@@ -42,7 +42,7 @@ import { environmentServerConfigsAtom } from "../state/server";
 import { resolveThreadRouteTarget } from "../threadRoutes";
 import { legacyProjectCwdPreferenceKey, useUiStateStore } from "../uiStateStore";
 import { getClientSettings } from "./useSettings";
-import { useLocalStorage } from "./useLocalStorage";
+import { getLocalStorageItem, useLocalStorage } from "./useLocalStorage";
 import * as Schema from "effect/Schema";
 import { useThreadRouteTarget } from "./useThreadRouteTarget";
 import { readUnloadedThreadCount } from "../state/olderSettledShelf";
@@ -52,6 +52,14 @@ import { resolveNewThreadModelSelection } from "@t3tools/shared/usageLimits";
 export const LAST_USED_PROJECT_STORAGE_KEY = "t3code:last-used-project:v1";
 export const lastUsedProjectKeySchema = Schema.NullOr(Schema.String);
 
+export function readLastUsedProjectKey(): string | null {
+  try {
+    return getLocalStorageItem(LAST_USED_PROJECT_STORAGE_KEY, lastUsedProjectKeySchema);
+  } catch {
+    return null;
+  }
+}
+
 interface NewThreadWorkspaceOptions {
   branch?: string | null;
   worktreePath?: string | null;
@@ -431,7 +439,7 @@ export function createNewThreadHandler(router: AnyRouter) {
 export function resolveDefaultProjectRef(
   projects: ReadonlyArray<EnvironmentProject>,
   projectOrder: readonly string[],
-  lastUsedProjectKey: string | null = null,
+  lastUsedProjectKey: string | null,
 ): ScopedProjectRef | null {
   const lastUsed = projects.find(
     (project) =>
 
@@ -4,6 +4,7 @@ import { describe, expect, it, vi } from "vite-plus/test";
 
 import * as commandPalette from "../commandPaletteBus";
 import * as settings from "../hooks/useSettings";
+import * as storage from "../hooks/useLocalStorage";
 import * as threadActions from "../lib/chatThreadActions";
 import * as entities from "../state/entities";
 import type { Project } from "../types";
@@ -38,6 +39,7 @@ describe("new thread commands", () => {
     using _projects = vi
       .spyOn(entities, "readProjects")
       .mockReturnValue([project("active"), project("idle")].slice(0, scenario.count));
+    using storedProject = vi.spyOn(storage, "getLocalStorageItem").mockReturnValue("local:active");
     using openPicker = vi.spyOn(commandPalette, "openCommandPalette").mockImplementation(() => {});
     using startLocal = vi.spyOn(threadActions, "startNewThreadFromContext").mockResolvedValue(true);
     using register = vi.spyOn(dispatcher, "registerCommands").mockReturnValue(() => {});
@@ -50,6 +52,7 @@ describe("new thread commands", () => {
       stopPropagation: vi.fn(),
     } as unknown as KeyboardEvent;
 
+    storedProject.mockReturnValue("local:idle");
     commands[scenario.command]!(event);
 
     if (scenario.picker) {
@@ -58,6 +61,10 @@ describe("new thread commands", () => {
     } else {
       expect(openPicker).not.toHaveBeenCalled();
       expect(startLocal).toHaveBeenCalledOnce();
+      expect(startLocal.mock.calls[0]![0].defaultProjectRef).toEqual({
+        environmentId: "local",
+        projectId: scenario.count === 1 ? "active" : "idle",
+      });
     }
   });
 });
@@ -8,7 +8,11 @@ import { useComposerDraftStore } from "../composerDraftStore";
 import { dispatchPreviewAction, type PreviewAction } from "../components/preview/previewActionBus";
 import { isAppModalPage } from "../components/sidebar/mainAppLocation";
 import { shouldCreateNewThreadInCurrentProject } from "../components/Sidebar.logic";
-import { createNewThreadHandler, resolveDefaultProjectRef } from "../hooks/useHandleNewThread";
+import {
+  createNewThreadHandler,
+  readLastUsedProjectKey,
+  resolveDefaultProjectRef,
+} from "../hooks/useHandleNewThread";
 import { createScratchProjectActions } from "../hooks/useScratchProject";
 import { getClientSettings } from "../hooks/useSettings";
 import { startNewThreadFromContext } from "../lib/chatThreadActions";
@@ -73,6 +77,7 @@ export function installChatRouteCommands(router: AnyRouter): () => void {
       defaultProjectRef: resolveDefaultProjectRef(
         readProjects(),
         useUiStateStore.getState().projectOrder,
+        readLastUsedProjectKey(),
       ),
       handleNewThread,
     };