diff --git a/packages/cli/src/ui/components/InputPrompt.test.tsx b/packages/cli/src/ui/components/InputPrompt.test.tsx
index 9d072709e4..d2a08d8fcc 100644
--- a/packages/cli/src/ui/components/InputPrompt.test.tsx
+++ b/packages/cli/src/ui/components/InputPrompt.test.tsx
@@ -1311,6 +1311,33 @@ describe('InputPrompt', () => {
     });
   });
 
+  describe('multiline rendering', () => {
+    it('should correctly render multiline input including blank lines', async () => {
+      const text = 'hello\n\nworld';
+      mockBuffer.text = text;
+      mockBuffer.lines = text.split('\n');
+      mockBuffer.viewportVisualLines = text.split('\n');
+      mockBuffer.allVisualLines = text.split('\n');
+      mockBuffer.visualCursor = [2, 5]; // cursor at the end of "world"
+
+      const { stdout, unmount } = renderWithProviders(
+        <InputPrompt {...props} />,
+      );
+      await wait();
+
+      const frame = stdout.lastFrame();
+      // Check that all lines, including the empty one, are rendered.
+      // This implicitly tests that the Box wrapper provides height for the empty line.
+      expect(frame).toContain('hello');
+      expect(frame).toContain(`world${chalk.inverse(' ')}`);
+
+      const outputLines = frame!.split('\n');
+      // The number of lines should be 2 for the border plus 3 for the content.
+      expect(outputLines.length).toBe(5);
+      unmount();
+    });
+  });
+
   describe('multiline paste', () => {
     it.each([
       {
diff --git a/packages/cli/src/ui/components/InputPrompt.tsx b/packages/cli/src/ui/components/InputPrompt.tsx
index ca1f9f5498..58b19e4f8d 100644
--- a/packages/cli/src/ui/components/InputPrompt.tsx
+++ b/packages/cli/src/ui/components/InputPrompt.tsx
@@ -723,7 +723,10 @@ export const InputPrompt: React.FC<InputPromptProps> = ({
           ) : (
             linesToRender
               .map((lineText, visualIdxInRenderedSet) => {
-                const tokens = parseInputForHighlighting(lineText);
+                const tokens = parseInputForHighlighting(
+                  lineText,
+                  visualIdxInRenderedSet,
+                );
                 const cursorVisualRow =
                   cursorVisualRowAbsolute - scrollVisualRow;
                 const isOnCursorLine =
@@ -784,7 +787,9 @@ export const InputPrompt: React.FC<InputPromptProps> = ({
                 ) {
                   if (!currentLineGhost) {
                     renderedLine.push(
-                      <Text key="cursor-end">{chalk.inverse(' ')}</Text>,
+                      <Text key={`cursor-end-${cursorVisualColAbsolute}`}>
+                        {chalk.inverse(' ')}
+                      </Text>,
                     );
                   }
                 }
@@ -796,15 +801,17 @@ export const InputPrompt: React.FC<InputPromptProps> = ({
                   currentLineGhost;
 
                 return (
-                  <Text key={`line-${visualIdxInRenderedSet}`}>
-                    {renderedLine}
-                    {showCursorBeforeGhost && chalk.inverse(' ')}
-                    {currentLineGhost && (
-                      <Text color={theme.text.secondary}>
-                        {currentLineGhost}
-                      </Text>
-                    )}
-                  </Text>
+                  <Box key={`line-${visualIdxInRenderedSet}`} height={1}>
+                    <Text>
+                      {renderedLine}
+                      {showCursorBeforeGhost && chalk.inverse(' ')}
+                      {currentLineGhost && (
+                        <Text color={theme.text.secondary}>
+                          {currentLineGhost}
+                        </Text>
+                      )}
+                    </Text>
+                  </Box>
                 );
               })
               .concat(
diff --git a/packages/cli/src/ui/utils/highlight.test.ts b/packages/cli/src/ui/utils/highlight.test.ts
index 9d03f21528..8d4c5ce620 100644
--- a/packages/cli/src/ui/utils/highlight.test.ts
+++ b/packages/cli/src/ui/utils/highlight.test.ts
@@ -9,96 +9,128 @@ import { parseInputForHighlighting } from './highlight.js';
 
 describe('parseInputForHighlighting', () => {
   it('should handle an empty string', () => {
-    expect(parseInputForHighlighting('')).toEqual([
+    expect(parseInputForHighlighting('', 0)).toEqual([
       { text: '', type: 'default' },
     ]);
   });
 
   it('should handle text with no commands or files', () => {
     const text = 'this is a normal sentence';
-    expect(parseInputForHighlighting(text)).toEqual([
+    expect(parseInputForHighlighting(text, 0)).toEqual([
       { text, type: 'default' },
     ]);
   });
 
-  it('should highlight a single command at the beginning', () => {
+  it('should highlight a single command at the beginning when index is 0', () => {
     const text = '/help me';
-    expect(parseInputForHighlighting(text)).toEqual([
+    expect(parseInputForHighlighting(text, 0)).toEqual([
       { text: '/help', type: 'command' },
       { text: ' me', type: 'default' },
     ]);
   });
 
+  it('should NOT highlight a command at the beginning when index is not 0', () => {
+    const text = '/help me';
+    expect(parseInputForHighlighting(text, 1)).toEqual([
+      { text: '/help', type: 'default' },
+      { text: ' me', type: 'default' },
+    ]);
+  });
+
   it('should highlight a single file path at the beginning', () => {
     const text = '@path/to/file.txt please';
-    expect(parseInputForHighlighting(text)).toEqual([
+    expect(parseInputForHighlighting(text, 0)).toEqual([
       { text: '@path/to/file.txt', type: 'file' },
       { text: ' please', type: 'default' },
     ]);
   });
 
-  it('should highlight a command in the middle', () => {
+  it('should not highlight a command in the middle', () => {
     const text = 'I need /help with this';
-    expect(parseInputForHighlighting(text)).toEqual([
-      { text: 'I need ', type: 'default' },
-      { text: '/help', type: 'command' },
-      { text: ' with this', type: 'default' },
+    expect(parseInputForHighlighting(text, 0)).toEqual([
+      { text: 'I need /help with this', type: 'default' },
     ]);
   });
 
   it('should highlight a file path in the middle', () => {
     const text = 'Please check @path/to/file.txt for details';
-    expect(parseInputForHighlighting(text)).toEqual([
+    expect(parseInputForHighlighting(text, 0)).toEqual([
       { text: 'Please check ', type: 'default' },
       { text: '@path/to/file.txt', type: 'file' },
       { text: ' for details', type: 'default' },
     ]);
   });
 
-  it('should highlight multiple commands and files', () => {
+  it('should highlight files but not commands not at the start', () => {
     const text = 'Use /run with @file.js and also /format @another/file.ts';
-    expect(parseInputForHighlighting(text)).toEqual([
-      { text: 'Use ', type: 'default' },
-      { text: '/run', type: 'command' },
-      { text: ' with ', type: 'default' },
+    expect(parseInputForHighlighting(text, 0)).toEqual([
+      { text: 'Use /run with ', type: 'default' },
       { text: '@file.js', type: 'file' },
-      { text: ' and also ', type: 'default' },
-      { text: '/format', type: 'command' },
-      { text: ' ', type: 'default' },
+      { text: ' and also /format ', type: 'default' },
       { text: '@another/file.ts', type: 'file' },
     ]);
   });
 
-  it('should handle adjacent highlights', () => {
+  it('should handle adjacent highlights at start', () => {
     const text = '/run@file.js';
-    expect(parseInputForHighlighting(text)).toEqual([
+    expect(parseInputForHighlighting(text, 0)).toEqual([
       { text: '/run', type: 'command' },
       { text: '@file.js', type: 'file' },
     ]);
   });
 
-  it('should handle highlights at the end of the string', () => {
+  it('should not highlight command at the end of the string', () => {
     const text = 'Get help with /help';
-    expect(parseInputForHighlighting(text)).toEqual([
-      { text: 'Get help with ', type: 'default' },
-      { text: '/help', type: 'command' },
+    expect(parseInputForHighlighting(text, 0)).toEqual([
+      { text: 'Get help with /help', type: 'default' },
     ]);
   });
 
   it('should handle file paths with dots and dashes', () => {
     const text = 'Check @./path-to/file-name.v2.txt';
-    expect(parseInputForHighlighting(text)).toEqual([
+    expect(parseInputForHighlighting(text, 0)).toEqual([
       { text: 'Check ', type: 'default' },
       { text: '@./path-to/file-name.v2.txt', type: 'file' },
     ]);
   });
 
-  it('should handle commands with dashes and numbers', () => {
+  it('should not highlight command with dashes and numbers not at start', () => {
     const text = 'Run /command-123 now';
-    expect(parseInputForHighlighting(text)).toEqual([
-      { text: 'Run ', type: 'default' },
+    expect(parseInputForHighlighting(text, 0)).toEqual([
+      { text: 'Run /command-123 now', type: 'default' },
+    ]);
+  });
+
+  it('should highlight command with dashes and numbers at start', () => {
+    const text = '/command-123 now';
+    expect(parseInputForHighlighting(text, 0)).toEqual([
       { text: '/command-123', type: 'command' },
       { text: ' now', type: 'default' },
     ]);
   });
+
+  it('should still highlight a file path on a non-zero line', () => {
+    const text = 'some text @path/to/file.txt';
+    expect(parseInputForHighlighting(text, 1)).toEqual([
+      { text: 'some text ', type: 'default' },
+      { text: '@path/to/file.txt', type: 'file' },
+    ]);
+  });
+
+  it('should not highlight command but highlight file on a non-zero line', () => {
+    const text = '/cmd @file.txt';
+    expect(parseInputForHighlighting(text, 2)).toEqual([
+      { text: '/cmd', type: 'default' },
+      { text: ' ', type: 'default' },
+      { text: '@file.txt', type: 'file' },
+    ]);
+  });
+
+  it('should highlight a file path with escaped spaces', () => {
+    const text = 'cat @/my\\ path/file.txt';
+    expect(parseInputForHighlighting(text, 0)).toEqual([
+      { text: 'cat ', type: 'default' },
+      { text: '@/my\\ path/file.txt', type: 'file' },
+    ]);
+  });
 });
diff --git a/packages/cli/src/ui/utils/highlight.ts b/packages/cli/src/ui/utils/highlight.ts
index 2bba3e8d5f..f1a6e4656d 100644
--- a/packages/cli/src/ui/utils/highlight.ts
+++ b/packages/cli/src/ui/utils/highlight.ts
@@ -9,10 +9,11 @@ export type HighlightToken = {
   type: 'default' | 'command' | 'file';
 };
 
-const HIGHLIGHT_REGEX = /(\/[a-zA-Z0-9_-]+|@[a-zA-Z0-9_./-]+)/g;
+const HIGHLIGHT_REGEX = /(^\/[a-zA-Z0-9_-]+|@(?:\\ |[a-zA-Z0-9_./-])+)/g;
 
 export function parseInputForHighlighting(
   text: string,
+  index: number,
 ): readonly HighlightToken[] {
   if (!text) {
     return [{ text: '', type: 'default' }];
@@ -36,10 +37,18 @@ export function parseInputForHighlighting(
 
     // Add the matched token
     const type = fullMatch.startsWith('/') ? 'command' : 'file';
-    tokens.push({
-      text: fullMatch,
-      type,
-    });
+    // Only highlight slash commands if the index is 0.
+    if (type === 'command' && index !== 0) {
+      tokens.push({
+        text: fullMatch,
+        type: 'default',
+      });
+    } else {
+      tokens.push({
+        text: fullMatch,
+        type,
+      });
+    }
 
     lastIndex = matchIndex + fullMatch.length;
   }