diff --git a/docs/cli/configuration.md b/docs/cli/configuration.md
index e3c379b0..b4dd2e95 100644
--- a/docs/cli/configuration.md
+++ b/docs/cli/configuration.md
@@ -56,13 +56,15 @@ In addition to a project settings file, a project's `.gemini` directory can cont
 - **`fileFiltering`** (object):
 
   - **Description:** Controls git-aware file filtering behavior for @ commands and file discovery tools.
-  - **Default:** `"respectGitIgnore": true`
+  - **Default:** `"respectGitIgnore": true, "enableRecursiveFileSearch": true`
   - **Properties:**
     - **`respectGitIgnore`** (boolean): Whether to respect .gitignore patterns when discovering files. When set to `true`, git-ignored files (like `node_modules/`, `dist/`, `.env`) are automatically excluded from @ commands and file listing operations.
+    - **`enableRecursiveFileSearch`** (boolean): Whether to enable searching recursively for filenames under the current tree when completing @ prefixes in the prompt.
   - **Example:**
     ```json
     "fileFiltering": {
-      "respectGitIgnore": true
+      "respectGitIgnore": true,
+      "enableRecursiveFileSearch": false
     }
     ```
 
diff --git a/packages/cli/src/config/config.integration.test.ts b/packages/cli/src/config/config.integration.test.ts
index de329384..868538ab 100644
--- a/packages/cli/src/config/config.integration.test.ts
+++ b/packages/cli/src/config/config.integration.test.ts
@@ -75,7 +75,9 @@ describe('Configuration Integration Tests', () => {
         sandbox: false,
         targetDir: tempDir,
         debugMode: false,
-        fileFilteringRespectGitIgnore: false,
+        fileFiltering: {
+          respectGitIgnore: false,
+        },
       };
 
       const config = new Config(configParams);
@@ -109,7 +111,9 @@ describe('Configuration Integration Tests', () => {
         sandbox: false,
         targetDir: tempDir,
         debugMode: false,
-        fileFilteringRespectGitIgnore: false,
+        fileFiltering: {
+          respectGitIgnore: false,
+        },
       };
 
       const config = new Config(configParams);
@@ -178,7 +182,9 @@ describe('Configuration Integration Tests', () => {
         sandbox: false,
         targetDir: tempDir,
         debugMode: false,
-        fileFilteringRespectGitIgnore: false, // CI might need to see all files
+        fileFiltering: {
+          respectGitIgnore: false,
+        }, // CI might need to see all files
       };
 
       const config = new Config(configParams);
diff --git a/packages/cli/src/config/config.ts b/packages/cli/src/config/config.ts
index afc63b78..26894bc9 100644
--- a/packages/cli/src/config/config.ts
+++ b/packages/cli/src/config/config.ts
@@ -228,7 +228,11 @@ export async function loadCliConfig(
       logPrompts: argv.telemetryLogPrompts ?? settings.telemetry?.logPrompts,
     },
     // Git-aware file filtering settings
-    fileFilteringRespectGitIgnore: settings.fileFiltering?.respectGitIgnore,
+    fileFiltering: {
+      respectGitIgnore: settings.fileFiltering?.respectGitIgnore,
+      enableRecursiveFileSearch:
+        settings.fileFiltering?.enableRecursiveFileSearch,
+    },
     checkpointing: argv.checkpointing || settings.checkpointing?.enabled,
     proxy:
       process.env.HTTPS_PROXY ||
diff --git a/packages/cli/src/config/settings.ts b/packages/cli/src/config/settings.ts
index b63f5bb6..b149216a 100644
--- a/packages/cli/src/config/settings.ts
+++ b/packages/cli/src/config/settings.ts
@@ -56,6 +56,7 @@ export interface Settings {
   // Git-aware file filtering settings
   fileFiltering?: {
     respectGitIgnore?: boolean;
+    enableRecursiveFileSearch?: boolean;
   };
 
   // UI setting. Does not display the ANSI-controlled terminal title.
diff --git a/packages/cli/src/ui/hooks/useCompletion.integration.test.ts b/packages/cli/src/ui/hooks/useCompletion.integration.test.ts
index 40af5d4f..237b6aae 100644
--- a/packages/cli/src/ui/hooks/useCompletion.integration.test.ts
+++ b/packages/cli/src/ui/hooks/useCompletion.integration.test.ts
@@ -47,6 +47,7 @@ describe('useCompletion git-aware filtering integration', () => {
     mockConfig = {
       getFileFilteringRespectGitIgnore: vi.fn(() => true),
       getFileService: vi.fn().mockReturnValue(mockFileDiscoveryService),
+      getEnableRecursiveFileSearch: vi.fn(() => true),
     };
 
     vi.mocked(FileDiscoveryService).mockImplementation(
@@ -170,6 +171,35 @@ describe('useCompletion git-aware filtering integration', () => {
     );
   });
 
+  it('should not perform recursive search when disabled in config', async () => {
+    const globResults = [`${testCwd}/data`, `${testCwd}/dist`];
+    vi.mocked(glob).mockResolvedValue(globResults);
+
+    // Disable recursive search in the mock config
+    const mockConfigNoRecursive = {
+      ...mockConfig,
+      getEnableRecursiveFileSearch: vi.fn(() => false),
+    };
+
+    vi.mocked(fs.readdir).mockResolvedValue([
+      { name: 'data', isDirectory: () => true },
+      { name: 'dist', isDirectory: () => true },
+    ] as Array<{ name: string; isDirectory: () => boolean }>);
+
+    renderHook(() =>
+      useCompletion('@d', testCwd, true, slashCommands, mockConfigNoRecursive),
+    );
+
+    await act(async () => {
+      await new Promise((resolve) => setTimeout(resolve, 150));
+    });
+
+    // `glob` should not be called because recursive search is disabled
+    expect(glob).not.toHaveBeenCalled();
+    // `fs.readdir` should be called for the top-level directory instead
+    expect(fs.readdir).toHaveBeenCalledWith(testCwd, { withFileTypes: true });
+  });
+
   it('should work without config (fallback behavior)', async () => {
     vi.mocked(fs.readdir).mockResolvedValue([
       { name: 'src', isDirectory: () => true },
diff --git a/packages/cli/src/ui/hooks/useCompletion.ts b/packages/cli/src/ui/hooks/useCompletion.ts
index 7cbe8a7e..eef54fc8 100644
--- a/packages/cli/src/ui/hooks/useCompletion.ts
+++ b/packages/cli/src/ui/hooks/useCompletion.ts
@@ -322,10 +322,16 @@ export function useCompletion(
       let fetchedSuggestions: Suggestion[] = [];
 
       const fileDiscoveryService = config ? config.getFileService() : null;
+      const enableRecursiveSearch =
+        config?.getEnableRecursiveFileSearch() ?? true;
 
       try {
         // If there's no slash, or it's the root, do a recursive search from cwd
-        if (partialPath.indexOf('/') === -1 && prefix) {
+        if (
+          partialPath.indexOf('/') === -1 &&
+          prefix &&
+          enableRecursiveSearch
+        ) {
           if (fileDiscoveryService) {
             fetchedSuggestions = await findFilesWithGlob(
               prefix,
diff --git a/packages/core/src/config/config.test.ts b/packages/core/src/config/config.test.ts
index 8a9f038c..9b576b96 100644
--- a/packages/core/src/config/config.test.ts
+++ b/packages/core/src/config/config.test.ts
@@ -163,7 +163,9 @@ describe('Server Config (config.ts)', () => {
   it('should set custom file filtering settings when provided', () => {
     const paramsWithFileFiltering: ConfigParameters = {
       ...baseParams,
-      fileFilteringRespectGitIgnore: false,
+      fileFiltering: {
+        respectGitIgnore: false,
+      },
     };
     const config = new Config(paramsWithFileFiltering);
     expect(config.getFileFilteringRespectGitIgnore()).toBe(false);
diff --git a/packages/core/src/config/config.ts b/packages/core/src/config/config.ts
index 514fc717..be21ac8c 100644
--- a/packages/core/src/config/config.ts
+++ b/packages/core/src/config/config.ts
@@ -104,7 +104,10 @@ export interface ConfigParameters {
   contextFileName?: string | string[];
   accessibility?: AccessibilitySettings;
   telemetry?: TelemetrySettings;
-  fileFilteringRespectGitIgnore?: boolean;
+  fileFiltering?: {
+    respectGitIgnore?: boolean;
+    enableRecursiveFileSearch?: boolean;
+  };
   checkpointing?: boolean;
   proxy?: string;
   cwd: string;
@@ -136,7 +139,10 @@ export class Config {
   private readonly accessibility: AccessibilitySettings;
   private readonly telemetrySettings: TelemetrySettings;
   private geminiClient!: GeminiClient;
-  private readonly fileFilteringRespectGitIgnore: boolean;
+  private readonly fileFiltering: {
+    respectGitIgnore: boolean;
+    enableRecursiveFileSearch: boolean;
+  };
   private fileDiscoveryService: FileDiscoveryService | null = null;
   private gitService: GitService | undefined = undefined;
   private readonly checkpointing: boolean;
@@ -172,8 +178,11 @@ export class Config {
       logPrompts: params.telemetry?.logPrompts ?? true,
     };
 
-    this.fileFilteringRespectGitIgnore =
-      params.fileFilteringRespectGitIgnore ?? true;
+    this.fileFiltering = {
+      respectGitIgnore: params.fileFiltering?.respectGitIgnore ?? true,
+      enableRecursiveFileSearch:
+        params.fileFiltering?.enableRecursiveFileSearch ?? true,
+    };
     this.checkpointing = params.checkpointing ?? false;
     this.proxy = params.proxy;
     this.cwd = params.cwd ?? process.cwd();
@@ -330,8 +339,12 @@ export class Config {
     return getProjectTempDir(this.getProjectRoot());
   }
 
+  getEnableRecursiveFileSearch(): boolean {
+    return this.fileFiltering.enableRecursiveFileSearch;
+  }
+
   getFileFilteringRespectGitIgnore(): boolean {
-    return this.fileFilteringRespectGitIgnore;
+    return this.fileFiltering.respectGitIgnore;
   }
 
   getCheckpointingEnabled(): boolean {