diff --git a/apps/studio/components/ui/AIAssistantPanel/AIAssistant.types.ts b/apps/studio/components/ui/AIAssistantPanel/AIAssistant.types.ts
index c587434a402..9f847ae2c8c 100644
--- a/apps/studio/components/ui/AIAssistantPanel/AIAssistant.types.ts
+++ b/apps/studio/components/ui/AIAssistantPanel/AIAssistant.types.ts
@@ -1,10 +1,11 @@
 export type SupportedAssistantEntities = 'rls-policies' | 'functions'
 export type SupportedAssistantQuickPromptTypes = 'suggest' | 'examples' | 'ask'
 
-export type AssistantSnippetProps = {
-  title: string
-  runQuery: 'true' | 'false'
-  isChart?: 'true' | 'false'
+export interface AssistantSnippetProps {
+  title?: string
+  isChart?: string
+  runQuery?: string
   xAxis?: string
   yAxis?: string
+  name?: string
 }
diff --git a/apps/studio/components/ui/AIAssistantPanel/MessageMarkdown.tsx b/apps/studio/components/ui/AIAssistantPanel/MessageMarkdown.tsx
index 56777e53466..d7a38e9c464 100644
--- a/apps/studio/components/ui/AIAssistantPanel/MessageMarkdown.tsx
+++ b/apps/studio/components/ui/AIAssistantPanel/MessageMarkdown.tsx
@@ -16,6 +16,7 @@ import { AssistantSnippetProps } from './AIAssistant.types'
 import { identifyQueryType } from './AIAssistant.utils'
 import CollapsibleCodeBlock from './CollapsibleCodeBlock'
 import { MessageContext } from './Message'
+import { EdgeFunctionBlock } from '../EdgeFunctionBlock/EdgeFunctionBlock'
 
 export const OrderedList = memo(({ children }: { children: ReactNode }) => (
   <ol className="flex flex-col gap-y-4">{children}</ol>
@@ -149,19 +150,22 @@ export const MarkdownPre = ({ children }: { children: any }) => {
   })
 
   const language = children[0].props.className?.replace('language-', '') || 'sql'
-  const rawSql = language === 'sql' ? children[0].props.children : undefined
-  const formatted = (rawSql || [''])[0]
-  const propsMatch = formatted.match(/--\s*props:\s*(\{[^}]+\})/)
+  const rawContent = children[0].props.children[0]
+  const propsMatch = rawContent.match(/--\s*props:\s*(\{[^}]+\})/)
 
   const snippetProps: AssistantSnippetProps = useMemo(
     () => (propsMatch ? JSON.parse(propsMatch[1]) : {}),
     [propsMatch]
   )
+
   const { xAxis, yAxis } = snippetProps
-  const title = snippetProps.title || 'SQL Query'
+  const title = snippetProps.title || (language === 'edge' ? 'Edge Function' : 'SQL Query')
   const isChart = snippetProps.isChart === 'true'
   const runQuery = snippetProps.runQuery === 'true'
-  const sql = formatted?.replace(/--\s*props:\s*\{[^}]+\}/, '').trim()
+
+  // Strip props from the content for both SQL and edge functions
+  const cleanContent = rawContent.replace(/--\s*props:\s*\{[^}]+\}/, '').trim()
+
   const isDraggableToReports =
     supportSQLBlocks && canCreateSQLSnippet && router.pathname.endsWith('/reports/[id]')
 
@@ -180,23 +184,28 @@ export const MarkdownPre = ({ children }: { children: any }) => {
       action: TelemetryActions.ASSISTANT_SUGGESTION_RUN_QUERY_CLICKED,
       properties: {
         queryType,
-        ...(queryType === 'mutation' ? { category: identifyQueryType(sql) ?? 'unknown' } : {}),
+        ...(queryType === 'mutation'
+          ? { category: identifyQueryType(cleanContent) ?? 'unknown' }
+          : {}),
       },
     })
   }
 
   return (
     <div className="w-auto -ml-[36px] overflow-x-hidden">
-      {language === 'sql' ? (
+      {language === 'edge' ? (
+        <EdgeFunctionBlock
+          label={title}
+          code={cleanContent}
+          functionName={snippetProps.name || 'my-function'}
+          showCode={!readOnly}
+        />
+      ) : language === 'sql' ? (
         readOnly ? (
-          <CollapsibleCodeBlock
-            value={children[0].props.children[0]}
-            language="sql"
-            hideLineNumbers
-          />
+          <CollapsibleCodeBlock value={cleanContent} language="sql" hideLineNumbers />
         ) : (
           <MemoizedQueryBlock
-            sql={sql}
+            sql={cleanContent}
             title={title}
             xAxis={xAxis}
             yAxis={yAxis}
@@ -211,7 +220,7 @@ export const MarkdownPre = ({ children }: { children: any }) => {
             onDragStart={(e: DragEvent<Element>) => {
               e.dataTransfer.setData(
                 'application/json',
-                JSON.stringify({ label: title, sql, config: chartConfig.current })
+                JSON.stringify({ label: title, sql: cleanContent, config: chartConfig.current })
               )
             }}
           />
@@ -219,7 +228,7 @@ export const MarkdownPre = ({ children }: { children: any }) => {
       ) : (
         <CodeBlock
           hideLineNumbers
-          value={children[0].props.children[0]}
+          value={cleanContent}
           language={language as CodeBlockLang}
           className={cn(
             'max-h-96 max-w-none block border rounded !bg-transparent !py-3 !px-3.5 prose dark:prose-dark text-foreground',
diff --git a/apps/studio/components/ui/EdgeFunctionBlock/EdgeFunctionBlock.tsx b/apps/studio/components/ui/EdgeFunctionBlock/EdgeFunctionBlock.tsx
new file mode 100644
index 00000000000..8ae63b9f57a
--- /dev/null
+++ b/apps/studio/components/ui/EdgeFunctionBlock/EdgeFunctionBlock.tsx
@@ -0,0 +1,135 @@
+import { DragEvent, ReactNode, useState } from 'react'
+import { toast } from 'sonner'
+import { useParams } from 'common'
+import { useEdgeFunctionDeployMutation } from 'data/edge-functions/edge-functions-deploy-mutation'
+import { ReportBlockContainer } from 'components/interfaces/Reports/ReportBlock/ReportBlockContainer'
+import { Button, CodeBlock, cn, CodeBlockLang } from 'ui'
+import { Code } from 'lucide-react'
+
+interface EdgeFunctionBlockProps {
+  /** Title of the EdgeFunctionBlock */
+  label: string
+  /** Function code to display */
+  code: string
+  /** Function name/slug */
+  functionName: string
+  /** Any other actions specific to the parent to be rendered in the header */
+  actions?: ReactNode
+  /** Toggle visiblity of code on render */
+  showCode?: boolean
+  /** Whether function block is draggable */
+  draggable?: boolean
+  /** Tooltip when hovering over the header of the block */
+  tooltip?: ReactNode
+  /** Optional callback on drag start */
+  onDragStart?: (e: DragEvent<Element>) => void
+}
+
+export const EdgeFunctionBlock = ({
+  label,
+  code,
+  functionName,
+  actions,
+  showCode: _showCode = false,
+  tooltip,
+}: EdgeFunctionBlockProps) => {
+  const { ref } = useParams()
+  const [isDeployed, setIsDeployed] = useState(false)
+
+  const { mutateAsync: deployFunction, isLoading: isDeploying } = useEdgeFunctionDeployMutation({
+    onSuccess: () => {
+      setIsDeployed(true)
+      toast.success('Successfully deployed edge function')
+    },
+  })
+
+  const handleDeploy = async () => {
+    if (!code || isDeploying || !ref) return
+
+    try {
+      const deployResult = await deployFunction({
+        projectRef: ref,
+        metadata: {
+          entrypoint_path: 'index.ts',
+          name: functionName,
+          verify_jwt: false,
+        },
+        files: [{ name: 'index.ts', content: code }],
+      })
+    } catch (error) {
+      toast.error(
+        `Failed to deploy function: ${error instanceof Error ? error.message : 'Unknown error'}`
+      )
+    }
+  }
+
+  const functionUrl = ref ? `https://${ref}.supabase.co/functions/v1/${functionName}` : ''
+
+  return (
+    <ReportBlockContainer
+      tooltip={tooltip}
+      icon={
+        <Code
+          size={18}
+          strokeWidth={1.5}
+          className={cn(
+            'transition-colors fill-foreground-muted group-aria-selected:fill-foreground',
+            'w-5 h-5 shrink-0 grow-0 -ml-0.5'
+          )}
+        />
+      }
+      label={label}
+      actions={
+        <>
+          <Button
+            type="outline"
+            size="tiny"
+            loading={isDeploying}
+            disabled={!ref}
+            onClick={handleDeploy}
+          >
+            {isDeploying ? 'Deploying...' : 'Deploy'}
+          </Button>
+
+          {actions}
+        </>
+      }
+    >
+      <div className="shrink-0 w-full max-h-96 overflow-y-auto">
+        <CodeBlock
+          hideLineNumbers
+          wrapLines={false}
+          value={code}
+          language={'typescript' as CodeBlockLang}
+          className={cn(
+            'max-w-none block !bg-transparent !py-3 !px-3.5 prose dark:prose-dark border-0 text-foreground !rounded-none w-full',
+            '[&>code]:m-0 [&>code>span]:text-foreground'
+          )}
+        />
+      </div>
+
+      {(isDeploying || isDeployed) && (
+        <div className="p-4 w-full border-t bg-surface-75 text-xs">
+          {isDeploying ? (
+            <p className="text-foreground-light">Deploying function...</p>
+          ) : (
+            <>
+              <p className="text-foreground-light mb-2">
+                Function deployed successfully! You can now invoke it at:
+              </p>
+              <CodeBlock hideLineNumbers value={functionUrl} className="text-xs p-2" />
+              <p className="text-foreground-light mt-4 mb-2">
+                To download and work on this function locally, use the CLI command:
+              </p>
+              <CodeBlock
+                hideLineNumbers
+                value={`supabase functions download ${functionName}`}
+                className="text-xs p-2"
+              />
+            </>
+          )}
+        </div>
+      )}
+    </ReportBlockContainer>
+  )
+}
diff --git a/apps/studio/pages/api/ai/sql/generate-v3.ts b/apps/studio/pages/api/ai/sql/generate-v3.ts
index 4843862c3c7..e0f229a1708 100644
--- a/apps/studio/pages/api/ai/sql/generate-v3.ts
+++ b/apps/studio/pages/api/ai/sql/generate-v3.ts
@@ -121,7 +121,12 @@ async function handlePost(req: NextApiRequest, res: NextApiResponse) {
       - First, always use the getEdgeFunctionKnowledge tool to get knowledge about how to write edge functions for Supabase
       - When writing edge functions, always ensure that they are written in TypeScript and Deno JavaScript runtime.
       - When writing edge functions, always ensure that they are written in a way that is compatible with the database schema.
-      - When suggesting edge functions, dont suggest generic edge functions as shown in the getEdgeFunctionKnowledge tool, create personalised edge functions based on the database schema.
+      - When suggesting edge functions, follow the guidelines in getEdgeFunctionKnowledge tool. Always create personalised edge functions based on the database schema
+      - When outputting edge functions, always include a props comment in the first line of the code block:
+        -- props: {"name": "function-name", "title": "Human readable title"}
+      - The function name in the props must be URL-friendly (use hyphens instead of spaces or underscores)
+      - Always wrap the edge function code in a markdown code block with the language set to 'edge'
+      - The props comment must be the first line inside the code block, followed by the actual function code
 
       # You convert sql to supabase-js client code
       Use the convertSqlToSupabaseJs tool to convert select sql to supabase-js client code. Only provide js code snippets if explicitly asked. If conversion isn't supported, build a postgres function instead and suggest using supabase-js to call it via  "const { data, error } = await supabase.rpc('echo', { say: '👋'})"