diff --git a/packages/ui/src/features/task-detail/components/TaskInput.tsx b/packages/ui/src/features/task-detail/components/TaskInput.tsx
index dc8848e288..0a6cd0a4bd 100644
--- a/packages/ui/src/features/task-detail/components/TaskInput.tsx
+++ b/packages/ui/src/features/task-detail/components/TaskInput.tsx
@@ -51,7 +51,7 @@ import {
   type AgentAdapter,
   useSettingsStore,
 } from "../../settings/settingsStore";
-import { useInitialDirectoryFromFolderId } from "../hooks/useInitialDirectoryFromFolderId";
+import { useInitialRepoSelectionFromFolderId } from "../hooks/useInitialRepoSelectionFromFolderId";
 import { usePreviewConfig } from "../hooks/usePreviewConfig";
 import { useTaskCreation } from "../hooks/useTaskCreation";
 import { CloudGithubMissingNotice } from "./CloudGithubMissingNotice";
@@ -110,6 +110,7 @@ export function TaskInput({
   );
   const {
     setLastUsedLocalWorkspaceMode,
+    lastUsedLocalWorkspaceMode,
     lastUsedWorkspaceMode,
     setLastUsedWorkspaceMode,
     lastUsedAdapter,
@@ -466,7 +467,25 @@ export function TaskInput({
     setLastUsedCloudRepository,
   ]);
 
-  useInitialDirectoryFromFolderId(view.folderId, folders, setSelectedDirectory);
+  // Switch mode for a folder-scoped prefill ("+" in the sidebar) without persisting it as
+  // the user's mode preference. Marks the mode as resolved so the last-used resolver above
+  // doesn't override the explicit pick.
+  const switchWorkspaceModeForFolder = useCallback((mode: WorkspaceMode) => {
+    didResolveWorkspaceModeRef.current = true;
+    setWorkspaceModeState(mode);
+  }, []);
+
+  useInitialRepoSelectionFromFolderId({
+    folderId: view.folderId,
+    folders,
+    repositories,
+    reposLoaded: !isLoadingRepos && repositories.length > 0,
+    currentMode: workspaceMode,
+    lastUsedLocalMode: lastUsedLocalWorkspaceMode,
+    setSelectedDirectory,
+    setSelectedRepository,
+    switchWorkspaceMode: switchWorkspaceModeForFolder,
+  });
 
   useEffect(() => {
     setCloudBranchSearchQuery("");
diff --git a/packages/ui/src/features/task-detail/hooks/useInitialDirectoryFromFolderId.test.ts b/packages/ui/src/features/task-detail/hooks/useInitialDirectoryFromFolderId.test.ts
deleted file mode 100644
index 3f1b781aee..0000000000
--- a/packages/ui/src/features/task-detail/hooks/useInitialDirectoryFromFolderId.test.ts
+++ /dev/null
@@ -1,89 +0,0 @@
-import { renderHook } from "@testing-library/react";
-import { describe, expect, it, vi } from "vitest";
-import type { RegisteredFolder } from "../../folders/types";
-import { useInitialDirectoryFromFolderId } from "./useInitialDirectoryFromFolderId";
-
-const folder = (id: string, path: string): RegisteredFolder => ({
-  id,
-  path,
-  name: id,
-  remoteUrl: null,
-  lastAccessed: "2026-05-21T00:00:00Z",
-  createdAt: "2026-05-21T00:00:00Z",
-});
-
-describe("useInitialDirectoryFromFolderId", () => {
-  it("syncs the directory to the folder matching folderId on first render", () => {
-    const setSelectedDirectory = vi.fn();
-    renderHook(() =>
-      useInitialDirectoryFromFolderId(
-        "a",
-        [folder("a", "/repos/a")],
-        setSelectedDirectory,
-      ),
-    );
-    expect(setSelectedDirectory).toHaveBeenCalledExactlyOnceWith("/repos/a");
-  });
-
-  it("waits for folders to load before syncing", () => {
-    const setSelectedDirectory = vi.fn();
-    const { rerender } = renderHook(
-      ({ folders }: { folders: RegisteredFolder[] }) =>
-        useInitialDirectoryFromFolderId("a", folders, setSelectedDirectory),
-      { initialProps: { folders: [] as RegisteredFolder[] } },
-    );
-    expect(setSelectedDirectory).not.toHaveBeenCalled();
-
-    rerender({ folders: [folder("a", "/repos/a")] });
-    expect(setSelectedDirectory).toHaveBeenCalledExactlyOnceWith("/repos/a");
-  });
-
-  it("does not re-sync when folders changes but folderId stays the same", () => {
-    const setSelectedDirectory = vi.fn();
-    const { rerender } = renderHook(
-      ({ folders }: { folders: RegisteredFolder[] }) =>
-        useInitialDirectoryFromFolderId("a", folders, setSelectedDirectory),
-      { initialProps: { folders: [folder("a", "/repos/a")] } },
-    );
-    expect(setSelectedDirectory).toHaveBeenCalledExactlyOnceWith("/repos/a");
-
-    // Simulate adding a folder (e.g. after the user picks one via "Open
-    // folder..."). The folders list changes but the user's pick must not be
-    // clobbered by re-syncing from the original folderId.
-    rerender({
-      folders: [folder("a", "/repos/a"), folder("b", "/repos/picked")],
-    });
-    expect(setSelectedDirectory).toHaveBeenCalledTimes(1);
-  });
-
-  it("re-syncs when folderId changes", () => {
-    const setSelectedDirectory = vi.fn();
-    const folders = [folder("a", "/repos/a"), folder("b", "/repos/b")];
-    const { rerender } = renderHook(
-      ({ folderId }: { folderId: string }) =>
-        useInitialDirectoryFromFolderId(
-          folderId,
-          folders,
-          setSelectedDirectory,
-        ),
-      { initialProps: { folderId: "a" } },
-    );
-    expect(setSelectedDirectory).toHaveBeenLastCalledWith("/repos/a");
-
-    rerender({ folderId: "b" });
-    expect(setSelectedDirectory).toHaveBeenLastCalledWith("/repos/b");
-    expect(setSelectedDirectory).toHaveBeenCalledTimes(2);
-  });
-
-  it("does nothing when folderId is undefined", () => {
-    const setSelectedDirectory = vi.fn();
-    renderHook(() =>
-      useInitialDirectoryFromFolderId(
-        undefined,
-        [folder("a", "/repos/a")],
-        setSelectedDirectory,
-      ),
-    );
-    expect(setSelectedDirectory).not.toHaveBeenCalled();
-  });
-});
diff --git a/packages/ui/src/features/task-detail/hooks/useInitialDirectoryFromFolderId.ts b/packages/ui/src/features/task-detail/hooks/useInitialDirectoryFromFolderId.ts
deleted file mode 100644
index e39dd1574a..0000000000
--- a/packages/ui/src/features/task-detail/hooks/useInitialDirectoryFromFolderId.ts
+++ /dev/null
@@ -1,29 +0,0 @@
-import { useEffect, useRef } from "react";
-import type { RegisteredFolder } from "../../folders/types";
-
-/**
- * Syncs `selectedDirectory` to the path of `folders[view.folderId]` once per
- * folderId. The dependency on `folders` is required so the sync still fires
- * when the folder list hasn't loaded yet on initial mount, but we must not
- * re-sync on later `folders` refetches (e.g. after `addFolder`) — that would
- * clobber a folder the user just picked via the file dialog.
- */
-export function useInitialDirectoryFromFolderId(
-  folderId: string | undefined,
-  folders: RegisteredFolder[],
-  setSelectedDirectory: (path: string) => void,
-) {
-  const lastInitializedRef = useRef<string | undefined>(undefined);
-  useEffect(() => {
-    if (!folderId) {
-      lastInitializedRef.current = undefined;
-      return;
-    }
-    if (lastInitializedRef.current === folderId) return;
-    const folder = folders.find((f) => f.id === folderId);
-    if (folder) {
-      setSelectedDirectory(folder.path);
-      lastInitializedRef.current = folderId;
-    }
-  }, [folderId, folders, setSelectedDirectory]);
-}
diff --git a/packages/ui/src/features/task-detail/hooks/useInitialRepoSelectionFromFolderId.test.ts b/packages/ui/src/features/task-detail/hooks/useInitialRepoSelectionFromFolderId.test.ts
new file mode 100644
index 0000000000..27ba0dddd0
--- /dev/null
+++ b/packages/ui/src/features/task-detail/hooks/useInitialRepoSelectionFromFolderId.test.ts
@@ -0,0 +1,272 @@
+import type { WorkspaceMode } from "@posthog/shared";
+import { renderHook } from "@testing-library/react";
+import { describe, expect, it, vi } from "vitest";
+import type { RegisteredFolder } from "../../folders/types";
+import {
+  resolveRepoSelectionForFolder,
+  useInitialRepoSelectionFromFolderId,
+} from "./useInitialRepoSelectionFromFolderId";
+
+const folder = (
+  id: string,
+  path: string,
+  remoteUrl: string | null = null,
+): RegisteredFolder => ({
+  id,
+  path,
+  name: id,
+  remoteUrl,
+  lastAccessed: "2026-05-21T00:00:00Z",
+  createdAt: "2026-05-21T00:00:00Z",
+});
+
+describe("resolveRepoSelectionForFolder", () => {
+  it("prefills both selectors for a cloud-capable folder and keeps cloud mode", () => {
+    expect(
+      resolveRepoSelectionForFolder({
+        folder: folder("a", "/repos/a", "posthog/posthog"),
+        repositories: ["posthog/posthog"],
+        reposLoaded: true,
+        currentMode: "cloud",
+        lastUsedLocalMode: "local",
+      }),
+    ).toEqual({
+      directory: "/repos/a",
+      cloudRepository: "posthog/posthog",
+      nextMode: undefined,
+    });
+  });
+
+  it("prefills the cloud repo while keeping local mode (no switch)", () => {
+    expect(
+      resolveRepoSelectionForFolder({
+        folder: folder("a", "/repos/a", "posthog/posthog"),
+        repositories: ["posthog/posthog"],
+        reposLoaded: true,
+        currentMode: "local",
+        lastUsedLocalMode: "local",
+      }),
+    ).toEqual({
+      directory: "/repos/a",
+      cloudRepository: "posthog/posthog",
+      nextMode: undefined,
+    });
+  });
+
+  it("lower-cases the remote slug before matching", () => {
+    expect(
+      resolveRepoSelectionForFolder({
+        folder: folder("a", "/repos/a", "PostHog/PostHog"),
+        repositories: ["posthog/posthog"],
+        reposLoaded: true,
+        currentMode: "cloud",
+        lastUsedLocalMode: "local",
+      }).cloudRepository,
+    ).toBe("posthog/posthog");
+  });
+
+  it("switches to the last-used local mode for a local-only folder while in cloud", () => {
+    expect(
+      resolveRepoSelectionForFolder({
+        folder: folder("a", "/repos/a", null),
+        repositories: ["posthog/posthog"],
+        reposLoaded: true,
+        currentMode: "cloud",
+        lastUsedLocalMode: "worktree",
+      }),
+    ).toEqual({
+      directory: "/repos/a",
+      cloudRepository: undefined,
+      nextMode: "worktree",
+    });
+  });
+
+  it("treats a remote not in the integrations list as not cloud-capable", () => {
+    expect(
+      resolveRepoSelectionForFolder({
+        folder: folder("a", "/repos/a", "acme/private"),
+        repositories: ["posthog/posthog"],
+        reposLoaded: true,
+        currentMode: "cloud",
+        lastUsedLocalMode: "local",
+      }),
+    ).toEqual({
+      directory: "/repos/a",
+      cloudRepository: undefined,
+      nextMode: "local",
+    });
+  });
+
+  it("ignores legacy single-segment remote values", () => {
+    expect(
+      resolveRepoSelectionForFolder({
+        folder: folder("a", "/repos/a", "posthog"),
+        repositories: ["posthog"],
+        reposLoaded: true,
+        currentMode: "cloud",
+        lastUsedLocalMode: "local",
+      }),
+    ).toEqual({
+      directory: "/repos/a",
+      cloudRepository: undefined,
+      nextMode: "local",
+    });
+  });
+
+  it("never switches mode before the integrations list has loaded", () => {
+    expect(
+      resolveRepoSelectionForFolder({
+        folder: folder("a", "/repos/a", null),
+        repositories: [],
+        reposLoaded: false,
+        currentMode: "cloud",
+        lastUsedLocalMode: "local",
+      }),
+    ).toEqual({
+      directory: "/repos/a",
+      cloudRepository: undefined,
+      nextMode: undefined,
+    });
+  });
+});
+
+type HookArgs = {
+  folderId: string | undefined;
+  folders: RegisteredFolder[];
+  repositories: string[];
+  reposLoaded: boolean;
+  currentMode: WorkspaceMode;
+};
+
+function renderRepoSelectionHook(initial: HookArgs) {
+  const setSelectedDirectory = vi.fn();
+  const setSelectedRepository = vi.fn();
+  const setWorkspaceMode = vi.fn();
+  const utils = renderHook(
+    (props: HookArgs) =>
+      useInitialRepoSelectionFromFolderId({
+        folderId: props.folderId,
+        folders: props.folders,
+        repositories: props.repositories,
+        reposLoaded: props.reposLoaded,
+        currentMode: props.currentMode,
+        lastUsedLocalMode: "local",
+        setSelectedDirectory,
+        setSelectedRepository,
+        switchWorkspaceMode: setWorkspaceMode,
+      }),
+    { initialProps: initial },
+  );
+  return {
+    ...utils,
+    setSelectedDirectory,
+    setSelectedRepository,
+    setWorkspaceMode,
+  };
+}
+
+describe("useInitialRepoSelectionFromFolderId", () => {
+  it("syncs the directory immediately and the cloud repo once repos load", () => {
+    const { rerender, setSelectedDirectory, setSelectedRepository } =
+      renderRepoSelectionHook({
+        folderId: "a",
+        folders: [folder("a", "/repos/a", "posthog/posthog")],
+        repositories: [],
+        reposLoaded: false,
+        currentMode: "cloud",
+      });
+    // Directory applies right away, even before the integrations list loads.
+    expect(setSelectedDirectory).toHaveBeenCalledExactlyOnceWith("/repos/a");
+    expect(setSelectedRepository).not.toHaveBeenCalled();
+
+    rerender({
+      folderId: "a",
+      folders: [folder("a", "/repos/a", "posthog/posthog")],
+      repositories: ["posthog/posthog"],
+      reposLoaded: true,
+      currentMode: "cloud",
+    });
+    expect(setSelectedRepository).toHaveBeenCalledExactlyOnceWith(
+      "posthog/posthog",
+    );
+    // Directory is not re-applied (once per folderId).
+    expect(setSelectedDirectory).toHaveBeenCalledTimes(1);
+  });
+
+  it("switches to local mode for a local-only folder once repos load", () => {
+    const { setWorkspaceMode, setSelectedRepository } = renderRepoSelectionHook(
+      {
+        folderId: "a",
+        folders: [folder("a", "/repos/a", null)],
+        repositories: ["posthog/posthog"],
+        reposLoaded: true,
+        currentMode: "cloud",
+      },
+    );
+    expect(setWorkspaceMode).toHaveBeenCalledExactlyOnceWith("local");
+    expect(setSelectedRepository).not.toHaveBeenCalled();
+  });
+
+  it("does not re-sync when folders changes but folderId stays the same", () => {
+    const { rerender, setSelectedDirectory } = renderRepoSelectionHook({
+      folderId: "a",
+      folders: [folder("a", "/repos/a")],
+      repositories: [],
+      reposLoaded: false,
+      currentMode: "local",
+    });
+    expect(setSelectedDirectory).toHaveBeenCalledExactlyOnceWith("/repos/a");
+
+    // Simulate the user picking a different folder afterward; the changed list must
+    // not clobber their pick by re-syncing from the original folderId.
+    rerender({
+      folderId: "a",
+      folders: [folder("a", "/repos/a"), folder("b", "/repos/picked")],
+      repositories: [],
+      reposLoaded: false,
+      currentMode: "local",
+    });
+    expect(setSelectedDirectory).toHaveBeenCalledTimes(1);
+  });
+
+  it("re-syncs when folderId changes", () => {
+    const folders = [
+      folder("a", "/repos/a", "posthog/a"),
+      folder("b", "/repos/b", "posthog/b"),
+    ];
+    const { rerender, setSelectedDirectory, setSelectedRepository } =
+      renderRepoSelectionHook({
+        folderId: "a",
+        folders,
+        repositories: ["posthog/a", "posthog/b"],
+        reposLoaded: true,
+        currentMode: "cloud",
+      });
+    expect(setSelectedDirectory).toHaveBeenLastCalledWith("/repos/a");
+    expect(setSelectedRepository).toHaveBeenLastCalledWith("posthog/a");
+
+    rerender({
+      folderId: "b",
+      folders,
+      repositories: ["posthog/a", "posthog/b"],
+      reposLoaded: true,
+      currentMode: "cloud",
+    });
+    expect(setSelectedDirectory).toHaveBeenLastCalledWith("/repos/b");
+    expect(setSelectedRepository).toHaveBeenLastCalledWith("posthog/b");
+  });
+
+  it("does nothing when folderId is undefined", () => {
+    const { setSelectedDirectory, setSelectedRepository, setWorkspaceMode } =
+      renderRepoSelectionHook({
+        folderId: undefined,
+        folders: [folder("a", "/repos/a", "posthog/posthog")],
+        repositories: ["posthog/posthog"],
+        reposLoaded: true,
+        currentMode: "cloud",
+      });
+    expect(setSelectedDirectory).not.toHaveBeenCalled();
+    expect(setSelectedRepository).not.toHaveBeenCalled();
+    expect(setWorkspaceMode).not.toHaveBeenCalled();
+  });
+});
diff --git a/packages/ui/src/features/task-detail/hooks/useInitialRepoSelectionFromFolderId.ts b/packages/ui/src/features/task-detail/hooks/useInitialRepoSelectionFromFolderId.ts
new file mode 100644
index 0000000000..711494c18b
--- /dev/null
+++ b/packages/ui/src/features/task-detail/hooks/useInitialRepoSelectionFromFolderId.ts
@@ -0,0 +1,152 @@
+import { parseRepository, type WorkspaceMode } from "@posthog/shared";
+import { useEffect, useRef } from "react";
+import type { RegisteredFolder } from "../../folders/types";
+
+export interface RepoSelectionInput {
+  folder: RegisteredFolder;
+  /** Lower-cased `owner/repo` slugs the user can use in cloud mode. */
+  repositories: string[];
+  /** Whether the integrations list has finished loading (gate the mode switch). */
+  reposLoaded: boolean;
+  currentMode: WorkspaceMode;
+  /** Mode to fall back to when leaving cloud (local or worktree). */
+  lastUsedLocalMode: WorkspaceMode;
+}
+
+export interface RepoSelection {
+  /** Local directory to select (always the folder's path). */
+  directory: string;
+  /** Cloud `owner/repo` slug to select, or undefined to leave the cloud pick as-is. */
+  cloudRepository?: string;
+  /** Workspace mode to switch to, or undefined to keep the current mode. */
+  nextMode?: WorkspaceMode;
+}
+
+/**
+ * Pure resolver: given the folder a user picked (e.g. via the sidebar "+"), decide
+ * what to select in both the local-directory and cloud-repo pickers, and whether the
+ * workspace mode must change.
+ *
+ * Rules (see plan): prefill both selectors; keep the current mode when it can represent
+ * the repo; only switch when it can't — i.e. you're in cloud but the repo has no cloud
+ * counterpart (no remote slug, or the slug isn't a connected integration), in which case
+ * fall back to the last-used local mode.
+ */
+export function resolveRepoSelectionForFolder({
+  folder,
+  repositories,
+  reposLoaded,
+  currentMode,
+  lastUsedLocalMode,
+}: RepoSelectionInput): RepoSelection {
+  const slug = folder.remoteUrl?.toLowerCase();
+  // A folder is cloud-capable only when its remote is a real `owner/repo` (guards against
+  // legacy single-segment values) AND that repo is one of the user's connected integrations.
+  const cloudRepository =
+    slug && parseRepository(slug) !== null && repositories.includes(slug)
+      ? slug
+      : undefined;
+
+  const selection: RepoSelection = {
+    directory: folder.path,
+    cloudRepository,
+  };
+
+  // Only decide the mode once the integrations list has loaded, so we never switch out
+  // of cloud while the repo list is still in flight (it would look "not cloud-capable").
+  if (reposLoaded && currentMode === "cloud" && !cloudRepository) {
+    selection.nextMode = lastUsedLocalMode;
+  }
+
+  return selection;
+}
+
+export interface UseInitialRepoSelectionParams {
+  folderId: string | undefined;
+  folders: RegisteredFolder[];
+  /** Lower-cased `owner/repo` slugs the user can use in cloud mode. */
+  repositories: string[];
+  /** Whether the integrations list has finished loading (gate the mode switch). */
+  reposLoaded: boolean;
+  currentMode: WorkspaceMode;
+  /** Mode to fall back to when leaving cloud (local or worktree). */
+  lastUsedLocalMode: WorkspaceMode;
+  setSelectedDirectory: (path: string) => void;
+  setSelectedRepository: (repo: string) => void;
+  /** Switches the workspace mode (without persisting it as the user's preference). */
+  switchWorkspaceMode: (mode: WorkspaceMode) => void;
+}
+
+/**
+ * Applies {@link resolveRepoSelectionForFolder} to the live pickers when a `folderId`
+ * prefill arrives, syncing both the local directory and the cloud repo and switching
+ * mode when required. Runs once per `folderId` (guarded by refs) so it never clobbers a
+ * repo/mode the user changed afterward, and re-runs when `folderId` changes.
+ *
+ * The dependency on `folders` / `repositories` lets the sync still fire when those lists
+ * load after the initial mount.
+ */
+export function useInitialRepoSelectionFromFolderId({
+  folderId,
+  folders,
+  repositories,
+  reposLoaded,
+  currentMode,
+  lastUsedLocalMode,
+  setSelectedDirectory,
+  setSelectedRepository,
+  switchWorkspaceMode,
+}: UseInitialRepoSelectionParams) {
+  // Two guards: the local directory syncs immediately (once the folder loads), while the
+  // cloud repo + mode decision waits for the integrations list — so it isn't marked "done"
+  // before it can tell whether the repo is cloud-capable.
+  const dirInitRef = useRef<string | undefined>(undefined);
+  const repoModeInitRef = useRef<string | undefined>(undefined);
+  // Read the current mode through a ref so it doesn't retrigger the effect (which would
+  // re-run the once-per-folderId logic after we change the mode ourselves).
+  const currentModeRef = useRef(currentMode);
+  currentModeRef.current = currentMode;
+
+  useEffect(() => {
+    if (!folderId) {
+      dirInitRef.current = undefined;
+      repoModeInitRef.current = undefined;
+      return;
+    }
+    const folder = folders.find((f) => f.id === folderId);
+    if (!folder) return;
+
+    const selection = resolveRepoSelectionForFolder({
+      folder,
+      repositories,
+      reposLoaded,
+      currentMode: currentModeRef.current,
+      lastUsedLocalMode,
+    });
+
+    if (dirInitRef.current !== folderId) {
+      setSelectedDirectory(selection.directory);
+      dirInitRef.current = folderId;
+    }
+
+    // Defer the cloud/mode decision until the integrations list has loaded.
+    if (reposLoaded && repoModeInitRef.current !== folderId) {
+      if (selection.cloudRepository) {
+        setSelectedRepository(selection.cloudRepository);
+      }
+      if (selection.nextMode && selection.nextMode !== currentModeRef.current) {
+        switchWorkspaceMode(selection.nextMode);
+      }
+      repoModeInitRef.current = folderId;
+    }
+  }, [
+    folderId,
+    folders,
+    repositories,
+    reposLoaded,
+    lastUsedLocalMode,
+    setSelectedDirectory,
+    setSelectedRepository,
+    switchWorkspaceMode,
+  ]);
+}