diff --git a/e2e-tests/snapshots/turbo_edits_v2.spec.ts_turbo-edits-v2---search-replace-fallback-1.txt b/e2e-tests/snapshots/turbo_edits_v2.spec.ts_turbo-edits-v2---search-replace-fallback-1.txt
index b31deb2..61f5574 100644
--- a/e2e-tests/snapshots/turbo_edits_v2.spec.ts_turbo-edits-v2---search-replace-fallback-1.txt
+++ b/e2e-tests/snapshots/turbo_edits_v2.spec.ts_turbo-edits-v2---search-replace-fallback-1.txt
@@ -18,7 +18,7 @@
       },
       {
         "role": "user",
-        "content": "There was an issue with the following `dyad-search-replace` tags. Make sure you use `dyad-read` to read the latest version of the file and then trying to do search & replace again.\n                \nFile path: src/pages/Index.tsx\nError: Unable to apply search-replace to file"
+        "content": "There was an issue with the following `dyad-search-replace` tags. Make sure you use `dyad-read` to read the latest version of the file and then trying to do search & replace again.\n                \nFile path: src/pages/Index.tsx\nError: Unable to apply search-replace to file because: Search block did not match any content in the target file. Best fuzzy match had similarity of 0.0% (threshold: 90.0%)"
       },
       {
         "role": "assistant",
@@ -26,7 +26,7 @@
       },
       {
         "role": "user",
-        "content": "There was an issue with the following `dyad-search-replace` tags. Please fix the errors by generating the code changes using `dyad-write` tags instead.\n                \nFile path: src/pages/Index.tsx\nError: Unable to apply search-replace to file"
+        "content": "There was an issue with the following `dyad-search-replace` tags. Please fix the errors by generating the code changes using `dyad-write` tags instead.\n                \nFile path: src/pages/Index.tsx\nError: Unable to apply search-replace to file because: Search block did not match any content in the target file. Best fuzzy match had similarity of 0.0% (threshold: 90.0%)"
       }
     ],
     "stream": true,
diff --git a/src/ipc/processors/response_processor.ts b/src/ipc/processors/response_processor.ts
index 18c0a37..11267e3 100644
--- a/src/ipc/processors/response_processor.ts
+++ b/src/ipc/processors/response_processor.ts
@@ -78,7 +78,8 @@ export async function dryRunSearchReplace({
       if (!result.success || typeof result.content !== "string") {
         issues.push({
           filePath,
-          error: "Unable to apply search-replace to file",
+          error:
+            "Unable to apply search-replace to file because: " + result.error,
         });
         continue;
       }
diff --git a/src/pro/main/ipc/processors/search_replace_processor.spec.ts b/src/pro/main/ipc/processors/search_replace_processor.spec.ts
index fab9ac8..2f15660 100644
--- a/src/pro/main/ipc/processors/search_replace_processor.spec.ts
+++ b/src/pro/main/ipc/processors/search_replace_processor.spec.ts
@@ -229,8 +229,8 @@ function example() {
     expect(content).not.toContain("start();");
   });
 
-  it("errors when SEARCH and REPLACE blocks are identical", () => {
-    const original = ["x", "y", "z"].join("\n");
+  it("not an error when SEARCH and REPLACE blocks are identical", () => {
+    const original = ["x", "middle", "z"].join("\n");
     const diff = `
 <<<<<<< SEARCH
 middle
@@ -238,9 +238,9 @@ middle
 middle
 >>>>>>> REPLACE
 `;
-    const { success, error } = applySearchReplace(original, diff);
-    expect(success).toBe(false);
-    expect(error).toMatch(/Search and replace blocks are identical/i);
+    const { success, content } = applySearchReplace(original, diff);
+    expect(success).toBe(true);
+    expect(content).toBe(original);
   });
 
   it("errors when SEARCH block matches multiple locations (ambiguous)", () => {
diff --git a/src/pro/main/ipc/processors/search_replace_processor.ts b/src/pro/main/ipc/processors/search_replace_processor.ts
index 8b19d74..edc1d5d 100644
--- a/src/pro/main/ipc/processors/search_replace_processor.ts
+++ b/src/pro/main/ipc/processors/search_replace_processor.ts
@@ -3,6 +3,9 @@
 import { parseSearchReplaceBlocks } from "@/pro/shared/search_replace_parser";
 import { distance } from "fastest-levenshtein";
 import { normalizeString } from "@/utils/text_normalization";
+import log from "electron-log";
+
+const logger = log.scope("search_replace_processor");
 
 // Minimum similarity threshold for fuzzy matching (0 to 1, where 1 is exact match)
 const FUZZY_MATCH_THRESHOLD = 0.9;
@@ -201,12 +204,9 @@ export function applySearchReplace(
       };
     }
 
-    // If search and replace are identical, it's a no-op and should be treated as an error
+    // If search and replace are identical, it's a no-op and is just treated as a warning
     if (searchLines.join("\n") === replaceLines.join("\n")) {
-      return {
-        success: false,
-        error: "Search and replace blocks are identical",
-      };
+      logger.warn("Search and replace blocks are identical");
     }
 
     let matchIndex = -1;