Turbo edits v2 (#1653)

Fixes #1222 #1646 

TODOs
- [x] description?
- [x] collect errors across all files for turbo edits
- [x] be forgiving around whitespaces
- [x] write e2e tests
- [x] do more manual testing across different models



<!-- CURSOR_SUMMARY -->
---

> [!NOTE]
> Adds Turbo Edits v2 search-replace flow with settings/UI selector,
parser/renderer, dry-run validation + fallback, proposal integration,
and comprehensive tests; updates licensing.
> 
> - **Engine/Processing**:
> - Add `dyad-search-replace` end-to-end: parsing
(`getDyadSearchReplaceTags`), markdown rendering (`DyadSearchReplace`),
and application (`applySearchReplace`) with dry-run validation and
fallback to `dyad-write`.
> - Inject Turbo Edits v2 system prompt; toggle via
`isTurboEditsV2Enabled`; disable classic lazy edits when v2 is on.
> - Include search-replace edits in proposals and full-response
processing.
> - **Settings/UI**:
> - Introduce `proLazyEditsMode` (`off`|`v1`|`v2`) and helper selectors;
update `ProModeSelector` with Turbo Edits and Smart Context selectors
(`data-testid`s).
> - **LLM/token flow**:
> - Construct system prompt conditionally; update token counting and
chat stream to validate and repair search-replace responses.
> - **Tests**:
> - Add unit tests for search-replace processor; e2e tests for Turbo
Edits v2 and options; fixtures and snapshots.
> - **Licensing/Docs**:
> - Add `src/pro/LICENSE` (FSL 1.1 ALv2 future), update root `LICENSE`
and README license section.
> - **Tooling**:
> - Update `.prettierignore`; enhance test helpers (selectors, path
normalization, snapshot filtering).
> 
> <sup>Written by [Cursor
Bugbot](https://cursor.com/dashboard?tab=bugbot) for commit
7aefa02bfae2fe22a25c7d87f3c4c326f820f1e6. This will update automatically
on new commits. Configure
[here](https://cursor.com/dashboard?tab=bugbot).</sup>
<!-- /CURSOR_SUMMARY -->

.prettierignore

@@ -4,4 +4,6 @@ coverage
 # generated files
 drizzle/
 **/pnpm-lock.yaml
-**/snapshots/**
+**/snapshots/**
+# test fixtures
+e2e-tests/fixtures/**

LICENSE

@@ -1,3 +1,7 @@
+Portions of this software are licensed as follows:
+
+* All content that resides under the "src/pro/" directory of this repository, if that directory exists, is licensed under the license defined in "src/pro/LICENSE".
+* Content outside of the above mentioned directories or restrictions above is available under the Apache 2 license as defined below.
 
                                  Apache License
                            Version 2.0, January 2004

README.md

@@ -27,3 +27,8 @@ Join our growing community of AI app builders on **Reddit**: [r/dyadbuilders](ht
 **Dyad** is open-source (Apache 2.0 licensed).
 
 If you're interested in contributing to dyad, please read our [contributing](./CONTRIBUTING.md) doc.
+
+## License
+
+- All the code in this repo outside of `src/pro` is open-source and licensed under Apache 2.0 - see [LICENSE](./LICENSE).
+- All the code in this repo within `src/pro` is fair-source and licensed under [Functional Source License 1.1 Apache 2.0](https://fsl.software/) - see [LICENSE](./src/pro/LICENSE).

e2e-tests/fixtures/engine/turbo-edits-v2-trigger-fallback.md

@@ -0,0 +1,10 @@
+Example with turbo edit v2
+<dyad-search-replace path="src/pages/Index.tsx">
+<<<<<<< SEARCH
+        // Intentionally DO NOT MATCH ANYTHING TO TRIGGER FALLBACK
+        <h1 className="text-4xl font-bold mb-4">Welcome to Your Blank App</h1>
+=======
+        <h1 className="text-4xl font-bold mb-4">Welcome to the UPDATED App</h1>
+>>>>>>> REPLACE
+</dyad-search-replace>
+End of turbo edit

e2e-tests/fixtures/engine/turbo-edits-v2.md

@@ -0,0 +1,9 @@
+Example with turbo edit v2
+<dyad-search-replace path="src/pages/Index.tsx">
+<<<<<<< SEARCH
+        <h1 className="text-4xl font-bold mb-4">Welcome to Your Blank App</h1>
+=======
+        <h1 className="text-4xl font-bold mb-4">Welcome to the UPDATED App</h1>
+>>>>>>> REPLACE
+</dyad-search-replace>
+End of turbo edit

e2e-tests/helpers/test_helper.ts

@@ -73,14 +73,23 @@ class ProModesDialog {
 
   async setSmartContextMode(mode: "balanced" | "off" | "conservative") {
     await this.page
+      .getByTestId("smart-context-selector")
       .getByRole("button", {
         name: mode.charAt(0).toUpperCase() + mode.slice(1),
       })
       .click();
   }
 
-  async toggleTurboEdits() {
+  async setTurboEditsMode(mode: "off" | "classic" | "search-replace") {
-    await this.page.getByRole("switch", { name: "Turbo Edits" }).click();
+    await this.page
+      .getByTestId("turbo-edits-selector")
+      .getByRole("button", {
+        name:
+          mode === "search-replace"
+            ? "Search & replace"
+            : mode.charAt(0).toUpperCase() + mode.slice(1),
+      })
+      .click();
   }
 }
 
@@ -362,7 +371,7 @@ export class PageObject {
     await expect(this.page.getByRole("dialog")).toMatchAriaSnapshot();
   }
 
-  async snapshotAppFiles({ name }: { name: string }) {
+  async snapshotAppFiles({ name, files }: { name: string; files?: string[] }) {
     const currentAppName = await this.getCurrentAppName();
     if (!currentAppName) {
       throw new Error("No app selected");
@@ -374,10 +383,17 @@ export class PageObject {
     }
 
     await expect(() => {
-      const filesData = generateAppFilesSnapshotData(appPath, appPath);
+      let filesData = generateAppFilesSnapshotData(appPath, appPath);
 
       // Sort by relative path to ensure deterministic output
       filesData.sort((a, b) => a.relativePath.localeCompare(b.relativePath));
+      if (files) {
+        filesData = filesData.filter((file) =>
+          files.some(
+            (f) => normalizePath(f) === normalizePath(file.relativePath),
+          ),
+        );
+      }
 
       const snapshotContent = filesData
         .map(
@@ -1232,3 +1248,7 @@ function prettifyDump(
     })
     .join("\n\n");
 }
+
+function normalizePath(path: string): string {
+  return path.replace(/\\/g, "/");
+}

e2e-tests/snapshots/turbo_edits_options.spec.ts_switching-turbo-edits-saves-the-right-setting-1.txt

@@ -0,0 +1,28 @@
+{
+  "selectedModel": {
+    "name": "auto",
+    "provider": "auto"
+  },
+  "providerSettings": {
+    "auto": {
+      "apiKey": {
+        "value": "testdyadkey",
+        "encryptionType": "plaintext"
+      }
+    }
+  },
+  "telemetryConsent": "unset",
+  "telemetryUserId": "[UUID]",
+  "hasRunBefore": true,
+  "enableDyadPro": true,
+  "experiments": {},
+  "lastShownReleaseNotesVersion": "[scrubbed]",
+  "enableProLazyEditsMode": true,
+  "enableProSmartFilesContextMode": true,
+  "selectedTemplateId": "react",
+  "selectedChatMode": "build",
+  "enableAutoFixProblems": false,
+  "enableAutoUpdate": true,
+  "releaseChannel": "stable",
+  "isTestMode": true
+}

e2e-tests/snapshots/turbo_edits_options.spec.ts_switching-turbo-edits-saves-the-right-setting-2.txt

@@ -0,0 +1,29 @@
+{
+  "selectedModel": {
+    "name": "auto",
+    "provider": "auto"
+  },
+  "providerSettings": {
+    "auto": {
+      "apiKey": {
+        "value": "testdyadkey",
+        "encryptionType": "plaintext"
+      }
+    }
+  },
+  "telemetryConsent": "unset",
+  "telemetryUserId": "[UUID]",
+  "hasRunBefore": true,
+  "enableDyadPro": true,
+  "experiments": {},
+  "lastShownReleaseNotesVersion": "[scrubbed]",
+  "enableProLazyEditsMode": true,
+  "proLazyEditsMode": "v1",
+  "enableProSmartFilesContextMode": true,
+  "selectedTemplateId": "react",
+  "selectedChatMode": "build",
+  "enableAutoFixProblems": false,
+  "enableAutoUpdate": true,
+  "releaseChannel": "stable",
+  "isTestMode": true
+}

e2e-tests/snapshots/turbo_edits_options.spec.ts_switching-turbo-edits-saves-the-right-setting-3.txt

@@ -0,0 +1,29 @@
+{
+  "selectedModel": {
+    "name": "auto",
+    "provider": "auto"
+  },
+  "providerSettings": {
+    "auto": {
+      "apiKey": {
+        "value": "testdyadkey",
+        "encryptionType": "plaintext"
+      }
+    }
+  },
+  "telemetryConsent": "unset",
+  "telemetryUserId": "[UUID]",
+  "hasRunBefore": true,
+  "enableDyadPro": true,
+  "experiments": {},
+  "lastShownReleaseNotesVersion": "[scrubbed]",
+  "enableProLazyEditsMode": true,
+  "proLazyEditsMode": "v2",
+  "enableProSmartFilesContextMode": true,
+  "selectedTemplateId": "react",
+  "selectedChatMode": "build",
+  "enableAutoFixProblems": false,
+  "enableAutoUpdate": true,
+  "releaseChannel": "stable",
+  "isTestMode": true
+}

e2e-tests/snapshots/turbo_edits_options.spec.ts_switching-turbo-edits-saves-the-right-setting-4.txt

@@ -0,0 +1,29 @@
+{
+  "selectedModel": {
+    "name": "auto",
+    "provider": "auto"
+  },
+  "providerSettings": {
+    "auto": {
+      "apiKey": {
+        "value": "testdyadkey",
+        "encryptionType": "plaintext"
+      }
+    }
+  },
+  "telemetryConsent": "unset",
+  "telemetryUserId": "[UUID]",
+  "hasRunBefore": true,
+  "enableDyadPro": true,
+  "experiments": {},
+  "lastShownReleaseNotesVersion": "[scrubbed]",
+  "enableProLazyEditsMode": false,
+  "proLazyEditsMode": "off",
+  "enableProSmartFilesContextMode": true,
+  "selectedTemplateId": "react",
+  "selectedChatMode": "build",
+  "enableAutoFixProblems": false,
+  "enableAutoUpdate": true,
+  "releaseChannel": "stable",
+  "isTestMode": true
+}

e2e-tests/snapshots/turbo_edits_v2.spec.ts_after-search-replace-fallback.txt

@@ -0,0 +1,2 @@
+=== src/pages/Index.tsx ===
+// FILE IS REPLACED WITH FALLBACK WRITE.

e2e-tests/snapshots/turbo_edits_v2.spec.ts_after-search-replace.txt

@@ -0,0 +1,20 @@
+=== src/pages/Index.tsx ===
+// Update this page (the content is just a fallback if you fail to update the page)
+
+import { MadeWithDyad } from "@/components/made-with-dyad";
+
+const Index = () => {
+  return (
+    <div className="min-h-screen flex items-center justify-center bg-gray-100">
+      <div className="text-center">
+        <h1 className="text-4xl font-bold mb-4">Welcome to the UPDATED App</h1>
+        <p className="text-xl text-gray-600">
+          Start building your amazing project here!
+        </p>
+      </div>
+      <MadeWithDyad />
+    </div>
+  );
+};
+
+export default Index;

e2e-tests/snapshots/turbo_edits_v2.spec.ts_turbo-edits-v2---search-replace-approve-1.aria.yml

@@ -0,0 +1,15 @@
+- paragraph: tc=turbo-edits-v2
+- paragraph: Example with turbo edit v2
+- img
+- text: Search & Replace Index.tsx
+- img
+- text: src/pages/Index.tsx
+- paragraph: End of turbo edit
+- button:
+  - img
+- img
+- text: less than a minute ago
+- button "Request ID":
+  - img
+- button "Retry":
+  - img

e2e-tests/snapshots/turbo_edits_v2.spec.ts_turbo-edits-v2---search-replace-dump-2.txt

@@ -0,0 +1,153 @@
+===
+role: system
+message: 
+${BUILD_SYSTEM_PREFIX}
+
+# Tech Stack
+
+- You are building a React application.
+- Use TypeScript.
+- Use React Router. KEEP the routes in src/App.tsx
+- Always put source code in the src folder.
+- Put pages into src/pages/
+- Put components into src/components/
+- The main page (default page) is src/pages/Index.tsx
+- UPDATE the main page to include the new components. OTHERWISE, the user can NOT see any components!
+- ALWAYS try to use the shadcn/ui library.
+- Tailwind CSS: always use Tailwind CSS for styling components. Utilize Tailwind classes extensively for layout, spacing, colors, and other design aspects.
+
+Available packages and libraries:
+
+- The lucide-react package is installed for icons.
+- You ALREADY have ALL the shadcn/ui components and their dependencies installed. So you don't need to install them again.
+- You have ALL the necessary Radix UI components installed.
+- Use prebuilt components from the shadcn/ui library after importing them. Note that these files shouldn't be edited, so make new components if you need to change them.
+
+
+${BUILD_SYSTEM_POSTFIX}
+
+# Search-replace file edits
+
+- Request to apply PRECISE, TARGETED modifications to an existing file by searching for specific sections of content and replacing them. This tool is for SURGICAL EDITS ONLY - specific changes to existing code.
+- You can perform multiple distinct search and replace operations within a single `dyad-search-replace` call by providing multiple SEARCH/REPLACE blocks. This is the preferred way to make several targeted changes efficiently.
+- The SEARCH section must match exactly ONE existing content section - it must be unique within the file, including whitespace and indentation.
+- When applying the diffs, be extra careful to remember to change any closing brackets or other syntax that may be affected by the diff farther down in the file.
+- ALWAYS make as many changes in a single 'dyad-search-replace' call as possible using multiple SEARCH/REPLACE blocks.
+- Do not use both `dyad-write` and `dyad-search-replace` on the same file within a single response.
+- Include a brief description of the changes you are making in the `description` parameter.
+
+Diff format:
+```
+<<<<<<< SEARCH
+[exact content to find including whitespace]
+=======
+[new content to replace with]
+>>>>>>> REPLACE
+```
+
+Example:
+
+Original file:
+```
+def calculate_total(items):
+    total = 0
+    for item in items:
+        total += item
+    return total
+```
+
+Search/Replace content:
+```
+<<<<<<< SEARCH
+def calculate_total(items):
+    total = 0
+    for item in items:
+        total += item
+    return total
+=======
+def calculate_total(items):
+    """Calculate total with 10% markup"""
+    return sum(item * 1.1 for item in items)
+>>>>>>> REPLACE
+
+```
+
+Search/Replace content with multiple edits:
+```
+<<<<<<< SEARCH
+def calculate_total(items):
+    sum = 0
+=======
+def calculate_sum(items):
+    sum = 0
+>>>>>>> REPLACE
+
+<<<<<<< SEARCH
+        total += item
+    return total
+=======
+        sum += item
+    return sum
+>>>>>>> REPLACE
+```
+
+
+Usage:
+<dyad-search-replace path="path/to/file.js" description="Brief description of the changes you are making">
+<<<<<<< SEARCH
+def calculate_total(items):
+    sum = 0
+=======
+def calculate_sum(items):
+    sum = 0
+>>>>>>> REPLACE
+
+<<<<<<< SEARCH
+        total += item
+    return total
+=======
+        sum += item
+    return sum
+>>>>>>> REPLACE
+</dyad-search-replace>
+
+
+
+
+If the user wants to use supabase or do something that requires auth, database or server-side functions (e.g. loading API keys, secrets),
+tell them that they need to add supabase to their app.
+
+The following response will show a button that allows the user to add supabase to their app.
+
+<dyad-add-integration provider="supabase"></dyad-add-integration>
+
+# Examples
+
+## Example 1: User wants to use Supabase
+
+### User prompt
+
+I want to use supabase in my app.
+
+### Assistant response
+
+You need to first add Supabase to your app.
+
+<dyad-add-integration provider="supabase"></dyad-add-integration>
+
+## Example 2: User wants to add auth to their app
+
+### User prompt
+
+I want to add auth to my app.
+
+### Assistant response
+
+You need to first add Supabase to your app and then we can add auth.
+
+<dyad-add-integration provider="supabase"></dyad-add-integration>
+
+
+===
+role: user
+message: [dump]

e2e-tests/snapshots/turbo_edits_v2.spec.ts_turbo-edits-v2---search-replace-fallback-1.aria.yml

@@ -0,0 +1,25 @@
+- paragraph: tc=turbo-edits-v2-trigger-fallback
+- paragraph: Example with turbo edit v2
+- img
+- text: Search & Replace Index.tsx
+- img
+- text: src/pages/Index.tsx
+- paragraph: End of turbo edit
+- img
+- text: Warning Could not apply Turbo Edits properly for some of the files; re-generating code......
+- img
+- img
+- text: Index.tsx
+- button "Edit":
+  - img
+- img
+- text: "src/pages/Index.tsx Summary: Rewrite file."
+- paragraph: "[[dyad-dump-path=*]]"
+- button:
+  - img
+- img
+- text: less than a minute ago
+- button "Request ID":
+  - img
+- button "Retry":
+  - img

e2e-tests/turbo_edits_options.spec.ts

@@ -0,0 +1,15 @@
+import { test } from "./helpers/test_helper";
+
+test("switching turbo edits saves the right setting", async ({ po }) => {
+  await po.setUpDyadPro();
+  const proModesDialog = await po.openProModesDialog({
+    location: "home-chat-input-container",
+  });
+  await po.snapshotSettings();
+  await proModesDialog.setTurboEditsMode("classic");
+  await po.snapshotSettings();
+  await proModesDialog.setTurboEditsMode("search-replace");
+  await po.snapshotSettings();
+  await proModesDialog.setTurboEditsMode("off");
+  await po.snapshotSettings();
+});

e2e-tests/turbo_edits_v2.spec.ts

@@ -0,0 +1,49 @@
+import { testSkipIfWindows } from "./helpers/test_helper";
+
+testSkipIfWindows("turbo edits v2 - search-replace dump", async ({ po }) => {
+  await po.setUpDyadPro();
+  const proModesDialog = await po.openProModesDialog({
+    location: "home-chat-input-container",
+  });
+  await proModesDialog.setTurboEditsMode("search-replace");
+  await proModesDialog.close();
+  await po.sendPrompt("[dump]");
+  await po.snapshotServerDump("request");
+  await po.snapshotServerDump("all-messages");
+});
+
+testSkipIfWindows("turbo edits v2 - search-replace approve", async ({ po }) => {
+  await po.setUpDyadPro();
+  const proModesDialog = await po.openProModesDialog({
+    location: "home-chat-input-container",
+  });
+  await proModesDialog.setTurboEditsMode("search-replace");
+  await proModesDialog.close();
+  await po.sendPrompt("tc=turbo-edits-v2");
+  await po.snapshotMessages();
+  await po.approveProposal();
+  await po.snapshotAppFiles({
+    name: "after-search-replace",
+    files: ["src/pages/Index.tsx"],
+  });
+});
+
+testSkipIfWindows(
+  "turbo edits v2 - search-replace fallback",
+  async ({ po }) => {
+    await po.setUpDyadPro();
+    const proModesDialog = await po.openProModesDialog({
+      location: "home-chat-input-container",
+    });
+    await proModesDialog.setTurboEditsMode("search-replace");
+    await proModesDialog.close();
+    await po.sendPrompt("tc=turbo-edits-v2-trigger-fallback");
+    await po.snapshotServerDump("request");
+    await po.snapshotMessages({ replaceDumpPath: true });
+    await po.approveProposal();
+    await po.snapshotAppFiles({
+      name: "after-search-replace-fallback",
+      files: ["src/pages/Index.tsx"],
+    });
+  },
+);

src/components/ProModeSelector.tsx

@@ -25,9 +25,10 @@ export function ProModeSelector() {
     });
   };
 
-  const toggleLazyEdits = () => {
+  const handleTurboEditsChange = (newValue: "off" | "v1" | "v2") => {
     updateSettings({
-      enableProLazyEditsMode: !settings?.enableProLazyEditsMode,
+      enableProLazyEditsMode: newValue !== "off",
+      proLazyEditsMode: newValue,
     });
   };
 
@@ -105,7 +106,6 @@ export function ProModeSelector() {
             <SelectorRow
               id="pro-enabled"
               label="Enable Dyad Pro"
-              description="Use Dyad Pro AI credits"
               tooltip="Uses Dyad Pro AI credits for the main AI model and Pro modes."
               isTogglable={hasProKey}
               settingEnabled={Boolean(settings?.enableDyadPro)}
@@ -113,21 +113,17 @@ export function ProModeSelector() {
             />
             <SelectorRow
               id="web-search"
-              label="Web Search"
+              label="Web Access"
-              description="Search the web for information"
+              tooltip="Allows Dyad to access the web (e.g. search for information)"
-              tooltip="Uses the web to search for information"
               isTogglable={proModeTogglable}
               settingEnabled={Boolean(settings?.enableProWebSearch)}
               toggle={toggleWebSearch}
             />
-            <SelectorRow
+
-              id="lazy-edits"
+            <TurboEditsSelector
-              label="Turbo Edits"
-              description="Makes file edits faster and cheaper"
-              tooltip="Uses a faster, cheaper model to generate full file updates."
               isTogglable={proModeTogglable}
-              settingEnabled={Boolean(settings?.enableProLazyEditsMode)}
+              settings={settings}
-              toggle={toggleLazyEdits}
+              onValueChange={handleTurboEditsChange}
             />
             <SmartContextSelector
               isTogglable={proModeTogglable}
@@ -144,7 +140,6 @@ export function ProModeSelector() {
 function SelectorRow({
   id,
   label,
-  description,
   tooltip,
   isTogglable,
   settingEnabled,
@@ -152,7 +147,6 @@ function SelectorRow({
 }: {
   id: string;
   label: string;
-  description: string;
   tooltip: string;
   isTogglable: boolean;
   settingEnabled: boolean;
@@ -160,30 +154,23 @@ function SelectorRow({
 }) {
   return (
     <div className="flex items-center justify-between">
-      <div className="space-y-1.5">
+      <div className="flex items-center gap-1.5">
         <Label
           htmlFor={id}
           className={!isTogglable ? "text-muted-foreground/50" : ""}
         >
           {label}
         </Label>
-        <div className="flex items-center gap-1">
+        <Tooltip>
-          <Tooltip>
+          <TooltipTrigger asChild>
-            <TooltipTrigger asChild>
+            <Info
-              <Info
+              className={`h-4 w-4 cursor-help ${!isTogglable ? "text-muted-foreground/50" : "text-muted-foreground"}`}
-                className={`h-4 w-4 cursor-help ${!isTogglable ? "text-muted-foreground/50" : "text-muted-foreground"}`}
+            />
-              />
+          </TooltipTrigger>
-            </TooltipTrigger>
+          <TooltipContent side="right" className="max-w-72">
-            <TooltipContent side="right" className="max-w-72">
+            {tooltip}
-              {tooltip}
+          </TooltipContent>
-            </TooltipContent>
+        </Tooltip>
-          </Tooltip>
-          <p
-            className={`text-xs ${!isTogglable ? "text-muted-foreground/50" : "text-muted-foreground"} max-w-55`}
-          >
-            {description}
-          </p>
-        </div>
       </div>
       <Switch
         id={id}
@@ -195,6 +182,95 @@ function SelectorRow({
   );
 }
 
+function TurboEditsSelector({
+  isTogglable,
+  settings,
+  onValueChange,
+}: {
+  isTogglable: boolean;
+  settings: UserSettings | null;
+  onValueChange: (value: "off" | "v1" | "v2") => void;
+}) {
+  // Determine current value based on settings
+  const getCurrentValue = (): "off" | "v1" | "v2" => {
+    if (!settings?.enableProLazyEditsMode) {
+      return "off";
+    }
+    if (settings?.proLazyEditsMode === "v1") {
+      return "v1";
+    }
+    if (settings?.proLazyEditsMode === "v2") {
+      return "v2";
+    }
+    // Keep in sync with getModelClient in get_model_client.ts
+    // If enabled but no option set (undefined/falsey), it's v1
+    return "v1";
+  };
+
+  const currentValue = getCurrentValue();
+
+  return (
+    <div className="space-y-2">
+      <div className="flex items-center gap-1.5">
+        <Label className={!isTogglable ? "text-muted-foreground/50" : ""}>
+          Turbo Edits
+        </Label>
+        <Tooltip>
+          <TooltipTrigger asChild>
+            <Info
+              className={`h-4 w-4 cursor-help ${!isTogglable ? "text-muted-foreground/50" : "text-muted-foreground"}`}
+            />
+          </TooltipTrigger>
+          <TooltipContent side="right" className="max-w-72">
+            Edits files efficiently without full rewrites.
+            <br />
+            <ul className="list-disc ml-4">
+              <li>
+                <b>Classic:</b> Uses a smaller model to complete edits.
+              </li>
+              <li>
+                <b>Search & replace:</b> Find and replaces specific text blocks.
+              </li>
+            </ul>
+          </TooltipContent>
+        </Tooltip>
+      </div>
+      <div
+        className="inline-flex rounded-md border border-input"
+        data-testid="turbo-edits-selector"
+      >
+        <Button
+          variant={currentValue === "off" ? "default" : "ghost"}
+          size="sm"
+          onClick={() => onValueChange("off")}
+          disabled={!isTogglable}
+          className="rounded-r-none border-r border-input h-8 px-3 text-xs flex-shrink-0"
+        >
+          Off
+        </Button>
+        <Button
+          variant={currentValue === "v1" ? "default" : "ghost"}
+          size="sm"
+          onClick={() => onValueChange("v1")}
+          disabled={!isTogglable}
+          className="rounded-none border-r border-input h-8 px-3 text-xs flex-shrink-0"
+        >
+          Classic
+        </Button>
+        <Button
+          variant={currentValue === "v2" ? "default" : "ghost"}
+          size="sm"
+          onClick={() => onValueChange("v2")}
+          disabled={!isTogglable}
+          className="rounded-l-none h-8 px-3 text-xs flex-shrink-0"
+        >
+          Search & replace
+        </Button>
+      </div>
+    </div>
+  );
+}
+
 function SmartContextSelector({
   isTogglable,
   settings,
@@ -223,30 +299,27 @@ function SmartContextSelector({
   const currentValue = getCurrentValue();
 
   return (
-    <div className="space-y-3">
+    <div className="space-y-2">
-      <div className="space-y-1.5">
+      <div className="flex items-center gap-1.5">
         <Label className={!isTogglable ? "text-muted-foreground/50" : ""}>
           Smart Context
         </Label>
-        <div className="flex items-center gap-1">
+        <Tooltip>
-          <Tooltip>
+          <TooltipTrigger asChild>
-            <TooltipTrigger asChild>
+            <Info
-              <Info
+              className={`h-4 w-4 cursor-help ${!isTogglable ? "text-muted-foreground/50" : "text-muted-foreground"}`}
-                className={`h-4 w-4 cursor-help ${!isTogglable ? "text-muted-foreground/50" : "text-muted-foreground"}`}
+            />
-              />
+          </TooltipTrigger>
-            </TooltipTrigger>
+          <TooltipContent side="right" className="max-w-72">
-            <TooltipContent side="right" className="max-w-72">
+            Selects the most relevant files as context to save credits working
-              Improve efficiency and save credits working on large codebases.
+            on large codebases.
-            </TooltipContent>
+          </TooltipContent>
-          </Tooltip>
+        </Tooltip>
-          <p
-            className={`text-xs ${!isTogglable ? "text-muted-foreground/50" : "text-muted-foreground"}`}
-          >
-            Optimizes your AI's code context
-          </p>
-        </div>
       </div>
-      <div className="inline-flex rounded-md border border-input">
+      <div
+        className="inline-flex rounded-md border border-input"
+        data-testid="smart-context-selector"
+      >
         <Button
           variant={currentValue === "off" ? "default" : "ghost"}
           size="sm"

src/components/chat/DyadMarkdownParser.tsx

@@ -8,6 +8,7 @@ import { DyadAddDependency } from "./DyadAddDependency";
 import { DyadExecuteSql } from "./DyadExecuteSql";
 import { DyadAddIntegration } from "./DyadAddIntegration";
 import { DyadEdit } from "./DyadEdit";
+import { DyadSearchReplace } from "./DyadSearchReplace";
 import { DyadCodebaseContext } from "./DyadCodebaseContext";
 import { DyadThink } from "./DyadThink";
 import { CodeHighlight } from "./CodeHighlight";
@@ -129,6 +130,7 @@ function preprocessUnclosedTags(content: string): {
     "dyad-problem-report",
     "dyad-chat-summary",
     "dyad-edit",
+    "dyad-search-replace",
     "dyad-codebase-context",
     "dyad-web-search-result",
     "dyad-web-search",
@@ -201,6 +203,7 @@ function parseCustomTags(content: string): ContentPiece[] {
     "dyad-problem-report",
     "dyad-chat-summary",
     "dyad-edit",
+    "dyad-search-replace",
     "dyad-codebase-context",
     "dyad-web-search-result",
     "dyad-web-search",
@@ -437,6 +440,21 @@ function renderCustomTag(
         </DyadEdit>
       );
 
+    case "dyad-search-replace":
+      return (
+        <DyadSearchReplace
+          node={{
+            properties: {
+              path: attributes.path || "",
+              description: attributes.description || "",
+              state: getState({ isStreaming, inProgress }),
+            },
+          }}
+        >
+          {content}
+        </DyadSearchReplace>
+      );
+
     case "dyad-codebase-context":
       return (
         <DyadCodebaseContext

src/components/chat/DyadSearchReplace.tsx

@@ -0,0 +1,151 @@
+import type React from "react";
+import type { ReactNode } from "react";
+import { useMemo, useState } from "react";
+import {
+  ChevronsDownUp,
+  ChevronsUpDown,
+  Loader,
+  CircleX,
+  Search,
+  ArrowLeftRight,
+} from "lucide-react";
+import { CodeHighlight } from "./CodeHighlight";
+import { CustomTagState } from "./stateTypes";
+import { parseSearchReplaceBlocks } from "@/pro/shared/search_replace_parser";
+
+interface DyadSearchReplaceProps {
+  children?: ReactNode;
+  node?: any;
+  path?: string;
+  description?: string;
+}
+
+export const DyadSearchReplace: React.FC<DyadSearchReplaceProps> = ({
+  children,
+  node,
+  path: pathProp,
+  description: descriptionProp,
+}) => {
+  const [isContentVisible, setIsContentVisible] = useState(false);
+
+  const path = pathProp || node?.properties?.path || "";
+  const description = descriptionProp || node?.properties?.description || "";
+  const state = node?.properties?.state as CustomTagState;
+  const inProgress = state === "pending";
+  const aborted = state === "aborted";
+
+  const blocks = useMemo(
+    () => parseSearchReplaceBlocks(String(children ?? "")),
+    [children],
+  );
+
+  const fileName = path ? path.split("/").pop() : "";
+
+  return (
+    <div
+      className={`bg-(--background-lightest) hover:bg-(--background-lighter) rounded-lg px-4 py-2 border my-2 cursor-pointer ${
+        inProgress
+          ? "border-amber-500"
+          : aborted
+            ? "border-red-500"
+            : "border-border"
+      }`}
+      onClick={() => setIsContentVisible(!isContentVisible)}
+    >
+      <div className="flex items-center justify-between">
+        <div className="flex items-center gap-2">
+          <div className="flex items-center">
+            <Search size={16} />
+            <span className="bg-purple-600 text-white text-xs px-1.5 py-0.5 rounded ml-1 font-medium">
+              Search & Replace
+            </span>
+          </div>
+          {fileName && (
+            <span className="text-gray-700 dark:text-gray-300 font-medium text-sm">
+              {fileName}
+            </span>
+          )}
+          {inProgress && (
+            <div className="flex items-center text-amber-600 text-xs">
+              <Loader size={14} className="mr-1 animate-spin" />
+              <span>Applying changes...</span>
+            </div>
+          )}
+          {aborted && (
+            <div className="flex items-center text-red-600 text-xs">
+              <CircleX size={14} className="mr-1" />
+              <span>Did not finish</span>
+            </div>
+          )}
+        </div>
+        <div className="flex items-center">
+          {isContentVisible ? (
+            <ChevronsDownUp
+              size={20}
+              className="text-gray-500 hover:text-gray-700 dark:text-gray-400 dark:hover:text-gray-200"
+            />
+          ) : (
+            <ChevronsUpDown
+              size={20}
+              className="text-gray-500 hover:text-gray-700 dark:text-gray-400 dark:hover:text-gray-200"
+            />
+          )}
+        </div>
+      </div>
+      {path && (
+        <div className="text-xs text-gray-500 dark:text-gray-400 font-medium mb-1">
+          {path}
+        </div>
+      )}
+      {description && (
+        <div className="text-sm text-gray-600 dark:text-gray-300">
+          <span className="font-medium">Summary: </span>
+          {description}
+        </div>
+      )}
+      {isContentVisible && (
+        <div
+          className="text-xs cursor-text"
+          onClick={(e) => e.stopPropagation()}
+        >
+          {blocks.length === 0 ? (
+            <CodeHighlight className="language-typescript">
+              {children}
+            </CodeHighlight>
+          ) : (
+            <div className="space-y-3">
+              {blocks.map((b, i) => (
+                <div key={i} className="border rounded-lg">
+                  <div className="flex items-center justify-between px-3 py-2 bg-(--background-lighter) rounded-t-lg text-[11px]">
+                    <div className="flex items-center gap-2">
+                      <ArrowLeftRight size={14} />
+                      <span className="font-medium">Change {i + 1}</span>
+                    </div>
+                  </div>
+                  <div className="grid grid-cols-1 md:grid-cols-2 gap-0">
+                    <div className="p-3 border-t md:border-r">
+                      <div className="text-[11px] mb-1 text-muted-foreground font-medium">
+                        Search
+                      </div>
+                      <CodeHighlight className="language-typescript">
+                        {b.searchContent}
+                      </CodeHighlight>
+                    </div>
+                    <div className="p-3 border-t">
+                      <div className="text-[11px] mb-1 text-muted-foreground font-medium">
+                        Replace
+                      </div>
+                      <CodeHighlight className="language-typescript">
+                        {b.replaceContent}
+                      </CodeHighlight>
+                    </div>
+                  </div>
+                </div>
+              ))}
+            </div>
+          )}
+        </div>
+      )}
+    </div>
+  );
+};

src/ipc/handlers/chat_stream_handlers.ts

@@ -30,7 +30,10 @@ import {
   extractCodebase,
   readFileWithCache,
 } from "../../utils/codebase";
-import { processFullResponseActions } from "../processors/response_processor";
+import {
+  dryRunSearchReplace,
+  processFullResponseActions,
+} from "../processors/response_processor";
 import { streamTestResponse } from "./testing_chat_handlers";
 import { getTestResponse } from "./testing_chat_handlers";
 import { getModelClient, ModelClient } from "../utils/get_model_client";
@@ -75,6 +78,7 @@ import { inArray } from "drizzle-orm";
 import { replacePromptReference } from "../utils/replacePromptReference";
 import { mcpManager } from "../utils/mcp_manager";
 import z from "zod";
+import { isTurboEditsV2Enabled } from "@/lib/schemas";
 
 type AsyncIterableStream<T> = AsyncIterable<T> & ReadableStream<T>;
 
@@ -563,6 +567,7 @@ ${componentSnippet}
             settings.selectedChatMode === "agent"
               ? "build"
               : settings.selectedChatMode,
+          enableTurboEditsV2: isTurboEditsV2Enabled(settings),
         });
 
         // Add information about mentioned apps if any
@@ -898,6 +903,7 @@ This conversation includes one or more image attachments. When the user uploads
             systemPromptOverride: constructSystemPrompt({
               aiRules: await readAiRules(getDyadAppPath(updatedChat.app.path)),
               chatMode: "agent",
+              enableTurboEditsV2: false,
             }),
             files: files,
             dyadDisableFiles: true,
@@ -939,6 +945,53 @@ This conversation includes one or more image attachments. When the user uploads
           });
           fullResponse = result.fullResponse;
 
+          if (
+            settings.selectedChatMode !== "ask" &&
+            isTurboEditsV2Enabled(settings)
+          ) {
+            const issues = await dryRunSearchReplace({
+              fullResponse,
+              appPath: getDyadAppPath(updatedChat.app.path),
+            });
+            if (issues.length > 0) {
+              logger.warn(
+                `Detected search-replace issues: ${issues.map((i) => i.error).join(", ")}`,
+              );
+              const formattedSearchReplaceIssues = issues
+                .map(({ filePath, error }) => {
+                  return `File path: ${filePath}\nError: ${error}`;
+                })
+                .join("\n\n");
+              const originalFullResponse = fullResponse;
+              fullResponse += `<dyad-output type="warning" message="Could not apply Turbo Edits properly for some of the files; re-generating code...">${formattedSearchReplaceIssues}</dyad-output>`;
+
+              const { fullStream: fixSearchReplaceStream } =
+                await simpleStreamText({
+                  // Build messages: reuse chat history and original full response, then ask to fix search-replace issues.
+                  chatMessages: [
+                    ...chatMessages,
+                    { role: "assistant", content: originalFullResponse },
+                    {
+                      role: "user",
+                      content: `There was an issue with the following \`dyad-search-replace\` tags. Please fix them by generating the code changes using \`dyad-write\` tags instead.
+                      
+${formattedSearchReplaceIssues}`,
+                    },
+                  ],
+                  modelClient,
+                  files: files,
+                });
+              const result = await processStreamChunks({
+                fullStream: fixSearchReplaceStream,
+                fullResponse,
+                abortController,
+                chatId: req.chatId,
+                processResponseChunkUpdate,
+              });
+              fullResponse = result.fullResponse;
+            }
+          }
+
           if (
             !abortController.signal.aborted &&
             settings.selectedChatMode !== "ask" &&

src/ipc/handlers/proposal_handlers.ts

@@ -18,6 +18,7 @@ import {
   getDyadAddDependencyTags,
   getDyadChatSummaryTag,
   getDyadCommandTags,
+  getDyadSearchReplaceTags,
 } from "../utils/dyad_tag_parser";
 import log from "electron-log";
 import { isServerFunction } from "../../supabase_admin/supabase_utils";
@@ -153,19 +154,23 @@ const getProposalHandler = async (
         const proposalTitle = getDyadChatSummaryTag(messageContent);
 
         const proposalWriteFiles = getDyadWriteTags(messageContent);
+        const proposalSearchReplaceFiles =
+          getDyadSearchReplaceTags(messageContent);
         const proposalRenameFiles = getDyadRenameTags(messageContent);
         const proposalDeleteFiles = getDyadDeleteTags(messageContent);
         const proposalExecuteSqlQueries = getDyadExecuteSqlTags(messageContent);
         const packagesAdded = getDyadAddDependencyTags(messageContent);
 
         const filesChanged = [
-          ...proposalWriteFiles.map((tag) => ({
+          ...proposalWriteFiles
-            name: path.basename(tag.path),
+            .concat(proposalSearchReplaceFiles)
-            path: tag.path,
+            .map((tag) => ({
-            summary: tag.description ?? "(no change summary found)", // Generic summary
+              name: path.basename(tag.path),
-            type: "write" as const,
+              path: tag.path,
-            isServerFunction: isServerFunction(tag.path),
+              summary: tag.description ?? "(no change summary found)", // Generic summary
-          })),
+              type: "write" as const,
+              isServerFunction: isServerFunction(tag.path),
+            })),
           ...proposalRenameFiles.map((tag) => ({
             name: path.basename(tag.to),
             path: tag.to,

src/ipc/handlers/token_count_handlers.ts

@@ -22,6 +22,7 @@ import { validateChatContext } from "../utils/context_paths_utils";
 import { readSettings } from "@/main/settings";
 import { extractMentionedAppsCodebases } from "../utils/mention_apps";
 import { parseAppMentions } from "@/shared/parse_mention_apps";
+import { isTurboEditsV2Enabled } from "@/lib/schemas";
 
 const logger = log.scope("token_count_handlers");
 
@@ -63,6 +64,7 @@ export function registerTokenCountHandlers() {
       let systemPrompt = constructSystemPrompt({
         aiRules: await readAiRules(getDyadAppPath(chat.app.path)),
         chatMode: settings.selectedChatMode,
+        enableTurboEditsV2: isTurboEditsV2Enabled(settings),
       });
       let supabaseContext = "";
 

src/ipc/processors/response_processor.ts

@@ -25,7 +25,9 @@ import {
   getDyadDeleteTags,
   getDyadAddDependencyTags,
   getDyadExecuteSqlTags,
+  getDyadSearchReplaceTags,
 } from "../utils/dyad_tag_parser";
+import { applySearchReplace } from "../../pro/main/ipc/processors/search_replace_processor";
 import { storeDbTimestampAtCurrentVersion } from "../utils/neon_timestamp_utils";
 
 import { FileUploadsState } from "../utils/file_uploads_state";
@@ -50,6 +52,46 @@ async function readFileFromFunctionPath(input: string): Promise<string> {
   return readFile(input, "utf8");
 }
 
+export async function dryRunSearchReplace({
+  fullResponse,
+  appPath,
+}: {
+  fullResponse: string;
+  appPath: string;
+}) {
+  const issues: { filePath: string; error: string }[] = [];
+  const dyadSearchReplaceTags = getDyadSearchReplaceTags(fullResponse);
+  for (const tag of dyadSearchReplaceTags) {
+    const filePath = tag.path;
+    const fullFilePath = safeJoin(appPath, filePath);
+    try {
+      if (!fs.existsSync(fullFilePath)) {
+        issues.push({
+          filePath,
+          error: `Search-replace target file does not exist: ${filePath}`,
+        });
+        continue;
+      }
+
+      const original = await readFile(fullFilePath, "utf8");
+      const result = applySearchReplace(original, tag.content);
+      if (!result.success || typeof result.content !== "string") {
+        issues.push({
+          filePath,
+          error: "Unable to apply search-replace to file",
+        });
+        continue;
+      }
+    } catch (error) {
+      issues.push({
+        filePath,
+        error: error?.toString() ?? "Unknown error",
+      });
+    }
+  }
+  return issues;
+}
+
 export async function processFullResponseActions(
   fullResponse: string,
   chatId: number,
@@ -312,6 +354,53 @@ export async function processFullResponseActions(
       }
     }
 
+    // Process all search-replace edits
+    const dyadSearchReplaceTags = getDyadSearchReplaceTags(fullResponse);
+    for (const tag of dyadSearchReplaceTags) {
+      const filePath = tag.path;
+      const fullFilePath = safeJoin(appPath, filePath);
+      try {
+        if (!fs.existsSync(fullFilePath)) {
+          // Do not show warning to user because we already attempt to do a <dyad-write> tag to fix it.
+          logger.warn(`Search-replace target file does not exist: ${filePath}`);
+          continue;
+        }
+        const original = await readFile(fullFilePath, "utf8");
+        const result = applySearchReplace(original, tag.content);
+        if (!result.success || typeof result.content !== "string") {
+          // Do not show warning to user because we already attempt to do a <dyad-write> tag to fix it.
+          logger.warn(
+            `Failed to apply search-replace to ${filePath}: ${result.error ?? "unknown"}`,
+          );
+          continue;
+        }
+        // Write modified content
+        fs.writeFileSync(fullFilePath, result.content);
+        writtenFiles.push(filePath);
+
+        // If server function, redeploy
+        if (isServerFunction(filePath)) {
+          try {
+            await deploySupabaseFunctions({
+              supabaseProjectId: chatWithApp.app.supabaseProjectId!,
+              functionName: path.basename(path.dirname(filePath)),
+              content: result.content,
+            });
+          } catch (error) {
+            errors.push({
+              message: `Failed to deploy Supabase function after search-replace: ${filePath}`,
+              error: error,
+            });
+          }
+        }
+      } catch (error) {
+        errors.push({
+          message: `Error applying search-replace to ${filePath}`,
+          error: error,
+        });
+      }
+    }
+
     // Process all file writes
     for (const tag of dyadWriteTags) {
       const filePath = tag.path;

src/ipc/utils/dyad_tag_parser.ts

@@ -137,3 +137,48 @@ export function getDyadCommandTags(fullResponse: string): string[] {
 
   return commands;
 }
+
+export function getDyadSearchReplaceTags(fullResponse: string): {
+  path: string;
+  content: string;
+  description?: string;
+}[] {
+  const dyadSearchReplaceRegex =
+    /<dyad-search-replace([^>]*)>([\s\S]*?)<\/dyad-search-replace>/gi;
+  const pathRegex = /path="([^"]+)"/;
+  const descriptionRegex = /description="([^"]+)"/;
+
+  let match;
+  const tags: { path: string; content: string; description?: string }[] = [];
+
+  while ((match = dyadSearchReplaceRegex.exec(fullResponse)) !== null) {
+    const attributesString = match[1] || "";
+    let content = match[2].trim();
+
+    const pathMatch = pathRegex.exec(attributesString);
+    const descriptionMatch = descriptionRegex.exec(attributesString);
+
+    if (pathMatch && pathMatch[1]) {
+      const path = pathMatch[1];
+      const description = descriptionMatch?.[1];
+
+      // Handle markdown code fences if present
+      const contentLines = content.split("\n");
+      if (contentLines[0]?.startsWith("```")) {
+        contentLines.shift();
+      }
+      if (contentLines[contentLines.length - 1]?.startsWith("```")) {
+        contentLines.pop();
+      }
+      content = contentLines.join("\n");
+
+      tags.push({ path: normalizePath(path), content, description });
+    } else {
+      logger.warn(
+        "Found <dyad-search-replace> tag without a valid 'path' attribute:",
+        match[0],
+      );
+    }
+  }
+  return tags;
+}

src/ipc/utils/get_model_client.ts

@@ -89,7 +89,8 @@ export async function getModelClient(
           enableLazyEdits:
             settings.selectedChatMode === "ask"
               ? false
-              : settings.enableProLazyEditsMode,
+              : settings.enableProLazyEditsMode &&
+                settings.proLazyEditsMode !== "v2",
           enableSmartFilesContext,
           // Keep in sync with getCurrentValue in ProModeSelector.tsx
           smartContextMode: settings.proSmartContextOption ?? "balanced",

src/lib/schemas.ts

@@ -232,6 +232,7 @@ export const UserSettingsSchema = z.object({
   maxChatTurnsInContext: z.number().optional(),
   thinkingBudget: z.enum(["low", "medium", "high"]).optional(),
   enableProLazyEditsMode: z.boolean().optional(),
+  proLazyEditsMode: z.enum(["off", "v1", "v2"]).optional(),
   enableProSmartFilesContextMode: z.boolean().optional(),
   enableProWebSearch: z.boolean().optional(),
   proSmartContextOption: z.enum(["balanced", "conservative"]).optional(),
@@ -273,6 +274,14 @@ export function hasDyadProKey(settings: UserSettings): boolean {
   return !!settings.providerSettings?.auto?.apiKey?.value;
 }
 
+export function isTurboEditsV2Enabled(settings: UserSettings): boolean {
+  return Boolean(
+    isDyadProEnabled(settings) &&
+      settings.enableProLazyEditsMode === true &&
+      settings.proLazyEditsMode === "v2",
+  );
+}
+
 // Define interfaces for the props
 export interface SecurityRisk {
   type: "warning" | "danger";

src/pro/LICENSE

@@ -0,0 +1,105 @@
+# Functional Source License, Version 1.1, ALv2 Future License
+
+## Abbreviation
+
+FSL-1.1-ALv2
+
+## Notice
+
+Copyright 2025 Dyad Tech, Inc.
+
+## Terms and Conditions
+
+### Licensor ("We")
+
+The party offering the Software under these Terms and Conditions.
+
+### The Software
+
+The "Software" is each version of the software that we make available under
+these Terms and Conditions, as indicated by our inclusion of these Terms and
+Conditions with the Software.
+
+### License Grant
+
+Subject to your compliance with this License Grant and the Patents,
+Redistribution and Trademark clauses below, we hereby grant you the right to
+use, copy, modify, create derivative works, publicly perform, publicly display
+and redistribute the Software for any Permitted Purpose identified below.
+
+### Permitted Purpose
+
+A Permitted Purpose is any purpose other than a Competing Use. A Competing Use
+means making the Software available to others in a commercial product or
+service that:
+
+1. substitutes for the Software;
+
+2. substitutes for any other product or service we offer using the Software
+   that exists as of the date we make the Software available; or
+
+3. offers the same or substantially similar functionality as the Software.
+
+Permitted Purposes specifically include using the Software:
+
+1. for your internal use and access;
+
+2. for non-commercial education;
+
+3. for non-commercial research; and
+
+4. in connection with professional services that you provide to a licensee
+   using the Software in accordance with these Terms and Conditions.
+
+### Patents
+
+To the extent your use for a Permitted Purpose would necessarily infringe our
+patents, the license grant above includes a license under our patents. If you
+make a claim against any party that the Software infringes or contributes to
+the infringement of any patent, then your patent license to the Software ends
+immediately.
+
+### Redistribution
+
+The Terms and Conditions apply to all copies, modifications and derivatives of
+the Software.
+
+If you redistribute any copies, modifications or derivatives of the Software,
+you must include a copy of or a link to these Terms and Conditions and not
+remove any copyright notices provided in or with the Software.
+
+### Disclaimer
+
+THE SOFTWARE IS PROVIDED "AS IS" AND WITHOUT WARRANTIES OF ANY KIND, EXPRESS OR
+IMPLIED, INCLUDING WITHOUT LIMITATION WARRANTIES OF FITNESS FOR A PARTICULAR
+PURPOSE, MERCHANTABILITY, TITLE OR NON-INFRINGEMENT.
+
+IN NO EVENT WILL WE HAVE ANY LIABILITY TO YOU ARISING OUT OF OR RELATED TO THE
+SOFTWARE, INCLUDING INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES,
+EVEN IF WE HAVE BEEN INFORMED OF THEIR POSSIBILITY IN ADVANCE.
+
+### Trademarks
+
+Except for displaying the License Details and identifying us as the origin of
+the Software, you have no right under these Terms and Conditions to use our
+trademarks, trade names, service marks or product names.
+
+## Grant of Future License
+
+We hereby irrevocably grant you an additional license to use the Software under
+the Apache License, Version 2.0 that is effective on the second anniversary of
+the date we make the Software available. On or after that date, you may use the
+Software under the Apache License, Version 2.0, in which case the following
+will apply:
+
+Licensed under the Apache License, Version 2.0 (the "License"); you may not use
+this file except in compliance with the License.
+
+You may obtain a copy of the License at
+
+http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software distributed
+under the License is distributed on an "AS IS" BASIS, WITHOUT WARRANTIES OR
+CONDITIONS OF ANY KIND, either express or implied. See the License for the
+specific language governing permissions and limitations under the License.

src/pro/main/ipc/processors/search_replace_processor.spec.ts

@@ -0,0 +1,301 @@
+import { describe, it, expect } from "vitest";
+import { applySearchReplace } from "@/pro/main/ipc/processors/search_replace_processor";
+import { parseSearchReplaceBlocks } from "@/pro/shared/search_replace_parser";
+
+describe("search_replace_processor - parseSearchReplaceBlocks", () => {
+  it("parses multiple blocks with start_line in ascending order", () => {
+    const diff = `
+<<<<<<< SEARCH
+line one
+=======
+LINE ONE
+>>>>>>> REPLACE
+
+<<<<<<< SEARCH
+line four
+=======
+LINE FOUR
+>>>>>>> REPLACE
+`;
+    const blocks = parseSearchReplaceBlocks(diff);
+    expect(blocks.length).toBe(2);
+    expect(blocks[0].searchContent.trim()).toBe("line one");
+    expect(blocks[0].replaceContent.trim()).toBe("LINE ONE");
+  });
+});
+
+describe("search_replace_processor - applySearchReplace", () => {
+  it("applies single block with exact start_line match", () => {
+    const original = [
+      "def calculate_total(items):",
+      "    total = 0",
+      "    for item in items:",
+      "        total += item",
+      "    return total",
+      "",
+    ].join("\n");
+
+    const diff = `
+<<<<<<< SEARCH
+def calculate_total(items):
+    total = 0
+=======
+def calculate_sum(items):
+    total = 0
+>>>>>>> REPLACE
+`;
+
+    const { success, content } = applySearchReplace(original, diff);
+    expect(success).toBe(true);
+    expect(content).toContain("def calculate_sum(items):");
+    expect(content).not.toContain("def calculate_total(items):");
+  });
+
+  it("falls back to global exact search when start_line missing", () => {
+    const original = ["alpha", "beta", "gamma"].join("\n");
+    const diff = `
+<<<<<<< SEARCH
+beta
+=======
+BETA
+>>>>>>> REPLACE
+`;
+    const { success, content } = applySearchReplace(original, diff);
+    expect(success).toBe(true);
+    expect(content).toBe(["alpha", "BETA", "gamma"].join("\n"));
+  });
+
+  it("applies multiple blocks in order and accounts for line deltas", () => {
+    const original = ["1", "2", "3", "4", "5"].join("\n");
+    const diff = `
+<<<<<<< SEARCH
+1
+=======
+ONE\nONE-EXTRA
+>>>>>>> REPLACE
+
+<<<<<<< SEARCH
+4
+=======
+FOUR
+>>>>>>> REPLACE
+`;
+    const { success, content } = applySearchReplace(original, diff);
+    expect(success).toBe(true);
+    expect(content).toBe(
+      ["ONE", "ONE-EXTRA", "2", "3", "FOUR", "5"].join("\n"),
+    );
+  });
+
+  it("detects and strips line-numbered content, inferring start line when omitted", () => {
+    const original = ["a", "b", "c", "d"].join("\n");
+    const diff = `
+<<<<<<< SEARCH
+a\nb
+=======
+A\nB
+>>>>>>> REPLACE
+`;
+    const { success, content } = applySearchReplace(original, diff);
+    expect(success).toBe(true);
+    expect(content).toBe(["A", "B", "c", "d"].join("\n"));
+  });
+
+  it("preserves indentation relative to matched block", () => {
+    const original = [
+      "function test() {",
+      "  if (x) {",
+      "    doThing();",
+      "  }",
+      "}",
+    ].join("\n");
+    const diff = `
+<<<<<<< SEARCH
+  if (x) {
+    doThing();
+=======
+  if (x) {
+      doOther();
+    doAnother();
+>>>>>>> REPLACE
+`;
+    const { success, content } = applySearchReplace(original, diff);
+    expect(success).toBe(true);
+    // The replacement lines should keep the base indent of two spaces (from matched block)
+    expect(content).toContain("  if (x) {");
+    expect(content).toContain("      doOther();");
+    expect(content).toContain("    doAnother();");
+  });
+
+  it("supports deletions when replace content is empty", () => {
+    const original = ["x", "y", "z"].join("\n");
+    const diff = `
+<<<<<<< SEARCH
+y
+=======
+
+>>>>>>> REPLACE
+`;
+    const { success, content } = applySearchReplace(original, diff);
+    expect(success).toBe(true);
+    expect(content).toBe(["x", "z"].join("\n"));
+  });
+
+  it("preserves CRLF line endings", () => {
+    const original = ["a", "b", "c"].join("\r\n");
+    const diff = `
+<<<<<<< SEARCH
+b
+=======
+B
+>>>>>>> REPLACE
+`;
+    const { success, content } = applySearchReplace(original, diff);
+    expect(success).toBe(true);
+    expect(content).toBe(["a", "B", "c"].join("\r\n"));
+  });
+
+  it("unescapes markers inside content and matches literally", () => {
+    const original = ["begin", ">>>>>>> REPLACE", "end"].join("\n");
+    const diff = `
+<<<<<<< SEARCH
+\\>>>>>>> REPLACE
+=======
+LITERAL MARKER
+>>>>>>> REPLACE
+`;
+    const { success, content } = applySearchReplace(original, diff);
+    expect(success).toBe(true);
+    expect(content).toBe(["begin", "LITERAL MARKER", "end"].join("\n"));
+  });
+
+  it("errors when SEARCH block does not match any content", () => {
+    const original = "foo\nbar\nbaz";
+    const diff = `
+<<<<<<< SEARCH
+NOT IN FILE
+=======
+STILL NOT
+>>>>>>> REPLACE
+`;
+    const { success, error } = applySearchReplace(original, diff);
+    expect(success).toBe(false);
+    expect(error).toMatch(/Search block did not match any content/i);
+  });
+
+  it("matches despite differing indentation and trailing whitespace", () => {
+    const original = [
+      "\tfunction example() {",
+      "\t    doThing();   ", // extra trailing spaces
+      "\t}",
+    ].join("\n");
+
+    const diff = `
+<<<<<<< SEARCH
+function example() {
+  doThing();
+}
+=======
+function example() {
+  doOther();
+}
+>>>>>>> REPLACE
+`;
+
+    const { success, content } = applySearchReplace(original, diff);
+    expect(success).toBe(true);
+    expect(content).toContain("doOther();");
+    expect(content).not.toContain("doThing();");
+  });
+
+  it("matches when search uses spaces and target uses tabs (and vice versa)", () => {
+    const original = ["\tif (ready) {", "\t\tstart();", "\t}"].join("\n");
+
+    const diff = `
+<<<<<<< SEARCH
+  if (ready) {
+    start();
+  }
+=======
+  if (ready) {
+    launch();
+  }
+>>>>>>> REPLACE
+`;
+
+    const { success, content } = applySearchReplace(original, diff);
+    expect(success).toBe(true);
+    expect(content).toContain("launch();");
+    expect(content).not.toContain("start();");
+  });
+
+  it("errors when SEARCH and REPLACE blocks are identical", () => {
+    const original = ["x", "y", "z"].join("\n");
+    const diff = `
+<<<<<<< SEARCH
+middle
+=======
+middle
+>>>>>>> REPLACE
+`;
+    const { success, error } = applySearchReplace(original, diff);
+    expect(success).toBe(false);
+    expect(error).toMatch(/Search and replace blocks are identical/i);
+  });
+
+  it("errors when SEARCH block matches multiple locations (ambiguous)", () => {
+    const original = ["foo", "bar", "baz", "bar", "qux"].join("\n");
+
+    const diff = `
+<<<<<<< SEARCH
+bar
+=======
+BAR
+>>>>>>> REPLACE
+`;
+
+    const { success, error } = applySearchReplace(original, diff);
+    expect(success).toBe(false);
+    expect(error).toMatch(/(ambiguous|multiple)/i);
+  });
+
+  it("errors when SEARCH block fuzzy matches multiple locations (ambiguous)", () => {
+    const original = [
+      "\tif (ready) {",
+      "\t\tstart();   ",
+      "\t}",
+      "  if (ready) {",
+      "    start();   ",
+      "  }",
+    ].join("\n");
+
+    const diff = `
+<<<<<<< SEARCH
+if (ready) {
+  start();
+}
+=======
+if (ready) {
+  launch();
+}
+>>>>>>> REPLACE
+`;
+
+    const { success, error } = applySearchReplace(original, diff);
+    expect(success).toBe(false);
+    expect(error).toMatch(/fuzzy matched/i);
+  });
+
+  it("errors when SEARCH block is empty", () => {
+    const original = ["a", "b"].join("\n");
+    const diff = `
+<<<<<<< SEARCH
+=======
+REPLACEMENT
+>>>>>>> REPLACE
+`;
+    const { success, error } = applySearchReplace(original, diff);
+    expect(success).toBe(false);
+    expect(error).toMatch(/empty SEARCH block is not allowed/i);
+  });
+});

src/pro/main/ipc/processors/search_replace_processor.ts

@@ -0,0 +1,175 @@
+/* eslint-disable no-irregular-whitespace */
+
+import { parseSearchReplaceBlocks } from "@/pro/shared/search_replace_parser";
+
+function unescapeMarkers(content: string): string {
+  return content
+    .replace(/^\\<<<<<<</gm, "<<<<<<<")
+    .replace(/^\\=======/gm, "=======")
+    .replace(/^\\>>>>>>>/gm, ">>>>>>>");
+}
+
+export function applySearchReplace(
+  originalContent: string,
+  diffContent: string,
+): {
+  success: boolean;
+  content?: string;
+  error?: string;
+} {
+  const blocks = parseSearchReplaceBlocks(diffContent);
+  if (blocks.length === 0) {
+    return {
+      success: false,
+      error:
+        "Invalid diff format - missing required sections. Expected <<<<<<< SEARCH / ======= / >>>>>>> REPLACE",
+    };
+  }
+
+  const lineEnding = originalContent.includes("\r\n") ? "\r\n" : "\n";
+  let resultLines = originalContent.split(/\r?\n/);
+  let appliedCount = 0;
+
+  for (const block of blocks) {
+    let { searchContent, replaceContent } = block;
+
+    // Normalize markers and strip line numbers if present on all lines
+    searchContent = unescapeMarkers(searchContent);
+    replaceContent = unescapeMarkers(replaceContent);
+
+    let searchLines = searchContent === "" ? [] : searchContent.split(/\r?\n/);
+    let replaceLines =
+      replaceContent === "" ? [] : replaceContent.split(/\r?\n/);
+
+    if (searchLines.length === 0) {
+      return {
+        success: false,
+        error: "Invalid diff format - empty SEARCH block is not allowed",
+      };
+    }
+
+    // If search and replace are identical, it's a no-op and should be treated as an error
+    if (searchLines.join("\n") === replaceLines.join("\n")) {
+      return {
+        success: false,
+        error: "Search and replace blocks are identical",
+      };
+    }
+
+    let matchIndex = -1;
+
+    const target = searchLines.join("\n");
+    const hay = resultLines.join("\n");
+
+    // Try exact string matching first and detect ambiguity
+    const exactPositions: number[] = [];
+    let fromIndex = 0;
+    while (true) {
+      const found = hay.indexOf(target, fromIndex);
+      if (found === -1) break;
+      exactPositions.push(found);
+      fromIndex = found + 1;
+    }
+
+    if (exactPositions.length > 1) {
+      return {
+        success: false,
+        error:
+          "Search block matched multiple locations in the target file (ambiguous)",
+      };
+    }
+    if (exactPositions.length === 1) {
+      const pos = exactPositions[0];
+      matchIndex = hay.substring(0, pos).split("\n").length - 1;
+    }
+
+    if (matchIndex === -1) {
+      // Lenient fallback: ignore leading indentation and trailing whitespace
+      const normalizeForMatch = (line: string) =>
+        line.replace(/^[\t ]*/, "").replace(/[\t ]+$/, "");
+
+      const normalizedSearch = searchLines.map(normalizeForMatch);
+
+      const candidates: number[] = [];
+      for (let i = 0; i <= resultLines.length - searchLines.length; i++) {
+        let allMatch = true;
+        for (let j = 0; j < searchLines.length; j++) {
+          if (normalizeForMatch(resultLines[i + j]) !== normalizedSearch[j]) {
+            allMatch = false;
+            break;
+          }
+        }
+        if (allMatch) {
+          candidates.push(i);
+          if (candidates.length > 1) break; // we only care if >1 for ambiguity
+        }
+      }
+
+      if (candidates.length > 1) {
+        return {
+          success: false,
+          error:
+            "Search block fuzzy matched multiple locations in the target file (ambiguous)",
+        };
+      }
+
+      if (candidates.length === 0) {
+        return {
+          success: false,
+          error: "Search block did not match any content in the target file",
+        };
+      }
+
+      matchIndex = candidates[0];
+    }
+
+    const matchedLines = resultLines.slice(
+      matchIndex,
+      matchIndex + searchLines.length,
+    );
+
+    // Preserve indentation relative to first matched line
+    const originalIndents = matchedLines.map((line) => {
+      const m = line.match(/^[\t ]*/);
+      return m ? m[0] : "";
+    });
+    const searchIndents = searchLines.map((line) => {
+      const m = line.match(/^[\t ]*/);
+      return m ? m[0] : "";
+    });
+
+    const indentedReplaceLines = replaceLines.map((line) => {
+      const matchedIndent = originalIndents[0] || "";
+      const currentIndentMatch = line.match(/^[\t ]*/);
+      const currentIndent = currentIndentMatch ? currentIndentMatch[0] : "";
+      const searchBaseIndent = searchIndents[0] || "";
+
+      const searchBaseLevel = searchBaseIndent.length;
+      const currentLevel = currentIndent.length;
+      const relativeLevel = currentLevel - searchBaseLevel;
+
+      const finalIndent =
+        relativeLevel < 0
+          ? matchedIndent.slice(
+              0,
+              Math.max(0, matchedIndent.length + relativeLevel),
+            )
+          : matchedIndent + currentIndent.slice(searchBaseLevel);
+
+      return finalIndent + line.trim();
+    });
+
+    const beforeMatch = resultLines.slice(0, matchIndex);
+    const afterMatch = resultLines.slice(matchIndex + searchLines.length);
+    resultLines = [...beforeMatch, ...indentedReplaceLines, ...afterMatch];
+    appliedCount++;
+  }
+
+  if (appliedCount === 0) {
+    return {
+      success: false,
+      error: "No search/replace blocks could be applied",
+    };
+  }
+  return { success: true, content: resultLines.join(lineEnding) };
+}

src/pro/main/prompts/turbo_edits_v2_prompt.ts

@@ -0,0 +1,94 @@
+// This approach is inspired by Roo Code
+// https://github.com/RooCodeInc/Roo-Code/blob/fceb4130478b20de2bc854c8dd0aad743f844b53/src/core/diff/strategies/multi-search-replace.ts#L4
+// but we've modified it to be simpler and not rely on line numbers.
+//
+// Also, credit to https://aider.chat/ for popularizing this approach
+
+export const TURBO_EDITS_V2_SYSTEM_PROMPT = `
+
+# Search-replace file edits
+
+- Request to apply PRECISE, TARGETED modifications to an existing file by searching for specific sections of content and replacing them. This tool is for SURGICAL EDITS ONLY - specific changes to existing code.
+- You can perform multiple distinct search and replace operations within a single \`dyad-search-replace\` call by providing multiple SEARCH/REPLACE blocks. This is the preferred way to make several targeted changes efficiently.
+- The SEARCH section must match exactly ONE existing content section - it must be unique within the file, including whitespace and indentation.
+- When applying the diffs, be extra careful to remember to change any closing brackets or other syntax that may be affected by the diff farther down in the file.
+- ALWAYS make as many changes in a single 'dyad-search-replace' call as possible using multiple SEARCH/REPLACE blocks.
+- Do not use both \`dyad-write\` and \`dyad-search-replace\` on the same file within a single response.
+- Include a brief description of the changes you are making in the \`description\` parameter.
+
+Diff format:
+\`\`\`
+<<<<<<< SEARCH
+[exact content to find including whitespace]
+=======
+[new content to replace with]
+>>>>>>> REPLACE
+\`\`\`
+
+Example:
+
+Original file:
+\`\`\`
+def calculate_total(items):
+    total = 0
+    for item in items:
+        total += item
+    return total
+\`\`\`
+
+Search/Replace content:
+\`\`\`
+<<<<<<< SEARCH
+def calculate_total(items):
+    total = 0
+    for item in items:
+        total += item
+    return total
+=======
+def calculate_total(items):
+    """Calculate total with 10% markup"""
+    return sum(item * 1.1 for item in items)
+>>>>>>> REPLACE
+
+\`\`\`
+
+Search/Replace content with multiple edits:
+\`\`\`
+<<<<<<< SEARCH
+def calculate_total(items):
+    sum = 0
+=======
+def calculate_sum(items):
+    sum = 0
+>>>>>>> REPLACE
+
+<<<<<<< SEARCH
+        total += item
+    return total
+=======
+        sum += item
+    return sum
+>>>>>>> REPLACE
+\`\`\`
+
+
+Usage:
+<dyad-search-replace path="path/to/file.js" description="Brief description of the changes you are making">
+<<<<<<< SEARCH
+def calculate_total(items):
+    sum = 0
+=======
+def calculate_sum(items):
+    sum = 0
+>>>>>>> REPLACE
+
+<<<<<<< SEARCH
+        total += item
+    return total
+=======
+        sum += item
+    return sum
+>>>>>>> REPLACE
+</dyad-search-replace>
+
+`;

src/pro/shared/search_replace_parser.ts

@@ -0,0 +1,17 @@
+export type SearchReplaceBlock = {
+  searchContent: string;
+  replaceContent: string;
+};
+
+const BLOCK_REGEX =
+  /(?:^|\n)<<<<<<<\s+SEARCH>?\s*\n([\s\S]*?)(?:\n)?(?:(?<=\n)(?<!\\)=======\s*\n)([\s\S]*?)(?:\n)?(?:(?<=\n)(?<!\\)>>>>>>>\s+REPLACE)(?=\n|$)/g;
+
+export function parseSearchReplaceBlocks(
+  diffContent: string,
+): SearchReplaceBlock[] {
+  const matches = [...diffContent.matchAll(BLOCK_REGEX)];
+  return matches.map((m) => ({
+    searchContent: m[1] ?? "",
+    replaceContent: m[2] ?? "",
+  }));
+}

src/prompts/system_prompt.ts

@@ -1,6 +1,7 @@
 import path from "node:path";
 import fs from "node:fs";
 import log from "electron-log";
+import { TURBO_EDITS_V2_SYSTEM_PROMPT } from "../pro/main/prompts/turbo_edits_v2_prompt";
 
 const logger = log.scope("system_prompt");
 
@@ -505,24 +506,36 @@ When tools are not used, simply state: **"Ok, looks like I don't need any tools,
 export const constructSystemPrompt = ({
   aiRules,
   chatMode = "build",
+  enableTurboEditsV2,
 }: {
   aiRules: string | undefined;
   chatMode?: "build" | "ask" | "agent";
+  enableTurboEditsV2: boolean;
 }) => {
-  const systemPrompt = getSystemPromptForChatMode(chatMode);
+  const systemPrompt = getSystemPromptForChatMode({
+    chatMode,
+    enableTurboEditsV2,
+  });
   return systemPrompt.replace("[[AI_RULES]]", aiRules ?? DEFAULT_AI_RULES);
 };
 
-export const getSystemPromptForChatMode = (
+export const getSystemPromptForChatMode = ({
-  chatMode: "build" | "ask" | "agent",
+  chatMode,
-) => {
+  enableTurboEditsV2,
+}: {
+  chatMode: "build" | "ask" | "agent";
+  enableTurboEditsV2: boolean;
+}) => {
   if (chatMode === "agent") {
     return AGENT_MODE_SYSTEM_PROMPT;
   }
   if (chatMode === "ask") {
     return ASK_MODE_SYSTEM_PROMPT;
   }
-  return BUILD_SYSTEM_PROMPT;
+  return (
+    BUILD_SYSTEM_PROMPT +
+    (enableTurboEditsV2 ? TURBO_EDITS_V2_SYSTEM_PROMPT : "")
+  );
 };
 
 export const readAiRules = async (dyadAppPath: string) => {

testing/fake-llm-server/chatCompletionHandler.ts

@@ -127,6 +127,22 @@ export default Index;
       </dyad-write>
       `;
     }
+    if (
+      lastMessage &&
+      typeof lastMessage.content === "string" &&
+      lastMessage.content.startsWith(
+        "There was an issue with the following `dyad-search-replace` tags",
+      )
+    ) {
+      // Fix errors in create-ts-errors.md and introduce a new error
+      messageContent =
+        `
+<dyad-write path="src/pages/Index.tsx" description="Rewrite file.">
+// FILE IS REPLACED WITH FALLBACK WRITE.
+</dyad-write>` +
+        "\n\n" +
+        generateDump(req);
+    }
     console.error("LASTMESSAGE", lastMessage);
     // Check if the last message is "[dump]" to write messages to file and return path
     if (