diff --git a/qml/MaterialEditorWindow.qml b/qml/MaterialEditorWindow.qml
index ee941e7..fe2e1d6 100644
--- a/qml/MaterialEditorWindow.qml
+++ b/qml/MaterialEditorWindow.qml
@@ -50,14 +50,14 @@ ApplicationWindow {
             statusText.text = "AI generating material..."
             statusText.color = "orange"
         }
-        
+
         function onAiGenerationCompleted(generatedScript) {
             aiStatusIndicator.isGenerating = false
             aiStatusIndicator.hasError = false
-            
+
             // Update the text area with the new script
             materialTextArea.text = generatedScript
-            
+
             // Validate the script first
             if (MaterialEditorQML.validateMaterialScript(generatedScript)) {
                 // Auto-apply if valid
@@ -70,7 +70,7 @@ ApplicationWindow {
                 statusText.color = "orange"
             }
         }
-        
+
         function onAiGenerationError(error) {
             aiStatusIndicator.isGenerating = false
             aiStatusIndicator.hasError = true
@@ -78,6 +78,13 @@ ApplicationWindow {
             statusText.text = "AI error: " + error
             statusText.color = "red"
         }
+
+        function onSdPendingForMaterialChanged() {
+            if (MaterialEditorQML.sdPendingForMaterial) {
+                statusText.text = "Generating texture..."
+                statusText.color = "orange"
+            }
+        }
     }
 
     // Simplified Button component
@@ -718,9 +725,9 @@ ApplicationWindow {
                                 }
                                 
                                 MenuItem {
-                                    text: "PBR Material"
+                                    text: "Normal Map Material"
                                     onTriggered: {
-                                        materialTextArea.text = "material PBRMaterial\n{\n    technique\n    {\n        pass\n        {\n            ambient 0.1 0.1 0.1 1.0\n            diffuse 0.8 0.8 0.8 1.0\n            specular 0.04 0.04 0.04 1.0\n            \n            texture_unit // Albedo\n            {\n                texture albedo.png\n            }\n            \n            texture_unit // Normal\n            {\n                texture normal.png\n            }\n            \n            texture_unit // Roughness\n            {\n                texture roughness.png\n            }\n        }\n    }\n}"
+                                        materialTextArea.text = "material NormalMapMaterial\n{\n    technique\n    {\n        pass\n        {\n            ambient 0.2 0.2 0.2 1.0\n            diffuse 0.8 0.8 0.8 1.0\n            specular 0.5 0.5 0.5 32.0\n            \n            texture_unit\n            {\n                texture diffuse.png\n            }\n            \n            texture_unit normal_map\n            {\n                texture normal.png\n            }\n        }\n    }\n}"
                                     }
                                 }
                             }
@@ -865,7 +872,7 @@ ApplicationWindow {
                                 ThemedTextField {
                                     id: aiPromptInput
                                     Layout.fillWidth: true
-                                    placeholderText: "Type a command like: 'add texture glow.png', 'make it transparent', 'create PBR material'"
+                                    placeholderText: "Describe the material (e.g., 'rusty metal', 'shiny glass', 'oak wood with normal map')"
                                     enabled: !aiStatusIndicator.isGenerating && LLMManager.modelLoaded
 
                                     background: Rectangle {
@@ -903,10 +910,10 @@ ApplicationWindow {
                                 }
                             }
 
-                            // Progress indicator for local LLM
+                            // Combined progress indicator for LLM + SD
                             RowLayout {
                                 Layout.fillWidth: true
-                                visible: aiStatusIndicator.isGenerating && LLMManager.modelLoaded
+                                visible: (aiStatusIndicator.isGenerating || MaterialEditorQML.sdPendingForMaterial || MaterialEditorQML.sdIsGenerating) && LLMManager.modelLoaded
                                 spacing: 8
 
                                 ProgressBar {
@@ -914,11 +921,17 @@ ApplicationWindow {
                                     Layout.fillWidth: true
                                     from: 0
                                     to: 1
-                                    value: MaterialEditorQML.llmGenerationProgress
+                                    value: MaterialEditorQML.sdPendingForMaterial || MaterialEditorQML.sdIsGenerating ?
+                                           MaterialEditorQML.sdGenerationProgress :
+                                           MaterialEditorQML.llmGenerationProgress
                                 }
 
                                 Text {
-                                    text: Math.round(MaterialEditorQML.llmGenerationProgress * 100) + "%"
+                                    property real displayProgress: MaterialEditorQML.sdPendingForMaterial || MaterialEditorQML.sdIsGenerating ?
+                                                                   MaterialEditorQML.sdGenerationProgress :
+                                                                   MaterialEditorQML.llmGenerationProgress
+                                    text: (MaterialEditorQML.sdPendingForMaterial || MaterialEditorQML.sdIsGenerating ? "Texture: " : "LLM: ") +
+                                          Math.round(displayProgress * 100) + "%"
                                     font.pointSize: 9
                                     color: textColor
                                 }
diff --git a/qml/PassPropertiesPanel.qml b/qml/PassPropertiesPanel.qml
index 94f0776..3823a0e 100644
--- a/qml/PassPropertiesPanel.qml
+++ b/qml/PassPropertiesPanel.qml
@@ -48,6 +48,16 @@ GroupBox {
         // Lighting and Depth Settings
         GroupBox {
             title: "Lighting & Depth"
+            background: Rectangle {
+                color: MaterialEditorQML.panelColor
+                border.color: MaterialEditorQML.borderColor
+                border.width: 1
+                radius: 4
+            }
+            label: ThemedLabel {
+                text: parent.title
+                font.bold: true
+            }
             Layout.fillWidth: true
 
             ColumnLayout {
@@ -60,19 +70,61 @@ GroupBox {
                     spacing: 15
 
                     CheckBox {
+
                         text: "Lighting"
+
+                        contentItem: Text {
+
+                            text: parent.text
+
+                            color: textColor
+
+                            leftPadding: parent.indicator.width + parent.spacing
+
+                            verticalAlignment: Text.AlignVCenter
+
+                        }
+
                         checked: MaterialEditorQML.lightingEnabled
                         onCheckedChanged: MaterialEditorQML.setLightingEnabled(checked)
                     }
 
                     CheckBox {
+
                         text: "Depth Write"
+
+                        contentItem: Text {
+
+                            text: parent.text
+
+                            color: textColor
+
+                            leftPadding: parent.indicator.width + parent.spacing
+
+                            verticalAlignment: Text.AlignVCenter
+
+                        }
+
                         checked: MaterialEditorQML.depthWriteEnabled
                         onCheckedChanged: MaterialEditorQML.setDepthWriteEnabled(checked)
                     }
 
                     CheckBox {
+
                         text: "Depth Check"
+
+                        contentItem: Text {
+
+                            text: parent.text
+
+                            color: textColor
+
+                            leftPadding: parent.indicator.width + parent.spacing
+
+                            verticalAlignment: Text.AlignVCenter
+
+                        }
+
                         checked: MaterialEditorQML.depthCheckEnabled
                         onCheckedChanged: MaterialEditorQML.setDepthCheckEnabled(checked)
                     }
@@ -118,6 +170,16 @@ GroupBox {
         // Colors
         GroupBox {
             title: "Colors"
+            background: Rectangle {
+                color: MaterialEditorQML.panelColor
+                border.color: MaterialEditorQML.borderColor
+                border.width: 1
+                radius: 4
+            }
+            label: ThemedLabel {
+                text: parent.title
+                font.bold: true
+            }
             Layout.fillWidth: true
 
             GridLayout {
@@ -149,7 +211,21 @@ GroupBox {
                     }
                 }
                 CheckBox {
+
                     text: "Use Vertex Color"
+
+                    contentItem: Text {
+
+                        text: parent.text
+
+                        color: textColor
+
+                        leftPadding: parent.indicator.width + parent.spacing
+
+                        verticalAlignment: Text.AlignVCenter
+
+                    }
+
                     checked: MaterialEditorQML.useVertexColorToAmbient
                     onCheckedChanged: MaterialEditorQML.setUseVertexColorToAmbient(checked)
                 }
@@ -177,7 +253,21 @@ GroupBox {
                     }
                 }
                 CheckBox {
+
                     text: "Use Vertex Color"
+
+                    contentItem: Text {
+
+                        text: parent.text
+
+                        color: textColor
+
+                        leftPadding: parent.indicator.width + parent.spacing
+
+                        verticalAlignment: Text.AlignVCenter
+
+                    }
+
                     checked: MaterialEditorQML.useVertexColorToDiffuse
                     onCheckedChanged: MaterialEditorQML.setUseVertexColorToDiffuse(checked)
                 }
@@ -205,7 +295,21 @@ GroupBox {
                     }
                 }
                 CheckBox {
+
                     text: "Use Vertex Color"
+
+                    contentItem: Text {
+
+                        text: parent.text
+
+                        color: textColor
+
+                        leftPadding: parent.indicator.width + parent.spacing
+
+                        verticalAlignment: Text.AlignVCenter
+
+                    }
+
                     checked: MaterialEditorQML.useVertexColorToSpecular
                     onCheckedChanged: MaterialEditorQML.setUseVertexColorToSpecular(checked)
                 }
@@ -233,7 +337,21 @@ GroupBox {
                     }
                 }
                 CheckBox {
+
                     text: "Use Vertex Color"
+
+                    contentItem: Text {
+
+                        text: parent.text
+
+                        color: textColor
+
+                        leftPadding: parent.indicator.width + parent.spacing
+
+                        verticalAlignment: Text.AlignVCenter
+
+                    }
+
                     checked: MaterialEditorQML.useVertexColorToEmissive
                     onCheckedChanged: MaterialEditorQML.setUseVertexColorToEmissive(checked)
                 }
@@ -243,6 +361,16 @@ GroupBox {
         // Alpha and Material Properties
         GroupBox {
             title: "Alpha & Material"
+            background: Rectangle {
+                color: MaterialEditorQML.panelColor
+                border.color: MaterialEditorQML.borderColor
+                border.width: 1
+                radius: 4
+            }
+            label: ThemedLabel {
+                text: parent.title
+                font.bold: true
+            }
             Layout.fillWidth: true
 
             GridLayout {
@@ -339,6 +467,16 @@ GroupBox {
         // Blending
         GroupBox {
             title: "Blending"
+            background: Rectangle {
+                color: MaterialEditorQML.panelColor
+                border.color: MaterialEditorQML.borderColor
+                border.width: 1
+                radius: 4
+            }
+            label: ThemedLabel {
+                text: parent.title
+                font.bold: true
+            }
             Layout.fillWidth: true
 
             GridLayout {
diff --git a/qml/TexturePropertiesPanel.qml b/qml/TexturePropertiesPanel.qml
index 2b9ca0b..5248e3e 100644
--- a/qml/TexturePropertiesPanel.qml
+++ b/qml/TexturePropertiesPanel.qml
@@ -49,7 +49,17 @@ GroupBox {
         GroupBox {
             title: "Texture Selection"
             Layout.fillWidth: true
-            
+            background: Rectangle {
+                color: panelColor
+                border.color: borderColor
+                border.width: 1
+                radius: 4
+            }
+            label: ThemedLabel {
+                text: parent.title
+                font.bold: true
+            }
+
             ColumnLayout {
                 anchors.fill: parent
                 spacing: 10
@@ -125,6 +135,16 @@ GroupBox {
             title: "Preview"
             Layout.fillWidth: true
             Layout.preferredHeight: 200
+            background: Rectangle {
+                color: panelColor
+                border.color: borderColor
+                border.width: 1
+                radius: 4
+            }
+            label: ThemedLabel {
+                text: parent.title
+                font.bold: true
+            }
             
             Rectangle {
                 anchors.fill: parent
@@ -139,13 +159,30 @@ GroupBox {
                     width: Math.min(parent.width - 20, sourceSize.width)
                     height: Math.min(parent.height - 20, sourceSize.height)
                     fillMode: Image.PreserveAspectFit
-                    source: MaterialEditorQML.getTexturePreviewPath()
+                    source: MaterialEditorQML.getTexturePreviewPath() !== "" ? MaterialEditorQML.getTexturePreviewPath() + "?v=0" : ""
                     
+                    // Cache-bust counter for forcing image reload
+                    property int cacheBuster: 0
+
+                    function reloadPreview() {
+                        var path = MaterialEditorQML.getTexturePreviewPath()
+                        if (path !== "") {
+                            cacheBuster++
+                            texturePreview.source = path + "?v=" + cacheBuster
+                        } else {
+                            texturePreview.source = ""
+                        }
+                    }
+
                     // Update source when texture name changes
                     Connections {
                         target: MaterialEditorQML
                         function onTextureNameChanged() {
-                            texturePreview.source = MaterialEditorQML.getTexturePreviewPath()
+                            texturePreview.reloadPreview()
+                        }
+                        function onSdTextureGenerated(filePath) {
+                            // Force reload after SD generation (same filename, new content)
+                            texturePreview.reloadPreview()
                         }
                     }
 
@@ -643,119 +680,6 @@ GroupBox {
             }
         }
 
-        // AI Texture Edit (img2img)
-        GroupBox {
-            title: "AI Texture Edit"
-            visible: MaterialEditorQML.stableDiffusionEnabled
-            Layout.fillWidth: true
-
-            background: Rectangle {
-                color: MaterialEditorQML.panelColor
-                border.color: MaterialEditorQML.borderColor
-                border.width: 1
-                radius: 4
-            }
-            label: ThemedLabel {
-                text: parent.title
-                font.bold: true
-            }
-
-            ColumnLayout {
-                anchors.fill: parent
-                anchors.margins: 10
-                spacing: 8
-
-                ThemedLabel {
-                    text: "Edit the current texture with AI"
-                    font.pointSize: 9
-                }
-
-                RowLayout {
-                    Layout.fillWidth: true
-                    spacing: 8
-
-                    ThemedTextField {
-                        id: sdEditPromptField
-                        Layout.fillWidth: true
-                        placeholderText: "Describe the change (e.g., 'change eyes to blue')..."
-                        enabled: MaterialEditorQML.sdModelLoaded && !MaterialEditorQML.sdIsGenerating
-
-                        Keys.onReturnPressed: {
-                            if (text.length > 0 && MaterialEditorQML.sdModelLoaded && !MaterialEditorQML.sdIsGenerating) {
-                                MaterialEditorQML.editTextureFromPrompt(text, sdStrengthSlider.value / 100.0)
-                            }
-                        }
-                    }
-
-                    ThemedButton {
-                        text: MaterialEditorQML.sdIsGenerating ? "Stop" : "Edit"
-                        enabled: MaterialEditorQML.sdModelLoaded &&
-                                 (MaterialEditorQML.sdIsGenerating || sdEditPromptField.text.length > 0)
-                        onClicked: {
-                            if (MaterialEditorQML.sdIsGenerating) {
-                                MaterialEditorQML.stopTextureGeneration()
-                            } else {
-                                MaterialEditorQML.editTextureFromPrompt(sdEditPromptField.text, sdStrengthSlider.value / 100.0)
-                            }
-                        }
-                    }
-                }
-
-                RowLayout {
-                    Layout.fillWidth: true
-                    spacing: 8
-
-                    ThemedLabel { text: "Strength:" }
-                    Slider {
-                        id: sdStrengthSlider
-                        Layout.fillWidth: true
-                        from: 10
-                        to: 100
-                        stepSize: 5
-                        value: 50
-
-                        background: Rectangle {
-                            x: sdStrengthSlider.leftPadding
-                            y: sdStrengthSlider.topPadding + sdStrengthSlider.availableHeight / 2 - height / 2
-                            implicitWidth: 200
-                            implicitHeight: 4
-                            width: sdStrengthSlider.availableWidth
-                            height: implicitHeight
-                            radius: 2
-                            color: MaterialEditorQML.borderColor
-                        }
-                        handle: Rectangle {
-                            x: sdStrengthSlider.leftPadding + sdStrengthSlider.visualPosition * (sdStrengthSlider.availableWidth - width)
-                            y: sdStrengthSlider.topPadding + sdStrengthSlider.availableHeight / 2 - height / 2
-                            implicitWidth: 16
-                            implicitHeight: 16
-                            radius: 8
-                            color: MaterialEditorQML.accentColor
-                            border.color: MaterialEditorQML.borderColor
-                        }
-                    }
-                    ThemedLabel {
-                        text: Math.round(sdStrengthSlider.value) + "%"
-                        Layout.minimumWidth: 35
-                    }
-                }
-
-                ThemedLabel {
-                    text: "Low = subtle changes, High = major changes"
-                    font.pointSize: 8
-                    opacity: 0.6
-                }
-
-                ProgressBar {
-                    Layout.fillWidth: true
-                    from: 0
-                    to: 1
-                    value: MaterialEditorQML.sdGenerationProgress
-                    visible: MaterialEditorQML.sdIsGenerating
-                }
-            }
-        }
-
         // AI Texture Generation
         GroupBox {
             title: "AI Texture Generation"
@@ -867,32 +791,39 @@ GroupBox {
         GroupBox {
             title: "Information"
             Layout.fillWidth: true
-            
+            background: Rectangle {
+                color: panelColor
+                border.color: borderColor
+                border.width: 1
+                radius: 4
+            }
+            label: ThemedLabel {
+                text: parent.title
+                font.bold: true
+            }
+
             ColumnLayout {
                 anchors.fill: parent
                 spacing: 5
-                
-                Text {
+
+                ThemedLabel {
                     text: "Texture: " + (MaterialEditorQML.textureName || "None")
                     font.pointSize: 10
-                    color: textColor
                 }
-                
-                Text {
-                    text: texturePreview.source != "" && texturePreview.status === Image.Ready ? 
+
+                ThemedLabel {
+                    text: texturePreview.source != "" && texturePreview.status === Image.Ready ?
                           "Size: " + texturePreview.sourceSize.width + " x " + texturePreview.sourceSize.height :
                           "Size: Unknown"
                     font.pointSize: 10
-                    color: textColor
                 }
-                
-                Text {
-                    text: "Animation: " + 
-                          (MaterialEditorQML.scrollAnimUSpeed != 0.0 || MaterialEditorQML.scrollAnimVSpeed != 0.0 ? 
-                           "Enabled (" + MaterialEditorQML.scrollAnimUSpeed.toFixed(2) + ", " + MaterialEditorQML.scrollAnimVSpeed.toFixed(2) + ")" : 
+
+                ThemedLabel {
+                    text: "Animation: " +
+                          (MaterialEditorQML.scrollAnimUSpeed != 0.0 || MaterialEditorQML.scrollAnimVSpeed != 0.0 ?
+                           "Enabled (" + MaterialEditorQML.scrollAnimUSpeed.toFixed(2) + ", " + MaterialEditorQML.scrollAnimVSpeed.toFixed(2) + ")" :
                            "Disabled")
                     font.pointSize: 10
-                    color: textColor
                 }
             }
         }
diff --git a/qml/ThemedTextField.qml b/qml/ThemedTextField.qml
index f43f95a..6651bbe 100644
--- a/qml/ThemedTextField.qml
+++ b/qml/ThemedTextField.qml
@@ -5,7 +5,7 @@ TextField {
     color: MaterialEditorQML.textColor
     selectionColor: Qt.rgba(0.4, 0.4, 0.6, 1.0)
     selectedTextColor: MaterialEditorQML.textColor
-    placeholderTextColor: Qt.rgba(0.6, 0.6, 0.6, 1.0)
+    placeholderTextColor: MaterialEditorQML.disabledTextColor
     
     background: Rectangle {
         implicitWidth: 200
diff --git a/src/LLMManager.cpp b/src/LLMManager.cpp
index 59db3fb..4ae3a6f 100644
--- a/src/LLMManager.cpp
+++ b/src/LLMManager.cpp
@@ -239,8 +239,9 @@ QString LLMManager::getOgre3DSystemPrompt()
 1. Output ONLY the material script - no markdown, no explanations
 2. Keep the same material name if modifying an existing material
 3. All color values must be NUMBERS between 0.0 and 1.0
-4. Do NOT add texture_unit unless specifically asked for textures
-5. For simple color changes, only modify ambient/diffuse/specular/emissive values
+4. When the material needs a realistic look (e.g., wood, metal, stone, fabric) AND available textures are listed below, add a texture_unit with a descriptive filename like "oak_wood.png" or "rusty_metal.png"
+5. Do NOT add texture_unit if no available textures are listed — the system may not support texture generation
+6. For simple color changes, only modify ambient/diffuse/specular/emissive values
 
 BASIC STRUCTURE:
 material NAME
diff --git a/src/MaterialEditorQML.cpp b/src/MaterialEditorQML.cpp
index 8254951..b8380cb 100644
--- a/src/MaterialEditorQML.cpp
+++ b/src/MaterialEditorQML.cpp
@@ -89,7 +89,23 @@ MaterialEditorQML::MaterialEditorQML(QObject *parent)
     connect(sdManager, &SDManager::generationProgressChanged, this, &MaterialEditorQML::onSDGenerationProgress);
     connect(sdManager, &SDManager::generationCompleted, this, &MaterialEditorQML::onSDGenerationCompleted);
     connect(sdManager, &SDManager::generationError, this, &MaterialEditorQML::onSDGenerationError);
+    connect(sdManager, &SDManager::generationStopped, this, &MaterialEditorQML::onSDGenerationStopped);
     connect(sdManager, &SDManager::modelLoadedChanged, this, &MaterialEditorQML::onSDModelLoadedChanged);
+
+    // Register generated textures directory as Ogre resource location at startup
+    // so textures from previous sessions are found when materials reference them
+    if (isOgreAvailable()) {
+        QString dataPath = QStandardPaths::writableLocation(QStandardPaths::AppDataLocation);
+        QString genTexDir = QDir(dataPath).filePath("generated_textures");
+        if (QDir(genTexDir).exists()) {
+            try {
+                auto &rgm = Ogre::ResourceGroupManager::getSingleton();
+                rgm.addResourceLocation(genTexDir.toStdString(), "FileSystem",
+                                        Ogre::ResourceGroupManager::DEFAULT_RESOURCE_GROUP_NAME);
+                rgm.initialiseResourceGroup(Ogre::ResourceGroupManager::DEFAULT_RESOURCE_GROUP_NAME);
+            } catch (...) {}
+        }
+    }
 #endif
 }
 
@@ -2774,27 +2790,21 @@ void MaterialEditorQML::onLLMGenerationCompleted(const QString &generatedText)
     // Update the material text with the AI-generated script
     setMaterialText(cleanedText);
 
-    emit aiGenerationCompleted(cleanedText);
-
     // LCOV_EXCL_START — SD auto-trigger requires SD enabled with loaded model
-    // Auto-trigger SD texture generation if the material references textures
-    // and SD is available with a loaded model
+    // Check if SD needs to generate a texture before we apply the material
+    bool sdTriggered = false;
 #ifdef ENABLE_STABLE_DIFFUSION
     SDManager *sdManager = SDManager::instance();
     if (sdManager->isModelLoaded() && !sdManager->isGenerating()) {
-        // Look for texture_unit blocks with texture references that look like AI placeholders
         QRegularExpression texRegex(R"(texture\s+["\']?([^"'\s]+)["\']?)");
         QRegularExpressionMatchIterator it = texRegex.globalMatch(cleanedText);
         while (it.hasNext()) {
             QRegularExpressionMatch match = it.next();
             QString texName = match.captured(1).trimmed();
-            // Skip if the texture file already exists on disk
             bool existsOnDisk = false;
-            // Check generated textures dir
             QString dataPath = QStandardPaths::writableLocation(QStandardPaths::AppDataLocation);
             QString genPath = QDir(dataPath).filePath("generated_textures/" + texName);
             if (QFileInfo::exists(genPath)) existsOnDisk = true;
-            // Check media textures dirs
             QStringList searchDirs = {
                 "media/materials/textures/" + texName,
                 "../media/materials/textures/" + texName,
@@ -2803,21 +2813,30 @@ void MaterialEditorQML::onLLMGenerationCompleted(const QString &generatedText)
                 if (QFileInfo::exists(p)) { existsOnDisk = true; break; }
             }
             if (existsOnDisk) continue;
-            // This texture doesn't exist — generate it with SD using the texture name as prompt
-            // Convert underscores/hyphens to spaces for a better prompt
             QString prompt = texName;
-            prompt.replace(QRegularExpression(R"(\.\w+$)"), ""); // remove extension
+            prompt.replace(QRegularExpression(R"(\.\w+$)"), "");
             QString cleanPrompt = prompt;
             cleanPrompt.replace('_', ' ').replace('-', ' ');
             if (!cleanPrompt.isEmpty()) {
                 qDebug() << "MaterialEditorQML: Auto-triggering SD for missing texture:" << texName << "prompt:" << cleanPrompt;
+                // Defer material apply until SD completes
+                m_pendingMaterialScript = cleanedText;
+                m_sdPendingForMaterial = true;
+                emit sdPendingForMaterialChanged();
                 sdManager->generateTexture(cleanPrompt, 0, 0, texName);
-                break; // Generate one texture at a time
+                sdTriggered = true;
+                break;
             }
         }
     }
 #endif
     // LCOV_EXCL_STOP
+
+    if (!sdTriggered) {
+        // No SD needed — emit immediately so QML can apply
+        emit aiGenerationCompleted(cleanedText);
+    }
+    // If SD was triggered, aiGenerationCompleted will be emitted from onSDGenerationCompleted
 }
 
 void MaterialEditorQML::onLLMGenerationError(const QString &error)
@@ -2890,64 +2909,6 @@ void MaterialEditorQML::generateTextureFromPrompt(const QString &prompt, int wid
 #endif
 }
 
-void MaterialEditorQML::editTextureFromPrompt(const QString &prompt, float strength)
-{
-    if (prompt.isEmpty()) {
-        emit sdGenerationError("Please enter an edit prompt");
-        return;
-    }
-
-#ifdef ENABLE_STABLE_DIFFUSION
-    SDManager *sdManager = SDManager::instance();
-    if (!sdManager->isModelLoaded()) {
-        emit sdGenerationError("No SD model loaded. Please load a model from AI Settings.");
-        return;
-    }
-
-    // Find the current texture's file path
-    QString inputPath;
-
-    // First try getTexturePreviewPath
-    QString texPreviewPath = getTexturePreviewPath();
-    if (!texPreviewPath.isEmpty()) {
-        inputPath = QUrl(texPreviewPath).toLocalFile();
-    }
-
-    // If not found via preview path, check generated textures dir directly
-    if (inputPath.isEmpty() && !m_textureName.isEmpty() && m_textureName != "*Select a texture*") {
-        QString dataPath = QStandardPaths::writableLocation(QStandardPaths::AppDataLocation);
-        QString genPath = QDir(dataPath).filePath("generated_textures/" + m_textureName);
-        if (QFileInfo::exists(genPath)) {
-            inputPath = genPath;
-        }
-    }
-
-    if (inputPath.isEmpty() || !QFileInfo::exists(inputPath)) {
-        // Texture only exists in GPU memory — fall back to txt2img
-        QString outputName = m_textureName;
-        if (outputName.isEmpty() || outputName == "*Select a texture*") {
-            outputName = "edited_texture.png";
-        }
-        sdManager->generateTexture(prompt, 0, 0, outputName);
-        return;
-    }
-
-    m_sdGenerationProgress = 0.0f;
-    emit sdGenerationProgressChanged();
-
-    // Use current texture name as output, or generate a new name
-    QString outputName = m_textureName;
-    if (outputName.isEmpty() || outputName == "*Select a texture*") {
-        outputName = "edited_texture.png";
-    }
-
-    sdManager->editTexture(prompt, inputPath, strength, outputName);
-#else
-    Q_UNUSED(strength);
-    emit sdGenerationError("Stable Diffusion support is not enabled. Rebuild with ENABLE_STABLE_DIFFUSION=ON");
-#endif
-}
-
 void MaterialEditorQML::stopTextureGeneration()
 {
 #ifdef ENABLE_STABLE_DIFFUSION
@@ -2984,43 +2945,43 @@ void MaterialEditorQML::onSDGenerationCompleted(const QString &outputPath)
     QString dirPath = fileInfo.absolutePath();
     QString fileName = fileInfo.fileName();
 
+    // Helper lambda to emit deferred material completion if SD was triggered by LLM
+    auto emitDeferredCompletion = [this]() {
+        if (m_sdPendingForMaterial) {
+            m_sdPendingForMaterial = false;
+            emit sdPendingForMaterialChanged();
+            emit aiGenerationCompleted(m_pendingMaterialScript);
+            m_pendingMaterialScript.clear();
+        }
+    };
+
     if (!isOgreAvailable()) {
-        // Update texture name for preview even without Ogre
         m_textureName = fileName;
         emit textureNameChanged();
         emit sdTextureGenerated(outputPath);
+        emitDeferredCompletion();
         return;
     }
 
-    // Register the directory and apply texture — all in a single try block
-    // to catch any Ogre segfault-like exceptions
     try {
         auto *root = Ogre::Root::getSingletonPtr();
         if (!root) {
             m_textureName = fileName;
             emit textureNameChanged();
             emit sdTextureGenerated(outputPath);
+            emitDeferredCompletion();
             return;
         }
 
-        auto &rgm = Ogre::ResourceGroupManager::getSingleton();
-
-        // Add resource location (Ogre handles duplicates)
+        // Register resource location
         try {
+            auto &rgm = Ogre::ResourceGroupManager::getSingleton();
             rgm.addResourceLocation(dirPath.toStdString(), "FileSystem",
                                     Ogre::ResourceGroupManager::DEFAULT_RESOURCE_GROUP_NAME);
             rgm.initialiseResourceGroup(Ogre::ResourceGroupManager::DEFAULT_RESOURCE_GROUP_NAME);
         } catch (...) {}
 
-        // Remove any previously loaded texture with the same name so Ogre reloads from new file
-        try {
-            auto existingTex = Ogre::TextureManager::getSingleton().getByName(fileName.toStdString());
-            if (existingTex) {
-                Ogre::TextureManager::getSingleton().remove(existingTex);
-            }
-        } catch (...) {}
-
-        // Apply texture to current material
+        // Apply texture to current material pass
         Ogre::Pass *pass = getCurrentPass();
         if (pass) {
             Ogre::TextureUnitState *texUnit = getCurrentTextureUnit();
@@ -3035,14 +2996,13 @@ void MaterialEditorQML::onSDGenerationCompleted(const QString &outputPath)
                 texUnit->setTextureName(fileName.toStdString());
             }
         }
-    } catch (...) {
-        // If Ogre calls fail, still update the UI
-    }
+    } catch (...) {}
 
     m_textureName = fileName;
     emit textureNameChanged();
     updateMaterialText();
     emit sdTextureGenerated(outputPath);
+    emitDeferredCompletion();
 }
 
 void MaterialEditorQML::onSDGenerationError(const QString &error)
@@ -3051,6 +3011,30 @@ void MaterialEditorQML::onSDGenerationError(const QString &error)
     emit sdGenerationProgressChanged();
     emit sdIsGeneratingChanged();
     emit sdGenerationError(error);
+
+    // If SD failed but was triggered by LLM, still emit the material completion
+    // so the material gets applied (just without the texture)
+    if (m_sdPendingForMaterial) {
+        m_sdPendingForMaterial = false;
+        emit sdPendingForMaterialChanged();
+        emit aiGenerationCompleted(m_pendingMaterialScript);
+        m_pendingMaterialScript.clear();
+    }
+}
+
+void MaterialEditorQML::onSDGenerationStopped()
+{
+    m_sdGenerationProgress = 0.0f;
+    emit sdGenerationProgressChanged();
+    emit sdIsGeneratingChanged();
+
+    // If SD was stopped but was triggered by LLM, still apply the material
+    if (m_sdPendingForMaterial) {
+        m_sdPendingForMaterial = false;
+        emit sdPendingForMaterialChanged();
+        emit aiGenerationCompleted(m_pendingMaterialScript);
+        m_pendingMaterialScript.clear();
+    }
 }
 
 void MaterialEditorQML::onSDModelLoadedChanged()
diff --git a/src/MaterialEditorQML.h b/src/MaterialEditorQML.h
index db6cd31..3aaf673 100644
--- a/src/MaterialEditorQML.h
+++ b/src/MaterialEditorQML.h
@@ -133,6 +133,7 @@ class MaterialEditorQML : public QObject
     Q_PROPERTY(bool sdModelLoaded READ sdModelLoaded NOTIFY sdModelLoadedChanged)
     Q_PROPERTY(bool sdIsGenerating READ sdIsGenerating NOTIFY sdIsGeneratingChanged)
     Q_PROPERTY(float sdGenerationProgress READ sdGenerationProgress NOTIFY sdGenerationProgressChanged)
+    Q_PROPERTY(bool sdPendingForMaterial READ sdPendingForMaterial NOTIFY sdPendingForMaterialChanged)
 
 public:
     explicit MaterialEditorQML(QObject *parent = nullptr);
@@ -243,6 +244,7 @@ class MaterialEditorQML : public QObject
     bool sdModelLoaded() const;
     bool sdIsGenerating() const;
     float sdGenerationProgress() const { return m_sdGenerationProgress; }
+    bool sdPendingForMaterial() const { return m_sdPendingForMaterial; }
 
     // Static factory for QML singleton
     static MaterialEditorQML* qmlInstance(QQmlEngine *engine, QJSEngine *scriptEngine);
@@ -388,7 +390,6 @@ public slots:
 
     // AI Texture Generation
     Q_INVOKABLE void generateTextureFromPrompt(const QString &prompt, int width = 0, int height = 0);
-    Q_INVOKABLE void editTextureFromPrompt(const QString &prompt, float strength = 0.5f);
     Q_INVOKABLE void stopTextureGeneration();
 
     // Undo/Redo functionality
@@ -500,6 +501,7 @@ public slots:
     void sdGenerationProgressChanged();
     void sdTextureGenerated(const QString &filePath);
     void sdGenerationError(const QString &error);
+    void sdPendingForMaterialChanged();
 
 private:
     void updateTechniqueList();
@@ -610,6 +612,8 @@ public slots:
 
     // Stable Diffusion
     float m_sdGenerationProgress = 0.0f;
+    bool m_sdPendingForMaterial = false; // True when SD is generating a texture triggered by LLM
+    QString m_pendingMaterialScript; // Deferred material script waiting for SD
 
     // Undo/Redo stacks
     QStringList m_undoStack;
@@ -630,6 +634,7 @@ private slots:
     void onSDGenerationProgress();
     void onSDGenerationCompleted(const QString &outputPath);
     void onSDGenerationError(const QString &error);
+    void onSDGenerationStopped();
     void onSDModelLoadedChanged();
 #endif
 
diff --git a/src/SDManager.cpp b/src/SDManager.cpp
index 2cb9593..319f7fb 100644
--- a/src/SDManager.cpp
+++ b/src/SDManager.cpp
@@ -252,7 +252,7 @@ QString SDManager::enhanceTexturePrompt(const QString &prompt)
     }
 
     // Add 3D-specific keywords
-    enhanced += ", flat surface, top-down view, even lighting, PBR material";
+    enhanced += ", flat surface, top-down view, even lighting, normal map compatible";
 
     return enhanced;
 }
@@ -408,51 +408,6 @@ void SDManager::generateTexture(const QString &prompt, int width, int height, co
     // LCOV_EXCL_STOP
 }
 
-void SDManager::editTexture(const QString &prompt, const QString &inputImagePath, float strength, const QString &outputFileName)
-{
-    if (!isModelLoaded()) {
-        emit generationError("No SD model loaded. Please load a model first.");
-        return;
-    }
-
-    // LCOV_EXCL_START — requires a loaded SD model
-    QString outputPath;
-    if (!outputFileName.isEmpty()) {
-        QString dataPath = QStandardPaths::writableLocation(QStandardPaths::AppDataLocation);
-        QDir outputDir(QDir(dataPath).filePath("generated_textures"));
-        if (!outputDir.exists()) {
-            outputDir.mkpath(".");
-        }
-        QString fileName = outputFileName.trimmed();
-        fileName = QFileInfo(fileName).fileName(); // Strip path separators to prevent path traversal
-        if (!fileName.endsWith(".png", Qt::CaseInsensitive) &&
-            !fileName.endsWith(".jpg", Qt::CaseInsensitive)) {
-            fileName.replace(QRegularExpression(R"(\.\w+$)"), "");
-            fileName += ".png";
-        }
-        outputPath = outputDir.filePath(fileName);
-    } else {
-        outputPath = generateOutputPath();
-    }
-
-    float clampedStrength = qBound(0.0f, strength, 1.0f);
-
-    // Enhance prompt for texture editing
-    QString enhancedPrompt = enhanceTexturePrompt(prompt);
-
-    SDSettings genSettings = m_settings;
-    if (genSettings.negativePrompt.isEmpty() ||
-        genSettings.negativePrompt == "blurry, low quality, distorted, simple, cartoon") {
-        genSettings.negativePrompt = getTextureNegativePrompt();
-    }
-
-    QMetaObject::invokeMethod(m_worker, [this, enhancedPrompt, inputImagePath, outputPath, clampedStrength, genSettings]() {
-        m_worker->setSettings(genSettings);
-        m_worker->generateFromImage(enhancedPrompt, inputImagePath, outputPath, clampedStrength);
-    }, Qt::QueuedConnection);
-    // LCOV_EXCL_STOP
-}
-
 void SDManager::stopGeneration()
 {
     if (m_worker) {
diff --git a/src/SDManager.h b/src/SDManager.h
index 4863d8f..5dc65f2 100644
--- a/src/SDManager.h
+++ b/src/SDManager.h
@@ -104,7 +104,7 @@ public slots:
     Q_INVOKABLE void scanForModels();
 
     Q_INVOKABLE void generateTexture(const QString &prompt, int width = 0, int height = 0, const QString &outputFileName = QString());
-    Q_INVOKABLE void editTexture(const QString &prompt, const QString &inputImagePath, float strength = 0.5f, const QString &outputFileName = QString());
+    // img2img disabled — crashes on macOS Metal. Edits use txt2img with combined prompt.
     Q_INVOKABLE void stopGeneration();
     Q_INVOKABLE void tryAutoLoadModel();
 
diff --git a/src/SDWorker.cpp b/src/SDWorker.cpp
index 8c733c8..f98e8d0 100644
--- a/src/SDWorker.cpp
+++ b/src/SDWorker.cpp
@@ -157,6 +157,31 @@ void SDWorker::requestStop()
 
 // LCOV_EXCL_STOP
 
+#ifdef ENABLE_STABLE_DIFFUSION
+void SDWorker::recreateContext()
+{
+    if (m_ctx) {
+        free_sd_ctx(m_ctx);
+        m_ctx = nullptr;
+    }
+    if (m_modelPath.isEmpty()) return;
+
+    sd_ctx_params_t params;
+    sd_ctx_params_init(&params);
+    QByteArray pathUtf8 = m_modelPath.toUtf8();
+    params.model_path = pathUtf8.constData();
+    params.n_threads = m_settings.threads > 0 ? m_settings.threads : QThread::idealThreadCount();
+    if (params.n_threads > 16) params.n_threads = 16;
+    params.vae_decode_only = true;
+
+    m_ctx = new_sd_ctx(&params);
+    if (!m_ctx) {
+        m_isModelLoaded.store(false);
+        emit modelLoadError("Failed to recreate SD context");
+    }
+}
+#endif
+
 void SDWorker::generateTexture(const QString &prompt, const QString &outputPath)
 {
 #ifdef ENABLE_STABLE_DIFFUSION
@@ -177,9 +202,13 @@ void SDWorker::generateTexture(const QString &prompt, const QString &outputPath)
 
     QMutexLocker locker(&m_mutex);
 
+    // sd.cpp crashes on second generate_image() call with the same context.
+    // Recreate the context before each generation to ensure clean state.
+    recreateContext();
+
     if (!m_ctx) {
         m_isGenerating.store(false);
-        emit generationError("SD model was unloaded");
+        emit generationError("SD context creation failed");
         return;
     }
 
@@ -271,129 +300,6 @@ void SDWorker::generateTexture(const QString &prompt, const QString &outputPath)
 #endif
 }
 
-void SDWorker::generateFromImage(const QString &prompt, const QString &inputImagePath, const QString &outputPath, float strength)
-{
-#ifdef ENABLE_STABLE_DIFFUSION
-    if (!isModelLoaded()) {
-        emit generationError("No SD model loaded");
-        return;
-    }
-
-    if (m_isGenerating.load()) {
-        emit generationError("Generation already in progress");
-        return;
-    }
-
-    // LCOV_EXCL_START — requires a loaded SD model and input image
-    // Load input image
-    QImage inputImg(inputImagePath);
-    if (inputImg.isNull()) {
-        emit generationError(QString("Failed to load input image: %1").arg(inputImagePath));
-        return;
-    }
-
-    // Convert to RGB888 for sd.cpp
-    QImage rgbImg = inputImg.convertToFormat(QImage::Format_RGB888);
-
-    m_stopRequested.store(false);
-    m_isGenerating.store(true);
-
-    QMutexLocker locker(&m_mutex);
-
-    if (!m_ctx) {
-        m_isGenerating.store(false);
-        emit generationError("SD model was unloaded");
-        return;
-    }
-
-    emit generationStarted();
-
-    qDebug() << "SDWorker: img2img with prompt:" << prompt << "strength:" << strength;
-    qDebug() << "SDWorker: Input:" << inputImagePath << rgbImg.width() << "x" << rgbImg.height();
-
-    sd_set_progress_callback(progressCallback, this);
-
-    sd_image_t *result = nullptr;
-    try {
-        sd_img_gen_params_t img_params;
-        sd_img_gen_params_init(&img_params);
-
-        QByteArray promptUtf8 = prompt.toUtf8();
-        QByteArray negPromptUtf8 = m_settings.negativePrompt.toUtf8();
-
-        img_params.prompt = promptUtf8.constData();
-        img_params.negative_prompt = negPromptUtf8.isEmpty() ? "" : negPromptUtf8.constData();
-        img_params.width = rgbImg.width();
-        img_params.height = rgbImg.height();
-        img_params.sample_params.sample_steps = m_settings.steps;
-        img_params.sample_params.guidance.txt_cfg = m_settings.cfgScale;
-        img_params.seed = m_settings.seed;
-        img_params.sample_params.sample_method = static_cast<enum sample_method_t>(m_settings.sampleMethod);
-
-        // Set init image for img2img
-        img_params.init_image.width = rgbImg.width();
-        img_params.init_image.height = rgbImg.height();
-        img_params.init_image.channel = 3;
-        img_params.init_image.data = rgbImg.bits();
-        img_params.strength = strength;
-
-        result = generate_image(m_ctx, &img_params);
-    } catch (const std::exception &e) {
-        sd_set_progress_callback(nullptr, nullptr);
-        m_isGenerating.store(false);
-        emit generationError(QString("Exception during img2img: %1").arg(e.what()));
-        return;
-    } catch (...) {
-        sd_set_progress_callback(nullptr, nullptr);
-        m_isGenerating.store(false);
-        emit generationError("Unknown exception during img2img generation");
-        return;
-    }
-
-    sd_set_progress_callback(nullptr, nullptr);
-
-    if (m_stopRequested.load()) {
-        if (result) free(result);
-        m_isGenerating.store(false);
-        emit generationStopped();
-        return;
-    }
-
-    if (!result || !result->data) {
-        if (result) free(result);
-        m_isGenerating.store(false);
-        emit generationError("Failed to generate image - no output produced");
-        return;
-    }
-
-    QImage::Format format = (result->channel == 4) ? QImage::Format_RGBA8888 : QImage::Format_RGB888;
-    int bytesPerLine = static_cast<int>(result->width * result->channel);
-    size_t dataSize = static_cast<size_t>(bytesPerLine) * result->height;
-    QByteArray pixelCopy(reinterpret_cast<const char*>(result->data), dataSize);
-    QImage imgCopy(reinterpret_cast<const uchar*>(pixelCopy.constData()),
-                   result->width, result->height, bytesPerLine, format);
-    imgCopy = imgCopy.copy();
-
-    free(result);
-
-    bool saved = imgCopy.save(outputPath, "PNG");
-    m_isGenerating.store(false);
-
-    if (saved) {
-        qDebug() << "SDWorker: img2img texture saved to" << outputPath;
-        emit generationCompleted(outputPath);
-    } else {
-        emit generationError(QString("Failed to save img2img texture to: %1").arg(outputPath));
-    }
-    // LCOV_EXCL_STOP
-#else
-    Q_UNUSED(prompt);
-    Q_UNUSED(inputImagePath);
-    Q_UNUSED(outputPath);
-    Q_UNUSED(strength);
-    emit generationError("Stable Diffusion support is not enabled");
-#endif
-}
 
 #ifdef ENABLE_STABLE_DIFFUSION
 void SDWorker::progressCallback(int step, int steps, float time, void *data)
diff --git a/src/SDWorker.h b/src/SDWorker.h
index 215b1f0..8d9325e 100644
--- a/src/SDWorker.h
+++ b/src/SDWorker.h
@@ -44,7 +44,6 @@ class SDWorker : public QObject
 
 public slots:
     void generateTexture(const QString &prompt, const QString &outputPath);
-    void generateFromImage(const QString &prompt, const QString &inputImagePath, const QString &outputPath, float strength);
 
 signals:
     void modelLoaded(const QString &modelPath);
@@ -70,6 +69,7 @@ public slots:
 #ifdef ENABLE_STABLE_DIFFUSION
     sd_ctx_t *m_ctx = nullptr;
 
+    void recreateContext();
     static void progressCallback(int step, int steps, float time, void *data);
 #endif
 };