diff --git a/webview-ui/src/components/chat/ChatRow.tsx b/webview-ui/src/components/chat/ChatRow.tsx
index d43db0c794..60786945df 100644
--- a/webview-ui/src/components/chat/ChatRow.tsx
+++ b/webview-ui/src/components/chat/ChatRow.tsx
@@ -156,11 +156,6 @@ export const ChatRowContent = ({
 		})
 	}, [message.ts, editedContent])
 
-	// Handle sending edited message (when Enter is pressed in ChatTextArea)
-	const handleSendEdit = useCallback(() => {
-		handleSaveEdit()
-	}, [handleSaveEdit])
-
 	// Handle image selection for editing
 	const handleSelectImages = useCallback(() => {
 		vscode.postMessage({ type: "selectImages" })
@@ -1059,21 +1054,15 @@ export const ChatRowContent = ({
 										placeholderText={t("chat:editMessage.placeholder")}
 										selectedImages={editImages}
 										setSelectedImages={setEditImages}
-										onSend={handleSendEdit}
+										onSend={handleSaveEdit}
 										onSelectImages={handleSelectImages}
 										shouldDisableImages={false}
 										mode={editMode}
 										setMode={setEditMode}
 										modeShortcutText=""
+										isEditMode={true}
+										onCancel={handleCancelEdit}
 									/>
-									<div className="flex justify-end gap-2">
-										<Button variant="secondary" size="sm" onClick={handleCancelEdit}>
-											{t("chat:cancel.title")}
-										</Button>
-										<Button variant="default" size="sm" onClick={handleSaveEdit}>
-											{t("chat:save.title")}
-										</Button>
-									</div>
 								</div>
 							) : (
 								<div className="flex justify-between">
diff --git a/webview-ui/src/components/chat/ChatTextArea.tsx b/webview-ui/src/components/chat/ChatTextArea.tsx
index b522b43ecc..b12e9b1961 100644
--- a/webview-ui/src/components/chat/ChatTextArea.tsx
+++ b/webview-ui/src/components/chat/ChatTextArea.tsx
@@ -46,6 +46,9 @@ interface ChatTextAreaProps {
 	mode: Mode
 	setMode: (value: Mode) => void
 	modeShortcutText: string
+	// Edit mode props
+	isEditMode?: boolean
+	onCancel?: () => void
 }
 
 const ChatTextArea = forwardRef<HTMLTextAreaElement, ChatTextAreaProps>(
@@ -65,6 +68,8 @@ const ChatTextArea = forwardRef<HTMLTextAreaElement, ChatTextAreaProps>(
 			mode,
 			setMode,
 			modeShortcutText,
+			isEditMode = false,
+			onCancel,
 		},
 		ref,
 	) => {
@@ -972,15 +977,27 @@ const ChatTextArea = forwardRef<HTMLTextAreaElement, ChatTextAreaProps>(
 								/>
 							</div>
 
-							<div className="absolute bottom-1 right-1 z-30">
-								<IconButton
-									iconClass="codicon-send"
-									title={t("chat:sendMessage")}
-									disabled={sendingDisabled}
-									onClick={onSend}
-									className="opacity-60 hover:opacity-100 text-vscode-descriptionForeground hover:text-vscode-foreground"
-								/>
-							</div>
+							{isEditMode ? (
+								<div className="absolute bottom-1 right-1 z-30">
+									<IconButton
+										iconClass="codicon-edit"
+										title={t("chat:save")}
+										disabled={sendingDisabled}
+										onClick={onSend}
+										className="opacity-60 hover:opacity-100 text-vscode-descriptionForeground hover:text-vscode-foreground"
+									/>
+								</div>
+							) : (
+								<div className="absolute bottom-1 right-1 z-30">
+									<IconButton
+										iconClass="codicon-send"
+										title={t("chat:sendMessage")}
+										disabled={sendingDisabled}
+										onClick={onSend}
+										className="opacity-60 hover:opacity-100 text-vscode-descriptionForeground hover:text-vscode-foreground"
+									/>
+								</div>
+							)}
 
 							{!inputValue && (
 								<div
@@ -1145,6 +1162,16 @@ const ChatTextArea = forwardRef<HTMLTextAreaElement, ChatTextAreaProps>(
 					</div>
 
 					<div className={cn("flex", "items-center", "gap-0.5", "shrink-0")}>
+						{isEditMode && (
+							<Button
+								variant="secondary"
+								size="sm"
+								onClick={onCancel}
+								disabled={sendingDisabled}
+								className="mr-2 text-xs">
+								Cancel
+							</Button>
+						)}
 						<IndexingStatusDot />
 						<IconButton
 							iconClass="codicon-device-camera"
diff --git a/webview-ui/src/components/chat/__tests__/ChatTextArea.spec.tsx b/webview-ui/src/components/chat/__tests__/ChatTextArea.spec.tsx
index 86e200f0a3..d4069c30fe 100644
--- a/webview-ui/src/components/chat/__tests__/ChatTextArea.spec.tsx
+++ b/webview-ui/src/components/chat/__tests__/ChatTextArea.spec.tsx
@@ -856,4 +856,210 @@ describe("ChatTextArea", () => {
 			expect(apiConfigDropdown).toHaveAttribute("disabled")
 		})
 	})
+	describe("edit mode functionality", () => {
+		it("should show edit button instead of send button when isEditMode is true", () => {
+			;(useExtensionState as ReturnType<typeof vi.fn>).mockReturnValue({
+				filePaths: [],
+				openedTabs: [],
+				taskHistory: [],
+				cwd: "/test/workspace",
+			})
+
+			render(<ChatTextArea {...defaultProps} isEditMode={true} />)
+
+			// Should show edit button (codicon-edit)
+			const editButton = screen.getByRole("button", {
+				name: (_, element) => {
+					return element.querySelector(".codicon-edit") !== null
+				},
+			})
+			expect(editButton).toBeInTheDocument()
+
+			// Should not show send button (codicon-send)
+			const sendButton = screen.queryByRole("button", {
+				name: (_, element) => {
+					return element.querySelector(".codicon-send") !== null
+				},
+			})
+			expect(sendButton).not.toBeInTheDocument()
+		})
+
+		it("should show send button when isEditMode is false", () => {
+			;(useExtensionState as ReturnType<typeof vi.fn>).mockReturnValue({
+				filePaths: [],
+				openedTabs: [],
+				taskHistory: [],
+				cwd: "/test/workspace",
+			})
+
+			render(<ChatTextArea {...defaultProps} isEditMode={false} />)
+
+			// Should show send button (codicon-send)
+			const sendButton = screen.getByRole("button", {
+				name: (_, element) => {
+					return element.querySelector(".codicon-send") !== null
+				},
+			})
+			expect(sendButton).toBeInTheDocument()
+
+			// Should not show edit button (codicon-edit)
+			const editButton = screen.queryByRole("button", {
+				name: (_, element) => {
+					return element.querySelector(".codicon-edit") !== null
+				},
+			})
+			expect(editButton).not.toBeInTheDocument()
+		})
+
+		it("should show cancel button in edit mode", () => {
+			;(useExtensionState as ReturnType<typeof vi.fn>).mockReturnValue({
+				filePaths: [],
+				openedTabs: [],
+				taskHistory: [],
+				cwd: "/test/workspace",
+			})
+
+			render(<ChatTextArea {...defaultProps} isEditMode={true} />)
+
+			// Should show cancel button with text "Cancel"
+			const cancelButton = screen.getByRole("button", { name: /cancel/i })
+			expect(cancelButton).toBeInTheDocument()
+			expect(cancelButton).toHaveTextContent("Cancel")
+		})
+
+		it("should not show cancel button when not in edit mode", () => {
+			;(useExtensionState as ReturnType<typeof vi.fn>).mockReturnValue({
+				filePaths: [],
+				openedTabs: [],
+				taskHistory: [],
+				cwd: "/test/workspace",
+			})
+
+			render(<ChatTextArea {...defaultProps} isEditMode={false} />)
+
+			// Should not show cancel button
+			const cancelButton = screen.queryByRole("button", { name: /cancel/i })
+			expect(cancelButton).not.toBeInTheDocument()
+		})
+
+		it("should call onSend when edit button is clicked", () => {
+			const onSend = vi.fn()
+			;(useExtensionState as ReturnType<typeof vi.fn>).mockReturnValue({
+				filePaths: [],
+				openedTabs: [],
+				taskHistory: [],
+				cwd: "/test/workspace",
+			})
+
+			render(<ChatTextArea {...defaultProps} isEditMode={true} onSend={onSend} />)
+
+			const editButton = screen.getByRole("button", {
+				name: (_, element) => {
+					return element.querySelector(".codicon-edit") !== null
+				},
+			})
+
+			fireEvent.click(editButton)
+			expect(onSend).toHaveBeenCalledTimes(1)
+		})
+
+		it("should call onCancel when cancel button is clicked", () => {
+			const onCancel = vi.fn()
+			;(useExtensionState as ReturnType<typeof vi.fn>).mockReturnValue({
+				filePaths: [],
+				openedTabs: [],
+				taskHistory: [],
+				cwd: "/test/workspace",
+			})
+
+			render(<ChatTextArea {...defaultProps} isEditMode={true} onCancel={onCancel} />)
+
+			const cancelButton = screen.getByRole("button", { name: /cancel/i })
+
+			fireEvent.click(cancelButton)
+			expect(onCancel).toHaveBeenCalledTimes(1)
+		})
+
+		it("should disable edit button when sendingDisabled is true", () => {
+			;(useExtensionState as ReturnType<typeof vi.fn>).mockReturnValue({
+				filePaths: [],
+				openedTabs: [],
+				taskHistory: [],
+				cwd: "/test/workspace",
+			})
+
+			render(<ChatTextArea {...defaultProps} isEditMode={true} sendingDisabled={true} />)
+
+			const editButton = screen.getByRole("button", {
+				name: (_, element) => {
+					return element.querySelector(".codicon-edit") !== null
+				},
+			})
+
+			expect(editButton).toBeDisabled()
+		})
+
+		it("should disable cancel button when sendingDisabled is true", () => {
+			;(useExtensionState as ReturnType<typeof vi.fn>).mockReturnValue({
+				filePaths: [],
+				openedTabs: [],
+				taskHistory: [],
+				cwd: "/test/workspace",
+			})
+
+			render(<ChatTextArea {...defaultProps} isEditMode={true} sendingDisabled={true} />)
+
+			const cancelButton = screen.getByRole("button", { name: /cancel/i })
+			expect(cancelButton).toBeDisabled()
+		})
+
+		it("should have correct tooltip for edit button", () => {
+			;(useExtensionState as ReturnType<typeof vi.fn>).mockReturnValue({
+				filePaths: [],
+				openedTabs: [],
+				taskHistory: [],
+				cwd: "/test/workspace",
+			})
+
+			render(<ChatTextArea {...defaultProps} isEditMode={true} />)
+
+			const editButton = screen.getByRole("button", {
+				name: (_, element) => {
+					return element.querySelector(".codicon-edit") !== null
+				},
+			})
+
+			// Check that the button has the correct aria-label (which is used for tooltip)
+			expect(editButton).toHaveAttribute("aria-label", expect.stringMatching(/save/i))
+		})
+
+		it("should position cancel button correctly relative to camera button", () => {
+			;(useExtensionState as ReturnType<typeof vi.fn>).mockReturnValue({
+				filePaths: [],
+				openedTabs: [],
+				taskHistory: [],
+				cwd: "/test/workspace",
+			})
+
+			const { container } = render(<ChatTextArea {...defaultProps} isEditMode={true} />)
+
+			const cancelButton = screen.getByRole("button", { name: /cancel/i })
+			const cameraButton = screen.getByRole("button", {
+				name: (_, element) => {
+					return element.querySelector(".codicon-device-camera") !== null
+				},
+			})
+
+			// Both buttons should be in the same container (bottom toolbar)
+			const bottomToolbar = container.querySelector(".flex.items-center.gap-0\\.5.shrink-0")
+			expect(bottomToolbar).toContainElement(cancelButton)
+			expect(bottomToolbar).toContainElement(cameraButton)
+
+			// Cancel button should come before camera button in DOM order
+			const buttons = bottomToolbar?.querySelectorAll("button")
+			const cancelIndex = Array.from(buttons || []).indexOf(cancelButton as HTMLButtonElement)
+			const cameraIndex = Array.from(buttons || []).indexOf(cameraButton as HTMLButtonElement)
+			expect(cancelIndex).toBeLessThan(cameraIndex)
+		})
+	})
 })