diff --git a/web/apps/console/src/workspace/authoring/AuthoringPathPicker.tsx b/web/apps/console/src/workspace/authoring/AuthoringPathPicker.tsx
index 14232964..47c35fbe 100644
--- a/web/apps/console/src/workspace/authoring/AuthoringPathPicker.tsx
+++ b/web/apps/console/src/workspace/authoring/AuthoringPathPicker.tsx
@@ -16,6 +16,7 @@ export type AuthoringPathPickerProps = {
   readonly allowCustom?: boolean;
   readonly describedBy?: string | undefined;
   readonly invalid?: boolean;
+  readonly selection?: AuthoringPathSelection;
 };
 
 type OptionGroup = {
@@ -50,6 +51,7 @@ export const AuthoringPathPicker = ({
   allowCustom = false,
   describedBy,
   invalid = false,
+  selection = "catalog",
 }: AuthoringPathPickerProps) => {
   const id = safeId(useId());
   const searchId = `${id}-search`;
@@ -57,7 +59,9 @@ export const AuthoringPathPicker = ({
   const [search, setSearch] = useState("");
   const [customValue, setCustomValue] = useState(value);
   const [advancedOpen, setAdvancedOpen] = useState(
-    () => allowCustom && value.trim() !== "" && !options.some((option) => option.path === value),
+    () => allowCustom && value.trim() !== "" && (
+      selection === "custom" || !options.some((option) => option.path === value)
+    ),
   );
   const requestedUses = normalizedUses(uses);
   const normalizedSearch = search.trim().toLocaleLowerCase();
@@ -102,11 +106,12 @@ export const AuthoringPathPicker = ({
                   return (
                     <button
                       aria-describedby={description === "" ? undefined : reasonId}
-                      aria-pressed={option.path === value}
+                      aria-pressed={selection === "catalog" && option.path === value}
                       className="authoring-path-picker__option"
                       disabled={!compatible}
                       key={option.path}
                       onClick={() => {
+                        if (option.path !== value) setAdvancedOpen(false);
                         setCustomValue(option.path);
                         onChange(option.path, "catalog");
                       }}
diff --git a/web/apps/console/src/workspace/authoring/StepInputBindingsForm.test.tsx b/web/apps/console/src/workspace/authoring/StepInputBindingsForm.test.tsx
index d589bc07..53484d67 100644
--- a/web/apps/console/src/workspace/authoring/StepInputBindingsForm.test.tsx
+++ b/web/apps/console/src/workspace/authoring/StepInputBindingsForm.test.tsx
@@ -106,6 +106,27 @@ describe("StepInputBindingsForm", () => {
     expect(submissions).toEqual([[{ path: "input.title", target: "step_input.text" }]]);
   });
 
+  it("preserves a colliding local target when its matching catalog option is clicked", async () => {
+    const user = userEvent.setup();
+    const submissions: ReadonlyArray<StepInputBinding>[] = [];
+    render(
+      <StepInputBindingsForm
+        inputSchema={schema}
+        sourceOptions={[authoringOption("input.title", "Title", "workflow_input", ["step_input"])]}
+        targetOptions={[authoringOption("step_input.text", "Text target", "step_input", ["step_input"])]}
+        initialBindings={[{ path: "input.title", target: "step_input.text" }]}
+        onSubmit={(value) => { submissions.push(value); }}
+      />,
+    );
+
+    const matchingOption = screen.getByRole("button", { name: /Text target/ });
+    expect(matchingOption).toHaveAttribute("aria-pressed", "false");
+    await user.click(matchingOption);
+    await user.click(screen.getByRole("button", { name: "Save inputs" }));
+
+    expect(submissions).toEqual([[{ path: "input.title", target: "step_input.text" }]]);
+  });
+
   it("formats local and graph path objects at whole and nested paths", () => {
     expect(displayLocalInputPath({ root: "local", parts: [] })).toBe(".");
     expect(displayLocalInputPath({ root: "local", parts: ["payload", "item"] })).toBe("payload.item");
diff --git a/web/apps/console/src/workspace/authoring/StepInputBindingsForm.tsx b/web/apps/console/src/workspace/authoring/StepInputBindingsForm.tsx
index 34a61f3a..9a8ecc96 100644
--- a/web/apps/console/src/workspace/authoring/StepInputBindingsForm.tsx
+++ b/web/apps/console/src/workspace/authoring/StepInputBindingsForm.tsx
@@ -470,6 +470,7 @@ const StepInputBindingsFormContent = ({
           const expressionModeId = `${row.id}-expression-mode`;
           const canConstruct = field?.kind === "array" || field?.kind === "object";
           const hasIssues = issues.length > 0;
+          const targetPickerValue = pickerValueForLocalPath(row.target, targetOptions, "step_input");
           const literalSources: FieldSources = field === null
             ? {}
             : { [formatTOMLPath(field.path)]: { mode: "literal", value: row.value } };
@@ -481,15 +482,24 @@ const StepInputBindingsFormContent = ({
                 describedBy={hasIssues ? errorId : undefined}
                 invalid={hasIssues}
                 label={`Target for row ${rowNumber}`}
-                onChange={(target, selection) => editRow(row.id, (current) => ({
-                  ...current,
-                  target: selection === "catalog"
-                    ? localPathFromPickerValue(target, targetOptions, "step_input")
-                    : target,
-                }))}
+                onChange={(target, selection) => editRow(row.id, (current) => {
+                  const currentPickerValue = pickerValueForLocalPath(current.target, targetOptions, "step_input");
+                  const preserveCustom = selection === "catalog" &&
+                    currentPickerValue.provenance === "custom" &&
+                    currentPickerValue.value === target;
+                  return {
+                    ...current,
+                    target: preserveCustom
+                      ? current.target
+                      : selection === "catalog"
+                        ? localPathFromPickerValue(target, targetOptions, "step_input")
+                        : target,
+                  };
+                })}
                 options={targetOptions}
+                selection={targetPickerValue.provenance}
                 uses="step_input"
-                value={pickerValueForLocalPath(row.target, targetOptions, "step_input")}
+                value={targetPickerValue.value}
               />
               <fieldset aria-label={`Source mode for input row ${rowNumber}`} className="schema-form__source">
                 <legend>Value source</legend>
diff --git a/web/apps/console/src/workspace/authoring/StepOutputBindingsForm.test.tsx b/web/apps/console/src/workspace/authoring/StepOutputBindingsForm.test.tsx
index 6adbe9a1..27c6946a 100644
--- a/web/apps/console/src/workspace/authoring/StepOutputBindingsForm.test.tsx
+++ b/web/apps/console/src/workspace/authoring/StepOutputBindingsForm.test.tsx
@@ -145,6 +145,28 @@ describe("StepOutputBindingsForm", () => {
     expect(submissions).toEqual([[{ source: "step_output.text", target: "state.existing" }]]);
   });
 
+  it("preserves a colliding local source when its matching catalog option is clicked", async () => {
+    const user = userEvent.setup();
+    const submissions: ReadonlyArray<OutputBinding>[] = [];
+    render(
+      <StepOutputBindingsForm
+        outputSchema={outputSchema}
+        stateSchema={stateSchema}
+        sourceOptions={[authoringOption("step_output.text", "Text output", "step_output", ["step_output_source"])]}
+        targetOptions={[authoringOption("state.existing", "Existing state", "workflow_state", ["state_target"])]}
+        initialBindings={[{ source: "step_output.text", target: "state.existing" }]}
+        onSubmit={(value) => { submissions.push(value); }}
+      />,
+    );
+
+    const matchingOption = screen.getByRole("button", { name: /Text output/ });
+    expect(matchingOption).toHaveAttribute("aria-pressed", "false");
+    await user.click(matchingOption);
+    await user.click(screen.getByRole("button", { name: "Save outputs" }));
+
+    expect(submissions).toEqual([[{ source: "step_output.text", target: "state.existing" }]]);
+  });
+
   it("offers capability output sources and existing state targets", () => {
     render(
       <StepOutputBindingsForm
diff --git a/web/apps/console/src/workspace/authoring/StepOutputBindingsForm.tsx b/web/apps/console/src/workspace/authoring/StepOutputBindingsForm.tsx
index 4957671b..0e212d7f 100644
--- a/web/apps/console/src/workspace/authoring/StepOutputBindingsForm.tsx
+++ b/web/apps/console/src/workspace/authoring/StepOutputBindingsForm.tsx
@@ -191,6 +191,7 @@ const OutputRowEditor = ({
   const issues = rowIssueMessages(row, rowDiagnostics, localIssues);
   const errorId = `${row.id}-errors`;
   const preview = inferredStateSchemaPreview(outputSchema, row.sourcePath, row.target);
+  const sourcePickerValue = pickerValueForLocalPath(row.sourcePath, sourceOptions, "step_output");
   const hasIssues = issues.length > 0;
   return (
     <fieldset aria-label={`Output row ${rowNumber}`} className="schema-form__group">
@@ -201,15 +202,24 @@ const OutputRowEditor = ({
           describedBy={hasIssues ? errorId : undefined}
           invalid={hasIssues}
           label={`Source path for output row ${rowNumber}`}
-          onChange={(source, selection) => onEdit(row.id, (current) => ({
-            ...current,
-            sourcePath: selection === "catalog"
-              ? localPathFromPickerValue(source, sourceOptions, "step_output")
-              : source,
-          }))}
+          onChange={(source, selection) => onEdit(row.id, (current) => {
+            const currentPickerValue = pickerValueForLocalPath(current.sourcePath, sourceOptions, "step_output");
+            const preserveCustom = selection === "catalog" &&
+              currentPickerValue.provenance === "custom" &&
+              currentPickerValue.value === source;
+            return {
+              ...current,
+              sourcePath: preserveCustom
+                ? current.sourcePath
+                : selection === "catalog"
+                  ? localPathFromPickerValue(source, sourceOptions, "step_output")
+                  : source,
+            };
+          })}
           options={sourceOptions}
+          selection={sourcePickerValue.provenance}
           uses="step_output_source"
-          value={pickerValueForLocalPath(row.sourcePath, sourceOptions, "step_output")}
+          value={sourcePickerValue.value}
         />
         <AuthoringPathPicker
           allowCustom
diff --git a/web/apps/console/src/workspace/authoring/selected-step-dataflow.test.ts b/web/apps/console/src/workspace/authoring/selected-step-dataflow.test.ts
index 593c3f67..830e5f19 100644
--- a/web/apps/console/src/workspace/authoring/selected-step-dataflow.test.ts
+++ b/web/apps/console/src/workspace/authoring/selected-step-dataflow.test.ts
@@ -366,9 +366,19 @@ describe("selected-step schema helpers", () => {
     expect(authoringOptionsForUse(inventoryOptions, "step_output_source")).toEqual([
       inventoryOptions[1],
     ]);
-    expect(pickerValueForLocalPath("text", inventoryOptions, "step_output")).toBe("step_output.text");
+    expect(pickerValueForLocalPath("text", inventoryOptions, "step_output")).toEqual({
+      provenance: "catalog",
+      value: "step_output.text",
+    });
+    expect(pickerValueForLocalPath("step_output.text", inventoryOptions, "step_output")).toEqual({
+      provenance: "custom",
+      value: "step_output.text",
+    });
     expect(localPathFromPickerValue("step_output.text", inventoryOptions, "step_output")).toBe("text");
-    expect(localPathFromPickerValue("custom.value", inventoryOptions, "step_output")).toBe("custom.value");
+    expect(pickerValueForLocalPath("custom.value", inventoryOptions, "step_output")).toEqual({
+      provenance: "custom",
+      value: "custom.value",
+    });
 
     const wholeOutput: AuthoringPathOption = {
       availability: "available",
@@ -379,7 +389,10 @@ describe("selected-step schema helpers", () => {
       schema: { type: "object" },
       uses: ["step_output_source"],
     };
-    expect(pickerValueForLocalPath(".", [wholeOutput], "step_output")).toBe("step_output");
+    expect(pickerValueForLocalPath(".", [wholeOutput], "step_output")).toEqual({
+      provenance: "catalog",
+      value: "step_output",
+    });
     expect(localPathFromPickerValue("step_output", [wholeOutput], "step_output")).toBe(".");
   });
 
diff --git a/web/apps/console/src/workspace/authoring/selected-step-dataflow.ts b/web/apps/console/src/workspace/authoring/selected-step-dataflow.ts
index 2314f265..555c331e 100644
--- a/web/apps/console/src/workspace/authoring/selected-step-dataflow.ts
+++ b/web/apps/console/src/workspace/authoring/selected-step-dataflow.ts
@@ -411,6 +411,11 @@ export const authoringOptionsForUse = (
   use: AuthoringPathUse,
 ): ReadonlyArray<AuthoringPathOption> => options.filter((option) => option.uses.includes(use));
 
+export type PickerPathValue = {
+  readonly provenance: "catalog" | "custom";
+  readonly value: string;
+};
+
 /**
  * Keeps picker values canonical while binding editors continue submitting
  * local paths for step inputs and step outputs.
@@ -419,11 +424,15 @@ export const pickerValueForLocalPath = (
   localPath: string,
   options: ReadonlyArray<AuthoringPathOption>,
   root: "step_input" | "step_output",
-): string => {
+): PickerPathValue => {
+  if (options.some((option) => option.path === localPath)) {
+    return { provenance: "custom", value: localPath };
+  }
   const canonicalPath = localPath === "." ? root : `${root}.${localPath}`;
-  return options.find((option) => option.path === localPath)?.path ??
-    options.find((option) => option.path === canonicalPath)?.path ??
-    localPath;
+  const canonicalOption = options.find((option) => option.path === canonicalPath);
+  return canonicalOption === undefined
+    ? { provenance: "custom", value: localPath }
+    : { provenance: "catalog", value: canonicalOption.path };
 };
 
 export const localPathFromPickerValue = (