diff --git a/package.json b/package.json
index 121adffe67..2e048810e4 100644
--- a/package.json
+++ b/package.json
@@ -711,6 +711,21 @@
 					"default": "on",
 					"markdownDescription": "%githubIssues.useBranchForIssues.markdownDescription%"
 				},
+				"githubIssues.workingBaseBranch": {
+					"type": "string",
+					"enum": [
+						"currentBranch",
+						"defaultBranch",
+						"prompt"
+					],
+					"enumDescriptions": [
+						"%githubIssues.workingBaseBranch.currentBranch%",
+						"%githubIssues.workingBaseBranch.defaultBranch%",
+						"%githubIssues.workingBaseBranch.prompt%"
+					],
+					"default": "currentBranch",
+					"markdownDescription": "%githubIssues.workingBaseBranch.markdownDescription%"
+				},
 				"githubIssues.issueCompletionFormatScm": {
 					"type": "string",
 					"default": "${issueTitle}\nFixes ${issueNumberLabel}",
diff --git a/package.nls.json b/package.nls.json
index 73c02b7684..becdc0583d 100644
--- a/package.nls.json
+++ b/package.nls.json
@@ -130,6 +130,15 @@
 	"githubIssues.useBranchForIssues.on": "A branch will always be checked out when you start working on an issue. If the branch doesn't exist, it will be created.",
 	"githubIssues.useBranchForIssues.off": "A branch will not be created when you start working on an issue. If you have worked on an issue before and a branch was created for it, that same branch will be checked out.",
 	"githubIssues.useBranchForIssues.prompt": "A prompt will show for setting the name of the branch that will be created and checked out.",
+	"githubIssues.workingBaseBranch.markdownDescription": {
+		"message": "Determines which branch to use as the base when creating a new branch for an issue. This setting controls what branch the new issue branch is created from.",
+		"comment": [
+			"Describes the base branch selection for issue branches"
+		]
+	},
+	"githubIssues.workingBaseBranch.currentBranch": "Create the issue branch from the current branch without switching to the default branch first.",
+	"githubIssues.workingBaseBranch.defaultBranch": "Always switch to the default branch before creating the issue branch.",
+	"githubIssues.workingBaseBranch.prompt": "Prompt which branch to use as the base when creating an issue branch.",
 	"githubIssues.issueCompletionFormatScm.markdownDescription": {
 		"message": "Sets the format of issue completions in the SCM inputbox. \n- `${user}` will be replace with the currently logged in username \n- `${issueNumber}` will be replaced with the current issue number \n- `${issueNumberLabel}` will be replaced with a label formatted as #number or owner/repository#number, depending on whether the issue is in the current repository",
 		"comment": [
diff --git a/src/@types/vscode.proposed.chatParticipantAdditions.d.ts b/src/@types/vscode.proposed.chatParticipantAdditions.d.ts
index 71520fa1ec..aa7001a3d2 100644
--- a/src/@types/vscode.proposed.chatParticipantAdditions.d.ts
+++ b/src/@types/vscode.proposed.chatParticipantAdditions.d.ts
@@ -105,6 +105,7 @@ declare module 'vscode' {
 		isComplete?: boolean;
 		toolSpecificData?: ChatTerminalToolInvocationData;
 		fromSubAgent?: boolean;
+		presentation?: 'hidden' | 'hiddenAfterComplete' | undefined;
 
 		constructor(toolName: string, toolCallId: string, isError?: boolean);
 	}
diff --git a/src/common/settingKeys.ts b/src/common/settingKeys.ts
index 1376c4c7bc..f1ec323578 100644
--- a/src/common/settingKeys.ts
+++ b/src/common/settingKeys.ts
@@ -49,6 +49,7 @@ export const IGNORE_USER_COMPLETION_TRIGGER = 'ignoreUserCompletionTrigger';
 export const CREATE_INSERT_FORMAT = 'createInsertFormat';
 export const ISSUE_BRANCH_TITLE = 'issueBranchTitle';
 export const USE_BRANCH_FOR_ISSUES = 'useBranchForIssues';
+export const WORKING_BASE_BRANCH = 'workingBaseBranch';
 export const WORKING_ISSUE_FORMAT_SCM = 'workingIssueFormatScm';
 export const IGNORE_COMPLETION_TRIGGER = 'ignoreCompletionTrigger';
 export const ISSUE_COMPLETION_FORMAT_SCM = 'issueCompletionFormatScm';
diff --git a/src/issues/issueFeatureRegistrar.ts b/src/issues/issueFeatureRegistrar.ts
index a4f253a57d..8acf1385e2 100644
--- a/src/issues/issueFeatureRegistrar.ts
+++ b/src/issues/issueFeatureRegistrar.ts
@@ -20,6 +20,7 @@ import {
 	ISSUE_COMPLETIONS,
 	ISSUES_SETTINGS_NAMESPACE,
 	USER_COMPLETIONS,
+	WORKING_BASE_BRANCH,
 } from '../common/settingKeys';
 import { editQuery } from '../common/settingsUtils';
 import { ITelemetry } from '../common/telemetry';
@@ -809,7 +810,7 @@ export class IssueFeatureRegistrar extends Disposable {
 		let githubRepository = issueModel.githubRepository;
 		let remote = issueModel.remote;
 		if (!repoManager) {
-			repoManager = await this.chooseRepo(vscode.l10n.t('Choose which repository you want to work on this isssue in.'));
+			repoManager = await this.chooseRepo(vscode.l10n.t('Choose which repository you want to work on this issue in.'));
 			if (!repoManager) {
 				return;
 			}
@@ -824,10 +825,40 @@ export class IssueFeatureRegistrar extends Disposable {
 			}
 		}
 
+		// Determine whether to checkout the default branch based on workingBaseBranch setting
+		const workingBaseBranchConfig = vscode.workspace.getConfiguration(ISSUES_SETTINGS_NAMESPACE).get<string>(WORKING_BASE_BRANCH);
+		let checkoutDefaultBranch = false;
+
+		if (workingBaseBranchConfig === 'defaultBranch') {
+			checkoutDefaultBranch = true;
+		} else if (workingBaseBranchConfig === 'prompt') {
+			const currentBranchName = repoManager.repository.state.HEAD?.name;
+			const defaults = await repoManager.getPullRequestDefaults();
+			const defaultBranchName = defaults.base;
+
+			if (!currentBranchName) {
+				// If we can't determine the current branch, default to the default branch
+				checkoutDefaultBranch = true;
+			} else if (currentBranchName === defaultBranchName) {
+				// If already on the default branch, no need to prompt
+				checkoutDefaultBranch = false;
+			} else {
+				const choice = await vscode.window.showQuickPick([currentBranchName, defaultBranchName], {
+					placeHolder: vscode.l10n.t('Which branch should be used as the base for the new issue branch?'),
+				});
+				if (choice === undefined) {
+					// User cancelled the prompt
+					return;
+				}
+				checkoutDefaultBranch = choice === defaultBranchName;
+			}
+		}
+		// else workingBaseBranchConfig === 'currentBranch', checkoutDefaultBranch remains false
+
 		await this._stateManager.setCurrentIssue(
 			repoManager,
 			new CurrentIssue(issueModel, repoManager, this._stateManager, remoteNameResult.remote, needsBranchPrompt),
-			true
+			checkoutDefaultBranch
 		);
 	}