diff --git a/src/@types/vscode.proposed.chatParticipantAdditions.d.ts b/src/@types/vscode.proposed.chatParticipantAdditions.d.ts
index 71520fa1ec..aa7001a3d2 100644
--- a/src/@types/vscode.proposed.chatParticipantAdditions.d.ts
+++ b/src/@types/vscode.proposed.chatParticipantAdditions.d.ts
@@ -105,6 +105,7 @@ declare module 'vscode' {
 		isComplete?: boolean;
 		toolSpecificData?: ChatTerminalToolInvocationData;
 		fromSubAgent?: boolean;
+		presentation?: 'hidden' | 'hiddenAfterComplete' | undefined;
 
 		constructor(toolName: string, toolCallId: string, isError?: boolean);
 	}
diff --git a/src/@types/vscode.proposed.chatSessionsProvider.d.ts b/src/@types/vscode.proposed.chatSessionsProvider.d.ts
index bd4e624430..772fc387b9 100644
--- a/src/@types/vscode.proposed.chatSessionsProvider.d.ts
+++ b/src/@types/vscode.proposed.chatSessionsProvider.d.ts
@@ -95,6 +95,11 @@ declare module 'vscode' {
 		 */
 		description?: string | MarkdownString;
 
+		/**
+		 * An optional badge that provides additional context about the chat session.
+		 */
+		badge?: string | MarkdownString;
+
 		/**
 		 * An optional status indicating the current state of the session.
 		 */
diff --git a/src/github/folderRepositoryManager.ts b/src/github/folderRepositoryManager.ts
index 9dd9002c84..2b0135f05e 100644
--- a/src/github/folderRepositoryManager.ts
+++ b/src/github/folderRepositoryManager.ts
@@ -2877,15 +2877,157 @@ const ownedByMe: AsyncPredicate<GitHubRepository> = async repo => {
 export const byRemoteName = (name: string): Predicate<GitHubRepository> => ({ remote: { remoteName } }) =>
 	remoteName === name;
 
+/**
+ * Unwraps lines that were wrapped for conventional commit message formatting (typically at 72 characters).
+ * Similar to GitHub's behavior when converting commit messages to PR descriptions.
+ * 
+ * Rules:
+ * - Preserves blank lines as paragraph breaks
+ * - Preserves fenced code blocks (```)
+ * - Preserves list items (-, *, +, numbered)
+ * - Preserves blockquotes (>)
+ * - Preserves indented code blocks (4+ spaces at start, when not in a list context)
+ * - Joins consecutive plain text lines that appear to be wrapped mid-sentence
+ */
+function unwrapCommitMessageBody(body: string): string {
+	if (!body) {
+		return body;
+	}
+
+	// Pattern to detect list item markers at the start of a line
+	const LIST_ITEM_PATTERN = /^[ \t]*([*+\-]|\d+\.)\s/;
+	// Pattern to detect blockquote markers
+	const BLOCKQUOTE_PATTERN = /^[ \t]*>/;
+	// Pattern to detect fenced code block markers
+	const FENCE_PATTERN = /^[ \t]*```/;
+
+	const lines = body.split('\n');
+	const result: string[] = [];
+	let i = 0;
+	let inFencedBlock = false;
+	let inListContext = false;
+
+	while (i < lines.length) {
+		const line = lines[i];
+
+		// Preserve blank lines
+		if (line.trim() === '') {
+			result.push(line);
+			i++;
+			inListContext = false; // Reset list context on blank line
+			continue;
+		}
+
+		// Check for fenced code block markers
+		if (FENCE_PATTERN.test(line)) {
+			inFencedBlock = !inFencedBlock;
+			result.push(line);
+			i++;
+			continue;
+		}
+
+		// Preserve everything inside fenced code blocks
+		if (inFencedBlock) {
+			result.push(line);
+			i++;
+			continue;
+		}
+
+		// Check if this line is a list item
+		const isListItem = LIST_ITEM_PATTERN.test(line);
+
+		// Check if this line is a blockquote
+		const isBlockquote = BLOCKQUOTE_PATTERN.test(line);
+
+		// Check if this line is indented (4+ spaces) but NOT a list continuation
+		// List continuations have leading spaces but we're in list context
+		const leadingSpaces = line.match(/^[ \t]*/)?.[0].length || 0;
+		const isIndentedCode = leadingSpaces >= 4 && !inListContext;
+
+		// Determine if this line should be preserved (not joined)
+		const shouldPreserveLine = isListItem || isBlockquote || isIndentedCode;
+
+		if (shouldPreserveLine) {
+			result.push(line);
+			i++;
+			// If this is a list item, we're now in list context
+			if (isListItem) {
+				inListContext = true;
+			}
+			continue;
+		}
+
+		// If we have leading spaces but we're in a list context, this is a list continuation
+		// We should preserve it to maintain list formatting
+		if (inListContext && leadingSpaces >= 2) {
+			result.push(line);
+			i++;
+			continue;
+		}
+
+		// Start accumulating lines that should be joined (plain text)
+		let joinedLine = line;
+		i++;
+
+		// Keep joining lines until we hit a blank line or a line that shouldn't be joined
+		while (i < lines.length) {
+			const nextLine = lines[i];
+
+			// Stop at blank lines
+			if (nextLine.trim() === '') {
+				break;
+			}
+
+			// Stop at fenced code blocks
+			if (FENCE_PATTERN.test(nextLine)) {
+				break;
+			}
+
+			// Stop at list items
+			if (LIST_ITEM_PATTERN.test(nextLine)) {
+				break;
+			}
+
+			// Stop at blockquotes
+			if (BLOCKQUOTE_PATTERN.test(nextLine)) {
+				break;
+			}
+
+			// Check if next line is indented code (4+ spaces, not in list context)
+			const nextLeadingSpaces = nextLine.match(/^[ \t]*/)?.[0].length || 0;
+			const nextIsIndentedCode = nextLeadingSpaces >= 4 && !inListContext;
+
+			if (nextIsIndentedCode) {
+				break;
+			}
+
+			// If in list context and next line is indented, it's a list continuation
+			if (inListContext && nextLeadingSpaces >= 2) {
+				break;
+			}
+
+			// Join this line with a space
+			joinedLine += ' ' + nextLine;
+			i++;
+		}
+
+		result.push(joinedLine);
+	}
+
+	return result.join('\n');
+}
+
 export const titleAndBodyFrom = async (promise: Promise<string | undefined>): Promise<{ title: string; body: string } | undefined> => {
 	const message = await promise;
 	if (!message) {
 		return;
 	}
 	const idxLineBreak = message.indexOf('\n');
+	const hasBody = idxLineBreak !== -1;
+	const rawBody = hasBody ? message.slice(idxLineBreak + 1).trim() : '';
 	return {
-		title: idxLineBreak === -1 ? message : message.substr(0, idxLineBreak),
+		title: hasBody ? message.slice(0, idxLineBreak) : message,
 
-		body: idxLineBreak === -1 ? '' : message.slice(idxLineBreak + 1).trim(),
+		body: unwrapCommitMessageBody(rawBody),
 	};
 };
diff --git a/src/test/github/folderRepositoryManager.test.ts b/src/test/github/folderRepositoryManager.test.ts
index ad1cbff0f6..574a69a32e 100644
--- a/src/test/github/folderRepositoryManager.test.ts
+++ b/src/test/github/folderRepositoryManager.test.ts
@@ -94,4 +94,132 @@ describe('titleAndBodyFrom', function () {
 		assert.strictEqual(result?.title, 'title');
 		assert.strictEqual(result?.body, '');
 	});
+
+	it('unwraps wrapped lines in body', async function () {
+		const message = Promise.resolve('title\n\nThis is a long line that has been wrapped at 72 characters\nto fit the conventional commit message format.');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, 'This is a long line that has been wrapped at 72 characters to fit the conventional commit message format.');
+	});
+
+	it('preserves blank lines as paragraph breaks', async function () {
+		const message = Promise.resolve('title\n\nFirst paragraph that is wrapped\nacross multiple lines.\n\nSecond paragraph that is also wrapped\nacross multiple lines.');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, 'First paragraph that is wrapped across multiple lines.\n\nSecond paragraph that is also wrapped across multiple lines.');
+	});
+
+	it('preserves list items', async function () {
+		const message = Promise.resolve('title\n\n- First item\n- Second item\n- Third item');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, '- First item\n- Second item\n- Third item');
+	});
+
+	it('preserves numbered list items', async function () {
+		const message = Promise.resolve('title\n\n1. First item\n2. Second item\n3. Third item');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, '1. First item\n2. Second item\n3. Third item');
+	});
+
+	it('preserves indented lines', async function () {
+		const message = Promise.resolve('title\n\nNormal paragraph.\n\n    Indented code block\n    More code');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, 'Normal paragraph.\n\n    Indented code block\n    More code');
+	});
+
+	it('unwraps but preserves asterisk list items', async function () {
+		const message = Promise.resolve('title\n\n* First item\n* Second item');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, '* First item\n* Second item');
+	});
+
+	it('handles mixed content with wrapped paragraphs and lists', async function () {
+		const message = Promise.resolve('title\n\nThis is a paragraph that has been wrapped\nat 72 characters.\n\n- Item 1\n- Item 2\n\nAnother wrapped paragraph\nthat continues here.');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, 'This is a paragraph that has been wrapped at 72 characters.\n\n- Item 1\n- Item 2\n\nAnother wrapped paragraph that continues here.');
+	});
+
+	it('preserves lines with special characters at the start', async function () {
+		const message = Promise.resolve('title\n\n> Quote line 1\n> Quote line 2');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, '> Quote line 1\n> Quote line 2');
+	});
+
+	it('handles wrapped lines with punctuation', async function () {
+		const message = Promise.resolve('title\n\nThis is a sentence.\nThis is another sentence on a new line.');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, 'This is a sentence. This is another sentence on a new line.');
+	});
+
+	it('preserves fenced code blocks', async function () {
+		const message = Promise.resolve('title\n\nSome text before.\n\n```\ncode line 1\ncode line 2\n```\n\nSome text after.');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, 'Some text before.\n\n```\ncode line 1\ncode line 2\n```\n\nSome text after.');
+	});
+
+	it('preserves fenced code blocks with language', async function () {
+		const message = Promise.resolve('title\n\nSome text.\n\n```javascript\nconst x = 1;\nconst y = 2;\n```\n\nMore text.');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, 'Some text.\n\n```javascript\nconst x = 1;\nconst y = 2;\n```\n\nMore text.');
+	});
+
+	it('preserves nested list items with proper indentation', async function () {
+		const message = Promise.resolve('title\n\n- Item 1\n  - Nested item 1.1\n  - Nested item 1.2\n- Item 2');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, '- Item 1\n  - Nested item 1.1\n  - Nested item 1.2\n- Item 2');
+	});
+
+	it('preserves list item continuations', async function () {
+		const message = Promise.resolve('title\n\n- This is a list item that is long\n  and continues on the next line\n- Second item');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, '- This is a list item that is long\n  and continues on the next line\n- Second item');
+	});
+
+	it('preserves indented code blocks but not list continuations', async function () {
+		const message = Promise.resolve('title\n\nRegular paragraph.\n\n    This is code\n    More code\n\nAnother paragraph.');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, 'Regular paragraph.\n\n    This is code\n    More code\n\nAnother paragraph.');
+	});
+
+	it('unwraps regular text but preserves list item continuations', async function () {
+		const message = Promise.resolve('title\n\nThis is wrapped text\nthat should be joined.\n\n- List item with\n  continuation\n- Another item');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, 'This is wrapped text that should be joined.\n\n- List item with\n  continuation\n- Another item');
+	});
+
+	it('handles complex nested lists with wrapped paragraphs', async function () {
+		const message = Promise.resolve('title\n\nWrapped paragraph\nacross lines.\n\n- Item 1\n  - Nested item\n    More nested content\n- Item 2\n\nAnother wrapped paragraph\nhere.');
+
+		const result = await titleAndBodyFrom(message);
+		assert.strictEqual(result?.title, 'title');
+		assert.strictEqual(result?.body, 'Wrapped paragraph across lines.\n\n- Item 1\n  - Nested item\n    More nested content\n- Item 2\n\nAnother wrapped paragraph here.');
+	});
 });