diff --git a/gadget-code/frontend/src/components/EditorPanel.tsx b/gadget-code/frontend/src/components/EditorPanel.tsx
index 0de3237..a1a2c21 100644
--- a/gadget-code/frontend/src/components/EditorPanel.tsx
+++ b/gadget-code/frontend/src/components/EditorPanel.tsx
@@ -1,5 +1,5 @@
 import { useState, useCallback, useEffect } from 'react';
-import AceEditor from 'react-ace';
+import Ace from 'react-ace';
 import 'ace-builds/src-noconflict/mode-text';
 import 'ace-builds/src-noconflict/theme-tomorrow';
 import 'ace-builds/src-noconflict/ext-language_tools';
@@ -298,7 +298,7 @@ export default function EditorPanel({ workspaceMode, filePath, onCloseFile }: Ed
       {/* ACE Editor */}
       {!state.isLoading && (
         <div className="flex-1 min-h-0">
-          <AceEditor
+          <Ace
             mode={state.language}
             theme="tomorrow"
             name="editor"
diff --git a/gadget-code/frontend/src/components/FilesPanel.tsx b/gadget-code/frontend/src/components/FilesPanel.tsx
index 578d695..c7a087e 100644
--- a/gadget-code/frontend/src/components/FilesPanel.tsx
+++ b/gadget-code/frontend/src/components/FilesPanel.tsx
@@ -1,25 +1,15 @@
-import { useState } from "react";
 import { WorkspaceMode } from "../lib/types";
 import FileTree from "./FileTree";
-import EditorPanel from "./EditorPanel";
 
 interface FilesPanelProps {
   workspaceMode: WorkspaceMode;
+  onFileSelect?: (path: string) => void;
 }
 
-export default function FilesPanel({ workspaceMode }: FilesPanelProps) {
-  const [selectedFilePath, setSelectedFilePath] = useState<string | undefined>(undefined);
+export default function FilesPanel({ workspaceMode, onFileSelect }: FilesPanelProps) {
   const isReadOnly = workspaceMode === WorkspaceMode.Agent;
   const isReadWrite = workspaceMode === WorkspaceMode.User;
 
-  const handleFileSelect = (path: string) => {
-    setSelectedFilePath(path);
-  };
-
-  const handleCloseFile = () => {
-    setSelectedFilePath(undefined);
-  };
-
   return (
     <div className="border-t border-border-subtle flex flex-col flex-1 min-h-0">
       <div className="flex items-center justify-between px-4 py-2 bg-bg-tertiary">
@@ -49,27 +39,12 @@ export default function FilesPanel({ workspaceMode }: FilesPanelProps) {
           </span>
         </div>
       </div>
-      
-      {/* Split view: File tree on left, editor on right */}
-      <div className="flex-1 flex overflow-hidden min-h-0">
-        {/* File Tree - 30% width, resizable in future */}
-        <div className="w-1/3 min-w-[200px] border-r border-border-subtle overflow-auto flex-shrink-0">
-          <FileTree
-            workspaceMode={workspaceMode}
-            onFileSelect={handleFileSelect}
-          />
-        </div>
-        
-        {/* Editor Panel - remaining space */}
-        <div className="flex-1 min-w-0">
-          <EditorPanel
-            workspaceMode={workspaceMode}
-            filePath={selectedFilePath}
-            onCloseFile={handleCloseFile}
-          />
-        </div>
+      <div className="flex-1 overflow-auto">
+        <FileTree
+          workspaceMode={workspaceMode}
+          onFileSelect={onFileSelect}
+        />
       </div>
-      
       <div className="px-4 py-2 bg-bg-tertiary border-t border-border-subtle">
         <p className="text-xs text-text-muted">
           {isReadOnly
diff --git a/gadget-code/frontend/src/pages/ChatSessionView.tsx b/gadget-code/frontend/src/pages/ChatSessionView.tsx
index 50928e5..7a32306 100644
--- a/gadget-code/frontend/src/pages/ChatSessionView.tsx
+++ b/gadget-code/frontend/src/pages/ChatSessionView.tsx
@@ -7,6 +7,7 @@ import WorkspaceModeIndicator from '../components/WorkspaceModeIndicator';
 import FilesPanel from '../components/FilesPanel';
 import LogPanel from '../components/LogPanel';
 import ChatTurnComponent from '../components/ChatTurn';
+import EditorPanel from '../components/EditorPanel';
 import { AppContext } from '../App';
 
 interface LogEntry {
@@ -74,6 +75,7 @@ export default function ChatSessionView() {
   const [_connectionState, setConnectionState] = useState<'disconnected' | 'connecting' | 'connected' | 'error'>('disconnected');
   const [isOtherTab, setIsOtherTab] = useState(false);
   const [reconnectAttempts, setReconnectAttempts] = useState(0);
+  const [editorFilePath, setEditorFilePath] = useState<string | undefined>(undefined);
 
   const messagesEndRef = useRef<HTMLDivElement>(null);
   const inputRef = useRef<HTMLTextAreaElement>(null);
@@ -1086,18 +1088,27 @@ export default function ChatSessionView() {
         {isEditingProvider && (
           <div className="absolute inset-0 bg-bg-primary/80 z-30" />
         )}
-        {/* Chat View (75%) */}
-        <div className="flex-1 flex flex-col overflow-hidden">
-          {/* Messages */}
-          <div className="flex-1 overflow-y-auto p-3 space-y-2">
-            {turns.map((turn) => (
-              <ChatTurnComponent
-                key={turn._id}
-                turn={turn}
-              />
-            ))}
-            <div ref={messagesEndRef} />
-          </div>
+        
+        {/* File Editor View (replaces Chat View when file is open) */}
+        {editorFilePath ? (
+          <EditorPanel
+            workspaceMode={workspaceMode}
+            filePath={editorFilePath}
+            onCloseFile={() => setEditorFilePath(undefined)}
+          />
+        ) : (
+          /* Chat View (75%) */
+          <div className="flex-1 flex flex-col overflow-hidden">
+            {/* Messages */}
+            <div className="flex-1 overflow-y-auto p-3 space-y-2">
+              {turns.map((turn) => (
+                <ChatTurnComponent
+                  key={turn._id}
+                  turn={turn}
+                />
+              ))}
+              <div ref={messagesEndRef} />
+            </div>
 
           {/* Prompt Input */}
           <div className="border-t border-border-subtle p-4 bg-bg-secondary shrink-0">
@@ -1138,6 +1149,7 @@ export default function ChatSessionView() {
             </form>
           </div>
         </div>
+        )}
 
         {/* Log Panel (25%) */}
         <LogPanel
@@ -1375,7 +1387,12 @@ export default function ChatSessionView() {
         </div>
 
         {/* FILES Panel */}
-        <FilesPanel workspaceMode={workspaceMode} />
+        <FilesPanel 
+          workspaceMode={workspaceMode} 
+          onFileSelect={(path) => {
+            setEditorFilePath(path);
+          }}
+        />
       </div>
     </div>
   );