diff --git a/packages/vscode-ide-companion/src/ide-server.ts b/packages/vscode-ide-companion/src/ide-server.ts
index df8e160b..8296c64c 100644
--- a/packages/vscode-ide-companion/src/ide-server.ts
+++ b/packages/vscode-ide-companion/src/ide-server.ts
@@ -14,59 +14,22 @@ import {
   type JSONRPCNotification,
 } from '@modelcontextprotocol/sdk/types.js';
 import { Server as HTTPServer } from 'node:http';
-import { RecentFilesManager } from './recent-files-manager.js';
+import { OpenFilesManager } from './open-files-manager.js';
 
 const MCP_SESSION_ID_HEADER = 'mcp-session-id';
 const IDE_SERVER_PORT_ENV_VAR = 'GEMINI_CLI_IDE_SERVER_PORT';
-const MAX_SELECTED_TEXT_LENGTH = 16384; // 16 KiB limit
 
 function sendIdeContextUpdateNotification(
   transport: StreamableHTTPServerTransport,
   log: (message: string) => void,
-  recentFilesManager: RecentFilesManager,
+  openFilesManager: OpenFilesManager,
 ) {
-  const editor = vscode.window.activeTextEditor;
-  const activeFile =
-    editor && editor.document.uri.scheme === 'file'
-      ? editor.document.uri.fsPath
-      : undefined;
-
-  const selection = editor?.selection;
-  const cursor = selection
-    ? {
-        // This value is a zero-based index, but the vscode IDE is one-based.
-        line: selection.active.line + 1,
-        character: selection.active.character,
-      }
-    : undefined;
-
-  let selectedText = editor?.document.getText(selection) ?? undefined;
-  if (selectedText && selectedText.length > MAX_SELECTED_TEXT_LENGTH) {
-    selectedText =
-      selectedText.substring(0, MAX_SELECTED_TEXT_LENGTH) + '... [TRUNCATED]';
-  }
-
-  const openFiles = recentFilesManager.recentFiles.map((file) => {
-    const isActive = file.filePath === activeFile;
-    return {
-      path: file.filePath,
-      timestamp: file.timestamp,
-      isActive,
-      ...(isActive && {
-        cursor,
-        selectedText,
-      }),
-    };
-  });
+  const ideContext = openFilesManager.state;
 
   const notification: JSONRPCNotification = {
     jsonrpc: '2.0',
     method: 'ide/contextUpdate',
-    params: {
-      workspaceState: {
-        openFiles,
-      },
-    },
+    params: ideContext,
   };
   log(
     `Sending IDE context update notification: ${JSON.stringify(
@@ -97,13 +60,13 @@ export class IDEServer {
     app.use(express.json());
     const mcpServer = createMcpServer();
 
-    const recentFilesManager = new RecentFilesManager(context);
-    const onDidChangeSubscription = recentFilesManager.onDidChange(() => {
+    const openFilesManager = new OpenFilesManager(context);
+    const onDidChangeSubscription = openFilesManager.onDidChange(() => {
       for (const transport of Object.values(transports)) {
         sendIdeContextUpdateNotification(
           transport,
           this.log.bind(this),
-          recentFilesManager,
+          openFilesManager,
         );
       }
     });
@@ -207,7 +170,7 @@ export class IDEServer {
         sendIdeContextUpdateNotification(
           transport,
           this.log.bind(this),
-          recentFilesManager,
+          openFilesManager,
         );
         sessionsWithInitialNotification.add(sessionId);
       }
diff --git a/packages/vscode-ide-companion/src/open-files-manager.test.ts b/packages/vscode-ide-companion/src/open-files-manager.test.ts
new file mode 100644
index 00000000..0b1ada82
--- /dev/null
+++ b/packages/vscode-ide-companion/src/open-files-manager.test.ts
@@ -0,0 +1,440 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import { afterEach, beforeEach, describe, expect, it, vi } from 'vitest';
+import * as vscode from 'vscode';
+import { OpenFilesManager, MAX_FILES } from './open-files-manager.js';
+
+vi.mock('vscode', () => ({
+  EventEmitter: vi.fn(() => {
+    const listeners: Array<(e: void) => unknown> = [];
+    return {
+      event: vi.fn((listener) => {
+        listeners.push(listener);
+        return { dispose: vi.fn() };
+      }),
+      fire: vi.fn(() => {
+        listeners.forEach((listener) => listener(undefined));
+      }),
+      dispose: vi.fn(),
+    };
+  }),
+  window: {
+    onDidChangeActiveTextEditor: vi.fn(),
+    onDidChangeTextEditorSelection: vi.fn(),
+  },
+  workspace: {
+    onDidDeleteFiles: vi.fn(),
+    onDidCloseTextDocument: vi.fn(),
+    onDidRenameFiles: vi.fn(),
+  },
+  Uri: {
+    file: (path: string) => ({
+      fsPath: path,
+      scheme: 'file',
+    }),
+  },
+  TextEditorSelectionChangeKind: {
+    Mouse: 2,
+  },
+}));
+
+describe('OpenFilesManager', () => {
+  let context: vscode.ExtensionContext;
+  let onDidChangeActiveTextEditorListener: (
+    editor: vscode.TextEditor | undefined,
+  ) => void;
+  let onDidChangeTextEditorSelectionListener: (
+    e: vscode.TextEditorSelectionChangeEvent,
+  ) => void;
+  let onDidDeleteFilesListener: (e: vscode.FileDeleteEvent) => void;
+  let onDidCloseTextDocumentListener: (doc: vscode.TextDocument) => void;
+  let onDidRenameFilesListener: (e: vscode.FileRenameEvent) => void;
+
+  beforeEach(() => {
+    vi.useFakeTimers();
+
+    vi.mocked(vscode.window.onDidChangeActiveTextEditor).mockImplementation(
+      (listener) => {
+        onDidChangeActiveTextEditorListener = listener;
+        return { dispose: vi.fn() };
+      },
+    );
+    vi.mocked(vscode.window.onDidChangeTextEditorSelection).mockImplementation(
+      (listener) => {
+        onDidChangeTextEditorSelectionListener = listener;
+        return { dispose: vi.fn() };
+      },
+    );
+    vi.mocked(vscode.workspace.onDidDeleteFiles).mockImplementation(
+      (listener) => {
+        onDidDeleteFilesListener = listener;
+        return { dispose: vi.fn() };
+      },
+    );
+    vi.mocked(vscode.workspace.onDidCloseTextDocument).mockImplementation(
+      (listener) => {
+        onDidCloseTextDocumentListener = listener;
+        return { dispose: vi.fn() };
+      },
+    );
+    vi.mocked(vscode.workspace.onDidRenameFiles).mockImplementation(
+      (listener) => {
+        onDidRenameFilesListener = listener;
+        return { dispose: vi.fn() };
+      },
+    );
+
+    context = {
+      subscriptions: [],
+    } as unknown as vscode.ExtensionContext;
+  });
+
+  afterEach(() => {
+    vi.restoreAllMocks();
+    vi.useRealTimers();
+  });
+
+  const getUri = (path: string) =>
+    vscode.Uri.file(path) as unknown as vscode.Uri;
+
+  const addFile = (uri: vscode.Uri) => {
+    onDidChangeActiveTextEditorListener({
+      document: {
+        uri,
+        getText: () => '',
+      },
+      selection: {
+        active: { line: 0, character: 0 },
+      },
+    } as unknown as vscode.TextEditor);
+  };
+
+  it('adds a file to the list', async () => {
+    const manager = new OpenFilesManager(context);
+    const uri = getUri('/test/file1.txt');
+    addFile(uri);
+    await vi.advanceTimersByTimeAsync(100);
+    expect(manager.state.workspaceState!.openFiles).toHaveLength(1);
+    expect(manager.state.workspaceState!.openFiles![0].path).toBe(
+      '/test/file1.txt',
+    );
+  });
+
+  it('moves an existing file to the top', async () => {
+    const manager = new OpenFilesManager(context);
+    const uri1 = getUri('/test/file1.txt');
+    const uri2 = getUri('/test/file2.txt');
+    addFile(uri1);
+    addFile(uri2);
+    addFile(uri1);
+    await vi.advanceTimersByTimeAsync(100);
+    expect(manager.state.workspaceState!.openFiles).toHaveLength(2);
+    expect(manager.state.workspaceState!.openFiles![0].path).toBe(
+      '/test/file1.txt',
+    );
+  });
+
+  it('does not exceed the max number of files', async () => {
+    const manager = new OpenFilesManager(context);
+    for (let i = 0; i < MAX_FILES + 5; i++) {
+      const uri = getUri(`/test/file${i}.txt`);
+      addFile(uri);
+    }
+    await vi.advanceTimersByTimeAsync(100);
+    expect(manager.state.workspaceState!.openFiles).toHaveLength(MAX_FILES);
+    expect(manager.state.workspaceState!.openFiles![0].path).toBe(
+      `/test/file${MAX_FILES + 4}.txt`,
+    );
+    expect(manager.state.workspaceState!.openFiles![MAX_FILES - 1].path).toBe(
+      `/test/file5.txt`,
+    );
+  });
+
+  it('fires onDidChange when a file is added', async () => {
+    const manager = new OpenFilesManager(context);
+    const onDidChangeSpy = vi.fn();
+    manager.onDidChange(onDidChangeSpy);
+
+    const uri = getUri('/test/file1.txt');
+    addFile(uri);
+
+    await vi.advanceTimersByTimeAsync(100);
+    expect(onDidChangeSpy).toHaveBeenCalled();
+  });
+
+  it('removes a file when it is closed', async () => {
+    const manager = new OpenFilesManager(context);
+    const uri = getUri('/test/file1.txt');
+    addFile(uri);
+    await vi.advanceTimersByTimeAsync(100);
+    expect(manager.state.workspaceState!.openFiles).toHaveLength(1);
+
+    onDidCloseTextDocumentListener({ uri } as vscode.TextDocument);
+    await vi.advanceTimersByTimeAsync(100);
+
+    expect(manager.state.workspaceState!.openFiles).toHaveLength(0);
+  });
+
+  it('fires onDidChange when a file is removed', async () => {
+    const manager = new OpenFilesManager(context);
+    const uri = getUri('/test/file1.txt');
+    addFile(uri);
+    await vi.advanceTimersByTimeAsync(100);
+
+    const onDidChangeSpy = vi.fn();
+    manager.onDidChange(onDidChangeSpy);
+
+    onDidCloseTextDocumentListener({ uri } as vscode.TextDocument);
+    await vi.advanceTimersByTimeAsync(100);
+
+    expect(onDidChangeSpy).toHaveBeenCalled();
+  });
+
+  it('removes a file when it is deleted', async () => {
+    const manager = new OpenFilesManager(context);
+    const uri1 = getUri('/test/file1.txt');
+    const uri2 = getUri('/test/file2.txt');
+    addFile(uri1);
+    addFile(uri2);
+    await vi.advanceTimersByTimeAsync(100);
+    expect(manager.state.workspaceState!.openFiles).toHaveLength(2);
+
+    onDidDeleteFilesListener({ files: [uri1] });
+    await vi.advanceTimersByTimeAsync(100);
+
+    expect(manager.state.workspaceState!.openFiles).toHaveLength(1);
+    expect(manager.state.workspaceState!.openFiles![0].path).toBe(
+      '/test/file2.txt',
+    );
+  });
+
+  it('fires onDidChange when a file is deleted', async () => {
+    const manager = new OpenFilesManager(context);
+    const uri = getUri('/test/file1.txt');
+    addFile(uri);
+    await vi.advanceTimersByTimeAsync(100);
+
+    const onDidChangeSpy = vi.fn();
+    manager.onDidChange(onDidChangeSpy);
+
+    onDidDeleteFilesListener({ files: [uri] });
+    await vi.advanceTimersByTimeAsync(100);
+
+    expect(onDidChangeSpy).toHaveBeenCalled();
+  });
+
+  it('removes multiple files when they are deleted', async () => {
+    const manager = new OpenFilesManager(context);
+    const uri1 = getUri('/test/file1.txt');
+    const uri2 = getUri('/test/file2.txt');
+    const uri3 = getUri('/test/file3.txt');
+    addFile(uri1);
+    addFile(uri2);
+    addFile(uri3);
+    await vi.advanceTimersByTimeAsync(100);
+    expect(manager.state.workspaceState!.openFiles).toHaveLength(3);
+
+    onDidDeleteFilesListener({ files: [uri1, uri3] });
+    await vi.advanceTimersByTimeAsync(100);
+
+    expect(manager.state.workspaceState!.openFiles).toHaveLength(1);
+    expect(manager.state.workspaceState!.openFiles![0].path).toBe(
+      '/test/file2.txt',
+    );
+  });
+
+  it('fires onDidChange only once when adding an existing file', async () => {
+    const manager = new OpenFilesManager(context);
+    const uri = getUri('/test/file1.txt');
+    addFile(uri);
+    await vi.advanceTimersByTimeAsync(100);
+
+    const onDidChangeSpy = vi.fn();
+    manager.onDidChange(onDidChangeSpy);
+
+    addFile(uri);
+    await vi.advanceTimersByTimeAsync(100);
+    expect(onDidChangeSpy).toHaveBeenCalledTimes(1);
+  });
+
+  it('updates the file when it is renamed', async () => {
+    const manager = new OpenFilesManager(context);
+    const oldUri = getUri('/test/file1.txt');
+    const newUri = getUri('/test/file2.txt');
+    addFile(oldUri);
+    await vi.advanceTimersByTimeAsync(100);
+    expect(manager.state.workspaceState!.openFiles).toHaveLength(1);
+    expect(manager.state.workspaceState!.openFiles![0].path).toBe(
+      '/test/file1.txt',
+    );
+
+    onDidRenameFilesListener({ files: [{ oldUri, newUri }] });
+    await vi.advanceTimersByTimeAsync(100);
+
+    expect(manager.state.workspaceState!.openFiles).toHaveLength(1);
+    expect(manager.state.workspaceState!.openFiles![0].path).toBe(
+      '/test/file2.txt',
+    );
+  });
+
+  it('adds a file when the active editor changes', async () => {
+    const manager = new OpenFilesManager(context);
+    const uri = getUri('/test/file1.txt');
+
+    addFile(uri);
+    await vi.advanceTimersByTimeAsync(100);
+
+    expect(manager.state.workspaceState!.openFiles).toHaveLength(1);
+    expect(manager.state.workspaceState!.openFiles![0].path).toBe(
+      '/test/file1.txt',
+    );
+  });
+
+  it('updates the cursor position on selection change', async () => {
+    const manager = new OpenFilesManager(context);
+    const uri = getUri('/test/file1.txt');
+    addFile(uri);
+    await vi.advanceTimersByTimeAsync(100);
+
+    const selection = {
+      active: { line: 10, character: 20 },
+    } as vscode.Selection;
+
+    onDidChangeTextEditorSelectionListener({
+      textEditor: {
+        document: { uri, getText: () => '' },
+        selection,
+      } as vscode.TextEditor,
+      selections: [selection],
+      kind: vscode.TextEditorSelectionChangeKind.Mouse,
+    });
+
+    await vi.advanceTimersByTimeAsync(100);
+
+    const file = manager.state.workspaceState!.openFiles![0];
+    expect(file.cursor).toEqual({ line: 11, character: 20 });
+  });
+
+  it('updates the selected text on selection change', async () => {
+    const manager = new OpenFilesManager(context);
+    const uri = getUri('/test/file1.txt');
+    const selection = {
+      active: { line: 10, character: 20 },
+    } as vscode.Selection;
+
+    // We need to override the mock for getText for this test
+    const textEditor = {
+      document: {
+        uri,
+        getText: vi.fn().mockReturnValue('selected text'),
+      },
+      selection,
+    } as unknown as vscode.TextEditor;
+
+    onDidChangeActiveTextEditorListener(textEditor);
+    await vi.advanceTimersByTimeAsync(100);
+
+    onDidChangeTextEditorSelectionListener({
+      textEditor,
+      selections: [selection],
+      kind: vscode.TextEditorSelectionChangeKind.Mouse,
+    });
+
+    await vi.advanceTimersByTimeAsync(100);
+
+    const file = manager.state.workspaceState!.openFiles![0];
+    expect(file.selectedText).toBe('selected text');
+    expect(textEditor.document.getText).toHaveBeenCalledWith(selection);
+  });
+
+  it('truncates long selected text', async () => {
+    const manager = new OpenFilesManager(context);
+    const uri = getUri('/test/file1.txt');
+    const longText = 'a'.repeat(20000);
+    const truncatedText = longText.substring(0, 16384) + '... [TRUNCATED]';
+
+    const selection = {
+      active: { line: 10, character: 20 },
+    } as vscode.Selection;
+
+    const textEditor = {
+      document: {
+        uri,
+        getText: vi.fn().mockReturnValue(longText),
+      },
+      selection,
+    } as unknown as vscode.TextEditor;
+
+    onDidChangeActiveTextEditorListener(textEditor);
+    await vi.advanceTimersByTimeAsync(100);
+
+    onDidChangeTextEditorSelectionListener({
+      textEditor,
+      selections: [selection],
+      kind: vscode.TextEditorSelectionChangeKind.Mouse,
+    });
+
+    await vi.advanceTimersByTimeAsync(100);
+
+    const file = manager.state.workspaceState!.openFiles![0];
+    expect(file.selectedText).toBe(truncatedText);
+  });
+
+  it('deactivates the previously active file', async () => {
+    const manager = new OpenFilesManager(context);
+    const uri1 = getUri('/test/file1.txt');
+    const uri2 = getUri('/test/file2.txt');
+
+    addFile(uri1);
+    await vi.advanceTimersByTimeAsync(100);
+
+    const selection = {
+      active: { line: 10, character: 20 },
+    } as vscode.Selection;
+
+    onDidChangeTextEditorSelectionListener({
+      textEditor: {
+        document: { uri: uri1, getText: () => '' },
+        selection,
+      } as vscode.TextEditor,
+      selections: [selection],
+      kind: vscode.TextEditorSelectionChangeKind.Mouse,
+    });
+    await vi.advanceTimersByTimeAsync(100);
+
+    let file1 = manager.state.workspaceState!.openFiles![0];
+    expect(file1.isActive).toBe(true);
+    expect(file1.cursor).toBeDefined();
+
+    addFile(uri2);
+    await vi.advanceTimersByTimeAsync(100);
+
+    file1 = manager.state.workspaceState!.openFiles!.find(
+      (f) => f.path === '/test/file1.txt',
+    )!;
+    const file2 = manager.state.workspaceState!.openFiles![0];
+
+    expect(file1.isActive).toBe(false);
+    expect(file1.cursor).toBeUndefined();
+    expect(file1.selectedText).toBeUndefined();
+    expect(file2.path).toBe('/test/file2.txt');
+    expect(file2.isActive).toBe(true);
+  });
+
+  it('ignores non-file URIs', async () => {
+    const manager = new OpenFilesManager(context);
+    const uri = {
+      fsPath: '/test/file1.txt',
+      scheme: 'untitled',
+    } as vscode.Uri;
+
+    addFile(uri);
+    await vi.advanceTimersByTimeAsync(100);
+
+    expect(manager.state.workspaceState!.openFiles).toHaveLength(0);
+  });
+});
diff --git a/packages/vscode-ide-companion/src/open-files-manager.ts b/packages/vscode-ide-companion/src/open-files-manager.ts
new file mode 100644
index 00000000..ffd1a568
--- /dev/null
+++ b/packages/vscode-ide-companion/src/open-files-manager.ts
@@ -0,0 +1,178 @@
+/**
+ * @license
+ * Copyright 2025 Google LLC
+ * SPDX-License-Identifier: Apache-2.0
+ */
+
+import * as vscode from 'vscode';
+import type { File, IdeContext } from '@google/gemini-cli-core';
+
+export const MAX_FILES = 10;
+const MAX_SELECTED_TEXT_LENGTH = 16384; // 16 KiB limit
+
+/**
+ * Keeps track of the workspace state, including open files, cursor position, and selected text.
+ */
+export class OpenFilesManager {
+  private readonly onDidChangeEmitter = new vscode.EventEmitter<void>();
+  readonly onDidChange = this.onDidChangeEmitter.event;
+  private debounceTimer: NodeJS.Timeout | undefined;
+  private openFiles: File[] = [];
+
+  constructor(private readonly context: vscode.ExtensionContext) {
+    const editorWatcher = vscode.window.onDidChangeActiveTextEditor(
+      (editor) => {
+        if (editor && this.isFileUri(editor.document.uri)) {
+          this.addOrMoveToFront(editor);
+          this.fireWithDebounce();
+        }
+      },
+    );
+
+    const selectionWatcher = vscode.window.onDidChangeTextEditorSelection(
+      (event) => {
+        if (this.isFileUri(event.textEditor.document.uri)) {
+          this.updateActiveContext(event.textEditor);
+          this.fireWithDebounce();
+        }
+      },
+    );
+
+    const closeWatcher = vscode.workspace.onDidCloseTextDocument((document) => {
+      if (this.isFileUri(document.uri)) {
+        this.remove(document.uri);
+        this.fireWithDebounce();
+      }
+    });
+
+    const deleteWatcher = vscode.workspace.onDidDeleteFiles((event) => {
+      for (const uri of event.files) {
+        if (this.isFileUri(uri)) {
+          this.remove(uri);
+        }
+      }
+      this.fireWithDebounce();
+    });
+
+    const renameWatcher = vscode.workspace.onDidRenameFiles((event) => {
+      for (const { oldUri, newUri } of event.files) {
+        if (this.isFileUri(oldUri)) {
+          if (this.isFileUri(newUri)) {
+            this.rename(oldUri, newUri);
+          } else {
+            // The file was renamed to a non-file URI, so we should remove it.
+            this.remove(oldUri);
+          }
+        }
+      }
+      this.fireWithDebounce();
+    });
+
+    context.subscriptions.push(
+      editorWatcher,
+      selectionWatcher,
+      closeWatcher,
+      deleteWatcher,
+      renameWatcher,
+    );
+
+    // Just add current active file on start-up.
+    if (
+      vscode.window.activeTextEditor &&
+      this.isFileUri(vscode.window.activeTextEditor.document.uri)
+    ) {
+      this.addOrMoveToFront(vscode.window.activeTextEditor);
+    }
+  }
+
+  private isFileUri(uri: vscode.Uri): boolean {
+    return uri.scheme === 'file';
+  }
+
+  private addOrMoveToFront(editor: vscode.TextEditor) {
+    // Deactivate previous active file
+    const currentActive = this.openFiles.find((f) => f.isActive);
+    if (currentActive) {
+      currentActive.isActive = false;
+      currentActive.cursor = undefined;
+      currentActive.selectedText = undefined;
+    }
+
+    // Remove if it exists
+    const index = this.openFiles.findIndex(
+      (f) => f.path === editor.document.uri.fsPath,
+    );
+    if (index !== -1) {
+      this.openFiles.splice(index, 1);
+    }
+
+    // Add to the front as active
+    this.openFiles.unshift({
+      path: editor.document.uri.fsPath,
+      timestamp: Date.now(),
+      isActive: true,
+    });
+
+    // Enforce max length
+    if (this.openFiles.length > MAX_FILES) {
+      this.openFiles.pop();
+    }
+
+    this.updateActiveContext(editor);
+  }
+
+  private remove(uri: vscode.Uri) {
+    const index = this.openFiles.findIndex((f) => f.path === uri.fsPath);
+    if (index !== -1) {
+      this.openFiles.splice(index, 1);
+    }
+  }
+
+  private rename(oldUri: vscode.Uri, newUri: vscode.Uri) {
+    const index = this.openFiles.findIndex((f) => f.path === oldUri.fsPath);
+    if (index !== -1) {
+      this.openFiles[index].path = newUri.fsPath;
+    }
+  }
+
+  private updateActiveContext(editor: vscode.TextEditor) {
+    const file = this.openFiles.find(
+      (f) => f.path === editor.document.uri.fsPath,
+    );
+    if (!file || !file.isActive) {
+      return;
+    }
+
+    file.cursor = editor.selection.active
+      ? {
+          line: editor.selection.active.line + 1,
+          character: editor.selection.active.character,
+        }
+      : undefined;
+
+    let selectedText: string | undefined =
+      editor.document.getText(editor.selection) || undefined;
+    if (selectedText && selectedText.length > MAX_SELECTED_TEXT_LENGTH) {
+      selectedText =
+        selectedText.substring(0, MAX_SELECTED_TEXT_LENGTH) + '... [TRUNCATED]';
+    }
+    file.selectedText = selectedText;
+  }
+
+  private fireWithDebounce() {
+    if (this.debounceTimer) {
+      clearTimeout(this.debounceTimer);
+    }
+    this.debounceTimer = setTimeout(() => {
+      this.onDidChangeEmitter.fire();
+    }, 50); // 50ms
+  }
+
+  get state(): IdeContext {
+    return {
+      workspaceState: {
+        openFiles: [...this.openFiles],
+      },
+    };
+  }
+}
diff --git a/packages/vscode-ide-companion/src/recent-files-manager.test.ts b/packages/vscode-ide-companion/src/recent-files-manager.test.ts
deleted file mode 100644
index 9d56a10d..00000000
--- a/packages/vscode-ide-companion/src/recent-files-manager.test.ts
+++ /dev/null
@@ -1,278 +0,0 @@
-/**
- * @license
- * Copyright 2025 Google LLC
- * SPDX-License-Identifier: Apache-2.0
- */
-
-import { afterEach, beforeEach, describe, expect, it, vi } from 'vitest';
-import * as vscode from 'vscode';
-import {
-  RecentFilesManager,
-  MAX_FILES,
-  MAX_FILE_AGE_MINUTES,
-} from './recent-files-manager.js';
-
-vi.mock('vscode', () => ({
-  EventEmitter: vi.fn(() => {
-    const listeners: Array<(e: void) => unknown> = [];
-    return {
-      event: vi.fn((listener) => {
-        listeners.push(listener);
-        return { dispose: vi.fn() };
-      }),
-      fire: vi.fn(() => {
-        listeners.forEach((listener) => listener(undefined));
-      }),
-      dispose: vi.fn(),
-    };
-  }),
-  window: {
-    onDidChangeActiveTextEditor: vi.fn(),
-    onDidChangeTextEditorSelection: vi.fn(),
-  },
-  workspace: {
-    onDidDeleteFiles: vi.fn(),
-    onDidCloseTextDocument: vi.fn(),
-    onDidRenameFiles: vi.fn(),
-  },
-  Uri: {
-    file: (path: string) => ({
-      fsPath: path,
-      scheme: 'file',
-    }),
-  },
-}));
-
-describe('RecentFilesManager', () => {
-  let context: vscode.ExtensionContext;
-  let onDidChangeActiveTextEditorListener: (
-    editor: vscode.TextEditor | undefined,
-  ) => void;
-  let onDidDeleteFilesListener: (e: vscode.FileDeleteEvent) => void;
-  let onDidCloseTextDocumentListener: (doc: vscode.TextDocument) => void;
-  let onDidRenameFilesListener: (e: vscode.FileRenameEvent) => void;
-
-  beforeEach(() => {
-    vi.useFakeTimers();
-
-    vi.mocked(vscode.window.onDidChangeActiveTextEditor).mockImplementation(
-      (listener) => {
-        onDidChangeActiveTextEditorListener = listener;
-        return { dispose: vi.fn() };
-      },
-    );
-    vi.mocked(vscode.workspace.onDidDeleteFiles).mockImplementation(
-      (listener) => {
-        onDidDeleteFilesListener = listener;
-        return { dispose: vi.fn() };
-      },
-    );
-    vi.mocked(vscode.workspace.onDidCloseTextDocument).mockImplementation(
-      (listener) => {
-        onDidCloseTextDocumentListener = listener;
-        return { dispose: vi.fn() };
-      },
-    );
-    vi.mocked(vscode.workspace.onDidRenameFiles).mockImplementation(
-      (listener) => {
-        onDidRenameFilesListener = listener;
-        return { dispose: vi.fn() };
-      },
-    );
-
-    context = {
-      subscriptions: [],
-    } as unknown as vscode.ExtensionContext;
-  });
-
-  afterEach(() => {
-    vi.restoreAllMocks();
-    vi.useRealTimers();
-  });
-
-  const getUri = (path: string) =>
-    vscode.Uri.file(path) as unknown as vscode.Uri;
-
-  it('adds a file to the list', async () => {
-    const manager = new RecentFilesManager(context);
-    const uri = getUri('/test/file1.txt');
-    manager.add(uri);
-    await vi.advanceTimersByTimeAsync(100);
-    expect(manager.recentFiles).toHaveLength(1);
-    expect(manager.recentFiles[0].filePath).toBe('/test/file1.txt');
-  });
-
-  it('moves an existing file to the top', async () => {
-    const manager = new RecentFilesManager(context);
-    const uri1 = getUri('/test/file1.txt');
-    const uri2 = getUri('/test/file2.txt');
-    manager.add(uri1);
-    manager.add(uri2);
-    manager.add(uri1);
-    await vi.advanceTimersByTimeAsync(100);
-    expect(manager.recentFiles).toHaveLength(2);
-    expect(manager.recentFiles[0].filePath).toBe('/test/file1.txt');
-  });
-
-  it('does not exceed the max number of files', async () => {
-    const manager = new RecentFilesManager(context);
-    for (let i = 0; i < MAX_FILES + 5; i++) {
-      const uri = getUri(`/test/file${i}.txt`);
-      manager.add(uri);
-    }
-    await vi.advanceTimersByTimeAsync(100);
-    expect(manager.recentFiles).toHaveLength(MAX_FILES);
-    expect(manager.recentFiles[0].filePath).toBe(
-      `/test/file${MAX_FILES + 4}.txt`,
-    );
-    expect(manager.recentFiles[MAX_FILES - 1].filePath).toBe(`/test/file5.txt`);
-  });
-
-  it('fires onDidChange when a file is added', async () => {
-    const manager = new RecentFilesManager(context);
-    const onDidChangeSpy = vi.fn();
-    manager.onDidChange(onDidChangeSpy);
-
-    const uri = getUri('/test/file1.txt');
-    manager.add(uri);
-
-    await vi.advanceTimersByTimeAsync(100);
-    expect(onDidChangeSpy).toHaveBeenCalled();
-  });
-
-  it('removes a file when it is closed', async () => {
-    const manager = new RecentFilesManager(context);
-    const uri = getUri('/test/file1.txt');
-    manager.add(uri);
-    await vi.advanceTimersByTimeAsync(100);
-    expect(manager.recentFiles).toHaveLength(1);
-
-    onDidCloseTextDocumentListener({ uri } as vscode.TextDocument);
-    await vi.advanceTimersByTimeAsync(100);
-
-    expect(manager.recentFiles).toHaveLength(0);
-  });
-
-  it('fires onDidChange when a file is removed', async () => {
-    const manager = new RecentFilesManager(context);
-    const uri = getUri('/test/file1.txt');
-    manager.add(uri);
-    await vi.advanceTimersByTimeAsync(100);
-
-    const onDidChangeSpy = vi.fn();
-    manager.onDidChange(onDidChangeSpy);
-
-    onDidCloseTextDocumentListener({ uri } as vscode.TextDocument);
-    await vi.advanceTimersByTimeAsync(100);
-
-    expect(onDidChangeSpy).toHaveBeenCalled();
-  });
-
-  it('removes a file when it is deleted', async () => {
-    const manager = new RecentFilesManager(context);
-    const uri1 = getUri('/test/file1.txt');
-    const uri2 = getUri('/test/file2.txt');
-    manager.add(uri1);
-    manager.add(uri2);
-    await vi.advanceTimersByTimeAsync(100);
-    expect(manager.recentFiles).toHaveLength(2);
-
-    onDidDeleteFilesListener({ files: [uri1] });
-    await vi.advanceTimersByTimeAsync(100);
-
-    expect(manager.recentFiles).toHaveLength(1);
-    expect(manager.recentFiles[0].filePath).toBe('/test/file2.txt');
-  });
-
-  it('fires onDidChange when a file is deleted', async () => {
-    const manager = new RecentFilesManager(context);
-    const uri = getUri('/test/file1.txt');
-    manager.add(uri);
-    await vi.advanceTimersByTimeAsync(100);
-
-    const onDidChangeSpy = vi.fn();
-    manager.onDidChange(onDidChangeSpy);
-
-    onDidDeleteFilesListener({ files: [uri] });
-    await vi.advanceTimersByTimeAsync(100);
-
-    expect(onDidChangeSpy).toHaveBeenCalled();
-  });
-
-  it('removes multiple files when they are deleted', async () => {
-    const manager = new RecentFilesManager(context);
-    const uri1 = getUri('/test/file1.txt');
-    const uri2 = getUri('/test/file2.txt');
-    const uri3 = getUri('/test/file3.txt');
-    manager.add(uri1);
-    manager.add(uri2);
-    manager.add(uri3);
-    await vi.advanceTimersByTimeAsync(100);
-    expect(manager.recentFiles).toHaveLength(3);
-
-    onDidDeleteFilesListener({ files: [uri1, uri3] });
-    await vi.advanceTimersByTimeAsync(100);
-
-    expect(manager.recentFiles).toHaveLength(1);
-    expect(manager.recentFiles[0].filePath).toBe('/test/file2.txt');
-  });
-
-  it('prunes files older than the max age', () => {
-    const manager = new RecentFilesManager(context);
-    const uri1 = getUri('/test/file1.txt');
-    manager.add(uri1);
-
-    // Advance time by more than the max age
-    const twoMinutesMs = (MAX_FILE_AGE_MINUTES + 1) * 60 * 1000;
-    vi.advanceTimersByTime(twoMinutesMs);
-
-    const uri2 = getUri('/test/file2.txt');
-    manager.add(uri2);
-
-    expect(manager.recentFiles).toHaveLength(1);
-    expect(manager.recentFiles[0].filePath).toBe('/test/file2.txt');
-  });
-
-  it('fires onDidChange only once when adding an existing file', async () => {
-    const manager = new RecentFilesManager(context);
-    const uri = getUri('/test/file1.txt');
-    manager.add(uri);
-    await vi.advanceTimersByTimeAsync(100);
-
-    const onDidChangeSpy = vi.fn();
-    manager.onDidChange(onDidChangeSpy);
-
-    manager.add(uri);
-    await vi.advanceTimersByTimeAsync(100);
-    expect(onDidChangeSpy).toHaveBeenCalledTimes(1);
-  });
-
-  it('updates the file when it is renamed', async () => {
-    const manager = new RecentFilesManager(context);
-    const oldUri = getUri('/test/file1.txt');
-    const newUri = getUri('/test/file2.txt');
-    manager.add(oldUri);
-    await vi.advanceTimersByTimeAsync(100);
-    expect(manager.recentFiles).toHaveLength(1);
-    expect(manager.recentFiles[0].filePath).toBe('/test/file1.txt');
-
-    onDidRenameFilesListener({ files: [{ oldUri, newUri }] });
-    await vi.advanceTimersByTimeAsync(100);
-
-    expect(manager.recentFiles).toHaveLength(1);
-    expect(manager.recentFiles[0].filePath).toBe('/test/file2.txt');
-  });
-
-  it('adds a file when the active editor changes', async () => {
-    const manager = new RecentFilesManager(context);
-    const uri = getUri('/test/file1.txt');
-
-    onDidChangeActiveTextEditorListener({
-      document: { uri },
-    } as vscode.TextEditor);
-    await vi.advanceTimersByTimeAsync(100);
-
-    expect(manager.recentFiles).toHaveLength(1);
-    expect(manager.recentFiles[0].filePath).toBe('/test/file1.txt');
-  });
-});
diff --git a/packages/vscode-ide-companion/src/recent-files-manager.ts b/packages/vscode-ide-companion/src/recent-files-manager.ts
deleted file mode 100644
index 317cc903..00000000
--- a/packages/vscode-ide-companion/src/recent-files-manager.ts
+++ /dev/null
@@ -1,111 +0,0 @@
-/**
- * @license
- * Copyright 2025 Google LLC
- * SPDX-License-Identifier: Apache-2.0
- */
-
-import * as vscode from 'vscode';
-
-export const MAX_FILES = 10;
-export const MAX_FILE_AGE_MINUTES = 5;
-
-interface RecentFile {
-  uri: vscode.Uri;
-  timestamp: number;
-}
-
-/**
- * Keeps track of the 10 most recently-opened files
- * opened less than 5 min ago. If a file is closed or deleted,
- * it will be removed. If the max length is reached, older files will get removed first.
- */
-export class RecentFilesManager {
-  private readonly files: RecentFile[] = [];
-  private readonly onDidChangeEmitter = new vscode.EventEmitter<void>();
-  readonly onDidChange = this.onDidChangeEmitter.event;
-  private debounceTimer: NodeJS.Timeout | undefined;
-
-  constructor(private readonly context: vscode.ExtensionContext) {
-    const editorWatcher = vscode.window.onDidChangeActiveTextEditor(
-      (editor) => {
-        if (editor) {
-          this.add(editor.document.uri);
-        }
-      },
-    );
-    const deleteWatcher = vscode.workspace.onDidDeleteFiles((event) => {
-      for (const uri of event.files) {
-        this.remove(uri);
-      }
-    });
-    const closeWatcher = vscode.workspace.onDidCloseTextDocument((document) => {
-      this.remove(document.uri);
-    });
-    const renameWatcher = vscode.workspace.onDidRenameFiles((event) => {
-      for (const { oldUri, newUri } of event.files) {
-        this.remove(oldUri, false);
-        this.add(newUri);
-      }
-    });
-
-    const selectionWatcher = vscode.window.onDidChangeTextEditorSelection(
-      () => {
-        this.fireWithDebounce();
-      },
-    );
-
-    context.subscriptions.push(
-      editorWatcher,
-      deleteWatcher,
-      closeWatcher,
-      renameWatcher,
-      selectionWatcher,
-    );
-  }
-
-  private fireWithDebounce() {
-    if (this.debounceTimer) {
-      clearTimeout(this.debounceTimer);
-    }
-    this.debounceTimer = setTimeout(() => {
-      this.onDidChangeEmitter.fire();
-    }, 50); // 50ms
-  }
-
-  private remove(uri: vscode.Uri, fireEvent = true) {
-    const index = this.files.findIndex(
-      (file) => file.uri.fsPath === uri.fsPath,
-    );
-    if (index !== -1) {
-      this.files.splice(index, 1);
-      if (fireEvent) {
-        this.fireWithDebounce();
-      }
-    }
-  }
-
-  add(uri: vscode.Uri) {
-    if (uri.scheme !== 'file') {
-      return;
-    }
-
-    this.remove(uri, false);
-    this.files.unshift({ uri, timestamp: Date.now() });
-
-    if (this.files.length > MAX_FILES) {
-      this.files.pop();
-    }
-    this.fireWithDebounce();
-  }
-
-  get recentFiles(): Array<{ filePath: string; timestamp: number }> {
-    const now = Date.now();
-    const maxAgeInMs = MAX_FILE_AGE_MINUTES * 60 * 1000;
-    return this.files
-      .filter((file) => now - file.timestamp < maxAgeInMs)
-      .map((file) => ({
-        filePath: file.uri.fsPath,
-        timestamp: file.timestamp,
-      }));
-  }
-}