diff --git a/ui/desktop/src/components/settings/extensions/modal/ExtensionModal.test.tsx b/ui/desktop/src/components/settings/extensions/modal/ExtensionModal.test.tsx
index 377bc56b..55abed08 100644
--- a/ui/desktop/src/components/settings/extensions/modal/ExtensionModal.test.tsx
+++ b/ui/desktop/src/components/settings/extensions/modal/ExtensionModal.test.tsx
@@ -5,6 +5,162 @@ import ExtensionModal from './ExtensionModal';
 import { ExtensionFormData } from '../utils';
 
 describe('ExtensionModal', () => {
+  it('does not show unsaved changes dialog when closing without modifications', async () => {
+    const user = userEvent.setup();
+    const mockOnSubmit = vi.fn();
+    const mockOnClose = vi.fn();
+
+    const initialData: ExtensionFormData = {
+      name: 'Existing Extension',
+      description: 'An existing extension',
+      type: 'stdio',
+      cmd: 'npx some-mcp-server',
+      endpoint: '',
+      enabled: true,
+      timeout: 300,
+      envVars: [
+        { key: 'API_KEY', value: '••••••••', isEdited: false },
+        { key: 'OTHER_VAR', value: '••••••••', isEdited: false },
+      ],
+      headers: [],
+    };
+
+    render(
+      <ExtensionModal
+        title="Edit Extension"
+        initialData={initialData}
+        onClose={mockOnClose}
+        onSubmit={mockOnSubmit}
+        submitLabel="Save"
+        modalType="edit"
+      />
+    );
+
+    const cancelButton = screen.getByRole('button', { name: 'Cancel' });
+    await user.click(cancelButton);
+
+    expect(mockOnClose).toHaveBeenCalled();
+
+    expect(screen.queryByText('Unsaved Changes')).not.toBeInTheDocument();
+  });
+
+  it('shows unsaved changes dialog when name is modified', async () => {
+    const user = userEvent.setup();
+    const mockOnSubmit = vi.fn();
+    const mockOnClose = vi.fn();
+
+    const initialData: ExtensionFormData = {
+      name: 'Original Name',
+      description: 'An existing extension',
+      type: 'stdio',
+      cmd: 'npx some-mcp-server',
+      endpoint: '',
+      enabled: true,
+      timeout: 300,
+      envVars: [],
+      headers: [],
+    };
+
+    render(
+      <ExtensionModal
+        title="Edit Extension"
+        initialData={initialData}
+        onClose={mockOnClose}
+        onSubmit={mockOnSubmit}
+        submitLabel="Save"
+        modalType="edit"
+      />
+    );
+
+    const nameInput = screen.getByPlaceholderText('Enter extension name...');
+    await user.clear(nameInput);
+    await user.type(nameInput, 'New Name');
+
+    const cancelButton = screen.getByRole('button', { name: 'Cancel' });
+    await user.click(cancelButton);
+
+    expect(screen.getByText('Unsaved Changes')).toBeInTheDocument();
+    expect(mockOnClose).not.toHaveBeenCalled();
+  });
+
+  it('shows unsaved changes dialog when description is modified', async () => {
+    const user = userEvent.setup();
+    const mockOnSubmit = vi.fn();
+    const mockOnClose = vi.fn();
+
+    const initialData: ExtensionFormData = {
+      name: 'Test Extension',
+      description: 'Original description',
+      type: 'stdio',
+      cmd: 'npx some-mcp-server',
+      endpoint: '',
+      enabled: true,
+      timeout: 300,
+      envVars: [],
+      headers: [],
+    };
+
+    render(
+      <ExtensionModal
+        title="Edit Extension"
+        initialData={initialData}
+        onClose={mockOnClose}
+        onSubmit={mockOnSubmit}
+        submitLabel="Save"
+        modalType="edit"
+      />
+    );
+
+    const descriptionInput = screen.getByPlaceholderText('Optional description...');
+    await user.clear(descriptionInput);
+    await user.type(descriptionInput, 'New description');
+
+    const cancelButton = screen.getByRole('button', { name: 'Cancel' });
+    await user.click(cancelButton);
+
+    expect(screen.getByText('Unsaved Changes')).toBeInTheDocument();
+    expect(mockOnClose).not.toHaveBeenCalled();
+  });
+
+  it('shows unsaved changes dialog when timeout is modified', async () => {
+    const user = userEvent.setup();
+    const mockOnSubmit = vi.fn();
+    const mockOnClose = vi.fn();
+
+    const initialData: ExtensionFormData = {
+      name: 'Test Extension',
+      description: 'An extension',
+      type: 'stdio',
+      cmd: 'npx some-mcp-server',
+      endpoint: '',
+      enabled: true,
+      timeout: 300,
+      envVars: [],
+      headers: [],
+    };
+
+    render(
+      <ExtensionModal
+        title="Edit Extension"
+        initialData={initialData}
+        onClose={mockOnClose}
+        onSubmit={mockOnSubmit}
+        submitLabel="Save"
+        modalType="edit"
+      />
+    );
+
+    const timeoutInput = screen.getByDisplayValue('300');
+    await user.clear(timeoutInput);
+    await user.type(timeoutInput, '600');
+
+    const cancelButton = screen.getByRole('button', { name: 'Cancel' });
+    await user.click(cancelButton);
+
+    expect(screen.getByText('Unsaved Changes')).toBeInTheDocument();
+    expect(mockOnClose).not.toHaveBeenCalled();
+  });
+
   it('creates a http_streamable extension', async () => {
     const user = userEvent.setup();
     const mockOnSubmit = vi.fn();
diff --git a/ui/desktop/src/components/settings/extensions/modal/ExtensionModal.tsx b/ui/desktop/src/components/settings/extensions/modal/ExtensionModal.tsx
index 947a6d02..e6cbd4d5 100644
--- a/ui/desktop/src/components/settings/extensions/modal/ExtensionModal.tsx
+++ b/ui/desktop/src/components/settings/extensions/modal/ExtensionModal.tsx
@@ -47,6 +47,12 @@ export default function ExtensionModal({
 
   // Function to check if form has been modified
   const hasFormChanges = (): boolean => {
+    // Check basic fields
+    const nameChanged = formData.name !== initialData.name;
+    const descriptionChanged = formData.description !== initialData.description;
+    const typeChanged = formData.type !== initialData.type;
+    const timeoutChanged = formData.timeout !== initialData.timeout;
+
     // Check if command/endpoint has changed
     const commandChanged =
       (formData.type === 'stdio' && formData.cmd !== initialData.cmd) ||
@@ -54,35 +60,30 @@ export default function ExtensionModal({
       (formData.type === 'streamable_http' && formData.endpoint !== initialData.endpoint);
 
     // Check if headers have changed
-    const headersChanged = formData.headers.some((header) => header.isEdited === true);
+    const headersEdited = formData.headers.some((header) => header.isEdited === true);
+    const headersAdded = formData.headers.length > initialData.headers.length;
+    const headersRemoved = formData.headers.length < initialData.headers.length;
 
     // Check if any environment variables have been modified
     const envVarsChanged = formData.envVars.some((envVar) => envVar.isEdited === true);
-
-    // Check if new env vars have been added
     const envVarsAdded = formData.envVars.length > initialData.envVars.length;
-
-    // Check if env vars have been removed
     const envVarsRemoved = formData.envVars.length < initialData.envVars.length;
 
-    // Check if any environment variable fields have text entered (even if not marked as edited)
-    const envVarsHaveText = formData.envVars.some(
-      (envVar) =>
-        (envVar.key.trim() !== '' || envVar.value.trim() !== '') &&
-        // Don't count placeholder values for existing secrets
-        envVar.value !== '••••••••'
-    );
-
     // Check if there are pending environment variables or headers being typed
     const hasPendingInput = hasPendingEnvVars || hasPendingHeaders;
 
     return (
+      nameChanged ||
+      descriptionChanged ||
+      typeChanged ||
+      timeoutChanged ||
       commandChanged ||
-      headersChanged ||
+      headersEdited ||
+      headersAdded ||
+      headersRemoved ||
       envVarsChanged ||
       envVarsAdded ||
       envVarsRemoved ||
-      envVarsHaveText ||
       hasPendingInput
     );
   };