diff --git a/packages/tui/src/routes/session/index.tsx b/packages/tui/src/routes/session/index.tsx
index 63204d62b6f..7f7caf551f6 100644
--- a/packages/tui/src/routes/session/index.tsx
+++ b/packages/tui/src/routes/session/index.tsx
@@ -77,7 +77,7 @@ import { useConfig } from "../../config"
 import { useClipboard } from "../../context/clipboard"
 import { nextThinkingMode, reasoningSummary, type ThinkingMode } from "../../context/thinking"
 import { getScrollAcceleration } from "../../util/scroll"
-import { collapseToolOutput } from "../../util/collapse-tool-output"
+import { collapseShellOutput, collapseToolOutput } from "../../util/collapse-tool-output"
 import { Keymap, type KeymapCommand } from "../../context/keymap"
 import { usePathFormatter } from "../../context/path-format"
 import { useLocation } from "../../context/location"
@@ -2968,14 +2968,9 @@ function ShellDisplay(props: {
   const maxChars = createMemo(() => maxLines * Math.max(20, ctx.width - 6))
   const prefix = createMemo(() => (workdir() && workdir() !== "." ? `cd ${workdir()} && ` : ""))
   const input = createMemo(() => (props.command ? `${isRunning() ? "" : "$ "}${prefix()}${props.command}` : ""))
-  const content = createMemo(() => [input(), output()].filter(Boolean).join("\n\n"))
-  const collapsed = createMemo(() => collapseToolOutput(content(), maxLines, maxChars()))
-  const limited = createMemo(() => {
-    if (expanded() || !collapsed().overflow) return content()
-    return collapsed().output
-  })
-  const limitedInput = createMemo(() => limited().slice(0, input().length))
-  const limitedOutput = createMemo(() => limited().slice(Math.min(limited().length, input().length + 2)))
+  const collapsed = createMemo(() => collapseShellOutput(input(), output(), maxLines, maxChars()))
+  const limitedInput = createMemo(() => (expanded() ? input() : collapsed().input))
+  const limitedOutput = createMemo(() => (expanded() ? output() : collapsed().output))
   const expandable = createMemo(() => Boolean(props.shellID) || collapsed().overflow)
   const toggle = () => {
     const next = !expanded()
diff --git a/packages/tui/src/util/collapse-tool-output.ts b/packages/tui/src/util/collapse-tool-output.ts
index 7e2a534cd50..759be3f1862 100644
--- a/packages/tui/src/util/collapse-tool-output.ts
+++ b/packages/tui/src/util/collapse-tool-output.ts
@@ -19,3 +19,31 @@ export function collapseToolOutput(output: string, maxLines: number, maxChars: n
 
   return { output: preview, overflow: true }
 }
+
+export function collapseShellOutput(input: string, output: string, maxLines: number, maxChars: number) {
+  const content = [input, output].filter(Boolean).join("\n\n")
+  const collapsed = collapseToolOutput(content, maxLines, maxChars)
+  if (!collapsed.overflow) return { input, output, overflow: false }
+  if (!input) return { input, output: collapseTail(output, maxLines, maxChars), overflow: true }
+  if (!output) return { input: collapsed.output, output, overflow: true }
+
+  const reserved = Math.max(1, Math.floor(maxChars / maxLines))
+  const command = collapseToolOutput(
+    input,
+    Math.max(1, maxLines - 2),
+    Math.max(1, maxChars - reserved - 2),
+  ).output
+  const lines = Math.max(1, maxLines - command.split("\n").length - 1)
+  const chars = Math.max(1, maxChars - Array.from(command).length - 2)
+  return { input: command, output: collapseTail(output, lines, chars), overflow: true }
+}
+
+function collapseTail(output: string, maxLines: number, maxChars: number) {
+  const lines = output.split("\n")
+  if (lines.length <= maxLines && Array.from(output).length <= maxChars) return output
+
+  const preview = lines.slice(-maxLines).join("\n")
+  const visible = Array.from(preview)
+  if (visible.length < maxChars) return `…${preview}`
+  return `…${visible.slice(-Math.max(0, maxChars - 1)).join("")}`
+}