product · May 21, 2026
Zed Launches Terminal Threads in v1.3.5 for AI Agent Integration
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Zed Industries released Terminal Threads in version 1.3.5 on May 20, 2026. The feature hosts terminal-based workflows such as claude, amp, or codex as managed threads in the Agent Panel sidebar, scoped to specific projects or worktrees with automatic title updates, keyboard navigation, and notifications. Terminal Threads allow continued use of existing Claude subscriptions for Claude Code users after Anthropic's June 15, 2026 shift to a separate Agent SDK credit system. Zed users retain subscription limits via the official Claude CLI in the terminal while alternatives include switching to providers such as Copilot or DeepSeek. Cameron Mcloughlin noted local model usage in Zed's agent grew 3x over the prior 10 weeks.