diff --git a/packages/cli/src/ui/components/__snapshots__/AlternateBufferQuittingDisplay.test.tsx.snap b/packages/cli/src/ui/components/__snapshots__/AlternateBufferQuittingDisplay.test.tsx.snap
index b4f2bc919c..813a6ae36f 100644
--- a/packages/cli/src/ui/components/__snapshots__/AlternateBufferQuittingDisplay.test.tsx.snap
+++ b/packages/cli/src/ui/components/__snapshots__/AlternateBufferQuittingDisplay.test.tsx.snap
@@ -37,10 +37,13 @@ Tips for getting started:
 2. /help for more information
 3. Ask coding questions, edit code or run commands
 4. Be specific for the best results
+
 ╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  tool1 Description for tool 1                                          │
 │                                                                          │
 ╰──────────────────────────────────────────────────────────────────────────╯
+
+
 ╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  tool2 Description for tool 2                                          │
 │                                                                          │
@@ -81,10 +84,13 @@ Tips for getting started:
 2. /help for more information
 3. Ask coding questions, edit code or run commands
 4. Be specific for the best results
+
 ╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  tool1 Description for tool 1                                          │
 │                                                                          │
 ╰──────────────────────────────────────────────────────────────────────────╯
+
+
 ╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  tool2 Description for tool 2                                          │
 │                                                                          │
diff --git a/packages/cli/src/ui/components/__snapshots__/MainContent.test.tsx.snap b/packages/cli/src/ui/components/__snapshots__/MainContent.test.tsx.snap
index c0043bf6f9..bfadffa240 100644
--- a/packages/cli/src/ui/components/__snapshots__/MainContent.test.tsx.snap
+++ b/packages/cli/src/ui/components/__snapshots__/MainContent.test.tsx.snap
@@ -3,16 +3,15 @@
 exports[`MainContent > MainContent Tool Output Height Logic > 'ASB mode - Focused shell should expand' 1`] = `
 "ScrollableList
 AppHeader(full)
+
 ╭──────────────────────────────────────────────────────────────────────────────────────────────╮
 │ ⊶  Shell Command Running a long command...                                                   │
 │                                                                                              │
-│ Line 10                                                                                      │
-│ Line 11                                                                                      │
 │ Line 12                                                                                      │
 │ Line 13                                                                                      │
 │ Line 14                                                                                      │
-│ Line 15                                                                                    █ │
-│ Line 16                                                                                    █ │
+│ Line 15                                                                                      │
+│ Line 16                                                                                      │
 │ Line 17                                                                                    █ │
 │ Line 18                                                                                    █ │
 │ Line 19                                                                                    █ │
@@ -24,16 +23,15 @@ AppHeader(full)
 exports[`MainContent > MainContent Tool Output Height Logic > 'ASB mode - Unfocused shell' 1`] = `
 "ScrollableList
 AppHeader(full)
+
 ╭──────────────────────────────────────────────────────────────────────────────────────────────╮
 │ ⊶  Shell Command Running a long command...                                                   │
 │                                                                                              │
-│ Line 10                                                                                      │
-│ Line 11                                                                                      │
 │ Line 12                                                                                      │
 │ Line 13                                                                                      │
 │ Line 14                                                                                      │
-│ Line 15                                                                                    █ │
-│ Line 16                                                                                    █ │
+│ Line 15                                                                                      │
+│ Line 16                                                                                      │
 │ Line 17                                                                                    █ │
 │ Line 18                                                                                    █ │
 │ Line 19                                                                                    █ │
@@ -44,12 +42,11 @@ AppHeader(full)
 
 exports[`MainContent > MainContent Tool Output Height Logic > 'Normal mode - Constrained height' 1`] = `
 "AppHeader(full)
+
 ╭──────────────────────────────────────────────────────────────────────────────────────────────╮
 │ ⊶  Shell Command Running a long command...                                                   │
 │                                                                                              │
-│ ... first 11 lines hidden (Ctrl+O to show) ...                                               │
-│ Line 12                                                                                      │
-│ Line 13                                                                                      │
+│ ... first 13 lines hidden (Ctrl+O to show) ...                                               │
 │ Line 14                                                                                      │
 │ Line 15                                                                                      │
 │ Line 16                                                                                      │
@@ -63,6 +60,7 @@ exports[`MainContent > MainContent Tool Output Height Logic > 'Normal mode - Con
 
 exports[`MainContent > MainContent Tool Output Height Logic > 'Normal mode - Unconstrained height' 1`] = `
 "AppHeader(full)
+
 ╭──────────────────────────────────────────────────────────────────────────────────────────────╮
 │ ⊶  Shell Command Running a long command...                                                   │
 │                                                                                              │
@@ -92,6 +90,7 @@ exports[`MainContent > MainContent Tool Output Height Logic > 'Normal mode - Unc
 
 exports[`MainContent > renders a split tool group without a gap between static and pending areas 1`] = `
 "AppHeader(full)
+
 ╭──────────────────────────────────────────────────────────────────────────────────────────────╮
 │ ✓  test-tool A tool for testing                                                              │
 │                                                                                              │
diff --git a/packages/cli/src/ui/components/messages/DenseToolMessage.tsx b/packages/cli/src/ui/components/messages/DenseToolMessage.tsx
index a8f5ee5fb9..2751f4fd2c 100644
--- a/packages/cli/src/ui/components/messages/DenseToolMessage.tsx
+++ b/packages/cli/src/ui/components/messages/DenseToolMessage.tsx
@@ -536,6 +536,7 @@ export const DenseToolMessage: React.FC<DenseToolMessageProps> = (props) => {
         <Box
           marginLeft={6}
           marginTop={1}
+          marginBottom={1}
           paddingX={1}
           flexDirection="column"
           height={
@@ -562,13 +563,13 @@ export const DenseToolMessage: React.FC<DenseToolMessageProps> = (props) => {
       )}
 
       {showPayload && (!isAlternateBuffer || !diff) && viewParts.payload && (
-        <Box marginLeft={6} marginTop={1}>
+        <Box marginLeft={6} marginTop={1} marginBottom={1}>
           {viewParts.payload}
         </Box>
       )}
 
       {showPayload && outputFile && (
-        <Box marginLeft={6} marginTop={1}>
+        <Box marginLeft={6} marginTop={1} marginBottom={1}>
           <Text color={theme.text.secondary}>
             (Output saved to: {outputFile})
           </Text>
diff --git a/packages/cli/src/ui/components/messages/ToolGroupMessage.compact.test.tsx b/packages/cli/src/ui/components/messages/ToolGroupMessage.compact.test.tsx
index 5789a698c7..fcc64a0fe2 100644
--- a/packages/cli/src/ui/components/messages/ToolGroupMessage.compact.test.tsx
+++ b/packages/cli/src/ui/components/messages/ToolGroupMessage.compact.test.tsx
@@ -55,7 +55,7 @@ describe('ToolGroupMessage Compact Rendering', () => {
     expect(output).toMatchSnapshot();
   });
 
-  it('adds an empty line between a compact tool and a standard tool', async () => {
+  it('does not add an extra empty line between a compact tool and a standard tool', async () => {
     const toolCalls = [
       {
         callId: 'call1',
@@ -81,7 +81,7 @@ describe('ToolGroupMessage Compact Rendering', () => {
     expect(output).toMatchSnapshot();
   });
 
-  it('adds an empty line if a compact tool has a dense payload', async () => {
+  it('does not add an extra empty line if a compact tool has a dense payload', async () => {
     const toolCalls = [
       {
         callId: 'call1',
@@ -107,7 +107,7 @@ describe('ToolGroupMessage Compact Rendering', () => {
     expect(output).toMatchSnapshot();
   });
 
-  it('adds an empty line between a standard tool and a compact tool', async () => {
+  it('does not add an extra empty line between a standard tool and a compact tool', async () => {
     const toolCalls = [
       {
         callId: 'call1',
diff --git a/packages/cli/src/ui/components/messages/ToolGroupMessage.tsx b/packages/cli/src/ui/components/messages/ToolGroupMessage.tsx
index b0e4418604..0fea53d69d 100644
--- a/packages/cli/src/ui/components/messages/ToolGroupMessage.tsx
+++ b/packages/cli/src/ui/components/messages/ToolGroupMessage.tsx
@@ -54,7 +54,7 @@ const COMPACT_OUTPUT_ALLOWLIST = new Set([
 ]);
 
 // Helper to identify if a tool should use the compact view
-const isCompactTool = (
+export const isCompactTool = (
   tool: IndividualToolCallDisplay,
   isCompactModeEnabled: boolean,
 ): boolean => {
@@ -68,7 +68,7 @@ const isCompactTool = (
 };
 
 // Helper to identify if a compact tool has a payload (diff, list, etc.)
-const hasDensePayload = (tool: IndividualToolCallDisplay): boolean => {
+export const hasDensePayload = (tool: IndividualToolCallDisplay): boolean => {
   if (tool.outputFile) return true;
   const res = tool.resultDisplay;
   if (!res) return false;
@@ -121,7 +121,7 @@ export const ToolGroupMessage: React.FC<ToolGroupMessageProps> = ({
   toolCalls: allToolCalls,
   availableTerminalHeight,
   terminalWidth,
-  // borderTop: borderTopOverride,
+  borderTop: borderTopOverride,
   borderBottom: borderBottomOverride,
   isExpandable,
 }) => {
@@ -207,29 +207,26 @@ export const ToolGroupMessage: React.FC<ToolGroupMessageProps> = ({
       const prevIsCompact = prevTool
         ? isCompactTool(prevTool, isCompactModeEnabled)
         : false;
-      const hasPayload = hasDensePayload(tool);
-      const prevHasPayload = prevTool ? hasDensePayload(prevTool) : false;
 
       if (isCompact) {
         height += 1; // Base height for compact tool
         // Spacing logic (matching marginTop)
-        if (
-          isFirst ||
-          isCompact !== prevIsCompact ||
-          hasPayload ||
-          prevHasPayload
-        ) {
+        if (isFirst) {
+          height += borderTopOverride ?? true ? 1 : 0;
+        } else if (!prevIsCompact) {
           height += 1;
         }
       } else {
         height += 3; // Static overhead for standard tool
-        if (isFirst || prevIsCompact) {
-          height += 1;
+        if (isFirst) {
+          height += borderTopOverride ?? true ? 1 : 0;
+        } else {
+          height += 1; // marginTop is always 1 for non-compact tools (not first)
         }
       }
     }
     return height;
-  }, [visibleToolCalls, isCompactModeEnabled]);
+  }, [visibleToolCalls, isCompactModeEnabled, borderTopOverride]);
 
   let countToolCallsWithResults = 0;
   for (const tool of visibleToolCalls) {
@@ -273,20 +270,18 @@ export const ToolGroupMessage: React.FC<ToolGroupMessageProps> = ({
     */
       width={terminalWidth}
       paddingRight={TOOL_MESSAGE_HORIZONTAL_MARGIN}
-      marginBottom={1}
+      marginBottom={borderBottomOverride ?? true ? 1 : 0}
     >
       {visibleToolCalls.map((tool, index) => {
         const isFirst = index === 0;
         const isLast = index === visibleToolCalls.length - 1;
         const isShellToolCall = isShellTool(tool.name);
         const isCompact = isCompactTool(tool, isCompactModeEnabled);
-        const hasPayload = hasDensePayload(tool);
 
         const prevTool = index > 0 ? visibleToolCalls[index - 1] : null;
         const prevIsCompact = prevTool
           ? isCompactTool(prevTool, isCompactModeEnabled)
           : false;
-        const prevHasPayload = prevTool ? hasDensePayload(prevTool) : false;
 
         const nextTool = !isLast ? visibleToolCalls[index + 1] : null;
         const nextIsCompact = nextTool
@@ -295,12 +290,8 @@ export const ToolGroupMessage: React.FC<ToolGroupMessageProps> = ({
 
         let marginTop = 0;
         if (isFirst) {
-          marginTop = 1;
-        } else if (isCompact !== prevIsCompact) {
-          marginTop = 1;
-        } else if (isCompact && (hasPayload || prevHasPayload)) {
-          marginTop = 1;
-        } else if (!isCompact && prevIsCompact) {
+          marginTop = borderTopOverride ?? true ? 1 : 0;
+        } else if (!(isCompact && prevIsCompact)) {
           marginTop = 1;
         }
 
@@ -309,7 +300,11 @@ export const ToolGroupMessage: React.FC<ToolGroupMessageProps> = ({
           availableTerminalHeight: availableTerminalHeightPerToolMessage,
           terminalWidth: contentWidth,
           emphasis: 'medium' as const,
-          isFirst: isCompact ? false : prevIsCompact || isFirst,
+          isFirst: isCompact
+            ? false
+            : isFirst
+              ? (borderTopOverride ?? true)
+              : prevIsCompact,
           borderColor,
           borderDimColor,
           isExpandable,
@@ -358,7 +353,7 @@ export const ToolGroupMessage: React.FC<ToolGroupMessageProps> = ({
                 borderLeft={true}
                 borderRight={true}
                 borderTop={false}
-                borderBottom={borderBottomOverride ?? true}
+                borderBottom={isLast ? (borderBottomOverride ?? true) : true}
                 borderColor={borderColor}
                 borderDimColor={borderDimColor}
                 borderStyle="round"
diff --git a/packages/cli/src/ui/components/messages/ToolStickyHeaderRegression.test.tsx b/packages/cli/src/ui/components/messages/ToolStickyHeaderRegression.test.tsx
index acec8a2404..8f4069ce87 100644
--- a/packages/cli/src/ui/components/messages/ToolStickyHeaderRegression.test.tsx
+++ b/packages/cli/src/ui/components/messages/ToolStickyHeaderRegression.test.tsx
@@ -123,9 +123,9 @@ describe('ToolMessage Sticky Header Regression', () => {
     // Content lines 1-4 should be scrolled off
     expect(lastFrame()).not.toContain('c1-01');
     expect(lastFrame()).not.toContain('c1-04');
-    // Line 6 and 7 should be visible (terminalHeight=5 means only 2 lines of content show below 3-line header)
+    // Line 5 and 6 should be visible (terminalHeight=5 means only 2 lines of content show below 3-line header + margin)
+    expect(lastFrame()).toContain('c1-05');
     expect(lastFrame()).toContain('c1-06');
-    expect(lastFrame()).toContain('c1-07');
     expect(lastFrame()).toMatchSnapshot();
 
     // Scroll further so tool-1 is completely gone and tool-2's header should be stuck
diff --git a/packages/cli/src/ui/components/messages/__snapshots__/DenseToolMessage.test.tsx.snap b/packages/cli/src/ui/components/messages/__snapshots__/DenseToolMessage.test.tsx.snap
new file mode 100644
index 0000000000..1dfdb5b8fe
--- /dev/null
+++ b/packages/cli/src/ui/components/messages/__snapshots__/DenseToolMessage.test.tsx.snap
@@ -0,0 +1,132 @@
+// Vitest Snapshot v1, https://vitest.dev/guide/snapshot.html
+
+exports[`DenseToolMessage > Toggleable Diff View (Alternate Buffer) > hides diff content by default when in alternate buffer mode 1`] = `
+"  ✓  test-tool  test.ts → Accepted [Show Diff]
+"
+`;
+
+exports[`DenseToolMessage > Toggleable Diff View (Alternate Buffer) > shows diff content by default when NOT in alternate buffer mode 1`] = `
+"  ✓  test-tool  test.ts → Accepted
+
+      1 - old line
+      1 + new line
+"
+`;
+
+exports[`DenseToolMessage > does not render result arrow if resultDisplay is missing 1`] = `
+"  o  test-tool  Test description
+"
+`;
+
+exports[`DenseToolMessage > flattens newlines in string results 1`] = `
+"  ✓  test-tool  Test description → Line 1 Line 2
+"
+`;
+
+exports[`DenseToolMessage > renders correctly for Edit tool using confirmationDetails 1`] = `
+"  ?  Edit  styles.scss → Confirming
+
+      1 - body { color: blue; }
+      1 + body { color: red; }
+"
+`;
+
+exports[`DenseToolMessage > renders correctly for Errored Edit tool 1`] = `
+"  x  Edit  styles.scss → Failed [Show Diff]
+"
+`;
+
+exports[`DenseToolMessage > renders correctly for ReadManyFiles results 1`] = `
+"  ✓  test-tool  Attempting to read files from **/*.ts → Read 3 file(s) (1 ignored)
+
+        file1.ts
+        file2.ts
+        file3.ts
+"
+`;
+
+exports[`DenseToolMessage > renders correctly for Rejected Edit tool 1`] = `
+"  -  Edit  styles.scss → Rejected (+1, -1)
+
+      1 - old line
+      1 + new line
+"
+`;
+
+exports[`DenseToolMessage > renders correctly for Rejected Edit tool with confirmationDetails and diffStat 1`] = `
+"  -  Edit  styles.scss → Rejected (+1, -1)
+
+      1 - body { color: blue; }
+      1 + body { color: red; }
+"
+`;
+
+exports[`DenseToolMessage > renders correctly for Rejected WriteFile tool 1`] = `
+"  -  WriteFile  config.json → Rejected
+
+      1 - old content
+      1 + new content
+"
+`;
+
+exports[`DenseToolMessage > renders correctly for WriteFile tool 1`] = `
+"  ✓  WriteFile  config.json → Accepted (+1, -1)
+
+      1 - old content
+      1 + new content
+"
+`;
+
+exports[`DenseToolMessage > renders correctly for a successful string result 1`] = `
+"  ✓  test-tool  Test description → Success result
+"
+`;
+
+exports[`DenseToolMessage > renders correctly for error status with string message 1`] = `
+"  x  test-tool  Test description → Error occurred
+"
+`;
+
+exports[`DenseToolMessage > renders correctly for file diff results with stats 1`] = `
+"  ✓  test-tool  test.ts → Accepted (+15, -6)
+
+      1 - old line
+      1 + diff content
+"
+`;
+
+exports[`DenseToolMessage > renders correctly for grep results 1`] = `
+"  ✓  test-tool  Test description → Found 2 matches
+
+        file1.ts:10: match 1
+        file2.ts:20: match 2
+"
+`;
+
+exports[`DenseToolMessage > renders correctly for ls results 1`] = `
+"  ✓  test-tool  Test description → Listed 2 files. (1 ignored)
+"
+`;
+
+exports[`DenseToolMessage > renders correctly for todo updates 1`] = `
+"  ✓  test-tool  Test description → Todos updated
+"
+`;
+
+exports[`DenseToolMessage > renders generic failure message for error status without string message 1`] = `
+"  x  test-tool  Test description → Failed
+"
+`;
+
+exports[`DenseToolMessage > renders generic output message for unknown object results 1`] = `
+"  ✓  test-tool  Test description → Output received
+"
+`;
+
+exports[`DenseToolMessage > truncates long string results 1`] = `
+"  ✓  test-tool  Test description
+   →
+   AAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA
+   AAAAAAAAAAAAAAAAAAAA...
+"
+`;
diff --git a/packages/cli/src/ui/components/messages/__snapshots__/ToolGroupMessage.compact.test.tsx.snap b/packages/cli/src/ui/components/messages/__snapshots__/ToolGroupMessage.compact.test.tsx.snap
index fbceeac794..34a0d86bfb 100644
--- a/packages/cli/src/ui/components/messages/__snapshots__/ToolGroupMessage.compact.test.tsx.snap
+++ b/packages/cli/src/ui/components/messages/__snapshots__/ToolGroupMessage.compact.test.tsx.snap
@@ -1,8 +1,8 @@
 // Vitest Snapshot v1, https://vitest.dev/guide/snapshot.html
 
-exports[`ToolGroupMessage Compact Rendering > adds an empty line between a compact tool and a standard tool 1`] = `
+exports[`ToolGroupMessage Compact Rendering > does not add an extra empty line between a compact tool and a standard tool 1`] = `
 "
-  ✓  list_directory   → file1.txt
+  ✓  ReadFolder   → file1.txt
 
 ╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  non-compact-tool                                                      │
@@ -12,7 +12,7 @@ exports[`ToolGroupMessage Compact Rendering > adds an empty line between a compa
 "
 `;
 
-exports[`ToolGroupMessage Compact Rendering > adds an empty line between a standard tool and a compact tool 1`] = `
+exports[`ToolGroupMessage Compact Rendering > does not add an extra empty line between a standard tool and a compact tool 1`] = `
 "
 ╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  non-compact-tool                                                      │
@@ -20,21 +20,20 @@ exports[`ToolGroupMessage Compact Rendering > adds an empty line between a stand
 │ some large output                                                        │
 ╰──────────────────────────────────────────────────────────────────────────╯
 
-  ✓  list_directory   → file1.txt
+  ✓  ReadFolder   → file1.txt
 "
 `;
 
-exports[`ToolGroupMessage Compact Rendering > adds an empty line if a compact tool has a dense payload 1`] = `
+exports[`ToolGroupMessage Compact Rendering > does not add an extra empty line if a compact tool has a dense payload 1`] = `
 "
-  ✓  list_directory   → file1.txt
-
+  ✓  ReadFolder   → file1.txt
   ✓  ReadFile   → read file
 "
 `;
 
 exports[`ToolGroupMessage Compact Rendering > renders consecutive compact tools without empty lines between them 1`] = `
 "
-  ✓  list_directory   → file1.txt file2.txt
-  ✓  list_directory   → file3.txt
+  ✓  ReadFolder   → file1.txt file2.txt
+  ✓  ReadFolder   → file3.txt
 "
 `;
diff --git a/packages/cli/src/ui/components/messages/__snapshots__/ToolGroupMessage.test.tsx.snap b/packages/cli/src/ui/components/messages/__snapshots__/ToolGroupMessage.test.tsx.snap
index c1ea071bc5..9b3dda89cd 100644
--- a/packages/cli/src/ui/components/messages/__snapshots__/ToolGroupMessage.test.tsx.snap
+++ b/packages/cli/src/ui/components/messages/__snapshots__/ToolGroupMessage.test.tsx.snap
@@ -1,7 +1,8 @@
 // Vitest Snapshot v1, https://vitest.dev/guide/snapshot.html
 
 exports[`<ToolGroupMessage /> > Ask User Filtering > filtering logic for status='error' and hasResult='error message' 1`] = `
-"╭──────────────────────────────────────────────────────────────────────────╮
+"
+╭──────────────────────────────────────────────────────────────────────────╮
 │ x  Ask User                                                              │
 │                                                                          │
 │ error message                                                            │
@@ -10,7 +11,8 @@ exports[`<ToolGroupMessage /> > Ask User Filtering > filtering logic for status=
 `;
 
 exports[`<ToolGroupMessage /> > Ask User Filtering > filtering logic for status='success' and hasResult='test result' 1`] = `
-"╭──────────────────────────────────────────────────────────────────────────╮
+"
+╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  Ask User                                                              │
 │                                                                          │
 │ test result                                                              │
@@ -19,7 +21,8 @@ exports[`<ToolGroupMessage /> > Ask User Filtering > filtering logic for status=
 `;
 
 exports[`<ToolGroupMessage /> > Ask User Filtering > shows other tools when ask_user is filtered out 1`] = `
-"╭──────────────────────────────────────────────────────────────────────────╮
+"
+╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  other-tool A tool for testing                                         │
 │                                                                          │
 │ Test result                                                              │
@@ -28,7 +31,8 @@ exports[`<ToolGroupMessage /> > Ask User Filtering > shows other tools when ask_
 `;
 
 exports[`<ToolGroupMessage /> > Border Color Logic > uses gray border when all tools are successful and no shell commands 1`] = `
-"╭──────────────────────────────────────────────────────────────────────────╮
+"
+╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  test-tool A tool for testing                                          │
 │                                                                          │
 │ Test result                                                              │
@@ -41,7 +45,8 @@ exports[`<ToolGroupMessage /> > Border Color Logic > uses gray border when all t
 `;
 
 exports[`<ToolGroupMessage /> > Border Color Logic > uses yellow border for shell commands even when successful 1`] = `
-"╭──────────────────────────────────────────────────────────────────────────╮
+"
+╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  run_shell_command A tool for testing                                  │
 │                                                                          │
 │ Test result                                                              │
@@ -55,18 +60,19 @@ exports[`<ToolGroupMessage /> > Golden Snapshots > renders header when scrolled
 "╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  tool-1 Description 1. This is a long description that will need to b… │
 │──────────────────────────────────────────────────────────────────────────│
-│ line5                                                                    │                       █
-│                                                                          │                       █
+│                                                                          │                       ▄
 │ ✓  tool-2 Description 2                                                  │                       █
 │                                                                          │                       █
 │ line1                                                                    │                       █
 │ line2                                                                    │                       █
 ╰──────────────────────────────────────────────────────────────────────────╯                       █
+                                                                                                   █
 "
 `;
 
 exports[`<ToolGroupMessage /> > Golden Snapshots > renders mixed tool calls including shell command 1`] = `
-"╭──────────────────────────────────────────────────────────────────────────╮
+"
+╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  read_file Read a file                                                 │
 │                                                                          │
 │ Test result                                                              │
@@ -83,7 +89,8 @@ exports[`<ToolGroupMessage /> > Golden Snapshots > renders mixed tool calls incl
 `;
 
 exports[`<ToolGroupMessage /> > Golden Snapshots > renders multiple tool calls with different statuses (only visible ones) 1`] = `
-"╭──────────────────────────────────────────────────────────────────────────╮
+"
+╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  successful-tool This tool succeeded                                   │
 │                                                                          │
 │ Test result                                                              │
@@ -100,7 +107,8 @@ exports[`<ToolGroupMessage /> > Golden Snapshots > renders multiple tool calls w
 `;
 
 exports[`<ToolGroupMessage /> > Golden Snapshots > renders single successful tool call 1`] = `
-"╭──────────────────────────────────────────────────────────────────────────╮
+"
+╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  test-tool A tool for testing                                          │
 │                                                                          │
 │ Test result                                                              │
@@ -109,7 +117,8 @@ exports[`<ToolGroupMessage /> > Golden Snapshots > renders single successful too
 `;
 
 exports[`<ToolGroupMessage /> > Golden Snapshots > renders tool call with outputFile 1`] = `
-"╭──────────────────────────────────────────────────────────────────────────╮
+"
+╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  tool-with-file Tool that saved output to file                         │
 │                                                                          │
 │ Test result                                                              │
@@ -119,17 +128,18 @@ exports[`<ToolGroupMessage /> > Golden Snapshots > renders tool call with output
 `;
 
 exports[`<ToolGroupMessage /> > Golden Snapshots > renders two tool groups where only the last line of the previous group is visible 1`] = `
-"╰──────────────────────────────────────────────────────────────────────────╯
-╭──────────────────────────────────────────────────────────────────────────╮
+"╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  tool-2 Description 2                                                  │
-│                                                                          │                       ▄
-│ line1                                                                    │                       █
+│                                                                          │
+│ line1                                                                    │
 ╰──────────────────────────────────────────────────────────────────────────╯                       █
+                                                                                                   █
 "
 `;
 
 exports[`<ToolGroupMessage /> > Golden Snapshots > renders with limited terminal height 1`] = `
-"╭──────────────────────────────────────────────────────────────────────────╮
+"
+╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  tool-with-result Tool with output                                     │
 │                                                                          │
 │ This is a long result that might need height constraints                 │
@@ -142,7 +152,8 @@ exports[`<ToolGroupMessage /> > Golden Snapshots > renders with limited terminal
 `;
 
 exports[`<ToolGroupMessage /> > Golden Snapshots > renders with narrow terminal width 1`] = `
-"╭──────────────────────────────────╮
+"
+╭──────────────────────────────────╮
 │ ✓  very-long-tool-name-that-mig… │
 │                                  │
 │ Test result                      │
@@ -151,7 +162,8 @@ exports[`<ToolGroupMessage /> > Golden Snapshots > renders with narrow terminal
 `;
 
 exports[`<ToolGroupMessage /> > Height Calculation > calculates available height correctly with multiple tools with results 1`] = `
-"╭──────────────────────────────────────────────────────────────────────────╮
+"
+╭──────────────────────────────────────────────────────────────────────────╮
 │ ✓  test-tool A tool for testing                                          │
 │                                                                          │
 │ Result 1                                                                 │
diff --git a/packages/cli/src/ui/components/messages/__snapshots__/ToolStickyHeaderRegression.test.tsx.snap b/packages/cli/src/ui/components/messages/__snapshots__/ToolStickyHeaderRegression.test.tsx.snap
index dda93c1c21..da341abe37 100644
--- a/packages/cli/src/ui/components/messages/__snapshots__/ToolStickyHeaderRegression.test.tsx.snap
+++ b/packages/cli/src/ui/components/messages/__snapshots__/ToolStickyHeaderRegression.test.tsx.snap
@@ -1,11 +1,11 @@
 // Vitest Snapshot v1, https://vitest.dev/guide/snapshot.html
 
 exports[`ToolMessage Sticky Header Regression > verifies that ShellToolMessage in a ToolGroupMessage in a ScrollableList has sticky headers 1`] = `
-"╭────────────────────────────────────────────────────────────────────────╮     █
-│ ✓  Shell Command Description for Shell Command                         │     █
+"                                                                               █
+╭────────────────────────────────────────────────────────────────────────╮     ▀
+│ ✓  Shell Command Description for Shell Command                         │
 │                                                                        │
 │ shell-01                                                               │
-│ shell-02                                                               │
 "
 `;
 
@@ -13,17 +13,17 @@ exports[`ToolMessage Sticky Header Regression > verifies that ShellToolMessage i
 "╭────────────────────────────────────────────────────────────────────────╮
 │ ✓  Shell Command Description for Shell Command                         │     ▄
 │────────────────────────────────────────────────────────────────────────│     █
-│ shell-06                                                               │     ▀
-│ shell-07                                                               │
+│ shell-05                                                               │
+│ shell-06                                                               │
 "
 `;
 
 exports[`ToolMessage Sticky Header Regression > verifies that multiple ToolMessages in a ToolGroupMessage in a ScrollableList have sticky headers 1`] = `
-"╭────────────────────────────────────────────────────────────────────────╮     █
+"                                                                               █
+╭────────────────────────────────────────────────────────────────────────╮
 │ ✓  tool-1 Description for tool-1                                       │
 │                                                                        │
 │ c1-01                                                                  │
-│ c1-02                                                                  │
 "
 `;
 
@@ -31,8 +31,8 @@ exports[`ToolMessage Sticky Header Regression > verifies that multiple ToolMessa
 "╭────────────────────────────────────────────────────────────────────────╮
 │ ✓  tool-1 Description for tool-1                                       │     █
 │────────────────────────────────────────────────────────────────────────│
+│ c1-05                                                                  │
 │ c1-06                                                                  │
-│ c1-07                                                                  │
 "
 `;
 
@@ -40,7 +40,7 @@ exports[`ToolMessage Sticky Header Regression > verifies that multiple ToolMessa
 "│                                                                        │
 │ ✓  tool-2 Description for tool-2                                       │
 │────────────────────────────────────────────────────────────────────────│
-│ c2-10                                                                  │
-╰────────────────────────────────────────────────────────────────────────╯     █
+│ c2-09                                                                  │     ▄
+│ c2-10                                                                  │     ▀
 "
 `;
diff --git a/packages/cli/src/ui/hooks/useGeminiStream.ts b/packages/cli/src/ui/hooks/useGeminiStream.ts
index c394b866ad..b314f1382b 100644
--- a/packages/cli/src/ui/hooks/useGeminiStream.ts
+++ b/packages/cli/src/ui/hooks/useGeminiStream.ts
@@ -75,6 +75,9 @@ import type { UseHistoryManagerReturn } from './useHistoryManager.js';
 import { useLogger } from './useLogger.js';
 import { SHELL_COMMAND_NAME } from '../constants.js';
 import { mapToDisplay as mapTrackedToolCallsToDisplay } from './toolMapping.js';
+import {
+  isCompactTool,
+} from '../components/messages/ToolGroupMessage.js';
 import {
   useToolScheduler,
   type TrackedToolCall,
@@ -291,9 +294,34 @@ export const useGeminiStream = (
           (tc) => !pushedToolCallIdsRef.current.has(tc.request.callId),
         );
         if (toolsToPush.length > 0) {
+          const isCompactModeEnabled =
+            settings.merged.ui?.compactToolOutput === true;
+          const firstToolToPush = toolsToPush[0];
+          const tcIndex = toolCalls.indexOf(firstToolToPush);
+          const prevTool = tcIndex > 0 ? toolCalls[tcIndex - 1] : null;
+
+          let borderTop = isFirstToolInGroupRef.current;
+          if (!borderTop && prevTool) {
+            // If the first tool in this push is non-compact but follows a compact tool,
+            // we must start a new border group.
+            const currentIsCompact = isCompactTool(
+              mapTrackedToolCallsToDisplay(firstToolToPush as TrackedToolCall)
+                .tools[0],
+              isCompactModeEnabled,
+            );
+            const prevWasCompact = isCompactTool(
+              mapTrackedToolCallsToDisplay(prevTool as TrackedToolCall)
+                .tools[0],
+              isCompactModeEnabled,
+            );
+            if (!currentIsCompact && prevWasCompact) {
+              borderTop = true;
+            }
+          }
+
           addItem(
             mapTrackedToolCallsToDisplay(toolsToPush as TrackedToolCall[], {
-              borderTop: isFirstToolInGroupRef.current,
+              borderTop,
               borderBottom: true,
               borderColor: theme.border.default,
               borderDimColor: false,
@@ -426,14 +454,18 @@ export const useGeminiStream = (
     if (toolsToPush.length > 0) {
       const newPushed = new Set(pushedToolCallIdsRef.current);
       let isFirst = isFirstToolInGroupRef.current;
+      const isCompactModeEnabled =
+        settings.merged.ui?.compactToolOutput === true;
 
       for (const tc of toolsToPush) {
         newPushed.add(tc.request.callId);
+        const tcIndex = toolCalls.indexOf(tc);
+        const prevTool = tcIndex > 0 ? toolCalls[tcIndex - 1] : null;
+        const nextTool =
+          tcIndex < toolCalls.length - 1 ? toolCalls[tcIndex + 1] : null;
         const isLastInBatch = tc === toolCalls[toolCalls.length - 1];
 
         const historyItem = mapTrackedToolCallsToDisplay(tc, {
-          borderTop: isFirst,
-          borderBottom: isLastInBatch,
           ...getToolGroupBorderAppearance(
             { type: 'tool_group', tools: toolCalls },
             activeShellPtyId,
@@ -442,6 +474,33 @@ export const useGeminiStream = (
             backgroundShells,
           ),
         });
+
+        const currentIsCompact = historyItem.tools[0]
+          ? isCompactTool(historyItem.tools[0], isCompactModeEnabled)
+          : false;
+
+        let nextIsCompact = false;
+        if (nextTool) {
+          const nextHistoryItem = mapTrackedToolCallsToDisplay(nextTool);
+          nextIsCompact = nextHistoryItem.tools[0]
+            ? isCompactTool(nextHistoryItem.tools[0], isCompactModeEnabled)
+            : false;
+        }
+
+        let prevWasCompact = false;
+        if (prevTool) {
+          const prevHistoryItem = mapTrackedToolCallsToDisplay(prevTool);
+          prevWasCompact = prevHistoryItem.tools[0]
+            ? isCompactTool(prevHistoryItem.tools[0], isCompactModeEnabled)
+            : false;
+        }
+
+        historyItem.borderTop =
+          isFirst || (!currentIsCompact && prevWasCompact);
+        historyItem.borderBottom = currentIsCompact
+          ? isLastInBatch && !nextIsCompact
+          : isLastInBatch || nextIsCompact;
+
         addItem(historyItem);
         isFirst = false;
       }
@@ -459,6 +518,7 @@ export const useGeminiStream = (
     activeShellPtyId,
     isShellFocused,
     backgroundShells,
+    settings.merged.ui?.compactToolOutput,
   ]);
 
   const pendingToolGroupItems = useMemo((): HistoryItemWithoutId[] => {
@@ -502,8 +562,7 @@ export const useGeminiStream = (
       toolCalls.length > 0 &&
       toolCalls.every((tc) => pushedToolCallIds.has(tc.request.callId));
 
-    const anyVisibleInHistory = pushedToolCallIds.size > 0;
-    const anyVisibleInPending = remainingTools.some((tc) => {
+    const isToolVisible = (tc: TrackedToolCall) => {
       // AskUser tools are rendered by AskUserDialog, not ToolGroupMessage
       const isInProgress =
         tc.status !== 'success' &&
@@ -517,12 +576,28 @@ export const useGeminiStream = (
         tc.status !== 'validating' &&
         tc.status !== 'awaiting_approval'
       );
-    });
+    };
+
+    const anyVisibleInHistory = pushedToolCallIds.size > 0;
+    const anyVisibleInPending = remainingTools.some(isToolVisible);
+
+    let lastVisibleIsCompact = false;
+    const isCompactModeEnabled = settings.merged.ui?.compactToolOutput === true;
+    for (let i = toolCalls.length - 1; i >= 0; i--) {
+      if (isToolVisible(toolCalls[i])) {
+        const mapped = mapTrackedToolCallsToDisplay(toolCalls[i]);
+        lastVisibleIsCompact = mapped.tools[0]
+          ? isCompactTool(mapped.tools[0], isCompactModeEnabled)
+          : false;
+        break;
+      }
+    }
 
     if (
       toolCalls.length > 0 &&
       !(allTerminal && allPushed) &&
-      (anyVisibleInHistory || anyVisibleInPending)
+      (anyVisibleInHistory || anyVisibleInPending) &&
+      !lastVisibleIsCompact
     ) {
       items.push({
         type: 'tool_group' as const,
@@ -540,6 +615,7 @@ export const useGeminiStream = (
     activeShellPtyId,
     isShellFocused,
     backgroundShells,
+    settings.merged.ui?.compactToolOutput,
   ]);
 
   const lastQueryRef = useRef<PartListUnion | null>(null);
diff --git a/packages/cli/src/ui/utils/__snapshots__/borderStyles-MainContent-tool-group-border-SVG-snapshots-should-render-SVG-snapshot-for-a-pending-search-dialog-google_web_search-.snap.svg b/packages/cli/src/ui/utils/__snapshots__/borderStyles-MainContent-tool-group-border-SVG-snapshots-should-render-SVG-snapshot-for-a-pending-search-dialog-google_web_search-.snap.svg
index 6a693d318b..bb05edfd84 100644
--- a/packages/cli/src/ui/utils/__snapshots__/borderStyles-MainContent-tool-group-border-SVG-snapshots-should-render-SVG-snapshot-for-a-pending-search-dialog-google_web_search-.snap.svg
+++ b/packages/cli/src/ui/utils/__snapshots__/borderStyles-MainContent-tool-group-border-SVG-snapshots-should-render-SVG-snapshot-for-a-pending-search-dialog-google_web_search-.snap.svg
@@ -1,8 +1,8 @@
-<svg xmlns="http://www.w3.org/2000/svg" width="920" height="207" viewBox="0 0 920 207">
+<svg xmlns="http://www.w3.org/2000/svg" width="920" height="224" viewBox="0 0 920 224">
   <style>
     text { font-family: Consolas, "Courier New", monospace; font-size: 14px; dominant-baseline: text-before-edge; white-space: pre; }
   </style>
-  <rect width="920" height="207" fill="#000000" />
+  <rect width="920" height="224" fill="#000000" />
   <g transform="translate(10, 10)">
     <text x="18" y="19" fill="#4796e4" textLength="9" lengthAdjust="spacingAndGlyphs">▝</text>
     <text x="27" y="19" fill="#6688d9" textLength="9" lengthAdjust="spacingAndGlyphs">▜</text>
@@ -17,16 +17,16 @@
     <text x="45" y="53" fill="#a471a7" textLength="9" lengthAdjust="spacingAndGlyphs">▀</text>
     <text x="18" y="70" fill="#4796e4" textLength="9" lengthAdjust="spacingAndGlyphs">▝</text>
     <text x="27" y="70" fill="#6688d9" textLength="9" lengthAdjust="spacingAndGlyphs">▀</text>
-    <text x="0" y="104" fill="#ffffaf" textLength="864" lengthAdjust="spacingAndGlyphs">╭──────────────────────────────────────────────────────────────────────────────────────────────╮</text>
-    <text x="0" y="121" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
-    <text x="18" y="121" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">⊶</text>
-    <text x="45" y="121" fill="#ffffff" textLength="153" lengthAdjust="spacingAndGlyphs" font-weight="bold">google_web_search</text>
-    <text x="855" y="121" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
+    <text x="0" y="121" fill="#ffffaf" textLength="864" lengthAdjust="spacingAndGlyphs">╭──────────────────────────────────────────────────────────────────────────────────────────────╮</text>
     <text x="0" y="138" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
+    <text x="18" y="138" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">⊶</text>
+    <text x="45" y="138" fill="#ffffff" textLength="153" lengthAdjust="spacingAndGlyphs" font-weight="bold">google_web_search</text>
     <text x="855" y="138" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
     <text x="0" y="155" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
-    <text x="18" y="155" fill="#ffffff" textLength="108" lengthAdjust="spacingAndGlyphs">Searching...</text>
     <text x="855" y="155" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
-    <text x="0" y="172" fill="#ffffaf" textLength="864" lengthAdjust="spacingAndGlyphs">╰──────────────────────────────────────────────────────────────────────────────────────────────╯</text>
+    <text x="0" y="172" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
+    <text x="18" y="172" fill="#ffffff" textLength="108" lengthAdjust="spacingAndGlyphs">Searching...</text>
+    <text x="855" y="172" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
+    <text x="0" y="189" fill="#ffffaf" textLength="864" lengthAdjust="spacingAndGlyphs">╰──────────────────────────────────────────────────────────────────────────────────────────────╯</text>
   </g>
 </svg>
\ No newline at end of file
diff --git a/packages/cli/src/ui/utils/__snapshots__/borderStyles-MainContent-tool-group-border-SVG-snapshots-should-render-SVG-snapshot-for-a-shell-tool.snap.svg b/packages/cli/src/ui/utils/__snapshots__/borderStyles-MainContent-tool-group-border-SVG-snapshots-should-render-SVG-snapshot-for-a-shell-tool.snap.svg
index 1c0ff4b121..4fe69bb788 100644
--- a/packages/cli/src/ui/utils/__snapshots__/borderStyles-MainContent-tool-group-border-SVG-snapshots-should-render-SVG-snapshot-for-a-shell-tool.snap.svg
+++ b/packages/cli/src/ui/utils/__snapshots__/borderStyles-MainContent-tool-group-border-SVG-snapshots-should-render-SVG-snapshot-for-a-shell-tool.snap.svg
@@ -1,8 +1,8 @@
-<svg xmlns="http://www.w3.org/2000/svg" width="920" height="207" viewBox="0 0 920 207">
+<svg xmlns="http://www.w3.org/2000/svg" width="920" height="224" viewBox="0 0 920 224">
   <style>
     text { font-family: Consolas, "Courier New", monospace; font-size: 14px; dominant-baseline: text-before-edge; white-space: pre; }
   </style>
-  <rect width="920" height="207" fill="#000000" />
+  <rect width="920" height="224" fill="#000000" />
   <g transform="translate(10, 10)">
     <text x="18" y="19" fill="#4796e4" textLength="9" lengthAdjust="spacingAndGlyphs">▝</text>
     <text x="27" y="19" fill="#6688d9" textLength="9" lengthAdjust="spacingAndGlyphs">▜</text>
@@ -17,16 +17,16 @@
     <text x="45" y="53" fill="#a471a7" textLength="9" lengthAdjust="spacingAndGlyphs">▀</text>
     <text x="18" y="70" fill="#4796e4" textLength="9" lengthAdjust="spacingAndGlyphs">▝</text>
     <text x="27" y="70" fill="#6688d9" textLength="9" lengthAdjust="spacingAndGlyphs">▀</text>
-    <text x="0" y="104" fill="#87afff" textLength="864" lengthAdjust="spacingAndGlyphs">╭──────────────────────────────────────────────────────────────────────────────────────────────╮</text>
-    <text x="0" y="121" fill="#87afff" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
-    <text x="18" y="121" fill="#87afff" textLength="9" lengthAdjust="spacingAndGlyphs">⊶</text>
-    <text x="45" y="121" fill="#ffffff" textLength="153" lengthAdjust="spacingAndGlyphs" font-weight="bold">run_shell_command</text>
-    <text x="855" y="121" fill="#87afff" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
+    <text x="0" y="121" fill="#87afff" textLength="864" lengthAdjust="spacingAndGlyphs">╭──────────────────────────────────────────────────────────────────────────────────────────────╮</text>
     <text x="0" y="138" fill="#87afff" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
+    <text x="18" y="138" fill="#87afff" textLength="9" lengthAdjust="spacingAndGlyphs">⊶</text>
+    <text x="45" y="138" fill="#ffffff" textLength="153" lengthAdjust="spacingAndGlyphs" font-weight="bold">run_shell_command</text>
     <text x="855" y="138" fill="#87afff" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
     <text x="0" y="155" fill="#87afff" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
-    <text x="18" y="155" fill="#ffffff" textLength="162" lengthAdjust="spacingAndGlyphs">Running command...</text>
     <text x="855" y="155" fill="#87afff" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
-    <text x="0" y="172" fill="#87afff" textLength="864" lengthAdjust="spacingAndGlyphs">╰──────────────────────────────────────────────────────────────────────────────────────────────╯</text>
+    <text x="0" y="172" fill="#87afff" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
+    <text x="18" y="172" fill="#ffffff" textLength="162" lengthAdjust="spacingAndGlyphs">Running command...</text>
+    <text x="855" y="172" fill="#87afff" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
+    <text x="0" y="189" fill="#87afff" textLength="864" lengthAdjust="spacingAndGlyphs">╰──────────────────────────────────────────────────────────────────────────────────────────────╯</text>
   </g>
 </svg>
\ No newline at end of file
diff --git a/packages/cli/src/ui/utils/__snapshots__/borderStyles-MainContent-tool-group-border-SVG-snapshots-should-render-SVG-snapshot-for-an-empty-slice-following-a-search-tool.snap.svg b/packages/cli/src/ui/utils/__snapshots__/borderStyles-MainContent-tool-group-border-SVG-snapshots-should-render-SVG-snapshot-for-an-empty-slice-following-a-search-tool.snap.svg
index 6a693d318b..bb05edfd84 100644
--- a/packages/cli/src/ui/utils/__snapshots__/borderStyles-MainContent-tool-group-border-SVG-snapshots-should-render-SVG-snapshot-for-an-empty-slice-following-a-search-tool.snap.svg
+++ b/packages/cli/src/ui/utils/__snapshots__/borderStyles-MainContent-tool-group-border-SVG-snapshots-should-render-SVG-snapshot-for-an-empty-slice-following-a-search-tool.snap.svg
@@ -1,8 +1,8 @@
-<svg xmlns="http://www.w3.org/2000/svg" width="920" height="207" viewBox="0 0 920 207">
+<svg xmlns="http://www.w3.org/2000/svg" width="920" height="224" viewBox="0 0 920 224">
   <style>
     text { font-family: Consolas, "Courier New", monospace; font-size: 14px; dominant-baseline: text-before-edge; white-space: pre; }
   </style>
-  <rect width="920" height="207" fill="#000000" />
+  <rect width="920" height="224" fill="#000000" />
   <g transform="translate(10, 10)">
     <text x="18" y="19" fill="#4796e4" textLength="9" lengthAdjust="spacingAndGlyphs">▝</text>
     <text x="27" y="19" fill="#6688d9" textLength="9" lengthAdjust="spacingAndGlyphs">▜</text>
@@ -17,16 +17,16 @@
     <text x="45" y="53" fill="#a471a7" textLength="9" lengthAdjust="spacingAndGlyphs">▀</text>
     <text x="18" y="70" fill="#4796e4" textLength="9" lengthAdjust="spacingAndGlyphs">▝</text>
     <text x="27" y="70" fill="#6688d9" textLength="9" lengthAdjust="spacingAndGlyphs">▀</text>
-    <text x="0" y="104" fill="#ffffaf" textLength="864" lengthAdjust="spacingAndGlyphs">╭──────────────────────────────────────────────────────────────────────────────────────────────╮</text>
-    <text x="0" y="121" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
-    <text x="18" y="121" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">⊶</text>
-    <text x="45" y="121" fill="#ffffff" textLength="153" lengthAdjust="spacingAndGlyphs" font-weight="bold">google_web_search</text>
-    <text x="855" y="121" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
+    <text x="0" y="121" fill="#ffffaf" textLength="864" lengthAdjust="spacingAndGlyphs">╭──────────────────────────────────────────────────────────────────────────────────────────────╮</text>
     <text x="0" y="138" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
+    <text x="18" y="138" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">⊶</text>
+    <text x="45" y="138" fill="#ffffff" textLength="153" lengthAdjust="spacingAndGlyphs" font-weight="bold">google_web_search</text>
     <text x="855" y="138" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
     <text x="0" y="155" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
-    <text x="18" y="155" fill="#ffffff" textLength="108" lengthAdjust="spacingAndGlyphs">Searching...</text>
     <text x="855" y="155" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
-    <text x="0" y="172" fill="#ffffaf" textLength="864" lengthAdjust="spacingAndGlyphs">╰──────────────────────────────────────────────────────────────────────────────────────────────╯</text>
+    <text x="0" y="172" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
+    <text x="18" y="172" fill="#ffffff" textLength="108" lengthAdjust="spacingAndGlyphs">Searching...</text>
+    <text x="855" y="172" fill="#ffffaf" textLength="9" lengthAdjust="spacingAndGlyphs">│</text>
+    <text x="0" y="189" fill="#ffffaf" textLength="864" lengthAdjust="spacingAndGlyphs">╰──────────────────────────────────────────────────────────────────────────────────────────────╯</text>
   </g>
 </svg>
\ No newline at end of file
diff --git a/packages/cli/src/ui/utils/__snapshots__/borderStyles.test.tsx.snap b/packages/cli/src/ui/utils/__snapshots__/borderStyles.test.tsx.snap
index bdf1e95332..296b210124 100644
--- a/packages/cli/src/ui/utils/__snapshots__/borderStyles.test.tsx.snap
+++ b/packages/cli/src/ui/utils/__snapshots__/borderStyles.test.tsx.snap
@@ -7,11 +7,13 @@ exports[`MainContent tool group border SVG snapshots > should render SVG snapsho
    ▗▟▀ 
   ▝▀    
 
+
 ╭──────────────────────────────────────────────────────────────────────────────────────────────╮
 │ ⊶  google_web_search                                                                         │
 │                                                                                              │
 │ Searching...                                                                                 │
-╰──────────────────────────────────────────────────────────────────────────────────────────────╯"
+╰──────────────────────────────────────────────────────────────────────────────────────────────╯
+"
 `;
 
 exports[`MainContent tool group border SVG snapshots > should render SVG snapshot for a shell tool 1`] = `
@@ -21,11 +23,13 @@ exports[`MainContent tool group border SVG snapshots > should render SVG snapsho
    ▗▟▀ 
   ▝▀    
 
+
 ╭──────────────────────────────────────────────────────────────────────────────────────────────╮
 │ ⊶  run_shell_command                                                                         │
 │                                                                                              │
 │ Running command...                                                                           │
-╰──────────────────────────────────────────────────────────────────────────────────────────────╯"
+╰──────────────────────────────────────────────────────────────────────────────────────────────╯
+"
 `;
 
 exports[`MainContent tool group border SVG snapshots > should render SVG snapshot for an empty slice following a search tool 1`] = `
@@ -35,9 +39,11 @@ exports[`MainContent tool group border SVG snapshots > should render SVG snapsho
    ▗▟▀ 
   ▝▀    
 
+
 ╭──────────────────────────────────────────────────────────────────────────────────────────────╮
 │ ⊶  google_web_search                                                                         │
 │                                                                                              │
 │ Searching...                                                                                 │
-╰──────────────────────────────────────────────────────────────────────────────────────────────╯"
+╰──────────────────────────────────────────────────────────────────────────────────────────────╯
+"
 `;