diff --git a/src/vs/workbench/contrib/terminalContrib/chat/browser/terminalChat.ts b/src/vs/workbench/contrib/terminalContrib/chat/browser/terminalChat.ts
index c7d1dbf065897b..cf6b1d459705c8 100644
--- a/src/vs/workbench/contrib/terminalContrib/chat/browser/terminalChat.ts
+++ b/src/vs/workbench/contrib/terminalContrib/chat/browser/terminalChat.ts
@@ -44,6 +44,7 @@ export const enum TerminalChatContextKeyStrings {
 	ChatResponseContainsMultipleCodeBlocks = 'terminalChatResponseContainsMultipleCodeBlocks',
 	ChatResponseSupportsIssueReporting = 'terminalChatResponseSupportsIssueReporting',
 	ChatSessionResponseVote = 'terminalChatSessionResponseVote',
+	ChatUsesAgentHost = 'terminalChatUsesAgentHost',
 	ChatHasTerminals = 'hasChatTerminals',
 	ChatHasHiddenTerminals = 'hasHiddenChatTerminals',
 	ChatToolHasInstance = 'chatTerminalToolHasInstance',
@@ -78,6 +79,9 @@ export namespace TerminalChatContextKeys {
 	/** A chat agent exists for the terminal location */
 	export const hasChatAgent = new RawContextKey<boolean>(TerminalChatContextKeyStrings.ChatAgentRegistered, false, localize('chatAgentRegisteredContextKey', "Whether a chat agent is registered for the terminal location."));
 
+	/** Whether the chat session is backed by the Agent Host */
+	export const usesAgentHost = new RawContextKey<boolean>(TerminalChatContextKeyStrings.ChatUsesAgentHost, false, localize('terminalChatUsesAgentHostContextKey', "Whether the terminal chat session is backed by the Agent Host."));
+
 	/** Has terminals created via chat */
 	export const hasChatTerminals = new RawContextKey<boolean>(TerminalChatContextKeyStrings.ChatHasTerminals, false, localize('terminalHasChatTerminals', "Whether there are any chat terminals."));
 
diff --git a/src/vs/workbench/contrib/terminalContrib/chat/browser/terminalChatActions.ts b/src/vs/workbench/contrib/terminalContrib/chat/browser/terminalChatActions.ts
index fb1da4e5d6bb2e..dd968d0224c957 100644
--- a/src/vs/workbench/contrib/terminalContrib/chat/browser/terminalChatActions.ts
+++ b/src/vs/workbench/contrib/terminalContrib/chat/browser/terminalChatActions.ts
@@ -300,6 +300,7 @@ registerActiveXtermAction({
 		ChatContextKeys.enabled,
 		ContextKeyExpr.or(TerminalContextKeys.processSupported, TerminalContextKeys.terminalHasBeenCreated),
 		TerminalChatContextKeys.requestActive.negate(),
+		TerminalChatContextKeys.usesAgentHost.negate(),
 	),
 	icon: Codicon.chatSparkle,
 	menu: [{
@@ -307,7 +308,7 @@ registerActiveXtermAction({
 		group: 'zzz',
 		order: 1,
 		isHiddenByDefault: true,
-		when: ContextKeyExpr.and(TerminalChatContextKeys.responseContainsCodeBlock, TerminalChatContextKeys.requestActive.negate()),
+		when: ContextKeyExpr.and(TerminalChatContextKeys.responseContainsCodeBlock, TerminalChatContextKeys.requestActive.negate(), TerminalChatContextKeys.usesAgentHost.negate()),
 	}],
 	run: (_xterm, _accessor, activeInstance) => {
 		if (isDetachedTerminalInstance(activeInstance)) {
diff --git a/src/vs/workbench/contrib/terminalContrib/chat/browser/terminalChatWidget.ts b/src/vs/workbench/contrib/terminalContrib/chat/browser/terminalChatWidget.ts
index 7d59ed19721679..0cb7920135c8cb 100644
--- a/src/vs/workbench/contrib/terminalContrib/chat/browser/terminalChatWidget.ts
+++ b/src/vs/workbench/contrib/terminalContrib/chat/browser/terminalChatWidget.ts
@@ -86,6 +86,7 @@ export class TerminalChatWidget extends Disposable {
 	private readonly _requestActiveContextKey: IContextKey<boolean>;
 	private readonly _responseContainsCodeBlockContextKey: IContextKey<boolean>;
 	private readonly _responseContainsMulitpleCodeBlocksContextKey: IContextKey<boolean>;
+	private readonly _usesAgentHostContextKey: IContextKey<boolean>;
 
 	private _messages = this._store.add(new Emitter<Message>());
 
@@ -130,6 +131,7 @@ export class TerminalChatWidget extends Disposable {
 		this._requestActiveContextKey = TerminalChatContextKeys.requestActive.bindTo(contextKeyService);
 		this._responseContainsCodeBlockContextKey = TerminalChatContextKeys.responseContainsCodeBlock.bindTo(contextKeyService);
 		this._responseContainsMulitpleCodeBlocksContextKey = TerminalChatContextKeys.responseContainsMultipleCodeBlocks.bindTo(contextKeyService);
+		this._usesAgentHostContextKey = TerminalChatContextKeys.usesAgentHost.bindTo(contextKeyService);
 
 		this._container = document.createElement('div');
 		this._container.classList.add('terminal-inline-chat');
@@ -367,10 +369,12 @@ export class TerminalChatWidget extends Disposable {
 			if (lockToAgent) {
 				this._inlineChatWidget.chatWidget.lockToCodingAgent(lockToAgent.name, lockToAgent.displayName, lockToAgent.type, lockToAgent.agentHostProviderId);
 				this._agentHostSessionResource = model.sessionResource;
+				this._usesAgentHostContextKey.set(true);
 				this._refreshAgentHostSessionMetadata();
 			} else {
 				this._inlineChatWidget.chatWidget.unlockFromCodingAgent();
 				this._agentHostSessionResource = undefined;
+				this._usesAgentHostContextKey.set(false);
 			}
 			this._resetPlaceholder();
 		});
@@ -425,6 +429,7 @@ export class TerminalChatWidget extends Disposable {
 		this.cancel();
 		this._model.clear();
 		this._agentHostSessionResource = undefined;
+		this._usesAgentHostContextKey.reset();
 		this._inlineChatWidget.chatWidget.unlockFromCodingAgent();
 		this._responseContainsCodeBlockContextKey.reset();
 		this._requestActiveContextKey.reset();
diff --git a/src/vs/workbench/contrib/terminalContrib/chat/test/browser/terminalChatActions.test.ts b/src/vs/workbench/contrib/terminalContrib/chat/test/browser/terminalChatActions.test.ts
new file mode 100644
index 00000000000000..f38fd3e09be4bf
--- /dev/null
+++ b/src/vs/workbench/contrib/terminalContrib/chat/test/browser/terminalChatActions.test.ts
@@ -0,0 +1,40 @@
+/*---------------------------------------------------------------------------------------------
+ *  Copyright (c) Microsoft Corporation. All rights reserved.
+ *  Licensed under the MIT License. See License.txt in the project root for license information.
+ *--------------------------------------------------------------------------------------------*/
+
+import assert from 'assert';
+import { ensureNoDisposablesAreLeakedInTestSuite } from '../../../../../../base/test/common/utils.js';
+import { isIMenuItem, MenuRegistry } from '../../../../../../platform/actions/common/actions.js';
+import { ContextKeyValue, IContext } from '../../../../../../platform/contextkey/common/contextkey.js';
+import '../../browser/terminalChatActions.js';
+import { MENU_TERMINAL_CHAT_WIDGET_STATUS, TerminalChatCommandId, TerminalChatContextKeys } from '../../browser/terminalChat.js';
+
+suite('Terminal Chat actions', () => {
+
+	ensureNoDisposablesAreLeakedInTestSuite();
+
+	function hasViewInChat(overrides: Record<string, ContextKeyValue>): boolean {
+		const context: IContext = {
+			getValue: <T extends ContextKeyValue>(key: string): T | undefined => overrides[key] as T | undefined,
+		};
+		return MenuRegistry.getMenuItems(MENU_TERMINAL_CHAT_WIDGET_STATUS)
+			.filter(isIMenuItem)
+			.some(item => item.command.id === TerminalChatCommandId.ViewInChat && (!item.when || item.when.evaluate(context)));
+	}
+
+	test('shows View in Chat only for local terminal chat sessions', () => {
+		const base = {
+			[TerminalChatContextKeys.responseContainsCodeBlock.key]: true,
+			[TerminalChatContextKeys.requestActive.key]: false,
+		};
+
+		assert.deepStrictEqual({
+			local: hasViewInChat({ ...base, [TerminalChatContextKeys.usesAgentHost.key]: false }),
+			agentHost: hasViewInChat({ ...base, [TerminalChatContextKeys.usesAgentHost.key]: true }),
+		}, {
+			local: true,
+			agentHost: false,
+		});
+	});
+});