diff --git a/docs/features/chat-conversations/chat-features/code-execution/index.md b/docs/features/chat-conversations/chat-features/code-execution/index.md
index fffb88a6..c9d40ee9 100644
--- a/docs/features/chat-conversations/chat-features/code-execution/index.md
+++ b/docs/features/chat-conversations/chat-features/code-execution/index.md
@@ -54,8 +54,9 @@ If you are running a multi-user or organizational deployment, **Jupyter is not r
 - **Full shell access** — models can install packages, run scripts in any language, use system tools like ffmpeg, git, curl, etc.
 - **Container isolation** — runs in its own Docker container, separate from Open WebUI and other services.
 - **Rich pre-installed toolset** — the Docker image comes with Python 3.12, data science libraries, build tools, networking utilities, and more.
+- **Built-in file browser** — browse, preview, create, delete, upload, and download files directly from the chat controls panel.
 
-Open Terminal is connected to Open WebUI as an easy to connect [OpenAPI Tool Server](/features/extensibility/plugin/tools/openapi-servers/open-webui), not as a built-in code execution engine.
+Open Terminal can be connected to Open WebUI as a [native integration](/features/extensibility/open-terminal#native-integration-recommended) via **Settings → Integrations** (recommended) or as a generic [OpenAPI Tool Server](/features/extensibility/plugin/tools/openapi-servers/open-webui). When using the native integration, Open Terminal endpoints are automatically injected as always-on tools into every chat.
 
 :::note
 Open Terminal currently operates as a **single shared instance** — there is no automatic per-user container provisioning yet. Each user connects to the same container unless separate instances are deployed manually.
@@ -72,7 +73,7 @@ Open Terminal currently operates as a **single shared instance** — there is no
 | **Isolation** | ✅ Browser sandbox | ❌ Shared environment | ✅ Container-level (when using Docker) |
 | **Multi-user safety** | ✅ Per-user by design | ⚠️ Not isolated | ⚠️ Single instance (per-user containers planned) |
 | **File generation** | ❌ Very limited | ✅ Full support | ✅ Full support with upload/download |
-| **Setup** | None (built-in) | Admin configures globally | Each user adds as a Tool Server |
+| **Setup** | None (built-in) | Admin configures globally | Native integration via Settings → Integrations, or as a Tool Server |
 | **Recommended for orgs** | ✅ Safe default | ❌ Not without isolation | ✅ Per-user by design |
 | **Enterprise scalability** | ✅ Client-side, no server load | ❌ Single shared instance | ⚠️ Manual per-user instances |
 
diff --git a/docs/features/extensibility/open-terminal/index.md b/docs/features/extensibility/open-terminal/index.md
index 6332c6ce..9fb3f5d0 100644
--- a/docs/features/extensibility/open-terminal/index.md
+++ b/docs/features/extensibility/open-terminal/index.md
@@ -189,11 +189,13 @@ When a terminal is connected, the chat controls panel gains a **Files** tab:
 
 - **Browse** directories on the remote terminal filesystem
 - **Preview** text files, images, and PDFs inline
+- **Create folders** using the new folder button in the breadcrumb bar
+- **Delete** files and folders via the context menu (⋯) on each entry
 - **Download** any file to your local machine
 - **Upload** files by dragging and dropping them onto the directory listing
 - **Attach** files to the current chat by downloading them through the file browser
 
-The file browser remembers your last-visited directory between panel open/close cycles.
+The file browser remembers your last-visited directory between panel open/close cycles and automatically syncs the terminal's working directory to match.
 
 ### Generic OpenAPI Tool Server
 
@@ -578,6 +580,70 @@ curl "http://localhost:8000/files/glob?pattern=*.py&path=/home/user/project&type
 }
 ```
 
+#### Create a Directory
+
+**`POST /files/mkdir`**
+
+Creates a directory at the specified path. Parent directories are created automatically if they don't exist.
+
+**Request body:**
+
+| Field | Type | Description |
+| :--- | :--- | :--- |
+| `path` | string | Path of the directory to create. |
+
+```bash
+curl -X POST http://localhost:8000/files/mkdir \
+  -H "Authorization: Bearer <api-key>" \
+  -H "Content-Type: application/json" \
+  -d '{"path": "/home/user/project/src"}'
+```
+
+```json
+{"path": "/home/user/project/src"}
+```
+
+#### Delete a File or Directory
+
+**`DELETE /files/delete`**
+
+Deletes a file or directory. Directories are removed recursively.
+
+| Parameter | Type | Description |
+| :--- | :--- | :--- |
+| `path` | string | Path to the file or directory to delete. |
+
+```bash
+curl -X DELETE "http://localhost:8000/files/delete?path=/home/user/old-file.txt" \
+  -H "Authorization: Bearer <api-key>"
+```
+
+```json
+{"path": "/home/user/old-file.txt", "type": "file"}
+```
+
+#### Get or Set Working Directory
+
+**`GET /files/cwd`** — Returns the server's current working directory.
+
+**`POST /files/cwd`** — Changes the server's working directory.
+
+```bash
+# Get current working directory
+curl "http://localhost:8000/files/cwd" \
+  -H "Authorization: Bearer <api-key>"
+
+# Set working directory
+curl -X POST http://localhost:8000/files/cwd \
+  -H "Authorization: Bearer <api-key>" \
+  -H "Content-Type: application/json" \
+  -d '{"path": "/home/user/project"}'
+```
+
+```json
+{"cwd": "/home/user/project"}
+```
+
 ### File Transfer
 
 #### Upload a File
diff --git a/docs/features/extensibility/plugin/tools/index.mdx b/docs/features/extensibility/plugin/tools/index.mdx
index b9e1c1dd..462c81b6 100644
--- a/docs/features/extensibility/plugin/tools/index.mdx
+++ b/docs/features/extensibility/plugin/tools/index.mdx
@@ -22,6 +22,7 @@ Because there are several ways to integrate "Tools" in Open WebUI, it's importan
 | **Native MCP (HTTP)** | `Settings > Connections` | Standard MCP servers reachable via HTTP/SSE | External MCP Servers |
 | **MCP via Proxy (MCPO)** | `Settings > Connections` | Local stdio-based MCP servers (e.g., Claude Desktop tools) | [MCPO Adapter](https://github.com/open-webui/mcpo) |
 | **OpenAPI Servers** | `Settings > Connections` | Standard REST/OpenAPI web services | External Web APIs |
+| **Open Terminal** | `Settings > Integrations` | Full shell access in an isolated Docker container (always-on) | [Open Terminal](https://github.com/open-webui/open-terminal) |
 
 ### 1. Native Features (Built-in)
 These are deeply integrated into Open WebUI and generally don't require external scripts.