diff --git a/src/extension/tools/node/getErrorsTool.tsx b/src/extension/tools/node/getErrorsTool.tsx
index 93f9920ed6..cdef1f9066 100644
--- a/src/extension/tools/node/getErrorsTool.tsx
+++ b/src/extension/tools/node/getErrorsTool.tsx
@@ -17,6 +17,7 @@ import { isLocation } from '../../../util/common/types';
 import { coalesce } from '../../../util/vs/base/common/arrays';
 import { CancellationToken } from '../../../util/vs/base/common/cancellation';
 import { Disposable } from '../../../util/vs/base/common/lifecycle';
+import { ResourceSet } from '../../../util/vs/base/common/map';
 import { isEqualOrParent } from '../../../util/vs/base/common/resources';
 import { URI } from '../../../util/vs/base/common/uri';
 import { IInstantiationService } from '../../../util/vs/platform/instantiation/common/instantiation';
@@ -56,8 +57,8 @@ export class GetErrorsTool extends Disposable implements ICopilotTool<IGetErrors
 	 * Get diagnostics for the given paths and optional ranges.
 	 * Note - This is made public for testing purposes only.
 	 */
-	public getDiagnostics(paths: { uri: URI; range: Range | undefined }[]): Array<{ uri: URI; diagnostics: vscode.Diagnostic[] }> {
-		const results: Array<{ uri: URI; diagnostics: vscode.Diagnostic[] }> = [];
+	public getDiagnostics(paths: { uri: URI; range: Range | undefined }[]): Array<{ uri: URI; diagnostics: vscode.Diagnostic[]; inputUri?: URI }> {
+		const results: Array<{ uri: URI; diagnostics: vscode.Diagnostic[]; inputUri?: URI }> = [];
 
 		// for notebooks, we need to find the cell matching the range and get diagnostics for that cell
 		const nonNotebookPaths = paths.filter(p => {
@@ -89,11 +90,27 @@ export class GetErrorsTool extends Disposable implements ICopilotTool<IGetErrors
 			const ranges: Range[] = [];
 			let shouldTakeAll = false;
 			let foundMatch = false;
+			let inputUri: URI | undefined;
+			let matchedExactPath = false;
+
 			for (const path of nonNotebookPaths) {
 				// we support file or folder paths
 				if (isEqualOrParent(resource, path.uri)) {
 					foundMatch = true;
 
+					// Track the input URI that matched - prefer exact matches, otherwise use the folder
+					const isExactMatch = resource.toString() === path.uri.toString();
+					if (isExactMatch) {
+						// Exact match - this is the file itself, no input folder
+						inputUri = undefined;
+						matchedExactPath = true;
+					} else if (!matchedExactPath) {
+						// Folder match - only set if we haven't found an exact match or a previous folder match
+						if (inputUri === undefined) {
+							inputUri = path.uri;
+						}
+					}
+
 					if (pendingMatchPaths.has(path.uri)) {
 						pendingMatchPaths.delete(path.uri);
 					}
@@ -109,13 +126,13 @@ export class GetErrorsTool extends Disposable implements ICopilotTool<IGetErrors
 			}
 
 			if (shouldTakeAll) {
-				results.push({ uri: resource, diagnostics: pendingDiagnostics });
+				results.push({ uri: resource, diagnostics: pendingDiagnostics, inputUri });
 				continue;
 			}
 
 			if (foundMatch && ranges.length > 0) {
 				const diagnostics = pendingDiagnostics.filter(d => ranges.some(range => d.range.intersection(range)));
-				results.push({ uri: resource, diagnostics });
+				results.push({ uri: resource, diagnostics, inputUri });
 			}
 		}
 
@@ -129,7 +146,7 @@ export class GetErrorsTool extends Disposable implements ICopilotTool<IGetErrors
 
 	async invoke(options: vscode.LanguageModelToolInvocationOptions<IGetErrorsParams>, token: CancellationToken) {
 		const getAll = () => this.languageDiagnosticsService.getAllDiagnostics()
-			.map(d => ({ uri: d[0], diagnostics: d[1].filter(e => e.severity <= DiagnosticSeverity.Warning) }))
+			.map(d => ({ uri: d[0], diagnostics: d[1].filter(e => e.severity <= DiagnosticSeverity.Warning), inputUri: undefined }))
 			// filter any documents w/o warnings or errors
 			.filter(d => d.diagnostics.length > 0);
 
@@ -146,14 +163,15 @@ export class GetErrorsTool extends Disposable implements ICopilotTool<IGetErrors
 
 		const ds = options.input.filePaths?.length ? getSome(options.input.filePaths) : getAll();
 
-		const diagnostics = coalesce(await Promise.all(ds.map((async ({ uri, diagnostics }) => {
+		const diagnostics = coalesce(await Promise.all(ds.map((async ({ uri, diagnostics, inputUri }) => {
 			try {
 				const document = await this.workspaceService.openTextDocumentAndSnapshot(uri);
 				checkCancellation(token);
 				return {
 					uri,
 					diagnostics,
-					context: { document, language: getLanguage(document) }
+					context: { document, language: getLanguage(document) },
+					inputUri
 				};
 			} catch (e) {
 				this.logService.error(e, 'get_errors failed to open doc with diagnostics');
@@ -169,7 +187,17 @@ export class GetErrorsTool extends Disposable implements ICopilotTool<IGetErrors
 		]);
 
 		const numDiagnostics = diagnostics.reduce((acc, { diagnostics }) => acc + diagnostics.length, 0);
-		const formattedURIs = this.formatURIs(diagnostics.map(d => d.uri));
+
+		// For display message, use inputUri if available (indicating file was found via folder input), otherwise use the file uri
+		// Deduplicate URIs since multiple files may have the same inputUri
+		const displayUriSet = new ResourceSet();
+		for (const d of diagnostics) {
+			const displayUri = d.inputUri ?? d.uri;
+			displayUriSet.add(displayUri);
+		}
+
+		const formattedURIs = this.formatURIs(Array.from(displayUriSet));
+
 		if (options.input.filePaths?.length) {
 			result.toolResultMessage = numDiagnostics === 0 ?
 				new MarkdownString(l10n.t`Checked ${formattedURIs}, no problems found`) :
@@ -326,4 +354,4 @@ export class DiagnosticToolOutput extends PromptElement<IDiagnosticToolOutputPro
 			)}
 		</>;
 	}
-}
+}
\ No newline at end of file
diff --git a/src/extension/tools/node/test/getErrorsTool.spec.tsx b/src/extension/tools/node/test/getErrorsTool.spec.tsx
index 071538a370..eee132c848 100644
--- a/src/extension/tools/node/test/getErrorsTool.spec.tsx
+++ b/src/extension/tools/node/test/getErrorsTool.spec.tsx
@@ -4,6 +4,8 @@
  *--------------------------------------------------------------------------------------------*/
 
 import { afterEach, beforeEach, expect, suite, test } from 'vitest';
+import { IFileSystemService } from '../../../../platform/filesystem/common/fileSystemService';
+import { MockFileSystemService } from '../../../../platform/filesystem/node/test/mockFileSystemService';
 import { ILanguageDiagnosticsService } from '../../../../platform/languages/common/languageDiagnosticsService';
 import { TestLanguageDiagnosticsService } from '../../../../platform/languages/common/testLanguageDiagnosticsService';
 import { IPromptPathRepresentationService } from '../../../../platform/prompts/common/promptPathRepresentationService';
@@ -25,9 +27,11 @@ suite('GetErrorsTool - Tool Invocation', () => {
 	let accessor: ITestingServicesAccessor;
 	let collection: TestingServiceCollection;
 	let diagnosticsService: TestLanguageDiagnosticsService;
+	let fileSystemService: MockFileSystemService;
 	let tool: GetErrorsTool;
 
 	const workspaceFolder = URI.file('/test/workspace');
+	const srcFolder = URI.file('/test/workspace/src');
 	const tsFile1 = URI.file('/test/workspace/src/file1.ts');
 	const tsFile2 = URI.file('/test/workspace/src/file2.ts');
 	const jsFile = URI.file('/test/workspace/lib/file.js');
@@ -50,6 +54,11 @@ suite('GetErrorsTool - Tool Invocation', () => {
 		diagnosticsService = new TestLanguageDiagnosticsService();
 		collection.define(ILanguageDiagnosticsService, diagnosticsService);
 
+		// Set up file system service to mock directories
+		fileSystemService = new MockFileSystemService();
+		fileSystemService.mockDirectory(srcFolder, []);
+		collection.define(IFileSystemService, fileSystemService);
+
 		accessor = collection.createTestingAccessor();
 
 		// Create the tool instance
@@ -125,8 +134,8 @@ suite('GetErrorsTool - Tool Invocation', () => {
 
 		// Should find diagnostics for files in the src folder
 		expect(results).toEqual([
-			{ uri: tsFile1, diagnostics: diagnosticsService.getDiagnostics(tsFile1).filter(d => d.severity <= DiagnosticSeverity.Warning) },
-			{ uri: tsFile2, diagnostics: diagnosticsService.getDiagnostics(tsFile2).filter(d => d.severity <= DiagnosticSeverity.Warning) }
+			{ uri: tsFile1, diagnostics: diagnosticsService.getDiagnostics(tsFile1).filter(d => d.severity <= DiagnosticSeverity.Warning), inputUri: srcFolder },
+			{ uri: tsFile2, diagnostics: diagnosticsService.getDiagnostics(tsFile2).filter(d => d.severity <= DiagnosticSeverity.Warning), inputUri: srcFolder }
 		]);
 	});
 
@@ -171,8 +180,8 @@ suite('GetErrorsTool - Tool Invocation', () => {
 
 		// Should only include tsFile1 and tsFile2, not infoHintOnlyFile (which has no Warning/Error)
 		expect(results).toEqual([
-			{ uri: tsFile1, diagnostics: diagnosticsService.getDiagnostics(tsFile1).filter(d => d.severity <= DiagnosticSeverity.Warning) },
-			{ uri: tsFile2, diagnostics: diagnosticsService.getDiagnostics(tsFile2).filter(d => d.severity <= DiagnosticSeverity.Warning) }
+			{ uri: tsFile1, diagnostics: diagnosticsService.getDiagnostics(tsFile1).filter(d => d.severity <= DiagnosticSeverity.Warning), inputUri: srcFolder },
+			{ uri: tsFile2, diagnostics: diagnosticsService.getDiagnostics(tsFile2).filter(d => d.severity <= DiagnosticSeverity.Warning), inputUri: srcFolder }
 		]);
 	});
 
diff --git a/src/platform/filesystem/node/test/mockFileSystemService.ts b/src/platform/filesystem/node/test/mockFileSystemService.ts
index ec169bd3ff..7e4ee4f44e 100644
--- a/src/platform/filesystem/node/test/mockFileSystemService.ts
+++ b/src/platform/filesystem/node/test/mockFileSystemService.ts
@@ -74,6 +74,9 @@ export class MockFileSystemService implements IFileSystemService {
 			const mtime = this.mockMtimes.get(uriString) ?? Date.now();
 			return { type: FileType.File as unknown as FileType, ctime: Date.now() - 1000, mtime, size: contents.length };
 		}
+		if (this.mockDirs.has(uriString)) {
+			return { type: FileType.Directory as unknown as FileType, ctime: Date.now() - 1000, mtime: Date.now(), size: 0 };
+		}
 		throw new Error('ENOENT');
 	}
 
@@ -93,6 +96,18 @@ export class MockFileSystemService implements IFileSystemService {
 		const uriString = uri.toString();
 		const text = new TextDecoder().decode(content);
 		this.mockFiles.set(uriString, text);
+
+		// add the file to the mock directory listing of its parent directory
+		const parentUri = uriString.substring(0, uriString.lastIndexOf('/'));
+		if (this.mockDirs.has(parentUri)) {
+			const entries = this.mockDirs.get(parentUri)!;
+			const fileName = uriString.substring(uriString.lastIndexOf('/') + 1);
+			if (!entries.find(e => e[0] === fileName)) {
+				entries.push([fileName, FileType.File]);
+			}
+		} else {
+			this.mockDirs.set(parentUri, [[uriString.substring(uriString.lastIndexOf('/') + 1), FileType.File]]);
+		}
 	}
 
 	async delete(uri: URI, options?: { recursive?: boolean; useTrash?: boolean }): Promise<void> {