diff --git a/apps/web/src/components/CommandPalette.logic.test.ts b/apps/web/src/components/CommandPalette.logic.test.ts
index c034c7f4131c1..cc23a79ddddad 100644
--- a/apps/web/src/components/CommandPalette.logic.test.ts
+++ b/apps/web/src/components/CommandPalette.logic.test.ts
@@ -948,7 +948,7 @@ describe("newThreadNoProjectIndex", () => {
   });
 
   it("goes after the pinned projects and the first unpinned one", () => {
-    expect(newThreadNoProjectIndex([entry(true), entry(true), entry(false, true), entry()])).toBe(
+    expect(newThreadNoProjectIndex([entry(false, true), entry(true), entry(true), entry()])).toBe(
       3,
     );
     expect(newThreadNoProjectIndex([entry(false, true), entry(), entry(false, false, true)])).toBe(
diff --git a/apps/web/src/components/CommandPalette.tsx b/apps/web/src/components/CommandPalette.tsx
index 7c0821678e512..5d08f4c7f6e8d 100644
--- a/apps/web/src/components/CommandPalette.tsx
+++ b/apps/web/src/components/CommandPalette.tsx
@@ -826,8 +826,15 @@ function OpenCommandPaletteDialog(props: {
     (() => {
       const isScratch = (project: CommandPaletteProject) =>
         isScratchProject(project, scratchWorkspaceRootFor(project.environmentId));
+      const currentEntry =
+        currentProjectId === null
+          ? undefined
+          : projectPickerEntries.find((entry) => entry.isPreferred);
       const projectItems = buildNewThreadInProjectItems({
         projects: pickerProjects.filter((project) => !isScratch(project)),
+        currentProjectKey: currentEntry
+          ? `${currentEntry.targetProject.environmentId}:${currentEntry.targetProject.id}`
+          : null,
         projectGroupByTargetKey,
         locationByEnvironmentId: projectEnvironmentLocationById,
         pin: projectPin,
diff --git a/apps/web/src/components/CommandPaletteProjectItems.tsx b/apps/web/src/components/CommandPaletteProjectItems.tsx
index 2a3d466474d2e..3039ac9e6f261 100644
--- a/apps/web/src/components/CommandPaletteProjectItems.tsx
+++ b/apps/web/src/components/CommandPaletteProjectItems.tsx
@@ -73,7 +73,9 @@ export function buildProjectSearchItems(input: ProjectItemsInput) {
 }
 
 /** Projects as targets of the "New thread in..." submenu. */
-export function buildNewThreadInProjectItems(input: ProjectItemsInput) {
+export function buildNewThreadInProjectItems(
+  input: ProjectItemsInput & { readonly currentProjectKey: string | null },
+) {
   return buildProjectActionItems({
     projects: input.projects,
     valuePrefix: "new-thread-in",
@@ -89,6 +91,7 @@ export function buildNewThreadInProjectItems(input: ProjectItemsInput) {
       <ProjectLocationDescription
         location={input.locationByEnvironmentId.get(project.environmentId)}
         workspaceRoot={project.workspaceRoot}
+        current={input.currentProjectKey === `${project.environmentId}:${project.id}`}
       />
     ),
     icon: projectFaviconIcon,
@@ -100,10 +103,17 @@ export function buildNewThreadInProjectItems(input: ProjectItemsInput) {
 function ProjectLocationDescription(props: {
   readonly location: CommandPaletteProjectLocation | undefined;
   readonly workspaceRoot: string;
+  readonly current?: boolean;
 }) {
   const location = props.location ?? UNKNOWN_PROJECT_LOCATION;
   return (
     <span className="flex min-w-0 items-center gap-1">
+      {props.current ? (
+        <>
+          <span className="shrink-0">Current</span>
+          <CommandPaletteMetaDot />
+        </>
+      ) : null}
       <span className="inline-flex min-w-0 items-center gap-1">
         {location.kind === "remote" ? (
           <EnvironmentMachineIcon
@@ -115,7 +125,7 @@ function ProjectLocationDescription(props: {
         <span className="truncate">{location.label}</span>
       </span>
       <CommandPaletteMetaDot />
-      <span className="truncate">{props.workspaceRoot}</span>
+      <span className="min-w-0 flex-1 truncate">{props.workspaceRoot}</span>
     </span>
   );
 }
diff --git a/apps/web/src/environmentGrouping.test.ts b/apps/web/src/environmentGrouping.test.ts
index 81e7c37b470e3..b2081b4b8fe9a 100644
--- a/apps/web/src/environmentGrouping.test.ts
+++ b/apps/web/src/environmentGrouping.test.ts
@@ -279,7 +279,7 @@ describe("environment grouping", () => {
     });
   });
 
-  it("puts the preferred project after pinned projects", () => {
+  it("puts the preferred project before pinned projects", () => {
     const project = (title: string, pinnedAt: string | null = null) =>
       makeProject({
         id: ProjectId.make(title),
@@ -299,6 +299,6 @@ describe("environment grouping", () => {
       groups: pickableProjectGroups(groups),
       preferredProjectRef: { environmentId: current.environmentId, projectId: current.id },
     });
-    expect(entries.map((entry) => entry.group.displayName)).toEqual(["pinned", "current", "other"]);
+    expect(entries.map((entry) => entry.group.displayName)).toEqual(["current", "pinned", "other"]);
   });
 });
diff --git a/apps/web/src/sidebarProjectGrouping.ts b/apps/web/src/sidebarProjectGrouping.ts
index 5f9f7d981da7d..8fb8c4a5a1c6c 100644
--- a/apps/web/src/sidebarProjectGrouping.ts
+++ b/apps/web/src/sidebarProjectGrouping.ts
@@ -239,10 +239,8 @@ export function buildSidebarProjectPickerEntries(input: {
 
     return [{ group, targetProject, isPreferred }];
   });
-  // The preferred project leads the unpinned ones; pinned projects stay first.
+  // The current project leads, even ahead of pinned projects.
   const preferred = entries.find((entry) => entry.isPreferred);
-  if (!preferred || preferred.group.pinned) return entries;
-  const rest = entries.filter((entry) => entry !== preferred);
-  const pinnedCount = rest.filter((entry) => entry.group.pinned).length;
-  return [...rest.slice(0, pinnedCount), preferred, ...rest.slice(pinnedCount)];
+  if (!preferred) return entries;
+  return [preferred, ...entries.filter((entry) => entry !== preferred)];
 }