diff --git a/apps/code/src/renderer/features/sidebar/components/TaskListView.tsx b/apps/code/src/renderer/features/sidebar/components/TaskListView.tsx
index b8cec1f3e..83ed3b892 100644
--- a/apps/code/src/renderer/features/sidebar/components/TaskListView.tsx
+++ b/apps/code/src/renderer/features/sidebar/components/TaskListView.tsx
@@ -30,6 +30,7 @@ import { Fragment, useCallback, useEffect, useMemo } from "react";
 import type { TaskData, TaskGroup } from "../hooks/useSidebarData";
 import { useTaskPrStatus } from "../hooks/useTaskPrStatus";
 import { useSidebarStore } from "../stores/sidebarStore";
+import { getNewTaskTarget } from "../utils/getNewTaskTarget";
 import { DraggableFolder } from "./DraggableFolder";
 import { TaskItem } from "./items/TaskItem";
 import { SidebarSection } from "./SidebarSection";
@@ -418,11 +419,12 @@ export function TaskListView({
                     addSpacingBefore={false}
                     tooltipContent={folder?.path ?? group.id}
                     onNewTask={() => {
-                      if (groupFolderId) {
-                        navigateToTaskInput(groupFolderId);
-                      } else {
-                        navigateToTaskInput();
-                      }
+                      navigateToTaskInput(
+                        getNewTaskTarget({
+                          groupFolderId,
+                          groupId: group.id,
+                        }),
+                      );
                     }}
                     newTaskTooltip={`Start new task in ${folder?.name ?? group.name}`}
                   >
diff --git a/apps/code/src/renderer/features/sidebar/utils/getNewTaskTarget.test.ts b/apps/code/src/renderer/features/sidebar/utils/getNewTaskTarget.test.ts
new file mode 100644
index 000000000..dbe2dc7e8
--- /dev/null
+++ b/apps/code/src/renderer/features/sidebar/utils/getNewTaskTarget.test.ts
@@ -0,0 +1,34 @@
+import { describe, expect, it } from "vitest";
+import { getNewTaskTarget } from "./getNewTaskTarget";
+
+describe("getNewTaskTarget", () => {
+  it.each([
+    {
+      name: "returns the folder id when the group has a matching local folder",
+      args: { groupFolderId: "folder-1", groupId: "posthog/code" },
+      expected: "folder-1",
+    },
+    {
+      name: "returns initialCloudRepository for a cloud-only group with no local folder",
+      args: { groupFolderId: undefined, groupId: "posthog/code" },
+      expected: { initialCloudRepository: "posthog/code" },
+    },
+    {
+      name: "returns undefined for the catch-all 'other' group with no folder id",
+      args: { groupFolderId: undefined, groupId: "other" },
+      expected: undefined,
+    },
+    {
+      name: "returns undefined when groupId is empty and no folder id is set",
+      args: { groupFolderId: undefined, groupId: "" },
+      expected: undefined,
+    },
+    {
+      name: "prefers the folder id even when groupId looks like a cloud repo",
+      args: { groupFolderId: "folder-7", groupId: "posthog/posthog" },
+      expected: "folder-7",
+    },
+  ])("$name", ({ args, expected }) => {
+    expect(getNewTaskTarget(args)).toEqual(expected);
+  });
+});
diff --git a/apps/code/src/renderer/features/sidebar/utils/getNewTaskTarget.ts b/apps/code/src/renderer/features/sidebar/utils/getNewTaskTarget.ts
new file mode 100644
index 000000000..b102ca882
--- /dev/null
+++ b/apps/code/src/renderer/features/sidebar/utils/getNewTaskTarget.ts
@@ -0,0 +1,12 @@
+import type { TaskInputNavigationOptions } from "@stores/navigationStore";
+
+export function getNewTaskTarget(args: {
+  groupFolderId?: string;
+  groupId: string;
+}): string | TaskInputNavigationOptions | undefined {
+  if (args.groupFolderId) return args.groupFolderId;
+  if (args.groupId && args.groupId !== "other") {
+    return { initialCloudRepository: args.groupId };
+  }
+  return undefined;
+}
diff --git a/apps/code/src/renderer/stores/navigationStore.ts b/apps/code/src/renderer/stores/navigationStore.ts
index 47ca4f1f9..ada0146ed 100644
--- a/apps/code/src/renderer/stores/navigationStore.ts
+++ b/apps/code/src/renderer/stores/navigationStore.ts
@@ -27,7 +27,7 @@ export interface TaskInputReportAssociation {
   title: string;
 }
 
-interface TaskInputNavigationOptions {
+export interface TaskInputNavigationOptions {
   folderId?: string;
   initialPrompt?: string;
   initialCloudRepository?: string;