diff --git a/src/smarttools/ui_urwid.py b/src/smarttools/ui_urwid.py
index 7f44ed1..728dcbe 100644
--- a/src/smarttools/ui_urwid.py
+++ b/src/smarttools/ui_urwid.py
@@ -1486,40 +1486,53 @@ class SmartToolsUI:
             'button', 'button_focus'
         )
 
-        adjust_instruction = urwid.Edit(('label', ""), "")
+        # Default prompt template for AI code generation/adjustment
+        default_ai_prompt = f"""Modify or generate Python code according to my instruction below.
 
-        def on_auto_adjust(_):
-            instruction = adjust_instruction.edit_text.strip()
-            if not instruction:
-                status_text.set_text(('error', "Enter an instruction for the AI"))
-                return
-
-            current_code = code_edit.edit_text.strip()
-            if not current_code:
-                status_text.set_text(('error', "No code to adjust"))
-                return
-
-            provider_name = selected_ai_provider[0]
-            status_text.set_text(('label', f"Calling {provider_name}..."))
-            self.refresh()
-
-            prompt = f"""Modify the following Python code according to this instruction:
-
-INSTRUCTION: {instruction}
+INSTRUCTION: [Describe what you want]
 
 CURRENT CODE:
 ```python
-{current_code}
+{{code}}
 ```
 
 AVAILABLE VARIABLES: {', '.join(vars_available)}
 
-Return ONLY the modified Python code, no explanations or markdown fencing."""
+Return ONLY the Python code, no explanations or markdown fencing."""
+
+        # Multiline editable prompt for AI
+        ai_prompt_edit = TabPassEdit(edit_text=default_ai_prompt, multiline=True)
+        ai_prompt_styled = urwid.AttrMap(ai_prompt_edit, 'edit', 'edit_focus')
+        ai_prompt_walker = urwid.SimpleFocusListWalker([ai_prompt_styled])
+        ai_prompt_listbox = urwid.ListBox(ai_prompt_walker)
+        ai_prompt_box = urwid.LineBox(ai_prompt_listbox, title="Prompt")
+
+        # Output/feedback area for AI responses
+        ai_output_text = urwid.Text("")
+        ai_output_walker = urwid.SimpleFocusListWalker([ai_output_text])
+        ai_output_listbox = urwid.ListBox(ai_output_walker)
+        ai_output_box = urwid.LineBox(ai_output_listbox, title="Output & Feedback")
+
+        def on_auto_adjust(_):
+            prompt_template = ai_prompt_edit.edit_text.strip()
+            if not prompt_template:
+                ai_output_text.set_text(('error', "Enter a prompt for the AI"))
+                return
+
+            current_code = code_edit.edit_text.strip()
+
+            # Replace {code} placeholder with actual code
+            prompt = prompt_template.replace("{code}", current_code)
+
+            provider_name = selected_ai_provider[0]
+            ai_output_text.set_text(('label', f"Calling {provider_name}...\nPlease wait..."))
+            self.refresh()
 
             result = call_provider(provider_name, prompt)
 
             if result.success:
                 new_code = result.text.strip()
+                # Strip markdown code fences if present
                 if new_code.startswith("```python"):
                     new_code = new_code[9:]
                 if new_code.startswith("```"):
@@ -1529,14 +1542,31 @@ Return ONLY the modified Python code, no explanations or markdown fencing."""
                 new_code = new_code.strip()
 
                 code_edit.set_edit_text(new_code)
-                status_text.set_text(('success', "Code updated by AI"))
+                ai_output_text.set_text(('success', f"✓ Code updated successfully!\n\nProvider: {provider_name}\nResponse length: {len(result.text)} chars"))
             else:
-                status_text.set_text(('error', f"AI error: {result.error[:50]}"))
+                error_msg = result.error or "Unknown error"
+                ai_output_text.set_text(('error', f"✗ Error from {provider_name}:\n\n{error_msg}"))
 
         auto_adjust_btn = urwid.AttrMap(
             urwid.Button("Auto-adjust", on_auto_adjust),
             'button', 'button_focus'
         )
+
+        # Build the AI assist box with provider selector, prompt editor, output area, and button
+        ai_provider_row = urwid.Columns([
+            ('pack', urwid.Text(('label', "Provider: "))),
+            ('pack', ai_provider_btn),
+            ('pack', ai_provider_select_btn),
+        ])
+
+        ai_assist_content = urwid.Pile([
+            ('pack', ai_provider_row),
+            ('pack', urwid.Divider()),
+            ('weight', 2, ai_prompt_box),
+            ('weight', 1, ai_output_box),
+            ('pack', urwid.Padding(auto_adjust_btn, align='center', width=16)),
+        ])
+        ai_assist_box = urwid.LineBox(ai_assist_content, title="AI Assisted Auto-adjust")
         # --- End Auto-adjust feature ---
 
         def do_load():
@@ -1624,15 +1654,11 @@ Return ONLY the modified Python code, no explanations or markdown fencing."""
         code_scrollbar = DOSScrollBar(code_listbox)
         code_box = urwid.LineBox(code_scrollbar, title="Code")
 
-        # Auto-adjust row
-        auto_adjust_row = urwid.Columns([
-            ('pack', ai_provider_btn),
-            ('pack', ai_provider_select_btn),
-            ('pack', urwid.Text(" ")),
-            ('weight', 1, urwid.AttrMap(adjust_instruction, 'edit', 'edit_focus')),
-            ('pack', urwid.Text(" ")),
-            ('pack', auto_adjust_btn),
-        ])
+        # Layout: Code editor on left, AI assist box on right
+        main_columns = urwid.Columns([
+            ('weight', 1, code_box),
+            ('weight', 1, ai_assist_box),
+        ], dividechars=1)
 
         # Use TabCyclePile so Tab cycles between sections
         # Note: All flow widgets must be explicitly wrapped in ('pack', ...) when
@@ -1646,16 +1672,14 @@ Return ONLY the modified Python code, no explanations or markdown fencing."""
                 ('pack', load_btn),
             ])),
             ('pack', status_text),
-            ('weight', 1, code_box),
-            ('pack', urwid.Divider()),
-            ('pack', auto_adjust_row),
+            ('weight', 1, main_columns),
             ('pack', urwid.Divider()),
             ('pack', urwid.AttrMap(output_edit, 'edit', 'edit_focus')),
-        ], tab_positions=[2, 4, 6, 8])
+        ], tab_positions=[2, 4, 6])
 
         title = "Edit Code Step" if existing else "Add Code Step"
         dialog = Dialog(title, body, [("OK", on_ok), ("Cancel", on_cancel)])
-        self.show_overlay(dialog, width=70, height=24)
+        self.show_overlay(dialog, width=90, height=30)
 
     def _on_save_tool(self, _):
         """Save the tool."""