PowerToys Next Update: Niels Laute Shares His Top Exciting Features

PowerToys remains a staple for Windows power users, and the next release is shaping up to be one of the most polished yet. Niels Laute, the project manager behind PowerToys and WinUI, took to X to share the improvements he’s personally most looking forward to in the PowerToys upcoming update rolling out next week.

With over 300 pull requests merged into the build, the team has packed the release with quality-of-life tweaks, stability fixes, and performance gains. While some of these changes have been visible in the preview channel, they are now ready for the broader PowerToys audience. Laute also thanked the community and contributors for their ongoing efforts in refining the suite.

#1 Compact Command Palette Mode

Command Palette has long been praised as the search utility Windows should have had all along. Functioning similarly to macOS Spotlight, it lets you launch apps, open settings, and trigger actions with minimal friction. However, one common complaint has been its footprint on the screen, especially for users with smaller displays or those who prefer a less intrusive overlay.

In the upcoming update, Command Palette gains a new compact mode. This option reduces the window’s size, making it easier to keep your workspace visible while still having quick access to your tools. It’s a subtle but welcome refinement that addresses years of user feedback regarding the default window dimensions.

#2 Ripple Effects for Mouse Highlighter

Mouse Highlighter is a go-to tool for anyone using multiple monitors or an ultrawide display, helping you locate the cursor when it disappears. Previously, the tool worked by graying out the screen, which could feel heavy-handed and disruptive to your workflow, particularly if you were in the middle of a detailed task.

A close-up view of a computer screen showing the Command Palette in compact mode, with a smaller window size and a list — The new compact mode makes Command Palette less intrusive on your screen.

The new update introduces a ripple effect as a more subtle alternative. Instead of dimming the entire display, the cursor is highlighted with a dynamic ripple animation. This makes it easier to spot your pointer without losing context of what you were working on, offering a better balance between functionality and visual comfort.

#3 Phi Silica Support in Advanced Paste

For users with Copilot+ PCs, the Advanced Paste feature is getting a significant boost. The update adds support for Phi Silica, Microsoft’s small language model (SLM) that powers on-device AI capabilities like Click to Do and document rewriting.

A visual representation of a mouse cursor on a dark background with a glowing ripple effect expanding outward, symbolizi — The ripple effect offers a subtle way to find your mouse cursor.

By leveraging the Neural Processing Unit (NPU) on compatible hardware, Advanced Paste can now perform smarter text transformations and formatting adjustments entirely locally. This means faster processing and better privacy, as your data doesn’t leave your device. It also aligns with Microsoft’s broader strategy to integrate AI deeply into everyday utilities, making powerful features accessible without requiring cloud connectivity.

#4 New Update UX and Preview Channel

PowerToys has historically made it somewhat cumbersome to switch between stable and preview releases. The next update addresses this with a refreshed update experience. Users will now have a clearer, more direct option to opt into the preview channel from within the app settings.

This change lowers the barrier for enthusiasts who want to test new features early and provide feedback to the development team. It also streamlines the process for those who prefer to stick with the stable build, ensuring a smoother transition between versions.

#5 Shortcut Guide and General Improvements

The Shortcut Guide, which displays keyboard shortcuts when you press the Windows key, is also getting attention. The update brings smoother animations and integrates built-in search functionality, allowing you to find specific shortcuts without leaving the overlay. This is particularly helpful for users who are still learning the keyboard layout or those who want to discover hidden commands.

Additionally, the changelog is expected to include a long list of bug fixes for Command Palette, along with various performance and stability improvements across the suite. These behind-the-scenes refinements ensure that PowerToys continues to run reliably on modern Windows 11 systems.

The full update is expected to roll out next week. Users can check for updates manually or wait for the automatic notification via the PowerToys settings. As always, the latest version will be available via GitHub and the Microsoft Store.

Source: Latest from Windows Central

Over to you: Which of these PowerToys updates are you most looking forward to trying out?