diff --git a/core/index.d.ts b/core/index.d.ts
index 6192666503f..3e546f6cdb4 100644
--- a/core/index.d.ts
+++ b/core/index.d.ts
@@ -1496,6 +1496,7 @@ export interface ApplyState {
   fileContent?: string;
   originalFileContent?: string;
   toolCallId?: string;
+  accepted?: boolean;
   autoFormattingDiff?: string;
 }
 
diff --git a/extensions/vscode/src/diff/processDiff.ts b/extensions/vscode/src/diff/processDiff.ts
index cbff6f4a363..5821c56c33a 100644
--- a/extensions/vscode/src/diff/processDiff.ts
+++ b/extensions/vscode/src/diff/processDiff.ts
@@ -90,6 +90,7 @@ export async function processDiff(
       status: "closed",
       numDiffs: 0,
       toolCallId,
+      accepted: action === "accept",
       autoFormattingDiff, // Include autoformatting diff
     });
   } else {
diff --git a/extensions/vscode/src/diff/vertical/handler.ts b/extensions/vscode/src/diff/vertical/handler.ts
index 4420af5ec84..e42126307e1 100644
--- a/extensions/vscode/src/diff/vertical/handler.ts
+++ b/extensions/vscode/src/diff/vertical/handler.ts
@@ -20,6 +20,7 @@ export interface VerticalDiffHandlerOptions {
     status?: ApplyState["status"],
     numDiffs?: ApplyState["numDiffs"],
     fileContent?: ApplyState["fileContent"],
+    accepted?: ApplyState["accepted"],
   ) => void;
   streamId?: string;
 }
@@ -145,6 +146,7 @@ export class VerticalDiffHandler implements vscode.Disposable {
       "closed",
       this.editorToVerticalDiffCodeLens.get(this.fileUri)?.length ?? 0,
       this.editor.document.getText(),
+      accept,
     );
 
     this.cancelled = true;
@@ -279,6 +281,7 @@ export class VerticalDiffHandler implements vscode.Disposable {
         status,
         numDiffs,
         this.editor.document.getText(),
+        status === "closed" ? accept : undefined,
       );
     }
   }
diff --git a/extensions/vscode/src/diff/vertical/manager.ts b/extensions/vscode/src/diff/vertical/manager.ts
index 059efe0aee4..e28727c8bfb 100644
--- a/extensions/vscode/src/diff/vertical/manager.ts
+++ b/extensions/vscode/src/diff/vertical/manager.ts
@@ -196,7 +196,7 @@ export class VerticalDiffManager {
     );
 
     if (blocks.length === 1) {
-      this.clearForfileUri(fileUri, true);
+      this.clearForfileUri(fileUri, accept);
     } else {
       // Re-enable listener for user changes to file
       this.enableDocumentChangeListener();
@@ -239,7 +239,7 @@ export class VerticalDiffManager {
       endLine,
       {
         instant,
-        onStatusUpdate: (status, numDiffs, fileContent) =>
+        onStatusUpdate: (status, numDiffs, fileContent, accepted) =>
           void this.webviewProtocol.request("updateApplyState", {
             streamId,
             status,
@@ -247,6 +247,7 @@ export class VerticalDiffManager {
             fileContent,
             filepath: fileUri,
             toolCallId,
+            accepted,
           }),
         streamId,
       },
@@ -318,7 +319,7 @@ export class VerticalDiffManager {
       editor.document.lineCount - 1,
       {
         instant: true,
-        onStatusUpdate: (status, numDiffs, fileContent) =>
+        onStatusUpdate: (status, numDiffs, fileContent, accepted) =>
           void this.webviewProtocol.request("updateApplyState", {
             streamId,
             status,
@@ -326,6 +327,7 @@ export class VerticalDiffManager {
             fileContent,
             filepath: fileUri,
             toolCallId,
+            accepted,
           }),
         streamId,
       },
@@ -446,7 +448,7 @@ export class VerticalDiffManager {
       {
         instant: isFastApplyModel(llm),
         input,
-        onStatusUpdate: (status, numDiffs, fileContent) =>
+        onStatusUpdate: (status, numDiffs, fileContent, accepted) =>
           streamId &&
           void this.webviewProtocol.request("updateApplyState", {
             streamId,
@@ -455,6 +457,7 @@ export class VerticalDiffManager {
             fileContent,
             filepath: fileUri,
             toolCallId,
+            accepted,
           }),
         streamId,
       },
diff --git a/gui/src/redux/slices/sessionSlice.ts b/gui/src/redux/slices/sessionSlice.ts
index 1a0db2cc441..d68b9c15ffa 100644
--- a/gui/src/redux/slices/sessionSlice.ts
+++ b/gui/src/redux/slices/sessionSlice.ts
@@ -821,6 +821,9 @@ export const sessionSlice = createSlice({
         applyState.fileContent = payload.fileContent ?? applyState.fileContent;
         applyState.originalFileContent =
           payload.originalFileContent ?? applyState.originalFileContent;
+        applyState.accepted = payload.accepted ?? applyState.accepted;
+        applyState.autoFormattingDiff =
+          payload.autoFormattingDiff ?? applyState.autoFormattingDiff;
       }
 
       if (payload.status === "done") {
diff --git a/gui/src/redux/thunks/handleApplyStateUpdate.test.ts b/gui/src/redux/thunks/handleApplyStateUpdate.test.ts
index 2e426b7d7c1..e388cec94ce 100644
--- a/gui/src/redux/thunks/handleApplyStateUpdate.test.ts
+++ b/gui/src/redux/thunks/handleApplyStateUpdate.test.ts
@@ -264,6 +264,62 @@ describe("handleApplyStateUpdate", () => {
       expect(streamResponseAfterToolCall).not.toHaveBeenCalled();
     });
 
+    it("should not mark a rejected closed apply state as accepted", async () => {
+      const toolCallState: ToolCallState = {
+        toolCallId: "test-tool-call",
+        status: "done",
+        ...UNUSED_TOOL_CALL_PARAMS,
+      };
+      const newApplyState = { streamId: "chat-stream" };
+
+      vi.mocked(findToolCallById).mockReturnValue(toolCallState);
+      mockGetState.mockReturnValue({
+        session: {
+          history: [],
+          codeBlockApplyStates: {
+            states: [newApplyState],
+          },
+        },
+        config: { config: {} },
+      });
+
+      const applyState: ApplyState = {
+        streamId: "chat-stream",
+        toolCallId: "test-tool-call",
+        status: "closed",
+        filepath: "test.txt",
+        numDiffs: 0,
+        accepted: false,
+      };
+
+      const thunk = handleApplyStateUpdate(applyState);
+      await thunk(mockDispatch, mockGetState, mockExtra);
+
+      expect(logToolUsage).toHaveBeenCalledWith(
+        toolCallState,
+        false,
+        true,
+        mockExtra.ideMessenger,
+      );
+      expect(logAgentModeEditOutcome).toHaveBeenCalledWith(
+        [],
+        {},
+        toolCallState,
+        newApplyState,
+        false,
+        mockExtra.ideMessenger,
+      );
+      expect(acceptToolCall).not.toHaveBeenCalled();
+      expect(updateToolCallOutput).not.toHaveBeenCalledWith(
+        expect.objectContaining({
+          contextItems: expect.arrayContaining([
+            expect.objectContaining({ name: "Edit Success" }),
+          ]),
+        }),
+      );
+      expect(streamResponseAfterToolCall).not.toHaveBeenCalled();
+    });
+
     it("should handle errored tool call closure", async () => {
       const toolCallState: ToolCallState = {
         toolCallId: "test-tool-call",
diff --git a/gui/src/redux/thunks/handleApplyStateUpdate.ts b/gui/src/redux/thunks/handleApplyStateUpdate.ts
index a220af51f63..3ec3a39a01e 100644
--- a/gui/src/redux/thunks/handleApplyStateUpdate.ts
+++ b/gui/src/redux/thunks/handleApplyStateUpdate.ts
@@ -63,7 +63,11 @@ export const handleApplyStateUpdate = createAsyncThunk<
 
         if (applyState.status === "closed") {
           if (toolCallState) {
-            const accepted = toolCallState.status !== "canceled";
+            // Closing a diff does not always mean the user accepted it.
+            // Only report edit success when the close event confirms acceptance.
+            const accepted =
+              toolCallState.status !== "canceled" &&
+              applyState.accepted !== false;
 
             logToolUsage(toolCallState, accepted, true, extra.ideMessenger);