diff --git a/packages/app/src/app.tsx b/packages/app/src/app.tsx
index d0678dc5369..1c3054b60a3 100644
--- a/packages/app/src/app.tsx
+++ b/packages/app/src/app.tsx
@@ -33,7 +33,7 @@ const Loading = () => <div class="size-full flex items-center justify-center tex
 
 declare global {
   interface Window {
-    __OPENCODE__?: { updaterEnabled?: boolean; serverPassword?: string }
+    __OPENCODE__?: { updaterEnabled?: boolean; serverPassword?: string; openLinksExternally?: boolean }
   }
 }
 
diff --git a/packages/app/src/context/layout.tsx b/packages/app/src/context/layout.tsx
index 385f564fa57..3d847415f24 100644
--- a/packages/app/src/context/layout.tsx
+++ b/packages/app/src/context/layout.tsx
@@ -68,6 +68,9 @@ export const { use: useLayout, provider: LayoutProvider } = createSimpleContext(
         },
         sessionTabs: {} as Record<string, SessionTabs>,
         sessionView: {} as Record<string, SessionView>,
+        links: {
+          openExternally: true,
+        },
       }),
     )
 
@@ -266,6 +269,13 @@ export const { use: useLayout, provider: LayoutProvider } = createSimpleContext(
       )
     })
 
+    // Sync openLinksExternally setting to window.__OPENCODE__ for desktop app
+    createEffect(() => {
+      const value = store.links?.openExternally ?? true
+      window.__OPENCODE__ ??= {}
+      window.__OPENCODE__.openLinksExternally = value
+    })
+
     return {
       ready,
       projects: {
@@ -343,6 +353,24 @@ export const { use: useLayout, provider: LayoutProvider } = createSimpleContext(
           setStore("mobileSidebar", "opened", (x) => !x)
         },
       },
+      links: {
+        openExternally: createMemo(() => store.links?.openExternally ?? true),
+        setOpenExternally(value: boolean) {
+          if (!store.links) {
+            setStore("links", { openExternally: value })
+            return
+          }
+          setStore("links", "openExternally", value)
+        },
+        toggle() {
+          const current = store.links?.openExternally ?? true
+          if (!store.links) {
+            setStore("links", { openExternally: !current })
+            return
+          }
+          setStore("links", "openExternally", !current)
+        },
+      },
       view(sessionKey: string) {
         touch(sessionKey)
         scroll.seed(sessionKey)
diff --git a/packages/app/src/pages/layout.tsx b/packages/app/src/pages/layout.tsx
index 39f397ac466..0384c602450 100644
--- a/packages/app/src/pages/layout.tsx
+++ b/packages/app/src/pages/layout.tsx
@@ -599,6 +599,12 @@ export default function Layout(props: ParentProps) {
         keybind: "mod+shift+t",
         onSelect: () => cycleTheme(1),
       },
+      {
+        id: "links.toggle-external",
+        title: layout.links.openExternally() ? "Open links in app" : "Open links in browser",
+        category: "Settings",
+        onSelect: () => layout.links.toggle(),
+      },
     ]
 
     for (const [id, definition] of availableThemeEntries()) {
@@ -1236,6 +1242,23 @@ export default function Layout(props: ParentProps) {
               <Show when={expanded()}>Share feedback</Show>
             </Button>
           </Tooltip>
+          <Show when={platform.platform === "desktop"}>
+            <Tooltip
+              placement="right"
+              value={layout.links.openExternally() ? "Links open in browser" : "Links open in app"}
+              inactive={expanded()}
+            >
+              <Button
+                class="flex w-full text-left justify-start text-text-base stroke-[1.5px] rounded-lg px-2"
+                variant="ghost"
+                size="large"
+                icon={layout.links.openExternally() ? "square-arrow-top-right" : "window-cursor"}
+                onClick={() => layout.links.toggle()}
+              >
+                <Show when={expanded()}>{layout.links.openExternally() ? "Links: Browser" : "Links: In-app"}</Show>
+              </Button>
+            </Tooltip>
+          </Show>
         </div>
       </div>
     )
diff --git a/packages/desktop/src/index.tsx b/packages/desktop/src/index.tsx
index f05a28e1488..eefb145ad47 100644
--- a/packages/desktop/src/index.tsx
+++ b/packages/desktop/src/index.tsx
@@ -292,12 +292,23 @@ root?.addEventListener("mousewheel", (e) => {
   e.stopPropagation()
 })
 
-// Handle external links - open in system browser instead of webview
-document.addEventListener("click", (e) => {
-  const link = (e.target as HTMLElement).closest("a.external-link") as HTMLAnchorElement | null
-  if (link?.href) {
+// Intercept all link clicks and open external URLs in system browser
+root?.addEventListener("click", (e) => {
+  const anchor = (e.target as HTMLElement).closest("a")
+  if (!anchor) return
+
+  const href = anchor.getAttribute("href")
+  if (!href) return
+
+  // Only intercept external URLs (http/https)
+  if (href.startsWith("http://") || href.startsWith("https://")) {
+    // Check if user wants to open links externally (default: true)
+    const openExternally = window.__OPENCODE__?.openLinksExternally ?? true
+    if (!openExternally) return
+
     e.preventDefault()
-    platform.openLink(link.href)
+    e.stopPropagation()
+    void shellOpen(href).catch(() => undefined)
   }
 })