diff --git a/src-node/claude-code-agent.js b/src-node/claude-code-agent.js
index c76f7ece71..b281878b3f 100644
--- a/src-node/claude-code-agent.js
+++ b/src-node/claude-code-agent.js
@@ -269,21 +269,33 @@ async function _runQuery(requestId, prompt, projectPath, model, signal, locale)
                                 newText: input.tool_input.new_string
                             };
                             editCount++;
+                            let editResult;
                             try {
-                                await nodeConnector.execPeer("applyEditToBuffer", edit);
+                                editResult = await nodeConnector.execPeer("applyEditToBuffer", edit);
                             } catch (err) {
                                 console.warn("[Phoenix AI] Failed to apply edit to buffer:", err.message);
+                                editResult = { applied: false, error: err.message };
                             }
                             nodeConnector.triggerPeer("aiToolEdit", {
                                 requestId: requestId,
                                 toolId: myToolId,
                                 edit: edit
                             });
+                            let reason;
+                            if (editResult && editResult.applied === false) {
+                                reason = "Edit FAILED: " + (editResult.error || "unknown error");
+                            } else {
+                                reason = "Edit applied successfully via Phoenix editor.";
+                                if (editResult && editResult.isLivePreviewRelated) {
+                                    reason += " The edited file is part of the active live preview." +
+                                        " Reload when ready with execJsInLivePreview: `location.reload()`";
+                                }
+                            }
                             return {
                                 hookSpecificOutput: {
                                     hookEventName: "PreToolUse",
                                     permissionDecision: "deny",
-                                    permissionDecisionReason: "Edit applied successfully via Phoenix editor."
+                                    permissionDecisionReason: reason
                                 }
                             };
                         }
@@ -342,21 +354,33 @@ async function _runQuery(requestId, prompt, projectPath, model, signal, locale)
                                 newText: input.tool_input.content
                             };
                             editCount++;
+                            let writeResult;
                             try {
-                                await nodeConnector.execPeer("applyEditToBuffer", edit);
+                                writeResult = await nodeConnector.execPeer("applyEditToBuffer", edit);
                             } catch (err) {
                                 console.warn("[Phoenix AI] Failed to apply write to buffer:", err.message);
+                                writeResult = { applied: false, error: err.message };
                             }
                             nodeConnector.triggerPeer("aiToolEdit", {
                                 requestId: requestId,
                                 toolId: myToolId,
                                 edit: edit
                             });
+                            let reason;
+                            if (writeResult && writeResult.applied === false) {
+                                reason = "Write FAILED: " + (writeResult.error || "unknown error");
+                            } else {
+                                reason = "Write applied successfully via Phoenix editor.";
+                                if (writeResult && writeResult.isLivePreviewRelated) {
+                                    reason += " The written file is part of the active live preview." +
+                                        " Reload when ready with execJsInLivePreview: `location.reload()`";
+                                }
+                            }
                             return {
                                 hookSpecificOutput: {
                                     hookEventName: "PreToolUse",
                                     permissionDecision: "deny",
-                                    permissionDecisionReason: "Write applied successfully via Phoenix editor."
+                                    permissionDecisionReason: reason
                                 }
                             };
                         }
diff --git a/src/LiveDevelopment/BrowserScripts/RemoteFunctions.js b/src/LiveDevelopment/BrowserScripts/RemoteFunctions.js
index 4c03e8fbd8..cf054caa3d 100644
--- a/src/LiveDevelopment/BrowserScripts/RemoteFunctions.js
+++ b/src/LiveDevelopment/BrowserScripts/RemoteFunctions.js
@@ -548,7 +548,7 @@ function RemoteFunctions(config = {}) {
                 if (this.trigger) {
                     _trigger(this.elements[i], "highlight", 0);
                 }
-                clearElementBackground(this.elements[i]);
+                clearElementHoverHighlight(this.elements[i]);
             }
 
             this.elements = [];
@@ -583,19 +583,12 @@ function RemoteFunctions(config = {}) {
         return getHighlightMode() !== "click";
     }
 
-    // helper function to clear element background highlighting
-    function clearElementBackground(element) {
-        if (element._originalBackgroundColor !== undefined) {
-            element.style.backgroundColor = element._originalBackgroundColor;
-        } else {
-            // only clear background if it's currently a highlight color, not if it's an original user style
-            const currentBg = element.style.backgroundColor;
-            if (currentBg === "rgba(0, 162, 255, 0.2)" || currentBg.includes("rgba(0, 162, 255")) {
-                element.style.backgroundColor = "";
-            }
-            // if it's some other color, we just leave it as is - it's likely a user-defined style
+    // helper function to clear element hover outline highlighting
+    function clearElementHoverHighlight(element) {
+        if (element._originalHoverOutline !== undefined) {
+            element.style.outline = element._originalHoverOutline;
         }
-        delete element._originalBackgroundColor;
+        delete element._originalHoverOutline;
     }
 
     function onElementHover(event) {
@@ -622,9 +615,10 @@ function RemoteFunctions(config = {}) {
         if (_hoverHighlight && shouldShowHighlightOnHover()) {
             _hoverHighlight.clear();
 
-            // Store original background color to restore on hover out
-            element._originalBackgroundColor = element.style.backgroundColor;
-            element.style.backgroundColor = "rgba(0, 162, 255, 0.2)";
+            // Store original outline to restore on hover out, then apply a blue border
+            element._originalHoverOutline = element.style.outline;
+            const outlineColor = element.hasAttribute(GLOBALS.DATA_BRACKETS_ID_ATTR) ? "#4285F4" : "#3C3F41";
+            element.style.outline = `1px solid ${outlineColor}`;
 
             _hoverHighlight.add(element, false);
 
@@ -646,7 +640,7 @@ function RemoteFunctions(config = {}) {
             // this is to check the user's settings, if they want to show the elements highlights on hover or click
             if (_hoverHighlight && shouldShowHighlightOnHover()) {
                 _hoverHighlight.clear();
-                clearElementBackground(element);
+                clearElementHoverHighlight(element);
                 // dismiss the info box
                 const infoBoxHandler = LivePreviewView.getToolHandler("InfoBox");
                 if (infoBoxHandler) {
diff --git a/src/core-ai/aiPhoenixConnectors.js b/src/core-ai/aiPhoenixConnectors.js
index 75c1c64db4..ee51f73c85 100644
--- a/src/core-ai/aiPhoenixConnectors.js
+++ b/src/core-ai/aiPhoenixConnectors.js
@@ -442,6 +442,19 @@ define(function (require, exports, module) {
      * @param {Object} params - {file, oldText, newText}
      * @return {Promise<{applied: boolean, error?: string}>}
      */
+    function _isFileInLivePreview(filePath) {
+        const liveDetails = LiveDevMain.getLivePreviewDetails();
+        if (!liveDetails || !liveDetails.liveDocument) {
+            return false;
+        }
+        const vfsPath = SnapshotStore.realToVfsPath(filePath);
+        const liveDocPath = liveDetails.liveDocument.doc.file.fullPath;
+        if (vfsPath === liveDocPath) {
+            return true;
+        }
+        return !!(liveDetails.liveDocument.isRelated && liveDetails.liveDocument.isRelated(vfsPath));
+    }
+
     function applyEditToBuffer(params) {
         const deferred = new $.Deferred();
         _applySingleEdit(params)
@@ -449,7 +462,10 @@ define(function (require, exports, module) {
                 if (result && result.previousContent !== undefined) {
                     _previousContentMap[params.file] = result.previousContent;
                 }
-                deferred.resolve({ applied: true });
+                deferred.resolve({
+                    applied: true,
+                    isLivePreviewRelated: _isFileInLivePreview(params.file)
+                });
             })
             .fail(function (err) {
                 deferred.resolve({ applied: false, error: err.message || String(err) });