diff --git a/packages/frontend/core/src/blocksuite/ai/entries/space/setup-space.ts b/packages/frontend/core/src/blocksuite/ai/entries/space/setup-space.ts
index e80a93214f..b069b0d590 100644
--- a/packages/frontend/core/src/blocksuite/ai/entries/space/setup-space.ts
+++ b/packages/frontend/core/src/blocksuite/ai/entries/space/setup-space.ts
@@ -1,9 +1,34 @@
-import { TextSelection } from '@blocksuite/affine/std';
+import type { RichText } from '@blocksuite/affine/rich-text';
+import { type EditorHost, TextSelection } from '@blocksuite/affine/std';
 
 import { handleInlineAskAIAction } from '../../actions/doc-handler';
 import { AIProvider } from '../../provider';
 import type { AffineAIPanelWidget } from '../../widgets/ai-panel/ai-panel';
 
+function isSpaceEvent(event: KeyboardEvent) {
+  return event.key === ' ' && event.which === 32 && !event.isComposing;
+}
+
+function insertSpace(host: EditorHost) {
+  const textSelection = host.selection.find(TextSelection);
+  if (!textSelection || !textSelection.isCollapsed()) return;
+
+  const blockComponent = host.view.getBlock(textSelection.from.blockId);
+  if (!blockComponent) return;
+
+  const richText = blockComponent.querySelector('rich-text') as RichText | null;
+  if (!richText) return;
+
+  const inlineEditor = richText.inlineEditor;
+  inlineEditor?.insertText(
+    {
+      index: textSelection.from.index,
+      length: 0,
+    },
+    ' '
+  );
+}
+
 export function setupSpaceAIEntry(panel: AffineAIPanelWidget) {
   // Background: The keydown event triggered by a space may originate from:
   // 1. Normal space insertion
@@ -18,12 +43,19 @@ export function setupSpaceAIEntry(panel: AffineAIPanelWidget) {
     const host = panel.host;
     const keyboardState = ctx.get('keyboardState');
     const event = keyboardState.raw;
-    if (
-      AIProvider.actions.chat &&
-      event.key === ' ' &&
-      event.which === 32 &&
-      !event.isComposing
-    ) {
+    if (AIProvider.actions.chat && isSpaceEvent(event)) {
+      // If the AI panel is in the input state and the input content is empty,
+      // insert a space back into the editor.
+      if (panel.state === 'input') {
+        const input = panel.shadowRoot?.querySelector('ai-panel-input');
+        if (input?.textarea.value.trim() === '') {
+          event.preventDefault();
+          insertSpace(host);
+          panel.hide();
+          return;
+        }
+      }
+
       const selection = host.selection.find(TextSelection);
       if (selection && selection.isCollapsed() && selection.from.index === 0) {
         const block = host.view.getBlock(selection.blockId);
diff --git a/tests/affine-cloud-copilot/e2e/basic/guidance.spec.ts b/tests/affine-cloud-copilot/e2e/basic/guidance.spec.ts
index 6bbd41bb3d..676550aec0 100644
--- a/tests/affine-cloud-copilot/e2e/basic/guidance.spec.ts
+++ b/tests/affine-cloud-copilot/e2e/basic/guidance.spec.ts
@@ -35,4 +35,20 @@ test.describe('AIBasic/Guidance', () => {
     await page.keyboard.press('Enter');
     await expect(page.locator('affine-ai-panel-widget')).not.toBeVisible();
   });
+
+  test('should hide AI panel and insert space back to editor when space is pressed on empty input', async ({
+    page,
+    utils,
+  }) => {
+    await utils.editor.focusToEditor(page);
+    await page.keyboard.press('Space');
+    await expect(page.locator('affine-ai-panel-widget')).toBeVisible();
+
+    await page.keyboard.press('Space');
+    await expect(page.locator('affine-ai-panel-widget')).not.toBeVisible();
+    await expect(async () => {
+      const content = await utils.editor.getEditorContent(page, false);
+      expect(content).toBe(' ');
+    }).toPass({ timeout: 5000 });
+  });
 });
diff --git a/tests/affine-cloud-copilot/e2e/utils/editor-utils.ts b/tests/affine-cloud-copilot/e2e/utils/editor-utils.ts
index 04017b6b0b..7d07b3e8cc 100644
--- a/tests/affine-cloud-copilot/e2e/utils/editor-utils.ts
+++ b/tests/affine-cloud-copilot/e2e/utils/editor-utils.ts
@@ -21,14 +21,20 @@ export class EditorUtils {
     await page.keyboard.press('Enter');
   }
 
-  public static async getEditorContent(page: Page) {
+  public static async getEditorContent(page: Page, trim = true) {
     let content = '';
     let retry = 3;
     while (!content && retry > 0) {
       const lines = await page.$$('page-editor .inline-editor');
       const contents = await Promise.all(lines.map(el => el.innerText()));
       content = contents
-        .map(c => c.replace(/[\u200B-\u200D\uFEFF]/g, '').trim())
+        .map(c => {
+          const invisibleFiltered = c.replace(/[\u200B-\u200D\uFEFF]/g, '');
+          if (trim) {
+            return invisibleFiltered.trim();
+          }
+          return invisibleFiltered;
+        })
         .filter(c => !!c)
         .join('\n');
       if (!content) {