diff --git a/packages/kbot/dist/win-64/tauri-app.exe b/packages/kbot/dist/win-64/tauri-app.exe
index 4bd13128..dcea3002 100644
Binary files a/packages/kbot/dist/win-64/tauri-app.exe and b/packages/kbot/dist/win-64/tauri-app.exe differ
diff --git a/packages/kbot/gui/tauri-app/src-tauri/src/clipboard.rs b/packages/kbot/gui/tauri-app/src-tauri/src/clipboard.rs
index b07849bc..70717313 100644
--- a/packages/kbot/gui/tauri-app/src-tauri/src/clipboard.rs
+++ b/packages/kbot/gui/tauri-app/src-tauri/src/clipboard.rs
@@ -57,31 +57,42 @@ async fn parse_clipboard_images(
     let candidate_format = candidate_format.unwrap_or_else(|| "png".to_string());
     let temp_dir = temp_dir.unwrap_or_else(|| std::env::temp_dir());
 
-    // Try to get file list first (drag and drop from explorer/finder)
-    if let Ok(file_list) = clipboard.get().file_list() {
-        info!("[parse_clipboard_images] File list: {:?}", file_list);
-        for file in file_list {
-            let path_str = file.to_string_lossy().to_string();
-            // Filter for image files only
-            if path_str.to_lowercase().ends_with(".png") 
-                || path_str.to_lowercase().ends_with(".jpg")
-                || path_str.to_lowercase().ends_with(".jpeg")
-                || path_str.to_lowercase().ends_with(".gif")
-                || path_str.to_lowercase().ends_with(".webp") {
-                result.push(path_str);
+    // Try to get image data first (screenshot, copied image)
+    match clipboard.get().image() {
+        Ok(image_data) => {
+            info!(
+                "[parse_clipboard_images] Found image data: {}x{}, {} bytes",
+                image_data.width,
+                image_data.height,
+                image_data.bytes.len()
+            );
+            let temp_path = save_rgba_image_to_temp(&image_data, &candidate_format, &temp_dir)?;
+            result.push(temp_path);
+        }
+        Err(e) => {
+            info!("[parse_clipboard_images] No image data found: {}", e);
+            
+            // Try to get file list (drag and drop from explorer/finder)
+            match clipboard.get().file_list() {
+                Ok(file_list) => {
+                    info!("[parse_clipboard_images] Found file list: {:?}", file_list);
+                    for file in file_list {
+                        let path_str = file.to_string_lossy().to_string();
+                        // Filter for image files only
+                        if path_str.to_lowercase().ends_with(".png") 
+                            || path_str.to_lowercase().ends_with(".jpg")
+                            || path_str.to_lowercase().ends_with(".jpeg")
+                            || path_str.to_lowercase().ends_with(".gif")
+                            || path_str.to_lowercase().ends_with(".webp") {
+                            result.push(path_str);
+                        }
+                    }
+                }
+                Err(e2) => {
+                    info!("[parse_clipboard_images] No file list found: {}", e2);
+                }
             }
         }
-    } 
-    // If no files, try to get image data (screenshot, copied image)
-    else if let Ok(image_data) = clipboard.get().image() {
-        info!(
-            "[parse_clipboard_images] Image data: {}x{}, {} bytes",
-            image_data.width,
-            image_data.height,
-            image_data.bytes.len()
-        );
-        let temp_path = save_rgba_image_to_temp(&image_data, &candidate_format, &temp_dir)?;
-        result.push(temp_path);
     }
 
     Ok(result)
diff --git a/packages/kbot/gui/tauri-app/src/App.tsx b/packages/kbot/gui/tauri-app/src/App.tsx
index 189addc8..d9825fe3 100644
--- a/packages/kbot/gui/tauri-app/src/App.tsx
+++ b/packages/kbot/gui/tauri-app/src/App.tsx
@@ -361,10 +361,27 @@ function App() {
     
     // Update destination directory
     const firstPath = uniqueNewPaths[0];
-    const lastSeparatorIndex = Math.max(firstPath.lastIndexOf('/'), firstPath.lastIndexOf('\\'));
-    const newDir = firstPath.substring(0, lastSeparatorIndex);
+    
+    // Check if this is a clipboard image (from temp directory)
+    const isClipboardImage = firstPath.includes('kbot_clipboard_') || 
+                            firstPath.includes(process.platform === 'win32' ? '\\Temp\\' : '/tmp/') ||
+                            firstPath.includes('AppData\\Local\\Temp') ||
+                            firstPath.includes('/var/folders/'); // macOS temp
+    
+    let newDir: string;
+    if (isClipboardImage) {
+      // For clipboard images, use current working directory or user's Documents folder
+      newDir = './'; // Use current working directory
+      log.info('📋 Clipboard image detected, using current working directory for output');
+    } else {
+      // For regular files, use the directory of the first file
+      const lastSeparatorIndex = Math.max(firstPath.lastIndexOf('/'), firstPath.lastIndexOf('\\'));
+      newDir = firstPath.substring(0, lastSeparatorIndex);
+    }
+    
     const currentFilename = dst.split(/[/\\]/).pop() || generateDefaultDst(1, firstPath);
-    const newDst = `${newDir}${firstPath.includes('\\') ? '\\' : '/'}${currentFilename}`;
+    const separator = firstPath.includes('\\') ? '\\' : '/';
+    const newDst = newDir === './' ? currentFilename : `${newDir}${separator}${currentFilename}`;
     setDst(newDst);
 
     // Read files
diff --git a/packages/kbot/gui/tauri-app/src/components/PromptForm.tsx b/packages/kbot/gui/tauri-app/src/components/PromptForm.tsx
index bc9c4196..fe954ecd 100644
--- a/packages/kbot/gui/tauri-app/src/components/PromptForm.tsx
+++ b/packages/kbot/gui/tauri-app/src/components/PromptForm.tsx
@@ -126,7 +126,7 @@ const PromptForm: React.FC<PromptFormProps> = ({
       log.info('📋 Paste event detected, checking for images...');
       
       // Try to get images from clipboard using our Tauri command
-      const result = await tauriApi.parseClipboardImages('png');
+      const result = await tauriApi.parseClipboardImages('png', '');
       
       if (result?.success && result.paths && result.paths.length > 0) {
         log.info(`📋 Found ${result.paths.length} image(s) in clipboard`, {
diff --git a/packages/kbot/gui/tauri-app/src/lib/tauriApi.ts b/packages/kbot/gui/tauri-app/src/lib/tauriApi.ts
index 288ea229..aed1b2f4 100644
--- a/packages/kbot/gui/tauri-app/src/lib/tauriApi.ts
+++ b/packages/kbot/gui/tauri-app/src/lib/tauriApi.ts
@@ -239,7 +239,7 @@ export const tauriApi = {
 
     parseClipboardImages: (candidateFormat: string = 'png', tempDir?: string) =>
         safeInvoke<{ success: boolean; paths?: string[]; error?: string }>('ipc_parse_clipboard_images', { 
-            candidate_format: candidateFormat, 
-            temp_dir: tempDir || '' 
+            candidateFormat: candidateFormat, 
+            tempDir: tempDir || '' 
         }),
 };