diff --git a/packages/core/src/amazonq/webview/ui/apps/cwChatConnector.ts b/packages/core/src/amazonq/webview/ui/apps/cwChatConnector.ts
index 821de1720b8..3b19598adeb 100644
--- a/packages/core/src/amazonq/webview/ui/apps/cwChatConnector.ts
+++ b/packages/core/src/amazonq/webview/ui/apps/cwChatConnector.ts
@@ -357,7 +357,6 @@ export class Connector extends BaseConnector {
         if (
             !this.onChatAnswerUpdated ||
             ![
-                'accept-code-diff',
                 'reject-code-diff',
                 'run-shell-command',
                 'reject-shell-command',
@@ -379,17 +378,6 @@ export class Connector extends BaseConnector {
             header: currentChatItem?.header ? { ...currentChatItem.header } : {},
         }
         switch (action.id) {
-            case 'accept-code-diff':
-                if (answer.header) {
-                    answer.header.status = {
-                        icon: 'ok' as MynahIconsType,
-                        text: 'Accepted',
-                        status: 'success',
-                    }
-                    answer.header.buttons = []
-                    answer.body = ' '
-                }
-                break
             case 'reject-code-diff':
                 if (answer.header) {
                     answer.header.status = {
diff --git a/packages/core/src/codewhispererChat/clients/chat/v0/chat.ts b/packages/core/src/codewhispererChat/clients/chat/v0/chat.ts
index f7a1b7d125b..aac87312c3f 100644
--- a/packages/core/src/codewhispererChat/clients/chat/v0/chat.ts
+++ b/packages/core/src/codewhispererChat/clients/chat/v0/chat.ts
@@ -24,22 +24,28 @@ export type ToolUseWithError = {
     error: Error | undefined
 }
 
+type OperationType = 'read' | 'write' | 'listDir'
+
+interface FileOperation {
+    type: OperationType
+    filePaths: DocumentReference[]
+}
+
 export class ChatSession {
     private sessionId: string
     /**
-     * _readFiles = list of files read from the project to gather context before generating response.
      * _showDiffOnFileWrite = Controls whether to show diff view (true) or file context view (false) to the user
      * _context = Additional context to be passed to the LLM for generating the response
      * _messageIdToUpdate = messageId of a chat message to be updated, used for reducing consecutive tool messages
+     * _messageOperations = Maps messageId to filePaths which helps to open the read files and to open the code diff accordingly.
      */
-    private _readFiles: DocumentReference[] = []
-    private _readFolders: DocumentReference[] = []
     private _toolUseWithError: ToolUseWithError | undefined
     private _showDiffOnFileWrite: boolean = false
     private _context: PromptMessage['context']
     private _pairProgrammingModeOn: boolean = true
     private _fsWriteBackups: Map<string, FsWriteBackup> = new Map()
     private _agenticLoopInProgress: boolean = false
+    private _messageOperations: Map<string, FileOperation> = new Map()
 
     /**
      * True if messages from local history have been sent to session.
@@ -144,30 +150,12 @@ export class ChatSession {
     public setSessionID(id: string) {
         this.sessionId = id
     }
-    public get readFiles(): DocumentReference[] {
-        return this._readFiles
-    }
-    public get readFolders(): DocumentReference[] {
-        return this._readFolders
-    }
     public get showDiffOnFileWrite(): boolean {
         return this._showDiffOnFileWrite
     }
     public setShowDiffOnFileWrite(value: boolean) {
         this._showDiffOnFileWrite = value
     }
-    public addToReadFiles(filePath: DocumentReference) {
-        this._readFiles.push(filePath)
-    }
-    public clearListOfReadFiles() {
-        this._readFiles = []
-    }
-    public setReadFolders(folder: DocumentReference) {
-        this._readFolders.push(folder)
-    }
-    public clearListOfReadFolders() {
-        this._readFolders = []
-    }
     async chatIam(chatRequest: SendMessageRequest): Promise<SendMessageCommandOutput> {
         const client = await createQDeveloperStreamingClient()
 
@@ -196,4 +184,41 @@ export class ChatSession {
 
         return response
     }
+
+    /**
+     * Adds a file operation for a specific message
+     * @param messageId The ID of the message
+     * @param type The type of operation ('read' or 'listDir' or 'write')
+     * @param filePaths Array of DocumentReference involved in the operation
+     */
+    public addMessageOperation(messageId: string, type: OperationType, filePaths: DocumentReference[]) {
+        this._messageOperations.set(messageId, { type, filePaths })
+    }
+
+    /**
+     * Gets the file operation details for a specific message
+     * @param messageId The ID of the message
+     * @returns The file operation details or undefined if not found
+     */
+    public getMessageOperation(messageId: string): FileOperation | undefined {
+        return this._messageOperations.get(messageId)
+    }
+
+    /**
+     * Gets all file paths along with line ranges associated with a message
+     * @param messageId The ID of the message
+     * @returns Array of DocumentReference or empty array if message ID not found
+     */
+    public getFilePathsByMessageId(messageId: string): DocumentReference[] {
+        return this._messageOperations.get(messageId)?.filePaths || []
+    }
+
+    /**
+     * Gets the operation type for a specific message
+     * @param messageId The ID of the message
+     * @returns The operation type or undefined if message ID not found
+     */
+    public getOperationTypeByMessageId(messageId: string): OperationType | undefined {
+        return this._messageOperations.get(messageId)?.type
+    }
 }
diff --git a/packages/core/src/codewhispererChat/controllers/chat/controller.ts b/packages/core/src/codewhispererChat/controllers/chat/controller.ts
index 1093da9b020..a9711c3ab02 100644
--- a/packages/core/src/codewhispererChat/controllers/chat/controller.ts
+++ b/packages/core/src/codewhispererChat/controllers/chat/controller.ts
@@ -854,7 +854,7 @@ export class ChatController {
     }
 
     private async closeDiffView(message: CustomFormActionMessage) {
-        // Close the diff view if User rejected or accepted the generated code changes.
+        // Close the diff view if User rejected the generated code changes or asked a different question.
         if (vscode.window.tabGroups.activeTabGroup.activeTab?.label.includes(amazonQTabSuffix)) {
             await vscode.commands.executeCommand('workbench.action.closeActiveEditor')
         }
@@ -919,9 +919,6 @@ export class ChatController {
                     )
                 }
                 break
-            case 'accept-code-diff':
-                await this.closeDiffView(message)
-                break
             case 'reject-code-diff':
                 await this.restoreBackup(message)
                 await this.closeDiffView(message)
@@ -1006,7 +1003,26 @@ export class ChatController {
     }
 
     private async processFileClickMessage(message: FileClick) {
+        /**
+         * This function is used for 3 useCases
+         * 1. Read files/folders for Agentic chat
+         * 2. Read files in workspace context: Project falcon
+         * 3. Open code diff for generated files in Agentic chat.
+         */
         const session = this.sessionStorage.getSession(message.tabID)
+
+        if (session.getMessageOperation(message.messageId)?.type === 'read') {
+            try {
+                await vscode.commands.executeCommand('vscode.open', vscode.Uri.file(message.filePath))
+            } catch {
+                void vscode.window.showInformationMessage(
+                    `Sorry, Amazon Q failed to open the file: ${path.basename(message.filePath)}`
+                )
+            }
+        } else if (session.getMessageOperation(message.messageId)?.type === 'listDir') {
+            void vscode.window.showInformationMessage(`Analyzed the directory: ${message.filePath}`)
+        }
+
         // Check if user clicked on filePath in the contextList or in the fileListTree and perform the functionality accordingly.
         if (session.showDiffOnFileWrite) {
             const toolUseId = message.messageId
@@ -1030,7 +1046,9 @@ export class ChatController {
                 )
             } catch (error) {
                 getLogger().error(`Unexpected error in diff view generation: ${error}`)
-                void vscode.window.showErrorMessage(`Failed to open diff view.`)
+                void vscode.window.showErrorMessage(
+                    `Sorry, Amazon Q failed to open the diff view for ${path.basename(message.filePath)}`
+                )
             }
         } else {
             const lineRanges = session.contexts.get(message.filePath)
@@ -1299,12 +1317,10 @@ export class ChatController {
             this.processException(e, message.tabID)
         }
     }
-    private sessionCleanUp(session: ChatSession) {
+    private initialCleanUp(session: ChatSession) {
         // Create a fresh token for this new conversation
         session.createNewTokenSource()
         session.setAgenticLoopInProgress(true)
-        session.clearListOfReadFiles()
-        session.clearListOfReadFolders()
         session.setShowDiffOnFileWrite(false)
         session.setMessageIdToUpdate(undefined)
         session.setMessageIdToUpdateListDirectory(undefined)
@@ -1316,7 +1332,7 @@ export class ChatController {
         if (session.agenticLoopInProgress) {
             session.disposeTokenSource()
         }
-        this.sessionCleanUp(session)
+        this.initialCleanUp(session)
         this.editorContextExtractor
             .extractContextForTrigger('ChatMessage')
             .then(async (context) => {
diff --git a/packages/core/src/codewhispererChat/controllers/chat/messenger/messenger.ts b/packages/core/src/codewhispererChat/controllers/chat/messenger/messenger.ts
index 2e02c2037fb..34e2ddc093c 100644
--- a/packages/core/src/codewhispererChat/controllers/chat/messenger/messenger.ts
+++ b/packages/core/src/codewhispererChat/controllers/chat/messenger/messenger.ts
@@ -56,7 +56,7 @@ import {
 } from '@aws/mynah-ui'
 import { Database } from '../../../../shared/db/chatDb/chatDb'
 import { TabType } from '../../../../amazonq/webview/ui/storages/tabsStorage'
-import { ToolType, ToolUtils } from '../../../tools/toolUtils'
+import { Tool, ToolType, ToolUtils } from '../../../tools/toolUtils'
 import { ChatStream } from '../../../tools/chatStream'
 import path from 'path'
 import { CommandValidation, ExecuteBashParams } from '../../../tools/executeBash'
@@ -193,6 +193,29 @@ export class Messenger {
         return codeBlocks.length
     }
 
+    public handleFileReadOrListOperation = (session: ChatSession, toolUse: ToolUse, tool: Tool) => {
+        const messageIdToUpdate =
+            tool.type === ToolType.FsRead ? session.messageIdToUpdate : session.messageIdToUpdateListDirectory
+        const messageId = messageIdToUpdate ?? toolUse?.toolUseId ?? ''
+        const operationType = tool.type === ToolType.FsRead ? 'read' : 'listDir'
+        const input = toolUse.input as unknown as FsReadParams | ListDirectoryParams
+        const existingPaths = session.getFilePathsByMessageId(messageId)
+
+        // Check if path already exists in the list
+        const isPathAlreadyProcessed = existingPaths.some((path) => path.relativeFilePath === input.path)
+
+        if (!isPathAlreadyProcessed) {
+            session.addMessageOperation(messageId, operationType, [
+                ...existingPaths,
+                {
+                    relativeFilePath: input.path,
+                    lineRanges: [{ first: -1, second: -1 }],
+                },
+            ])
+        }
+        return messageIdToUpdate
+    }
+
     public async sendAIResponse(
         response: MessengerResponseType,
         session: ChatSession,
@@ -335,32 +358,8 @@ export class Messenger {
                                     session.setShowDiffOnFileWrite(true)
                                     changeList = await tool.tool.getDiffChanges()
                                 }
-                                if (tool.type === ToolType.FsRead) {
-                                    messageIdToUpdate = session.messageIdToUpdate
-                                    const input = toolUse.input as unknown as FsReadParams
-                                    // Check if this file path is already in the readFiles list
-                                    const isFileAlreadyRead = session.readFiles.some(
-                                        (file) => file.relativeFilePath === input.path
-                                    )
-                                    if (!isFileAlreadyRead) {
-                                        session.addToReadFiles({
-                                            relativeFilePath: input?.path,
-                                            lineRanges: [{ first: -1, second: -1 }],
-                                        })
-                                    }
-                                } else if (tool.type === ToolType.ListDirectory) {
-                                    messageIdToUpdate = session.messageIdToUpdateListDirectory
-                                    const input = toolUse.input as unknown as ListDirectoryParams
-                                    // Check if this folder is already in the readFolders list
-                                    const isFolderAlreadyRead = session.readFolders.some(
-                                        (folder) => folder.relativeFilePath === input.path
-                                    )
-                                    if (!isFolderAlreadyRead) {
-                                        session.setReadFolders({
-                                            relativeFilePath: input?.path,
-                                            lineRanges: [{ first: -1, second: -1 }],
-                                        })
-                                    }
+                                if (isReadOrList) {
+                                    messageIdToUpdate = this.handleFileReadOrListOperation(session, toolUse, tool)
                                 }
                                 const validation = ToolUtils.requiresAcceptance(tool)
                                 const chatStream = new ChatStream(
@@ -381,14 +380,11 @@ export class Messenger {
                                     chatStream,
                                     chatStream.validation.requiresAcceptance
                                 )
-                                if (session.messageIdToUpdate === undefined && tool.type === ToolType.FsRead) {
+                                if (!session.messageIdToUpdate && tool.type === ToolType.FsRead) {
                                     // Store the first messageId in a chain of tool uses
                                     session.setMessageIdToUpdate(toolUse.toolUseId)
                                 }
-                                if (
-                                    session.messageIdToUpdateListDirectory === undefined &&
-                                    tool.type === ToolType.ListDirectory
-                                ) {
+                                if (!session.messageIdToUpdateListDirectory && tool.type === ToolType.ListDirectory) {
                                     session.setMessageIdToUpdateListDirectory(toolUse.toolUseId)
                                 }
                                 getLogger().debug(
@@ -706,10 +702,10 @@ export class Messenger {
         triggerID: string,
         messageIdToUpdate?: string
     ) {
-        const contextList = toolUse.name === ToolType.ListDirectory ? session.readFolders : session.readFiles
+        const messageID = messageIdToUpdate ?? toolUse?.toolUseId ?? ''
+        const contextList = messageIdToUpdate || toolUse?.toolUseId ? session.getFilePathsByMessageId(messageID) : []
         const isFileRead = toolUse.name === ToolType.FsRead
-        const items = isFileRead ? session.readFiles : session.readFolders
-        const itemCount = items.length
+        const itemCount = contextList.length
 
         const title =
             itemCount < 1
@@ -727,7 +723,7 @@ export class Messenger {
                     followUpsHeader: undefined,
                     relatedSuggestions: undefined,
                     triggerID,
-                    messageID: messageIdToUpdate ?? toolUse?.toolUseId ?? '',
+                    messageID,
                     userIntent: undefined,
                     codeBlockLanguage: undefined,
                     contextList,
diff --git a/packages/core/src/codewhispererChat/tools/chatStream.ts b/packages/core/src/codewhispererChat/tools/chatStream.ts
index 658c6bc2a46..bdd11e555e9 100644
--- a/packages/core/src/codewhispererChat/tools/chatStream.ts
+++ b/packages/core/src/codewhispererChat/tools/chatStream.ts
@@ -37,7 +37,7 @@ export class ChatStream extends Writable {
     ) {
         super()
         this.logger.debug(
-            `ChatStream created for tabID: ${tabID}, triggerID: ${triggerID}, readFiles: ${session.readFiles}, emitEvent to mynahUI: ${emitEvent}`
+            `ChatStream created for tabID: ${tabID}, triggerID: ${triggerID}, emitEvent to mynahUI: ${emitEvent}`
         )
         if (!emitEvent) {
             return