diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/init.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/init.go
index 1c944f613c7..c6ff3665d0d 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/init.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/init.go
@@ -1259,8 +1259,8 @@ func (a *InitAction) configureModelChoice(
 	}
 
 	modelConfigChoices := []*azdext.SelectChoice{
-		{Label: "Deploy new model(s) from the catalog", Value: "new"},
-		{Label: "Use existing model deployment(s) from a Foundry project", Value: "existing"},
+		{Label: "Deploy new model(s) (with new Foundry project)", Value: "new"},
+		{Label: "Use an existing Foundry project", Value: "existing"},
 	}
 
 	var modelConfigChoice string
diff --git a/cli/azd/extensions/azure.ai.agents/internal/cmd/init_from_code.go b/cli/azd/extensions/azure.ai.agents/internal/cmd/init_from_code.go
index 1ded95ab710..f72198531de 100644
--- a/cli/azd/extensions/azure.ai.agents/internal/cmd/init_from_code.go
+++ b/cli/azd/extensions/azure.ai.agents/internal/cmd/init_from_code.go
@@ -491,8 +491,8 @@ func (a *InitFromCodeAction) createDefinitionFromLocalAgent(ctx context.Context)
 
 	// Ask user how they want to configure a model
 	modelConfigChoices := []*azdext.SelectChoice{
-		{Label: "Deploy a new model from the catalog", Value: "new"},
-		{Label: "Select an existing model deployment from a Foundry project", Value: "existing"},
+		{Label: "Deploy new model(s) (with new Foundry project)", Value: "new"},
+		{Label: "Use an existing Foundry project", Value: "existing"},
 		{Label: "Skip model configuration", Value: "skip"},
 	}