diff --git a/crates/goose-cli/src/commands/configure.rs b/crates/goose-cli/src/commands/configure.rs
index ff218f408e02..c89986ff551a 100644
--- a/crates/goose-cli/src/commands/configure.rs
+++ b/crates/goose-cli/src/commands/configure.rs
@@ -279,7 +279,146 @@ async fn handle_oauth_configuration(
     }
 }
 
-/// Dialog for configuring the AI provider and model
+/// Interactive model search that truncates the list to improve UX
+fn interactive_model_search(models: &[String]) -> Result<String, Box<dyn std::error::Error>> {
+    const MAX_VISIBLE: usize = 30;
+    let mut query = String::new();
+
+    loop {
+        let _ = cliclack::clear_screen();
+
+        let _ = cliclack::log::info(format!(
+            "🔍 {} models available. Type to filter.",
+            models.len()
+        ));
+
+        let input: String = cliclack::input("Filtering models, press Enter to search")
+            .placeholder("e.g., gpt, sonnet, llama, qwen")
+            .default_input(&query)
+            .interact::<String>()?;
+        query = input.trim().to_string();
+
+        let filtered: Vec<String> = if query.is_empty() {
+            models.to_vec()
+        } else {
+            let q = query.to_lowercase();
+            models
+                .iter()
+                .filter(|m| m.to_lowercase().contains(&q))
+                .cloned()
+                .collect()
+        };
+
+        if filtered.is_empty() {
+            let _ = cliclack::log::warning("No matching models. Try a different search.");
+            continue;
+        }
+
+        let mut items: Vec<(String, String, &str)> = filtered
+            .iter()
+            .take(MAX_VISIBLE)
+            .map(|m| (m.clone(), m.clone(), ""))
+            .collect();
+
+        if filtered.len() > MAX_VISIBLE {
+            items.insert(
+                0,
+                (
+                    "__refine__".to_string(),
+                    format!(
+                        "Refine search to see more (showing {} of {} results)",
+                        MAX_VISIBLE,
+                        filtered.len()
+                    ),
+                    "Too many matches",
+                ),
+            );
+        } else {
+            items.insert(
+                0,
+                (
+                    "__new_search__".to_string(),
+                    "Start a new search...".to_string(),
+                    "Enter a different search term",
+                ),
+            );
+        }
+
+        let selection = cliclack::select("Select a model:")
+            .items(&items)
+            .interact()?;
+
+        if selection == "__refine__" {
+            continue;
+        } else if selection == "__new_search__" {
+            query.clear();
+            continue;
+        } else {
+            return Ok(selection);
+        }
+    }
+}
+
+fn select_model_from_list(
+    models: &[String],
+    provider_meta: &goose::providers::base::ProviderMetadata,
+) -> Result<String, Box<dyn std::error::Error>> {
+    const MAX_MODELS: usize = 10;
+    // Smart model selection:
+    // If we have more than MAX_MODELS models, show the recommended models with additional search option.
+    // Otherwise, show all models without search.
+
+    if models.len() > MAX_MODELS {
+        // Get recommended models from provider metadata
+        let recommended_models: Vec<String> = provider_meta
+            .known_models
+            .iter()
+            .map(|m| m.name.clone())
+            .filter(|name| models.contains(name))
+            .collect();
+
+        if !recommended_models.is_empty() {
+            let mut model_items: Vec<(String, String, &str)> = recommended_models
+                .iter()
+                .map(|m| (m.clone(), m.clone(), "Recommended"))
+                .collect();
+
+            model_items.insert(
+                0,
+                (
+                    "search_all".to_string(),
+                    "Search all models...".to_string(),
+                    "Search complete model list",
+                ),
+            );
+
+            let selection = cliclack::select("Select a model:")
+                .items(&model_items)
+                .interact()?;
+
+            if selection == "search_all" {
+                Ok(interactive_model_search(models)?)
+            } else {
+                Ok(selection)
+            }
+        } else {
+            Ok(interactive_model_search(models)?)
+        }
+    } else {
+        // just a few models, show all without search for better UX
+        Ok(cliclack::select("Select a model:")
+            .items(
+                &models
+                    .iter()
+                    .map(|m| (m, m.as_str(), ""))
+                    .collect::<Vec<_>>(),
+            )
+            .interact()?
+            .to_string())
+    }
+}
+
+/// Dialog for configuring the A provider and model
 pub async fn configure_provider_dialog() -> Result<bool, Box<dyn Error>> {
     // Get global config instance
     let config = Config::global();
@@ -427,16 +566,7 @@ pub async fn configure_provider_dialog() -> Result<bool, Box<dyn Error>> {
             cliclack::outro(style(e.to_string()).on_red().white())?;
             return Ok(false);
         }
-        Ok(Some(models)) => cliclack::select("Select a model:")
-            .items(
-                &models
-                    .iter()
-                    .map(|m| (m, m.as_str(), ""))
-                    .collect::<Vec<_>>(),
-            )
-            .filter_mode() // enable "fuzzy search" filtering for the list of models
-            .interact()?
-            .to_string(),
+        Ok(Some(models)) => select_model_from_list(&models, provider_meta)?,
         Ok(None) => {
             let default_model =
                 std::env::var("GOOSE_MODEL").unwrap_or(provider_meta.default_model.clone());