diff --git a/pkg-py/CHANGELOG.md b/pkg-py/CHANGELOG.md
index 607da5f7..03fdbc7c 100644
--- a/pkg-py/CHANGELOG.md
+++ b/pkg-py/CHANGELOG.md
@@ -9,6 +9,8 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### New features
 
+* The SQL panel in `.app()` is now an editable code editor. Users can tweak the generated SQL directly and apply it with Ctrl/Cmd+Enter or by clicking away — no extra button required. The editor stays in sync when the LLM updates the query or the active table changes. (#265)
+
 * `QueryChat()` now supports **multiple related tables**. Register additional tables with `add_table()` and the LLM can reason across all of them — joins, cross-table filters, aggregations. Per-table reactive state (`df()`, `sql()`, `title()`) is accessible via `qc_vals.table("name")` on the value returned by `server()`. For SQLAlchemy engines and Ibis backends, `add_tables()` registers all tables (or a named subset) in a single call. (#195)
 
   ```python
diff --git a/pkg-py/src/querychat/_shiny.py b/pkg-py/src/querychat/_shiny.py
index ced3361f..7fae2205 100644
--- a/pkg-py/src/querychat/_shiny.py
+++ b/pkg-py/src/querychat/_shiny.py
@@ -5,7 +5,6 @@
 from narwhals.stable.v1.typing import IntoDataFrameT, IntoFrameT, IntoLazyFrameT
 from shiny.express._stub_session import ExpressStubSession
 from shiny.session import get_current_session
-from shinychat import output_markdown_stream
 
 from shiny import App, Inputs, Outputs, Session, reactive, render, req, ui
 
@@ -297,8 +296,11 @@ def app_ui(request):
                                 ui.output_text("query_title", inline=True),
                                 class_="d-flex align-items-center gap-2",
                             ),
-                            ui.output_ui("ui_reset", inline=True),
-                            class_="hstack gap-3",
+                            ui.div(
+                                ui.output_ui("ui_reset", inline=True),
+                                class_="ms-auto",
+                            ),
+                            class_="hstack gap-3 w-100",
                         ),
                     ),
                     ui.output_ui("sql_output"),
@@ -321,7 +323,7 @@ def app_ui(request):
         def app_server(input: Inputs, output: Outputs, session: Session):
             self._mark_server_initialized()
             if enable_bookmarking:
-                session.bookmark.exclude.append("reset_query")
+                session.bookmark.exclude.extend(["reset_query", "sql_editor"])
             vals = mod_server(
                 self.id,
                 data_sources=dict(self._data_sources),
@@ -368,16 +370,35 @@ def dt():
                 # Collect lazy sources (LazyFrame, Ibis Table) to eager DataFrame
                 return as_narwhals(vals.table(active_table_name()).df())
 
+            def sql_text_for_editor(name: str) -> str:
+                return vals.table(name).sql() or f"SELECT * FROM {name}"
+
             @render.ui
             def sql_output():
                 name = active_table_name()
-                sql_value = vals.table(name).sql() or f"SELECT * FROM {name}"
-                sql_code = f"```sql\n{sql_value}\n```"
-                return output_markdown_stream(
-                    "sql_code",
-                    content=sql_code,
-                    auto_scroll=False,
-                    width="100%",
+                with reactive.isolate():
+                    sql_text = sql_text_for_editor(name)
+                return ui.input_code_editor(
+                    "sql_editor",
+                    value=sql_text,
+                    language="sql",
+                    line_numbers=False,
+                    height="auto",
+                )
+
+            @reactive.effect
+            def sync_sql_editor():
+                name = active_table_name()
+                ui.update_code_editor("sql_editor", value=sql_text_for_editor(name))
+
+            @reactive.effect
+            @reactive.event(input.sql_editor)
+            def _():
+                name = active_table_name()
+                query = input.sql_editor()
+                default_query = f"SELECT * FROM {name}"
+                vals._tables[name].sql.set(
+                    query if query and query.strip() != default_query else None
                 )
 
         return App(app_ui, app_server, bookmark_store=bookmark_store)
diff --git a/pkg-py/tests/playwright/test_01_hello_app.py b/pkg-py/tests/playwright/test_01_hello_app.py
index bfc9e6a2..28912065 100644
--- a/pkg-py/tests/playwright/test_01_hello_app.py
+++ b/pkg-py/tests/playwright/test_01_hello_app.py
@@ -45,8 +45,8 @@ def test_welcome_message_appears(self) -> None:
 
     def test_default_sql_query_shown(self) -> None:
         """INIT-03: SQL panel shows default query."""
-        sql_code = self.page.locator("pre code").first
-        expect(sql_code).to_contain_text("SELECT * FROM titanic")
+        sql_code = self.page.locator("bslib-code-editor#sql_editor textarea")
+        expect(sql_code).to_have_value(re.compile(r"SELECT \* FROM titanic"))
 
     def test_data_table_populated(self) -> None:
         """INIT-04: Table shows data rows."""
@@ -85,8 +85,8 @@ def test_submit_via_send_button(self) -> None:
         self.chat.send_user_input(method="click")
 
         # SQL should filter by sex = 'female'
-        sql_code = self.page.locator("pre code").first
-        expect(sql_code).to_contain_text(
+        sql_code = self.page.locator("bslib-code-editor#sql_editor textarea")
+        expect(sql_code).to_have_value(
             re.compile(r"WHERE.*sex.*=.*['\"]?female['\"]?", re.IGNORECASE),
             timeout=60000,
         )
@@ -97,8 +97,8 @@ def test_submit_via_click_survivors(self) -> None:
         self.chat.send_user_input(method="click")
 
         # SQL should filter by survived = 1 (or TRUE)
-        sql_code = self.page.locator("pre code").first
-        expect(sql_code).to_contain_text(
+        sql_code = self.page.locator("bslib-code-editor#sql_editor textarea")
+        expect(sql_code).to_have_value(
             re.compile(r"WHERE.*survived.*=.*(1|TRUE)", re.IGNORECASE), timeout=60000
         )
 
@@ -110,8 +110,8 @@ def test_filter_query(self) -> None:
         self.chat.send_user_input(method="click")
 
         # SQL should filter by survived = 1 (or TRUE)
-        sql_code = self.page.locator("pre code").first
-        expect(sql_code).to_contain_text(
+        sql_code = self.page.locator("bslib-code-editor#sql_editor textarea")
+        expect(sql_code).to_have_value(
             re.compile(r"WHERE.*survived.*=.*(1|TRUE)", re.IGNORECASE), timeout=60000
         )
 
@@ -144,8 +144,8 @@ def test_latest_message_after_query(self) -> None:
         self.chat.send_user_input(method="click")
 
         # SQL should filter by class/pclass = 1 or 'First'
-        sql_code = self.page.locator("pre code").first
-        expect(sql_code).to_contain_text(
+        sql_code = self.page.locator("bslib-code-editor#sql_editor textarea")
+        expect(sql_code).to_have_value(
             re.compile(r"WHERE.*(p?class).*=.*(1|['\"]First['\"])", re.IGNORECASE),
             timeout=60000,
         )
@@ -176,8 +176,8 @@ def test_table_updates_on_query(self) -> None:
         self.chat.send_user_input(method="click")
 
         # SQL should filter by class/pclass = 1 or 'First'
-        sql_code = self.page.locator("pre code").first
-        expect(sql_code).to_contain_text(
+        sql_code = self.page.locator("bslib-code-editor#sql_editor textarea")
+        expect(sql_code).to_have_value(
             re.compile(r"WHERE.*(p?class).*=.*(1|['\"]First['\"])", re.IGNORECASE),
             timeout=60000,
         )
@@ -195,8 +195,8 @@ def test_sql_updates_on_query(self) -> None:
         self.chat.send_user_input(method="click")
 
         # SQL should filter by sex = 'male'
-        sql_code = self.page.locator("pre code").first
-        expect(sql_code).to_contain_text(
+        sql_code = self.page.locator("bslib-code-editor#sql_editor textarea")
+        expect(sql_code).to_have_value(
             re.compile(r"WHERE.*sex.*=.*['\"]?male['\"]?", re.IGNORECASE), timeout=60000
         )
 
@@ -207,8 +207,8 @@ def test_apply_filter_button_re_applies_filter(self) -> None:
         self.chat.set_user_input("Show only first class passengers")
         self.chat.send_user_input(method="click")
 
-        sql_code = self.page.locator("pre code").first
-        expect(sql_code).to_contain_text(
+        sql_code = self.page.locator("bslib-code-editor#sql_editor textarea")
+        expect(sql_code).to_have_value(
             re.compile(r"WHERE.*(p?class).*=.*(1|['\"]First['\"])", re.IGNORECASE),
             timeout=60000,
         )
diff --git a/pkg-py/tests/playwright/test_02_prompt_app.py b/pkg-py/tests/playwright/test_02_prompt_app.py
index 76ac596b..4454b107 100644
--- a/pkg-py/tests/playwright/test_02_prompt_app.py
+++ b/pkg-py/tests/playwright/test_02_prompt_app.py
@@ -6,6 +6,7 @@
 
 from __future__ import annotations
 
+import re
 from typing import TYPE_CHECKING
 
 import pytest
@@ -42,8 +43,8 @@ def test_custom_greeting_appears(self) -> None:
 
     def test_default_sql_query_shown(self) -> None:
         """INIT-03: SQL panel shows default query."""
-        sql_code = self.page.locator("pre code").first
-        expect(sql_code).to_contain_text("SELECT * FROM titanic")
+        sql_code = self.page.locator("bslib-code-editor#sql_editor textarea")
+        expect(sql_code).to_have_value(re.compile(r"SELECT \* FROM titanic"))
 
     def test_chat_input_visible(self) -> None:
         """INIT-04: Chat input is visible."""
diff --git a/pkg-r/NEWS.md b/pkg-r/NEWS.md
index 601b391d..7f8ba58a 100644
--- a/pkg-r/NEWS.md
+++ b/pkg-r/NEWS.md
@@ -2,6 +2,8 @@
 
 ## New features
 
+* The SQL panel in `querychat_app()` is now an editable code editor. Users can tweak the generated SQL directly and apply it with Ctrl/Cmd+Enter or by clicking away — no extra button required. The editor stays in sync when the LLM updates the query or the active table changes. (#265)
+
 * `QueryChat$new()` now supports **multiple related tables**. Register additional tables with `$add_table()` and the LLM can reason across all of them — joins, cross-table filters, aggregations. Per-table reactive state (`$df()`, `$sql()`, `$title()`) is accessible via `qc_vals$table("name")` on the list returned by `$server()`. For DBI connections, `$add_tables()` registers all tables (or a named subset) in a single call. (#195)
 
   ```r
diff --git a/pkg-r/R/QueryChat.R b/pkg-r/R/QueryChat.R
index d5a7303b..9e0731bc 100644
--- a/pkg-r/R/QueryChat.R
+++ b/pkg-r/R/QueryChat.R
@@ -730,7 +730,7 @@ QueryChat <- R6::R6Class(
             style = bslib::css(max_height = "33%"),
             bslib::card_header(
               shiny::div(
-                class = "hstack",
+                class = "hstack w-100",
                 shiny::div(
                   bsicons::bs_icon("terminal-fill"),
                   shiny::textOutput("query_title", inline = TRUE)
@@ -764,7 +764,11 @@ QueryChat <- R6::R6Class(
       }
 
       server <- function(input, output, session) {
-        shiny::setBookmarkExclude(c("close_btn", "reset_query"))
+        shiny::setBookmarkExclude(c(
+          "close_btn",
+          "reset_query",
+          "sql_editor"
+        ))
         enable_bookmarking <- bookmark_store %in% c("url", "server")
         qc_vals <- self$server(enable_bookmarking = enable_bookmarking)
 
@@ -809,20 +813,41 @@ QueryChat <- R6::R6Class(
           )
         })
 
+        sql_text_for_editor <- function(name) {
+          sql <- qc_vals$.tables[[name]]$sql()
+          if (shiny::isTruthy(sql)) sql else paste("SELECT * FROM", name)
+        }
+
         output$sql_output <- shiny::renderUI({
           name <- active_table_name()
-          sql <- qc_vals$.tables[[name]]$sql()
-          sql_text <- if (shiny::isTruthy(sql)) {
-            sql
-          } else {
-            paste("SELECT * FROM", name)
-          }
-          sql_code <- paste(c("```sql", sql_text, "```"), collapse = "\n")
-          shinychat::output_markdown_stream(
-            "sql_code",
-            content = sql_code,
-            auto_scroll = FALSE,
-            width = "100%"
+          sql_text <- shiny::isolate(sql_text_for_editor(name))
+          bslib::input_code_editor(
+            "sql_editor",
+            value = sql_text,
+            language = "sql",
+            line_numbers = FALSE,
+            height = "auto"
+          )
+        })
+
+        shiny::observe(label = "sync_sql_editor", {
+          name <- active_table_name()
+          bslib::update_code_editor(
+            "sql_editor",
+            value = sql_text_for_editor(name)
+          )
+        })
+
+        shiny::observeEvent(input$sql_editor, label = "on_sql_editor", {
+          name <- active_table_name()
+          query <- input$sql_editor
+          default_query <- paste("SELECT * FROM", name)
+          qc_vals$.tables[[name]]$sql(
+            if (nzchar(query %||% "") && trimws(query) != default_query) {
+              query
+            } else {
+              NULL
+            }
           )
         })