@@ -14,7 +14,7 @@ export const handle_hash_sign_quick_pick = async (
   const replacement = await hash_sign_quick_pick({
     extension_context: provider.extension_context,
     on_insert,
-    exclude: ['commit']
+    exclude: ['commit', 'changes', 'saved-context']
   })
 
   if (replacement) {
 
@@ -82,11 +82,7 @@ export const create_handle_key_down = (
           value.substring(0, current_raw_pos - 1) +
           value.substring(current_raw_pos)
 
-        state.set_undo_stack((prev) => [
-          ...prev,
-          { value, raw_caret_pos: current_raw_pos }
-        ])
-        state.set_redo_stack([])
+        utils.save_history(value, current_raw_pos)
         refs.props_ref.current.on_change(new_value)
         refs.has_modified_current_entry_ref.current = new_value !== ''
         set_caret_position_after_change({
@@ -226,50 +222,12 @@ export const create_handle_key_down = (
 
   const handle_undo_key = (e: React.KeyboardEvent<HTMLDivElement>) => {
     e.preventDefault()
-    if (state.undo_stack.length > 0) {
-      const prev_entry = state.undo_stack[state.undo_stack.length - 1]
-      state.set_undo_stack((prev) => prev.slice(0, -1))
-      state.set_redo_stack((prev) => [
-        ...prev,
-        {
-          value: props.value,
-          raw_caret_pos: refs.raw_caret_pos_ref.current
-        }
-      ])
-      props.on_change(prev_entry.value)
-      set_caret_position_after_change({
-        input_ref: params.input_ref,
-        new_raw_cursor_pos: prev_entry.raw_caret_pos,
-        new_value: prev_entry.value,
-        selected_files: props.selected_files ?? []
-      })
-      state.set_history_index(-1)
-      refs.has_modified_current_entry_ref.current = true
-    }
+    utils.undo()
   }
 
   const handle_redo_key = (e: React.KeyboardEvent<HTMLDivElement>) => {
     e.preventDefault()
-    if (state.redo_stack.length > 0) {
-      const next_entry = state.redo_stack[state.redo_stack.length - 1]
-      state.set_redo_stack((prev) => prev.slice(0, -1))
-      state.set_undo_stack((prev) => [
-        ...prev,
-        {
-          value: props.value,
-          raw_caret_pos: refs.raw_caret_pos_ref.current
-        }
-      ])
-      props.on_change(next_entry.value)
-      set_caret_position_after_change({
-        input_ref: params.input_ref,
-        new_raw_cursor_pos: next_entry.raw_caret_pos,
-        new_value: next_entry.value,
-        selected_files: props.selected_files ?? []
-      })
-      state.set_history_index(-1)
-      refs.has_modified_current_entry_ref.current = true
-    }
+    utils.redo()
   }
 
   const handle_tab_key = (e: React.KeyboardEvent<HTMLDivElement>) => {
 
@@ -1,11 +1,6 @@
 import { RefObject, MutableRefObject, Dispatch, SetStateAction } from 'react'
 import type { PromptField } from '../../PromptField'
 
-export type HistoryEntry = {
-  value: string
-  raw_caret_pos: number
-}
-
 export type HandlerContext = {
   props: PromptField.Props
   params: {
@@ -27,15 +22,14 @@ export type HandlerContext = {
     history_index: number
     set_history_index: Dispatch<SetStateAction<number>>
     is_history_enabled: boolean
-    undo_stack: HistoryEntry[]
-    set_undo_stack: Dispatch<SetStateAction<HistoryEntry[]>>
-    redo_stack: HistoryEntry[]
-    set_redo_stack: Dispatch<SetStateAction<HistoryEntry[]>>
   }
   utils: {
     update_value: (new_value: string, caret_pos?: number) => void
     handle_symbol_deletion_by_click: (element: HTMLElement) => void
     handle_backspace_key: (e: React.KeyboardEvent<HTMLDivElement>) => void
     perform_paste: (text: string) => void
+    save_history: (custom_value?: string, custom_caret_pos?: number) => void
+    undo: () => void
+    redo: () => void
   }
 }
@@ -7,7 +7,8 @@ import {
   map_raw_pos_to_display_pos,
   use_symbol_deletion
 } from '../../../shared/symbols'
-import { HandlerContext, HistoryEntry } from './types'
+import { use_undo_redo } from '../../../shared/hooks/use-undo-redo'
+import { HandlerContext } from './types'
 import { set_caret_position_after_change } from './utils'
 import { create_handle_copy } from './handle-copy'
 import { create_handle_cut } from './handle-cut'
@@ -31,8 +32,6 @@ export const use_handlers = (
 
   const [history_index, set_history_index] = useState(-1)
   const [is_history_enabled, set_is_history_enabled] = useState(!props.value)
-  const [undo_stack, set_undo_stack] = useState<HistoryEntry[]>([])
-  const [redo_stack, set_redo_stack] = useState<HistoryEntry[]>([])
   const raw_caret_pos_ref = useRef(0)
   const has_modified_current_entry_ref = useRef(false)
   const is_shift_pressed_ref = useRef(false)
@@ -206,13 +205,25 @@ export const use_handlers = (
     }
   }, [props.focus_and_select_key])
 
+  const { save_history, undo, redo } = use_undo_redo({
+    value: props.value,
+    raw_caret_pos_ref,
+    on_change: props.on_change,
+    on_restore: (entry) => {
+      set_caret_position_after_change({
+        input_ref: params.input_ref,
+        new_raw_cursor_pos: entry.raw_caret_pos,
+        new_value: entry.value,
+        selected_files: props.selected_files ?? []
+      })
+      set_history_index(-1)
+      has_modified_current_entry_ref.current = true
+    }
+  })
+
   const update_value = (new_value: string, caret_pos?: number) => {
     if (new_value === props.value) return
-    set_undo_stack((prev) => [
-      ...prev,
-      { value: props.value, raw_caret_pos: raw_caret_pos_ref.current }
-    ])
-    set_redo_stack([])
+    save_history()
     props.on_change(new_value)
     if (caret_pos !== undefined) {
       set_caret_position_after_change({
@@ -250,17 +261,16 @@ export const use_handlers = (
     state: {
       history_index,
       set_history_index,
-      is_history_enabled,
-      undo_stack,
-      set_undo_stack,
-      redo_stack,
-      set_redo_stack
+      is_history_enabled
     },
     utils: {
       update_value,
       handle_symbol_deletion_by_click,
       handle_backspace_key,
-      perform_paste: () => {}
+      perform_paste: () => {},
+      save_history,
+      undo,
+      redo
     }
   }
 
 
@@ -3,7 +3,8 @@ import {
   useRef,
   useImperativeHandle,
   useEffect,
-  useMemo
+  useMemo,
+  useState
 } from 'react'
 import styles from './Template.module.scss'
 import { Icon } from '../../Icon'
@@ -16,6 +17,7 @@ import {
   map_display_pos_to_raw_pos,
   use_symbol_deletion
 } from '../shared/symbols'
+import { use_undo_redo } from '../shared/hooks/use-undo-redo'
 
 export type TemplateHandle = {
   focus: () => void
@@ -36,6 +38,54 @@ export const Template = forwardRef<TemplateHandle, TemplateProps>(
   (props, ref) => {
     const input_ref = useRef<HTMLDivElement>(null)
 
+    const raw_caret_pos_ref = useRef(0)
+
+    const { save_history, undo, redo } = use_undo_redo({
+      value: props.value || '',
+      raw_caret_pos_ref,
+      on_change: props.on_change,
+      on_restore: (entry) => {
+        setTimeout(() => {
+          if (input_ref.current) {
+            const display_pos = map_raw_pos_to_display_pos({
+              raw_pos: entry.raw_caret_pos,
+              raw_text: entry.value,
+              context_file_paths: []
+            })
+            set_caret_position_for_div(input_ref.current, display_pos)
+          }
+        }, 0)
+      }
+    })
+
+    useEffect(() => {
+      const handle_selection_change = () => {
+        if (
+          document.activeElement === input_ref.current &&
+          input_ref.current
+        ) {
+          const display_pos = get_caret_position_from_div(input_ref.current)
+          const raw_pos = map_display_pos_to_raw_pos({
+            display_pos,
+            raw_text: props.value || '',
+            context_file_paths: []
+          })
+          raw_caret_pos_ref.current = raw_pos
+        }
+      }
+
+      document.addEventListener('selectionchange', handle_selection_change)
+      if (input_ref.current) {
+        input_ref.current.addEventListener('focus', handle_selection_change)
+      }
+      return () => {
+        document.removeEventListener('selectionchange', handle_selection_change)
+        if (input_ref.current) {
+          input_ref.current.removeEventListener('focus', handle_selection_change)
+        }
+      }
+    }, [props.value])
+
     useImperativeHandle(ref, () => ({
       focus: () => input_ref.current?.focus(),
       get_caret_position: () => {
@@ -63,23 +113,31 @@ export const Template = forwardRef<TemplateHandle, TemplateProps>(
       }
     }))
 
+    const update_value = (new_value: string, caret_pos?: number) => {
+      if (new_value === (props.value || '')) return
+      save_history()
+      props.on_change(new_value)
+      if (caret_pos !== undefined) {
+        setTimeout(() => {
+          if (input_ref.current) {
+            const display_pos = map_raw_pos_to_display_pos({
+              raw_pos: caret_pos,
+              raw_text: new_value,
+              context_file_paths: []
+            })
+            set_caret_position_for_div(input_ref.current, display_pos)
+          }
+        }, 0)
+      }
+    }
+
     const { handle_symbol_deletion_by_click, handle_backspace_key } =
       use_symbol_deletion({
         value: props.value || '',
         context_file_paths: [],
         input_ref,
         on_delete: (new_value, new_caret_pos) => {
-          props.on_change(new_value)
-          setTimeout(() => {
-            if (input_ref.current) {
-              const display_pos = map_raw_pos_to_display_pos({
-                raw_pos: new_caret_pos,
-                raw_text: new_value,
-                context_file_paths: []
-              })
-              set_caret_position_for_div(input_ref.current, display_pos)
-            }
-          }, 0)
+          update_value(new_value, new_caret_pos)
         }
       })
 
@@ -113,7 +171,7 @@ export const Template = forwardRef<TemplateHandle, TemplateProps>(
       const new_raw_value = reconstruct_raw_value_from_node(currentTarget)
 
       if (new_raw_value !== props.value) {
-        props.on_change(new_raw_value)
+        update_value(new_raw_value)
       }
 
       const native_event = e.nativeEvent as unknown as { inputType?: string }
@@ -155,8 +213,33 @@ export const Template = forwardRef<TemplateHandle, TemplateProps>(
       }
     }
 
+    const handle_undo = (e: React.KeyboardEvent<HTMLDivElement>) => {
+      e.preventDefault()
+      undo()
+    }
+
+    const handle_redo = (e: React.KeyboardEvent<HTMLDivElement>) => {
+      e.preventDefault()
+      redo()
+    }
+
     const handle_key_down = (e: React.KeyboardEvent<HTMLDivElement>) => {
-      if (e.key === 'Backspace') {
+      const { key, shiftKey } = e
+
+      if ((e.ctrlKey || e.metaKey) && !shiftKey && key.toLowerCase() === 'z') {
+        handle_undo(e)
+        return
+      }
+
+      if (
+        ((e.ctrlKey || e.metaKey) && key.toLowerCase() === 'y') ||
+        ((e.ctrlKey || e.metaKey) && shiftKey && key.toLowerCase() === 'z')
+      ) {
+        handle_redo(e)
+        return
+      }
+
+      if (key === 'Backspace') {
         handle_backspace_key(e)
       }
     }