diff --git a/apps/web/src/components/CommandPalette.logic.test.ts b/apps/web/src/components/CommandPalette.logic.test.ts
index 902b7e87773..f3079a0e349 100644
--- a/apps/web/src/components/CommandPalette.logic.test.ts
+++ b/apps/web/src/components/CommandPalette.logic.test.ts
@@ -5,6 +5,7 @@ import {
   buildThreadActionItems,
   enumerateCommandPaletteItems,
   filterCommandPaletteGroups,
+  resolveBrowseTabCompletion,
   type CommandPaletteGroup,
 } from "./CommandPalette.logic";
 
@@ -38,6 +39,109 @@ describe("enumerateCommandPaletteItems", () => {
 const LOCAL_ENVIRONMENT_ID = EnvironmentId.make("environment-local");
 const PROJECT_ID = ProjectId.make("project-1");
 
+describe("resolveBrowseTabCompletion", () => {
+  const entries = [
+    { name: "alpha", fullPath: "/workspace/alpha" },
+    { name: "alpine", fullPath: "/workspace/alpine" },
+  ];
+
+  it("uses the highlighted directory", () => {
+    expect(
+      resolveBrowseTabCompletion({
+        exactEntry: null,
+        filteredEntries: entries,
+        highlightedItemValue: "browse:/workspace/alpine",
+      }),
+    ).toEqual({ kind: "entry", entry: entries[1] });
+  });
+
+  it("uses the first directory when none is highlighted", () => {
+    expect(
+      resolveBrowseTabCompletion({
+        exactEntry: null,
+        filteredEntries: entries,
+        highlightedItemValue: null,
+      }),
+    ).toEqual({ kind: "entry", entry: entries[0] });
+  });
+
+  it("preserves the highlighted parent-directory action", () => {
+    expect(
+      resolveBrowseTabCompletion({
+        exactEntry: null,
+        filteredEntries: entries,
+        highlightedItemValue: "browse:up",
+      }),
+    ).toEqual({ kind: "up" });
+  });
+
+  it("returns null when there are no matching directories", () => {
+    expect(
+      resolveBrowseTabCompletion({
+        exactEntry: null,
+        filteredEntries: [],
+        highlightedItemValue: null,
+      }),
+    ).toBeNull();
+  });
+
+  it("does not enter the first child when the completed path has no leaf filter", () => {
+    expect(
+      resolveBrowseTabCompletion({
+        allowFirstEntryFallback: false,
+        exactEntry: null,
+        filteredEntries: entries,
+        highlightedItemValue: null,
+      }),
+    ).toBeNull();
+  });
+
+  it("uses the case-sensitive exact entry before the first prefix match", () => {
+    const caseVariants = [
+      { name: "Docs", fullPath: "/workspace/Docs" },
+      { name: "docs", fullPath: "/workspace/docs" },
+    ];
+
+    expect(
+      resolveBrowseTabCompletion({
+        exactEntry: caseVariants[1] ?? null,
+        filteredEntries: caseVariants,
+        highlightedItemValue: null,
+      }),
+    ).toEqual({ kind: "entry", entry: caseVariants[1] });
+  });
+
+  it("keeps a highlighted row ahead of a different exact entry", () => {
+    const caseVariants = [
+      { name: "Docs", fullPath: "/workspace/Docs" },
+      { name: "docs", fullPath: "/workspace/docs" },
+    ];
+
+    expect(
+      resolveBrowseTabCompletion({
+        exactEntry: caseVariants[1] ?? null,
+        filteredEntries: caseVariants,
+        highlightedItemValue: "browse:/workspace/Docs",
+      }),
+    ).toEqual({ kind: "entry", entry: caseVariants[0] });
+  });
+
+  it("uses an exact entry when a stored highlight no longer resolves", () => {
+    const caseVariants = [
+      { name: "Docs", fullPath: "/workspace/Docs" },
+      { name: "docs", fullPath: "/workspace/docs" },
+    ];
+
+    expect(
+      resolveBrowseTabCompletion({
+        exactEntry: caseVariants[1] ?? null,
+        filteredEntries: caseVariants,
+        highlightedItemValue: "browse:/workspace/removed",
+      }),
+    ).toEqual({ kind: "entry", entry: caseVariants[1] });
+  });
+});
+
 function makeThread(overrides: Partial<Thread> = {}): Thread {
   return {
     id: ThreadId.make("thread-1"),
diff --git a/apps/web/src/components/CommandPalette.logic.ts b/apps/web/src/components/CommandPalette.logic.ts
index f69c38e1a0f..8927b42e5f5 100644
--- a/apps/web/src/components/CommandPalette.logic.ts
+++ b/apps/web/src/components/CommandPalette.logic.ts
@@ -102,6 +102,38 @@ export function filterBrowseEntries(input: {
   return { filteredEntries, highlightedEntry, exactEntry };
 }
 
+export type BrowseTabCompletion =
+  | { readonly kind: "up" }
+  | { readonly kind: "entry"; readonly entry: FilesystemBrowseEntry };
+
+export function resolveBrowseTabCompletion(input: {
+  allowFirstEntryFallback?: boolean;
+  exactEntry: FilesystemBrowseEntry | null;
+  filteredEntries: ReadonlyArray<FilesystemBrowseEntry>;
+  highlightedItemValue: string | null;
+}): BrowseTabCompletion | null {
+  if (input.highlightedItemValue === "browse:up") {
+    return { kind: "up" };
+  }
+
+  if (input.highlightedItemValue?.startsWith("browse:")) {
+    const highlightedPath = input.highlightedItemValue.slice("browse:".length);
+    const highlightedEntry = input.filteredEntries.find(
+      (entry) => entry.fullPath === highlightedPath,
+    );
+    if (highlightedEntry) {
+      return { kind: "entry", entry: highlightedEntry };
+    }
+  }
+
+  if (input.exactEntry) {
+    return { kind: "entry", entry: input.exactEntry };
+  }
+
+  const firstEntry = input.allowFirstEntryFallback === false ? undefined : input.filteredEntries[0];
+  return firstEntry ? { kind: "entry", entry: firstEntry } : null;
+}
+
 export function normalizeSearchText(value: string): string {
   return value.trim().toLowerCase().replace(/\s+/g, " ");
 }
diff --git a/apps/web/src/components/CommandPalette.tsx b/apps/web/src/components/CommandPalette.tsx
index aa7547c8ba6..6686b4e20be 100644
--- a/apps/web/src/components/CommandPalette.tsx
+++ b/apps/web/src/components/CommandPalette.tsx
@@ -102,6 +102,7 @@ import {
   getCommandPaletteMode,
   ITEM_ICON_CLASS,
   RECENT_THREAD_LIMIT,
+  resolveBrowseTabCompletion,
 } from "./CommandPalette.logic";
 import { orderItemsByPreferredIds, sortLogicalProjectsForSidebar } from "./Sidebar.logic";
 import { resolveEnvironmentOptionLabel } from "./BranchToolbar.logic";
@@ -1699,6 +1700,30 @@ function OpenCommandPaletteDialog(props: {
       }
     }
 
+    const isPlainTab =
+      event.key === "Tab" && !event.shiftKey && !event.altKey && !event.ctrlKey && !event.metaKey;
+
+    if (isBrowsing && isPlainTab) {
+      event.preventDefault();
+
+      if (relativePathNeedsActiveProject || (isBrowsePending && browseResult === null)) {
+        return;
+      }
+
+      const completion = resolveBrowseTabCompletion({
+        allowFirstEntryFallback: browseFilterQuery.length > 0,
+        exactEntry: exactBrowseEntry,
+        filteredEntries: filteredBrowseEntries,
+        highlightedItemValue,
+      });
+      if (completion?.kind === "up") {
+        browseUp();
+      } else if (completion?.kind === "entry") {
+        browseTo(completion.entry.name);
+      }
+      return;
+    }
+
     if (addProjectCloneFlow?.step === "repository" && event.key === "Enter") {
       event.preventDefault();
       void submitAddProjectCloneFlow();