diff --git a/knip.json b/knip.json
index 7ca8cfad7b..8a548cfcd3 100644
--- a/knip.json
+++ b/knip.json
@@ -6,6 +6,7 @@
 		"src/extension/api.ts",
 		"src/activate/**",
 		"src/workers/countTokens.ts",
+		"src/workers/indexing-worker.ts",
 		"src/extension.ts",
 		"scripts/**"
 	],
diff --git a/src/extension.ts b/src/extension.ts
index afb356ba67..8349b71730 100644
--- a/src/extension.ts
+++ b/src/extension.ts
@@ -215,7 +215,7 @@ export async function activate(context: vscode.ExtensionContext) {
 export async function deactivate() {
 	outputChannel.appendLine(`${Package.name} extension deactivated`)
 	await McpServerManager.cleanup(extensionContext)
-	CodeIndexManager.disposeAll()
+	await CodeIndexManager.disposeAll()
 	TelemetryService.instance.shutdown()
 	TerminalRegistry.cleanup()
 }
diff --git a/src/services/code-index/__tests__/manager.spec.ts b/src/services/code-index/__tests__/manager.spec.ts
index 1f5b636387..32c1fb64ed 100644
--- a/src/services/code-index/__tests__/manager.spec.ts
+++ b/src/services/code-index/__tests__/manager.spec.ts
@@ -17,9 +17,9 @@ describe("CodeIndexManager - handleSettingsChange regression", () => {
 	let mockContext: any
 	let manager: CodeIndexManager
 
-	beforeEach(() => {
+	beforeEach(async () => {
 		// Clear all instances before each test
-		CodeIndexManager.disposeAll()
+		await CodeIndexManager.disposeAll()
 
 		mockContext = {
 			subscriptions: [],
@@ -44,8 +44,8 @@ describe("CodeIndexManager - handleSettingsChange regression", () => {
 		manager = CodeIndexManager.getInstance(mockContext)!
 	})
 
-	afterEach(() => {
-		CodeIndexManager.disposeAll()
+	afterEach(async () => {
+		await CodeIndexManager.disposeAll()
 	})
 
 	describe("handleSettingsChange", () => {
@@ -93,15 +93,14 @@ describe("CodeIndexManager - handleSettingsChange regression", () => {
 			;(manager as any)._configManager = mockConfigManager
 
 			// Simulate an initialized manager by setting the required properties
-			;(manager as any)._orchestrator = { stopWatcher: vitest.fn() }
-			;(manager as any)._searchService = {}
-			;(manager as any)._cacheManager = {}
+			;(manager as any)._worker = { terminate: vitest.fn() }
+			;(manager as any)._workerReady = true
 
 			// Verify manager is considered initialized
 			expect(manager.isInitialized).toBe(true)
 
 			// Mock the methods that would be called during restart
-			const recreateServicesSpy = vitest.spyOn(manager as any, "_recreateServices").mockImplementation(() => {})
+			const recreateWorkerSpy = vitest.spyOn(manager as any, "_recreateWorker").mockResolvedValue(undefined)
 			const startIndexingSpy = vitest.spyOn(manager, "startIndexing").mockResolvedValue()
 
 			// Mock the feature state
@@ -112,8 +111,7 @@ describe("CodeIndexManager - handleSettingsChange regression", () => {
 
 			// Verify that the restart sequence was called
 			expect(mockConfigManager.loadConfiguration).toHaveBeenCalled()
-			// stopWatcher is called inside _recreateServices, which we mocked
-			expect(recreateServicesSpy).toHaveBeenCalled()
+			expect(recreateWorkerSpy).toHaveBeenCalled()
 			expect(startIndexingSpy).toHaveBeenCalled()
 		})
 
diff --git a/src/services/code-index/manager.ts b/src/services/code-index/manager.ts
index 5ce803e069..469cd7f180 100644
--- a/src/services/code-index/manager.ts
+++ b/src/services/code-index/manager.ts
@@ -36,9 +36,9 @@ export class CodeIndexManager {
 		return CodeIndexManager.instances.get(workspacePath)!
 	}
 
-	public static disposeAll(): void {
+	public static async disposeAll(): Promise<void> {
 		for (const instance of CodeIndexManager.instances.values()) {
-			instance.dispose()
+			await instance.dispose()
 		}
 		CodeIndexManager.instances.clear()
 	}