diff --git a/apps/studio/components/ui/AIEditor/index.tsx b/apps/studio/components/ui/AIEditor/index.tsx
index 1fa7d3bb507..ce8c6865a71 100644
--- a/apps/studio/components/ui/AIEditor/index.tsx
+++ b/apps/studio/components/ui/AIEditor/index.tsx
@@ -1,4 +1,4 @@
-import Editor, { Monaco, OnMount } from '@monaco-editor/react'
+import { Monaco, OnMount } from '@monaco-editor/react'
 import { AnimatePresence, motion } from 'framer-motion'
 import type { editor as monacoEditor } from 'monaco-editor'
 import { useCallback, useEffect, useRef, useState } from 'react'
@@ -6,18 +6,20 @@ import { toast } from 'sonner'
 import { KeyboardShortcut } from 'ui'
 import { useSetCommandMenuOpen } from 'ui-patterns'
 
+import { CodeEditor, type ValidLanguages } from '../CodeEditor/CodeEditor'
 import { DiffEditor } from '../DiffEditor'
 import ResizableAIWidget from './ResizableAIWidget'
 import { getEditorSelectionParts } from './utils'
 import { SIDEBAR_KEYS } from '@/components/layouts/ProjectLayout/LayoutSidebar/LayoutSidebarProvider'
 import { constructHeaders } from '@/data/fetchers'
+import { useLatest } from '@/hooks/misc/useLatest'
 import { SHORTCUT_IDS } from '@/state/shortcuts/registry'
 import { useIsShortcutEnabled } from '@/state/shortcuts/useIsShortcutEnabled'
 import { useSidebarManagerSnapshot } from '@/state/sidebar-manager-state'
 
 interface AIEditorProps {
   id?: string
-  language?: string
+  language: ValidLanguages
   value?: string
   defaultValue?: string
   aiEndpoint?: string
@@ -71,14 +73,9 @@ export const AIEditor = ({
   const isCommandMenuHotkeyEnabled = useIsShortcutEnabled(SHORTCUT_IDS.COMMAND_MENU_OPEN)
   const setCommandMenuOpen = useSetCommandMenuOpen()
 
-  const executeQueryRef = useRef(executeQuery)
-  executeQueryRef.current = executeQuery
-
-  const commandMenuHotkeyEnabledRef = useRef(isCommandMenuHotkeyEnabled)
-  commandMenuHotkeyEnabledRef.current = isCommandMenuHotkeyEnabled
-
-  const setCommandMenuOpenRef = useRef(setCommandMenuOpen)
-  setCommandMenuOpenRef.current = setCommandMenuOpen
+  const executeQueryRef = useLatest(executeQuery)
+  const commandMenuHotkeyEnabledRef = useLatest(isCommandMenuHotkeyEnabled)
+  const setCommandMenuOpenRef = useLatest(setCommandMenuOpen)
 
   const [currentValue, setCurrentValue] = useState(value || defaultValue)
   const [isDiffMode, setIsDiffMode] = useState(false)
@@ -237,17 +234,6 @@ export const AIEditor = ({
         })
     }
 
-    if (!!executeQueryRef.current) {
-      editor.addAction({
-        id: 'run-query',
-        label: 'Run Query',
-        keybindings: [monaco.KeyMod.CtrlCmd + monaco.KeyCode.Enter],
-        contextMenuGroupId: 'operation',
-        contextMenuOrder: 0,
-        run: () => executeQueryRef.current?.(),
-      })
-    }
-
     refreshCloseAction()
 
     // Add AI Assistant toggle keybinding (Cmd+I)
@@ -281,11 +267,6 @@ export const AIEditor = ({
         setCommandMenuOpenRef.current(true)
       }
     })
-
-    if (autoFocus) {
-      if (editor.getValue().length === 1) editor.setPosition({ lineNumber: 1, column: 2 })
-      editor.focus()
-    }
   }
 
   const handlePrompt = async (
@@ -325,19 +306,6 @@ export const AIEditor = ({
     }
   }
 
-  const defaultOptions: monacoEditor.IStandaloneEditorConstructionOptions = {
-    tabSize: 2,
-    fontSize: 13,
-    readOnly,
-    minimap: { enabled: false },
-    wordWrap: 'on',
-    lineNumbers: 'on',
-    folding: false,
-    padding: { top: 4 },
-    lineNumbersMinChars: 3,
-    ...options,
-  }
-
   useEffect(() => {
     setCurrentValue(value || defaultValue)
   }, [value, defaultValue])
@@ -414,19 +382,20 @@ export const AIEditor = ({
         </div>
       ) : (
         <div className="w-full h-full relative">
-          {/* [Joshen] Refactor: Use CodeEditor.tsx instead, reduce duplicate declaration of Editor */}
-          <Editor
-            theme="supabase"
+          <CodeEditor
             language={language}
+            autofocus={autoFocus}
+            className={className}
+            isReadOnly={readOnly}
+            options={options}
             value={currentValue}
-            options={defaultOptions}
-            onChange={(value: string | undefined) => {
+            onInputChange={(value) => {
               const newValue = value || ''
               setCurrentValue(newValue)
               onChange?.(newValue)
             }}
             onMount={handleEditorOnMount}
-            className={className}
+            actions={{ runQuery: { enabled: true, callback: () => executeQueryRef.current?.() } }}
           />
           {promptState.isOpen && editorRef.current && (
             <ResizableAIWidget
diff --git a/apps/studio/components/ui/CodeEditor/CodeEditor.tsx b/apps/studio/components/ui/CodeEditor/CodeEditor.tsx
index f4a12ba9a38..75901839ffe 100644
--- a/apps/studio/components/ui/CodeEditor/CodeEditor.tsx
+++ b/apps/studio/components/ui/CodeEditor/CodeEditor.tsx
@@ -22,9 +22,20 @@ const DEFAULT_ACTIONS = {
   placeholderFill: { enabled: true },
 }
 
+export type ValidLanguages =
+  | 'pgsql'
+  | 'json'
+  | 'html'
+  | 'typescript'
+  | 'javascript'
+  | 'css'
+  | 'csv'
+  | 'plaintext'
+  | 'markdown'
+
 interface CodeEditorProps {
   id?: string
-  language: 'pgsql' | 'json' | 'html' | 'typescript' | 'plaintext' | 'markdown'
+  language: ValidLanguages
   autofocus?: boolean
   defaultValue?: string
   isReadOnly?: boolean
diff --git a/apps/studio/components/ui/EditorPanel/EditorPanel.tsx b/apps/studio/components/ui/EditorPanel/EditorPanel.tsx
index 807557c5f0f..010cbc09ad8 100644
--- a/apps/studio/components/ui/EditorPanel/EditorPanel.tsx
+++ b/apps/studio/components/ui/EditorPanel/EditorPanel.tsx
@@ -507,7 +507,7 @@ export const EditorPanel = () => {
               wordWrap: 'on',
               lineNumbers: 'on',
               folding: false,
-              padding: { top: 16 },
+              padding: { top: 12 },
               lineNumbersMinChars: 3,
             }}
             executeQuery={onExecuteSql}
@@ -516,7 +516,6 @@ export const EditorPanel = () => {
             openAIAssistantShortcutEnabled={isAIAssistantHotkeyEnabled}
           />
         </div>
-
         {error !== undefined && (
           <div className="shrink-0">
             <Admonition
@@ -539,7 +538,6 @@ export const EditorPanel = () => {
             />
           </div>
         )}
-
         {showWarning && (
           <SqlWarningAdmonition
             className="border-t"
@@ -557,7 +555,6 @@ export const EditorPanel = () => {
             }}
           />
         )}
-
         {results !== undefined && results.length > 0 && (
           <div
             className={cn(
@@ -593,7 +590,6 @@ export const EditorPanel = () => {
             </p>
           </div>
         )}
-
         <div className="relative shrink-0 flex items-center gap-2 justify-end px-5 py-4 w-full border-t">
           {(isUpserting || saveStatus !== 'idle') && (
             <div
diff --git a/apps/studio/components/ui/FileExplorerAndEditor/FileExplorerAndEditor.utils.ts b/apps/studio/components/ui/FileExplorerAndEditor/FileExplorerAndEditor.utils.ts
index 716c40289db..174944f1af3 100644
--- a/apps/studio/components/ui/FileExplorerAndEditor/FileExplorerAndEditor.utils.ts
+++ b/apps/studio/components/ui/FileExplorerAndEditor/FileExplorerAndEditor.utils.ts
@@ -38,7 +38,17 @@ export const isBinaryFile = (fileName: string): boolean => {
   return binaryExtensions.includes(extension || '')
 }
 
-export const getLanguageFromFileName = (fileName: string): string => {
+type EditorLanguage =
+  | 'typescript'
+  | 'javascript'
+  | 'json'
+  | 'html'
+  | 'css'
+  | 'markdown'
+  | 'csv'
+  | 'plaintext'
+
+export const getLanguageFromFileName = (fileName: string): EditorLanguage => {
   const extension = fileName.split('.').pop()?.toLowerCase()
   switch (extension) {
     case 'ts':