diff --git a/packages/cli/src/nonInteractiveCli.test.ts b/packages/cli/src/nonInteractiveCli.test.ts
index 15b51d188c..ade6275b2a 100644
--- a/packages/cli/src/nonInteractiveCli.test.ts
+++ b/packages/cli/src/nonInteractiveCli.test.ts
@@ -2388,7 +2388,7 @@ describe('runNonInteractive', () => {
       );
     });
 
-    it('should emit warning event for loop_detected custom event in streaming JSON mode', async () => {
+    it('should emit warning event for loop_detected in streaming JSON mode', async () => {
       vi.mocked(mockConfig.getOutputFormat).mockReturnValue(
         OutputFormat.STREAM_JSON,
       );
diff --git a/packages/cli/src/nonInteractiveCli.ts b/packages/cli/src/nonInteractiveCli.ts
index 557ce3577c..3eb17d507f 100644
--- a/packages/cli/src/nonInteractiveCli.ts
+++ b/packages/cli/src/nonInteractiveCli.ts
@@ -538,19 +538,6 @@ export async function runNonInteractive({
             streamEnded = true;
             break;
           }
-          case 'custom': {
-            if (event.kind === 'loop_detected') {
-              if (streamFormatter) {
-                streamFormatter.emitEvent({
-                  type: JsonStreamEventType.ERROR,
-                  timestamp: new Date().toISOString(),
-                  severity: 'warning',
-                  message: 'Loop detected, stopping execution',
-                });
-              }
-            }
-            break;
-          }
           default:
             break;
         }