diff --git a/pkgs/by-name/ze/zed-editor/Cargo.lock b/pkgs/by-name/ze/zed-editor/Cargo.lock
index 2732c56fab82..872e134c33f1 100644
--- a/pkgs/by-name/ze/zed-editor/Cargo.lock
+++ b/pkgs/by-name/ze/zed-editor/Cargo.lock
@@ -9,7 +9,7 @@ dependencies = [
  "anyhow",
  "auto_update",
  "editor",
- "extension",
+ "extension_host",
  "futures 0.3.30",
  "gpui",
  "language",
@@ -544,9 +544,9 @@ dependencies = [
 
 [[package]]
 name = "async-compression"
-version = "0.4.13"
+version = "0.4.17"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "7e614738943d3f68c628ae3dbce7c3daffb196665f82f8c8ea6b65de73c79429"
+checksum = "0cb8f1d480b0ea3783ab015936d2a55c87e219676f0c0b7dec61494043f21857"
 dependencies = [
  "deflate64",
  "flate2",
@@ -854,7 +854,7 @@ dependencies = [
  "chrono",
  "futures-util",
  "http-types",
- "hyper 0.14.30",
+ "hyper 0.14.31",
  "hyper-rustls 0.24.2",
  "serde",
  "serde_json",
@@ -1350,7 +1350,7 @@ dependencies = [
  "http-body 0.4.6",
  "http-body 1.0.1",
  "httparse",
- "hyper 0.14.30",
+ "hyper 0.14.31",
  "hyper-rustls 0.24.2",
  "once_cell",
  "pin-project-lite",
@@ -1441,7 +1441,7 @@ dependencies = [
  "headers",
  "http 0.2.12",
  "http-body 0.4.6",
- "hyper 0.14.30",
+ "hyper 0.14.31",
  "itoa",
  "matchit",
  "memchr",
@@ -2366,7 +2366,7 @@ dependencies = [
  "clickhouse-derive",
  "clickhouse-rs-cityhash-sys",
  "futures 0.3.30",
- "hyper 0.14.30",
+ "hyper 0.14.31",
  "hyper-tls",
  "lz4",
  "sealed",
@@ -2432,7 +2432,6 @@ dependencies = [
  "smol",
  "sysinfo",
  "telemetry_events",
- "tempfile",
  "text",
  "thiserror",
  "time",
@@ -2569,7 +2568,7 @@ dependencies = [
  "gpui",
  "hex",
  "http_client",
- "hyper 0.14.30",
+ "hyper 0.14.31",
  "indoc",
  "jsonwebtoken",
  "language",
@@ -3491,7 +3490,6 @@ dependencies = [
  "ctor",
  "editor",
  "env_logger 0.11.5",
- "futures 0.3.30",
  "gpui",
  "language",
  "log",
@@ -3718,6 +3716,7 @@ dependencies = [
  "tree-sitter-rust",
  "tree-sitter-typescript",
  "ui",
+ "unicode-script",
  "unicode-segmentation",
  "unindent",
  "url",
@@ -4092,6 +4091,51 @@ dependencies = [
 [[package]]
 name = "extension"
 version = "0.1.0"
+dependencies = [
+ "anyhow",
+ "async-compression",
+ "async-tar",
+ "collections",
+ "fs",
+ "futures 0.3.30",
+ "http_client",
+ "language",
+ "log",
+ "lsp",
+ "semantic_version",
+ "serde",
+ "serde_json",
+ "toml 0.8.19",
+ "wasm-encoder 0.215.0",
+ "wasmparser 0.215.0",
+ "wit-component",
+]
+
+[[package]]
+name = "extension_cli"
+version = "0.1.0"
+dependencies = [
+ "anyhow",
+ "clap",
+ "env_logger 0.11.5",
+ "extension",
+ "fs",
+ "language",
+ "log",
+ "reqwest_client",
+ "rpc",
+ "serde",
+ "serde_json",
+ "theme",
+ "tokio",
+ "toml 0.8.19",
+ "tree-sitter",
+ "wasmtime",
+]
+
+[[package]]
+name = "extension_host"
+version = "0.1.0"
 dependencies = [
  "anyhow",
  "assistant_slash_command",
@@ -4102,6 +4146,7 @@ dependencies = [
  "collections",
  "ctor",
  "env_logger 0.11.5",
+ "extension",
  "fs",
  "futures 0.3.30",
  "gpui",
@@ -4129,36 +4174,11 @@ dependencies = [
  "ui",
  "url",
  "util",
- "wasm-encoder 0.215.0",
- "wasmparser 0.215.0",
  "wasmtime",
  "wasmtime-wasi",
- "wit-component",
  "workspace",
 ]
 
-[[package]]
-name = "extension_cli"
-version = "0.1.0"
-dependencies = [
- "anyhow",
- "clap",
- "env_logger 0.11.5",
- "extension",
- "fs",
- "language",
- "log",
- "reqwest_client",
- "rpc",
- "serde",
- "serde_json",
- "theme",
- "tokio",
- "toml 0.8.19",
- "tree-sitter",
- "wasmtime",
-]
-
 [[package]]
 name = "extensions_ui"
 version = "0.1.0"
@@ -4168,7 +4188,7 @@ dependencies = [
  "collections",
  "db",
  "editor",
- "extension",
+ "extension_host",
  "fs",
  "fuzzy",
  "gpui",
@@ -4388,9 +4408,9 @@ checksum = "8ce81f49ae8a0482e4c55ea62ebbd7e5a686af544c00b9d090bba3ff9be97b3d"
 
 [[package]]
 name = "flume"
-version = "0.11.0"
+version = "0.11.1"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "55ac459de2512911e4b674ce33cf20befaba382d05b62b008afc1c8b57cbf181"
+checksum = "da0e4dd2a88388a1f4ccc7c9ce104604dab68d9f408dc34cd45823d5a9069095"
 dependencies = [
  "futures-core",
  "futures-sink",
@@ -5570,9 +5590,9 @@ checksum = "9a3a5bfb195931eeb336b2a7b4d761daec841b97f947d34394601737a7bba5e4"
 
 [[package]]
 name = "hyper"
-version = "0.14.30"
+version = "0.14.31"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "a152ddd61dfaec7273fe8419ab357f33aee0d914c5f4efbf0d96fa749eea5ec9"
+checksum = "8c08302e8fa335b151b788c775ff56e7a03ae64ff85c548ee820fecb70356e85"
 dependencies = [
  "bytes 1.7.2",
  "futures-channel",
@@ -5620,7 +5640,7 @@ checksum = "ec3efd23720e2049821a693cbc7e65ea87c72f1c58ff2f9522ff332b1491e590"
 dependencies = [
  "futures-util",
  "http 0.2.12",
- "hyper 0.14.30",
+ "hyper 0.14.31",
  "log",
  "rustls 0.21.12",
  "rustls-native-certs 0.6.3",
@@ -5653,7 +5673,7 @@ source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "d6183ddfa99b85da61a140bea0efc93fdf56ceaa041b37d553518030827f9905"
 dependencies = [
  "bytes 1.7.2",
- "hyper 0.14.30",
+ "hyper 0.14.31",
  "native-tls",
  "tokio",
  "tokio-native-tls",
@@ -5776,6 +5796,7 @@ dependencies = [
  "gpui",
  "project",
  "settings",
+ "theme",
  "ui",
  "workspace",
 ]
@@ -6157,12 +6178,11 @@ dependencies = [
 
 [[package]]
 name = "jupyter-serde"
-version = "0.2.0"
+version = "0.4.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "0a444fb3f87ee6885eb316028cc998c7d84811663ef95d78c419419423d5a054"
+checksum = "dd71aa17c4fa65e6d7536ab2728881a41f8feb2ee5841c2240516c3c3d65d8b3"
 dependencies = [
  "anyhow",
- "chrono",
  "serde",
  "serde_json",
  "thiserror",
@@ -6309,6 +6329,7 @@ dependencies = [
  "settings",
  "smol",
  "strum 0.25.0",
+ "telemetry_events",
  "text",
  "theme",
  "thiserror",
@@ -6346,6 +6367,7 @@ dependencies = [
  "env_logger 0.11.5",
  "futures 0.3.30",
  "gpui",
+ "itertools 0.13.0",
  "language",
  "lsp",
  "project",
@@ -6357,6 +6379,7 @@ dependencies = [
  "ui",
  "util",
  "workspace",
+ "zed_actions",
 ]
 
 [[package]]
@@ -6368,7 +6391,6 @@ dependencies = [
  "async-tar",
  "async-trait",
  "collections",
- "feature_flags",
  "futures 0.3.30",
  "gpui",
  "http_client",
@@ -6380,6 +6402,7 @@ dependencies = [
  "pet",
  "pet-conda",
  "pet-core",
+ "pet-fs",
  "pet-poetry",
  "pet-reporter",
  "project",
@@ -6445,9 +6468,9 @@ checksum = "03087c2bad5e1034e8cace5926dec053fb3790248370865f5117a7d0213354c8"
 
 [[package]]
 name = "libc"
-version = "0.2.159"
+version = "0.2.161"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "561d97a539a36e26a9a5fad1ea11a3039a67714694aaa379433e580854bc3dc5"
+checksum = "8e9489c2807c139ffd9c1794f4af0ebe86a828db53ecdc7fea2111d0fed085d1"
 
 [[package]]
 name = "libdbus-sys"
@@ -6553,18 +6576,18 @@ dependencies = [
 
 [[package]]
 name = "linkme"
-version = "0.3.28"
+version = "0.3.29"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "3c943daedff228392b791b33bba32e75737756e80a613e32e246c6ce9cbab20a"
+checksum = "70fe496a7af8c406f877635cbf3cd6a9fac9d6f443f58691cd8afe6ce0971af4"
 dependencies = [
  "linkme-impl",
 ]
 
 [[package]]
 name = "linkme-impl"
-version = "0.3.28"
+version = "0.3.29"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "cb26336e6dc7cc76e7927d2c9e7e3bb376d7af65a6f56a0b16c47d18a9b1abc5"
+checksum = "b01f197a15988fb5b2ec0a5a9800c97e70771499c456ad757d63b3c5e9b96e75"
 dependencies = [
  "proc-macro2",
  "quote",
@@ -7154,9 +7177,9 @@ dependencies = [
 
 [[package]]
 name = "nbformat"
-version = "0.3.1"
+version = "0.5.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "146074ad45cab20f5d98ccded164826158471f21d04f96e40b9872529e10979d"
+checksum = "c9ffb2ca556072f114bcaf2ca01dde7f1bc8a4946097dd804cb5a22d8af7d6df"
 dependencies = [
  "anyhow",
  "chrono",
@@ -7771,6 +7794,7 @@ dependencies = [
  "project",
  "rope",
  "serde_json",
+ "settings",
  "smol",
  "theme",
  "tree-sitter-rust",
@@ -7795,6 +7819,7 @@ dependencies = [
  "language",
  "log",
  "menu",
+ "outline",
  "pretty_assertions",
  "project",
  "schemars",
@@ -7929,9 +7954,9 @@ checksum = "57c0d7b74b563b49d38dae00a0c37d4d6de9b432382b2892f0574ddcae73fd0a"
 
 [[package]]
 name = "pathdiff"
-version = "0.2.1"
+version = "0.2.2"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "8835116a5c179084a830efb3adc117ab007512b535bc1a21c991d3b32a6b44dd"
+checksum = "d61c5ce1153ab5b689d0c074c4e7fc613e942dfb7dd9eea5ab202d2ad91fe361"
 
 [[package]]
 name = "pathfinder_geometry"
@@ -8806,27 +8831,27 @@ dependencies = [
 
 [[package]]
 name = "proc-macro2"
-version = "1.0.87"
+version = "1.0.89"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "b3e4daa0dcf6feba26f985457cdf104d4b4256fc5a09547140f3631bb076b19a"
+checksum = "f139b0662de085916d1fb67d2b4169d1addddda1919e696f3252b740b629986e"
 dependencies = [
  "unicode-ident",
 ]
 
 [[package]]
 name = "profiling"
-version = "1.0.15"
+version = "1.0.16"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "43d84d1d7a6ac92673717f9f6d1518374ef257669c24ebc5ac25d5033828be58"
+checksum = "afbdc74edc00b6f6a218ca6a5364d6226a259d4b8ea1af4a0ea063f27e179f4d"
 dependencies = [
  "profiling-procmacros",
 ]
 
 [[package]]
 name = "profiling-procmacros"
-version = "1.0.15"
+version = "1.0.16"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "8021cf59c8ec9c432cfc2526ac6b8aa508ecaf29cd415f271b8406c1b851c3fd"
+checksum = "a65f2e60fbf1063868558d69c6beacf412dc755f9fc020f514b7955fc914fe30"
 dependencies = [
  "quote",
  "syn 2.0.76",
@@ -9536,6 +9561,7 @@ dependencies = [
  "itertools 0.13.0",
  "log",
  "parking_lot",
+ "paths",
  "prost",
  "release_channel",
  "rpc",
@@ -9587,6 +9613,7 @@ dependencies = [
  "settings",
  "shellexpand 2.1.2",
  "smol",
+ "sysinfo",
  "telemetry_events",
  "toml 0.8.19",
  "util",
@@ -9662,7 +9689,7 @@ dependencies = [
  "h2 0.3.26",
  "http 0.2.12",
  "http-body 0.4.6",
- "hyper 0.14.30",
+ "hyper 0.14.31",
  "hyper-tls",
  "ipnet",
  "js-sys",
@@ -9967,9 +9994,9 @@ dependencies = [
 
 [[package]]
 name = "runtimelib"
-version = "0.16.0"
+version = "0.19.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "263588fe9593333c4bfde258c9021fc64e766ea434e070c6b67c7100536d6499"
+checksum = "fe23ba9967355bbb1be2fb9a8e51bd239ffdf9c791fad5a9b765122ee2bde2e4"
 dependencies = [
  "anyhow",
  "async-dispatcher",
@@ -12092,6 +12119,7 @@ dependencies = [
  "serde_json_lenient",
  "serde_repr",
  "settings",
+ "strum 0.25.0",
  "util",
  "uuid",
 ]
@@ -12122,7 +12150,6 @@ name = "theme_selector"
 version = "0.1.0"
 dependencies = [
  "client",
- "feature_flags",
  "fs",
  "fuzzy",
  "gpui",
@@ -13104,9 +13131,9 @@ checksum = "52ea75f83c0137a9b98608359a5f1af8144876eb67bcb1ce837368e906a9f524"
 
 [[package]]
 name = "unicode-script"
-version = "0.5.6"
+version = "0.5.7"
 source = "registry+https://github.com/rust-lang/crates.io-index"
-checksum = "ad8d71f5726e5f285a935e9fe8edfd53f0491eb6e9a5774097fdabee7cd8c9cd"
+checksum = "9fb421b350c9aff471779e262955939f565ec18b86c15364e6bdf0d662ca7c1f"
 
 [[package]]
 name = "unicode-segmentation"
@@ -13454,7 +13481,7 @@ dependencies = [
  "futures-util",
  "headers",
  "http 0.2.12",
- "hyper 0.14.30",
+ "hyper 0.14.31",
  "log",
  "mime",
  "mime_guess",
@@ -14750,6 +14777,7 @@ dependencies = [
  "settings",
  "smallvec",
  "sqlez",
+ "strum 0.25.0",
  "task",
  "tempfile",
  "theme",
@@ -15034,7 +15062,7 @@ dependencies = [
 
 [[package]]
 name = "zed"
-version = "0.160.7"
+version = "0.161.1"
 dependencies = [
  "activity_indicator",
  "anyhow",
@@ -15061,7 +15089,7 @@ dependencies = [
  "diagnostics",
  "editor",
  "env_logger 0.11.5",
- "extension",
+ "extension_host",
  "extensions_ui",
  "feature_flags",
  "feedback",
diff --git a/pkgs/by-name/ze/zed-editor/package.nix b/pkgs/by-name/ze/zed-editor/package.nix
index 72cffa55962e..283305ffda4e 100644
--- a/pkgs/by-name/ze/zed-editor/package.nix
+++ b/pkgs/by-name/ze/zed-editor/package.nix
@@ -90,13 +90,13 @@ let
 in
 rustPlatform.buildRustPackage rec {
   pname = "zed-editor";
-  version = "0.160.7";
+  version = "0.161.1";
 
   src = fetchFromGitHub {
     owner = "zed-industries";
     repo = "zed";
     rev = "refs/tags/v${version}";
-    hash = "sha256-mbBETOZVXTcfS+yGWPqEh+NEjo6UMTvk3XMghd8+s/s=";
+    hash = "sha256-54yEp+HPaGLeWsnX5qn3+SalV0A6oc40ramJJ+g07RU=";
   };
 
   patches =