diff --git a/tools/server/webui/src/lib/components/app/chat/ChatAttachments/ChatAttachmentMcpPrompt.svelte b/tools/server/webui/src/lib/components/app/chat/ChatAttachments/ChatAttachmentMcpPrompt.svelte
index c802f361ac..5fba2b3d19 100644
--- a/tools/server/webui/src/lib/components/app/chat/ChatAttachments/ChatAttachmentMcpPrompt.svelte
+++ b/tools/server/webui/src/lib/components/app/chat/ChatAttachments/ChatAttachmentMcpPrompt.svelte
@@ -32,7 +32,7 @@
 
 	{#if !readonly && onRemove}
 		<div
-			class="absolute top-8 right-2 flex items-center justify-center opacity-0 transition-opacity group-hover:opacity-100"
+			class="absolute top-10 right-2 flex items-center justify-center opacity-0 transition-opacity group-hover:opacity-100"
 		>
 			<ActionIconRemove id={prompt.name} onRemove={() => onRemove?.()} />
 		</div>
diff --git a/tools/server/webui/src/lib/components/app/chat/ChatForm/ChatFormPromptPicker/ChatFormPromptPicker.svelte b/tools/server/webui/src/lib/components/app/chat/ChatForm/ChatFormPromptPicker/ChatFormPromptPicker.svelte
index f601c6dd4e..555a83f178 100644
--- a/tools/server/webui/src/lib/components/app/chat/ChatForm/ChatFormPromptPicker/ChatFormPromptPicker.svelte
+++ b/tools/server/webui/src/lib/components/app/chat/ChatForm/ChatFormPromptPicker/ChatFormPromptPicker.svelte
@@ -41,6 +41,7 @@
 	let selectedIndex = $state(0);
 	let internalSearchQuery = $state('');
 	let promptError = $state<string | null>(null);
+	let selectedIndexBeforeArgumentForm = $state<number | null>(null);
 
 	let suggestions = $state<Record<string, string[]>>({});
 	let loadingSuggestions = $state<Record<string, boolean>>({});
@@ -99,12 +100,20 @@
 	}
 
 	function handlePromptClick(prompt: MCPPromptInfo) {
-		const requiredArgs = prompt.arguments?.filter((arg) => arg.required) ?? [];
+		const args = prompt.arguments ?? [];
 
-		if (requiredArgs.length > 0) {
+		if (args.length > 0) {
+			selectedIndexBeforeArgumentForm = selectedIndex;
 			selectedPrompt = prompt;
 			promptArgs = {};
 			promptError = null;
+
+			requestAnimationFrame(() => {
+				const firstInput = document.querySelector(`#arg-${args[0].name}`) as HTMLInputElement;
+				if (firstInput) {
+					firstInput.focus();
+				}
+			});
 		} else {
 			executePrompt(prompt, {});
 		}
@@ -212,6 +221,14 @@
 	function handleArgKeydown(event: KeyboardEvent, argName: string) {
 		const argSuggestions = suggestions[argName] ?? [];
 
+		// Handle Escape - return to prompt selection list
+		if (event.key === KeyboardKey.ESCAPE) {
+			event.preventDefault();
+			event.stopPropagation();
+			handleCancelArgumentForm();
+			return;
+		}
+
 		if (argSuggestions.length === 0 || activeAutocomplete !== argName) return;
 
 		if (event.key === KeyboardKey.ARROW_DOWN) {
@@ -224,10 +241,6 @@
 			event.preventDefault();
 			event.stopPropagation();
 			selectSuggestion(argName, argSuggestions[autocompleteIndex]);
-		} else if (event.key === KeyboardKey.ESCAPE) {
-			event.preventDefault();
-			suggestions[argName] = [];
-			activeAutocomplete = null;
 		}
 	}
 
@@ -248,6 +261,11 @@
 	}
 
 	function handleCancelArgumentForm() {
+		// Restore the previously selected prompt index
+		if (selectedIndexBeforeArgumentForm !== null) {
+			selectedIndex = selectedIndexBeforeArgumentForm;
+			selectedIndexBeforeArgumentForm = null;
+		}
 		selectedPrompt = null;
 		promptArgs = {};
 		promptError = null;
@@ -259,8 +277,8 @@
 		if (event.key === KeyboardKey.ESCAPE) {
 			event.preventDefault();
 			if (selectedPrompt) {
-				selectedPrompt = null;
-				promptArgs = {};
+				// Return to prompt selection list, keeping the selected prompt active
+				handleCancelArgumentForm();
 			} else {
 				onClose?.();
 			}
diff --git a/tools/server/webui/src/lib/components/app/chat/ChatForm/ChatFormPromptPicker/ChatFormPromptPickerList.svelte b/tools/server/webui/src/lib/components/app/chat/ChatForm/ChatFormPromptPicker/ChatFormPromptPickerList.svelte
index 0954335194..755904c29a 100644
--- a/tools/server/webui/src/lib/components/app/chat/ChatForm/ChatFormPromptPicker/ChatFormPromptPickerList.svelte
+++ b/tools/server/webui/src/lib/components/app/chat/ChatForm/ChatFormPromptPicker/ChatFormPromptPickerList.svelte
@@ -39,7 +39,7 @@
 			if (selectedElement) {
 				selectedElement.scrollIntoView({
 					behavior: 'smooth',
-					block: 'nearest',
+					block: 'center',
 					inline: 'nearest'
 				});
 			}
diff --git a/tools/server/webui/src/lib/components/app/chat/ChatMessages/ChatMessageMcpPromptContent.svelte b/tools/server/webui/src/lib/components/app/chat/ChatMessages/ChatMessageMcpPromptContent.svelte
index 2906a48f76..c80e9e8307 100644
--- a/tools/server/webui/src/lib/components/app/chat/ChatMessages/ChatMessageMcpPromptContent.svelte
+++ b/tools/server/webui/src/lib/components/app/chat/ChatMessages/ChatMessageMcpPromptContent.svelte
@@ -79,11 +79,10 @@
 
 	let showArgBadges = $derived(hasArguments && !isLoading && !loadError);
 	let isAttachment = $derived(variant === McpPromptVariant.ATTACHMENT);
-	let textSizeClass = $derived(isAttachment ? 'text-sm' : 'text-md');
+	let textSizeClass = $derived(isAttachment ? 'text-xs' : 'text-md');
+	let paddingClass = $derived(isAttachment ? 'px-3 py-2' : 'px-3.75 py-2.5');
 	let maxHeightStyle = $derived(
-		isAttachment
-			? 'max-height: 10rem;'
-			: 'min-height: var(--min-message-height); max-height: var(--max-message-height);'
+		isAttachment ? 'max-height: 6rem;' : 'max-height: var(--max-message-height);'
 	);
 
 	const serverFavicon = $derived(mcpStore.getServerFavicon(prompt.serverName));
@@ -146,7 +145,7 @@
 			class="relative overflow-hidden rounded-[1.125rem] border border-destructive/50 bg-destructive/10 backdrop-blur-md"
 		>
 			<div
-				class="overflow-y-auto px-3.75 py-2.5"
+				class="overflow-y-auto {paddingClass}"
 				style="{maxHeightStyle} overflow-wrap: anywhere; word-break: break-word;"
 			>
 				<span class="{textSizeClass} text-destructive">{loadError}</span>
@@ -154,15 +153,17 @@
 		</Card>
 	{:else if isLoading}
 		<Card
-			class="relative overflow-hidden rounded-[1.125rem] border border-purple-200 bg-purple-500/10 text-foreground backdrop-blur-md dark:border-purple-800 dark:bg-purple-500/20"
+			class="relative overflow-hidden rounded-[1.125rem] border border-purple-200 bg-purple-500/10 backdrop-blur-md dark:border-purple-800 dark:bg-purple-500/20 py-2 px-1"
 		>
 			<div
-				class="overflow-y-auto px-3.75 py-2.5"
+				class="overflow-y-auto {paddingClass}"
 				style="{maxHeightStyle} overflow-wrap: anywhere; word-break: break-word;"
 			>
-				<span class="{textSizeClass} text-purple-500 italic dark:text-purple-400">
-					Loading prompt content...
-				</span>
+				<div class="space-y-2">
+					<div class="h-3 w-3/4 animate-pulse rounded bg-foreground/20"></div>
+					<div class="h-3 w-full animate-pulse rounded bg-foreground/20"></div>
+					<div class="h-3 w-5/6 animate-pulse rounded bg-foreground/20"></div>
+				</div>
 			</div>
 		</Card>
 	{:else if hasContent}
@@ -170,7 +171,7 @@
 			class="relative overflow-hidden rounded-[1.125rem] border border-purple-200 bg-purple-500/10 py-0 text-foreground backdrop-blur-md dark:border-purple-800 dark:bg-purple-500/20"
 		>
 			<div
-				class="overflow-y-auto px-3.75 py-2.5"
+				class="overflow-y-auto {paddingClass}"
 				style="{maxHeightStyle} overflow-wrap: anywhere; word-break: break-word;"
 			>
 				<span class="{textSizeClass} whitespace-pre-wrap">