diff --git a/crates/assistant/src/prompt_library.rs b/crates/assistant/src/prompt_library.rs
index b42d828a10..7352e2a06e 100644
--- a/crates/assistant/src/prompt_library.rs
+++ b/crates/assistant/src/prompt_library.rs
@@ -6,7 +6,7 @@ use anyhow::{anyhow, Result};
 use assistant_slash_command::SlashCommandRegistry;
 use chrono::{DateTime, Utc};
 use collections::HashMap;
-use editor::{actions::Tab, Editor, EditorEvent};
+use editor::{actions::Tab, CurrentLineHighlight, Editor, EditorEvent};
 use futures::{
     future::{self, BoxFuture, Shared},
     FutureExt,
@@ -125,7 +125,7 @@ struct PromptPickerDelegate {
 }
 
 enum PromptPickerEvent {
-    Selected { prompt_id: PromptId },
+    Selected { prompt_id: Option<PromptId> },
     Confirmed { prompt_id: PromptId },
     Deleted { prompt_id: PromptId },
     ToggledDefault { prompt_id: PromptId },
@@ -164,11 +164,14 @@ impl PickerDelegate for PromptPickerDelegate {
 
     fn set_selected_index(&mut self, ix: usize, cx: &mut ViewContext<Picker<Self>>) {
         self.selected_index = ix;
-        if let Some(PromptPickerEntry::Prompt(prompt)) = self.entries.get(self.selected_index) {
-            cx.emit(PromptPickerEvent::Selected {
-                prompt_id: prompt.id,
-            });
-        }
+        let prompt_id = if let Some(PromptPickerEntry::Prompt(prompt)) =
+            self.entries.get(self.selected_index)
+        {
+            Some(prompt.id)
+        } else {
+            None
+        };
+        cx.emit(PromptPickerEvent::Selected { prompt_id });
     }
 
     fn placeholder_text(&self, _cx: &mut WindowContext) -> Arc<str> {
@@ -355,7 +358,11 @@ impl PromptLibrary {
     ) {
         match event {
             PromptPickerEvent::Selected { prompt_id } => {
-                self.load_prompt(*prompt_id, false, cx);
+                if let Some(prompt_id) = *prompt_id {
+                    self.load_prompt(prompt_id, false, cx);
+                } else {
+                    self.focus_picker(&Default::default(), cx);
+                }
             }
             PromptPickerEvent::Confirmed { prompt_id } => {
                 self.load_prompt(*prompt_id, true, cx);
@@ -499,6 +506,7 @@ impl PromptLibrary {
                             editor.set_show_gutter(false, cx);
                             editor.set_show_wrap_guides(false, cx);
                             editor.set_show_indent_guides(false, cx);
+                            editor.set_current_line_highlight(Some(CurrentLineHighlight::None));
                             editor.set_completion_provider(Box::new(
                                 SlashCommandCompletionProvider::new(commands, None, None),
                             ));
diff --git a/crates/editor/src/editor.rs b/crates/editor/src/editor.rs
index 51e0ae81e7..5ab3293735 100644
--- a/crates/editor/src/editor.rs
+++ b/crates/editor/src/editor.rs
@@ -53,8 +53,7 @@ use convert_case::{Case, Casing};
 use debounced_delay::DebouncedDelay;
 use display_map::*;
 pub use display_map::{DisplayPoint, FoldPlaceholder};
-use editor_settings::CurrentLineHighlight;
-pub use editor_settings::EditorSettings;
+pub use editor_settings::{CurrentLineHighlight, EditorSettings};
 use element::LineWithInvisibles;
 pub use element::{
     CursorLayout, EditorElement, HighlightedRange, HighlightedRangeLine, PointForPosition,
@@ -480,7 +479,7 @@ pub struct Editor {
     pending_rename: Option<RenameState>,
     searchable: bool,
     cursor_shape: CursorShape,
-    current_line_highlight: CurrentLineHighlight,
+    current_line_highlight: Option<CurrentLineHighlight>,
     collapse_matches: bool,
     autoindent_mode: Option<AutoindentMode>,
     workspace: Option<(WeakView<Workspace>, Option<WorkspaceId>)>,
@@ -1768,7 +1767,7 @@ impl Editor {
             pending_rename: Default::default(),
             searchable: true,
             cursor_shape: Default::default(),
-            current_line_highlight: EditorSettings::get_global(cx).current_line_highlight,
+            current_line_highlight: None,
             autoindent_mode: Some(AutoindentMode::EachLine),
             collapse_matches: false,
             workspace: None,
@@ -1992,7 +1991,9 @@ impl Editor {
             ongoing_scroll: self.scroll_manager.ongoing_scroll(),
             placeholder_text: self.placeholder_text.clone(),
             is_focused: self.focus_handle.is_focused(cx),
-            current_line_highlight: self.current_line_highlight,
+            current_line_highlight: self
+                .current_line_highlight
+                .unwrap_or_else(|| EditorSettings::get_global(cx).current_line_highlight),
             gutter_hovered: self.gutter_hovered,
         }
     }
@@ -2082,7 +2083,10 @@ impl Editor {
         cx.notify();
     }
 
-    pub fn set_current_line_highlight(&mut self, current_line_highlight: CurrentLineHighlight) {
+    pub fn set_current_line_highlight(
+        &mut self,
+        current_line_highlight: Option<CurrentLineHighlight>,
+    ) {
         self.current_line_highlight = current_line_highlight;
     }
 
@@ -10608,7 +10612,6 @@ impl Editor {
         let editor_settings = EditorSettings::get_global(cx);
         self.scroll_manager.vertical_scroll_margin = editor_settings.vertical_scroll_margin;
         self.show_breadcrumbs = editor_settings.toolbar.breadcrumbs;
-        self.current_line_highlight = editor_settings.current_line_highlight;
 
         if self.mode == EditorMode::Full {
             let inline_blame_enabled = ProjectSettings::get_global(cx).git.inline_blame_enabled();
diff --git a/crates/editor/src/hunk_diff.rs b/crates/editor/src/hunk_diff.rs
index a2fa4521c6..09b2c6482b 100644
--- a/crates/editor/src/hunk_diff.rs
+++ b/crates/editor/src/hunk_diff.rs
@@ -10,7 +10,7 @@ use language::Buffer;
 use multi_buffer::{
     Anchor, ExcerptRange, MultiBuffer, MultiBufferRow, MultiBufferSnapshot, ToPoint,
 };
-use settings::{Settings, SettingsStore};
+use settings::SettingsStore;
 use text::{BufferId, Point};
 use ui::{
     div, ActiveTheme, Context as _, IntoElement, ParentElement, Styled, ViewContext, VisualContext,
@@ -21,7 +21,7 @@ use crate::{
     editor_settings::CurrentLineHighlight,
     git::{diff_hunk_to_display, DisplayDiffHunk},
     hunk_status, hunks_for_selections, BlockDisposition, BlockId, BlockProperties, BlockStyle,
-    DiffRowHighlight, Editor, EditorSettings, EditorSnapshot, ExpandAllHunkDiffs, RangeToAnchorExt,
+    DiffRowHighlight, Editor, EditorSnapshot, ExpandAllHunkDiffs, RangeToAnchorExt,
     RevertSelectedHunks, ToDisplayPoint, ToggleHunkDiff,
 };
 
@@ -591,7 +591,7 @@ fn editor_with_deleted_text(
         let subscription_editor = parent_editor.clone();
         editor._subscriptions.extend([
             cx.on_blur(&editor.focus_handle, |editor, cx| {
-                editor.set_current_line_highlight(CurrentLineHighlight::None);
+                editor.set_current_line_highlight(Some(CurrentLineHighlight::None));
                 editor.change_selections(None, cx, |s| {
                     s.try_cancel();
                 });
@@ -602,14 +602,14 @@ fn editor_with_deleted_text(
                 {
                     parent_editor.read(cx).current_line_highlight
                 } else {
-                    EditorSettings::get_global(cx).current_line_highlight
+                    None
                 };
                 editor.set_current_line_highlight(restored_highlight);
                 cx.notify();
             }),
             cx.observe_global::<SettingsStore>(|editor, cx| {
                 if !editor.is_focused(cx) {
-                    editor.set_current_line_highlight(CurrentLineHighlight::None);
+                    editor.set_current_line_highlight(Some(CurrentLineHighlight::None));
                 }
             }),
         ]);