diff --git a/ui/desktop/src/components/settings/extensions/ExtensionsSection.tsx b/ui/desktop/src/components/settings/extensions/ExtensionsSection.tsx
index 251a96939eaa..609f46e52c3a 100644
--- a/ui/desktop/src/components/settings/extensions/ExtensionsSection.tsx
+++ b/ui/desktop/src/components/settings/extensions/ExtensionsSection.tsx
@@ -1,4 +1,4 @@
-import { useEffect, useState, useCallback } from 'react';
+import { useEffect, useState, useCallback, useMemo } from 'react';
 import { Button } from '../../ui/button';
 import { Plus } from 'lucide-react';
 import { GPSIcon } from '../../ui/icons';
@@ -33,8 +33,7 @@ export default function ExtensionsSection({
   customToggle,
   selectedExtensions = [],
 }: ExtensionSectionProps) {
-  const { getExtensions, addExtension, removeExtension } = useConfig();
-  const [extensions, setExtensions] = useState<FixedExtensionEntry[]>([]);
+  const { getExtensions, addExtension, removeExtension, extensionsList } = useConfig();
   const [selectedExtension, setSelectedExtension] = useState<FixedExtensionEntry | null>(null);
   const [isModalOpen, setIsModalOpen] = useState(false);
   const [isAddModalOpen, setIsAddModalOpen] = useState(false);
@@ -51,19 +50,11 @@ export default function ExtensionsSection({
     setShowEnvVarsStateVar(showEnvVars);
   }, [deepLinkConfig, showEnvVars]);
 
-  // Reset deep link state when component is re-mounted (via key prop changes)
-  useEffect(() => {
-    return () => {
-      // Cleanup function to reset state when component unmounts
-      setDeepLinkConfigStateVar(null);
-      setShowEnvVarsStateVar(null);
-    };
-  }, []);
+  // Process extensions from context - this automatically updates when extensionsList changes
+  const extensions = useMemo(() => {
+    if (extensionsList.length === 0) return [];
 
-  const fetchExtensions = useCallback(async () => {
-    const extensionsList = await getExtensions(true); // Force refresh
-    // Sort extensions by name to maintain consistent order
-    const sortedExtensions = [...extensionsList]
+    return [...extensionsList]
       .sort((a, b) => {
         // First sort by builtin
         if (a.type === 'builtin' && b.type !== 'builtin') return -1;
@@ -83,24 +74,15 @@ export default function ExtensionsSection({
         // Use selectedExtensions to determine enabled state in recipe editor
         enabled: disableConfiguration ? selectedExtensions.includes(ext.name) : ext.enabled,
       }));
+  }, [extensionsList, disableConfiguration, selectedExtensions]);
 
-    setExtensions(sortedExtensions);
-  }, [getExtensions, disableConfiguration, selectedExtensions]);
-
-  useEffect(() => {
-    fetchExtensions();
-    // eslint-disable-next-line react-hooks/exhaustive-deps
-  }, []);
+  const fetchExtensions = useCallback(async () => {
+    await getExtensions(true); // Force refresh - this will update the context
+  }, [getExtensions]);
 
   const handleExtensionToggle = async (extension: FixedExtensionEntry) => {
     if (customToggle) {
       await customToggle(extension);
-      // After custom toggle, update the local state to reflect the change
-      setExtensions((prevExtensions) =>
-        prevExtensions.map((ext) =>
-          ext.name === extension.name ? { ...ext, enabled: !ext.enabled } : ext
-        )
-      );
       return true;
     }
 
diff --git a/ui/desktop/src/components/settings/extensions/agent-api.ts b/ui/desktop/src/components/settings/extensions/agent-api.ts
index 752e86d382fd..a807e140a53b 100644
--- a/ui/desktop/src/components/settings/extensions/agent-api.ts
+++ b/ui/desktop/src/components/settings/extensions/agent-api.ts
@@ -14,18 +14,20 @@ interface ApiResponse {
 export async function extensionApiCall(
   endpoint: string,
   payload: ExtensionConfig | string,
-  options: ToastServiceOptions = {}
+  options: ToastServiceOptions & { isDelete?: boolean } = {}
 ): Promise<Response> {
   // Configure toast notifications
   toastService.configure(options);
 
-  // Determine if we're activating or removing an extension
+  // Determine if we're activating, deactivating, or removing an extension
   const isActivating = endpoint == '/extensions/add';
+  const isRemoving = options.isDelete === true;
+
   const action = {
-    type: isActivating ? 'activating' : 'removing',
-    verb: isActivating ? 'Activating' : 'Removing',
-    pastTense: isActivating ? 'activated' : 'removed',
-    presentTense: isActivating ? 'activate' : 'remove',
+    type: isActivating ? 'activating' : isRemoving ? 'removing' : 'deactivating',
+    verb: isActivating ? 'Activating' : isRemoving ? 'Removing' : 'Deactivating',
+    pastTense: isActivating ? 'activated' : isRemoving ? 'removed' : 'deactivated',
+    presentTense: isActivating ? 'activate' : isRemoving ? 'remove' : 'deactivate',
   };
 
   // for adding the payload is an extensionConfig, for removing payload is just the name
@@ -71,7 +73,7 @@ export async function extensionApiCall(
     toastService.dismiss(toastId);
     toastService.success({
       title: extensionName,
-      msg: `Successfully ${action.pastTense} extension!`,
+      msg: `Successfully ${action.pastTense} extension`,
     });
     return response;
   } catch (error) {
@@ -114,7 +116,7 @@ function handleErrorResponse(
   }
 
   // General error case
-  const msg = `Failed to ${action.type === 'activating' ? 'add' : 'remove'} ${extensionName} extension: ${errorMsg}`;
+  const msg = `Failed to ${action.type === 'activating' ? 'add' : action.type === 'removing' ? 'remove' : 'deactivate'} ${extensionName} extension: ${errorMsg}`;
   toastService.dismiss(toastId);
   toastService.error({
     title: extensionName,
@@ -168,12 +170,13 @@ export async function addToAgent(
  */
 export async function removeFromAgent(
   name: string,
-  options: ToastServiceOptions = {}
+  options: ToastServiceOptions & { isDelete?: boolean } = {}
 ): Promise<Response> {
   try {
     return await extensionApiCall('/extensions/remove', sanitizeName(name), options);
   } catch (error) {
-    console.error(`Failed to remove extension ${name} from agent:`, error);
+    const action = options.isDelete ? 'remove' : 'deactivate';
+    console.error(`Failed to ${action} extension ${name} from agent:`, error);
     throw error;
   }
 }
diff --git a/ui/desktop/src/components/settings/extensions/extension-manager.ts b/ui/desktop/src/components/settings/extensions/extension-manager.ts
index 6550401b5fe2..3f97af174f4e 100644
--- a/ui/desktop/src/components/settings/extensions/extension-manager.ts
+++ b/ui/desktop/src/components/settings/extensions/extension-manager.ts
@@ -336,7 +336,7 @@ export async function deleteExtension({ name, removeFromConfig }: DeleteExtensio
   // remove from agent
   let agentRemoveError = null;
   try {
-    await removeFromAgent(name);
+    await removeFromAgent(name, { isDelete: true });
   } catch (error) {
     console.error('Failed to remove extension from agent during deletion:', error);
     agentRemoveError = error;