A method and system are provided for creation, implementation, and use of computer-generated "smart" documents to which functionality is attached for providing contextually sensitive tools, controls and help content to users of those documents. Portions of documents are annotated with Extensible Markup Language (XML) tags and structure so that when a user enters those portions, such as by placing a computer cursor in those portions, the user is provided contextually sensitive tools, controls and/or help content. A document tools pane may open on the user's computer screen adjacent to the document being edited for providing the document tools, controls or help content related to the context of the text or data in which the cursor is located. If the user moves the cursor to another portion of the document, the user may obtain information associated with the context of the new portion of the document in which the cursor is located.