diff --git a/src/lib/components/AIGlyphPopup.svelte b/src/lib/components/AIPromptPopup.svelte
similarity index 84%
rename from src/lib/components/AIGlyphPopup.svelte
rename to src/lib/components/AIPromptPopup.svelte
index fb68de86..ded983f1 100644
--- a/src/lib/components/AIGlyphPopup.svelte
+++ b/src/lib/components/AIPromptPopup.svelte
@@ -4,18 +4,31 @@
   import CloseIcon from '~icons/material-symbols/close-rounded';
 
   interface Props {
-    top: number;
     show: boolean;
-    suggestion: string;
+    input: string;
     onClose: () => void;
+    onHeightChange?: (height: number) => void;
     onTryFree: () => void;
   }
 
-  let { top, show, suggestion = $bindable(), onClose, onTryFree }: Props = $props();
+  let { show, input = $bindable(), onClose, onHeightChange, onTryFree }: Props = $props();
 
   let textarea = $state<HTMLTextAreaElement>();
   let container = $state<HTMLDivElement>();
 
+  $effect(() => {
+    if (!container || !onHeightChange) return;
+    const observer = new ResizeObserver((entries) => {
+      for (const entry of entries) {
+        if (entry.target instanceof HTMLElement) {
+          onHeightChange(entry.target.offsetHeight);
+        }
+      }
+    });
+    observer.observe(container);
+    return () => observer.disconnect();
+  });
+
   function resizeTextarea() {
     if (!textarea) return;
     const computed = globalThis.getComputedStyle(textarea);
@@ -34,7 +47,7 @@
   }
 
   $effect(() => {
-    if (suggestion !== undefined) {
+    if (input !== undefined) {
       resizeTextarea();
     }
   });
@@ -58,21 +71,20 @@
   <div
     bind:this={container}
     class={cn(
-      'button-container-for-animation absolute right-4 left-12 z-50 flex flex-col gap-2 rounded-xl border-2 border-border bg-background p-2 shadow-xl dark:border-border-dark dark:bg-secondary',
-      !suggestion.trim() && 'rainbow-border'
+      'button-container-for-animation relative z-50 mr-6 flex w-auto flex-col gap-2 rounded-xl border-2 border-border bg-background p-2 shadow-xl dark:border-border-dark dark:bg-secondary',
+      !input.trim() && 'rainbow-border'
     )}
-    style="top: {top}px;"
     role="dialog"
     aria-modal="true"
     tabindex="-1">
     <div class="relative flex min-h-2 items-start gap-1 px-1">
       <textarea
         bind:this={textarea}
-        bind:value={suggestion}
+        bind:value={input}
         onkeydown={(e) => {
           if (e.key === 'Enter' && !e.shiftKey) {
             e.preventDefault();
-            if (suggestion.trim()) {
+            if (input.trim()) {
               onTryFree();
             }
           }
@@ -88,9 +100,8 @@
 
     <div class="flex items-center justify-between">
       <span class="font-recursive text-xs font-normal text-foreground dark:text-foreground"
-        >Signup to Mermaid.ai to try AI</span>
+        >Sign Up at Mermaid.ai to try AI</span>
       <Button
-        disabled={!suggestion.trim()}
         class="font-recursive h-6 w-16 gap-1.5 rounded-sm bg-accent p-1 text-xs font-medium text-white no-underline hover:bg-accent/90 hover:text-white hover:no-underline active:bg-accent/80 dark:bg-accent dark:text-white! dark:hover:bg-accent/90 dark:active:bg-accent/80"
         onclick={onTryFree}>
         Try free
diff --git a/src/lib/components/DesktopEditor.svelte b/src/lib/components/DesktopEditor.svelte
index c47b5be1..9956d0fe 100644
--- a/src/lib/components/DesktopEditor.svelte
+++ b/src/lib/components/DesktopEditor.svelte
@@ -2,7 +2,7 @@
   import type { EditorProps } from '$/types';
   import { env } from '$/util/env';
   import { stateStore, urlsStore } from '$/util/state';
-  import { isMac } from '$/util/util';
+  import { AIPromptViewZoneManager } from '$lib/util/AIPromptViewZoneManager';
   import { initEditor } from '$lib/util/monacoExtra';
   import { errorDebug } from '$lib/util/util';
   import { mode } from 'mode-watcher';
@@ -10,11 +10,12 @@
   import monacoEditorWorker from 'monaco-editor/esm/vs/editor/editor.worker?worker';
   import monacoJsonWorker from 'monaco-editor/esm/vs/language/json/json.worker?worker';
   import { onMount } from 'svelte';
-  import AIGlyphPopup from './AIGlyphPopup.svelte';
+  import AIPromptPopup from './AIPromptPopup.svelte';
 
   const { onUpdate }: EditorProps = $props();
 
   let divElement: HTMLDivElement | undefined = $state();
+  let aiPromptPopupElement: HTMLDivElement | undefined = $state();
   let editor: monaco.editor.IStandaloneCodeEditor | undefined;
   let editorOptions = {
     minimap: {
@@ -25,13 +26,11 @@
   } satisfies monaco.editor.IStandaloneEditorConstructionOptions;
   let currentText = '';
   let showPopup = $state(false);
-  let popupPosition = $state({ top: 0 });
+  let popupPosition = $state({ top: 0, lineNumber: 0 });
   let decorationsCollection: monaco.editor.IEditorDecorationsCollection | undefined;
-  let hintCollection: monaco.editor.IEditorDecorationsCollection | undefined;
-  let suggestion = $state('');
+  let input = $state('');
   let lastMouseLine = 0;
-
-  const quickEditHintStyle = `--quick-edit-hint-text: '${isMac ? 'Quick edit (⌘⏎)' : 'Quick edit (Ctrl+⏎)'}'`;
+  const aiPromptManager = new AIPromptViewZoneManager();
 
   const jsonModel = monaco.editor.createModel(
     '',
@@ -44,14 +43,12 @@
     monaco.Uri.parse('internal://mermaid.mmd')
   );
 
-  const renderQuickEditHint = () => {
-    hintCollection?.clear();
+  const renderAIPromptGutterGlyphIcon = () => {
     decorationsCollection?.clear();
     if (!editor || showPopup) {
       return;
     }
     const model = editor.getModel();
-    const position = editor.getPosition();
     if (!model) {
       return;
     }
@@ -61,27 +58,34 @@
         {
           range: new monaco.Range(lastMouseLine, 1, lastMouseLine, 1),
           options: {
-            isWholeLine: true,
             glyphMarginClassName: 'suggestion-icon'
           }
         }
       ]);
     }
+  };
 
-    if (position) {
-      const { lineNumber } = position;
-      if (model.getLineContent(lineNumber).trim() === '') {
-        const column = model.getLineMaxColumn(lineNumber);
-        hintCollection?.set([
-          {
-            range: new monaco.Range(lineNumber, column, lineNumber, column),
-            options: {
-              afterContentClassName: 'quick-edit-hint'
-            }
-          }
-        ]);
-      }
+  const closePopup = () => {
+    showPopup = false;
+    input = '';
+    aiPromptManager.hide();
+    renderAIPromptGutterGlyphIcon();
+  };
+
+  const toggleAIPopup = (lineNumber: number) => {
+    if (!divElement || !aiPromptPopupElement) return;
+    popupPosition = {
+      top: 0,
+      lineNumber
+    };
+    showPopup = !showPopup;
+    if (showPopup) {
+      aiPromptManager.show(popupPosition.lineNumber, aiPromptPopupElement, 100);
+      editor?.setSelection(new monaco.Range(0, 0, 0, 0));
+    } else {
+      aiPromptManager.hide();
     }
+    renderAIPromptGutterGlyphIcon();
   };
 
   onMount(() => {
@@ -112,45 +116,19 @@
     initEditor(monaco);
     errorDebug();
     editor = monaco.editor.create(divElement, editorOptions);
+    aiPromptManager.setEditor(editor);
     decorationsCollection = editor.createDecorationsCollection([]);
-    hintCollection = editor.createDecorationsCollection([]);
 
     editor.onMouseDown((e) => {
-      if (
-        e.target.type === monaco.editor.MouseTargetType.GUTTER_GLYPH_MARGIN &&
-        e.target.position?.lineNumber
-      ) {
-        const mouseEvent = e.event;
-        if (!divElement) return;
-        const rect = divElement.getBoundingClientRect();
-        popupPosition = {
-          top: mouseEvent.posy - rect.top
-        };
-        e.event.browserEvent.stopPropagation();
-        showPopup = !showPopup;
-        renderQuickEditHint();
+      const isGutter = e.target.type === monaco.editor.MouseTargetType.GUTTER_GLYPH_MARGIN;
+      if (isGutter && e.target.position?.lineNumber === lastMouseLine && lastMouseLine > 0) {
+        e.event.preventDefault();
+        e.event.stopPropagation();
+        toggleAIPopup(e.target.position.lineNumber);
       }
     });
 
-    editor.addCommand(monaco.KeyMod.CtrlCmd | monaco.KeyCode.Enter, () => {
-      const position = editor?.getPosition();
-      if (position) {
-        popupPosition = {
-          top:
-            (editor?.getTopForLineNumber(position.lineNumber) ?? 0) - (editor?.getScrollTop() ?? 0)
-        };
-        showPopup = true;
-      }
-
-      renderQuickEditHint();
-    });
-
-    editor.onDidChangeCursorPosition(() => {
-      renderQuickEditHint();
-    });
-
     editor.onDidChangeModelContent(({ isFlush }) => {
-      renderQuickEditHint();
       const newText = editor?.getValue();
       if (!newText || currentText === newText || isFlush) {
         return;
@@ -168,7 +146,7 @@
 
       if (editor.getModel()?.id !== model.id) {
         editor.setModel(model);
-        renderQuickEditHint();
+        renderAIPromptGutterGlyphIcon();
       }
 
       // Clear decorations if not in 'code' mode, or if the model changes
@@ -182,7 +160,7 @@
         editor.setScrollTop(0);
         editor.setValue(newText);
         currentText = newText;
-        renderQuickEditHint();
+        renderAIPromptGutterGlyphIcon();
       }
 
       // Display/clear errors
@@ -195,12 +173,12 @@
       if (editor.getModel()?.id !== mermaidModel.id) return;
 
       lastMouseLine = e.target.position?.lineNumber ?? 0;
-      renderQuickEditHint();
+      renderAIPromptGutterGlyphIcon();
     });
 
     editor.onMouseLeave(() => {
       lastMouseLine = 0;
-      renderQuickEditHint();
+      renderAIPromptGutterGlyphIcon();
     });
 
     const unsubscribeMode = mode.subscribe((mode) => {
@@ -219,7 +197,7 @@
       resizeObserver.observe(divElement);
     }
 
-    renderQuickEditHint();
+    renderAIPromptGutterGlyphIcon();
 
     return () => {
       unsubscribeState();
@@ -227,41 +205,28 @@
       resizeObserver.disconnect();
       jsonModel.dispose();
       mermaidModel.dispose();
+      aiPromptManager.destroy();
       editor?.dispose();
     };
   });
 </script>
 
-<div class="relative h-full grow overflow-hidden" style={quickEditHintStyle}>
+<div class="relative h-full grow overflow-hidden">
   <div bind:this={divElement} id="editor" class="h-full w-full"></div>
-  <AIGlyphPopup
-    top={popupPosition.top}
-    show={showPopup}
-    bind:suggestion
-    onClose={() => {
-      showPopup = false;
-      suggestion = '';
-      renderQuickEditHint();
-    }}
-    onTryFree={() => {
-      window.open($urlsStore.mermaidChart({ medium: 'vibe_diagramming' }).save, '_blank');
-      showPopup = false;
-      suggestion = '';
-      renderQuickEditHint();
-    }} />
+  <div bind:this={aiPromptPopupElement}>
+    <AIPromptPopup
+      show={showPopup}
+      bind:input
+      onHeightChange={(height) => aiPromptManager.updateHeight(height)}
+      onClose={closePopup}
+      onTryFree={() => {
+        window.open($urlsStore.mermaidChart({ medium: 'vibe_diagramming' }).save, '_blank');
+        closePopup();
+      }} />
+  </div>
 </div>
 
 <style>
-  :global(.quick-edit-hint::after) {
-    content: var(--quick-edit-hint-text);
-    color: #a1a1aa;
-    font-size: small;
-    pointer-events: none;
-    user-select: none;
-    margin-left: 4px;
-    opacity: 0.6;
-  }
-
   :global(.suggestion-icon) {
     background-color: #e8eaf9;
     width: 20px !important;
diff --git a/src/lib/util/AIPromptViewZoneManager.ts b/src/lib/util/AIPromptViewZoneManager.ts
new file mode 100644
index 00000000..483363eb
--- /dev/null
+++ b/src/lib/util/AIPromptViewZoneManager.ts
@@ -0,0 +1,71 @@
+import type * as monaco from 'monaco-editor';
+
+export class AIPromptViewZoneManager {
+  private editor: monaco.editor.IStandaloneCodeEditor | null = null;
+  private viewZoneId: string | null = null;
+  private viewZoneNode: HTMLElement | null = null;
+  private viewZone: monaco.editor.IViewZone | null = null;
+  private topPopupSpace = 8;
+
+  public setEditor(editor: monaco.editor.IStandaloneCodeEditor): void {
+    this.editor = editor;
+  }
+
+  public show(lineNumber: number, node: HTMLElement, height: number): void {
+    if (!this.editor) return;
+
+    this.viewZoneNode = node;
+
+    this.editor.changeViewZones((changeAccessor) => {
+      if (this.viewZoneId) {
+        changeAccessor.removeZone(this.viewZoneId);
+      }
+
+      const domNode = document.createElement('div');
+      domNode.style.top = '0px';
+      domNode.style.paddingTop = '8px';
+      domNode.style.paddingBottom = '0px';
+      domNode.appendChild(this.viewZoneNode as Node);
+
+      this.viewZone = {
+        afterLineNumber: lineNumber,
+        heightInPx: height + this.topPopupSpace,
+        domNode: domNode
+      };
+
+      this.viewZoneId = changeAccessor.addZone(this.viewZone);
+    });
+  }
+
+  public updateHeight(height: number): void {
+    if (!this.editor || !this.viewZoneId || !this.viewZone) return;
+
+    this.viewZone.heightInPx = height + this.topPopupSpace;
+    this.editor.changeViewZones((changeAccessor) => {
+      if (this.viewZoneId) {
+        changeAccessor.layoutZone(this.viewZoneId);
+      }
+    });
+  }
+
+  public hide(): void {
+    if (!this.editor || !this.viewZoneId) return;
+
+    this.editor.changeViewZones((changeAccessor) => {
+      if (this.viewZoneId) {
+        changeAccessor.removeZone(this.viewZoneId);
+        this.viewZoneId = null;
+        this.viewZone = null;
+      }
+    });
+
+    if (this.viewZoneNode) {
+      this.viewZoneNode = null;
+    }
+  }
+
+  public destroy(): void {
+    this.hide();
+    this.editor = null;
+  }
+}