diff --git a/package.json b/package.json
index 086491b..efcc7b7 100644
--- a/package.json
+++ b/package.json
@@ -2,7 +2,7 @@
   "publisher": "kermanx",
   "name": "p2p-live-share",
   "displayName": "P2P Live Share",
-  "version": "0.1.1",
+  "version": "0.1.2",
   "private": true,
   "packageManager": "pnpm@10.28.0",
   "description": "Live collaboration - a peer-to-peer and open source alternative to Live Share.",
@@ -131,6 +131,16 @@
         "title": "Dummy command",
         "category": "P2P Live Share"
       },
+      {
+        "command": "p2p-live-share.undo",
+        "title": "Undo",
+        "category": "P2P Live Share"
+      },
+      {
+        "command": "p2p-live-share.redo",
+        "title": "Redo",
+        "category": "P2P Live Share"
+      },
       {
         "command": "p2p-live-share.scm.openChange",
         "title": "Open Changes",
@@ -165,6 +175,20 @@
         "icon": "$(discard)"
       }
     ],
+    "keybindings": [
+      {
+        "command": "p2p-live-share.undo",
+        "key": "ctrl+z",
+        "mac": "cmd+z",
+        "when": "editorTextFocus && p2p-live-share:inSession"
+      },
+      {
+        "command": "p2p-live-share.redo",
+        "key": "ctrl+shift+z",
+        "mac": "cmd+shift+z",
+        "when": "editorTextFocus && p2p-live-share:inSession"
+      }
+    ],
     "viewsContainers": {
       "activitybar": [
         {
diff --git a/src/fs/common.ts b/src/fs/common.ts
index 9482154..e5b7384 100644
--- a/src/fs/common.ts
+++ b/src/fs/common.ts
@@ -1,5 +1,5 @@
 import type { FileChangeType, TextDocument, TextDocumentChangeReason, Uri } from 'vscode'
-import type * as Y from 'yjs'
+import * as Y from 'yjs'
 import { useDisposable } from 'reactive-vscode'
 import { FileSystemError, Range, window, workspace, WorkspaceEdit } from 'vscode'
 
@@ -9,6 +9,34 @@ export interface FileChangeEvent { uri: string, type: FileChangeType }
 
 const editingUris = new Map<string, number>()
 
+// Module-level registry so undo/redo commands can find the right UndoManager
+const undoManagers = new Map<string, Y.UndoManager>()
+
+export function registerUndoManager(uri: string, um: Y.UndoManager) {
+  undoManagers.set(uri, um)
+}
+
+export function unregisterUndoManager(uri: string) {
+  undoManagers.delete(uri)
+}
+
+export function findUndoManager(uri: string): Y.UndoManager | undefined {
+  return undoManagers.get(uri)
+}
+
+/** Symbol to mark locally-originated Y.Doc transactions (for Y.UndoManager trackedOrigins) */
+const LocalOrigin = Symbol('local')
+
+/** Create a Y.UndoManager that only tracks local changes */
+export function createDocUndoManager(uri: string, doc: Y.Doc): Y.UndoManager {
+  const um = new Y.UndoManager(doc.getText(), {
+    trackedOrigins: new Set([LocalOrigin]),
+    captureTimeout: 200,
+  })
+  registerUndoManager(uri, um)
+  return um
+}
+
 export function useTextDocumentWatcher(getDoc: (document: TextDocument) => Y.Doc | null | undefined) {
   useDisposable(workspace.onDidChangeTextDocument(({ document, contentChanges, reason }) => {
     if (contentChanges.length === 0 || editingUris.has(document.uri.toString())) {
@@ -27,13 +55,18 @@ export function useTextDocumentWatcher(getDoc: (document: TextDocument) => Y.Doc
         text.delete(change.rangeOffset, change.rangeLength)
         text.insert(change.rangeOffset, change.text)
       }
-    }, { reason })
+    }, LocalOrigin)
   }))
 }
 
-export function setupTextDocumentUpdater(uri_: Uri, doc: Y.Doc) {
+export function setupTextDocumentUpdater(
+  uri_: Uri,
+  doc: Y.Doc,
+  um?: Y.UndoManager,
+) {
   doc.getText().observe((event) => {
-    if (event.transaction.local)
+    // Skip local changes UNLESS they came from UndoManager (needs to sync to editor)
+    if (event.transaction.local && event.transaction.origin !== um)
       return
     applyTextDocumentDelta(uri_, event.delta, event.transaction.origin?.reason)
   })
diff --git a/src/fs/guest.ts b/src/fs/guest.ts
index cb7f67e..c8dfdc4 100644
--- a/src/fs/guest.ts
+++ b/src/fs/guest.ts
@@ -6,7 +6,7 @@ import type { FileChangeEvent } from './common'
 import { computed, defineConfig, useDisposable } from 'reactive-vscode'
 import { FileType, Uri, workspace } from 'vscode'
 import * as Y from 'yjs'
-import { forceUpdateContent, handleFsError, setupTextDocumentUpdater, useTextDocumentWatcher } from './common'
+import { createDocUndoManager, forceUpdateContent, handleFsError, setupTextDocumentUpdater, unregisterUndoManager, useTextDocumentWatcher } from './common'
 import { CustomUriScheme, useFsProvider } from './provider'
 
 const filesConfig = defineConfig<any>('files')
@@ -18,6 +18,7 @@ export function useGuestFs(connection: Connection, rpc: BirpcReturn<HostFunction
     doc: Y.Doc
     mtime: number
     ctime?: number
+    undoManager: Y.UndoManager
   }>()
   const [send, recv] = connection.makeAction<Uint8Array, [string, TextDocumentChangeReason?]>('texts')
 
@@ -30,11 +31,13 @@ export function useGuestFs(connection: Connection, rpc: BirpcReturn<HostFunction
 
   async function trackContent(uri: string) {
     const doc = new Y.Doc()
+    const undoManager = createDocUndoManager(uri, doc)
     const init = await rpc.trackContent({ guestId: connection.selfId, uri })
     Y.applyUpdateV2(doc, init)
     files.set(uri, {
       doc,
       mtime: Date.now(),
+      undoManager,
     })
 
     doc.on('updateV2', async (update: Uint8Array, origin: any) => {
@@ -42,7 +45,7 @@ export function useGuestFs(connection: Connection, rpc: BirpcReturn<HostFunction
         return
       await send(update, hostId, [uri, origin?.reason])
     })
-    setupTextDocumentUpdater(Uri.parse(uri), doc)
+    setupTextDocumentUpdater(Uri.parse(uri), doc, undoManager)
   }
 
   useTextDocumentWatcher((document) => {
@@ -63,6 +66,7 @@ export function useGuestFs(connection: Connection, rpc: BirpcReturn<HostFunction
   }))
   useDisposable(workspace.onDidCloseTextDocument(({ uri }) => {
     if (uri.scheme === CustomUriScheme) {
+      unregisterUndoManager(uri.toString())
       files.delete(uri.toString())
       rpc.untrackContent({ guestId: connection.selfId, uri: uri.toString() })
     }
diff --git a/src/fs/host.ts b/src/fs/host.ts
index 325fb7d..29179a4 100644
--- a/src/fs/host.ts
+++ b/src/fs/host.ts
@@ -6,7 +6,7 @@ import picomatch from 'picomatch'
 import { useDisposable } from 'reactive-vscode'
 import { Disposable, FileChangeType, RelativePattern, Uri, workspace } from 'vscode'
 import * as Y from 'yjs'
-import { forceUpdateContent, fsErrorWrapper, setupTextDocumentUpdater, useTextDocumentWatcher } from './common'
+import { createDocUndoManager, forceUpdateContent, fsErrorWrapper, setupTextDocumentUpdater, unregisterUndoManager, useTextDocumentWatcher } from './common'
 
 export function useHostFs(connection: Connection) {
   const { toHostUri, toTrackUri } = connection
@@ -14,6 +14,7 @@ export function useHostFs(connection: Connection) {
   const files = new Map<string, {
     doc: Y.Doc
     trackers: Set<string>
+    undoManager: Y.UndoManager
   }>()
 
   const [send, recv] = connection.makeAction<Uint8Array, [string, TextDocumentChangeReason?]>('texts')
@@ -35,7 +36,8 @@ export function useHostFs(connection: Connection) {
     else {
       const doc = new Y.Doc()
       const trackers = new Set<string>([guestId])
-      files.set(uri, { doc, trackers })
+      const undoManager = createDocUndoManager(uri, doc)
+      files.set(uri, { doc, trackers, undoManager })
 
       doc.on('updateV2', async (update: Uint8Array, origin: any) => {
         if (origin?.peerId)
@@ -44,7 +46,7 @@ export function useHostFs(connection: Connection) {
       })
 
       const uri_ = toHostUri(Uri.parse(uri))
-      setupTextDocumentUpdater(uri_, doc)
+      setupTextDocumentUpdater(uri_, doc, undoManager)
 
       const newText = content ?? new TextDecoder().decode(await workspace.fs.readFile(uri_))
       doc.getText().insert(0, newText)
@@ -58,6 +60,7 @@ export function useHostFs(connection: Connection) {
       file.trackers.delete(guestId)
       if (file.trackers.size === 0) {
         files.delete(uri)
+        unregisterUndoManager(uri)
         file.doc.destroy()
       }
     }
diff --git a/src/fs/undo-manager.test.ts b/src/fs/undo-manager.test.ts
new file mode 100644
index 0000000..a710f7f
--- /dev/null
+++ b/src/fs/undo-manager.test.ts
@@ -0,0 +1,133 @@
+import assert from 'node:assert/strict'
+// eslint-disable-next-line test/no-import-node-test
+import { describe, it } from 'node:test'
+import * as Y from 'yjs'
+
+/**
+ * 独立测试 Y.UndoManager 在协同编辑场景下的行为。
+ * 不能直接 import common.ts（依赖 vscode 模块），
+ * 所以这里用和 common.ts 相同的逻辑独立构造测试。
+ */
+const LocalOrigin = Symbol('local')
+
+function createUndoManager(doc: Y.Doc): Y.UndoManager {
+  return new Y.UndoManager(doc.getText(), {
+    trackedOrigins: new Set([LocalOrigin]),
+    captureTimeout: 200,
+  })
+}
+
+describe('Y.UndoManager collaborative undo behavior', () => {
+  it('tracks local changes, ignores remote changes', () => {
+    const doc = new Y.Doc()
+    const um = createUndoManager(doc)
+
+    // 模拟本地编辑
+    doc.transact(() => {
+      doc.getText().insert(0, 'local')
+    }, LocalOrigin)
+    assert.equal(um.undoStack.length, 1, 'should track local change')
+
+    // 模拟远程变更 (origin !== LocalOrigin)
+    doc.transact(() => {
+      doc.getText().insert(5, '-remote')
+    }, { peerId: 'peer' })
+    assert.equal(um.undoStack.length, 1, 'should NOT track remote change as new item')
+
+    assert.equal(doc.getText().toString(), 'local-remote')
+
+    // Undo: 只撤销本地变更
+    um.undo()
+    assert.equal(doc.getText().toString(), '-remote',
+      `undo should leave only remote text, got "${doc.getText().toString()}"`)
+
+    doc.destroy()
+  })
+
+  it('correctly undoes with concurrent interleaved edits', () => {
+    const doc = new Y.Doc()
+    const localUm = createUndoManager(doc)
+
+    // 本地用户插入 "hello" — 5 个 CRDT items
+    doc.transact(() => {
+      doc.getText().insert(0, 'hello')
+    }, LocalOrigin)
+
+    assert.equal(doc.getText().toString(), 'hello')
+
+    // 模拟远程 peer 在 "hel" 和 "lo" 之间插入 "X"
+    // 用 applyUpdateV2 模拟远程更新 — origin 不是 LocalOrigin
+    const remoteDoc = new Y.Doc()
+    Y.applyUpdateV2(remoteDoc, Y.encodeStateAsUpdateV2(doc))
+    remoteDoc.getText().insert(3, 'X')
+    const remoteUpdate = Y.encodeStateAsUpdateV2(remoteDoc)
+
+    // 应用远程更新
+    Y.applyUpdateV2(doc, remoteUpdate, { peerId: 'remote' })
+    assert.equal(doc.getText().toString(), 'helXlo',
+      `concurrent edit should produce "helXlo", got "${doc.getText().toString()}"`)
+
+    // 本地 undo — UndoManager 知道 "hello" 对应的 CRDT items
+    localUm.undo()
+    assert.equal(doc.getText().toString(), 'X',
+      `undo should leave only "X", got "${doc.getText().toString()}"`)
+
+    doc.destroy()
+    remoteDoc.destroy()
+  })
+
+  it('undo then redo restores original text', () => {
+    const doc = new Y.Doc()
+    const um = createUndoManager(doc)
+
+    doc.transact(() => {
+      doc.getText().insert(0, 'test')
+    }, LocalOrigin)
+
+    assert.equal(doc.getText().toString(), 'test')
+
+    um.undo()
+    assert.equal(doc.getText().toString(), '')
+
+    um.redo()
+    assert.equal(doc.getText().toString(), 'test')
+
+    assert.equal(um.undoStack.length, 1)
+    assert.equal(um.redoStack.length, 0)
+
+    doc.destroy()
+  })
+
+  it('only undoes local transactions, not remote ones mixed in between', () => {
+    const doc = new Y.Doc()
+    const um = createUndoManager(doc)
+
+    // 本地插入 "A"
+    doc.transact(() => doc.getText().insert(0, 'A'), LocalOrigin)
+    // 远程插入 "B" 在 "A" 之后
+    doc.transact(() => doc.getText().insert(1, 'B'), { peerId: 'peer' })
+    // 本地插入 "C" 在 "B" 之后
+    doc.transact(() => doc.getText().insert(2, 'C'), LocalOrigin)
+
+    assert.equal(doc.getText().toString(), 'ABC')
+    // captureTimeout=200ms 可能把两个本地事务合并为一个 undo step
+    // 重要的是：撤销后只删除本地插入的字符，不删远程的 "B"
+    assert.ok(um.undoStack.length >= 1, 'should have at least 1 local undo item')
+
+    // 撤销所有本地事务
+    while (um.undoStack.length > 0)
+      um.undo()
+
+    assert.equal(doc.getText().toString(), 'B',
+      `after undoing all local changes, only remote "B" should remain, got "${doc.getText().toString()}"`)
+
+    // Redo 恢复本地变更
+    while (um.redoStack.length > 0)
+      um.redo()
+
+    assert.equal(doc.getText().toString(), 'ABC',
+      `after redo all should be "ABC", got "${doc.getText().toString()}"`)
+
+    doc.destroy()
+  })
+})
diff --git a/src/session/index.ts b/src/session/index.ts
index f911e23..08b0189 100644
--- a/src/session/index.ts
+++ b/src/session/index.ts
@@ -1,6 +1,7 @@
 import { computed, defineService, onScopeDispose, shallowRef, useCommand, useVscodeContext, watch } from 'reactive-vscode'
 import { commands, env, Uri, window, workspace } from 'vscode'
 import { version } from '../../package.json'
+import { findUndoManager } from '../fs/common'
 import { CustomUriScheme } from '../fs/provider'
 import { copyShareLink, inquireHostConfig, makeTrackUri, parseTrackUri, validateShareLink } from '../sync/share'
 import { useUsers } from '../ui/users'
@@ -205,11 +206,29 @@ export const useActiveSession = defineService(() => {
   useVscodeContext('p2p-live-share:isHost', computed(() => session.value?.role === 'host'))
   useVscodeContext('p2p-live-share:isGuest', computed(() => session.value?.role === 'guest'))
 
+  function activeTrackUri(): string | undefined {
+    const editor = window.activeTextEditor
+    if (!editor || !session.value) return
+    return session.value.role === 'host'
+      ? toTrackUri(editor.document.uri)?.toString()
+      : editor.document.uri.toString()
+  }
+
   useCommand('p2p-live-share.host', host)
   useCommand('p2p-live-share.join', () => join(false))
   useCommand('p2p-live-share.joinNewWindow', () => join(true))
   useCommand('p2p-live-share.leave', leave)
   useCommand('p2p-live-share.stop', leave)
+  useCommand('p2p-live-share.undo', () => {
+    const uri = activeTrackUri()
+    const um = uri && findUndoManager(uri)
+    um ? um.undo() : commands.executeCommand('undo')
+  })
+  useCommand('p2p-live-share.redo', () => {
+    const uri = activeTrackUri()
+    const um = uri && findUndoManager(uri)
+    um ? um.redo() : commands.executeCommand('redo')
+  })
   useCommand('p2p-live-share.copyInviteLink', () => {
     if (session.value?.connection) {
       copyShareLink(session.value?.connection.config)
diff --git a/src/terminal/pty/shims/utils.test.ts b/src/terminal/pty/shims/utils.test.ts
new file mode 100644
index 0000000..c0e10ef
--- /dev/null
+++ b/src/terminal/pty/shims/utils.test.ts
@@ -0,0 +1,93 @@
+import assert from 'node:assert/strict'
+import { tmpdir } from 'node:os'
+import { resolve } from 'node:path'
+// eslint-disable-next-line test/no-import-node-test
+import { after, before, describe, it } from 'node:test'
+
+// resolveAsset 的独立实现，不依赖 vscode 的 getAppRoot
+// 用于测试路径解析逻辑本身
+function resolveAssetWithRoot(
+  path: string,
+  appRoot: string,
+  _exists: (p: string) => boolean = existsSync,
+): string {
+  // Strategy 1: Normal node_modules (development / direct install)
+  const normalPath = resolve(appRoot, '..', 'node_modules', path)
+  if (_exists(normalPath))
+    return normalPath
+
+  // Strategy 2: ASAR unpacked directory (native modules bundled with VS Code)
+  const unpackedPath = resolve(appRoot, '..', 'node_modules.asar.unpacked', path)
+  if (_exists(unpackedPath))
+    return unpackedPath
+
+  // Strategy 3: Inside ASAR archive — return the path directly
+  // Electron's require() handles .asar paths transparently
+  return resolve(appRoot, '..', 'node_modules.asar', path)
+}
+
+describe('resolveAsset path resolution', () => {
+  let tmpDir: string
+
+  before(() => {
+    // 用临时目录模拟 VS Code 的 app root 结构
+    tmpDir = resolve(tmpdir(), `p2p-ls-test-${Date.now()}`)
+    // appRoot = tmpDir/out (模拟 VS Code 的 env.appRoot + '/out')
+  })
+
+  after(() => {
+    // Cleanup handled by the test framework's tmp dir
+  })
+
+  it('finds asset in normal node_modules/', () => {
+    // path.resolve 会规范化掉 ..，所以最终路径是 <tmpDir>/node_modules/...
+    const appRoot = resolve(tmpDir, 'out')
+    const expectedBase = resolve(appRoot, '..', 'node_modules')
+    const exists = (p: string) => p.startsWith(expectedBase)
+    const result = resolveAssetWithRoot('node-pty/lib/index.js', appRoot, exists)
+    assert.ok(result.includes('node_modules'), `Expected path to include node_modules, got: ${result}`)
+    assert.ok(!result.includes('.asar'), `Expected non-ASAR path, got: ${result}`)
+  })
+
+  it('falls back to node_modules.asar.unpacked when normal path missing', () => {
+    const appRoot = resolve(tmpDir, 'out')
+    // 精确匹配：normal path 是 <tmpDir>/node_modules/<path>, asar path 是 <tmpDir>/node_modules.asar.unpacked/<path>
+    const normalFilePath = resolve(appRoot, '..', 'node_modules', 'node-pty/lib/index.js')
+    const asarFilePath = resolve(appRoot, '..', 'node_modules.asar.unpacked', 'node-pty/lib/index.js')
+    const exists = (p: string) => {
+      if (p === normalFilePath) return false  // normal path 不存在
+      if (p === asarFilePath) return true     // asar path 存在
+      return false
+    }
+    const result = resolveAssetWithRoot('node-pty/lib/index.js', appRoot, exists)
+    assert.ok(result.includes('node_modules.asar.unpacked'), `Expected .asar.unpacked path, got: ${result}`)
+  })
+
+  it('returns ASAR archive path when both fs paths miss', () => {
+    const exists = (_p: string) => false
+    const appRoot = resolve(tmpDir, 'out')
+    const expected = resolve(appRoot, '..', 'node_modules.asar', 'node-pty/lib/index.js')
+    const result = resolveAssetWithRoot('node-pty/lib/index.js', appRoot, exists)
+    assert.equal(result, expected)
+  })
+
+  it('normal path is tried before asar path', () => {
+    const callOrder: string[] = []
+    const appRoot = resolve(tmpDir, 'out')
+    const normalFilePath = resolve(appRoot, '..', 'node_modules', 'pkg/index.js')
+    const asarFilePath = resolve(appRoot, '..', 'node_modules.asar.unpacked', 'pkg/index.js')
+    const exists = (p: string) => {
+      if (p === normalFilePath) {
+        callOrder.push('normal')
+        return false
+      }
+      if (p === asarFilePath) {
+        callOrder.push('asar')
+        return true
+      }
+      return false
+    }
+    resolveAssetWithRoot('pkg/index.js', appRoot, exists)
+    assert.deepEqual(callOrder, ['normal', 'asar'], 'Normal path must be checked before ASAR path')
+  })
+})
diff --git a/src/terminal/pty/shims/utils.ts b/src/terminal/pty/shims/utils.ts
index a5a822a..051512b 100644
--- a/src/terminal/pty/shims/utils.ts
+++ b/src/terminal/pty/shims/utils.ts
@@ -1,14 +1,24 @@
 import { existsSync } from 'node:fs'
 import { resolve } from 'node:path'
-import { window } from 'vscode'
 import { getAppRoot } from '../utils.js'
 
 export function resolveAsset(path: string) {
   const appRoot = getAppRoot()
-  const resolved = resolve(appRoot, '../node_modules', path)
-  if (!existsSync(resolved)) {
-    window.showErrorMessage(`Asset not found: ${path}`)
-    throw new Error(`Asset not found: ${path}`)
-  }
-  return resolved
+
+  // Strategy 1: Normal node_modules (development / direct install)
+  const normalPath = resolve(appRoot, '../node_modules', path)
+  if (existsSync(normalPath))
+    return normalPath
+
+  // Strategy 2: ASAR unpacked directory (native binaries, worker files)
+  const unpackedPath = resolve(appRoot, '../node_modules.asar.unpacked', path)
+  if (existsSync(unpackedPath))
+    return unpackedPath
+
+  // Strategy 3: Inside ASAR archive — construct the path into node_modules.asar
+  // fs.existsSync cannot see inside .asar, but Electron's require() can.
+  // We return the path directly; if the file doesn't exist there either,
+  // require() will throw a meaningful "Cannot find module" error.
+  const asarPath = resolve(appRoot, '../node_modules.asar', path)
+  return asarPath
 }