diff --git a/packages/cli/src/ui/AppContainer.tsx b/packages/cli/src/ui/AppContainer.tsx
index 31e90f824e..5b33013846 100644
--- a/packages/cli/src/ui/AppContainer.tsx
+++ b/packages/cli/src/ui/AppContainer.tsx
@@ -612,11 +612,10 @@ export const AppContainer = (props: AppContainerProps) => {
     setThemeError,
     historyManager.addItem,
     initializationResult.themeError,
+    refreshStatic,
   );
-
   // Poll for terminal background color changes to auto-switch theme
   useTerminalTheme(handleThemeSelect, config, refreshStatic);
-
   const {
     authState,
     setAuthState,
diff --git a/packages/cli/src/ui/components/ThemeDialog.test.tsx b/packages/cli/src/ui/components/ThemeDialog.test.tsx
index 165d4a52a2..21ceb8dacc 100644
--- a/packages/cli/src/ui/components/ThemeDialog.test.tsx
+++ b/packages/cli/src/ui/components/ThemeDialog.test.tsx
@@ -79,14 +79,12 @@ describe('ThemeDialog Snapshots', () => {
     });
   });
 
-  it('should call refreshStatic when a theme is selected', async () => {
-    const mockRefreshStatic = vi.fn();
+  it('should call onSelect when a theme is selected', async () => {
     const settings = createMockSettings();
     const { stdin } = renderWithProviders(
       <ThemeDialog {...baseProps} settings={settings} />,
       {
         settings,
-        uiActions: { refreshStatic: mockRefreshStatic },
       },
     );
 
@@ -96,7 +94,6 @@ describe('ThemeDialog Snapshots', () => {
     });
 
     await waitFor(() => {
-      expect(mockRefreshStatic).toHaveBeenCalled();
       expect(baseProps.onSelect).toHaveBeenCalled();
     });
   });
diff --git a/packages/cli/src/ui/components/ThemeDialog.tsx b/packages/cli/src/ui/components/ThemeDialog.tsx
index 65e26aae49..9356b81e3b 100644
--- a/packages/cli/src/ui/components/ThemeDialog.tsx
+++ b/packages/cli/src/ui/components/ThemeDialog.tsx
@@ -22,7 +22,6 @@ import { getScopeMessageForSetting } from '../../utils/dialogScopeUtils.js';
 import { useKeypress } from '../hooks/useKeypress.js';
 import { useAlternateBuffer } from '../hooks/useAlternateBuffer.js';
 import { ScopeSelector } from './shared/ScopeSelector.js';
-import { useUIActions } from '../contexts/UIActionsContext.js';
 import { useUIState } from '../contexts/UIStateContext.js';
 
 interface ThemeDialogProps {
@@ -85,7 +84,6 @@ export function ThemeDialog({
   terminalWidth,
 }: ThemeDialogProps): React.JSX.Element {
   const isAlternateBuffer = useAlternateBuffer();
-  const { refreshStatic } = useUIActions();
   const { terminalBackgroundColor } = useUIState();
   const [selectedScope, setSelectedScope] = useState<LoadableSettingScope>(
     SettingScope.User,
@@ -142,9 +140,8 @@ export function ThemeDialog({
   const handleThemeSelect = useCallback(
     async (themeName: string) => {
       await onSelect(themeName, selectedScope);
-      refreshStatic();
     },
-    [onSelect, selectedScope, refreshStatic],
+    [onSelect, selectedScope],
   );
 
   const handleThemeHighlight = (themeName: string) => {
@@ -159,9 +156,8 @@ export function ThemeDialog({
   const handleScopeSelect = useCallback(
     async (scope: LoadableSettingScope) => {
       await onSelect(highlightedThemeName, scope);
-      refreshStatic();
     },
-    [onSelect, highlightedThemeName, refreshStatic],
+    [onSelect, highlightedThemeName],
   );
 
   const [mode, setMode] = useState<'theme' | 'scope'>('theme');
diff --git a/packages/cli/src/ui/hooks/useTerminalTheme.test.tsx b/packages/cli/src/ui/hooks/useTerminalTheme.test.tsx
index 21eabba6cc..654102a740 100644
--- a/packages/cli/src/ui/hooks/useTerminalTheme.test.tsx
+++ b/packages/cli/src/ui/hooks/useTerminalTheme.test.tsx
@@ -9,8 +9,8 @@ import { useTerminalTheme } from './useTerminalTheme.js';
 import { vi, describe, it, expect, beforeEach, afterEach } from 'vitest';
 import { makeFakeConfig, type Config } from '@google/gemini-cli-core';
 import os from 'node:os';
+import { themeManager } from '../themes/theme-manager.js';
 
-// Mocks
 const mockWrite = vi.fn();
 const mockSubscribe = vi.fn();
 const mockUnsubscribe = vi.fn();
@@ -72,9 +72,7 @@ describe('useTerminalTheme', () => {
     config = makeFakeConfig({
       targetDir: os.tmpdir(),
     });
-    // Set initial background to ensure the hook passes the startup check.
     config.setTerminalBackground('#000000');
-    // Spy on future updates.
     vi.spyOn(config, 'setTerminalBackground');
 
     mockWrite.mockClear();
@@ -82,7 +80,7 @@ describe('useTerminalTheme', () => {
     mockUnsubscribe.mockClear();
     mockHandleThemeSelect.mockClear();
     mockQueryTerminalBackground.mockClear();
-    // Reset any settings modifications
+    vi.mocked(themeManager.setTerminalBackground).mockClear();
     mockSettings.merged.ui.autoThemeSwitching = true;
     mockSettings.merged.ui.theme = 'default';
   });
@@ -108,7 +106,6 @@ describe('useTerminalTheme', () => {
   it('should poll for terminal background', () => {
     renderHook(() => useTerminalTheme(mockHandleThemeSelect, config, vi.fn()));
 
-    // Fast-forward time (1 minute)
     vi.advanceTimersByTime(60000);
     expect(mockQueryTerminalBackground).toHaveBeenCalled();
   });
@@ -117,20 +114,23 @@ describe('useTerminalTheme', () => {
     config.getTerminalBackground = vi.fn().mockReturnValue(undefined);
     renderHook(() => useTerminalTheme(mockHandleThemeSelect, config, vi.fn()));
 
-    // Poll should not happen
     vi.advanceTimersByTime(60000);
     expect(mockQueryTerminalBackground).not.toHaveBeenCalled();
   });
 
-  it('should switch to light theme when background is light', () => {
-    renderHook(() => useTerminalTheme(mockHandleThemeSelect, config, vi.fn()));
+  it('should switch to light theme when background is light and not call refreshStatic directly', () => {
+    const refreshStatic = vi.fn();
+    renderHook(() =>
+      useTerminalTheme(mockHandleThemeSelect, config, refreshStatic),
+    );
 
     const handler = mockSubscribe.mock.calls[0][0];
 
-    // Simulate light background response (white)
     handler('rgb:ffff/ffff/ffff');
 
     expect(config.setTerminalBackground).toHaveBeenCalledWith('#ffffff');
+    expect(themeManager.setTerminalBackground).toHaveBeenCalledWith('#ffffff');
+    expect(refreshStatic).not.toHaveBeenCalled();
     expect(mockHandleThemeSelect).toHaveBeenCalledWith(
       'default-light',
       expect.anything(),
@@ -138,31 +138,51 @@ describe('useTerminalTheme', () => {
   });
 
   it('should switch to dark theme when background is dark', () => {
-    // Start with light theme
     mockSettings.merged.ui.theme = 'default-light';
 
-    renderHook(() => useTerminalTheme(mockHandleThemeSelect, config, vi.fn()));
+    config.setTerminalBackground('#ffffff');
+
+    const refreshStatic = vi.fn();
+    renderHook(() =>
+      useTerminalTheme(mockHandleThemeSelect, config, refreshStatic),
+    );
 
     const handler = mockSubscribe.mock.calls[0][0];
 
-    // Simulate dark background response (black)
     handler('rgb:0000/0000/0000');
 
     expect(config.setTerminalBackground).toHaveBeenCalledWith('#000000');
+    expect(themeManager.setTerminalBackground).toHaveBeenCalledWith('#000000');
+    expect(refreshStatic).not.toHaveBeenCalled();
     expect(mockHandleThemeSelect).toHaveBeenCalledWith(
       'default',
       expect.anything(),
     );
 
-    // Reset theme
     mockSettings.merged.ui.theme = 'default';
   });
 
+  it('should not update config or call refreshStatic on repeated identical background reports', () => {
+    const refreshStatic = vi.fn();
+    renderHook(() =>
+      useTerminalTheme(mockHandleThemeSelect, config, refreshStatic),
+    );
+
+    const handler = mockSubscribe.mock.calls[0][0];
+
+    handler('rgb:0000/0000/0000');
+
+    expect(config.setTerminalBackground).not.toHaveBeenCalled();
+    expect(themeManager.setTerminalBackground).not.toHaveBeenCalled();
+    expect(refreshStatic).not.toHaveBeenCalled();
+
+    expect(mockHandleThemeSelect).not.toHaveBeenCalled();
+  });
+
   it('should not switch theme if autoThemeSwitching is disabled', () => {
     mockSettings.merged.ui.autoThemeSwitching = false;
     renderHook(() => useTerminalTheme(mockHandleThemeSelect, config, vi.fn()));
 
-    // Poll should not happen
     vi.advanceTimersByTime(60000);
     expect(mockQueryTerminalBackground).not.toHaveBeenCalled();
 
diff --git a/packages/cli/src/ui/hooks/useTerminalTheme.ts b/packages/cli/src/ui/hooks/useTerminalTheme.ts
index b3ac7522bc..9927847758 100644
--- a/packages/cli/src/ui/hooks/useTerminalTheme.ts
+++ b/packages/cli/src/ui/hooks/useTerminalTheme.ts
@@ -56,11 +56,18 @@ export function useTerminalTheme(
       if (!match) return;
 
       const hexColor = parseColor(match[1], match[2], match[3]);
-      const luminance = getLuminance(hexColor);
+      if (!hexColor) return;
+
+      const previousColor = config.getTerminalBackground();
+
+      if (previousColor === hexColor) {
+        return;
+      }
+
       config.setTerminalBackground(hexColor);
       themeManager.setTerminalBackground(hexColor);
-      refreshStatic();
 
+      const luminance = getLuminance(hexColor);
       const currentThemeName = settings.merged.ui.theme;
 
       const newTheme = shouldSwitchTheme(
@@ -72,6 +79,11 @@ export function useTerminalTheme(
 
       if (newTheme) {
         void handleThemeSelect(newTheme, SettingScope.User);
+      } else {
+        // The existing theme had its background changed so refresh because
+        // there may be existing static UI rendered that relies on the old
+        // background color.
+        refreshStatic();
       }
     };
 
diff --git a/packages/cli/src/ui/hooks/useThemeCommand.ts b/packages/cli/src/ui/hooks/useThemeCommand.ts
index d1d17da428..15eaa875a2 100644
--- a/packages/cli/src/ui/hooks/useThemeCommand.ts
+++ b/packages/cli/src/ui/hooks/useThemeCommand.ts
@@ -31,6 +31,7 @@ export const useThemeCommand = (
   setThemeError: (error: string | null) => void,
   addItem: UseHistoryManagerReturn['addItem'],
   initialThemeError: string | null,
+  refreshStatic: () => void,
 ): UseThemeCommandReturn => {
   const [isThemeDialogOpen, setIsThemeDialogOpen] =
     useState(!!initialThemeError);
@@ -102,12 +103,13 @@ export const useThemeCommand = (
           themeManager.loadCustomThemes(loadedSettings.merged.ui.customThemes);
         }
         applyTheme(loadedSettings.merged.ui.theme); // Apply the current theme
+        refreshStatic();
         setThemeError(null);
       } finally {
         setIsThemeDialogOpen(false); // Close the dialog
       }
     },
-    [applyTheme, loadedSettings, setThemeError],
+    [applyTheme, loadedSettings, refreshStatic, setThemeError],
   );
 
   return {