diff --git a/crates/tabby-common/src/api/code.rs b/crates/tabby-common/src/api/code.rs
index 4566c09ec82..7e9587e1847 100644
--- a/crates/tabby-common/src/api/code.rs
+++ b/crates/tabby-common/src/api/code.rs
@@ -22,6 +22,7 @@ pub struct HitDocument {
     pub filepath: String,
     pub git_url: String,
     pub language: String,
+    pub start_line: i64,
 }
 
 #[derive(Error, Debug)]
diff --git a/crates/tabby-common/src/index.rs b/crates/tabby-common/src/index.rs
index a8298436629..4225971d6ca 100644
--- a/crates/tabby-common/src/index.rs
+++ b/crates/tabby-common/src/index.rs
@@ -21,6 +21,7 @@ pub struct CodeSearchSchema {
     pub field_filepath: Field,
     pub field_language: Field,
     pub field_body: Field,
+    pub field_start_line: Field,
 }
 
 impl CodeSearchSchema {
@@ -38,6 +39,7 @@ impl CodeSearchSchema {
         let field_filepath = builder.add_text_field("filepath", STRING | STORED);
         let field_language = builder.add_text_field("language", STRING | STORED);
         let field_body = builder.add_text_field("body", code_options);
+        let field_start_line = builder.add_i64_field("start_line", STORED);
         let schema = builder.build();
 
         Self {
@@ -46,6 +48,7 @@ impl CodeSearchSchema {
             field_filepath,
             field_language,
             field_body,
+            field_start_line,
         }
     }
 }
diff --git a/crates/tabby-scheduler/src/code/mod.rs b/crates/tabby-scheduler/src/code/mod.rs
index 912df9f9d7c..74a06a5e0dc 100644
--- a/crates/tabby-scheduler/src/code/mod.rs
+++ b/crates/tabby-scheduler/src/code/mod.rs
@@ -57,7 +57,26 @@ impl CodeIntelligence {
     pub fn chunks<'splitter, 'text: 'splitter>(
         &'splitter self,
         text: &'text str,
-    ) -> impl Iterator<Item = &'text str> + 'splitter {
-        self.splitter.chunks(text, 192)
+    ) -> impl Iterator<Item = (i64, &'text str)> + 'splitter {
+        self.splitter
+            .chunk_indices(text, 256)
+            .map(|(offset, chunk)| (line_number_from_byte_offset(text, offset), chunk))
     }
 }
+
+fn line_number_from_byte_offset(s: &str, byte_offset: usize) -> i64 {
+    let mut line_number = 1; // Start counting from line 1
+    let mut current_offset = 0;
+
+    for c in s.chars() {
+        if c == '\n' {
+            line_number += 1;
+        }
+        current_offset += c.len_utf8();
+        if current_offset >= byte_offset {
+            break;
+        }
+    }
+
+    line_number
+}
diff --git a/crates/tabby-scheduler/src/index.rs b/crates/tabby-scheduler/src/index.rs
index c03ee7273c7..9b6a0f8a554 100644
--- a/crates/tabby-scheduler/src/index.rs
+++ b/crates/tabby-scheduler/src/index.rs
@@ -48,7 +48,7 @@ pub fn index_repositories(_config: &[RepositoryConfig]) -> Result<()> {
             }
         };
 
-        for body in intelligence.chunks(&text) {
+        for (start_line, body) in intelligence.chunks(&text) {
             pb.as_mut().map(|b| b.update(body.len())).transpose()?;
 
             writer.add_document(doc!(
@@ -56,6 +56,7 @@ pub fn index_repositories(_config: &[RepositoryConfig]) -> Result<()> {
                     code.field_filepath => file.filepath.clone(),
                     code.field_language => file.language.clone(),
                     code.field_body => body,
+                    code.field_start_line => start_line,
             ))?;
         }
     }
diff --git a/crates/tabby/src/services/code.rs b/crates/tabby/src/services/code.rs
index 66744eac62e..bf4fa71a523 100644
--- a/crates/tabby/src/services/code.rs
+++ b/crates/tabby/src/services/code.rs
@@ -77,6 +77,7 @@ impl CodeSearchImpl {
                 filepath: get_field(&doc, self.schema.field_filepath),
                 git_url: get_field(&doc, self.schema.field_git_url),
                 language: get_field(&doc, self.schema.field_language),
+                start_line: get_i64_field(&doc, self.schema.field_start_line),
             },
             id: doc_address.doc_id,
         }
@@ -172,6 +173,13 @@ fn get_field(doc: &Document, field: Field) -> String {
         .to_owned()
 }
 
+fn get_i64_field(doc: &Document, field: Field) -> i64 {
+    doc.get_first(field)
+        .and_then(|x| x.as_i64())
+        .expect("Missing field")
+        .to_owned()
+}
+
 struct CodeSearchService {
     search: Arc<Mutex<Option<CodeSearchImpl>>>,
 }
diff --git a/crates/tabby/src/services/completion/completion_prompt.rs b/crates/tabby/src/services/completion/completion_prompt.rs
index c0ed4d1c676..40a4bb0a820 100644
--- a/crates/tabby/src/services/completion/completion_prompt.rs
+++ b/crates/tabby/src/services/completion/completion_prompt.rs
@@ -38,7 +38,7 @@ impl PromptBuilder {
 
     pub async fn collect(&self, language: &str, segments: &Segments) -> Vec<Snippet> {
         let quota_threshold_for_snippets_from_code_search = 256;
-        let mut max_snippets_chars_in_prompt = 768;
+        let mut max_snippets_chars_in_prompt = 1024;
         let mut snippets: Vec<Snippet> = vec![];
 
         if let Some((count_characters, snippets_from_segments)) =
diff --git a/ee/tabby-ui/app/files/components/chat-side-bar.tsx b/ee/tabby-ui/app/files/components/chat-side-bar.tsx
index f4afee67c5a..77c1f945195 100644
--- a/ee/tabby-ui/app/files/components/chat-side-bar.tsx
+++ b/ee/tabby-ui/app/files/components/chat-side-bar.tsx
@@ -2,6 +2,8 @@ import React from 'react'
 
 import { useStore } from '@/lib/hooks/use-store'
 import { useChatStore } from '@/lib/stores/chat-store'
+import fetcher from '@/lib/tabby/fetcher'
+import { ISearchHit, SearchReponse } from '@/lib/types'
 import { cn } from '@/lib/utils'
 import { Button } from '@/components/ui/button'
 import { IconClose } from '@/components/ui/icons'
@@ -22,7 +24,7 @@ export const ChatSideBar: React.FC<ChatSideBarProps> = ({
   const activeChatId = useStore(useChatStore, state => state.activeChatId)
   const iframeRef = React.useRef<HTMLIFrameElement>(null)
 
-  const getPrompt = ({
+  const getPrompt = async ({
     action,
     code,
     language,
@@ -30,6 +32,7 @@ export const ChatSideBar: React.FC<ChatSideBarProps> = ({
     lineFrom,
     lineTo
   }: QuickActionEventPayload) => {
+    const contextPrompt = await buildContextPrompt(language, code, path)
     let builtInPrompt = ''
     switch (action) {
       case 'explain':
@@ -47,18 +50,22 @@ export const ChatSideBar: React.FC<ChatSideBarProps> = ({
     const codeBlockMeta = `${
       language ?? ''
     } is_reference=1 path=${path} line_from=${lineFrom} line_to=${lineTo}`
-    return `${builtInPrompt}\n${'```'}${codeBlockMeta}\n${code}\n${'```'}\n`
+    return `${contextPrompt}${builtInPrompt}\n${'```'}${codeBlockMeta}\n${code}\n${'```'}\n`
   }
 
-  React.useEffect(() => {
+  async function postPrompt(e: QuickActionEventPayload) {
     const contentWindow = iframeRef.current?.contentWindow
+    contentWindow?.postMessage({
+      action: 'append',
+      payload: await getPrompt(e)
+    })
+  }
 
+  React.useEffect(() => {
     if (pendingEvent) {
-      contentWindow?.postMessage({
-        action: 'append',
-        payload: getPrompt(pendingEvent)
+      postPrompt(pendingEvent).then(() => {
+        setPendingEvent(undefined)
       })
-      setPendingEvent(undefined)
     }
   }, [pendingEvent, iframeRef.current?.contentWindow])
 
@@ -90,3 +97,74 @@ function Header() {
     </div>
   )
 }
+
+async function buildContextPrompt(
+  language: string | undefined,
+  code: string,
+  path: string | undefined
+) {
+  if (!language || !path) {
+    return []
+  }
+
+  if (code.length < 128) {
+    return []
+  }
+
+  const segments = path.split('/');
+  const repo = segments[0];
+  path = segments.slice(1).join('/');
+
+  const tokens = code.split(/[^\w]/).filter(x => x)
+
+  // FIXME(jueliang): restrict query with `git_url` of `repo`.
+  const languageQuery = buildLanguageQuery(language)
+  const bodyQuery = tokens.map(x => `body:${x}`).join(' OR ')
+  const query = `${languageQuery} AND (${bodyQuery})`
+
+  const queryParam = `q=${encodeURIComponent(query)}&limit=20`
+
+  const data: SearchReponse = await fetcher(`/v1beta/search?${queryParam}`, {
+    responseFormat: 'json'
+  })
+  const snippets =
+    data.hits.filter(x => x.score > 30 && path !== x.doc.filepath) || []
+  return formatContextPrompt(repo, language, snippets.slice(0, 3))
+}
+
+function formatContextPrompt(
+  repo: string,
+  language: string,
+  snippets: ISearchHit[]
+) {
+  let prompt = 'Given following relevant code snippets:\n\n'
+  for (const { doc } of snippets) {
+    const numLines = doc.body.split(/\r\n|\r|\n/).length
+    const fromLine = doc.start_line
+    const toLine = doc.start_line + numLines - 1
+    const reference = `\`\`\`${language} is_reference=1 path=${repo}/${doc.filepath} line_from=${fromLine} line_to=${toLine}
+${doc.body}
+\`\`\`
+`
+    prompt += reference
+  }
+
+  if (snippets.length) {
+    return prompt
+  } else {
+    return ''
+  }
+}
+
+function buildLanguageQuery(language: string) {
+  if (
+    language == 'javascript' ||
+    language == 'jsx' ||
+    language == 'typescript' ||
+    language == 'tsx'
+  ) {
+    language = 'javascript-typescript'
+  }
+
+  return `language:${language}`
+}
diff --git a/ee/tabby-ui/components/prompt-form.tsx b/ee/tabby-ui/components/prompt-form.tsx
index 20bd822b006..1782eee875e 100644
--- a/ee/tabby-ui/components/prompt-form.tsx
+++ b/ee/tabby-ui/components/prompt-form.tsx
@@ -5,7 +5,6 @@ import useSWR from 'swr'
 
 import { useEnterSubmit } from '@/lib/hooks/use-enter-submit'
 import fetcher from '@/lib/tabby/fetcher'
-import type { ISearchHit, SearchReponse } from '@/lib/types'
 import { cn } from '@/lib/utils'
 import { Button, buttonVariants } from '@/components/ui/button'
 import {
@@ -349,3 +348,21 @@ function IconForCompletionKind({
       return <IconSymbolFunction {...rest} />
   }
 }
+
+type ISearchHit = {
+  id: number
+  score: number
+  doc: {
+    body: string
+    filepath: string
+    git_url: string
+    language: string
+    name: string
+    kind: string
+  }
+}
+
+type SearchReponse = {
+  hits: Array<ISearchHit>
+  num_hits: number
+}
\ No newline at end of file
diff --git a/ee/tabby-ui/lib/types/chat.ts b/ee/tabby-ui/lib/types/chat.ts
index acb097210e4..c9ce8b7ce3b 100644
--- a/ee/tabby-ui/lib/types/chat.ts
+++ b/ee/tabby-ui/lib/types/chat.ts
@@ -12,18 +12,19 @@ export interface Chat extends Record<string, any> {
 
 export type ISearchHit = {
   id: number
-  doc?: {
-    body?: string
-    name?: string
-    filepath?: string
-    git_url?: string
-    kind?: string
-    language?: string
+  score: number
+  doc: {
+    body: string
+    filepath: string
+    git_url: string
+    language: string
+    start_line: number
   }
 }
+
 export type SearchReponse = {
-  hits?: Array<ISearchHit>
-  num_hits?: number
+  hits: Array<ISearchHit>
+  num_hits: number
 }
 
 export type MessageActionType = 'edit' | 'delete' | 'regenerate'