diff --git a/docs/nav/development/release-notes.md b/docs/nav/development/release-notes.md
index 483296c..db86497 100644
--- a/docs/nav/development/release-notes.md
+++ b/docs/nav/development/release-notes.md
@@ -1,5 +1,10 @@
 # Release Notes
 
+## v0.4.1
+
+- [📦 Marketplace - Build 0.4.1](https://marketplace.visualstudio.com/items?itemName=fernandocelmer.pycodeloop)
+- [🪲 Bug: Honor the active editor's folder in multi-root workspaces (#25)](https://github.com/dotflow-io/vscodeloop/pull/25)
+
 ## v0.4.0
 
 - [📦 Marketplace - Build 0.4.0](https://marketplace.visualstudio.com/items?itemName=fernandocelmer.pycodeloop)
diff --git a/package-lock.json b/package-lock.json
index a991051..aa053a8 100644
--- a/package-lock.json
+++ b/package-lock.json
@@ -1,12 +1,12 @@
 {
   "name": "pycodeloop",
-  "version": "0.4.0",
+  "version": "0.4.1",
   "lockfileVersion": 3,
   "requires": true,
   "packages": {
     "": {
       "name": "pycodeloop",
-      "version": "0.4.0",
+      "version": "0.4.1",
       "license": "MIT",
       "devDependencies": {
         "@eslint/js": "^9.39.5",
diff --git a/package.json b/package.json
index 1b1c00d..5fa03fc 100644
--- a/package.json
+++ b/package.json
@@ -2,7 +2,7 @@
   "name": "pycodeloop",
   "displayName": "CodeLoop — AI Coding Agent",
   "description": "Agentic AI coding assistant in your VS Code sidebar — chat with Anthropic Claude, OpenAI, Gemini, Grok, Groq, AWS Bedrock, Moonshot Kimi, DeepSeek, Together AI Llama, Alibaba Qwen, NVIDIA NIM, or a local Ollama/LM Studio model to read, edit, and run code in your workspace.",
-  "version": "0.4.0",
+  "version": "0.4.1",
   "publisher": "fernandocelmer",
   "repository": {
     "type": "git",
diff --git a/src/services/settings.service.ts b/src/services/settings.service.ts
index a1869da..162dc1e 100644
--- a/src/services/settings.service.ts
+++ b/src/services/settings.service.ts
@@ -42,5 +42,10 @@ export function updateSetting<K extends keyof PycodeloopSettings>(
 }
 
 export function currentWorkspaceFolder(): string {
+  const activeUri = vscode.window.activeTextEditor?.document.uri;
+  const activeFolder = activeUri && vscode.workspace.getWorkspaceFolder(activeUri);
+  if (activeFolder) {
+    return activeFolder.uri.fsPath;
+  }
   return vscode.workspace.workspaceFolders?.[0]?.uri.fsPath ?? process.cwd();
 }