diff --git a/crates/language_model_selector/src/language_model_selector.rs b/crates/language_model_selector/src/language_model_selector.rs
index 9b6ed96b20..10e8b57d68 100644
--- a/crates/language_model_selector/src/language_model_selector.rs
+++ b/crates/language_model_selector/src/language_model_selector.rs
@@ -197,6 +197,7 @@ impl PickerDelegate for LanguageModelPickerDelegate {
         cx: &mut Context<Picker<Self>>,
     ) -> Task<()> {
         let all_models = self.all_models.clone();
+        let current_index = self.selected_index;
 
         let llm_registry = LanguageModelRegistry::global(cx);
 
@@ -243,18 +244,27 @@ impl PickerDelegate for LanguageModelPickerDelegate {
 
             this.update_in(&mut cx, |this, window, cx| {
                 this.delegate.filtered_models = filtered_models;
-                this.delegate.set_selected_index(0, window, cx);
+                // Preserve selection focus
+                let new_index = if current_index >= this.delegate.filtered_models.len() {
+                    0
+                } else {
+                    current_index
+                };
+                this.delegate.set_selected_index(new_index, window, cx);
                 cx.notify();
             })
             .ok();
         })
     }
 
-    fn confirm(&mut self, _secondary: bool, _: &mut Window, cx: &mut Context<Picker<Self>>) {
+    fn confirm(&mut self, _secondary: bool, window: &mut Window, cx: &mut Context<Picker<Self>>) {
         if let Some(model_info) = self.filtered_models.get(self.selected_index) {
             let model = model_info.model.clone();
             (self.on_model_changed)(model.clone(), cx);
 
+            let current_index = self.selected_index;
+            self.set_selected_index(current_index, window, cx);
+
             cx.emit(DismissEvent);
         }
     }