diff --git a/packages/core/src/worktree/__tests__/worktree-include.spec.ts b/packages/core/src/worktree/__tests__/worktree-include.spec.ts
index 88069b95da..743430b38f 100644
--- a/packages/core/src/worktree/__tests__/worktree-include.spec.ts
+++ b/packages/core/src/worktree/__tests__/worktree-include.spec.ts
@@ -302,5 +302,99 @@ describe("WorktreeIncludeService", () => {
 
 			expect(result).toContain("node_modules")
 		})
+
+		describe("useHardLinks", () => {
+			it("should hard-link single files when useHardLinks is true", async () => {
+				await fs.writeFile(path.join(sourceDir, ".worktreeinclude"), ".env.local")
+				await fs.writeFile(path.join(sourceDir, ".gitignore"), ".env.local")
+				await fs.writeFile(path.join(sourceDir, ".env.local"), "LOCAL_VAR=value")
+
+				const result = await service.copyWorktreeIncludeFiles(sourceDir, targetDir, undefined, true)
+
+				expect(result).toContain(".env.local")
+				const copiedContent = await fs.readFile(path.join(targetDir, ".env.local"), "utf-8")
+				expect(copiedContent).toBe("LOCAL_VAR=value")
+
+				// Verify it's a hard link (same inode)
+				const sourceStats = await fs.stat(path.join(sourceDir, ".env.local"))
+				const targetStats = await fs.stat(path.join(targetDir, ".env.local"))
+				expect(targetStats.ino).toBe(sourceStats.ino)
+			})
+
+			it("should hard-link directory contents recursively when useHardLinks is true", async () => {
+				await fs.writeFile(path.join(sourceDir, ".worktreeinclude"), "node_modules")
+				await fs.writeFile(path.join(sourceDir, ".gitignore"), "node_modules")
+				await fs.mkdir(path.join(sourceDir, "node_modules", "pkg"), { recursive: true })
+				await fs.writeFile(path.join(sourceDir, "node_modules", "pkg", "index.js"), "module.exports = {}")
+				await fs.writeFile(path.join(sourceDir, "node_modules", "test.txt"), "test")
+
+				const result = await service.copyWorktreeIncludeFiles(sourceDir, targetDir, undefined, true)
+
+				expect(result).toContain("node_modules")
+
+				// Verify file contents
+				const copiedContent = await fs.readFile(
+					path.join(targetDir, "node_modules", "pkg", "index.js"),
+					"utf-8",
+				)
+				expect(copiedContent).toBe("module.exports = {}")
+
+				// Verify hard links (same inode)
+				const sourceStats = await fs.stat(path.join(sourceDir, "node_modules", "test.txt"))
+				const targetStats = await fs.stat(path.join(targetDir, "node_modules", "test.txt"))
+				expect(targetStats.ino).toBe(sourceStats.ino)
+			})
+
+			it("should fall back to copy when hard link fails (e.g., cross-device)", async () => {
+				// Even if hard linking were to fail, the fallback ensures files are still copied
+				await fs.writeFile(path.join(sourceDir, ".worktreeinclude"), ".env.local")
+				await fs.writeFile(path.join(sourceDir, ".gitignore"), ".env.local")
+				await fs.writeFile(path.join(sourceDir, ".env.local"), "LOCAL_VAR=value")
+
+				// We can't easily simulate cross-device in a unit test, but we can verify
+				// that when useHardLinks is true, the file is still accessible in the target
+				const result = await service.copyWorktreeIncludeFiles(sourceDir, targetDir, undefined, true)
+
+				expect(result).toContain(".env.local")
+				const copiedContent = await fs.readFile(path.join(targetDir, ".env.local"), "utf-8")
+				expect(copiedContent).toBe("LOCAL_VAR=value")
+			})
+
+			it("should perform regular copies when useHardLinks is false", async () => {
+				await fs.writeFile(path.join(sourceDir, ".worktreeinclude"), ".env.local")
+				await fs.writeFile(path.join(sourceDir, ".gitignore"), ".env.local")
+				await fs.writeFile(path.join(sourceDir, ".env.local"), "LOCAL_VAR=value")
+
+				const result = await service.copyWorktreeIncludeFiles(sourceDir, targetDir, undefined, false)
+
+				expect(result).toContain(".env.local")
+				const copiedContent = await fs.readFile(path.join(targetDir, ".env.local"), "utf-8")
+				expect(copiedContent).toBe("LOCAL_VAR=value")
+
+				// Verify it's NOT a hard link (different inode for regular copy)
+				const sourceStats = await fs.stat(path.join(sourceDir, ".env.local"))
+				const targetStats = await fs.stat(path.join(targetDir, ".env.local"))
+				expect(targetStats.ino).not.toBe(sourceStats.ino)
+			})
+
+			it("should report progress when hard-linking directories", async () => {
+				await fs.writeFile(path.join(sourceDir, ".worktreeinclude"), "node_modules")
+				await fs.writeFile(path.join(sourceDir, ".gitignore"), "node_modules")
+				await fs.mkdir(path.join(sourceDir, "node_modules"), { recursive: true })
+				await fs.writeFile(path.join(sourceDir, "node_modules", "test.txt"), "test content")
+
+				const progressCalls: Array<{ bytesCopied: number; itemName: string }> = []
+				const onProgress = vi.fn((progress: { bytesCopied: number; itemName: string }) => {
+					progressCalls.push({ ...progress })
+				})
+
+				await service.copyWorktreeIncludeFiles(sourceDir, targetDir, onProgress, true)
+
+				expect(onProgress).toHaveBeenCalled()
+				expect(progressCalls.length).toBeGreaterThan(0)
+				const finalCall = progressCalls[progressCalls.length - 1]
+				expect(finalCall?.bytesCopied).toBeGreaterThan(0)
+			})
+		})
 	})
 })
diff --git a/packages/core/src/worktree/worktree-include.ts b/packages/core/src/worktree/worktree-include.ts
index 09156eb28c..d40c76f60d 100644
--- a/packages/core/src/worktree/worktree-include.ts
+++ b/packages/core/src/worktree/worktree-include.ts
@@ -112,12 +112,14 @@ export class WorktreeIncludeService {
 	 * @param sourceDir - The source directory containing the files to copy
 	 * @param targetDir - The target directory where files will be copied
 	 * @param onProgress - Optional callback to report copy progress (size-based)
+	 * @param useHardLinks - If true, use hard links instead of copies when possible (defaults to false)
 	 * @returns Array of copied file/directory paths
 	 */
 	async copyWorktreeIncludeFiles(
 		sourceDir: string,
 		targetDir: string,
 		onProgress?: CopyProgressCallback,
+		useHardLinks?: boolean,
 	): Promise<string[]> {
 		const worktreeIncludePath = path.join(sourceDir, ".worktreeinclude")
 		const gitignorePath = path.join(sourceDir, ".gitignore")
@@ -180,21 +182,37 @@ export class WorktreeIncludeService {
 				const stats = await fs.stat(sourcePath)
 
 				if (stats.isDirectory()) {
-					// Copy directory with progress tracking
-					bytesCopied = await this.copyDirectoryWithProgress(
-						sourcePath,
-						targetPath,
-						item,
-						bytesCopied,
-						onProgress,
-					)
+					if (useHardLinks) {
+						// Recursively hard-link directory contents
+						bytesCopied = await this.hardLinkDirectoryWithProgress(
+							sourcePath,
+							targetPath,
+							item,
+							bytesCopied,
+							onProgress,
+						)
+					} else {
+						// Copy directory with progress tracking
+						bytesCopied = await this.copyDirectoryWithProgress(
+							sourcePath,
+							targetPath,
+							item,
+							bytesCopied,
+							onProgress,
+						)
+					}
 				} else {
 					// Report progress before copying
 					onProgress?.({ bytesCopied, itemName: item })
 
 					// Ensure parent directory exists
 					await fs.mkdir(path.dirname(targetPath), { recursive: true })
-					await fs.copyFile(sourcePath, targetPath)
+
+					if (useHardLinks) {
+						await this.hardLinkWithFallback(sourcePath, targetPath)
+					} else {
+						await fs.copyFile(sourcePath, targetPath)
+					}
 
 					// Update bytes copied
 					bytesCopied += this.getSizeOnDisk(stats)
@@ -372,6 +390,90 @@ export class WorktreeIncludeService {
 		return bytesCopiedBefore + finalSize
 	}
 
+	/**
+	 * Create a hard link for a single file, falling back to copy if hard linking fails
+	 * (e.g., cross-device link, unsupported filesystem, or permissions issue).
+	 */
+	private async hardLinkWithFallback(source: string, target: string): Promise<void> {
+		try {
+			await fs.link(source, target)
+		} catch {
+			// Fallback to regular copy if hard link fails
+			await fs.copyFile(source, target)
+		}
+	}
+
+	/**
+	 * Recursively hard-link all files in a directory from source to target.
+	 * Creates the directory structure with fs.mkdir and hard-links each file.
+	 * Falls back to copyDirectoryWithProgress if the initial hard-link attempt fails.
+	 * Returns the updated bytesCopied count.
+	 */
+	private async hardLinkDirectoryWithProgress(
+		source: string,
+		target: string,
+		itemName: string,
+		bytesCopiedBefore: number,
+		onProgress?: CopyProgressCallback,
+	): Promise<number> {
+		try {
+			const bytesCopied = await this.hardLinkDirectoryRecursive(
+				source,
+				target,
+				itemName,
+				bytesCopiedBefore,
+				onProgress,
+			)
+			return bytesCopied
+		} catch {
+			// If recursive hard-linking fails entirely, fall back to native copy
+			return this.copyDirectoryWithProgress(source, target, itemName, bytesCopiedBefore, onProgress)
+		}
+	}
+
+	/**
+	 * Recursively walk a directory, creating directories and hard-linking files.
+	 * Reports progress as files are linked.
+	 */
+	private async hardLinkDirectoryRecursive(
+		source: string,
+		target: string,
+		itemName: string,
+		bytesCopiedBefore: number,
+		onProgress?: CopyProgressCallback,
+	): Promise<number> {
+		await fs.mkdir(target, { recursive: true })
+
+		const entries = await fs.readdir(source, { withFileTypes: true })
+		let bytesCopied = bytesCopiedBefore
+
+		for (const entry of entries) {
+			const sourcePath = path.join(source, entry.name)
+			const targetPath = path.join(target, entry.name)
+
+			if (entry.isDirectory()) {
+				bytesCopied = await this.hardLinkDirectoryRecursive(
+					sourcePath,
+					targetPath,
+					itemName,
+					bytesCopied,
+					onProgress,
+				)
+			} else if (entry.isFile()) {
+				await this.hardLinkWithFallback(sourcePath, targetPath)
+				const stats = await fs.stat(sourcePath)
+				bytesCopied += this.getSizeOnDisk(stats)
+
+				onProgress?.({
+					bytesCopied,
+					itemName,
+				})
+			}
+		}
+
+		return bytesCopied
+	}
+
 	/**
 	 * Parse a .gitignore-style file and return the patterns
 	 */
diff --git a/packages/types/src/vscode-extension-host.ts b/packages/types/src/vscode-extension-host.ts
index 253ce3e55d..cddaf6a8df 100644
--- a/packages/types/src/vscode-extension-host.ts
+++ b/packages/types/src/vscode-extension-host.ts
@@ -686,6 +686,7 @@ export interface WebviewMessage {
 	worktreeCreateNewBranch?: boolean
 	worktreeForce?: boolean
 	worktreeNewWindow?: boolean
+	worktreeUseHardLinks?: boolean
 	worktreeIncludeContent?: string
 }
 
diff --git a/src/core/webview/webviewMessageHandler.ts b/src/core/webview/webviewMessageHandler.ts
index 4ec715cf10..6c47fd32a4 100644
--- a/src/core/webview/webviewMessageHandler.ts
+++ b/src/core/webview/webviewMessageHandler.ts
@@ -3390,6 +3390,7 @@ export const webviewMessageHandler = async (
 							copyProgressItemName: progress.itemName,
 						})
 					},
+					message.worktreeUseHardLinks,
 				)
 
 				await provider.postMessageToWebview({ type: "worktreeResult", success, text })
diff --git a/src/core/webview/worktree/handlers.ts b/src/core/webview/worktree/handlers.ts
index 67c88b910e..aa6efc7b64 100644
--- a/src/core/webview/worktree/handlers.ts
+++ b/src/core/webview/worktree/handlers.ts
@@ -137,6 +137,7 @@ export async function handleCreateWorktree(
 		createNewBranch?: boolean
 	},
 	onCopyProgress?: CopyProgressCallback,
+	useHardLinks?: boolean,
 ): Promise<WorktreeResult> {
 	const cwd = provider.cwd
 
@@ -158,6 +159,7 @@ export async function handleCreateWorktree(
 				cwd,
 				result.worktree.path,
 				onCopyProgress,
+				useHardLinks,
 			)
 			if (copiedItems.length > 0) {
 				result.message += ` (copied ${copiedItems.length} item(s) from .worktreeinclude)`
diff --git a/webview-ui/src/components/worktrees/CreateWorktreeModal.tsx b/webview-ui/src/components/worktrees/CreateWorktreeModal.tsx
index 84743c1650..0e482d8b03 100644
--- a/webview-ui/src/components/worktrees/CreateWorktreeModal.tsx
+++ b/webview-ui/src/components/worktrees/CreateWorktreeModal.tsx
@@ -7,7 +7,7 @@ import { vscode } from "@/utils/vscode"
 import { useAppTranslation } from "@/i18n/TranslationContext"
 import { Dialog, DialogContent, DialogFooter, DialogHeader, DialogTitle, Button, Input } from "@/components/ui"
 import { SearchableSelect, type SearchableSelectOption } from "@/components/ui/searchable-select"
-import { CornerDownRight, Folder, FolderSearch, Info } from "lucide-react"
+import { CornerDownRight, Folder, FolderSearch, Info, Link } from "lucide-react"
 
 interface CreateWorktreeModalProps {
 	open: boolean
@@ -34,6 +34,9 @@ export const CreateWorktreeModal = ({
 	const [branches, setBranches] = useState<BranchInfo | null>(null)
 	const [includeStatus, setIncludeStatus] = useState<WorktreeIncludeStatus | null>(null)
 
+	// Hard links option
+	const [useHardLinks, setUseHardLinks] = useState(true)
+
 	// UI state
 	const [isCreating, setIsCreating] = useState(false)
 	const [error, setError] = useState<string | null>(null)
@@ -121,8 +124,9 @@ export const CreateWorktreeModal = ({
 			worktreeBranch: branchName,
 			worktreeBaseBranch: baseBranch,
 			worktreeCreateNewBranch: true,
+			worktreeUseHardLinks: useHardLinks,
 		})
-	}, [worktreePath, branchName, baseBranch])
+	}, [worktreePath, branchName, baseBranch, useHardLinks])
 
 	const isValid = branchName.trim() && worktreePath.trim() && baseBranch.trim()
 
@@ -215,6 +219,22 @@ export const CreateWorktreeModal = ({
 						/>
 					</div>
 
+					{/* Hard links option - only show when .worktreeinclude exists */}
+					{includeStatus?.exists && (
+						<div className="flex items-center gap-2 ml-2" title={t("worktrees:useHardLinksTooltip")}>
+							<Link className="size-4 shrink-0" />
+							<label className="flex items-center gap-2 text-sm text-vscode-foreground cursor-pointer">
+								<input
+									type="checkbox"
+									checked={useHardLinks}
+									onChange={(e) => setUseHardLinks(e.target.checked)}
+									className="accent-vscode-button-background"
+								/>
+								{t("worktrees:useHardLinks")}
+							</label>
+						</div>
+					)}
+
 					{/* Error message */}
 					{error && (
 						<div className="flex items-center gap-2 px-3 py-2 rounded-lg bg-vscode-inputValidation-errorBackground border border-vscode-inputValidation-errorBorder text-sm">
diff --git a/webview-ui/src/i18n/locales/en/worktrees.json b/webview-ui/src/i18n/locales/en/worktrees.json
index a9c901ede0..4fe10ae93d 100644
--- a/webview-ui/src/i18n/locales/en/worktrees.json
+++ b/webview-ui/src/i18n/locales/en/worktrees.json
@@ -43,6 +43,8 @@
 	"creating": "Creating...",
 	"copyingFiles": "Copying files...",
 	"copyingProgress": "{{item}} — {{copied}} copied",
+	"useHardLinks": "Use hard links for included files",
+	"useHardLinksTooltip": "Creates hard links instead of copies, saving disk space and speeding up worktree creation. Disable if source and target are on different filesystems.",
 	"cancel": "Cancel",
 
 	"deleteWorktree": "Delete Worktree",