diff --git a/core/index.d.ts b/core/index.d.ts
index 90039f02537..67c55ba1d58 100644
--- a/core/index.d.ts
+++ b/core/index.d.ts
@@ -497,7 +497,7 @@ export interface ChatHistoryItem {
   toolCallStates?: ToolCallState[];
   isGatheringContext?: boolean;
   reasoning?: Reasoning;
-  appliedRules?: RuleWithSource[];
+  appliedRules?: Omit<RuleWithSource, "rule">[];
   conversationSummary?: string;
 }
 
diff --git a/core/llm/rules/getSystemMessageWithRules.ts b/core/llm/rules/getSystemMessageWithRules.ts
index dc03ad43f1a..bf2b19d7019 100644
--- a/core/llm/rules/getSystemMessageWithRules.ts
+++ b/core/llm/rules/getSystemMessageWithRules.ts
@@ -324,7 +324,7 @@ export const getApplicableRules = (
   return applicableRules;
 };
 
-export function getRuleId(rule: RuleWithSource): string {
+export function getRuleId(rule: Omit<RuleWithSource, "rule">): string {
   return rule.slug ?? rule.ruleFile ?? rule.name ?? rule.source;
 }
 
@@ -342,9 +342,9 @@ export const getSystemMessageWithRules = ({
   rulePolicies?: RulePolicies;
 }): {
   systemMessage: string;
-  appliedRules: RuleWithSource[];
+  appliedRules: Omit<RuleWithSource, "rule">[];
 } => {
-  const appliedRules = getApplicableRules(
+  const rules = getApplicableRules(
     userMessage,
     availableRules,
     contextItems,
@@ -352,7 +352,7 @@ export const getSystemMessageWithRules = ({
   );
   let systemMessage = baseSystemMessage ?? "";
 
-  for (const rule of appliedRules) {
+  for (const rule of rules) {
     if (systemMessage) {
       systemMessage += "\n\n";
     }
@@ -361,6 +361,9 @@ export const getSystemMessageWithRules = ({
 
   return {
     systemMessage,
-    appliedRules,
+    appliedRules: rules.map(fullRule => {
+      const { rule, ...rest } = fullRule // destruct rule key
+      return rest;
+    }),
   };
 };
diff --git a/gui/src/components/mainInput/ContinueInputBox.tsx b/gui/src/components/mainInput/ContinueInputBox.tsx
index c731b761b86..b42057fab55 100644
--- a/gui/src/components/mainInput/ContinueInputBox.tsx
+++ b/gui/src/components/mainInput/ContinueInputBox.tsx
@@ -21,7 +21,7 @@ interface ContinueInputBoxProps {
   ) => void;
   editorState?: JSONContent;
   contextItems?: ContextItemWithId[];
-  appliedRules?: RuleWithSource[];
+  appliedRules?: Omit<RuleWithSource, "rule">[];
   hidden?: boolean;
   inputId: string; // used to keep track of things per input in redux
 }
diff --git a/gui/src/components/mainInput/Lump/sections/RulesSection.tsx b/gui/src/components/mainInput/Lump/sections/RulesSection.tsx
index 009fcb59bfb..32ffb022e4c 100644
--- a/gui/src/components/mainInput/Lump/sections/RulesSection.tsx
+++ b/gui/src/components/mainInput/Lump/sections/RulesSection.tsx
@@ -29,10 +29,33 @@ interface RuleCardProps {
   rule: RuleWithSource;
 }
 
+export const openRules = async (rule: Omit<RuleWithSource, "rule">) => {
+  const ideMessenger = useContext(IdeMessengerContext);
+  if (rule.slug) {
+    void ideMessenger.request("controlPlane/openUrl", {
+      path: `${rule.slug}/new-version`,
+      orgSlug: undefined,
+    });
+  } else if (rule.ruleFile) {
+    ideMessenger.post("openFile", {
+      path: rule.ruleFile,
+    });
+  } else if (
+    rule.source === "default-chat" ||
+    rule.source === "default-plan" ||
+    rule.source === "default-agent"
+  ) {
+    ideMessenger.post("openUrl", DEFAULT_SYSTEM_MESSAGES_URL);
+  } else {
+    ideMessenger.post("config/openProfile", {
+      profileId: undefined,
+      element: { sourceFile: (rule as any).sourceFile },
+    });
+  }
+};
+
 const RuleCard: React.FC<RuleCardProps> = ({ rule }) => {
   const dispatch = useAppDispatch();
-  const ideMessenger = useContext(IdeMessengerContext);
-  const mode = useAppSelector((store) => store.session.mode);
   const policy = useAppSelector((state) =>
     rule.name
       ? state.ui.ruleSettings[rule.name] || DEFAULT_RULE_SETTING
@@ -41,29 +64,6 @@ const RuleCard: React.FC<RuleCardProps> = ({ rule }) => {
 
   const isDisabled = policy === "off";
 
-  const handleOpen = async () => {
-    if (rule.slug) {
-      void ideMessenger.request("controlPlane/openUrl", {
-        path: `${rule.slug}/new-version`,
-        orgSlug: undefined,
-      });
-    } else if (rule.ruleFile) {
-      ideMessenger.post("openFile", {
-        path: rule.ruleFile,
-      });
-    } else if (
-      rule.source === "default-chat" ||
-      rule.source === "default-plan" ||
-      rule.source === "default-agent"
-    ) {
-      ideMessenger.post("openUrl", DEFAULT_SYSTEM_MESSAGES_URL);
-    } else {
-      ideMessenger.post("config/openProfile", {
-        profileId: undefined,
-        element: { sourceFile: (rule as any).sourceFile },
-      });
-    }
-  };
 
   const handleTogglePolicy = () => {
     if (rule.name) {
@@ -139,12 +139,12 @@ const RuleCard: React.FC<RuleCardProps> = ({ rule }) => {
                 <ArrowsPointingOutIcon className="h-3 w-3 text-gray-400" />
               </HeaderButtonWithToolTip>{" "}
               {rule.source === "default-chat" ||
-              rule.source === "default-agent" ? (
-                <HeaderButtonWithToolTip onClick={handleOpen} text="View">
+                rule.source === "default-agent" ? (
+                <HeaderButtonWithToolTip onClick={() => openRules(rule)} text="View">
                   <EyeIcon className="h-3 w-3 text-gray-400" />
                 </HeaderButtonWithToolTip>
               ) : (
-                <HeaderButtonWithToolTip onClick={handleOpen} text="Edit">
+                <HeaderButtonWithToolTip onClick={() => openRules(rule)} text="Edit">
                   <PencilIcon className="h-3 w-3 text-gray-400" />
                 </HeaderButtonWithToolTip>
               )}
diff --git a/gui/src/components/mainInput/belowMainInput/RulesPeek.tsx b/gui/src/components/mainInput/belowMainInput/RulesPeek.tsx
index 2dd29c13e0f..de981a2f9bc 100644
--- a/gui/src/components/mainInput/belowMainInput/RulesPeek.tsx
+++ b/gui/src/components/mainInput/belowMainInput/RulesPeek.tsx
@@ -1,20 +1,23 @@
 import { DocumentTextIcon, GlobeAltIcon } from "@heroicons/react/24/outline";
-import { RuleWithSource } from "core";
 import { getLastNPathParts } from "core/util/uri";
-import { ComponentType, useMemo, useState } from "react";
+import { ComponentType, useContext, useMemo } from "react";
 import ToggleDiv from "../../ToggleDiv";
+import { IdeMessengerContext } from "../../../context/IdeMessenger";
+import { DEFAULT_SYSTEM_MESSAGES_URL } from "core/llm/defaultSystemMessages";
+import { RuleWithSource } from "core";
+import { openRules } from "../Lump/sections/RulesSection";
 
 interface RulesPeekProps {
-  appliedRules?: RuleWithSource[];
+  appliedRules?: Omit<RuleWithSource, "rule">[];
   icon?: ComponentType<React.SVGProps<SVGSVGElement>>;
 }
 
 interface RulesPeekItemProps {
-  rule: RuleWithSource;
+  rule: Omit<RuleWithSource, "rule">;
 }
 
 // Convert technical source to user-friendly text
-const getSourceLabel = (rule: RuleWithSource): string => {
+const getSourceLabel = (rule: Omit<RuleWithSource, "rule">): string => {
   switch (rule.source) {
     case "default-chat":
       return "Default Chat";
@@ -45,29 +48,11 @@ const getSourceLabel = (rule: RuleWithSource): string => {
 
 export function RulesPeekItem({ rule }: RulesPeekItemProps) {
   const isGlobal = rule.alwaysApply ?? !rule.globs;
-  const [expanded, setExpanded] = useState(false);
-
-  // Define maximum length for rule text display
-  const maxRuleLength = 100;
-  const isRuleLong = rule.rule.length > maxRuleLength;
-
-  // Get the displayed rule text based on expanded state
-  const displayedRule =
-    isRuleLong && !expanded
-      ? `${rule.rule.slice(0, maxRuleLength)}...`
-      : rule.rule;
-
-  const toggleExpand = () => {
-    if (isRuleLong) {
-      setExpanded(!expanded);
-    }
-  };
-
   return (
     <div
-      className={`group mr-2 flex flex-col overflow-hidden rounded px-1.5 py-1 text-xs hover:bg-white/10 ${isRuleLong ? "cursor-pointer hover:text-gray-200" : ""}`}
+      className={`group mr-2 flex flex-col overflow-hidden rounded px-1.5 py-1 text-xs hover:bg-white/10`}
       data-testid="rules-peek-item"
-      onClick={toggleExpand}
+      onClick={() => openRules(rule)}
     >
       <div className="flex w-full items-center">
         {isGlobal ? (
@@ -88,19 +73,6 @@ export function RulesPeekItem({ rule }: RulesPeekItemProps) {
           </div>
         </div>
       </div>
-      <div
-        className={`mt-1 whitespace-pre-line pl-6 pr-2 text-xs italic text-gray-300`}
-        title={
-          isRuleLong ? (expanded ? "Click to collapse" : "Click to expand") : ""
-        }
-      >
-        {displayedRule}
-        {isRuleLong && (
-          <span className="text-description-muted ml-1 opacity-0 transition-opacity group-hover:opacity-100">
-            {expanded ? "(collapse)" : "(expand)"}
-          </span>
-        )}
-      </div>
       <div className="mt-1 pl-6 pr-2 text-xs text-gray-500">
         Source: {getSourceLabel(rule)}
       </div>
diff --git a/gui/src/redux/slices/sessionSlice.ts b/gui/src/redux/slices/sessionSlice.ts
index 3ec2fe27b87..b5e9d0c4751 100644
--- a/gui/src/redux/slices/sessionSlice.ts
+++ b/gui/src/redux/slices/sessionSlice.ts
@@ -503,7 +503,7 @@ export const sessionSlice = createSlice({
         payload,
       }: PayloadAction<{
         index: number;
-        appliedRules: RuleWithSource[];
+        appliedRules: Omit<RuleWithSource, "rule">[];
       }>,
     ) => {
       if (state.history[payload.index]) {
diff --git a/gui/src/redux/thunks/streamNormalInput.ts b/gui/src/redux/thunks/streamNormalInput.ts
index 218883cb919..81ea66e85e2 100644
--- a/gui/src/redux/thunks/streamNormalInput.ts
+++ b/gui/src/redux/thunks/streamNormalInput.ts
@@ -282,7 +282,7 @@ export const streamNormalInput = createAsyncThunk<
             ...(appliedRules.length > 0 && {
               rules: appliedRules.map((rule) => ({
                 id: getRuleId(rule),
-                rule: rule.rule,
+                rule: "", // TODO: remove rule key from type. The contents should be present in the prompt
                 slug: rule.slug,
               })),
             }),
diff --git a/gui/src/redux/util/constructMessages.ts b/gui/src/redux/util/constructMessages.ts
index f75eb8b4997..90a5877443e 100644
--- a/gui/src/redux/util/constructMessages.ts
+++ b/gui/src/redux/util/constructMessages.ts
@@ -34,7 +34,7 @@ export function constructMessages(
   useSystemToolsFramework?: SystemMessageToolsFramework,
 ): {
   messages: ChatMessage[];
-  appliedRules: RuleWithSource[];
+  appliedRules: Omit<RuleWithSource, "rule">[];
   appliedRuleIndex: number;
 } {
   // Find the most recent conversation summary and filter history accordingly