diff --git a/src/browser/components/DirectoryPickerModal.tsx b/src/browser/components/DirectoryPickerModal.tsx
index 3f4c5e00eb..f830bac778 100644
--- a/src/browser/components/DirectoryPickerModal.tsx
+++ b/src/browser/components/DirectoryPickerModal.tsx
@@ -1,4 +1,4 @@
-import React, { useCallback, useEffect, useState } from "react";
+import React, { useCallback, useEffect, useRef, useState } from "react";
 import {
   Dialog,
   DialogContent,
@@ -8,9 +8,13 @@ import {
   DialogFooter,
 } from "@/browser/components/ui/dialog";
 import { Button } from "@/browser/components/ui/button";
+import { Input } from "@/browser/components/ui/input";
 import type { FileTreeNode } from "@/common/utils/git/numstatParser";
 import { DirectoryTree } from "./DirectoryTree";
 import { useAPI } from "@/browser/contexts/API";
+import { formatKeybind, isMac } from "@/browser/utils/ui/keybinds";
+
+const OPEN_KEYBIND = { key: "o", ctrl: true };
 
 interface DirectoryPickerModalProps {
   isOpen: boolean;
@@ -29,6 +33,9 @@ export const DirectoryPickerModal: React.FC<DirectoryPickerModalProps> = ({
   const [root, setRoot] = useState<FileTreeNode | null>(null);
   const [isLoading, setIsLoading] = useState(false);
   const [error, setError] = useState<string | null>(null);
+  const [pathInput, setPathInput] = useState(initialPath || "");
+  const [selectedIndex, setSelectedIndex] = useState(0);
+  const treeRef = useRef<HTMLDivElement>(null);
 
   const loadDirectory = useCallback(
     async (path: string) => {
@@ -50,6 +57,8 @@ export const DirectoryPickerModal: React.FC<DirectoryPickerModalProps> = ({
         }
 
         setRoot(result.data);
+        setPathInput(result.data.path);
+        setSelectedIndex(0);
       } catch (err) {
         const message = err instanceof Error ? err.message : String(err);
         setError(`Failed to load directory: ${message}`);
@@ -96,36 +105,77 @@ export const DirectoryPickerModal: React.FC<DirectoryPickerModalProps> = ({
     [isLoading, onClose]
   );
 
+  const handlePathInputKeyDown = useCallback(
+    (e: React.KeyboardEvent<HTMLInputElement>) => {
+      if (e.key === "Enter") {
+        e.preventDefault();
+        void loadDirectory(pathInput);
+      } else if (e.key === "ArrowDown") {
+        e.preventDefault();
+        // Focus the tree and start navigation
+        const treeContainer = treeRef.current?.querySelector("[tabindex]");
+        if (treeContainer instanceof HTMLElement) {
+          treeContainer.focus();
+        }
+      } else if ((e.ctrlKey || e.metaKey) && e.key === "o") {
+        e.preventDefault();
+        if (!isLoading && root) {
+          handleConfirm();
+        }
+      }
+    },
+    [pathInput, loadDirectory, handleConfirm, isLoading, root]
+  );
+
   const entries =
     root?.children
       .filter((child) => child.isDirectory)
       .map((child) => ({ name: child.name, path: child.path })) ?? [];
 
+  const shortcutLabel = isMac() ? "⌘O" : formatKeybind(OPEN_KEYBIND);
+
   return (
     <Dialog open={isOpen} onOpenChange={handleOpenChange}>
       <DialogContent showCloseButton={false}>
         <DialogHeader>
           <DialogTitle>Select Project Directory</DialogTitle>
-          <DialogDescription>
-            {root ? root.path : "Select a directory to use as your project root"}
-          </DialogDescription>
+          <DialogDescription>Navigate to select a directory for your project</DialogDescription>
         </DialogHeader>
+        <div className="mb-3">
+          <Input
+            value={pathInput}
+            onChange={(e) => setPathInput(e.target.value)}
+            onKeyDown={handlePathInputKeyDown}
+            placeholder="Enter path..."
+            className="bg-modal-bg border-border-medium h-9 font-mono text-sm"
+          />
+        </div>
         {error && <div className="text-error mb-3 text-xs">{error}</div>}
-        <div className="bg-modal-bg border-border-medium mb-4 h-80 overflow-hidden rounded border">
+        <div
+          ref={treeRef}
+          className="bg-modal-bg border-border-medium mb-4 h-80 overflow-hidden rounded border"
+        >
           <DirectoryTree
             currentPath={root ? root.path : null}
             entries={entries}
             isLoading={isLoading}
             onNavigateTo={handleNavigateTo}
             onNavigateParent={handleNavigateParent}
+            onConfirm={handleConfirm}
+            selectedIndex={selectedIndex}
+            onSelectedIndexChange={setSelectedIndex}
           />
         </div>
         <DialogFooter>
           <Button variant="secondary" onClick={onClose} disabled={isLoading}>
             Cancel
           </Button>
-          <Button onClick={() => void handleConfirm()} disabled={isLoading || !root}>
-            Select
+          <Button
+            onClick={() => void handleConfirm()}
+            disabled={isLoading || !root}
+            title={`Open folder (${shortcutLabel})`}
+          >
+            Open ({shortcutLabel})
           </Button>
         </DialogFooter>
       </DialogContent>
diff --git a/src/browser/components/DirectoryTree.tsx b/src/browser/components/DirectoryTree.tsx
index 5f18cffa49..34c970e3a6 100644
--- a/src/browser/components/DirectoryTree.tsx
+++ b/src/browser/components/DirectoryTree.tsx
@@ -1,4 +1,4 @@
-import React from "react";
+import React, { useCallback, useEffect, useRef, useState } from "react";
 import { Folder, FolderUp } from "lucide-react";
 
 interface DirectoryTreeEntry {
@@ -12,29 +12,151 @@ interface DirectoryTreeProps {
   isLoading?: boolean;
   onNavigateTo: (path: string) => void;
   onNavigateParent: () => void;
+  onConfirm: () => void;
+  selectedIndex: number;
+  onSelectedIndexChange: (index: number) => void;
 }
 
 export const DirectoryTree: React.FC<DirectoryTreeProps> = (props) => {
-  const { currentPath, entries, isLoading = false, onNavigateTo, onNavigateParent } = props;
+  const {
+    currentPath,
+    entries,
+    isLoading = false,
+    onNavigateTo,
+    onNavigateParent,
+    onConfirm,
+    selectedIndex,
+    onSelectedIndexChange,
+  } = props;
 
   const hasEntries = entries.length > 0;
-  const containerRef = React.useRef<HTMLDivElement | null>(null);
+  const containerRef = useRef<HTMLDivElement | null>(null);
+  const selectedItemRef = useRef<HTMLLIElement | null>(null);
+  const [typeAheadBuffer, setTypeAheadBuffer] = useState("");
+  const typeAheadTimeoutRef = useRef<ReturnType<typeof setTimeout> | null>(null);
 
-  React.useEffect(() => {
+  // Total navigable items: parent (..) + entries
+  const totalItems = (currentPath ? 1 : 0) + entries.length;
+
+  // Scroll container to top when path changes
+  useEffect(() => {
     if (containerRef.current) {
       containerRef.current.scrollTop = 0;
     }
   }, [currentPath]);
 
+  // Scroll selected item into view
+  useEffect(() => {
+    if (selectedItemRef.current) {
+      selectedItemRef.current.scrollIntoView({ block: "nearest" });
+    }
+  }, [selectedIndex]);
+
+  // Clear type-ahead buffer after 500ms of inactivity
+  const resetTypeAhead = useCallback(() => {
+    if (typeAheadTimeoutRef.current) {
+      clearTimeout(typeAheadTimeoutRef.current);
+    }
+    typeAheadTimeoutRef.current = setTimeout(() => {
+      setTypeAheadBuffer("");
+    }, 500);
+  }, []);
+
+  // Handle keyboard navigation
+  const handleKeyDown = useCallback(
+    (e: React.KeyboardEvent) => {
+      // Type-ahead search for printable characters
+      if (e.key.length === 1 && !e.ctrlKey && !e.metaKey && !e.altKey) {
+        const newBuffer = typeAheadBuffer + e.key.toLowerCase();
+        setTypeAheadBuffer(newBuffer);
+        resetTypeAhead();
+
+        // Find first entry matching the buffer
+        const matchIndex = entries.findIndex((entry) =>
+          entry.name.toLowerCase().startsWith(newBuffer)
+        );
+        if (matchIndex !== -1) {
+          // Offset by 1 if parent exists (index 0 is parent)
+          const actualIndex = currentPath ? matchIndex + 1 : matchIndex;
+          onSelectedIndexChange(actualIndex);
+        }
+        e.preventDefault();
+        return;
+      }
+
+      switch (e.key) {
+        case "ArrowUp":
+          e.preventDefault();
+          if (totalItems > 0) {
+            onSelectedIndexChange(selectedIndex <= 0 ? totalItems - 1 : selectedIndex - 1);
+          }
+          break;
+        case "ArrowDown":
+          e.preventDefault();
+          if (totalItems > 0) {
+            onSelectedIndexChange(selectedIndex >= totalItems - 1 ? 0 : selectedIndex + 1);
+          }
+          break;
+        case "Enter":
+          e.preventDefault();
+          if (selectedIndex === 0 && currentPath) {
+            // Parent directory selected
+            onNavigateParent();
+          } else if (entries.length > 0) {
+            // Navigate into selected directory
+            const entryIndex = currentPath ? selectedIndex - 1 : selectedIndex;
+            if (entryIndex >= 0 && entryIndex < entries.length) {
+              onNavigateTo(entries[entryIndex].path);
+            }
+          }
+          break;
+        case "Backspace":
+          e.preventDefault();
+          if (currentPath) {
+            onNavigateParent();
+          }
+          break;
+        case "o":
+          if (e.ctrlKey || e.metaKey) {
+            e.preventDefault();
+            onConfirm();
+          }
+          break;
+      }
+    },
+    [
+      selectedIndex,
+      totalItems,
+      currentPath,
+      entries,
+      onSelectedIndexChange,
+      onNavigateTo,
+      onNavigateParent,
+      onConfirm,
+      typeAheadBuffer,
+      resetTypeAhead,
+    ]
+  );
+
+  const isSelected = (index: number) => selectedIndex === index;
+
   return (
-    <div ref={containerRef} className="h-full overflow-y-auto p-2 text-sm">
+    <div
+      ref={containerRef}
+      className="h-full overflow-y-auto p-2 text-sm outline-none"
+      tabIndex={0}
+      onKeyDown={handleKeyDown}
+    >
       {isLoading && !currentPath ? (
         <div className="text-muted py-4 text-center">Loading directories...</div>
       ) : (
         <ul className="m-0 list-none p-0">
           {currentPath && (
             <li
-              className="text-muted flex cursor-pointer items-center gap-2 rounded px-2 py-1.5 hover:bg-white/5"
+              ref={isSelected(0) ? selectedItemRef : null}
+              className={`text-muted flex cursor-pointer items-center gap-2 rounded px-2 py-1.5 ${
+                isSelected(0) ? "bg-white/10" : "hover:bg-white/5"
+              }`}
               onClick={onNavigateParent}
             >
               <FolderUp size={16} className="text-muted shrink-0" />
@@ -46,16 +168,22 @@ export const DirectoryTree: React.FC<DirectoryTreeProps> = (props) => {
             <li className="text-muted px-2 py-1.5">No subdirectories found</li>
           ) : null}
 
-          {entries.map((entry) => (
-            <li
-              key={entry.path}
-              className="flex cursor-pointer items-center gap-2 rounded px-2 py-1.5 hover:bg-white/5"
-              onClick={() => onNavigateTo(entry.path)}
-            >
-              <Folder size={16} className="shrink-0 text-yellow-500/80" />
-              <span className="truncate">{entry.name}</span>
-            </li>
-          ))}
+          {entries.map((entry, idx) => {
+            const actualIndex = currentPath ? idx + 1 : idx;
+            return (
+              <li
+                key={entry.path}
+                ref={isSelected(actualIndex) ? selectedItemRef : null}
+                className={`flex cursor-pointer items-center gap-2 rounded px-2 py-1.5 ${
+                  isSelected(actualIndex) ? "bg-white/10" : "hover:bg-white/5"
+                }`}
+                onClick={() => onNavigateTo(entry.path)}
+              >
+                <Folder size={16} className="shrink-0 text-yellow-500/80" />
+                <span className="truncate">{entry.name}</span>
+              </li>
+            );
+          })}
 
           {isLoading && currentPath && !hasEntries ? (
             <li className="text-muted px-2 py-1.5">Loading directories...</li>