diff --git a/crates/assistant/src/prompts.rs b/crates/assistant/src/prompts.rs
index f6fb203e96..c66c929fd1 100644
--- a/crates/assistant/src/prompts.rs
+++ b/crates/assistant/src/prompts.rs
@@ -54,7 +54,7 @@ impl PromptBuilder {
         cx: &gpui::AppContext,
         handlebars: Arc<Mutex<Handlebars<'static>>>,
     ) {
-        let templates_dir = paths::prompt_templates_dir();
+        let templates_dir = paths::prompt_overrides_dir();
 
         cx.background_executor()
             .spawn(async move {
diff --git a/crates/paths/src/paths.rs b/crates/paths/src/paths.rs
index a98a170460..1ecf5aa46d 100644
--- a/crates/paths/src/paths.rs
+++ b/crates/paths/src/paths.rs
@@ -187,13 +187,13 @@ pub fn prompts_dir() -> &'static PathBuf {
 /// Returns the path to the prompt templates directory.
 ///
 /// This is where the prompt templates for core features can be overridden with templates.
-pub fn prompt_templates_dir() -> &'static PathBuf {
+pub fn prompt_overrides_dir() -> &'static PathBuf {
     static PROMPT_TEMPLATES_DIR: OnceLock<PathBuf> = OnceLock::new();
     PROMPT_TEMPLATES_DIR.get_or_init(|| {
         if cfg!(target_os = "macos") {
-            config_dir().join("prompts").join("templates")
+            config_dir().join("prompt_overrides")
         } else {
-            support_dir().join("prompts").join("templates")
+            support_dir().join("prompt_overrides")
         }
     })
 }
diff --git a/script/prompts b/script/prompts
new file mode 100755
index 0000000000..a898621462
--- /dev/null
+++ b/script/prompts
@@ -0,0 +1,57 @@
+#!/bin/bash
+
+# This script manages prompt overrides for the Zed editor.
+#
+# It provides functionality to:
+# 1. Link the current repository's prompt templates to Zed's configuration.
+# 2. Create and link a separate Git worktree for prompt management.
+# 3. Unlink previously linked prompt overrides.
+#
+# Usage:
+#   ./script_name.sh link             # Link current repo's prompts
+#   ./script_name.sh link --worktree  # Create and link a separate worktree
+#   ./script_name.sh unlink           # Remove existing prompt override link
+#
+# The script ensures proper Git branch and worktree setup when using the
+# --worktree option. It also provides informative output and error handling.
+
+if [ "$1" = "link" ]; then
+    # Remove existing link
+    rm -f ~/.config/zed/prompt_overrides
+    if [ "$2" = "--worktree" ]; then
+        # Check if 'prompts' branch exists, create if not
+        if ! git show-ref --quiet refs/heads/prompts; then
+            git branch prompts
+        fi
+        # Check if 'prompts' worktree exists
+        if git worktree list | grep -q "../zed_prompts"; then
+            echo "Worktree already exists at ../zed_prompts."
+        else
+            # Create worktree if it doesn't exist
+            git worktree add ../zed_prompts prompts || git worktree add ../zed_prompts -b prompts
+        fi
+        ln -sf "$(pwd)/../zed_prompts/assets/prompts" ~/.config/zed/prompt_overrides
+        echo "Linked $(realpath "$(pwd)/../zed_prompts/assets/prompts") to ~/.config/zed/prompt_overrides"
+        echo -e "\033[0;31mDon't forget you have it linked, or your prompts will go stale\033[0m"
+    else
+        ln -sf "$(pwd)/assets/prompts" ~/.config/zed/prompt_overrides
+        echo "Linked $(pwd)/assets/prompts to ~/.config/zed/prompt_overrides"
+    fi
+elif [ "$1" = "unlink" ]; then
+    # Remove symbolic link
+    rm ~/.config/zed/prompt_overrides
+    echo "Unlinked ~/.config/zed/prompt_overrides"
+else
+    echo "This script helps you manage prompt overrides for Zed."
+    echo "You can link this directory to have Zed use the contents of your current repo templates as your active prompts,"
+    echo "or store your modifications in a separate Git worktree."
+    echo
+    echo "Usage: $0 [link [--worktree]|unlink]"
+    echo
+    echo "Options:"
+    echo "  link               Create a symbolic link from ./assets/prompts to ~/.config/zed/prompt_overrides"
+    echo "  link --worktree    Create a 'prompts' Git worktree in ../prompts, then link ../prompts/assets/prompts"
+    echo "                     to ~/.config/zed/prompt_overrides"
+    echo "  unlink             Remove the symbolic link at ~/.config/zed/prompt_overrides"
+    exit 1
+fi