diff --git a/__mocks__/obsidian.ts b/__mocks__/obsidian.ts
index fc05d12..292136f 100755
--- a/__mocks__/obsidian.ts
+++ b/__mocks__/obsidian.ts
@@ -5,11 +5,13 @@ export class Vault {
   getMarkdownFiles: () => any[];
   read: (file: any) => Promise<string>;
   create: (path: string, content: string) => Promise<any>;
+  createFolder: (path: string) => Promise<any>;
 
   constructor() {
     this.getMarkdownFiles = () => [];
     this.read = async () => '';
     this.create = async () => null;
+    this.createFolder = async () => null;
   }
 }
 
@@ -113,6 +115,14 @@ export interface TFile {
   path: string;
 }
 
+export class TFolder {
+  path: string;
+
+  constructor(path: string = '') {
+    this.path = path;
+  }
+}
+
 // Plugin class (used by main.ts)
 export class Plugin {
   app: App;
diff --git a/main.js b/main.js
index 957ad28..f161a24 100644
--- a/main.js
+++ b/main.js
@@ -8968,6 +8968,30 @@ var ToolExecutor = class {
     const file = this.getFile(path);
     await this.vault.modify(file, content);
   }
+  getParentFolderPath(path) {
+    const parts = path.split("/").filter((part) => part.length > 0);
+    parts.pop();
+    return parts.join("/");
+  }
+  async ensureFolderExists(folderPath) {
+    const normalizedFolder = folderPath.replace(/\/$/, "").trim();
+    if (!normalizedFolder) {
+      return;
+    }
+    const parts = normalizedFolder.split("/").filter((part) => part.length > 0);
+    let currentPath = "";
+    for (const part of parts) {
+      currentPath = currentPath ? `${currentPath}/${part}` : part;
+      const existing = this.vault.getAbstractFileByPath(currentPath);
+      if (existing) {
+        if (!(existing instanceof import_obsidian.TFolder)) {
+          throw new Error(`Cannot create folder ${currentPath}: a file already exists at that path`);
+        }
+        continue;
+      }
+      await this.vault.createFolder(currentPath);
+    }
+  }
   async handleToolCall(toolCall) {
     const startTime = Date.now();
     const toolName = toolCall.function?.name ?? "unknown";
@@ -9062,6 +9086,7 @@ var ToolExecutor = class {
       throw new Error("Invalid file path detected");
     }
     try {
+      await this.ensureFolderExists(this.getParentFolderPath(path));
       await this.vault.create(path, content);
       return { success: true, message: "Note created successfully" };
     } catch (error) {
@@ -9285,6 +9310,7 @@ ${lines.join("\n")}
       throw new Error("Invalid file path detected");
     }
     const file = this.getFile(oldPath);
+    await this.ensureFolderExists(this.getParentFolderPath(newPath));
     await this.vault.rename(file, newPath);
     return { success: true, message: `Note renamed from ${oldPath} to ${newPath}` };
   }
@@ -9307,6 +9333,7 @@ ${lines.join("\n")}
     const file = this.getFile(path);
     const fileName = file.name;
     const newPath = normalizedFolder ? `${normalizedFolder}/${fileName}` : fileName;
+    await this.ensureFolderExists(normalizedFolder);
     await this.vault.rename(file, newPath);
     return { success: true, message: `Note moved to ${newPath}` };
   }
@@ -11022,6 +11049,7 @@ var ChatView = class extends import_obsidian5.ItemView {
       newSettings.agentModel ?? newSettings.model,
       { cacheConfig: newSettings.cacheConfig }
     );
+    this.conversationStateManager.setSystemPrompt(getSystemPromptForMode(this.currentAgentMode));
     void this.initializeClientCaches().catch(() => {
       new import_obsidian5.Notice(
         "Semantic cache unavailable: could not connect to ChromaDB. Check the ChromaDB URL in settings."
@@ -11171,7 +11199,7 @@ var ChatView = class extends import_obsidian5.ItemView {
         }
       }
       this.modeSelectorEl.addEventListener("change", () => {
-        this.currentAgentMode = this.modeSelectorEl.value;
+        this.setAgentMode(this.modeSelectorEl.value);
       });
     } else {
       newChatContainer.appendChild(this.modeSelectorEl);
@@ -11368,6 +11396,10 @@ var ChatView = class extends import_obsidian5.ItemView {
       this.modeSelectorEl.value = mode;
     }
     this.conversationStateManager.setSystemPrompt(getSystemPromptForMode(mode));
+    const activeId = this.chatHistoryManager?.getActiveSessionId();
+    if (activeId) {
+      this.chatHistoryManager?.updateSession(activeId, { agentMode: mode });
+    }
   }
   clearConversation() {
     this.saveCurrentSession();
@@ -11409,14 +11441,28 @@ var ChatView = class extends import_obsidian5.ItemView {
     const activeId = this.chatHistoryManager.getActiveSessionId();
     if (!activeId) return;
     const nonStreamingMessages = this.messages.filter((msg) => !msg.isStreaming);
-    this.chatHistoryManager.updateSessionMessages(activeId, nonStreamingMessages);
+    this.chatHistoryManager.updateSession(activeId, {
+      messages: nonStreamingMessages,
+      agentMode: this.currentAgentMode,
+      title: this.deriveSessionTitle(nonStreamingMessages)
+    });
   }
   syncMessagesToSession() {
     if (!this.chatHistoryManager) return;
     const activeId = this.chatHistoryManager.getActiveSessionId();
     if (!activeId) return;
     const nonStreamingMessages = this.messages.filter((msg) => !msg.isStreaming);
-    this.chatHistoryManager.updateSessionMessages(activeId, nonStreamingMessages);
+    this.chatHistoryManager.updateSession(activeId, {
+      messages: nonStreamingMessages,
+      agentMode: this.currentAgentMode,
+      title: this.deriveSessionTitle(nonStreamingMessages)
+    });
+  }
+  deriveSessionTitle(messages) {
+    const firstUser = messages.find((m) => m.role === "user");
+    const text = firstUser?.content.trim() ?? "";
+    if (!text) return "New Chat";
+    return text.length > 40 ? text.slice(0, 40) + "\u2026" : text;
   }
   populateHistoryDropdown() {
     if (!this.historySelectEl) return;
@@ -11785,7 +11831,7 @@ var ChatView = class extends import_obsidian5.ItemView {
     if (writePreviews.length > 0 && modeRequiresPreview(this.currentAgentMode)) {
       this.pendingActions = writePreviews;
       this.pendingReadResults = readResults;
-      this.pendingFollowUpContext = { messages, tools, assistantMessageId };
+      this.pendingFollowUpContext = { messages, tools, assistantMessageId, allToolCalls: toolCalls, assistantText: fullResponse };
       this.updateMessageById(assistantMessageId, {
         content: `${fullResponse}
 
@@ -11800,17 +11846,21 @@ ${writePreviews.map((a) => `- ${a.description}`).join("\n")}`,
     }
     let writeResults = [];
     if (writePreviews.length > 0 && !modeRequiresPreview(this.currentAgentMode)) {
-      writeResults = (await Promise.all(
+      writeResults = await Promise.all(
         writePreviews.map(async (action) => {
           try {
             const toolResult = await this.toolExecutor.handleToolCall(action.toolCall);
             return { ...toolResult, id: action.toolCall.id };
           } catch (error) {
             ErrorHandler.handleError(error, "ChatView.processToolCalls");
-            return null;
+            return {
+              success: false,
+              message: error instanceof Error ? error.message : String(error),
+              id: action.toolCall.id
+            };
           }
         })
-      )).filter((result) => result !== null);
+      );
     }
     const allResults = [...readResults, ...writeResults];
     const followUpMessages = allResults.map((result) => ({
@@ -11868,19 +11918,24 @@ ${writePreviews.map((a) => `- ${a.description}`).join("\n")}`,
     if (this.pendingActions.length === 0 || !this.pendingFollowUpContext) {
       return;
     }
-    const { messages, tools, assistantMessageId } = this.pendingFollowUpContext;
-    const writeResults = (await Promise.all(
+    const { messages, tools, assistantMessageId, allToolCalls, assistantText } = this.pendingFollowUpContext;
+    const writeResults = await Promise.all(
       this.pendingActions.map(async (action) => {
         try {
           const toolResult = await this.toolExecutor.handleToolCall(action.toolCall);
           return { ...toolResult, id: action.toolCall.id };
         } catch (error) {
           ErrorHandler.handleError(error, "ChatView.applyPendingActions");
-          return null;
+          return {
+            success: false,
+            message: error instanceof Error ? error.message : String(error),
+            id: action.toolCall.id
+          };
         }
       })
-    )).filter((result) => result !== null);
+    );
     const allResults = [...this.pendingReadResults, ...writeResults];
+    const failedWrites = writeResults.filter((result) => !result.success);
     const followUpMessages = allResults.map((result) => ({
       role: "tool",
       content: JSON.stringify(result),
@@ -11888,8 +11943,8 @@ ${writePreviews.map((a) => `- ${a.description}`).join("\n")}`,
     }));
     const followUp = {
       role: "assistant",
-      content: "I have processed your request using the following tools. Here are the results:",
-      tool_calls: this.pendingActions.map((a) => a.toolCall)
+      content: assistantText,
+      tool_calls: allToolCalls
     };
     if (followUpMessages.length > 0) {
       const finalMessages = [...messages, followUp, ...followUpMessages];
@@ -11920,14 +11975,16 @@ ${writePreviews.map((a) => `- ${a.description}`).join("\n")}`,
         );
       } else {
         this.updateMessageById(assistantMessageId, {
-          content: followUpContent || "Actions applied successfully.",
+          content: followUpContent || (failedWrites.length > 0 ? `Some actions failed:
+${failedWrites.map((r) => `- ${r.message}`).join("\n")}` : "Actions applied successfully."),
           isStreaming: false,
           isThinking: false
         });
       }
     } else {
       this.updateMessageById(assistantMessageId, {
-        content: "Actions applied successfully.",
+        content: failedWrites.length > 0 ? `Actions failed:
+${failedWrites.map((r) => `- ${r.message}`).join("\n")}` : "Actions applied successfully.",
         isStreaming: false,
         isThinking: false
       });
@@ -12477,7 +12534,7 @@ ${actualMessage}` : actualMessage;
     return this.isAgenticMode(this.currentAgentMode) ? this.agentOllamaClient : this.ollamaClient;
   }
   isAgenticMode(mode) {
-    return mode === "edit" || mode === "organize" || mode === "workflow";
+    return mode === "edit" || mode === "organize" || mode === "research" || mode === "workflow";
   }
   renderLogEntry(entry, container) {
     const row = container.createEl("div", { cls: "ollama-log-row" });
diff --git a/src/chat-view.ts b/src/chat-view.ts
index ef0f990..daec1fc 100755
--- a/src/chat-view.ts
+++ b/src/chat-view.ts
@@ -140,6 +140,7 @@ export class ChatView extends ItemView {
       newSettings.agentModel ?? newSettings.model,
       { cacheConfig: newSettings.cacheConfig }
     );
+    this.conversationStateManager.setSystemPrompt(getSystemPromptForMode(this.currentAgentMode));
     void this.initializeClientCaches().catch(() => {
       new Notice(
         'Semantic cache unavailable: could not connect to ChromaDB. Check the ChromaDB URL in settings.'
@@ -318,7 +319,7 @@ export class ChatView extends ItemView {
         }
       }
       this.modeSelectorEl.addEventListener('change', () => {
-        this.currentAgentMode = this.modeSelectorEl!.value as AgentMode;
+        this.setAgentMode(this.modeSelectorEl!.value as AgentMode);
       });
     } else {
       newChatContainer.appendChild(this.modeSelectorEl);
@@ -561,6 +562,10 @@ export class ChatView extends ItemView {
       this.modeSelectorEl.value = mode;
     }
     this.conversationStateManager.setSystemPrompt(getSystemPromptForMode(mode));
+    const activeId = this.chatHistoryManager?.getActiveSessionId();
+    if (activeId) {
+      this.chatHistoryManager?.updateSession(activeId, { agentMode: mode });
+    }
   }
 
   clearConversation(): void {
@@ -610,7 +615,11 @@ export class ChatView extends ItemView {
     const activeId = this.chatHistoryManager.getActiveSessionId();
     if (!activeId) return;
     const nonStreamingMessages = this.messages.filter((msg) => !msg.isStreaming);
-    this.chatHistoryManager.updateSessionMessages(activeId, nonStreamingMessages);
+    this.chatHistoryManager.updateSession(activeId, {
+      messages: nonStreamingMessages,
+      agentMode: this.currentAgentMode,
+      title: this.deriveSessionTitle(nonStreamingMessages),
+    });
   }
 
   private syncMessagesToSession(): void {
@@ -618,7 +627,18 @@ export class ChatView extends ItemView {
     const activeId = this.chatHistoryManager.getActiveSessionId();
     if (!activeId) return;
     const nonStreamingMessages = this.messages.filter((msg) => !msg.isStreaming);
-    this.chatHistoryManager.updateSessionMessages(activeId, nonStreamingMessages);
+    this.chatHistoryManager.updateSession(activeId, {
+      messages: nonStreamingMessages,
+      agentMode: this.currentAgentMode,
+      title: this.deriveSessionTitle(nonStreamingMessages),
+    });
+  }
+
+  private deriveSessionTitle(messages: ChatMessage[]): string {
+    const firstUser = messages.find((m) => m.role === 'user');
+    const text = firstUser?.content.trim() ?? '';
+    if (!text) return 'New Chat';
+    return text.length > 40 ? text.slice(0, 40) + '…' : text;
   }
 
   private populateHistoryDropdown(): void {
@@ -1053,11 +1073,15 @@ export class ChatView extends ItemView {
               return { ...toolResult, id: action.toolCall.id };
             } catch (error) {
               ErrorHandler.handleError(error, 'ChatView.processToolCalls');
-              return null;
+              return {
+                success: false,
+                message: error instanceof Error ? error.message : String(error),
+                id: action.toolCall.id,
+              };
             }
           })
         )
-      ).filter((result): result is NonNullable<typeof result> => result !== null);
+      );
     }
 
     // No write tools (or they were already executed) — proceed with follow-up
@@ -1137,13 +1161,18 @@ export class ChatView extends ItemView {
             return { ...toolResult, id: action.toolCall.id };
           } catch (error) {
             ErrorHandler.handleError(error, 'ChatView.applyPendingActions');
-            return null;
+            return {
+              success: false,
+              message: error instanceof Error ? error.message : String(error),
+              id: action.toolCall.id,
+            };
           }
         })
       )
-    ).filter((result): result is NonNullable<typeof result> => result !== null);
+    );
 
     const allResults = [...this.pendingReadResults, ...writeResults];
+    const failedWrites = writeResults.filter((result) => !result.success);
 
     const followUpMessages: OllamaMessage[] = allResults.map((result) => ({
       role: 'tool',
@@ -1191,14 +1220,21 @@ export class ChatView extends ItemView {
         );
       } else {
         this.updateMessageById(assistantMessageId, {
-          content: followUpContent || 'Actions applied successfully.',
+          content:
+            followUpContent ||
+            (failedWrites.length > 0
+              ? `Some actions failed:\n${failedWrites.map((r) => `- ${r.message}`).join('\n')}`
+              : 'Actions applied successfully.'),
           isStreaming: false,
           isThinking: false,
         });
       }
     } else {
       this.updateMessageById(assistantMessageId, {
-        content: 'Actions applied successfully.',
+        content:
+          failedWrites.length > 0
+            ? `Actions failed:\n${failedWrites.map((r) => `- ${r.message}`).join('\n')}`
+            : 'Actions applied successfully.',
         isStreaming: false,
         isThinking: false,
       });
diff --git a/src/tool-executor.ts b/src/tool-executor.ts
index 344c9d4..eafccca 100644
--- a/src/tool-executor.ts
+++ b/src/tool-executor.ts
@@ -1,6 +1,6 @@
 // src/tool-executor.ts
 
-import { Vault, App, TFile } from 'obsidian';
+import { Vault, App, TFile, TFolder } from 'obsidian';
 import type { ToolCall, ToolResult, VaultIndexEntry } from './types';
 import { safeParseJson } from './utils';
 import { TelemetryManager } from './tool-telemetry';
@@ -97,6 +97,33 @@ export class ToolExecutor {
     await this.vault.modify(file, content);
   }
 
+  private getParentFolderPath(path: string): string {
+    const parts = path.split('/').filter((part) => part.length > 0);
+    parts.pop();
+    return parts.join('/');
+  }
+
+  private async ensureFolderExists(folderPath: string): Promise<void> {
+    const normalizedFolder = folderPath.replace(/\/$/, '').trim();
+    if (!normalizedFolder) {
+      return;
+    }
+
+    const parts = normalizedFolder.split('/').filter((part) => part.length > 0);
+    let currentPath = '';
+    for (const part of parts) {
+      currentPath = currentPath ? `${currentPath}/${part}` : part;
+      const existing = this.vault.getAbstractFileByPath(currentPath);
+      if (existing) {
+        if (!(existing instanceof TFolder)) {
+          throw new Error(`Cannot create folder ${currentPath}: a file already exists at that path`);
+        }
+        continue;
+      }
+      await this.vault.createFolder(currentPath);
+    }
+  }
+
   async handleToolCall(toolCall: ToolCall): Promise<ToolResult> {
     const startTime = Date.now();
     const toolName = toolCall.function?.name ?? 'unknown';
@@ -203,6 +230,7 @@ export class ToolExecutor {
     }
 
     try {
+      await this.ensureFolderExists(this.getParentFolderPath(path));
       await this.vault.create(path, content);
       return { success: true, message: 'Note created successfully' };
     } catch (error) {
@@ -494,6 +522,7 @@ export class ToolExecutor {
     }
 
     const file = this.getFile(oldPath);
+    await this.ensureFolderExists(this.getParentFolderPath(newPath));
     await this.vault.rename(file, newPath);
     return { success: true, message: `Note renamed from ${oldPath} to ${newPath}` };
   }
@@ -522,6 +551,7 @@ export class ToolExecutor {
     const fileName = file.name;
     const newPath = normalizedFolder ? `${normalizedFolder}/${fileName}` : fileName;
 
+    await this.ensureFolderExists(normalizedFolder);
     await this.vault.rename(file, newPath);
     return { success: true, message: `Note moved to ${newPath}` };
   }
diff --git a/tests/chat-view.test.ts b/tests/chat-view.test.ts
index 73efa38..c3d22fe 100755
--- a/tests/chat-view.test.ts
+++ b/tests/chat-view.test.ts
@@ -234,6 +234,18 @@ describe('ChatView', () => {
       const messages = view.contentEl.querySelectorAll('.ollama-message');
       expect(messages.length).toBe(1);
     });
+
+    it('should update the system prompt when mode selector changes', async () => {
+      await view.render();
+      const selector = view.contentEl.querySelector('.ollama-mode-selector') as HTMLSelectElement;
+      selector.appendChild(new Option('Edit', 'edit'));
+      selector.value = 'edit';
+      selector.dispatchEvent(new Event('change'));
+
+      const systemPrompt = view['conversationStateManager'].getLongTermContext()[0].content;
+      expect(view.getAgentMode()).toBe('edit');
+      expect(systemPrompt).toContain('helps edit and manage notes');
+    });
   });
 
   describe('handleUserInput', () => {
@@ -600,6 +612,8 @@ describe('ChatView', () => {
         messages: [],
         tools: [],
         assistantMessageId,
+        allToolCalls: [],
+        assistantText: 'test',
       };
 
       const followUpSpy = jest
@@ -653,6 +667,8 @@ describe('ChatView', () => {
         messages: [],
         tools: [],
         assistantMessageId,
+        allToolCalls: [],
+        assistantText: 'Proposed actions...',
       };
 
       view.cancelPendingActions();
diff --git a/tests/tool-executor.test.ts b/tests/tool-executor.test.ts
index 482e1a3..142f216 100755
--- a/tests/tool-executor.test.ts
+++ b/tests/tool-executor.test.ts
@@ -1,5 +1,5 @@
 import { ToolExecutor } from '../src/tool-executor';
-import { TFile } from 'obsidian';
+import { TFile, TFolder } from 'obsidian';
 import { ToolCall, ToolResult } from '../src/types';
 import { ErrorHandler } from '../src/error-handler';
 import { TelemetryManager } from '../src/tool-telemetry';
@@ -7,6 +7,7 @@ import { TelemetryManager } from '../src/tool-telemetry';
 // Mock Obsidian types
 interface MockVault {
   create: (path: string, content: string) => Promise<any>;
+  createFolder: (path: string) => Promise<any>;
   getAbstractFileByPath: (path: string) => any;
   cachedRead: (file: any) => Promise<string>;
   getMarkdownFiles: () => any[];
@@ -32,6 +33,7 @@ jest.mock('obsidian', () => {
     App: jest.fn(),
     Notice: jest.fn(),
     TFile,
+    TFolder: class TFolder {},
   };
 });
 
@@ -50,6 +52,7 @@ describe('ToolExecutor', () => {
   beforeEach(() => {
     mockVault = {
       create: jest.fn().mockResolvedValue(null),
+      createFolder: jest.fn().mockResolvedValue(null),
       getAbstractFileByPath: jest.fn(),
       cachedRead: jest.fn().mockResolvedValue(''),
       getMarkdownFiles: jest.fn().mockReturnValue([]),
@@ -103,6 +106,7 @@ describe('ToolExecutor', () => {
       });
 
       it('should successfully create a file in a subdirectory', async () => {
+        mockVault.getAbstractFileByPath = jest.fn().mockReturnValue(null);
         const call: ToolCall = {
           id: 'call_3',
           type: 'function',
@@ -116,12 +120,32 @@ describe('ToolExecutor', () => {
         };
         const result = await executor.handleToolCall(call);
         expect(result).toEqual({ success: true, message: 'Note created successfully' });
+        expect(mockVault.createFolder).toHaveBeenCalledWith('subdirectory');
         expect(mockVault.create).toHaveBeenCalledWith(
           'subdirectory/test-file.md',
           'Subdir content'
         );
       });
 
+      it('should not recreate existing parent folders', async () => {
+        mockVault.getAbstractFileByPath = jest.fn().mockReturnValue(new TFolder());
+        const call: ToolCall = {
+          id: 'call_existing_folder',
+          type: 'function',
+          function: {
+            name: 'create_file',
+            arguments: JSON.stringify({
+              path: 'existing/test-file.md',
+              content: 'Subdir content',
+            }),
+          },
+        };
+        const result = await executor.handleToolCall(call);
+        expect(result).toEqual({ success: true, message: 'Note created successfully' });
+        expect(mockVault.createFolder).not.toHaveBeenCalled();
+        expect(mockVault.create).toHaveBeenCalledWith('existing/test-file.md', 'Subdir content');
+      });
+
       it('should handle multiple slashes gracefully by normalizing path', async () => {
         const call: ToolCall = {
           id: 'call_4',
@@ -1170,7 +1194,9 @@ describe('ToolExecutor', () => {
           }
         }
         const file = new MockTFile('Projects/old.md');
-        mockVault.getAbstractFileByPath = jest.fn().mockReturnValue(file);
+        mockVault.getAbstractFileByPath = jest
+          .fn()
+          .mockImplementation((path: string) => (path === 'Projects/old.md' ? file : null));
 
         const call: ToolCall = {
           id: 'call_mn1',
@@ -1185,6 +1211,7 @@ describe('ToolExecutor', () => {
         };
         const result = await executor.handleToolCall(call);
         expect(result.success).toBe(true);
+        expect(mockVault.createFolder).toHaveBeenCalledWith('Archive');
         expect(mockVault.rename).toHaveBeenCalledWith(file, 'Archive/old.md');
       });
     });