diff --git a/.changeset/fix-condensing-prompt.md b/.changeset/fix-condensing-prompt.md
new file mode 100644
index 00000000000..d37e37d263e
--- /dev/null
+++ b/.changeset/fix-condensing-prompt.md
@@ -0,0 +1,5 @@
+---
+"kilo-code": patch
+---
+
+Fix context condensing prompt not saving properly
diff --git a/webview-ui/src/components/settings/PromptsSettings.tsx b/webview-ui/src/components/settings/PromptsSettings.tsx
index c5ab742c0a4..c5f22942844 100644
--- a/webview-ui/src/components/settings/PromptsSettings.tsx
+++ b/webview-ui/src/components/settings/PromptsSettings.tsx
@@ -54,6 +54,10 @@ const PromptsSettings = ({
 	const [testPrompt, setTestPrompt] = useState("")
 	const [isEnhancing, setIsEnhancing] = useState(false)
 	const [activeSupportOption, setActiveSupportOption] = useState<SupportPromptType>("ENHANCE")
+	// kilocode_change start
+	// Local state for condensing prompt to prevent flickering during typing
+	const [localCondensingPrompt, setLocalCondensingPrompt] = useState<string | undefined>(undefined)
+	// kilocode_change end
 
 	useEffect(() => {
 		const handler = (event: MessageEvent) => {
@@ -70,6 +74,15 @@ const PromptsSettings = ({
 		return () => window.removeEventListener("message", handler)
 	}, [])
 
+	// kilocode_change start
+	// Initialize local condensing prompt when switching to CONDENSE tab
+	useEffect(() => {
+		if (activeSupportOption === "CONDENSE") {
+			setLocalCondensingPrompt(customCondensingPrompt)
+		}
+	}, [activeSupportOption, customCondensingPrompt])
+	// kilocode_change end
+
 	const updateSupportPrompt = (type: SupportPromptType, value: string | undefined) => {
 		// Don't trim during editing to preserve intentional whitespace
 		// Use nullish coalescing to preserve empty strings
@@ -120,8 +133,11 @@ const PromptsSettings = ({
 
 	const getSupportPromptValue = (type: SupportPromptType): string => {
 		if (type === "CONDENSE") {
-			// Preserve empty string - only fall back to default when value is nullish
-			return customCondensingPrompt ?? supportPrompt.default.CONDENSE
+			// kilocode_change start
+			// Use local state during editing to prevent flickering
+			// Fall back to extension state, then to default
+			return localCondensingPrompt ?? customCondensingPrompt ?? supportPrompt.default.CONDENSE
+			// kilocode_change end
 		}
 		return supportPrompt.get(customSupportPrompts, type)
 	}
@@ -186,8 +202,26 @@ const PromptsSettings = ({
 							const value =
 								(e as unknown as CustomEvent)?.detail?.target?.value ??
 								((e as any).target as HTMLTextAreaElement).value
+							// kilocode_change start
+							// For CONDENSE, update local state immediately to prevent flickering
+							if (activeSupportOption === "CONDENSE") {
+								setLocalCondensingPrompt(value)
+							}
+							// kilocode_change end
 							updateSupportPrompt(activeSupportOption, value)
 						}}
+						// kilocode_change start
+						onBlur={(e) => {
+							// For CONDENSE, sync with extension state on blur
+							if (activeSupportOption === "CONDENSE") {
+								const value =
+									(e as unknown as CustomEvent)?.detail?.target?.value ??
+									((e as any).target as HTMLTextAreaElement).value
+								setLocalCondensingPrompt(undefined)
+								updateSupportPrompt(activeSupportOption, value)
+							}
+						}}
+						// kilocode_change end
 						rows={6}
 						className="w-full"
 					/>