diff --git a/packages/server/src/utils/directory-suggestions.test.ts b/packages/server/src/utils/directory-suggestions.test.ts
index c7d4126af1..9d9015aed0 100644
--- a/packages/server/src/utils/directory-suggestions.test.ts
+++ b/packages/server/src/utils/directory-suggestions.test.ts
@@ -1,3 +1,4 @@
+import { createHook } from "node:async_hooks";
 import { execFileSync } from "node:child_process";
 import {
   mkdtempSync,
@@ -1024,3 +1025,57 @@ describe("home-tree scan cost", () => {
     },
   );
 });
+
+// Every pending fs call holds one of libuv's shared threadpool threads (4 by default). A read that
+// never returns, such as one on a hung network mount, keeps its thread, so searches that pile up
+// while the user types must not be able to take every thread from the rest of the daemon.
+describe("filesystem threads held by concurrent searches", () => {
+  const SEARCHES = 8;
+  let scanRoot: string;
+
+  beforeEach(() => {
+    scanRoot = realpathSync.native(mkdtempSync(path.join(tmpdir(), "directory-scan-threads-")));
+    for (let branch = 0; branch < 20; branch += 1) {
+      mkdirSync(path.join(scanRoot, `b${branch}`, "inner", "leaf"), { recursive: true });
+    }
+  });
+
+  afterEach(() => {
+    rmSync(scanRoot, { recursive: true, force: true });
+  });
+
+  async function peakPendingFilesystemRequests(run: () => Promise<unknown>): Promise<number> {
+    const pending = new Set<number>();
+    let peak = 0;
+    const hook = createHook({
+      init(asyncId, type) {
+        if (type !== "FSREQPROMISE" && type !== "FSREQCALLBACK") return;
+        pending.add(asyncId);
+        peak = Math.max(peak, pending.size);
+      },
+      before(asyncId) {
+        pending.delete(asyncId);
+      },
+    });
+    hook.enable();
+    try {
+      await run();
+    } finally {
+      hook.disable();
+    }
+    return peak;
+  }
+
+  function searchWhileTyping() {
+    const queries = Array.from({ length: SEARCHES }, (_, index) => `nomatch${index}`);
+    return Promise.all(
+      queries.map((query) => searchAbsoluteDirectoryPaths({ homeDir: scanRoot, query })),
+    );
+  }
+
+  it("leaves threadpool threads free for the rest of the daemon", async () => {
+    const peak = await peakPendingFilesystemRequests(searchWhileTyping);
+
+    expect(peak).toBeLessThanOrEqual(2);
+  });
+});
diff --git a/packages/server/src/utils/directory-suggestions.ts b/packages/server/src/utils/directory-suggestions.ts
index 35e8f5154b..39baf3a44c 100644
--- a/packages/server/src/utils/directory-suggestions.ts
+++ b/packages/server/src/utils/directory-suggestions.ts
@@ -1,6 +1,7 @@
 import type { Dirent, Stats } from "node:fs";
-import { readdir, realpath, stat } from "node:fs/promises";
+import * as fs from "node:fs/promises";
 import path from "node:path";
+import pLimit from "p-limit";
 import { scorePathMatch, type MatchScore } from "@getpaseo/protocol/search/text-match";
 import { isPathInsideRoot } from "./path.js";
 import { runGitCommand } from "./run-git-command.js";
@@ -102,6 +103,24 @@ const NO_SEGMENT_INDEX = Number.MAX_SAFE_INTEGER;
 const NO_MATCH_OFFSET = Number.MAX_SAFE_INTEGER;
 const NO_FUZZY_SCORE = Number.MAX_SAFE_INTEGER;
 const NO_MATCH_TIER = 5;
+
+// Each pending fs call holds one of libuv's shared threadpool threads (4 by default), and a read on
+// a hung mount or a protected folder never returns. Searches pile up while the user types, so they
+// share two threads and leave the rest of the pool to the daemon.
+const filesystemCalls = pLimit(2);
+
+function readdir(directory: string): Promise<Dirent[]> {
+  return filesystemCalls(() => fs.readdir(directory, { withFileTypes: true }));
+}
+
+function realpath(target: string): Promise<string> {
+  return filesystemCalls(() => fs.realpath(target));
+}
+
+function stat(target: string): Promise<Stats> {
+  return filesystemCalls(() => fs.stat(target));
+}
+
 export const WORKSPACE_SEARCH_HIDDEN_DIRECTORIES = [
   ".agents",
   ".claude",
@@ -655,7 +674,7 @@ async function readChildren(directory: string): Promise<ChildEntry[]> {
   ) {
     rawEntries = cached.entries;
   } else {
-    const dirents = await readdir(directory, { withFileTypes: true }).catch(() => [] as Dirent[]);
+    const dirents = await readdir(directory).catch(() => [] as Dirent[]);
     rawEntries = dirents
       .map(toRawChildEntry)
       .filter((entry): entry is RawChildEntry => entry !== null)