diff --git a/packages/cli/src/ui/components/shared/MaxSizedBox.test.tsx b/packages/cli/src/ui/components/shared/MaxSizedBox.test.tsx
index 06501eca3e..ff9035ec6d 100644
--- a/packages/cli/src/ui/components/shared/MaxSizedBox.test.tsx
+++ b/packages/cli/src/ui/components/shared/MaxSizedBox.test.tsx
@@ -4,10 +4,11 @@
  * SPDX-License-Identifier: Apache-2.0
  */
 
-import { render } from '../../../test-utils/render.js';
+import { render, renderWithProviders } from '../../../test-utils/render.js';
 import { waitFor } from '../../../test-utils/async.js';
 import { OverflowProvider } from '../../contexts/OverflowContext.js';
 import { MaxSizedBox } from './MaxSizedBox.js';
+import { MarkdownDisplay } from '../../utils/MarkdownDisplay.js';
 import { Box, Text } from 'ink';
 import { describe, it, expect } from 'vitest';
 
@@ -226,4 +227,31 @@ describe('<MaxSizedBox />', () => {
     expect(lastFrame()).toMatchSnapshot();
     unmount();
   });
+
+  it('does not leak content after hidden indicator with bottom overflow', async () => {
+    const markdownContent = Array.from(
+      { length: 20 },
+      (_, i) => `- Step ${i + 1}: Do something important`,
+    ).join('\n');
+    const { lastFrame } = renderWithProviders(
+      <MaxSizedBox maxWidth={80} maxHeight={5} overflowDirection="bottom">
+        <MarkdownDisplay
+          text={`## Plan\n\n${markdownContent}`}
+          isPending={false}
+          terminalWidth={76}
+        />
+      </MaxSizedBox>,
+      { width: 80 },
+    );
+
+    await waitFor(() => expect(lastFrame()).toContain('... last'));
+
+    const frame = lastFrame()!;
+    const lines = frame.split('\n');
+    const lastLine = lines[lines.length - 1];
+
+    // The last line should only contain the hidden indicator, no leaked content
+    expect(lastLine).toMatch(/^\.\.\. last \d+ lines? hidden \.\.\.$/);
+    expect(lastFrame()).toMatchSnapshot();
+  });
 });
diff --git a/packages/cli/src/ui/components/shared/MaxSizedBox.tsx b/packages/cli/src/ui/components/shared/MaxSizedBox.tsx
index 0e87d5a6cd..85ad4509ff 100644
--- a/packages/cli/src/ui/components/shared/MaxSizedBox.tsx
+++ b/packages/cli/src/ui/components/shared/MaxSizedBox.tsx
@@ -120,7 +120,12 @@ export const MaxSizedBox: React.FC<MaxSizedBoxProps> = ({
           hidden ...
         </Text>
       )}
-      <Box flexDirection="column" overflow="hidden" flexGrow={1}>
+      <Box
+        flexDirection="column"
+        overflow="hidden"
+        flexGrow={0}
+        maxHeight={isOverflowing ? visibleContentHeight : undefined}
+      >
         <Box
           flexDirection="column"
           ref={onRefChange}
diff --git a/packages/cli/src/ui/components/shared/__snapshots__/MaxSizedBox.test.tsx.snap b/packages/cli/src/ui/components/shared/__snapshots__/MaxSizedBox.test.tsx.snap
index 7725615aa2..93e932b156 100644
--- a/packages/cli/src/ui/components/shared/__snapshots__/MaxSizedBox.test.tsx.snap
+++ b/packages/cli/src/ui/components/shared/__snapshots__/MaxSizedBox.test.tsx.snap
@@ -31,6 +31,14 @@ Line 29
 Line 30"
 `;
 
+exports[`<MaxSizedBox /> > does not leak content after hidden indicator with bottom overflow 1`] = `
+"Plan
+
+ - Step 1: Do something important
+ - Step 2: Do something important
+... last 18 lines hidden ..."
+`;
+
 exports[`<MaxSizedBox /> > does not truncate when maxHeight is undefined 1`] = `
 "Line 1
 Line 2"