diff --git a/KEYBINDINGS.md b/KEYBINDINGS.md
index 7734d4ebe90179f5babb1724f2180587d36aadb9..16fce1a4d9f9016558ac4c7666b4390e68a72c87 100644
--- a/KEYBINDINGS.md
+++ b/KEYBINDINGS.md
@@ -24,7 +24,7 @@ See the full schema for more details: [`packages/contracts/src/keybindings.ts`](
   { "key": "mod+n", "command": "terminal.new", "when": "terminalFocus" },
   { "key": "mod+w", "command": "terminal.close", "when": "terminalFocus" },
   { "key": "mod+shift+o", "command": "chat.new" },
-  { "key": "mod+shift+n", "command": "chat.newSameGitState" },
+  { "key": "mod+shift+n", "command": "chat.newLocal" },
   { "key": "mod+o", "command": "editor.openFavorite" }
 ]
 ```
@@ -49,8 +49,8 @@ Invalid rules are ignored. Invalid config files are ignored. Warnings are logged
 - `terminal.split`: split terminal (in focused terminal context by default)
 - `terminal.new`: create new terminal (in focused terminal context by default)
 - `terminal.close`: close/kill the focused terminal (in focused terminal context by default)
-- `chat.new`: create a new chat thread for the active project
-- `chat.newSameGitState`: create a new chat thread preserving the active thread's branch/worktree state
+- `chat.new`: create a new chat thread preserving the active thread's branch/worktree state
+- `chat.newLocal`: create a new local chat thread for the active project (no worktree context)
 - `editor.openFavorite`: open current project/worktree in the last-used editor
 
 ### Key Syntax
diff --git a/apps/server/src/keybindings.test.ts b/apps/server/src/keybindings.test.ts
index 18ecbabc03970e539c00a3e22c5652f89a6266bf..364ebc4862cdf48d63f3a048fe0ea8460b0a7122 100644
--- a/apps/server/src/keybindings.test.ts
+++ b/apps/server/src/keybindings.test.ts
@@ -71,7 +71,7 @@ describe("server keybindings", () => {
     );
   });
 
-  it("defines defaults for terminal.close and chat.newSameGitState", () => {
+  it("defines defaults for terminal.close and chat.newLocal", () => {
     assert.deepInclude(DEFAULT_KEYBINDINGS, {
       key: "mod+w",
       command: "terminal.close",
@@ -79,7 +79,7 @@ describe("server keybindings", () => {
     });
     assert.deepInclude(DEFAULT_KEYBINDINGS, {
       key: "mod+shift+n",
-      command: "chat.newSameGitState",
+      command: "chat.newLocal",
     });
   });
 });
diff --git a/apps/server/src/keybindings.ts b/apps/server/src/keybindings.ts
index 5750b4f4bea65f97d48c2468831def0d8476b368..a78e25b31b6a67d5d00e1c0b28e2064c3a67ac5a 100644
--- a/apps/server/src/keybindings.ts
+++ b/apps/server/src/keybindings.ts
@@ -30,7 +30,7 @@ export const DEFAULT_KEYBINDINGS: ReadonlyArray<KeybindingRule> = [
   { key: "mod+n", command: "terminal.new", when: "terminalFocus" },
   { key: "mod+w", command: "terminal.close", when: "terminalFocus" },
   { key: "mod+shift+o", command: "chat.new" },
-  { key: "mod+shift+n", command: "chat.newSameGitState" },
+  { key: "mod+shift+n", command: "chat.newLocal" },
   { key: "mod+o", command: "editor.openFavorite" },
 ];
 
diff --git a/apps/web/src/components/ChatView.tsx b/apps/web/src/components/ChatView.tsx
index d308ec63f5d21607cdfa2be7bee2b59c09e28303..ccbbd10d780745eb86650a560404ded6460a37c8 100644
--- a/apps/web/src/components/ChatView.tsx
+++ b/apps/web/src/components/ChatView.tsx
@@ -279,6 +279,10 @@ export default function ChatView() {
     () => shortcutLabelForCommand(keybindings, "terminal.new"),
     [keybindings],
   );
+  const closeTerminalShortcutLabel = useMemo(
+    () => shortcutLabelForCommand(keybindings, "terminal.close"),
+    [keybindings],
+  );
 
   const envLocked = Boolean(
     activeThread &&
@@ -1464,6 +1468,7 @@ export default function ChatView() {
           onNewTerminal={createNewTerminal}
           splitShortcutLabel={splitTerminalShortcutLabel ?? undefined}
           newShortcutLabel={newTerminalShortcutLabel ?? undefined}
+          closeShortcutLabel={closeTerminalShortcutLabel ?? undefined}
           onActiveTerminalChange={activateTerminal}
           onCloseTerminal={closeTerminal}
           onHeightChange={(height) =>
diff --git a/apps/web/src/components/Sidebar.tsx b/apps/web/src/components/Sidebar.tsx
index 2a3deef38b05c89bb07949449bb611b8140f776b..2c29a6da4fef1e01c1bc0e2696def26ef5e29a8a 100644
--- a/apps/web/src/components/Sidebar.tsx
+++ b/apps/web/src/components/Sidebar.tsx
@@ -7,7 +7,7 @@ import { useTheme } from "../hooks/useTheme";
 import { DEFAULT_MODEL } from "../model-logic";
 import { derivePendingApprovals } from "../session-logic";
 import { useStore } from "../store";
-import { isChatNewSameGitStateShortcut, isChatNewShortcut } from "../keybindings";
+import { isChatNewLocalShortcut, isChatNewShortcut } from "../keybindings";
 import {
   DEFAULT_THREAD_TERMINAL_HEIGHT,
   DEFAULT_THREAD_TERMINAL_ID,
@@ -388,14 +388,11 @@ export default function Sidebar() {
   useEffect(() => {
     const onWindowKeyDown = (event: KeyboardEvent) => {
       const activeThread = state.threads.find((t) => t.id === state.activeThreadId);
-      if (isChatNewSameGitStateShortcut(event, keybindings)) {
+      if (isChatNewLocalShortcut(event, keybindings)) {
         const projectId = activeThread?.projectId ?? state.projects[0]?.id;
         if (!projectId) return;
         event.preventDefault();
-        handleNewThread(projectId, {
-          branch: activeThread?.branch ?? null,
-          worktreePath: activeThread?.worktreePath ?? null,
-        });
+        handleNewThread(projectId);
         return;
       }
 
@@ -403,7 +400,10 @@ export default function Sidebar() {
       const projectId = activeThread?.projectId ?? state.projects[0]?.id;
       if (!projectId) return;
       event.preventDefault();
-      handleNewThread(projectId);
+      handleNewThread(projectId, {
+        branch: activeThread?.branch ?? null,
+        worktreePath: activeThread?.worktreePath ?? null,
+      });
     };
 
     window.addEventListener("keydown", onWindowKeyDown);
diff --git a/apps/web/src/components/ThreadTerminalDrawer.tsx b/apps/web/src/components/ThreadTerminalDrawer.tsx
index d74ba49a0800f221529cdfa1abe582bbeafefa40..1c35459a9b11fab296db05e6cf7485f008df48d1 100644
--- a/apps/web/src/components/ThreadTerminalDrawer.tsx
+++ b/apps/web/src/components/ThreadTerminalDrawer.tsx
@@ -1,5 +1,5 @@
 import { FitAddon } from "@xterm/addon-fit";
-import { Plus, SquareSplitHorizontal, TerminalSquare, Trash2 } from "lucide-react";
+import { Plus, SquareSplitHorizontal, TerminalSquare, Trash2, XIcon } from "lucide-react";
 import { type NativeApi } from "@t3tools/contracts";
 import { Terminal, type ITheme } from "@xterm/xterm";
 import {
@@ -18,10 +18,7 @@ import {
   preferredTerminalEditor,
   resolvePathLinkTarget,
 } from "../terminal-links";
-import {
-  isTerminalClearShortcut,
-  terminalNavigationShortcutData,
-} from "../keybindings";
+import { isTerminalClearShortcut, terminalNavigationShortcutData } from "../keybindings";
 import {
   DEFAULT_THREAD_TERMINAL_HEIGHT,
   DEFAULT_THREAD_TERMINAL_ID,
@@ -161,10 +158,7 @@ function TerminalViewport({
       try {
         await api.terminal.write({ threadId, terminalId, data });
       } catch (error) {
-        writeSystemMessage(
-          activeTerminal,
-          error instanceof Error ? error.message : fallbackError,
-        );
+        writeSystemMessage(activeTerminal, error instanceof Error ? error.message : fallbackError);
       }
     };
 
@@ -429,6 +423,7 @@ interface ThreadTerminalDrawerProps {
   onNewTerminal: () => void;
   splitShortcutLabel?: string | undefined;
   newShortcutLabel?: string | undefined;
+  closeShortcutLabel?: string | undefined;
   onActiveTerminalChange: (terminalId: string) => void;
   onCloseTerminal: (terminalId: string) => void;
   onHeightChange: (height: number) => void;
@@ -444,15 +439,9 @@ interface TerminalActionButtonProps {
 function TerminalActionButton({ label, className, onClick, children }: TerminalActionButtonProps) {
   return (
     <Popover>
-      <PopoverTrigger openOnHover
-        render={
-          <button
-            type="button"
-            className={className}
-            onClick={onClick}
-            aria-label={label}
-          />
-        }
+      <PopoverTrigger
+        openOnHover
+        render={<button type="button" className={className} onClick={onClick} aria-label={label} />}
       >
         {children}
       </PopoverTrigger>
@@ -483,6 +472,7 @@ export default function ThreadTerminalDrawer({
   onNewTerminal,
   splitShortcutLabel,
   newShortcutLabel,
+  closeShortcutLabel,
   onActiveTerminalChange,
   onCloseTerminal,
   onHeightChange,
@@ -598,6 +588,9 @@ export default function ThreadTerminalDrawer({
       ),
     [normalizedTerminalIds],
   );
+  const closeTerminalActionLabel = closeShortcutLabel
+    ? `Close Terminal (${closeShortcutLabel})`
+    : "Close Terminal";
 
   useEffect(() => {
     onHeightChangeRef.current = onHeightChange;
@@ -709,7 +702,9 @@ export default function ThreadTerminalDrawer({
             <TerminalActionButton
               className="p-1 text-foreground/90 transition-colors hover:bg-accent"
               onClick={onSplitTerminal}
-              label={splitShortcutLabel ? `Split Terminal (${splitShortcutLabel})` : "Split Terminal"}
+              label={
+                splitShortcutLabel ? `Split Terminal (${splitShortcutLabel})` : "Split Terminal"
+              }
             >
               <SquareSplitHorizontal className="size-3.25" />
             </TerminalActionButton>
@@ -725,7 +720,7 @@ export default function ThreadTerminalDrawer({
             <TerminalActionButton
               className="p-1 text-foreground/90 transition-colors hover:bg-accent"
               onClick={() => onCloseTerminal(resolvedActiveTerminalId)}
-              label="Close Terminal"
+              label={closeTerminalActionLabel}
             >
               <Trash2 className="size-3.25" />
             </TerminalActionButton>
@@ -805,16 +800,14 @@ export default function ThreadTerminalDrawer({
                   <TerminalActionButton
                     className="inline-flex h-full items-center border-l border-border/70 px-1 text-foreground/90 transition-colors hover:bg-accent/70"
                     onClick={onNewTerminal}
-                    label={
-                      newShortcutLabel ? `New Terminal (${newShortcutLabel})` : "New Terminal"
-                    }
+                    label={newShortcutLabel ? `New Terminal (${newShortcutLabel})` : "New Terminal"}
                   >
                     <Plus className="size-3.25" />
                   </TerminalActionButton>
                   <TerminalActionButton
                     className="inline-flex h-full items-center border-l border-border/70 px-1 text-foreground/90 transition-colors hover:bg-accent/70"
                     onClick={() => onCloseTerminal(resolvedActiveTerminalId)}
-                    label="Close Terminal"
+                    label={closeTerminalActionLabel}
                   >
                     <Trash2 className="size-3.25" />
                   </TerminalActionButton>
@@ -852,6 +845,9 @@ export default function ThreadTerminalDrawer({
                       >
                         {terminalGroup.terminalIds.map((terminalId) => {
                           const isActive = terminalId === resolvedActiveTerminalId;
+                          const closeTerminalLabel = `Close ${
+                            terminalLabelById.get(terminalId) ?? "terminal"
+                          }${isActive && closeShortcutLabel ? ` (${closeShortcutLabel})` : ""}`;
                           return (
                             <div
                               key={terminalId}
@@ -875,18 +871,30 @@ export default function ThreadTerminalDrawer({
                                 </span>
                               </button>
                               {normalizedTerminalIds.length > 1 && (
-                                <button
-                                  type="button"
-                                  className="rounded px-1 text-xs font-medium leading-none text-muted-foreground opacity-0 transition hover:bg-accent hover:text-foreground group-hover:opacity-100"
-                                  onClick={(event) => {
-                                    event.stopPropagation();
-                                    onCloseTerminal(terminalId);
-                                  }}
-                                  aria-label={`Close ${terminalLabelById.get(terminalId) ?? "terminal"}`}
-                                  title={`Close ${terminalLabelById.get(terminalId) ?? "terminal"}`}
-                                >
-                                  ×
-                                </button>
+                                <Popover>
+                                  <PopoverTrigger
+                                    openOnHover
+                                    render={
+                                      <button
+                                        type="button"
+                                        className="inline-flex size-3.5 items-center justify-center rounded text-xs font-medium leading-none text-muted-foreground opacity-0 transition hover:bg-accent hover:text-foreground group-hover:opacity-100"
+                                        onClick={() => onCloseTerminal(terminalId)}
+                                        aria-label={closeTerminalLabel}
+                                      />
+                                    }
+                                  >
+                                    <XIcon className="size-2.5" />
+                                  </PopoverTrigger>
+                                  <PopoverPopup
+                                    tooltipStyle
+                                    side="bottom"
+                                    sideOffset={6}
+                                    align="center"
+                                    className="pointer-events-none select-none"
+                                  >
+                                    {closeTerminalLabel}
+                                  </PopoverPopup>
+                                </Popover>
                               )}
                             </div>
                           );
diff --git a/apps/web/src/keybindings.test.ts b/apps/web/src/keybindings.test.ts
index 25df37f4316b54dd55753dcc57a91dade6c8d589..2a3b9c3244e4dbba13dc5252971c884c056e8324 100644
--- a/apps/web/src/keybindings.test.ts
+++ b/apps/web/src/keybindings.test.ts
@@ -7,9 +7,9 @@ import {
   type ResolvedKeybindingsConfig,
 } from "@t3tools/contracts";
 import {
-  isChatNewSameGitStateShortcut,
   formatShortcutLabel,
   isChatNewShortcut,
+  isChatNewLocalShortcut,
   isOpenFavoriteEditorShortcut,
   isTerminalClearShortcut,
   isTerminalCloseShortcut,
@@ -91,7 +91,7 @@ const DEFAULT_BINDINGS = compile([
     whenAst: whenIdentifier("terminalFocus"),
   },
   { shortcut: modShortcut("o", { shiftKey: true }), command: "chat.new" },
-  { shortcut: modShortcut("n", { shiftKey: true }), command: "chat.newSameGitState" },
+  { shortcut: modShortcut("n", { shiftKey: true }), command: "chat.newLocal" },
   { shortcut: modShortcut("o"), command: "editor.openFavorite" },
 ]);
 
@@ -245,9 +245,9 @@ describe("chat/editor shortcuts", () => {
     );
   });
 
-  it("matches chat.newSameGitState shortcut", () => {
+  it("matches chat.newLocal shortcut", () => {
     assert.isTrue(
-      isChatNewSameGitStateShortcut(
+      isChatNewLocalShortcut(
         event({ key: "n", metaKey: true, shiftKey: true }),
         DEFAULT_BINDINGS,
         {
@@ -256,7 +256,7 @@ describe("chat/editor shortcuts", () => {
       ),
     );
     assert.isTrue(
-      isChatNewSameGitStateShortcut(
+      isChatNewLocalShortcut(
         event({ key: "n", ctrlKey: true, shiftKey: true }),
         DEFAULT_BINDINGS,
         {
diff --git a/apps/web/src/keybindings.ts b/apps/web/src/keybindings.ts
index 070dcae67b1585f3c4b2a09287423c26c0c33306..859602e97cb6f9afb8e5a65b555cd8ebb1003f5d 100644
--- a/apps/web/src/keybindings.ts
+++ b/apps/web/src/keybindings.ts
@@ -206,12 +206,12 @@ export function isChatNewShortcut(
   return matchesCommandShortcut(event, keybindings, "chat.new", options);
 }
 
-export function isChatNewSameGitStateShortcut(
+export function isChatNewLocalShortcut(
   event: ShortcutEventLike,
   keybindings: ResolvedKeybindingsConfig,
   options?: ShortcutMatchOptions,
 ): boolean {
-  return matchesCommandShortcut(event, keybindings, "chat.newSameGitState", options);
+  return matchesCommandShortcut(event, keybindings, "chat.newLocal", options);
 }
 
 export function isOpenFavoriteEditorShortcut(
diff --git a/packages/contracts/src/keybindings.test.ts b/packages/contracts/src/keybindings.test.ts
index 7e782a3dbd9f40176795b832045f6d250b4e3c9b..12726ea720b8f7e0e3cad46e9f50d49f53ea6baf 100644
--- a/packages/contracts/src/keybindings.test.ts
+++ b/packages/contracts/src/keybindings.test.ts
@@ -20,6 +20,12 @@ describe("keybindings contracts", () => {
       command: "terminal.close",
     });
     assert.strictEqual(parsedClose.command, "terminal.close");
+
+    const parsedLocal = keybindingRuleSchema.parse({
+      key: "mod+shift+n",
+      command: "chat.newLocal",
+    });
+    assert.strictEqual(parsedLocal.command, "chat.newLocal");
   });
 
   it("rejects invalid command values", () => {
diff --git a/packages/contracts/src/keybindings.ts b/packages/contracts/src/keybindings.ts
index 62dc84062959d5a8a0e4d461b3f66502121a4cbf..d9d8bfbf9eefd4228dfa9e8fdc1907d315c39f52 100644
--- a/packages/contracts/src/keybindings.ts
+++ b/packages/contracts/src/keybindings.ts
@@ -6,7 +6,7 @@ export const keybindingCommandSchema = z.enum([
   "terminal.new",
   "terminal.close",
   "chat.new",
-  "chat.newSameGitState",
+  "chat.newLocal",
   "editor.openFavorite",
 ]);