diff --git a/packages/core/src/amazonq/webview/ui/apps/cwChatConnector.ts b/packages/core/src/amazonq/webview/ui/apps/cwChatConnector.ts
index 4f23045109f..7ce9b2cc00d 100644
--- a/packages/core/src/amazonq/webview/ui/apps/cwChatConnector.ts
+++ b/packages/core/src/amazonq/webview/ui/apps/cwChatConnector.ts
@@ -394,7 +394,7 @@ export class Connector extends BaseConnector {
                 if (answer.header) {
                     answer.header.status = {
                         icon: 'cancel' as MynahIconsType,
-                        text: 'Rejected',
+                        text: 'Change discarded',
                         status: 'error',
                     }
                     answer.header.buttons = []
diff --git a/packages/core/src/codewhispererChat/controllers/chat/controller.ts b/packages/core/src/codewhispererChat/controllers/chat/controller.ts
index e0cd1c699e8..d1d4e3bc4ce 100644
--- a/packages/core/src/codewhispererChat/controllers/chat/controller.ts
+++ b/packages/core/src/codewhispererChat/controllers/chat/controller.ts
@@ -894,6 +894,8 @@ export class ChatController {
                 currentToolUse.name === ToolType.ListDirectory)
         ) {
             session.toolUseWithError.error = new Error('Tool use was rejected by the user.')
+            session.setToolUseWithError(undefined)
+            this.messenger.sendAsyncEventProgress(message.tabID!, false, undefined)
         } else {
             getLogger().error(
                 `toolUse name: ${currentToolUse!.name} of toolUseWithError in the stored session doesn't match when click shell command reject button.`
@@ -928,13 +930,24 @@ export class ChatController {
             case 'reject-shell-command':
             case 'reject-tool-use':
                 await this.rejectShellCommand(message)
-                await this.processToolUseMessage(message)
+                if (message.tabID) {
+                    await this.sendCommandRejectMessage(message.tabID)
+                }
+                if (message.triggerId) {
+                    ConversationTracker.getInstance().markTriggerCompleted(message.triggerId)
+                }
                 break
             default:
                 getLogger().warn(`Unhandled action: ${message.action.id}`)
         }
     }
 
+    private async sendCommandRejectMessage(tabID: string) {
+        const session = this.sessionStorage.getSession(tabID)
+        session.setAgenticLoopInProgress(false)
+        this.messenger.sendDirectiveMessage(tabID, '', 'Command Rejected')
+    }
+
     private async restoreBackup(message: CustomFormActionMessage) {
         const tabID = message.tabID
         const toolUseId = message.action.formItemValues?.toolUseId
@@ -1651,7 +1664,26 @@ export class ChatController {
 
             await this.messenger.sendAIResponse(response, session, tabID, triggerID, triggerPayload)
         } catch (e: any) {
-            this.telemetryHelper.recordMessageResponseError(triggerPayload, tabID, getHttpStatusCode(e) ?? 0)
+            let errorMessage: string
+            let requestID: string | undefined
+
+            if (e instanceof CodeWhispererStreamingServiceException) {
+                errorMessage = e.message
+                requestID = e.$metadata.requestId
+            } else {
+                errorMessage = 'Error is not CodeWhispererStreamingServiceException. '
+                if (e instanceof Error || e?.message) {
+                    errorMessage += `Error message is: ${e.message}`
+                }
+            }
+
+            this.telemetryHelper.recordMessageResponseError(
+                triggerPayload,
+                tabID,
+                getHttpStatusCode(e) ?? 0,
+                requestID,
+                errorMessage
+            )
             // clears session, record telemetry before this call
             this.processException(e, tabID)
         }
diff --git a/packages/core/src/codewhispererChat/controllers/chat/messenger/messenger.ts b/packages/core/src/codewhispererChat/controllers/chat/messenger/messenger.ts
index 91e1bc512f7..2296377922e 100644
--- a/packages/core/src/codewhispererChat/controllers/chat/messenger/messenger.ts
+++ b/packages/core/src/codewhispererChat/controllers/chat/messenger/messenger.ts
@@ -53,8 +53,6 @@ import {
     MynahIconsType,
     DetailedList,
     MynahUIDataModel,
-    MynahIcons,
-    Status,
 } from '@aws/mynah-ui'
 import { Database } from '../../../../shared/db/chatDb/chatDb'
 import { TabType } from '../../../../amazonq/webview/ui/storages/tabsStorage'
@@ -542,7 +540,13 @@ export class Messenger {
 
                 followUps = []
                 relatedSuggestions = []
-                this.telemetryHelper.recordMessageResponseError(triggerPayload, tabID, errorInfo.statusCode ?? 0)
+                this.telemetryHelper.recordMessageResponseError(
+                    triggerPayload,
+                    tabID,
+                    errorInfo.statusCode ?? 0,
+                    errorInfo.requestId,
+                    errorInfo.errorMessage
+                )
             })
             .finally(async () => {
                 if (session.sessionIdentifier && !this.isTriggerCancelled(triggerID)) {
@@ -810,25 +814,12 @@ export class Messenger {
                 {
                     id: 'reject-code-diff',
                     status: 'clear',
-                    icon: 'cancel' as MynahIconsType,
+                    icon: 'revert' as MynahIconsType,
+                    text: 'Undo',
                 },
             ]
-            const status: {
-                icon?: MynahIcons | MynahIconsType
-                status?: {
-                    status?: Status
-                    icon?: MynahIcons | MynahIconsType
-                    text?: string
-                }
-            } = {
-                status: {
-                    text: 'Accepted',
-                    status: 'success',
-                },
-            }
             header = {
                 buttons,
-                ...status,
                 fileList,
             }
         } else if (toolUse?.name === ToolType.ListDirectory || toolUse?.name === ToolType.FsRead) {
diff --git a/packages/core/src/codewhispererChat/controllers/chat/telemetryHelper.ts b/packages/core/src/codewhispererChat/controllers/chat/telemetryHelper.ts
index 52bb1674f4d..14f07c536e4 100644
--- a/packages/core/src/codewhispererChat/controllers/chat/telemetryHelper.ts
+++ b/packages/core/src/codewhispererChat/controllers/chat/telemetryHelper.ts
@@ -38,7 +38,7 @@ import { TriggerEvent, TriggerEventsStorage } from '../../storages/triggerEvents
 import globals from '../../../shared/extensionGlobals'
 import { getLogger } from '../../../shared/logger/logger'
 import { codeWhispererClient } from '../../../codewhisperer/client/codewhisperer'
-import { isAwsError } from '../../../shared/errors'
+import { getTelemetryReasonDesc, isAwsError } from '../../../shared/errors'
 import { ChatMessageInteractionType } from '../../../codewhisperer/client/codewhispereruserclient'
 import { supportedLanguagesList } from '../chat/chatRequest/converter'
 import { AuthUtil } from '../../../codewhisperer/util/authUtil'
@@ -603,7 +603,13 @@ export class CWCTelemetryHelper {
         this.messageStorage.delete(tabID)
     }
 
-    public recordMessageResponseError(triggerPayload: TriggerPayload, tabID: string, responseCode: number) {
+    public recordMessageResponseError(
+        triggerPayload: TriggerPayload,
+        tabID: string,
+        responseCode: number,
+        requestID?: string,
+        errorReason?: string
+    ) {
         const triggerEvent = this.triggerEventsStorage.getLastTriggerEventByTabID(tabID)
 
         telemetry.amazonq_messageResponseError.emit({
@@ -617,8 +623,10 @@ export class CWCTelemetryHelper {
             cwsprChatActiveEditorImportCount: triggerPayload.codeQuery?.fullyQualifiedNames?.used?.length,
             cwsprChatResponseCode: responseCode,
             cwsprChatRequestLength: triggerPayload.message?.length ?? 0,
-            cwsprChatConversationType: 'Chat',
+            cwsprChatConversationType: triggerPayload.origin ? 'AgenticChat' : 'Chat',
             credentialStartUrl: AuthUtil.instance.startUrl,
+            requestId: requestID,
+            reasonDesc: getTelemetryReasonDesc(errorReason),
         })
     }