diff --git a/extensions/vscode/e2e/tests/KeyboardShortcuts.test.ts b/extensions/vscode/e2e/tests/KeyboardShortcuts.test.ts
index e9b79472f0d..60dd595e0c5 100644
--- a/extensions/vscode/e2e/tests/KeyboardShortcuts.test.ts
+++ b/extensions/vscode/e2e/tests/KeyboardShortcuts.test.ts
@@ -4,12 +4,12 @@ import {
   InputBox,
   Key,
   TextEditor,
+  until,
   VSBrowser,
   WebDriver,
   WebElement,
   WebView,
-  Workbench,
-  until,
+  Workbench
 } from "vscode-extension-tester";
 
 import { GUIActions } from "../actions/GUI.actions";
@@ -103,10 +103,12 @@ describe("Keyboard Shortcuts", () => {
     );
   }).timeout(DEFAULT_TIMEOUT.XL);
 
-  it("Should not create a code block when Cmd+L is pressed without text highlighted", async () => {
-    const text = "Hello, world!";
+
+  it("Should not create a code block when Cmd+L is pressed on an empty line", async () => {
+    const text = "\n\nHello, world!";
 
     await editor.setText(text);
+    await editor.moveCursor(1, 1);//Move cursor to the 1st line
 
     await GUIActions.executeFocusContinueInputShortcut(driver);
 
@@ -115,9 +117,54 @@ describe("Keyboard Shortcuts", () => {
     await TestUtils.expectNoElement(async () => {
       return GUISelectors.getInputBoxCodeBlockAtIndex(view, 0);
     }, DEFAULT_TIMEOUT.XS);
+
+  });
+
+  it("Should create a code block when Cmd+L is pressed with text highlighted", async () => {
+    const text = "Hello, world!";
+
+    await editor.setText(text);
+    await editor.selectText(text);
+
+    await GUIActions.executeFocusContinueInputShortcut(driver);
+
+    ({ view } = await GUIActions.switchToReactIframe());
+
+    const codeBlock = await TestUtils.waitForSuccess(() =>
+      GUISelectors.getInputBoxCodeBlockAtIndex(view, 0),
+    );
+    const codeblockContent = await codeBlock.getAttribute(
+      "data-codeblockcontent",
+    );
+
+    expect(codeblockContent).to.equal(text);
+
+    await GUIActions.executeFocusContinueInputShortcut(driver);
+  }).timeout(DEFAULT_TIMEOUT.XL);
+
+  it("Should create a code block when Cmd+L is pressed on a non-empty line", async () => {
+    const text = "Hello, world!";
+
+    await editor.setText(text);
+    await editor.moveCursor(1, 7);//Move cursor to the 1st space
+
+    await GUIActions.executeFocusContinueInputShortcut(driver);
+
+    ({ view } = await GUIActions.switchToReactIframe());
+
+    const codeBlock = await TestUtils.waitForSuccess(() =>
+      GUISelectors.getInputBoxCodeBlockAtIndex(view, 0),
+    );
+    const codeblockContent = await codeBlock.getAttribute(
+      "data-codeblockcontent",
+    );
+
+    expect(codeblockContent).to.equal(text);
+
     await GUIActions.executeFocusContinueInputShortcut(driver);
   }).timeout(DEFAULT_TIMEOUT.XL);
 
+
   it("Fresh VS Code window → sidebar closed → cmd+L with no code highlighted → opens sidebar and focuses input → cmd+L closes sidebar", async () => {
     await GUIActions.executeFocusContinueInputShortcut(driver);
     ({ view } = await GUIActions.switchToReactIframe());
@@ -174,25 +221,4 @@ describe("Keyboard Shortcuts", () => {
     expect(await textInput.isDisplayed()).to.equal(false);
   }).timeout(DEFAULT_TIMEOUT.XL);
 
-  it("Should create a code block when Cmd+L is pressed with text highlighted", async () => {
-    const text = "Hello, world!";
-
-    await editor.setText(text);
-    await editor.selectText(text);
-
-    await GUIActions.executeFocusContinueInputShortcut(driver);
-
-    ({ view } = await GUIActions.switchToReactIframe());
-
-    const codeBlock = await TestUtils.waitForSuccess(() =>
-      GUISelectors.getInputBoxCodeBlockAtIndex(view, 0),
-    );
-    const codeblockContent = await codeBlock.getAttribute(
-      "data-codeblockcontent",
-    );
-
-    expect(codeblockContent).to.equal(text);
-
-    await GUIActions.executeFocusContinueInputShortcut(driver);
-  }).timeout(DEFAULT_TIMEOUT.XL);
 });
diff --git a/extensions/vscode/package.json b/extensions/vscode/package.json
index 4a321af0c9e..028a8bde7f2 100644
--- a/extensions/vscode/package.json
+++ b/extensions/vscode/package.json
@@ -525,13 +525,12 @@
       "continue.continueSubMenu": [
         {
           "command": "continue.focusContinueInputWithoutClear",
-          "group": "Continue",
-          "when": "editorHasSelection"
+          "group": "Continue"
         },
         {
           "command": "continue.focusEdit",
           "group": "Continue",
-          "when": "editorHasSelection && !editorReadonly"
+          "when": "!editorReadonly"
         },
         {
           "command": "continue.writeCommentsForCode",
diff --git a/extensions/vscode/src/util/addCode.ts b/extensions/vscode/src/util/addCode.ts
index 524d77e8817..2fe3ea2ec11 100644
--- a/extensions/vscode/src/util/addCode.ts
+++ b/extensions/vscode/src/util/addCode.ts
@@ -40,18 +40,34 @@ export function getRangeInFileWithContents(
       return null;
     }
 
-    let selectionRange = new vscode.Range(selection.start, selection.end);
-    const document = editor.document;
-    // Select the context from the beginning of the selection start line to the selection start position
-    const beginningOfSelectionStartLine = selection.start.with(undefined, 0);
-    const textBeforeSelectionStart = document.getText(
-      new vscode.Range(beginningOfSelectionStartLine, selection.start),
-    );
-    // If there are only whitespace before the start of the selection, include the indentation
-    if (textBeforeSelectionStart.trim().length === 0) {
-      selectionRange = selectionRange.with({
-        start: beginningOfSelectionStartLine,
-      });
+    let selectionRange: vscode.Range | undefined;
+    // if the selection is empty and the line is not, then use the entire line
+    if (selection.isEmpty) {
+      const startLine = editor.document.lineAt(selection.start.line);
+      if (startLine.isEmptyOrWhitespace) {
+        // Empty selection on an empty line, nothing else to do here
+        return null;
+      }
+      // Select the whole line
+      selectionRange = new vscode.Range(
+        selection.start.with(undefined, 0),
+        selection.end.with(undefined, startLine.range.end.character),
+      );
+    }
+    if (!selectionRange) {
+      selectionRange = new vscode.Range(selection.start, selection.end);
+      const document = editor.document;
+      // Select the context from the beginning of the selection start line to the selection start position
+      const beginningOfSelectionStartLine = selection.start.with(undefined, 0);
+      const textBeforeSelectionStart = document.getText(
+        new vscode.Range(beginningOfSelectionStartLine, selection.start),
+      );
+      // If there are only whitespace before the start of the selection, include the indentation
+      if (textBeforeSelectionStart.trim().length === 0) {
+        selectionRange = selectionRange.with({
+          start: beginningOfSelectionStartLine,
+        });
+      }
     }
 
     const contents = editor.document.getText(selectionRange);
@@ -78,7 +94,7 @@ export function getRangeInFileWithContents(
 export async function addHighlightedCodeToContext(
   webviewProtocol: VsCodeWebviewProtocol | undefined,
 ) {
-  const rangeInFileWithContents = getRangeInFileWithContents();
+  const rangeInFileWithContents = getRangeInFileWithContents(true);
   if (rangeInFileWithContents) {
     webviewProtocol?.request("highlightedCode", {
       rangeInFileWithContents,