Allow local agent to inspect ignored files (#3256)

e2e-tests/fixtures/engine/local-agent/grep-include-ignored.ts

+import type { LocalAgentFixture } from "../../../../testing/fake-llm-server/localAgentTypes";
+
+export const fixture: LocalAgentFixture = {
+  description: "Search ignored files using grep",
+  turns: [
+    {
+      text: "I'll search the ignored dependency folder for the requested symbol.",
+      toolCalls: [
+        {
+          name: "grep",
+          args: {
+            query: "ignoredNeedle",
+            include_pattern: "node_modules/ignored-pkg/**",
+            include_ignored: true,
+          },
+        },
+      ],
+    },
+    {
+      text: "I found the symbol in the ignored dependency folder.",
+    },
+  ],
+};

e2e-tests/fixtures/engine/local-agent/list-files-include-hidden.ts → e2e-tests/fixtures/engine/local-agent/list-files-include-ignored.ts

 import type { LocalAgentFixture } from "../../../../testing/fake-llm-server/localAgentTypes";
 
 export const fixture: LocalAgentFixture = {
-  description: "List files including hidden .dyad files",
+  description: "List files including ignored .dyad files",
   turns: [
     {
-      text: "I'll list all files including the hidden .dyad directory for you.",
+      text: "I'll list all files including the ignored .dyad directory for you.",
       toolCalls: [
         {
           name: "list_files",
           args: {
+            directory: ".dyad",
             recursive: true,
-            include_hidden: true,
+            include_ignored: true,
           },
         },
       ],
     },
     {
-      text: "Here are all the files including the hidden .dyad files.",
+      text: "Here are the ignored .dyad files.",
     },
   ],
 };

e2e-tests/local_agent_grep.spec.ts

 import { expect } from "@playwright/test";
+import fs from "fs";
+import path from "path";
 import { testSkipIfWindows } from "./helpers/test_helper";
 
 /**
@@ -19,3 +21,28 @@ testSkipIfWindows("local-agent - grep search", async ({ po }) => {
   await expect(po.page.getByTestId("dyad-grep").first()).toMatchAriaSnapshot();
   await expect(po.page.getByTestId("dyad-grep").nth(1)).toMatchAriaSnapshot();
 });
+
+testSkipIfWindows(
+  "local-agent - grep searches ignored files when requested",
+  async ({ po }) => {
+    await po.setUpDyadPro({ localAgent: true });
+    await po.importApp("minimal");
+    await po.chatActions.selectLocalAgentMode();
+
+    const appPath = await po.appManagement.getCurrentAppPath();
+    const ignoredPackageDir = path.join(appPath, "node_modules", "ignored-pkg");
+    fs.mkdirSync(ignoredPackageDir, { recursive: true });
+    fs.writeFileSync(
+      path.join(ignoredPackageDir, "index.js"),
+      "export const ignoredNeedle = 'search ignored files';\n",
+    );
+
+    await po.sendPrompt("tc=local-agent/grep-include-ignored");
+
+    const grepCard = po.page.getByTestId("dyad-grep").first();
+    await expect(grepCard).toContainText('"ignoredNeedle"');
+    await grepCard.click();
+    await expect(grepCard).toContainText("node_modules/ignored-pkg/index.js");
+    await expect(grepCard).toContainText("ignoredNeedle");
+  },
+);

e2e-tests/local_agent_list_files.spec.ts

@@ -21,13 +21,16 @@ testSkipIfWindows("local-agent - list_files", async ({ po }) => {
   await expect(listFiles2).toMatchAriaSnapshot();
 });
 
-testSkipIfWindows("local-agent - list_files include_hidden", async ({ po }) => {
+testSkipIfWindows(
+  "local-agent - list_files include_ignored",
+  async ({ po }) => {
     await po.setUpDyadPro({ localAgent: true });
     await po.importApp("minimal-with-dyad");
     await po.chatActions.selectLocalAgentMode();
 
-  await po.sendPrompt("tc=local-agent/list-files-include-hidden");
+    await po.sendPrompt("tc=local-agent/list-files-include-ignored");
     const listFiles = po.page.getByTestId("dyad-list-files").first();
     await listFiles.click();
     await expect(listFiles).toMatchAriaSnapshot();
-});
+  },
+);

e2e-tests/local_agent_read_logs.spec.ts

+import { expect } from "@playwright/test";
 import { testSkipIfWindows } from "./helpers/test_helper";
 
 /**
@@ -18,5 +19,27 @@ testSkipIfWindows("local-agent - read logs with filters", async ({ po }) => {
   // - Client logs from last minute
   await po.sendPrompt("tc=local-agent/read-logs");
 
-  await po.snapshotMessages();
+  await expect(
+    po.page.getByText(
+      "Let me check the recent console logs to see what's happening in the application.",
+    ),
+  ).toBeVisible();
+  await expect(
+    po.page.getByRole("button", { name: /LOGS Reading \d+ logs$/ }),
+  ).toBeVisible();
+  await expect(
+    po.page.getByRole("button", {
+      name: /LOGS Reading \d+ logs \(level: error\)/,
+    }),
+  ).toBeVisible();
+  await expect(
+    po.page.getByRole("button", {
+      name: /LOGS Reading \d+ logs \(type: client\)/,
+    }),
+  ).toBeVisible();
+  await expect(
+    po.page.getByText(
+      "I've reviewed the console logs. The application appears to be running normally with no critical errors detected.",
+    ),
+  ).toBeVisible();
 });

e2e-tests/snapshots/local_agent_ask.spec.ts_local-agent-ask-mode-1.txt

@@ -86,7 +86,7 @@
         "type": "function",
         "function": {
           "name": "list_files",
-          "description": "List files in the application directory. By default, lists only the immediate directory contents. Use recursive=true to list all files recursively. If you are not sure, list all files by omitting the directory parameter.",
+          "description": "List files in the application directory. By default, lists only the immediate directory contents. Use recursive=true to list all files recursively. Use include_ignored=true to include git-ignored and hidden paths; recursive ignored listings require directory to be set. Results are capped at 1000 paths.",
           "parameters": {
             "$schema": "http://json-schema.org/draft-07/schema#",
             "type": "object",
@@ -99,8 +99,8 @@
                 "description": "Whether to list files recursively (default: false)",
                 "type": "boolean"
               },
-              "include_hidden": {
-                "description": "Whether to include .dyad files which are git-ignored (default: false)",
+              "include_ignored": {
+                "description": "Whether to include git-ignored and hidden files/directories such as node_modules (default: false).",
                 "type": "boolean"
               }
             },
@@ -112,7 +112,7 @@
         "type": "function",
         "function": {
           "name": "grep",
-          "description": "Search for a regex pattern in the codebase using ripgrep.\n\n- Returns matching lines with file paths and line numbers\n- By default, the search is case-insensitive\n- Use include_pattern to filter by file type (e.g. '*.tsx')\n- Use exclude_pattern to skip certain files (e.g. '*.test.ts')\n- Results are limited to 100 matches by default (max 250). If results are truncated, narrow your search with include_pattern or a more specific query.",
+          "description": "Search for a regex pattern in the codebase using ripgrep.\n\n- Returns matching lines with file paths and line numbers\n- By default, the search is case-insensitive\n- Use include_pattern to filter by file type (e.g. '*.tsx')\n- Use exclude_pattern to skip certain files (e.g. '*.test.ts')\n- Use include_ignored=true to search git-ignored and hidden files/directories such as node_modules. Pair it with include_pattern to keep searches scoped.\n- Results are limited to 100 matches by default (max 250). If results are truncated, narrow your search with include_pattern or a more specific query.",
           "parameters": {
             "$schema": "http://json-schema.org/draft-07/schema#",
             "type": "object",
@@ -129,6 +129,10 @@
                 "description": "Glob pattern for files to exclude",
                 "type": "string"
               },
+              "include_ignored": {
+                "description": "Whether to include git-ignored and hidden files/directories such as node_modules (default: false). Use include_pattern to keep this scoped.",
+                "type": "boolean"
+              },
               "case_sensitive": {
                 "description": "Whether the search should be case sensitive (default: false)",
                 "type": "boolean"

e2e-tests/snapshots/local_agent_auto.spec.ts_local-agent---auto-model-1.txt

@@ -252,7 +252,7 @@
       {
         "type": "function",
         "name": "list_files",
-        "description": "List files in the application directory. By default, lists only the immediate directory contents. Use recursive=true to list all files recursively. If you are not sure, list all files by omitting the directory parameter.",
+        "description": "List files in the application directory. By default, lists only the immediate directory contents. Use recursive=true to list all files recursively. Use include_ignored=true to include git-ignored and hidden paths; recursive ignored listings require directory to be set. Results are capped at 1000 paths.",
         "parameters": {
           "$schema": "http://json-schema.org/draft-07/schema#",
           "type": "object",
@@ -265,8 +265,8 @@
               "description": "Whether to list files recursively (default: false)",
               "type": "boolean"
             },
-            "include_hidden": {
-              "description": "Whether to include .dyad files which are git-ignored (default: false)",
+            "include_ignored": {
+              "description": "Whether to include git-ignored and hidden files/directories such as node_modules (default: false).",
               "type": "boolean"
             }
           },
@@ -276,7 +276,7 @@
       {
         "type": "function",
         "name": "grep",
-        "description": "Search for a regex pattern in the codebase using ripgrep.\n\n- Returns matching lines with file paths and line numbers\n- By default, the search is case-insensitive\n- Use include_pattern to filter by file type (e.g. '*.tsx')\n- Use exclude_pattern to skip certain files (e.g. '*.test.ts')\n- Results are limited to 100 matches by default (max 250). If results are truncated, narrow your search with include_pattern or a more specific query.",
+        "description": "Search for a regex pattern in the codebase using ripgrep.\n\n- Returns matching lines with file paths and line numbers\n- By default, the search is case-insensitive\n- Use include_pattern to filter by file type (e.g. '*.tsx')\n- Use exclude_pattern to skip certain files (e.g. '*.test.ts')\n- Use include_ignored=true to search git-ignored and hidden files/directories such as node_modules. Pair it with include_pattern to keep searches scoped.\n- Results are limited to 100 matches by default (max 250). If results are truncated, narrow your search with include_pattern or a more specific query.",
         "parameters": {
           "$schema": "http://json-schema.org/draft-07/schema#",
           "type": "object",
@@ -293,6 +293,10 @@
               "description": "Glob pattern for files to exclude",
               "type": "string"
             },
+            "include_ignored": {
+              "description": "Whether to include git-ignored and hidden files/directories such as node_modules (default: false). Use include_pattern to keep this scoped.",
+              "type": "boolean"
+            },
             "case_sensitive": {
               "description": "Whether the search should be case sensitive (default: false)",
               "type": "boolean"

e2e-tests/snapshots/local_agent_basic.spec.ts_local-agent---dump-request-1.txt

@@ -251,7 +251,7 @@
         "type": "function",
         "function": {
           "name": "list_files",
-          "description": "List files in the application directory. By default, lists only the immediate directory contents. Use recursive=true to list all files recursively. If you are not sure, list all files by omitting the directory parameter.",
+          "description": "List files in the application directory. By default, lists only the immediate directory contents. Use recursive=true to list all files recursively. Use include_ignored=true to include git-ignored and hidden paths; recursive ignored listings require directory to be set. Results are capped at 1000 paths.",
           "parameters": {
             "$schema": "http://json-schema.org/draft-07/schema#",
             "type": "object",
@@ -264,8 +264,8 @@
                 "description": "Whether to list files recursively (default: false)",
                 "type": "boolean"
               },
-              "include_hidden": {
-                "description": "Whether to include .dyad files which are git-ignored (default: false)",
+              "include_ignored": {
+                "description": "Whether to include git-ignored and hidden files/directories such as node_modules (default: false).",
                 "type": "boolean"
               }
             },
@@ -277,7 +277,7 @@
         "type": "function",
         "function": {
           "name": "grep",
-          "description": "Search for a regex pattern in the codebase using ripgrep.\n\n- Returns matching lines with file paths and line numbers\n- By default, the search is case-insensitive\n- Use include_pattern to filter by file type (e.g. '*.tsx')\n- Use exclude_pattern to skip certain files (e.g. '*.test.ts')\n- Results are limited to 100 matches by default (max 250). If results are truncated, narrow your search with include_pattern or a more specific query.",
+          "description": "Search for a regex pattern in the codebase using ripgrep.\n\n- Returns matching lines with file paths and line numbers\n- By default, the search is case-insensitive\n- Use include_pattern to filter by file type (e.g. '*.tsx')\n- Use exclude_pattern to skip certain files (e.g. '*.test.ts')\n- Use include_ignored=true to search git-ignored and hidden files/directories such as node_modules. Pair it with include_pattern to keep searches scoped.\n- Results are limited to 100 matches by default (max 250). If results are truncated, narrow your search with include_pattern or a more specific query.",
           "parameters": {
             "$schema": "http://json-schema.org/draft-07/schema#",
             "type": "object",
@@ -294,6 +294,10 @@
                 "description": "Glob pattern for files to exclude",
                 "type": "string"
               },
+              "include_ignored": {
+                "description": "Whether to include git-ignored and hidden files/directories such as node_modules (default: false). Use include_pattern to keep this scoped.",
+                "type": "boolean"
+              },
               "case_sensitive": {
                 "description": "Whether the search should be case sensitive (default: false)",
                 "type": "boolean"

e2e-tests/snapshots/local_agent_list_files.spec.ts_local-agent---list-files-1.aria.yml

-- button "src - src/App.tsx - src/main.tsx - src/vite-env.d.ts (3 files total)" [expanded]:
+- button "src - src/App.tsx - src/main.tsx - src/vite-env.d.ts (3 paths total)" [expanded]:
   - img
   - text: ""
   - img

e2e-tests/snapshots/local_agent_list_files.spec.ts_local-agent---list-files-2.aria.yml

-- button "src recursive - src/App.tsx - src/main.tsx - src/vite-env.d.ts (3 files total)" [expanded]:
+- button "src recursive - src/App.tsx - src/main.tsx - src/vite-env.d.ts (3 paths total)" [expanded]:
   - img
   - text: ""
   - img

e2e-tests/snapshots/local_agent_list_files.spec.ts_local-agent---list-files-include-ignored-1.aria.yml

+- button ".dyad recursive include ignored - .dyad/ - .dyad/plans/ - .dyad/plans/test-plan.md (3 paths total)" [expanded]:
+  - img
+  - text: ""
+  - img
+  - text: ""
\ No newline at end of file

e2e-tests/snapshots/local_agent_read_logs.spec.ts_local-agent---read-logs-with-filters-1.aria.yml

-- paragraph: /Generate an AI_RULES\.md file for this app\. Describe the tech stack in 5-\d+ bullet points and describe clear rules about what libraries to use for what\./
-- button "file1.txt file1.txt Edit":
-  - img
-  - text: ""
-  - button "Edit":
-    - img
-    - text: ""
-  - img
-- paragraph: More EOM
-- button "Copy":
-  - img
-- img
-- text: Approved
-- img
-- text: claude-opus-4-5
-- img
-- text: less than a minute ago
-- button "Copy Request ID":
-  - img
-  - text: ""
-- paragraph: tc=local-agent/read-logs
-- paragraph: Let me check the recent console logs to see what's happening in the application.
-- button /LOGS Reading \d+ logs/:
-  - img
-  - text: ""
-  - img
-- paragraph: Now let me filter for only error logs to identify any issues.
-- 'button "LOGS Reading 0 logs (level: error)"':
-  - img
-  - text: ""
-  - img
-- paragraph: Let me also check client-side logs specifically.
-- 'button "LOGS Reading 0 logs (type: client)"':
-  - img
-  - text: ""
-  - img
-- paragraph: I've reviewed the console logs. The application appears to be running normally with no critical errors detected.
-- button "Copy":
-  - img
-- img
-- text: claude-opus-4-5
-- img
-- text: less than a minute ago
-- button "Copy Request ID":
-  - img
-  - text: ""
-- button "Undo":
-  - img
-  - text: ""
-- button "Retry":
-  - img
-  - text: ""
\ No newline at end of file

src/components/chat/DyadListFiles.tsx

@@ -15,7 +15,7 @@ interface DyadListFilesProps {
     properties: {
       directory?: string;
       recursive?: string;
-      include_hidden?: string;
+      include_ignored?: string;
       state?: CustomTagState;
     };
   };
@@ -23,10 +23,10 @@ interface DyadListFilesProps {
 }
 
 export function DyadListFiles({ node, children }: DyadListFilesProps) {
-  const { directory, recursive, include_hidden, state } = node.properties;
+  const { directory, recursive, include_ignored, state } = node.properties;
   const isLoading = state === "pending";
   const isRecursive = recursive === "true";
-  const isIncludeHidden = include_hidden === "true";
+  const isIncludeIgnored = include_ignored === "true";
   const content = typeof children === "string" ? children : "";
   const [isExpanded, setIsExpanded] = useState(false);
 
@@ -45,7 +45,9 @@ export function DyadListFiles({ node, children }: DyadListFilesProps) {
           {title}
         </span>
         {isRecursive && <DyadBadge color="slate">recursive</DyadBadge>}
-        {isIncludeHidden && <DyadBadge color="slate">include hidden</DyadBadge>}
+        {isIncludeIgnored && (
+          <DyadBadge color="slate">include ignored</DyadBadge>
+        )}
         {isLoading && (
           <DyadStateIndicator state="pending" pendingLabel="Listing..." />
         )}

src/components/chat/DyadMarkdownParser.tsx

@@ -710,7 +710,8 @@ function renderCustomTag(
             properties: {
               directory: attributes.directory || "",
               recursive: attributes.recursive || "",
-              include_hidden: attributes.include_hidden || "",
+              include_ignored:
+                attributes.include_ignored || attributes.include_hidden || "",
               state: getState({ isStreaming, inProgress }),
             },
           }}

src/pro/main/ipc/handlers/local_agent/tools/grep.spec.ts

@@ -289,6 +289,63 @@ function deepHello() {
       expect(result).toContain("test1.ts");
       expect(result).not.toContain("node_modules");
     });
+
+    it("searches node_modules when include_ignored is true", async () => {
+      const nodeModulesDir = path.join(testDir, "node_modules", "some-pkg");
+      await fs.promises.mkdir(nodeModulesDir, { recursive: true });
+      await fs.promises.writeFile(
+        path.join(nodeModulesDir, "index.js"),
+        `function dependencyHello() { return "hello from node_modules"; }`,
+      );
+
+      const result = await grepTool.execute(
+        {
+          query: "dependencyHello",
+          include_ignored: true,
+          include_pattern: "node_modules/some-pkg/**",
+        },
+        mockContext,
+      );
+
+      expect(result).toContain("node_modules/some-pkg/index.js");
+      expect(result).toContain("dependencyHello");
+    });
+
+    it("searches hidden ignored files when include_ignored is true", async () => {
+      const dyadDir = path.join(testDir, ".dyad");
+      await fs.promises.mkdir(dyadDir, { recursive: true });
+      await fs.promises.writeFile(
+        path.join(dyadDir, "backup.txt"),
+        "hiddenIgnoredNeedle",
+      );
+
+      const result = await grepTool.execute(
+        {
+          query: "hiddenIgnoredNeedle",
+          include_ignored: true,
+          include_pattern: ".dyad/**",
+        },
+        mockContext,
+      );
+
+      expect(result).toContain(".dyad/backup.txt");
+    });
+
+    it("keeps .git excluded when include_ignored is true", async () => {
+      const gitDir = path.join(testDir, ".git");
+      await fs.promises.mkdir(gitDir, { recursive: true });
+      await fs.promises.writeFile(
+        path.join(gitDir, "config"),
+        "gitIgnoredNeedle",
+      );
+
+      const result = await grepTool.execute(
+        { query: "gitIgnoredNeedle", include_ignored: true },
+        mockContext,
+      );
+
+      expect(result).toBe("No matches found.");
+    });
   });
 
   describe("execute - regex patterns", () => {
@@ -357,6 +414,35 @@ function deepHello() {
         expect.stringContaining('total="'),
       );
     });
+
+    it("stops ignored searches after collecting enough matches", async () => {
+      const nodeModulesDir = path.join(testDir, "node_modules", "many-pkg");
+      await fs.promises.mkdir(nodeModulesDir, { recursive: true });
+      await Promise.all(
+        Array.from({ length: 20 }, (_, index) =>
+          fs.promises.writeFile(
+            path.join(nodeModulesDir, `file-${index}.js`),
+            "ignoredSearchNeedle\n",
+          ),
+        ),
+      );
+
+      const result = await grepTool.execute(
+        {
+          query: "ignoredSearchNeedle",
+          include_ignored: true,
+          include_pattern: "node_modules/many-pkg/**",
+          limit: 3,
+        },
+        mockContext,
+      );
+
+      const matchLines = result
+        .split("\n")
+        .filter((line) => line.match(/:\d+:/));
+      expect(matchLines).toHaveLength(3);
+      expect(result).toContain("[TRUNCATED: Showing 3 of at least 4 matches.");
+    });
   });
 
   describe("execute - result sorting", () => {
@@ -460,6 +546,14 @@ function deepHello() {
       expect(result).toContain('exclude="*.md"');
     });
 
+    it("includes include_ignored in attributes", () => {
+      const result = grepTool.buildXml?.(
+        { query: "test", include_ignored: true },
+        false,
+      );
+      expect(result).toContain('include_ignored="true"');
+    });
+
     it("includes case-sensitive in attributes when true", () => {
       const result = grepTool.buildXml?.(
         { query: "test", case_sensitive: true },
@@ -482,5 +576,13 @@ function deepHello() {
       });
       expect(preview).toBe('Search for "hello" in *.ts');
     });
+
+    it("includes include_ignored in preview", () => {
+      const preview = grepTool.getConsentPreview?.({
+        query: "hello",
+        include_ignored: true,
+      });
+      expect(preview).toBe('Search for "hello" including ignored files');
+    });
   });
 });

src/pro/main/ipc/handlers/local_agent/tools/grep.ts

@@ -31,6 +31,12 @@ const grepSchema = z.object({
     .string()
     .optional()
     .describe("Glob pattern for files to exclude"),
+  include_ignored: z
+    .boolean()
+    .optional()
+    .describe(
+      "Whether to include git-ignored and hidden files/directories such as node_modules (default: false). Use include_pattern to keep this scoped.",
+    ),
   case_sensitive: z
     .boolean()
     .optional()
@@ -66,6 +72,9 @@ function buildGrepAttributes(
   if (args.exclude_pattern) {
     attrs.push(`exclude="${escapeXmlAttr(args.exclude_pattern)}"`);
   }
+  if (args.include_ignored) {
+    attrs.push(`include_ignored="true"`);
+  }
   if (args.case_sensitive) {
     attrs.push(`case-sensitive="true"`);
   }
@@ -91,16 +100,21 @@ async function runRipgrep({
   query,
   includePat,
   excludePat,
+  includeIgnored,
   caseSensitive,
+  maxMatches,
 }: {
   appPath: string;
   query: string;
   includePat?: string;
   excludePat?: string;
+  includeIgnored?: boolean;
   caseSensitive?: boolean;
-}): Promise<RipgrepMatch[]> {
+  maxMatches?: number;
+}): Promise<{ matches: RipgrepMatch[]; stoppedEarly: boolean }> {
   return new Promise((resolve, reject) => {
     const results: RipgrepMatch[] = [];
+    let stoppedEarly = false;
     const args: string[] = [
       "--json",
       "--no-config",
@@ -108,6 +122,10 @@ async function runRipgrep({
       `${MAX_FILE_SEARCH_SIZE}`,
     ];
 
+    if (includeIgnored) {
+      args.push("--no-ignore", "--hidden");
+    }
+
     // Case sensitivity: default is case-insensitive
     if (!caseSensitive) {
       args.push("--ignore-case");
@@ -126,7 +144,10 @@ async function runRipgrep({
 
     // Exclusion globs come LAST so they always take precedence over any
     // include pattern (later --glob flags override earlier ones in ripgrep)
-    args.push(...RIPGREP_EXCLUDED_GLOBS.flatMap((glob) => ["--glob", glob]));
+    const exclusionGlobs = includeIgnored
+      ? RIPGREP_EXCLUDED_GLOBS.filter((glob) => glob === "!.git/**")
+      : RIPGREP_EXCLUDED_GLOBS;
+    args.push(...exclusionGlobs.flatMap((glob) => ["--glob", glob]));
 
     args.push("--", query, ".");
 
@@ -134,6 +155,10 @@ async function runRipgrep({
     let buffer = "";
 
     rg.stdout.on("data", (data) => {
+      if (stoppedEarly) {
+        return;
+      }
+
       buffer += data.toString();
       const lines = buffer.split("\n");
       buffer = lines.pop() ?? "";
@@ -159,11 +184,23 @@ async function runRipgrep({
           // Normalize path (remove leading ./)
           const normalizedPath = matchPath.replace(/^\.\//, "");
 
+          if (maxMatches !== undefined && results.length >= maxMatches) {
+            stoppedEarly = true;
+            rg.kill();
+            break;
+          }
+
           results.push({
             path: normalizedPath,
             lineNumber,
             lineText: lineText.replace(/\r?\n$/, ""),
           });
+
+          if (maxMatches !== undefined && results.length >= maxMatches) {
+            stoppedEarly = true;
+            rg.kill();
+            break;
+          }
         } catch {
           // Skip malformed JSON lines
         }
@@ -175,12 +212,17 @@ async function runRipgrep({
     });
 
     rg.on("close", (code) => {
+      if (stoppedEarly) {
+        resolve({ matches: results, stoppedEarly });
+        return;
+      }
+
       // rg exits with code 1 when no matches are found; treat as success
       if (code !== 0 && code !== 1) {
         reject(new Error(`ripgrep exited with code ${code}`));
         return;
       }
-      resolve(results);
+      resolve({ matches: results, stoppedEarly });
     });
 
     rg.on("error", (error) => {
@@ -197,6 +239,7 @@ export const grepTool: ToolDefinition<z.infer<typeof grepSchema>> = {
 - By default, the search is case-insensitive
 - Use include_pattern to filter by file type (e.g. '*.tsx')
 - Use exclude_pattern to skip certain files (e.g. '*.test.ts')
+- Use include_ignored=true to search git-ignored and hidden files/directories such as node_modules. Pair it with include_pattern to keep searches scoped.
 - Results are limited to ${DEFAULT_LIMIT} matches by default (max ${MAX_LIMIT}). If results are truncated, narrow your search with include_pattern or a more specific query.`,
   inputSchema: grepSchema,
   defaultConsent: "always",
@@ -206,6 +249,9 @@ export const grepTool: ToolDefinition<z.infer<typeof grepSchema>> = {
     if (args.include_pattern) {
       preview += ` in ${args.include_pattern}`;
     }
+    if (args.include_ignored) {
+      preview += " including ignored files";
+    }
     return preview;
   },
 
@@ -222,23 +268,25 @@ export const grepTool: ToolDefinition<z.infer<typeof grepSchema>> = {
 
   execute: async (args, ctx: AgentContext) => {
     const includePatWasWildcard = args.include_pattern === "*";
+    const limit = Math.min(args.limit ?? DEFAULT_LIMIT, MAX_LIMIT);
 
-    const allMatches = await runRipgrep({
+    const { matches: allMatches, stoppedEarly } = await runRipgrep({
       appPath: ctx.appPath,
       query: args.query,
       includePat: args.include_pattern,
       excludePat: args.exclude_pattern,
+      includeIgnored: args.include_ignored,
       caseSensitive: args.case_sensitive,
+      maxMatches: args.include_ignored ? limit + 1 : undefined,
     });
 
     const totalCount = allMatches.length;
-    const limit = Math.min(args.limit ?? DEFAULT_LIMIT, MAX_LIMIT);
     // Sort for deterministic output (ripgrep's parallel execution can produce varying order)
     const sortedMatches = [...allMatches].sort(
       (a, b) => a.path.localeCompare(b.path) || a.lineNumber - b.lineNumber,
     );
     const matches = sortedMatches.slice(0, limit);
-    const wasTruncated = totalCount > limit;
+    const wasTruncated = stoppedEarly || totalCount > limit;
 
     const attrs = buildGrepAttributes(args, matches.length, totalCount);
 
@@ -255,7 +303,8 @@ export const grepTool: ToolDefinition<z.infer<typeof grepSchema>> = {
 
     // Add truncation notice for the AI
     if (wasTruncated) {
-      resultText += `\n\n[TRUNCATED: Showing ${matches.length} of ${totalCount} matches. Use include_pattern to narrow your search (e.g., include_pattern="*.tsx") or use a more specific query.]`;
+      const totalText = stoppedEarly ? `at least ${totalCount}` : totalCount;
+      resultText += `\n\n[TRUNCATED: Showing ${matches.length} of ${totalText} matches. Use include_pattern to narrow your search (e.g., include_pattern="*.tsx") or use a more specific query.]`;
     }
 
     // Warn the LLM that "*" was ignored so it doesn't retry with the same pattern

src/pro/main/ipc/handlers/local_agent/tools/list_files.spec.ts

+import { describe, it, expect, vi, beforeEach, afterEach } from "vitest";
+import fs from "node:fs";
+import path from "node:path";
+import os from "node:os";
+import { listFilesTool } from "./list_files";
+import type { AgentContext } from "./types";
+import { DyadErrorKind } from "@/errors/dyad_error";
+
+vi.mock("electron-log", () => ({
+  default: {
+    scope: () => ({
+      log: vi.fn(),
+      warn: vi.fn(),
+      error: vi.fn(),
+      debug: vi.fn(),
+    }),
+  },
+}));
+
+describe("listFilesTool", () => {
+  let testDir: string;
+  let mockContext: AgentContext;
+
+  beforeEach(async () => {
+    testDir = await fs.promises.mkdtemp(
+      path.join(os.tmpdir(), "list-files-test-"),
+    );
+
+    await fs.promises.writeFile(path.join(testDir, "src.ts"), "source");
+    await fs.promises.mkdir(path.join(testDir, "node_modules", "pkg"), {
+      recursive: true,
+    });
+    await fs.promises.writeFile(
+      path.join(testDir, "node_modules", "pkg", "index.js"),
+      "dependency",
+    );
+    await fs.promises.mkdir(path.join(testDir, ".dyad"), { recursive: true });
+    await fs.promises.writeFile(
+      path.join(testDir, ".dyad", "snapshot.json"),
+      "{}",
+    );
+    await fs.promises.mkdir(path.join(testDir, ".git"), { recursive: true });
+    await fs.promises.writeFile(
+      path.join(testDir, ".git", "config"),
+      "should stay hidden",
+    );
+
+    mockContext = {
+      event: {} as any,
+      appId: 1,
+      appPath: testDir,
+      chatId: 1,
+      supabaseProjectId: null,
+      supabaseOrganizationSlug: null,
+      neonProjectId: null,
+      neonActiveBranchId: null,
+      frameworkType: null,
+      messageId: 1,
+      isSharedModulesChanged: false,
+      isDyadPro: false,
+      todos: [],
+      dyadRequestId: "test-request",
+      fileEditTracker: {},
+      onXmlStream: vi.fn(),
+      onXmlComplete: vi.fn(),
+      requireConsent: vi.fn().mockResolvedValue(true),
+      appendUserMessage: vi.fn(),
+      onUpdateTodos: vi.fn(),
+    };
+  });
+
+  afterEach(async () => {
+    await fs.promises.rm(testDir, { recursive: true, force: true });
+    vi.clearAllMocks();
+  });
+
+  it("accepts include_ignored in the schema", () => {
+    expect(() =>
+      listFilesTool.inputSchema.parse({ include_ignored: true }),
+    ).not.toThrow();
+  });
+
+  it("includes ignored files when include_ignored is true", async () => {
+    const result = await listFilesTool.execute(
+      { directory: "node_modules", recursive: true, include_ignored: true },
+      mockContext,
+    );
+
+    expect(result).toContain(" - node_modules/pkg/");
+    expect(result).toContain(" - node_modules/pkg/index.js");
+    expect(result).not.toContain(".git/config");
+  });
+
+  it("lists directories before files", async () => {
+    const result = await listFilesTool.execute(
+      { directory: "node_modules", recursive: true, include_ignored: true },
+      mockContext,
+    );
+
+    const directoryIndex = result.indexOf(" - node_modules/pkg/");
+    const fileIndex = result.indexOf(" - node_modules/pkg/index.js");
+
+    expect(directoryIndex).toBeGreaterThanOrEqual(0);
+    expect(fileIndex).toBeGreaterThanOrEqual(0);
+    expect(directoryIndex).toBeLessThan(fileIndex);
+  });
+
+  it("includes include_ignored in XML", async () => {
+    await listFilesTool.execute(
+      { directory: "node_modules", recursive: true, include_ignored: true },
+      mockContext,
+    );
+
+    expect(mockContext.onXmlComplete).toHaveBeenCalledWith(
+      expect.stringContaining('include_ignored="true"'),
+    );
+  });
+
+  it("rejects recursive ignored listings without a directory", async () => {
+    await expect(
+      listFilesTool.execute(
+        { recursive: true, include_ignored: true },
+        mockContext,
+      ),
+    ).rejects.toMatchObject({
+      kind: DyadErrorKind.Validation,
+      message:
+        "include_ignored=true with recursive=true requires a non-root directory to avoid listing too many files.",
+    });
+  });
+
+  it("rejects recursive ignored listings for the app root", async () => {
+    await expect(
+      listFilesTool.execute(
+        { directory: ".", recursive: true, include_ignored: true },
+        mockContext,
+      ),
+    ).rejects.toMatchObject({
+      kind: DyadErrorKind.Validation,
+      message:
+        "include_ignored=true with recursive=true requires a non-root directory to avoid listing too many files.",
+    });
+  });
+
+  it("caps returned paths at 1000", async () => {
+    const generatedDir = path.join(testDir, "generated");
+    await fs.promises.mkdir(generatedDir);
+    await Promise.all(
+      Array.from({ length: 1005 }, (_, index) =>
+        fs.promises.writeFile(
+          path.join(generatedDir, `file-${String(index).padStart(4, "0")}.txt`),
+          "generated",
+        ),
+      ),
+    );
+
+    const result = await listFilesTool.execute(
+      { directory: "generated", recursive: true, include_ignored: true },
+      mockContext,
+    );
+
+    const listedPathCount = result
+      .split("\n")
+      .filter((line) => line.startsWith(" - ")).length;
+
+    expect(listedPathCount).toBe(1000);
+    expect(result).toContain("[TRUNCATED: Showing 1000 of ");
+    expect(mockContext.onXmlComplete).toHaveBeenCalledWith(
+      expect.stringContaining('truncated="true"'),
+    );
+  });
+});

src/pro/main/ipc/handlers/local_agent/tools/list_files.ts

@@ -9,6 +9,9 @@ import {
 } from "./types";
 import { extractCodebase } from "../../../../../../utils/codebase";
 import { resolveDirectoryWithinAppPath } from "./path_safety";
+import { DyadError, DyadErrorKind } from "@/errors/dyad_error";
+
+const MAX_PATHS_TO_RETURN = 1_000;
 
 const listFilesSchema = z.object({
   directory: z.string().optional().describe("Optional subdirectory to list"),
@@ -16,42 +19,64 @@ const listFilesSchema = z.object({
     .boolean()
     .optional()
     .describe("Whether to list files recursively (default: false)"),
-  include_hidden: z
+  include_ignored: z
     .boolean()
     .optional()
     .describe(
-      "Whether to include .dyad files which are git-ignored (default: false)",
+      "Whether to include git-ignored and hidden files/directories such as node_modules (default: false).",
     ),
 });
 
 type ListFilesArgs = z.infer<typeof listFilesSchema>;
 
-function getXmlAttributes(args: ListFilesArgs) {
+interface ListedPath {
+  path: string;
+  isDirectory: boolean;
+}
+
+function getDisplayPath(entry: ListedPath): string {
+  return entry.isDirectory ? `${entry.path}/` : entry.path;
+}
+
+function sortListedPaths(entries: ListedPath[]): ListedPath[] {
+  return [...entries].sort((a, b) => {
+    if (a.isDirectory !== b.isDirectory) {
+      return a.isDirectory ? -1 : 1;
+    }
+    return a.path.localeCompare(b.path);
+  });
+}
+
+function getXmlAttributes(args: ListFilesArgs, count?: number, total?: number) {
   const dirAttr = args.directory
     ? ` directory="${escapeXmlAttr(args.directory)}"`
     : "";
   const recursiveAttr =
     args.recursive !== undefined ? ` recursive="${args.recursive}"` : "";
-  const includeHiddenAttr =
-    args.include_hidden !== undefined
-      ? ` include_hidden="${args.include_hidden}"`
+  const includeIgnoredAttr =
+    args.include_ignored !== undefined
+      ? ` include_ignored="${args.include_ignored}"`
       : "";
-  return `${dirAttr}${recursiveAttr}${includeHiddenAttr}`;
+  const countAttr = count !== undefined ? ` count="${count}"` : "";
+  const totalAttr =
+    total !== undefined && total > (count ?? 0) ? ` total="${total}"` : "";
+  const truncatedAttr = totalAttr ? ` truncated="true"` : "";
+  return `${dirAttr}${recursiveAttr}${includeIgnoredAttr}${countAttr}${totalAttr}${truncatedAttr}`;
 }
 
 export const listFilesTool: ToolDefinition<ListFilesArgs> = {
   name: "list_files",
   description:
-    "List files in the application directory. By default, lists only the immediate directory contents. Use recursive=true to list all files recursively. If you are not sure, list all files by omitting the directory parameter.",
+    "List files in the application directory. By default, lists only the immediate directory contents. Use recursive=true to list all files recursively. Use include_ignored=true to include git-ignored and hidden paths; recursive ignored listings require directory to be set. Results are capped at 1000 paths.",
   inputSchema: listFilesSchema,
   defaultConsent: "always",
 
   getConsentPreview: (args) => {
     const recursiveText = args.recursive ? " (recursive)" : "";
-    const hiddenText = args.include_hidden ? " (include hidden)" : "";
+    const ignoredText = args.include_ignored ? " (include ignored)" : "";
     return args.directory
-      ? `List ${args.directory}${recursiveText}${hiddenText}`
-      : `List all files${recursiveText}${hiddenText}`;
+      ? `List ${args.directory}${recursiveText}${ignoredText}`
+      : `List all files${recursiveText}${ignoredText}`;
   },
 
   buildXml: (args, isComplete) => {
@@ -80,12 +105,40 @@ export const listFilesTool: ToolDefinition<ListFilesArgs> = {
       sanitizedDirectory = normalizedRelativePath || undefined;
     }
 
+    if (args.include_ignored && args.recursive && !sanitizedDirectory) {
+      throw new DyadError(
+        "include_ignored=true with recursive=true requires a non-root directory to avoid listing too many files.",
+        DyadErrorKind.Validation,
+      );
+    }
+
     // Use "**" for recursive, "*" for non-recursive (immediate children only)
     const globSuffix = args.recursive ? "/**" : "/*";
     const globPath = sanitizedDirectory
       ? sanitizedDirectory + globSuffix
       : globSuffix.slice(1); // Remove leading "/" for root directory
 
+    let allPaths: ListedPath[];
+
+    if (args.include_ignored) {
+      const normalizedAppPath = ctx.appPath.replace(/\\/g, "/");
+      const globPattern = `${normalizedAppPath}/${globPath}`;
+      const ignoredPaths = await glob(globPattern, {
+        withFileTypes: true,
+        dot: true,
+        ignore: ["**/.git", "**/.git/**"],
+      });
+
+      allPaths = sortListedPaths(
+        ignoredPaths.map((entry) => ({
+          path: path
+            .relative(ctx.appPath, entry.fullpath())
+            .split(path.sep)
+            .join("/"),
+          isDirectory: entry.isDirectory(),
+        })),
+      );
+    } else {
       const { files } = await extractCodebase({
         appPath: ctx.appPath,
         chatContext: {
@@ -96,60 +149,43 @@ export const listFilesTool: ToolDefinition<ListFilesArgs> = {
       });
 
       // Build the list of file paths
-    let allFilePaths = files.map((file) => file.path);
-
-    // If include_hidden is true, also include .dyad files
-    if (args.include_hidden) {
-      const normalizedAppPath = ctx.appPath.replace(/\\/g, "/");
-      // Always search .dyad at the app root, regardless of directory filter
-      const dyadGlobPattern = `${normalizedAppPath}/.dyad${globSuffix}`;
-
-      const dyadFiles = await glob(dyadGlobPattern, {
-        nodir: true,
-        absolute: true,
-        ignore: [
-          "**/node_modules/**",
-          "**/.git/**",
-          "**/dist/**",
-          "**/build/**",
-          "**/.next/**",
-          "**/.venv/**",
-          "**/venv/**",
-        ],
-      });
-
-      // Convert to relative paths and add to the list
-      const dyadRelativePaths = dyadFiles.map((file) =>
-        path.relative(ctx.appPath, file).split(path.sep).join("/"),
+      allPaths = sortListedPaths(
+        files.map((file) => ({
+          path: file.path,
+          isDirectory: false,
+        })),
       );
-
-      // Deduplicate and sort
-      allFilePaths = [
-        ...new Set([...allFilePaths, ...dyadRelativePaths]),
-      ].sort();
     }
 
+    const totalCount = allPaths.length;
+    const cappedPaths = allPaths.slice(0, MAX_PATHS_TO_RETURN);
+    const wasTruncated = totalCount > cappedPaths.length;
+
     // Build full file list for LLM
     const allFilesList =
-      allFilePaths.map((filePath) => " - " + filePath).join("\n") || "";
+      cappedPaths.map((entry) => " - " + getDisplayPath(entry)).join("\n") ||
+      "";
+    const resultText = wasTruncated
+      ? `${allFilesList}\n\n[TRUNCATED: Showing ${cappedPaths.length} of ${totalCount} paths. Use directory to narrow the listing.]`
+      : allFilesList;
 
     // Build abbreviated list for UI display
     const MAX_FILES_TO_SHOW = 20;
-    const totalCount = allFilePaths.length;
-    const displayedFiles = allFilePaths.slice(0, MAX_FILES_TO_SHOW);
+    const displayedFiles = cappedPaths.slice(0, MAX_FILES_TO_SHOW);
     const abbreviatedList =
-      displayedFiles.map((filePath) => " - " + filePath).join("\n") || "";
+      displayedFiles.map((entry) => " - " + getDisplayPath(entry)).join("\n") ||
+      "";
     const countInfo =
       totalCount > MAX_FILES_TO_SHOW
-        ? `\n... and ${totalCount - MAX_FILES_TO_SHOW} more files (${totalCount} total)`
-        : `\n(${totalCount} files total)`;
+        ? `\n... and ${totalCount - MAX_FILES_TO_SHOW} more paths (${totalCount} total)`
+        : `\n(${totalCount} paths total)`;
 
     // Write abbreviated list to UI
     ctx.onXmlComplete(
-      `<dyad-list-files${getXmlAttributes(args)}>${escapeXmlContent(abbreviatedList + countInfo)}</dyad-list-files>`,
+      `<dyad-list-files${getXmlAttributes(args, cappedPaths.length, totalCount)}>${escapeXmlContent(abbreviatedList + countInfo)}</dyad-list-files>`,
     );
 
     // Return full file list for LLM
-    return allFilesList;
+    return resultText;
   },
 };