag-filters.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/knowledge-tag-filters/knowledge-tag-filters.tsx
index d669cedb59..fb6a4fd3e3 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/knowledge-tag-filters/knowledge-tag-filters.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/knowledge-tag-filters/knowledge-tag-filters.tsx
@@ -276,6 +276,7 @@ export function KnowledgeTagFilters({
           onKeyDown={handlers.onKeyDown}
           onDrop={handlers.onDrop}
           onDragOver={handlers.onDragOver}
+          onFocus={handlers.onFocus}
           onScroll={(e) => syncOverlayScroll(cellKey, e.currentTarget.scrollLeft)}
           onPaste={() =>
             setTimeout(() => {
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/long-input/long-input.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/long-input/long-input.tsx
index 2cd1b039b3..eb21e5000f 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/long-input/long-input.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/long-input/long-input.tsx
@@ -1,3 +1,4 @@
+import type React from 'react'
 import {
   useCallback,
   useEffect,
@@ -159,6 +160,27 @@ export function LongInput({
 
   const accessiblePrefixes = useAccessibleReferencePrefixes(blockId)
 
+  /**
+   * Callback to show tag dropdown when input is empty and focused
+   */
+  const shouldForceTagDropdown = useCallback(
+    ({
+      value,
+    }: {
+      value: string
+      cursor: number
+      event: 'focus'
+    }): { show: boolean } | undefined => {
+      if (isPreview || disabled) return { show: false }
+      // Show tag dropdown on focus when input is empty
+      if (value.trim() === '') {
+        return { show: true }
+      }
+      return { show: false }
+    },
+    [isPreview, disabled]
+  )
+
   // During streaming, use local content; otherwise use the controller value
   const value = useMemo(() => {
     if (wandHook.isStreaming) return localContent
@@ -294,6 +316,7 @@ export function LongInput({
         disabled={disabled}
         isStreaming={wandHook.isStreaming}
         previewValue={previewValue}
+        shouldForceTagDropdown={shouldForceTagDropdown}
       >
         {({ ref, onChange: handleChange, onKeyDown, onDrop, onDragOver, onFocus }) => {
           const setRefs = (el: HTMLTextAreaElement | null) => {
@@ -303,7 +326,7 @@ export function LongInput({
           return (
             <div
               ref={containerRef}
-              className={cn('group relative w-full', wandHook.isStreaming && 'streaming-effect')}
+              className='group relative w-full'
               style={{ height: `${height}px` }}
             >
               <Textarea
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/mcp-dynamic-args/mcp-dynamic-args.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/mcp-dynamic-args/mcp-dynamic-args.tsx
index 08a0a9ac37..6912bb2150 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/mcp-dynamic-args/mcp-dynamic-args.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/mcp-dynamic-args/mcp-dynamic-args.tsx
@@ -1,3 +1,4 @@
+import type { RefObject } from 'react'
 import { useCallback, useMemo, useRef, useState } from 'react'
 import { createLogger } from '@sim/logger'
 import { useParams } from 'next/navigation'
@@ -111,7 +112,14 @@ function McpInputWithTags({
           data-lpignore='true'
           data-1p-ignore
           readOnly
-          onFocus={(e) => e.currentTarget.removeAttribute('readOnly')}
+          onFocus={(e) => {
+            e.currentTarget.removeAttribute('readOnly')
+            // Show tag dropdown on focus when input is empty
+            if (!disabled && (value?.trim() === '' || !value)) {
+              setShowTags(true)
+              setCursorPosition(0)
+            }
+          }}
           className={cn(!isPassword && 'text-transparent caret-foreground')}
         />
         {!isPassword && (
@@ -136,6 +144,7 @@ function McpInputWithTags({
           setShowTags(false)
           setActiveSourceBlockId(null)
         }}
+        inputRef={inputRef as RefObject<HTMLInputElement>}
       />
     </div>
   )
@@ -225,6 +234,13 @@ function McpTextareaWithTags({
         onChange={handleChange}
         onDrop={handleDrop}
         onDragOver={handleDragOver}
+        onFocus={() => {
+          // Show tag dropdown on focus when input is empty
+          if (!disabled && (value?.trim() === '' || !value)) {
+            setShowTags(true)
+            setCursorPosition(0)
+          }
+        }}
         placeholder={placeholder}
         disabled={disabled}
         rows={rows}
@@ -254,6 +270,7 @@ function McpTextareaWithTags({
           setShowTags(false)
           setActiveSourceBlockId(null)
         }}
+        inputRef={textareaRef as RefObject<HTMLTextAreaElement>}
       />
     </div>
   )
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/messages-input/messages-input.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/messages-input/messages-input.tsx
index f81dd6ac5b..50943acfcd 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/messages-input/messages-input.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/messages-input/messages-input.tsx
@@ -1,4 +1,4 @@
-import { useCallback, useEffect, useMemo, useRef, useState } from 'react'
+import { useCallback, useEffect, useImperativeHandle, useMemo, useRef, useState } from 'react'
 import { ChevronDown, ChevronsUpDown, ChevronUp, Plus } from 'lucide-react'
 import { Button, Popover, PopoverContent, PopoverItem, PopoverTrigger } from '@/components/emcn'
 import { Trash } from '@/components/emcn/icons/trash'
@@ -8,12 +8,30 @@ import { formatDisplayText } from '@/app/workspace/[workspaceId]/w/[workflowId]/
 import { TagDropdown } from '@/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/tag-dropdown/tag-dropdown'
 import { useSubBlockInput } from '@/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/hooks/use-sub-block-input'
 import { useSubBlockValue } from '@/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/hooks/use-sub-block-value'
+import type { WandControlHandlers } from '@/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/sub-block'
 import { useAccessibleReferencePrefixes } from '@/app/workspace/[workspaceId]/w/[workflowId]/hooks/use-accessible-reference-prefixes'
+import { useWand } from '@/app/workspace/[workspaceId]/w/[workflowId]/hooks/use-wand'
 import type { SubBlockConfig } from '@/blocks/types'
 
 const MIN_TEXTAREA_HEIGHT_PX = 80
 const MAX_TEXTAREA_HEIGHT_PX = 320
 
+/** Pattern to match complete message objects in JSON */
+const COMPLETE_MESSAGE_PATTERN =
+  /"role"\s*:\s*"(system|user|assistant)"[^}]*"content"\s*:\s*"((?:[^"\\]|\\.)*)"/g
+
+/** Pattern to match incomplete content at end of buffer */
+const INCOMPLETE_CONTENT_PATTERN = /"content"\s*:\s*"((?:[^"\\]|\\.)*)$/
+
+/** Pattern to match role before content */
+const ROLE_BEFORE_CONTENT_PATTERN = /"role"\s*:\s*"(system|user|assistant)"[^{]*$/
+
+/**
+ * Unescapes JSON string content
+ */
+const unescapeContent = (str: string): string =>
+  str.replace(/\\n/g, '\n').replace(/\\"/g, '"').replace(/\\\\/g, '\\')
+
 /**
  * Interface for individual message in the messages array
  */
@@ -38,6 +56,8 @@ interface MessagesInputProps {
   previewValue?: Message[] | null
   /** Whether the input is disabled */
   disabled?: boolean
+  /** Ref to expose wand control handlers to parent */
+  wandControlRef?: React.MutableRefObject<WandControlHandlers | null>
 }
 
 /**
@@ -55,6 +75,7 @@ export function MessagesInput({
   isPreview = false,
   previewValue,
   disabled = false,
+  wandControlRef,
 }: MessagesInputProps) {
   const [messages, setMessages] = useSubBlockValue<Message[]>(blockId, subBlockId, false)
   const [localMessages, setLocalMessages] = useState<Message[]>([{ role: 'user', content: '' }])
@@ -68,6 +89,142 @@ export function MessagesInput({
     disabled,
   })
 
+  /**
+   * Gets the current messages as JSON string for wand context
+   */
+  const getMessagesJson = useCallback((): string => {
+    if (localMessages.length === 0) return ''
+    // Filter out empty messages for cleaner context
+    const nonEmptyMessages = localMessages.filter((m) => m.content.trim() !== '')
+    if (nonEmptyMessages.length === 0) return ''
+    return JSON.stringify(nonEmptyMessages, null, 2)
+  }, [localMessages])
+
+  /**
+   * Streaming buffer for accumulating JSON content
+   */
+  const streamBufferRef = useRef<string>('')
+
+  /**
+   * Parses and validates messages from JSON content
+   */
+  const parseMessages = useCallback((content: string): Message[] | null => {
+    try {
+      const parsed = JSON.parse(content)
+      if (Array.isArray(parsed)) {
+        const validMessages: Message[] = parsed
+          .filter(
+            (m): m is { role: string; content: string } =>
+              typeof m === 'object' &&
+              m !== null &&
+              typeof m.role === 'string' &&
+              typeof m.content === 'string'
+          )
+          .map((m) => ({
+            role: (['system', 'user', 'assistant'].includes(m.role)
+              ? m.role
+              : 'user') as Message['role'],
+            content: m.content,
+          }))
+        return validMessages.length > 0 ? validMessages : null
+      }
+    } catch {
+      // Parsing failed
+    }
+    return null
+  }, [])
+
+  /**
+   * Extracts messages from streaming JSON buffer
+   * Uses simple pattern matching for efficiency
+   */
+  const extractStreamingMessages = useCallback(
+    (buffer: string): Message[] => {
+      // Try complete JSON parse first
+      const complete = parseMessages(buffer)
+      if (complete) return complete
+
+      const result: Message[] = []
+
+      // Reset regex lastIndex for global pattern
+      COMPLETE_MESSAGE_PATTERN.lastIndex = 0
+      let match
+      while ((match = COMPLETE_MESSAGE_PATTERN.exec(buffer)) !== null) {
+        result.push({ role: match[1] as Message['role'], content: unescapeContent(match[2]) })
+      }
+
+      // Check for incomplete message at end (content still streaming)
+      const lastContentIdx = buffer.lastIndexOf('"content"')
+      if (lastContentIdx !== -1) {
+        const tail = buffer.slice(lastContentIdx)
+        const incomplete = tail.match(INCOMPLETE_CONTENT_PATTERN)
+        if (incomplete) {
+          const head = buffer.slice(0, lastContentIdx)
+          const roleMatch = head.match(ROLE_BEFORE_CONTENT_PATTERN)
+          if (roleMatch) {
+            const content = unescapeContent(incomplete[1])
+            // Only add if not duplicate of last complete message
+            if (result.length === 0 || result[result.length - 1].content !== content) {
+              result.push({ role: roleMatch[1] as Message['role'], content })
+            }
+          }
+        }
+      }
+
+      return result
+    },
+    [parseMessages]
+  )
+
+  /**
+   * Wand hook for AI-assisted content generation
+   */
+  const wandHook = useWand({
+    wandConfig: config.wandConfig,
+    currentValue: getMessagesJson(),
+    onStreamStart: () => {
+      streamBufferRef.current = ''
+      setLocalMessages([{ role: 'system', content: '' }])
+    },
+    onStreamChunk: (chunk) => {
+      streamBufferRef.current += chunk
+      const extracted = extractStreamingMessages(streamBufferRef.current)
+      if (extracted.length > 0) {
+        setLocalMessages(extracted)
+      }
+    },
+    onGeneratedContent: (content) => {
+      const validMessages = parseMessages(content)
+      if (validMessages) {
+        setLocalMessages(validMessages)
+        setMessages(validMessages)
+      } else {
+        // Fallback: treat as raw system prompt
+        const trimmed = content.trim()
+        if (trimmed) {
+          const fallback: Message[] = [{ role: 'system', content: trimmed }]
+          setLocalMessages(fallback)
+          setMessages(fallback)
+        }
+      }
+    },
+  })
+
+  /**
+   * Expose wand control handlers to parent via ref
+   */
+  useImperativeHandle(
+    wandControlRef,
+    () => ({
+      onWandTrigger: (prompt: string) => {
+        wandHook.generateStream({ prompt })
+      },
+      isWandActive: wandHook.isPromptVisible,
+      isWandStreaming: wandHook.isStreaming,
+    }),
+    [wandHook]
+  )
+
   /**
    * Initialize local state from stored or preview value
    */
@@ -308,7 +465,7 @@ export function MessagesInput({
   }, [currentMessages, autoResizeTextarea])
 
   return (
-    <div className='flex w-full flex-col gap-3'>
+    <div className='flex w-full flex-col gap-[10px]'>
       {currentMessages.map((message, index) => (
         <div
           key={`message-${index}`}
@@ -364,7 +521,7 @@ export function MessagesInput({
                         type='button'
                         disabled={isPreview || disabled}
                         className={cn(
-                          '-ml-1.5 -my-1 rounded px-1.5 py-1 font-medium text-[13px] text-[var(--text-primary)] leading-none transition-colors hover:bg-[var(--surface-5)] hover:text-[var(--text-secondary)]',
+                          'group -ml-1.5 -my-1 flex items-center gap-1 rounded px-1.5 py-1 font-medium text-[13px] text-[var(--text-primary)] leading-none transition-colors hover:bg-[var(--surface-5)] hover:text-[var(--text-secondary)]',
                           (isPreview || disabled) &&
                             'cursor-default hover:bg-transparent hover:text-[var(--text-primary)]'
                         )}
@@ -372,6 +529,14 @@ export function MessagesInput({
                         aria-label='Select message role'
                       >
                         {formatRole(message.role)}
+                        {!isPreview && !disabled && (
+                          <ChevronDown
+                            className={cn(
+                              'h-3 w-3 flex-shrink-0 transition-transform duration-100',
+                              openPopoverIndex === index && 'rotate-180'
+                            )}
+                          />
+                        )}
                       </button>
                     </PopoverTrigger>
                     <PopoverContent minWidth={140} align='start'>
@@ -486,6 +651,7 @@ export function MessagesInput({
                     }}
                     onDrop={fieldHandlers.onDrop}
                     onDragOver={fieldHandlers.onDragOver}
+                    onFocus={fieldHandlers.onFocus}
                     onScroll={(e) => {
                       const overlay = overlayRefs.current[fieldId]
                       if (overlay) {
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/short-input/short-input.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/short-input/short-input.tsx
index b2027a361d..a2c8bedfb2 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/short-input/short-input.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/short-input/short-input.tsx
@@ -192,6 +192,24 @@ export function ShortInput({
     [isApiKeyField, isPreview, disabled, readOnly]
   )
 
+  const shouldForceTagDropdown = useCallback(
+    ({
+      value,
+    }: {
+      value: string
+      cursor: number
+      event: 'focus'
+    }): { show: boolean } | undefined => {
+      if (isPreview || disabled || readOnly) return { show: false }
+      // Show tag dropdown on focus when input is empty (unless it's an API key field)
+      if (!isApiKeyField && value.trim() === '') {
+        return { show: true }
+      }
+      return { show: false }
+    },
+    [isPreview, disabled, readOnly, isApiKeyField]
+  )
+
   const baseValue = isPreview ? previewValue : propValue !== undefined ? propValue : undefined
 
   const effectiveValue =
@@ -316,6 +334,7 @@ export function ShortInput({
           isStreaming={wandHook.isStreaming}
           previewValue={previewValue}
           shouldForceEnvDropdown={shouldForceEnvDropdown}
+          shouldForceTagDropdown={shouldForceTagDropdown}
         >
           {({
             ref,
@@ -356,9 +375,9 @@ export function ShortInput({
                   type='text'
                   value={displayValue}
                   onChange={handleChange as (e: React.ChangeEvent<HTMLInputElement>) => void}
-                  onFocus={() => {
+                  onFocus={(e) => {
                     setIsFocused(true)
-                    onFocus()
+                    onFocus(e)
                   }}
                   onBlur={handleBlur}
                   onDrop={onDrop as (e: React.DragEvent<HTMLInputElement>) => void}
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/starter/input-format.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/starter/input-format.tsx
index ee15bd9c39..40463cf89d 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/starter/input-format.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/starter/input-format.tsx
@@ -211,6 +211,7 @@ export function FieldFormat({
           onKeyDown={handlers.onKeyDown}
           onDrop={handlers.onDrop}
           onDragOver={handlers.onDragOver}
+          onFocus={handlers.onFocus}
           onScroll={(e) => syncNameOverlayScroll(field.id, e.currentTarget.scrollLeft)}
           onPaste={() =>
             setTimeout(() => {
@@ -464,6 +465,7 @@ export function FieldFormat({
           onKeyDown={handlers.onKeyDown}
           onDrop={handlers.onDrop}
           onDragOver={handlers.onDragOver}
+          onFocus={handlers.onFocus}
           onScroll={(e) => syncOverlayScroll(field.id, e.currentTarget.scrollLeft)}
           onPaste={() =>
             setTimeout(() => {
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/sub-block-input-controller.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/sub-block-input-controller.tsx
index 5cee1dbc87..ffd1f08f75 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/sub-block-input-controller.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/sub-block-input-controller.tsx
@@ -45,6 +45,16 @@ export interface SubBlockInputControllerProps {
     cursor: number
     event: 'change' | 'focus' | 'deleteAll'
   }) => { show: boolean; searchTerm?: string } | undefined
+  /**
+   * Optional callback to force/show the tag dropdown (e.g., empty inputs).
+   * Return { show: true } to override defaults.
+   * Called on 'focus' event.
+   */
+  shouldForceTagDropdown?: (args: {
+    value: string
+    cursor: number
+    event: 'focus'
+  }) => { show: boolean } | undefined
   /** Render prop for the actual input element. */
   children: (args: {
     ref: React.RefObject<HTMLTextAreaElement | HTMLInputElement>
@@ -54,7 +64,7 @@ export interface SubBlockInputControllerProps {
     onKeyDown: (e: React.KeyboardEvent<HTMLTextAreaElement | HTMLInputElement>) => void
     onDrop: (e: React.DragEvent<HTMLTextAreaElement | HTMLInputElement>) => void
     onDragOver: (e: React.DragEvent<HTMLTextAreaElement | HTMLInputElement>) => void
-    onFocus: () => void
+    onFocus: (e: React.FocusEvent<HTMLTextAreaElement | HTMLInputElement>) => void
     onScroll?: (e: React.UIEvent<HTMLTextAreaElement>) => void
   }) => React.ReactNode
 }
@@ -76,6 +86,7 @@ export function SubBlockInputController(props: SubBlockInputControllerProps): Re
     previewValue,
     workspaceId,
     shouldForceEnvDropdown,
+    shouldForceTagDropdown,
     children,
   } = props
 
@@ -92,6 +103,7 @@ export function SubBlockInputController(props: SubBlockInputControllerProps): Re
     previewValue,
     workspaceId,
     shouldForceEnvDropdown,
+    shouldForceTagDropdown,
   })
 
   const emitTagSelection = useTagSelection(blockId, subBlockId)
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/table/table.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/table/table.tsx
index cb0c51fc43..2a9d31f1c6 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/table/table.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/table/table.tsx
@@ -238,6 +238,7 @@ export function Table({
             onScroll={handleScroll}
             onDrop={handlers.onDrop}
             onDragOver={handlers.onDragOver}
+            onFocus={handlers.onFocus}
             disabled={isPreview || disabled}
             autoComplete='off'
             className='w-full border-0 bg-transparent px-[10px] py-[8px] font-medium text-sm text-transparent leading-[21px] caret-[var(--text-primary)] placeholder:text-[var(--text-muted)] focus-visible:ring-0 focus-visible:ring-offset-0'
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/tag-dropdown/tag-dropdown.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/tag-dropdown/tag-dropdown.tsx
index 89a5b4e1e8..4ff7205535 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/tag-dropdown/tag-dropdown.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/tag-dropdown/tag-dropdown.tsx
@@ -1210,7 +1210,6 @@ export const TagDropdown: React.FC<TagDropdownProps> = ({
       const textAfterCursor = liveValue.slice(liveCursor)
 
       const lastOpenBracket = textBeforeCursor.lastIndexOf('<')
-      if (lastOpenBracket === -1) return
 
       let processedTag = tag
 
@@ -1256,17 +1255,25 @@ export const TagDropdown: React.FC<TagDropdownProps> = ({
         }
       }
 
-      const nextCloseBracket = textAfterCursor.indexOf('>')
-      let remainingTextAfterCursor = textAfterCursor
+      let newValue: string
 
-      if (nextCloseBracket !== -1) {
-        const textBetween = textAfterCursor.slice(0, nextCloseBracket)
-        if (/^[a-zA-Z0-9._]*$/.test(textBetween)) {
-          remainingTextAfterCursor = textAfterCursor.slice(nextCloseBracket + 1)
+      if (lastOpenBracket === -1) {
+        // No '<' found - insert the full tag at cursor position
+        newValue = `${textBeforeCursor}<${processedTag}>${textAfterCursor}`
+      } else {
+        // '<' found - replace from '<' to cursor (and consume trailing '>' if present)
+        const nextCloseBracket = textAfterCursor.indexOf('>')
+        let remainingTextAfterCursor = textAfterCursor
+
+        if (nextCloseBracket !== -1) {
+          const textBetween = textAfterCursor.slice(0, nextCloseBracket)
+          if (/^[a-zA-Z0-9._]*$/.test(textBetween)) {
+            remainingTextAfterCursor = textAfterCursor.slice(nextCloseBracket + 1)
+          }
         }
-      }
 
-      const newValue = `${textBeforeCursor.slice(0, lastOpenBracket)}<${processedTag}>${remainingTextAfterCursor}`
+        newValue = `${textBeforeCursor.slice(0, lastOpenBracket)}<${processedTag}>${remainingTextAfterCursor}`
+      }
 
       onSelect(newValue)
       onClose?.()
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/variables-input/variables-input.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/variables-input/variables-input.tsx
index dba07e3c5f..2a07018026 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/variables-input/variables-input.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/components/variables-input/variables-input.tsx
@@ -381,6 +381,13 @@ export function VariablesInput({
                                 e.target.selectionStart ?? undefined
                               )
                             }
+                            onFocus={() => {
+                              if (!isPreview && !disabled && !assignment.value?.trim()) {
+                                setActiveFieldId(assignment.id)
+                                setCursorPosition(0)
+                                setShowTags(true)
+                              }
+                            }}
                             placeholder={
                               assignment.type === 'object'
                                 ? '{\n  "key": "value"\n}'
@@ -434,6 +441,13 @@ export function VariablesInput({
                                 e.target.selectionStart ?? undefined
                               )
                             }
+                            onFocus={() => {
+                              if (!isPreview && !disabled && !assignment.value?.trim()) {
+                                setActiveFieldId(assignment.id)
+                                setCursorPosition(0)
+                                setShowTags(true)
+                              }
+                            }}
                             placeholder={`${assignment.type} value`}
                             disabled={isPreview || disabled}
                             autoComplete='off'
@@ -475,6 +489,11 @@ export function VariablesInput({
                           inputValue={assignment.value || ''}
                           cursorPosition={cursorPosition}
                           onClose={() => setShowTags(false)}
+                          inputRef={
+                            {
+                              current: valueInputRefs.current[assignment.id] || null,
+                            } as React.RefObject<HTMLTextAreaElement | HTMLInputElement>
+                          }
                         />
                       )}
                     </div>
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/hooks/use-sub-block-input.ts b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/hooks/use-sub-block-input.ts
index 37023617e7..1f742c464d 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/hooks/use-sub-block-input.ts
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/hooks/use-sub-block-input.ts
@@ -50,6 +50,16 @@ export interface UseSubBlockInputOptions {
     cursor: number
     event: 'change' | 'focus' | 'deleteAll'
   }) => { show: boolean; searchTerm?: string } | undefined
+  /**
+   * Optional callback to force/show the tag dropdown (e.g., empty inputs).
+   * Return { show: true } to override defaults.
+   * Called on 'focus' event.
+   */
+  shouldForceTagDropdown?: (args: {
+    value: string
+    cursor: number
+    event: 'focus'
+  }) => { show: boolean } | undefined
 }
 
 /**
@@ -89,7 +99,7 @@ export interface UseSubBlockInputResult {
     onKeyDown: (e: React.KeyboardEvent<HTMLTextAreaElement | HTMLInputElement>) => void
     onDrop: (e: React.DragEvent<HTMLTextAreaElement | HTMLInputElement>) => void
     onDragOver: (e: React.DragEvent<HTMLTextAreaElement | HTMLInputElement>) => void
-    onFocus: () => void
+    onFocus: (e: React.FocusEvent<HTMLTextAreaElement | HTMLInputElement>) => void
     onScroll?: (e: React.UIEvent<HTMLTextAreaElement>) => void
   }
   /** Workspace id for env var dropdown scoping. */
@@ -114,6 +124,7 @@ export interface UseSubBlockInputResult {
       onKeyDown: (e: React.KeyboardEvent<HTMLTextAreaElement | HTMLInputElement>) => void
       onDrop: (e: React.DragEvent<HTMLTextAreaElement | HTMLInputElement>) => void
       onDragOver: (e: React.DragEvent<HTMLTextAreaElement | HTMLInputElement>) => void
+      onFocus: (e: React.FocusEvent<HTMLTextAreaElement | HTMLInputElement>) => void
     }
     /** Hide dropdowns for a specific field */
     hideFieldDropdowns: (fieldId: string) => void
@@ -153,6 +164,7 @@ export function useSubBlockInput(options: UseSubBlockInputOptions): UseSubBlockI
     previewValue,
     workspaceId: workspaceIdProp,
     shouldForceEnvDropdown,
+    shouldForceTagDropdown,
   } = options
 
   const params = useParams()
@@ -338,22 +350,42 @@ export function useSubBlockInput(options: UseSubBlockInputOptions): UseSubBlockI
     [config?.connectionDroppable, valueString, onChange, isPreview, setStoreValue]
   )
 
-  const handleFocus = useCallback(() => {
-    if (shouldForceEnvDropdown) {
-      // Use a slight delay to ensure the input ref is populated
-      setTimeout(() => {
-        const forced = shouldForceEnvDropdown({
-          value: (inputRef.current as any)?.value ?? valueString,
-          cursor: (inputRef.current as any)?.selectionStart ?? valueString.length,
+  const handleFocus = useCallback(
+    (e: React.FocusEvent<HTMLTextAreaElement | HTMLInputElement>) => {
+      // Get values directly from the event target - no setTimeout needed
+      const target = e.target as HTMLInputElement | HTMLTextAreaElement
+      const currentValue = target.value ?? valueString
+      const currentCursor = target.selectionStart ?? currentValue.length
+
+      // Check if tag dropdown should be forced (takes priority as it's more commonly used)
+      if (shouldForceTagDropdown) {
+        const forcedTag = shouldForceTagDropdown({
+          value: currentValue,
+          cursor: currentCursor,
           event: 'focus',
         })
-        if (forced?.show) {
+        if (forcedTag?.show) {
+          setCursorPosition(currentCursor)
+          setShowTags(true)
+          return // Exit early if tag dropdown is shown
+        }
+      }
+
+      // Check if env var dropdown should be forced
+      if (shouldForceEnvDropdown) {
+        const forcedEnv = shouldForceEnvDropdown({
+          value: currentValue,
+          cursor: currentCursor,
+          event: 'focus',
+        })
+        if (forcedEnv?.show) {
           setShowEnvVars(true)
-          setSearchTerm(forced.searchTerm ?? '')
+          setSearchTerm(forcedEnv.searchTerm ?? '')
         }
-      }, 0)
-    }
-  }, [shouldForceEnvDropdown, valueString])
+      }
+    },
+    [shouldForceEnvDropdown, shouldForceTagDropdown, valueString]
+  )
 
   const onScroll = useCallback((_: React.UIEvent<HTMLTextAreaElement>) => {
     // Intentionally empty; consumers may mirror scroll to overlays if needed
@@ -469,6 +501,17 @@ export function useSubBlockInput(options: UseSubBlockInputOptions): UseSubBlockI
           if (config?.connectionDroppable === false) return
           e.preventDefault()
         },
+        onFocus: (e: React.FocusEvent<HTMLTextAreaElement | HTMLInputElement>) => {
+          // Show tag dropdown on focus when field value is empty
+          const target = e.target as HTMLInputElement | HTMLTextAreaElement
+          const currentValue = target.value ?? fieldValue
+          if (!isDisabled && !isStreaming && currentValue.trim() === '') {
+            updateFieldState(fieldId, {
+              showTags: true,
+              cursorPosition: target.selectionStart ?? 0,
+            })
+          }
+        },
       }
     },
     [isDisabled, isStreaming, config?.connectionDroppable, updateFieldState]
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/sub-block.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/sub-block.tsx
index b3ec7fec07..aaa0bd077a 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/sub-block.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/components/sub-block/sub-block.tsx
@@ -1,7 +1,6 @@
 import { type JSX, type MouseEvent, memo, useRef, useState } from 'react'
-import { AlertTriangle, Wand2 } from 'lucide-react'
-import { Label, Tooltip } from '@/components/emcn/components'
-import { Button } from '@/components/ui/button'
+import { AlertTriangle, ArrowUp } from 'lucide-react'
+import { Button, Input, Label, Tooltip } from '@/components/emcn/components'
 import { cn } from '@/lib/core/utils/cn'
 import type { FieldDiffStatus } from '@/lib/workflows/diff/types'
 import {
@@ -154,22 +153,23 @@ const getPreviewValue = (
 }
 
 /**
- * Renders the label with optional validation, description tooltips, and inline wand control.
+ * Renders the label with optional validation and description tooltips.
  *
  * @remarks
- * Handles JSON validation indicators for code blocks, required field markers,
- * and AI generation (wand) input interface.
+ * Handles JSON validation indicators for code blocks and required field markers.
+ * Includes inline AI generate button when wand is enabled.
  *
  * @param config - The sub-block configuration defining the label content
  * @param isValidJson - Whether the JSON content is valid (for code blocks)
- * @param wandState - State and handlers for the AI wand feature
  * @param subBlockValues - Current values of all subblocks for evaluating conditional requirements
+ * @param wandState - Optional state and handlers for the AI wand feature
  * @returns The label JSX element, or `null` for switch types or when no title is defined
  */
 const renderLabel = (
   config: SubBlockConfig,
   isValidJson: boolean,
-  wandState: {
+  subBlockValues?: Record<string, any>,
+  wandState?: {
     isSearchActive: boolean
     searchQuery: string
     isWandEnabled: boolean
@@ -182,31 +182,19 @@ const renderLabel = (
     onSearchSubmit: () => void
     onSearchCancel: () => void
     searchInputRef: React.RefObject<HTMLInputElement | null>
-  },
-  subBlockValues?: Record<string, any>
+  }
 ): JSX.Element | null => {
   if (config.type === 'switch') return null
   if (!config.title) return null
 
-  const {
-    isSearchActive,
-    searchQuery,
-    isWandEnabled,
-    isPreview,
-    isStreaming,
-    disabled,
-    onSearchClick,
-    onSearchBlur,
-    onSearchChange,
-    onSearchSubmit,
-    onSearchCancel,
-    searchInputRef,
-  } = wandState
-
   const required = isFieldRequired(config, subBlockValues)
+  const showWand = wandState?.isWandEnabled && !wandState.isPreview && !wandState.disabled
 
   return (
-    <Label className='flex items-center justify-between gap-[6px] pl-[2px]'>
+    <Label
+      className='flex items-center justify-between gap-[6px] pl-[2px]'
+      onClick={(e) => e.preventDefault()}
+    >
       <div className='flex items-center gap-[6px] whitespace-nowrap'>
         {config.title}
         {required && <span className='ml-0.5'>*</span>}
@@ -226,42 +214,55 @@ const renderLabel = (
           </Tooltip.Root>
         )}
       </div>
-
-      {/* Wand inline prompt */}
-      {isWandEnabled && !isPreview && !disabled && (
-        <div className='flex min-w-0 flex-1 items-center justify-end pr-[4px]'>
-          {!isSearchActive ? (
+      {showWand && (
+        <>
+          {!wandState.isSearchActive ? (
             <Button
-              variant='ghost'
-              className='h-[12px] w-[12px] flex-shrink-0 p-0 hover:bg-transparent'
-              aria-label='Generate with AI'
-              onClick={onSearchClick}
+              variant='active'
+              className='-my-1 h-5 px-2 py-0 text-[11px]'
+              onClick={wandState.onSearchClick}
             >
-              <Wand2 className='!h-[12px] !w-[12px] bg-transparent text-[var(--text-secondary)]' />
+              Generate
             </Button>
           ) : (
-            <input
-              ref={searchInputRef}
-              type='text'
-              value={isStreaming ? 'Generating...' : searchQuery}
-              onChange={(e) => onSearchChange(e.target.value)}
-              onBlur={onSearchBlur}
-              onKeyDown={(e) => {
-                if (e.key === 'Enter' && searchQuery.trim() && !isStreaming) {
-                  onSearchSubmit()
-                } else if (e.key === 'Escape') {
-                  onSearchCancel()
-                }
-              }}
-              disabled={isStreaming}
-              className={cn(
-                'h-[12px] w-full min-w-[100px] border-none bg-transparent py-0 pr-[2px] text-right font-medium text-[12px] text-[var(--text-primary)] leading-[14px] placeholder:text-[var(--text-muted)] focus:outline-none',
-                isStreaming && 'text-muted-foreground'
-              )}
-              placeholder='Describe...'
-            />
+            <div className='-my-1 flex items-center gap-[4px]'>
+              <Input
+                ref={wandState.searchInputRef}
+                value={wandState.isStreaming ? 'Generating...' : wandState.searchQuery}
+                onChange={(e) => wandState.onSearchChange(e.target.value)}
+                onBlur={wandState.onSearchBlur}
+                onKeyDown={(e) => {
+                  if (e.key === 'Enter' && wandState.searchQuery.trim() && !wandState.isStreaming) {
+                    wandState.onSearchSubmit()
+                  } else if (e.key === 'Escape') {
+                    wandState.onSearchCancel()
+                  }
+                }}
+                disabled={wandState.isStreaming}
+                className={cn(
+                  'h-5 max-w-[200px] flex-1 text-[11px]',
+                  wandState.isStreaming && 'text-muted-foreground'
+                )}
+                placeholder='Generate...'
+              />
+              <Button
+                variant='tertiary'
+                disabled={!wandState.searchQuery.trim() || wandState.isStreaming}
+                onMouseDown={(e) => {
+                  e.preventDefault()
+                  e.stopPropagation()
+                }}
+                onClick={(e) => {
+                  e.stopPropagation()
+                  wandState.onSearchSubmit()
+                }}
+                className='h-[20px] w-[20px] flex-shrink-0 p-0'
+              >
+                <ArrowUp className='h-[12px] w-[12px]' />
+              </Button>
+            </div>
           )}
-        </div>
+        </>
       )}
     </Label>
   )
@@ -875,6 +876,7 @@ function SubBlockComponent({
             isPreview={isPreview}
             previewValue={previewValue as any}
             disabled={isDisabled}
+            wandControlRef={wandControlRef}
           />
         )
 
@@ -885,25 +887,20 @@ function SubBlockComponent({
 
   return (
     <div onMouseDown={handleMouseDown} className='subblock-content flex flex-col gap-[10px]'>
-      {renderLabel(
-        config,
-        isValidJson,
-        {
-          isSearchActive,
-          searchQuery,
-          isWandEnabled,
-          isPreview,
-          isStreaming: wandControlRef.current?.isWandStreaming ?? false,
-          disabled: isDisabled,
-          onSearchClick: handleSearchClick,
-          onSearchBlur: handleSearchBlur,
-          onSearchChange: handleSearchChange,
-          onSearchSubmit: handleSearchSubmit,
-          onSearchCancel: handleSearchCancel,
-          searchInputRef,
-        },
-        subBlockValues
-      )}
+      {renderLabel(config, isValidJson, subBlockValues, {
+        isSearchActive,
+        searchQuery,
+        isWandEnabled,
+        isPreview,
+        isStreaming: wandControlRef.current?.isWandStreaming ?? false,
+        disabled: isDisabled,
+        onSearchClick: handleSearchClick,
+        onSearchBlur: handleSearchBlur,
+        onSearchChange: handleSearchChange,
+        onSearchSubmit: handleSearchSubmit,
+        onSearchCancel: handleSearchCancel,
+        searchInputRef,
+      })}
       {renderInput()}
     </div>
   )
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/editor.tsx b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/editor.tsx
index 30017e885e..5a45dc6897 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/editor.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/components/panel/components/editor/editor.tsx
@@ -342,7 +342,7 @@ export function Editor() {
             ref={subBlocksRef}
             className='subblocks-section flex flex-1 flex-col overflow-hidden'
           >
-            <div className='flex-1 overflow-y-auto overflow-x-hidden px-[8px] pt-[8px] pb-[8px]'>
+            <div className='flex-1 overflow-y-auto overflow-x-hidden px-[8px] pt-[12px] pb-[8px]'>
               {subBlocks.length === 0 ? (
                 <div className='flex h-full items-center justify-center text-center text-[#8D8D8D] text-[13px]'>
                   This block has no subblocks
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/hooks/use-block-visual.ts b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/hooks/use-block-visual.ts
index c8293c6d46..20246d97d2 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/hooks/use-block-visual.ts
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/hooks/use-block-visual.ts
@@ -4,7 +4,7 @@ import type { WorkflowBlockProps } from '@/app/workspace/[workspaceId]/w/[workfl
 import { useCurrentWorkflow } from '@/app/workspace/[workspaceId]/w/[workflowId]/hooks/use-current-workflow'
 import { getBlockRingStyles } from '@/app/workspace/[workspaceId]/w/[workflowId]/utils/block-ring-utils'
 import { useExecutionStore } from '@/stores/execution'
-import { usePanelEditorStore } from '@/stores/panel'
+import { usePanelEditorStore, usePanelStore } from '@/stores/panel'
 import { useWorkflowRegistry } from '@/stores/workflows/registry/store'
 
 /**
@@ -21,7 +21,8 @@ interface UseBlockVisualProps {
 
 /**
  * Provides visual state and interaction handlers for workflow blocks.
- * Computes ring styling based on execution, diff, deletion, and run path states.
+ * Computes ring styling based on editor open state, execution, diff, deletion, and run path states.
+ * Ring is shown only when the editor panel is open for this block, not during selection/dragging.
  * In preview mode, uses isPreviewSelected for selection highlighting.
  *
  * @param props - The hook properties
@@ -36,13 +37,15 @@ export function useBlockVisual({ blockId, data, isPending = false }: UseBlockVis
 
   const {
     isEnabled,
-    isActive: blockIsActive,
+    isActive: isExecuting,
     diffStatus,
     isDeletedBlock,
   } = useBlockState(blockId, currentWorkflow, data)
 
-  // In preview mode, use isPreviewSelected for selection state
-  const isActive = isPreview ? isPreviewSelected : blockIsActive
+  // Check if the editor panel is open for this block
+  const currentBlockId = usePanelEditorStore((state) => state.currentBlockId)
+  const activeTab = usePanelStore((state) => state.activeTab)
+  const isEditorOpen = !isPreview && currentBlockId === blockId && activeTab === 'editor'
 
   const lastRunPath = useExecutionStore((state) => state.lastRunPath)
   const runPathStatus = isPreview ? undefined : lastRunPath.get(blockId)
@@ -58,14 +61,24 @@ export function useBlockVisual({ blockId, data, isPending = false }: UseBlockVis
   const { hasRing, ringClassName: ringStyles } = useMemo(
     () =>
       getBlockRingStyles({
-        isActive,
+        isExecuting: isPreview ? false : isExecuting,
+        isEditorOpen: isPreview ? isPreviewSelected : isEditorOpen,
         isPending: isPreview ? false : isPending,
         isDeletedBlock: isPreview ? false : isDeletedBlock,
         diffStatus: isPreview ? undefined : diffStatus,
         runPathStatus,
         isPreviewSelection: isPreview && isPreviewSelected,
       }),
-    [isActive, isPending, isDeletedBlock, diffStatus, runPathStatus, isPreview, isPreviewSelected]
+    [
+      isExecuting,
+      isEditorOpen,
+      isPending,
+      isDeletedBlock,
+      diffStatus,
+      runPathStatus,
+      isPreview,
+      isPreviewSelected,
+    ]
   )
 
   return {
diff --git a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/utils/block-ring-utils.ts b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/utils/block-ring-utils.ts
index 634d28a86e..19eec88625 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/utils/block-ring-utils.ts
+++ b/apps/sim/app/workspace/[workspaceId]/w/[workflowId]/utils/block-ring-utils.ts
@@ -5,7 +5,10 @@ export type BlockDiffStatus = 'new' | 'edited' | null | undefined
 export type BlockRunPathStatus = 'success' | 'error' | undefined
 
 export interface BlockRingOptions {
-  isActive: boolean
+  /** Whether the block is executing (shows green pulsing ring) */
+  isExecuting: boolean
+  /** Whether the editor panel is open for this block (shows blue ring) */
+  isEditorOpen: boolean
   isPending: boolean
   isDeletedBlock: boolean
   diffStatus: BlockDiffStatus
@@ -15,17 +18,25 @@ export interface BlockRingOptions {
 
 /**
  * Derives visual ring visibility and class names for workflow blocks
- * based on execution, diff, deletion, and run-path states.
+ * based on editor open state, execution, diff, deletion, and run-path states.
  */
 export function getBlockRingStyles(options: BlockRingOptions): {
   hasRing: boolean
   ringClassName: string
 } {
-  const { isActive, isPending, isDeletedBlock, diffStatus, runPathStatus, isPreviewSelection } =
-    options
+  const {
+    isExecuting,
+    isEditorOpen,
+    isPending,
+    isDeletedBlock,
+    diffStatus,
+    runPathStatus,
+    isPreviewSelection,
+  } = options
 
   const hasRing =
-    isActive ||
+    isExecuting ||
+    isEditorOpen ||
     isPending ||
     diffStatus === 'new' ||
     diffStatus === 'edited' ||
@@ -33,37 +44,41 @@ export function getBlockRingStyles(options: BlockRingOptions): {
     !!runPathStatus
 
   const ringClassName = cn(
-    // Preview selection: static blue ring (standard thickness, no animation)
-    isActive && isPreviewSelection && 'ring-[1.75px] ring-[var(--brand-secondary)]',
-    // Executing block: pulsing success ring with prominent thickness
-    isActive &&
-      !isPreviewSelection &&
-      'ring-[3.5px] ring-[var(--border-success)] animate-ring-pulse',
+    // Executing block: pulsing success ring with prominent thickness (highest priority)
+    isExecuting && 'ring-[3.5px] ring-[var(--border-success)] animate-ring-pulse',
+    // Editor open or preview selection: static blue ring
+    !isExecuting &&
+      (isEditorOpen || isPreviewSelection) &&
+      'ring-[1.75px] ring-[var(--brand-secondary)]',
     // Non-active states use standard ring utilities
-    !isActive && hasRing && 'ring-[1.75px]',
+    !isExecuting && !isEditorOpen && !isPreviewSelection && hasRing && 'ring-[1.75px]',
     // Pending state: warning ring
-    !isActive && isPending && 'ring-[var(--warning)]',
+    !isExecuting && !isEditorOpen && isPending && 'ring-[var(--warning)]',
     // Deleted state (highest priority after active/pending)
-    !isActive && !isPending && isDeletedBlock && 'ring-[var(--text-error)]',
+    !isExecuting && !isEditorOpen && !isPending && isDeletedBlock && 'ring-[var(--text-error)]',
     // Diff states
-    !isActive &&
+    !isExecuting &&
+      !isEditorOpen &&
       !isPending &&
       !isDeletedBlock &&
       diffStatus === 'new' &&
       'ring-[var(--brand-tertiary-2)]',
-    !isActive &&
+    !isExecuting &&
+      !isEditorOpen &&
       !isPending &&
       !isDeletedBlock &&
       diffStatus === 'edited' &&
       'ring-[var(--warning)]',
     // Run path states (lowest priority - only show if no other states active)
-    !isActive &&
+    !isExecuting &&
+      !isEditorOpen &&
       !isPending &&
       !isDeletedBlock &&
       !diffStatus &&
       runPathStatus === 'success' &&
       'ring-[var(--border-success)]',
-    !isActive &&
+    !isExecuting &&
+      !isEditorOpen &&
       !isPending &&
       !isDeletedBlock &&
       !diffStatus &&
diff --git a/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components/workflow-list/components/context-menu/context-menu.tsx b/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components/workflow-list/components/context-menu/context-menu.tsx
index d633e5a70b..e48673db20 100644
--- a/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components/workflow-list/components/context-menu/context-menu.tsx
+++ b/apps/sim/app/workspace/[workspaceId]/w/components/sidebar/components/workflow-list/components/context-menu/context-menu.tsx
@@ -3,6 +3,7 @@
 import { useCallback, useEffect, useMemo, useState } from 'react'
 import { Check } from 'lucide-react'
 import {
+  Button,
   Popover,
   PopoverAnchor,
   PopoverBackButton,
@@ -368,17 +369,17 @@ export function ContextMenu({
                   onClick={(e) => e.stopPropagation()}
                   className='h-[20px] min-w-0 flex-1 rounded-[4px] bg-[#363636] px-[6px] text-[11px] text-white uppercase caret-white focus:outline-none'
                 />
-                <button
-                  type='button'
+                <Button
+                  variant='tertiary'
                   disabled={!canSubmitHex}
                   onClick={(e) => {
                     e.stopPropagation()
                     handleHexSubmit()
                   }}
-                  className='flex h-[20px] w-[20px] flex-shrink-0 items-center justify-center rounded-[4px] bg-[var(--brand-tertiary-2)] text-white disabled:opacity-40'
+                  className='h-[20px] w-[20px] flex-shrink-0 p-0'
                 >
                   <Check className='h-[12px] w-[12px]' />
-                </button>
+                </Button>
               </div>
             </div>
           </PopoverFolder>
diff --git a/apps/sim/blocks/blocks/agent.ts b/apps/sim/blocks/blocks/agent.ts
index aa694e2e96..9af1c7fcc0 100644
--- a/apps/sim/blocks/blocks/agent.ts
+++ b/apps/sim/blocks/blocks/agent.ts
@@ -83,9 +83,44 @@ export const AgentBlock: BlockConfig<AgentResponse> = {
   subBlocks: [
     {
       id: 'messages',
-      // title: 'Messages',
+      title: 'Messages',
       type: 'messages-input',
       placeholder: 'Enter messages...',
+      wandConfig: {
+        enabled: true,
+        maintainHistory: true,
+        prompt: `You are an expert at creating professional, comprehensive LLM agent configurations. Generate or modify a JSON array of messages based on the user's request.
+
+Current messages: {context}
+
+RULES:
+1. Generate ONLY a valid JSON array - no markdown, no explanations
+2. Each message object must have "role" (system/user/assistant) and "content" (string)
+3. You can generate any number of messages as needed
+4. Content can be as long as necessary - don't truncate
+5. If editing existing messages, preserve structure unless asked to change it
+6. For new agents, create DETAILED, PROFESSIONAL system prompts that include:
+   - A clear role definition starting with "You are..."
+   - Specific methodology or approach guidelines
+   - Structured output format requirements
+   - Critical thinking or quality guidelines
+   - How to handle edge cases and uncertainty
+
+EXAMPLES:
+
+Research agent:
+[{"role": "system", "content": "You are a Research Specialist who synthesizes information into actionable insights.\\n\\n## Approach\\n- Identify key concepts, historical context, and future implications\\n- Distinguish between: established facts, emerging research, contested positions, and your inferences\\n- Attribute claims clearly (e.g., \\"Research suggests...\\", \\"Industry consensus holds...\\")\\n\\n## Response Structure\\n1. **Executive Summary**: 2-3 sentences on key findings\\n2. **Key Findings**: Numbered insights with supporting context\\n3. **Analysis**: Organized by themes—background, current state, perspectives, implications\\n4. **Limitations**: What's uncertain or incomplete\\n5. **Recommendations**: Actionable next steps\\n\\n## Standards\\n- Present multiple viewpoints; avoid single narratives as definitive\\n- Make assumptions explicit; question conventional wisdom\\n- Assess evidence strength; distinguish correlation from causation\\n- Use hedging language (\\"likely\\", \\"suggests\\") over false certainty\\n- Acknowledge knowledge limits directly"}, {"role": "user", "content": ""}]
+
+Code reviewer:
+[{"role": "system", "content": "You are a Senior Code Reviewer with expertise in software architecture, security, and best practices. Your role is to provide thorough, constructive code reviews that improve code quality and help developers grow.\\n\\n## Review Methodology\\n\\n1. **Security First**: Check for vulnerabilities including injection attacks, authentication flaws, data exposure, and insecure dependencies.\\n\\n2. **Code Quality**: Evaluate readability, maintainability, adherence to DRY/SOLID principles, and appropriate abstraction levels.\\n\\n3. **Performance**: Identify potential bottlenecks, unnecessary computations, memory leaks, and optimization opportunities.\\n\\n4. **Testing**: Assess test coverage, edge case handling, and testability of the code structure.\\n\\n## Output Format\\n\\n### Summary\\nBrief overview of the code's purpose and overall assessment.\\n\\n### Critical Issues\\nSecurity vulnerabilities or bugs that must be fixed before merging.\\n\\n### Improvements\\nSuggested enhancements with clear explanations of why and how.\\n\\n### Positive Aspects\\nHighlight well-written code to reinforce good practices.\\n\\nBe specific with line references. Provide code examples for suggested changes. Balance critique with encouragement."}, {"role": "user", "content": "<start.input>"}]
+
+Writing assistant:
+[{"role": "system", "content": "You are a skilled Writing Editor and Coach. Your role is to help users improve their writing through constructive feedback, editing suggestions, and guidance on style, clarity, and structure.\\n\\n## Editing Approach\\n\\n1. **Clarity**: Ensure ideas are expressed clearly and concisely. Eliminate jargon unless appropriate for the audience.\\n\\n2. **Structure**: Evaluate logical flow, paragraph organization, and transitions between ideas.\\n\\n3. **Voice & Tone**: Maintain consistency and appropriateness for the intended audience and purpose.\\n\\n4. **Grammar & Style**: Correct errors while respecting the author's voice.\\n\\n## Output Format\\n\\n### Overall Impression\\nBrief assessment of the piece's strengths and areas for improvement.\\n\\n### Structural Feedback\\nComments on organization, flow, and logical progression.\\n\\n### Line-Level Edits\\nSpecific suggestions with explanations, not just corrections.\\n\\n### Revised Version\\nWhen appropriate, provide an edited version demonstrating improvements.\\n\\nBe encouraging while honest. Explain the reasoning behind suggestions to help the writer improve."}, {"role": "user", "content": "<start.input>"}]
+
+Return ONLY the JSON array.`,
+        placeholder: 'Describe what you want to create or change...',
+        generationType: 'json-object',
+      },
     },
     {
       id: 'model',
diff --git a/apps/sim/blocks/blocks/response.ts b/apps/sim/blocks/blocks/response.ts
index b5da9365e8..82f5ddb58b 100644
--- a/apps/sim/blocks/blocks/response.ts
+++ b/apps/sim/blocks/blocks/response.ts
@@ -42,7 +42,7 @@ export const ResponseBlock: BlockConfig<ResponseBlockOutput> = {
       id: 'data',
       title: 'Response Data',
       type: 'code',
-      placeholder: '{\n  "message": "Hello world",\n  "userId": "<variable.userId>"\n}',
+      placeholder: '{\n  "message": "Hello world"\n}',
       language: 'json',
       condition: { field: 'dataMode', value: 'json' },
       description:
diff --git a/apps/sim/components/emcn/components/code/code.tsx b/apps/sim/components/emcn/components/code/code.tsx
index 8d4048872c..ee03b04fa1 100644
--- a/apps/sim/components/emcn/components/code/code.tsx
+++ b/apps/sim/components/emcn/components/code/code.tsx
@@ -56,8 +56,6 @@ interface CodeContainerProps {
   className?: string
   /** Inline styles for the container */
   style?: React.CSSProperties
-  /** Whether editor is in streaming/AI generation state */
-  isStreaming?: boolean
   /** Drag and drop handler */
   onDragOver?: (e: React.DragEvent) => void
   /** Drop handler */
@@ -77,14 +75,7 @@ interface CodeContainerProps {
  * </Code.Container>
  * ```
  */
-function Container({
-  children,
-  className,
-  style,
-  isStreaming = false,
-  onDragOver,
-  onDrop,
-}: CodeContainerProps) {
+function Container({ children, className, style, onDragOver, onDrop }: CodeContainerProps) {
   return (
     <div
       className={cn(
@@ -94,8 +85,6 @@ function Container({
         'dark:bg-[#1F1F1F]',
         // Overflow handling for long content
         'overflow-x-auto overflow-y-auto',
-        // Streaming state
-        isStreaming && 'streaming-effect',
         className
       )}
       style={style}
diff --git a/apps/sim/stores/constants.ts b/apps/sim/stores/constants.ts
index a316e85535..d2eb2bfd3b 100644
--- a/apps/sim/stores/constants.ts
+++ b/apps/sim/stores/constants.ts
@@ -28,7 +28,7 @@ export const SIDEBAR_WIDTH = {
 
 /** Right panel width constraints */
 export const PANEL_WIDTH = {
-  DEFAULT: 290,
+  DEFAULT: 320,
   MIN: 290,
   /** Maximum is 40% of viewport, enforced dynamically */
   MAX_PERCENTAGE: 0.4,
diff --git a/apps/sim/tailwind.config.ts b/apps/sim/tailwind.config.ts
index 4aa4e6bb75..7f1822db0d 100644
--- a/apps/sim/tailwind.config.ts
+++ b/apps/sim/tailwind.config.ts
@@ -126,14 +126,6 @@ export default {
             strokeDashoffset: '-24',
           },
         },
-        'code-shimmer': {
-          '0%': {
-            transform: 'translateX(-100%)',
-          },
-          '100%': {
-            transform: 'translateX(100%)',
-          },
-        },
         'placeholder-pulse': {
           '0%, 100%': {
             opacity: '0.5',
@@ -156,7 +148,6 @@ export default {
         'slide-left': 'slide-left 80s linear infinite',
         'slide-right': 'slide-right 80s linear infinite',
         'dash-animation': 'dash-animation 1.5s linear infinite',
-        'code-shimmer': 'code-shimmer 1.5s infinite',
         'placeholder-pulse': 'placeholder-pulse 1.5s ease-in-out infinite',
         'ring-pulse': 'ring-pulse 1.5s ease-in-out infinite',
       },