diff --git a/src/lib/components/chat/FileNav.svelte b/src/lib/components/chat/FileNav.svelte
index 86c3df609f..aeb09fc73e 100644
--- a/src/lib/components/chat/FileNav.svelte
+++ b/src/lib/components/chat/FileNav.svelte
@@ -847,7 +847,6 @@
 	// ── Lifecycle ────────────────────────────────────────────────────────
 	onMount(async () => {
 		const terminal = getTerminal();
-		if (!terminal) return;
 
 		let handledDisplayFile = false;
 
@@ -902,7 +901,7 @@
 			}
 		});
 
-		if (!handledDisplayFile) {
+		if (!handledDisplayFile && terminal) {
 			loading = true;
 
 			// Discover server features on initial mount
@@ -1383,7 +1382,7 @@
 						<Spinner className="size-4" />
 						{$i18n.t('Uploading...')}
 					</div>
-				{:else if loading}
+				{:else if loading || ($selectedTerminalId && $terminalServers === null)}
 					<div class="flex justify-center pt-8"><Spinner className="size-4" /></div>
 				{:else if error}
 					<div class="p-4 text-xs">{error}</div>
@@ -1399,7 +1398,7 @@
 					</div>
 				{/if}
 
-				{#if !loading && !error && !uploading}
+				{#if !loading && !error && !uploading && !($selectedTerminalId && $terminalServers === null)}
 					{#if creatingFolder}
 						<div class="flex items-center gap-2 px-3 py-1.5">
 							<Folder className="size-4 shrink-0 text-blue-400 dark:text-blue-300" />
diff --git a/src/routes/(app)/+layout.svelte b/src/routes/(app)/+layout.svelte
index 7e4daa94f7..71bbd80ec7 100644
--- a/src/routes/(app)/+layout.svelte
+++ b/src/routes/(app)/+layout.svelte
@@ -141,51 +141,49 @@
 		toolServers.set(toolServersData);
 
 		// Inject enabled terminal servers as always-on tool servers
-		const enabledTerminals = ($settings?.terminalServers ?? []).filter((s) => s.enabled);
-		if (enabledTerminals.length > 0) {
-			let terminalServersData = await getToolServersData(
-				enabledTerminals.map((t) => ({
-					url: t.url,
-					auth_type: t.auth_type ?? 'bearer',
-					key: t.key ?? '',
-					path: t.path ?? '/openapi.json',
-					config: { enable: true }
-				}))
-			);
-			terminalServersData = terminalServersData
-				.filter((data) => {
-					if (!data || data.error) {
-						toast.error(
-							$i18n.t(`Failed to connect to {{URL}} terminal server`, {
-								URL: data?.url
-							})
-						);
-						return false;
-					}
-					return true;
-				})
-				.map((data, i) => ({
-					...data,
-					key: enabledTerminals[i]?.key ?? ''
-				}));
-
-			terminalServers.set(terminalServersData);
-		} else {
-			terminalServers.set([]);
-		}
+		const enabledTerminals = (($settings as any)?.terminalServers ?? []).filter(
+			(s: any) => s.enabled || s.url === $selectedTerminalId
+		);
 
 		// Fetch terminal servers the user has access to (for FileNav + terminal_id)
 		const systemTerminals = await getTerminalServers(localStorage.token);
-		if (systemTerminals.length > 0) {
+		terminalServers.set([
+			...(enabledTerminals.length > 0
+				? (
+						await getToolServersData(
+							enabledTerminals.map((t: any) => ({
+								url: t.url,
+								auth_type: t.auth_type ?? 'bearer',
+								key: t.key ?? '',
+								path: t.path ?? '/openapi.json',
+								config: { enable: true }
+							}))
+						)
+					)
+						.filter((data) => {
+							if (!data || data.error) {
+								toast.error(
+									$i18n.t(`Failed to connect to {{URL}} terminal server`, {
+										URL: data?.url
+									})
+								);
+								return false;
+							}
+							return true;
+						})
+						.map((data, i) => ({
+							...data,
+							key: enabledTerminals[i]?.key ?? ''
+						}))
+				: []),
 			// Store with proxy URL and session key for FileNav file browsing
-			const terminalEntries = systemTerminals.map((t) => ({
+			...systemTerminals.map((t) => ({
 				id: t.id,
 				url: `${WEBUI_API_BASE_URL}/terminals/${t.id}`,
 				name: t.name,
 				key: localStorage.token
-			}));
-			terminalServers.update((existing) => [...(existing ?? []), ...terminalEntries]);
-		}
+			}))
+		]);
 	};
 
 	const setBanners = async () => {
@@ -264,6 +262,8 @@
 			}).catch((e) => console.error('Failed to load user settings:', e))
 		]);
 
+		selectedTerminalId.set(localStorage.selectedTerminalId ?? null);
+
 		const loadToolServers = setToolServers().catch((e) => {
 			console.error('Failed to load tool servers:', e);
 			terminalServers.set([]);
@@ -402,7 +402,6 @@
 		});
 
 		// Persist selectedTerminalId across page loads
-		selectedTerminalId.set(localStorage.selectedTerminalId ?? null);
 		selectedTerminalId.subscribe((value) => {
 			if (value === null) {
 				delete localStorage.selectedTerminalId;