diff --git a/frontend/package-lock.json b/frontend/package-lock.json
index e8a77bc11a..64124a9a65 100644
--- a/frontend/package-lock.json
+++ b/frontend/package-lock.json
@@ -62,6 +62,7 @@
 				"svelte-infinite-loading": "^1.4.0",
 				"svelte-tiny-virtual-list": "^2.0.5",
 				"tailwind-merge": "^1.13.2",
+				"textarea-caret": "^3.1.0",
 				"vscode": "npm:@codingame/monaco-vscode-api@~11.1.2",
 				"vscode-languageclient": "~9.0.1",
 				"vscode-uri": "~3.0.8",
@@ -11881,6 +11882,12 @@
 			"integrity": "sha512-N+8UisAXDGk8PFXP4HAzVR9nbfmVJ3zYLAWiTIoqC5v5isinhr+r5uaO8+7r3BMfuNIufIsA7RdpVgacC2cSpw==",
 			"dev": true
 		},
+		"node_modules/textarea-caret": {
+			"version": "3.1.0",
+			"resolved": "https://registry.npmjs.org/textarea-caret/-/textarea-caret-3.1.0.tgz",
+			"integrity": "sha512-cXAvzO9pP5CGa6NKx0WYHl+8CHKZs8byMkt3PCJBCmq2a34YA9pO1NrQET5pzeqnBjBdToF5No4rrmkDUgQC2Q==",
+			"license": "MIT"
+		},
 		"node_modules/thenify": {
 			"version": "3.3.1",
 			"resolved": "https://registry.npmjs.org/thenify/-/thenify-3.3.1.tgz",
diff --git a/frontend/package.json b/frontend/package.json
index 2580cd35f0..ab203c2b47 100644
--- a/frontend/package.json
+++ b/frontend/package.json
@@ -138,6 +138,7 @@
 		"svelte-infinite-loading": "^1.4.0",
 		"svelte-tiny-virtual-list": "^2.0.5",
 		"tailwind-merge": "^1.13.2",
+		"textarea-caret": "^3.1.0",
 		"vscode": "npm:@codingame/monaco-vscode-api@~11.1.2",
 		"vscode-languageclient": "~9.0.1",
 		"vscode-uri": "~3.0.8",
diff --git a/frontend/src/lib/components/copilot/chat/AIChat.svelte b/frontend/src/lib/components/copilot/chat/AIChat.svelte
index d27077d989..848dd77f9f 100644
--- a/frontend/src/lib/components/copilot/chat/AIChat.svelte
+++ b/frontend/src/lib/components/copilot/chat/AIChat.svelte
@@ -1,5 +1,12 @@
 <script lang="ts">
-	import { copilotSessionModel, dbSchemas, type DBSchema, type DBSchemas } from '$lib/stores'
+	import {
+		copilotSessionModel,
+		dbSchemas,
+		type DBSchema,
+		type DBSchemas,
+		SQLSchemaLanguages,
+		workspaceStore
+	} from '$lib/stores'
 	import { writable, type Writable } from 'svelte/store'
 	import AIChatDisplay from './AIChatDisplay.svelte'
 	import {
@@ -8,11 +15,15 @@
 		prepareUserMessage,
 		type AIChatContext,
 		type ContextElement,
-		type DisplayMessage,
-		type SelectedContext
+		type DisplayMessage
 	} from './core'
 	import { createEventDispatcher, onDestroy, setContext } from 'svelte'
-	import type { AIProviderModel, ScriptLang } from '$lib/gen'
+	import {
+		type AIProviderModel,
+		type ListResourceResponse,
+		type ScriptLang,
+		ResourceService
+	} from '$lib/gen'
 	import { sendUserToast } from '$lib/toast'
 	import { openDB, type DBSchema as IDBSchema, type IDBPDatabase } from 'idb'
 	import { isInitialCode } from '$lib/script_helpers'
@@ -26,43 +37,11 @@
 	export let path: string | undefined
 
 	$: contextCodePath = path
-		? path.split('/').pop() + '.' + langToExt(scriptLangToEditorLang(lang))
+		? (path.split('/').pop() ?? 'script') + '.' + langToExt(scriptLangToEditorLang(lang))
 		: undefined
 
 	let initializedWithInitCode: boolean | null = null
 	$: lang && (initializedWithInitCode = null)
-	function onCodeChange() {
-		if (!contextCodePath) {
-			return
-		}
-		try {
-			if (initializedWithInitCode === null && code) {
-				if (isInitialCode(code)) {
-					initializedWithInitCode = true
-				} else {
-					initializedWithInitCode = false
-					selectedContext = [
-						{
-							type: 'code',
-							title: contextCodePath
-						}
-					]
-				}
-			} else if (initializedWithInitCode) {
-				// if the code was initial and was changed, add code context, then prevent it from being added again
-				selectedContext = [
-					{
-						type: 'code',
-						title: contextCodePath
-					}
-				]
-				initializedWithInitCode = false
-			}
-		} catch (err) {
-			console.error('Could not update context', err)
-		}
-	}
-	$: contextCodePath && code && onCodeChange()
 
 	let db: { schema: DBSchema; resource: string } | undefined = undefined
 
@@ -90,23 +69,36 @@
 	}
 	$: updateSchema(lang, args, $dbSchemas)
 
-	let selectedContext: SelectedContext[] = []
+	let selectedContext: ContextElement[] = []
 
 	let availableContext: ContextElement[] = []
 
-	function updateAvailableContext(
+	let dbResources: ListResourceResponse = []
+
+	async function updateDBResources(workspace: string | undefined) {
+		if (workspace) {
+			dbResources = await ResourceService.listResource({
+				workspace: workspace,
+				resourceType: SQLSchemaLanguages.join(',')
+			})
+		}
+	}
+
+	async function updateAvailableContext(
 		contextCodePath: string | undefined,
 		code: string,
 		lang: ScriptLang | 'bunnative',
 		error: string | undefined,
 		db: { schema: DBSchema; resource: string } | undefined,
-		providerModel: AIProviderModel | undefined
+		providerModel: AIProviderModel | undefined,
+		dbSchemas: DBSchemas,
+		dbResources: ListResourceResponse
 	) {
 		if (!contextCodePath) {
 			return
 		}
 		try {
-			availableContext = [
+			let newAvailableContext: ContextElement[] = [
 				{
 					type: 'code',
 					title: contextCodePath,
@@ -114,10 +106,21 @@
 					lang
 				}
 			]
+			if (!providerModel?.model.endsWith('/thinking')) {
+				for (const d of dbResources) {
+					const loadedSchema = dbSchemas[d.path]
+					newAvailableContext.push({
+						type: 'db',
+						title: d.path,
+						// If the db is already fetched, add the schema to the context
+						...(loadedSchema ? { schema: loadedSchema } : {})
+					})
+				}
+			}
 
 			if (error) {
-				availableContext = [
-					...availableContext,
+				newAvailableContext = [
+					...newAvailableContext,
 					{
 						type: 'error',
 						title: 'error',
@@ -126,22 +129,78 @@
 				]
 			}
 
-			if (db && !providerModel?.model.endsWith('/thinking')) {
-				availableContext = [
-					...availableContext,
+			if (db) {
+				// If the db is already fetched, add it to the selected context
+				if (
+					!selectedContext.find((c) => c.type === 'db' && c.title === db.resource) &&
+					!providerModel?.model.endsWith('/thinking')
+				) {
+					selectedContext = [
+						...selectedContext,
+						{
+							type: 'db',
+							title: db.resource,
+							schema: db.schema
+						}
+					]
+				}
+			}
+
+			availableContext = newAvailableContext
+
+			if (
+				code &&
+				((initializedWithInitCode === null && !isInitialCode(code)) || initializedWithInitCode)
+			) {
+				selectedContext = [
 					{
-						type: 'db',
-						title: db.resource,
-						schema: db.schema
+						type: 'code',
+						title: contextCodePath,
+						content: code,
+						lang
 					}
 				]
 			}
+
+			if (code && initializedWithInitCode === null) {
+				initializedWithInitCode = isInitialCode(code)
+			}
+
+			selectedContext = selectedContext
+				.map((c) => availableContext.find((ac) => ac.type === c.type && ac.title === c.title))
+				.filter((c) => c !== undefined) as ContextElement[]
 		} catch (err) {
 			console.error('Could not update available context', err)
 		}
 	}
 
-	$: updateAvailableContext(contextCodePath, code, lang, error, db, $copilotSessionModel)
+	function updateDisplayMessages(dbSchemas: DBSchemas) {
+		return displayMessages.map((m) => ({
+			...m,
+			contextElements: m.contextElements?.map((c) =>
+				c.type === 'db'
+					? {
+							type: 'db',
+							title: c.title,
+							schema: dbSchemas[c.title]
+					  }
+					: c
+			) as ContextElement[]
+		}))
+	}
+
+	$: updateDBResources($workspaceStore)
+
+	$: updateAvailableContext(
+		contextCodePath,
+		code,
+		lang,
+		error,
+		db,
+		$copilotSessionModel,
+		$dbSchemas,
+		dbResources
+	)
 
 	let instructions = ''
 	let loading = writable(false)
@@ -178,28 +237,11 @@
 	let messages: { role: 'user' | 'assistant' | 'system'; content: string }[] = [
 		prepareSystemMessage()
 	]
+
 	let displayMessages: DisplayMessage[] = []
 	let abortController: AbortController | undefined = undefined
 
-	function updateSelectedContextElements() {
-		try {
-			const contextElements: ContextElement[] = []
-
-			for (const selected of selectedContext) {
-				const el = availableContext.find(
-					(c) => c.type === selected.type && c.title === selected.title
-				)
-				if (el) {
-					contextElements.push(el)
-				}
-			}
-			return contextElements
-		} catch (err) {
-			console.error('Could not update selected context elements', err)
-			return []
-		}
-	}
-	let selectedContextElements: ContextElement[] = []
+	$: displayMessages = updateDisplayMessages($dbSchemas)
 
 	async function sendRequest() {
 		if (!instructions.trim()) {
@@ -210,19 +252,17 @@
 			aiChatDisplay?.enableAutomaticScroll()
 			abortController = new AbortController()
 
-			selectedContextElements = updateSelectedContextElements()
-
 			displayMessages = [
 				...displayMessages,
 				{
 					role: 'user',
 					content: instructions,
-					contextElements: selectedContextElements
+					contextElements: selectedContext
 				}
 			]
 			const oldInstructions = instructions
 			instructions = ''
-			const userMessage = await prepareUserMessage(oldInstructions, lang, selectedContextElements)
+			const userMessage = await prepareUserMessage(oldInstructions, lang, selectedContext)
 
 			messages.push({ role: 'user', content: userMessage })
 			await saveChat()
@@ -232,14 +272,8 @@
 				messages,
 				abortController,
 				lang,
-				(
-					selectedContextElements.find((c) => c.type === 'db') as
-						| Extract<ContextElement, { type: 'db' }>
-						| undefined
-				)?.schema,
-				(token) => {
-					currentReply.update((prev) => prev + token)
-				}
+				selectedContext.filter((c) => c.type === 'db').length > 0,
+				(token) => currentReply.update((prev) => prev + token)
 			)
 
 			messages.push({ role: 'assistant', content: $currentReply })
@@ -248,7 +282,7 @@
 				{
 					role: 'assistant',
 					content: $currentReply,
-					contextElements: selectedContextElements
+					contextElements: selectedContext.filter((c) => c.type === 'code')
 				}
 			]
 			currentReply.set('')
@@ -318,16 +352,14 @@
 		}
 		instructions = 'Fix the error'
 
-		selectedContext = [
-			{
-				type: 'code',
-				title: contextCodePath
-			},
-			{
-				type: 'error',
-				title: 'error'
-			}
-		]
+		const codeContext = availableContext.find(
+			(c) => c.type === 'code' && c.title === contextCodePath
+		)
+		const errorContext = availableContext.find((c) => c.type === 'error')
+
+		if (codeContext && errorContext) {
+			selectedContext = [codeContext, errorContext]
+		}
 
 		sendRequest()
 	}
@@ -390,7 +422,7 @@
 				{
 					role: 'assistant',
 					content: $currentReply,
-					contextElements: selectedContextElements
+					contextElements: selectedContext.filter((c) => c.type === 'code')
 				}
 		  ]
 		: displayMessages}
diff --git a/frontend/src/lib/components/copilot/chat/AIChatDisplay.svelte b/frontend/src/lib/components/copilot/chat/AIChatDisplay.svelte
index cf3b7d92bd..a4cb143fcd 100644
--- a/frontend/src/lib/components/copilot/chat/AIChatDisplay.svelte
+++ b/frontend/src/lib/components/copilot/chat/AIChatDisplay.svelte
@@ -1,18 +1,11 @@
 <script lang="ts">
-	import autosize from '$lib/autosize'
 	import { twMerge } from 'tailwind-merge'
 	import AssistantMessage from './AssistantMessage.svelte'
 	import { createEventDispatcher, getContext } from 'svelte'
 	import { ChevronDown, HistoryIcon, Loader2, Plus, X } from 'lucide-svelte'
 	import Button from '$lib/components/common/button/Button.svelte'
 	import Popover from '$lib/components/meltComponents/Popover.svelte'
-	import {
-		ContextIconMap,
-		type AIChatContext,
-		type DisplayMessage,
-		type ContextElement,
-		type SelectedContext
-	} from './core'
+	import { type AIChatContext, type DisplayMessage, type ContextElement } from './core'
 	import {
 		COPILOT_SESSION_MODEL_SETTING_NAME,
 		COPILOT_SESSION_PROVIDER_SETTING_NAME,
@@ -21,11 +14,13 @@
 	} from '$lib/stores'
 	import ContextElementBadge from './ContextElementBadge.svelte'
 	import { storeLocalSetting } from '$lib/utils'
+	import ContextTextarea from './ContextTextarea.svelte'
+	import AvailableContextList from './AvailableContextList.svelte'
 
 	export let pastChats: { id: string; title: string }[]
 	export let messages: DisplayMessage[]
 	export let instructions: string
-	export let selectedContext: SelectedContext[]
+	export let selectedContext: ContextElement[]
 	export let availableContext: ContextElement[]
 
 	const dispatch = createEventDispatcher<{
@@ -59,6 +54,19 @@
 			model: 'No model',
 			provider: 'No provider'
 		}
+
+	function addContextToSelection(contextElement: ContextElement) {
+		if (
+			!selectedContext.find(
+				(c) => c.type === contextElement.type && c.title === contextElement.title
+			) &&
+			availableContext.find(
+				(c) => c.type === contextElement.type && c.title === contextElement.title
+			)
+		) {
+			selectedContext = [...selectedContext, contextElement]
+		}
+	}
 </script>
 
 <div class="flex flex-col h-full">
@@ -188,97 +196,74 @@
 					>
 				</svelte:fragment>
 				<svelte:fragment slot="content" let:close>
-					<div class="flex flex-col gap-1 text-tertiary text-xs p-1 min-w-24">
-						{#if availableContext.filter((c) => !selectedContext.find((sc) => sc.type === c.type)).length === 0}
-							<div class="text-center text-tertiary text-xs">No available context</div>
-						{:else}
-							{#each availableContext as element}
-								{#if !selectedContext.find((c) => c.type === element.type)}
-									<button
-										class="hover:bg-surface-hover rounded-md p-1 text-left flex flex-row gap-1 items-center font-normal"
-										on:click={() => {
-											selectedContext = [
-												...selectedContext,
-												{
-													type: element.type,
-													title: element.title
-												}
-											]
-											close()
-										}}
-									>
-										<svelte:component this={ContextIconMap[element.type]} size={16} />
-										{element.title}
-									</button>
-								{/if}
-							{/each}
-						{/if}
-					</div>
+					<AvailableContextList
+						{availableContext}
+						{selectedContext}
+						onSelect={(element) => {
+							addContextToSelection(element)
+							close()
+						}}
+					/>
 				</svelte:fragment>
 			</Popover>
 			{#each selectedContext as element}
-				{@const contextElement = availableContext.find((c) => c.type === element.type)}
+				{@const contextElement = availableContext.find(
+					(c) => c.type === element.type && c.title === element.title
+				)}
 				{#if contextElement}
 					<ContextElementBadge
 						{contextElement}
 						deletable
 						on:delete={() => {
-							selectedContext = selectedContext.filter((c) => c.type !== element.type)
+							selectedContext = selectedContext.filter(
+								(c) => c.type !== element.type || c.title !== element.title
+							)
 						}}
 					/>
 				{/if}
 			{/each}
 		</div>
-		<div class="px-2 scroll-pb-2">
-			<textarea
-				on:keypress={(e) => {
-					if (e.key === 'Enter' && !e.shiftKey) {
-						e.preventDefault()
-						dispatch('sendRequest')
-					}
-				}}
-				bind:value={instructions}
-				use:autosize
-				rows={3}
-				placeholder={messages.length > 0 ? 'Ask followup' : 'Ask anything'}
-				class="resize-none"
-			/>
+		<ContextTextarea
+			{instructions}
+			{availableContext}
+			{selectedContext}
+			isFirstMessage={messages.length === 0}
+			on:addContext={(e) => addContextToSelection(e.detail.contextElement)}
+			on:sendRequest={() => dispatch('sendRequest')}
+			on:updateInstructions={(e) => (instructions = e.detail.value)}
+		/>
 
-			<div class="flex flex-row justify-end items-center gap-2 px-0.5">
-				<div class="min-w-0">
-					<Popover disablePopup={$copilotInfo.aiModels.length <= 1} class="max-w-full">
-						<svelte:fragment slot="trigger">
-							<div class="text-tertiary text-xs flex flex-row items-center gap-0.5 font-normal">
-								<span class="truncate">{providerModel.model}</span>
-								{#if $copilotInfo.aiModels.length > 1}
-									<div class="shrink-0">
-										<ChevronDown size={16} />
-									</div>
-								{/if}
-							</div>
-						</svelte:fragment>
-						<svelte:fragment slot="content" let:close>
-							<div class="flex flex-col gap-1 p-1 min-w-24">
-								{#each $copilotInfo.aiModels.filter((m) => m.model !== providerModel.model) as providerModel}
-									<button
-										class="text-left text-xs hover:bg-surface-hover rounded-md p-1 font-normal"
-										on:click={() => {
-											$copilotSessionModel = providerModel
-											storeLocalSetting(COPILOT_SESSION_MODEL_SETTING_NAME, providerModel.model)
-											storeLocalSetting(
-												COPILOT_SESSION_PROVIDER_SETTING_NAME,
-												providerModel.provider
-											)
-											close()
-										}}
-									>
-										{providerModel.model}
-									</button>
-								{/each}
-							</div>
-						</svelte:fragment>
-					</Popover>
-				</div>
+		<div class="flex flex-row justify-end items-center gap-2 px-0.5">
+			<div class="min-w-0">
+				<Popover disablePopup={$copilotInfo.aiModels.length <= 1} class="max-w-full">
+					<svelte:fragment slot="trigger">
+						<div class="text-tertiary text-xs flex flex-row items-center gap-0.5 font-normal">
+							<span class="truncate">{providerModel.model}</span>
+							{#if $copilotInfo.aiModels.length > 1}
+								<div class="shrink-0">
+									<ChevronDown size={16} />
+								</div>
+							{/if}
+						</div>
+					</svelte:fragment>
+					<svelte:fragment slot="content" let:close>
+						<div class="flex flex-col gap-1 p-1 min-w-24">
+							{#each $copilotInfo.aiModels.filter((m) => m.model !== providerModel.model) as providerModel}
+								<button
+									class="text-left text-xs hover:bg-surface-hover rounded-md p-1 font-normal"
+									on:click={() => {
+										$copilotSessionModel = providerModel
+										storeLocalSetting(COPILOT_SESSION_MODEL_SETTING_NAME, providerModel.model)
+										storeLocalSetting(COPILOT_SESSION_PROVIDER_SETTING_NAME, providerModel.provider)
+										close()
+									}}
+								>
+									{providerModel.model}
+								</button>
+							{/each}
+						</div>
+					</svelte:fragment>
+				</Popover>
 			</div>
 		</div>
 	</div>
diff --git a/frontend/src/lib/components/copilot/chat/AvailableContextList.svelte b/frontend/src/lib/components/copilot/chat/AvailableContextList.svelte
new file mode 100644
index 0000000000..558af49113
--- /dev/null
+++ b/frontend/src/lib/components/copilot/chat/AvailableContextList.svelte
@@ -0,0 +1,40 @@
+<script lang="ts">
+	import { ContextIconMap } from './core'
+	import type { ContextElement } from './core'
+
+	export let availableContext: ContextElement[]
+	export let selectedContext: ContextElement[]
+	export let onSelect: (element: ContextElement) => void
+	export let showAllAvailable = false
+	export let stringSearch = ''
+	export let selectedIndex = 0
+
+	$: actualAvailableContext = showAllAvailable
+		? availableContext.filter(
+				(c) => !stringSearch || c.title.toLowerCase().includes(stringSearch.toLowerCase())
+		  )
+		: availableContext.filter(
+				(c) =>
+					!selectedContext.find((sc) => sc.type === c.type && sc.title === c.title) &&
+					(!stringSearch || c.title.toLowerCase().includes(stringSearch.toLowerCase()))
+		  )
+</script>
+
+<div class="flex flex-col gap-1 text-tertiary text-xs p-1 min-w-24 max-h-48 overflow-y-scroll">
+	{#if actualAvailableContext.length === 0}
+		<div class="text-center text-tertiary text-xs">No available context</div>
+	{:else}
+		{#each actualAvailableContext as element, i}
+			<button
+				class="hover:bg-surface-hover rounded-md p-1 text-left flex flex-row gap-1 items-center font-normal {i ===
+				selectedIndex
+					? 'bg-surface-hover'
+					: ''}"
+				on:click={() => onSelect(element)}
+			>
+				<svelte:component this={ContextIconMap[element.type]} size={16} />
+				{element.title}
+			</button>
+		{/each}
+	{/if}
+</div>
diff --git a/frontend/src/lib/components/copilot/chat/ContextElementBadge.svelte b/frontend/src/lib/components/copilot/chat/ContextElementBadge.svelte
index ae22f6c7d6..7b75a63cce 100644
--- a/frontend/src/lib/components/copilot/chat/ContextElementBadge.svelte
+++ b/frontend/src/lib/components/copilot/chat/ContextElementBadge.svelte
@@ -53,7 +53,7 @@
 			</div>
 		{:else if contextElement.type === 'db'}
 			<div class="p-2 max-w-96 max-h-[300px] text-xs overflow-auto">
-				{#if contextElement.schema.lang === 'graphql'}
+				{#if contextElement.schema && contextElement.schema.lang === 'graphql'}
 					{#await import('$lib/components/GraphqlSchemaViewer.svelte')}
 						<Loader2 class="animate-spin" />
 					{:then Module}
@@ -62,8 +62,10 @@
 							class="h-full"
 						/>
 					{/await}
-				{:else}
+				{:else if contextElement.schema}
 					<ObjectViewer json={formatSchema(contextElement.schema)} pureViewer collapseLevel={1} />
+				{:else}
+					<div class="text-tertiary">Not loaded yet</div>
 				{/if}
 			</div>
 		{:else if contextElement.type === 'code'}
diff --git a/frontend/src/lib/components/copilot/chat/ContextTextarea.svelte b/frontend/src/lib/components/copilot/chat/ContextTextarea.svelte
new file mode 100644
index 0000000000..01ca3bd56b
--- /dev/null
+++ b/frontend/src/lib/components/copilot/chat/ContextTextarea.svelte
@@ -0,0 +1,218 @@
+<script lang="ts">
+	import autosize from '$lib/autosize'
+	import { createEventDispatcher } from 'svelte'
+	import type { ContextElement } from './core'
+	import AvailableContextList from './AvailableContextList.svelte'
+	import getCaretCoordinates from 'textarea-caret'
+
+	export let instructions: string
+	export let availableContext: ContextElement[]
+	export let selectedContext: ContextElement[]
+	export let isFirstMessage: boolean
+
+	const dispatch = createEventDispatcher<{
+		updateInstructions: { value: string }
+		sendRequest: null
+		addContext: { contextElement: ContextElement }
+	}>()
+
+	let showContextTooltip = false
+	let contextTooltipWord = ''
+	let tooltipPosition = { x: 0, y: 0 }
+	let textarea: HTMLTextAreaElement
+	let selectedSuggestionIndex = 0
+
+	function getHighlightedText(text: string) {
+		return text.replace(/@[\w/.-]+/g, (match) => {
+			const contextElement = availableContext.find((c) => c.title === match.slice(1))
+			if (contextElement) {
+				return `<span class="bg-black dark:bg-white text-white dark:text-black z-10">${match}</span>`
+			}
+			return match
+		})
+	}
+
+	function addContextToSelection(contextElement: ContextElement) {
+		dispatch('addContext', { contextElement })
+	}
+
+	function updateInstructionsWithContext(contextElement: ContextElement) {
+		const index = instructions.lastIndexOf('@')
+		if (index !== -1) {
+			const newInstructions = instructions.substring(0, index) + `@${contextElement.title}`
+			dispatch('updateInstructions', { value: newInstructions })
+		}
+	}
+
+	function handleContextSelection(contextElement: ContextElement) {
+		addContextToSelection(contextElement)
+		updateInstructionsWithContext(contextElement)
+		showContextTooltip = false
+	}
+
+	function updateTooltipPosition(
+		availableContext: ContextElement[],
+		showContextTooltip: boolean,
+		contextTooltipWord: string
+	) {
+		if (!textarea || !showContextTooltip) return
+
+		const coords = getCaretCoordinates(textarea, textarea.selectionEnd)
+		const rect = textarea.getBoundingClientRect()
+
+		const filteredAvailableContext = availableContext.filter(
+			(c) => !contextTooltipWord || c.title.toLowerCase().includes(contextTooltipWord.slice(1))
+		)
+
+		const itemHeight = 28 // Estimated height of one item + gap (Button: p-1(8px) + text-xs(16px) = 24px; Parent: gap-1(4px) = 28px)
+		const containerPadding = 8 // p-1 top + p-1 bottom = 4px + 4px = 8px
+		const maxHeight = 192 + containerPadding // max-h-48 (192px) + containerPadding (8px)
+
+		// Calculate uncapped height, subtract gap from last item as it's not needed
+		const numItems = filteredAvailableContext.length
+		let uncappedHeight =
+			numItems > 0 ? numItems * itemHeight - 4 + containerPadding : containerPadding
+		// Ensure height is at least containerPadding even if no items
+		uncappedHeight = Math.max(uncappedHeight, containerPadding)
+
+		const estimatedTooltipHeight = Math.min(uncappedHeight, maxHeight)
+		const margin = 6 // Small margin between caret and tooltip
+
+		let finalY: number
+
+		if (isFirstMessage) {
+			// Position below the caret line
+			finalY = rect.top + coords.top + coords.height - 3
+		} else {
+			// Position above the caret line
+			finalY = rect.top + coords.top - estimatedTooltipHeight - margin
+		}
+
+		tooltipPosition = {
+			x: rect.left + coords.left - 70,
+			y: finalY
+		}
+	}
+
+	function handleInput(e: Event) {
+		textarea = e.target as HTMLTextAreaElement
+		const words = instructions.split(/\s+/)
+		const lastWord = words[words.length - 1]
+
+		if (
+			lastWord.startsWith('@') &&
+			(!availableContext.find((c) => c.title === lastWord.slice(1)) ||
+				!selectedContext.find((c) => c.title === lastWord.slice(1)))
+		) {
+			showContextTooltip = true
+			contextTooltipWord = lastWord
+		} else {
+			showContextTooltip = false
+			contextTooltipWord = ''
+			selectedSuggestionIndex = 0
+		}
+		dispatch('updateInstructions', { value: instructions })
+	}
+
+	function handleKeyPress(e: KeyboardEvent) {
+		if (e.key === 'Enter' && !e.shiftKey) {
+			e.preventDefault()
+			if (contextTooltipWord) {
+				const filteredContext = availableContext.filter(
+					(c) => !contextTooltipWord || c.title.toLowerCase().includes(contextTooltipWord.slice(1))
+				)
+				const contextElement = filteredContext[selectedSuggestionIndex]
+				if (contextElement) {
+					const isInSelectedContext = selectedContext.find(
+						(c) => c.title === contextElement.title && c.type === contextElement.type
+					)
+					// If the context element is already in the selected context and the last word in the instructions is the same as the context element title, send request
+					if (isInSelectedContext && instructions.split(' ').pop() === '@' + contextElement.title) {
+						dispatch('sendRequest')
+						return
+					}
+					handleContextSelection(contextElement)
+				} else if (contextTooltipWord === '@' && availableContext.length > 0) {
+					handleContextSelection(availableContext[0])
+				}
+			} else {
+				dispatch('sendRequest')
+			}
+		}
+	}
+
+	function handleKeyDown(e: KeyboardEvent) {
+		if (!showContextTooltip) return
+
+		const filteredContext = availableContext.filter(
+			(c) => !contextTooltipWord || c.title.toLowerCase().includes(contextTooltipWord.slice(1))
+		)
+
+		if (e.key === 'Tab') {
+			e.preventDefault()
+			const contextElement = filteredContext[selectedSuggestionIndex]
+			if (contextElement) {
+				handleContextSelection(contextElement)
+			}
+		}
+
+		if (e.key === 'ArrowDown') {
+			e.preventDefault()
+			selectedSuggestionIndex = (selectedSuggestionIndex + 1) % filteredContext.length
+		} else if (e.key === 'ArrowUp') {
+			e.preventDefault()
+			selectedSuggestionIndex =
+				(selectedSuggestionIndex - 1 + filteredContext.length) % filteredContext.length
+		}
+	}
+
+	$: updateTooltipPosition(availableContext, showContextTooltip, contextTooltipWord)
+</script>
+
+<div class="relative w-full px-2 scroll-pb-2">
+	<div
+		class="absolute top-0 left-0 w-full h-full min-h-12 px-4 text-sm pt-1 pointer-events-none"
+		style="line-height: 1.72"
+	>
+		<span class="break-words" style="white-space: pre-wrap;">
+			{@html getHighlightedText(instructions)}
+		</span>
+	</div>
+	<textarea
+		bind:this={textarea}
+		on:keypress={handleKeyPress}
+		on:keydown={handleKeyDown}
+		bind:value={instructions}
+		use:autosize
+		rows={3}
+		on:input={handleInput}
+		on:blur={() => {
+			setTimeout(() => {
+				showContextTooltip = false
+			}, 100)
+		}}
+		placeholder={isFirstMessage ? 'Ask anything' : 'Ask followup'}
+		class="resize-none bg-transparent caret-black dark:caret-white"
+		style={instructions.length > 0
+			? 'color: transparent; -webkit-text-fill-color: transparent;'
+			: ''}
+	/>
+</div>
+
+{#if showContextTooltip}
+	<div
+		class="absolute bg-white dark:bg-gray-800 border border-gray-200 dark:border-gray-700 rounded-md shadow-lg z-50"
+		style="left: {tooltipPosition.x}px; top: {tooltipPosition.y}px;"
+	>
+		<AvailableContextList
+			{availableContext}
+			{selectedContext}
+			onSelect={(element) => {
+				handleContextSelection(element)
+			}}
+			showAllAvailable={true}
+			stringSearch={contextTooltipWord.slice(1)}
+			selectedIndex={selectedSuggestionIndex}
+		/>
+	</div>
+{/if}
diff --git a/frontend/src/lib/components/copilot/chat/core.ts b/frontend/src/lib/components/copilot/chat/core.ts
index 05af46391f..90b1cd955c 100644
--- a/frontend/src/lib/components/copilot/chat/core.ts
+++ b/frontend/src/lib/components/copilot/chat/core.ts
@@ -11,8 +11,9 @@ import type {
 	ChatCompletionMessageToolCall,
 	ChatCompletionTool
 } from 'openai/resources/index.mjs'
-import { workspaceStore, type DBSchema } from '$lib/stores'
+import { workspaceStore, type DBSchema, dbSchemas } from '$lib/stores'
 import { scriptLangToEditorLang } from '$lib/scripts'
+import { getDbSchemas } from '$lib/components/apps/components/display/dbtable/utils'
 
 export function formatResourceTypes(
 	resourceTypes: ResourceType[],
@@ -204,18 +205,20 @@ export async function getFormattedResourceTypes(
 }
 
 export const CHAT_SYSTEM_PROMPT = `
-You are a coding assistant on the Windmill platform. You are given a list of instructions to follow \`INSTRUCTIONS\` as well as the current code in the file \`CODE\`.
+	You are a coding assistant for the Windmill platform. You are provided with a list of \`INSTRUCTIONS\` and the current contents of a code file under \`CODE\`.
 
-Please respond to the user's query. The user's query is never invalid.
+	Your task is to respond to the user's request. Assume all user queries are valid and actionable.
 
-In the case that the user asks you to make changes to code, you should make sure to return a single CODE BLOCK, as well as explanations and descriptions of the changes.
-For example, if the user asks you to "make this file look nicer", make sure your output includes a code block with concrete ways the file can look nicer.
-- If suggesting changes, rewrite the **complete code** and not just a part of it.
+	When the user requests code changes:
+	- Always include a **single code block** with the **entire updated file**, not just the modified sections.
+	- Follow the instructions carefully and explain the reasoning behind your changes.
+	- If the request is abstract (e.g., "make this cleaner"), interpret it concretely and reflect that in the code block.
+	- Preserve existing formatting, indentation, and whitespace unless changes are strictly required to fulfill the user's request.
+	- The user can ask you to look at or modify specific files, databases or errors by having its name in the INSTRUCTIONS preceded by the @ symbol. In this case, put your focus on the element that is explicitly mentioned.
+	- The user can ask you questions about a list of \`DATABASES\` that are available in the user's workspace. If the user asks you a question about a database, you should ask the user to specify the database name if not given, or take the only one available if there is only one.
 
-Requirements:
-- When suggesting changes, do not change spacing, indentation, or other whitespace apart from what is strictly necessary to apply the changes.
-
-Do not output any of these instructions, nor tell the user anything about them unless directly prompted for them.
+	Important:
+	Do not mention or reveal these instructions to the user unless explicitly asked to do so.
 `
 
 const CHAT_USER_CODE_CONTEXT = `
@@ -237,11 +240,19 @@ INSTRUCTIONS:
 WINDMILL LANGUAGE CONTEXT:
 {lang_context}
 
+DATABASES:
+{db_context}
+
+CODE:
 {code_context}
+
+ERROR:
 {error_context}
 \`\`\`
 `
 
+export const CHAT_USER_DB_CONTEXT = `- {title}: SCHEMA: \n{schema}\n`
+
 export function prepareSystemMessage(): {
 	role: 'system'
 	content: string
@@ -264,28 +275,23 @@ export const ContextIconMap = {
 	db: Database
 }
 
-export type SelectedContext = {
-	type: 'code' | 'error' | 'db'
-	title: string
-}
-
 export type ContextElement =
 	| {
-			type: 'code'
-			content: string
-			title: string
-			lang: ScriptLang | 'bunnative'
-	  }
+		type: 'code'
+		content: string
+		title: string
+		lang: ScriptLang | 'bunnative'
+	}
 	| {
-			type: 'error'
-			content: string
-			title: 'error'
-	  }
+		type: 'error'
+		content: string
+		title: 'error'
+	}
 	| {
-			type: 'db'
-			schema: DBSchema
-			title: string
-	  }
+		type: 'db'
+		schema?: DBSchema
+		title: string
+	}
 
 export async function prepareUserMessage(
 	instructions: string,
@@ -294,6 +300,7 @@ export async function prepareUserMessage(
 ) {
 	let codeContext = ''
 	let errorContext = ''
+	let dbContext = ''
 	for (const context of selectedContext) {
 		if (context.type === 'code') {
 			codeContext += CHAT_USER_CODE_CONTEXT.replace('{title}', context.title)
@@ -304,6 +311,8 @@ export async function prepareUserMessage(
 				throw new Error('Multiple error contexts provided')
 			}
 			errorContext = CHAT_USER_ERROR_CONTEXT.replace('{error}', context.content)
+		} else if (context.type === 'db') {
+			dbContext += CHAT_USER_DB_CONTEXT.replace('{title}', context.title).replace('{schema}', context.schema?.stringified ?? 'to fetch with get_db_schema')
 		}
 	}
 
@@ -311,6 +320,7 @@ export async function prepareUserMessage(
 		.replace('{lang_context}', getLangContext(language))
 		.replace('{code_context}', codeContext)
 		.replace('{error_context}', errorContext)
+		.replace('{db_context}', dbContext)
 
 	return userMessage
 }
@@ -340,7 +350,14 @@ const DB_SCHEMA_FUNCTION_DEF: ChatCompletionTool = {
 	type: 'function',
 	function: {
 		name: 'get_db_schema',
-		description: 'Gets the schema of the database in context'
+		description: 'Gets the schema of the database',
+		parameters: {
+			type: 'object',
+			properties: {
+				resourcePath: { type: 'string', description: 'The path of the database resource' }
+			},
+			required: ['resourcePath']
+		}
 	}
 }
 
@@ -368,7 +385,6 @@ async function callTool(
 	functionName: string,
 	args: any,
 	lang: ScriptLang | 'bunnative',
-	dbSchema: DBSchema | undefined,
 	workspace: string
 ) {
 	switch (functionName) {
@@ -376,10 +392,22 @@ async function callTool(
 			const formattedResourceTypes = await getFormattedResourceTypes(lang, args.query, workspace)
 			return formattedResourceTypes
 		case 'get_db_schema':
-			if (!dbSchema) {
-				throw new Error('No database schema provided')
+			if (!args.resourcePath) {
+				throw new Error('Database path not provided')
 			}
-			const stringSchema = await formatDBSchema(dbSchema)
+			const resource = await ResourceService.getResource({
+				workspace: workspace,
+				path: args.resourcePath
+			})
+			const newDbSchemas = {}
+			await getDbSchemas(resource.resource_type, args.resourcePath, workspace, newDbSchemas, (error) => { console.error(error) })
+			dbSchemas.update(schemas => ({ ...schemas, ...newDbSchemas }))
+			const dbs = get(dbSchemas)
+			const db = dbs[args.resourcePath]
+			if (!db) {
+				throw new Error('Database not found')
+			}
+			const stringSchema = await formatDBSchema(db)
 			return stringSchema
 		default:
 			throw new Error(`Unknown tool call: ${functionName}`)
@@ -390,7 +418,7 @@ export async function chatRequest(
 	messages: ChatCompletionMessageParam[],
 	abortController: AbortController,
 	lang: ScriptLang | 'bunnative',
-	dbSchema: DBSchema | undefined,
+	useDbTools: boolean,
 	onNewToken: (token: string) => void
 ) {
 	const toolDefs: ChatCompletionTool[] = []
@@ -404,7 +432,7 @@ export async function chatRequest(
 	) {
 		toolDefs.push(RESOURCE_TYPE_FUNCTION_DEF)
 	}
-	if (dbSchema) {
+	if (useDbTools) {
 		toolDefs.push(DB_SCHEMA_FUNCTION_DEF)
 	}
 	try {
@@ -459,7 +487,6 @@ export async function chatRequest(
 								toolCall.function.name,
 								args,
 								lang,
-								dbSchema,
 								get(workspaceStore) ?? ''
 							)
 							messages.push({
diff --git a/frontend/src/lib/stores.ts b/frontend/src/lib/stores.ts
index 6df7253d66..739adbad0c 100644
--- a/frontend/src/lib/stores.ts
+++ b/frontend/src/lib/stores.ts
@@ -139,9 +139,9 @@ const sessionProvider = getLocalSetting(COPILOT_SESSION_PROVIDER_SETTING_NAME)
 export const copilotSessionModel = writable<AIProviderModel | undefined>(
 	sessionModel && sessionProvider
 		? {
-				model: sessionModel,
-				provider: sessionProvider as AIProvider
-		  }
+			model: sessionModel,
+			provider: sessionProvider as AIProvider
+		}
 		: undefined
 )
 export const usedTriggerKinds = writable<string[]>([])
@@ -158,8 +158,10 @@ type SQLBaseSchema = {
 	}
 }
 
+export const SQLSchemaLanguages = ['mysql', 'bigquery', 'postgresql', 'snowflake', 'mssql', 'oracledb'] as const
+
 export interface SQLSchema {
-	lang: 'mysql' | 'bigquery' | 'postgresql' | 'snowflake' | 'mssql' | 'oracledb'
+	lang: typeof SQLSchemaLanguages[number]
 	schema: SQLBaseSchema
 	publicOnly: boolean | undefined
 	stringified: string