diff --git a/packages/server/src/filesystem/__tests__/search-cache.test.ts b/packages/server/src/filesystem/__tests__/search-cache.test.ts
index 1823c5f8..8000cf48 100644
--- a/packages/server/src/filesystem/__tests__/search-cache.test.ts
+++ b/packages/server/src/filesystem/__tests__/search-cache.test.ts
@@ -17,10 +17,11 @@ describe("workspace search cache", () => {
     const workspacePath = "/tmp/workspace"
     const startTime = 1_000
 
-    refreshWorkspaceCandidates(workspacePath, () => [createEntry("file-a")], startTime)
+    refreshWorkspaceCandidates(workspacePath, "query-a", () => [createEntry("file-a")], startTime)
 
     const beforeExpiry = getWorkspaceCandidates(
       workspacePath,
+      "query-a",
       startTime + WORKSPACE_CANDIDATE_CACHE_TTL_MS - 1,
     )
     assert.ok(beforeExpiry)
@@ -29,6 +30,7 @@ describe("workspace search cache", () => {
 
     const afterExpiry = getWorkspaceCandidates(
       workspacePath,
+      "query-a",
       startTime + WORKSPACE_CANDIDATE_CACHE_TTL_MS + 1,
     )
     assert.equal(afterExpiry, undefined)
@@ -37,16 +39,32 @@ describe("workspace search cache", () => {
   it("replaces cached entries when manually refreshed", () => {
     const workspacePath = "/tmp/workspace"
 
-    refreshWorkspaceCandidates(workspacePath, () => [createEntry("file-a")], 5_000)
-    const initial = getWorkspaceCandidates(workspacePath, 5_001)
+    refreshWorkspaceCandidates(workspacePath, "query-a", () => [createEntry("file-a")], 5_000)
+    const initial = getWorkspaceCandidates(workspacePath, "query-a", 5_001)
     assert.ok(initial)
     assert.equal(initial[0].name, "file-a")
 
-    refreshWorkspaceCandidates(workspacePath, () => [createEntry("file-b")], 6_000)
-    const refreshed = getWorkspaceCandidates(workspacePath, 6_001)
+    refreshWorkspaceCandidates(workspacePath, "query-a", () => [createEntry("file-b")], 6_000)
+    const refreshed = getWorkspaceCandidates(workspacePath, "query-a", 6_001)
     assert.ok(refreshed)
     assert.equal(refreshed[0].name, "file-b")
   })
+
+  it("does not reuse candidates across query scopes", () => {
+    const workspacePath = "/tmp/workspace"
+
+    refreshWorkspaceCandidates(workspacePath, "query-a", () => [createEntry("file-a")], 5_000)
+    assert.equal(getWorkspaceCandidates(workspacePath, "query-a", 5_001)?.[0].name, "file-a")
+    assert.equal(getWorkspaceCandidates(workspacePath, "query-b", 5_001), undefined)
+
+    refreshWorkspaceCandidates(workspacePath, "query-b", () => [createEntry("file-b")], 5_000)
+    assert.equal(getWorkspaceCandidates(workspacePath, "query-a", 5_001), undefined)
+    assert.equal(getWorkspaceCandidates(workspacePath, "query-b", 5_001)?.[0].name, "file-b")
+
+    clearWorkspaceSearchCache(workspacePath)
+    assert.equal(getWorkspaceCandidates(workspacePath, "query-a", 5_001), undefined)
+    assert.equal(getWorkspaceCandidates(workspacePath, "query-b", 5_001), undefined)
+  })
 })
 
 function createEntry(name: string): FileSystemEntry {
diff --git a/packages/server/src/filesystem/__tests__/search.test.ts b/packages/server/src/filesystem/__tests__/search.test.ts
new file mode 100644
index 00000000..63fae4a7
--- /dev/null
+++ b/packages/server/src/filesystem/__tests__/search.test.ts
@@ -0,0 +1,63 @@
+import assert from "node:assert/strict"
+import fs from "node:fs"
+import os from "node:os"
+import path from "node:path"
+import { after, test } from "node:test"
+import { searchWorkspaceFiles } from "../search"
+import { getWorkspaceCandidates } from "../search-cache"
+
+const workspace = fs.mkdtempSync(path.join(os.tmpdir(), "codenomad-search-"))
+
+after(() => fs.rmSync(workspace, { recursive: true, force: true }))
+
+test("finds a matching file after more than 8000 non-matching entries", () => {
+  fs.mkdirSync(path.join(workspace, "a"))
+  fs.mkdirSync(path.join(workspace, "b"))
+
+  const [targetDirName, fillerDirName] = fs.readdirSync(workspace)
+  const fillerDir = path.join(workspace, fillerDirName)
+  const targetDir = path.join(workspace, targetDirName)
+
+  for (let index = 0; index < 8_001; index += 1) {
+    fs.writeFileSync(path.join(fillerDir, `filler-${index}.txt`), "")
+  }
+  fs.writeFileSync(path.join(targetDir, "unique-search-target.txt"), "")
+
+  const results = searchWorkspaceFiles(workspace, "unique-search-target", {
+    type: "file",
+    refresh: true,
+  })
+
+  assert.equal(results.some((entry) => entry.name === "unique-search-target.txt"), true)
+
+  searchWorkspaceFiles(workspace, "filler", { type: "file", refresh: true })
+  assert.equal(getWorkspaceCandidates(workspace, "file\0filler")?.length, 8_000)
+})
+
+test("does not revisit directory links", () => {
+  const cyclicWorkspace = fs.mkdtempSync(path.join(os.tmpdir(), "codenomad-search-cycle-"))
+  try {
+    fs.symlinkSync(cyclicWorkspace, path.join(cyclicWorkspace, "cycle"), process.platform === "win32" ? "junction" : "dir")
+    assert.deepEqual(searchWorkspaceFiles(cyclicWorkspace, "not-present", { refresh: true }), [])
+  } finally {
+    fs.rmSync(cyclicWorkspace, { recursive: true, force: true })
+  }
+})
+
+test("indexes both real and linked directory paths", () => {
+  const linkedWorkspace = fs.mkdtempSync(path.join(os.tmpdir(), "codenomad-search-link-"))
+  try {
+    const realDirectory = path.join(linkedWorkspace, "b")
+    fs.mkdirSync(realDirectory)
+    fs.writeFileSync(path.join(realDirectory, "needle.txt"), "")
+    fs.symlinkSync(realDirectory, path.join(linkedWorkspace, "a"), process.platform === "win32" ? "junction" : "dir")
+
+    const linkedResults = searchWorkspaceFiles(linkedWorkspace, "a/needle", { type: "file", refresh: true })
+    const realResults = searchWorkspaceFiles(linkedWorkspace, "b/needle", { type: "file", refresh: true })
+
+    assert.equal(linkedResults.some((entry) => entry.path === "a/needle.txt"), true)
+    assert.equal(realResults.some((entry) => entry.path === "b/needle.txt"), true)
+  } finally {
+    fs.rmSync(linkedWorkspace, { recursive: true, force: true })
+  }
+})
diff --git a/packages/server/src/filesystem/search-cache.ts b/packages/server/src/filesystem/search-cache.ts
index 5568204b..17cf4e16 100644
--- a/packages/server/src/filesystem/search-cache.ts
+++ b/packages/server/src/filesystem/search-cache.ts
@@ -4,16 +4,17 @@ import type { FileSystemEntry } from "../api-types"
 export const WORKSPACE_CANDIDATE_CACHE_TTL_MS = 30_000
 
 interface WorkspaceCandidateCacheEntry {
+  scope: string
   expiresAt: number
   candidates: FileSystemEntry[]
 }
 
 const workspaceCandidateCache = new Map<string, WorkspaceCandidateCacheEntry>()
 
-export function getWorkspaceCandidates(rootDir: string, now = Date.now()): FileSystemEntry[] | undefined {
+export function getWorkspaceCandidates(rootDir: string, scope: string, now = Date.now()): FileSystemEntry[] | undefined {
   const key = normalizeKey(rootDir)
   const cached = workspaceCandidateCache.get(key)
-  if (!cached) {
+  if (!cached || cached.scope !== scope) {
     return undefined
   }
 
@@ -27,19 +28,16 @@ export function getWorkspaceCandidates(rootDir: string, now = Date.now()): FileS
 
 export function refreshWorkspaceCandidates(
   rootDir: string,
+  scope: string,
   builder: () => FileSystemEntry[],
   now = Date.now(),
 ): FileSystemEntry[] {
   const key = normalizeKey(rootDir)
   const freshCandidates = builder()
 
-  if (!freshCandidates || freshCandidates.length === 0) {
-    workspaceCandidateCache.delete(key)
-    return []
-  }
-
   const storedCandidates = cloneEntries(freshCandidates)
   workspaceCandidateCache.set(key, {
+    scope,
     expiresAt: now + WORKSPACE_CANDIDATE_CACHE_TTL_MS,
     candidates: storedCandidates,
   })
@@ -53,8 +51,7 @@ export function clearWorkspaceSearchCache(rootDir?: string) {
     return
   }
 
-  const key = normalizeKey(rootDir)
-  workspaceCandidateCache.delete(key)
+  workspaceCandidateCache.delete(normalizeKey(rootDir))
 }
 
 function cloneEntries(entries: FileSystemEntry[]): FileSystemEntry[] {
diff --git a/packages/server/src/filesystem/search.ts b/packages/server/src/filesystem/search.ts
index 77347b05..53da6066 100644
--- a/packages/server/src/filesystem/search.ts
+++ b/packages/server/src/filesystem/search.ts
@@ -40,16 +40,19 @@ export function searchWorkspaceFiles(
   const limit = normalizeLimit(options.limit)
   const typeFilter: WorkspaceFileSearchType = options.type ?? "all"
   const refreshRequested = options.refresh === true
+  const cacheScope = `${typeFilter}\0${trimmedQuery.toLowerCase()}`
 
   let entries: FileSystemEntry[] | undefined
 
   try {
     if (!refreshRequested) {
-      entries = getWorkspaceCandidates(normalizedRoot)
+      entries = getWorkspaceCandidates(normalizedRoot, cacheScope)
     }
 
     if (!entries) {
-      entries = refreshWorkspaceCandidates(normalizedRoot, () => collectCandidates(normalizedRoot))
+      entries = refreshWorkspaceCandidates(normalizedRoot, cacheScope, () =>
+        collectCandidates(normalizedRoot, trimmedQuery, typeFilter),
+      )
     }
   } catch (error) {
     clearWorkspaceSearchCache(normalizedRoot)
@@ -57,7 +60,6 @@ export function searchWorkspaceFiles(
   }
 
   if (!entries || entries.length === 0) {
-    clearWorkspaceSearchCache(normalizedRoot)
     return []
   }
 
@@ -80,16 +82,25 @@ export function searchWorkspaceFiles(
 }
 
 
-function collectCandidates(rootDir: string): FileSystemEntry[] {
-  const queue: string[] = [""]
+function collectCandidates(rootDir: string, query: string, filter: WorkspaceFileSearchType): FileSystemEntry[] {
+  const queue: Array<{ relativeDir: string; ancestors: ReadonlySet<string> }> = [
+    { relativeDir: "", ancestors: new Set() },
+  ]
   const entries: FileSystemEntry[] = []
 
   while (queue.length > 0 && entries.length < MAX_CANDIDATES) {
-    const relativeDir = queue.pop() || ""
+    const queuedDirectory = queue.pop()!
+    const { relativeDir, ancestors } = queuedDirectory
     const absoluteDir = relativeDir ? path.join(rootDir, relativeDir) : rootDir
 
     let dirents: fs.Dirent[]
+    let branchAncestors: ReadonlySet<string>
     try {
+      const realDir = normalizeDirectoryIdentity(fs.realpathSync.native(absoluteDir))
+      if (ancestors.has(realDir)) {
+        continue
+      }
+      branchAncestors = new Set([...ancestors, realDir])
       dirents = fs.readdirSync(absoluteDir, { withFileTypes: true })
     } catch {
       continue
@@ -115,9 +126,7 @@ function collectCandidates(rootDir: string): FileSystemEntry[] {
       const isDirectory = stats.isDirectory()
 
       if (isDirectory && !IGNORED_DIRECTORIES.has(lowerName)) {
-        if (entries.length < MAX_CANDIDATES) {
-          queue.push(relativePath)
-        }
+        queue.push({ relativeDir: relativePath, ancestors: branchAncestors })
       }
 
       const entryType: FileSystemEntry["type"] = isDirectory ? "directory" : "file"
@@ -131,8 +140,11 @@ function collectCandidates(rootDir: string): FileSystemEntry[] {
         modifiedAt: stats.mtime.toISOString(),
       }
 
-      entries.push(entry)
+      if (!shouldInclude(entry.type, filter) || !fuzzysort.single(query, buildSearchKey(entry))) {
+        continue
+      }
 
+      entries.push(entry)
       if (entries.length >= MAX_CANDIDATES) {
         break
       }
@@ -182,3 +194,7 @@ function normalizeRelativeEntryPath(relativePath: string): string {
 function buildSearchKey(entry: FileSystemEntry) {
   return entry.path.toLowerCase()
 }
+
+function normalizeDirectoryIdentity(directoryPath: string) {
+  return process.platform === "win32" ? directoryPath.toLowerCase() : directoryPath
+}
diff --git a/packages/ui/src/components/unified-picker.tsx b/packages/ui/src/components/unified-picker.tsx
index b06e54a7..6c9e5837 100644
--- a/packages/ui/src/components/unified-picker.tsx
+++ b/packages/ui/src/components/unified-picker.tsx
@@ -443,7 +443,7 @@ const UnifiedPicker: Component<UnifiedPickerProps> = (props) => {
     <Show when={props.open}>
       <div
         ref={containerRef}
-        class="dropdown-surface bottom-full left-0 mb-1 max-w-md"
+        class="dropdown-surface bottom-full left-0 mb-1"
       >
         <div class="dropdown-header">
           <div class="dropdown-header-title">
@@ -456,7 +456,7 @@ const UnifiedPicker: Component<UnifiedPickerProps> = (props) => {
           </div>
         </div>
 
-        <div ref={scrollContainerRef} class="dropdown-content max-h-60">
+        <div ref={scrollContainerRef} class="dropdown-content max-h-60 overflow-x-auto">
           <Show when={(mode() === "command" ? commandCount() === 0 : agentCount() === 0 && fileCount() === 0)}>
             <div class="dropdown-empty">{t("unifiedPicker.empty")}</div>
           </Show>
@@ -593,7 +593,7 @@ const UnifiedPicker: Component<UnifiedPickerProps> = (props) => {
                     data-picker-selected={itemIndex === selectedIndex()}
                     onClick={() => props.onSelect({ type: "file", file }, "click")}
                   >
-                    <div class="flex items-center gap-2 text-sm">
+                    <div class="flex min-w-full w-max items-center gap-2 text-sm">
                       <Show
                         when={isFolder}
                         fallback={
@@ -616,7 +616,7 @@ const UnifiedPicker: Component<UnifiedPickerProps> = (props) => {
                           />
                         </svg>
                       </Show>
-                      <span class="truncate">{file.path}</span>
+                      <span class="whitespace-nowrap">{file.path}</span>
                     </div>
                   </div>
                 )