diff --git a/e2e-tests/engine.spec.ts b/e2e-tests/engine.spec.ts
index d8d432f..693165b 100644
--- a/e2e-tests/engine.spec.ts
+++ b/e2e-tests/engine.spec.ts
@@ -10,13 +10,13 @@ testSkipIfWindows("send message to engine", async ({ po }) => {
 });
 
 testSkipIfWindows(
-  "send message to engine - smart context balanced",
+  "send message to engine - smart context conservative",
   async ({ po }) => {
     await po.setUpDyadPro();
     const proModesDialog = await po.openProModesDialog({
       location: "home-chat-input-container",
     });
-    await proModesDialog.setSmartContextMode("balanced");
+    await proModesDialog.setSmartContextMode("conservative");
     await proModesDialog.close();
     await po.selectModel({ provider: "Google", model: "Gemini 2.5 Pro" });
     await po.sendPrompt("[dump] tc=turbo-edits");
diff --git a/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context---auto-includes-only-1.txt b/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context---auto-includes-only-1.txt
index d9aa061..c2e539c 100644
--- a/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context---auto-includes-only-1.txt
+++ b/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context---auto-includes-only-1.txt
@@ -98,7 +98,8 @@
         }
       ],
       "enable_lazy_edits": true,
-      "enable_smart_files_context": true
+      "enable_smart_files_context": true,
+      "smart_context_mode": "balanced"
     }
   },
   "headers": {
diff --git a/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context-1.txt b/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context-1.txt
index 94c022c..e67f4db 100644
--- a/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context-1.txt
+++ b/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context-1.txt
@@ -68,7 +68,8 @@
         }
       ],
       "enable_lazy_edits": true,
-      "enable_smart_files_context": true
+      "enable_smart_files_context": true,
+      "smart_context_mode": "balanced"
     }
   },
   "headers": {
diff --git a/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context-3.txt b/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context-3.txt
index fb4b834..d34619f 100644
--- a/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context-3.txt
+++ b/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context-3.txt
@@ -56,7 +56,8 @@
         }
       ],
       "enable_lazy_edits": true,
-      "enable_smart_files_context": false
+      "enable_smart_files_context": false,
+      "smart_context_mode": "balanced"
     }
   },
   "headers": {
diff --git a/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context-4.txt b/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context-4.txt
index 24d09a7..35c9a03 100644
--- a/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context-4.txt
+++ b/e2e-tests/snapshots/context_manage.spec.ts_manage-context---smart-context-4.txt
@@ -114,7 +114,8 @@
         }
       ],
       "enable_lazy_edits": true,
-      "enable_smart_files_context": false
+      "enable_smart_files_context": false,
+      "smart_context_mode": "balanced"
     }
   },
   "headers": {
diff --git a/e2e-tests/snapshots/engine.spec.ts_regular-auto-should-send-message-to-engine-1.txt b/e2e-tests/snapshots/engine.spec.ts_regular-auto-should-send-message-to-engine-1.txt
index de0be17..3fbec28 100644
--- a/e2e-tests/snapshots/engine.spec.ts_regular-auto-should-send-message-to-engine-1.txt
+++ b/e2e-tests/snapshots/engine.spec.ts_regular-auto-should-send-message-to-engine-1.txt
@@ -413,7 +413,8 @@
         }
       ],
       "enable_lazy_edits": true,
-      "enable_smart_files_context": false
+      "enable_smart_files_context": false,
+      "smart_context_mode": "balanced"
     }
   },
   "headers": {
diff --git a/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---anthropic-claude-sonnet-4-1.txt b/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---anthropic-claude-sonnet-4-1.txt
index 9240ce1..8d1176d 100644
--- a/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---anthropic-claude-sonnet-4-1.txt
+++ b/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---anthropic-claude-sonnet-4-1.txt
@@ -408,7 +408,8 @@
         }
       ],
       "enable_lazy_edits": true,
-      "enable_smart_files_context": true
+      "enable_smart_files_context": true,
+      "smart_context_mode": "balanced"
     }
   },
   "headers": {
diff --git a/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---openai-gpt-5-1.txt b/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---openai-gpt-5-1.txt
index 7ec315e..4d49f0f 100644
--- a/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---openai-gpt-5-1.txt
+++ b/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---openai-gpt-5-1.txt
@@ -408,7 +408,8 @@
         }
       ],
       "enable_lazy_edits": true,
-      "enable_smart_files_context": true
+      "enable_smart_files_context": true,
+      "smart_context_mode": "balanced"
     }
   },
   "headers": {
diff --git a/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---smart-context-balanced-1.aria.yml b/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---smart-context-conservative-1.aria.yml
similarity index 100%
rename from e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---smart-context-balanced-1.aria.yml
rename to e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---smart-context-conservative-1.aria.yml
diff --git a/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---smart-context-balanced-1.txt b/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---smart-context-conservative-1.txt
similarity index 99%
rename from e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---smart-context-balanced-1.txt
rename to e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---smart-context-conservative-1.txt
index 659e63c..d8734f3 100644
--- a/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---smart-context-balanced-1.txt
+++ b/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine---smart-context-conservative-1.txt
@@ -414,7 +414,7 @@
       ],
       "enable_lazy_edits": true,
       "enable_smart_files_context": true,
-      "smart_context_mode": "balanced"
+      "smart_context_mode": "conservative"
     }
   },
   "headers": {
diff --git a/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine-1.txt b/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine-1.txt
index 50ae7a2..659e63c 100644
--- a/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine-1.txt
+++ b/e2e-tests/snapshots/engine.spec.ts_send-message-to-engine-1.txt
@@ -413,7 +413,8 @@
         }
       ],
       "enable_lazy_edits": true,
-      "enable_smart_files_context": true
+      "enable_smart_files_context": true,
+      "smart_context_mode": "balanced"
     }
   },
   "headers": {
diff --git a/e2e-tests/snapshots/engine.spec.ts_smart-auto-should-send-message-to-engine-1.txt b/e2e-tests/snapshots/engine.spec.ts_smart-auto-should-send-message-to-engine-1.txt
index cf9e74a..5077082 100644
--- a/e2e-tests/snapshots/engine.spec.ts_smart-auto-should-send-message-to-engine-1.txt
+++ b/e2e-tests/snapshots/engine.spec.ts_smart-auto-should-send-message-to-engine-1.txt
@@ -413,7 +413,8 @@
         }
       ],
       "enable_lazy_edits": true,
-      "enable_smart_files_context": true
+      "enable_smart_files_context": true,
+      "smart_context_mode": "balanced"
     }
   },
   "headers": {
diff --git a/e2e-tests/snapshots/smart_context_options.spec.ts_switching-smart-context-mode-saves-the-right-setting-4.txt b/e2e-tests/snapshots/smart_context_options.spec.ts_switching-smart-context-mode-saves-the-right-setting-4.txt
index c2c5fc5..de586c9 100644
--- a/e2e-tests/snapshots/smart_context_options.spec.ts_switching-smart-context-mode-saves-the-right-setting-4.txt
+++ b/e2e-tests/snapshots/smart_context_options.spec.ts_switching-smart-context-mode-saves-the-right-setting-4.txt
@@ -19,6 +19,7 @@
   "lastShownReleaseNotesVersion": "[scrubbed]",
   "enableProLazyEditsMode": true,
   "enableProSmartFilesContextMode": true,
+  "proSmartContextOption": "conservative",
   "selectedTemplateId": "react",
   "selectedChatMode": "build",
   "enableAutoFixProblems": false,
diff --git a/e2e-tests/snapshots/thinking_budget.spec.ts_thinking-budget-2.txt b/e2e-tests/snapshots/thinking_budget.spec.ts_thinking-budget-2.txt
index 004d590..72c950b 100644
--- a/e2e-tests/snapshots/thinking_budget.spec.ts_thinking-budget-2.txt
+++ b/e2e-tests/snapshots/thinking_budget.spec.ts_thinking-budget-2.txt
@@ -421,7 +421,8 @@
         }
       ],
       "enable_lazy_edits": true,
-      "enable_smart_files_context": true
+      "enable_smart_files_context": true,
+      "smart_context_mode": "balanced"
     }
   },
   "headers": {
diff --git a/e2e-tests/snapshots/thinking_budget.spec.ts_thinking-budget-4.txt b/e2e-tests/snapshots/thinking_budget.spec.ts_thinking-budget-4.txt
index 1c0aff9..a176adc 100644
--- a/e2e-tests/snapshots/thinking_budget.spec.ts_thinking-budget-4.txt
+++ b/e2e-tests/snapshots/thinking_budget.spec.ts_thinking-budget-4.txt
@@ -429,7 +429,8 @@
         }
       ],
       "enable_lazy_edits": true,
-      "enable_smart_files_context": true
+      "enable_smart_files_context": true,
+      "smart_context_mode": "balanced"
     }
   },
   "headers": {
diff --git a/e2e-tests/snapshots/thinking_budget.spec.ts_thinking-budget-6.txt b/e2e-tests/snapshots/thinking_budget.spec.ts_thinking-budget-6.txt
index 0ad1390..27127f2 100644
--- a/e2e-tests/snapshots/thinking_budget.spec.ts_thinking-budget-6.txt
+++ b/e2e-tests/snapshots/thinking_budget.spec.ts_thinking-budget-6.txt
@@ -437,7 +437,8 @@
         }
       ],
       "enable_lazy_edits": true,
-      "enable_smart_files_context": true
+      "enable_smart_files_context": true,
+      "smart_context_mode": "balanced"
     }
   },
   "headers": {
diff --git a/src/components/ProModeSelector.tsx b/src/components/ProModeSelector.tsx
index ce5bc87..4fe28f5 100644
--- a/src/components/ProModeSelector.tsx
+++ b/src/components/ProModeSelector.tsx
@@ -36,7 +36,7 @@ export function ProModeSelector() {
     } else if (newValue === "conservative") {
       updateSettings({
         enableProSmartFilesContextMode: true,
-        proSmartContextOption: undefined, // Conservative is the default when enabled but no option set
+        proSmartContextOption: "conservative",
       });
     } else if (newValue === "balanced") {
       updateSettings({
@@ -197,8 +197,12 @@ function SmartContextSelector({
     if (settings?.proSmartContextOption === "balanced") {
       return "balanced";
     }
-    // If enabled but no option set (undefined/falsey), it's conservative
-    return "conservative";
+    if (settings?.proSmartContextOption === "conservative") {
+      return "conservative";
+    }
+    // Keep in sync with getModelClient in get_model_client.ts
+    // If enabled but no option set (undefined/falsey), it's balanced
+    return "balanced";
   };
 
   const currentValue = getCurrentValue();
diff --git a/src/ipc/utils/get_model_client.ts b/src/ipc/utils/get_model_client.ts
index d7390a9..2ff8a80 100644
--- a/src/ipc/utils/get_model_client.ts
+++ b/src/ipc/utils/get_model_client.ts
@@ -85,7 +85,8 @@ export async function getModelClient(
                   ? false
                   : settings.enableProLazyEditsMode,
               enableSmartFilesContext: settings.enableProSmartFilesContextMode,
-              smartContextMode: settings.proSmartContextOption,
+              // Keep in sync with getCurrentValue in ProModeSelector.tsx
+              smartContextMode: settings.proSmartContextOption ?? "balanced",
             },
             settings,
           })
diff --git a/src/ipc/utils/llm_engine_provider.ts b/src/ipc/utils/llm_engine_provider.ts
index 7378996..780b750 100644
--- a/src/ipc/utils/llm_engine_provider.ts
+++ b/src/ipc/utils/llm_engine_provider.ts
@@ -44,7 +44,7 @@ or to provide a custom fetch implementation for e.g. testing.
   dyadOptions: {
     enableLazyEdits?: boolean;
     enableSmartFilesContext?: boolean;
-    smartContextMode?: "balanced";
+    smartContextMode?: "balanced" | "conservative";
   };
   settings: UserSettings;
 }
diff --git a/src/lib/schemas.ts b/src/lib/schemas.ts
index dd2d10e..097a283 100644
--- a/src/lib/schemas.ts
+++ b/src/lib/schemas.ts
@@ -164,7 +164,7 @@ export const UserSettingsSchema = z.object({
   thinkingBudget: z.enum(["low", "medium", "high"]).optional(),
   enableProLazyEditsMode: z.boolean().optional(),
   enableProSmartFilesContextMode: z.boolean().optional(),
-  proSmartContextOption: z.enum(["balanced"]).optional(),
+  proSmartContextOption: z.enum(["balanced", "conservative"]).optional(),
   selectedTemplateId: z.string(),
   enableSupabaseWriteSqlMigration: z.boolean().optional(),
   selectedChatMode: ChatModeSchema.optional(),