diff --git a/src/vs/sessions/contrib/sessions/browser/media/sessionsTitleBarWidget.css b/src/vs/sessions/contrib/sessions/browser/media/sessionsTitleBarWidget.css
index 567da1a2e66a8..36e5bb61af053 100644
--- a/src/vs/sessions/contrib/sessions/browser/media/sessionsTitleBarWidget.css
+++ b/src/vs/sessions/contrib/sessions/browser/media/sessionsTitleBarWidget.css
@@ -11,7 +11,7 @@
 	flex-wrap: nowrap;
 	align-items: center;
 	justify-content: flex-start;
-	padding: 0 16px;
+	padding-left: 16px;
 	height: 22px;
 	border-radius: 4px;
 	-webkit-app-region: no-drag;
diff --git a/src/vs/sessions/contrib/sessions/browser/sessions.contribution.ts b/src/vs/sessions/contrib/sessions/browser/sessions.contribution.ts
index 14a681d901a8a..29d1542a84617 100644
--- a/src/vs/sessions/contrib/sessions/browser/sessions.contribution.ts
+++ b/src/vs/sessions/contrib/sessions/browser/sessions.contribution.ts
@@ -14,13 +14,18 @@ import { registerWorkbenchContribution2, WorkbenchPhase } from '../../../../work
 import { InstantiationType, registerSingleton } from '../../../../platform/instantiation/common/extensions.js';
 import { SessionsTitleBarContribution } from './sessionsTitleBarWidget.js';
 import { AgenticSessionsViewPane, SessionsViewId } from './sessionsViewPane.js';
-import { SessionsManagementService, ISessionsManagementService } from './sessionsManagementService.js';
+import { SessionsManagementService, ISessionsManagementService, IsNewChatSessionContext } from './sessionsManagementService.js';
 import { Action2, MenuId, registerAction2 } from '../../../../platform/actions/common/actions.js';
+import { ContextKeyExpr } from '../../../../platform/contextkey/common/contextkey.js';
 import { ServicesAccessor } from '../../../../platform/instantiation/common/instantiation.js';
 import { AgentSessionSection, IAgentSessionSection, isAgentSessionSection } from '../../../../workbench/contrib/chat/browser/agentSessions/agentSessionsModel.js';
 import { ChatContextKeys } from '../../../../workbench/contrib/chat/common/actions/chatContextKeys.js';
+import { IAgentSessionsService } from '../../../../workbench/contrib/chat/browser/agentSessions/agentSessionsService.js';
 import { IViewsService } from '../../../../workbench/services/views/common/viewsService.js';
+import { IsAuxiliaryWindowContext } from '../../../../workbench/common/contextkeys.js';
+import { SessionsWelcomeVisibleContext } from '../../../common/contextkeys.js';
 import { NewChatViewPane, SessionsViewId as NewChatViewId } from '../../chat/browser/newChatViewPane.js';
+import { Menus } from '../../../browser/menus.js';
 
 const agentSessionsViewIcon = registerIcon('chat-sessions-icon', Codicon.commentDiscussionSparkle, localize('agentSessionsViewIcon', 'Icon for Agent Sessions View'));
 const AGENT_SESSIONS_VIEW_TITLE = localize2('agentSessions.view.label', "Sessions");
@@ -55,6 +60,43 @@ registerWorkbenchContribution2(SessionsTitleBarContribution.ID, SessionsTitleBar
 
 registerSingleton(ISessionsManagementService, SessionsManagementService, InstantiationType.Delayed);
 
+registerAction2(class MarkSessionAsDoneAction extends Action2 {
+
+	constructor() {
+		super({
+			id: 'agentSession.markAsDone',
+			title: localize2('markAsDone', "Mark as Done"),
+			icon: Codicon.check,
+			menu: [{
+				id: Menus.CommandCenter,
+				order: 102,
+				when: ContextKeyExpr.and(
+					IsAuxiliaryWindowContext.negate(),
+					SessionsWelcomeVisibleContext.negate(),
+					IsNewChatSessionContext.negate()
+				)
+			}]
+		});
+	}
+
+	async run(accessor: ServicesAccessor): Promise<void> {
+		const sessionsManagementService = accessor.get(ISessionsManagementService);
+		const agentSessionsService = accessor.get(IAgentSessionsService);
+
+		const activeSession = sessionsManagementService.getActiveSession();
+		if (!activeSession || activeSession.isUntitled) {
+			return;
+		}
+
+		const agentSession = agentSessionsService.getSession(activeSession.resource);
+		if (!agentSession || agentSession.isArchived()) {
+			return;
+		}
+
+		agentSession.setArchived(true);
+	}
+});
+
 registerAction2(class NewSessionForRepositoryAction extends Action2 {
 
 	constructor() {