diff --git a/apps/studio/components/grid/components/header/Header.tsx b/apps/studio/components/grid/components/header/Header.tsx
index 45c69218f9981..1b414f79ff1eb 100644
--- a/apps/studio/components/grid/components/header/Header.tsx
+++ b/apps/studio/components/grid/components/header/Header.tsx
@@ -7,7 +7,6 @@ import { toast } from 'sonner'
 
 import { useDispatch, useTrackedState } from 'components/grid/store/Store'
 import type { Filter, Sort, SupaTable } from 'components/grid/types'
-import { Markdown } from 'components/interfaces/Markdown'
 import { formatTableRowsToSQL } from 'components/interfaces/TableGridEditor/TableEntity.utils'
 import { useProjectContext } from 'components/layouts/ProjectLayout/ProjectContext'
 import { ButtonTooltip } from 'components/ui/ButtonTooltip'
@@ -31,12 +30,22 @@ import {
 } from 'ui'
 import FilterPopover from './filter/FilterPopover'
 import { SortPopover } from './sort'
+import Link from 'next/link'
 
 // [Joshen] CSV exports require this guard as a fail-safe if the table is
 // just too large for a browser to keep all the rows in memory before
 // exporting. Either that or export as multiple CSV sheets with max n rows each
 export const MAX_EXPORT_ROW_COUNT = 500000
-export const MAX_EXPORT_ROW_COUNT_MESSAGE = `Sorry! We're unable to support exporting row counts larger than ${MAX_EXPORT_ROW_COUNT.toLocaleString()} at the moment. Alternatively, you may consider using [pg_dump](https://supabase.com/docs/reference/cli/supabase-db-dump) via our CLI instead.`
+export const MAX_EXPORT_ROW_COUNT_MESSAGE = (
+  <>
+    Sorry! We're unable to support exporting row counts larger than $
+    {MAX_EXPORT_ROW_COUNT.toLocaleString()} at the moment. Alternatively, you may consider using
+    <Link href="https://supabase.com/docs/reference/cli/supabase-db-dump" target="_blank">
+      pg_dump
+    </Link>{' '}
+    via our CLI instead.
+  </>
+)
 
 export type HeaderProps = {
   table: SupaTable
@@ -290,7 +299,9 @@ const RowHeader = ({ table, sorts, filters }: RowHeaderProps) => {
     setIsExporting(true)
 
     if (allRowsSelected && totalRows > MAX_EXPORT_ROW_COUNT) {
-      toast.error(<Markdown content={MAX_EXPORT_ROW_COUNT_MESSAGE} className="text-foreground" />)
+      toast.error(
+        <div className="prose text-sm text-foreground">{MAX_EXPORT_ROW_COUNT_MESSAGE}</div>
+      )
       return setIsExporting(false)
     }
 
@@ -331,7 +342,9 @@ const RowHeader = ({ table, sorts, filters }: RowHeaderProps) => {
     setIsExporting(true)
 
     if (allRowsSelected && totalRows > MAX_EXPORT_ROW_COUNT) {
-      toast.error(<Markdown content={MAX_EXPORT_ROW_COUNT_MESSAGE} className="text-foreground" />)
+      toast.error(
+        <div className="prose text-sm text-foreground">{MAX_EXPORT_ROW_COUNT_MESSAGE}</div>
+      )
       return setIsExporting(false)
     }
 
diff --git a/apps/studio/components/interfaces/Auth/Policies/PolicyTableRow/PolicyRow.tsx b/apps/studio/components/interfaces/Auth/Policies/PolicyTableRow/PolicyRow.tsx
index eb02e72693e94..c8d7abb4295db 100644
--- a/apps/studio/components/interfaces/Auth/Policies/PolicyTableRow/PolicyRow.tsx
+++ b/apps/studio/components/interfaces/Auth/Policies/PolicyTableRow/PolicyRow.tsx
@@ -118,6 +118,14 @@ const PolicyRow = ({
                       open: true,
                       sqlSnippets: [sql],
                       initialInput: `Update the policy with name "${policy.name}" in the ${policy.schema} schema on the ${policy.table} table. It should...`,
+                      suggestions: {
+                        title: `I can help you make a change to the policy "${policy.name}" in the ${policy.schema} schema on the ${policy.table} table, here are a few example prompts to get you started:`,
+                        prompts: [
+                          'Tell me how I can improve this policy...',
+                          'Duplicate this policy for another table...',
+                          'Add extra conditions to this policy...',
+                        ],
+                      },
                     })
                   }}
                 >
diff --git a/apps/studio/components/layouts/TableEditorLayout/EntityListItem.tsx b/apps/studio/components/layouts/TableEditorLayout/EntityListItem.tsx
index 6b265070ee236..57b63d892f8cd 100644
--- a/apps/studio/components/layouts/TableEditorLayout/EntityListItem.tsx
+++ b/apps/studio/components/layouts/TableEditorLayout/EntityListItem.tsx
@@ -21,7 +21,6 @@ import {
   MAX_EXPORT_ROW_COUNT_MESSAGE,
 } from 'components/grid/components/header/Header'
 import { parseSupaTable } from 'components/grid/SupabaseGrid.utils'
-import { Markdown } from 'components/interfaces/Markdown'
 import {
   formatTableRowsToSQL,
   getEntityLintDetails,
@@ -117,7 +116,7 @@ const EntityListItem: ItemRenderer<Entity, EntityListItemProps> = ({
       })
       if (isTableLike(table) && table.live_rows_estimate > MAX_EXPORT_ROW_COUNT) {
         return toast.error(
-          <Markdown content={MAX_EXPORT_ROW_COUNT_MESSAGE} className="text-foreground" />,
+          <div className="text-foreground prose text-sm">{MAX_EXPORT_ROW_COUNT_MESSAGE}</div>,
           { id: toastId }
         )
       }
@@ -171,7 +170,7 @@ const EntityListItem: ItemRenderer<Entity, EntityListItemProps> = ({
 
       if (isTableLike(table) && table.live_rows_estimate > MAX_EXPORT_ROW_COUNT) {
         return toast.error(
-          <Markdown content={MAX_EXPORT_ROW_COUNT_MESSAGE} className="text-foreground" />,
+          <div className="text-foreground prose text-sm">{MAX_EXPORT_ROW_COUNT_MESSAGE}</div>,
           { id: toastId }
         )
       }
diff --git a/apps/studio/components/ui/AIAssistantPanel/AIAssistant.tsx b/apps/studio/components/ui/AIAssistantPanel/AIAssistant.tsx
index 0d032e777c942..74c2d00d3014e 100644
--- a/apps/studio/components/ui/AIAssistantPanel/AIAssistant.tsx
+++ b/apps/studio/components/ui/AIAssistantPanel/AIAssistant.tsx
@@ -40,6 +40,10 @@ import ConfirmationModal from 'ui-patterns/Dialogs/ConfirmationModal'
 import AIOnboarding from './AIOnboarding'
 import CollapsibleCodeBlock from './CollapsibleCodeBlock'
 import { Message } from './Message'
+import { useParams } from 'common/hooks'
+import { useSearchParamsShallow } from 'common/hooks'
+import { useSqlEditorV2StateSnapshot } from 'state/sql-editor-v2'
+import { useRouter } from 'next/router'
 
 const MemoizedMessage = memo(
   ({ message, isLoading }: { message: MessageType; isLoading: boolean }) => {
@@ -71,14 +75,18 @@ export const AIAssistant = ({
   className,
   onResetConversation,
 }: AIAssistantProps) => {
+  const router = useRouter()
   const project = useSelectedProject()
   const isOptedInToAI = useOrgOptedIntoAi()
   const selectedOrganization = useSelectedOrganization()
+  const { id: entityId } = useParams()
+  const searchParams = useSearchParamsShallow()
   const includeSchemaMetadata = isOptedInToAI || !IS_PLATFORM
 
   const disablePrompts = useFlag('disableAssistantPrompts')
+  const { snippets } = useSqlEditorV2StateSnapshot()
   const { aiAssistantPanel, setAiAssistantPanel } = useAppStateSnapshot()
-  const { initialInput, sqlSnippets, suggestions } = aiAssistantPanel
+  const { open, initialInput, sqlSnippets, suggestions } = aiAssistantPanel
 
   const inputRef = useRef<HTMLTextAreaElement>(null)
   const bottomRef = useRef<HTMLDivElement>(null)
@@ -93,6 +101,10 @@ export const AIAssistant = ({
   const { data: check } = useCheckOpenAIKeyQuery()
   const isApiKeySet = IS_PLATFORM || !!check?.hasKey
 
+  const isInSQLEditor = router.pathname.includes('/sql/[id]')
+  const snippet = snippets[entityId ?? '']
+  const snippetContent = snippet?.snippet?.content?.sql
+
   const { data: subscription } = useOrgSubscriptionQuery({ orgSlug: selectedOrganization?.slug })
   const hasHipaaAddon = subscriptionHasHipaaAddon(subscription)
 
@@ -102,6 +114,9 @@ export const AIAssistant = ({
     schema: 'public',
   })
 
+  const currentTable = tables?.find((t) => t.id.toString() === entityId)
+  const currentSchema = searchParams?.get('schema') ?? 'public'
+
   const { mutate: sendEvent } = useSendEventMutation()
   const sendTelemetryEvent = (value: string) => {
     sendEvent({
@@ -126,6 +141,8 @@ export const AIAssistant = ({
       includeSchemaMetadata,
       projectRef: project?.ref,
       connectionString: project?.connectionString,
+      schema: currentSchema,
+      table: currentTable?.name,
     },
   })
 
@@ -264,6 +281,20 @@ export const AIAssistant = ({
     }
   }, [messages, isChatLoading, setAiAssistantPanel])
 
+  // Remove suggestions if sqlSnippets were removed
+  useEffect(() => {
+    if (!sqlSnippets || sqlSnippets.length === 0) {
+      setAiAssistantPanel({ suggestions: undefined })
+    }
+  }, [sqlSnippets, suggestions, setAiAssistantPanel])
+
+  useEffect(() => {
+    if (open && isInSQLEditor && !!snippetContent) {
+      setAiAssistantPanel({ sqlSnippets: [snippetContent] })
+    }
+    // eslint-disable-next-line react-hooks/exhaustive-deps
+  }, [open, isInSQLEditor, snippetContent])
+
   if (isLoadingTables) {
     return (
       <div className="h-full w-full flex justify-center items-center">
@@ -329,7 +360,7 @@ export const AIAssistant = ({
                 })}
               </div>
               {renderedMessages}
-              {last(messages)?.role === 'user' && (
+              {(last(messages)?.role === 'user' || last(messages)?.content?.length === 0) && (
                 <motion.div className="text-foreground-lighter text-sm flex gap-1.5 items-center">
                   <span>Thinking</span>
                   <div className="flex gap-1">
@@ -363,7 +394,7 @@ export const AIAssistant = ({
               </h3>
               {suggestions.title && <p>{suggestions.title}</p>}
               <div className="-mx-3 mt-4 mb-12">
-                {suggestions?.prompts.map((prompt) => (
+                {suggestions?.prompts?.map((prompt) => (
                   <Button
                     size="small"
                     icon={<FileText strokeWidth={1.5} size={16} />}
diff --git a/apps/studio/components/ui/AIAssistantPanel/SqlSnippet.tsx b/apps/studio/components/ui/AIAssistantPanel/SqlSnippet.tsx
index b2d0c88fdba4b..de91f7eab3072 100644
--- a/apps/studio/components/ui/AIAssistantPanel/SqlSnippet.tsx
+++ b/apps/studio/components/ui/AIAssistantPanel/SqlSnippet.tsx
@@ -222,7 +222,9 @@ export const SqlCard = ({
                   className="w-7 h-7"
                   icon={<Code size={14} />}
                   onClick={() => setShowCode(!showCode)}
-                  tooltip={{ content: { side: 'bottom', text: 'Show query' } }}
+                  tooltip={{
+                    content: { side: 'bottom', text: showCode ? 'Hide query' : 'Show query' },
+                  }}
                 />
 
                 {!isInSQLEditor || isInNewSnippet ? (
@@ -314,7 +316,7 @@ export const SqlCard = ({
           value={sql}
           language="sql"
           className={cn(
-            'max-w-full max-h-96 block !bg-transparent !py-3 !px-3.5 prose dark:prose-dark border-0 border-t text-foreground !rounded-none w-full',
+            'max-h-96 max-w-none block !bg-transparent !py-3 !px-3.5 prose dark:prose-dark border-0 border-t text-foreground !rounded-none w-full',
             '[&>code]:m-0 [&>code>span]:flex [&>code>span]:flex-wrap [&>code]:block [&>code>span]:text-foreground'
           )}
         />
diff --git a/apps/studio/components/ui/Forms/FormHeader.tsx b/apps/studio/components/ui/Forms/FormHeader.tsx
index a29b9caa98ad1..8e7aa44487420 100644
--- a/apps/studio/components/ui/Forms/FormHeader.tsx
+++ b/apps/studio/components/ui/Forms/FormHeader.tsx
@@ -1,6 +1,3 @@
-import ReactMarkdown from 'react-markdown'
-
-import { Markdown } from 'components/interfaces/Markdown'
 import { ReactNode } from 'react'
 import { cn } from 'ui'
 import { DocsButton } from '../DocsButton'
@@ -21,12 +18,8 @@ const FormHeader = ({
   return (
     <div className={cn(`mb-6 flex items-center justify-between gap-x-4 ${className}`)}>
       <div className="space-y-1">
-        <h3 className="text-foreground text-xl">
-          <ReactMarkdown unwrapDisallowed disallowedElements={['p']}>
-            {title}
-          </ReactMarkdown>
-        </h3>
-        {description && <Markdown content={description} className="max-w-full" />}
+        <h3 className="text-foreground text-xl prose">{title}</h3>
+        {description && <div className="prose text-sm max-w-full">{description}</div>}
       </div>
       <div className="flex items-center gap-x-2">
         {docsUrl !== undefined && <DocsButton href={docsUrl} />}
diff --git a/apps/studio/components/ui/Panel.tsx b/apps/studio/components/ui/Panel.tsx
index 1f01edc534a2c..0c8f51213ab2e 100644
--- a/apps/studio/components/ui/Panel.tsx
+++ b/apps/studio/components/ui/Panel.tsx
@@ -1,6 +1,5 @@
 import { Megaphone } from 'lucide-react'
 import { forwardRef, PropsWithChildren, ReactNode } from 'react'
-import ReactMarkdown from 'react-markdown'
 import { Badge, Button, Loading, cn } from 'ui'
 
 interface PanelProps {
@@ -109,11 +108,9 @@ const PanelNotice = forwardRef<
           {/* <span className="font-medium text-foreground text-sm">{title}</span> */}
         </div>
         {description && (
-          <span className="text-foreground-light text-sm flex flex-col gap-0">
-            <ReactMarkdown className="prose text-xs max-w-none [&_p]:mt-2 [&_p]:mb-0">
-              {description}
-            </ReactMarkdown>
-          </span>
+          <div className="text-foreground-light text-sm flex flex-col gap-0">
+            <div className="prose text-xs max-w-none [&_p]:mt-2 [&_p]:mb-0">{description}</div>
+          </div>
         )}
       </div>
 
diff --git a/apps/studio/pages/api/ai/sql/generate-v3.ts b/apps/studio/pages/api/ai/sql/generate-v3.ts
index c8bc2978790fa..1b5f3dce19815 100644
--- a/apps/studio/pages/api/ai/sql/generate-v3.ts
+++ b/apps/studio/pages/api/ai/sql/generate-v3.ts
@@ -39,7 +39,7 @@ export default async function handler(req: NextApiRequest, res: NextApiResponse)
 }
 
 async function handlePost(req: NextApiRequest, res: NextApiResponse) {
-  const { messages, projectRef, connectionString, includeSchemaMetadata } = req.body
+  const { messages, projectRef, connectionString, includeSchemaMetadata, schema, table } = req.body
 
   if (!projectRef) {
     return res.status(400).json({
@@ -109,6 +109,9 @@ async function handlePost(req: NextApiRequest, res: NextApiResponse) {
       - First look at the list of provided schemas and if needed, get more information about a schema. You will almost always need to retrieve information about the public schema before answering a question. If the question is about users, also retrieve the auth schema.
 
       Here are the existing database schema names you can retrieve: ${schemas}
+
+      ${schema !== undefined ? `The user is currently looking at the ${schema} schema.` : ''}
+      ${table !== undefined ? `The user is currently looking at the ${table} table.` : ''}
       `,
     messages,
     tools: getTools({ projectRef, connectionString, authorization, includeSchemaMetadata }),
diff --git a/apps/studio/state/app-state.ts b/apps/studio/state/app-state.ts
index 2e0230f4b0923..3ea197e9e1735 100644
--- a/apps/studio/state/app-state.ts
+++ b/apps/studio/state/app-state.ts
@@ -22,7 +22,7 @@ export type CommonDatabaseEntity = {
 
 export type SuggestionsType = {
   title: string
-  prompts: string[]
+  prompts?: string[]
 }
 
 type AiAssistantPanelType = {