Zed persists threads. It doesn't extract memory.
Zed (Zed Industries) persists full threads — conversation + tool-call history — in a local SQLite ThreadsDatabase (parent_id, summary, zstd-compressed JSON data).
There is no automatic retrieval or fact extraction. Users bring context back manually via @-mentions (files, directories, symbols, past threads, rules, diagnostics), the "New from Summary" feature, or MCP servers.
Sources: Zed agent panel docs
@-mention.