diff --git a/README.md b/README.md
index 518e757..3a7532c 100644
--- a/README.md
+++ b/README.md
@@ -217,6 +217,7 @@ Additional useful commands are implemented through hooks (see below).
 | `PrtProvider <provider>`  | Switch the provider (empty arg triggers fzf)  |
 | `PrtModel <model>`        | Switch the model (empty arg triggers fzf)     |
 | `PrtStatus`               | Prints current provider and model selection   |
+| `PrtThinking`             | Toggle or configure thinking mode for supported providers    |
 |  __Interactive__          | |
 | `PrtRewrite`              | Rewrites the visual selection based on a provided prompt |
 | `PrtEdit`                 | Like `PrtRewrite` but you can change the last prompt |
@@ -549,6 +550,18 @@ sources = cmp.config.sources({
 ...
 ```
 
+## Thinking Mode
+
+The `PrtThinking` command allows you to toggle or configure the "thinking" feature for providers that support it:
+
+- `PrtThinking` - Toggle thinking on/off (default budget: 1024 tokens)
+- `PrtThinking 2048` - Enable thinking with a specific budget of 2048 tokens
+- `PrtThinking status` - Show current thinking settings
+
+The thinking feature allows models to show their intermediate reasoning steps in a popup window
+before providing a final response. Currently, this is fully implemented for the Anthropic provider,
+but the framework supports adding this capability to other providers that can stream intermediate thinking steps.
+
 ## Statusline Support
 
 Knowing the current chat or command model can be shown using your favorite statusline plugin.
@@ -640,4 +653,4 @@ ls -l | command nvim - -c "normal ggVGy" -c ":PrtChatNew" -c "normal p"
 
 ## Star History
 
-[![Star History Chart](https://api.star-history.com/svg?repos=frankroeder/parrot.nvim&type=Date)](https://star-history.com/#frankroeder/parrot.nvim&Date)
+[![Star History Chart](https://api.star-history.com/svg?repos=frankroeder/parrot.nvim&type=Date)](https://star-history.com/#frankroeder/parrot.nvim&Date)
\ No newline at end of file
diff --git a/lua/parrot/chat_handler.lua b/lua/parrot/chat_handler.lua
index 101aae0..101cfa7 100644
--- a/lua/parrot/chat_handler.lua
+++ b/lua/parrot/chat_handler.lua
@@ -69,6 +69,17 @@ function ChatHandler:set_provider(selected_prov, is_chat)
   local _prov = init_provider(selected_prov, endpoint, api_key, style, models)
   self.current_provider[is_chat and "chat" or "command"] = _prov
   self.state:set_provider(_prov.name, is_chat)
+
+  -- Apply saved thinking config from state (if any)
+  local mode = is_chat and "chat" or "command"
+  local thinking_config = self.state:get_thinking(selected_prov, mode)
+  if thinking_config then
+    if not self.providers[selected_prov].params[mode].thinking then
+      self.providers[selected_prov].params[mode].thinking = {}
+    end
+    self.providers[selected_prov].params[mode].thinking = thinking_config
+  end
+
   self.state:refresh(self.available_providers, self.available_models)
   self:prepare_commands()
 end
@@ -83,6 +94,16 @@ function ChatHandler:get_provider(is_chat)
     end
     self:set_provider(prov, is_chat)
     current_prov = self.current_provider[is_chat and "chat" or "command"]
+
+    -- Apply saved thinking config from state (if any)
+    local mode = is_chat and "chat" or "command"
+    local thinking_config = self.state:get_thinking(prov, mode)
+    if thinking_config then
+      if not self.providers[prov].params[mode].thinking then
+        self.providers[prov].params[mode].thinking = {}
+      end
+      self.providers[prov].params[mode].thinking = thinking_config
+    end
   end
   return current_prov
 end
@@ -1571,6 +1592,24 @@ end
 ---@param payload table Payload for the API.
 ---@param handler function Response handler function.
 ---@param on_exit function | nil Optional on_exit handler.
+--- Toggle or configure thinking functionality for providers that support it
+---@param params table Parameters for thinking configuration
+function ChatHandler:thinking(params)
+  local buf = vim.api.nvim_get_current_buf()
+  local file_name = vim.api.nvim_buf_get_name(buf)
+  local is_chat = utils.is_chat(buf, file_name, self.options.chat_dir)
+  local provider = self:get_provider(is_chat)
+
+  -- Delegate to provider-specific thinking configuration if available
+  if provider.configure_thinking then
+    provider:configure_thinking(params, is_chat, self.providers, self.state)
+    return
+  end
+
+  -- If the provider doesn't have a configure_thinking method, warn and return
+  logger.warning("Thinking is not supported by the " .. provider.name .. " provider")
+end
+
 function ChatHandler:query(buf, provider, payload, handler, on_exit)
   -- make sure handler is a function
   if type(handler) ~= "function" then
diff --git a/lua/parrot/config.lua b/lua/parrot/config.lua
index 15c3584..0ba748c 100644
--- a/lua/parrot/config.lua
+++ b/lua/parrot/config.lua
@@ -422,6 +422,7 @@ function M.setup(opts)
     Provider = "provider",
     Retry = "retry",
     Edit = "edit",
+    Thinking = "thinking",
   }
 
   M.chat_handler = ChatHandler:new(M.options, M.providers, M.available_providers, M.available_models, M.cmd)
diff --git a/lua/parrot/provider/anthropic.lua b/lua/parrot/provider/anthropic.lua
index 233b276..9586f71 100644
--- a/lua/parrot/provider/anthropic.lua
+++ b/lua/parrot/provider/anthropic.lua
@@ -210,4 +210,96 @@ function Anthropic:get_available_models(online)
   return ids
 end
 
+--- Toggle or configure thinking functionality for Claude models
+---@param params table Parameters for thinking configuration
+---@param is_chat boolean Whether this is for chat or command context
+---@param providers table Provider configuration table
+---@param state table|nil Optional state object for persistence
+---@return nil
+function Anthropic:configure_thinking(params, is_chat, providers, state)
+  local logger = require("parrot.logger")
+  local args = params.args or ""
+  local mode = is_chat and "chat" or "command"
+
+  -- Check current thinking settings with "status" command
+  if args == "status" then
+    local current = providers[self.name].params[mode].thinking
+    if current then
+      logger.info(string.format("Thinking is enabled with budget of %d tokens for %s",
+        current.budget_tokens or 0, mode))
+    else
+      logger.info("Thinking is disabled for " .. mode)
+    end
+    return
+  elseif args ~= "" then
+    -- Parse budget_tokens from args
+    local budget_tokens = tonumber(args)
+    if budget_tokens and budget_tokens > 0 then
+      -- Set thinking parameters in the provider config
+      if not providers[self.name].params[mode].thinking then
+        providers[self.name].params[mode].thinking = {}
+      end
+
+      local thinking_config = {
+        type = "enabled",
+        budget_tokens = budget_tokens
+      }
+
+      providers[self.name].params[mode].thinking = thinking_config
+
+      -- Save to state if provided
+      if state then
+        state:set_thinking(self.name, mode, thinking_config)
+      end
+
+      logger.info(string.format("Set thinking budget to %d tokens for %s",
+        budget_tokens, mode))
+    else
+      logger.warning("Invalid thinking budget. Please provide a positive number.")
+    end
+  else
+    -- Toggle thinking on/off
+    local current = providers[self.name].params[mode].thinking
+
+    if current then
+      -- Thinking is enabled, disable it
+      -- Store the current config before disabling for future restoration
+      if state then
+        -- Save the current state temporarily (it's already in state storage)
+        providers[self.name].params[mode]._stored_thinking = vim.deepcopy(current)
+        state:set_thinking(self.name, mode, nil)
+      end
+
+      providers[self.name].params[mode].thinking = nil
+      logger.info("Disabled thinking for " .. mode)
+    else
+      -- Thinking is disabled, enable it with previous budget if available
+      local stored_config = providers[self.name].params[mode]._stored_thinking
+      local thinking_config
+
+      if stored_config then
+        -- Restore previous configuration
+        thinking_config = vim.deepcopy(stored_config)
+        providers[self.name].params[mode]._stored_thinking = nil
+      else
+        -- Use default if no previous configuration exists
+        thinking_config = {
+          type = "enabled",
+          budget_tokens = 1024
+        }
+      end
+
+      providers[self.name].params[mode].thinking = thinking_config
+
+      -- Save to state if provided
+      if state then
+        state:set_thinking(self.name, mode, thinking_config)
+      end
+
+      logger.info(string.format("Enabled thinking with budget of %d tokens for %s",
+        thinking_config.budget_tokens, mode))
+    end
+  end
+end
+
 return Anthropic
diff --git a/lua/parrot/state.lua b/lua/parrot/state.lua
index 097abf8..78b7609 100644
--- a/lua/parrot/state.lua
+++ b/lua/parrot/state.lua
@@ -18,7 +18,11 @@ end
 function State:init_file_state(available_providers)
   if next(self.file_state) == nil then
     for _, prov in ipairs(available_providers) do
-      self.file_state[prov] = { chat_model = nil, command_model = nil }
+      self.file_state[prov] = {
+        chat_model = nil,
+        command_model = nil,
+        thinking = nil
+      }
     end
   end
   self.file_state.current_provider = self.file_state.current_provider or { chat = nil, command = nil }
@@ -30,9 +34,14 @@ end
 function State:init_state(available_providers, available_models)
   self._state.current_provider = self._state.current_provider or { chat = nil, command = nil }
   for _, provider in ipairs(available_providers) do
-    self._state[provider] = self._state[provider] or { chat_model = nil, command_model = nil }
+    self._state[provider] = self._state[provider] or {
+      chat_model = nil,
+      command_model = nil,
+      thinking = nil
+    }
     self:load_models(provider, "chat_model", available_models)
     self:load_models(provider, "command_model", available_models)
+    self:load_thinking(provider)
   end
 end
 
@@ -53,6 +62,14 @@ function State:load_models(provider, model_type, available_models)
   end
 end
 
+--- Loads thinking configuration for the specified provider.
+--- @param provider string # Name of the provider.
+function State:load_thinking(provider)
+  if self.file_state and self.file_state[provider] and self.file_state[provider].thinking then
+    self._state[provider].thinking = vim.deepcopy(self.file_state[provider].thinking)
+  end
+end
+
 --- Refreshes the state with available providers and their models.
 --- @param available_providers table
 --- @param available_models table
@@ -135,4 +152,35 @@ function State:get_last_chat()
   return self._state.last_chat
 end
 
+--- Sets thinking configuration for a specific provider and mode.
+--- @param provider string # Provider name.
+--- @param mode string # Mode type ('chat' or 'command').
+--- @param thinking_config table|nil # Thinking configuration or nil to disable
+function State:set_thinking(provider, mode, thinking_config)
+  if not self._state[provider] then
+    return
+  end
+
+  if not self._state[provider].thinking then
+    self._state[provider].thinking = {}
+  end
+
+  self._state[provider].thinking[mode] = thinking_config
+  self:save()
+end
+
+--- Gets thinking configuration for a specific provider and mode.
+--- @param provider string # Provider name.
+--- @param mode string # Mode type ('chat' or 'command').
+--- @return table|nil # Thinking configuration or nil if not set
+function State:get_thinking(provider, mode)
+  if not self._state[provider] or
+     not self._state[provider].thinking or
+     not self._state[provider].thinking[mode] then
+    return nil
+  end
+
+  return self._state[provider].thinking[mode]
+end
+
 return State