diff --git a/crates/sidebar/src/sidebar.rs b/crates/sidebar/src/sidebar.rs
index 6eef1741927..4b8514c9f67 100644
--- a/crates/sidebar/src/sidebar.rs
+++ b/crates/sidebar/src/sidebar.rs
@@ -422,6 +422,23 @@ struct SidebarContents {
     has_open_projects: bool,
 }
 
+/// Identity-and-layout key for a [`ListEntry`] used to preserve measured list items
+/// across rebuilds. Equal shapes must render to the same height; add any new
+/// height-affecting state here.
+#[derive(Debug, PartialEq, Eq)]
+enum EntryShape {
+    ProjectHeader {
+        key: ProjectGroupKey,
+        // Toggles the "No threads yet" empty-state row when not collapsed.
+        has_threads: bool,
+        // Determines whether the "No threads yet" row is rendered (only shown when
+        // `!is_collapsed && !has_threads`).
+        is_collapsed: bool,
+    },
+    Thread(ThreadId),
+    Terminal(TerminalId),
+}
+
 impl SidebarContents {
     fn is_thread_notified(&self, thread_id: &agent_ui::ThreadId) -> bool {
         self.notified_threads.contains(thread_id)
@@ -1837,13 +1854,14 @@ impl Sidebar {
         }
 
         let had_notifications = self.has_notifications(cx);
-        let scroll_position = self.list_state.logical_scroll_top();
+        let previous_shapes: Vec<EntryShape> =
+            self.entry_shapes(multi_workspace.read(cx)).collect();
 
         self.rebuild_contents(cx);
         self.refresh_draft_editor_observations(cx);
 
-        self.list_state.reset(self.contents.entries.len());
-        self.list_state.scroll_to(scroll_position);
+        // Preserve measurements for unchanged entries so sticky headers do not flicker.
+        self.apply_list_state_diff(&previous_shapes, multi_workspace.read(cx));
 
         if had_notifications != self.has_notifications(cx) {
             multi_workspace.update(cx, |_, cx| {
@@ -1854,6 +1872,56 @@ impl Sidebar {
         cx.notify();
     }
 
+    /// Splices only the changed entry range, leaving unchanged item measurements intact.
+    fn apply_list_state_diff(
+        &self,
+        previous_shapes: &[EntryShape],
+        multi_workspace: &MultiWorkspace,
+    ) {
+        let mut new_iter = self.entry_shapes(multi_workspace);
+        let mut prefix_len = 0;
+        let leading_new = loop {
+            match (previous_shapes.get(prefix_len), new_iter.next()) {
+                (Some(prev), Some(next)) if *prev == next => prefix_len += 1,
+                (None, None) => return,
+                (_, leading) => break leading,
+            }
+        };
+
+        let new_tail: Vec<EntryShape> = leading_new.into_iter().chain(new_iter).collect();
+        let prev_tail = &previous_shapes[prefix_len..];
+        let suffix_len = prev_tail
+            .iter()
+            .rev()
+            .zip(new_tail.iter().rev())
+            .take_while(|(prev, next)| prev == next)
+            .count();
+
+        let old_changed = prefix_len..previous_shapes.len() - suffix_len;
+        let new_changed_count = new_tail.len() - suffix_len;
+        self.list_state.splice(old_changed, new_changed_count);
+    }
+
+    fn entry_shapes<'a>(
+        &'a self,
+        multi_workspace: &'a MultiWorkspace,
+    ) -> impl Iterator<Item = EntryShape> + 'a {
+        self.contents.entries.iter().map(move |entry| match entry {
+            ListEntry::ProjectHeader {
+                key, has_threads, ..
+            } => EntryShape::ProjectHeader {
+                key: key.clone(),
+                has_threads: *has_threads,
+                is_collapsed: multi_workspace
+                    .group_state_by_key(key)
+                    .map(|state| !state.expanded)
+                    .unwrap_or(false),
+            },
+            ListEntry::Thread(thread) => EntryShape::Thread(thread.metadata.thread_id),
+            ListEntry::Terminal(terminal) => EntryShape::Terminal(terminal.metadata.terminal_id),
+        })
+    }
+
     /// Re-establishes subscriptions to each visible draft's message editor
     /// so we rebuild entries (and their displayed titles) as the user types.
     fn refresh_draft_editor_observations(&mut self, cx: &mut Context<Self>) {
diff --git a/crates/sidebar/src/sidebar_tests.rs b/crates/sidebar/src/sidebar_tests.rs
index a7a7263daa8..3fcb27faf4f 100644
--- a/crates/sidebar/src/sidebar_tests.rs
+++ b/crates/sidebar/src/sidebar_tests.rs
@@ -605,6 +605,153 @@ fn visible_entries_as_strings(
     })
 }
 
+#[gpui::test]
+async fn test_thread_metadata_update_preserves_sticky_header_measurements(cx: &mut TestAppContext) {
+    let (fs, project_a) = init_multi_project_test(&["/project-a", "/project-b"], cx).await;
+    let (multi_workspace, cx) =
+        cx.add_window_view(|window, cx| MultiWorkspace::test_new(project_a.clone(), window, cx));
+    let sidebar = setup_sidebar(&multi_workspace, cx);
+    add_test_project("/project-b", &fs, &multi_workspace, cx).await;
+
+    save_thread_metadata(
+        acp::SessionId::new(Arc::from("project-a-thread")),
+        Some("Project A Thread".into()),
+        chrono::TimeZone::with_ymd_and_hms(&Utc, 2024, 1, 1, 0, 0, 0).unwrap(),
+        None,
+        None,
+        &project_a,
+        cx,
+    );
+    save_thread_metadata_with_main_paths(
+        "project-b-thread",
+        "Project B Thread",
+        PathList::new(&[PathBuf::from("/project-b")]),
+        PathList::new(&[PathBuf::from("/project-b")]),
+        chrono::TimeZone::with_ymd_and_hms(&Utc, 2024, 1, 2, 0, 0, 0).unwrap(),
+        cx,
+    );
+
+    cx.draw(
+        gpui::point(px(0.), px(0.)),
+        gpui::size(px(400.), px(240.)),
+        |_, _| sidebar.clone().into_any_element(),
+    );
+    cx.run_until_parked();
+
+    let next_header_ix = sidebar.read_with(cx, |sidebar, _| {
+        assert!(
+            sidebar.contents.project_header_indices.len() == 2,
+            "test setup should render exctly two project headers"
+        );
+        sidebar.contents.project_header_indices[1]
+    });
+
+    sidebar.update_in(cx, |sidebar, _window, cx| {
+        sidebar.list_state.scroll_to(gpui::ListOffset {
+            item_ix: next_header_ix - 1,
+            offset_in_item: px(24.),
+        });
+        cx.notify();
+    });
+    cx.draw(
+        gpui::point(px(0.), px(0.)),
+        gpui::size(px(400.), px(240.)),
+        |_, _| sidebar.clone().into_any_element(),
+    );
+    cx.run_until_parked();
+
+    let bounds_before = sidebar.read_with(cx, |sidebar, _| {
+        sidebar
+            .list_state
+            .bounds_for_item(next_header_ix)
+            .expect("next project header should be measured before metadata update")
+    });
+
+    save_thread_metadata(
+        acp::SessionId::new(Arc::from("project-a-thread")),
+        Some("Renamed Project A Thread".into()),
+        chrono::TimeZone::with_ymd_and_hms(&Utc, 2024, 1, 1, 0, 1, 0).unwrap(),
+        None,
+        None,
+        &project_a,
+        cx,
+    );
+
+    let bounds_after = sidebar.read_with(cx, |sidebar, _| {
+        sidebar
+            .list_state
+            .bounds_for_item(next_header_ix)
+            .expect("same-shape metadata update should preserve next header measurements")
+    });
+    assert_eq!(bounds_before, bounds_after);
+}
+
+#[gpui::test]
+async fn test_thread_status_update_does_not_reset_list_measurements(cx: &mut TestAppContext) {
+    // When a thread's status changes (e.g. Running -> Completed after sending a message), the
+    // shape sequence is unchanged, so `update_entries` should not reset the underlying
+    // `ListState`. Resetting throws away measured item bounds for one frame, which makes the
+    // sticky project header flicker between its pushed-off and fully-on-screen positions.
+    let project = init_test_project("/my-project", cx).await;
+    let (multi_workspace, cx) =
+        cx.add_window_view(|window, cx| MultiWorkspace::test_new(project.clone(), window, cx));
+    let sidebar = setup_sidebar(&multi_workspace, cx);
+
+    save_n_test_threads(2, &project, cx).await;
+    cx.run_until_parked();
+
+    let before = sidebar.read_with(cx, |sidebar, app| {
+        sidebar
+            .entry_shapes(multi_workspace.read(app))
+            .collect::<Vec<_>>()
+    });
+    sidebar.update_in(cx, |sidebar, _window, cx| sidebar.update_entries(cx));
+    cx.run_until_parked();
+    let after = sidebar.read_with(cx, |sidebar, app| {
+        sidebar
+            .entry_shapes(multi_workspace.read(app))
+            .collect::<Vec<_>>()
+    });
+
+    assert_eq!(
+        before, after,
+        "a no-op rebuild should produce an identical shape sequence"
+    );
+}
+
+#[gpui::test]
+async fn test_collapse_changes_entry_shape(cx: &mut TestAppContext) {
+    let project = init_test_project("/my-project", cx).await;
+    let (multi_workspace, cx) =
+        cx.add_window_view(|window, cx| MultiWorkspace::test_new(project.clone(), window, cx));
+    let sidebar = setup_sidebar(&multi_workspace, cx);
+
+    save_n_test_threads(2, &project, cx).await;
+    cx.run_until_parked();
+
+    let project_group_key = project.read_with(cx, |project, cx| project.project_group_key(cx));
+
+    let before = sidebar.read_with(cx, |sidebar, app| {
+        sidebar
+            .entry_shapes(multi_workspace.read(app))
+            .collect::<Vec<_>>()
+    });
+    sidebar.update_in(cx, |sidebar, window, cx| {
+        sidebar.toggle_collapse(&project_group_key, window, cx);
+    });
+    cx.run_until_parked();
+    let after = sidebar.read_with(cx, |sidebar, app| {
+        sidebar
+            .entry_shapes(multi_workspace.read(app))
+            .collect::<Vec<_>>()
+    });
+
+    assert_ne!(
+        before, after,
+        "collapsing the project group should change the shape sequence so the list resets"
+    );
+}
+
 #[gpui::test]
 async fn test_serialization_round_trip(cx: &mut TestAppContext) {
     let project = init_test_project("/my-project", cx).await;