diff --git a/src/lib/components/chat/ChatControls.svelte b/src/lib/components/chat/ChatControls.svelte
index 410483dc2..26559825d 100644
--- a/src/lib/components/chat/ChatControls.svelte
+++ b/src/lib/components/chat/ChatControls.svelte
@@ -15,7 +15,8 @@
 		showCallOverlay,
 		showArtifacts,
 		showEmbeds,
-		settings
+		settings,
+		showFileNavPath
 	} from '$lib/stores';
 
 	import { uploadFile } from '$lib/apis/files';
@@ -61,6 +62,12 @@
 	$: hasMessages = history?.messages && Object.keys(history.messages).length > 0;
 	$: if (!hasMessages && activeTab === 'overview') activeTab = 'controls';
 
+	// Auto-switch to Files tab when display_file is triggered
+	$: if ($showFileNavPath) {
+		activeTab = 'files';
+		showControls.set(true);
+	}
+
 	// Attach a terminal file to the chat input
 	const handleTerminalAttach = async (blob: Blob, name: string, contentType: string) => {
 		const tempItemId = uuidv4();
diff --git a/src/lib/components/chat/FileNav.svelte b/src/lib/components/chat/FileNav.svelte
index 88de8c788..a08b597ca 100644
--- a/src/lib/components/chat/FileNav.svelte
+++ b/src/lib/components/chat/FileNav.svelte
@@ -6,7 +6,7 @@
 <script lang="ts">
 	import { toast } from 'svelte-sonner';
 	import { getContext, onMount, onDestroy, tick } from 'svelte';
-	import { settings } from '$lib/stores';
+	import { settings, showFileNavPath } from '$lib/stores';
 	import {
 		getCwd,
 		listFiles,
@@ -224,12 +224,42 @@
 
 	onMount(async () => {
 		if (!configured) return;
-		// On first ever open, resolve the server's CWD instead of defaulting to /
-		if (savedPath === '/') {
-			const cwd = await getCwd(terminalUrl, terminalKey);
-			if (cwd) savedPath = cwd.endsWith('/') ? cwd : cwd + '/';
+
+		let handledDisplayFile = false;
+
+		// Subscribe to display_file requests
+		const unsubFileNav = showFileNavPath.subscribe(async (filePath) => {
+			if (!filePath || !configured) return;
+			handledDisplayFile = true;
+			// Clear the store so it can be re-triggered for the same path
+			showFileNavPath.set(null);
+
+			// Navigate to the parent directory
+			const lastSlash = filePath.lastIndexOf('/');
+			const dir = lastSlash > 0 ? filePath.substring(0, lastSlash + 1) : '/';
+			const fileName = filePath.substring(lastSlash + 1);
+
+			if (dir !== currentPath) {
+				await loadDir(dir);
+			}
+
+			// Open the file for preview
+			await tick();
+			const entry = entries.find((e) => e.name === fileName);
+			if (entry) {
+				await openEntry(entry);
+			}
+		});
+
+		// Only load the default directory if a display_file wasn't pending
+		if (!handledDisplayFile) {
+			// On first ever open, resolve the server's CWD instead of defaulting to /
+			if (savedPath === '/') {
+				const cwd = await getCwd(terminalUrl, terminalKey);
+				if (cwd) savedPath = cwd.endsWith('/') ? cwd : cwd + '/';
+			}
+			loadDir(savedPath);
 		}
-		loadDir(savedPath);
 
 		const onKeyDown = (e: KeyboardEvent) => {
 			if (e.key === 'Shift') shiftKey = true;
diff --git a/src/lib/stores/index.ts b/src/lib/stores/index.ts
index 31fa2beba..d11cc3cfc 100644
--- a/src/lib/stores/index.ts
+++ b/src/lib/stores/index.ts
@@ -92,6 +92,7 @@ export const showOverview = writable(false);
 export const showArtifacts = writable(false);
 export const showCallOverlay = writable(false);
 export const showFileNav = writable(false);
+export const showFileNavPath: Writable<string | null> = writable(null);
 
 export const artifactCode = writable(null);
 export const artifactContents = writable(null);
diff --git a/src/routes/+layout.svelte b/src/routes/+layout.svelte
index f449e34d9..8598158ef 100644
--- a/src/routes/+layout.svelte
+++ b/src/routes/+layout.svelte
@@ -31,7 +31,9 @@
 		playingNotificationSound,
 		channels,
 		channelId,
-		terminalServers
+		terminalServers,
+		showControls,
+		showFileNavPath
 	} from '$lib/stores';
 	import { goto } from '$app/navigation';
 	import { page } from '$app/stores';
@@ -283,14 +285,11 @@
 		};
 	};
 
-	const executeTool = async (data, cb) => {
-		let toolServer = $settings?.toolServers?.find((server) => server.url === data.server?.url);
-		let toolServerData = $toolServers?.find((server) => server.url === data.server?.url);
-
-		// Also check terminal servers if not found in regular tool servers
+	const resolveToolServer = (serverUrl) => {
+		let toolServer = $settings?.toolServers?.find((server) => server.url === serverUrl);
 		if (!toolServer) {
 			const terminalServer = ($settings?.terminalServers ?? []).find(
-				(server) => server.url === data.server?.url
+				(server) => server.url === serverUrl
 			);
 			if (terminalServer) {
 				toolServer = {
@@ -302,28 +301,28 @@
 			}
 		}
 
-		// Check terminal server data if not found in regular tool servers data
-		if (!toolServerData) {
-			toolServerData = $terminalServers?.find((server) => server.url === data.server?.url);
+		let toolServerData =
+			$toolServers?.find((server) => server.url === serverUrl) ??
+			$terminalServers?.find((server) => server.url === serverUrl);
+
+		let token = null;
+		if (toolServer) {
+			const auth_type = toolServer?.auth_type ?? 'bearer';
+			if (auth_type === 'bearer') token = toolServer?.key;
+			else if (auth_type === 'session') token = localStorage.token;
 		}
 
+		return { toolServer, toolServerData, token };
+	};
+
+	const executeTool = async (data, cb) => {
+		const { toolServer, toolServerData, token } = resolveToolServer(data.server?.url);
+
 		console.log('executeTool', data, toolServer);
 
 		if (toolServer) {
-			console.log(toolServer);
-
-			let toolServerToken = null;
-			const auth_type = toolServer?.auth_type ?? 'bearer';
-			if (auth_type === 'bearer') {
-				toolServerToken = toolServer?.key;
-			} else if (auth_type === 'none') {
-				// No authentication
-			} else if (auth_type === 'session') {
-				toolServerToken = localStorage.token;
-			}
-
 			const res = await executeToolServer(
-				toolServerToken,
+				token,
 				toolServer.url,
 				data?.name,
 				data?.params,
@@ -331,6 +330,15 @@
 			);
 
 			console.log('executeToolServer', res);
+
+			// Intercept display_file result to handle UI
+			if (data?.name === 'display_file' && data?.params?.path) {
+				if (res?.exists !== false) {
+					showControls.set(true);
+					showFileNavPath.set(data.params.path);
+				}
+			}
+
 			if (cb) {
 				cb(JSON.parse(JSON.stringify(res)));
 			}