diff --git a/apps/design-system/__registry__/index.tsx b/apps/design-system/__registry__/index.tsx
index e17eb4f9c02..7e6779fef1b 100644
--- a/apps/design-system/__registry__/index.tsx
+++ b/apps/design-system/__registry__/index.tsx
@@ -1864,5 +1864,16 @@ export const Index: Record<string, any> = {
       subcategory: "undefined",
       chunks: []
     },
+    "expanding-textarea-demo": {
+      name: "expanding-textarea-demo",
+      type: "docs:example",
+      registryDependencies: undefined,
+      component: React.lazy(() => import("@/registry/default/example/expanding-textarea-demo")),
+      source: "",
+      files: ["registry/default/example/expanding-textarea-demo.tsx"],
+      category: "undefined",
+      subcategory: "undefined",
+      chunks: []
+    },
   },
 }
diff --git a/apps/design-system/app/layout.tsx b/apps/design-system/app/layout.tsx
index 7e8ff99a5a9..b0e13e68153 100644
--- a/apps/design-system/app/layout.tsx
+++ b/apps/design-system/app/layout.tsx
@@ -6,7 +6,7 @@ import { ThemeProvider } from './Providers'
 const inter = Inter({ subsets: ['latin'] })
 
 export const metadata: Metadata = {
-  title: 'Create Next App',
+  title: 'Supabase Design System',
   description: 'Generated by create next app',
 }
 
diff --git a/apps/design-system/config/docs.ts b/apps/design-system/config/docs.ts
index 4e1a7be559d..caaf8c695f5 100644
--- a/apps/design-system/config/docs.ts
+++ b/apps/design-system/config/docs.ts
@@ -374,6 +374,11 @@ export const docsConfig: DocsConfig = {
           href: '/docs/components/tree-view',
           items: [],
         },
+        {
+          title: 'Expanding Textarea',
+          href: '/docs/components/expanding-textarea',
+          items: [],
+        },
       ],
     },
   ],
diff --git a/apps/design-system/content/docs/components/expanding-textarea.mdx b/apps/design-system/content/docs/components/expanding-textarea.mdx
new file mode 100644
index 00000000000..dded1c63207
--- /dev/null
+++ b/apps/design-system/content/docs/components/expanding-textarea.mdx
@@ -0,0 +1,25 @@
+---
+title: Expanding Textarea
+description: Displays a textarea which autoexpands (or shrinks) based on its content.
+component: true
+source:
+  shadcn: true
+---
+
+<ComponentPreview name="expanding-textarea-demo" peekCode wide />
+
+## Usage
+
+```tsx
+import { ExpandingTextArea } from 'ui'
+```
+
+```tsx
+<ExpandingTextArea />
+```
+
+## Examples
+
+### Default
+
+<ComponentPreview name="expanding-textarea-demo" peekCode wide />
diff --git a/apps/design-system/next.config.mjs b/apps/design-system/next.config.mjs
index 3c67b4ac18e..2280b564d29 100644
--- a/apps/design-system/next.config.mjs
+++ b/apps/design-system/next.config.mjs
@@ -1,5 +1,7 @@
 import { withContentlayer } from 'next-contentlayer2'
 
+const BASE_PATH = process.env.NEXT_PUBLIC_BASE_PATH || '/design-system'
+
 /** @type {import('next').NextConfig} */
 const nextConfig = {
   transpilePackages: ['ui', 'common', 'shared-data', 'icons', 'tsconfig'],
@@ -22,11 +24,11 @@ const nextConfig = {
   },
   async redirects() {
     return [
-      ...(process.env.NEXT_PUBLIC_BASE_PATH?.length
+      ...(BASE_PATH.length
         ? [
             {
               source: '/',
-              destination: process.env.NEXT_PUBLIC_BASE_PATH,
+              destination: BASE_PATH,
               basePath: false,
               permanent: false,
             },
diff --git a/apps/design-system/registry/default/example/expanding-textarea-demo.tsx b/apps/design-system/registry/default/example/expanding-textarea-demo.tsx
new file mode 100644
index 00000000000..464d1db42ab
--- /dev/null
+++ b/apps/design-system/registry/default/example/expanding-textarea-demo.tsx
@@ -0,0 +1,16 @@
+import { useState } from 'react'
+import { ExpandingTextArea } from 'ui'
+
+export default function ExpandingTextareaDemo() {
+  const [value, setValue] = useState('')
+
+  return (
+    <ExpandingTextArea
+      placeholder="Type your message in multiple lines here."
+      value={value}
+      onChange={(event) => {
+        setValue(event.target.value)
+      }}
+    />
+  )
+}
diff --git a/apps/design-system/registry/examples.ts b/apps/design-system/registry/examples.ts
index 26a7386efbe..f8e00260d70 100644
--- a/apps/design-system/registry/examples.ts
+++ b/apps/design-system/registry/examples.ts
@@ -1065,4 +1065,9 @@ export const examples: Registry = [
     type: 'docs:example',
     files: ['example/color-usage-surface-studio-frame.tsx'],
   },
+  {
+    name: 'expanding-textarea-demo',
+    type: 'docs:example',
+    files: ['example/expanding-textarea-demo.tsx'],
+  },
 ]
diff --git a/apps/studio/components/interfaces/SQLEditor/AiAssistantPanel/index.tsx b/apps/studio/components/interfaces/SQLEditor/AiAssistantPanel/index.tsx
index 8f9c72a5bf8..e6e19e3fa80 100644
--- a/apps/studio/components/interfaces/SQLEditor/AiAssistantPanel/index.tsx
+++ b/apps/studio/components/interfaces/SQLEditor/AiAssistantPanel/index.tsx
@@ -15,12 +15,12 @@ import { IS_PLATFORM, LOCAL_STORAGE_KEYS, OPT_IN_TAGS } from 'lib/constants'
 import { useProfile } from 'lib/profile'
 import { useAppStateSnapshot } from 'state/app-state'
 import {
+  ExpandingTextArea,
   Button,
   FormControl_Shadcn_,
   FormField_Shadcn_,
   FormItem_Shadcn_,
   Form_Shadcn_,
-  Input_Shadcn_,
   cn,
 } from 'ui'
 import { AiIcon } from 'ui-patterns/Cmdk'
@@ -86,6 +86,8 @@ export const AiAssistantPanel = ({
     }
   }, [loading])
 
+  const formRef = useRef<HTMLFormElement>(null)
+
   return (
     <div className="flex flex-col h-full min-w-[400px] w-[400px] border-l border-control">
       <div
@@ -150,6 +152,7 @@ export const AiAssistantPanel = ({
 
       <Form_Shadcn_ {...form}>
         <form
+          ref={formRef}
           className="sticky p-5 flex-0 border-t"
           onSubmit={form.handleSubmit((data: z.infer<typeof FormSchema>) => {
             onSubmit(data.chat)
@@ -168,18 +171,23 @@ export const AiAssistantPanel = ({
             control={form.control}
             name="chat"
             render={({ field }) => (
-              <FormItem_Shadcn_>
+              <FormItem_Shadcn_ asChild>
                 <FormControl_Shadcn_>
                   <div className="relative">
                     <AiIcon className="absolute top-2 left-3 [&>div>div]:border-black dark:[&>div>div]:border-white" />
-                    <Input_Shadcn_
+                    <ExpandingTextArea
                       {...field}
                       autoComplete="off"
                       disabled={loading}
                       autoFocus
-                      className={`bg-surface-300 dark:bg-black rounded-full pl-10 ${
-                        loading ? 'pr-10' : ''
-                      }`}
+                      spellCheck={false}
+                      className="pl-12 text-sm rounded-[18px] max-h-96"
+                      onKeyDown={(event) => {
+                        if (event.key === 'Enter' && !event.shiftKey) {
+                          event.preventDefault()
+                          formRef?.current?.requestSubmit()
+                        }
+                      }}
                       placeholder="Ask a question about your SQL query"
                     />
                     {loading && <Loader2 className="absolute top-2 right-3 animate-spin" />}
diff --git a/packages/ui-patterns/AssistantChat/AssistantChatForm.tsx b/packages/ui-patterns/AssistantChat/AssistantChatForm.tsx
index dedae876eb7..4f836f6c702 100644
--- a/packages/ui-patterns/AssistantChat/AssistantChatForm.tsx
+++ b/packages/ui-patterns/AssistantChat/AssistantChatForm.tsx
@@ -95,6 +95,7 @@ const AssistantChatForm = React.forwardRef<HTMLFormElement, FormProps>(
             {icon}
           </div>
         )}
+        {/* TODO: Replace this with ExpandingTextArea */}
         <TextArea
           ref={textAreaRef}
           autoFocus
diff --git a/packages/ui-patterns/AssistantChat/ExpandingTextArea.tsx b/packages/ui-patterns/AssistantChat/ExpandingTextArea.tsx
new file mode 100644
index 00000000000..226a3343079
--- /dev/null
+++ b/packages/ui-patterns/AssistantChat/ExpandingTextArea.tsx
@@ -0,0 +1,53 @@
+'use client'
+
+import React, { createRef, useEffect } from 'react'
+import { TextArea } from 'ui/src/components/shadcn/ui/text-area'
+import { cn } from 'ui/src/lib/utils'
+
+export interface ExpandingTextAreaProps extends React.TextareaHTMLAttributes<HTMLTextAreaElement> {}
+
+const ExpandingTextArea = ({
+  className,
+  disabled = false,
+  value,
+  onSubmit,
+  placeholder,
+  ...props
+}: ExpandingTextAreaProps) => {
+  const textAreaRef = createRef<HTMLTextAreaElement>()
+
+  /**
+   * This effect is used to resize the textarea based on the content
+   */
+  useEffect(() => {
+    if (textAreaRef) {
+      if (!value && textAreaRef && textAreaRef.current) {
+        textAreaRef.current.style.height = '40px'
+      } else if (textAreaRef && textAreaRef.current) {
+        const newHeight = textAreaRef.current.scrollHeight + 'px'
+        textAreaRef.current.style.height = newHeight
+      }
+    }
+  }, [value, textAreaRef])
+
+  return (
+    <TextArea
+      ref={textAreaRef}
+      rows={1}
+      contentEditable
+      aria-expanded={false}
+      className={cn(
+        'transition-all text-sm pr-10 rounded-[18px] resize-none box-border leading-6',
+        className
+      )}
+      placeholder={placeholder}
+      spellCheck={false}
+      value={value}
+      {...props}
+    />
+  )
+}
+
+ExpandingTextArea.displayName = 'AssistantChatTextArea'
+
+export { ExpandingTextArea }
diff --git a/packages/ui/index.tsx b/packages/ui/index.tsx
index 62b359f890a..8135a4f5f27 100644
--- a/packages/ui/index.tsx
+++ b/packages/ui/index.tsx
@@ -56,6 +56,7 @@ export * from './src/components/Radio'
 export * from './src/components/Toggle'
 export * from './src/components/Upload'
 export * from './src/components/Form'
+export * from './src/components/ExpandingTextArea'
 
 // layout
 export * from './src/components/LoadingLine'
@@ -257,10 +258,6 @@ export * from './src/layout/banners'
 
 // export { default as Config } from './../ui.config'
 
-// ARCHIVE
-
-// export * from './src/components/Textarea'
-
 // AUTH
 
 // export * from './src/components/Auth'
diff --git a/packages/ui/src/components/ExpandingTextArea/index.tsx b/packages/ui/src/components/ExpandingTextArea/index.tsx
new file mode 100644
index 00000000000..143c9c0282b
--- /dev/null
+++ b/packages/ui/src/components/ExpandingTextArea/index.tsx
@@ -0,0 +1,46 @@
+'use client'
+
+import React, { createRef, useEffect } from 'react'
+import { cn } from '../../lib/utils'
+import { TextArea } from '../shadcn/ui/text-area'
+
+export interface ExpandingTextAreaProps extends React.TextareaHTMLAttributes<HTMLTextAreaElement> {
+  /* The value of the textarea. Required to calculate the height of the textarea. */
+  value: string
+}
+
+/**
+ * This is a custom TextArea component that expands based on the content.
+ */
+const ExpandingTextArea = ({ className, value, ...props }: ExpandingTextAreaProps) => {
+  const textAreaRef = createRef<HTMLTextAreaElement>()
+
+  /**
+   * This effect is used to resize the textarea based on the content
+   */
+  useEffect(() => {
+    if (textAreaRef) {
+      if (!value && textAreaRef && textAreaRef.current) {
+        textAreaRef.current.style.height = '40px'
+      } else if (textAreaRef && textAreaRef.current) {
+        const newHeight = textAreaRef.current.scrollHeight + 'px'
+        textAreaRef.current.style.height = newHeight
+      }
+    }
+  }, [value, textAreaRef])
+
+  return (
+    <TextArea
+      ref={textAreaRef}
+      rows={1}
+      aria-expanded={false}
+      className={cn('transition-all resize-none leading-6 box-border', className)}
+      value={value}
+      {...props}
+    />
+  )
+}
+
+ExpandingTextArea.displayName = 'ExpandingTextArea'
+
+export { ExpandingTextArea }
diff --git a/packages/ui/src/components/Textarea/Textarea.css b/packages/ui/src/components/Textarea/Textarea.css
deleted file mode 100644
index 22080ce9ee4..00000000000
--- a/packages/ui/src/components/Textarea/Textarea.css
+++ /dev/null
@@ -1,11 +0,0 @@
-.form-textarea:disabled {
-  @apply bg-gray-100 cursor-not-allowed;
-}
-
-.form-textarea--error {
-  @apply border-red-500;
-}
-
-.form-textarea--borderless {
-  @apply border-none;
-}
diff --git a/packages/ui/src/components/Textarea/Textarea.js b/packages/ui/src/components/Textarea/Textarea.js
deleted file mode 100644
index 1dcf7343596..00000000000
--- a/packages/ui/src/components/Textarea/Textarea.js
+++ /dev/null
@@ -1,41 +0,0 @@
-import React from 'react'
-import PropTypes from 'prop-types'
-import './Textarea.css'
-
-/**
- * @deprecated Use ./TextArea_Shadcn_ instead
- */
-const Textarea = ({
-  className = '',
-  isError = false,
-  rows = 3,
-  children,
-  borderless = false,
-  ...props
-}) => {
-  const classes = []
-
-  if (isError) {
-    classes.push('form-textarea--error')
-  }
-
-  if (borderless) {
-    classes.push('form-textarea--borderless')
-  }
-
-  return (
-    <textarea
-      className={`form-textarea border-solid ${classes.join(' ')} ${className}`}
-      rows={rows}
-      {...props}
-    />
-  )
-}
-
-Textarea.propTypes = {
-  isError: PropTypes.bool,
-  className: PropTypes.string,
-  borderless: PropTypes.bool,
-}
-
-export default Textarea
diff --git a/packages/ui/src/components/Textarea/Textarea.spec.js b/packages/ui/src/components/Textarea/Textarea.spec.js
deleted file mode 100644
index 47730087d8a..00000000000
--- a/packages/ui/src/components/Textarea/Textarea.spec.js
+++ /dev/null
@@ -1,15 +0,0 @@
-import React from 'react'
-import { render, screen } from '@testing-library/react'
-import Textarea from './Textarea'
-
-describe('#Textarea', () => {
-  it('should render textarea correctly', async () => {
-    render(<Textarea data-testid="form-textarea" />)
-    expect(screen.queryByTestId('form-textarea')).toBeInTheDocument()
-  })
-
-  it('should have "form-textarea--error" class', () => {
-    render(<Textarea isError data-testid="form-textarea" />)
-    expect(screen.queryByTestId('form-textarea')).toHaveClass('form-textarea border-solid form-textarea--error')
-  })
-})
\ No newline at end of file
diff --git a/packages/ui/src/components/Textarea/Textarea.stories.js b/packages/ui/src/components/Textarea/Textarea.stories.js
deleted file mode 100644
index 07dba2312d2..00000000000
--- a/packages/ui/src/components/Textarea/Textarea.stories.js
+++ /dev/null
@@ -1,14 +0,0 @@
-import React from 'react'
-
-import { Textarea } from '.'
-
-export default {
-  title: 'Archive/Textarea',
-  component: Textarea,
-}
-
-export const Default = (args) => <Textarea {...args} />
-Default.args = {
-  placeholder: 'Type text here ...',
-  disabled: false
-}
diff --git a/packages/ui/src/components/Textarea/index.js b/packages/ui/src/components/Textarea/index.js
deleted file mode 100644
index 57766a9ef20..00000000000
--- a/packages/ui/src/components/Textarea/index.js
+++ /dev/null
@@ -1 +0,0 @@
-export { default as Textarea } from './Textarea'